Public Act 0339 103RD GENERAL ASSEMBLY

HB3236 Enrolled LRB103 27211 SPS 53581 b

Public Act 103-0339

AN ACT concerning regulation.

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

Section 5. The Sales Finance Agency Act is amended by changing Section 10.6 as follows:

(205 ILCS 660/10.6)

Sec. 10.6. Companion animals.

(a) No sales finance agency shall purchase:

(1) a retail installment contract for the sale of a canine or feline;

(2) a retail charge agreement for the sale of a canine or feline; or

(3) the outstanding balance under a retail installment contract or a retail charge agreement for the sale of a canine or feline.

(b) No sales finance agency shall make a loan secured by:

(1) a retail installment contract for the sale of a canine or feline;

(2) a retail charge agreement for the sale of a canine or feline; or

(3) the outstanding balance under a retail installment contract or a retail charge agreements for the sale of a canine or feline.

(c) Any sales finance agency that purchases a contract or agreement subject to subsection (a) or makes a loan subject to subsection (b) has no right to collect, receive, or retain any principal, interest, or charges related to the contract, agreement, or loan, and any such loan is null and void.

(d) The changes made to this Section by this amendatory Act of the 103rd General Assembly shall apply prospectively and shall not apply retroactively. This Section shall not impair or affect the obligation of any retail installment transaction or secured loan entered into before the effective date of this amendatory Act of the 103rd General Assembly A licensee shall not finance, enter into a retail installment contract, or make a loan for the purchase of a canine or feline. Notwithstanding any other provision of this Act, if a lender violates this Section, the financing, retail installment contract, or loan shall be null and void and the licensee shall have no right to collect, receive, or retain any principal, interest, or charges related to the loan, retail installment contract, or financing.

(Source: P.A. 102-128, eff. 1-1-22.)

Section 10. The Predatory Loan Prevention Act is amended by adding Section 15-5-16 as follows:

(815 ILCS 123/15-5-16 new)

Sec. 15-5-16. Prohibition on secured loans for canines and felines. No person or entity shall make a secured loan for the purchase of a canine or feline. Any secured loan made for the purchase of a canine or feline is null and void. This Section shall apply prospectively and shall not apply retroactively. This Section shall not impair or affect the obligation of any lawful secured loan entered into before the effective date of this amendatory Act of the 103rd General Assembly.

Section 15. The Retail Installment Sales Act is amended by adding Section 29.5 as follows:

(815 ILCS 405/29.5 new)

Sec. 29.5. Prohibition on retail installment transactions for canines and felines. No retail seller shall enter into a retail installment transaction for the purchase of a canine or feline. Any retail seller, including his or her assignee or successor in interest, who enters into a retail installment transaction for a canine or feline has no right to collect, receive, or retain any principal, interest, or charges related to the retail installment transaction and the retail installment transaction is null and void. This Section shall apply prospectively and shall not apply retroactively. This Section shall not impair or affect the obligation of any retail installment transaction entered into before the effective date of this amendatory Act of the 103rd General Assembly.