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91_SB0356
LRB9103207JSpc
1 AN ACT concerning loans and interest.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Interest Act is amended by changing
5 Section 4.1 as follows:
6 (815 ILCS 205/4.1) (from Ch. 17, par. 6405)
7 Sec. 4.1. Revolving credit defined. The term "revolving
8 credit" means an arrangement, including by means of a credit
9 card as defined in Section 2.03 of the Illinois Credit Card
10 Act between a lender and debtor pursuant to which it is
11 contemplated or provided that the lender may from time to
12 time make loans or advances to or for the account of the
13 debtor through the means of drafts, items, orders for the
14 payment of money, evidences of debt or similar written
15 instruments, whether or not negotiable, signed by the debtor
16 or by any person authorized or permitted so to do on behalf
17 of the debtor, which loans or advances are charged to an
18 account in respect of which account the lender is to render
19 bills or statements to the debtor at regular intervals
20 (hereinafter sometimes referred to as the "billing cycle")
21 the amount of which bills or statements is payable by and due
22 from the debtor on a specified date stated in such bill or
23 statement or at the debtor's option, may be payable by the
24 debtor in installments. A revolving credit arrangement which
25 grants the debtor a line of credit in excess of $5,000 may
26 include provisions granting the lender a security interest in
27 real property or in a beneficial interest in a land trust to
28 secure amounts of credit extended by the lender. Credit
29 extended or available under a revolving credit plan operated
30 in accordance with the Illinois Financial Services
31 Development Act shall be deemed to be "revolving credit" as
-2- LRB9103207JSpc
1 defined in this Section 4.1 but shall not be subject to
2 Sections 4.1a, 4.2 or 4.3 hereof.
3 Whenever a lender is granted a security interest in real
4 property or in a beneficial interest in a land trust, the
5 lender shall disclose the existence of such interest to the
6 borrower in compliance with the Federal Truth in Lending Act,
7 amendments thereto, and any regulations issued or which may
8 be issued thereunder, and shall agree to pay all expenses,
9 including recording fees and otherwise, to release any such
10 security interest of record whenever it no longer secures any
11 credit under a revolving credit arrangement. A lender shall
12 not be granted a security interest in any real property or in
13 any beneficial interest in a land trust under a revolving
14 credit arrangement, or if any such security interest exists,
15 such interest shall be released, if a borrower renders
16 payment of the total outstanding balance due under the
17 revolving credit arrangement and requests in writing to
18 reduce the line of credit below that amount for which a
19 security interest in real property or in a beneficial
20 interest in a land trust may be required by a lender. Any
21 request by a borrower to release a security interest under a
22 revolving credit arrangement shall be granted by the lender
23 provided the borrower renders payment of the total
24 outstanding balance as required by this Section before the
25 security interest of record may be released.
26 (Source: P.A. 85-1432.)