Public Act 094-0635
 		





SB2060 Enrolled
LRB094 10968 DRJ 42097 b






    AN ACT concerning military personnel, which may be referred 
to as the Illinois Patriot Plan.

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

 
    Section 1. Short title. This Act may be cited as the 
Military Personnel Cellular Phone Contract Termination Act.
 
    Section 5. Definition. In this Act:
    "Active duty" means active duty pursuant to an executive 
order of the President of the United States, an act of the 
Congress of the United States, or an order of the Governor.
    "Service member" means a member of the armed services or 
reserve forces of the United States or a member of the Illinois 
National Guard.
 
    Section 10. Termination of cellular phone contract without 
penalty. Any service member who is deployed on active duty, or 
the spouse of that service member, may terminate, without 
penalty, a cellular phone contract that meets both of the 
following requirements:

        (1) The contract is entered into on or after the 
    effective date of this Act.

        (2) The contract is executed by or on behalf of the 
    service member who is deployed on active duty.

 
    Section 15. Effective date of termination. Termination of 
the cellular phone contract shall not be effective until:

        (1) thirty days after the service member who is 
    deployed on active duty or the service member's spouse 
    gives notice by certified mail, return receipt requested, 
    of the intention to terminate the cellular phone contract 
    together with a copy of the military or gubernatorial 
    orders calling the service member to active duty and of any 
    orders further extending the service member's period of 
    active duty; and

        (2) unless the service member who is deployed on active 
    duty owns the cellular phone, the cellular phone is 
    returned to the custody or control of the cellular 
    telephone company, or the service member who is deployed on 
    active duty or the service member's spouse agrees in 
    writing to return the cellular phone as soon as practical 
    after the deployment is completed.

 
    Section 900. The Department of Central Management Services 
Law of the
Civil Administrative Code of Illinois is amended  by 
adding Section 405-272 as follows:
 
    (20 ILCS 405/405-272  new)
    Sec. 405-272. Bulk long distance telephone services for 
military personnel on active duty.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive 
order of the President of the United States, an act of the 
Congress of the United States, or an order of the Governor.
    "Immediate family" means a service member's spouse 
residing in the service member's household, brothers and 
sisters of the whole or of the half blood, children, including 
adopted children and stepchildren, parents, and grandparents.
    "Service member" means a member of the armed services or 
reserve forces of the United States or a member of the Illinois 
National Guard.

    (b) The Department may enter into a contract to purchase 
bulk long distance telephone services and make them available 
at cost, or may make bulk long distance telephone services 
available at cost under any existing contract the Department 
has entered into, to persons in the immediate family of service 
members deployed on active duty so that those persons in the 
service members' families can communicate with the service 
members so deployed. If the Department enters into a contract 
under this Section, it shall do so in accordance with the 
Illinois Procurement Code and in a nondiscriminatory manner 
that does not place any potential vendor at a competitive 
disadvantage.
    (c) In order to be eligible to use bulk long distance 
telephone services purchased by the Department under this 
Section, a service member or person in the service member's 
immediate family must provide the Department with a copy of the 
military or gubernatorial orders calling the service member to 
active duty and of any orders further extending the service 
member's period of active duty.

    (d) If the Department enters into a contract under this 
Section, the Department shall adopt rules as necessary to 
implement this Section.
 
    Section 902. The Illinois Municipal  Code is amended  by 
adding Section 11-117-12.2 as follows:
 
    (65 ILCS 5/11-117-12.2  new)
    Sec. 11-117-12.2. Military personnel on active duty; no 
stoppage of gas or electricity; arrearage.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive 
order of the President of the United States, an act of the 
Congress of the United States, or an order of the Governor.
    "Service member" means a member of the armed services or 
reserve forces of the United States or a member of the Illinois 
National Guard.

    (b) No municipality owning a public utility shall stop gas 
or electricity from entering the residential premises of which 
a service member was a primary occupant immediately before the 
service member was  deployed on active duty for nonpayment for 
gas or electricity supplied to the residential premises.
    (c) Upon the return from active duty of a residential 
consumer who is a service member, the municipality shall offer 
the residential consumer a period equal to at least the period 
of the residential consumer's deployment on active duty to pay 
any arrearages incurred during the period of the residential 
consumer's deployment. The municipality shall inform the 
residential consumer that, if the period the municipality 
offers presents a hardship to the consumer, the consumer may 
request a longer period to pay the arrearages.
    (d) In order to be eligible for the benefits granted to 
service members under this Section, a service member must 
provide the municipality with a copy of the military or 
gubernatorial orders calling the service member to active duty 
and of any orders further extending the service member's period 
of active duty.

 
    Section 905. The Illinois Insurance Code is amended  by 
adding Section 224.05 as follows:
 
    (215 ILCS 5/224.05  new)
    Sec. 224.05. Military personnel on active duty; no lapse of 
life insurance policy.
    (a) Except as provided in subsection (b), this Section 
shall apply to any individual life insurance policy insuring 
the life of a member of the armed services or reserve forces of 
the United States or a member of the Illinois National Guard 
who is on active duty pursuant to an executive order of the 
President of the United States, an act of the Congress of the 
United States, or an order of the Governor, if the life 
insurance policy meets both of the following conditions:
        (1) The policy has been in force for at least 180 days.
        (2) The policy has been brought within the 
    "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 
    50 U.S.C. App. 541 and following.
    (b) This Section does not apply to any policy that was 
cancelled or that had lapsed for the nonpayment of premiums 
prior to the commencement of the insured's period of military 
service.
    (c) An individual life insurance policy described in this 
Section shall not lapse or be forfeited for the nonpayment of 
premiums during the military service of a member of the armed 
services or reserve forces of the United States or a member of 
the Illinois National Guard or during the 2-year period 
subsequent to the end of the member's period of military 
service.
    (d) In order to be eligible for the benefits granted to 
service members under this Section, a service member must 
provide the life insurance company with a copy of the military 
or gubernatorial orders calling the service member to active 
duty and of any orders further extending the service member's 
period of active duty.

    (e) This Section does not limit a life insurance company's 
enforcement of provisions in the insured's policy relating to 
naval or military service in time of war.
 
    Section 910. The Public Utilities Act is amended  by adding 
Section 8-201.5 as follows:
 
    (220 ILCS 5/8-201.5  new)
    Sec. 8-201.5. Military personnel on active duty; no 
stoppage of gas or electricity; arrearage.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive 
order of the President of the United States, an act of the 
Congress of the United States, or an order of the Governor.
    "Service member" means a member of the armed services or 
reserve forces of the United States or a member of the Illinois 
National Guard.

    (b) No company or electric cooperative shall stop gas or 
electricity from entering the residential premises of which a 
service member was a primary occupant immediately before the 
service member was  deployed on active duty for nonpayment for 
gas or electricity supplied to the residential premises.
    (c) In order to be eligible for the benefits granted to 
service members under this Section, a service member must 
provide the company or electric cooperative with a copy of the 
military or gubernatorial orders calling the service member to 
active duty and of any orders further extending the service 
member's period of active duty.

    (d) Upon the return from active duty of a residential 
consumer who is a service member, the company or electric 
cooperative shall offer the residential consumer a period equal 
to at least the period of deployment on active duty to pay any 
arrearages incurred during the period of the residential 
consumer's deployment. The company or electric cooperative 
shall inform the residential consumer that, if the period that 
the company or electric cooperative offers presents a hardship 
to the consumer, the consumer may request a longer period to 
pay the arrearages and, in the case of a company that is a 
public utility, may request the assistance of the Illinois 
Commerce Commission to obtain a longer period. No late payment 
fees or interest shall be charged to the residential consumer 
during the period of deployment or the repayment period.
 
    Section 915. The Code of Civil Procedure is amended  by 
adding Section 9-107.10 as follows:
 
    (735 ILCS 5/9-107.10  new)
    Sec. 9-107.10. Military personnel on active duty; action 
for possession.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive 
order of the President of the United States, an act of the 
Congress of the United States, or an order of the Governor.
    "Service member" means a member of the armed services or 
reserve forces of the United States or a member of the Illinois 
National Guard.

    (b) In an action for possession of residential premises of 
a tenant, including a tenant who is a resident of a mobile home 
park, who is a service member deployed on active duty, or of 
any member of the tenant's family who resides with the tenant, 
if the tenant entered into the rental agreement on or after the 
effective date of this amendatory Act of the 94th General 
Assembly, the court may, on its own motion, and shall, upon 
motion made by or on behalf of the tenant, do either of the 
following if the tenant's ability to pay the agreed rent is 
materially affected by the tenant's deployment on active duty:
        (1) Stay the proceedings for a period of 90 days, 
    unless, in the opinion of the court, justice and equity 
    require a longer or shorter period of time.
        (2) Adjust the obligation under the rental agreement to 
    preserve the interest of all parties to it.
    (c) In order to be eligible for the benefits granted to 
service members under this Section, a service member or a 
member of the service member's family who resides with the 
service member must provide the landlord or mobile home park 
operator with a copy of the military or gubernatorial orders 
calling the service member to active duty and of any orders 
further extending the service member's period of active duty.

    (d) If a stay is granted under this Section, the court may 
grant the landlord or mobile home park operator such relief as 
equity may require.
 
    Section 920. The Interest Act is amended  by changing 
Section 4 and  by adding Section 4.05 as follows:
 



    (815 ILCS 205/4)  (from Ch. 17, par. 6404)



    Sec. 4. General interest rate. 

    (1) Except as otherwise provided in this Section 4.05, in

In all written contracts it shall be lawful for the parties to

stipulate or agree that 9% per annum, or any less sum of 
interest, shall be
taken and paid upon every $100 of money 
loaned or in any manner due and
owing from any person to any 
other person or corporation in this state, and
after that rate 
for a greater or less sum, or for a longer or shorter time,

except as herein provided.

    The maximum rate of interest that may lawfully be 
contracted for is
determined by the law applicable thereto at 
the time the contract is
made.  Any provision in any contract, 
whether made before or after July
1, 1969, which provides for 
or purports to authorize, contingent upon a
change in the 
Illinois law after the contract is made, any rate of
interest 
greater than the maximum lawful rate at the time the contract

is made, is void.

    It is lawful for a state bank or a branch of an 
out-of-state bank, as those
terms are defined in Section 2 of 
the Illinois Banking Act, to receive or to
contract to receive

and collect interest and charges at any rate or rates agreed 
upon by
the bank or branch and the borrower.
It is lawful for a 
savings bank chartered under the Savings Bank Act or a
savings 
association chartered under the Illinois Savings and Loan Act 
of 1985
to receive or contract to receive and collect interest 
and charges at any rate
agreed upon by the savings bank or 
savings association and the borrower.

    It is lawful to receive or to contract to receive and 
collect
interest and charges as authorized by this Act and as 
authorized by the
Consumer Installment Loan Act and by the 
"Consumer Finance Act", approved July
10,
1935, as now or 
hereafter amended.  It is lawful to charge, contract
for, and 
receive any rate or amount of interest or compensation with

respect to the following transactions:


        (a) Any loan made to a corporation;


        (b) Advances of money, repayable on demand, to an 
    amount not less
than $5,000, which are made upon warehouse 
    receipts, bills of lading,
certificates of stock, 
    certificates of deposit, bills of exchange, bonds
or other 
    negotiable instruments pledged as collateral security for 
    such
repayment, if evidenced by a writing;


        (c) Any credit transaction between a merchandise 
    wholesaler and
retailer; any business loan to a business 
    association or copartnership
or to a person owning and 
    operating a business as sole proprietor or to
any persons 
    owning and operating a business as joint venturers, joint

    tenants or tenants in common, or to any limited 
    partnership, or to any
trustee owning and operating a 
    business or whose beneficiaries own and
operate a business, 
    except that any loan which is secured (1) by an
assignment 
    of an individual obligor's salary, wages, commissions or

    other compensation for services, or (2) by his household 
    furniture or
other goods used for his personal, family or 
    household purposes shall be
deemed not to be a loan within 
    the meaning of this subsection; and
provided further that a 
    loan which otherwise qualifies as a business
loan within 
    the meaning of this subsection shall not be deemed as not 
    so
qualifying because of the inclusion, with other security 
    consisting of
business assets of any such obligor, of real 
    estate occupied by an
individual obligor solely as his 
    residence.  The term "business" shall
be deemed to mean a 
    commercial, agricultural or industrial enterprise
which is 
    carried on for the purpose of investment or profit, but 
    shall
not be deemed to mean the ownership or maintenance of 
    real estate
occupied by an individual obligor solely as his 
    residence;


        (d) Any loan made in accordance with the provisions of 
    Subchapter I
of Chapter 13 of Title 12 of the United States 
    Code, which is designated
as "Housing Renovation and 
    Modernization";


        (e) Any mortgage loan insured or upon which a 
    commitment to insure
has been issued under the provisions 
    of the National Housing Act,
Chapter 13 of Title 12 of the 
    United States Code;


        (f) Any mortgage loan guaranteed or upon which a 
    commitment to
guaranty has been issued under the provisions 
    of the Veterans' Benefits
Act, Subchapter II of Chapter 37 
    of Title 38 of the United States Code;


        (g) Interest charged by a broker or dealer registered 
    under the
Securities Exchange Act of 1934, as amended, or 
    registered under the
Illinois Securities Law of 1953, 
    approved July 13, 1953, as now or
hereafter amended, on a 
    debit balance in an account for a customer if
such debit 
    balance is payable at will without penalty and is secured 
    by
securities as defined in Uniform Commercial 
    Code-Investment Securities;


        (h) Any loan made by a participating bank as part of 
    any loan
guarantee program which provides for loans and for 
    the refinancing of
such loans to medical students, interns 
    and residents and which are
guaranteed by the American 
    Medical Association Education and Research
Foundation;


        (i) Any loan made, guaranteed, or insured in accordance 
    with the
provisions of the Housing Act of 1949, Subchapter 
    III of Chapter 8A of
Title 42 of the United States Code and 
    the Consolidated Farm and Rural
Development Act, 
    Subchapters I, II, and III of Chapter 50 of Title 7 of
the 
    United States Code;


        (j) Any loan by an employee pension benefit plan, as 
    defined in Section
3 (2) of the Employee Retirement Income 
    Security Act of 1974 (29 U.S.C.A.
Sec. 1002), to an 
    individual participating in such plan, provided that such

    loan satisfies the prohibited transaction exemption 
    requirements of Section
408 (b) (1) (29 U.S.C.A. Sec. 1108 
    (b) (1)) or Section 2003 (a) (26 U.S.C.A.
Sec. 4975 (d) 
    (1)) of the Employee Retirement Income Security Act of 
    1974;


        (k) Written contracts, agreements or bonds for deed 
    providing for
installment purchase of real estate;


        (1) Loans secured by a mortgage on real estate;


        (m) Loans made by a sole proprietorship, partnership, 
    or corporation to
an employee or to a person who has been 
    offered employment by such sole
proprietorship, 
    partnership, or corporation made for the sole purpose of

    transferring an employee or person who has been offered 
    employment to another
office maintained and operated by the 
    same sole proprietorship, partnership,
or corporation;


        (n) Loans to or for the benefit of students made by an 
    institution of
higher education.

    (2) Except for loans described in subparagraph (a), (c), 
(d),
(e), (f) or (i) of subsection (1) of this Section, and 
except to the
extent permitted by the applicable statute for 
loans made pursuant to
Section 4a or pursuant to the Consumer 
Installment Loan Act:


        (a) Whenever the rate of interest exceeds 8% per annum 
    on any
written contract, agreement or bond for deed 
    providing for the installment
purchase of residential real 
    estate, or on any loan secured by a mortgage
on residential 
    real estate, it shall be unlawful to provide for a

    prepayment penalty or other charge for prepayment.


        (b) No agreement, note or other instrument evidencing a 
    loan
secured by a mortgage on residential real estate, or 
    written contract,
agreement or bond for deed providing for 
    the installment purchase of
residential real estate, may 
    provide for any change in the contract rate of
interest 
    during the term thereof.  However, if the Congress of the 
    United
States or any federal agency authorizes any class of 
    lender to enter, within
limitations, into mortgage 
    contracts or written contracts, agreements or
bonds for 
    deed in which the rate of interest may be changed during 
    the
term of the contract, any person, firm, corporation or 
    other entity
not otherwise prohibited from entering into 
    mortgage contracts or
written contracts, agreements or 
    bonds for deed in Illinois may enter
into mortgage 
    contracts or written contracts, agreements or bonds
for 
    deed in which the rate of interest may be changed during 
    the term
of the contract, within the same limitations.

    (3) In any contract or loan which is secured by a mortgage, 
deed of
trust, or conveyance in the nature of a mortgage, on 
residential real
estate, the interest which is computed, 
calculated, charged, or collected
pursuant to such contract or 
loan, or pursuant to any regulation or rule
promulgated 
pursuant to this Act, may not be computed, calculated, charged

or collected for any period of time occurring after the date on 
which the
total indebtedness, with the exception of late 
payment penalties, is paid
in full.

    For purposes of this Section, a prepayment shall mean the 
payment of the
total indebtedness, with the exception of late 
payment penalties if
incurred or charged, on any date before 
the date specified in the contract
or loan agreement on which 
the total indebtedness shall be paid in full, or
before the 
date on which all payments, if timely made, shall have been

made.  In the event of a prepayment of the indebtedness which is 
made on a
date after the date on which interest on the 
indebtedness was last
computed, calculated, charged, or 
collected but before the next date on
which interest on the 
indebtedness was to be calculated, computed, charged,
or 
collected, the lender may calculate, charge and collect 
interest on the
indebtedness for the period which elapsed 
between the date on which the
prepayment is made and the date 
on which interest on the indebtedness was
last computed, 
calculated, charged or collected at a rate equal to 1/360 of

the annual rate for each day which so elapsed, which rate shall 
be applied
to the indebtedness outstanding as of the date of 
prepayment.  The lender
shall refund to the borrower any 
interest charged or collected which
exceeds that which the 
lender may charge or collect pursuant to the
preceding 
sentence. The provisions of this amendatory Act of 1985 shall

apply only to contracts or loans entered into on or after the 
effective
date of this amendatory Act, but shall not apply to 
contracts or loans
entered into on or after that date that are 
subject to Section 4a of this
Act, the Consumer Installment 
Loan Act, or the Retail Installment Sales
Act, or that provide 
for the refund of precomputed interest on prepayment
in the 
manner provided by such Act.

(Source: P.A. 92-483, eff. 8-23-01.)

 
    (815 ILCS 205/4.05  new)
    Sec. 4.05. Military personnel on active duty; limitation on 
interest rate.
    (a) In this Section:
    "Active duty" means active duty pursuant to an executive 
order of the President of the United States, an act of the 
Congress of the United States, or an order of the Governor.
    "Obligation" means any retail installment sales contract, 
other contract for the purchase of goods or services, or bond, 
bill, note, or other instrument of writing for the payment of 
money arising out of a contract or other transaction for the 
purchase of goods or services.
    "Service member" means a member of the armed services or 
reserve forces of the United States or a member of the Illinois 
National Guard.

    (b) Notwithstanding any contrary provision of State law, 
but subject to the federal Servicemembers Civil Relief Act, no 
creditor in connection with an obligation entered into on or 
after the effective date of this amendatory Act of the 94th 
General Assembly, but prior to a service member's deployment on 
active duty, shall charge or collect from a service member who 
is deployed on active duty, or the spouse of that service 
member, interest or finance charges exceeding 6% per annum 
during the period that the service member is deployed on active 
duty.
    (c) Notwithstanding any contrary provision of law, 
interest or finance charges in excess of 6% per annum that 
otherwise would be incurred but for the prohibition in 
subsection (b) are forgiven.
    (d) The amount of any periodic payment due from a service 
member who is deployed on active duty, or the spouse of that 
service member, under the terms of the obligation shall be 
reduced by the amount of the interest and finance charges 
forgiven under subsection (c) that is allocable to the period 
for which the periodic payment is made.
    (e) In order for an obligation to be subject to the 
interest and finance charges limitation of this Section, the 
service member deployed on active duty, or the spouse of that 
service member, shall provide the creditor with written notice 
of and a copy of the military or gubernatorial orders calling 
the service member to active duty and of any orders further 
extending the service member's period of active duty, not later 
than 180 days after the date of the service member's 
termination of or release from active duty.
    (f) Upon receipt of the written notice and a copy of the 
orders referred to in subsection (e), the creditor shall treat 
the obligation in accordance with subsection (b), effective as 
of the date on which the service member is deployed to active 
duty.
    (g) A court may grant a creditor relief from the interest 
and finance charges limitation of this Section, if, in the 
opinion of the court, the ability of the service member 
deployed on active duty, or the spouse of that service member, 
to pay interest or finance charges with respect to the 
obligation at a rate in excess of 6% per annum is not 
materially affected by reason of the service member's 
deployment on active duty.
 
    Section 925. The Motor Vehicle Leasing Act is amended  by 
adding Section 37 as follows:
 
    (815 ILCS 636/37  new)
    Sec. 37. Military personnel on active duty; termination of 
lease.
    (a) In this Act:
    "Active duty" means active duty pursuant to an executive 
order of the President of the United States, an act of the 
Congress of the United States, or an order of the Governor.
    "Motor vehicle" means any automobile, car minivan, 
passenger van, sport utility vehicle, pickup truck, or other 
self-propelled vehicle not operated or driven on fixed rails or 
track.
    "Service member" means a member of the armed services or 
reserve forces of the United States or a member of the Illinois 
National Guard.

    (b) Any service member who is deployed on active duty for a 
period of not less than 180 days, or the spouse of that service 
member, may terminate any motor vehicle lease that meets both 
of the following requirements:
        (1) The lease is entered into on or after the effective 
    date of this amendatory Act of the 94th General Assembly.
        (2) The lease is executed by or on behalf of the 
    service member who is deployed on active duty.
    (c) Termination of the motor vehicle lease shall not be 
effective until:
        (1) the service member who is deployed on active duty, 
    or the service member's spouse, gives the lessor by 
    certified mail, return receipt requested, a notice of the 
    intention to terminate the lease together with a copy of 
    the military or gubernatorial orders calling the service 
    member to active duty and of any orders further extending 
    the service member's period of active duty; and
        (2) the motor vehicle subject to the lease is returned 
    to the custody or control of the lessor not later than 15 
    days after the delivery of the written notice.
    (d) Lease amounts unpaid for the period preceding the 
effective date of the lease's termination shall be paid on a 
prorated basis. The lessor may not impose an early termination 
charge, but any taxes, costs of summons, and title or 
registration fees and any other obligation and liability of the 
lessee under the terms of the lease, including reasonable 
charges to the lessee for excess wear, use, and mileage, that 
are due and unpaid at the time of the lease's termination shall 
be paid by the lessee.
    (e) The lessor shall refund to the lessee lease amounts 
paid in advance for a period after the effective date of the 
lease's termination within 30 days after the effective date of 
the lease's termination.
    (f) Upon application by the lessor to a court before the 
effective date of the lease's termination, relief granted by 
this Section may be modified as justice and equity require.

 
    Section 999. Effective date. This Act takes effect upon 
becoming law.