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91_SB0356eng SB356 Engrossed 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 SB356 Engrossed -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.)