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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1578
Introduced 2/19/2009, by Sen. A. J. Wilhelmi SYNOPSIS AS INTRODUCED:
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815 ILCS 160/2 |
from Ch. 17, par. 7102 |
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Amends the Credit Agreements Act. Provides that specified provisions shall not constitute a defense to a claim that arises out of bad faith conduct intended to unjustly benefit a creditor or a third party. Provides that the mere failure by a creditor to enter into a credit agreement with or to provide a written commitment to a debtor, without more, shall not constitute bad faith under specified provisions. Provides for the legislative intent of the General Assembly and that certain provisions apply to pending actions as well as actions commenced on or after the effective date of the amendatory Act. Effective immediately.
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A BILL FOR
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SB1578 |
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LRB096 11014 MJR 21301 b |
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Credit Agreements Act is amended by changing |
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| Section 2 as follows:
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| (815 ILCS 160/2) (from Ch. 17, par. 7102)
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| Sec. 2. Credit agreements to be in writing. |
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| (a) A debtor may not
maintain an action on or in any way |
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| related to a credit agreement unless
the credit agreement is in |
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| writing, expresses an agreement or commitment to
lend money or |
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| extend credit or delay or forbear repayment of money, sets
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| forth the relevant terms and conditions, and is signed by the |
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| creditor and
the debtor. |
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| (b) This Section shall not constitute a defense to a claim |
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| that arises out of bad faith conduct intended to unjustly |
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| benefit a creditor or a third party. Mere failure by a creditor |
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| to enter into a credit agreement with or to provide a written |
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| commitment to a debtor, without more, shall not constitute bad |
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| faith under this Section. |
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| (c) By enacting this amendatory Act of the 96th General |
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| Assembly, it is the intent of the General Assembly to make |
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| explicit the original meaning of Section 2 of the Credit |
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| Agreements Act. See Machinery Transports of Illinois v. Morton |