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| | HB2508 Engrossed | | LRB098 08562 JLS 38677 b |
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1 | | AN ACT concerning business.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Motor Vehicle Franchise Act is amended by |
5 | | changing Section 10.1 as follows:
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6 | | (815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1)
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7 | | Sec. 10.1.
(a) As used in this Section, "motorcycle" means |
8 | | every motor
vehicle having a seat or saddle for the use of the |
9 | | rider and designed to
travel with 3 or less wheels in contact |
10 | | with the ground, excluding farm,
garden, and lawn equipment, |
11 | | and including off-highway
vehicles.
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12 | | (b) It shall be deemed a violation for a manufacturer, a |
13 | | distributor, a
wholesaler, a distributor branch or division, or |
14 | | officer, agent or other
representative thereof:
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15 | | (1) To require a motorcycle franchisee to participate |
16 | | in a retail
financing plan or retail leasing plan or to |
17 | | participate in any retail
consumer insurance plan.
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18 | | (2) To own, to operate or to control any motorcycle |
19 | | dealership in this
State for a period longer than 2 years.
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20 | | (3) Whenever any motorcycle dealer enters into a |
21 | | franchise agreement,
evidenced by a contract, with a |
22 | | wholesaler, manufacturer or distributor
wherein the |
23 | | franchisee agrees to maintain an inventory and the contract |
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1 | | is
terminated by the wholesaler, manufacturer, |
2 | | distributor, or franchisee,
then the franchisee may |
3 | | require the repurchase of the inventory as provided
for in |
4 | | this Act. If the franchisee has any outstanding debts to |
5 | | the
wholesaler, manufacturer or distributor then the |
6 | | repurchase amount may be
credited to the franchisee's |
7 | | account.
The franchise agreement shall either expressly or |
8 | | by operation of law have as
part of its terms a security |
9 | | agreement whereby the wholesaler, manufacturer, or
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10 | | distributor agrees to and does grant a security interest to |
11 | | the motorcycle
dealer in the repurchased inventory to |
12 | | secure payment of the repurchase amount
to the dealer. The |
13 | | perfection, priority, and
other matters relating to the |
14 | | security interest shall be governed by Article 9
of the |
15 | | Uniform Commercial Code. The provisions of this Section |
16 | | shall not be
construed to affect in any way any security |
17 | | interest that any financial
institution, person, |
18 | | wholesaler, manufacturer, or distributor may have in the
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19 | | inventory of the motorcycle dealer.
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20 | | (4) To require a motorcycle dealer to install on the |
21 | | dealership premises any fixtures, displays, or lighting |
22 | | not specifically related to products not made by the |
23 | | manufacturer. |
24 | | (5) To require a motorcycle dealer to buy fixtures or |
25 | | lighting that is to be installed in the dealership only |
26 | | from the manufacturer's approved fixture, display, or |
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1 | | lighting distributor. |
2 | | (6) To require a motorcycle dealer to segregate or |
3 | | locate aftermarket products of one manufacturer into or |
4 | | away from products of other manufacturers. |
5 | | (7) To require a motorcycle dealer to relocate to a new |
6 | | or alternate facility. |
7 | | (c) The provisions of this Section 10.1 are applicable to |
8 | | all new or
existing
motorcycle
franchisees and franchisors and |
9 | | are in addition to the other rights and
remedies provided in |
10 | | this Act, and, in the case of a conflict with other
provisions |
11 | | contained in this Act, with respect to motorcycle franchises,
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12 | | this Section shall be controlling.
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13 | | (d) The filing of a timely protest by a motorcycle |
14 | | franchise before the
Motor Vehicle
Review Board as prescribed |
15 | | by Sections 12 and 29 of this Act, shall stay the
effective
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16 | | date of a proposed additional franchise or selling agreement, |
17 | | or the effective
date of a
proposed motorcycle dealership |
18 | | relocation, or the effective date of a
cancellation,
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19 | | termination or modification, or extend the expiration date of a |
20 | | franchise or
selling
agreement by refusal to honor succession |
21 | | to ownership or refusal to approve a
sale
or
transfer pending a |
22 | | final determination of the issues in the hearing.
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23 | | (Source: P.A. 91-142, eff. 7-16-99.)
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