2023 Illinois Compiled Statutes › Chapter 815 - BUSINESS TRANSACTIONS › 815 ILCS 205/ - Interest Act.

(815 ILCS 205/0.01) (from Ch. 17, par. 6400)
Sec. 0.01. 
		Short title. 
		This Act may be cited as the
Interest Act.
(Source: P.A. 86-1324.)
(815 ILCS 205/1) (from Ch. 17, par. 6401)
Sec. 1. 
		
		The rate of interest upon the loan or
forbearance of any money, goods or thing in action, shall be five dollars
($5) upon one hundred dollars ($100) for one year, and after that rate for
a greater or less sum, or for a longer or shorter time, except as herein
provided.
(Source: Laws 1891, p. 149.)
(815 ILCS 205/2) (from Ch. 17, par. 6402)
Sec. 2. 
		
		Creditors shall be allowed to receive at the rate of five (5) per
centum per annum for all moneys after they become due on any bond, bill,
promissory note, or other instrument of writing; on money lent or advanced
for the use of another; on money due on the settlement of account from the
day of liquidating accounts between the parties and ascertaining the
balance; on money received to the use of another and retained without the
owner's knowledge; and on money withheld by an unreasonable and vexatious
delay of payment.
In the absence of an agreement between the creditor and debtor governing
interest charges, upon 30 days' written
notice to the debtor, an assignee or agent of the creditor may charge
and collect interest as provided in this Section on behalf of a creditor.
(Source: P.A. 90-417, eff. 1-1-98.)
(815 ILCS 205/4) (from Ch. 17, par. 6404)
Sec. 4. General interest rate.
(1) Except as otherwise provided in Section 4.05, in all written contracts it shall be lawful for the parties to
stipulate or agree that an annual percentage rate of 9%, or any less sum, shall be
taken and paid upon every $100 of money loaned or in any manner due and
owing from any person to any other person or corporation in this state, and
after that rate for a greater or less sum, or for a longer or shorter time,
except as herein provided.
The maximum rate of interest that may lawfully be contracted for is
determined by the law applicable thereto at the time the contract is
made.  Any provision in any contract, whether made before or after July
1, 1969, which provides for or purports to authorize, contingent upon a
change in the Illinois law after the contract is made, any rate of
interest greater than the maximum lawful rate at the time the contract
is made, is void.
It is lawful for a state bank or a branch of an out-of-state bank, as those
terms are defined in Section 2 of the Illinois Banking Act, to receive or to
contract to receive
and collect interest and charges at any rate or rates agreed upon by
the bank or branch and the borrower.
It is lawful for a savings bank chartered under the Savings Bank Act or a
savings association chartered under the Illinois Savings and Loan Act of 1985
to receive or contract to receive and collect interest and charges at any rate
agreed upon by the savings bank or savings association and the borrower.
It is lawful to receive or to contract to receive and collect
interest and charges as authorized by this Act and as authorized by the
Consumer Installment Loan Act, the Payday Loan Reform Act, the Retail Installment Sales Act, the Illinois Financial Services Development Act, the Motor Vehicle Retail Installment Sales Act, or the Consumer Legal Funding Act.  It is lawful to charge, contract
for, and receive any rate or amount of interest or compensation, except as otherwise provided in the Predatory Loan Prevention Act, with
respect to the following transactions:
(a) Any loan made to a corporation;
(b) Advances of money, repayable on demand, to an     amount not less than $5,000, which are made upon warehouse receipts, bills of lading, certificates of stock, certificates of deposit, bills of exchange, bonds or other negotiable instruments pledged as collateral security for such repayment, if evidenced by a writing;
(c) Any credit transaction between a merchandise     wholesaler and retailer; any business loan to a business association or copartnership or to a person owning and operating a business as sole proprietor or to any persons owning and operating a business as joint venturers, joint tenants or tenants in common, or to any limited partnership, or to any trustee owning and operating a business or whose beneficiaries own and operate a business, except that any loan which is secured (1) by an assignment of an individual obligor's salary, wages, commissions or other compensation for services, or (2) by his household furniture or other goods used for his personal, family or household purposes shall be deemed not to be a loan within the meaning of this subsection; and provided further that a loan which otherwise qualifies as a business loan within the meaning of this subsection shall not be deemed as not so qualifying because of the inclusion, with other security consisting of business assets of any such obligor, of real estate occupied by an individual obligor solely as his residence.  The term "business" shall be deemed to mean a commercial, agricultural or industrial enterprise which is carried on for the purpose of investment or profit, but shall not be deemed to mean the ownership or maintenance of real estate occupied by an individual obligor solely as his residence;
(d) Any loan made in accordance with the provisions     of Subchapter I of Chapter 13 of Title 12 of the United States Code, which is designated as "Housing Renovation and Modernization";
(e) Any mortgage loan insured or upon which a     commitment to insure has been issued under the provisions of the National Housing Act, Chapter 13 of Title 12 of the United States Code;
(f) Any mortgage loan guaranteed or upon which a     commitment to guaranty has been issued under the provisions of the Veterans' Benefits Act, Subchapter II of Chapter 37 of Title 38 of the United States Code;
(g) Interest charged by a broker or dealer registered     under the Securities Exchange Act of 1934, as amended, or registered under the Illinois Securities Law of 1953, approved July 13, 1953, as now or hereafter amended, on a debit balance in an account for a customer if such debit balance is payable at will without penalty and is secured by securities as defined in Uniform Commercial Code-Investment Securities;
(h) Any loan made by a participating bank as part of     any loan guarantee program which provides for loans and for the refinancing of such loans to medical students, interns and residents and which are guaranteed by the American Medical Association Education and Research Foundation;
(i) Any loan made, guaranteed, or insured in     accordance with the provisions of the Housing Act of 1949, Subchapter III of Chapter 8A of Title 42 of the United States Code and the Consolidated Farm and Rural Development Act, Subchapters I, II, and III of Chapter 50 of Title 7 of the United States Code;
(j) Any loan by an employee pension benefit plan, as     defined in Section 3 (2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C.A. Sec. 1002), to an individual participating in such plan, provided that such loan satisfies the prohibited transaction exemption requirements of Section 408 (b) (1) (29 U.S.C.A. Sec. 1108 (b) (1)) or Section 2003 (a) (26 U.S.C.A. Sec. 4975 (d) (1)) of the Employee Retirement Income Security Act of 1974;
(k) Written contracts, agreements or bonds for deed     providing for installment purchase of real estate, including a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code that is real property as defined in the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act;
(l) Loans secured by a mortgage on real estate,     including a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code that is real property as defined in the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act;
(m) Loans made by a sole proprietorship, partnership,     or corporation to an employee or to a person who has been offered employment by such sole proprietorship, partnership, or corporation made for the sole purpose of transferring an employee or person who has been offered employment to another office maintained and operated by the same sole proprietorship, partnership, or corporation;
(n) Loans to or for the benefit of students made by     an institution of higher education.
(2) Except for loans described in subparagraph (a), (c), (d),
(e), (f) or (i) of subsection (1) of this Section, and except to the
extent permitted by the applicable statute for loans made pursuant to
Section 4a or pursuant to the Consumer Installment Loan Act:
(a) Whenever the rate of interest exceeds an annual     percentage rate of 8% on any written contract, agreement or bond for deed providing for the installment purchase of residential real estate, or on any loan secured by a mortgage on residential real estate, it shall be unlawful to provide for a prepayment penalty or other charge for prepayment.
(b) No agreement, note or other instrument evidencing     a loan secured by a mortgage on residential real estate, or written contract, agreement or bond for deed providing for the installment purchase of residential real estate, may provide for any change in the contract rate of interest during the term thereof.  However, if the Congress of the United States or any federal agency authorizes any class of lender to enter, within limitations, into mortgage contracts or written contracts, agreements or bonds for deed in which the rate of interest may be changed during the term of the contract, any person, firm, corporation or other entity not otherwise prohibited from entering into mortgage contracts or written contracts, agreements or bonds for deed in Illinois may enter into mortgage contracts or written contracts, agreements or bonds for deed in which the rate of interest may be changed during the term of the contract, within the same limitations.
(3) In any contract or loan which is secured by a mortgage, deed of
trust, or conveyance in the nature of a mortgage, on residential real
estate, the interest which is computed, calculated, charged, or collected
pursuant to such contract or loan, or pursuant to any regulation or rule
promulgated pursuant to this Act, may not be computed, calculated, charged
or collected for any period of time occurring after the date on which the
total indebtedness, with the exception of late payment penalties, is paid
in full.
(4) For purposes of this Section, a prepayment shall mean the payment of the
total indebtedness, with the exception of late payment penalties if
incurred or charged, on any date before the date specified in the contract
or loan agreement on which the total indebtedness shall be paid in full, or
before the date on which all payments, if timely made, shall have been
made.  In the event of a prepayment of the indebtedness which is made on a
date after the date on which interest on the indebtedness was last
computed, calculated, charged, or collected but before the next date on
which interest on the indebtedness was to be calculated, computed, charged,
or collected, the lender may calculate, charge and collect interest on the
indebtedness for the period which elapsed between the date on which the
prepayment is made and the date on which interest on the indebtedness was
last computed, calculated, charged or collected at a rate equal to 1/360 of
the annual rate for each day which so elapsed, which rate shall be applied
to the indebtedness outstanding as of the date of prepayment.  The lender
shall refund to the borrower any interest charged or collected which
exceeds that which the lender may charge or collect pursuant to the
preceding sentence. The provisions of this amendatory Act of 1985 shall
apply only to contracts or loans entered into on or after the effective
date of this amendatory Act, but shall not apply to contracts or loans
entered into on or after that date that are subject to Section 4a of this
Act, the Consumer Installment Loan Act, the Payday Loan Reform Act, the Predatory Loan Prevention Act, or the Retail Installment Sales
Act, or that provide for the refund of precomputed interest on prepayment
in the manner provided by such Act.
(5) For purposes of items (a) and (c) of subsection (1) of this Section, a rate or amount of interest may be lawfully computed when applying the ratio of the annual interest rate over a year based on 360 days.  The provisions of this amendatory Act of the 96th General Assembly are declarative of existing law.
(6)  For purposes of this Section, "real estate" and "real property" include a manufactured home, as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code that is real property as defined in the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 101-658, eff. 3-23-21; 102-987, eff. 5-27-22.)
(815 ILCS 205/4.05)
Sec. 4.05. Military personnel in military service; limitation on interest rate.
(a) In this Section:
"Military service" means any full-time training or duty, no matter how described under federal or State law, for which a service member is ordered to report by the President, Governor of a state, commonwealth, or territory of the United States, or other appropriate military authority.
"Obligation" means any retail installment sales contract, other contract for the purchase of goods or services, or bond, bill, note, or other instrument of writing for the payment of money arising out of a contract or other transaction for the purchase of goods or services.
"Service member" means a resident of Illinois who is a member of any component of the U.S. Armed Forces or the National Guard of any state, the District of Columbia, a commonwealth, or a territory of the United States.
(b) Notwithstanding any contrary provision of State law, but subject to the federal Servicemembers Civil Relief Act, no creditor in connection with an obligation entered into on or after the effective date of this amendatory Act of the 94th General Assembly, but prior to a service member's period of military service, shall charge or collect from a service member who has entered military service, or the spouse of that service member, interest or finance charges exceeding 6% per annum during the period of military service.
(c) Notwithstanding any contrary provision of law, interest or finance charges in excess of 6% per annum that otherwise would be incurred but for the prohibition in subsection (b) are forgiven.
(d) The amount of any periodic payment due from a service member who has entered military service, or the spouse of that service member, under the terms of the obligation shall be reduced by the amount of the interest and finance charges forgiven under subsection (c) that is allocable to the period for which the periodic payment is made.
(e) In order for an obligation to be subject to the interest and finance charges limitation of this Section, the service member who has entered military service, or the spouse of that service member, shall provide the creditor with written notice of and a copy of the orders calling the service member to military service in excess of 29 consecutive days and of any orders further extending the service member's period of service, not later than 180 days after the date of the service member's termination of or release from military service.
(f) Upon receipt of the written notice and a copy of the orders referred to in subsection (e), the creditor shall treat the obligation in accordance with subsection (b), effective as of the date on which the service member entered military service.
(g) A court may grant a creditor relief from the interest and finance charges limitation of this Section, if, in the opinion of the court, the ability of the service member who has entered military service, or the spouse of that service member, to pay interest or finance charges with respect to the obligation at a rate in excess of 6% per annum is not materially affected by reason of the service member's military service.
(h) A violation of this Section constitutes a civil rights violation under the Illinois Human Rights Act.
All proceeds from the collection of any civil penalty imposed under this subsection shall be deposited into the Illinois Military Family Relief Fund.
(Source: P.A. 97-913, eff. 1-1-13.)
(815 ILCS 205/4.1) (from Ch. 17, par. 6405)
Sec. 4.1. The term "revolving credit" means an arrangement, including by
means of a credit card as defined in Section 17-0.5 of the Criminal Code of 2012 between a lender and debtor pursuant to which it is contemplated or
provided that the lender may from time to time make loans or advances to or
for the account of the debtor through the means of drafts, items, orders
for the payment of money, evidences of debt or similar written instruments,
whether or not negotiable, signed by the debtor or by any person authorized
or permitted so to do on behalf of the debtor, which loans or advances are
charged to an account in respect of which account the lender is to render
bills or statements to the debtor at regular intervals (hereinafter
sometimes referred to as the "billing cycle") the amount of which bills or
statements is payable by and due from the debtor on a specified date stated
in such bill or statement or at the debtor's option, may be payable by the
debtor in installments. A revolving credit arrangement which grants the
debtor a line of credit in excess of $5,000 may include provisions
granting the lender a security interest in real property or in a
beneficial interest in a land trust to secure amounts
of credit extended by the lender.
Credit extended or available under a revolving credit plan operated in
accordance with the Illinois Financial Services Development Act shall be
deemed to be "revolving credit" as defined in this Section 4.1 but shall not
be subject to Sections 4.1a, 4.2 or 4.3 hereof.
Whenever a lender is granted a security interest in real property or
in a beneficial interest in a land trust, the lender shall disclose the
existence of such interest to the borrower in compliance with the Federal
Truth in Lending Act, amendments thereto, and any regulations issued or
which may be issued thereunder, and shall agree to pay all expenses,
including recording fees and otherwise, to release any such security interest
of record whenever it no longer secures any credit under a revolving credit
arrangement.  A lender shall not be granted a security interest in any real
property or in any beneficial interest in a land trust under a
revolving credit arrangement, or if any such security interest
exists, such interest shall be released, if a borrower renders payment of
the total outstanding balance due under the revolving credit arrangement
and requests in writing to reduce the line of credit below that
amount for which a security interest in real property or in a beneficial
interest in a land trust may be required by
a lender.  Any request by a borrower to release a security interest under a
revolving credit arrangement shall be granted by the lender provided the
borrower renders payment of the total outstanding balance as required by
this Section before the security interest of record may be released.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.)
(815 ILCS 205/4.1a) (from Ch. 17, par. 6406)
Sec. 4.1a. Charges for and cost of the following items paid or
incurred by any lender in connection with any loan shall not be deemed
to be charges for or in connection with any loan of money referred to in
Section 6 of this Act, or charges by the lender as a consideration for
the loan referred to in this Section:
(a) hazard, mortgage or life insurance premiums,     survey, credit report, title insurance, abstract and attorneys' fees, recording charges, escrow and appraisal fees, and similar charges.
(b) in the case of construction loans, in addition to     the matters referred to in clause (a) above, the actual cost incurred by the lender for services for making physical inspections, processing payouts, examining and reviewing contractors' and subcontractors' sworn statements and waivers of lien and the like.
(c) in the case of any loan made pursuant to the     provisions of the Emergency Home Purchase Assistance Act of 1974 (Section 313 of the National Housing Act, Chapter B of Title 12 of the United States Code), in addition to the matters referred to in paragraphs (a) and (b) of this Section all charges required or allowed by the Government National Mortgage Association, whether designated as processing fees, commitment fees, loss reserve and marketing fees, discounts, origination fees or otherwise designated.
(d) in the case of a single payment loan, made for a     period of 6 months or less, a regulated financial institution or licensed lender may contract for and receive a maximum charge of $15 in lieu of interest.  Such charge may be collected when the loan is made, but only one such charge may be contracted for, received, or collected for any such loan, including any extension or renewal thereof.
(e) if the agreement governing the loan so provides,     a charge not to exceed the rate permitted under Section 3-806 of the Uniform Commercial Code-Commercial Paper for any check, draft or order for the payment of money submitted in accordance with said agreement which is unpaid or not honored by a bank or other depository institution.
(f) if the agreement governing the loan so provides,     for each loan installment in default for a period of not less than 10 days, a charge in an amount not in excess of 5% of such loan installment.  Only one delinquency charge may be collected on any such loan installment regardless of the period during which it remains in default.  Payments timely received by the lender under a written extension or deferral agreement shall not be subject to any delinquency charge.
Notwithstanding items (k) and (l) of subsection (1) of Section 4 of this Act, the lender, in the case of any nonexempt residential mortgage loan, as defined in Section 1-4 of the Residential Mortgage License Act of 1987, other than a high risk home loan as defined in Section 10 of the High Risk Home Loan Act, shall have the right to include a prepayment penalty that extends no longer than the fixed rate period of a variable rate mortgage provided that, if a prepayment is made during the fixed rate period and not in connection with the sale or destruction of the dwelling securing the loan, the lender shall receive an amount that is no more than:
(1) 3% of the total loan amount if the prepayment is     made within the first 12-month period following the date the loan was made;
(2) 2% of the total loan amount if the prepayment is     made within the second 12-month period following the date the loan was made; or
(3) 1% of the total loan amount if the prepayment is     made within the third 12-month period following the date the loan was made, if the fixed rate period extends 3 years.
This Section applies to loans made, refinanced, renewed, extended, or modified on or after the effective date of this amendatory Act of the 95th General Assembly.
Where there is a charge in addition to the stated rate of interest
payable directly or indirectly by the borrower and imposed directly or
indirectly by the lender as a consideration for the loan, or for or in
connection with the loan of money, whether paid or payable by the
borrower, the seller, or any other person on behalf of the borrower to
the lender or to a third party, or for or in connection with the loan of
money, other than as hereinabove in this Section provided, whether
denominated "points," "service charge," "discount," "commission," or
otherwise, and without regard to declining balances of principal which
would result from any required or optional amortization of the principal
of the loan, the rate of interest shall be calculated in the following
manner:
The percentage of the principal amount of the loan represented by all
of such charges shall first be computed, which in the case of a loan
with an interest rate in excess of 8% per annum secured by residential
real estate, other than loans described in paragraphs (e) and (f) of
Section 4, shall not exceed 3% of such principal amount.  Said
percentage shall then be divided by the number of years and fractions
thereof of the period of the loan according to its stated maturity.  The
percentage thus obtained shall then be added to the percentage of the
stated annual rate of interest.
(Source: P.A. 97-849, eff. 1-10-14 (see Section 10 of P.A. 97-1159, 78 Fed. Reg. 6855, 6857, 78 Fed. Reg. 10695, 10696, and 78 Fed. Reg. 44685, 44686).)
(815 ILCS 205/4.2) (from Ch. 17, par. 6407)
Sec. 4.2. Revolving credit; billing statements; disclosures. On a
revolving credit which complies with subparagraphs (a), (b),
(c), (d) and (e) of this Section 4.2, it is lawful for any bank that has its main office or, after May 31, 1997,
a branch in this State, a state or federal savings and
loan association with its main office in this State, a state or federal
credit union with its main office in this State, or a lender licensed under
the Consumer Finance Act, the Consumer Installment Loan Act or the Sales
Finance Agency Act, as such Acts are now and hereafter amended, to
receive or contract to receive and collect interest
in any amount or at any rate agreed upon by the parties to the revolving
credit arrangement.  It is lawful for any other lender to receive or contract
to receive and collect interest in an amount not in excess of 1 1/2% per
month of either the average daily unpaid balance of the principal of the
debt during the billing cycle, or of the unpaid balance of the debt on
approximately the same day of the billing cycle.  If a lender under a revolving
credit arrangement notifies the debtor at least 30 days in advance of any
lawful increase in the amount or rate of interest to be charged under
the revolving credit arrangement, and the debtor, after the effective date
of such notice, incurs new debt pursuant to the revolving credit
arrangement, the increased interest amount or rate may be applied only to
any such new debt incurred under the revolving credit arrangement.
For purposes of determining the balances to which the increased interest
rate applies, all payments and other credits may be deemed to be applied
to the balance existing prior to the change in rate until that balance is
paid in full.  The face amount of the
drafts, items, orders for the payment of money, evidences of debt, or
similar written instruments received by the lender in connection with the
revolving credit, less the amounts applicable to principal from time to
time paid thereon by the debtor, are the unpaid balance of the debt upon
which the interest is computed.  If the billing cycle is not monthly, the
maximum interest rate for the billing cycle is the percentage which bears
the same relation to the monthly percentage provided for in the preceding
sentence as the number of days in the billing cycle bears to 30.  For the
purposes of the foregoing computation, a "month" is deemed to be any time
of 30 consecutive days.  In addition to the interest charge provided for, it
is lawful to receive, contract for or collect a charge not exceeding 25
cents for each transaction in which a loan or advance is made under the
revolving credit or in lieu of this additional charge an annual fee for the
privilege of receiving and using the revolving credit in an amount not
exceeding $20. In addition, with respect to revolving credit secured by an
interest in real estate, including a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code that is real property as defined in the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act, it is also lawful to receive, contract for or
collect fees lawfully
paid to any public officer or agency to record, file or release the security,
and costs and disbursements actually incurred for any title insurance,
title examination, abstract of title, survey, appraisal, escrow fees, and fees
paid to a trustee in connection with a trust deed.
(a) At or before the date a bill or statement is first rendered to the
debtor under a revolving credit arrangement, the lender must mail or
deliver to the debtor a written description of the conditions under which a
charge for interest may be made and the method, including the rate, of
computing these interest charges.  The rate of interest must be expressed as
an annual percentage rate.
(b) If during any billing cycle any debit or credit entry is made to a
debtor's revolving credit account, and if at the end of that billing cycle
there is an unpaid balance owing to the lender from the debtor, the lender
must give to the debtor the following information within a reasonable time
after the end of the billing cycle:
(i) the unpaid balance at the beginning of the     billing cycle;
(ii) the date and amount of all loans or advances     made during the billing cycle, which information may be supplied by enclosing a copy of the drafts, items, orders for the payment of money, evidences of debt or similar written instruments presented to the lender during the billing cycle;
(iii) the payments by the debtor to the lender and     any other credits to the debtor during the billing cycle;
(iv) the amount of interest and other charges, if     any, charged to the debtor's account during the billing cycle;
(v) the amount which must be currently paid by the     debtor and the date on which that amount must be paid in order to avoid delinquency;
(vi) the total amount remaining unpaid at the end of     the billing cycle and the right of the debtor to prepay that amount in full without penalty; and
(vii) information required by (iv), (v) and (vi) must     be set forth in type of equal size and equal conspicuousness.
(c) The revolving credit arrangement may provide for the payment by the
debtor and receipt by the lender of all costs and disbursements, including
reasonable attorney's fees, incurred by the lender in legal proceedings to
collect or enforce the debt in the event of delinquency by the debtor or in
the event of a breach of any obligation of the debtor under the arrangement.
(d) The lender under a revolving credit arrangement may provide credit
life insurance or credit accident and health insurance, or both, with
respect to the debtor and may charge the debtor therefor.  Credit life
insurance and credit accident and health insurance, and any charge therefor
made to the debtor, shall comply with Article IX 1/2 of the Illinois
Insurance Code, as now or hereafter amended, and all lawful
requirements of the Director of Insurance
related thereto.  This insurance is in force with respect to each loan or
advance made under a revolving credit arrangement as soon as the loan or
advance is made.  The purchase of this insurance from an agent, broker or
insurer specified by the lender may not be a condition precedent to the
revolving credit arrangement or to the making of any loan or advance thereunder.
(e) Whenever interest is contracted for or received under this Section,
no amount in addition to the charges authorized by this Act may be directly
or indirectly charged, contracted for or received whether as interest,
service charges, costs of investigations or enforcements or otherwise.
(f) The lender under a revolving credit arrangement must
compute at year end the total amount charged to the debtor's
account during the year, including service charges, finance charges,
late charges and any other charges authorized by this Act,
and upon request must furnish such information to the debtor within
30 days after the end of the year, or if the account has been
terminated during such year, may give such requested information within
30 days after such termination. The lender shall annually inform the debtor
of his right to obtain such information.
(g) A lender who complies with the federal Truth in Lending Act, amendments
thereto, and any regulations issued or which may be issued thereunder, shall
be deemed to be in compliance with the provisions of subparagraphs (a) and
(b) of this Section.
(h) Anything in this Section 4.2 to the contrary notwithstanding, if
the Congress of the United States or any federal agency authorizes any
class of lenders to enter, within limitations, into a revolving credit
arrangement secured by a mortgage or deed of trust on residential real
property, any person, firm, corporation or other entity, not otherwise
prohibited by the Congress of the United States or any federal agency from
entering into revolving credit arrangements secured by a mortgage or deed
of trust on residential real property, may enter into such arrangements
within the same limitations.
(Source: P.A. 98-749, eff. 7-16-14.)
(815 ILCS 205/4.2a) (from Ch. 17, par. 6408)
Sec. 4.2a. 
		
		If a lender or creditor, within 30 days from receiving a written
letter, in clear and definitive terms, signed by the debtor, including
his or her name, address, and account number, sent within 60 days after
mailing by the lender or creditor
of the statement on which the alleged error first
appears, concerning an alleged error in a revolving credit account fails
to answer the specific question concerning such error in clear and
definitive terms, for that 30 day period and for any further period that
the lender fails to provide a clear and definitive answer, the debtor
shall not be required to pay any service charge on the disputed amount.
A lender or creditor who complies with the federal Truth in Lending Act,
amendments thereto, and any regulations issued or which may be issued thereunder,
shall be deemed to be in compliance with this Section.
(Source: P.A. 82-169.)
(815 ILCS 205/4.3) (from Ch. 17, par. 6409)
Sec. 4.3. 
		
		Whenever interest received or contracted to be received by
the lender on a revolving credit as defined in Section 4.1 hereof is
lawful only under the provisions of Section 4.2 hereof, no provision
contained in any contract or agreement respecting a revolving credit or
in any draft, item, order for the payment of money, evidence of debt or
similar written instruments which is used in connection with such
revolving credit shall be enforceable, which
(i) provides that in the absence of debtor's breach or default the
lender may arbitrarily and without reasonable cause accelerate the
maturity of any amount or part owing thereunder;
(ii) purports to waive any provisions of this Act; or
(iii) provides for any amount to be added to the account each
month for the privilege of having the revolving credit account
provided there is no unpaid balance at that time.
(Source: P.A. 83-944.)
(815 ILCS 205/4a) (from Ch. 17, par. 6410)
Sec. 4a. Installment loan rate.
(a) On money loaned to or in any manner owing from any person, whether
secured or unsecured, except where the money loaned or in any manner owing
is directly or indirectly for the purchase price of real estate or an
interest therein and is secured by a lien on or retention of title to that
real estate or interest therein, to an amount not more than $25,000
(excluding interest) which is evidenced by a written instrument providing
for the payment thereof in 2 or more periodic installments over a period of
not more than 181 months from the date of the execution of the written
instrument, it is lawful to receive or to contract to receive and collect
either of the following:
(i) Interest in an amount equivalent to interest     computed at a rate not exceeding an annual percentage rate of 9% per year on the entire principal amount of the money loaned or in any manner owing for the period from the date of the making of the loan or the incurring of the obligation for the amount owing evidenced by the written instrument until the date of the maturity of the last installment thereof, and to add that amount to the principal,  except that there shall be no limit on the rate of interest which may be received or contracted to be received and collected by (1) any bank that has its main office or, after May 31, 1997, a branch in this State; or (2) a savings and loan association chartered under the Illinois Savings and Loan Act of 1985, or a savings bank chartered under the Savings Bank Act,  or a federal savings and loan association established under the laws of the United States and having its main office in this State.
It is lawful to receive or to contract to receive and     collect interest and charges as authorized by the Interest Act, the Consumer Installment Loan Act, the Retail Installment Sales Act, the Motor Vehicle Retail Installment Sales Act, the Payday Loan Reform Act, and the Illinois Financial Services Development Act.
In any case in which interest is received, contracted     for, or collected on the basis of paragraph (i) of subsection (a) of Section 4a, the debtor may satisfy in full at any time before maturity the debt evidenced by the written instrument, and in so satisfying must receive a refund credit against the total amount of interest added to the principal computed in the manner provided under paragraph (3) of subsection (f) of Section 15 of the Consumer Installment Loan Act for refunds or credits of applicable interest on payment in full of precomputed loans before the final installment due date.
(ii) Interest accrued on the principal balance from     time to time remaining unpaid, from the date of making of the loan or the incurring of the obligation to the date of the payment of the debt in full, at a rate not exceeding the annual percentage rate equivalent of the rate permitted to be charged under clause (i) above, but in any such case the debtor may, provided that the debtor shall have paid in full all interest and other charges accrued to the date of such prepayment, prepay the principal balance in full or in part at any time, and interest shall, upon any such prepayment, cease to accrue on the principal amount which has been prepaid.
(b) Whenever the principal amount of an installment loan is $300 or
more and the repayment period is 6 months or more, a minimum charge of
$15 may be collected instead of interest, but only one minimum charge
may be collected from the same person during one year. When the
principal amount of the loan (excluding interest) is $800 or less, the
lender or creditor may contract for and receive a service charge not to
exceed $5 in addition to interest; and that service charge may be
collected when the loan is made, but only one service charge may be
contracted for, received, or collected from the same person during one year.
(c) Credit life insurance and credit accident and health insurance,
and any charge therefor which is deducted from the loan or paid by the
obligor, must comply with Article IX 1/2 of the Illinois Insurance
Code and all lawful requirements of the Director of Insurance related
thereto. When there are 2 or more obligors on the loan contract, only
one charge for credit life insurance and credit accident and health
insurance may be made and only one of the obligors may be required to be
insured. Insurance obtained from, by or through the lender or creditor
must be in effect when the loan is transacted. The purchase of that
insurance from an agent, broker or insurer specified by the lender or
creditor may not be a condition precedent to the granting of the loan.
(d) The lender or creditor may require the obligor to provide
property insurance on security other than household goods, furniture and
personal effects. The amount and term of the insurance must be
reasonable in relation to the amount and term of the loan contract and
the type and value of the security, and the insurance must be procured
in accordance with the insurance laws of this State. The purchase of
that insurance from an agent, broker or insurer specified by the lender
or creditor may not be a condition precedent to the granting of the loan.
(e) The lender or creditor may, if the contract provides, collect a
delinquency and collection charge on each installment in default for a
period of not less than 10 days in an amount not exceeding 5% of the
installment on installments in excess of $200 or $10 on
installments of
$200 or less, but only one delinquency and collection charge may
be
collected on any installment regardless of the period during which it
remains in default. In addition, the contract may provide for the payment
by the borrower or debtor of attorney's fees incurred by the lender or
creditor. The lender or creditor may enforce such a provision to the extent
of the reasonable attorney's fees incurred by him in the collection or
enforcement of the contract or obligation. Whenever interest is contracted
for or received under this Section, no amount in addition to the charges
authorized by this Section may be directly or indirectly charged,
contracted for or received, except lawful fees paid to a public officer or
agency to record, file or release security, and except costs and
disbursements including reasonable attorney's fees, incurred in legal
proceedings to collect a loan or to realize on a security after default.
This Section does not prohibit the receipt of any commission, dividend or
other benefit by the creditor or an employee, affiliate or associate of the
creditor from the insurance authorized by this Section.
(f) When interest is contracted for or received under this Section,
the lender must disclose the following items to the obligor in a written
statement before the loan is consummated:
(1) the amount and date of the loan contract;
(2) the amount of loan credit using the term "amount     financed";
(3) every deduction from the amount financed or     payment made by the obligor for insurance and the type of insurance for which each deduction or payment was made;
(4) every other deduction from the loan or payment     made by the obligor in connection with obtaining the loan;
(5) the date on which the finance charge begins to     accrue if different from the date of the transaction;
(6) the total amount of the loan charge for the     scheduled term of the loan contract with a description of each amount included using the term "finance charge";
(7) the finance charge expressed as an annual     percentage rate using the term "annual percentage rate". "Annual percentage rate" means the nominal annual percentage rate of finance charge determined in accordance with the actuarial method of computation with an accuracy at least to the nearest 1/4 of 1%; or at the option of the lender by application of the United States rule so that it may be disclosed with an accuracy at least to the nearest 1/4 of 1%;
(8) the number, amount and due dates or periods of     payments scheduled to repay the loan and the sum of such payments using the term "total of payments";
(9) the amount, or method of computing the amount of     any default, delinquency or similar charges payable in the event of late payments;
(10) the right of the obligor to prepay the loan  and     the fact that such prepayment will reduce the charge for the loan;
(11) a description or identification of the type of     any security interest held or to be retained or acquired by the lender in connection with the loan and a clear identification of the property to which the security interest relates. If after-acquired property will be subject to the security interest, or if other or future indebtedness is or may be secured by any such property, this fact shall be clearly set forth in conjunction with the description or identification of the type of security interest held, retained or acquired;
(12) a description of any penalty charge that may be     imposed by the lender for prepayment of the principal of the obligation with an explanation of the method of computation of such penalty and the conditions under which it may be imposed;
(13) unless the contract provides for the accrual and     payment of the finance charge on the balance of the amount financed from time to time remaining unpaid, an identification of the method of computing any unearned portion of the finance charge in the event of prepayment of the loan.
The terms "finance charge" and "annual percentage rate" shall be
printed more conspicuously than other terminology required by this Section.
(g) At the time disclosures are made, the lender shall deliver to
the obligor a duplicate of the instrument or statement by which the
required disclosures are made and on which the lender and obligor are
identified and their addresses stated. All of the disclosures shall be
made clearly, conspicuously and in meaningful sequence and made together
on either:
(i) the note or other instrument evidencing the     obligation on the same side of the page and above or adjacent to the place for the obligor's signature; however, where a creditor elects to combine disclosures with the contract, security agreement, and evidence of a transaction in a single document, the disclosures required under this Section shall be made on the face of the document, on the reverse side, or on both sides, provided that the amount of the finance charge and the annual percentage rate shall appear on the face of the document, and, if the reverse side is used, the printing on both sides of the document shall be equally clear and conspicuous, both sides shall contain the statement, "NOTICE: See other side for important information", and the place for the customer's signature shall be provided following the full content of the document; or
(ii) one side of a separate statement which     identifies the transaction.
The amount of the finance charge shall be determined as the sum of
all charges, payable directly or indirectly by the obligor and imposed
directly or indirectly by the lender as an incident to or as a condition
to the extension of credit, whether paid or payable by the obligor, any
other person on behalf of the obligor, to the lender or to a third
party, including any of the following types of charges:
(1) Interest, time price differential, and any amount     payable under a discount or other system of additional charges.
(2) Service, transaction, activity, or carrying     charge.
(3) Loan fee, points, finder's fee, or similar charge.
(4) Fee for an appraisal, investigation, or credit     report.
(5) Charges or premiums for credit life, accident,     health, or loss of income insurance, written in connection with any credit transaction unless (a) the insurance coverage is not required by the lender and this fact is clearly and conspicuously disclosed in writing to the obligor; and (b) any obligor desiring such insurance coverage gives specific dated and separately signed affirmative written indication of such desire after receiving written disclosure to him of the cost of such insurance.
(6) Charges or premiums for insurance, written in     connection with any credit transaction, against loss of or damage to property or against liability arising out of the ownership or use of property, unless a clear, conspicuous, and specific statement in writing is furnished by the lender to the obligor setting forth the cost of the insurance if obtained from or through the lender and stating that the obligor may choose the person through which the insurance is to be obtained.
(7) Premium or other charges for any other guarantee     or insurance protecting the lender against the obligor's default or other credit loss.
(8) Any charge imposed by a lender upon another     lender for purchasing or accepting an obligation of an obligor if the obligor is required to pay any part of that charge in cash, as an addition to the obligation, or as a deduction from the proceeds of the obligation.
A late payment, delinquency, default, reinstatement or other such
charge is not a finance charge if imposed for actual unanticipated late
payment, delinquency, default or other occurrence.
(h) Advertising for loans transacted under this Section may not be
false, misleading, or deceptive. That advertising, if it states a rate
or amount of interest, must state that rate as an annual percentage rate
of interest charged. In addition, if charges other than for interest are
made in connection with those loans, those charges must be separately
stated. No advertising may indicate or imply that the rates or charges
for loans are in any way "recommended", "approved", "set" or
"established" by the State government or by this Act.
(i) A lender or creditor who complies with the federal Truth in Lending
Act, amendments thereto, and any regulations issued or which may be issued
thereunder, shall be deemed to be in compliance with the provisions of
subsections (f), (g) and (h) of this Section.
(j)  For purposes of this  Section, "real estate"  and "real property"  include a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code that is real property as defined in the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 101-658, eff. 3-23-21.)
(815 ILCS 205/4b) (from Ch. 17, par. 6411)
Sec. 4b. 
		
		In order to assure compliance with applicable Federal law, any State
agency having chartering or licensing powers or regulatory or supervisory
authority over a class of creditors affected by this Act may promulgate
rules and regulations to carry out the disclosure and other requirements
pertaining to the extension of credit under this Act and the advertising of
such extensions of credit.
(Source: P.A. 76-1775.)
(815 ILCS 205/5) (from Ch. 17, par. 6412)
Sec. 5. 
		
		No person or corporation shall directly or indirectly accept or
receive, in money, goods, discounts or thing in action, or in any other
way, any greater sum or greater value for the loan, forbearance or discount
of any money, goods or thing in action, than is expressly authorized by
this Act or other laws of this State.
(Source: P.A. 82-660.)
(815 ILCS 205/5.1) (from Ch. 17, par. 6412.1)
Sec. 5.1. 
		
		Notwithstanding any other law to the contrary, it shall
be unlawful for any person to charge interest on any first class claim
as defined in Section 18-10 of the Probate Act of 1975 until 60 days
after issuance of letters of office to the representative of the decedent's
estate, or if no such letters of office are issued, then beginning 60 days
after those amounts are due.
(Source: P.A. 87-509.)
(815 ILCS 205/6) (from Ch. 17, par. 6413)
Sec. 6. 
		
		If any person or corporation knowingly contracts for or receives,
directly or indirectly, by any device, subterfuge or other means, unlawful
interest, discount or charges for or in connection with any loan of money,
the obligor may, recover by means of an action or defense an amount equal
to twice the total of all interest, discount and charges determined by the
loan contract or paid by the obligor, whichever is greater, plus such
reasonable attorney's fees and court costs as may be assessed by a court
against the lender. The payments due and to become due including all
interest, discount and charges included therein under the terms of the loan
contract, shall be reduced by the amount which the obligor is thus entitled
to recover. Recovery by means of a defense may be had at any time after the
loan is transacted. Recovery by means of an action may be had at any time
after the loan is transacted and prior to the expiration of 2 years after
the earlier of (1) the date of the last scheduled payment of the loan after
giving effect to all renewals or extensions thereof, if any, or (2) the
date on which the total amount due under the terms of the loan contract is
fully paid. A bona fide error in connection with a loan shall not be a
violation under this section if the lender corrects the error within a
reasonable time.
No person shall be liable under this Act for
any act done or omitted in good faith in conformity with any rule,
regulation, interpretation, or opinion issued by the
Commissioner of Banks and Real Estate or the
Department of Financial
Institutions or any other department or agency of the State,
notwithstanding that after such act or omission has occurred, such rule,
regulation, interpretation, or opinion is amended,
rescinded, or
determined by judicial or other authority to be invalid for any reason.
(Source: P.A. 90-161, eff. 7-23-97.)
(815 ILCS 205/6a) (from Ch. 17, par. 6414)
Sec. 6a. 
		
		Any person who violates any of the provisions of paragraph (i) of
Section 4a relating to advertising shall be guilty of a Class A misdemeanor.
(Source: P.A. 77-2532.)
(815 ILCS 205/7) (from Ch. 17, par. 6415)
Sec. 7. 
		
		The defense of usury shall not be allowed in any suit, unless the
person relying upon such defense shall set up the same by plea, or file in
the cause a notice in writing, stating that he intends to defend against
the contract sued upon or set off, on the ground that the contract is
usurious.
(Source: Laws 1879, p. 184.)
(815 ILCS 205/8) (from Ch. 17, par. 6416)
Sec. 8. 
		
		When any written contract, wherever payable, shall be made in this
State, or between citizens or corporations of this State, or a citizen or a
corporation of this State and a citizen or corporation of any other State,
territory or country (or shall be secured by mortgage or trust deed on
lands in this State), such contract may bear any rate of interest allowed
by law to be taken or contracted for by persons or corporations in this
State, or allowed by law on any contract for money due or owing in this
State.
(Source: P.A. 82-660.)
(815 ILCS 205/9) (from Ch. 17, par. 6417)
Sec. 9. 
		
		Whenever, in any statute, act, deed, written or verbal, contract,
or in any public or private instrument whatever, any certain rate of
interest is or shall be mentioned, and no period of time is stated for
which such rate is to be calculated, interest shall be calculated at the
rate mentioned, by the year, in the same manner as if "per annum" or "by
the year" had been added to the rate.
(Source: Laws 1879, p. 184.)
(815 ILCS 205/10) (from Ch. 17, par. 6418)
Sec. 10. 
		
		In all computations of time, and of interest and discounts, a
month shall be considered to mean a calendar month, and a year shall
consist of twelve calendar months; and in computations of interest or
discount for any number of days less than a month, a day shall be
considered a thirtieth part of a month, and interest or discount shall be
computed for such fractional parts of a month upon the ratio which such
number of days shall bear to thirty.
(Source: Laws 1879, p. 184.)
(815 ILCS 205/11) (from Ch. 17, par. 6419)
Sec. 11. 
		
		Whenever the Department of Financial Institutions has reason to
believe that any person or corporation engaged in the business of lending
money is contracting for, receiving, or collecting unlawful interest for
any loan not exceeding $5,000 (in violation of this Act, or the Consumer
Finance Act, or the Consumer Installment Loan Act, or any other Act
regulating interest for loans of money), it may after notice and hearing
enter an order requiring such person or corporation to cease and desist
from contracting for, receiving, and collecting unlawful interest.  At least
5 days' notice shall be given setting forth the time and place of the
hearing and the nature of the violations charged (including the means by
which said Department alleges that unlawful interest has been contracted
for, received, or collected).  The order shall specify in writing the
violations found and shall become effective not less than 5 days after
delivery thereof to the person or corporation named in the order.  If the
person or corporation named in said order continues said violation for more
than 15 days after receiving a certified copy thereof by registered or
certified mail, the Department of Financial Institutions may bring an
action in the circuit court to enjoin such person or
corporation from engaging in or continuing such violation.  Such action
shall be conducted under the direction and supervision of the Attorney
General.  The practice and the powers of the court in such proceedings shall
be as in other such civil proceedings.
(Source: P.A. 79-1362.)