2023 Illinois Compiled Statutes › Chapter 815 - BUSINESS TRANSACTIONS › 815 ILCS 636/ - Motor Vehicle Leasing Act.

(815 ILCS 636/1)
Sec. 1. 
		Short title. 
		This Act may be cited as the Motor Vehicle Leasing Act.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/5)
Sec. 5. 
		Statement of intent. 
		It is the purpose of this Act to promote the
understanding of vehicle leasing in this State by providing for the disclosure
of lease obligations to consumer lessees.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10)
Sec. 10. 
		Definitions and rules of construction. 
		In this Act, unless the context or subject matter otherwise requires, the
following words and phrases have the meanings set forth in the following
Sections.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.5)
Sec. 10.5. 
		Adjusted capitalized cost. 
		The amount which serves as the
basis for determining the base lease payment, computed by subtracting from the
capitalized cost any capitalized cost reduction.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.10)
Sec. 10.10. 
		Average periodic depreciation. 
		The difference between the
adjusted capitalized cost and the residual value divided by the number of
payment periods in the consumer lease, or, for a single payment lease, divided
by the number of months in the term of the lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.15)
Sec. 10.15. 
		Average periodic lease charge. 
		The lease charge for the
scheduled term of the consumer lease divided by the number of payment periods
or, for a single payment lease, divided by the number of months in the term of
the lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.20)
Sec. 10.20. 
		Base lease payment. 
		That portion of the periodic lease
payment which shall be the sum of (a) the average periodic lease charge and
(b) the average periodic depreciation.  For a single payment lease, the base
lease payment is the sum of (a) the average periodic lease charge multiplied
by the number of months in the term of the lease and (b) the average periodic
depreciation multiplied by the number of months in the lease term.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.25)
Sec. 10.25. 
		Capitalized cost. 
		The amount which, when reduced by the
amount of the capitalized cost reduction, equals the adjusted capitalized cost.
 The capitalized cost includes all items which are capitalized in the lease
and after the application of the capitalized cost
reduction, amortizes to the residual value by the depreciation portion of the
periodic lease payments over the term of the lease.  For a single payment
lease, the capitalized cost amortizes to the residual value by the depreciation
portion of the single lease payment.  The capitalized cost may include, without
limitation, taxes, registration, license, acquisition, administration,
assignment and other fees, and charges for insurance, for a waiver of the
contractual obligation to pay the gap amount, for accessories and their
installation, for delivering, servicing, repairing, or improving the vehicle,
and
for other services and benefits incidental to the consumer lease.  It also may
include, with respect to a vehicle or other property traded in connection with
a lease, the unpaid balance of any amount financed under an outstanding vehicle
loan agreement or vehicle retail installment contract or the unpaid portion of
the early termination obligation under a lease or other obligation
of the lessee.  The term capitalized cost does not include any lease  charge.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.30)
Sec. 10.30. 
		Capitalized cost reduction. 
		Payments made by cash, check,
rebates, or similar means that are in the nature of down payments made by the
lessee and any net trade-in
allowance granted by the lessor at the inception of the consumer lease for the
purpose of reducing the capitalized cost.  The term capitalized cost reduction
does not include any base lease payments due at the inception of the lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.35)
Sec. 10.35. 
		Conspicuous. 
		Distinguished from other terms by type size or
in
some other manner.  A term in at least 10-point bold type shall be deemed to be
conspicuous for the purposes of this Act.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.40)
Sec. 10.40. 
		Constant yield method.
(a) In the case of a periodic payment
lease, the method of determining the lease charge portion of each base lease
payment pursuant to which the lease charge for each computational period is
earned in advance of that period by multiplying the constant rate implicit in
the lease times
the balance subject to lease charge as it declines during the lease term.  At
any given time during the scheduled term of a periodic payment lease, the
balance subject to lease charge is the difference between the adjusted
capitalized cost and the sum of (i) all depreciation amounts accrued during
the preceding computational periods and (ii) the first base lease payment.
(b) In the case of a single payment lease, the method of determining the
periodic
earning of the lease charge portion of the single lease payment pursuant to
which the lease charge for each computational period is earned in advance of
that period by
multiplying the constant rate implicit in the lease times the balance subject
to lease charge as it increases during the lease term.  At any given time
during the term of a single payment lease, the balance subject to lease
charge is determined by subtracting from the residual value the total lease
charge scheduled to be earned over the lease term and adding to the
difference all lease charges accrued during the
preceding computational periods.
(c) In the case of either a periodic
payment lease or a single payment lease, the periodic lease charge calculations
are based on the assumption that the holder will receive the lease payment or
payments on their exact due date or dates and that the lease goes to its full
term.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.45)
Sec. 10.45. 
		Consumer lease. 
		A contract, entered into in this State,
which
transfers the right of possession for use of a vehicle by a natural person
primarily for personal, family, or household purposes, for a period of
more than one year, for a total contractual obligation not exceeding
$25,000, whether or not the lessee has the option to purchase or otherwise
become the owner of the vehicle at the expiration of the consumer lease.  The
term consumer lease
 does not include the following:  an agreement which meets the definition of a
credit sale in Regulation Z, 12 C.F.R. Section 226.2(a) or a retail installment
transaction as defined by the Motor Vehicle Retail Installment Sales Act, or  a
lease for agricultural, business, or
commercial purposes or one made to an organization.  A consumer lease may
include the purchase of goods, services, or benefits incidental to the lease,
whether or not the purchase price is included in the capitalized cost.  Unless
expressly provided in the contract, a contract that substantially complies with
this Act does not create a security interest in a vehicle as the term "security
interest" is defined in subsection 37 of section 1-201 of the Uniform
Commercial Code.
For the purpose of this definition, "total contractual obligation" is computed
on the assumption that the consumer lease is not terminated before the end of
the scheduled term, that there is no default, and that the lessee does not
exercise any purchase option.  "Total contractual obligation" includes the
capitalized cost reduction; plus the scheduled lease payments over the term of
the lease, or in the case of a single payment lease, the single lease payment;
plus any disposition fee or other disposition charges known or
calculable at the time the lease is executed.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.50)
Sec. 10.50. 
		Consumer Leasing Act. 
		That Act of Congress codified as 15
U.S.C. 1667 et
seq. and regulations promulgated pursuant thereto, as that Act and
regulations may be amended from time to time.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.55)
Sec. 10.55. 
		Gap amount. 
		The difference between the amount owed (or which
would be owed in the absence of gap protection) by the lessee under the
consumer lease in the event of a total loss of the vehicle prior to the end of
the lease term occasioned by its theft, physical damage, or other occurrence as
specified in the consumer lease and the actual cash value or portion of the
actual cash value of the vehicle, actually received by the lessor from the
insurance company or from any other person.  The term gap amount shall not
include
any deductible amount applicable to an insurance policy maintained by the
lessee or any past due amounts owed by the lessee as of the time of the receipt
by the
lessor of the insurance proceeds or any other amount due because of the
lessee's default.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.60)
Sec. 10.60. 
		Gap protection. 
		A contractual undertaking by the holder or
lessor or by
a third party to waive or provide that a third person shall pay the gap amount.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.65)
Sec. 10.65. 
		Group credit insurance. 
		Group credit life insurance, group
credit accident insurance,  group credit accident
and health insurance, group disability insurance, or group credit unemployment
insurance.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.70)
Sec. 10.70. 
		Holder. 
		The lessor or owner of a vehicle under or subject to
a
consumer lease and if ownership of the consumer lease is acquired by an
assignee, the assignee for the period of the assignee's ownership.  The term
holder does not include a pledgee of a consumer lease to secure a bona fide
obligation
secured by the consumer lease or the owner or beneficiary of an interest in a
trust that owns consumer leases.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.75)
Sec. 10.75. 
		Lease charge. 
		The charge determined by the lessor to be paid
by the lessee for the privilege of making the lease payments as scheduled under
a consumer lease.  The term lease charge does not include any amount included
in the capitalized cost or any delinquency, default, disposition, early
termination, collection, or reinstatement charge.  The term lease charge does
not include the amount, if any, for taxes, registration, license, acquisition,
administration, assignment and other fees, and charges for insurance, for
accessories or their installation, for delivering, servicing, repairing, or
improving the vehicle, and for other goods, benefits, or services incidental to
the consumer lease, (a) included in the capitalized cost, (b) paid for
separately at lease inception by cash, check, credit card, or similar means, or
(c) paid for on a periodic basis in addition to the base lease payment.  The
lessor may calculate lease charges on any basis.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.80)
Sec. 10.80. 
		Lessee. 
		A natural person who leases a vehicle under a
consumer lease.  For purposes of Section 15
of this Act, the term also includes a natural person who makes a payment to
a lessor as an advance lease payment, deposit, or down payment or who leaves
his
vehicle with a lessor pending the execution of a consumer lease.  The term does
not include a person who leases a vehicle primarily for agricultural, business,
or commercial use.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.85)
Sec. 10.85. 
		Lessor. 
		A person regularly engaged in the business of
leasing or selling vehicles who leases a vehicle under a consumer lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.90)
Sec. 10.90. 
		Person. 
		An individual, partnership, corporation, association
or other group, however organized.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.95)
Sec. 10.95. 
		Precomputed lease transaction. 
		A consumer lease transaction
in which the total of the base lease payments for the term of the lease is
established at the inception of the lease, whether or not it is paid at that
time, as a sum comprising the total depreciation estimated for the scheduled
lease term and the amount of the lease charge computed in advance for the
scheduled term of the lease.  A disclosure required by the Consumer Leasing Act
does not in itself make a lease charge or transaction precomputed.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.100)
Sec. 10.100. 
		Realized value. 
		The greater of (a) the price received by
the lessor for disposition of the vehicle, after subtracting all actual and
reasonable expenses of sale or (b) insurance proceeds in the event of the
total loss or destruction of the vehicle or (c) the highest bona fide offer
received by the holder for disposition of the vehicle.  However, if the lessor
and the lessee agree upon
the realized
value, the agreed upon amount shall be the realized value.  The
vehicle's realized value may be determined in the
customary wholesale market at the time of disposition of the vehicle.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.105)
Sec. 10.105. 
		Renegotiation. 
		The satisfaction and replacement of an
existing consumer lease by a new consumer lease undertaken by the same lessee.
The term renegotiation does not include  (a) a deferral or extension of one or
more periodic
lease payments or portions of one or more periodic payments; (b) a consumer
lease involving a court proceeding or the settlement of a dispute; or (c) any
other agreement or event which does not constitute a "renegotiation" under the
Consumer Leasing Act.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.110)
Sec. 10.110. 
		Residual value. 
		The estimated value of the vehicle at the
end of the scheduled lease term, used by the lessor in determining the base
lease payment, as established by the lessor at the time the lessor and lessee
enter into a consumer lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.115)
Sec. 10.115. 
		Single payment lease. 
		A consumer lease for which a single
payment is required to be paid at the beginning of the lease for the scheduled
term of the lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.120)
Sec. 10.120. 
		Vehicle or motor vehicle. 
		A motor vehicle as defined in
Section 1-146 of the Illinois Vehicle Code.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/10.125)
Sec. 10.125. 
		
		Words in the singular include the plural and vice versa,
unless
otherwise specified.  The term "periodic" means "monthly", "weekly",
"quarterly", or any other period as specified in the consumer lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/15)
Sec. 15. 
		Payment or trade-in pending execution of consumer lease: 
		refund or return upon non-execution.
(a) If a lessee has made a payment to a lessor pending the execution
of a consumer lease, has surrendered possession of  a trade-in vehicle, or
both, the lessee shall have the right, if the consumer lease application is not
approved, to have any trade-in vehicle returned
promptly and receive a prompt refund of any payments made.  If a lessee leaves
a trade-in
vehicle with the lessor and the lessor and lessee agree that the parties shall
enter into a consumer lease, the lessor shall not sell or transfer the trade-in
vehicle until the lessee and the lessor execute a consumer lease.
(b) This Section shall not apply to the sale of a vehicle by a
prospective lessee to a prospective lessor under a separate contract or sale if
the contract is executed before the parties have consummated a consumer lease,
is dated as of the sale date and is signed by the parties.  The contract shall
provide that the contract price establishes the vehicle's value for purposes
of determining the amount the lessor will credit as a "capitalized cost
reduction" under any consumer lease subsequently consummated by the parties or
as the amount due as stated in subsection (a) of this Section to the lessee for
the vehicle in the event the
parties fail to consummate a consumer lease within 30 days; that
the prospective lessee agrees to leave the contract price on deposit with the
prospective lessor pending the consummation of a consumer lease for a vehicle
to be ordered from the manufacturer or for a vehicle not yet in production as
of the date of the contract; and that 75 days after the sale date, the
prospective lessee shall be entitled to payment of the agreed upon price for
the vehicle unless within that time the parties have consummated a consumer
lease or have agreed to an earlier payment of the price to the
prospective lessee.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/20)
Sec. 20. 
		Total loss notice and waiver of the gap amount.
(a) If the consumer lease provides that the lessee shall be
responsible for the gap amount, the consumer lease shall disclose that fact and
disclose the obligations for which the lessee would remain liable in the event
of a total loss of the vehicle prior to the end of the lease term occasioned by
its theft, physical damage, or other occurrence as specified in the consumer
lease, using the term "gap amount".
(b) The lessor may waive its contractual right to hold the lessee
liable for some or all of the gap amount.  This waiver may be granted either
without a separate charge to the lessee, or in exchange for the payment by the
lessee of a separate charge.  Any separate charge for the waiver must be
conspicuously disclosed to the lessee.
(c) If the lessor under subsection (b) of this Section offers for a
separately stated  charge to waive its contractual right to hold the lessee
liable for the gap amount, the lease shall also contain a conspicuous notice
which shall  (1) state that for a separate charge disclosed in the notice the
lessor will waive its contractual right to hold the lessee liable for the gap
amount and (2)  state that the lessee may as an alternative to purchasing a
waiver,
be able to purchase protection covering the gap amount from a company which has
been authorized to do business in this State.  Failure to provide the notice as
required by this subsection shall invalidate any lease provision which
otherwise would obligate a lessee to pay to the holder or lessor, after a total
loss of
the vehicle occasioned by its theft, physical damage or other occurrence as
specified in the consumer lease, any of the items specified in paragraphs (5)
and (6) of subsection (b) of Section 45 of this Act.  No consumer lease
shall be conditioned upon the lessee obtaining vehicle lessee gap
protection.
(d) The lessor's waiver of its contractual right to hold the lessee
liable for the gap amount may be conditioned upon the receipt by the lessor of
(1) all amounts due under the consumer lease as of the date of receipt by the
lessor of the insurance proceeds or equivalent amount as specified in the
lease or if no such date is specified, as of the date of total loss of the
vehicle, (2) an amount from the lessee equal to the amount of the lessee's
deductible and any other subtractions from the actual cash value under the
lessee's insurance policy, and (3) insurance proceeds from the insurance
policy required under the lease or the equivalent amount of the value of the
vehicle.
(e) No insurance or other additional license shall be required of lessors
who waive or offer to
waive their contractual right to hold the lessee liable for the gap amount.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/25)
Sec. 25. 
		Requirements for a consumer lease.
(a) A consumer lease shall be in writing and signed by the lessor and the
lessee.
(b) The printed portion of the consumer lease, other than directions
for completion of the consumer lease, shall be printed in a size equal to at
least eight-point type. The
consumer lease shall contain the following items printed or written in a
conspicuous manner:
(1) At the top of the consumer lease, in at least     10-point bold capitalized type, the words "MOTOR VEHICLE LEASE AGREEMENT".
(2) If physical damage or liability insurance     coverage for bodily injury and property damage caused to others is not included in the consumer lease, a notice in at least 10-point bold capitalized type, substantially similar to the following:  "NO PHYSICAL DAMAGE OR LIABILITY INSURANCE COVERAGE FOR BODILY INJURY OR PROPERTY DAMAGE CAUSED TO OTHERS IS INCLUDED IN THIS LEASE."
(3) Directly above the acknowledgement permitted by     subsection (c) of this Section to appear above the space reserved for the lessee's signature, a written notice substantially similar to the following:
"NOTICE TO THE LESSEE:  This is a lease.  You         have no ownership rights in the vehicle unless and until you exercise your option to purchase the vehicle, if this lease contains a purchase option.  Do not sign this lease before you read it.  Early termination may require you to pay a substantial amount.  You are entitled to a completed copy of this lease when you sign it."
(c) The lessor shall deliver to the lessee a completed copy of the
consumer lease signed by the lessor.  Any acknowledgement by the lessee of
delivery of a copy of the consumer lease shall be conspicuous and shall appear
directly above the space reserved for the lessee's signature.
(d) The consumer lease shall contain the names of the lessor and the
lessee, the place of business of the lessor, the residence or place of business
of the lessee as specified by the lessee, and a description of the vehicle,
including its make, model year, model, and, if known, the vehicle's
identification number or marks.
(e) The consumer lease shall contain the following:
(1) All items required to be disclosed by the     Consumer Leasing Act and, in addition, the following items if the items or substantially similar items are not required to be disclosed by the Consumer Leasing Act.
(2) The capitalized cost, identified as "capitalized     cost", and a descriptive explanation such as "the agreed upon amount determined at lease inception for all items and services included in the lease".
(3) Any capitalized cost reduction, using the term     "capitalized cost reduction".
(4) The adjusted capitalized cost, using the term     "adjusted capitalized cost" and a descriptive explanation, as applicable, such as "the agreed upon amount which serves as the basis for determining the base lease payment.  If you are not in default, this amount plus any applicable early termination charges determines your maximum early termination obligation".
(5) If the lessee is not permitted to terminate the     lease at any time, the consumer lease shall contain a conspicuous statement setting forth any prohibitions upon the lessee's ability to terminate the consumer lease at any time before the end of the scheduled term.
(6) The vehicle's residual value, using the term     "residual value".
(f) (1) (A) Any insurance for which a charge is included         in the consumer lease shall be issued by an insurance company authorized to do that kind of insurance business in this State.
(B) The lessee shall have the privilege of         purchasing the insurance from an agent or broker of the lessee's own selection and of selecting an insurance company acceptable to the lessor provided, however, that the inclusion of the insurance premium in the consumer lease when the lessee selects the agent, broker, or company shall be optional with the lessor and in such case the lessor or assignee shall have no obligation to send or cause to be sent to the lessee a copy of the insurance policy.
(2) If the policy of liability insurance or other     insurance on the vehicle is canceled, any unearned insurance premium refund received by the holder shall be either  (i) refunded to the lessee or (ii) credited, together with the unearned portion of the lease charge applicable thereto, to the lessee's obligations, including, without limitation, to the final maturing lease payments or, at the holder's option, to the obligations of the lessee upon early or scheduled termination except to the extent applied toward payment for similar insurance protecting the interests of the lessee and the holder or either of them, provided that no such credit or refund need be made if the amount thereof would be less than one dollar.
(3) The amount, if any, included as a charge for     group credit insurance, liability insurance, or other insurance on the vehicle shall not exceed the premiums permitted by law for the insurance.  If the group credit or other insurance is canceled, the refund for unearned insurance premiums received by the holder shall be either (i) refunded to the lessee or (ii) credited, together with the unearned portion of the lease charge applicable thereto, either to the lessee's obligations, including, without limitation, to the final maturing lease payments or, at the holder's option, to the obligations of the lessee upon early or scheduled termination, provided that no such credit or refund need be made if the amount thereof would be less than one dollar.
(g) If the lessee is obligated under the consumer lease to maintain
insurance on the vehicle and if subsequent to the execution of the consumer
lease the lessee fails to maintain the required insurance, the holder, at its
option, may buy insurance insuring substantially the same risks for either the
interest of the lessee and the holder or the interest of either of them.  Any
amount paid by the holder for insurance may be the subject of a lease charge
from the date the amount was paid by the holder, as though the amount was part
of the capitalized cost, shall be subject to the default provisions of the
consumer lease and shall be repayable by the lessee to the lessor as provided
in the consumer lease.  Nothing in this subsection shall prevent the
holder from pursuing any other remedy for default set forth in the consumer
lease or provided by law.
(h) (1) The holder may, if the consumer lease so provides, collect
a late charge on each lease payment in default for a period of 10 days in the
amount or amounts agreed to in the consumer lease.
(2) The holder may not assess or collect a late     charge under paragraph (1) of this subsection when the only  delinquency is late charges assessed on an earlier lease payment or payments.
(3) The consumer lease may provide that in the event     of default by the lessee, the lessee shall pay collection costs, court costs, and, where the consumer lease is referred to an attorney not a salaried employee of the holder for collection, reasonable attorneys' fees.
(i) No consumer lease shall be signed by any party thereto when it
contains blank spaces to be filled in after it has been signed except that, if
delivery of the vehicle is not made at the time of the execution of the
consumer lease, the vehicle's identifying numbers or marks or similar
information and the due date of the first payment may be inserted in the
consumer lease after its execution.  The lessee's written acknowledgement,
conforming to the requirements of subsection (c) of this Section, of delivery
of a copy of the consumer lease shall be conclusive proof of the delivery of a
copy of the consumer lease and of compliance with this subsection in any action
or proceeding by or against the holder, lessor, or an assignee of the consumer
lease without
knowledge to the contrary at the time of the assignment.
(j) Notwithstanding any contrary provision of this Act or other
laws of this State,  (a) a holder may purchase, sell, or otherwise acquire or
transfer an interest in a consumer lease or a vehicle subject to a consumer
lease, on such terms and conditions and for such price as may be mutually
agreed upon, and (b) no filing of the sale or transfer, no notice to the lessee
of the sale or transfer, and no requirement that the holder be deprived of
dominion over payments due under the consumer lease or over the vehicle if
repossessed by or returned to the holder shall be necessary to the validity of
a written sale or transfer of a consumer lease as against creditors,
subsequent purchasers, pledgees, mortgagees, or encumbrancers of the holder.
(k) Unless the lessee has notice of actual or intended sale or
transfer of a consumer lease, payment thereunder made by the lessee to the last
known holder of the consumer lease shall be binding upon all subsequent
holders or assignees.  A person who sells or transfers a lease and thereafter
receives payment from the lessee shall forward the payment in the form in
which it was received to the person to whom the lease had been sold or
transferred, unless the person to whom the lease has been sold or
transferred agrees in writing
that the person who sells or transfers the lease may retain the payment.
(l) (1) Upon written request from the lessee, the holder shall
give or forward to the lessee a written statement of the dates and amounts of
the periodic lease payments that have been received by the holder under the
consumer lease and the total amount of the remaining periodic lease payments.
Any amounts in the statement that are estimated shall be identified as
estimated.  A lessee shall be given a written receipt for any payment made in
cash.
(2) Upon written request from a lessee who is then     entitled to terminate the consumer lease early, the holder shall give or forward to the lessee a written statement of the lessee's projected early termination obligation under the consumer lease without consideration on the value of the vehicle.
(3) No charge shall be imposed on the lessee for     preparation by the holder of the lease of a single statement under paragraph (1) or (2) in a 12-month period.  A holder may impose a reasonable fee, not to exceed $20 per statement, for the preparation of additional early termination statements in a 12-month period, provided that the charge has been disclosed to the lessee either orally or in writing.
(m) No consumer lease shall contain any of the following provisions:
(1) In the absence of the lessee's default, the     holder may, arbitrarily and without reasonable cause, accelerate the maturity of any part or all of the amount owing thereon.
(2) A power of attorney is given to confess judgment     or an assignment of wages is given.
(3) The lessee waives any right of action against the     holder for any illegal act committed in the collection of payments under the consumer lease or in the repossession of the vehicle.
(4) The lessee executes a power of attorney     appointing the holder or other person acting on behalf of the holder as the lessee's agent in collection of payments under the consumer lease or in the repossession of the vehicle, provided, however, that this paragraph shall not prohibit the inclusion in a consumer lease of a limited power of attorney or other provision authorizing the holder to execute in the lessee's name any proofs of insurance claims or losses, titling and registration documents, odometer statements, or for any other purpose properly associated with the lease transaction or to endorse the lessee's name on any insurance settlement or premium, rebate draft, refund, or check.
(5) The holder is relieved from liability for any     legal remedy which the lessee may have had against the holder under the consumer lease, or any separate instrument executed in connection therewith.
(6) The lessee waives any provision of this Act.
(n) Any provision prohibited by this Act shall be unenforceable but
shall not otherwise affect the validity of a consumer lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/30)
Sec. 30. 
		Security interest prohibited.
(a) No consumer lease or other document executed by the lessee in
connection therewith shall provide for the creation of a security interest in
any personal or real property of  the lessee to secure the payment of the
obligations arising from the consumer lease.  This prohibition shall not apply
to (1) the taking of a security deposit, advance lease payment, or other
prepayment by cash, credit card, check, or similar means; (2) the retention or
exercise by a lessor of a right of set off; or (3) the retention of a security
interest in the vehicle or in proceeds, cancellation refunds, or other rights
of
the lessee under the contract issued with respect to the vehicle or lease,
including, without limitation, insurance contracts, gap protection
contracts, repair contracts, and extended warranty or service contracts.
(b) A security interest taken in violation of this Section shall be
void but shall not otherwise affect the validity of a consumer lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/35)
Sec. 35. 
		Notice of lessee's default and right to cure. 
		After a lessee has been in default for 10 days solely by reason of
the lessee's failure to make a timely lease payment and any applicable late
charges, the holder may declare the lessee to be in default and may send the
lessee a notice of default.  A lessee who has been in  default solely by reason
of the lessee's failure to make a timely lease payment and any applicable late
charges and who has not previously been afforded the right to cure the
default shall be
entitled to cure the default.  If the lessee is entitled to cure the default
the notice shall contain a conspicuous statement that the lessee is entitled to
cure the default, setting forth the dollar amount necessary to cure the
default, the date by which payment must be made and the name, address, and
telephone number of the holder from which information may be obtained regarding
the cure.  This Section shall not apply to any default other than the lessee's
failure to make a timely lease payment and any applicable late
charges.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/37)
Sec. 37. Military personnel in military service; termination of lease.
(a) In this Act:
"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.
"Motor vehicle" means any automobile, car minivan, passenger van, sport utility vehicle, pickup truck, or other self-propelled vehicle not operated or driven on fixed rails or track.
"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) Any service member who enters military service for a period of not less than 180 days, or the spouse of that service member, may terminate any motor vehicle lease that meets both of the following requirements:
(1) The lease is entered into on or after the     effective date of this amendatory Act of the 94th General Assembly.
(2) The lease is executed by or on behalf of the     service member who has entered military service.
(c) Termination of the motor vehicle lease shall not be effective until:
(1) the service member who has entered military     service, or the service member's spouse, gives the lessor by certified mail, return receipt requested, a notice of the intention to terminate the lease together with a copy of the orders calling the service member to military service and of any orders further extending the service member's period of service; and
(2) the motor vehicle subject to the lease is     returned to the custody or control of the lessor not later than 15 days after the delivery of the written notice.
(d) Lease amounts unpaid for the period preceding the effective date of the lease's termination shall be paid on a prorated basis. The lessor may not impose an early termination charge, but any taxes, costs of summons, and title or registration fees and any other obligation and liability of the lessee under the terms of the lease, including reasonable charges to the lessee for excess wear, use, and mileage, that are due and unpaid at the time of the lease's termination shall be paid by the lessee.
(e) The lessor shall refund to the lessee lease amounts paid in advance for a period after the effective date of the lease's termination within 30 days after the effective date of the lease's termination.
(f) Upon application by the lessor to a court before the effective date of the lease's termination, relief granted by this Section may be modified as justice and equity require.
(g) 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 636/40)
Sec. 40. 
		
		Establishment of realized value at lease termination when
purchase option not exercised.
(a) If a consumer lease is terminated early and the lessee is not in default
and does not
exercise a purchase option or if the lessee's liability at the scheduled end
of the lease term is based upon the vehicle's residual value and the lessee
does not exercise a purchase option, the holder shall act in a commercially
reasonable manner when disposing of the vehicle or obtaining cash bids for the
purpose of establishing the realized value of the vehicle.   The realized value
shall be final and binding upon the parties and shall be
used as the realized value in determining the lessee's liability at early
termination or at the scheduled end of the lease term.  Nothing in this Section
shall be deemed to prohibit the lessee and the lessor from agreeing upon the
vehicle's realized value or the method of determining the vehicle's realized
value, in which case the value agreed upon shall be
final and binding upon the parties and shall be used as the realized value in
determining the lessee's liability at early termination or at the
scheduled end of the lease term.
(b) In the event of a total loss of the vehicle prior to the end of
the lease term occasioned by its theft, physical damage, or other occurrence as
specified in the consumer lease, the realized value will be deemed to be the
sum of the amount received by the holder from the lessee's insurance company
or from any other party in payment of the loss and the amount received by the
holder of the lessee's
deductible under the lessee's insurance policy.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/45)
Sec. 45. 
		Restriction on early termination liability.
(a) The lessee shall have the right to terminate the consumer lease
at any time after the lessee has made 12 full periodic lease payments for which
lease charges have been
accrued by the holder or, in the case of a single payment lease, at the
expiration of 12 months from the consummation of the lease.  Nothing in this
Section shall be deemed to prohibit the holder from permitting the lessee to
terminate the consumer lease before the expiration of 12 months.
(b) If a consumer lease is terminated early and there is no purchase
option or the lessee does not exercise a purchase option, the lessee's early
termination obligation may not exceed an amount equal to the sum of the
following:
(1) Any unpaid lease payments that accrued through     the date of early termination.
(2) Any other unpaid amounts, other than excess     mileage charges, arising under the terms of the lease.
(3) Any official fees and taxes imposed in connection     with lease termination.
(4) A disposition fee in an amount set forth in the     consumer lease.
(5) The reasonable costs of retaking, storing,     preparing for sale, and selling the vehicle, including reasonable attorneys' fees and collection and court costs incurred by the lessor in recovering or securing possession of the vehicle.
(6) The amount, if any, by which  (i) the balance     subject to lease charge plus the lease charge earned in advance for the computational period in which the early termination occurs, calculated in accordance with the constant yield method or any other generally accepted lease accounting method exceeds (ii) the realized value of the vehicle.
(7) Any other early termination charge expressly     disclosed in the consumer lease.
(c) As an alternative to the constant yield and other generally
accepted lease accounting methods of determining the depreciation amounts
accrued through the date of early termination of a precomputed lease
transaction, those amounts may be determined under paragraph (6) of subsection
(b) of this Section by using a lease provision under which the lease charge is
calculated on the adjusted capitalized cost for the time outstanding
according to a generally
accepted actuarial method.
(d) This Section does not limit or restrict the manner of
calculating the lessee's early termination obligation, whether by way of
unamortized capitalized cost, discounted present value of remaining lease
payments, multiples of monthly payments, or otherwise.
(e) Any refundable security deposit or advance lease payment held by
the holder may be retained by the holder or lessor and shall be credited
against the
lessee's early termination obligation.  The amount of the security deposit or
advance lease payment in excess of the amount of the lessee's early termination
obligation shall be returned to the lessee.  The holder or lessor is not
obligated to pay
interest to the lessee on the security deposit.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/50)
Sec. 50. 
		Restriction on the reporting of early terminations. 
		The holder shall not report the voluntary early termination of a
consumer lease to a consumer reporting agency as a default unless the lessee
fails to satisfy the lessee's early termination obligations within the time
periods set forth in the consumer lease.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/55)
Sec. 55. 
		Assessment of excess wear and damage to the vehicle.
(a) The consumer lease shall contain a clause complying with the
Consumer Leasing Act which describes the standards for determining excess wear
and damage to the vehicle for which the lessee will be liable.  Upon the
lessee's exercise of a purchase option, the holder may not charge, receive, or
collect a charge for excess wear and damage to the vehicle.  The holder may not
prohibit the lessee from being present at an inspection for excess wear and
damage.
(b) No later than 30 days after the return of the vehicle, the
holder shall present an itemized bill to the lessee by hand delivery at any
location or by first class mail or recognized courier service to the address on
the holder's records.  The itemized bill shall consist of a listing of the
items of excess wear and damage and the amounts to be paid by the lessee.  An
itemized bill may be comprised of separate documents delivered or mailed
separately.  An itemized bill may also include identified charges for excess
mileage and other amounts due under the lease.
 Nothing herein shall require the holder to send an itemized bill if the holder
does not
wish to collect an excess wear and damage charge.  Nothing herein shall limit
the
lessee's obligation for a charge for excess mileage or prohibit an agreement
between the lessee and the holder relating to wear and damage if such agreement
is consistent with the rights given to the lessee hereunder. In addition,
nothing herein shall limit the lessee's liability to holder for odometer
rollbacks or obscured or concealed structural or safety damage discovered by
the holder after the return of the vehicle or after the lessee receives an
itemized bill.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/60)
Sec. 60. 
		Satisfaction of consumer lease. 
		After the payment of all sums for which the lessee is obligated under
a consumer lease and upon the lessee's written request, the holder shall mail
to the lessee at the lessee's last known address documentation to indicate
payment in full.  This documentation shall not operate to release the lessee
from liability for events discovered by the holder subsequent to the mailing of
the documentation.  Except as otherwise set forth in Section 55, this
documentation shall not operate to release the lessee from liability for events
for which the lessee would be liable for if discovered by the lessor subsequent
to the mailing of the documentation.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/65)
Sec. 65. 
		Renegotiations and extensions.
(a) The disclosure requirements of Section 25 of this Act apply to
the renegotiation of a consumer lease.  A renegotiation does not constitute a
transaction subject to warranty or other provisions that apply to the sale of
used vehicles under the laws of this State.
(b) The disclosure requirements of Section 25 of this Act do not
apply to an extension of a consumer lease of six months or less.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/70)
Sec. 70. 
		Preservation of claims and defenses. 
		No lessor shall take or receive a consumer lease which fails to
contain the following provision in at least 10-point, bold-faced type:
"NOTICE
ANY HOLDER OF THIS CONSUMER LEASE IS SUBJECT TO ALL     CLAIMS AND DEFENSES WHICH (1) THE LESSEE COULD ASSERT AGAINST THE LESSOR OF THE VEHICLE LEASED PURSUANT HERETO AND (2) ARE APPARENT ON THE FACE OF THE CONSUMER LEASE.  RECOVERY BY THE LESSEE SHALL NOT EXCEED AMOUNTS PAID BY THE LESSEE HEREUNDER."
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/75)
Sec. 75. 
		Enforcement.
(1) The Attorney General or the State's Attorney of
any county in this State may bring an action in the name of the State against a
person to restrain and prevent any violation of this Act.  In the enforcement
of this Act, the Attorney General or the State's Attorney may accept an
assurance of discontinuance of any act or practice deemed in violation of this
Act, from any person engaging in or who has engaged in that act or practice.
Failure to perform the terms of the assurance constitutes prima facie proof of
a
violation of this Act.
(2) A holder or lessor may not be held liable in an action brought under
this Act for a violation of this Act that was unintentional and resulted from a
bona fide error notwithstanding the maintenance of procedures reasonably
adapted to avoid error.  Examples of bona fide errors include, but are
not limited to, clerical errors, calculation errors, computer malfunctions, and
programming errors, except that an error of legal judgment with respect to a
person's obligations under this Act is not a bona fide error.
(3) An action shall not be brought under this Act more than 2
years after the occurrence of the act, method, or practice which is the subject
of the action.
(4) This Act applies only to consumer leases that are both entered into and
in which the vehicle is returned within this State.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/85)
Sec. 85. 
		Supplementary general principles of law applicable. 
		Unless displaced by the particular provisions of this Act, other
statutes of this State applicable to personal property leases and the
principles of law and equity, including the law relative to capacity to
contract, principal and agent, estoppel, fraud, misrepresentation, duress,
coercion, mistake, bankruptcy, or other validating or invalidating cause
supplement its provisions.  In the event of an inconsistency between another
statute of this State applicable to personal property leases and this
Act, the provisions of this Act shall control.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/90)
Sec. 90. 
		Construction against implicit repeal. 
		This Act being a general Act intended as a unified coverage of
its subject matter, no part of it shall be construed to be impliedly repealed
by subsequent legislation if that
construction can reasonably be avoided.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/95)
Sec. 95. 
		Severability. 
		The provisions of this Act are severable under Section 1.31 of the Statute on
Statutes.
(Source: P.A. 89-625, eff. 1-1-97.)
(815 ILCS 636/999)
Sec. 999. 
		Effective date. 
		This Act takes effect January 1, 1997.
(Source: P.A. 89-625, eff. 1-1-97.)