Bill Text: IL SB1227 | 2011-2012 | 97th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Creates the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act. Provides that manufactured homes are deemed to be real property. Sets forth certain conditions that must be met to convey or voluntarily encumber a manufactured home as real property. Contains provisions concerning affidavits of affixation and affidavits of severance. Contains provisions concerning security interests and liens. Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the tax imposed on new mobile homes or new manufactured homes located outside of mobile home parks shall be calculated against 40% of the selling price of the home and against 100% of the selling price of any other building materials. Amends the Property Tax Code and the Mobile Home Local Services Tax Act. Makes changes concerning the taxation of mobile homes and manufactured homes located outside of mobile home parks. Amends various Acts to define and include "manufactured homes" and to make changes to provisions concerning registration of manufactured homes and security interests in or liens on manufactured homes. Contains other provisions.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Failed) 2013-01-08 - Session Sine Die [SB1227 Detail]
Download: Illinois-2011-SB1227-Introduced.html
Bill Title: Creates the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act. Provides that manufactured homes are deemed to be real property. Sets forth certain conditions that must be met to convey or voluntarily encumber a manufactured home as real property. Contains provisions concerning affidavits of affixation and affidavits of severance. Contains provisions concerning security interests and liens. Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the tax imposed on new mobile homes or new manufactured homes located outside of mobile home parks shall be calculated against 40% of the selling price of the home and against 100% of the selling price of any other building materials. Amends the Property Tax Code and the Mobile Home Local Services Tax Act. Makes changes concerning the taxation of mobile homes and manufactured homes located outside of mobile home parks. Amends various Acts to define and include "manufactured homes" and to make changes to provisions concerning registration of manufactured homes and security interests in or liens on manufactured homes. Contains other provisions.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Failed) 2013-01-08 - Session Sine Die [SB1227 Detail]
Download: Illinois-2011-SB1227-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Article 5. CONVEYANCE AND ENCUMBRANCE OF MANUFACTURED HOMES AS | ||||||||||||||||||||||||
5 | REAL PROPERTY AND SEVERANCE ACT | ||||||||||||||||||||||||
6 | Section 5-1. Short title. This Act may be cited as the | ||||||||||||||||||||||||
7 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||||||||||||||||||||
8 | Property and Severance Act. All references in this Article to | ||||||||||||||||||||||||
9 | "this Act" mean this Article.
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10 | Section 5-2. Findings and purpose. | ||||||||||||||||||||||||
11 | (a) The General Assembly finds that there is a need to | ||||||||||||||||||||||||
12 | clarify the legal status of manufactured homes affixed or to be | ||||||||||||||||||||||||
13 | affixed to real property in the State. | ||||||||||||||||||||||||
14 | (b) The purpose of this Act is to establish a clear | ||||||||||||||||||||||||
15 | statutory procedure for converting to real property | ||||||||||||||||||||||||
16 | manufactured homes located outside of mobile home parks that | ||||||||||||||||||||||||
17 | are affixed to real property and for the severance of | ||||||||||||||||||||||||
18 | manufactured homes from real property.
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19 | Section 5-5. Manufactured home; permanently affixed to | ||||||||||||||||||||||||
20 | real property. For the purposes of this Act, "manufactured | ||||||||||||||||||||||||
21 | home" means a manufactured home as defined in subdivision (53) |
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1 | of Section 9-102 of the Uniform Commercial Code. | ||||||
2 | Notwithstanding the foregoing, for the purposes of subsection | ||||||
3 | (b)(2) of Section 1322 of the federal Bankruptcy Code (11 | ||||||
4 | U.S.C. § 1322(b)(2)), a manufactured home shall be deemed to be | ||||||
5 | real property. For the purposes of this Act, a manufactured | ||||||
6 | home is "permanently affixed" if it is anchored to real | ||||||
7 | property by attachment to a permanent foundation, constructed | ||||||
8 | in accordance with applicable state and local building codes | ||||||
9 | and manufacturer's specifications as provided in 24 C.F.R. Part | ||||||
10 | 3285, and connected to residential utilities (such as water, | ||||||
11 | gas, electricity, or sewer or septic service).
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12 | Section 5-10. Act not mandatory; record notice. The owner | ||||||
13 | of a manufactured home that is personal property or a fixture | ||||||
14 | may, but need not, cause that manufactured home to be deemed to | ||||||
15 | be real property by satisfying the requirements of Section 5-30 | ||||||
16 | of this Act and the requirements of Section 3-116.1 or 3-116.2 | ||||||
17 | of the Illinois Vehicle Code, as applicable. | ||||||
18 | To convey or voluntarily encumber a manufactured home as | ||||||
19 | real property, the following conditions must be met: | ||||||
20 | (1) the manufactured home must be permanently affixed | ||||||
21 | to real property; | ||||||
22 | (2) the ownership interests in the manufactured home | ||||||
23 | and the real property to which the manufactured home is | ||||||
24 | permanently affixed must be identical, or, if the | ||||||
25 | manufactured home is not located in a mobile home park as |
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1 | defined in Section 2.5 of the Mobile Home Park Act, and if | ||||||
2 | the owner of the manufactured home, if not the owner of the | ||||||
3 | real property, is in possession of the real property | ||||||
4 | pursuant to the terms of a lease in recordable form that | ||||||
5 | has a term that continues for at least 20 years after the | ||||||
6 | date of execution, then the consent of the lessor of the | ||||||
7 | real property must be given; | ||||||
8 | (3) the person (all, if more than one) having an | ||||||
9 | ownership interest in such manufactured home shall execute | ||||||
10 | and record with the recording officer of the county in | ||||||
11 | which the real property is located an affidavit of | ||||||
12 | affixation as provided in Section 5-15 of this Act and | ||||||
13 | satisfy the other applicable requirements of this Act; and | ||||||
14 | (4) upon receipt of a certified copy of the affidavit | ||||||
15 | of affixation pursuant to Section 5-25 of this Act, any | ||||||
16 | person designated therein for filing with the Secretary of | ||||||
17 | State shall file the certified copy of affidavit of | ||||||
18 | affixation with the Secretary of State; except that | ||||||
19 | (A) in a case described in subsection (a)(4)(A) of | ||||||
20 | Section 5-15 of this Act, a certified copy of the | ||||||
21 | affidavit of affixation and the original | ||||||
22 | Manufacturer's Statement of Origin, each as recorded | ||||||
23 | in the county in which the real property is located, | ||||||
24 | must be filed with the Secretary of State pursuant to | ||||||
25 | Section 3-116.1 of the Illinois Vehicle Code; and | ||||||
26 | (B) in a case described in subsection (a)(4)(B) of |
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1 | Section 5-15 of this Act, a certified copy of the | ||||||
2 | affidavit of affixation as recorded in the county in | ||||||
3 | which the real property is located, and the original | ||||||
4 | certificate of title, including, if applicable, a | ||||||
5 | certificate of title issued in accordance with | ||||||
6 | subsection (b) of Section 3-109 of the Illinois Vehicle | ||||||
7 | Code, must be filed with the Secretary of State | ||||||
8 | pursuant to Section 3-116.2 of the Illinois Vehicle | ||||||
9 | Code.
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10 | Section 5-15. Affidavit of affixation. | ||||||
11 | (a) An affidavit of affixation shall contain or be | ||||||
12 | accompanied by: | ||||||
13 | (1) the name of the manufacturer, the make, the model | ||||||
14 | name, the model year, the dimensions, and the vehicle | ||||||
15 | identification number or numbers of the manufactured home, | ||||||
16 | and whether the manufactured home is new or used; | ||||||
17 | (2)(A) a statement that the party executing the | ||||||
18 | affidavit is the owner of the real property described | ||||||
19 | therein or (B) if the party executing the affidavit is not | ||||||
20 | the owner of the real property, (1) a statement that the | ||||||
21 | manufactured home is not located in a mobile home park as | ||||||
22 | defined in Section 2.5 of the Mobile Home Park Act and that | ||||||
23 | the party executing the affidavit is in possession of the | ||||||
24 | real property pursuant to the terms of a lease in | ||||||
25 | recordable form that has a term that continues for at least |
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1 | 20 years after the date of execution of the affidavit and | ||||||
2 | (2) the consent of the lessor of the real property, | ||||||
3 | endorsed upon or attached to the affidavit and acknowledged | ||||||
4 | or proved in the manner as to entitle a conveyance to be | ||||||
5 | recorded; | ||||||
6 | (3) the street address and the legal description of the | ||||||
7 | real property to which the manufactured home is or shall be | ||||||
8 | permanently affixed; and | ||||||
9 | (4) as applicable: | ||||||
10 | (A) if the manufactured home is not covered by a | ||||||
11 | certificate of title, including, if applicable, a | ||||||
12 | certificate of title issued in accordance with | ||||||
13 | subsection (b) of Section 3-109 of the Illinois Vehicle | ||||||
14 | Code, a statement by the owner to that effect, and | ||||||
15 | (i) a statement by the owner of the | ||||||
16 | manufactured home that the manufactured home is | ||||||
17 | covered by a Manufacturer's Statement of Origin, | ||||||
18 | the date the Manufacturer's Statement of Origin | ||||||
19 | was issued, and the vehicle identification number | ||||||
20 | or numbers of the manufactured home; and | ||||||
21 | (ii) a statement that annexed to the affidavit | ||||||
22 | of affixation is the original Manufacturer's | ||||||
23 | Statement of Origin for the manufactured home, | ||||||
24 | duly endorsed to the owner of the manufactured | ||||||
25 | home, and that the owner of the manufactured home | ||||||
26 | shall surrender the Manufacturer's Statement of |
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1 | Origin; or | ||||||
2 | (B) if the manufactured home is covered by a | ||||||
3 | certificate of title, including, if applicable, a | ||||||
4 | certificate of title issued in accordance with | ||||||
5 | subsection (b) of Section 3-109 of the Illinois Vehicle | ||||||
6 | Code, a statement by the owner of the manufactured home | ||||||
7 | that the manufactured home is covered by a certificate | ||||||
8 | of title, the date the title was issued, the title | ||||||
9 | number, and that the owner of the manufactured home | ||||||
10 | shall surrender the title; | ||||||
11 | (5) a statement whether or not the manufactured home is | ||||||
12 | subject to one or more security interests or liens, and | ||||||
13 | (A) if the manufactured home is subject to one or | ||||||
14 | more security interests or liens, the name and address | ||||||
15 | of each party holding a security interest in or lien on | ||||||
16 | the manufactured home, including but not limited to, | ||||||
17 | each holder shown on any certificate of title issued by | ||||||
18 | the Secretary of State, if any, the original principal | ||||||
19 | amount secured by each security interest or lien; and a | ||||||
20 | statement that the security interest or lien shall be | ||||||
21 | released; or | ||||||
22 | (B) a statement that each security interest in or | ||||||
23 | lien on the manufactured home, if any, has been | ||||||
24 | released, together with due proof of each such release; | ||||||
25 | (6) a statement that the manufactured home is or shall | ||||||
26 | be permanently affixed to the real property; and |
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1 | (7) the name and address of a person designated for | ||||||
2 | filing the certified copy of the affidavit of affixation | ||||||
3 | with the Secretary of State, to whom the recording officer | ||||||
4 | shall return the certified copy of the affidavit of | ||||||
5 | affixation after it has been duly recorded in the real | ||||||
6 | property records, as provided in Section 5 of this Act. | ||||||
7 | (b) An affidavit of affixation shall be in the form set | ||||||
8 | forth in this Section, duly acknowledged or proved in like | ||||||
9 | manner as to entitle a conveyance to be recorded, and when so | ||||||
10 | acknowledged or proved and upon payment of the lawful fees | ||||||
11 | therefor, the recording officer shall immediately cause the | ||||||
12 | affidavit of affixation and any attachments thereto to be duly | ||||||
13 | recorded and indexed in the record of deeds.
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14 | Section 5-20. Disposition of liens. Neither the act of | ||||||
15 | permanently affixing a manufactured home to real property nor | ||||||
16 | the recording of the affidavit of affixation shall impair the | ||||||
17 | rights of any holder of a security interest in or lien on a | ||||||
18 | manufactured home perfected as provided in Section 3-202 of the | ||||||
19 | Illinois Vehicle Code, unless and until the due filing with and | ||||||
20 | acceptance by the Secretary of State of an application to | ||||||
21 | surrender the title as provided in Section 3-116.2 of the | ||||||
22 | Illinois Vehicle Code and release the security interest or lien | ||||||
23 | as provided in Section 3-205 of the Illinois Vehicle Code. Upon | ||||||
24 | the filing of such a release, the security interest or lien | ||||||
25 | perfected under Section 3-202 of the Illinois Vehicle Code is |
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1 | terminated. The recording of an affidavit of affixation does | ||||||
2 | not change the character of any security interest or lien noted | ||||||
3 | on a certificate of title, and no recording tax shall be | ||||||
4 | imposed at the time an affidavit of affixation is recorded upon | ||||||
5 | any security interest in or lien on a manufactured home | ||||||
6 | perfected under Section 3-202 of the Illinois Vehicle Code.
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7 | Section 5-25. Notice to Secretary of State. Upon payment of | ||||||
8 | the fees provided by law and recordation of the affidavit of | ||||||
9 | affixation, the recording officer shall endorse the affidavit | ||||||
10 | as "recorded in land records", setting forth thereon the | ||||||
11 | indexing information for the affidavit of affixation, and the | ||||||
12 | recording officer shall forthwith forward a certified copy of | ||||||
13 | the affidavit of affixation and all attachments thereto to the | ||||||
14 | person designated therein for filing with the Secretary of | ||||||
15 | State. Upon receipt of a certified copy of the affidavit of | ||||||
16 | affixation by the person designated therein for filing with the | ||||||
17 | Secretary of State, such person shall forthwith deliver for | ||||||
18 | filing to the Secretary a certified copy of the affidavit of | ||||||
19 | affixation and other documents as provided in item (4) of | ||||||
20 | Section 5-10 of this Act.
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21 | Section 5-30. Effect of recorded affidavit of affixation. A | ||||||
22 | manufactured home shall be deemed to be real property when all | ||||||
23 | of the following events have occurred: | ||||||
24 | (1) the manufactured home is permanently affixed to land as |
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1 | provided in Section 5-5 of this Act; | ||||||
2 | (2) an affidavit of affixation conforming to the | ||||||
3 | requirements of Section 5-15 of this Act has been recorded; | ||||||
4 | (3) a certified copy of the affidavit of affixation has | ||||||
5 | been delivered for filing to the Secretary of State as provided | ||||||
6 | in Section 5 of this Act; and | ||||||
7 | (4) the requirements of Section 3-116.1 or 3-116.2 of the | ||||||
8 | Illinois Vehicle Code, as applicable, have been satisfied.
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9 | Section 5-35. Conveyance and encumbrance as real property.
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10 | Upon the satisfaction of the requirements of Section 5-30 of | ||||||
11 | this Act and the requirements of Section 3-116.1 or 3-116.2 of | ||||||
12 | the Illinois Vehicle Code, as applicable, such manufactured | ||||||
13 | home shall be deemed to be real property; any mortgage, deed of | ||||||
14 | trust, lien, or security interest that can attach to land, | ||||||
15 | buildings erected thereon, or fixtures affixed thereto shall | ||||||
16 | attach as of the date of its recording in the same manner as if | ||||||
17 | the manufactured home were built from ordinary building | ||||||
18 | materials on site; title to such manufactured home shall be | ||||||
19 | transferred by deed or other form of conveyance that is | ||||||
20 | effective to transfer an interest in real property, together | ||||||
21 | with the land to which such structure has been affixed; and the | ||||||
22 | manufactured home shall be deemed to be real property and shall | ||||||
23 | be governed by the laws applicable to real property.
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24 | Section 5-40. Manufactured home that remains personal |
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1 | property or a fixture. Except as provided in Sections 5-15, | ||||||
2 | 5-25, 5-30, and 5-35 of this Act, an affidavit of affixation is | ||||||
3 | not necessary or effective to convey or encumber a manufactured | ||||||
4 | home or to change the character of the manufactured home to | ||||||
5 | real property. Every conveyance of land upon which is located a | ||||||
6 | manufactured home for which no affidavit of affixation has been | ||||||
7 | recorded or for which an affidavit of severance has been | ||||||
8 | recorded shall contain a recital that such conveyance does not | ||||||
9 | affect the title to said manufactured home and that the | ||||||
10 | transfer or encumbrance thereof can only be made pursuant to | ||||||
11 | the provisions of the Illinois Vehicle Code. Any agreement by | ||||||
12 | any party to the transaction whereby the requirements of this | ||||||
13 | subsection are waived shall be void as contrary to public | ||||||
14 | policy.
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15 | Section 5-45. Applicability. Nothing in this Act shall | ||||||
16 | impair any rights existing under law prior to the effective | ||||||
17 | date of this Act of anyone claiming an interest in the | ||||||
18 | manufactured home.
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19 | Section 5-50. Affidavit of severance. | ||||||
20 | (a) If and when a manufactured home for which an affidavit | ||||||
21 | of affixation has been recorded is detached or severed from the | ||||||
22 | real property to which it is affixed, the person (all, if more | ||||||
23 | than one) having an interest in the real property shall record | ||||||
24 | an affidavit of severance in the land records of the county |
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1 | where the affidavit of affixation with respect to the | ||||||
2 | manufactured home is recorded. The affidavit of severance shall | ||||||
3 | contain or be accompanied by: | ||||||
4 | (i) the name, residence, and mailing address of the | ||||||
5 | owner of the manufactured home; | ||||||
6 | (ii) a description of the manufactured home including | ||||||
7 | the name of the manufacturer, the make, the model name, the | ||||||
8 | model year, the dimensions, and the vehicle identification | ||||||
9 | number or numbers of the manufactured home and whether it | ||||||
10 | is new or used; | ||||||
11 | (iii) the book number, page number and date of | ||||||
12 | recordation of the affidavit of affixation; | ||||||
13 | (iv) a statement of either (A) any facts or information | ||||||
14 | known to the party executing the affidavit that could | ||||||
15 | reasonably affect the validity of the title of the | ||||||
16 | manufactured home or the existence or non-existence of a | ||||||
17 | security interest in or lien on it, or (B) that no such | ||||||
18 | facts or information are known to such party; and | ||||||
19 | (v) the name and address of the person designated for | ||||||
20 | filing the certified copy of the affidavit of severance | ||||||
21 | with the Secretary of State, to whom the recording officer | ||||||
22 | shall return the certified copy of the affidavit of | ||||||
23 | severance after it has been duly recorded in the real | ||||||
24 | property records, as provided in subsection (e) of this | ||||||
25 | Section. | ||||||
26 | (b) The affidavit of severance shall be in the form set |
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1 | forth in subsection (c) of this Section, duly acknowledged or | ||||||
2 | proved in like manner as to entitle a conveyance to be | ||||||
3 | recorded, and when so acknowledged or proved and upon payment | ||||||
4 | of the lawful fees therefor, such recording officer shall | ||||||
5 | immediately cause the affidavit and any attachments thereto to | ||||||
6 | be duly recorded and indexed in the record of deeds. | ||||||
7 | (c) Upon payment of the fees provided by law and | ||||||
8 | recordation of the affidavit of severance, the recording | ||||||
9 | officer shall endorse the affidavit as "recorded in land | ||||||
10 | records", setting forth thereon the indexing information for | ||||||
11 | the affidavit of severance, and the recording officer shall | ||||||
12 | forthwith forward a certified copy of the affidavit of | ||||||
13 | severance to the person designated therein for filing with the | ||||||
14 | Secretary of State. Upon receipt of a certified copy of the | ||||||
15 | affidavit of severance by the person designated therein for | ||||||
16 | filing with the Secretary of State, such person shall deliver | ||||||
17 | for filing to the Secretary of State such certified copy of the | ||||||
18 | affidavit of severance and the other documents provided in | ||||||
19 | subsection (a) of this Section, together with an application | ||||||
20 | for a certificate of title to the manufactured home, to be | ||||||
21 | issued in accordance with subsection (b) of Section 3-109.
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22 | Section 55. Documents in trust. | ||||||
23 | (a) Manufacturer's Statement of Origin. The holder of a | ||||||
24 | Manufacturer's Statement of Origin to a manufactured home may | ||||||
25 | deliver it to any person to facilitate conveying or encumbering |
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1 | the home. Any person receiving a Manufacturer's Statement of | ||||||
2 | Origin so delivered holds it in trust for the person delivering | ||||||
3 | it. | ||||||
4 | (b) Lien Release. The holder of a security interest in a | ||||||
5 | manufactured home may deliver lien release documents to any | ||||||
6 | person to facilitate conveying or encumbering the home. Any | ||||||
7 | person receiving any such documents so delivered holds the | ||||||
8 | documents in trust for the lienholder.
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9 | Article 10. AMENDATORY PROVISIONS
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10 | Section 10-5. The Use Tax Act is amended by adding Section | ||||||
11 | 3-3 as follows:
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12 | (35 ILCS 105/3-3 new) | ||||||
13 | Sec. 3-3. Mobile home sales. The tax imposed under this Act | ||||||
14 | on new mobile homes or new manufactured homes to be located | ||||||
15 | outside of a mobile home park shall be calculated against 40% | ||||||
16 | of the selling price of the home and against 100% of the | ||||||
17 | selling price of any other building materials used in the | ||||||
18 | installation and set up of the home. This provision does not | ||||||
19 | change the current calculation of the use tax for new mobile | ||||||
20 | homes or manufactured homes to be located inside of a mobile | ||||||
21 | home park. There shall be no use tax on the resale of mobile | ||||||
22 | homes or manufactured homes located outside or inside mobile | ||||||
23 | home parks.
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1 | Section 10-10. The Retailers' Occupation Tax Act is amended | ||||||
2 | by adding Section 5m as follows:
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3 | (35 ILCS 120/5m new) | ||||||
4 | Sec. 5m. Mobile home sales. The tax imposed under this Act | ||||||
5 | on new mobile homes or new manufactured homes to be located | ||||||
6 | outside of a mobile home park shall be calculated against 40% | ||||||
7 | of the selling price of the home and against 100% of the | ||||||
8 | selling price of any other building materials used in the | ||||||
9 | installation and set up of the home. This provision does not | ||||||
10 | change the current calculation of the retailers' occupation tax | ||||||
11 | for new mobile homes or manufactured homes to be located inside | ||||||
12 | of a mobile home park. There shall be no retailers' occupation | ||||||
13 | tax on the resale of mobile homes or manufactured homes located | ||||||
14 | outside or inside mobile home parks.
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15 | Section 10-15. The Property Tax Code is amended by changing | ||||||
16 | Section 1-130 as follows:
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17 | (35 ILCS 200/1-130)
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18 | Sec. 1-130. Property; real property; real estate; land; | ||||||
19 | tract; lot. | ||||||
20 | (a) The land
itself, with all things contained therein, and | ||||||
21 | also all buildings, structures
and improvements, and other | ||||||
22 | permanent fixtures thereon, including all oil, gas,
coal, and |
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1 | other minerals in the land and the right to remove oil, gas and | ||||||
2 | other
minerals, excluding coal, from the land, and all rights | ||||||
3 | and privileges
belonging or pertaining thereto, except where | ||||||
4 | otherwise specified by this Code.
Not included therein are | ||||||
5 | low-income housing tax credits authorized by
Section
42 of the | ||||||
6 | Internal Revenue Code, 26 U.S.C. 42.
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7 | (b) Notwithstanding any other provision of law, mobile | ||||||
8 | homes and manufactured homes that (i) are located outside of | ||||||
9 | mobile home parks and (ii) are taxed under the Mobile Home | ||||||
10 | Local Services Tax Act on the effective date of this amendatory | ||||||
11 | Act of the 96th General Assembly shall continue to be taxed | ||||||
12 | under the Mobile Home Local Services Tax Act and shall not be | ||||||
13 | classified, assessed , and taxed as real property until the home | ||||||
14 | is sold or transferred or until the home is relocated to a | ||||||
15 | different parcel of land outside of a mobile home park. If a | ||||||
16 | mobile home or manufactured home described in this subsection | ||||||
17 | (b) is sold, transferred, or relocated to a different parcel of | ||||||
18 | land outside of a mobile home park, then the home shall be | ||||||
19 | classified, assessed , and taxed as real property whether or not | ||||||
20 | that mobile home or manufactured home is permanently affixed to | ||||||
21 | real property as defined in Section 5-5 of the Conveyance and | ||||||
22 | Encumbrance of Manufactured Homes as Real Property and | ||||||
23 | Severance Act or installed on a permanent foundation and | ||||||
24 | whether or not such mobile home or manufactured home is real | ||||||
25 | property as defined in Section 5-35 of the Conveyance and | ||||||
26 | Encumbrance of Manufactured Homes as Real Property and |
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1 | Severance Act . Mobile homes and manufactured homes that are | ||||||
2 | located outside of mobile home parks and classified, assessed , | ||||||
3 | and taxed as real property on the effective date of this | ||||||
4 | amendatory Act of the 96th General Assembly shall continue to | ||||||
5 | be classified, assessed , and taxed as real property whether or | ||||||
6 | not the mobile home or manufactured home is permanently affixed | ||||||
7 | to real property as defined in the Conveyance and Encumbrance | ||||||
8 | of Manufactured Homes as Real Property and Severance Act or | ||||||
9 | installed on permanent foundations and whether or not the | ||||||
10 | mobile home or manufactured home is real property as defined in | ||||||
11 | the Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
12 | Property and Severance Act . If a mobile or manufactured home | ||||||
13 | that is located outside of a mobile home park is relocated to a | ||||||
14 | mobile home park, it must be considered chattel and must be | ||||||
15 | taxed according to the Mobile Home Local Services Tax Act. The | ||||||
16 | owner of a mobile home or manufactured home that is located | ||||||
17 | outside of a mobile home park may file a request with the | ||||||
18 | County Assessor's office county that the home be classified, | ||||||
19 | assessed, and taxed as real property. | ||||||
20 | (c) Mobile homes and manufactured homes that are located in | ||||||
21 | mobile home parks must be considered chattel and must be taxed | ||||||
22 | according to the Mobile Home Local Services Tax Act. | ||||||
23 | (d) If the provisions of this Section conflict with the | ||||||
24 | Illinois Manufactured Housing and Mobile Home Safety Act, the | ||||||
25 | Mobile Home Local Services Tax Act, the Mobile Home Park Act, | ||||||
26 | or any other provision of law with respect to the taxation of |
| |||||||
| |||||||
1 | mobile homes or manufactured homes located outside of mobile | ||||||
2 | home parks, the provisions of this Section shall control. | ||||||
3 | (Source: P.A. 96-1477, eff. 1-1-11.)
| ||||||
4 | Section 10-20. The Mobile Home Local Services Tax Act is | ||||||
5 | amended by changing Sections 1 and 4 as follows:
| ||||||
6 | (35 ILCS 515/1) (from Ch. 120, par. 1201)
| ||||||
7 | Sec. 1.
(a) As Except as provided in subsections (b) and | ||||||
8 | (c), as used in this Act, "manufactured home" means a | ||||||
9 | factory-assembled, completely integrated structure designed | ||||||
10 | for permanent habitation, with a permanent chassis, and so | ||||||
11 | constructed as to permit its transport, on wheels temporarily | ||||||
12 | or permanently attached to its frame, and is a movable or | ||||||
13 | portable unit that is (i) 8 body feet or more in width, (ii) 40 | ||||||
14 | body feet or more in length, and (iii) 320 or more square feet, | ||||||
15 | constructed to be towed on its own chassis (comprised of frame | ||||||
16 | and wheels) from the place of its construction to the location, | ||||||
17 | or subsequent locations, at which it is installed and set up | ||||||
18 | according to the manufacturer's instructions and connected to | ||||||
19 | utilities for year-round occupancy for use as a permanent | ||||||
20 | habitation, and designed and situated so as to permit its | ||||||
21 | occupancy as a dwelling place for one or more persons , and | ||||||
22 | specifically includes a "manufactured home" as defined in | ||||||
23 | subdivision 53 of section 9-102 of the Uniform Commercial Code . | ||||||
24 | The term shall include units containing parts that may be |
| |||||||
| |||||||
1 | folded, collapsed, or telescoped when being towed and that may | ||||||
2 | be expected to provide additional cubic capacity, and that are | ||||||
3 | designed to be joined into one integral unit capable of being | ||||||
4 | separated again into the components for repeated towing. The | ||||||
5 | term excludes campers and recreational vehicles. Mobile homes | ||||||
6 | and manufactured homes in mobile home parks must be assessed | ||||||
7 | and taxed as chattel. Mobile homes and manufactured homes | ||||||
8 | outside of mobile home parks must be assessed and taxed as real | ||||||
9 | property whether or not such mobile homes and manufactured | ||||||
10 | homes are permanently affixed to real property as defined in | ||||||
11 | Section 5-5 of the Conveyance and Encumbrance of Manufactured | ||||||
12 | Homes as Real Property and Severance Act or installed on | ||||||
13 | permanent foundations, and whether or not such mobile homes and | ||||||
14 | manufactured homes are real property as defined in Section 5-35 | ||||||
15 | of the Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
16 | Property and Severance Act . The words "mobile home" and | ||||||
17 | "manufactured home" are synonymous for the purposes of this | ||||||
18 | Act. Any such structure located outside of a mobile home park | ||||||
19 | shall not be
assessed and taxed construed as chattel, but must | ||||||
20 | be assessed and taxed as real property
as defined by Section | ||||||
21 | 1-130 of the Property Tax Code. All mobile homes and | ||||||
22 | manufactured homes located inside mobile home parks must be | ||||||
23 | considered as chattel and taxed according to this Act. Mobile
| ||||||
24 | homes and manufactured homes located on a dealer's lot for | ||||||
25 | resale purposes or as a temporary office shall not
be subject | ||||||
26 | to this tax.
|
| |||||||
| |||||||
1 | (b) Mobile homes and manufactured homes that (i) are | ||||||
2 | located outside of mobile home parks and (ii) are taxed under | ||||||
3 | this Act on the effective date of this amendatory Act of the | ||||||
4 | 96th General Assembly must continue to be taxed under this Act | ||||||
5 | and shall not be classified, assessed , and taxed as real | ||||||
6 | property until the home is sold, transferred, or relocated to a | ||||||
7 | different parcel of land outside of a mobile home park. If a | ||||||
8 | mobile home or manufactured home described in this subsection | ||||||
9 | (b) is sold, transferred, or relocated to a different parcel of | ||||||
10 | land outside of a mobile home park, then the home must be | ||||||
11 | classified, assessed , and taxed as real property whether or not | ||||||
12 | the mobile home or manufactured home is permanently affixed to | ||||||
13 | real property as defined in Section 5-5 of the Conveyance and | ||||||
14 | Encumbrance of Manufactured Homes as Real Property and | ||||||
15 | Severance Act or installed on a permanent foundation and | ||||||
16 | whether or not the mobile home or manufactured home is real | ||||||
17 | property as defined in Section 5-35 of the Conveyance and | ||||||
18 | Encumbrance of Manufactured Homes as Real Property and | ||||||
19 | Severance Act . Mobile homes and manufactured homes that are | ||||||
20 | located outside of mobile home parks classified, assessed , and | ||||||
21 | taxed as real property on the effective date of this amendatory | ||||||
22 | Act of the 96th General Assembly must continue to be | ||||||
23 | classified, assessed , and taxed as real property whether or not | ||||||
24 | the mobile homes and manufactured homes are permanently affixed | ||||||
25 | to real property as defined in Section 5-5 of the Conveyance | ||||||
26 | and Encumbrance of Manufactured Homes as Real Property and |
| |||||||
| |||||||
1 | Severance Act or installed on permanent foundations and whether | ||||||
2 | or not the mobile homes and manufactured homes are real | ||||||
3 | property as defined in Section 5-35 of the Conveyance and | ||||||
4 | Encumbrance of Manufactured Homes as Real Property and | ||||||
5 | Severance Act . If a mobile or manufactured home that is located | ||||||
6 | outside of a mobile home park is relocated to a mobile home | ||||||
7 | park, the home must be considered chattel and must be taxed | ||||||
8 | according to the Mobile Home Local Services Tax Act. The owner | ||||||
9 | of a mobile home or manufactured home that is located outside | ||||||
10 | of a mobile home park may file a request with the county that | ||||||
11 | the home be classified, assessed , and taxed as real property. | ||||||
12 | (c) Mobile homes and manufactured homes that are located in | ||||||
13 | mobile home parks must be considered chattel and must be taxed | ||||||
14 | according to this Act. | ||||||
15 | (Source: P.A. 96-1477, eff. 1-1-11.)
| ||||||
16 | (35 ILCS 515/4) (from Ch. 120, par. 1204)
| ||||||
17 | Sec. 4.
The owner of each inhabited mobile home or | ||||||
18 | manufactured home located in this State, but not located inside | ||||||
19 | of a mobile home park, on the
effective date of this amendatory | ||||||
20 | Act of the 96th General Assembly shall, within 30 days after | ||||||
21 | such date, record with the Office of the Recorder in the county | ||||||
22 | where the mobile home or manufactured home is located file with | ||||||
23 | the
township assessor, if any, or with the Supervisor of | ||||||
24 | Assessments or county
assessor if there is no township | ||||||
25 | assessor, or with the county assessor in those
counties in |
| |||||||
| |||||||
1 | which a county assessor is elected pursuant to Section 3-45 of
| ||||||
2 | the Property Tax Code, a mobile home
registration form | ||||||
3 | containing the information hereinafter specified , subject to | ||||||
4 | the county's recording fees and record a signed copy of the | ||||||
5 | title or certificate of origin in the county where the home is | ||||||
6 | located or surrender the signed title or certificate of origin | ||||||
7 | to be held by the county until such time as the home is to be | ||||||
8 | removed from the county . Mobile home
park operators shall | ||||||
9 | forward a copy of the mobile home registration form
provided in | ||||||
10 | Section 12 of "An Act to provide for, license and regulate | ||||||
11 | mobile
homes and mobile home parks and to repeal an Act named | ||||||
12 | herein", approved
September 8, 1971, as amended, to the | ||||||
13 | township assessor, if any, or to
Supervisor of Assessments or | ||||||
14 | county assessor if there is no township assessor,
or to the | ||||||
15 | county assessor in those counties in which a county assessor is
| ||||||
16 | elected pursuant to Section 3-45 of the Property Tax Code, | ||||||
17 | within 5 days of the entry of a mobile home into such
park. The | ||||||
18 | owner of a mobile home or manufactured home not located in a | ||||||
19 | mobile home park , other than a mobile home or manufactured home | ||||||
20 | with respect to which the requirements of Section 5-30 of the | ||||||
21 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
22 | Property and Severance Act and the requirements of Section | ||||||
23 | 3-116.1 or Section 3-116.2 of the Illinois Vehicle Code, as | ||||||
24 | applicable, have been satisfied unless with respect to the same | ||||||
25 | manufactured home there has been recorded an affidavit of | ||||||
26 | severance pursuant to Section 5-50 of the Conveyance and |
| |||||||
| |||||||
1 | Encumbrance of Manufactured Homes as Real Property and | ||||||
2 | Severance Act, shall,
within 30 days after initial placement of | ||||||
3 | such mobile home or manufactured home in any county and
within | ||||||
4 | 30 days after movement of such mobile home or manufactured home | ||||||
5 | to a new location, record with the Office of the Recorder in | ||||||
6 | the county where the mobile home or manufactured home is | ||||||
7 | located file with
the county assessor, Supervisor of | ||||||
8 | Assessments or township assessor, as the
case may be, a mobile | ||||||
9 | home registration showing the name and address of the
owner and | ||||||
10 | every occupant of the mobile home or manufactured home , the | ||||||
11 | location of the mobile home or manufactured home ,
the year of | ||||||
12 | manufacture, and the square feet of floor space contained in | ||||||
13 | such
mobile home or manufactured home together with the date | ||||||
14 | that the mobile home or manufactured home became inhabited, was
| ||||||
15 | initially installed and set up in the county, or was moved to a | ||||||
16 | new location. Such
registration shall also include the license | ||||||
17 | number of such mobile home or manufactured home and of
the | ||||||
18 | towing vehicle, if there be any, and the State issuing such | ||||||
19 | licenses , subject to the county's recording fees . In the case | ||||||
20 | of a mobile home or manufactured home not located in a mobile | ||||||
21 | home park, the
registration shall be signed by the owner or | ||||||
22 | occupant of the mobile home or manufactured home. and the title | ||||||
23 | or certificate of origin shall be signed and recorded in the | ||||||
24 | county where the home is located or surrendered to the county | ||||||
25 | and held until such time the home is removed from the county. | ||||||
26 | Titles or certificates of origin held by a mortgage company on |
| |||||||
| |||||||
1 | the home shall be signed and recorded in the county where | ||||||
2 | located or surrendered to the county once the mortgage is | ||||||
3 | released. Failure to record the registration or surrender the | ||||||
4 | title or certificate of origin shall not prevent the home from | ||||||
5 | being assessed and taxed as real property. It is
the duty of | ||||||
6 | each township assessor, if any, and each Supervisor of | ||||||
7 | Assessments
or county assessor if there is no township | ||||||
8 | assessor, or the county assessor in
those counties in which a | ||||||
9 | county assessor is elected pursuant to Section 3-45
of the | ||||||
10 | Property Tax Code, to require timely
filing of a properly | ||||||
11 | completed registration for each mobile home or manufactured | ||||||
12 | home located in a mobile home park in his
or her township or | ||||||
13 | county, as the case may be. Any person furnishing | ||||||
14 | misinformation
for purposes of registration or failing to file | ||||||
15 | a required registration is
guilty of a Class A misdemeanor. | ||||||
16 | This Section applies only when the tax
permitted by Section 3 | ||||||
17 | has been imposed on mobile homes and manufactured homes located | ||||||
18 | inside mobile home parks.
| ||||||
19 | (Source: P.A. 96-1477, eff. 1-1-11.)
| ||||||
20 | Section 10-25. The Illinois Banking Act is amended by | ||||||
21 | changing Sections 3, 5a, 5d, and 6.1 as follows:
| ||||||
22 | (205 ILCS 5/3) (from Ch. 17, par. 309)
| ||||||
23 | Sec. 3. Formation and primary powers. It shall be lawful to | ||||||
24 | form banks,
as herein provided, for the purpose of discount and |
| |||||||
| |||||||
1 | deposit, buying and
selling exchange and doing a general | ||||||
2 | banking business, excepting the
issuing of bills to circulate | ||||||
3 | as money; and such banks shall have the power
to loan money on | ||||||
4 | personal and real estate security, and to accept and execute
| ||||||
5 | trusts upon obtaining a certificate of authority pursuant to | ||||||
6 | the "Corporate
Fiduciary Act", and shall be subject to all of | ||||||
7 | the provisions of this Act. For purposes of this Section, "real | ||||||
8 | estate" includes a manufactured home as defined in subdivision | ||||||
9 | (53) of Section 9-102 of the Uniform Commercial Code that is | ||||||
10 | real property as defined in Section 5-35 of the Conveyance and | ||||||
11 | Encumbrance of Manufactured Homes as Real Property and | ||||||
12 | Severance Act.
| ||||||
13 | (Source: P.A. 85-1402.)
| ||||||
14 | (205 ILCS 5/5a) (from Ch. 17, par. 312)
| ||||||
15 | Sec. 5a. Reverse mortgage loans. Notwithstanding any other | ||||||
16 | provision of
this Act, a bank may engage in making "reverse | ||||||
17 | mortgage" loans.
| ||||||
18 | For purposes of this Section, a "reverse mortgage" loan | ||||||
19 | shall be a loan
extended on the basis of existing equity in | ||||||
20 | homestead property. A bank,
in making a "reverse mortgage" | ||||||
21 | loan, may add deferred interest to principal
or otherwise | ||||||
22 | provide for the charging of interest or premium on the deferred
| ||||||
23 | interest.
| ||||||
24 | The loans shall be repaid upon sale of the property or upon | ||||||
25 | the death
of the owner or, if the property is in joint tenancy, |
| |||||||
| |||||||
1 | upon the death of
the last surviving joint tenant who had an | ||||||
2 | interest in the property
at the time the loan was initiated.
| ||||||
3 | "Homestead" property, for purposes of this Section, means | ||||||
4 | the domicile
and contiguous real estate owned and occupied by | ||||||
5 | the mortgagor. For purposes of this Section, "homestead" | ||||||
6 | includes a manufactured home as defined in subdivision (53) of | ||||||
7 | Section 9-102 of the Uniform Commercial Code, used as the | ||||||
8 | domicile, that is real property, as defined in Section 5-35 of | ||||||
9 | the Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
10 | Property and Severance Act, and is owned and occupied by the | ||||||
11 | mortgagor.
| ||||||
12 | The Commissioner of Banks and Real Estate shall
prescribe | ||||||
13 | rules governing this Section and
Section 1-6a of the Illinois | ||||||
14 | Savings and Loan Act of 1985.
| ||||||
15 | (Source: P.A. 88-643, eff. 1-1-95; 89-508, eff. 7-3-96.)
| ||||||
16 | (205 ILCS 5/5d) (from Ch. 17, par. 312.3)
| ||||||
17 | Sec. 5d.
Notwithstanding any other provision of this Act, a | ||||||
18 | bank may
engage in making revolving credit loans secured by | ||||||
19 | mortgages or deeds of
trust on real property or by security | ||||||
20 | assignments of beneficial interests
in land trusts.
| ||||||
21 | For purposes of this Section, "revolving credit", has the | ||||||
22 | meaning defined
in Section 4.1 of "An Act in relation to the | ||||||
23 | rate of interest and other
charges in connection with sales on | ||||||
24 | credit and the lending of money", approved
May 24, 1879, as | ||||||
25 | amended.
|
| |||||||
| |||||||
1 | Any mortgage or deed of trust given to secure a revolving | ||||||
2 | credit loan may,
and when so expressed therein shall, secure | ||||||
3 | not only the existing indebtedness,
but also such future | ||||||
4 | advances, whether such advances are obligatory or to
be made at | ||||||
5 | the option of the lender, or otherwise, as are made within | ||||||
6 | twenty
years from the date thereof, to the same extent as if | ||||||
7 | such future advances
were made on the date of the execution of | ||||||
8 | such mortgage or deed of trust,
although there may be no | ||||||
9 | advance made at the time of execution of such mortgage
or other | ||||||
10 | instrument, and although there may be no indebtedness | ||||||
11 | outstanding
at the time any advance is made. The lien of such | ||||||
12 | mortgage or deed of
trust, as to third persons without actual | ||||||
13 | notice thereof, shall be valid as
to all such indebtedness and | ||||||
14 | future advances from the time said mortgage or
deed of trust is | ||||||
15 | filed for record in the office of the Recorder of Deeds or
the | ||||||
16 | Registrar of Titles of the county where the real property | ||||||
17 | described
therein is located. The total amount of indebtedness | ||||||
18 | that may be so
secured may increase or decrease from time to | ||||||
19 | time, but the total unpaid
balance so secured at any one time | ||||||
20 | shall not exceed a maximum principal
amount which must be | ||||||
21 | specified in such mortgage or deed of trust, plus
interest | ||||||
22 | thereon, and any disbursements made for the payment of taxes,
| ||||||
23 | special assessments, or insurance on said real property, with | ||||||
24 | interest on
such disbursements.
| ||||||
25 | Any such mortgage or deed of trust shall be valid and have | ||||||
26 | priority over
all subsequent liens and encumbrances, including |
| |||||||
| |||||||
1 | statutory liens, except
taxes and assessments levied on said | ||||||
2 | real property.
| ||||||
3 | For purposes of this Section, "real property" includes a | ||||||
4 | manufactured home as defined in subdivision (53) of Section | ||||||
5 | 9-102 of the Uniform Commercial Code, that is real property as | ||||||
6 | defined in Section 5-35 of the Conveyance and Encumbrance of | ||||||
7 | Manufactured Homes as Real Property and Severance Act. | ||||||
8 | (Source: P.A. 83-1539; 83-1380.)
| ||||||
9 | (205 ILCS 5/6.1) (from Ch. 17, par. 313.1)
| ||||||
10 | Sec. 6.1. Non-recourse reverse mortgage loans.
| ||||||
11 | (a) It is the intent of this amendatory Act of 1991 that | ||||||
12 | homeowners at
least 62 years of age be permitted to meet their | ||||||
13 | financial needs by
accessing the equity in their homes through | ||||||
14 | a reverse mortgage. The
General Assembly recognizes that many | ||||||
15 | restrictions and requirements that
exist to govern traditional | ||||||
16 | mortgage transactions are inapplicable in the
context of | ||||||
17 | reverse mortgages. In order to foster reverse mortgage
| ||||||
18 | transactions and better serve the citizens of this State, this | ||||||
19 | Section
authorizes the making of reverse mortgages, and | ||||||
20 | expressly relieves reverse
mortgage lenders and borrowers from | ||||||
21 | compliance with inappropriate requirements.
| ||||||
22 | As used in this Section, "borrower" means any homeowner who | ||||||
23 | is, or whose
spouse is, at least 62 years of age.
| ||||||
24 | For purposes of this Section, "real property" includes a | ||||||
25 | manufactured home as defined in subdivision (53) of Section |
| |||||||
| |||||||
1 | 9-102 of the Uniform Commercial Code which is real property as | ||||||
2 | defined in Section 5-35 of the Conveyance and Encumbrance of | ||||||
3 | Manufactured Homes as Real Property and Severance Act. | ||||||
4 | As used in this Section, "reverse mortgage" means a | ||||||
5 | non-recourse loan,
secured by real property, that complies with | ||||||
6 | all of the following:
| ||||||
7 | (1) Provides cash advances to a borrower based on the | ||||||
8 | equity in a
borrower's owner-occupied principal residence, | ||||||
9 | provided that it is a
residence designed to be occupied by | ||||||
10 | not more than 4 families.
| ||||||
11 | (2) Requires no payment of principal or interest until | ||||||
12 | the entire loan
becomes due and payable.
| ||||||
13 | (b) Reverse mortgage loans shall be subject only to all of | ||||||
14 | the following
provisions:
| ||||||
15 | (1) Payment, in whole or in part, shall be permitted | ||||||
16 | without penalty
at any time during the term of the | ||||||
17 | mortgage.
| ||||||
18 | (2) A reverse mortgage may provide for an interest rate | ||||||
19 | that is fixed
or adjustable and may provide for interest | ||||||
20 | that is contingent on
appreciation in the value of the | ||||||
21 | property.
| ||||||
22 | (3) If a reverse mortgage provides for periodic | ||||||
23 | advances to a
borrower, the advances may not be reduced in | ||||||
24 | amount or number based on any
adjustment in the interest | ||||||
25 | rate.
| ||||||
26 | (4) A reverse mortgage may be subject to any additional |
| |||||||
| |||||||
1 | terms and
conditions imposed by a lender that are required | ||||||
2 | under the provisions of
the federal Housing and Community | ||||||
3 | Development Act of 1987 to enable the
lender to obtain | ||||||
4 | federal government insurance on the mortgage if the loans
| ||||||
5 | are to be insured under that Act.
| ||||||
6 | (c) The repayment obligation under a reverse mortgage is | ||||||
7 | subject to all
of the following:
| ||||||
8 | (1) Temporary absences from the home not exceeding 60 | ||||||
9 | consecutive days
shall not cause the mortgage to become due | ||||||
10 | and payable.
| ||||||
11 | (2) Temporary absences from the home exceeding 60 days, | ||||||
12 | but not
exceeding one year shall not cause the mortgage to | ||||||
13 | become due and payable,
provided that the borrower has | ||||||
14 | taken action that secures the home in a
manner satisfactory | ||||||
15 | to the lender.
| ||||||
16 | (3) The lender must disclose any interest or other fees | ||||||
17 | to be charged
during the period that commences on the date | ||||||
18 | the mortgage becomes due and
payable and ends when | ||||||
19 | repayment in full is made in accordance with
applicable | ||||||
20 | State and federal laws, rules, and regulations.
| ||||||
21 | (d) A reverse mortgage shall become due and payable upon | ||||||
22 | the occurrence
of any of the following events:
| ||||||
23 | (1) The real property securing the loan is sold.
| ||||||
24 | (2) All borrowers cease to occupy the home as a | ||||||
25 | principal residence.
| ||||||
26 | (3) A fixed maturity date agreed to by the lender and |
| |||||||
| |||||||
1 | the borrower
is reached.
| ||||||
2 | (4) An event that is specified in the loan documents | ||||||
3 | and that
jeopardizes the lender's security occurs.
| ||||||
4 | (e) No reverse mortgage commitment may be made by a lender | ||||||
5 | unless the
loan applicant attests, in writing, that the | ||||||
6 | applicant has received from
the lender, at the time of initial | ||||||
7 | inquiry, a statement prepared by the
Department on Aging | ||||||
8 | regarding the advisability and availability of
independent | ||||||
9 | information and counseling services on reverse mortgages.
| ||||||
10 | (Source: P.A. 87-488.)
| ||||||
11 | Section 10-30. The Illinois Savings and Loan Act of 1985 is | ||||||
12 | amended by changing Sections 1-10.30 and 5-2 as follows:
| ||||||
13 | (205 ILCS 105/1-10.30) (from Ch. 17, par. 3301-10.30)
| ||||||
14 | Sec. 1-10.30. "Real property": the interests, benefits, | ||||||
15 | and rights inherent
in the ownership of the physical real | ||||||
16 | estate. It is the rights with which
the ownership of real | ||||||
17 | estate is endowed. "Real property" includes a manufactured home | ||||||
18 | as defined in subdivision (53) of Section 9-102 of the Uniform | ||||||
19 | Commercial Code that is real property as defined in Section | ||||||
20 | 5-35 of the Conveyance and Encumbrance of Manufactured Homes as | ||||||
21 | Real Property and Severance Act. For purposes of this Act, the
| ||||||
22 | term "Real Estate" is synonymous with "Real Property".
| ||||||
23 | (Source: P.A. 84-543.)
|
| |||||||
| |||||||
1 | (205 ILCS 105/5-2) (from Ch. 17, par. 3305-2)
| ||||||
2 | Sec. 5-2. Investment in loans. An association may
loan | ||||||
3 | funds to members as follows:
| ||||||
4 | (a) On the security of withdrawable capital accounts, but | ||||||
5 | no such
loan shall exceed the withdrawal value of the pledged | ||||||
6 | account;
| ||||||
7 | (b) On the security of real estate:
| ||||||
8 | (1) Of a value, determined in accordance with Section 5-12 | ||||||
9 | of this
Act, sufficient to provide good and ample security for | ||||||
10 | the loan;
| ||||||
11 | (2) With a fee simple title or a leasehold title of not | ||||||
12 | less duration
than 10 years beyond the maturity of the loan;
| ||||||
13 | (3) With the title established by such evidence of title as | ||||||
14 | is
consistent with sound lending practices in the locality;
| ||||||
15 | (4) With the security interest in such real estate | ||||||
16 | evidenced by an
appropriate written instrument and the loan | ||||||
17 | evidenced by a note, bond or
similar written instrument. A loan | ||||||
18 | on the security of the whole of the
beneficial interest in a | ||||||
19 | land trust satisfies the requirements of this
paragraph if the | ||||||
20 | title to the land is held by a corporate trustee and if
the | ||||||
21 | real estate held in the land trust meets the other requirements | ||||||
22 | of
this subsection; and
| ||||||
23 | (5) With a mortgage loan not to exceed 40 years;
| ||||||
24 | (c) For the purpose of repair, improvement, | ||||||
25 | rehabilitation,
furnishing or equipment of real estate or any | ||||||
26 | other purpose;
|
| |||||||
| |||||||
1 | (d) For the purpose of financing or refinancing an existing
| ||||||
2 | ownership interest in certificates of stock, certificates of | ||||||
3 | beneficial
interest or other evidence of an ownership interest | ||||||
4 | in, and a
proprietary lease from, a corporation, trust or | ||||||
5 | partnership formed for
the purpose of the cooperative ownership | ||||||
6 | of real estate, secured by the
assignment or transfer of such | ||||||
7 | certificates or other evidence of
ownership of the borrower;
| ||||||
8 | (e) Through the purchase of loans which at the time of | ||||||
9 | purchase the
association could make in accordance with this | ||||||
10 | Section and the by-laws;
| ||||||
11 | (f) Through the purchase of installment contracts for the | ||||||
12 | sale of
real estate, and title thereto which is subject to such | ||||||
13 | contracts, but
in each instance only if the association at the | ||||||
14 | time of purchase could
make a mortgage loan of the same amount | ||||||
15 | and for the same length of time
on the security of such real | ||||||
16 | estate;
| ||||||
17 | (g) Through loans guaranteed or insured, wholly or in part | ||||||
18 | by the
United States or any of its instrumentalities, and | ||||||
19 | without regard to the
limits in amount and terms otherwise | ||||||
20 | imposed by this Article;
| ||||||
21 | (h) Through secured or unsecured loans for business, | ||||||
22 | corporate,
personal, family, or household purposes, or for | ||||||
23 | secured or unsecured loans
for agricultural or commercial | ||||||
24 | purposes to the same extent that such
agricultural or | ||||||
25 | commercial loans are authorized by federal law for any
savings | ||||||
26 | and loan association organized under federal law and authorized |
| |||||||
| |||||||
1 | to
do business in this State, except that loans to service | ||||||
2 | corporations
shall not be subject to the limitations of this | ||||||
3 | paragraph;
| ||||||
4 | (i) For the purpose of manufactured mobile home financing | ||||||
5 | subject, however, to
the regulation of the Commissioner; as | ||||||
6 | used in this Section, "manufactured home" means a manufactured | ||||||
7 | home as defined in subdivision (53) of Section 9-102 of the | ||||||
8 | Uniform Commercial Code;
| ||||||
9 | (j) Through loans to its members secured by the cash | ||||||
10 | surrender value of
any life insurance policy or any collateral | ||||||
11 | which would be a legal
investment if made by such association | ||||||
12 | pursuant to the terms of this Act; and
| ||||||
13 | (k) Any provision of this Act to the contrary | ||||||
14 | notwithstanding, any
association may make any loan to its | ||||||
15 | members or investment which such
association could make if it | ||||||
16 | were incorporated and operating as an
association organized | ||||||
17 | under the laws of the United States.
| ||||||
18 | (Source: P.A. 86-137.)
| ||||||
19 | Section 10-35. The Savings Bank Act is amended by changing | ||||||
20 | Sections 6002 and 6008 as follows:
| ||||||
21 | (205 ILCS 205/6002) (from Ch. 17, par. 7306-2)
| ||||||
22 | Sec. 6002. Investment in loans. | ||||||
23 | (a) Subject to the regulations of the
Commissioner, a | ||||||
24 | savings bank may loan funds as follows:
|
| |||||||
| |||||||
1 | (1) On the security of deposit accounts, but no such
loan | ||||||
2 | shall exceed the withdrawal value of the pledged account.
| ||||||
3 | (2) On the security of real estate:
| ||||||
4 | (A) of a value, determined in accordance with this Act,
| ||||||
5 | sufficient to provide good and ample security for the loan;
| ||||||
6 | (B) with a fee simple title or a leasehold title;
| ||||||
7 | (C) with the title established by evidence of title
as | ||||||
8 | is consistent with sound lending practices in the locality;
| ||||||
9 | (D) with the security interest in the real estate
| ||||||
10 | evidenced by an appropriate written instrument and the loan
| ||||||
11 | evidenced by a note, bond, or similar written instrument; a | ||||||
12 | loan
on the security of the whole of the beneficial | ||||||
13 | interest in a land
trust satisfies the requirements of this | ||||||
14 | paragraph if the title to
the land is held by a corporate | ||||||
15 | trustee and if the real estate held
in the land trust meets | ||||||
16 | the other requirements of this subsection;
| ||||||
17 | (E) with a mortgage loan not to exceed 40 years.
| ||||||
18 | (3) For the purpose of repair, improvement, | ||||||
19 | rehabilitation,
furnishing, or equipment of real estate.
| ||||||
20 | (4) For the purpose of financing or refinancing an existing
| ||||||
21 | ownership interest in certificates of stock, certificates of
| ||||||
22 | beneficial interest, other evidence of an ownership interest | ||||||
23 | in,
or a proprietary lease from a corporation, trust, or | ||||||
24 | partnership
formed for the purpose of the cooperative ownership | ||||||
25 | of real estate,
secured by the assignment or transfer of | ||||||
26 | certificates or other
evidence of ownership of the borrower.
|
| |||||||
| |||||||
1 | (5) Through the purchase of loans that, at the time of
| ||||||
2 | purchase, the savings bank could make in accordance with this
| ||||||
3 | Section and the bylaws.
| ||||||
4 | (6) Through the purchase of installment contracts for the
| ||||||
5 | sale of real estate and title thereto that is subject to the
| ||||||
6 | contracts, but in each instance only if the savings bank, at | ||||||
7 | the
time of purchase, could make a mortgage loan of the same | ||||||
8 | amount and
for the same length of time on the security of the | ||||||
9 | real estate.
| ||||||
10 | (7) Through loans guaranteed or insured, wholly or in part,
| ||||||
11 | by the United States or any of its instrumentalities.
| ||||||
12 | (8) Subject to regulations adopted by the Commissioner, | ||||||
13 | through
secured or unsecured loans for business, corporate, | ||||||
14 | commercial, or
agricultural purposes; provided that the total | ||||||
15 | of all loans granted under
this paragraph shall not exceed 15% | ||||||
16 | of the savings bank's total assets unless
a greater amount is | ||||||
17 | authorized in writing by the Commissioner.
| ||||||
18 | (9) For the purpose of manufactured mobile home financing | ||||||
19 | subject,
however, to the regulation of the Commissioner. As | ||||||
20 | used in this Section, "manufactured home" means a manufactured | ||||||
21 | home as defined in subdivision (53) of Section 9-102 of the | ||||||
22 | Uniform Commercial Code.
| ||||||
23 | (10) Through loans secured by the cash surrender value of | ||||||
24 | any
life insurance policy or any collateral that would be a | ||||||
25 | legal
investment under the terms of this Act if made by the | ||||||
26 | savings bank.
|
| |||||||
| |||||||
1 | (11) Any provision of this Act or any other law, except for | ||||||
2 | paragraph
(18) of Section
6003, to the contrary
| ||||||
3 | notwithstanding, but subject to the Financial Institutions | ||||||
4 | Insurance Sales
Law and subject to the Commissioner's | ||||||
5 | regulations, any
savings bank may make any loan or investment | ||||||
6 | or engage in any
activity that it could make or engage in if it | ||||||
7 | were organized
under State law as a savings and loan | ||||||
8 | association or under federal law as a
federal savings and loan | ||||||
9 | association or federal savings bank.
| ||||||
10 | (12) A savings bank may issue letters of credit or other
| ||||||
11 | similar arrangements only as provided for by regulation of the
| ||||||
12 | Commissioner with regard to aggregate amounts permitted, take | ||||||
13 | out
commitments for stand-by letters of credit, underlying
| ||||||
14 | documentation and underwriting, legal limitations on loans of | ||||||
15 | the
savings bank, control and subsidiary records, and other | ||||||
16 | procedures
deemed necessary by the Commissioner.
| ||||||
17 | (13) For the purpose of automobile financing, subject to | ||||||
18 | the
regulation of the Commissioner.
| ||||||
19 | (14) For the purpose of financing primary, secondary,
| ||||||
20 | undergraduate, or postgraduate education.
| ||||||
21 | (15) Through revolving lines of credit on the security of a
| ||||||
22 | first or junior lien on the borrower's personal residence, | ||||||
23 | based
primarily on the borrower's equity, the proceeds of which | ||||||
24 | may be
used for any purpose; those loans being commonly | ||||||
25 | referred to as home
equity loans.
| ||||||
26 | (16) As secured or unsecured credit to cover the payment of |
| |||||||
| |||||||
1 | checks,
drafts, or other funds transfer orders in excess of the | ||||||
2 | available balance
of an account on which they are drawn, | ||||||
3 | subject to the regulations of the
Commissioner.
| ||||||
4 | (b) For purposes of this Section, "real estate" includes a | ||||||
5 | manufactured home as defined in subdivision (53) of the Uniform | ||||||
6 | Commercial Code which is real property as defined in Section | ||||||
7 | 5-35 of the Conveyance and Encumbrance of Manufactured Homes as | ||||||
8 | Real Property and Severance Act. | ||||||
9 | (Source: P.A. 90-301, eff. 8-1-97; 91-97, eff. 7-9-99.)
| ||||||
10 | (205 ILCS 205/6008) (from Ch. 17, par. 7306-8)
| ||||||
11 | Sec. 6008. Purchase of real estate at forced sale. A | ||||||
12 | savings bank may
purchase at any sheriff's or other judicial | ||||||
13 | sale, either public or private,
any real estate upon which the | ||||||
14 | savings bank has any mortgage, lien or other
encumbrance, or in | ||||||
15 | which the savings bank has any other interest. The
savings bank | ||||||
16 | thereafter may repair, insure, improve, sell, convey, lease,
| ||||||
17 | preserve, mortgage, exchange, or otherwise dispose of real | ||||||
18 | estate so
acquired in the best interests of the savings bank. | ||||||
19 | For purposes of this Section, "real estate" includes a | ||||||
20 | manufactured home as defined in subdivision (53) of Section | ||||||
21 | 9-102 of the Uniform Commercial Code which is real property as | ||||||
22 | defined in Section 5-35 of the Conveyance and Encumbrance of | ||||||
23 | Manufactured Homes as Real Property and Severance Act.
| ||||||
24 | (Source: P.A. 86-1213.)
|
| |||||||
| |||||||
1 | Section 10-40. The Illinois Credit Union Act is amended by | ||||||
2 | changing Sections 46 and 46.1 as follows:
| ||||||
3 | (205 ILCS 305/46) (from Ch. 17, par. 4447)
| ||||||
4 | Sec. 46. Loans and interest rate.
| ||||||
5 | (1) A credit union may make loans
to its members for such | ||||||
6 | purpose and upon such security and terms, including
rates of | ||||||
7 | interest, as the Credit Committee, credit manager, or loan | ||||||
8 | officer
approves.
Notwithstanding the provisions of any other | ||||||
9 | law in connection with extensions
of credit, a credit union may | ||||||
10 | elect to
contract for and receive interest and fees and other | ||||||
11 | charges for extensions of
credit subject only to the provisions | ||||||
12 | of this Act and rules promulgated under
this Act, except that | ||||||
13 | extensions of credit secured by residential real estate
shall | ||||||
14 | be subject to the laws applicable thereto.
The rates of | ||||||
15 | interest to be charged on loans to members shall be
set by the | ||||||
16 | Board of Directors of each individual credit union in | ||||||
17 | accordance with Section 30 of this Act and such
rates may be | ||||||
18 | less than, but may not exceed, the maximum rate set forth in
| ||||||
19 | this Section. A borrower may repay his loan prior to maturity, | ||||||
20 | in whole or
in part, without penalty. The credit contract may | ||||||
21 | provide for the payment
by the member and receipt by the credit | ||||||
22 | union of all costs and
disbursements, including reasonable | ||||||
23 | attorney's fees and collection agency
charges, incurred by the | ||||||
24 | credit union to collect or enforce the debt in the
event of a | ||||||
25 | delinquency by the member, or in the event of a breach of any
|
| |||||||
| |||||||
1 | obligation of the member under the credit contract. A | ||||||
2 | contingency or
hourly arrangement established under an | ||||||
3 | agreement entered into by a credit
union with an attorney or | ||||||
4 | collection agency to collect a loan of a member
in default | ||||||
5 | shall be presumed prima facie reasonable.
| ||||||
6 | (2) Credit unions may make loans based upon the security of | ||||||
7 | any
interest or equity in real estate, subject to rules and | ||||||
8 | regulations
promulgated by the Director. In any contract or | ||||||
9 | loan which
is secured by a mortgage, deed of
trust, or | ||||||
10 | conveyance in the nature of a mortgage, on residential real
| ||||||
11 | estate, the interest which is computed, calculated, charged, or | ||||||
12 | collected
pursuant to such contract or loan, or pursuant to any | ||||||
13 | regulation or rule
promulgated pursuant to this Act, may not be | ||||||
14 | computed, calculated, charged
or collected for any period of | ||||||
15 | time occurring after the date on which the
total indebtedness, | ||||||
16 | with the exception of late payment penalties, is paid
in full.
| ||||||
17 | For purposes of this subsection (2) of this Section 46, a | ||||||
18 | prepayment
shall mean the payment of the total indebtedness, | ||||||
19 | with the exception of
late payment penalties if incurred or | ||||||
20 | charged, on any date before the date
specified in the contract | ||||||
21 | or loan agreement on which the total indebtedness
shall be paid | ||||||
22 | in full, or before the date on which all payments, if timely
| ||||||
23 | made, shall have been made. In the event of a prepayment of the
| ||||||
24 | indebtedness which is made on a date
after the date on which | ||||||
25 | interest on the indebtedness was last computed,
calculated, | ||||||
26 | charged, or collected but before the next date on which |
| |||||||
| |||||||
1 | interest
on the indebtedness was to be calculated, computed, | ||||||
2 | charged, or collected,
the lender may calculate, charge and | ||||||
3 | collect interest on the indebtedness
for the period which | ||||||
4 | elapsed between the date on which the prepayment is
made and | ||||||
5 | the date on which interest on the indebtedness was last | ||||||
6 | computed,
calculated, charged or collected at a rate equal to | ||||||
7 | 1/360 of the annual
rate for each day which so elapsed, which | ||||||
8 | rate shall be applied to the
indebtedness outstanding as of the | ||||||
9 | date of prepayment. The lender shall
refund to the borrower any | ||||||
10 | interest charged or collected which exceeds that
which the | ||||||
11 | lender may charge or collect pursuant to the preceding | ||||||
12 | sentence.
The provisions of this amendatory Act of 1985 shall | ||||||
13 | apply only to contracts
or loans entered into on or after the | ||||||
14 | effective date of this amendatory
Act.
| ||||||
15 | (3) Notwithstanding any other provision of this Act, a | ||||||
16 | credit union
authorized under this Act to make loans secured by | ||||||
17 | an interest or equity in
real estate may engage in making | ||||||
18 | "reverse mortgage" loans to persons for
the purpose of making | ||||||
19 | home improvements or repairs, paying insurance
premiums or | ||||||
20 | paying real estate taxes on the homestead properties
of such | ||||||
21 | persons. If made, such loans shall be made on such terms and
| ||||||
22 | conditions as the credit union shall determine and as shall be | ||||||
23 | consistent
with the provisions of this Section and such rules | ||||||
24 | and regulations as the
Director shall promulgate hereunder. For | ||||||
25 | purposes of this Section, a
"reverse mortgage" loan shall be a | ||||||
26 | loan extended on the basis of existing
equity in homestead |
| |||||||
| |||||||
1 | property and secured by a mortgage on such property.
Such loans | ||||||
2 | shall be repaid upon the sale of the property or upon the death
| ||||||
3 | of the owner or, if the property is in joint tenancy, upon the | ||||||
4 | death of the
last surviving joint tenant who had such an | ||||||
5 | interest in the property at the
time the loan was initiated, | ||||||
6 | provided, however, that the credit union and
its member may by | ||||||
7 | mutual agreement, establish other repayment terms. A
credit | ||||||
8 | union, in making a "reverse mortgage" loan, may add deferred
| ||||||
9 | interest to principal or otherwise provide for the charging of | ||||||
10 | interest or
premiums on such deferred interest. "Homestead" | ||||||
11 | property, for purposes of
this Section, means the domicile and | ||||||
12 | contiguous real estate owned and
occupied by the mortgagor. The | ||||||
13 | Director shall promulgate rules and
regulations under this | ||||||
14 | Section; provided that such rules and regulations
need not be | ||||||
15 | promulgated jointly with any other administrative agency of | ||||||
16 | this State.
| ||||||
17 | (4) Notwithstanding any other provisions of this Act, a | ||||||
18 | credit union
authorized under this Act to make loans secured by | ||||||
19 | an interest or equity
in real property may engage in making | ||||||
20 | revolving credit loans secured by
mortgages or deeds of trust | ||||||
21 | on such real property or by security
assignments of beneficial | ||||||
22 | interests in land trusts.
| ||||||
23 | For purposes of this Section, "revolving credit" has the | ||||||
24 | meaning defined
in Section 4.1 of the Interest Act.
| ||||||
25 | Any mortgage or deed of trust given to secure a revolving | ||||||
26 | credit loan may,
and when so expressed therein shall, secure |
| |||||||
| |||||||
1 | not only the existing indebtedness
but also such future | ||||||
2 | advances, whether such advances are obligatory or to
be made at | ||||||
3 | the option of the lender, or otherwise, as are made within | ||||||
4 | twenty
years from the date thereof, to the same extent as if | ||||||
5 | such future advances
were made on the date of the execution of | ||||||
6 | such mortgage or deed of trust,
although there may be no | ||||||
7 | advance made at the time of execution of such mortgage
or other | ||||||
8 | instrument, and although there may be no indebtedness | ||||||
9 | outstanding
at the time any advance is made. The lien of such | ||||||
10 | mortgage or deed of trust,
as to third persons
without actual | ||||||
11 | notice thereof, shall be valid as to all such indebtedness
and | ||||||
12 | future advances form the time said mortgage or deed of trust is | ||||||
13 | filed
for record in the office of the Recorder of Deeds or the | ||||||
14 | Registrar of Titles
of the county where the real property | ||||||
15 | described therein is located. The
total amount of indebtedness | ||||||
16 | that may be so secured may increase or decrease
from time to | ||||||
17 | time, but the total unpaid balance so secured at any one time
| ||||||
18 | shall not exceed a maximum principal amount which must be | ||||||
19 | specified in such
mortgage or deed of trust, plus interest | ||||||
20 | thereon, and any disbursements
made for the payment of taxes, | ||||||
21 | special assessments, or insurance on said
real property, with | ||||||
22 | interest on such disbursements.
| ||||||
23 | Any such mortgage or deed of trust shall be valid and have | ||||||
24 | priority over
all subsequent liens and encumbrances, including | ||||||
25 | statutory liens, except
taxes and assessments levied on said | ||||||
26 | real property.
|
| |||||||
| |||||||
1 | (4-5) For purposes of this Section, "real estate" and "real | ||||||
2 | property" include a manufactured home as defined in subdivision | ||||||
3 | (53) of Section 9-102 of the Uniform Commercial Code which is | ||||||
4 | real property as defined in Section 5-35 of the Conveyance and | ||||||
5 | Encumbrance of Manufactured Homes as Real Property and | ||||||
6 | Severance Act. | ||||||
7 | (5) Compliance with federal or Illinois preemptive laws or | ||||||
8 | regulations
governing loans made by a credit union chartered | ||||||
9 | under this Act shall
constitute compliance with this Act.
| ||||||
10 | (6) Credit unions may make residential real estate mortgage | ||||||
11 | loans on terms and conditions established by the United States | ||||||
12 | Department of Agriculture through its Rural Development | ||||||
13 | Housing and Community Facilities Program. The portion of any | ||||||
14 | loan in excess of the appraised value of the real estate shall | ||||||
15 | be allocable only to the guarantee fee required under the | ||||||
16 | program. | ||||||
17 | (Source: P.A. 95-98, eff. 8-13-07; 96-141, eff. 8-7-09.)
| ||||||
18 | (205 ILCS 305/46.1) (from Ch. 17, par. 4447.1)
| ||||||
19 | Sec. 46.1. Non-recourse reverse mortgage loans. Any credit | ||||||
20 | union
authorized under this Act to make loans secured by an | ||||||
21 | interest or equity in
real estate may make non-recourse reverse | ||||||
22 | mortgage loans as provided in
Section 6.1 of the Illinois | ||||||
23 | Banking Act.
| ||||||
24 | For purposes of this Section, "real estate" includes a | ||||||
25 | manufactured home as defined in subdivision (53) of Section |
| |||||||
| |||||||
1 | 9-102 of the Uniform Commercial Code that is real property as | ||||||
2 | defined in Section 5-35 of the Conveyance and Encumbrance of | ||||||
3 | Manufactured Homes as Real Property and Severance Act. | ||||||
4 | (Source: P.A. 87-488.)
| ||||||
5 | Section 10-45. The Residential Mortgage License Act of 1987 | ||||||
6 | is amended by changing Section 1-4 as follows:
| ||||||
7 | (205 ILCS 635/1-4) | ||||||
8 | Sec. 1-4. Definitions. | ||||||
9 | (a) "Residential real property" or "residential real | ||||||
10 | estate" shall mean any real property located in Illinois, upon | ||||||
11 | which is constructed or intended to be constructed a dwelling. | ||||||
12 | Those terms include a manufactured home as defined in | ||||||
13 | subdivision (53) of Section 9-102 of the Uniform Commercial | ||||||
14 | Code which is real property as defined in Section 5-35 of the | ||||||
15 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
16 | Property and Severance Act. | ||||||
17 | (b) "Making a residential mortgage loan" or "funding a | ||||||
18 | residential mortgage
loan" shall mean for compensation or gain, | ||||||
19 | either directly or indirectly,
advancing funds or making a | ||||||
20 | commitment to advance funds to a loan applicant
for a | ||||||
21 | residential mortgage loan. | ||||||
22 | (c) "Soliciting, processing, placing, or negotiating a | ||||||
23 | residential
mortgage loan" shall mean for compensation or gain, | ||||||
24 | either directly or
indirectly, accepting or offering to accept |
| |||||||
| |||||||
1 | an application for a
residential mortgage loan, assisting or | ||||||
2 | offering to assist in the
processing of an application for a | ||||||
3 | residential mortgage loan on behalf of a
borrower, or | ||||||
4 | negotiating or offering to negotiate the terms or conditions
of | ||||||
5 | a residential mortgage loan with a lender on behalf of a | ||||||
6 | borrower
including, but not limited to, the submission of | ||||||
7 | credit packages for the
approval of lenders, the preparation of | ||||||
8 | residential mortgage loan closing
documents, including a | ||||||
9 | closing in the name of a broker. | ||||||
10 | (d) "Exempt person or entity" shall mean the following: | ||||||
11 | (1) (i) Any banking organization or foreign banking | ||||||
12 | corporation
licensed by the Illinois Commissioner of Banks | ||||||
13 | and Real Estate or the
United States Comptroller of the | ||||||
14 | Currency to transact business in this
State; (ii) any | ||||||
15 | national bank, federally chartered savings and loan
| ||||||
16 | association, federal savings bank, federal credit union; | ||||||
17 | (iii) any pension
trust, bank trust, or bank trust company; | ||||||
18 | (iv) any bank, savings and loan
association, savings bank, | ||||||
19 | or credit union organized under the laws of this
or any | ||||||
20 | other state; (v) any Illinois Consumer Installment Loan Act | ||||||
21 | licensee;
(vi) any insurance company authorized to | ||||||
22 | transact business in this State;
(vii) any entity engaged | ||||||
23 | solely in commercial mortgage lending; (viii) any
service | ||||||
24 | corporation of a savings and loan association or savings | ||||||
25 | bank organized
under the laws of this State or the service | ||||||
26 | corporation of a federally
chartered savings and loan |
| |||||||
| |||||||
1 | association or savings bank having
its principal place of | ||||||
2 | business in this State, other than a service
corporation | ||||||
3 | licensed or entitled to reciprocity under the Real Estate
| ||||||
4 | License Act of 2000; or (ix) any first tier subsidiary of a
| ||||||
5 | bank, the charter of which is issued under the Illinois | ||||||
6 | Banking Act
by the Illinois Commissioner of Banks and Real | ||||||
7 | Estate,
or the first tier subsidiary of a bank chartered by | ||||||
8 | the United States
Comptroller of the Currency and that has | ||||||
9 | its principal place of business
in this State, provided | ||||||
10 | that the first tier subsidiary is regularly
examined by the | ||||||
11 | Illinois Commissioner of Banks and Real Estate
or the | ||||||
12 | Comptroller of the Currency, or a consumer compliance | ||||||
13 | examination is
regularly conducted by the Federal Reserve | ||||||
14 | Board. | ||||||
15 | (1.5) Any employee of a person or entity mentioned in
| ||||||
16 | item (1) of this subsection, when acting for such person or | ||||||
17 | entity, or any registered mortgage loan originator when | ||||||
18 | acting for an entity described in subsection (tt) of this | ||||||
19 | Section. | ||||||
20 | (2) (Blank). | ||||||
21 | (3) Any person employed by a licensee to assist in the | ||||||
22 | performance of
the residential mortgage licensee's | ||||||
23 | activities regulated by this Act who is compensated in any | ||||||
24 | manner by
only one licensee. | ||||||
25 | (4) (Blank). | ||||||
26 | (5) Any individual, corporation, partnership, or other |
| |||||||
| |||||||
1 | entity that
originates, services, or brokers residential | ||||||
2 | mortgage loans, as these
activities are defined in this | ||||||
3 | Act, and who or which receives no
compensation for those | ||||||
4 | activities, subject to the Commissioner's
regulations and | ||||||
5 | the federal Secure and Fair Enforcement for Mortgage | ||||||
6 | Licensing Act of 2008 and the rules promulgated under that | ||||||
7 | Act with regard to the nature and amount of compensation. | ||||||
8 | (6) (Blank). | ||||||
9 | (e) "Licensee" or "residential mortgage licensee" shall | ||||||
10 | mean a person,
partnership, association, corporation, or any | ||||||
11 | other entity who or which is
licensed pursuant to this Act to | ||||||
12 | engage in the activities regulated by
this Act. | ||||||
13 | (f) "Mortgage loan" "residential mortgage loan" or "home
| ||||||
14 | mortgage loan" shall mean any loan primarily for personal, | ||||||
15 | family, or household use that is secured by a mortgage, deed of | ||||||
16 | trust, or other equivalent consensual security interest on a | ||||||
17 | dwelling as defined in Section 103(v) of the federal Truth in | ||||||
18 | Lending Act, or residential real estate upon which is | ||||||
19 | constructed or intended to be constructed a dwelling. | ||||||
20 | (g) "Lender" shall mean any person, partnership, | ||||||
21 | association,
corporation, or any other entity who either lends | ||||||
22 | or invests money in
residential mortgage loans. | ||||||
23 | (h) "Ultimate equitable owner" shall mean a person who, | ||||||
24 | directly
or indirectly, owns or controls an ownership interest | ||||||
25 | in a corporation,
foreign corporation, alien business | ||||||
26 | organization, trust, or any other form
of business organization |
| |||||||
| |||||||
1 | regardless of whether the person owns or controls
the ownership | ||||||
2 | interest through one or more persons or one or more proxies,
| ||||||
3 | powers of attorney, nominees, corporations, associations, | ||||||
4 | partnerships,
trusts, joint stock companies, or other entities | ||||||
5 | or devices, or any
combination thereof. | ||||||
6 | (i) "Residential mortgage financing transaction" shall | ||||||
7 | mean the negotiation,
acquisition, sale, or arrangement for or | ||||||
8 | the offer to negotiate, acquire,
sell, or arrange for, a | ||||||
9 | residential mortgage loan or residential mortgage
loan | ||||||
10 | commitment. | ||||||
11 | (j) "Personal residence address" shall mean a street | ||||||
12 | address and shall
not include a post office box number. | ||||||
13 | (k) "Residential mortgage loan commitment" shall mean a | ||||||
14 | contract for
residential mortgage loan financing. | ||||||
15 | (l) "Party to a residential mortgage financing | ||||||
16 | transaction" shall mean a
borrower, lender, or loan broker in a | ||||||
17 | residential mortgage financing
transaction. | ||||||
18 | (m) "Payments" shall mean payment of all or any of the | ||||||
19 | following:
principal, interest and escrow reserves for taxes, | ||||||
20 | insurance and other related
reserves, and reimbursement for | ||||||
21 | lender advances. | ||||||
22 | (n) "Commissioner" shall mean the Commissioner of Banks and | ||||||
23 | Real Estate, except that, beginning on April 6, 2009 (the | ||||||
24 | effective date of Public Act 95-1047), all references in this | ||||||
25 | Act to the Commissioner of Banks and Real Estate are deemed, in | ||||||
26 | appropriate contexts, to be references to the Secretary of |
| |||||||
| |||||||
1 | Financial and Professional Regulation, or his or her designee, | ||||||
2 | including the Director of the Division of Banking of the | ||||||
3 | Department of Financial and Professional Regulation. | ||||||
4 | (n-1) "Director" shall mean the Director of the Division of | ||||||
5 | Banking of the Department of Financial and Professional | ||||||
6 | Regulation, except that, beginning on July 31, 2009 (the | ||||||
7 | effective date of Public Act 96-112), all references in this | ||||||
8 | Act to the Director are deemed, in appropriate contexts, to be | ||||||
9 | the Secretary of Financial and Professional Regulation, or his | ||||||
10 | or her designee, including the Director of the Division of | ||||||
11 | Banking of the Department of Financial and Professional | ||||||
12 | Regulation. | ||||||
13 | (o) "Loan brokering", "brokering", or "brokerage service" | ||||||
14 | shall mean the act
of helping to obtain from another entity, | ||||||
15 | for a borrower, a loan secured by
residential real estate | ||||||
16 | situated in Illinois or assisting a borrower in
obtaining a | ||||||
17 | loan secured by residential real estate situated in Illinois in
| ||||||
18 | return for consideration to be paid by either the borrower or | ||||||
19 | the lender
including, but not limited to, contracting for the | ||||||
20 | delivery of residential
mortgage loans to a third party lender | ||||||
21 | and soliciting, processing, placing,
or negotiating | ||||||
22 | residential mortgage loans. | ||||||
23 | (p) "Loan broker" or "broker" shall mean a person, | ||||||
24 | partnership,
association, corporation, or limited liability | ||||||
25 | company, other than
those persons, partnerships,
associations, | ||||||
26 | corporations, or limited liability companies exempted
from |
| |||||||
| |||||||
1 | licensing pursuant to Section
1-4, subsection (d), of this Act, | ||||||
2 | who performs the activities described
in subsections (c) and | ||||||
3 | (o) of this Section. | ||||||
4 | (q) "Servicing" shall mean the collection or remittance for | ||||||
5 | or the
right or obligation to collect or remit for any lender, | ||||||
6 | noteowner,
noteholder, or for a licensee's own account, of | ||||||
7 | payments, interests,
principal, and trust items such as hazard | ||||||
8 | insurance and taxes on a
residential mortgage loan in | ||||||
9 | accordance with the terms of the residential
mortgage loan; and | ||||||
10 | includes loan payment follow-up, delinquency loan
follow-up, | ||||||
11 | loan analysis and any notifications to the borrower that are
| ||||||
12 | necessary to enable the borrower to keep the loan current and | ||||||
13 | in good standing. | ||||||
14 | (r) "Full service office" shall mean an office, provided by | ||||||
15 | the licensee and not subleased from the licensee's employees, | ||||||
16 | and staff in Illinois
reasonably adequate to handle efficiently | ||||||
17 | communications, questions, and
other matters relating to any | ||||||
18 | application for, or an existing home mortgage
secured by | ||||||
19 | residential real estate situated in Illinois
with respect to | ||||||
20 | which the licensee is brokering, funding originating,
| ||||||
21 | purchasing, or servicing. The management and operation of each | ||||||
22 | full service
office must include observance of good business | ||||||
23 | practices such as proper signage; adequate,
organized, and | ||||||
24 | accurate books and records; ample phone lines, hours of
| ||||||
25 | business, staff training and supervision, and provision for a | ||||||
26 | mechanism to
resolve consumer inquiries, complaints, and |
| |||||||
| |||||||
1 | problems. The Commissioner
shall issue regulations with regard | ||||||
2 | to these requirements and shall include
an evaluation of | ||||||
3 | compliance with this Section in his or her periodic
examination | ||||||
4 | of each licensee. | ||||||
5 | (s) "Purchasing" shall mean the purchase of conventional or
| ||||||
6 | government-insured mortgage loans secured by residential real | ||||||
7 | estate
situated in Illinois from either the lender or from the | ||||||
8 | secondary market. | ||||||
9 | (t) "Borrower" shall mean the person or persons who seek | ||||||
10 | the services of
a loan broker, originator, or lender. | ||||||
11 | (u) "Originating" shall mean the issuing of commitments for | ||||||
12 | and funding of
residential mortgage loans. | ||||||
13 | (v) "Loan brokerage agreement" shall mean a written | ||||||
14 | agreement in which a
broker or loan broker agrees to do either | ||||||
15 | of the following: | ||||||
16 | (1) obtain a residential mortgage loan for the borrower | ||||||
17 | or assist the
borrower in obtaining a residential mortgage | ||||||
18 | loan; or | ||||||
19 | (2) consider making a residential mortgage loan to the | ||||||
20 | borrower. | ||||||
21 | (w) "Advertisement" shall mean the attempt by publication,
| ||||||
22 | dissemination, or circulation to induce, directly or | ||||||
23 | indirectly,
any person to enter into a residential mortgage | ||||||
24 | loan agreement or
residential mortgage loan brokerage | ||||||
25 | agreement relative to a
mortgage secured by residential real | ||||||
26 | estate situated in Illinois. |
| |||||||
| |||||||
1 | (x) "Residential Mortgage Board" shall mean the | ||||||
2 | Residential Mortgage
Board created in Section 1-5 of this Act. | ||||||
3 | (y) "Government-insured mortgage loan" shall mean any | ||||||
4 | mortgage loan made
on the security of residential real estate | ||||||
5 | insured by the Department of
Housing and Urban Development or | ||||||
6 | Farmers Home Loan Administration, or
guaranteed by the Veterans | ||||||
7 | Administration. | ||||||
8 | (z) "Annual audit" shall mean a certified audit of the | ||||||
9 | licensee's books and
records and systems of internal control | ||||||
10 | performed by a certified public
accountant in accordance with | ||||||
11 | generally accepted accounting principles
and generally | ||||||
12 | accepted auditing standards. | ||||||
13 | (aa) "Financial institution" shall mean a savings and loan
| ||||||
14 | association, savings bank, credit union, or a bank organized | ||||||
15 | under the
laws of Illinois or a savings and loan association, | ||||||
16 | savings bank,
credit union or a bank organized under the laws | ||||||
17 | of the United States and
headquartered in Illinois. | ||||||
18 | (bb) "Escrow agent" shall mean a third party, individual or | ||||||
19 | entity
charged with the fiduciary obligation for holding escrow | ||||||
20 | funds on a
residential mortgage loan pending final payout of | ||||||
21 | those funds
in accordance with the terms of the residential | ||||||
22 | mortgage loan. | ||||||
23 | (cc) "Net worth" shall have the meaning ascribed thereto in | ||||||
24 | Section 3-5
of this Act. | ||||||
25 | (dd) "Affiliate" shall mean: | ||||||
26 | (1) any entity that directly controls or is controlled |
| |||||||
| |||||||
1 | by the licensee
and any other company that is directly | ||||||
2 | affecting activities regulated by
this Act that is | ||||||
3 | controlled by the company that controls the licensee; | ||||||
4 | (2) any entity: | ||||||
5 | (A) that is controlled, directly or indirectly, by | ||||||
6 | a trust or otherwise,
by or for the benefit of | ||||||
7 | shareholders who beneficially or otherwise
control, | ||||||
8 | directly or indirectly, by trust or otherwise, the | ||||||
9 | licensee or any
company that controls the licensee; or | ||||||
10 | (B) a majority of the directors or trustees of | ||||||
11 | which constitute a
majority of the persons holding any | ||||||
12 | such office with the licensee or any
company that | ||||||
13 | controls the licensee; | ||||||
14 | (3) any company, including a real estate investment | ||||||
15 | trust, that is
sponsored and advised on a contractual basis | ||||||
16 | by the licensee or any
subsidiary or affiliate of the | ||||||
17 | licensee. | ||||||
18 | The Commissioner may define by rule and regulation any | ||||||
19 | terms used
in this Act for the efficient and clear | ||||||
20 | administration of this Act. | ||||||
21 | (ee) "First tier subsidiary" shall be defined by regulation
| ||||||
22 | incorporating the comparable definitions used by the Office of | ||||||
23 | the
Comptroller of the Currency and the Illinois Commissioner | ||||||
24 | of Banks
and Real Estate. | ||||||
25 | (ff) "Gross delinquency rate" means the quotient | ||||||
26 | determined by dividing
(1) the sum of (i) the number of |
| |||||||
| |||||||
1 | government-insured residential mortgage loans
funded or | ||||||
2 | purchased by a licensee in the preceding calendar year that are
| ||||||
3 | delinquent and (ii) the number of conventional residential | ||||||
4 | mortgage loans
funded or purchased by the licensee in the | ||||||
5 | preceding calendar year that are
delinquent by (2) the sum of | ||||||
6 | (i) the number of government-insured residential
mortgage | ||||||
7 | loans funded or purchased by the licensee in the preceding | ||||||
8 | calendar
year and (ii) the number of conventional residential | ||||||
9 | mortgage loans funded or
purchased by the licensee in the | ||||||
10 | preceding calendar year. | ||||||
11 | (gg) "Delinquency rate factor" means the factor set by rule | ||||||
12 | of the
Commissioner that is multiplied by the average gross | ||||||
13 | delinquency rate of
licensees, determined annually for the | ||||||
14 | immediately preceding calendar year, for
the purpose of | ||||||
15 | determining which licensees shall be examined by the
| ||||||
16 | Commissioner pursuant to subsection (b) of Section 4-8 of this | ||||||
17 | Act. | ||||||
18 | (hh) "Loan originator" means any natural person who, for | ||||||
19 | compensation or in
the expectation of compensation, either | ||||||
20 | directly or indirectly makes, offers to
make, solicits, places, | ||||||
21 | or negotiates a residential mortgage loan. This definition | ||||||
22 | applies only to Section 7-1 of this Act. | ||||||
23 | (ii) "Confidential supervisory information" means any | ||||||
24 | report of examination, visitation, or investigation prepared | ||||||
25 | by the Commissioner under this Act, any report of examination | ||||||
26 | visitation, or investigation prepared by the state regulatory |
| |||||||
| |||||||
1 | authority of another state that examines a licensee, any | ||||||
2 | document or record prepared or obtained in connection with or | ||||||
3 | relating to any examination, visitation, or investigation, and | ||||||
4 | any record prepared or obtained by the Commissioner to the | ||||||
5 | extent that the record summarizes or contains information | ||||||
6 | derived from any report, document, or record described in this | ||||||
7 | subsection. "Confidential supervisory information" does not | ||||||
8 | include any information or record routinely prepared by a | ||||||
9 | licensee and maintained in the ordinary course of business or | ||||||
10 | any information or record that is required to be made publicly | ||||||
11 | available pursuant to State or federal law or rule.
| ||||||
12 | (jj) "Mortgage loan originator" means an individual who for | ||||||
13 | compensation or gain or in the expectation of compensation or | ||||||
14 | gain: | ||||||
15 | (i) takes a residential mortgage loan application; or | ||||||
16 | (ii) offers or negotiates terms of a residential | ||||||
17 | mortgage loan. | ||||||
18 | "Mortgage loan originator" does not include an individual | ||||||
19 | engaged solely as a loan processor or underwriter except as | ||||||
20 | otherwise provided in subsection (d) of Section 7-1A of this | ||||||
21 | Act. | ||||||
22 | "Mortgage loan originator" does not include a person or | ||||||
23 | entity that only performs real estate brokerage activities and | ||||||
24 | is licensed in accordance with the Real Estate License Act of | ||||||
25 | 2000, unless the person or entity is compensated by a lender, a | ||||||
26 | mortgage broker, or other mortgage loan originator, or by any |
| |||||||
| |||||||
1 | agent of that lender, mortgage broker, or other mortgage loan | ||||||
2 | originator. | ||||||
3 | "Mortgage loan originator" does not include a person or | ||||||
4 | entity solely involved in extensions of credit relating to | ||||||
5 | timeshare plans, as that term is defined in Section 101(53D) of | ||||||
6 | Title 11, United States Code. | ||||||
7 | (kk) "Depository institution" has the same meaning as in | ||||||
8 | Section 3 of the Federal Deposit Insurance Act, and includes | ||||||
9 | any credit union. | ||||||
10 | (ll) "Dwelling" means a residential structure or mobile | ||||||
11 | home which contains one to 4 family housing units, or | ||||||
12 | individual units of condominiums or cooperatives. | ||||||
13 | (mm) "Immediate family member" means a spouse, child, | ||||||
14 | sibling, parent, grandparent, or grandchild, and includes | ||||||
15 | step-parents, step-children, step-siblings, or adoptive | ||||||
16 | relationships. | ||||||
17 | (nn) "Individual" means a natural person. | ||||||
18 | (oo) "Loan processor or underwriter" means an individual | ||||||
19 | who performs clerical or support duties as an employee at the | ||||||
20 | direction of and subject to the supervision and instruction of | ||||||
21 | a person licensed, or exempt from licensing, under this Act. | ||||||
22 | "Clerical or support duties" includes subsequent to the receipt | ||||||
23 | of an application: | ||||||
24 | (i) the receipt, collection, distribution, and | ||||||
25 | analysis of information common for the processing or | ||||||
26 | underwriting of a residential mortgage loan; and |
| |||||||
| |||||||
1 | (ii) communicating with a consumer to obtain the | ||||||
2 | information necessary for the processing or underwriting | ||||||
3 | of a loan, to the extent that the communication does not | ||||||
4 | include offering or negotiating loan rates or terms, or | ||||||
5 | counseling consumers about residential mortgage loan rates | ||||||
6 | or terms. An individual engaging solely in loan processor | ||||||
7 | or underwriter activities shall not represent to the | ||||||
8 | public, through advertising or other means of | ||||||
9 | communicating or providing information, including the use | ||||||
10 | of business cards, stationery, brochures, signs, rate | ||||||
11 | lists, or other promotional items, that the individual can | ||||||
12 | or will perform any of the activities of a mortgage loan | ||||||
13 | originator. | ||||||
14 | (pp) "Nationwide Mortgage Licensing System and Registry" | ||||||
15 | means a mortgage licensing system developed and maintained by | ||||||
16 | the Conference of State Bank Supervisors and the American | ||||||
17 | Association of Residential Mortgage Regulators for the | ||||||
18 | licensing and registration of licensed mortgage loan | ||||||
19 | originators. | ||||||
20 | (qq) "Nontraditional mortgage product" means any mortgage | ||||||
21 | product other than a 30-year fixed rate mortgage. | ||||||
22 | (rr) "Person" means a natural person, corporation, | ||||||
23 | company, limited liability company, partnership, or | ||||||
24 | association. | ||||||
25 | (ss) "Real estate brokerage activity" means any activity | ||||||
26 | that involves offering or providing real estate brokerage |
| |||||||
| |||||||
1 | services to the public, including: | ||||||
2 | (1) acting as a real estate agent or real estate broker | ||||||
3 | for a buyer, seller, lessor, or lessee of real property; | ||||||
4 | (2) bringing together parties interested in the sale, | ||||||
5 | purchase, lease, rental, or exchange of real property; | ||||||
6 | (3) negotiating, on behalf of any party, any portion of | ||||||
7 | a contract relating to the sale, purchase, lease, rental, | ||||||
8 | or exchange of real property, other than in connection with | ||||||
9 | providing financing with respect to any such transaction; | ||||||
10 | (4) engaging in any activity for which a person engaged | ||||||
11 | in the activity is required to be registered or licensed as | ||||||
12 | a real estate agent or real estate broker under any | ||||||
13 | applicable law; or | ||||||
14 | (5) offering to engage in any activity, or act in any | ||||||
15 | capacity, described in this subsection (ss). | ||||||
16 | (tt) "Registered mortgage loan originator" means any | ||||||
17 | individual that: | ||||||
18 | (1) meets the definition of mortgage loan originator | ||||||
19 | and is an employee of: | ||||||
20 | (A) a depository institution; | ||||||
21 | (B) a subsidiary that is: | ||||||
22 | (i) owned and controlled by a depository | ||||||
23 | institution; and | ||||||
24 | (ii) regulated by a federal banking agency; or | ||||||
25 | (C) an institution regulated by the Farm Credit | ||||||
26 | Administration; and |
| |||||||
| |||||||
1 | (2) is registered with, and maintains a unique | ||||||
2 | identifier through, the Nationwide Mortgage Licensing | ||||||
3 | System and Registry. | ||||||
4 | (uu) "Unique identifier" means a number or other identifier | ||||||
5 | assigned by protocols established by the Nationwide Mortgage | ||||||
6 | Licensing System and Registry. | ||||||
7 | (vv) "Residential mortgage license" means a license issued | ||||||
8 | pursuant to Section 1-3, 2-2, or 2-6 of this Act. | ||||||
9 | (ww) "Mortgage loan originator license" means a license | ||||||
10 | issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act. | ||||||
11 | (xx) "Secretary" means the Secretary of the Department of | ||||||
12 | Financial and Professional Regulation, or a person authorized | ||||||
13 | by the Secretary or by this Act to act in the Secretary's | ||||||
14 | stead. | ||||||
15 | (Source: P.A. 95-1047, eff. 4-6-09; 96-112, eff. 7-31-09; | ||||||
16 | 96-1000, eff. 7-2-10; 96-1216, eff. 1-1-11.)
| ||||||
17 | Section 10-50. The Mobile Home Park Act is amended by | ||||||
18 | changing Section 2.1 as follows:
| ||||||
19 | (210 ILCS 115/2.1) (from Ch. 111 1/2, par. 712.1)
| ||||||
20 | Sec. 2.1.
"Manufactured home" means a factory-assembled, | ||||||
21 | completely integrated structure designed for permanent | ||||||
22 | habitation, with a permanent chassis, and so constructed as to | ||||||
23 | permit its transport, on wheels temporarily or permanently | ||||||
24 | attached to its frame, and is a movable or portable unit that |
| |||||||
| |||||||
1 | is (i) 8 body feet or more in width, (ii) 40 body feet or more | ||||||
2 | in length, and (iii) 320 or more square feet, constructed to be | ||||||
3 | towed on its own chassis (comprised of frame and wheels) from | ||||||
4 | the place of its construction to the location, or subsequent | ||||||
5 | locations, at which it is installed and set up according to the | ||||||
6 | manufacturer's instructions and connected to utilities for | ||||||
7 | year-round occupancy for use as a permanent habitation, and | ||||||
8 | designed and situated so as to permit its occupancy as a | ||||||
9 | dwelling place for one or more persons , and specifically | ||||||
10 | includes a "manufactured home" as defined in subdivision (53) | ||||||
11 | of Section 9-102 of the Uniform Commercial Code . The term shall | ||||||
12 | include units containing parts that may be folded, collapsed, | ||||||
13 | or telescoped when being towed and that may be expected to | ||||||
14 | provide additional cubic capacity, and that are designed to be | ||||||
15 | joined into one integral unit capable of being separated again | ||||||
16 | into the components for repeated towing. The term excludes | ||||||
17 | campers and recreational vehicles. The term "mobile home"
shall | ||||||
18 | not include modular homes and their support systems. The words | ||||||
19 | "mobile home" and "manufactured home" are synonymous for the | ||||||
20 | purposes of this Act.
| ||||||
21 | (Source: P.A. 96-1477, eff. 1-1-11.)
| ||||||
22 | Section 10-55. The Abandoned Mobile Home Act is amended by | ||||||
23 | changing Section 10 as follows:
| ||||||
24 | (210 ILCS 117/10)
|
| |||||||
| |||||||
1 | Sec. 10. Definitions. As used in this Act:
| ||||||
2 | "Manufactured home" means a factory-assembled, completely | ||||||
3 | integrated structure designed for permanent habitation, with a | ||||||
4 | permanent chassis, and so constructed as to permit its | ||||||
5 | transport, on wheels temporarily or permanently attached to its | ||||||
6 | frame, and is a movable or portable unit that is (i) 8 body | ||||||
7 | feet or more in width, (ii) 40 body feet or more in length, and | ||||||
8 | (iii) 320 or more square feet, constructed to be towed on its | ||||||
9 | own chassis (comprised of frame and wheels) from the place of | ||||||
10 | its construction to the location, or subsequent locations, at | ||||||
11 | which it is installed and set up according to the | ||||||
12 | manufacturer's instructions and connected to utilities for | ||||||
13 | year-round occupancy for use as a permanent habitation, and | ||||||
14 | designed and situated so as to permit its occupancy as a | ||||||
15 | dwelling place for one or more persons , and specifically | ||||||
16 | includes a "manufactured home" as defined in subdivision (53) | ||||||
17 | of Section 9-102 of the Uniform Commercial Code . The term shall | ||||||
18 | include units containing parts that may be folded, collapsed, | ||||||
19 | or telescoped when being towed and that may be expected to | ||||||
20 | provide additional cubic capacity, and that are designed to be | ||||||
21 | joined into one integral unit capable of being separated again | ||||||
22 | into the components for repeated towing. The term excludes | ||||||
23 | campers and recreational vehicles. The words "mobile home" and | ||||||
24 | "manufactured home" are synonymous for the purposes of this | ||||||
25 | Act.
| ||||||
26 | "Abandoned mobile home" means a mobile home located inside |
| |||||||
| |||||||
1 | a mobile home park that has no owner currently
residing in the | ||||||
2 | mobile home or authorized tenant of the owner currently
| ||||||
3 | residing in the mobile home to the best knowledge of the | ||||||
4 | municipality;
has had its electricity,
natural gas, sewer, and | ||||||
5 | water payments declared delinquent
by the utility companies | ||||||
6 | that are providing such services; and for which
the Mobile Home | ||||||
7 | Privilege Tax, imposed under the Mobile Home Local
Services Tax | ||||||
8 | Act, is delinquent for at least 3 months. A mobile home | ||||||
9 | abandoned outside a mobile home park must be treated like other | ||||||
10 | real property for condemnation purposes.
| ||||||
11 | "Municipality" means any city, village, incorporated town, | ||||||
12 | or its duly
authorized agent. If an abandoned mobile home is | ||||||
13 | located in an
unincorporated area, the county where the mobile | ||||||
14 | home is located shall have
all powers granted to a
municipality | ||||||
15 | under this Act.
| ||||||
16 | (Source: P.A. 96-1477, eff. 1-1-11.)
| ||||||
17 | Section 10-60. The Illinois Manufactured Housing and | ||||||
18 | Mobile Home Safety Act is amended by changing Section 2 as | ||||||
19 | follows:
| ||||||
20 | (430 ILCS 115/2) (from Ch. 67 1/2, par. 502)
| ||||||
21 | Sec. 2.
Unless clearly indicated otherwise by the context, | ||||||
22 | the
following words and terms when used in this Act, for the | ||||||
23 | purpose of this
Act, shall have the following meanings:
| ||||||
24 | (a) "Manufactured home" means "manufactured home" as |
| |||||||
| |||||||
1 | defined in subdivision (53) of Section 9-102 of the Uniform | ||||||
2 | Commercial Code. "Mobile home" means a factory-assembled, | ||||||
3 | completely integrated structure, constructed on or before June | ||||||
4 | 30, 1976, designed for permanent habitation, with a permanent | ||||||
5 | chassis, and so constructed as to permit its transport, on | ||||||
6 | wheels temporarily or permanently attached to its frame, that | ||||||
7 | is a movable or portable unit that is constructed to be towed | ||||||
8 | on its own chassis (comprised of frame and wheels) from the | ||||||
9 | place of its construction to the location, or subsequent | ||||||
10 | locations, at which it is connected to utilities for year-round | ||||||
11 | occupancy for use as a permanent habitation, and designed and | ||||||
12 | situated so as to permit its occupancy as a dwelling place for | ||||||
13 | one or more persons. a factory-assembled, completely | ||||||
14 | integrated structure designed for permanent habitation, with a | ||||||
15 | permanent chassis, and so constructed as to permit its | ||||||
16 | transport, on wheels temporarily or permanently attached to its | ||||||
17 | frame, and is a movable or portable unit that is (i) 8 body | ||||||
18 | feet or more in width, (ii) 40 body feet or more in length, and | ||||||
19 | (iii) 320 or more square feet, constructed to be towed on its | ||||||
20 | own chassis (comprised of frame and wheels) from the place of | ||||||
21 | its construction to the location, or subsequent locations, at | ||||||
22 | which it is installed and set up according to the | ||||||
23 | manufacturer's instructions and connected to utilities for | ||||||
24 | year-round occupancy for use as a permanent habitation, and | ||||||
25 | designed and situated so as to permit its occupancy as a | ||||||
26 | dwelling place for one or more persons. The terms "manufactured |
| |||||||
| |||||||
1 | home" and "mobile home" term shall include units otherwise | ||||||
2 | meeting their respective definitions containing parts that may | ||||||
3 | be folded, collapsed, or telescoped when being towed and that | ||||||
4 | may be expected to provide additional cubic capacity, and that | ||||||
5 | are designed to be joined into one integral unit capable of | ||||||
6 | being separated again into the components for repeated towing. | ||||||
7 | The terms "mobile home" and "manufactured home" exclude term | ||||||
8 | excludes campers and recreational vehicles. The terms "mobile | ||||||
9 | home" and "manufactured home" do not include modular homes or | ||||||
10 | manufactured housing units.
| ||||||
11 | (b) "Person" means a person, partnership, corporation, or | ||||||
12 | other
legal entity.
| ||||||
13 | (c) "Manufacturer" means any person who manufactures | ||||||
14 | mobile homes or
manufactured housing at the place or places, | ||||||
15 | either on or away from the
building site, at which machinery, | ||||||
16 | equipment and other capital goods are
assembled and operated | ||||||
17 | for the purpose of making, fabricating, forming
or assembling | ||||||
18 | mobile homes or manufactured housing.
| ||||||
19 | (d) "Department" means the Department of Public Health.
| ||||||
20 | (e) "Director" means the Director of the Department of | ||||||
21 | Public
Health.
| ||||||
22 | (f) "Dealer" means any person, other than a manufacturer, | ||||||
23 | as defined
in this Act, who sells 3 or more mobile homes or | ||||||
24 | manufactured housing
units in any consecutive 12-month period.
| ||||||
25 | (g) "Codes" means the safety codes for manufactured housing | ||||||
26 | and
mobile homes promulgated by the Department. The Codes shall |
| |||||||
| |||||||
1 | contain the
standards and requirements for manufactured | ||||||
2 | housing and mobile homes so
that adequate performance for the | ||||||
3 | intended use is made the test of
acceptability. The Code of | ||||||
4 | Standards shall permit the use of new and
used technology, | ||||||
5 | techniques, methods and materials, for both
manufactured | ||||||
6 | housing and mobile homes, consistent with recognized and
| ||||||
7 | accepted codes and standards developed by the International | ||||||
8 | Code Council (ICC) or by the organizations that formed the ICC | ||||||
9 | in 1994: Building Officials and Code Administrators, the | ||||||
10 | International Conference of Building Officials, the
Southern | ||||||
11 | Building Codes Congress International, the National Fire | ||||||
12 | Protection
Association, the International Association of | ||||||
13 | Plumbing and Mechanical
Officials, the American National | ||||||
14 | Standards Institute, the Illinois State
Plumbing Code, and the | ||||||
15 | United States Department of Housing and Urban
Development, | ||||||
16 | hereinafter referred to as "HUD", applying to manufactured
| ||||||
17 | housing and mobile homes installed and set up according to the | ||||||
18 | manufacturer's instructions. A copy of said safety codes, | ||||||
19 | including said
revisions thereof is on file with the | ||||||
20 | Department.
| ||||||
21 | (h) "Seal" means a device or insignia issued by the | ||||||
22 | Department to be
displayed on the exterior of the mobile home | ||||||
23 | or the interior of a manufactured housing
unit or modular home | ||||||
24 | to evidence compliance with the applicable safety code.
| ||||||
25 | (i) "Modular home" means a
building assembly or system of | ||||||
26 | building sub-assemblies, designed for
habitation as a dwelling |
| |||||||
| |||||||
1 | for one or more persons, including the
necessary electrical, | ||||||
2 | plumbing, heating, ventilating and other service
systems, | ||||||
3 | which is of closed or open construction and which is made or
| ||||||
4 | assembled by a manufacturer, on or off the building site, for
| ||||||
5 | installation, or assembly and installation, on the building | ||||||
6 | site, installed and set up according to the manufacturer's | ||||||
7 | instructions on an approved foundation and support system. The | ||||||
8 | construction of modular dwelling units located in Illinois is | ||||||
9 | regulated by the Illinois Department of Public Health.
| ||||||
10 | (j) "Closed construction" is any building, component, | ||||||
11 | assembly or
system manufactured in such a manner that all | ||||||
12 | portions cannot readily be
inspected at the installation site | ||||||
13 | without disassembly, damage to, or
destruction thereof.
| ||||||
14 | (k) "Open construction" is any building, component, | ||||||
15 | assembly or
system manufactured in such a manner that all | ||||||
16 | portions can be readily
inspected at the installation site | ||||||
17 | without disassembly, damage to, or
destruction thereof.
| ||||||
18 | (l) "Approved foundation and support system" means, for a | ||||||
19 | modular home or modular dwelling unit, a closed perimeter | ||||||
20 | formation
consisting of materials such as concrete, mortared | ||||||
21 | concrete block, or
mortared brick extending into the ground | ||||||
22 | below the frost line which
shall include, but not necessarily | ||||||
23 | be limited to, cellars, basements, or
crawl spaces, and does | ||||||
24 | include the use of piers supporting the marriage wall of the | ||||||
25 | home that extend below the frost line.
| ||||||
26 | (m) "Code compliance certificate" means the certificate |
| |||||||
| |||||||
1 | provided by
the manufacturer to the Department that warrants | ||||||
2 | that the manufactured
housing unit or mobile home complies with | ||||||
3 | the applicable code.
| ||||||
4 | (n) "Manufactured housing", "manufactured housing unit", | ||||||
5 | "modular dwelling", and "modular home" shall not be confused | ||||||
6 | with "manufactured home" or "mobile home". | ||||||
7 | (Source: P.A. 96-1477, eff. 1-1-11.)
| ||||||
8 | Section 10-65. The Manufactured Home Quality Assurance Act | ||||||
9 | is amended by changing Section 10 as follows:
| ||||||
10 | (430 ILCS 117/10)
| ||||||
11 | Sec. 10. Definitions. In this Act:
| ||||||
12 | "Department" means the Illinois Department of Public | ||||||
13 | Health.
| ||||||
14 | "Licensed installer" means a person who has successfully
| ||||||
15 | completed a manufactured home installation course approved
by | ||||||
16 | the Department and paid the required fees.
| ||||||
17 | "Manufactured home" means a "manufactured home", as | ||||||
18 | defined in subdivision (53) of section 9-102 of the Uniform | ||||||
19 | Commercial Code. "Mobile home" means a factory-assembled, | ||||||
20 | completely integrated structure, constructed on or before June | ||||||
21 | 30, 1976, designed for permanent habitation, with a permanent | ||||||
22 | chassis, and so constructed as to permit its transport, on | ||||||
23 | wheels temporarily or permanently attached to its frame, that | ||||||
24 | is a movable or portable unit that is constructed to be towed |
| |||||||
| |||||||
1 | on its own chassis (comprised of frame and wheels) from the | ||||||
2 | place of its construction to the location, or subsequent | ||||||
3 | locations, at which it is connected to utilities for year-round | ||||||
4 | occupancy for use as a permanent habitation, and designed and | ||||||
5 | situated so as to permit its occupancy as a dwelling place for | ||||||
6 | one or more persons. a factory-assembled, completely | ||||||
7 | integrated structure designed for permanent habitation, with a | ||||||
8 | permanent chassis, and so constructed as to permit its | ||||||
9 | transport, on wheels temporarily or permanently attached to its | ||||||
10 | frame, and is a movable or portable unit that is (i) 8 body | ||||||
11 | feet or more in width, (ii) 40 body feet or more in length, and | ||||||
12 | (iii) 320 or more square feet, constructed to be towed on its | ||||||
13 | own chassis (comprised of frame and wheels) from the place of | ||||||
14 | its construction to the location, or subsequent locations, at | ||||||
15 | which it is installed and set up according to the | ||||||
16 | manufacturer's instructions and connected to utilities for | ||||||
17 | year-round occupancy for use as a permanent habitation, and | ||||||
18 | designed and situated so as to permit its occupancy as a | ||||||
19 | dwelling place for one or more persons. The terms "manufactured | ||||||
20 | home" and "mobile home" term shall include units otherwise | ||||||
21 | meeting their respective definitions containing parts that may | ||||||
22 | be folded, collapsed, or telescoped when being towed and that | ||||||
23 | may be expected to provide additional cubic capacity, and that | ||||||
24 | are designed to be joined into one integral unit capable of | ||||||
25 | being separated again into the components for repeated towing. | ||||||
26 | The terms "manufactured home" and "mobile home" exclude term |
| |||||||
| |||||||
1 | excludes campers and recreational vehicles.
| ||||||
2 | "Manufacturer" means a manufacturer of a manufactured | ||||||
3 | home, whether
the manufacturer is located within or outside of | ||||||
4 | the State of Illinois.
| ||||||
5 | "Mobile home" or "manufactured home" does not include a | ||||||
6 | modular home.
| ||||||
7 | "Mobile home park" means a tract of land or 2 contiguous | ||||||
8 | tracts of land that contain sites with the necessary utilities | ||||||
9 | for 5 or more mobile homes or manufactured homes. A mobile home | ||||||
10 | park may be operated either free of charge or for revenue | ||||||
11 | purposes.
| ||||||
12 | (Source: P.A. 96-1477, eff. 1-1-11.)
| ||||||
13 | Section 10-70. The Illinois Vehicle Code is amended by | ||||||
14 | changing Sections 3-100, 3-102, 3-103, 3-104, 3-106, 3-107, | ||||||
15 | 3-109, 3-110, 3-116, 3-202, 3-205, 3-207, and 3-208 and by | ||||||
16 | adding Sections 1-144.03, 3-116.1, 3-116.2, and 3-116.3 as | ||||||
17 | follows:
| ||||||
18 | (625 ILCS 5/1-144.03 new) | ||||||
19 | Sec. 1-144.03. Mobile home or manufactured home. A mobile | ||||||
20 | home or manufactured home means a manufactured home as defined | ||||||
21 | in subdivision (53) of Section 9-102 of the Uniform Commercial | ||||||
22 | Code.
| ||||||
23 | (625 ILCS 5/3-100) (from Ch. 95 1/2, par. 3-100)
|
| |||||||
| |||||||
1 | Sec. 3-100. Definitions. For the purposes of this Chapter, | ||||||
2 | the following words shall
have the meanings ascribed to them:
| ||||||
3 | "Electronic" includes electrical, digital, magnetic, | ||||||
4 | optical,
electromagnetic, or any other form of technology that | ||||||
5 | entails capabilities
similar to these technologies.
| ||||||
6 | "Electronic record" means a record generated, | ||||||
7 | communicated, received, or
stored by electronic means for use | ||||||
8 | in an information system or for
transmission from one | ||||||
9 | information system to another.
| ||||||
10 | "Electronic signature" means a signature in electronic | ||||||
11 | form attached to or
logically associated with an electronic | ||||||
12 | record.
| ||||||
13 | "Owner" means a person who holds legal document of | ||||||
14 | ownership of a vehicle,
limited to a certificate of origin, | ||||||
15 | certificate of title, salvage certificate,
or junking | ||||||
16 | certificate. However, in the event a vehicle is the subject of | ||||||
17 | an
agreement for the conditional sale or lease thereof with the
| ||||||
18 | right of purchase upon performance of the conditions stated in | ||||||
19 | the
agreement and with an immediate right of possession vested | ||||||
20 | in the
conditional vendee or lessee, or in the event a | ||||||
21 | mortgagor of such vehicle
is entitled to possession, then such | ||||||
22 | conditional vendee or lessee or
mortgagor shall be deemed the | ||||||
23 | owner for the purpose of this Chapter,
except as provided under | ||||||
24 | paragraph (c) of Section 3-118.
| ||||||
25 | "Record" means information that is inscribed, stored, or | ||||||
26 | otherwise fixed
on a tangible medium or that is stored in an |
| |||||||
| |||||||
1 | electronic or other medium
and is retrievable in perceivable | ||||||
2 | form.
| ||||||
3 | "Signature" or "signed" includes any symbol executed or | ||||||
4 | adopted, or any
security procedure employed or adopted, using | ||||||
5 | electronic means or
otherwise, by or on behalf of a person with | ||||||
6 | intent to authenticate a
record.
| ||||||
7 | "Vehicle" means a vehicle as defined in Section 1-217 of | ||||||
8 | this Code. Unless otherwise specified, "vehicle" also means a | ||||||
9 | "manufactured home" as defined in Section 1-144.03 of this Code | ||||||
10 | (Source: P.A. 91-79, eff. 1-1-00; 91-357, eff. 7-29-99; 91-772, | ||||||
11 | eff.
1-1-01.)
| ||||||
12 | (625 ILCS 5/3-102) (from Ch. 95 1/2, par. 3-102)
| ||||||
13 | Sec. 3-102. Exclusions.
| ||||||
14 | No certificate of title need be obtained for:
| ||||||
15 | 1. A vehicle owned by the State of Illinois; or a vehicle | ||||||
16 | owned by the
United States unless it is registered in this | ||||||
17 | State;
| ||||||
18 | 2. A vehicle owned by a manufacturer or dealer and held for | ||||||
19 | sale, even
though incidentally moved on the highway or used for | ||||||
20 | purposes of testing or
demonstration, provided a dealer | ||||||
21 | reassignment area is still available on the
manufacturer's | ||||||
22 | certificate of origin or the Illinois title; or a vehicle used
| ||||||
23 | by a manufacturer solely for testing;
| ||||||
24 | 3. A vehicle owned by a non-resident of this State and not | ||||||
25 | required by
law to be registered in this State;
|
| |||||||
| |||||||
1 | 4. A motor vehicle regularly engaged in the interstate | ||||||
2 | transportation of
persons or property for which a currently | ||||||
3 | effective certificate of title
has been issued in another | ||||||
4 | State;
| ||||||
5 | 5. A vehicle moved solely by animal power;
| ||||||
6 | 6. An implement of husbandry;
| ||||||
7 | 7. Special mobile equipment;
| ||||||
8 | 8. An apportionable trailer or an apportionable | ||||||
9 | semitrailer registered in
the State prior to April 1, 1998.
| ||||||
10 | 9. A manufactured home for which an affidavit of affixation | ||||||
11 | has been recorded pursuant to the Conveyance and Encumbrance of | ||||||
12 | Manufactured Homes as Real Property and Severance Act unless | ||||||
13 | with respect to the same manufactured home there has been | ||||||
14 | recorded an affidavit of severance pursuant to that Act. | ||||||
15 | (Source: P.A. 91-441, eff. 1-1-00.)
| ||||||
16 | (625 ILCS 5/3-103) (from Ch. 95 1/2, par. 3-103)
| ||||||
17 | Sec. 3-103. Optional certificate of title.
| ||||||
18 | (a) The owner of an implement of husbandry or special | ||||||
19 | mobile equipment may
apply for and obtain a certificate of | ||||||
20 | title on it. All of the provisions of
this chapter, except part | ||||||
21 | (e) of Section 3-104, are applicable to a
certificate of title | ||||||
22 | so issued, except that a person who receives a
transfer of an | ||||||
23 | interest in the vehicle without knowledge of the certificate
of | ||||||
24 | title is not prejudiced by reason of the existence of the | ||||||
25 | certificate,
and the perfection of a security interest under |
| |||||||
| |||||||
1 | this act is not effective
until the lienholder has complied | ||||||
2 | with the provisions of applicable law
which otherwise relate to | ||||||
3 | the perfection of security interests in personal
property.
| ||||||
4 | An application for an optional certificate of title must be | ||||||
5 | accompanied
by either an exemption determination from the | ||||||
6 | Department of Revenue showing
that no tax imposed under the | ||||||
7 | "Use Tax Act" or the "Retailers' Occupation
Tax Act" is owed by | ||||||
8 | anyone with respect to that vehicle or by a receipt
from the | ||||||
9 | Department of Revenue showing that any tax so imposed has been
| ||||||
10 | paid. No optional certificate of title shall be issued in the | ||||||
11 | absence of
such a receipt or exemption determination.
| ||||||
12 | If the proof of payment or of nonliability is, after the | ||||||
13 | issuance of the
optional certificate of title, found to be | ||||||
14 | invalid, the Secretary of State
shall revoke the optional | ||||||
15 | certificate of title and require that it be
returned to him.
| ||||||
16 | (b) The owner of a manufactured home which is permanently | ||||||
17 | affixed to real estate and for which a certificate of title has | ||||||
18 | not previously been issued and surrendered for cancellation may | ||||||
19 | apply for a certificate of title, including, if applicable, a | ||||||
20 | certificate of title issued in accordance with subsection (b) | ||||||
21 | of Section 3-109, which shall be issued for the sole purpose of | ||||||
22 | (i) surrendering such certificate of title for cancellation in | ||||||
23 | accordance with Section 3-116.2 or (ii) satisfying the | ||||||
24 | requirements of subdivision (e)(4) of Section 9-334 of the | ||||||
25 | Uniform Commercial Code. The Secretary of State shall issue a | ||||||
26 | certificate of title, in accordance with this Chapter, upon |
| |||||||
| |||||||
1 | satisfaction of the application requirements of this Code. | ||||||
2 | (Source: P.A. 78-1165.)
| ||||||
3 | (625 ILCS 5/3-104) (from Ch. 95 1/2, par. 3-104)
| ||||||
4 | Sec. 3-104. Application for certificate of title.
| ||||||
5 | (a) The application for a certificate of title for a | ||||||
6 | vehicle in this
State must be made by the owner to the | ||||||
7 | Secretary of State on the form
prescribed and must contain:
| ||||||
8 | 1. The name, Illinois residence and mail address of the | ||||||
9 | owner;
| ||||||
10 | 2. A description of the vehicle including, so far as | ||||||
11 | the following
data exists: Its make, year-model, | ||||||
12 | identifying number, type of body,
whether new or used, as | ||||||
13 | to house trailers as
defined in Section 1-128 of this Code, | ||||||
14 | and as to manufactured homes as defined in Section 1-144.03 | ||||||
15 | of this Code, the square footage of the house
trailer based | ||||||
16 | upon the outside dimensions of the house trailer excluding
| ||||||
17 | the length of the tongue and hitch, and, as to vehicles of | ||||||
18 | the
second division, whether for-hire, not-for-hire, or | ||||||
19 | both for-hire and
not-for-hire;
| ||||||
20 | 3. The date of purchase by applicant and, if | ||||||
21 | applicable, the name and
address of the person from whom | ||||||
22 | the vehicle was acquired and the names and
addresses of any | ||||||
23 | lienholders in the order of their priority and signatures | ||||||
24 | of
owners;
| ||||||
25 | 4. The current odometer reading at the time of transfer |
| |||||||
| |||||||
1 | and that the
stated odometer reading is one of the | ||||||
2 | following: actual mileage, not
the actual mileage or | ||||||
3 | mileage is in excess of its mechanical limits; and
| ||||||
4 | 5. Any further information the Secretary of State | ||||||
5 | reasonably
requires to identify the vehicle and to enable | ||||||
6 | him to determine whether
the owner is entitled to a | ||||||
7 | certificate of title and the existence or
nonexistence of | ||||||
8 | security interests in the vehicle. | ||||||
9 | (a-5) The Secretary of State shall designate on the | ||||||
10 | prescribed application form a space where the owner of a | ||||||
11 | vehicle may designate a beneficiary, to whom ownership of the | ||||||
12 | vehicle shall pass in the event of the owner's death.
| ||||||
13 | (b) If the application refers to a vehicle purchased from a | ||||||
14 | dealer,
it must also be signed by the dealer as well as the | ||||||
15 | owner, and the dealer must
promptly mail or deliver the | ||||||
16 | application and required documents to the
Secretary of State.
| ||||||
17 | (c) If the application refers to a vehicle last previously
| ||||||
18 | registered in another State or country, the application must | ||||||
19 | contain or
be accompanied by:
| ||||||
20 | 1. Any certified document of ownership so recognized | ||||||
21 | and issued by
the other State or country and acceptable to | ||||||
22 | the Secretary of State, and
| ||||||
23 | 2. Any other information and documents the Secretary of | ||||||
24 | State
reasonably requires to establish the ownership of the | ||||||
25 | vehicle and the
existence or nonexistence of security | ||||||
26 | interests in it.
|
| |||||||
| |||||||
1 | (d) If the application refers to a new vehicle it must be
| ||||||
2 | accompanied by the Manufacturer's Statement of Origin, or other | ||||||
3 | documents
as required and acceptable by the Secretary of State, | ||||||
4 | with such
assignments as may be necessary to show title in the | ||||||
5 | applicant.
| ||||||
6 | (e) If an application refers to a vehicle rebuilt from a | ||||||
7 | vehicle
previously salvaged, that application shall comply | ||||||
8 | with the provisions
set forth in Sections 3-302 through 3-304 | ||||||
9 | of this Code.
| ||||||
10 | (f) An application for a certificate of title for any | ||||||
11 | vehicle,
whether purchased in Illinois or outside Illinois, and | ||||||
12 | even if
previously registered in another State, must be | ||||||
13 | accompanied by either an
exemption determination from the | ||||||
14 | Department of Revenue showing that no
tax imposed pursuant to | ||||||
15 | the Use Tax Act or the vehicle use tax imposed by
Section | ||||||
16 | 3-1001 of the Illinois Vehicle Code is owed by anyone with | ||||||
17 | respect to
that vehicle, or a receipt from the Department of | ||||||
18 | Revenue showing that any tax
so imposed has been paid. An | ||||||
19 | application for a certificate of title for any
vehicle | ||||||
20 | purchased outside Illinois, even if previously registered in | ||||||
21 | another
state, must be accompanied by either an exemption | ||||||
22 | determination from the
Department of Revenue showing that no | ||||||
23 | tax imposed pursuant to the Municipal Use
Tax Act or the County | ||||||
24 | Use Tax Act is owed by anyone with respect to that
vehicle, or | ||||||
25 | a receipt from the Department of Revenue showing that any tax | ||||||
26 | so
imposed has been paid. In the absence of such a receipt for |
| |||||||
| |||||||
1 | payment or
determination of exemption from the Department, no | ||||||
2 | certificate of title shall
be issued to the applicant.
| ||||||
3 | If the proof of payment of the tax or of nonliability | ||||||
4 | therefor is,
after the issuance of the certificate of title and | ||||||
5 | display certificate
of title, found to be invalid, the | ||||||
6 | Secretary of State shall revoke the
certificate and require | ||||||
7 | that the certificate of title and, when
applicable, the display | ||||||
8 | certificate of title be returned to him.
| ||||||
9 | (g) If the application refers to a vehicle not manufactured | ||||||
10 | in
accordance with federal safety and emission standards, the | ||||||
11 | application must
be accompanied by all documents required by | ||||||
12 | federal governmental
agencies to meet their standards before a | ||||||
13 | vehicle is allowed to be issued
title and registration.
| ||||||
14 | (h) If the application refers to a vehicle sold at public | ||||||
15 | sale by a
sheriff, it must be accompanied by the required fee | ||||||
16 | and a bill of sale
issued and signed by a sheriff. The bill of | ||||||
17 | sale must identify the new
owner's name and address, the year | ||||||
18 | model, make and vehicle identification
number of the vehicle, | ||||||
19 | court order document number authorizing such sale,
if | ||||||
20 | applicable, and the name and address of any lienholders in | ||||||
21 | order of
priority, if applicable.
| ||||||
22 | (i) If the application refers to a vehicle for which a | ||||||
23 | court of law
determined the ownership, it must be accompanied | ||||||
24 | with a certified copy of
such court order and the required fee. | ||||||
25 | The court order must indicate the
new owner's name and address, | ||||||
26 | the complete description of the vehicle, if
known, the name and |
| |||||||
| |||||||
1 | address of the lienholder, if any, and must be signed
and dated | ||||||
2 | by the judge issuing such order.
| ||||||
3 | (j) If the application refers to a vehicle sold at public | ||||||
4 | auction pursuant
to the Labor and Storage Lien (Small Amount) | ||||||
5 | Act, it must be
accompanied by an affidavit or affirmation | ||||||
6 | furnished by the Secretary of
State along with the
documents | ||||||
7 | described in the affidavit or affirmation and the required fee.
| ||||||
8 | (k) The Secretary may provide an expedited process for the | ||||||
9 | issuance of vehicle titles. Expedited title applications must | ||||||
10 | be delivered to the Secretary of State's Vehicle Services | ||||||
11 | Department in Springfield by express mail service or hand | ||||||
12 | delivery. Applications must be complete, including necessary | ||||||
13 | forms, fees, and taxes. Applications received before noon on a | ||||||
14 | business day will be processed and shipped that same day. | ||||||
15 | Applications received after noon on a business day will be | ||||||
16 | processed and shipped the next business day. The Secretary | ||||||
17 | shall charge an additional fee of $30 for this service, and | ||||||
18 | that fee shall cover the cost of return shipping via an express | ||||||
19 | mail service. All fees collected by the Secretary of State for | ||||||
20 | expedited services shall be deposited into the Motor Vehicle | ||||||
21 | License Plate Fund. In the event the Vehicle Services | ||||||
22 | Department determines that the volume of expedited title | ||||||
23 | requests received on a given day exceeds the ability of the | ||||||
24 | Vehicle Services Department to process those requests in an | ||||||
25 | expedited manner, the Vehicle Services Department may decline | ||||||
26 | to provide expedited services, and the additional fee for the |
| |||||||
| |||||||
1 | expedited service shall be refunded to the applicant. | ||||||
2 | (l) If the application refers to a homemade trailer, (i) it | ||||||
3 | must be accompanied by the appropriate documentation regarding | ||||||
4 | the source of materials used in the construction of the | ||||||
5 | trailer, as required by the Secretary of State, (ii) the | ||||||
6 | trailer must be inspected by a Secretary of State investigator, | ||||||
7 | as described in Section 2-115 of this Code, prior to the | ||||||
8 | issuance of the title, and (iii) upon approval of the Secretary | ||||||
9 | of State, the trailer must have a vehicle identification | ||||||
10 | number, as provided by the Secretary of State, stamped or | ||||||
11 | riveted to the frame. | ||||||
12 | (m) The holder of a Manufacturer's Statement of Origin to a | ||||||
13 | manufactured home may deliver it to any person to facilitate | ||||||
14 | conveying or encumbering the manufactured home. Any person | ||||||
15 | receiving any such Manufacturer's Statement of Origin so | ||||||
16 | delivered holds it in trust for the person delivering it. | ||||||
17 | (n) Within 45 days after the completion of the first retail | ||||||
18 | sale of a manufactured home, the Manufacturer's Statement of | ||||||
19 | Origin to that manufactured home must be surrendered to the | ||||||
20 | Secretary of State either in conjunction with an application | ||||||
21 | for a certificate of title for that manufactured home or in | ||||||
22 | accordance with Section 3-116.1. | ||||||
23 | (Source: P.A. 95-784, eff. 1-1-09; 96-519, eff. 1-1-10; 96-554, | ||||||
24 | eff. 1-1-10; 96-1000, eff. 7-2-10.)
| ||||||
25 | (625 ILCS 5/3-106) (from Ch. 95 1/2, par. 3-106)
|
| |||||||
| |||||||
1 | Sec. 3-106. Certificate of title - Issuance - Records. (a) | ||||||
2 | The Secretary of State shall file each application received | ||||||
3 | and,
when satisfied as to its genuineness and regularity, and | ||||||
4 | that no tax
imposed by the "Use Tax Act" or the vehicle use | ||||||
5 | tax, as imposed by Section
3-1001 of "The Illinois Vehicle | ||||||
6 | Code", or pursuant to the "Municipal Use
Tax Act" or pursuant | ||||||
7 | to the "County Use Tax Act" is owed as evidenced by
the receipt | ||||||
8 | for payment or determination of exemption from the Department
| ||||||
9 | of Revenue provided for in Section 3-104 of this Act, and that | ||||||
10 | the
applicant is entitled to the issuance of a certificate of | ||||||
11 | title, shall
issue a certificate of title of the vehicle.
| ||||||
12 | (b) The Secretary of State shall maintain a record of all
| ||||||
13 | certificates of title issued by him under a distinctive title | ||||||
14 | number
assigned to the vehicle; and, in the discretion of the | ||||||
15 | Secretary of
State, in any other method determined.
| ||||||
16 | (c) The Secretary of State shall not issue a certificate of | ||||||
17 | title, including a certificate of title issued in accordance | ||||||
18 | with subsection (b) of Section 3-109, to a manufactured home | ||||||
19 | for which there has been recorded an affidavit of affixation | ||||||
20 | pursuant to the Conveyance and Encumbrance of Manufactured | ||||||
21 | Homes as Real Property and Severance Act unless with respect to | ||||||
22 | the same manufactured home there has been recorded an affidavit | ||||||
23 | of severance pursuant to the Conveyance and Encumbrance of | ||||||
24 | Manufactured Homes as Real Property and Severance Act. | ||||||
25 | (d) The Secretary of State shall file, upon receipt, each | ||||||
26 | affidavit of affixation and affidavit of severance relating to |
| |||||||
| |||||||
1 | a manufactured home that is delivered in accordance with the | ||||||
2 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
3 | Property and Severance Act, when satisfied as to its | ||||||
4 | genuineness and regularity. | ||||||
5 | (e) The Secretary of State shall maintain a record of each | ||||||
6 | affidavit of affixation and each affidavit of severance filed | ||||||
7 | in accordance with subsection (d) of this Section. The record | ||||||
8 | shall state the name of the owner of the related manufactured | ||||||
9 | home, the name of manufacturer, make, model name, model year, | ||||||
10 | vehicle identification number, and any other data the Secretary | ||||||
11 | of State prescribes. | ||||||
12 | (f) The Secretary of State shall file, upon receipt, each | ||||||
13 | application for surrender of the Manufacturer's Statement of | ||||||
14 | Origin relating to a manufactured home that is delivered in | ||||||
15 | accordance with Section 3-116.1, when satisfied as to its | ||||||
16 | genuineness and regularity. | ||||||
17 | (g) The Secretary of State shall file, upon receipt, each | ||||||
18 | application for surrender of the certificate of title relating | ||||||
19 | to a manufactured home that is delivered in accordance with | ||||||
20 | Section 3-116.2, when satisfied as to its genuineness and | ||||||
21 | regularity. | ||||||
22 | (h) The Secretary of State shall maintain a record, | ||||||
23 | including a record in the form of a searchable electronic | ||||||
24 | database accessible to the public, of each Manufacturer's | ||||||
25 | Statement of Origin accepted for surrender as provided in | ||||||
26 | Section 3-116.1. The record shall state the date the |
| |||||||
| |||||||
1 | Manufacturer's Statement of Origin was accepted for surrender, | ||||||
2 | the name of manufacturer, make, model name, model year, vehicle | ||||||
3 | identification number, and any other data the Secretary of | ||||||
4 | State prescribes. | ||||||
5 | (i) The Secretary of State shall maintain a record, | ||||||
6 | including a record in the form of a searchable electronic | ||||||
7 | database accessible to the public, of each manufactured home | ||||||
8 | certificate of title accepted for surrender as provided in | ||||||
9 | Section 3-116.2. The record shall state the date the | ||||||
10 | certificate of title was accepted for surrender, the name of | ||||||
11 | manufacturer, make, model name, model year, vehicle | ||||||
12 | identification number, and any other data the Secretary of | ||||||
13 | State prescribes. | ||||||
14 | (Source: P.A. 86-444.)
| ||||||
15 | (625 ILCS 5/3-107) (from Ch. 95 1/2, par. 3-107)
| ||||||
16 | Sec. 3-107. Contents and effect.
| ||||||
17 | (a) Each certificate of title issued by the Secretary of | ||||||
18 | State shall
contain:
| ||||||
19 | 1. the date issued;
| ||||||
20 | 2. the name and address of the owner;
| ||||||
21 | 3. the names and addresses of any lienholders, in the | ||||||
22 | order of
priority as shown on the application or, if the | ||||||
23 | application is based on
a certificate of title, as shown on | ||||||
24 | the certificate;
| ||||||
25 | 4. the title number assigned to the vehicle;
|
| |||||||
| |||||||
1 | 5. a description of the vehicle including, so far as | ||||||
2 | the following
data exists: its make, year-model, | ||||||
3 | identifying number, type of body,
whether new or used, as | ||||||
4 | to house trailers as defined in Section 1-128 of
this Code, | ||||||
5 | and as to manufactured homes as defined in Section 1-144.03 | ||||||
6 | of this Code, the square footage of the vehicle based upon | ||||||
7 | the outside
dimensions of the house trailer excluding the | ||||||
8 | length of the tongue and
hitch, and, if a new vehicle, the | ||||||
9 | date of the first sale of the vehicle
for use;
| ||||||
10 | 6. an odometer certification as provided for in
this | ||||||
11 | Code; and
| ||||||
12 | 7. any other data the Secretary of State prescribes.
| ||||||
13 | (a-5) In the event the applicant seeks to have the vehicle | ||||||
14 | titled as a custom vehicle or street rod, that fact must be | ||||||
15 | stated in the application. The custom vehicle or street rod | ||||||
16 | must be inspected as required by Section 3-406 of this Code | ||||||
17 | prior to issuance of the title. Upon successful completion of | ||||||
18 | the inspection, the vehicle may be titled in the following | ||||||
19 | manner. The make of the vehicle shall be listed as the make of | ||||||
20 | the actual vehicle or the make it is designed to resemble | ||||||
21 | (e.g., Ford or Chevrolet); the model of the vehicle shall be | ||||||
22 | listed as custom vehicle or street rod; and the year of the | ||||||
23 | vehicle shall be listed as the year the actual vehicle was | ||||||
24 | manufactured or the year it is designed to resemble. A vehicle | ||||||
25 | previously titled as other than a custom vehicle or street rod | ||||||
26 | may be issued a corrected title reflecting the custom vehicle |
| |||||||
| |||||||
1 | or street rod model if it otherwise meets the requirements for | ||||||
2 | the designation. | ||||||
3 | (b) The certificate of title shall contain forms for | ||||||
4 | assignment and
warranty of title by the owner, and for | ||||||
5 | assignment and warranty of title
by a dealer, and may contain | ||||||
6 | forms for applications for a certificate of
title by a | ||||||
7 | transferee, the naming of a lienholder and the assignment or
| ||||||
8 | release of the security interest of a lienholder. | ||||||
9 | (b-5) The Secretary of State shall designate on a | ||||||
10 | certificate of title a space where the owner of a vehicle may | ||||||
11 | designate a beneficiary, to whom ownership of the vehicle shall | ||||||
12 | pass in the event of the owner's death.
| ||||||
13 | (c) A certificate of title issued by the Secretary of State | ||||||
14 | is prima
facie evidence of the facts appearing on it.
| ||||||
15 | (d) A certificate of title for a vehicle is not subject to
| ||||||
16 | garnishment, attachment, execution or other judicial process, | ||||||
17 | but this
subsection does not prevent a lawful levy upon the | ||||||
18 | vehicle.
| ||||||
19 | (e) Any certificate of title issued by the Secretary of | ||||||
20 | State is
subject to a lien in favor of the State of Illinois | ||||||
21 | for any fees or
taxes required to be paid under this Act and as | ||||||
22 | have not been paid, as
provided for in this Code.
| ||||||
23 | (f) Notwithstanding any other provision of law, a | ||||||
24 | certificate of title issued by the Secretary of State to a | ||||||
25 | manufactured home is prima facie evidence of the facts | ||||||
26 | appearing on it, notwithstanding the fact that such |
| |||||||
| |||||||
1 | manufactured home, at any time, shall have become affixed in | ||||||
2 | any manner to real property. | ||||||
3 | (Source: P.A. 95-784, eff. 1-1-09; 96-487, eff. 1-1-10.)
| ||||||
4 | (625 ILCS 5/3-109) (from Ch. 95 1/2, par. 3-109)
| ||||||
5 | Sec. 3-109. Registration without certificate of title; | ||||||
6 | bond. If the Secretary of State is not satisfied as to the | ||||||
7 | ownership of the
vehicle , including but not limited to, in the | ||||||
8 | case of a manufactured home, a circumstance in which the | ||||||
9 | manufactured home is covered by a Manufacturer's Statement of | ||||||
10 | Origin that the owner of the manufactured home, after diligent | ||||||
11 | search and inquiry, is unable to produce, or that there are no | ||||||
12 | undisclosed security interests in it, the
Secretary of State | ||||||
13 | may register the vehicle but shall either:
| ||||||
14 | (a) Withhold issuance of a certificate of title until the | ||||||
15 | applicant
presents documents reasonably sufficient to satisfy | ||||||
16 | the Secretary of
State as to the applicant's ownership of the | ||||||
17 | vehicle and that there are
no undisclosed security interests in | ||||||
18 | it; or
| ||||||
19 | (b) As a condition of issuing a certificate of title, | ||||||
20 | require the
applicant to file with the Secretary of State a | ||||||
21 | bond in the form
prescribed by the Secretary of State and | ||||||
22 | executed by the applicant, and
either accompanied by the | ||||||
23 | deposit of cash with the Secretary of State or
also executed by | ||||||
24 | a person authorized to conduct a surety business in
this State. | ||||||
25 | The bond shall be in an amount equal to one and one-half
times |
| |||||||
| |||||||
1 | the value of the vehicle as determined by the Secretary of | ||||||
2 | State
and conditioned to indemnify any prior owner and | ||||||
3 | lienholder and any
subsequent purchaser of the vehicle or | ||||||
4 | person acquiring any security
interest in it, and their | ||||||
5 | respective successors in interest, against any
expense, loss or | ||||||
6 | damage, including reasonable attorney's fees, by reason
of the | ||||||
7 | issuance of the certificate of title of the vehicle or on | ||||||
8 | account
of any defect in or undisclosed security interest upon | ||||||
9 | the right, title
and interest of the applicant in and to the | ||||||
10 | vehicle. Any such interested
person has a right of action to | ||||||
11 | recover on the bond for any breach of
its conditions, but the | ||||||
12 | aggregate liability of the surety to all persons
shall not | ||||||
13 | exceed the amount of the bond. The bond, and any deposit
| ||||||
14 | accompanying it, shall be returned at the end of three (3) | ||||||
15 | years or
prior thereto if (i) the vehicle is no longer | ||||||
16 | registered in this State and
the currently valid certificate of | ||||||
17 | title is surrendered to the Secretary
of State or (ii), in the | ||||||
18 | case of a certificate of title to a manufactured home, the | ||||||
19 | currently valid certificate of title is surrendered to the | ||||||
20 | Secretary of State in accordance with Section 3-116.2 , unless | ||||||
21 | the Secretary of State has been notified of the
pendency of an | ||||||
22 | action to recover on the bond.
| ||||||
23 | Security deposited as a bond hereunder shall be placed by | ||||||
24 | the
Secretary of State in the custody of the State Treasurer.
| ||||||
25 | (c) During July, annually, the Secretary shall compile a | ||||||
26 | list of all bonds
on deposit, pursuant to this Section, for |
| |||||||
| |||||||
1 | more than 3 years and concerning
which he has received no | ||||||
2 | notice as to the pendency of any judicial proceeding
that could | ||||||
3 | affect the disposition thereof. Thereupon, he shall promptly
| ||||||
4 | send a notice by certified mail to the last known address of | ||||||
5 | each depositor
advising him that his bond will be subject to | ||||||
6 | escheat to the State of Illinois
if not claimed within 30 days | ||||||
7 | after the mailing date of such notice. At
the expiration of | ||||||
8 | such time, the Secretary of State shall file with the
State | ||||||
9 | Treasurer an order directing the transfer of such deposit to | ||||||
10 | the Road
Fund in the State Treasury. Upon receipt of such | ||||||
11 | order, the State Treasurer
shall make such transfer, after | ||||||
12 | converting to cash any other type of security.
Thereafter any | ||||||
13 | person having a legal claim against such deposit may enforce
it | ||||||
14 | by appropriate proceedings in the Court of Claims subject to | ||||||
15 | the limitations
prescribed for such Court. At the expiration of | ||||||
16 | such limitation period
such deposit shall escheat to the State | ||||||
17 | of Illinois.
| ||||||
18 | (Source: P.A. 81-1458.)
| ||||||
19 | (625 ILCS 5/3-110) (from Ch. 95 1/2, par. 3-110)
| ||||||
20 | Sec. 3-110. Refusing certificate of title.
| ||||||
21 | The Secretary of State shall refuse issuance of a | ||||||
22 | certificate of title
if any required fee is not paid or if he | ||||||
23 | has reasonable grounds to believe
that:
| ||||||
24 | (a) the applicant is not the owner of the vehicle;
| ||||||
25 | (b) the application contains a false or fraudulent |
| |||||||
| |||||||
1 | statement; or
| ||||||
2 | (c) the applicant fails to furnish required information or | ||||||
3 | documents or
any additional information the Secretary of State | ||||||
4 | reasonably requires; or
| ||||||
5 | (d) the applicant has not paid to the Secretary of State | ||||||
6 | any fees or
taxes due under this Act and have not been paid | ||||||
7 | upon reasonable notice and
demand.
| ||||||
8 | Except as provided in Section 3-116.2, the Secretary of | ||||||
9 | State shall not refuse to issue a certificate of title to a | ||||||
10 | manufactured home by reason of the fact that, at any time, in | ||||||
11 | any manner, it shall have been affixed to real property. | ||||||
12 | (Source: P.A. 77-641; revised 9-16-10.)
| ||||||
13 | (625 ILCS 5/3-116) (from Ch. 95 1/2, par. 3-116)
| ||||||
14 | Sec. 3-116. When Secretary of State to issue a certificate | ||||||
15 | of title.
| ||||||
16 | (a) The Secretary of State, upon receipt of a properly | ||||||
17 | assigned
certificate of title, with an application for a | ||||||
18 | certificate of
title, the required fee and any other documents | ||||||
19 | required by law, shall
issue a new certificate of title in the | ||||||
20 | name of the transferee as owner
and mail it to the first | ||||||
21 | lienholder named in it or, if none, to the
owner or owner's | ||||||
22 | designee.
| ||||||
23 | (b) The Secretary of State, upon receipt of an application | ||||||
24 | for a new
certificate of title by a transferee other than by | ||||||
25 | voluntary transfer,
with proof of the transfer, the required |
| |||||||
| |||||||
1 | fee and any other documents
required by law, shall issue a new | ||||||
2 | certificate of title in the name of
the transferee as owner.
| ||||||
3 | (c) Any person, firm or corporation, who shall knowingly | ||||||
4 | possess,
buy, sell, exchange or give away, or offer to buy, | ||||||
5 | sell, exchange or
give away the certificate of title to any | ||||||
6 | motor vehicle which is a junk
or salvage, or who shall fail to | ||||||
7 | surrender the certificate of title to
the Secretary of State as | ||||||
8 | required under the provisions of this Section
and Section | ||||||
9 | 3-117.2, shall be guilty of Class 3 felony.
| ||||||
10 | (d) The Secretary of State shall file and retain for four | ||||||
11 | (4) years a
record of every surrendered certificate of title or | ||||||
12 | proof of ownership
accepted by the Secretary of State, the file | ||||||
13 | to be maintained so as to
permit the tracing of title of the | ||||||
14 | vehicle designated therein. Such filing and retention | ||||||
15 | requirements shall be in addition to and not in substitution | ||||||
16 | for the recordkeeping requirements set forth in Section 3-106 | ||||||
17 | of this Code, which recordkeeping requirements are not limited | ||||||
18 | to any period of time.
| ||||||
19 | (e) The Secretary of State, upon receipt of an application | ||||||
20 | for
corrected certificate of title, with the original title, | ||||||
21 | the required fee
and any other required documents, shall issue | ||||||
22 | a corrected certificate of
title in the name of the owner and | ||||||
23 | mail it to the first lienholder named in
it or, if none, to the | ||||||
24 | owner or owner's designee.
| ||||||
25 | (f) The Secretary of State, upon receipt of a certified | ||||||
26 | copy of a court
order awarding ownership to an applicant along |
| |||||||
| |||||||
1 | with an application for a
certificate of title and the required | ||||||
2 | fee, shall issue a certificate of title
to the applicant.
| ||||||
3 | (Source: P.A. 90-212, eff. 1-1-98.)
| ||||||
4 | (625 ILCS 5/3-116.1 new) | ||||||
5 | Sec. 3-116.1. Surrender of Manufacturer's Statement of | ||||||
6 | Origin to a manufactured home. | ||||||
7 | (a) The owner (all, if more than one), of a manufactured | ||||||
8 | home that is covered by a Manufacturer's Statement of Origin | ||||||
9 | and that is permanently affixed to real property as defined in | ||||||
10 | the Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
11 | Property and Severance Act, or which the owner intends to | ||||||
12 | permanently affix to real property as defined in the Conveyance | ||||||
13 | and Encumbrance of Manufactured Homes as Real Property and | ||||||
14 | Severance Act, may surrender the Manufacturer's Statement of | ||||||
15 | Origin to the manufactured home to the Secretary of State by | ||||||
16 | filing with the Secretary of State an application for surrender | ||||||
17 | of Manufacturer's Statement of Origin containing or | ||||||
18 | accompanied by: | ||||||
19 | (1) the name, residence, and mailing address of the | ||||||
20 | owner; | ||||||
21 | (2) a description of the manufactured home | ||||||
22 | including the name of the manufacturer, the make, the model | ||||||
23 | name, the model year, the dimensions, and the vehicle | ||||||
24 | identification number of the manufactured home and whether | ||||||
25 | it is new or used, and any other information the Secretary |
| |||||||
| |||||||
1 | of State requires; | ||||||
2 | (3) the date of purchase by the owner of the | ||||||
3 | manufactured home, the name and address of the person from | ||||||
4 | whom the home was acquired, and the names and addresses of | ||||||
5 | any security interest holders and lienholders in the order | ||||||
6 | of their apparent priority; | ||||||
7 | (4) a statement signed by the owner, stating either | ||||||
8 | (i) any facts or information known to the owner that could | ||||||
9 | reasonably affect the validity of the title to the | ||||||
10 | manufactured home or the existence or non-existence of a | ||||||
11 | security interest in or lien on it or (ii) that no such | ||||||
12 | facts or information are known to the owner; | ||||||
13 | (5) a certified copy of the affidavit of affixation | ||||||
14 | in accordance with the Conveyance and Encumbrance of | ||||||
15 | Manufactured Homes as Real Property and Severance; | ||||||
16 | (6) the original Manufacturer's Statement of | ||||||
17 | Origin; | ||||||
18 | (7) the name and mailing address of each owner of | ||||||
19 | the manufactured home or such owner's designee wishing to | ||||||
20 | receive written acknowledgment of surrender from the | ||||||
21 | Secretary of State; and | ||||||
22 | (8) any other information and documents the | ||||||
23 | Secretary of State reasonably requires to identify the | ||||||
24 | owner of the manufactured home and to enable him or her to | ||||||
25 | determine whether the owner satisfied the requirements of | ||||||
26 | the Conveyance and Encumbrance of Manufactured Homes as |
| |||||||
| |||||||
1 | Real Property and Severance Act and is entitled to | ||||||
2 | surrender the Manufacturer's Statement of Origin, and the | ||||||
3 | existence or non-existence of security interests in or | ||||||
4 | liens on the manufactured home. | ||||||
5 | (b) When satisfied as to the genuineness and regularity of | ||||||
6 | the surrender of a Manufacturer's Statement of Origin to a | ||||||
7 | manufactured home, payment of any applicable fees and upon | ||||||
8 | satisfaction of the requirements of subsection (a) of this | ||||||
9 | Section, the Secretary of State shall (i) cancel the | ||||||
10 | Manufacturer's Statement of Origin and update his or her | ||||||
11 | records in accordance with the provisions of Section 3-106 and | ||||||
12 | (ii) provide written acknowledgment of compliance with the | ||||||
13 | provisions of this Section to each person identified on the | ||||||
14 | application for surrender of Manufacturer's Statement of | ||||||
15 | Origin pursuant to subsection (a)(7) of this Section. | ||||||
16 | (c) Upon satisfaction of the requirements of this Section a | ||||||
17 | manufactured home shall be conveyed and encumbered as provided | ||||||
18 | in the Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
19 | Property and Severance Act. If the application to surrender a | ||||||
20 | Manufacturer's Statement of Origin is delivered to the | ||||||
21 | Secretary of State within 60 days of recording the related | ||||||
22 | affidavit of affixation with the recording officer in the | ||||||
23 | county in which the real property to which the manufactured | ||||||
24 | home is or shall be affixed and the application is thereafter | ||||||
25 | accepted by the Secretary of State, the requirements of this | ||||||
26 | Section shall be deemed satisfied as of the date the affidavit |
| |||||||
| |||||||
1 | of affixation is recorded. | ||||||
2 | (d) Upon written request by a person identified on the | ||||||
3 | application for surrender of Manufacturer's Statement of | ||||||
4 | Origin pursuant to subsection (a)(7) of this Section, the | ||||||
5 | Secretary of State shall provide written acknowledgment of | ||||||
6 | compliance with the provisions of this Section.
| ||||||
7 | (625 ILCS 5/3-116.2 new) | ||||||
8 | Sec. 3-116.2. Application for surrender of title. | ||||||
9 | (a) The owner (all, if more than one) of a manufactured | ||||||
10 | home that is covered by a certificate of title, including, if | ||||||
11 | applicable, a certificate of title issued in accordance with | ||||||
12 | subsection (b) of Section 3-109, and that is permanently | ||||||
13 | affixed to real property as defined in the Conveyance and | ||||||
14 | Encumbrance of Manufactured Homes as Real Property and | ||||||
15 | Severance Act, or which the owner intends to permanently affix | ||||||
16 | to real property as defined in the Conveyance and Encumbrance | ||||||
17 | of Manufactured Homes as Real Property and Severance Act, may | ||||||
18 | surrender the certificate of title to the manufactured home to | ||||||
19 | the Secretary of State by filing with the Secretary of State an | ||||||
20 | application for surrender of title containing or accompanied | ||||||
21 | by: | ||||||
22 | (1) the name, residence, and mailing address of the | ||||||
23 | owner; | ||||||
24 | (2) a description of the manufactured home including | ||||||
25 | the name of the manufacturer, the make, the model name, the |
| |||||||
| |||||||
1 | model year, the dimensions, and the vehicle identification | ||||||
2 | number or numbers of the manufactured home and whether it | ||||||
3 | is new or used and any other information the Secretary of | ||||||
4 | State requires; | ||||||
5 | (3) the date of purchase by the owner of the | ||||||
6 | manufactured home, the name and address of the person from | ||||||
7 | whom the home was acquired and the names and addresses of | ||||||
8 | any security interest holders and lienholders in the order | ||||||
9 | of their apparent priority; | ||||||
10 | (4) a statement signed by the owner, stating either, | ||||||
11 | (i) any facts or information known to the owner that could | ||||||
12 | reasonably affect the validity of the title to the | ||||||
13 | manufactured home or the existence or non-existence of a | ||||||
14 | security interest in or lien on it; or (ii) that no such | ||||||
15 | facts or information are known to the owner; | ||||||
16 | (5) a certified copy of the affidavit of affixation in | ||||||
17 | accordance with the Conveyance and Encumbrance of | ||||||
18 | Manufactured Homes as Real Property and Severance Act; | ||||||
19 | (6) the original certificate of title; | ||||||
20 | (7) the name and mailing address of each owner of the | ||||||
21 | manufactured home or such owner's designee wishing written | ||||||
22 | acknowledgment of surrender from the Secretary of State; | ||||||
23 | (8) a release of security interests (if any) pursuant | ||||||
24 | to Section 3-205 of this Code; and | ||||||
25 | (9) any other information and documents the Secretary | ||||||
26 | of State reasonably requires to identify the owner of the |
| |||||||
| |||||||
1 | manufactured home and to enable him or her to determine | ||||||
2 | whether the owner satisfied the requirements of the | ||||||
3 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
4 | Property and Severance Act and is entitled to surrender the | ||||||
5 | certificate of title and the existence or non-existence of | ||||||
6 | security interests in or liens on the manufactured home. | ||||||
7 | (b) The Secretary of State shall not accept for surrender a | ||||||
8 | certificate of title to a manufactured home unless and until | ||||||
9 | all security interests or liens perfected pursuant to Sections | ||||||
10 | 3-106 and 3-202 have been released. | ||||||
11 | (c) When satisfied as to its genuineness and regularity of | ||||||
12 | the surrender of a certificate of title to a manufactured home, | ||||||
13 | payment of any applicable fees and upon satisfaction of the | ||||||
14 | requirements of subsections (a) and (b) of this Section, the | ||||||
15 | Secretary of State shall (i) cancel the certificate of title | ||||||
16 | and update his or her records in accordance with the provisions | ||||||
17 | of Section 3-106 and (ii) provide written acknowledgment of | ||||||
18 | compliance with the provisions of this Section to each person | ||||||
19 | identified on the application for surrender of title pursuant | ||||||
20 | to subsection (a)(7) of this Section. | ||||||
21 | (d) Upon satisfaction of the requirements of this Section a | ||||||
22 | manufactured home shall be conveyed and encumbered as provided | ||||||
23 | in the Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
24 | Property and Severance Act. If the application to surrender a | ||||||
25 | certificate of title is delivered to the Secretary of State | ||||||
26 | within 60 days of recording the related affidavit of affixation |
| |||||||
| |||||||
1 | with the recording officer in the county in which the real | ||||||
2 | property to which the manufactured home is or shall be affixed, | ||||||
3 | and the application is thereafter accepted by the Secretary of | ||||||
4 | State, the requirements of this Section shall be deemed | ||||||
5 | satisfied as of the date the affidavit of affixation is | ||||||
6 | recorded. | ||||||
7 | (e) Upon written request by person identified on the | ||||||
8 | application for surrender of title pursuant to subsection | ||||||
9 | (a)(7) of this Section, the Secretary of State shall provide | ||||||
10 | written acknowledgment of compliance with the provisions of | ||||||
11 | this Section.
| ||||||
12 | (625 ILCS 5/3-116.3 new) | ||||||
13 | Sec. 3-116.3. Application for a certificate of title to a | ||||||
14 | severed manufactured home. | ||||||
15 | (a) Notwithstanding any other provision of law, where a | ||||||
16 | manufactured home has been permanently affixed to real | ||||||
17 | property, and an affidavit of affixation has been recorded as | ||||||
18 | part of the real property records in the county in which the | ||||||
19 | manufactured home is located in accordance with the Conveyance | ||||||
20 | and Encumbrance of Manufactured Homes as Real Property and | ||||||
21 | Severance Act, and where the manufactured home subsequently is | ||||||
22 | detached or severed from the real property, the owner (all, if | ||||||
23 | more than one) of the manufactured home shall, unless exempted | ||||||
24 | by other provisions of this Code, apply for a new certificate | ||||||
25 | of title by filing with the Secretary of State an application |
| |||||||
| |||||||
1 | for a certificate of title to a manufactured home, to be issued | ||||||
2 | in accordance with subsection (b) of Section 3-109, containing | ||||||
3 | or accompanied by: | ||||||
4 | (1) the name, residence, and mailing address of the | ||||||
5 | owner; | ||||||
6 | (2) a description of the manufactured home, including | ||||||
7 | the name of the manufacturer, the make, the model name, the | ||||||
8 | model year, the dimensions, and the vehicle identification | ||||||
9 | number or numbers of the manufactured home and whether it | ||||||
10 | is new or used, and any other information the Secretary of | ||||||
11 | State requires; | ||||||
12 | (3) a statement signed by the applicant, stating | ||||||
13 | either: (i) any facts or information known to the applicant | ||||||
14 | that could reasonably affect the validity of the title of | ||||||
15 | the manufactured home or the existence or non-existence of | ||||||
16 | any security interest in or lien on it or (ii) that no such | ||||||
17 | facts or information are known to the applicant; | ||||||
18 | (4) a certified copy of the affidavit of severance | ||||||
19 | provided in accordance with the Conveyance and Encumbrance | ||||||
20 | of Manufactured Homes as Real Property and Severance Act; | ||||||
21 | and | ||||||
22 | (5) any other information and documents the Secretary | ||||||
23 | of State reasonably requires. | ||||||
24 | (b) Upon satisfaction of the requirements of subsection (a) | ||||||
25 | of this Section and subsection (b) of Section 3-109, the | ||||||
26 | Secretary of State shall issue a new certificate of title |
| |||||||
| |||||||
1 | pursuant to subsection (b) of Section 3-109 and update his or | ||||||
2 | her records in accordance with the provisions of Section 3-106. | ||||||
3 | (c) Immediately upon satisfaction of the requirements of | ||||||
4 | this Section and thereafter, a manufactured home shall be | ||||||
5 | conveyed and encumbered as personal property. | ||||||
6 | (d) The satisfaction of the requirements of this Section | ||||||
7 | with respect to a manufactured home shall have no effect on the | ||||||
8 | manner in which such manufactured home is taxed pursuant to the | ||||||
9 | Property Tax Code or the Mobile Home Local Services Tax Act.
| ||||||
10 | (625 ILCS 5/3-202) (from Ch. 95 1/2, par. 3-202)
| ||||||
11 | Sec. 3-202. Perfection of security interest.
| ||||||
12 | (a) Unless excepted by Section 3-201, a security interest | ||||||
13 | in a
vehicle of a type for which a certificate of title is | ||||||
14 | required is not
valid against subsequent transferees or | ||||||
15 | lienholders of the vehicle
unless perfected as provided in this | ||||||
16 | Act. A purchase money security interest in a manufactured home | ||||||
17 | is perfected against the rights of judicial lien creditors and | ||||||
18 | execution creditors on and after the date such purchase money | ||||||
19 | security interest attaches.
| ||||||
20 | (b) A security interest is perfected by the delivery to the
| ||||||
21 | Secretary of State of the existing certificate of title, if | ||||||
22 | any, an
application for a certificate of title containing the | ||||||
23 | name and address
of the lienholder and the
required fee. The | ||||||
24 | security interest is perfected as of the time of
its creation | ||||||
25 | if the
delivery to the Secretary of State is completed within |
| |||||||
| |||||||
1 | 30 days after the
creation of the security interest or receipt | ||||||
2 | by the new lienholder of the
existing certificate of title from | ||||||
3 | a prior lienholder or licensed
dealer, otherwise as of the
time | ||||||
4 | of the delivery.
| ||||||
5 | (c) If a vehicle is subject to a security interest when | ||||||
6 | brought into
this State, the validity of the security interest | ||||||
7 | is determined by the
law of the jurisdiction where the vehicle | ||||||
8 | was when the security interest
attached, subject to the | ||||||
9 | following:
| ||||||
10 | 1. If the parties understood at the time the security | ||||||
11 | interest
attached that the vehicle would be kept in this | ||||||
12 | State and it was brought
into this State within 30 days | ||||||
13 | thereafter for purposes other than
transportation through | ||||||
14 | this State, the validity of the security interest
in this | ||||||
15 | State is determined by the law of this State.
| ||||||
16 | 2. If the security interest was perfected under the law | ||||||
17 | of the
jurisdiction where the vehicle was when the security | ||||||
18 | interest attached,
the following rules apply:
| ||||||
19 | (A) If the name of the lienholder is shown on an | ||||||
20 | existing
certificate of title issued by that | ||||||
21 | jurisdiction, his security interest
continues | ||||||
22 | perfected in this State.
| ||||||
23 | (B) If the name of the lienholder is not shown on | ||||||
24 | an existing
certificate of title issued by that | ||||||
25 | jurisdiction, a security interest
may be perfected by | ||||||
26 | the lienholder delivering to the Secretary of State
the |
| |||||||
| |||||||
1 | prescribed notice and by payment of the required fee. | ||||||
2 | Such security
interest is perfected as of the time of | ||||||
3 | delivery of the prescribed
notice and payment of the | ||||||
4 | required fee.
| ||||||
5 | 3. If the security interest was not perfected under the | ||||||
6 | law of the
jurisdiction where the vehicle was when the | ||||||
7 | security interest attached,
it may be perfected in this | ||||||
8 | State; in that case perfection dates from
the time of | ||||||
9 | perfection in this State.
| ||||||
10 | 4. A security interest may be perfected under paragraph | ||||||
11 | 3 of this
subsection either as provided in subsection (b) | ||||||
12 | or by the lienholder
delivering to the Secretary of State a | ||||||
13 | notice of security interest in
the form the Secretary of | ||||||
14 | State prescribes and the required fee.
| ||||||
15 | (d) Except as otherwise provided in Sections 3-116.1, | ||||||
16 | 3-116.2, 3-207, and the Conveyance and Encumbrance of | ||||||
17 | Manufactured Homes as Real Property and Severance Act, after a | ||||||
18 | certificate of title has been issued for a manufactured home | ||||||
19 | and as long as the manufactured home is subject to any security | ||||||
20 | interest perfected pursuant to this Section, the Secretary of | ||||||
21 | State shall not file an affidavit of affixation, nor cancel the | ||||||
22 | Manufacturer's Statement of Origin, nor revoke the certificate | ||||||
23 | of title, nor issue a certificate of title under Section 3-106, | ||||||
24 | and, in any event, the validity and priority of any security | ||||||
25 | interest perfected pursuant to this Section shall continue, | ||||||
26 | notwithstanding the provision of any other law. |
| |||||||
| |||||||
1 | (Source: P.A. 95-284, eff. 1-1-08.)
| ||||||
2 | (625 ILCS 5/3-205) (from Ch. 95 1/2, par. 3-205)
| ||||||
3 | Sec. 3-205. Release of security interest.
| ||||||
4 | (a) Within 21 days after receiving payment to satisfy a | ||||||
5 | security interest in a vehicle for
which the certificate of | ||||||
6 | title is in the possession of the lienholder,
he shall execute | ||||||
7 | a release of his security interest, and mail
or deliver the | ||||||
8 | certificate and release to the next lienholder named
therein, | ||||||
9 | or, if none, to the owner or any person who delivers to the
| ||||||
10 | lienholder an authorization from the owner to receive the | ||||||
11 | certificate.
If the payment is in the form of cash, a cashier's | ||||||
12 | check, or a
certified check, the number of days is reduced to | ||||||
13 | 10 business days.
If the owner desires a new certificate | ||||||
14 | reflecting no lien, the certificate
and release from the | ||||||
15 | lienholder may be submitted to the Secretary of State,
along | ||||||
16 | with the prescribed application and required fee, for issuance | ||||||
17 | of that
new certificate.
| ||||||
18 | (b) Within 21 days after receiving payment to satisfy a | ||||||
19 | security interest in a vehicle for
which the certificate of | ||||||
20 | title is in the possession of a prior
lienholder, the | ||||||
21 | lienholder whose security interest is satisfied shall
execute a | ||||||
22 | release and deliver the release to the owner or any
person who | ||||||
23 | delivers to the lienholder an authorization from the owner to
| ||||||
24 | receive it. If the payment is in the form of cash, a cashier's | ||||||
25 | check, or a
certified check, the number of days is reduced to |
| |||||||
| |||||||
1 | 10 business days. The
lienholder in possession of the | ||||||
2 | certificate of title
may either deliver the certificate to the | ||||||
3 | owner, or the person
authorized by him, for delivery to the | ||||||
4 | Secretary of State, or, upon
receipt of the release, may mail | ||||||
5 | or may deliver the certificate and release,
along with | ||||||
6 | prescribed application and require fee, to
the Secretary of | ||||||
7 | State, who shall issue a new certificate.
| ||||||
8 | (c) In addition to any other penalty, a lienholder who | ||||||
9 | fails to execute a
release of his or her security interest or | ||||||
10 | who fails to mail or deliver the
certificate and release within | ||||||
11 | the time limit provided in subsection (a) or (b)
is liable to | ||||||
12 | the person or entity that was supposed to receive the release | ||||||
13 | or
certificate for $150 plus reasonable attorney fees and court | ||||||
14 | costs.
An action under this Section may be brought in small | ||||||
15 | claims court or in any
other appropriate court.
| ||||||
16 | (d) The holder of a security interest in or a lien on a | ||||||
17 | manufactured home may deliver lien release documents to any | ||||||
18 | person to facilitate conveying or encumbering the manufactured | ||||||
19 | home. Any person receiving any such documents so delivered | ||||||
20 | holds the documents in trust for the security interest holder | ||||||
21 | or the lienholder. | ||||||
22 | (Source: P.A. 93-621, eff. 12-15-03.)
| ||||||
23 | (625 ILCS 5/3-207) (from Ch. 95 1/2, par. 3-207)
| ||||||
24 | Sec. 3-207. Exclusiveness of procedure.
| ||||||
25 | The method provided in this act of perfecting and giving |
| |||||||
| |||||||
1 | notice of
security interests subject to this act is exclusive. | ||||||
2 | Security interests
subject to this act are hereby exempted from | ||||||
3 | the provisions of law which
otherwise require or relate to the | ||||||
4 | recording or filing of instruments
creating or evidencing | ||||||
5 | security interests in vehicles including chattel
mortgages and | ||||||
6 | conditional sale agreements , provided, however, that with | ||||||
7 | respect to a manufactured home that is or will be permanently | ||||||
8 | affixed to real property, upon recordation of an affidavit of | ||||||
9 | affixation pursuant to the Conveyance and Encumbrance of | ||||||
10 | Manufactured Homes as Real Property and Severance Act and | ||||||
11 | satisfaction of the requirements of Sections 3-116.1 or | ||||||
12 | 3-116.2, as applicable, any perfection or termination of a | ||||||
13 | security interest with respect to such permanently affixed | ||||||
14 | property shall be governed by the laws applicable to real | ||||||
15 | property .
| ||||||
16 | (Source: P.A. 76-1586.)
| ||||||
17 | (625 ILCS 5/3-208) (from Ch. 95 1/2, par. 3-208)
| ||||||
18 | Sec. 3-208. Suspension or revocation of certificates.
| ||||||
19 | (a) The Secretary of State may suspend or revoke a | ||||||
20 | certificate of title,
upon notice and reasonable opportunity to | ||||||
21 | be heard in accordance with
Section 2-118, when authorized by | ||||||
22 | any other provision of law or if he
finds:
| ||||||
23 | 1. The certificate of title was fraudulently procured | ||||||
24 | or erroneously
issued, or
| ||||||
25 | 2. The vehicle has been scrapped, dismantled or |
| |||||||
| |||||||
1 | destroyed.
| ||||||
2 | Except as provided in Section 3-116.2, the Secretary of | ||||||
3 | State shall not suspend or revoke a certificate of title to a | ||||||
4 | manufactured home by reason of the fact that, at any time it | ||||||
5 | shall have become affixed in any manner to real property. | ||||||
6 | (b) Suspension or revocation of a certificate of title does | ||||||
7 | not, in
itself, affect the validity of a security interest | ||||||
8 | noted on it.
| ||||||
9 | (c) When the Secretary of State suspends or revokes a | ||||||
10 | certificate of
title, the owner or person in possession of it | ||||||
11 | shall, immediately upon
receiving notice of the suspension or | ||||||
12 | revocation, mail or deliver the
certificate to the Secretary of | ||||||
13 | State.
| ||||||
14 | (d) The Secretary of State may seize and impound any | ||||||
15 | certificate of
title which has been suspended or revoked.
| ||||||
16 | (Source: P.A. 76-1586.)
| ||||||
17 | Section 10-75. The Code of Civil Procedure is amended by | ||||||
18 | changing Section 15-1213 as follows:
| ||||||
19 | (735 ILCS 5/15-1213) (from Ch. 110, par. 15-1213)
| ||||||
20 | Sec. 15-1213. Real Estate. "Real estate" means land or any | ||||||
21 | estate or
interest in, over or under land (including minerals, | ||||||
22 | air rights,
structures, fixtures and other things which by | ||||||
23 | custom, usage or law pass
with a conveyance of land though not | ||||||
24 | described or mentioned in the contract
of sale or instrument of |
| |||||||
| |||||||
1 | conveyance). "Mortgaged real estate" means the
real estate | ||||||
2 | which is the subject of a mortgage. "Real Estate" includes a | ||||||
3 | manufactured home as defined in subdivision (53) of Section | ||||||
4 | 9-102 of the Uniform Commercial Code that is real property as | ||||||
5 | defined in the Conveyance and Encumbrance of Manufactured Homes | ||||||
6 | as Real Property and Severance Act.
| ||||||
7 | (Source: P.A. 84-1462.)
| ||||||
8 | Section 10-80. The Conveyances Act is amended by changing | ||||||
9 | Section 38 as follows:
| ||||||
10 | (765 ILCS 5/38) (from Ch. 30, par. 37)
| ||||||
11 | Sec. 38.
The term "real estate," as used in this act, shall | ||||||
12 | be construed as
co-extensive in meaning with "lands, tenements | ||||||
13 | and hereditaments," and as
embracing all chattels real. "Real | ||||||
14 | estate" and "real property" include a manufactured home as | ||||||
15 | defined in subdivision (53) of Section 9-102 of the Uniform | ||||||
16 | Commercial Code that is real property as defined in the | ||||||
17 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
18 | Property and Severance Act. This act shall not be construed so | ||||||
19 | as to
embrace last wills, except as herein expressly provided.
| ||||||
20 | (Source: P.A. 84-551.)
| ||||||
21 | Section 10-85. The Residential Real Property Disclosure | ||||||
22 | Act is amended by changing Section 5 as follows:
|
| |||||||
| |||||||
1 | (765 ILCS 77/5)
| ||||||
2 | Sec. 5. Definitions. As used in this Act, unless the | ||||||
3 | context otherwise
requires the
following terms have the meaning | ||||||
4 | given in this Section.
| ||||||
5 | "Residential real property" means real property improved | ||||||
6 | with not less
than one nor more than 4 residential dwelling | ||||||
7 | units; units in residential
cooperatives; or, condominium | ||||||
8 | units, including the limited common elements
allocated to the | ||||||
9 | exclusive use thereof that form an integral part of the
| ||||||
10 | condominium unit. The term includes a manufactured home as | ||||||
11 | defined in subdivision (53) of Section 9-102 of the Uniform | ||||||
12 | Commercial Code that is real property as defined in the | ||||||
13 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
14 | Property and Severance Act.
| ||||||
15 | "Seller" means every person or entity who is an owner, | ||||||
16 | beneficiary of a
trust, contract purchaser or lessee of a | ||||||
17 | ground lease,
who has an interest (legal or equitable) in | ||||||
18 | residential real property.
However, "seller" shall not include
| ||||||
19 | any person who has both (i) never occupied the residential real | ||||||
20 | property and
(ii) never had the management responsibility for | ||||||
21 | the residential real property
nor delegated such | ||||||
22 | responsibility for the residential real property to another
| ||||||
23 | person or entity.
| ||||||
24 | "Prospective buyer" means any person or entity negotiating | ||||||
25 | or offering
to become an owner or lessee of residential real | ||||||
26 | property by means of a
transfer for value to which this Act |
| |||||||
| |||||||
1 | applies.
| ||||||
2 | (Source: P.A. 90-383, eff. 1-1-98.)
| ||||||
3 | Section 10-90. The Mobile Home Landlord and Tenant Rights | ||||||
4 | Act is amended by changing Section 3 as follows:
| ||||||
5 | (765 ILCS 745/3) (from Ch. 80, par. 203)
| ||||||
6 | Sec. 3. Definitions. Unless otherwise expressly defined, | ||||||
7 | all terms in
this Act shall be construed to have their | ||||||
8 | ordinarily accepted meanings or
such meaning as the context | ||||||
9 | therein requires.
| ||||||
10 | (a) "Person" means any legal entity, including but not | ||||||
11 | limited to, an
individual, firm, partnership, association, | ||||||
12 | trust, joint stock company,
corporation or successor of any of | ||||||
13 | the foregoing.
| ||||||
14 | (b) "Manufactured home" means a factory-assembled, | ||||||
15 | completely integrated structure designed for permanent | ||||||
16 | habitation, with a permanent chassis, and so constructed as to | ||||||
17 | permit its transport, on wheels temporarily or permanently | ||||||
18 | attached to its frame, and is a movable or portable unit that | ||||||
19 | is (i) 8 body feet or more in width, (ii) 40 body feet or more | ||||||
20 | in length, and (iii) 320 or more square feet, constructed to be | ||||||
21 | towed on its own chassis (comprised of frame and wheels) from | ||||||
22 | the place of its construction to the location, or subsequent | ||||||
23 | locations, at which it is installed and set up according to the | ||||||
24 | manufacturer's instructions and connected to utilities for |
| |||||||
| |||||||
1 | year-round occupancy for use as a permanent habitation, and | ||||||
2 | designed and situated so as to permit its occupancy as a | ||||||
3 | dwelling place for one or more persons , and specifically | ||||||
4 | includes a "manufactured home" as defined in subdivision (53) | ||||||
5 | of Section 9-102 of the Uniform Commercial Code . The term shall | ||||||
6 | include units containing parts that may be folded, collapsed, | ||||||
7 | or telescoped when being towed and that may be expected to | ||||||
8 | provide additional cubic capacity, and that are designed to be | ||||||
9 | joined into one integral unit capable of being separated again | ||||||
10 | into the components for repeated towing. The term excludes | ||||||
11 | campers and recreational vehicles. The words "mobile home" and | ||||||
12 | "manufactured home" are synonymous for the purposes of this | ||||||
13 | Act.
| ||||||
14 | (c) "Mobile Home Park" or "Park" means a tract of land or 2 | ||||||
15 | contiguous tracts of land that contain sites with the necessary | ||||||
16 | utilities for 5 or more mobile homes or manufactured homes. A | ||||||
17 | mobile home park may be operated either free of charge or for | ||||||
18 | revenue purposes.
| ||||||
19 | (d) "Park Owner" means the owner of a mobile home park and | ||||||
20 | any person
authorized to exercise any aspect of the management | ||||||
21 | of the premises, including
any person who directly or | ||||||
22 | indirectly receives rents and has no obligation
to deliver the | ||||||
23 | whole of such receipts to another person.
| ||||||
24 | (e) "Tenant" means any person who occupies a mobile home | ||||||
25 | rental unit for
dwelling purposes or a lot on which he parks a | ||||||
26 | mobile home for an agreed
upon consideration.
|
| |||||||
| |||||||
1 | (f) "Rent" means any money or other consideration given for | ||||||
2 | the right
of use, possession and occupancy of property, be it a | ||||||
3 | lot, a mobile home, or both.
| ||||||
4 | (g) "Master antenna television service" means any and all | ||||||
5 | services
provided by or through the facilities of any closed | ||||||
6 | circuit coaxial cable
communication system, or any microwave or | ||||||
7 | similar transmission services
other than a community antenna | ||||||
8 | television system as defined in Section
11-42-11 of the | ||||||
9 | Illinois Municipal Code.
| ||||||
10 | (Source: P.A. 96-1477, eff. 1-1-11.)
| ||||||
11 | Section 10-95. The Mortgage Act is amended by adding | ||||||
12 | Section 13.1 as follows:
| ||||||
13 | (765 ILCS 905/13.1 new) | ||||||
14 | Sec. 13.1. Real estate; real property. As used in this Act, | ||||||
15 | "real estate" and "real property" include a manufactured home | ||||||
16 | as defined in subdivision (53) of Section 9-102 of the Uniform | ||||||
17 | Commercial Code that is real property as defined in the | ||||||
18 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
19 | Property and Severance Act.
| ||||||
20 | Section 10-100. The Joint Tenancy Act is amended by adding | ||||||
21 | Section 5 as follows:
| ||||||
22 | (765 ILCS 1005/5 new) |
| |||||||
| |||||||
1 | Sec. 5. Real estate; real property. As used in this Act, | ||||||
2 | "real estate" and "real property" include a manufactured home | ||||||
3 | as defined in subdivision (53) of Section 9-102 of the Uniform | ||||||
4 | Commercial Code that is real property as defined in the | ||||||
5 | Conveyance and Encumbrance of Manufactured Homes as Real | ||||||
6 | Property and Severance Act.
| ||||||
7 | Section 10-105. The Uniform Commercial Code is amended by | ||||||
8 | changing Section 9-102 as follows:
| ||||||
9 | (810 ILCS 5/9-102) (from Ch. 26, par. 9-102)
| ||||||
10 | Sec. 9-102. Definitions and index of definitions.
| ||||||
11 | (a) Article 9 definitions. In this Article:
| ||||||
12 | (1) "Accession" means goods that are physically united | ||||||
13 | with other
goods in such a manner that the identity of the | ||||||
14 | original goods is not lost.
| ||||||
15 | (2) "Account", except as used in "account for", means a | ||||||
16 | right to
payment of a monetary obligation, whether or not | ||||||
17 | earned by performance, (i) for
property that has been or is | ||||||
18 | to be sold, leased, licensed, assigned, or
otherwise
| ||||||
19 | disposed of, (ii) for services rendered or to be rendered, | ||||||
20 | (iii) for a policy
of
insurance issued or to be issued, | ||||||
21 | (iv) for a secondary obligation incurred or
to be
incurred, | ||||||
22 | (v) for energy provided or to be provided, (vi) for the use | ||||||
23 | or hire
of a
vessel under a charter or other contract, | ||||||
24 | (vii) arising out of the use of a
credit or
charge card or |
| |||||||
| |||||||
1 | information contained on or for use with the card, or | ||||||
2 | (viii) as
winnings in a lottery or other game of chance | ||||||
3 | operated or sponsored by a State,
governmental unit of a | ||||||
4 | State, or person licensed or authorized to operate the
game
| ||||||
5 | by a State or governmental unit of a State. The term | ||||||
6 | includes
health-care-insurance
receivables. The term does | ||||||
7 | not include (i) rights to payment evidenced by
chattel
| ||||||
8 | paper or an instrument, (ii) commercial tort claims, (iii) | ||||||
9 | deposit accounts,
(iv)
investment property, (v) | ||||||
10 | letter-of-credit rights or letters of credit, or (vi)
| ||||||
11 | rights to
payment for money or funds advanced or sold, | ||||||
12 | other than rights arising out of
the
use of a credit or | ||||||
13 | charge card or information contained on or for use with the
| ||||||
14 | card.
| ||||||
15 | (3) "Account debtor" means a person obligated on an | ||||||
16 | account, chattel
paper, or general intangible. The term | ||||||
17 | does not include persons obligated to
pay a
negotiable | ||||||
18 | instrument, even if the instrument constitutes part of | ||||||
19 | chattel
paper.
| ||||||
20 | (4) "Accounting", except as used in "accounting for", | ||||||
21 | means a record:
| ||||||
22 | (A) authenticated by a secured party;
| ||||||
23 | (B) indicating the aggregate unpaid secured | ||||||
24 | obligations as of a date
not more than 35 days earlier | ||||||
25 | or 35 days later than the date of the record; and
| ||||||
26 | (C) identifying the components of the obligations |
| |||||||
| |||||||
1 | in reasonable
detail.
| ||||||
2 | (5) "Agricultural lien" means an interest, other than a | ||||||
3 | security
interest,
in farm products:
| ||||||
4 | (A) which secures payment or performance of an | ||||||
5 | obligation for goods or services furnished in | ||||||
6 | connection with a debtor's
farming operation;
| ||||||
7 | (B) which is created by statute in favor of a | ||||||
8 | person that in the ordinary course of its business | ||||||
9 | furnished goods or
services to a debtor in connection | ||||||
10 | with a debtor's farming operation; and
| ||||||
11 | (C) whose effectiveness does not depend on the | ||||||
12 | person's possession
of the personal property.
| ||||||
13 | (6) "As-extracted collateral" means:
| ||||||
14 | (A) oil, gas, or other minerals that are subject to | ||||||
15 | a security interest
that:
| ||||||
16 | (i) is created by a debtor having an interest | ||||||
17 | in the minerals
before extraction; and
| ||||||
18 | (ii) attaches to the minerals as extracted; or
| ||||||
19 | (B) accounts arising out of the sale at the | ||||||
20 | wellhead or minehead of
oil, gas, or other minerals in | ||||||
21 | which the debtor had an interest before
extraction.
| ||||||
22 | (7) "Authenticate" means:
| ||||||
23 | (A) to sign; or
| ||||||
24 | (B) to execute or otherwise adopt a symbol, or | ||||||
25 | encrypt or similarly
process a record in whole or in | ||||||
26 | part, with the present intent of the
authenticating
|
| |||||||
| |||||||
1 | person to identify the person and adopt or accept a | ||||||
2 | record.
| ||||||
3 | (8) "Bank" means an organization that is engaged in the | ||||||
4 | business of
banking. The term includes savings banks, | ||||||
5 | savings and loan associations, credit
unions, and trust | ||||||
6 | companies.
| ||||||
7 | (9) "Cash proceeds" means proceeds that are money, | ||||||
8 | checks, deposit
accounts, or the like.
| ||||||
9 | (10) "Certificate of title" means a certificate of | ||||||
10 | title with respect to
which a statute provides for the | ||||||
11 | security interest in question to be indicated on the
| ||||||
12 | certificate as a condition or result of the security | ||||||
13 | interest's obtaining
priority over
the rights of a lien | ||||||
14 | creditor with respect to the collateral.
| ||||||
15 | (11) "Chattel paper" means a record or records that | ||||||
16 | evidence both a
monetary obligation and a security interest | ||||||
17 | in specific goods, a security
interest in
specific goods | ||||||
18 | and software used in the goods, a security interest in | ||||||
19 | specific
goods and license of software used in the goods, a | ||||||
20 | lease of specific goods,
or a lease of specified goods and | ||||||
21 | a license of
software
used in the goods. In this paragraph, | ||||||
22 | "monetary obligation" means a monetary
obligation secured | ||||||
23 | by the goods or owed under a lease of the goods and | ||||||
24 | includes
a monetary obligation with respect to software | ||||||
25 | used in the goods. The term
does not include (i) charters | ||||||
26 | or other contracts involving the use or hire of a
vessel or |
| |||||||
| |||||||
1 | (ii) records that evidence a right to payment arising out | ||||||
2 | of the use
of a credit or charge card or information | ||||||
3 | contained on or for use with the
card. If a transaction is | ||||||
4 | evidenced by records that include an instrument or
series | ||||||
5 | of
instruments, the group of records taken together
| ||||||
6 | constitutes chattel paper.
| ||||||
7 | (12) "Collateral" means the property subject to a | ||||||
8 | security interest or
agricultural lien. The term includes:
| ||||||
9 | (A) proceeds to which a security interest | ||||||
10 | attaches;
| ||||||
11 | (B) accounts, chattel paper, payment intangibles, | ||||||
12 | and promissory
notes that have been sold; and
| ||||||
13 | (C) goods that are the subject of a consignment.
| ||||||
14 | (13) "Commercial tort claim" means a claim arising in | ||||||
15 | tort with respect
to which:
| ||||||
16 | (A) the claimant is an organization; or
| ||||||
17 | (B) the claimant is an individual and the claim:
| ||||||
18 | (i) arose in the course of the claimant's | ||||||
19 | business or profession;
and
| ||||||
20 | (ii) does not include damages arising out of | ||||||
21 | personal injury to or
the death of an individual.
| ||||||
22 | (14) "Commodity account" means an account maintained | ||||||
23 | by a
commodity intermediary in which a commodity contract | ||||||
24 | is carried for a commodity
customer.
| ||||||
25 | (15) "Commodity contract" means a commodity futures | ||||||
26 | contract, an
option on a commodity futures contract, a |
| |||||||
| |||||||
1 | commodity option, or another contract if
the contract or | ||||||
2 | option is:
| ||||||
3 | (A) traded on or subject to the rules of a board of | ||||||
4 | trade that has been
designated as a contract market for | ||||||
5 | such a contract pursuant to federal commodities
laws; | ||||||
6 | or
| ||||||
7 | (B) traded on a foreign commodity board of trade, | ||||||
8 | exchange, or
market, and is carried on the books of a | ||||||
9 | commodity intermediary for a commodity
customer.
| ||||||
10 | (16) "Commodity customer" means a person for which a | ||||||
11 | commodity
intermediary carries a commodity contract on its | ||||||
12 | books.
| ||||||
13 | (17) "Commodity intermediary" means a person that:
| ||||||
14 | (A) is registered as a futures commission merchant | ||||||
15 | under federal
commodities law; or
| ||||||
16 | (B) in the ordinary course of its business provides | ||||||
17 | clearance or
settlement services for a board of trade | ||||||
18 | that has been designated as a contract
market pursuant | ||||||
19 | to federal commodities law.
| ||||||
20 | (18) "Communicate" means:
| ||||||
21 | (A) to send a written or other tangible record;
| ||||||
22 | (B) to transmit a record by any means agreed upon | ||||||
23 | by the persons
sending and receiving the record; or
| ||||||
24 | (C) in the case of transmission of a record to or | ||||||
25 | by a filing office, to
transmit a record by any means | ||||||
26 | prescribed by filing-office rule.
|
| |||||||
| |||||||
1 | (19) "Consignee" means a merchant to which goods are | ||||||
2 | delivered in a
consignment.
| ||||||
3 | (20) "Consignment" means a transaction, regardless of | ||||||
4 | its form, in
which a person delivers goods to a merchant | ||||||
5 | for the purpose of sale and:
| ||||||
6 | (A) the merchant:
| ||||||
7 | (i) deals in goods of that kind under a name | ||||||
8 | other than the name
of the person making delivery;
| ||||||
9 | (ii) is not an auctioneer; and
| ||||||
10 | (iii) is not generally known by its creditors | ||||||
11 | to be substantially
engaged in selling the goods of | ||||||
12 | others;
| ||||||
13 | (B) with respect to each delivery, the aggregate | ||||||
14 | value of the goods is
$1,000 or more at the time of | ||||||
15 | delivery;
| ||||||
16 | (C) the goods are not consumer goods immediately | ||||||
17 | before delivery;
and
| ||||||
18 | (D) the transaction does not create a security | ||||||
19 | interest that secures an
obligation.
| ||||||
20 | (21) "Consignor" means a person that delivers goods to | ||||||
21 | a consignee in
a consignment.
| ||||||
22 | (22) "Consumer debtor" means a debtor in a consumer | ||||||
23 | transaction.
| ||||||
24 | (23) "Consumer goods" means goods that are used or | ||||||
25 | bought for use
primarily for personal, family, or household | ||||||
26 | purposes.
|
| |||||||
| |||||||
1 | (24) "Consumer-goods transaction" means a consumer | ||||||
2 | transaction in
which:
| ||||||
3 | (A) an individual incurs an obligation primarily | ||||||
4 | for personal, family,
or household purposes; and
| ||||||
5 | (B) a security interest in consumer goods secures | ||||||
6 | the obligation.
| ||||||
7 | (25) "Consumer obligor" means an obligor who is an | ||||||
8 | individual and
who incurred the obligation as part of a | ||||||
9 | transaction entered into primarily for
personal, family, | ||||||
10 | or household purposes.
| ||||||
11 | (26) "Consumer transaction" means a transaction in | ||||||
12 | which (i) an
individual incurs an obligation primarily for | ||||||
13 | personal, family, or household
purposes, (ii) a security | ||||||
14 | interest secures the obligation, and (iii) the collateral | ||||||
15 | is held
or acquired primarily for personal, family, or | ||||||
16 | household purposes. The term
includes consumer-goods | ||||||
17 | transactions.
| ||||||
18 | (27) "Continuation statement" means an amendment of a | ||||||
19 | financing
statement which:
| ||||||
20 | (A) identifies, by its file number, the initial | ||||||
21 | financing statement to
which it relates; and
| ||||||
22 | (B) indicates that it is a continuation statement | ||||||
23 | for, or that it is filed
to continue the effectiveness | ||||||
24 | of, the identified financing statement.
| ||||||
25 | (28) "Debtor" means:
| ||||||
26 | (A) a person having an interest, other than a |
| |||||||
| |||||||
1 | security interest or other
lien, in the collateral, | ||||||
2 | whether or not the person is an obligor;
| ||||||
3 | (B) a seller of accounts, chattel paper, payment | ||||||
4 | intangibles, or
promissory notes; or
| ||||||
5 | (C) a consignee.
| ||||||
6 | (29) "Deposit account" means a demand, time, savings, | ||||||
7 | passbook,
nonnegotiable certificates of deposit,
| ||||||
8 | uncertificated certificates of deposit, nontransferrable | ||||||
9 | certificates of
deposit, or
similar account maintained | ||||||
10 | with a bank. The term does not include investment
property | ||||||
11 | or accounts evidenced by an instrument.
| ||||||
12 | (30) "Document" means a document of title or a receipt | ||||||
13 | of the type
described in Section 7-201(b).
| ||||||
14 | (31) "Electronic chattel paper" means chattel paper | ||||||
15 | evidenced by a
record or records consisting of information | ||||||
16 | stored in an electronic medium.
| ||||||
17 | (32) "Encumbrance" means a right, other than an | ||||||
18 | ownership interest, in
real property. The term includes | ||||||
19 | mortgages and other liens on real property.
| ||||||
20 | (33) "Equipment" means goods other than inventory, | ||||||
21 | farm products, or
consumer goods.
| ||||||
22 | (34) "Farm products" means goods, other than standing | ||||||
23 | timber, with
respect to which the debtor is engaged in a | ||||||
24 | farming operation and which are:
| ||||||
25 | (A) crops grown, growing, or to be grown, | ||||||
26 | including:
|
| |||||||
| |||||||
1 | (i) crops produced on trees, vines, and | ||||||
2 | bushes; and
| ||||||
3 | (ii) aquatic goods produced in aquacultural | ||||||
4 | operations;
| ||||||
5 | (B) livestock, born or unborn, including aquatic | ||||||
6 | goods produced in
aquacultural operations;
| ||||||
7 | (C) supplies used or produced in a farming | ||||||
8 | operation; or
| ||||||
9 | (D) products of crops or livestock in their | ||||||
10 | unmanufactured states.
| ||||||
11 | (35) "Farming operation" means raising, cultivating, | ||||||
12 | propagating,
fattening, grazing, or any other farming, | ||||||
13 | livestock, or aquacultural operation.
| ||||||
14 | (36) "File number" means the number assigned to an | ||||||
15 | initial financing
statement pursuant to Section 9-519(a).
| ||||||
16 | (37) "Filing office" means an office designated in | ||||||
17 | Section 9-501 as the
place to file a financing statement.
| ||||||
18 | (38) "Filing-office rule" means a rule adopted | ||||||
19 | pursuant to Section
9-526.
| ||||||
20 | (39) "Financing statement" means a record or records | ||||||
21 | composed of an
initial financing statement and any filed | ||||||
22 | record relating to the initial financing
statement.
| ||||||
23 | (40) "Fixture filing" means the filing of a financing | ||||||
24 | statement covering
goods that are or are to become fixtures | ||||||
25 | and satisfying Section 9-502(a) and (b).
The term includes | ||||||
26 | the filing of a financing statement covering goods of a
|
| |||||||
| |||||||
1 | transmitting utility which are or are to become fixtures.
| ||||||
2 | (41) "Fixtures" means goods that have become so related | ||||||
3 | to particular
real property that an interest in them arises | ||||||
4 | under real property law.
| ||||||
5 | (42) "General intangible" means any personal property, | ||||||
6 | including
things in action, other than accounts, chattel | ||||||
7 | paper, commercial tort claims, deposit
accounts, | ||||||
8 | documents, goods, instruments, investment property, | ||||||
9 | letter-of-credit
rights, letters of credit, money, and | ||||||
10 | oil, gas, or other minerals before extraction.
The term | ||||||
11 | includes payment intangibles and software.
| ||||||
12 | (43) "Good faith" means honesty in fact and the | ||||||
13 | observance of
reasonable commercial standards of fair | ||||||
14 | dealing.
| ||||||
15 | (44) "Goods" means all things that are movable when a | ||||||
16 | security interest
attaches. The term includes (i) | ||||||
17 | fixtures, (ii) standing timber that is to be cut and
| ||||||
18 | removed under a conveyance or contract for sale, (iii) the | ||||||
19 | unborn young of animals,
(iv) crops grown, growing, or to | ||||||
20 | be grown, even if the crops are produced on trees,
vines, | ||||||
21 | or bushes, and (v) manufactured homes. The term also | ||||||
22 | includes a computer
program embedded in goods and any | ||||||
23 | supporting information provided in
connection with a | ||||||
24 | transaction relating to the program if (i) the program is
| ||||||
25 | associated with the goods in such a manner that it | ||||||
26 | customarily is considered part of
the goods, or (ii) by |
| |||||||
| |||||||
1 | becoming the owner of the goods, a person acquires a right | ||||||
2 | to
use the program in connection with the goods. The term | ||||||
3 | does not include a
computer program embedded in goods that | ||||||
4 | consist solely of the medium in which
the program is | ||||||
5 | embedded. The term also does not include accounts, chattel | ||||||
6 | paper,
commercial tort claims, deposit accounts, | ||||||
7 | documents, general intangibles,
instruments, investment | ||||||
8 | property, letter-of-credit rights, letters of credit, | ||||||
9 | money, or
oil, gas, or other minerals before extraction.
| ||||||
10 | (45) "Governmental unit" means a subdivision, agency, | ||||||
11 | department,
county, parish, municipality, or other unit of | ||||||
12 | the government of the United States, a
State, or a foreign | ||||||
13 | country. The term includes an organization having a | ||||||
14 | separate
corporate existence if the organization is | ||||||
15 | eligible to issue debt on which interest is
exempt from | ||||||
16 | income taxation under the laws of the United States.
| ||||||
17 | (46) "Health-care-insurance receivable" means an | ||||||
18 | interest in or claim
under a policy of insurance which is a | ||||||
19 | right to payment of a monetary
obligation for
health-care | ||||||
20 | goods or services provided.
| ||||||
21 | (47) "Instrument" means a negotiable instrument or any | ||||||
22 | other writing
that evidences a right to the payment of a | ||||||
23 | monetary obligation, is not itself a
security agreement or | ||||||
24 | lease, and is of a type that in ordinary course of
business | ||||||
25 | is
transferred by delivery with any necessary indorsement | ||||||
26 | or assignment. The term
does not include (i) investment |
| |||||||
| |||||||
1 | property, (ii) letters of credit,
(iii) nonnegotiable
| ||||||
2 | certificates of deposit, (iv) uncertificated certificates | ||||||
3 | of deposit, (v)
nontransferrable certificates of deposit, | ||||||
4 | or (vi)
writings that
evidence a right to payment arising | ||||||
5 | out of the use of a credit or charge card
or
information | ||||||
6 | contained on or for use with the card.
| ||||||
7 | (48) "Inventory" means goods, other than farm | ||||||
8 | products, which:
| ||||||
9 | (A) are leased by a person as lessor;
| ||||||
10 | (B) are held by a person for sale or lease or to be | ||||||
11 | furnished under a
contract of service;
| ||||||
12 | (C) are furnished by a person under a contract of | ||||||
13 | service; or
| ||||||
14 | (D) consist of raw materials, work in process, or | ||||||
15 | materials used or
consumed in a business.
| ||||||
16 | (49) "Investment property" means a security, whether | ||||||
17 | certificated or
uncertificated, security entitlement, | ||||||
18 | securities account, commodity contract, or
commodity | ||||||
19 | account.
| ||||||
20 | (50) "Jurisdiction of organization", with respect to a | ||||||
21 | registered
organization, means the jurisdiction under | ||||||
22 | whose law the organization is organized.
| ||||||
23 | (51) "Letter-of-credit right" means a right to payment | ||||||
24 | or performance
under a letter of credit, whether or not the | ||||||
25 | beneficiary has demanded or is at the
time entitled to | ||||||
26 | demand payment or performance. The term does not include |
| |||||||
| |||||||
1 | the
right of a beneficiary to demand payment or performance | ||||||
2 | under a letter of credit.
| ||||||
3 | (52) "Lien creditor" means:
| ||||||
4 | (A) a creditor that has acquired a lien on the | ||||||
5 | property involved by
attachment, levy, or the like;
| ||||||
6 | (B) an assignee for benefit of creditors from the | ||||||
7 | time of assignment;
| ||||||
8 | (C) a trustee in bankruptcy from the date of the | ||||||
9 | filing of the petition;
or
| ||||||
10 | (D) a receiver in equity from the time of | ||||||
11 | appointment.
| ||||||
12 | (53) "Manufactured home" means a structure, | ||||||
13 | transportable in one or more sections, which, in the | ||||||
14 | traveling mode, is eight body feet or more in width or 40 | ||||||
15 | body feet or more in
length, or, when erected on site, is | ||||||
16 | 320 or more square feet, and which is built on a permanent | ||||||
17 | chassis and designed to be used as a dwelling with or | ||||||
18 | without a permanent foundation when connected to the | ||||||
19 | required utilities, and includes the plumbing, heating, | ||||||
20 | air-conditioning, and
electrical systems contained | ||||||
21 | therein. The term includes any structure that meets all of | ||||||
22 | the requirements of this paragraph except the size | ||||||
23 | requirements and with respect to which the manufacturer | ||||||
24 | voluntarily files a certification required by the United | ||||||
25 | States Secretary of Housing and Urban Development and | ||||||
26 | complies with the standards established under Title 42 of |
| |||||||
| |||||||
1 | the United States Code factory-assembled, completely | ||||||
2 | integrated structure designed for permanent habitation, | ||||||
3 | with a permanent chassis, and so constructed as to permit | ||||||
4 | its transport, on wheels temporarily or permanently | ||||||
5 | attached to its frame, and is a movable or portable unit | ||||||
6 | that is (i) 8 body feet or more in width, (ii) 40 body feet | ||||||
7 | or more in length, and (iii) 320 or more square feet, | ||||||
8 | constructed to be towed on its own chassis (comprised of | ||||||
9 | frame and wheels) from the place of its construction to the | ||||||
10 | location, or subsequent locations, at which it is installed | ||||||
11 | and set up according to the manufacturer's instructions and | ||||||
12 | connected to utilities for year-round occupancy for use as | ||||||
13 | a permanent habitation, and designed and situated so as to | ||||||
14 | permit its occupancy as a dwelling place for one or more | ||||||
15 | persons. The term shall include units containing parts that | ||||||
16 | may be folded, collapsed, or telescoped when being towed | ||||||
17 | and that may be expected to provide additional cubic | ||||||
18 | capacity, and that are designed to be joined into one | ||||||
19 | integral unit capable of being separated again into the | ||||||
20 | components for repeated towing. The term shall exclude | ||||||
21 | campers and recreational vehicles .
| ||||||
22 | (54) "Manufactured-home transaction" means a secured | ||||||
23 | transaction:
| ||||||
24 | (A) that creates a purchase-money security | ||||||
25 | interest in a
manufactured home, other than a | ||||||
26 | manufactured home held as inventory; or
|
| |||||||
| |||||||
1 | (B) in which a manufactured home, other than a | ||||||
2 | manufactured home
held as inventory, is the primary | ||||||
3 | collateral.
| ||||||
4 | (55) "Mortgage" means a consensual interest in real | ||||||
5 | property, including
fixtures, which secures payment or | ||||||
6 | performance of an obligation.
| ||||||
7 | (56) "New debtor" means a person that becomes bound as | ||||||
8 | debtor under
Section 9-203(d) by a security agreement | ||||||
9 | previously entered into by another
person.
| ||||||
10 | (57) "New value" means (i) money, (ii) money's worth in | ||||||
11 | property,
services, or new credit, or (iii) release by a | ||||||
12 | transferee of an interest in property
previously | ||||||
13 | transferred to the transferee. The term does not include an | ||||||
14 | obligation
substituted for another obligation.
| ||||||
15 | (58) "Noncash proceeds" means proceeds other than cash | ||||||
16 | proceeds.
| ||||||
17 | (59) "Obligor" means a person that, with respect to an | ||||||
18 | obligation
secured by a security interest in or an | ||||||
19 | agricultural lien on the collateral,
(i) owes
payment or | ||||||
20 | other performance of the obligation, (ii) has provided | ||||||
21 | property
other
than the collateral to secure payment or | ||||||
22 | other performance of the obligation,
or (iii)
is otherwise | ||||||
23 | accountable in whole or in part for payment or other | ||||||
24 | performance
of
the obligation. The term does not include | ||||||
25 | issuers or nominated persons under a
letter of credit.
| ||||||
26 | (60) "Original debtor",
except as used in Section
|
| |||||||
| |||||||
1 | 9-310(c), means
a person that, as debtor, entered into a
| ||||||
2 | security agreement to which a new debtor has become bound | ||||||
3 | under Section
9-203(d).
| ||||||
4 | (61) "Payment intangible" means a general intangible | ||||||
5 | under which the
account debtor's principal obligation is a | ||||||
6 | monetary obligation.
| ||||||
7 | (62) "Person related to", with respect to an | ||||||
8 | individual, means:
| ||||||
9 | (A) the spouse of the individual;
| ||||||
10 | (B) a brother, brother-in-law, sister, or | ||||||
11 | sister-in-law of the
individual;
| ||||||
12 | (C) an ancestor or lineal descendant of the | ||||||
13 | individual or the
individual's spouse; or
| ||||||
14 | (D) any other relative, by blood or marriage, of | ||||||
15 | the individual or the
individual's spouse who shares | ||||||
16 | the same home with the individual.
| ||||||
17 | (63) "Person related to", with respect to an | ||||||
18 | organization, means:
| ||||||
19 | (A) a person directly or indirectly controlling, | ||||||
20 | controlled by, or
under common control with the | ||||||
21 | organization;
| ||||||
22 | (B) an officer or director of, or a person | ||||||
23 | performing similar
functions with respect to, the | ||||||
24 | organization;
| ||||||
25 | (C) an officer or director of, or a person | ||||||
26 | performing similar
functions with respect to, a person |
| |||||||
| |||||||
1 | described in subparagraph (A);
| ||||||
2 | (D) the spouse of an individual described in | ||||||
3 | subparagraph (A), (B),
or (C); or
| ||||||
4 | (E) an individual who is related by blood or | ||||||
5 | marriage to an
individual described in subparagraph | ||||||
6 | (A), (B), (C), or (D) and shares the same
home with the | ||||||
7 | individual.
| ||||||
8 | (64) "Proceeds", except as used in Section
9-609(b), | ||||||
9 | means
the following property:
| ||||||
10 | (A) whatever is acquired upon the sale, lease, | ||||||
11 | license, exchange, or
other disposition of collateral;
| ||||||
12 | (B) whatever is collected on, or distributed on | ||||||
13 | account of, collateral;
| ||||||
14 | (C) rights arising out of collateral;
| ||||||
15 | (D) to the extent of the value of collateral, | ||||||
16 | claims arising out of the
loss, nonconformity, or | ||||||
17 | interference with the use of, defects or infringement
| ||||||
18 | of
rights in, or damage to, the collateral; or
| ||||||
19 | (E) to the extent of the value of collateral and to | ||||||
20 | the extent payable
to the debtor or the secured party, | ||||||
21 | insurance payable by reason of the loss or
| ||||||
22 | nonconformity of, defects or infringement of rights | ||||||
23 | in, or damage to, the
collateral.
| ||||||
24 | (65) "Promissory note" means an instrument that | ||||||
25 | evidences a promise
to pay a monetary obligation, does not | ||||||
26 | evidence an order to pay, and does not
contain an |
| |||||||
| |||||||
1 | acknowledgment by a bank that the bank has received for | ||||||
2 | deposit a
sum
of money or funds.
| ||||||
3 | (66) "Proposal" means a record authenticated by a | ||||||
4 | secured party which
includes the terms on which the secured | ||||||
5 | party is willing to accept collateral
in full
or partial | ||||||
6 | satisfaction of the obligation it secures pursuant to | ||||||
7 | Sections
9-620, 9-621,
and 9-622.
| ||||||
8 | (67) "Public-finance transaction" means a secured | ||||||
9 | transaction in
connection with which:
| ||||||
10 | (A) debt securities are issued;
| ||||||
11 | (B) all or a portion of the securities issued have | ||||||
12 | an initial stated
maturity of at least 20 years; and
| ||||||
13 | (C) the debtor, obligor, secured party, account | ||||||
14 | debtor or other person
obligated on collateral, | ||||||
15 | assignor or assignee of a secured obligation, or
| ||||||
16 | assignor or
assignee of a security interest is a State | ||||||
17 | or a governmental unit of a State.
| ||||||
18 | (68) "Pursuant to commitment", with respect to an | ||||||
19 | advance made or
other value given by a secured party, means | ||||||
20 | pursuant to the secured party's
obligation, whether or not | ||||||
21 | a subsequent event of default or other event not
within
the | ||||||
22 | secured party's control has relieved or may relieve the | ||||||
23 | secured party from
its
obligation.
| ||||||
24 | (69) "Record", except as used in "for record", "of | ||||||
25 | record", "record or
legal title", and "record owner", means | ||||||
26 | information that is inscribed on a
tangible
medium or which |
| |||||||
| |||||||
1 | is stored in an electronic or other medium and is | ||||||
2 | retrievable
in
perceivable form.
| ||||||
3 | (70) "Registered organization" means an organization | ||||||
4 | organized solely
under the law of a single State or the | ||||||
5 | United States and as to which the State
or the
United | ||||||
6 | States must maintain a public record showing the | ||||||
7 | organization to have
been
organized.
| ||||||
8 | (71) "Secondary obligor" means an obligor to the extent | ||||||
9 | that:
| ||||||
10 | (A) the obligor's obligation is secondary; or
| ||||||
11 | (B) the obligor has a right of recourse with | ||||||
12 | respect to an obligation
secured by collateral against | ||||||
13 | the debtor, another obligor, or property of
either.
| ||||||
14 | (72) "Secured party" means:
| ||||||
15 | (A) a person in whose favor a security interest is | ||||||
16 | created or provided
for under a security agreement, | ||||||
17 | whether or not any obligation to be secured is
| ||||||
18 | outstanding;
| ||||||
19 | (B) a person that holds an agricultural lien;
| ||||||
20 | (C) a consignor;
| ||||||
21 | (D) a person to which accounts, chattel paper, | ||||||
22 | payment intangibles,
or promissory notes have been | ||||||
23 | sold;
| ||||||
24 | (E) a trustee, indenture trustee, agent, | ||||||
25 | collateral agent, or other
representative in whose | ||||||
26 | favor a security interest or agricultural lien is
|
| |||||||
| |||||||
1 | created or
provided for; or
| ||||||
2 | (F) a person that holds a security interest arising | ||||||
3 | under Section
2-401, 2-505, 2-711(3), 2A-508(5), | ||||||
4 | 4-210, or 5-118.
| ||||||
5 | (73) "Security agreement" means an agreement that | ||||||
6 | creates or provides
for a security interest.
| ||||||
7 | (74) "Send", in connection with a record or | ||||||
8 | notification, means:
| ||||||
9 | (A) to deposit in the mail, deliver for | ||||||
10 | transmission, or transmit by
any other usual means of | ||||||
11 | communication, with postage or cost of transmission
| ||||||
12 | provided for, addressed to any address reasonable | ||||||
13 | under the circumstances; or
| ||||||
14 | (B) to cause the record or notification to be | ||||||
15 | received within the time
that it would have been | ||||||
16 | received if properly sent under subparagraph (A).
| ||||||
17 | (75) "Software" means a computer program and any | ||||||
18 | supporting
information provided in connection with a | ||||||
19 | transaction relating to the program.
The
term does not | ||||||
20 | include a computer program that is included in the | ||||||
21 | definition of
goods.
| ||||||
22 | (76) "State" means a State of the United States, the | ||||||
23 | District of
Columbia, Puerto Rico, the United States Virgin | ||||||
24 | Islands, or any territory or
insular
possession subject to | ||||||
25 | the jurisdiction of the United States.
| ||||||
26 | (77) "Supporting obligation" means a letter-of-credit |
| |||||||
| |||||||
1 | right or secondary
obligation that supports the payment or | ||||||
2 | performance of an account, chattel
paper, a
document, a | ||||||
3 | general intangible, an instrument, or investment property.
| ||||||
4 | (78) "Tangible chattel paper" means chattel paper | ||||||
5 | evidenced by a
record or records consisting of information | ||||||
6 | that is inscribed on a tangible
medium.
| ||||||
7 | (79) "Termination statement" means an amendment of a | ||||||
8 | financing
statement which:
| ||||||
9 | (A) identifies, by its file number, the initial | ||||||
10 | financing statement to
which it relates; and
| ||||||
11 | (B) indicates either that it is a termination | ||||||
12 | statement or that the
identified financing statement | ||||||
13 | is no longer effective.
| ||||||
14 | (80) "Transmitting utility" means a person primarily | ||||||
15 | engaged in the
business of:
| ||||||
16 | (A) operating a railroad, subway, street railway, | ||||||
17 | or trolley bus;
| ||||||
18 | (B) transmitting communications electrically, | ||||||
19 | electromagnetically,
or by light;
| ||||||
20 | (C) transmitting goods by pipeline or sewer; or
| ||||||
21 | (D) transmitting or producing and transmitting | ||||||
22 | electricity, steam,
gas, or water.
| ||||||
23 | (b) Definitions in other Articles. "Control" as provided in | ||||||
24 | Section 7-106 and the
following definitions in other
Articles | ||||||
25 | apply to this Article:
| ||||||
26 | "Applicant". Section 5-102.
|
| |||||||
| |||||||
1 | "Beneficiary". Section 5-102.
| ||||||
2 | "Broker". Section 8-102.
| ||||||
3 | "Certificated security". Section 8-102.
| ||||||
4 | "Check". Section 3-104.
| ||||||
5 | "Clearing corporation". Section 8-102.
| ||||||
6 | "Contract for sale". Section 2-106.
| ||||||
7 | "Customer". Section 4-104.
| ||||||
8 | "Entitlement holder". Section 8-102.
| ||||||
9 | "Financial asset". Section 8-102.
| ||||||
10 | "Holder in due course". Section 3-302.
| ||||||
11 | "Issuer" (with respect to a letter of
credit or | ||||||
12 | letter-of-credit right). Section 5-102.
| ||||||
13 | "Issuer" (with respect to a security). Section 8-201.
| ||||||
14 | "Issuer" (with respect to documents of title). Section | ||||||
15 | 7-102.
| ||||||
16 | "Lease". Section 2A-103.
| ||||||
17 | "Lease agreement". Section 2A-103.
| ||||||
18 | "Lease contract". Section 2A-103.
| ||||||
19 | "Leasehold interest". Section 2A-103.
| ||||||
20 | "Lessee". Section 2A-103.
| ||||||
21 | "Lessee in ordinary course of business". Section 2A-103.
| ||||||
22 | "Lessor". Section 2A-103.
| ||||||
23 | "Lessor's residual interest". Section 2A-103.
| ||||||
24 | "Letter of credit". Section 5-102.
| ||||||
25 | "Merchant". Section 2-104.
| ||||||
26 | "Negotiable instrument". Section 3-104.
|
| |||||||
| |||||||
1 | "Nominated person". Section 5-102.
| ||||||
2 | "Note". Section 3-104.
| ||||||
3 | "Proceeds of a letter of credit". Section 5-114.
| ||||||
4 | "Prove". Section 3-103.
| ||||||
5 | "Sale". Section 2-106.
| ||||||
6 | "Securities account". Section 8-501.
| ||||||
7 | "Securities intermediary". Section 8-102.
| ||||||
8 | "Security". Section 8-102.
| ||||||
9 | "Security certificate". Section 8-102.
| ||||||
10 | "Security entitlement". Section 8-102.
| ||||||
11 | "Uncertificated security". Section 8-102.
| ||||||
12 | (c) Article 1 definitions and principles. Article 1 | ||||||
13 | contains general
definitions and principles of construction | ||||||
14 | and interpretation applicable
throughout
this Article.
| ||||||
15 | (Source: P.A. 95-895, eff. 1-1-09; 96-1477, eff. 1-1-11.)
| ||||||
16 | Section 10-110. The Interest Act is amended by changing | ||||||
17 | Sections 4, 4.2, and 4a as follows:
| ||||||
18 | (815 ILCS 205/4) (from Ch. 17, par. 6404) | ||||||
19 | Sec. 4. General interest rate. | ||||||
20 | (1) Except as otherwise provided in Section 4.05, in all | ||||||
21 | written contracts it shall be lawful for the parties to
| ||||||
22 | stipulate or agree that 9% per annum, or any less sum of | ||||||
23 | interest, shall be
taken and paid upon every $100 of money | ||||||
24 | loaned or in any manner due and
owing from any person to any |
| |||||||
| |||||||
1 | other person or corporation in this state, and
after that rate | ||||||
2 | for a greater or less sum, or for a longer or shorter time,
| ||||||
3 | except as herein provided. | ||||||
4 | The maximum rate of interest that may lawfully be | ||||||
5 | contracted for is
determined by the law applicable thereto at | ||||||
6 | the time the contract is
made. Any provision in any contract, | ||||||
7 | whether made before or after July
1, 1969, which provides for | ||||||
8 | or purports to authorize, contingent upon a
change in the | ||||||
9 | Illinois law after the contract is made, any rate of
interest | ||||||
10 | greater than the maximum lawful rate at the time the contract
| ||||||
11 | is made, is void. | ||||||
12 | It is lawful for a state bank or a branch of an | ||||||
13 | out-of-state bank, as those
terms are defined in Section 2 of | ||||||
14 | the Illinois Banking Act, to receive or to
contract to receive
| ||||||
15 | and collect interest and charges at any rate or rates agreed | ||||||
16 | upon by
the bank or branch and the borrower.
It is lawful for a | ||||||
17 | savings bank chartered under the Savings Bank Act or a
savings | ||||||
18 | association chartered under the Illinois Savings and Loan Act | ||||||
19 | of 1985
to receive or contract to receive and collect interest | ||||||
20 | and charges at any rate
agreed upon by the savings bank or | ||||||
21 | savings association and the borrower. | ||||||
22 | It is lawful to receive or to contract to receive and | ||||||
23 | collect
interest and charges as authorized by this Act and as | ||||||
24 | authorized by the
Consumer Installment Loan Act and by the | ||||||
25 | "Consumer Finance Act", approved July
10,
1935, as now or | ||||||
26 | hereafter amended, or by the Payday Loan Reform Act. It is |
| |||||||
| |||||||
1 | lawful to charge, contract
for, and receive any rate or amount | ||||||
2 | of interest or compensation with
respect to the following | ||||||
3 | transactions: | ||||||
4 | (a) Any loan made to a corporation; | ||||||
5 | (b) Advances of money, repayable on demand, to an | ||||||
6 | amount not less
than $5,000, which are made upon warehouse | ||||||
7 | receipts, bills of lading,
certificates of stock, | ||||||
8 | certificates of deposit, bills of exchange, bonds
or other | ||||||
9 | negotiable instruments pledged as collateral security for | ||||||
10 | such
repayment, if evidenced by a writing; | ||||||
11 | (c) Any credit transaction between a merchandise | ||||||
12 | wholesaler and
retailer; any business loan to a business | ||||||
13 | association or copartnership
or to a person owning and | ||||||
14 | operating a business as sole proprietor or to
any persons | ||||||
15 | owning and operating a business as joint venturers, joint
| ||||||
16 | tenants or tenants in common, or to any limited | ||||||
17 | partnership, or to any
trustee owning and operating a | ||||||
18 | business or whose beneficiaries own and
operate a business, | ||||||
19 | except that any loan which is secured (1) by an
assignment | ||||||
20 | of an individual obligor's salary, wages, commissions or
| ||||||
21 | other compensation for services, or (2) by his household | ||||||
22 | furniture or
other goods used for his personal, family or | ||||||
23 | household purposes shall be
deemed not to be a loan within | ||||||
24 | the meaning of this subsection; and
provided further that a | ||||||
25 | loan which otherwise qualifies as a business
loan within | ||||||
26 | the meaning of this subsection shall not be deemed as not |
| |||||||
| |||||||
1 | so
qualifying because of the inclusion, with other security | ||||||
2 | consisting of
business assets of any such obligor, of real | ||||||
3 | estate occupied by an
individual obligor solely as his | ||||||
4 | residence. The term "business" shall
be deemed to mean a | ||||||
5 | commercial, agricultural or industrial enterprise
which is | ||||||
6 | carried on for the purpose of investment or profit, but | ||||||
7 | shall
not be deemed to mean the ownership or maintenance of | ||||||
8 | real estate
occupied by an individual obligor solely as his | ||||||
9 | residence; | ||||||
10 | (d) Any loan made in accordance with the provisions of | ||||||
11 | Subchapter I
of Chapter 13 of Title 12 of the United States | ||||||
12 | Code, which is designated
as "Housing Renovation and | ||||||
13 | Modernization"; | ||||||
14 | (e) Any mortgage loan insured or upon which a | ||||||
15 | commitment to insure
has been issued under the provisions | ||||||
16 | of the National Housing Act,
Chapter 13 of Title 12 of the | ||||||
17 | United States Code; | ||||||
18 | (f) Any mortgage loan guaranteed or upon which a | ||||||
19 | commitment to
guaranty has been issued under the provisions | ||||||
20 | of the Veterans' Benefits
Act, Subchapter II of Chapter 37 | ||||||
21 | of Title 38 of the United States Code; | ||||||
22 | (g) Interest charged by a broker or dealer registered | ||||||
23 | under the
Securities Exchange Act of 1934, as amended, or | ||||||
24 | registered under the
Illinois Securities Law of 1953, | ||||||
25 | approved July 13, 1953, as now or
hereafter amended, on a | ||||||
26 | debit balance in an account for a customer if
such debit |
| |||||||
| |||||||
1 | balance is payable at will without penalty and is secured | ||||||
2 | by
securities as defined in Uniform Commercial | ||||||
3 | Code-Investment Securities; | ||||||
4 | (h) Any loan made by a participating bank as part of | ||||||
5 | any loan
guarantee program which provides for loans and for | ||||||
6 | the refinancing of
such loans to medical students, interns | ||||||
7 | and residents and which are
guaranteed by the American | ||||||
8 | Medical Association Education and Research
Foundation; | ||||||
9 | (i) Any loan made, guaranteed, or insured in accordance | ||||||
10 | with the
provisions of the Housing Act of 1949, Subchapter | ||||||
11 | III of Chapter 8A of
Title 42 of the United States Code and | ||||||
12 | the Consolidated Farm and Rural
Development Act, | ||||||
13 | Subchapters I, II, and III of Chapter 50 of Title 7 of
the | ||||||
14 | United States Code; | ||||||
15 | (j) Any loan by an employee pension benefit plan, as | ||||||
16 | defined in Section
3 (2) of the Employee Retirement Income | ||||||
17 | Security Act of 1974 (29 U.S.C.A.
Sec. 1002), to an | ||||||
18 | individual participating in such plan, provided that such
| ||||||
19 | loan satisfies the prohibited transaction exemption | ||||||
20 | requirements of Section
408 (b) (1) (29 U.S.C.A. Sec. 1108 | ||||||
21 | (b) (1)) or Section 2003 (a) (26 U.S.C.A.
Sec. 4975 (d) | ||||||
22 | (1)) of the Employee Retirement Income Security Act of | ||||||
23 | 1974; | ||||||
24 | (k) Written contracts, agreements or bonds for deed | ||||||
25 | providing for
installment purchase of real estate , | ||||||
26 | including a manufactured home as defined in subdivision |
| |||||||
| |||||||
1 | (53) of Section 9-102, which is real property as defined in | ||||||
2 | the Conveyance and Encumbrance of Manufactured Homes as | ||||||
3 | Real Property and Severance Act ; | ||||||
4 | (1) Loans secured by a mortgage on real estate , | ||||||
5 | including a manufactured home as defined in subdivision | ||||||
6 | (53) of Section 9-102 of the Uniform Commercial Code, which | ||||||
7 | is real property as defined in the Conveyance and | ||||||
8 | Encumbrance of Manufactured Homes as Real Property and | ||||||
9 | Severance Act ; | ||||||
10 | (m) Loans made by a sole proprietorship, partnership, | ||||||
11 | or corporation to
an employee or to a person who has been | ||||||
12 | offered employment by such sole
proprietorship, | ||||||
13 | partnership, or corporation made for the sole purpose of
| ||||||
14 | transferring an employee or person who has been offered | ||||||
15 | employment to another
office maintained and operated by the | ||||||
16 | same sole proprietorship, partnership,
or corporation; | ||||||
17 | (n) Loans to or for the benefit of students made by an | ||||||
18 | institution of
higher education. | ||||||
19 | (2) Except for loans described in subparagraph (a), (c), | ||||||
20 | (d),
(e), (f) or (i) of subsection (1) of this Section, and | ||||||
21 | except to the
extent permitted by the applicable statute for | ||||||
22 | loans made pursuant to
Section 4a or pursuant to the Consumer | ||||||
23 | Installment Loan Act: | ||||||
24 | (a) Whenever the rate of interest exceeds 8% per annum | ||||||
25 | on any
written contract, agreement or bond for deed | ||||||
26 | providing for the installment
purchase of residential real |
| |||||||
| |||||||
1 | estate, or on any loan secured by a mortgage
on residential | ||||||
2 | real estate, it shall be unlawful to provide for a
| ||||||
3 | prepayment penalty or other charge for prepayment. | ||||||
4 | (b) No agreement, note or other instrument evidencing a | ||||||
5 | loan
secured by a mortgage on residential real estate, or | ||||||
6 | written contract,
agreement or bond for deed providing for | ||||||
7 | the installment purchase of
residential real estate, may | ||||||
8 | provide for any change in the contract rate of
interest | ||||||
9 | during the term thereof. However, if the Congress of the | ||||||
10 | United
States or any federal agency authorizes any class of | ||||||
11 | lender to enter, within
limitations, into mortgage | ||||||
12 | contracts or written contracts, agreements or
bonds for | ||||||
13 | deed in which the rate of interest may be changed during | ||||||
14 | the
term of the contract, any person, firm, corporation or | ||||||
15 | other entity
not otherwise prohibited from entering into | ||||||
16 | mortgage contracts or
written contracts, agreements or | ||||||
17 | bonds for deed in Illinois may enter
into mortgage | ||||||
18 | contracts or written contracts, agreements or bonds
for | ||||||
19 | deed in which the rate of interest may be changed during | ||||||
20 | the term
of the contract, within the same limitations. | ||||||
21 | (3) In any contract or loan which is secured by a mortgage, | ||||||
22 | deed of
trust, or conveyance in the nature of a mortgage, on | ||||||
23 | residential real
estate, the interest which is computed, | ||||||
24 | calculated, charged, or collected
pursuant to such contract or | ||||||
25 | loan, or pursuant to any regulation or rule
promulgated | ||||||
26 | pursuant to this Act, may not be computed, calculated, charged
|
| |||||||
| |||||||
1 | or collected for any period of time occurring after the date on | ||||||
2 | which the
total indebtedness, with the exception of late | ||||||
3 | payment penalties, is paid
in full. | ||||||
4 | (4) For purposes of this Section, a prepayment shall mean | ||||||
5 | the payment of the
total indebtedness, with the exception of | ||||||
6 | late payment penalties if
incurred or charged, on any date | ||||||
7 | before the date specified in the contract
or loan agreement on | ||||||
8 | which the total indebtedness shall be paid in full, or
before | ||||||
9 | the date on which all payments, if timely made, shall have been
| ||||||
10 | made. In the event of a prepayment of the indebtedness which is | ||||||
11 | made on a
date after the date on which interest on the | ||||||
12 | indebtedness was last
computed, calculated, charged, or | ||||||
13 | collected but before the next date on
which interest on the | ||||||
14 | indebtedness was to be calculated, computed, charged,
or | ||||||
15 | collected, the lender may calculate, charge and collect | ||||||
16 | interest on the
indebtedness for the period which elapsed | ||||||
17 | between the date on which the
prepayment is made and the date | ||||||
18 | on which interest on the indebtedness was
last computed, | ||||||
19 | calculated, charged or collected at a rate equal to 1/360 of
| ||||||
20 | the annual rate for each day which so elapsed, which rate shall | ||||||
21 | be applied
to the indebtedness outstanding as of the date of | ||||||
22 | prepayment. The lender
shall refund to the borrower any | ||||||
23 | interest charged or collected which
exceeds that which the | ||||||
24 | lender may charge or collect pursuant to the
preceding | ||||||
25 | sentence. The provisions of this amendatory Act of 1985 shall
| ||||||
26 | apply only to contracts or loans entered into on or after the |
| |||||||
| |||||||
1 | effective
date of this amendatory Act, but shall not apply to | ||||||
2 | contracts or loans
entered into on or after that date that are | ||||||
3 | subject to Section 4a of this
Act, the Consumer Installment | ||||||
4 | Loan Act, the Payday Loan Reform Act, or the Retail Installment | ||||||
5 | Sales
Act, or that provide for the refund of precomputed | ||||||
6 | interest on prepayment
in the manner provided by such Act. | ||||||
7 | (5) For purposes of items (a) and (c) of subsection (1) of | ||||||
8 | this Section, a rate or amount of interest may be lawfully | ||||||
9 | computed when applying the ratio of the annual interest rate | ||||||
10 | over a year based on 360 days. The provisions of this | ||||||
11 | amendatory Act of the 96th General Assembly are declarative of | ||||||
12 | existing law. | ||||||
13 | (6) For purposes of this Section, "real estate" and "real | ||||||
14 | property" include a manufactured home, as defined in | ||||||
15 | subdivision (53) of Section 9-102 of the Uniform Commercial | ||||||
16 | Code that is real property as defined in the Conveyance and | ||||||
17 | Encumbrance of Manufactured Homes as Real Property and | ||||||
18 | Severance Act. | ||||||
19 | (Source: P.A. 95-331, eff. 8-21-07; 96-1421, eff. 8-3-10.)
| ||||||
20 | (815 ILCS 205/4.2) (from Ch. 17, par. 6407)
| ||||||
21 | Sec. 4.2. Revolving credit; billing statements; | ||||||
22 | disclosures. On a
revolving credit which complies with | ||||||
23 | subparagraphs (a), (b),
(c), (d) and (e) of this Section 4.2, | ||||||
24 | it is lawful for any bank that has its main office or, after | ||||||
25 | May 31, 1997,
a branch in this State, a state or federal |
| |||||||
| |||||||
1 | savings and
loan association with its main office in this | ||||||
2 | State, a state or federal
credit union with its main office in | ||||||
3 | this State, or a lender licensed under
the Consumer Finance | ||||||
4 | Act, the Consumer Installment Loan Act or the Sales
Finance | ||||||
5 | Agency Act, as such Acts are now and hereafter amended, to
| ||||||
6 | receive or contract to receive and collect interest
in any | ||||||
7 | amount or at any rate agreed upon by the parties to the | ||||||
8 | revolving
credit arrangement. It is lawful for any other lender | ||||||
9 | to receive or contract
to receive and collect interest in an | ||||||
10 | amount not in excess of 1 1/2% per
month of either the average | ||||||
11 | daily unpaid balance of the principal of the
debt during the | ||||||
12 | billing cycle, or of the unpaid balance of the debt on
| ||||||
13 | approximately the same day of the billing cycle. If a lender | ||||||
14 | under a revolving
credit arrangement notifies the debtor at | ||||||
15 | least 30 days in advance of any
lawful increase in the amount | ||||||
16 | or rate of interest to be charged under
the revolving credit | ||||||
17 | arrangement, and the debtor, after the effective date
of such | ||||||
18 | notice, incurs new debt pursuant to the revolving credit
| ||||||
19 | arrangement, the increased interest amount or rate may be | ||||||
20 | applied only to
any such new debt incurred under the revolving | ||||||
21 | credit arrangement.
For purposes of determining the balances to | ||||||
22 | which the increased interest
rate applies, all payments and | ||||||
23 | other credits may be deemed to be applied
to the balance | ||||||
24 | existing prior to the change in rate until that balance is
paid | ||||||
25 | in full. The face amount of the
drafts, items, orders for the | ||||||
26 | payment of money, evidences of debt, or
similar written |
| |||||||
| |||||||
1 | instruments received by the lender in connection with the
| ||||||
2 | revolving credit, less the amounts applicable to principal from | ||||||
3 | time to
time paid thereon by the debtor, are the unpaid balance | ||||||
4 | of the debt upon
which the interest is computed. If the billing | ||||||
5 | cycle is not monthly, the
maximum interest rate for the billing | ||||||
6 | cycle is the percentage which bears
the same relation to the | ||||||
7 | monthly percentage provided for in the preceding
sentence as | ||||||
8 | the number of days in the billing cycle bears to 30. For the
| ||||||
9 | purposes of the foregoing computation, a "month" is deemed to | ||||||
10 | be any time
of 30 consecutive days. In addition to the interest | ||||||
11 | charge provided for, it
is lawful to receive, contract for or | ||||||
12 | collect a charge not exceeding 25
cents for each transaction in | ||||||
13 | which a loan or advance is made under the
revolving credit or | ||||||
14 | in lieu of this additional charge an annual fee for the
| ||||||
15 | privilege of receiving and using the revolving credit in an | ||||||
16 | amount not
exceeding $20. In addition, with respect to | ||||||
17 | revolving credit secured by an
interest in real estate, | ||||||
18 | including a manufactured home as defined in subdivision (53) of | ||||||
19 | Section 9-102 of the Uniform Commercial Code that is real | ||||||
20 | property as defined in the Conveyance and Encumbrance of | ||||||
21 | Manufactured Homes as Real Property and Severance Act, it is | ||||||
22 | also lawful to receive, contract for or
collect fees lawfully
| ||||||
23 | paid to any public officer or agency to record, file or release | ||||||
24 | the security,
and costs and disbursements actually incurred for | ||||||
25 | any title insurance,
title examination, abstract of title, | ||||||
26 | survey, appraisal, escrow fees, and fees
paid to a trustee in |
| |||||||
| |||||||
1 | connection with a trust deed.
| ||||||
2 | (a) At or before the date a bill or statement is first | ||||||
3 | rendered to the
debtor under a revolving credit arrangement, | ||||||
4 | the lender must mail or
deliver to the debtor a written | ||||||
5 | description of the conditions under which a
charge for interest | ||||||
6 | may be made and the method, including the rate, of
computing | ||||||
7 | these interest charges. The rate of interest must be expressed | ||||||
8 | as
an annual percentage rate.
| ||||||
9 | (b) If during any billing cycle any debit or credit entry | ||||||
10 | is made to a
debtor's revolving credit account, and if at the | ||||||
11 | end of that billing cycle
there is an unpaid balance owing to | ||||||
12 | the lender from the debtor, the lender
must give to the debtor | ||||||
13 | the following information within a reasonable time
after the | ||||||
14 | end of the billing cycle:
| ||||||
15 | (i) the unpaid balance at the beginning of the billing | ||||||
16 | cycle;
| ||||||
17 | (ii) the date and amount of all loans or advances made | ||||||
18 | during the
billing cycle, which information may be supplied | ||||||
19 | by enclosing a copy of the
drafts, items, orders for the | ||||||
20 | payment of money, evidences of debt or
similar written | ||||||
21 | instruments presented to the lender during the billing
| ||||||
22 | cycle;
| ||||||
23 | (iii) the payments by the debtor to the lender and any | ||||||
24 | other credits to
the debtor during the billing cycle;
| ||||||
25 | (iv) the amount of interest and other charges, if any, | ||||||
26 | charged to the
debtor's account during the billing cycle;
|
| |||||||
| |||||||
1 | (v) the amount which must be currently paid by the | ||||||
2 | debtor and the date
on which that amount must be paid in | ||||||
3 | order to avoid delinquency;
| ||||||
4 | (vi) the total amount remaining unpaid at the end of | ||||||
5 | the billing cycle
and the right of the debtor to prepay | ||||||
6 | that amount in full without penalty; and
| ||||||
7 | (vii) information required by (iv), (v) and (vi) must | ||||||
8 | be set forth in type of
equal size and equal | ||||||
9 | conspicuousness.
| ||||||
10 | (c) The revolving credit arrangement may provide for the | ||||||
11 | payment by the
debtor and receipt by the lender of all costs | ||||||
12 | and disbursements, including
reasonable attorney's fees, | ||||||
13 | incurred by the lender in legal proceedings to
collect or | ||||||
14 | enforce the debt in the event of delinquency by the debtor or | ||||||
15 | in
the event of a breach of any obligation of the debtor under | ||||||
16 | the arrangement.
| ||||||
17 | (d) The lender under a revolving credit arrangement may | ||||||
18 | provide credit
life insurance or credit accident and health | ||||||
19 | insurance, or both, with
respect to the debtor and may charge | ||||||
20 | the debtor therefor. Credit life
insurance and credit accident | ||||||
21 | and health insurance, and any charge therefor
made to the | ||||||
22 | debtor, shall comply with Article IX 1/2 of the Illinois
| ||||||
23 | Insurance Code, as now or hereafter amended, and all lawful
| ||||||
24 | requirements of the Director of Insurance
related thereto. This | ||||||
25 | insurance is in force with respect to each loan or
advance made | ||||||
26 | under a revolving credit arrangement as soon as the loan or
|
| |||||||
| |||||||
1 | advance is made. The purchase of this insurance from an agent, | ||||||
2 | broker or
insurer specified by the lender may not be a | ||||||
3 | condition precedent to the
revolving credit arrangement or to | ||||||
4 | the making of any loan or advance thereunder.
| ||||||
5 | (e) Whenever interest is contracted for or received under | ||||||
6 | this Section,
no amount in addition to the charges authorized | ||||||
7 | by this Act may be directly
or indirectly charged, contracted | ||||||
8 | for or received whether as interest,
service charges, costs of | ||||||
9 | investigations or enforcements or otherwise.
| ||||||
10 | (f) The lender under a revolving credit arrangement must
| ||||||
11 | compute at year end the total amount charged to the debtor's
| ||||||
12 | account during the year, including service charges, finance | ||||||
13 | charges,
late charges and any other charges authorized by this | ||||||
14 | Act,
and upon request must furnish such information to the | ||||||
15 | debtor within
30 days after the end of the year, or if the | ||||||
16 | account has been
terminated during such year, may give such | ||||||
17 | requested information within
30 days after such termination. | ||||||
18 | The lender shall annually inform the debtor
of his right to | ||||||
19 | obtain such information.
| ||||||
20 | (g) A lender who complies with the federal Truth in Lending | ||||||
21 | Act, amendments
thereto, and any regulations issued or which | ||||||
22 | may be issued thereunder, shall
be deemed to be in compliance | ||||||
23 | with the provisions of subparagraphs (a) and
(b) of this | ||||||
24 | Section.
| ||||||
25 | (h) Anything in this Section 4.2 to the contrary | ||||||
26 | notwithstanding, if
the Congress of the United States or any |
| |||||||
| |||||||
1 | federal agency authorizes any
class of lenders to enter, within | ||||||
2 | limitations, into a revolving credit
arrangement secured by a | ||||||
3 | mortgage or deed of trust on residential real
property, any | ||||||
4 | person, firm, corporation or other entity, not otherwise
| ||||||
5 | prohibited by the Congress of the United States or any federal | ||||||
6 | agency from
entering into revolving credit arrangements | ||||||
7 | secured by a mortgage or deed
of trust on residential real | ||||||
8 | property, may enter into such arrangements
within the same | ||||||
9 | limitations.
| ||||||
10 | (Source: P.A. 89-208, eff. 9-29-95.)
| ||||||
11 | (815 ILCS 205/4a) (from Ch. 17, par. 6410)
| ||||||
12 | Sec. 4a. Installment loan rate.
| ||||||
13 | (a) On money loaned to or in any manner owing from any | ||||||
14 | person, whether
secured or unsecured, except where the money | ||||||
15 | loaned or in any manner owing
is directly or indirectly for the | ||||||
16 | purchase price of real estate or an
interest therein and is | ||||||
17 | secured by a lien on or retention of title to that
real estate | ||||||
18 | or interest therein, to an amount not more than $25,000
| ||||||
19 | (excluding interest) which is evidenced by a written instrument | ||||||
20 | providing
for the payment thereof in 2 or more periodic | ||||||
21 | installments over a period of
not more than 181 months from the | ||||||
22 | date of the execution of the written
instrument, it is lawful | ||||||
23 | to receive or to contract to receive and collect
either:
| ||||||
24 | (i) interest in an amount equivalent to interest | ||||||
25 | computed at a rate not
exceeding 9% per year on the entire |
| |||||||
| |||||||
1 | principal amount of the money loaned or
in any manner owing | ||||||
2 | for the period from the date of the making of the loan
or | ||||||
3 | the incurring of the obligation for the amount owing | ||||||
4 | evidenced by the
written instrument until the date of the | ||||||
5 | maturity of the last installment
thereof, and to add that | ||||||
6 | amount to the principal, except that there shall
be no | ||||||
7 | limit on the rate of interest which may be received or | ||||||
8 | contracted to
be received and collected by (1) any bank | ||||||
9 | that has its main office
or, after May 31, 1997, a branch | ||||||
10 | in this State; (2) a savings and loan
association chartered | ||||||
11 | under the
Illinois Savings and Loan Act of 1985, a savings | ||||||
12 | bank chartered under the
Savings Bank Act, or a federal | ||||||
13 | savings and loan
association established under the laws of | ||||||
14 | the United States and having its
main office in this State; | ||||||
15 | or (3) any lender licensed under either the
Consumer | ||||||
16 | Finance Act or the Consumer Installment Loan Act, but in | ||||||
17 | any case in which interest is received,
contracted for or | ||||||
18 | collected on the basis of this clause (i), the debtor may
| ||||||
19 | satisfy in full at any time before maturity the debt | ||||||
20 | evidenced by the
written instrument, and in so satisfying | ||||||
21 | must receive a refund credit
against the total amount of | ||||||
22 | interest added to the principal computed in
the manner | ||||||
23 | provided under Section 15(f)(3) of the Consumer | ||||||
24 | Installment
Loan Act for refunds or credits of applicable | ||||||
25 | interest on payment in full
of precomputed loans before the | ||||||
26 | final installment due date; or
|
| |||||||
| |||||||
1 | (ii) interest accrued on the principal balance from | ||||||
2 | time to time
remaining unpaid, from the date of making of | ||||||
3 | the loan or the incurring of
the obligation to the date of | ||||||
4 | the payment of the debt in full, at a rate
not exceeding | ||||||
5 | the annual percentage rate equivalent of the rate permitted
| ||||||
6 | to be charged under clause (i) above, but in any such case | ||||||
7 | the debtor may,
provided that the debtor shall have paid in | ||||||
8 | full all interest and other
charges accrued to the date of | ||||||
9 | such prepayment, prepay the principal
balance in full or in | ||||||
10 | part at any time, and interest shall, upon any such
| ||||||
11 | prepayment, cease to accrue on the principal amount which | ||||||
12 | has been prepaid.
| ||||||
13 | (b) Whenever the principal amount of an installment loan is | ||||||
14 | $300 or
more and the repayment period is 6 months or more, a | ||||||
15 | minimum charge of
$15 may be collected instead of interest, but | ||||||
16 | only one minimum charge
may be collected from the same person | ||||||
17 | during one year. When the
principal amount of the loan | ||||||
18 | (excluding interest) is $800 or less, the
lender or creditor | ||||||
19 | may contract for and receive a service charge not to
exceed $5 | ||||||
20 | in addition to interest; and that service charge may be
| ||||||
21 | collected when the loan is made, but only one service charge | ||||||
22 | may be
contracted for, received, or collected from the same | ||||||
23 | person during one year.
| ||||||
24 | (c) Credit life insurance and credit accident and health | ||||||
25 | insurance,
and any charge therefor which is deducted from the | ||||||
26 | loan or paid by the
obligor, must comply with Article IX 1/2 of |
| |||||||
| |||||||
1 | the Illinois Insurance
Code and all lawful requirements of the | ||||||
2 | Director of Insurance related
thereto. When there are 2 or more | ||||||
3 | obligors on the loan contract, only
one charge for credit life | ||||||
4 | insurance and credit accident and health
insurance may be made | ||||||
5 | and only one of the obligors may be required to be
insured. | ||||||
6 | Insurance obtained from, by or through the lender or creditor
| ||||||
7 | must be in effect when the loan is transacted. The purchase of | ||||||
8 | that
insurance from an agent, broker or insurer specified by | ||||||
9 | the lender or
creditor may not be a condition precedent to the | ||||||
10 | granting of the loan.
| ||||||
11 | (d) The lender or creditor may require the obligor to | ||||||
12 | provide
property insurance on security other than household | ||||||
13 | goods, furniture and
personal effects. The amount and term of | ||||||
14 | the insurance must be
reasonable in relation to the amount and | ||||||
15 | term of the loan contract and
the type and value of the | ||||||
16 | security, and the insurance must be procured
in accordance with | ||||||
17 | the insurance laws of this State. The purchase of
that | ||||||
18 | insurance from an agent, broker or insurer specified by the | ||||||
19 | lender
or creditor may not be a condition precedent to the | ||||||
20 | granting of the loan.
| ||||||
21 | (e) The lender or creditor may, if the contract provides, | ||||||
22 | collect a
delinquency and collection charge on each installment | ||||||
23 | in default for a
period of not less than 10 days in an amount | ||||||
24 | not exceeding 5% of the
installment on installments in excess | ||||||
25 | of $200 or $10 on
installments of
$200 or less, but only one | ||||||
26 | delinquency and collection charge may
be
collected on any |
| |||||||
| |||||||
1 | installment regardless of the period during which it
remains in | ||||||
2 | default. In addition, the contract may provide for the payment
| ||||||
3 | by the borrower or debtor of attorney's fees incurred by the | ||||||
4 | lender or
creditor. The lender or creditor may enforce such a | ||||||
5 | provision to the extent
of the reasonable attorney's fees | ||||||
6 | incurred by him in the collection or
enforcement of the | ||||||
7 | contract or obligation. Whenever interest is contracted
for or | ||||||
8 | received under this Section, no amount in addition to the | ||||||
9 | charges
authorized by this Section may be directly or | ||||||
10 | indirectly charged,
contracted for or received, except lawful | ||||||
11 | fees paid to a public officer or
agency to record, file or | ||||||
12 | release security, and except costs and
disbursements including | ||||||
13 | reasonable attorney's fees, incurred in legal
proceedings to | ||||||
14 | collect a loan or to realize on a security after default.
This | ||||||
15 | Section does not prohibit the receipt of any commission, | ||||||
16 | dividend or
other benefit by the creditor or an employee, | ||||||
17 | affiliate or associate of the
creditor from the insurance | ||||||
18 | authorized by this Section.
| ||||||
19 | (f) When interest is contracted for or received under this | ||||||
20 | Section,
the lender must disclose the following items to the | ||||||
21 | obligor in a written
statement before the loan is consummated:
| ||||||
22 | (1) the amount and date of the loan contract;
| ||||||
23 | (2) the amount of loan credit using the term "amount | ||||||
24 | financed";
| ||||||
25 | (3) every deduction from the amount financed or payment | ||||||
26 | made by the
obligor for insurance and the type of insurance |
| |||||||
| |||||||
1 | for which each deduction
or payment was made;
| ||||||
2 | (4) every other deduction from the loan or payment made | ||||||
3 | by the
obligor in connection with obtaining the loan;
| ||||||
4 | (5) the date on which the finance charge begins to | ||||||
5 | accrue if
different from the date of the transaction;
| ||||||
6 | (6) the total amount of the loan charge for the | ||||||
7 | scheduled term of
the loan contract with a description of | ||||||
8 | each amount included using the
term "finance charge";
| ||||||
9 | (7) the finance charge expressed as an annual | ||||||
10 | percentage rate using
the term "annual percentage rate". | ||||||
11 | "Annual percentage rate" means the
nominal annual | ||||||
12 | percentage rate of finance charge determined in accordance
| ||||||
13 | with the actuarial method of computation with an accuracy | ||||||
14 | at least to the
nearest 1/4 of 1%; or at the option of the | ||||||
15 | lender by application of the
United States rule so that it | ||||||
16 | may be disclosed with an accuracy at least to
the nearest | ||||||
17 | 1/4 of 1%;
| ||||||
18 | (8) the number, amount and due dates or periods of | ||||||
19 | payments
scheduled to repay the loan and the sum of such | ||||||
20 | payments using the term
"total of payments";
| ||||||
21 | (9) the amount, or method of computing the amount of | ||||||
22 | any default,
delinquency or similar charges payable in the | ||||||
23 | event of late payments;
| ||||||
24 | (10) the right of the obligor to prepay the loan and | ||||||
25 | the fact that
such prepayment will reduce the charge for | ||||||
26 | the loan;
|
| |||||||
| |||||||
1 | (11) a description or identification of the type of any | ||||||
2 | security
interest held or to be retained or acquired by the | ||||||
3 | lender in connection
with the loan and a clear | ||||||
4 | identification of the property to which the
security | ||||||
5 | interest relates. If after-acquired property will be | ||||||
6 | subject to
the security interest, or if other or future | ||||||
7 | indebtedness is or may be
secured by any such property, | ||||||
8 | this fact shall be clearly set forth in
conjunction with | ||||||
9 | the description or identification of the type of
security | ||||||
10 | interest held, retained or acquired;
| ||||||
11 | (12) a description of any penalty charge that may be | ||||||
12 | imposed by the
lender for prepayment of the principal of | ||||||
13 | the obligation with an
explanation of the method of | ||||||
14 | computation of such penalty and the
conditions under which | ||||||
15 | it may be imposed;
| ||||||
16 | (13) unless the contract provides for the accrual and | ||||||
17 | payment of the
finance charge on the balance of the amount | ||||||
18 | financed from time to time
remaining unpaid, an | ||||||
19 | identification of the method of computing any
unearned | ||||||
20 | portion of the finance charge in the event of prepayment of | ||||||
21 | the
loan.
| ||||||
22 | The terms "finance charge" and "annual percentage rate" | ||||||
23 | shall be
printed more conspicuously than other terminology | ||||||
24 | required by this Section.
| ||||||
25 | (g) At the time disclosures are made, the lender shall | ||||||
26 | deliver to
the obligor a duplicate of the instrument or |
| |||||||
| |||||||
1 | statement by which the
required disclosures are made and on | ||||||
2 | which the lender and obligor are
identified and their addresses | ||||||
3 | stated. All of the disclosures shall be
made clearly, | ||||||
4 | conspicuously and in meaningful sequence and made together
on | ||||||
5 | either:
| ||||||
6 | (i) the note or other instrument evidencing the | ||||||
7 | obligation on the
same side of the page and above or | ||||||
8 | adjacent to the place for the
obligor's signature; however, | ||||||
9 | where a creditor elects to combine
disclosures with the | ||||||
10 | contract, security agreement, and evidence of a
| ||||||
11 | transaction in a single document, the disclosures required | ||||||
12 | under this
Section shall be made on the face of the | ||||||
13 | document, on the reverse side,
or on both sides, provided | ||||||
14 | that the amount of the finance charge and the
annual | ||||||
15 | percentage rate shall appear on the face of the document, | ||||||
16 | and, if
the reverse side is used, the printing on both | ||||||
17 | sides of the document
shall be equally clear and | ||||||
18 | conspicuous, both sides shall contain the
statement, | ||||||
19 | "NOTICE: See other side for important information", and the
| ||||||
20 | place for the customer's signature shall be provided | ||||||
21 | following the full
content of the document; or
| ||||||
22 | (ii) one side of a separate statement which identifies | ||||||
23 | the
transaction.
| ||||||
24 | The amount of the finance charge shall be determined as the | ||||||
25 | sum of
all charges, payable directly or indirectly by the | ||||||
26 | obligor and imposed
directly or indirectly by the lender as an |
| |||||||
| |||||||
1 | incident to or as a condition
to the extension of credit, | ||||||
2 | whether paid or payable by the obligor, any
other person on | ||||||
3 | behalf of the obligor, to the lender or to a third
party, | ||||||
4 | including any of the following types of charges:
| ||||||
5 | (1) Interest, time price differential, and any amount | ||||||
6 | payable under
a discount or other system of additional | ||||||
7 | charges.
| ||||||
8 | (2) Service, transaction, activity, or carrying | ||||||
9 | charge.
| ||||||
10 | (3) Loan fee, points, finder's fee, or similar charge.
| ||||||
11 | (4) Fee for an appraisal, investigation, or credit | ||||||
12 | report.
| ||||||
13 | (5) Charges or premiums for credit life, accident, | ||||||
14 | health, or loss
of income insurance, written in connection | ||||||
15 | with any credit transaction
unless (a) the insurance | ||||||
16 | coverage is not required by the lender and this
fact is | ||||||
17 | clearly and conspicuously disclosed in writing to the | ||||||
18 | obligor;
and (b) any obligor desiring such insurance | ||||||
19 | coverage gives specific dated
and separately signed | ||||||
20 | affirmative written indication of such desire after
| ||||||
21 | receiving written disclosure to him of the cost of such | ||||||
22 | insurance.
| ||||||
23 | (6) Charges or premiums for insurance, written in | ||||||
24 | connection with
any credit transaction, against loss of or | ||||||
25 | damage to property or against
liability arising out of the | ||||||
26 | ownership or use of property, unless a
clear, conspicuous, |
| |||||||
| |||||||
1 | and specific statement in writing is furnished by
the | ||||||
2 | lender to the obligor setting forth the cost of the | ||||||
3 | insurance if
obtained from or through the lender and | ||||||
4 | stating that the obligor may
choose the person through | ||||||
5 | which the insurance is to be obtained.
| ||||||
6 | (7) Premium or other charges for any other guarantee or | ||||||
7 | insurance
protecting the lender against the obligor's | ||||||
8 | default or other credit loss.
| ||||||
9 | (8) Any charge imposed by a lender upon another lender | ||||||
10 | for
purchasing or accepting an obligation of an obligor if | ||||||
11 | the obligor is
required to pay any part of that charge in | ||||||
12 | cash, as an addition to the
obligation, or as a deduction | ||||||
13 | from the proceeds of the obligation.
| ||||||
14 | A late payment, delinquency, default, reinstatement or | ||||||
15 | other such
charge is not a finance charge if imposed for actual | ||||||
16 | unanticipated late
payment, delinquency, default or other | ||||||
17 | occurrence.
| ||||||
18 | (h) Advertising for loans transacted under this Section may | ||||||
19 | not be
false, misleading, or deceptive. That advertising, if it | ||||||
20 | states a rate
or amount of interest, must state that rate as an | ||||||
21 | annual percentage rate
of interest charged. In addition, if | ||||||
22 | charges other than for interest are
made in connection with | ||||||
23 | those loans, those charges must be separately
stated. No | ||||||
24 | advertising may indicate or imply that the rates or charges
for | ||||||
25 | loans are in any way "recommended", "approved", "set" or
| ||||||
26 | "established" by the State government or by this Act.
|
| |||||||
| |||||||
1 | (i) A lender or creditor who complies with the federal | ||||||
2 | Truth in Lending
Act, amendments thereto, and any regulations | ||||||
3 | issued or which may be issued
thereunder, shall be deemed to be | ||||||
4 | in compliance with the provisions of
subsections (f), (g) and | ||||||
5 | (h) of this Section.
| ||||||
6 | (j) For purposes of this Section, "real estate" and "real | ||||||
7 | property" include a manufactured home as defined in subdivision | ||||||
8 | (53) of Section 9-102 of the Uniform Commercial Code that is | ||||||
9 | real property as defined in the Conveyance and Encumbrance of | ||||||
10 | Manufactured Homes as Real Property and Severance Act. | ||||||
11 | (Source: P.A. 92-483, eff. 8-23-01.)
| ||||||
12 | Section 10-115. The Motor Vehicle Retail Installment Sales | ||||||
13 | Act is amended by changing Section 2.1 as follows:
| ||||||
14 | (815 ILCS 375/2.1) (from Ch. 121 1/2, par. 562.1)
| ||||||
15 | Sec. 2.1.
| ||||||
16 | "Motor vehicle" means a motor vehicle as defined in The | ||||||
17 | Illinois Vehicle
Code but does not include bicycles, | ||||||
18 | motorcycles, motor scooters,
snowmobiles, trailers , and farm | ||||||
19 | equipment , and manufactured homes as defined in subdivision | ||||||
20 | (53) of Section 9-102 of the Uniform Commercial Code .
| ||||||
21 | (Source: P.A. 77-1167.)
| ||||||
22 | Section 10-120. The Retail Installment Sales Act is amended | ||||||
23 | by changing Section 2.1 as follows:
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | (815 ILCS 405/2.1) (from Ch. 121 1/2, par. 502.1)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Sec. 2.1.
"Goods" means all goods used or purchased | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | primarily for personal,
family, or household purposes. "Goods" | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | includes goods purchased primarily
for agricultural purposes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | only for the purposes of the credit disclosure
requirements of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | this Act. "Goods" includes merchandise certificates or
coupons | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | issued by a retail seller to be used in their face amount in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | the
purchase of goods or services sold by such a seller but | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | does not include
money or other things in action. It also | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | includes goods which are furnished
or used, at the time of sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | or subsequently, in the modernization,
rehabilitation, repair, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | alteration, improvement, or construction of real
estate so as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | to become a part of that real estate whether or not severable
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | therefrom. "Goods" includes a manufactured home as defined in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | subdivision (53) of Section 9-102 of the Uniform Commercial | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | Code that is not real property as defined in the Conveyance and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | Encumbrance of Manufactured Homes as Real Property and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | Severance Act. "Goods" does not include a motor vehicle as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | defined in The
Illinois Vehicle Code, but does include | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | bicycles, motorcycles, motor
scooters, snowmobiles and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | trailers when purchased primarily for personal,
family or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | household purposes. "Goods" does not include goods used or
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | purchased primarily for business or commercial purposes.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | (Source: P.A. 77-1166.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|