Bill Text: IL HB3455 | 2025-2026 | 104th General Assembly | Introduced

---

Bill Title: Amends the Consumer Installment Loan Act. In provisions concerning an charges permitted, provides that the annual percentage rate shall be calculated using the system for calculating the annual percentage rate under the federal Truth in Lending Act (rather than a military annual percentage rate). Provides that a licensee shall not charge, impose, or receive any penalty for the prepayment of a loan. Provides that, before disbursing loan proceeds to a borrower, a licensee shall offer the borrower a credit education program or seminar provided by the licensee or a third party provider. Sets forth criteria for credit education programs or seminars. Makes changes in provision concerning the disclosure of Terms of contract and maximum loan terms and amount. Amends the Predatory Loan Prevention Act. In provisions concerning an annual percentage rate cap, provides that the annual percentage rate shall be calculated using the system for calculating the annual percentage rate under the federal Truth in Lending Act (rather than a military annual percentage rate). Makes changes in provisions concerning the purpose and construction of the Act. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-18 - Referred to Rules Committee [HB3455 Detail]

Download: Illinois-2025-HB3455-Introduced.html

---

104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3455 Introduced , by Rep. Justin Slaughter SYNOPSIS AS INTRODUCED:
205 ILCS 670/15 from Ch. 17, par. 5415
205 ILCS 670/15d from Ch. 17, par. 5419
205 ILCS 670/16 from Ch. 17, par. 5420
205 ILCS 670/17 from Ch. 17, par. 5423
205 ILCS 670/17.5
815 ILCS 123/15-1-5
815 ILCS 123/15-5-5
Amends the Consumer Installment Loan Act. In provisions concerning an charges permitted, provides that the annual percentage rate shall be calculated using the system for calculating the annual percentage rate under the federal Truth in Lending Act (rather than a military annual percentage rate). Provides that a licensee shall not charge, impose, or receive any penalty for the prepayment of a loan. Provides that, before disbursing loan proceeds to a borrower, a licensee shall offer the borrower a credit education program or seminar provided by the licensee or a third party provider. Sets forth criteria for credit education programs or seminars. Makes changes in provision concerning the disclosure of Terms of contract and maximum loan terms and amount. Amends the Predatory Loan Prevention Act. In provisions concerning an annual percentage rate cap, provides that the annual percentage rate shall be calculated using the system for calculating the annual percentage rate under the federal Truth in Lending Act (rather than a military annual percentage rate). Makes changes in provisions concerning the purpose and construction of the Act. Effective immediately.
LRB104 07584 SPS 17628 b
A BILL FOR
HB3455 LRB104 07584 SPS 17628 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Consumer Installment Loan Act is amended by
changing Sections 15, 15d, 16, 17, and 17.5 as follows:
(205 ILCS 670/15) (from Ch. 17, par. 5415)
Sec. 15. Charges permitted.
(a) Every licensee may lend a principal amount not
exceeding $40,000 and may charge, contract for and receive
thereon an annual percentage rate of no more than 36% plus the
Federal Funds Rate, subject to the provisions of this Act. For
purposes of this Section, the annual percentage rate shall be
calculated as such rate is calculated using the system for
calculating the annual percentage rate under the federal Truth
in Lending Act, 15 U.S.C. 1601 et seq., and its implementing
regulations under Regulation Z, 12 CFR 1026.1 et seq. As used
in this subsection, "Federal Funds Rate" means the rate
published by the Board of Governors of the Federal Reserve
System in its Statistical Release H.15 Selected Interest Rates
in effect on the first day of the month immediately preceding
the month during which the loan is consummated. If the Federal
Reserve System stops publication of the Federal Funds Rate,
the Director of the Division of Financial Institutions shall

HB3455 - 2 - LRB104 07584 SPS 17628 b
designate a substantially equivalent index a military annual
percentage rate under Section 232.4 of Title 32 of the Code of
Federal Regulations as in effect on the effective date of this
amendatory Act of the 101st General Assembly.
(b) For purpose of this Section, the following terms shall
have the meanings ascribed herein.
"Applicable interest" for a precomputed loan contract
means the amount of interest attributable to each monthly
installment period. It is computed as if each installment
period were one month and any interest charged for extending
the first installment period beyond one month is ignored. The
applicable interest for any monthly installment period is that
portion of the precomputed interest that bears the same ratio
to the total precomputed interest as the balances scheduled to
be outstanding during that month bear to the sum of all
scheduled monthly outstanding balances in the original
contract.
"Interest-bearing loan" means a loan in which the debt is
expressed as a principal amount plus interest charged on
actual unpaid principal balances for the time actually
outstanding.
"Precomputed loan" means a loan in which the debt is
expressed as the sum of the original principal amount plus
interest computed actuarially in advance, assuming all
payments will be made when scheduled.
"Substantially equal installment" includes a last

HB3455 - 3 - LRB104 07584 SPS 17628 b
regularly scheduled payment that may be less than, but not
more than 5% larger than, the previous scheduled payment
according to a disclosed payment schedule agreed to by the
parties.
(c) Loans may be interest-bearing or precomputed.
(d) To compute time for either interest-bearing or
precomputed loans for the calculation of interest and other
purposes, a month shall be a calendar month and a day shall be
considered 1/30th of a month when calculation is made for a
fraction of a month. A month shall be 1/12th of a year. A
calendar month is that period from a given date in one month to
the same numbered date in the following month, and if there is
no same numbered date, to the last day of the following month.
When a period of time includes a month and a fraction of a
month, the fraction of the month is considered to follow the
whole month. In the alternative, for interest-bearing loans,
the licensee may charge interest at the rate of 1/365th of the
agreed annual rate for each day actually elapsed.
(d-5) No licensee or other person may condition an
extension of credit to a consumer on the consumer's repayment
by preauthorized electronic fund transfers. Payment options,
including, but not limited to, electronic fund transfers and
Automatic Clearing House (ACH) transactions may be offered to
consumers as a choice and method of payment chosen by the
consumer.
(e) With respect to interest-bearing loans:

HB3455 - 4 - LRB104 07584 SPS 17628 b
(1) Interest shall be computed on unpaid principal
balances outstanding from time to time, for the time
outstanding, until fully paid. Each payment shall be
applied first to the accumulated interest and the
remainder of the payment applied to the unpaid principal
balance; provided however, that if the amount of the
payment is insufficient to pay the accumulated interest,
the unpaid interest continues to accumulate to be paid
from the proceeds of subsequent payments and is not added
to the principal balance.
(2) Interest shall not be payable in advance or
compounded. However, if part or all of the consideration
for a new loan contract is the unpaid principal balance of
a prior loan, then the principal amount payable under the
new loan contract may include any unpaid interest which
has accrued. The unpaid principal balance of a precomputed
loan is the balance due after refund or credit of unearned
interest as provided in paragraph (f), clause (3). The
resulting loan contract shall be deemed a new and separate
loan transaction for all purposes.
(3) Loans must be fully amortizing and be repayable in
substantially equal and consecutive weekly, biweekly,
semimonthly, or monthly installments. Notwithstanding this
requirement, rates may vary according to an index that is
independently verifiable and beyond the control of the
licensee.

HB3455 - 5 - LRB104 07584 SPS 17628 b
(4) The lender or creditor may, if the contract
provides, collect a delinquency or 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.
(f) With respect to precomputed loans:
(1) Loans shall be repayable in substantially equal
and consecutive weekly, biweekly, semimonthly, or monthly
installments of principal and interest combined, except
that the first installment period may be longer than one
month by not more than 15 days, and the first installment
payment amount may be larger than the remaining payments
by the amount of interest charged for the extra days; and
provided further that monthly installment payment dates
may be omitted to accommodate borrowers with seasonal
income.
(2) Payments may be applied to the combined total of
principal and precomputed interest until the loan is fully
paid. Payments shall be applied in the order in which they
become due, except that any insurance proceeds received as
a result of any claim made on any insurance, unless
sufficient to prepay the contract in full, may be applied
to the unpaid installments of the total of payments in

HB3455 - 6 - LRB104 07584 SPS 17628 b
inverse order.
(3) When any loan contract is paid in full by cash,
renewal or refinancing, or a new loan, one month or more
before the final installment due date, a licensee shall
refund or credit the obligor with the total of the
applicable interest for all fully unexpired installment
periods, as originally scheduled or as deferred, which
follow the day of prepayment; provided, if the prepayment
occurs prior to the first installment due date, the
licensee may retain 1/30 of the applicable interest for a
first installment period of one month for each day from
the date of the loan to the date of prepayment, and shall
refund or credit the obligor with the balance of the total
interest contracted for. If the maturity of the loan is
accelerated for any reason and judgment is entered, the
licensee shall credit the borrower with the same refund as
if prepayment in full had been made on the date the
judgment is entered.
(4) The lender or creditor may, if the contract
provides, collect a delinquency or 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 or collection
charge may be collected on any installment regardless of
the period during which it remains in default.

HB3455 - 7 - LRB104 07584 SPS 17628 b
(5) If the parties agree in writing, either in the
loan contract or in a subsequent agreement, to a deferment
of wholly unpaid installments, a licensee may grant a
deferment and may collect a deferment charge as provided
in this Section. A deferment postpones the scheduled due
date of the earliest unpaid installment and all subsequent
installments as originally scheduled, or as previously
deferred, for a period equal to the deferment period. The
deferment period is that period during which no
installment is scheduled to be paid by reason of the
deferment. The deferment charge for a one-month period may
not exceed the applicable interest for the installment
period immediately following the due date of the last
undeferred payment. A proportionate charge may be made for
deferment for periods of more or less than one month. A
deferment charge is earned pro rata during the deferment
period and is fully earned on the last day of the deferment
period. Should a loan be prepaid in full during a
deferment period, the licensee shall credit to the obligor
a refund of the unearned deferment charge in addition to
any other refund or credit made for prepayment of the loan
in full.
(6) If 2 or more installments are delinquent one full
month or more on any due date, and if the contract so
provides, the licensee may reduce the unpaid balance by
the refund credit which would be required for prepayment

HB3455 - 8 - LRB104 07584 SPS 17628 b
in full on the due date of the most recent maturing
installment in default. Thereafter, and in lieu of any
other default or deferment charges, the agreed rate of
interest may be charged on the unpaid balance until fully
paid.
(7) Fifteen days after the final installment as
originally scheduled or deferred, the licensee, for any
loan contract which has not previously been converted to
interest-bearing under paragraph (f), clause (6), may
compute and charge interest on any balance remaining
unpaid, including unpaid default or deferment charges, at
the agreed rate of interest until fully paid. At the time
of payment of said final installment, the licensee shall
give notice to the obligor stating any amounts unpaid.
(g) A licensee shall not charge, impose, or receive any
penalty for the prepayment of a loan.
(Source: P.A. 103-1014, eff. 8-9-24.)
(205 ILCS 670/15d) (from Ch. 17, par. 5419)
Sec. 15d. Extra charges prohibited; exceptions.
(a) No amount in addition to the charges authorized by
this Act shall be directly or indirectly charged, contracted
for, or received, except (1) lawful fees paid to any public
officer or agency to record, file or release security; (2) (i)
costs and disbursements actually incurred in connection with a
real estate loan, for any title insurance, title examination,

HB3455 - 9 - LRB104 07584 SPS 17628 b
abstract of title, survey, or appraisal, or paid to a trustee
in connection with a trust deed, and (ii) in connection with a
real estate loan those charges authorized by Section 4.1a of
the Interest Act, whether called "points" or otherwise, which
charges are imposed as a condition for making the loan and are
not refundable in the event of prepayment of the loan; (3)
costs and disbursements, including reasonable attorney's fees,
incurred in legal proceedings to collect a loan or to realize
on a security after default; and (4) an amount not exceeding
$25, plus any actual expenses incurred in connection with a
check or draft that is not honored because of insufficient or
uncollected funds or because no such account exists; and (5)
an administrative fee of up to $75 on loans up to $5,000 as
described in subsection (b). This Section does not prohibit
the receipt of a commission, dividend, charge, or other
benefit by the licensee or by an employee, affiliate, or
associate of the licensee from the insurance permitted by
Sections 15a and 15b of this Act or from insurance in lieu of
perfecting a security interest provided that the premiums for
such insurance do not exceed the fees that otherwise could be
contracted for by the licensee under this Section. Obtaining
any of the items referred to in clause (i) of item (2) of this
Section through the licensee or from any person specified by
the licensee shall not be a condition precedent to the
granting of the loan.
(b) A licensee may contract for and receive an

HB3455 - 10 - LRB104 07584 SPS 17628 b
administrative fee that shall be fully earned immediately upon
making the loan with a principal amount of not more than
$5,000, excluding the administrative fee, at a rate not to
exceed $75. No administrative fee may be contracted for or
received in connection with the refinancing of a loan unless
at least one year has elapsed since the receipt of a previous
administrative fee paid by the borrower. Only one
administrative fee may be contracted for or received after the
consummation of the loan. An administrative fee shall not be
considered as a penalty for the prepayment of a loan.
(Source: P.A. 101-658, eff. 3-23-21.)
(205 ILCS 670/16) (from Ch. 17, par. 5420)
Sec. 16. Disclosure of Terms of Contract. In any loan
transaction under this Act, the licensee must disclose the
following items to the obligor of the loan before the
transaction is consummated:
(a) The amount and date of the loan contract;
(b) The amount of the loan using the term "amount
financed";
(c) Any 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;
(d) Any additional deduction from the loan or payment made
by the obligor in connection with obtaining the loan;
(e) The date on which the finance charge begins to accrue

HB3455 - 11 - LRB104 07584 SPS 17628 b
if different from the date of the transaction;
(f) The total amount of the loan charge with a description
of each amount included using the term "finance charge";
(g) 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
licensee 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%;
(h) 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";
(i) The amount, or method of computing the amount of any
default, delinquency or similar charges payable in the event
of late payments;
(j) The right of the obligor to prepay the loan in full on
any installment date and the fact that such prepayment in full
will reduce the insurance charge for the loan;
(k) A description or identification of the type of any
security interest held or to be retained or acquired by the
licensee 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

HB3455 - 12 - LRB104 07584 SPS 17628 b
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;
(l) A description expressly stating there are no penalties
for prepayment of the loan of any penalty charge that may be
imposed by the licensee 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;
(m) Identification and description of the method of
computing any unearned portion of the finance charge in the
event of prepayment of the loan, and if the licensee uses the
"Rule of 78THS" method, including a statement explaining such
method substantially as follows:
Unearned finance charges under the Rule of 78ths are
computed by calculating for all fully unexpired monthly
installment periods, as originally scheduled or deferred,
which follow the day of prepayment, the portion of the
precomputed interest that bears the same ratio to the
total precomputed interest as the balances scheduled to be
outstanding during that monthly installment period bear to
the sum of all scheduled monthly outstanding balances
originally contracted for.
The description shall also include an example of its
application solely for purposes of illustration in

HB3455 - 13 - LRB104 07584 SPS 17628 b
substantially the following form:
PREPAYMENT - "RULE OF 78THS"
Sum of balances due every month after
Unearned = Original x prepayment
Charge Charge* Sum of balances due every month of
contract
*for Finance Charge (excluding any charges added for a first
payment period of more than one month) or credit insurance
charges.
Example: 12 monthly payments of $10 (balance is $120 1st
month, $110 2nd month, and so on), $20 Finance Charge. If 5
payments are prepaid in full, unearned Finance Charge is:
$20 x _____________50+40+30+20+10___________ = $3.85
120+110+100+90+80+70+60+50+40+30+20+10
The terms "finance charge" and "annual percentage rate"
shall be printed more conspicuously than other terminology
required by this Section.
If a loan made under this Act is prepaid, the computation
of the unearned portion of the finance charge as described in
this Section shall not be considered as a penalty for the
prepayment of the loan.
At the time disclosures are made, the licensee shall
deliver to the obligor a duplicate of the instrument or
statement by which the required disclosures are made and on
which the licensee and obligor are identified and their
addresses stated. All of the disclosures shall be made

HB3455 - 14 - LRB104 07584 SPS 17628 b
clearly, conspicuously and in meaningful sequence and made
together on either:
(i) the note or other instrument evidencing the
obligation. 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 Section 16 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
obligor'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 licensee 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 licensee or to a third party,
including any of the following types of charges:
(1) Interest, time price differential, and any amount

HB3455 - 15 - LRB104 07584 SPS 17628 b
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:
(i) the insurance coverage is not required by the
licensee and this fact is clearly and conspicuously
disclosed in writing to the obligor; and
(ii) 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
licensee to the obligor setting forth the cost of the
insurance if obtained from or through the licensee and
stating that the obligor may choose the person through

HB3455 - 16 - LRB104 07584 SPS 17628 b
which the insurance is to be obtained.
(7) Premium or other charge for any other guarantee or
insurance protecting the licensee against the obligor's
default or other credit loss.
(8) Any charge imposed by a licensee upon another
licensee 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 charge is not a finance charge if imposed for actual
unanticipated late payment, delinquency, default or other
occurrence.
A licensee 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 this Section, except with respect to
the disclosure in paragraph (m), which may be set forth in any
manner.
(Source: P.A. 90-437, eff. 1-1-98.)
(205 ILCS 670/17) (from Ch. 17, par. 5423)
Sec. 17. Maximum term and amount.
(a) The loan contract for a loan of more than $10,000 shall
provide for repayment of the principal and charges within 181
months from the date of the loan contract or the last advance,

HB3455 - 17 - LRB104 07584 SPS 17628 b
if any, required by the loan contract.
(b) The loan contract for a loan of $10,000 or less shall
provide for repayment of the principal and charges at least 12
months and no more than 60 months and 15 days from the date of
the loan contract or the last advance, if any, required by the
loan contract.
(c) No licensee shall permit an obligor to owe such
licensee or an affiliate (including a corporation owned or
managed by the licensee) or agent of such licensee an
aggregate principal amount of more than $40,000 at any time
for loans transacted pursuant to this Act.
(Source: P.A. 93-264, eff. 1-1-04.)
(205 ILCS 670/17.5)
Sec. 17.5. Reporting to consumer reporting agencies and
financial education Consumer reporting service.
(a) Beginning on January 1, 2026, every licensee shall
report each borrower's payment performance to at least one
consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis. For purposes of this Section,
a "consumer reporting agency that compiles and maintains files
on consumers on a nationwide basis" has the meaning ascribed
to that term in 15 U.S.C. 1681a(p). For the purpose of this
Section, "certified database" means the consumer reporting
service database established pursuant to the Payday Loan
Reform Act. "Title-secured loan" means a loan in which, at

HB3455 - 18 - LRB104 07584 SPS 17628 b
commencement, a consumer provides to the licensee, as security
for the loan, physical possession of the consumer's title to a
motor vehicle.
(b) No later than January 1, 2026, every licensee shall
obtain approval to report to at least one consumer reporting
agency and, once approved, shall report borrower payment
performance to that consumer reporting agency in connection
with all loans made on and after January 1, 2026. Licensees
shall enter information regarding each loan into the certified
database and shall follow the Department's related rules.
(c) Before disbursing loan proceeds to a borrower, a
licensee shall offer the borrower a credit education program
or seminar provided by the licensee or a third party provider
that has been reviewed and approved by the Director for use in
complying with this Section. A credit education program or
seminar may be provided in writing, electronically, or orally,
but, if provided orally, shall be accompanied by written or
electronic materials that a prospective borrower can retain or
access following the conclusion of the program or seminar For
every title-secured loan made, the licensee shall input
information as provided in 38 Ill. Adm. Code 110.420.
(d) The Director shall approve credit education programs
or seminars that, at a minimum, cover all of the following
topics concerning credit scores and credit reports provided by
consumer reporting agencies:
(1) the value of establishing a credit score;

HB3455 - 19 - LRB104 07584 SPS 17628 b
(2) ways to establish a credit score;
(3) ways to improve a credit score;
(4) factors that impact a credit score;
(5) ways to check a credit score;
(6) ways to obtain a free copy of a credit report; and
(7) ways to dispute an error in a credit report The
certified database provider shall indemnify the licensee
against all claims and actions arising from illegal or
willful or wanton acts on the part of the certified
database provider. The certified database provider may
charge a fee not to exceed $1 for each loan entered into
the certified database. The database provider shall not
charge any additional fees or charges to the licensee.
(e) A credit education program or seminar offered under
this Section shall be offered at no cost to the borrower.
(f) A licensee shall not require a borrower to participate
in a credit education program or seminar as a condition of a
loan.
(Source: P.A. 101-658, eff. 3-23-21.)
Section 10. The Predatory Loan Prevention Act is amended
by changing Sections 15-1-5 and 15-5-5 as follows:
(815 ILCS 123/15-1-5)
Sec. 15-1-5. Purpose and construction. Illinois families
pay over $500,000,000 per year in consumer installment,

HB3455 - 20 - LRB104 07584 SPS 17628 b
payday, and title loan fees. As reported by the Department in
2020, nearly half of Illinois payday loan borrowers earn less
than $30,000 per year, and the average annual percentage rate
of a payday loan is 297%. The purpose of this Act is to protect
consumers from predatory loans consistent with federal law and
the Military Lending Act which protects active duty members of
the military. This Act shall be construed as a consumer
protection law for all purposes. This Act shall be liberally
construed to effectuate its purpose.
(Source: P.A. 101-658, eff. 3-23-21.)
(815 ILCS 123/15-5-5)
Sec. 15-5-5. Rate cap. Notwithstanding any other provision
of law, for loans made or renewed on and after the effective
date of this Act, a lender shall not contract for or receive
charges exceeding an annual percentage rate of a 36% plus the
Federal Funds Rate annual percentage rate on the unpaid
balance of the amount financed for a loan. For purposes of this
Section, the annual percentage rate shall be calculated as
such rate is calculated using the system for calculating the
annual percentage rate under the federal Truth in Lending Act,
15 U.S.C. 1601 et seq., and its implementing regulations under
Regulation Z, 12 CFR 1026 et seq a military annual percentage
rate under Section 232.4 of Title 32 of the Code of Federal
Regulations as in effect on the effective date of this Act.
Nothing in this Act shall be construed to permit a person or

HB3455 - 21 - LRB104 07584 SPS 17628 b
entity to contract for or receive a charge exceeding that
permitted by the Interest Act or other law. As used in this
Section, "Federal Funds Rate" means the rate published by the
Board of Governors of the Federal Reserve System in its
Statistical Release H.15 Selected Interest Rates in effect on
the first day of the month immediately preceding the month
during which the loan is consummated. If the Federal Reserve
System stops publication of the Federal Funds Rate, the
Director of the Division of Financial Institutions shall
designate a substantially equivalent index.
(Source: P.A. 101-658, eff. 3-23-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.