PROHIB PREPAYMENT PENALTIES House SponsorsRep. Lou Lang-Keith Farnham-Fred Crespo-Careen M. Gordon-Monique D. Davis, Emily McAsey, Patrick J. Verschoore, Deborah L. Graham, Annazette Collins, Jehan A. Gordon, Joseph M. Lyons, Al Riley, Elaine Nekritz, Marlow H. Colvin, Camille Y Lilly, Patricia R. Bellock, Karen A. Yarbrough, Kenneth Dunkin, Robert F. Flider, Cynthia Soto, Paul D. Froehlich, Elizabeth Hernandez, Edward J. Acevedo, Susana A. Mendoza, Luis Arroyo, Maria Antonia Berrios, John D'Amico, Sandra M. Pihos, Esther Golar and Eddie Lee Jackson, Sr. Senate Sponsors(Sen. Kimberly A. Lightford-Jacqueline Y. Collins-Heather Steans-Dan Rutherford-Emil Jones, III, Toi W. Hutchinson and Mattie Hunter) 6/21/2010HousePublic Act . . . . . . . . . 96-0936 205 ILCS 635/5-8815 ILCS 137/30815 ILCS 205/4.1afrom Ch. 17, par. 6406 Amends the Residential Mortgage License Act of 1987. Provides that no licensee may make, provide, or arrange a mortgage loan with a prepayment penalty (rather than permitting prepayment penalties under specified conditions). Provides that prepayment penalties are prohibited in connection with the sale or destruction of a dwelling secured by a residential mortgage loan. Amends the High Risk Home Loan Act to provide that for any loan that is subject to the provisions of the Act and is not subject to the provisions of the Home Ownership and Equity Protection Act of 1994, no lender shall make a high risk home loan that includes a penalty provision (rather than permitting prepayment penalties under specified conditions). Amends the Interest Act. Deletes a provision providing that notwithstanding specified provisions, the lender, in the case of any nonexempt residential mortgage loan, shall have the right to include a prepayment penalty that meets specified criteria.Senate Committee Amendment No. 1 Deletes reference to:205 ILCS 635/5-8815 ILCS 137/30 815 ILCS 205/4.1a from Ch. 17, par. 6406Adds reference to:205 ILCS 635/1-1from Ch. 17, par. 2321-1Replaces everything after the enacting clause. Amends the Residential Mortgage License Act of 1987. Makes a technical change in the Section concerning the short title of the Act.Senate Floor Amendment No. 2 Deletes reference to:205 ILCS 635/1-1from Ch. 17, par. 2321-1Adds reference to:205 ILCS 670/1from Ch. 17, par. 5401205 ILCS 670/15from Ch. 17, par. 5415205 ILCS 670/17.1 new205 ILCS 670/17.2 new205 ILCS 670/17.3 new205 ILCS 670/17.4 new205 ILCS 670/17.5 new205 ILCS 670/19.2 new205 ILCS 675/3from Ch. 17, par. 7003815 ILCS 122/1-10815 ILCS 122/2-5815 ILCS 122/2-10815 ILCS 122/2-15815 ILCS 122/2-17815 ILCS 122/2-20815 ILCS 122/2-30815 ILCS 122/2-40815 ILCS 122/2-45815 ILCS 122/3-5815 ILCS 122/4-5Replaces everything after the enacting clause. Amends the Consumer Installment Loan Act. Changes provisions concerning the licensure of a licensee. Changes provisions concerning permitted charges. Adds provisions concerning small consumer loans with respect to permitted charges, terms, and loan amounts. Adds provisions concerning the verification of a borrower's ability to repay a small consumer loan. Contains provisions concerning the prohibition against accepting certain checks. Amends the Illinois Financial Services Development Act to change the definition of the term "financial institution". Amends the Payday Loan Reform Act to make changes concerning loan terms, permitted fees, borrower verification, consumer reporting services qualification bonding, required disclosures, default, licensure of licensees, and prohibited acts. Effective 9 months after becoming law.Senate Floor Amendment No. 3 Changes a reference of "financial institution" to "licensee". Restores current law with respect to the prohibition against a lender charging more than $15.50 per $100 loaned on any payday loan over the term of the loan.Senate Floor Amendment No. 4 Changes a reference of "financial institution" to "licensee". Makes changes in a provision prohibiting certain lender charging practices. Provides that no lender may charge more than $15.50 per $100 loaned on any payday loan or more than $15.50 per $100 on the initial principal balance and on the principal balances scheduled to be outstanding during any installment period on any installment payday loan. Provides that, except for installment payday loans and except as provided in the provisions concerning the right to cancel future payment obligations, this charge is considered fully earned as of the date on which the loan is made. Provides that the disclosed annual percentage rate shall be applied to the principal balances outstanding from time to time. Provides that no finance charge may be imposed after the final scheduled maturity date. Provides that when any loan contract is paid in full, the licensee shall refund any unearned finance charge. Makes other changes. 2/4/2009HouseFiled with the Clerk by Rep. Charles E. Jefferson 2/4/2009HouseChief Co-Sponsor Rep. Keith Farnham 2/4/2009HouseChief Co-Sponsor Rep. Fred Crespo 2/4/2009HouseFirst Reading 2/4/2009HouseReferred to Rules Committee 2/9/2009HouseAssigned to Consumer Protection Committee 3/10/2009HouseDo Pass / Standard Debate Consumer Protection Committee; 008-006-000 3/11/2009HousePlaced on Calendar 2nd Reading - Standard Debate 3/23/2009HouseAdded Co-Sponsor Rep. Emily McAsey 3/25/2009HouseSecond Reading - Standard Debate 3/25/2009HousePlaced on Calendar Order of 3rd Reading - Standard Debate 3/26/2009HouseAdded Chief Co-Sponsor Rep. Careen M. Gordon 3/26/2009HouseAdded Chief Co-Sponsor Rep. Kenneth Dunkin 3/26/2009HouseAdded Co-Sponsor Rep. Patrick J. Verschoore 4/3/2009HouseAdded Co-Sponsor Rep. Deborah L. Graham 4/3/2009HouseThird Reading - Standard Debate - Passed 065-049-001 4/3/2009HouseAdded Co-Sponsor Rep. Annazette Collins 4/3/2009HouseAdded Co-Sponsor Rep. Jehan A. Gordon 4/15/2009SenateArrive in Senate 4/15/2009SenatePlaced on Calendar Order of First Reading 4/15/2009SenateChief Senate Sponsor Sen. John J. Cullerton 4/15/2009SenateAdded as Alternate Chief Co-Sponsor Sen. Don Harmon 4/15/2009SenateFirst Reading 4/15/2009SenateReferred to Assignments 4/22/2009SenateAssigned to Financial Institutions 4/29/2009SenateAlternate Chief Sponsor Changed to Sen. Ira I. Silverstein 4/30/2009SenateHeld in Financial Institutions 5/7/2009SenateHeld in Financial Institutions 5/8/2009SenateRule 3-9(a) / Re-referred to Assignments 5/12/2009SenateSponsor Removed Sen. Don Harmon 4/22/2010SenateRe-assigned to Executive 4/23/2010SenateRule 2-10 Committee Deadline Established As May 7, 2010 4/27/2010SenateAlternate Chief Sponsor Changed to Sen. John J. Cullerton 4/28/2010SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. John J. Cullerton 4/28/2010SenateSenate Committee Amendment No. 1 Referred to Assignments 4/28/2010SenateSenate Committee Amendment No. 1 Assignments Refers to Executive 4/28/2010SenateSenate Committee Amendment No. 1 Adopted 4/28/2010SenateDo Pass as Amended Executive; 008-001-004 4/28/2010SenatePlaced on Calendar Order of 2nd Reading April 29, 2010 4/30/2010SenateSecond Reading 4/30/2010SenatePlaced on Calendar Order of 3rd Reading May 3, 2010 5/3/2010SenateAlternate Chief Sponsor Changed to Sen. Kimberly A. Lightford 5/4/2010SenateSenate Floor Amendment No. 2 Filed with Secretary by Sen. Kimberly A. Lightford 5/4/2010SenateSenate Floor Amendment No. 2 Referred to Assignments 5/4/2010SenateSenate Floor Amendment No. 2 Assignments Refers to Financial Institutions 5/5/2010SenateSenate Floor Amendment No. 2 Recommend Do Adopt Financial Institutions; 010-000-000 5/5/2010SenateAdded as Alternate Chief Co-Sponsor Sen. Jacqueline Y. Collins 5/5/2010SenateAdded as Alternate Chief Co-Sponsor Sen. Heather Steans 5/5/2010SenateSenate Floor Amendment No. 3 Filed with Secretary by Sen. Kimberly A. Lightford 5/5/2010SenateSenate Floor Amendment No. 3 Referred to Assignments 5/5/2010SenateSenate Floor Amendment No. 3 Assignments Refers to Executive 5/5/2010SenateSenate Floor Amendment No. 4 Filed with Secretary by Sen. Kimberly A. Lightford 5/5/2010SenateSenate Floor Amendment No. 4 Referred to Assignments 5/5/2010SenateSenate Floor Amendment No. 3 Recommend Do Adopt Executive; 013-000-000 5/5/2010SenateSenate Floor Amendment No. 4 Be Approved for Consideration Assignments 5/5/2010SenateAdded as Alternate Chief Co-Sponsor Sen. Dan Rutherford 5/5/2010SenateRecalled to Second Reading 5/5/2010SenateSenate Floor Amendment No. 2 Adopted; Lightford 5/5/2010SenateSenate Floor Amendment No. 3 Adopted; Lightford 5/5/2010SenateSenate Floor Amendment No. 4 Adopted; Lightford 5/5/2010SenatePlaced on Calendar Order of 3rd Reading 5/5/2010SenateAdded as Alternate Chief Co-Sponsor Sen. Emil Jones, III 5/5/2010SenateAdded as Alternate Co-Sponsor Sen. Toi W. Hutchinson 5/5/2010SenateAdded as Alternate Co-Sponsor Sen. Mattie Hunter 5/5/2010SenateThird Reading - Passed; 058-001-000 5/5/2010HouseArrived in House 5/5/2010HousePlaced on Calendar Order of Concurrence Senate Amendment(s) 1, 2, 3, 4 5/5/2010HouseChief Sponsor Changed to Rep. Lou Lang 5/6/2010HouseSenate Committee Amendment No. 1 Motion Filed Concur Rep. Lou Lang 5/6/2010HouseSenate Floor Amendment No. 2 Motion Filed Concur Rep. Lou Lang 5/6/2010HouseSenate Floor Amendment No. 3 Motion Filed Concur Rep. Lou Lang 5/6/2010HouseSenate Floor Amendment No. 4 Motion Filed Concur Rep. Lou Lang 5/6/2010HouseSenate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee 5/6/2010HouseSenate Floor Amendment No. 2 Motion to Concur Referred to Rules Committee 5/6/2010HouseSenate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee 5/6/2010HouseSenate Floor Amendment No. 4 Motion to Concur Referred to Rules Committee 5/6/2010HouseAdded Co-Sponsor Rep. Joseph M. Lyons 5/6/2010HouseAdded Co-Sponsor Rep. Al Riley 5/6/2010HouseAdded Co-Sponsor Rep. Elaine Nekritz 5/6/2010HouseAdded Co-Sponsor Rep. Marlow H. Colvin 5/6/2010HouseAdded Co-Sponsor Rep. Camille Y Lilly 5/6/2010HouseAdded Co-Sponsor Rep. Patricia R. Bellock 5/6/2010HouseAdded Co-Sponsor Rep. Karen A. Yarbrough 5/6/2010HouseRemove Chief Co-Sponsor Rep. Kenneth Dunkin 5/6/2010HouseAdded Co-Sponsor Rep. Kenneth Dunkin 5/6/2010HouseAdded Chief Co-Sponsor Rep. Monique D. Davis 5/7/2010HouseSenate Committee Amendment No. 1 Motion to Concur Rules Referred to Executive Committee 5/7/2010HouseSenate Floor Amendment No. 2 Motion to Concur Rules Referred to Executive Committee 5/7/2010HouseSenate Floor Amendment No. 3 Motion to Concur Rules Referred to Executive Committee 5/7/2010HouseSenate Floor Amendment No. 4 Motion to Concur Rules Referred to Executive Committee 5/24/2010HouseSenate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Executive Committee; 010-000-000 5/24/2010HouseSenate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Executive Committee; 010-000-000 5/24/2010HouseSenate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Executive Committee; 010-000-000 5/24/2010HouseSenate Floor Amendment No. 4 Motion to Concur Recommends Be Adopted Executive Committee; 010-000-000 5/25/2010HouseAdded Co-Sponsor Rep. Robert F. Flider 5/26/2010HouseSenate Committee Amendment No. 1 House Concurs 108-001-001 5/26/2010HouseSenate Floor Amendment No. 2 House Concurs 108-001-001 5/26/2010HouseSenate Floor Amendment No. 3 House Concurs 108-001-001 5/26/2010HouseSenate Floor Amendment No. 4 House Concurs 108-001-001 5/26/2010HousePassed Both Houses 5/26/2010HouseAdded Co-Sponsor Rep. Cynthia Soto 5/26/2010HouseAdded Co-Sponsor Rep. Paul D. Froehlich 5/26/2010HouseAdded Co-Sponsor Rep. Elizabeth Hernandez 5/26/2010HouseAdded Co-Sponsor Rep. Edward J. Acevedo 5/26/2010HouseAdded Co-Sponsor Rep. Susana A. Mendoza 5/26/2010HouseAdded Co-Sponsor Rep. Luis Arroyo 5/26/2010HouseAdded Co-Sponsor Rep. Maria Antonia Berrios 5/26/2010HouseAdded Co-Sponsor Rep. John D'Amico 5/26/2010HouseAdded Co-Sponsor Rep. Sandra M. Pihos 5/26/2010HouseAdded Co-Sponsor Rep. Esther Golar 5/26/2010HouseAdded Co-Sponsor Rep. Eddie Lee Jackson, Sr. 6/17/2010HouseSent to the Governor 6/21/2010HouseGovernor Approved 6/21/2010HouseEffective Date March 21, 2011 6/21/2010HousePublic Act . . . . . . . . . 96-0936