State of Illinois
91st General Assembly

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]

[ Introduced ]


SB356 Engrossed                                LRB9103207JSpc

 1        AN ACT concerning loans and interest.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Interest  Act  is  amended  by  changing
 5    Section 4.1 as follows:

 6        (815 ILCS 205/4.1) (from Ch. 17, par. 6405)
 7        Sec. 4.1.  Revolving credit defined.  The term "revolving
 8    credit"  means an arrangement, including by means of a credit
 9    card as defined in Section 2.03 of the Illinois  Credit  Card
10    Act  between  a  lender  and  debtor  pursuant to which it is
11    contemplated or provided that the lender  may  from  time  to
12    time  make  loans  or  advances  to or for the account of the
13    debtor through the means of drafts,  items,  orders  for  the
14    payment  of  money,  evidences  of  debt  or  similar written
15    instruments, whether or not negotiable, signed by the  debtor
16    or  by  any person authorized or permitted so to do on behalf
17    of the debtor, which loans or  advances  are  charged  to  an
18    account  in  respect of which account the lender is to render
19    bills or  statements  to  the  debtor  at  regular  intervals
20    (hereinafter  sometimes  referred  to as the "billing cycle")
21    the amount of which bills or statements is payable by and due
22    from the debtor on a specified date stated in  such  bill  or
23    statement  or  at  the debtor's option, may be payable by the
24    debtor in installments. A revolving credit arrangement  which
25    grants  the  debtor  a line of credit in excess of $5,000 may
26    include provisions granting the lender a security interest in
27    real property or in a beneficial interest in a land trust  to
28    secure  amounts  of  credit  extended  by  the lender. Credit
29    extended or available under a revolving credit plan  operated
30    in   accordance   with   the   Illinois   Financial  Services
31    Development Act shall be deemed to be "revolving  credit"  as
SB356 Engrossed             -2-                LRB9103207JSpc
 1    defined  in  this  Section  4.1  but  shall not be subject to
 2    Sections 4.1a, 4.2 or 4.3 hereof.
 3        Whenever a lender is granted a security interest in  real
 4    property  or  in  a  beneficial interest in a land trust, the
 5    lender shall disclose the existence of such interest  to  the
 6    borrower in compliance with the Federal Truth in Lending Act,
 7    amendments  thereto,  and any regulations issued or which may
 8    be issued thereunder, and shall agree to  pay  all  expenses,
 9    including  recording  fees and otherwise, to release any such
10    security interest of record whenever it no longer secures any
11    credit under a revolving credit arrangement.  A lender  shall
12    not be granted a security interest in any real property or in
13    any  beneficial  interest  in  a land trust under a revolving
14    credit arrangement, or if any such security interest  exists,
15    such  interest  shall  be  released,  if  a  borrower renders
16    payment of  the  total  outstanding  balance  due  under  the
17    revolving  credit  arrangement  and  requests  in  writing to
18    reduce the line of credit  below  that  amount  for  which  a
19    security  interest  in  real  property  or  in  a  beneficial
20    interest  in  a  land trust may be required by a lender.  Any
21    request by a borrower to release a security interest under  a
22    revolving  credit  arrangement shall be granted by the lender
23    provided  the  borrower  renders   payment   of   the   total
24    outstanding  balance  as  required by this Section before the
25    security interest of record may be released.
26    (Source: P.A. 85-1432.)

[ Top ]