Credit Agreements Act (815 ILCS 160/)

Chapter 815 — Business Transactions

Loans and Credit

This text is maintained by the Legislative Reference Bureau for legislative drafting purposes and is NOT the official text of the Illinois Compiled Statutes; the only official copy is the printed copy maintained by the Secretary of State.

Sec. 0.01. Short title

This Act may be cited as the Credit Agreements Act.

(Source: P.A. 86-1324.)

Sec. 1. Definitions

For the purpose of this Act, the following terms have the meanings given them:

(1) "Credit agreement" means an agreement or commitment by a creditor to lend money or extend credit or delay or forbear repayment of money not primarily for personal, family or household purposes, and not in connection with the issuance of credit cards.

(2) "Creditor" means a person engaged in the business of lending money or extending credit.

(3) "Debtor" means a person who obtains credit or seeks a credit agreement or claims the existence of a credit agreement with a creditor or who owes money to a creditor.

(4) "Person" means an individual, corporation, partnership, joint venture, trust estate, unincorporated association or other entity.

(Source: P.A. 86-613.)

Sec. 2. Credit agreements to be in writing

A debtor may not maintain an action on or in any way related to a credit agreement unless the credit agreement is in writing, expresses an agreement or commitment to lend money or extend credit or delay or forbear repayment of money, sets forth the relevant terms and conditions, and is signed by the creditor and the debtor.

(Source: P.A. 86-613.)

Sec. 3. Actions not considered agreements

The following actions do not give rise to a claim, counter-claim, or defense by a debtor that a new credit agreement is created, unless the agreement satisfies the requirements of Section 2:

(1) the rendering of financial advice by a creditor to a debtor;

(2) the consultation by a creditor with a debtor; or

(3) the agreement by a creditor to modify or amend an existing credit agreement or to otherwise take certain actions, such as entering into a new credit agreement, forbearing from exercising remedies in connection with an existing credit agreement, or rescheduling or extending installments due under an existing credit agreement.

(Source: P.A. 86-613.)

Sec. 3.1. Liability; privity of contract

No creditor shall be liable to a person not in privity of contract with the creditor for civil damages arising out of a credit agreement, or any conditions precedent thereto, except for acts or conduct by the creditor that constitute fraud against the person.

(Source: P.A. 89-309, eff. 8-11-95.)