Sec. 30. Security interest prohibited.

163 words·~1 min read·/il/chapter-815/act-636/30

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.