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91_SB0377eng SB377 Engrossed LRB9104949KSgc 1 AN ACT to amend the Motor Vehicle Franchise Act by 2 changing Section 10.1. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Motor Vehicle Franchise Act is amended by 6 changing Section 10.1 as follows: 7 (815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1) 8 Sec. 10.1. (a) As used in this Section, "motorcycle" 9 means every motor vehicle having a seat or saddle for the use 10 of the rider and designed to travel with 3 or less wheels in 11 contact with the ground, excluding farm, garden, and lawn 12 equipment, and including off-highway vehicles. 13 (b) It shall be deemed a violation for a manufacturer, a 14 distributor, a wholesaler, a distributor branch or division, 15 or officer, agent or other representative thereof: 16 (1) To require a motorcycle franchisee to 17 participate in a retail financing plan or retail leasing 18 plan or to participate in any retail consumer insurance 19 plan. 20 (2) To own, to operate or to control any motorcycle 21 dealership in this State for a period longer than 2 22 years. 23 (3) Whenever any motorcycle dealer enters into a 24 franchise agreement, evidenced by a contract, with a 25 wholesaler, manufacturer or distributor wherein the 26 franchisee agrees to maintain an inventory and the 27 contract is terminated by the wholesaler, manufacturer, 28 distributor, or franchisee, then the franchisee may 29 require the repurchase of the inventory as provided for 30 in this Act. If the franchisee has any outstanding debts 31 to the wholesaler, manufacturer or distributor then the SB377 Engrossed -2- LRB9104949KSgc 1 repurchase amount may be credited to the franchisee's 2 account. The franchise agreement shall either expressly 3 or by operation of law have as part of its terms a 4 security agreement whereby the wholesaler, manufacturer, 5 or distributor agrees to and does grant a security 6 interest to the motorcycle dealer in the repurchased 7 inventory to secure payment of the repurchase amount to 8 the dealer. The perfection, priority, and other matters 9 relating to the security interest shall be governed by 10 Article 9 of the Uniform Commercial Code. The provisions 11 of this Section shall not be construed to affect in any 12 way any security interest that any financial institution, 13 person, wholesaler, manufacturer, or distributor may have 14 in the inventory of the motorcycle dealer. 15 (c) The provisions of this Section 10.1 are applicable 16 to all new or existing motorcycle franchisees and franchisors 17 and are in addition to the other rights and remedies provided 18 in this Act, and, in the case of a conflict with other 19 provisions contained in this Act, with respect to motorcycle 20 franchises, this Section shall be controlling. 21 (d) The filing of a timely protest by a motorcycle 22 franchise before the Motor Vehicle Review Board as prescribed 23 by Sections 12 and 29 of this Act, shall stay the effective 24 date of a proposed additional franchise or selling agreement, 25 or the effective date of a proposed motorcycle dealership 26 relocation, or the effective date of a cancellation, 27 termination or modification, or extend the expiration date of 28 a franchise or selling agreement by refusal to honor 29 succession to ownership or refusal to approve a sale or 30 transfer pending a final determination of the issues in the 31 hearing. 32 (Source: P.A. 88-349.) 33 Section 99. Effective date. This Act takes effect upon SB377 Engrossed -3- LRB9104949KSgc 1 becoming law.