Illinois SB1533 amends the Motor Vehicle Retail Installment Sales Act to clarify liability for co-signers on retail installment contracts.

Illinois SB1533 amends the Motor Vehicle Retail Installment Sales Act by specifying that individuals who co-sign a retail installment contract, other than the seller or holder, are liable only to the extent they receive the vehicle. This contrasts with parents, spouses, or other owners listed on the Certificate of Title, who can be held liable for the full deferred payment price. The bill also mandates that co-signers sign a separate instrument explaining their secondary liability, which only becomes active if the seller cannot collect from the primary obligor.

Illinois SB1533 amends the Motor Vehicle Retail Installment Sales Act to clarify liability for co-signers on retail installment contracts.

Illinois SB1533 amends the Motor Vehicle Retail Installment Sales Act by specifying that individuals who co-sign a retail installment contract, other than the seller or holder, are liable only to the extent they receive the vehicle. This contrasts with parents, spouses, or other owners listed on the Certificate of Title, who can be held liable for the full deferred payment price. The bill also mandates that co-signers sign a separate instrument explaining their secondary liability, which only becomes active if the seller cannot collect from the primary obligor.