State of Illinois
92nd General Assembly

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 1        AN ACT relating to  fees  in  connection  with  revolving
 2    credit plans.

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

 5        Section 5.  The Illinois Financial  Services  Development
 6    Act is amended by changing Sections 5 and 6 as follows:

 7        (205 ILCS 675/5) (from Ch. 17, par. 7005)
 8        Sec.   5.   Interest  charges;  limitation.  A  financial
 9    institution may charge and collect interest under a revolving
10    credit  plan  on  outstanding  unpaid  indebtedness  in   the
11    borrower's account under the plan at such periodic percentage
12    rate or rates as the agreement governing the plan provides or
13    as  established  in  the  manner  provided  in  the agreement
14    governing the plan.  If the agreement governing the revolving
15    credit plan so provides,  the  periodic  percentage  rate  or
16    rates of interest under such plan may vary in accordance with
17    a  schedule  or  formula.   Such  periodic percentage rate or
18    rates may vary from time to time as the  rate  determined  in
19    accordance  with  such  schedule  or  formula varies and such
20    periodic percentage rate or rates, as so varied, may be  made
21    applicable  to  all outstanding unpaid indebtedness under the
22    plan on or  after  the  effective  date  of  such  variation,
23    including any such indebtedness arising out of purchases made
24    or  loans  obtained  prior  to such variation in the periodic
25    percentage  rate  or  rates.   If  the  applicable   periodic
26    percentage  rate  under  the  agreement governing the plan is
27    other than daily, periodic interest may be calculated  on  an
28    amount  not  in  excess  of the average of outstanding unpaid
29    indebtedness for the applicable billing period, determined by
30    dividing the total  of  the  amounts  of  outstanding  unpaid
31    indebtedness for each day in the applicable billing period by
                            -2-                LRB9215778JStm
 1    the  number of days in the billing period.  If the applicable
 2    periodic percentage rate under the  agreement  governing  the
 3    plan  is  monthly,  a  billing period shall be deemed to be a
 4    month or monthly if the last day of each billing period is on
 5    the same day of each month or does not vary by  more  that  4
 6    days therefrom.
 7    (Source: P.A. 85-1432.)

 8        (205 ILCS 675/6) (from Ch. 17, par. 7006)
 9        Sec. 6.  Interest and other fees; limitation. In addition
10    to  or  in  lieu  of  interest at a periodic rate or rates as
11    provided  in  Section  5,  and  without  limitation  of   the
12    foregoing  Section  4,  a  financial  institution may, if the
13    agreement governing the revolving credit  plan  so  provides,
14    charge and collect as interest, in such manner or form as the
15    plan  may  provide,  an  annual or other periodic fee for the
16    privileges made available to the borrower under the  plan,  a
17    transaction  charge  or  charges,  late  fees  or delinquency
18    charges, returned payment charges,  over  limit  charges  and
19    fees for services rendered.
20    (Source: P.A. 85-1432.)

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