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No, it's not illegal. You can do it without any problems. Still, you should know that if you're running a custom ROM, the unlock code won't work. You need to get back to the stock ROM.
This isn't completely true. I assume you are talking about US laws regarding unlocking? While carriers are required to unlock devices upon request, there are still certain conditions that have to be met.
Q: When is my device eligible for unlocking?
Your postpaid device is eligible to be unlocked by a participating provider after you have fulfilled the applicable service contract, completed the device installment plan or paid an early termination fee. Your prepaid device is eligible to be unlocked by a participating provider no later than one year after activation, consistent with reasonable time, payment, or usage requirements.
More info here:
http://www.fcc.gov/device-unlocking-faq
 
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It's perfectly legal in the EU. In fact a network is legally obliged to provide you with an unlock code (if requested) for a phone that is no longer subject to a minimum term clause. They may well impose an "admin fee" for doing so, but it's worth contacting the original network to check - why pay for something you might get for free? :)
 
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