Bill Text: IL SB3283 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Motor Vehicle Retail Installment Sales Act. Provides that each person, other than a seller or holder, who signs a retail installment contract may be held liable only to the extent that he actually receives the motor vehicle described or identified in the contract, except that a parent or spouse or any other person who co-signs such retail installment contract (rather than any other person listed as an owner of the motor vehicle on the Certificate of Title issued for the motor vehicle who co-signs such retail installment contract) may be held liable to the full extent of the deferred payment price notwithstanding such parent or spouse or any other person listed as an owner has not actually received the motor vehicle described or identified in the contract and except to the extent such person other than a seller or holder, signs in the capacity of a guarantor of collection.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-07 - Referred to Assignments [SB3283 Detail]

Download: Illinois-2023-SB3283-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3283 Introduced 2/7/2024, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
815 ILCS 375/18 from Ch. 121 1/2, par. 578
Amends the Motor Vehicle Retail Installment Sales Act. Provides that each person, other than a seller or holder, who signs a retail installment contract may be held liable only to the extent that he actually receives the motor vehicle described or identified in the contract, except that a parent or spouse or any other person who co-signs such retail installment contract (rather than any other person listed as an owner of the motor vehicle on the Certificate of Title issued for the motor vehicle who co-signs such retail installment contract) may be held liable to the full extent of the deferred payment price notwithstanding such parent or spouse or any other person listed as an owner has not actually received the motor vehicle described or identified in the contract and except to the extent such person other than a seller or holder, signs in the capacity of a guarantor of collection.
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A BILL FOR
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AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Motor Vehicle Retail Installment Sales Act
is amended by changing Section 18 as follows:
(815 ILCS 375/18) (from Ch. 121 1/2, par. 578)
Sec. 18. Each person, other than a seller or holder, who
signs a retail installment contract may be held liable only to
the extent that he actually receives the motor vehicle
described or identified in the contract, except that a parent
or spouse or any other person listed as an owner of the motor
vehicle on the Certificate of Title issued for the motor
vehicle who co-signs such retail installment contract may be
held liable to the full extent of the deferred payment price
notwithstanding such parent or spouse or any other person
listed as an owner has not actually received the motor vehicle
described or identified in the contract and except to the
extent such person other than a seller or holder, signs in the
capacity of a guarantor of collection.
The obligation of such guarantor is secondary, and not
primary. The obligation arises only after the seller or holder
has diligently taken all ordinary legal means to collect the
debt from the primary obligor, but has not received full

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payment from such primary obligor or obligors, or after the
primary obligor has become insolvent, or service of summons
cannot be obtained on the primary obligor, or it is otherwise
apparent that it is useless to proceed against the primary
obligor.
No provisions in a retail installment contract obligating
such guarantor are valid unless:
(1) there appears below the signature space provided
for such guarantor the following:
"I hereby guarantee the collection of the above
described amount upon failure of the seller named herein
to collect said amount from the buyer named herein."; and
(2) the guarantor, in addition to signing the retail
installment contract, signs a separate instrument in the
following form:
"EXPLANATION OF GUARANTOR'S OBLIGATION
You ........... (name of guarantor) by signing the
retail installment contract and this document are agreeing
that you will pay $......... (total deferred payment
price) for the purchase of ........... (description of
goods or services) purchased by ............ (name of
buyer) from ........... (name of seller).
Your obligation arises only after the seller or holder
has attempted through the use of the court system to
collect this amount from the buyer.
If the seller cannot collect this amount from the

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