97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1227
 
Introduced 2/8/2011, by Sen. David Koehler
 
SYNOPSIS AS INTRODUCED:



See Index

 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.



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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
 
 
A BILL FOR
 


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1 AN ACT concerning revenue.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



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 
7Conveyance and Encumbrance of Manufactured Homes as Real 
8Property and Severance Act. All references in this Article to 
9"this Act" mean this Article.

10 Section 5-2. Findings and purpose. 
11 (a) The General Assembly finds that there is a need to 
12clarify the legal status of manufactured homes affixed or to be 
13affixed to real property in the State.
14 (b) The purpose of this Act is to establish a clear 
15statutory procedure for converting to real property 
16manufactured homes located outside of mobile home parks that 
17are affixed to real property and for the severance of 
18manufactured homes from real property.

19 Section 5-5. Manufactured home; permanently affixed to 
20real property. For the purposes of this Act, "manufactured 
21home" means a manufactured home as defined in subdivision (53) 
 
 
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1of Section 9-102 of the Uniform Commercial Code. 
2Notwithstanding the foregoing, for the purposes of subsection 
3(b)(2) of Section 1322 of the federal Bankruptcy Code (11 
4U.S.C. § 1322(b)(2)), a manufactured home shall be deemed to be 
5real property. For the purposes of this Act, a manufactured 
6home is "permanently affixed" if it is anchored to real 
7property by attachment to a permanent foundation, constructed 
8in accordance with applicable state and local building codes 
9and manufacturer's specifications as provided in 24 C.F.R. Part 
103285, and connected to residential utilities (such as water, 
11gas, electricity, or sewer or septic service).

12 Section 5-10. Act not mandatory; record notice. The owner 
13of a manufactured home that is personal property or a fixture 
14may, but need not, cause that manufactured home to be deemed to 
15be real property by satisfying the requirements of Section 5-30 
16of this Act and the requirements of Section 3-116.1 or 3-116.2 
17of the Illinois Vehicle Code, as applicable.
18 To convey or voluntarily encumber a manufactured home as 
19real 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.

10 Section 5-15. Affidavit of affixation.
11 (a) An affidavit of affixation shall contain or be 
12accompanied 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 
8forth in this Section, duly acknowledged or proved in like 
9manner as to entitle a conveyance to be recorded, and when so 
10acknowledged or proved and upon payment of the lawful fees 
11therefor, the recording officer shall immediately cause the 
12affidavit of affixation and any attachments thereto to be duly 
13recorded and indexed in the record of deeds.

14 Section 5-20. Disposition of liens. Neither the act of 
15permanently affixing a manufactured home to real property nor 
16the recording of the affidavit of affixation shall impair the 
17rights of any holder of a security interest in or lien on a 
18manufactured home perfected as provided in Section 3-202 of the 
19Illinois Vehicle Code, unless and until the due filing with and 
20acceptance by the Secretary of State of an application to 
21surrender the title as provided in Section 3-116.2 of the 
22Illinois Vehicle Code and release the security interest or lien 
23as provided in Section 3-205 of the Illinois Vehicle Code. Upon 
24the filing of such a release, the security interest or lien 
25perfected under Section 3-202 of the Illinois Vehicle Code is 
 
 
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1terminated. The recording of an affidavit of affixation does 
2not change the character of any security interest or lien noted 
3on a certificate of title, and no recording tax shall be 
4imposed at the time an affidavit of affixation is recorded upon 
5any security interest in or lien on a manufactured home 
6perfected under Section 3-202 of the Illinois Vehicle Code.

7 Section 5-25. Notice to Secretary of State. Upon payment of 
8the fees provided by law and recordation of the affidavit of 
9affixation, the recording officer shall endorse the affidavit 
10as "recorded in land records", setting forth thereon the 
11indexing information for the affidavit of affixation, and the 
12recording officer shall forthwith forward a certified copy of 
13the affidavit of affixation and all attachments thereto to the 
14person designated therein for filing with the Secretary of 
15State. Upon receipt of a certified copy of the affidavit of 
16affixation by the person designated therein for filing with the 
17Secretary of State, such person shall forthwith deliver for 
18filing to the Secretary a certified copy of the affidavit of 
19affixation and other documents as provided in item (4) of 
20Section 5-10 of this Act.

21 Section 5-30. Effect of recorded affidavit of affixation. A 
22manufactured home shall be deemed to be real property when all 
23of the following events have occurred:
24 (1) the manufactured home is permanently affixed to land as 
 
 
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1provided in Section 5-5 of this Act;
2 (2) an affidavit of affixation conforming to the 
3requirements of Section 5-15 of this Act has been recorded;
4 (3) a certified copy of the affidavit of affixation has 
5been delivered for filing to the Secretary of State as provided 
6in Section 5 of this Act; and
7 (4) the requirements of Section 3-116.1 or 3-116.2 of the 
8Illinois Vehicle Code, as applicable, have been satisfied.

9 Section 5-35. Conveyance and encumbrance as real property.

10Upon the satisfaction of the requirements of Section 5-30 of 
11this Act and the requirements of Section 3-116.1 or 3-116.2 of 
12the Illinois Vehicle Code, as applicable, such manufactured 
13home shall be deemed to be real property; any mortgage, deed of 
14trust, lien, or security interest that can attach to land, 
15buildings erected thereon, or fixtures affixed thereto shall 
16attach as of the date of its recording in the same manner as if 
17the manufactured home were built from ordinary building 
18materials on site; title to such manufactured home shall be 
19transferred by deed or other form of conveyance that is 
20effective to transfer an interest in real property, together 
21with the land to which such structure has been affixed; and the 
22manufactured home shall be deemed to be real property and shall 
23be governed by the laws applicable to real property.

24 Section 5-40. Manufactured home that remains personal 
 
 
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1property or a fixture. Except as provided in Sections 5-15, 
25-25, 5-30, and 5-35 of this Act, an affidavit of affixation is 
3not necessary or effective to convey or encumber a manufactured 
4home or to change the character of the manufactured home to 
5real property. Every conveyance of land upon which is located a 
6manufactured home for which no affidavit of affixation has been 
7recorded or for which an affidavit of severance has been 
8recorded shall contain a recital that such conveyance does not 
9affect the title to said manufactured home and that the 
10transfer or encumbrance thereof can only be made pursuant to 
11the provisions of the Illinois Vehicle Code. Any agreement by 
12any party to the transaction whereby the requirements of this 
13subsection are waived shall be void as contrary to public 
14policy.


15 Section 5-45. Applicability. Nothing in this Act shall 
16impair any rights existing under law prior to the effective 
17date of this Act of anyone claiming an interest in the 
18manufactured home.

19 Section 5-50. Affidavit of severance.
20 (a) If and when a manufactured home for which an affidavit 
21of affixation has been recorded is detached or severed from the 
22real property to which it is affixed, the person (all, if more 
23than one) having an interest in the real property shall record 
24an affidavit of severance in the land records of the county 
 
 
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1where the affidavit of affixation with respect to the 
2manufactured home is recorded. The affidavit of severance shall 
3contain 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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1forth in subsection (c) of this Section, duly acknowledged or 
2proved in like manner as to entitle a conveyance to be 
3recorded, and when so acknowledged or proved and upon payment 
4of the lawful fees therefor, such recording officer shall 
5immediately cause the affidavit and any attachments thereto to 
6be duly recorded and indexed in the record of deeds.
7 (c) Upon payment of the fees provided by law and 
8recordation of the affidavit of severance, the recording 
9officer shall endorse the affidavit as "recorded in land 
10records", setting forth thereon the indexing information for 
11the affidavit of severance, and the recording officer shall 
12forthwith forward a certified copy of the affidavit of 
13severance to the person designated therein for filing with the 
14Secretary of State. Upon receipt of a certified copy of the 
15affidavit of severance by the person designated therein for 
16filing with the Secretary of State, such person shall deliver 
17for filing to the Secretary of State such certified copy of the 
18affidavit of severance and the other documents provided in 
19subsection (a) of this Section, together with an application 
20for a certificate of title to the manufactured home, to be 
21issued in accordance with subsection (b) of Section 3-109.

22 Section 55. Documents in trust.
23 (a) Manufacturer's Statement of Origin. The holder of a 
24Manufacturer's Statement of Origin to a manufactured home may 
25deliver it to any person to facilitate conveying or encumbering 
 
 
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1the home. Any person receiving a Manufacturer's Statement of 
2Origin so delivered holds it in trust for the person delivering 
3it.
4 (b) Lien Release. The holder of a security interest in a 
5manufactured home may deliver lien release documents to any 
6person to facilitate conveying or encumbering the home. Any 
7person receiving any such documents so delivered holds the 
8documents in trust for the lienholder.

9
Article 10.  AMENDATORY PROVISIONS



10 Section 10-5. The Use Tax Act is amended by adding Section 
113-3 as follows:

12 (35 ILCS 105/3-3 new)
13 Sec. 3-3. Mobile home sales. The tax imposed under this Act 
14on new mobile homes or new manufactured homes to be located 
15outside of a mobile home park shall be calculated against 40% 
16of the selling price of the home and against 100% of the 
17selling price of any other building materials used in the 
18installation and set up of the home. This provision does not 
19change the current calculation of the use tax for new mobile 
20homes or manufactured homes to be located inside of a mobile 
21home park. There shall be no use tax on the resale of mobile 
22homes or manufactured homes located outside or inside mobile 
23home parks. 

 
 
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1 Section 10-10. The Retailers' Occupation Tax Act is amended 
2by adding Section 5m as follows:

3 (35 ILCS 120/5m new)
4 Sec. 5m. Mobile home sales. The tax imposed under this Act 
5on new mobile homes or new manufactured homes to be located 
6outside of a mobile home park shall be calculated against 40% 
7of the selling price of the home and against 100% of the 
8selling price of any other building materials used in the 
9installation and set up of the home. This provision does not 
10change the current calculation of the retailers' occupation tax 
11for new mobile homes or manufactured homes to be located inside 
12of a mobile home park. There shall be no retailers' occupation 
13tax on the resale of mobile homes or manufactured homes located 
14outside or inside mobile home parks. 

15 Section 10-15. The Property Tax Code is amended by changing 
16Section 1-130 as follows:




17 (35 ILCS 200/1-130)



18 Sec. 1-130. Property; real property; real estate; land; 
19tract; lot. 
20 (a) The land
itself, with all things contained therein, and 
21also all buildings, structures
and improvements, and other 
22permanent fixtures thereon, including all oil, gas,
coal, and 
 
 
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1other minerals in the land and the right to remove oil, gas and 
2other
minerals, excluding coal, from the land, and all rights 
3and privileges
belonging or pertaining thereto, except where 
4otherwise specified by this Code.
Not included therein are 
5low-income housing tax credits authorized by
Section
42 of the 
6Internal Revenue Code, 26 U.S.C. 42. 

7 (b) Notwithstanding any other provision of law, mobile 
8homes and manufactured homes that (i) are located outside of 
9mobile home parks and (ii) are taxed under the Mobile Home 
10Local Services Tax Act on the effective date of this amendatory 
11Act of the 96th General Assembly shall continue to be taxed 
12under the Mobile Home Local Services Tax Act and shall not be 
13classified, assessed, and taxed as real property until the home 
14is sold or transferred or until the home is relocated to a 
15different parcel of land outside of a mobile home park. If a 
16mobile home or manufactured home described in this subsection 
17(b) is sold, transferred, or relocated to a different parcel of 
18land outside of a mobile home park, then the home shall be 
19classified, assessed, and taxed as real property whether or not 
20that mobile home or manufactured home is permanently affixed to 
21real property as defined in Section 5-5 of the Conveyance and 
22Encumbrance of Manufactured Homes as Real Property and 
23Severance Act or installed on a permanent foundation and 
24whether or not such mobile home or manufactured home is real 
25property as defined in Section 5-35 of the Conveyance and 
26Encumbrance of Manufactured Homes as Real Property and 
 
 
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1Severance Act. Mobile homes and manufactured homes that are 
2located outside of mobile home parks and classified, assessed, 
3and taxed as real property on the effective date of this 
4amendatory Act of the 96th General Assembly shall continue to 
5be classified, assessed, and taxed as real property whether or 
6not the mobile home or manufactured home is permanently affixed 
7to real property as defined in the Conveyance and Encumbrance 
8of Manufactured Homes as Real Property and Severance Act or 
9installed on permanent foundations and whether or not the 
10mobile home or manufactured home is real property as defined in 
11the Conveyance and Encumbrance of Manufactured Homes as Real 
12Property and Severance Act. If a mobile or manufactured home 
13that is located outside of a mobile home park is relocated to a 
14mobile home park, it must be considered chattel and must be 
15taxed according to the Mobile Home Local Services Tax Act. The 
16owner of a mobile home or manufactured home that is located 
17outside of a mobile home park may file a request with the 
18County Assessor's office county that the home be classified, 
19assessed, and taxed as real property. 
20 (c) Mobile homes and manufactured homes that are located in 
21mobile home parks must be considered chattel and must be taxed 
22according to the Mobile Home Local Services Tax Act.
23 (d) If the provisions of this Section conflict with the 
24Illinois Manufactured Housing and Mobile Home Safety Act, the 
25Mobile Home Local Services Tax Act, the Mobile Home Park Act, 
26or any other provision of law with respect to the taxation of 
 
 
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1mobile homes or manufactured homes located outside of mobile 
2home 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 
5amended 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 
9factory-assembled, completely integrated structure designed 
10for permanent habitation, with a permanent chassis, and so 
11constructed as to permit its transport, on wheels temporarily 
12or permanently attached to its frame, and is a movable or 
13portable unit that is (i) 8 body feet or more in width, (ii) 40 
14body feet or more in length, and (iii) 320 or more square feet, 
15constructed to be towed on its own chassis (comprised of frame 
16and wheels) from the place of its construction to the location, 
17or subsequent locations, at which it is installed and set up 
18according to the manufacturer's instructions and connected to 
19utilities for year-round occupancy for use as a permanent 
20habitation, and designed and situated so as to permit its 
21occupancy as a dwelling place for one or more persons, and 
22specifically includes a "manufactured home" as defined in 
23subdivision 53 of section 9-102 of the Uniform Commercial Code. 
24The term shall include units containing parts that may be 
 
 
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1folded, collapsed, or telescoped when being towed and that may 
2be expected to provide additional cubic capacity, and that are 
3designed to be joined into one integral unit capable of being 
4separated again into the components for repeated towing. The 
5term excludes campers and recreational vehicles. Mobile homes 
6and manufactured homes in mobile home parks must be assessed 
7and taxed as chattel. Mobile homes and manufactured homes 
8outside of mobile home parks must be assessed and taxed as real 
9property whether or not such mobile homes and manufactured 
10homes are permanently affixed to real property as defined in 
11Section 5-5 of the Conveyance and Encumbrance of Manufactured 
12Homes as Real Property and Severance Act or installed on 
13permanent foundations, and whether or not such mobile homes and 
14manufactured homes are real property as defined in Section 5-35 
15of the Conveyance and Encumbrance of Manufactured Homes as Real 
16Property and Severance Act. The words "mobile home" and 
17"manufactured home" are synonymous for the purposes of this 
18Act. Any such structure located outside of a mobile home park 
19shall not be
assessed and taxed construed as chattel, but must 
20be assessed and taxed as real property
as defined by Section 
211-130 of the Property Tax Code. All mobile homes and 
22manufactured homes located inside mobile home parks must be 
23considered as chattel and taxed according to this Act. Mobile

24homes and manufactured homes located on a dealer's lot for 
25resale purposes or as a temporary office shall not
be subject 
26to this tax.

 
 
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1 (b) Mobile homes and manufactured homes that (i) are 
2located outside of mobile home parks and (ii) are taxed under 
3this Act on the effective date of this amendatory Act of the 
496th General Assembly must continue to be taxed under this Act 
5and shall not be classified, assessed, and taxed as real 
6property until the home is sold, transferred, or relocated to a 
7different parcel of land outside of a mobile home park. If a 
8mobile home or manufactured home described in this subsection 
9(b) is sold, transferred, or relocated to a different parcel of 
10land outside of a mobile home park, then the home must be 
11classified, assessed, and taxed as real property whether or not 
12the mobile home or manufactured home is permanently affixed to 
13real property as defined in Section 5-5 of the Conveyance and 
14Encumbrance of Manufactured Homes as Real Property and 
15Severance Act or installed on a permanent foundation and 
16whether or not the mobile home or manufactured home is real 
17property as defined in Section 5-35 of the Conveyance and 
18Encumbrance of Manufactured Homes as Real Property and 
19Severance Act. Mobile homes and manufactured homes that are 
20located outside of mobile home parks classified, assessed, and 
21taxed as real property on the effective date of this amendatory 
22Act of the 96th General Assembly must continue to be 
23classified, assessed, and taxed as real property whether or not 
24the mobile homes and manufactured homes are permanently affixed 
25to real property as defined in Section 5-5 of the Conveyance 
26and Encumbrance of Manufactured Homes as Real Property and 
 
 
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1Severance Act or installed on permanent foundations and whether 
2or not the mobile homes and manufactured homes are real 
3property as defined in Section 5-35 of the Conveyance and 
4Encumbrance of Manufactured Homes as Real Property and 
5Severance Act. If a mobile or manufactured home that is located 
6outside of a mobile home park is relocated to a mobile home 
7park, the home must be considered chattel and must be taxed 
8according to the Mobile Home Local Services Tax Act. The owner 
9of a mobile home or manufactured home that is located outside 
10of a mobile home park may file a request with the county that 
11the home be classified, assessed, and taxed as real property. 
12 (c) Mobile homes and manufactured homes that are located in 
13mobile home parks must be considered chattel and must be taxed 
14according 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 
18manufactured home located in this State, but not located inside 
19of a mobile home park, on the
effective date of this amendatory 
20Act of the 96th General Assembly shall, within 30 days after 
21such date, record with the Office of the Recorder in the county 
22where the mobile home or manufactured home is located file with 
23the
township assessor, if any, or with the Supervisor of 
24Assessments or county
assessor if there is no township 
25assessor, or with the county assessor in those
counties in 
 
 
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1which a county assessor is elected pursuant to Section 3-45 of

2the Property Tax Code, a mobile home
registration form 
3containing the information hereinafter specified, subject to 
4the county's recording fees and record a signed copy of the 
5title or certificate of origin in the county where the home is 
6located or surrender the signed title or certificate of origin 
7to be held by the county until such time as the home is to be 
8removed from the county. Mobile home
park operators shall 
9forward a copy of the mobile home registration form
provided in 
10Section 12 of "An Act to provide for, license and regulate 
11mobile
homes and mobile home parks and to repeal an Act named 
12herein", approved
September 8, 1971, as amended, to the 
13township assessor, if any, or to
Supervisor of Assessments or 
14county assessor if there is no township assessor,
or to the 
15county assessor in those counties in which a county assessor is

16elected pursuant to Section 3-45 of the Property Tax Code, 
17within 5 days of the entry of a mobile home into such
park. The 
18owner of a mobile home or manufactured home not located in a 
19mobile home park, other than a mobile home or manufactured home 
20with respect to which the requirements of Section 5-30 of the 
21Conveyance and Encumbrance of Manufactured Homes as Real 
22Property and Severance Act and the requirements of Section 
233-116.1 or Section 3-116.2 of the Illinois Vehicle Code, as 
24applicable, have been satisfied unless with respect to the same 
25manufactured home there has been recorded an affidavit of 
26severance pursuant to Section 5-50 of the Conveyance and 
 
 
SB1227- 22 -LRB097 07200 HLH 47306 b


1Encumbrance of Manufactured Homes as Real Property and 
2Severance Act, shall,
within 30 days after initial placement of 
3such mobile home or manufactured home in any county and
within 
430 days after movement of such mobile home or manufactured home 
5to a new location, record with the Office of the Recorder in 
6the county where the mobile home or manufactured home is 
7located file with
the county assessor, Supervisor of 
8Assessments or township assessor, as the
case may be, a mobile 
9home registration showing the name and address of the
owner and 
10every occupant of the mobile home or manufactured home, the 
11location of the mobile home or manufactured home,
the year of 
12manufacture, and the square feet of floor space contained in 
13such
mobile home or manufactured home together with the date 
14that the mobile home or manufactured home became inhabited, was

15initially installed and set up in the county, or was moved to a 
16new location. Such
registration shall also include the license 
17number of such mobile home or manufactured home and of
the 
18towing vehicle, if there be any, and the State issuing such 
19licenses, subject to the county's recording fees. In the case 
20of a mobile home or manufactured home not located in a mobile 
21home park, the
registration shall be signed by the owner or 
22occupant of the mobile home or manufactured home. and the title 
23or certificate of origin shall be signed and recorded in the 
24county where the home is located or surrendered to the county 
25and held until such time the home is removed from the county. 
26Titles or certificates of origin held by a mortgage company on 
 
 
SB1227- 23 -LRB097 07200 HLH 47306 b


1the home shall be signed and recorded in the county where 
2located or surrendered to the county once the mortgage is 
3released. Failure to record the registration or surrender the 
4title or certificate of origin shall not prevent the home from 
5being assessed and taxed as real property. It is
the duty of 
6each township assessor, if any, and each Supervisor of 
7Assessments
or county assessor if there is no township 
8assessor, or the county assessor in
those counties in which a 
9county assessor is elected pursuant to Section 3-45
of the 
10Property Tax Code, to require timely
filing of a properly 
11completed registration for each mobile home or manufactured 
12home located in a mobile home park in his
or her township or 
13county, as the case may be. Any person furnishing 
14misinformation
for purposes of registration or failing to file 
15a required registration is
guilty of a Class A misdemeanor. 
16This Section applies only when the tax
permitted by Section 3 
17has been imposed on mobile homes and manufactured homes located 
18inside mobile home parks.

19(Source: P.A. 96-1477, eff. 1-1-11.)


20 Section 10-25. The Illinois Banking Act is amended by 
21changing 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 
24form banks,
as herein provided, for the purpose of discount and 
 
 
SB1227- 24 -LRB097 07200 HLH 47306 b


1deposit, buying and
selling exchange and doing a general 
2banking business, excepting the
issuing of bills to circulate 
3as money; and such banks shall have the power
to loan money on 
4personal and real estate security, and to accept and execute

5trusts upon obtaining a certificate of authority pursuant to 
6the "Corporate
Fiduciary Act", and shall be subject to all of 
7the provisions of this Act. For purposes of this Section, "real 
8estate" includes a manufactured home as defined in subdivision 
9(53) of Section 9-102 of the Uniform Commercial Code that is 
10real property as defined in Section 5-35 of the Conveyance and 
11Encumbrance of Manufactured Homes as Real Property and 
12Severance 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 
16provision of
this Act, a bank may engage in making "reverse 
17mortgage" loans.

18 For purposes of this Section, a "reverse mortgage" loan 
19shall be a loan
extended on the basis of existing equity in 
20homestead property. A bank,
in making a "reverse mortgage" 
21loan, may add deferred interest to principal
or otherwise 
22provide for the charging of interest or premium on the deferred

23interest.

24 The loans shall be repaid upon sale of the property or upon 
25the death
of the owner or, if the property is in joint tenancy, 
 
 
SB1227- 25 -LRB097 07200 HLH 47306 b


1upon the death of
the last surviving joint tenant who had an 
2interest in the property
at the time the loan was initiated.

3 "Homestead" property, for purposes of this Section, means 
4the domicile
and contiguous real estate owned and occupied by 
5the mortgagor. For purposes of this Section, "homestead" 
6includes a manufactured home as defined in subdivision (53) of 
7Section 9-102 of the Uniform Commercial Code, used as the 
8domicile, that is real property, as defined in Section 5-35 of 
9the Conveyance and Encumbrance of Manufactured Homes as Real 
10Property and Severance Act, and is owned and occupied by the 
11mortgagor. 

12 The Commissioner of Banks and Real Estate shall
prescribe 
13rules governing this Section and
Section 1-6a of the Illinois 
14Savings 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 
18bank may
engage in making revolving credit loans secured by 
19mortgages or deeds of
trust on real property or by security 
20assignments of beneficial interests
in land trusts.

21 For purposes of this Section, "revolving credit", has the 
22meaning defined
in Section 4.1 of "An Act in relation to the 
23rate of interest and other
charges in connection with sales on 
24credit and the lending of money", approved
May 24, 1879, as 
25amended.

 
 
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1 Any mortgage or deed of trust given to secure a revolving 
2credit loan may,
and when so expressed therein shall, secure 
3not only the existing indebtedness,
but also such future 
4advances, whether such advances are obligatory or to
be made at 
5the option of the lender, or otherwise, as are made within 
6twenty
years from the date thereof, to the same extent as if 
7such future advances
were made on the date of the execution of 
8such mortgage or deed of trust,
although there may be no 
9advance made at the time of execution of such mortgage
or other 
10instrument, and although there may be no indebtedness 
11outstanding
at the time any advance is made. The lien of such 
12mortgage or deed of
trust, as to third persons without actual 
13notice thereof, shall be valid as
to all such indebtedness and 
14future advances from the time said mortgage or
deed of trust is 
15filed for record in the office of the Recorder of Deeds or
the 
16Registrar of Titles of the county where the real property 
17described
therein is located. The total amount of indebtedness 
18that may be so
secured may increase or decrease from time to 
19time, but the total unpaid
balance so secured at any one time 
20shall not exceed a maximum principal
amount which must be 
21specified in such mortgage or deed of trust, plus
interest 
22thereon, and any disbursements made for the payment of taxes,

23special assessments, or insurance on said real property, with 
24interest on
such disbursements.

25 Any such mortgage or deed of trust shall be valid and have 
26priority over
all subsequent liens and encumbrances, including 
 
 
SB1227- 27 -LRB097 07200 HLH 47306 b


1statutory liens, except
taxes and assessments levied on said 
2real property.

3 For purposes of this Section, "real property" includes a 
4manufactured home as defined in subdivision (53) of Section 
59-102 of the Uniform Commercial Code, that is real property as 
6defined in Section 5-35 of the Conveyance and Encumbrance of 
7Manufactured 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 
12homeowners at
least 62 years of age be permitted to meet their 
13financial needs by
accessing the equity in their homes through 
14a reverse mortgage. The
General Assembly recognizes that many 
15restrictions and requirements that
exist to govern traditional 
16mortgage transactions are inapplicable in the
context of 
17reverse mortgages. In order to foster reverse mortgage

18transactions and better serve the citizens of this State, this 
19Section
authorizes the making of reverse mortgages, and 
20expressly relieves reverse
mortgage lenders and borrowers from 
21compliance with inappropriate requirements.

22 As used in this Section, "borrower" means any homeowner who 
23is, or whose
spouse is, at least 62 years of age.

24 For purposes of this Section, "real property" includes a 
25manufactured home as defined in subdivision (53) of Section 
 
 
SB1227- 28 -LRB097 07200 HLH 47306 b


19-102 of the Uniform Commercial Code which is real property as 
2defined in Section 5-35 of the Conveyance and Encumbrance of 
3Manufactured Homes as Real Property and Severance Act. 
4 As used in this Section, "reverse mortgage" means a 
5non-recourse loan,
secured by real property, that complies with 
6all 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 
14the 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 
 
 
SB1227- 29 -LRB097 07200 HLH 47306 b


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 
7subject 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 
22the 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 
 
 
SB1227- 30 -LRB097 07200 HLH 47306 b


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 
5unless the
loan applicant attests, in writing, that the 
6applicant has received from
the lender, at the time of initial 
7inquiry, a statement prepared by the
Department on Aging 
8regarding the advisability and availability of
independent 
9information 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 
12amended 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, 
15and rights inherent
in the ownership of the physical real 
16estate. It is the rights with which
the ownership of real 
17estate is endowed. "Real property" includes a manufactured home 
18as defined in subdivision (53) of Section 9-102 of the Uniform 
19Commercial Code that is real property as defined in Section 
205-35 of the Conveyance and Encumbrance of Manufactured Homes as 
21Real Property and Severance Act. For purposes of this Act, the

22term "Real Estate" is synonymous with "Real Property".

23(Source: P.A. 84-543.)





 
 
SB1227- 31 -LRB097 07200 HLH 47306 b


1 (205 ILCS 105/5-2) (from Ch. 17, par. 3305-2)



2 Sec. 5-2. Investment in loans. An association may
loan 
3funds to members as follows:

4 (a) On the security of withdrawable capital accounts, but 
5no such
loan shall exceed the withdrawal value of the pledged 
6account;

7 (b) On the security of real estate:

8 (1) Of a value, determined in accordance with Section 5-12 
9of this
Act, sufficient to provide good and ample security for 
10the loan;

11 (2) With a fee simple title or a leasehold title of not 
12less duration
than 10 years beyond the maturity of the loan;

13 (3) With the title established by such evidence of title as 
14is
consistent with sound lending practices in the locality;

15 (4) With the security interest in such real estate 
16evidenced by an
appropriate written instrument and the loan 
17evidenced by a note, bond or
similar written instrument. A loan 
18on the security of the whole of the
beneficial interest in a 
19land trust satisfies the requirements of this
paragraph if the 
20title to the land is held by a corporate trustee and if
the 
21real estate held in the land trust meets the other requirements 
22of
this subsection; and

23 (5) With a mortgage loan not to exceed 40 years;

24 (c) For the purpose of repair, improvement, 
25rehabilitation,
furnishing or equipment of real estate or any 
26other purpose;

 
 
SB1227- 32 -LRB097 07200 HLH 47306 b


1 (d) For the purpose of financing or refinancing an existing

2ownership interest in certificates of stock, certificates of 
3beneficial
interest or other evidence of an ownership interest 
4in, and a
proprietary lease from, a corporation, trust or 
5partnership formed for
the purpose of the cooperative ownership 
6of real estate, secured by the
assignment or transfer of such 
7certificates or other evidence of
ownership of the borrower;

8 (e) Through the purchase of loans which at the time of 
9purchase the
association could make in accordance with this 
10Section and the by-laws;

11 (f) Through the purchase of installment contracts for the 
12sale of
real estate, and title thereto which is subject to such 
13contracts, but
in each instance only if the association at the 
14time of purchase could
make a mortgage loan of the same amount 
15and for the same length of time
on the security of such real 
16estate;

17 (g) Through loans guaranteed or insured, wholly or in part 
18by the
United States or any of its instrumentalities, and 
19without regard to the
limits in amount and terms otherwise 
20imposed by this Article;

21 (h) Through secured or unsecured loans for business, 
22corporate,
personal, family, or household purposes, or for 
23secured or unsecured loans
for agricultural or commercial 
24purposes to the same extent that such
agricultural or 
25commercial loans are authorized by federal law for any
savings 
26and loan association organized under federal law and authorized 
 
 
SB1227- 33 -LRB097 07200 HLH 47306 b


1to
do business in this State, except that loans to service 
2corporations
shall not be subject to the limitations of this 
3paragraph;

4 (i) For the purpose of manufactured mobile home financing 
5subject, however, to
the regulation of the Commissioner; as 
6used in this Section, "manufactured home" means a manufactured 
7home as defined in subdivision (53) of Section 9-102 of the 
8Uniform Commercial Code; 

9 (j) Through loans to its members secured by the cash 
10surrender value of
any life insurance policy or any collateral 
11which would be a legal
investment if made by such association 
12pursuant to the terms of this Act; and

13 (k) Any provision of this Act to the contrary 
14notwithstanding, any
association may make any loan to its 
15members or investment which such
association could make if it 
16were incorporated and operating as an
association organized 
17under the laws of the United States.

18(Source: P.A. 86-137.)


19 Section 10-35. The Savings Bank Act is amended by changing 
20Sections 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 
24savings bank may loan funds as follows:

 
 
SB1227- 34 -LRB097 07200 HLH 47306 b


1 (1) On the security of deposit accounts, but no such
loan 
2shall 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, 
19rehabilitation,
furnishing, or equipment of real estate.

20 (4) For the purpose of financing or refinancing an existing

21ownership interest in certificates of stock, certificates of

22beneficial interest, other evidence of an ownership interest 
23in,
or a proprietary lease from a corporation, trust, or 
24partnership
formed for the purpose of the cooperative ownership 
25of real estate,
secured by the assignment or transfer of 
26certificates or other
evidence of ownership of the borrower.

 
 
SB1227- 35 -LRB097 07200 HLH 47306 b


1 (5) Through the purchase of loans that, at the time of

2purchase, the savings bank could make in accordance with this

3Section and the bylaws.

4 (6) Through the purchase of installment contracts for the

5sale of real estate and title thereto that is subject to the

6contracts, but in each instance only if the savings bank, at 
7the
time of purchase, could make a mortgage loan of the same 
8amount and
for the same length of time on the security of the 
9real estate.

10 (7) Through loans guaranteed or insured, wholly or in part,

11by the United States or any of its instrumentalities.

12 (8) Subject to regulations adopted by the Commissioner, 
13through
secured or unsecured loans for business, corporate, 
14commercial, or
agricultural purposes; provided that the total 
15of all loans granted under
this paragraph shall not exceed 15% 
16of the savings bank's total assets unless
a greater amount is 
17authorized in writing by the Commissioner.

18 (9) For the purpose of manufactured mobile home financing 
19subject,
however, to the regulation of the Commissioner. As 
20used in this Section, "manufactured home" means a manufactured 
21home as defined in subdivision (53) of Section 9-102 of the 
22Uniform Commercial Code. 

23 (10) Through loans secured by the cash surrender value of 
24any
life insurance policy or any collateral that would be a 
25legal
investment under the terms of this Act if made by the 
26savings bank.

 
 
SB1227- 36 -LRB097 07200 HLH 47306 b


1 (11) Any provision of this Act or any other law, except for 
2paragraph
(18) of Section
6003, to the contrary

3notwithstanding, but subject to the Financial Institutions 
4Insurance Sales
Law and subject to the Commissioner's 
5regulations, any
savings bank may make any loan or investment 
6or engage in any
activity that it could make or engage in if it 
7were organized
under State law as a savings and loan 
8association or under federal law as a
federal savings and loan 
9association or federal savings bank.

10 (12) A savings bank may issue letters of credit or other

11similar arrangements only as provided for by regulation of the

12Commissioner with regard to aggregate amounts permitted, take 
13out
commitments for stand-by letters of credit, underlying

14documentation and underwriting, legal limitations on loans of 
15the
savings bank, control and subsidiary records, and other 
16procedures
deemed necessary by the Commissioner.

17 (13) For the purpose of automobile financing, subject to 
18the
regulation of the Commissioner.

19 (14) For the purpose of financing primary, secondary,

20undergraduate, or postgraduate education.

21 (15) Through revolving lines of credit on the security of a

22first or junior lien on the borrower's personal residence, 
23based
primarily on the borrower's equity, the proceeds of which 
24may be
used for any purpose; those loans being commonly 
25referred to as home
equity loans.

26 (16) As secured or unsecured credit to cover the payment of 
 
 
SB1227- 37 -LRB097 07200 HLH 47306 b


1checks,
drafts, or other funds transfer orders in excess of the 
2available balance
of an account on which they are drawn, 
3subject to the regulations of the
Commissioner.

4 (b) For purposes of this Section, "real estate" includes a 
5manufactured home as defined in subdivision (53) of the Uniform 
6Commercial Code which is real property as defined in Section 
75-35 of the Conveyance and Encumbrance of Manufactured Homes as 
8Real 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 
12savings bank may
purchase at any sheriff's or other judicial 
13sale, either public or private,
any real estate upon which the 
14savings bank has any mortgage, lien or other
encumbrance, or in 
15which the savings bank has any other interest. The
savings bank 
16thereafter may repair, insure, improve, sell, convey, lease,

17preserve, mortgage, exchange, or otherwise dispose of real 
18estate so
acquired in the best interests of the savings bank. 
19For purposes of this Section, "real estate" includes a 
20manufactured home as defined in subdivision (53) of Section 
219-102 of the Uniform Commercial Code which is real property as 
22defined in Section 5-35 of the Conveyance and Encumbrance of 
23Manufactured Homes as Real Property and Severance Act. 

24(Source: P.A. 86-1213.)


 
 
SB1227- 38 -LRB097 07200 HLH 47306 b


1 Section 10-40. The Illinois Credit Union Act is amended by 
2changing 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 
6purpose and upon such security and terms, including
rates of 
7interest, as the Credit Committee, credit manager, or loan 
8officer
approves.
Notwithstanding the provisions of any other 
9law in connection with extensions
of credit, a credit union may 
10elect to
contract for and receive interest and fees and other 
11charges for extensions of
credit subject only to the provisions 
12of this Act and rules promulgated under
this Act, except that 
13extensions of credit secured by residential real estate
shall 
14be subject to the laws applicable thereto.
The rates of 
15interest to be charged on loans to members shall be
set by the 
16Board of Directors of each individual credit union in 
17accordance with Section 30 of this Act and such
rates may be 
18less than, but may not exceed, the maximum rate set forth in

19this Section. A borrower may repay his loan prior to maturity, 
20in whole or
in part, without penalty. The credit contract may 
21provide for the payment
by the member and receipt by the credit 
22union of all costs and
disbursements, including reasonable 
23attorney's fees and collection agency
charges, incurred by the 
24credit union to collect or enforce the debt in the
event of a 
25delinquency by the member, or in the event of a breach of any

 
 
SB1227- 39 -LRB097 07200 HLH 47306 b


1obligation of the member under the credit contract. A 
2contingency or
hourly arrangement established under an 
3agreement entered into by a credit
union with an attorney or 
4collection agency to collect a loan of a member
in default 
5shall be presumed prima facie reasonable.


6 (2) Credit unions may make loans based upon the security of 
7any
interest or equity in real estate, subject to rules and 
8regulations
promulgated by the Director. In any contract or 
9loan which
is secured by a mortgage, deed of
trust, or 
10conveyance in the nature of a mortgage, on residential real

11estate, the interest which is computed, calculated, charged, or 
12collected
pursuant to such contract or loan, or pursuant to any 
13regulation or rule
promulgated pursuant to this Act, may not be 
14computed, calculated, charged
or collected for any period of 
15time occurring after the date on which the
total indebtedness, 
16with the exception of late payment penalties, is paid
in full.


17 For purposes of this subsection (2) of this Section 46, a 
18prepayment
shall mean the payment of the total indebtedness, 
19with the exception of
late payment penalties if incurred or 
20charged, on any date before the date
specified in the contract 
21or loan agreement on which the total indebtedness
shall be paid 
22in full, or before the date on which all payments, if timely

23made, shall have been made. In the event of a prepayment of the

24indebtedness which is made on a date
after the date on which 
25interest on the indebtedness was last computed,
calculated, 
26charged, or collected but before the next date on which 
 
 
SB1227- 40 -LRB097 07200 HLH 47306 b


1interest
on the indebtedness was to be calculated, computed, 
2charged, or collected,
the lender may calculate, charge and 
3collect interest on the indebtedness
for the period which 
4elapsed between the date on which the prepayment is
made and 
5the date on which interest on the indebtedness was last 
6computed,
calculated, charged or collected at a rate equal to 
71/360 of the annual
rate for each day which so elapsed, which 
8rate shall be applied to the
indebtedness outstanding as of the 
9date of prepayment. The lender shall
refund to the borrower any 
10interest charged or collected which exceeds that
which the 
11lender may charge or collect pursuant to the preceding 
12sentence.
The provisions of this amendatory Act of 1985 shall 
13apply only to contracts
or loans entered into on or after the 
14effective date of this amendatory
Act.


15 (3) Notwithstanding any other provision of this Act, a 
16credit union
authorized under this Act to make loans secured by 
17an interest or equity in
real estate may engage in making 
18"reverse mortgage" loans to persons for
the purpose of making 
19home improvements or repairs, paying insurance
premiums or 
20paying real estate taxes on the homestead properties
of such 
21persons. If made, such loans shall be made on such terms and

22conditions as the credit union shall determine and as shall be 
23consistent
with the provisions of this Section and such rules 
24and regulations as the
Director shall promulgate hereunder. For 
25purposes of this Section, a
"reverse mortgage" loan shall be a 
26loan extended on the basis of existing
equity in homestead 
 
 
SB1227- 41 -LRB097 07200 HLH 47306 b


1property and secured by a mortgage on such property.
Such loans 
2shall be repaid upon the sale of the property or upon the death

3of the owner or, if the property is in joint tenancy, upon the 
4death of the
last surviving joint tenant who had such an 
5interest in the property at the
time the loan was initiated, 
6provided, however, that the credit union and
its member may by 
7mutual agreement, establish other repayment terms. A
credit 
8union, in making a "reverse mortgage" loan, may add deferred

9interest to principal or otherwise provide for the charging of 
10interest or
premiums on such deferred interest. "Homestead" 
11property, for purposes of
this Section, means the domicile and 
12contiguous real estate owned and
occupied by the mortgagor. The 
13Director shall promulgate rules and
regulations under this 
14Section; provided that such rules and regulations
need not be 
15promulgated jointly with any other administrative agency of 
16this State.


17 (4) Notwithstanding any other provisions of this Act, a 
18credit union
authorized under this Act to make loans secured by 
19an interest or equity
in real property may engage in making 
20revolving credit loans secured by
mortgages or deeds of trust 
21on such real property or by security
assignments of beneficial 
22interests in land trusts.


23 For purposes of this Section, "revolving credit" has the 
24meaning defined
in Section 4.1 of the Interest Act.


25 Any mortgage or deed of trust given to secure a revolving 
26credit loan may,
and when so expressed therein shall, secure 
 
 
SB1227- 42 -LRB097 07200 HLH 47306 b


1not only the existing indebtedness
but also such future 
2advances, whether such advances are obligatory or to
be made at 
3the option of the lender, or otherwise, as are made within 
4twenty
years from the date thereof, to the same extent as if 
5such future advances
were made on the date of the execution of 
6such mortgage or deed of trust,
although there may be no 
7advance made at the time of execution of such mortgage
or other 
8instrument, and although there may be no indebtedness 
9outstanding
at the time any advance is made. The lien of such 
10mortgage or deed of trust,
as to third persons
without actual 
11notice thereof, shall be valid as to all such indebtedness
and 
12future advances form the time said mortgage or deed of trust is 
13filed
for record in the office of the Recorder of Deeds or the 
14Registrar of Titles
of the county where the real property 
15described therein is located. The
total amount of indebtedness 
16that may be so secured may increase or decrease
from time to 
17time, but the total unpaid balance so secured at any one time

18shall not exceed a maximum principal amount which must be 
19specified in such
mortgage or deed of trust, plus interest 
20thereon, and any disbursements
made for the payment of taxes, 
21special assessments, or insurance on said
real property, with 
22interest on such disbursements.


23 Any such mortgage or deed of trust shall be valid and have 
24priority over
all subsequent liens and encumbrances, including 
25statutory liens, except
taxes and assessments levied on said 
26real property.


 
 
SB1227- 43 -LRB097 07200 HLH 47306 b


1 (4-5) For purposes of this Section, "real estate" and "real 
2property" include a manufactured home as defined in subdivision 
3(53) of Section 9-102 of the Uniform Commercial Code which is 
4real property as defined in Section 5-35 of the Conveyance and 
5Encumbrance of Manufactured Homes as Real Property and 
6Severance Act. 
7 (5) Compliance with federal or Illinois preemptive laws or 
8regulations
governing loans made by a credit union chartered 
9under this Act shall
constitute compliance with this Act.


10 (6) Credit unions may make residential real estate mortgage 
11loans on terms and conditions established by the United States 
12Department of Agriculture through its Rural Development 
13Housing and Community Facilities Program. The portion of any 
14loan in excess of the appraised value of the real estate shall 
15be allocable only to the guarantee fee required under the 
16program. 
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 
20union
authorized under this Act to make loans secured by an 
21interest or equity in
real estate may make non-recourse reverse 
22mortgage loans as provided in
Section 6.1 of the Illinois 
23Banking Act.

24 For purposes of this Section, "real estate" includes a 
25manufactured home as defined in subdivision (53) of Section 
 
 
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19-102 of the Uniform Commercial Code that is real property as 
2defined in Section 5-35 of the Conveyance and Encumbrance of 
3Manufactured Homes as Real Property and Severance Act. 
4(Source: P.A. 87-488.)


5 Section 10-45. The Residential Mortgage License Act of 1987 
6is 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 
10estate" shall mean any real property located in Illinois, upon 
11which is constructed or intended to be constructed a dwelling. 
12Those terms include a manufactured home as defined in 
13subdivision (53) of Section 9-102 of the Uniform Commercial 
14Code which is real property as defined in Section 5-35 of the 
15Conveyance and Encumbrance of Manufactured Homes as Real 
16Property and Severance Act. 
17 (b) "Making a residential mortgage loan" or "funding a 
18residential mortgage
loan" shall mean for compensation or gain, 
19either directly or indirectly,
advancing funds or making a 
20commitment to advance funds to a loan applicant
for a 
21residential mortgage loan.
22 (c) "Soliciting, processing, placing, or negotiating a 
23residential
mortgage loan" shall mean for compensation or gain, 
24either directly or
indirectly, accepting or offering to accept 
 
 
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1an application for a
residential mortgage loan, assisting or 
2offering to assist in the
processing of an application for a 
3residential mortgage loan on behalf of a
borrower, or 
4negotiating or offering to negotiate the terms or conditions
of 
5a residential mortgage loan with a lender on behalf of a 
6borrower
including, but not limited to, the submission of 
7credit packages for the
approval of lenders, the preparation of 
8residential mortgage loan closing
documents, including a 
9closing 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 
 
 
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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 
 
 
SB1227- 47 -LRB097 07200 HLH 47306 b


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 
10mean a person,
partnership, association, corporation, or any 
11other entity who or which is
licensed pursuant to this Act to 
12engage in the activities regulated by
this Act.
13 (f) "Mortgage loan" "residential mortgage loan" or "home

14mortgage loan" shall mean any loan primarily for personal, 
15family, or household use that is secured by a mortgage, deed of 
16trust, or other equivalent consensual security interest on a 
17dwelling as defined in Section 103(v) of the federal Truth in 
18Lending Act, or residential real estate upon which is 
19constructed or intended to be constructed a dwelling.
20 (g) "Lender" shall mean any person, partnership, 
21association,
corporation, or any other entity who either lends 
22or invests money in
residential mortgage loans.
23 (h) "Ultimate equitable owner" shall mean a person who, 
24directly
or indirectly, owns or controls an ownership interest 
25in a corporation,
foreign corporation, alien business 
26organization, trust, or any other form
of business organization 
 
 
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1regardless of whether the person owns or controls
the ownership 
2interest through one or more persons or one or more proxies,

3powers of attorney, nominees, corporations, associations, 
4partnerships,
trusts, joint stock companies, or other entities 
5or devices, or any
combination thereof.
6 (i) "Residential mortgage financing transaction" shall 
7mean the negotiation,
acquisition, sale, or arrangement for or 
8the offer to negotiate, acquire,
sell, or arrange for, a 
9residential mortgage loan or residential mortgage
loan 
10commitment.
11 (j) "Personal residence address" shall mean a street 
12address and shall
not include a post office box number.
13 (k) "Residential mortgage loan commitment" shall mean a 
14contract for
residential mortgage loan financing.
15 (l) "Party to a residential mortgage financing 
16transaction" shall mean a
borrower, lender, or loan broker in a 
17residential mortgage financing
transaction.
18 (m) "Payments" shall mean payment of all or any of the 
19following:
principal, interest and escrow reserves for taxes, 
20insurance and other related
reserves, and reimbursement for 
21lender advances.
22 (n) "Commissioner" shall mean the Commissioner of Banks and 
23Real Estate, except that, beginning on April 6, 2009 (the 
24effective date of Public Act 95-1047), all references in this 
25Act to the Commissioner of Banks and Real Estate are deemed, in 
26appropriate contexts, to be references to the Secretary of 
 
 
SB1227- 49 -LRB097 07200 HLH 47306 b


1Financial and Professional Regulation, or his or her designee, 
2including the Director of the Division of Banking of the 
3Department of Financial and Professional Regulation.
4 (n-1) "Director" shall mean the Director of the Division of 
5Banking of the Department of Financial and Professional 
6Regulation, except that, beginning on July 31, 2009 (the 
7effective date of Public Act 96-112), all references in this 
8Act to the Director are deemed, in appropriate contexts, to be 
9the Secretary of Financial and Professional Regulation, or his 
10or her designee, including the Director of the Division of 
11Banking of the Department of Financial and Professional 
12Regulation. 
13 (o) "Loan brokering", "brokering", or "brokerage service" 
14shall mean the act
of helping to obtain from another entity, 
15for a borrower, a loan secured by
residential real estate 
16situated in Illinois or assisting a borrower in
obtaining a 
17loan secured by residential real estate situated in Illinois in

18return for consideration to be paid by either the borrower or 
19the lender
including, but not limited to, contracting for the 
20delivery of residential
mortgage loans to a third party lender 
21and soliciting, processing, placing,
or negotiating 
22residential mortgage loans.
23 (p) "Loan broker" or "broker" shall mean a person, 
24partnership,
association, corporation, or limited liability 
25company, other than
those persons, partnerships,
associations, 
26corporations, or limited liability companies exempted
from 
 
 
SB1227- 50 -LRB097 07200 HLH 47306 b


1licensing pursuant to Section
1-4, subsection (d), of this Act, 
2who performs the activities described
in subsections (c) and 
3(o) of this Section.
4 (q) "Servicing" shall mean the collection or remittance for 
5or the
right or obligation to collect or remit for any lender, 
6noteowner,
noteholder, or for a licensee's own account, of 
7payments, interests,
principal, and trust items such as hazard 
8insurance and taxes on a
residential mortgage loan in 
9accordance with the terms of the residential
mortgage loan; and 
10includes loan payment follow-up, delinquency loan
follow-up, 
11loan analysis and any notifications to the borrower that are

12necessary to enable the borrower to keep the loan current and 
13in good standing.
14 (r) "Full service office" shall mean an office, provided by 
15the licensee and not subleased from the licensee's employees, 
16and staff in Illinois
reasonably adequate to handle efficiently 
17communications, questions, and
other matters relating to any 
18application for, or an existing home mortgage
secured by 
19residential real estate situated in Illinois
with respect to 
20which the licensee is brokering, funding originating,

21purchasing, or servicing. The management and operation of each 
22full service
office must include observance of good business 
23practices such as proper signage; adequate,
organized, and 
24accurate books and records; ample phone lines, hours of

25business, staff training and supervision, and provision for a 
26mechanism to
resolve consumer inquiries, complaints, and 
 
 
SB1227- 51 -LRB097 07200 HLH 47306 b


1problems. The Commissioner
shall issue regulations with regard 
2to these requirements and shall include
an evaluation of 
3compliance with this Section in his or her periodic
examination 
4of each licensee.
5 (s) "Purchasing" shall mean the purchase of conventional or

6government-insured mortgage loans secured by residential real 
7estate
situated in Illinois from either the lender or from the 
8secondary market.
9 (t) "Borrower" shall mean the person or persons who seek 
10the services of
a loan broker, originator, or lender.
11 (u) "Originating" shall mean the issuing of commitments for 
12and funding of
residential mortgage loans.
13 (v) "Loan brokerage agreement" shall mean a written 
14agreement in which a
broker or loan broker agrees to do either 
15of 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,

22dissemination, or circulation to induce, directly or 
23indirectly,
any person to enter into a residential mortgage 
24loan agreement or
residential mortgage loan brokerage 
25agreement relative to a
mortgage secured by residential real 
26estate situated in Illinois.
 
 
SB1227- 52 -LRB097 07200 HLH 47306 b


1 (x) "Residential Mortgage Board" shall mean the 
2Residential Mortgage
Board created in Section 1-5 of this Act.
3 (y) "Government-insured mortgage loan" shall mean any 
4mortgage loan made
on the security of residential real estate 
5insured by the Department of
Housing and Urban Development or 
6Farmers Home Loan Administration, or
guaranteed by the Veterans 
7Administration.
8 (z) "Annual audit" shall mean a certified audit of the 
9licensee's books and
records and systems of internal control 
10performed by a certified public
accountant in accordance with 
11generally accepted accounting principles
and generally 
12accepted auditing standards.
13 (aa) "Financial institution" shall mean a savings and loan

14association, savings bank, credit union, or a bank organized 
15under the
laws of Illinois or a savings and loan association, 
16savings bank,
credit union or a bank organized under the laws 
17of the United States and
headquartered in Illinois.
18 (bb) "Escrow agent" shall mean a third party, individual or 
19entity
charged with the fiduciary obligation for holding escrow 
20funds on a
residential mortgage loan pending final payout of 
21those funds
in accordance with the terms of the residential 
22mortgage loan.
23 (cc) "Net worth" shall have the meaning ascribed thereto in 
24Section 3-5
of this Act.
25 (dd) "Affiliate" shall mean:
26  (1) any entity that directly controls or is controlled 
 
 
SB1227- 53 -LRB097 07200 HLH 47306 b


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 
19terms used
in this Act for the efficient and clear 
20administration of this Act.
21 (ee) "First tier subsidiary" shall be defined by regulation

22incorporating the comparable definitions used by the Office of 
23the
Comptroller of the Currency and the Illinois Commissioner 
24of Banks
and Real Estate.
25 (ff) "Gross delinquency rate" means the quotient 
26determined by dividing
(1) the sum of (i) the number of 
 
 
SB1227- 54 -LRB097 07200 HLH 47306 b


1government-insured residential mortgage loans
funded or 
2purchased by a licensee in the preceding calendar year that are

3delinquent and (ii) the number of conventional residential 
4mortgage loans
funded or purchased by the licensee in the 
5preceding calendar year that are
delinquent by (2) the sum of 
6(i) the number of government-insured residential
mortgage 
7loans funded or purchased by the licensee in the preceding 
8calendar
year and (ii) the number of conventional residential 
9mortgage loans funded or
purchased by the licensee in the 
10preceding calendar year.
11 (gg) "Delinquency rate factor" means the factor set by rule 
12of the
Commissioner that is multiplied by the average gross 
13delinquency rate of
licensees, determined annually for the 
14immediately preceding calendar year, for
the purpose of 
15determining which licensees shall be examined by the

16Commissioner pursuant to subsection (b) of Section 4-8 of this 
17Act.
18 (hh) "Loan originator" means any natural person who, for 
19compensation or in
the expectation of compensation, either 
20directly or indirectly makes, offers to
make, solicits, places, 
21or negotiates a residential mortgage loan. This definition 
22applies only to Section 7-1 of this Act. 
23 (ii) "Confidential supervisory information" means any 
24report of examination, visitation, or investigation prepared 
25by the Commissioner under this Act, any report of examination 
26visitation, or investigation prepared by the state regulatory 
 
 
SB1227- 55 -LRB097 07200 HLH 47306 b


1authority of another state that examines a licensee, any 
2document or record prepared or obtained in connection with or 
3relating to any examination, visitation, or investigation, and 
4any record prepared or obtained by the Commissioner to the 
5extent that the record summarizes or contains information 
6derived from any report, document, or record described in this 
7subsection. "Confidential supervisory information" does not 
8include any information or record routinely prepared by a 
9licensee and maintained in the ordinary course of business or 
10any information or record that is required to be made publicly 
11available pursuant to State or federal law or rule.

12 (jj) "Mortgage loan originator" means an individual who for 
13compensation or gain or in the expectation of compensation or 
14gain:
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 
19engaged solely as a loan processor or underwriter except as 
20otherwise provided in subsection (d) of Section 7-1A of this 
21Act.
22 "Mortgage loan originator" does not include a person or 
23entity that only performs real estate brokerage activities and 
24is licensed in accordance with the Real Estate License Act of 
252000, unless the person or entity is compensated by a lender, a 
26mortgage broker, or other mortgage loan originator, or by any 
 
 
SB1227- 56 -LRB097 07200 HLH 47306 b


1agent of that lender, mortgage broker, or other mortgage loan 
2originator.
3 "Mortgage loan originator" does not include a person or 
4entity solely involved in extensions of credit relating to 
5timeshare plans, as that term is defined in Section 101(53D) of 
6Title 11, United States Code.
7 (kk) "Depository institution" has the same meaning as in 
8Section 3 of the Federal Deposit Insurance Act, and includes 
9any credit union. 
10 (ll) "Dwelling" means a residential structure or mobile 
11home which contains one to 4 family housing units, or 
12individual units of condominiums or cooperatives. 
13 (mm) "Immediate family member" means a spouse, child, 
14sibling, parent, grandparent, or grandchild, and includes 
15step-parents, step-children, step-siblings, or adoptive 
16relationships.
17 (nn) "Individual" means a natural person. 
18 (oo) "Loan processor or underwriter" means an individual 
19who performs clerical or support duties as an employee at the 
20direction of and subject to the supervision and instruction of 
21a person licensed, or exempt from licensing, under this Act. 
22"Clerical or support duties" includes subsequent to the receipt 
23of 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
 
 
SB1227- 57 -LRB097 07200 HLH 47306 b


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" 
15means a mortgage licensing system developed and maintained by 
16the Conference of State Bank Supervisors and the American 
17Association of Residential Mortgage Regulators for the 
18licensing and registration of licensed mortgage loan 
19originators. 
20 (qq) "Nontraditional mortgage product" means any mortgage 
21product other than a 30-year fixed rate mortgage.
22 (rr) "Person" means a natural person, corporation, 
23company, limited liability company, partnership, or 
24association.
25 (ss) "Real estate brokerage activity" means any activity 
26that involves offering or providing real estate brokerage 
 
 
SB1227- 58 -LRB097 07200 HLH 47306 b


1services 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 
17individual 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
 
 
SB1227- 59 -LRB097 07200 HLH 47306 b


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 
5assigned by protocols established by the Nationwide Mortgage 
6Licensing System and Registry. 
7 (vv) "Residential mortgage license" means a license issued 
8pursuant to Section 1-3, 2-2, or 2-6 of this Act. 
9 (ww) "Mortgage loan originator license" means a license 
10issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act. 
11 (xx) "Secretary" means the Secretary of the Department of 
12Financial and Professional Regulation, or a person authorized 
13by the Secretary or by this Act to act in the Secretary's 
14stead. 
15(Source: P.A. 95-1047, eff. 4-6-09; 96-112, eff. 7-31-09; 
1696-1000, eff. 7-2-10; 96-1216, eff. 1-1-11.)

17 Section 10-50. The Mobile Home Park Act is amended by 
18changing 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, 
21completely integrated structure designed for permanent 
22habitation, with a permanent chassis, and so constructed as to 
23permit its transport, on wheels temporarily or permanently 
24attached to its frame, and is a movable or portable unit that 
 
 
SB1227- 60 -LRB097 07200 HLH 47306 b


1is (i) 8 body feet or more in width, (ii) 40 body feet or more 
2in length, and (iii) 320 or more square feet, constructed to be 
3towed on its own chassis (comprised of frame and wheels) from 
4the place of its construction to the location, or subsequent 
5locations, at which it is installed and set up according to the 
6manufacturer's instructions and connected to utilities for 
7year-round occupancy for use as a permanent habitation, and 
8designed and situated so as to permit its occupancy as a 
9dwelling place for one or more persons, and specifically 
10includes a "manufactured home" as defined in subdivision (53) 
11of Section 9-102 of the Uniform Commercial Code. The term shall 
12include units containing parts that may be folded, collapsed, 
13or telescoped when being towed and that may be expected to 
14provide additional cubic capacity, and that are designed to be 
15joined into one integral unit capable of being separated again 
16into the components for repeated towing. The term excludes 
17campers and recreational vehicles. The term "mobile home"
shall 
18not include modular homes and their support systems. The words 
19"mobile home" and "manufactured home" are synonymous for the 
20purposes 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 
23changing Section 10 as follows:




24 (210 ILCS 117/10)



 
 
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1 Sec. 10. Definitions. As used in this Act:

2 "Manufactured home" means a factory-assembled, completely 
3integrated structure designed for permanent habitation, with a 
4permanent chassis, and so constructed as to permit its 
5transport, on wheels temporarily or permanently attached to its 
6frame, and is a movable or portable unit that is (i) 8 body 
7feet 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 
9own chassis (comprised of frame and wheels) from the place of 
10its construction to the location, or subsequent locations, at 
11which it is installed and set up according to the 
12manufacturer's instructions and connected to utilities for 
13year-round occupancy for use as a permanent habitation, and 
14designed and situated so as to permit its occupancy as a 
15dwelling place for one or more persons, and specifically 
16includes a "manufactured home" as defined in subdivision (53) 
17of Section 9-102 of the Uniform Commercial Code. The term shall 
18include units containing parts that may be folded, collapsed, 
19or telescoped when being towed and that may be expected to 
20provide additional cubic capacity, and that are designed to be 
21joined into one integral unit capable of being separated again 
22into the components for repeated towing. The term excludes 
23campers and recreational vehicles. The words "mobile home" and 
24"manufactured home" are synonymous for the purposes of this 
25Act. 

26 "Abandoned mobile home" means a mobile home located inside 
 
 
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1a mobile home park that has no owner currently
residing in the 
2mobile home or authorized tenant of the owner currently

3residing in the mobile home to the best knowledge of the 
4municipality;
has had its electricity,
natural gas, sewer, and 
5water payments declared delinquent
by the utility companies 
6that are providing such services; and for which
the Mobile Home 
7Privilege Tax, imposed under the Mobile Home Local
Services Tax 
8Act, is delinquent for at least 3 months. A mobile home 
9abandoned outside a mobile home park must be treated like other 
10real property for condemnation purposes. 

11 "Municipality" means any city, village, incorporated town, 
12or its duly
authorized agent. If an abandoned mobile home is 
13located in an
unincorporated area, the county where the mobile 
14home is located shall have
all powers granted to a
municipality 
15under this Act.

16(Source: P.A. 96-1477, eff. 1-1-11.)


17 Section 10-60. The Illinois Manufactured Housing and 
18Mobile Home Safety Act is amended by changing Section 2 as 
19follows:




20 (430 ILCS 115/2) (from Ch. 67 1/2, par. 502)



21 Sec. 2. 
Unless clearly indicated otherwise by the context, 
22the
following words and terms when used in this Act, for the 
23purpose of this
Act, shall have the following meanings:

24 (a) "Manufactured home" means "manufactured home" as 
 
 
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1defined in subdivision (53) of Section 9-102 of the Uniform 
2Commercial Code. "Mobile home" means a factory-assembled, 
3completely integrated structure, constructed on or before June 
430, 1976, designed for permanent habitation, with a permanent 
5chassis, and so constructed as to permit its transport, on 
6wheels temporarily or permanently attached to its frame, that 
7is a movable or portable unit that is constructed to be towed 
8on its own chassis (comprised of frame and wheels) from the 
9place of its construction to the location, or subsequent 
10locations, at which it is connected to utilities for year-round 
11occupancy for use as a permanent habitation, and designed and 
12situated so as to permit its occupancy as a dwelling place for 
13one or more persons. a factory-assembled, completely 
14integrated structure designed for permanent habitation, with a 
15permanent chassis, and so constructed as to permit its 
16transport, on wheels temporarily or permanently attached to its 
17frame, and is a movable or portable unit that is (i) 8 body 
18feet 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 
20own chassis (comprised of frame and wheels) from the place of 
21its construction to the location, or subsequent locations, at 
22which it is installed and set up according to the 
23manufacturer's instructions and connected to utilities for 
24year-round occupancy for use as a permanent habitation, and 
25designed and situated so as to permit its occupancy as a 
26dwelling place for one or more persons. The terms "manufactured 
 
 
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1home" and "mobile home" term shall include units otherwise 
2meeting their respective definitions containing parts that may 
3be folded, collapsed, or telescoped when being towed and that 
4may be expected to provide additional cubic capacity, and that 
5are designed to be joined into one integral unit capable of 
6being separated again into the components for repeated towing. 
7The terms "mobile home" and "manufactured home" exclude term 
8excludes campers and recreational vehicles. The terms "mobile 
9home" and "manufactured home" do not include modular homes or 
10manufactured housing units.

11 (b) "Person" means a person, partnership, corporation, or 
12other
legal entity.

13 (c) "Manufacturer" means any person who manufactures 
14mobile homes or
manufactured housing at the place or places, 
15either on or away from the
building site, at which machinery, 
16equipment and other capital goods are
assembled and operated 
17for the purpose of making, fabricating, forming
or assembling 
18mobile homes or manufactured housing.

19 (d) "Department" means the Department of Public Health.

20 (e) "Director" means the Director of the Department of 
21Public
Health.

22 (f) "Dealer" means any person, other than a manufacturer, 
23as defined
in this Act, who sells 3 or more mobile homes or 
24manufactured housing
units in any consecutive 12-month period.

25 (g) "Codes" means the safety codes for manufactured housing 
26and
mobile homes promulgated by the Department. The Codes shall 
 
 
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1contain the
standards and requirements for manufactured 
2housing and mobile homes so
that adequate performance for the 
3intended use is made the test of
acceptability. The Code of 
4Standards shall permit the use of new and
used technology, 
5techniques, methods and materials, for both
manufactured 
6housing and mobile homes, consistent with recognized and

7accepted codes and standards developed by the International 
8Code Council (ICC) or by the organizations that formed the ICC 
9in 1994: Building Officials and Code Administrators, the 
10International Conference of Building Officials, the
Southern 
11Building Codes Congress International, the National Fire 
12Protection
Association, the International Association of 
13Plumbing and Mechanical
Officials, the American National 
14Standards Institute, the Illinois State
Plumbing Code, and the 
15United States Department of Housing and Urban
Development, 
16hereinafter referred to as "HUD", applying to manufactured

17housing and mobile homes installed and set up according to the 
18manufacturer's instructions. A copy of said safety codes, 
19including said
revisions thereof is on file with the 
20Department.

21 (h) "Seal" means a device or insignia issued by the 
22Department to be
displayed on the exterior of the mobile home 
23or the interior of a manufactured housing
unit or modular home 
24to evidence compliance with the applicable safety code.

25 (i) "Modular home" means a
building assembly or system of 
26building sub-assemblies, designed for
habitation as a dwelling 
 
 
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1for one or more persons, including the
necessary electrical, 
2plumbing, heating, ventilating and other service
systems, 
3which is of closed or open construction and which is made or

4assembled by a manufacturer, on or off the building site, for

5installation, or assembly and installation, on the building 
6site, installed and set up according to the manufacturer's 
7instructions on an approved foundation and support system. The 
8construction of modular dwelling units located in Illinois is 
9regulated by the Illinois Department of Public Health.

10 (j) "Closed construction" is any building, component, 
11assembly or
system manufactured in such a manner that all 
12portions cannot readily be
inspected at the installation site 
13without disassembly, damage to, or
destruction thereof.

14 (k) "Open construction" is any building, component, 
15assembly or
system manufactured in such a manner that all 
16portions can be readily
inspected at the installation site 
17without disassembly, damage to, or
destruction thereof.

18 (l) "Approved foundation and support system" means, for a 
19modular home or modular dwelling unit, a closed perimeter 
20formation
consisting of materials such as concrete, mortared 
21concrete block, or
mortared brick extending into the ground 
22below the frost line which
shall include, but not necessarily 
23be limited to, cellars, basements, or
crawl spaces, and does 
24include the use of piers supporting the marriage wall of the 
25home that extend below the frost line.

26 (m) "Code compliance certificate" means the certificate 
 
 
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1provided by
the manufacturer to the Department that warrants 
2that the manufactured
housing unit or mobile home complies with 
3the applicable code.

4 (n) "Manufactured housing", "manufactured housing unit", 
5"modular dwelling", and "modular home" shall not be confused 
6with "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 
9is 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 
13Health.

14 "Licensed installer" means a person who has successfully

15completed a manufactured home installation course approved
by 
16the Department and paid the required fees.

17 "Manufactured home" means a "manufactured home", as 
18defined in subdivision (53) of section 9-102 of the Uniform 
19Commercial Code. "Mobile home" means a factory-assembled, 
20completely integrated structure, constructed on or before June 
2130, 1976, designed for permanent habitation, with a permanent 
22chassis, and so constructed as to permit its transport, on 
23wheels temporarily or permanently attached to its frame, that 
24is a movable or portable unit that is constructed to be towed 
 
 
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1on its own chassis (comprised of frame and wheels) from the 
2place of its construction to the location, or subsequent 
3locations, at which it is connected to utilities for year-round 
4occupancy for use as a permanent habitation, and designed and 
5situated so as to permit its occupancy as a dwelling place for 
6one or more persons. a factory-assembled, completely 
7integrated structure designed for permanent habitation, with a 
8permanent chassis, and so constructed as to permit its 
9transport, on wheels temporarily or permanently attached to its 
10frame, and is a movable or portable unit that is (i) 8 body 
11feet 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 
13own chassis (comprised of frame and wheels) from the place of 
14its construction to the location, or subsequent locations, at 
15which it is installed and set up according to the 
16manufacturer's instructions and connected to utilities for 
17year-round occupancy for use as a permanent habitation, and 
18designed and situated so as to permit its occupancy as a 
19dwelling place for one or more persons. The terms "manufactured 
20home" and "mobile home" term shall include units otherwise 
21meeting their respective definitions containing parts that may 
22be folded, collapsed, or telescoped when being towed and that 
23may be expected to provide additional cubic capacity, and that 
24are designed to be joined into one integral unit capable of 
25being separated again into the components for repeated towing. 
26The terms "manufactured home" and "mobile home" exclude term 
 
 
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1excludes campers and recreational vehicles.

2 "Manufacturer" means a manufacturer of a manufactured 
3home, whether
the manufacturer is located within or outside of 
4the State of Illinois.

5 "Mobile home" or "manufactured home" does not include a 
6modular home.

7 "Mobile home park" means a tract of land or 2 contiguous 
8tracts of land that contain sites with the necessary utilities 
9for 5 or more mobile homes or manufactured homes. A mobile home 
10park may be operated either free of charge or for revenue 
11purposes.

12(Source: P.A. 96-1477, eff. 1-1-11.)


13 Section 10-70. The Illinois Vehicle Code is amended by 
14changing Sections 3-100, 3-102, 3-103, 3-104, 3-106, 3-107, 
153-109, 3-110, 3-116, 3-202, 3-205, 3-207, and 3-208 and by 
16adding Sections 1-144.03, 3-116.1, 3-116.2, and 3-116.3 as 
17follows:

18 (625 ILCS 5/1-144.03 new)
19 Sec. 1-144.03. Mobile home or manufactured home. A mobile 
20home or manufactured home means a manufactured home as defined 
21in subdivision (53) of Section 9-102 of the Uniform Commercial 
22Code.




23 (625 ILCS 5/3-100) (from Ch. 95 1/2, par. 3-100)



 
 
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1 Sec. 3-100. Definitions. For the purposes of this Chapter, 
2the following words shall
have the meanings ascribed to them:

3 "Electronic" includes electrical, digital, magnetic, 
4optical,
electromagnetic, or any other form of technology that 
5entails capabilities
similar to these technologies.

6 "Electronic record" means a record generated, 
7communicated, received, or
stored by electronic means for use 
8in an information system or for
transmission from one 
9information system to another.

10 "Electronic signature" means a signature in electronic 
11form attached to or
logically associated with an electronic 
12record.

13 "Owner" means a person who holds legal document of 
14ownership of a vehicle,
limited to a certificate of origin, 
15certificate of title, salvage certificate,
or junking 
16certificate. However, in the event a vehicle is the subject of 
17an
agreement for the conditional sale or lease thereof with the

18right of purchase upon performance of the conditions stated in 
19the
agreement and with an immediate right of possession vested 
20in the
conditional vendee or lessee, or in the event a 
21mortgagor of such vehicle
is entitled to possession, then such 
22conditional vendee or lessee or
mortgagor shall be deemed the 
23owner for the purpose of this Chapter,
except as provided under 
24paragraph (c) of Section 3-118.

25 "Record" means information that is inscribed, stored, or 
26otherwise fixed
on a tangible medium or that is stored in an 
 
 
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1electronic or other medium
and is retrievable in perceivable 
2form.

3 "Signature" or "signed" includes any symbol executed or 
4adopted, or any
security procedure employed or adopted, using 
5electronic means or
otherwise, by or on behalf of a person with 
6intent to authenticate a
record.

7 "Vehicle" means a vehicle as defined in Section 1-217 of 
8this 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, 
11eff.
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 
16owned by the
United States unless it is registered in this 
17State;

18 2. A vehicle owned by a manufacturer or dealer and held for 
19sale, even
though incidentally moved on the highway or used for 
20purposes of testing or
demonstration, provided a dealer 
21reassignment area is still available on the
manufacturer's 
22certificate of origin or the Illinois title; or a vehicle used

23by a manufacturer solely for testing;

24 3. A vehicle owned by a non-resident of this State and not 
25required by
law to be registered in this State;

 
 
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1 4. A motor vehicle regularly engaged in the interstate 
2transportation of
persons or property for which a currently 
3effective certificate of title
has been issued in another 
4State;

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 
9semitrailer registered in
the State prior to April 1, 1998.

10 9. A manufactured home for which an affidavit of affixation 
11has been recorded pursuant to the Conveyance and Encumbrance of 
12Manufactured Homes as Real Property and Severance Act unless 
13with respect to the same manufactured home there has been 
14recorded 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 
19mobile equipment may
apply for and obtain a certificate of 
20title on it. All of the provisions of
this chapter, except part 
21(e) of Section 3-104, are applicable to a
certificate of title 
22so issued, except that a person who receives a
transfer of an 
23interest in the vehicle without knowledge of the certificate
of 
24title is not prejudiced by reason of the existence of the 
25certificate,
and the perfection of a security interest under 
 
 
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1this act is not effective
until the lienholder has complied 
2with the provisions of applicable law
which otherwise relate to 
3the perfection of security interests in personal
property.

4 An application for an optional certificate of title must be 
5accompanied
by either an exemption determination from the 
6Department of Revenue showing
that no tax imposed under the 
7"Use Tax Act" or the "Retailers' Occupation
Tax Act" is owed by 
8anyone with respect to that vehicle or by a receipt
from the 
9Department of Revenue showing that any tax so imposed has been

10paid. No optional certificate of title shall be issued in the 
11absence of
such a receipt or exemption determination.

12 If the proof of payment or of nonliability is, after the 
13issuance of the
optional certificate of title, found to be 
14invalid, the Secretary of State
shall revoke the optional 
15certificate of title and require that it be
returned to him.

16 (b) The owner of a manufactured home which is permanently 
17affixed to real estate and for which a certificate of title has 
18not previously been issued and surrendered for cancellation may 
19apply for a certificate of title, including, if applicable, a 
20certificate of title issued in accordance with subsection (b) 
21of Section 3-109, which shall be issued for the sole purpose of 
22(i) surrendering such certificate of title for cancellation in 
23accordance with Section 3-116.2 or (ii) satisfying the 
24requirements of subdivision (e)(4) of Section 9-334 of the 
25Uniform Commercial Code. The Secretary of State shall issue a 
26certificate of title, in accordance with this Chapter, upon 
 
 
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1satisfaction 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 
6vehicle in this
State must be made by the owner to the 
7Secretary 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 
 
 
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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 
10prescribed application form a space where the owner of a 
11vehicle may designate a beneficiary, to whom ownership of the 
12vehicle shall pass in the event of the owner's death.


13 (b) If the application refers to a vehicle purchased from a 
14dealer,
it must also be signed by the dealer as well as the 
15owner, and the dealer must
promptly mail or deliver the 
16application and required documents to the
Secretary of State.

17 (c) If the application refers to a vehicle last previously

18registered in another State or country, the application must 
19contain 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.

 
 
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1 (d) If the application refers to a new vehicle it must be

2accompanied by the Manufacturer's Statement of Origin, or other 
3documents
as required and acceptable by the Secretary of State, 
4with such
assignments as may be necessary to show title in the 
5applicant.

6 (e) If an application refers to a vehicle rebuilt from a 
7vehicle
previously salvaged, that application shall comply 
8with the provisions
set forth in Sections 3-302 through 3-304 
9of this Code.

10 (f) An application for a certificate of title for any 
11vehicle,
whether purchased in Illinois or outside Illinois, and 
12even if
previously registered in another State, must be 
13accompanied by either an
exemption determination from the 
14Department of Revenue showing that no
tax imposed pursuant to 
15the Use Tax Act or the vehicle use tax imposed by
Section 
163-1001 of the Illinois Vehicle Code is owed by anyone with 
17respect to
that vehicle, or a receipt from the Department of 
18Revenue showing that any tax
so imposed has been paid. An 
19application for a certificate of title for any
vehicle 
20purchased outside Illinois, even if previously registered in 
21another
state, must be accompanied by either an exemption 
22determination from the
Department of Revenue showing that no 
23tax imposed pursuant to the Municipal Use
Tax Act or the County 
24Use Tax Act is owed by anyone with respect to that
vehicle, or 
25a receipt from the Department of Revenue showing that any tax 
26so
imposed has been paid. In the absence of such a receipt for 
 
 
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1payment or
determination of exemption from the Department, no 
2certificate of title shall
be issued to the applicant.

3 If the proof of payment of the tax or of nonliability 
4therefor is,
after the issuance of the certificate of title and 
5display certificate
of title, found to be invalid, the 
6Secretary of State shall revoke the
certificate and require 
7that the certificate of title and, when
applicable, the display 
8certificate of title be returned to him.

9 (g) If the application refers to a vehicle not manufactured 
10in
accordance with federal safety and emission standards, the 
11application must
be accompanied by all documents required by 
12federal governmental
agencies to meet their standards before a 
13vehicle is allowed to be issued
title and registration.

14 (h) If the application refers to a vehicle sold at public 
15sale by a
sheriff, it must be accompanied by the required fee 
16and a bill of sale
issued and signed by a sheriff. The bill of 
17sale must identify the new
owner's name and address, the year 
18model, make and vehicle identification
number of the vehicle, 
19court order document number authorizing such sale,
if 
20applicable, and the name and address of any lienholders in 
21order of
priority, if applicable.

22 (i) If the application refers to a vehicle for which a 
23court of law
determined the ownership, it must be accompanied 
24with a certified copy of
such court order and the required fee. 
25The court order must indicate the
new owner's name and address, 
26the complete description of the vehicle, if
known, the name and 
 
 
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1address of the lienholder, if any, and must be signed
and dated 
2by the judge issuing such order.

3 (j) If the application refers to a vehicle sold at public 
4auction pursuant
to the Labor and Storage Lien (Small Amount) 
5Act, it must be
accompanied by an affidavit or affirmation 
6furnished by the Secretary of
State along with the
documents 
7described in the affidavit or affirmation and the required fee.

8 (k) The Secretary may provide an expedited process for the 
9issuance of vehicle titles. Expedited title applications must 
10be delivered to the Secretary of State's Vehicle Services 
11Department in Springfield by express mail service or hand 
12delivery. Applications must be complete, including necessary 
13forms, fees, and taxes. Applications received before noon on a 
14business day will be processed and shipped that same day. 
15Applications received after noon on a business day will be 
16processed and shipped the next business day. The Secretary 
17shall charge an additional fee of $30 for this service, and 
18that fee shall cover the cost of return shipping via an express 
19mail service. All fees collected by the Secretary of State for 
20expedited services shall be deposited into the Motor Vehicle 
21License Plate Fund. In the event the Vehicle Services 
22Department determines that the volume of expedited title 
23requests received on a given day exceeds the ability of the 
24Vehicle Services Department to process those requests in an 
25expedited manner, the Vehicle Services Department may decline 
26to provide expedited services, and the additional fee for the 
 
 
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1expedited service shall be refunded to the applicant. 
2 (l) If the application refers to a homemade trailer, (i) it 
3must be accompanied by the appropriate documentation regarding 
4the source of materials used in the construction of the 
5trailer, as required by the Secretary of State, (ii) the 
6trailer must be inspected by a Secretary of State investigator, 
7as described in Section 2-115 of this Code, prior to the 
8issuance of the title, and (iii) upon approval of the Secretary 
9of State, the trailer must have a vehicle identification 
10number, as provided by the Secretary of State, stamped or 
11riveted to the frame.
12 (m) The holder of a Manufacturer's Statement of Origin to a 
13manufactured home may deliver it to any person to facilitate 
14conveying or encumbering the manufactured home. Any person 
15receiving any such Manufacturer's Statement of Origin so 
16delivered holds it in trust for the person delivering it. 
17 (n) Within 45 days after the completion of the first retail 
18sale of a manufactured home, the Manufacturer's Statement of 
19Origin to that manufactured home must be surrendered to the 
20Secretary of State either in conjunction with an application 
21for a certificate of title for that manufactured home or in 
22accordance with Section 3-116.1. 
23(Source: P.A. 95-784, eff. 1-1-09; 96-519, eff. 1-1-10; 96-554, 
24eff. 1-1-10; 96-1000, eff. 7-2-10.)





25 (625 ILCS 5/3-106) (from Ch. 95 1/2, par. 3-106)



 
 
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1 Sec. 3-106. Certificate of title - Issuance - Records. (a) 
2The Secretary of State shall file each application received 
3and,
when satisfied as to its genuineness and regularity, and 
4that no tax
imposed by the "Use Tax Act" or the vehicle use 
5tax, as imposed by Section
3-1001 of "The Illinois Vehicle 
6Code", or pursuant to the "Municipal Use
Tax Act" or pursuant 
7to the "County Use Tax Act" is owed as evidenced by
the receipt 
8for payment or determination of exemption from the Department

9of Revenue provided for in Section 3-104 of this Act, and that 
10the
applicant is entitled to the issuance of a certificate of 
11title, shall
issue a certificate of title of the vehicle.

12 (b) The Secretary of State shall maintain a record of all

13certificates of title issued by him under a distinctive title 
14number
assigned to the vehicle; and, in the discretion of the 
15Secretary of
State, in any other method determined.

16 (c) The Secretary of State shall not issue a certificate of 
17title, including a certificate of title issued in accordance 
18with subsection (b) of Section 3-109, to a manufactured home 
19for which there has been recorded an affidavit of affixation 
20pursuant to the Conveyance and Encumbrance of Manufactured 
21Homes as Real Property and Severance Act unless with respect to 
22the same manufactured home there has been recorded an affidavit 
23of severance pursuant to the Conveyance and Encumbrance of 
24Manufactured Homes as Real Property and Severance Act. 
25 (d) The Secretary of State shall file, upon receipt, each 
26affidavit of affixation and affidavit of severance relating to 
 
 
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1a manufactured home that is delivered in accordance with the 
2Conveyance and Encumbrance of Manufactured Homes as Real 
3Property and Severance Act, when satisfied as to its 
4genuineness and regularity. 
5 (e) The Secretary of State shall maintain a record of each 
6affidavit of affixation and each affidavit of severance filed 
7in accordance with subsection (d) of this Section. The record 
8shall state the name of the owner of the related manufactured 
9home, the name of manufacturer, make, model name, model year, 
10vehicle identification number, and any other data the Secretary 
11of State prescribes. 
12 (f) The Secretary of State shall file, upon receipt, each 
13application for surrender of the Manufacturer's Statement of 
14Origin relating to a manufactured home that is delivered in 
15accordance with Section 3-116.1, when satisfied as to its 
16genuineness and regularity. 
17 (g) The Secretary of State shall file, upon receipt, each 
18application for surrender of the certificate of title relating 
19to a manufactured home that is delivered in accordance with 
20Section 3-116.2, when satisfied as to its genuineness and 
21regularity. 
22 (h) The Secretary of State shall maintain a record, 
23including a record in the form of a searchable electronic 
24database accessible to the public, of each Manufacturer's 
25Statement of Origin accepted for surrender as provided in 
26Section 3-116.1. The record shall state the date the 
 
 
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1Manufacturer's Statement of Origin was accepted for surrender, 
2the name of manufacturer, make, model name, model year, vehicle 
3identification number, and any other data the Secretary of 
4State prescribes. 
5 (i) The Secretary of State shall maintain a record, 
6including a record in the form of a searchable electronic 
7database accessible to the public, of each manufactured home 
8certificate of title accepted for surrender as provided in 
9Section 3-116.2. The record shall state the date the 
10certificate of title was accepted for surrender, the name of 
11manufacturer, make, model name, model year, vehicle 
12identification number, and any other data the Secretary of 
13State 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 
18State 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;


 
 
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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 
14titled as a custom vehicle or street rod, that fact must be 
15stated in the application. The custom vehicle or street rod 
16must be inspected as required by Section 3-406 of this Code 
17prior to issuance of the title. Upon successful completion of 
18the inspection, the vehicle may be titled in the following 
19manner. The make of the vehicle shall be listed as the make of 
20the actual vehicle or the make it is designed to resemble 
21(e.g., Ford or Chevrolet); the model of the vehicle shall be 
22listed as custom vehicle or street rod; and the year of the 
23vehicle shall be listed as the year the actual vehicle was 
24manufactured or the year it is designed to resemble. A vehicle 
25previously titled as other than a custom vehicle or street rod 
26may be issued a corrected title reflecting the custom vehicle 
 
 
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1or street rod model if it otherwise meets the requirements for 
2the designation. 
3 (b) The certificate of title shall contain forms for 
4assignment and
warranty of title by the owner, and for 
5assignment and warranty of title
by a dealer, and may contain 
6forms for applications for a certificate of
title by a 
7transferee, the naming of a lienholder and the assignment or

8release of the security interest of a lienholder.
9 (b-5) The Secretary of State shall designate on a 
10certificate of title a space where the owner of a vehicle may 
11designate a beneficiary, to whom ownership of the vehicle shall 
12pass in the event of the owner's death.


13 (c) A certificate of title issued by the Secretary of State 
14is prima
facie evidence of the facts appearing on it.

15 (d) A certificate of title for a vehicle is not subject to

16garnishment, attachment, execution or other judicial process, 
17but this
subsection does not prevent a lawful levy upon the 
18vehicle.

19 (e) Any certificate of title issued by the Secretary of 
20State is
subject to a lien in favor of the State of Illinois 
21for any fees or
taxes required to be paid under this Act and as 
22have not been paid, as
provided for in this Code.

23 (f) Notwithstanding any other provision of law, a 
24certificate of title issued by the Secretary of State to a 
25manufactured home is prima facie evidence of the facts 
26appearing on it, notwithstanding the fact that such 
 
 
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1manufactured home, at any time, shall have become affixed in 
2any 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; 
6bond. If the Secretary of State is not satisfied as to the 
7ownership of the
vehicle, including but not limited to, in the 
8case of a manufactured home, a circumstance in which the 
9manufactured home is covered by a Manufacturer's Statement of 
10Origin that the owner of the manufactured home, after diligent 
11search and inquiry, is unable to produce, or that there are no 
12undisclosed security interests in it, the
Secretary of State 
13may register the vehicle but shall either:

14 (a) Withhold issuance of a certificate of title until the 
15applicant
presents documents reasonably sufficient to satisfy 
16the Secretary of
State as to the applicant's ownership of the 
17vehicle and that there are
no undisclosed security interests in 
18it; or

19 (b) As a condition of issuing a certificate of title, 
20require the
applicant to file with the Secretary of State a 
21bond in the form
prescribed by the Secretary of State and 
22executed by the applicant, and
either accompanied by the 
23deposit of cash with the Secretary of State or
also executed by 
24a person authorized to conduct a surety business in
this State. 
25The bond shall be in an amount equal to one and one-half
times 
 
 
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1the value of the vehicle as determined by the Secretary of 
2State
and conditioned to indemnify any prior owner and 
3lienholder and any
subsequent purchaser of the vehicle or 
4person acquiring any security
interest in it, and their 
5respective successors in interest, against any
expense, loss or 
6damage, including reasonable attorney's fees, by reason
of the 
7issuance of the certificate of title of the vehicle or on 
8account
of any defect in or undisclosed security interest upon 
9the right, title
and interest of the applicant in and to the 
10vehicle. Any such interested
person has a right of action to 
11recover on the bond for any breach of
its conditions, but the 
12aggregate liability of the surety to all persons
shall not 
13exceed the amount of the bond. The bond, and any deposit

14accompanying it, shall be returned at the end of three (3) 
15years or
prior thereto if (i) the vehicle is no longer 
16registered in this State and
the currently valid certificate of 
17title is surrendered to the Secretary
of State or (ii), in the 
18case of a certificate of title to a manufactured home, the 
19currently valid certificate of title is surrendered to the 
20Secretary of State in accordance with Section 3-116.2, unless 
21the Secretary of State has been notified of the
pendency of an 
22action to recover on the bond.

23 Security deposited as a bond hereunder shall be placed by 
24the
Secretary of State in the custody of the State Treasurer.

25 (c) During July, annually, the Secretary shall compile a 
26list of all bonds
on deposit, pursuant to this Section, for 
 
 
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1more than 3 years and concerning
which he has received no 
2notice as to the pendency of any judicial proceeding
that could 
3affect the disposition thereof. Thereupon, he shall promptly

4send a notice by certified mail to the last known address of 
5each depositor
advising him that his bond will be subject to 
6escheat to the State of Illinois
if not claimed within 30 days 
7after the mailing date of such notice. At
the expiration of 
8such time, the Secretary of State shall file with the
State 
9Treasurer an order directing the transfer of such deposit to 
10the Road
Fund in the State Treasury. Upon receipt of such 
11order, the State Treasurer
shall make such transfer, after 
12converting to cash any other type of security.
Thereafter any 
13person having a legal claim against such deposit may enforce
it 
14by appropriate proceedings in the Court of Claims subject to 
15the limitations
prescribed for such Court. At the expiration of 
16such limitation period
such deposit shall escheat to the State 
17of 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 
22certificate of title
if any required fee is not paid or if he 
23has 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 
 
 
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1statement; or

2 (c) the applicant fails to furnish required information or 
3documents or
any additional information the Secretary of State 
4reasonably requires; or 

5 (d) the applicant has not paid to the Secretary of State 
6any fees or
taxes due under this Act and have not been paid 
7upon reasonable notice and
demand.

8 Except as provided in Section 3-116.2, the Secretary of 
9State shall not refuse to issue a certificate of title to a 
10manufactured home by reason of the fact that, at any time, in 
11any 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 
15of title. 

16 (a) The Secretary of State, upon receipt of a properly 
17assigned
certificate of title, with an application for a 
18certificate of
title, the required fee and any other documents 
19required by law, shall
issue a new certificate of title in the 
20name of the transferee as owner
and mail it to the first 
21lienholder named in it or, if none, to the
owner or owner's 
22designee.

23 (b) The Secretary of State, upon receipt of an application 
24for a new
certificate of title by a transferee other than by 
25voluntary transfer,
with proof of the transfer, the required 
 
 
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1fee and any other documents
required by law, shall issue a new 
2certificate of title in the name of
the transferee as owner.

3 (c) Any person, firm or corporation, who shall knowingly 
4possess,
buy, sell, exchange or give away, or offer to buy, 
5sell, exchange or
give away the certificate of title to any 
6motor vehicle which is a junk
or salvage, or who shall fail to 
7surrender the certificate of title to
the Secretary of State as 
8required under the provisions of this Section
and Section 
93-117.2, 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 
12proof of ownership
accepted by the Secretary of State, the file 
13to be maintained so as to
permit the tracing of title of the 
14vehicle designated therein. Such filing and retention 
15requirements shall be in addition to and not in substitution 
16for the recordkeeping requirements set forth in Section 3-106 
17of this Code, which recordkeeping requirements are not limited 
18to any period of time. 

19 (e) The Secretary of State, upon receipt of an application 
20for
corrected certificate of title, with the original title, 
21the required fee
and any other required documents, shall issue 
22a corrected certificate of
title in the name of the owner and 
23mail it to the first lienholder named in
it or, if none, to the 
24owner or owner's designee.

25 (f) The Secretary of State, upon receipt of a certified 
26copy of a court
order awarding ownership to an applicant along 
 
 
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1with an application for a
certificate of title and the required 
2fee, 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 
6Origin to a manufactured home.
7 (a) The owner (all, if more than one), of a manufactured 
8home that is covered by a Manufacturer's Statement of Origin 
9and that is permanently affixed to real property as defined in 
10the Conveyance and Encumbrance of Manufactured Homes as Real 
11Property and Severance Act, or which the owner intends to 
12permanently affix to real property as defined in the Conveyance 
13and Encumbrance of Manufactured Homes as Real Property and 
14Severance Act, may surrender the Manufacturer's Statement of 
15Origin to the manufactured home to the Secretary of State by 
16filing with the Secretary of State an application for surrender 
17of Manufacturer's Statement of Origin containing or 
18accompanied 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 
 
 
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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 
 
 
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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 
6the surrender of a Manufacturer's Statement of Origin to a 
7manufactured home, payment of any applicable fees and upon 
8satisfaction of the requirements of subsection (a) of this 
9Section, the Secretary of State shall (i) cancel the 
10Manufacturer's Statement of Origin and update his or her 
11records in accordance with the provisions of Section 3-106 and 
12(ii) provide written acknowledgment of compliance with the 
13provisions of this Section to each person identified on the 
14application for surrender of Manufacturer's Statement of 
15Origin pursuant to subsection (a)(7) of this Section. 
16 (c) Upon satisfaction of the requirements of this Section a 
17manufactured home shall be conveyed and encumbered as provided 
18in the Conveyance and Encumbrance of Manufactured Homes as Real 
19Property and Severance Act. If the application to surrender a 
20Manufacturer's Statement of Origin is delivered to the 
21Secretary of State within 60 days of recording the related 
22affidavit of affixation with the recording officer in the 
23county in which the real property to which the manufactured 
24home is or shall be affixed and the application is thereafter 
25accepted by the Secretary of State, the requirements of this 
26Section shall be deemed satisfied as of the date the affidavit 
 
 
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1of affixation is recorded. 
2 (d) Upon written request by a person identified on the 
3application for surrender of Manufacturer's Statement of 
4Origin pursuant to subsection (a)(7) of this Section, the 
5Secretary of State shall provide written acknowledgment of 
6compliance 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 
10home that is covered by a certificate of title, including, if 
11applicable, a certificate of title issued in accordance with 
12subsection (b) of Section 3-109, and that is permanently 
13affixed to real property as defined in the Conveyance and 
14Encumbrance of Manufactured Homes as Real Property and 
15Severance Act, or which the owner intends to permanently affix 
16to real property as defined in the Conveyance and Encumbrance 
17of Manufactured Homes as Real Property and Severance Act, may 
18surrender the certificate of title to the manufactured home to 
19the Secretary of State by filing with the Secretary of State an 
20application for surrender of title containing or accompanied 
21by: 
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 
 
 
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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 
 
 
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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 
8certificate of title to a manufactured home unless and until 
9all security interests or liens perfected pursuant to Sections 
103-106 and 3-202 have been released. 
11 (c) When satisfied as to its genuineness and regularity of 
12the surrender of a certificate of title to a manufactured home, 
13payment of any applicable fees and upon satisfaction of the 
14requirements of subsections (a) and (b) of this Section, the 
15Secretary of State shall (i) cancel the certificate of title 
16and update his or her records in accordance with the provisions 
17of Section 3-106 and (ii) provide written acknowledgment of 
18compliance with the provisions of this Section to each person 
19identified on the application for surrender of title pursuant 
20to subsection (a)(7) of this Section. 
21 (d) Upon satisfaction of the requirements of this Section a 
22manufactured home shall be conveyed and encumbered as provided 
23in the Conveyance and Encumbrance of Manufactured Homes as Real 
24Property and Severance Act. If the application to surrender a 
25certificate of title is delivered to the Secretary of State 
26within 60 days of recording the related affidavit of affixation 
 
 
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1with the recording officer in the county in which the real 
2property to which the manufactured home is or shall be affixed, 
3and the application is thereafter accepted by the Secretary of 
4State, the requirements of this Section shall be deemed 
5satisfied as of the date the affidavit of affixation is 
6recorded. 
7 (e) Upon written request by person identified on the 
8application for surrender of title pursuant to subsection 
9(a)(7) of this Section, the Secretary of State shall provide 
10written acknowledgment of compliance with the provisions of 
11this Section. 

12 (625 ILCS 5/3-116.3 new)
13 Sec. 3-116.3. Application for a certificate of title to a 
14severed manufactured home.
15 (a) Notwithstanding any other provision of law, where a 
16manufactured home has been permanently affixed to real 
17property, and an affidavit of affixation has been recorded as 
18part of the real property records in the county in which the 
19manufactured home is located in accordance with the Conveyance 
20and Encumbrance of Manufactured Homes as Real Property and 
21Severance Act, and where the manufactured home subsequently is 
22detached or severed from the real property, the owner (all, if 
23more than one) of the manufactured home shall, unless exempted 
24by other provisions of this Code, apply for a new certificate 
25of title by filing with the Secretary of State an application 
 
 
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1for a certificate of title to a manufactured home, to be issued 
2in accordance with subsection (b) of Section 3-109, containing 
3or 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) 
25of this Section and subsection (b) of Section 3-109, the 
26Secretary of State shall issue a new certificate of title 
 
 
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1pursuant to subsection (b) of Section 3-109 and update his or 
2her records in accordance with the provisions of Section 3-106. 
3 (c) Immediately upon satisfaction of the requirements of 
4this Section and thereafter, a manufactured home shall be 
5conveyed and encumbered as personal property. 
6 (d) The satisfaction of the requirements of this Section 
7with respect to a manufactured home shall have no effect on the 
8manner in which such manufactured home is taxed pursuant to the 
9Property 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 
13in a
vehicle of a type for which a certificate of title is 
14required is not
valid against subsequent transferees or 
15lienholders of the vehicle
unless perfected as provided in this 
16Act. A purchase money security interest in a manufactured home 
17is perfected against the rights of judicial lien creditors and 
18execution creditors on and after the date such purchase money 
19security interest attaches. 

20 (b) A security interest is perfected by the delivery to the

21Secretary of State of the existing certificate of title, if 
22any, an
application for a certificate of title containing the 
23name and address
of the lienholder and the
required fee. The 
24security interest is perfected as of the time of
its creation 
25if the
delivery to the Secretary of State is completed within 
 
 
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130 days after the
creation of the security interest or receipt 
2by the new lienholder of the
existing certificate of title from 
3a prior lienholder or licensed
dealer, otherwise as of the
time 
4of the delivery.

5 (c) If a vehicle is subject to a security interest when 
6brought into
this State, the validity of the security interest 
7is determined by the
law of the jurisdiction where the vehicle 
8was when the security interest
attached, subject to the 
9following:


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 
 
 
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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, 
163-116.2, 3-207, and the Conveyance and Encumbrance of 
17Manufactured Homes as Real Property and Severance Act, after a 
18certificate of title has been issued for a manufactured home 
19and as long as the manufactured home is subject to any security 
20interest perfected pursuant to this Section, the Secretary of 
21State shall not file an affidavit of affixation, nor cancel the 
22Manufacturer's Statement of Origin, nor revoke the certificate 
23of title, nor issue a certificate of title under Section 3-106, 
24and, in any event, the validity and priority of any security 
25interest perfected pursuant to this Section shall continue, 
26notwithstanding the provision of any other law. 
 
 
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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 
5security interest in a vehicle for
which the certificate of 
6title is in the possession of the lienholder,
he shall execute 
7a release of his security interest, and mail
or deliver the 
8certificate and release to the next lienholder named
therein, 
9or, if none, to the owner or any person who delivers to the

10lienholder an authorization from the owner to receive the 
11certificate.
If the payment is in the form of cash, a cashier's 
12check, or a
certified check, the number of days is reduced to 
1310 business days.
If the owner desires a new certificate 
14reflecting no lien, the certificate
and release from the 
15lienholder may be submitted to the Secretary of State,
along 
16with the prescribed application and required fee, for issuance 
17of that
new certificate.


18 (b) Within 21 days after receiving payment to satisfy a 
19security interest in a vehicle for
which the certificate of 
20title is in the possession of a prior
lienholder, the 
21lienholder whose security interest is satisfied shall
execute a 
22release and deliver the release to the owner or any
person who 
23delivers to the lienholder an authorization from the owner to

24receive it. If the payment is in the form of cash, a cashier's 
25check, or a
certified check, the number of days is reduced to 
 
 
SB1227- 102 -LRB097 07200 HLH 47306 b


110 business days. The
lienholder in possession of the 
2certificate of title
may either deliver the certificate to the 
3owner, or the person
authorized by him, for delivery to the 
4Secretary of State, or, upon
receipt of the release, may mail 
5or may deliver the certificate and release,
along with 
6prescribed application and require fee, to
the Secretary of 
7State, who shall issue a new certificate.


8 (c) In addition to any other penalty, a lienholder who 
9fails to execute a
release of his or her security interest or 
10who fails to mail or deliver the
certificate and release within 
11the time limit provided in subsection (a) or (b)
is liable to 
12the person or entity that was supposed to receive the release 
13or
certificate for $150 plus reasonable attorney fees and court 
14costs.
An action under this Section may be brought in small 
15claims court or in any
other appropriate court.


16 (d) The holder of a security interest in or a lien on a 
17manufactured home may deliver lien release documents to any 
18person to facilitate conveying or encumbering the manufactured 
19home. Any person receiving any such documents so delivered 
20holds the documents in trust for the security interest holder 
21or 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 
 
 
SB1227- 103 -LRB097 07200 HLH 47306 b


1notice of
security interests subject to this act is exclusive. 
2Security interests
subject to this act are hereby exempted from 
3the provisions of law which
otherwise require or relate to the 
4recording or filing of instruments
creating or evidencing 
5security interests in vehicles including chattel
mortgages and 
6conditional sale agreements, provided, however, that with 
7respect to a manufactured home that is or will be permanently 
8affixed to real property, upon recordation of an affidavit of 
9affixation pursuant to the Conveyance and Encumbrance of 
10Manufactured Homes as Real Property and Severance Act and 
11satisfaction of the requirements of Sections 3-116.1 or 
123-116.2, as applicable, any perfection or termination of a 
13security interest with respect to such permanently affixed 
14property shall be governed by the laws applicable to real 
15property.

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 
20certificate of title,
upon notice and reasonable opportunity to 
21be heard in accordance with
Section 2-118, when authorized by 
22any 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 
 
 
SB1227- 104 -LRB097 07200 HLH 47306 b


1 destroyed.

2 Except as provided in Section 3-116.2, the Secretary of 
3State shall not suspend or revoke a certificate of title to a 
4manufactured home by reason of the fact that, at any time it 
5shall have become affixed in any manner to real property. 
6 (b) Suspension or revocation of a certificate of title does 
7not, in
itself, affect the validity of a security interest 
8noted on it.

9 (c) When the Secretary of State suspends or revokes a 
10certificate of
title, the owner or person in possession of it 
11shall, immediately upon
receiving notice of the suspension or 
12revocation, mail or deliver the
certificate to the Secretary of 
13State.

14 (d) The Secretary of State may seize and impound any 
15certificate 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 
18changing 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 
21estate or
interest in, over or under land (including minerals, 
22air rights,
structures, fixtures and other things which by 
23custom, usage or law pass
with a conveyance of land though not 
24described or mentioned in the contract
of sale or instrument of 
 
 
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1conveyance). "Mortgaged real estate" means the
real estate 
2which is the subject of a mortgage. "Real Estate" includes a 
3manufactured home as defined in subdivision (53) of Section 
49-102 of the Uniform Commercial Code that is real property as 
5defined in the Conveyance and Encumbrance of Manufactured Homes 
6as Real Property and Severance Act. 

7(Source: P.A. 84-1462.)


8 Section 10-80. The Conveyances Act is amended by changing 
9Section 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 
12be construed as
co-extensive in meaning with "lands, tenements 
13and hereditaments," and as
embracing all chattels real. "Real 
14estate" and "real property" include a manufactured home as 
15defined in subdivision (53) of Section 9-102 of the Uniform 
16Commercial Code that is real property as defined in the 
17Conveyance and Encumbrance of Manufactured Homes as Real 
18Property and Severance Act. This act shall not be construed so 
19as to
embrace last wills, except as herein expressly provided.

20(Source: P.A. 84-551.)



21 Section 10-85. The Residential Real Property Disclosure 
22Act is amended by changing Section 5 as follows:




 
 
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1 (765 ILCS 77/5)



2 Sec. 5. Definitions. As used in this Act, unless the 
3context otherwise
requires the
following terms have the meaning 
4given in this Section.

5 "Residential real property" means real property improved 
6with not less
than one nor more than 4 residential dwelling 
7units; units in residential
cooperatives; or, condominium 
8units, including the limited common elements
allocated to the 
9exclusive use thereof that form an integral part of the

10condominium unit. The term includes a manufactured home as 
11defined in subdivision (53) of Section 9-102 of the Uniform 
12Commercial Code that is real property as defined in the 
13Conveyance and Encumbrance of Manufactured Homes as Real 
14Property and Severance Act. 

15 "Seller" means every person or entity who is an owner, 
16beneficiary of a
trust, contract purchaser or lessee of a 
17ground lease,
who has an interest (legal or equitable) in 
18residential real property.
However, "seller" shall not include

19any person who has both (i) never occupied the residential real 
20property and
(ii) never had the management responsibility for 
21the residential real property
nor delegated such 
22responsibility for the residential real property to another

23person or entity.

24 "Prospective buyer" means any person or entity negotiating 
25or offering
to become an owner or lessee of residential real 
26property by means of a
transfer for value to which this Act 
 
 
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1applies.

2(Source: P.A. 90-383, eff. 1-1-98.)


3 Section 10-90. The Mobile Home Landlord and Tenant Rights 
4Act 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, 
7all terms in
this Act shall be construed to have their 
8ordinarily accepted meanings or
such meaning as the context 
9therein requires. 

10 (a) "Person" means any legal entity, including but not 
11limited to, an
individual, firm, partnership, association, 
12trust, joint stock company,
corporation or successor of any of 
13the foregoing.

14 (b) "Manufactured home" means a factory-assembled, 
15completely integrated structure designed for permanent 
16habitation, with a permanent chassis, and so constructed as to 
17permit its transport, on wheels temporarily or permanently 
18attached to its frame, and is a movable or portable unit that 
19is (i) 8 body feet or more in width, (ii) 40 body feet or more 
20in length, and (iii) 320 or more square feet, constructed to be 
21towed on its own chassis (comprised of frame and wheels) from 
22the place of its construction to the location, or subsequent 
23locations, at which it is installed and set up according to the 
24manufacturer's instructions and connected to utilities for 
 
 
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1year-round occupancy for use as a permanent habitation, and 
2designed and situated so as to permit its occupancy as a 
3dwelling place for one or more persons, and specifically 
4includes a "manufactured home" as defined in subdivision (53) 
5of Section 9-102 of the Uniform Commercial Code. The term shall 
6include units containing parts that may be folded, collapsed, 
7or telescoped when being towed and that may be expected to 
8provide additional cubic capacity, and that are designed to be 
9joined into one integral unit capable of being separated again 
10into the components for repeated towing. The term excludes 
11campers and recreational vehicles. The words "mobile home" and 
12"manufactured home" are synonymous for the purposes of this 
13Act. 

14 (c) "Mobile Home Park" or "Park" means a tract of land or 2 
15contiguous tracts of land that contain sites with the necessary 
16utilities for 5 or more mobile homes or manufactured homes. A 
17mobile home park may be operated either free of charge or for 
18revenue purposes.

19 (d) "Park Owner" means the owner of a mobile home park and 
20any person
authorized to exercise any aspect of the management 
21of the premises, including
any person who directly or 
22indirectly receives rents and has no obligation
to deliver the 
23whole of such receipts to another person.

24 (e) "Tenant" means any person who occupies a mobile home 
25rental unit for
dwelling purposes or a lot on which he parks a 
26mobile home for an agreed
upon consideration.

 
 
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1 (f) "Rent" means any money or other consideration given for 
2the right
of use, possession and occupancy of property, be it a 
3lot, a mobile home, or both.

4 (g) "Master antenna television service" means any and all 
5services
provided by or through the facilities of any closed 
6circuit coaxial cable
communication system, or any microwave or 
7similar transmission services
other than a community antenna 
8television system as defined in Section
11-42-11 of the 
9Illinois Municipal Code.

10(Source: P.A. 96-1477, eff. 1-1-11.)


11 Section 10-95. The Mortgage Act is amended by adding 
12Section 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 
16as defined in subdivision (53) of Section 9-102 of the Uniform 
17Commercial Code that is real property as defined in the 
18Conveyance and Encumbrance of Manufactured Homes as Real 
19Property and Severance Act.

20 Section 10-100. The Joint Tenancy Act is amended by adding 
21Section 5 as follows:

22 (765 ILCS 1005/5 new)
 
 
SB1227- 110 -LRB097 07200 HLH 47306 b


1 Sec. 5. Real estate; real property. As used in this Act, 
2"real estate" and "real property" include a manufactured home 
3as defined in subdivision (53) of Section 9-102 of the Uniform 
4Commercial Code that is real property as defined in the 
5Conveyance and Encumbrance of Manufactured Homes as Real 
6Property and Severance Act.

7 Section 10-105. The Uniform Commercial Code is amended by 
8changing 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 
 
 
SB1227- 111 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 112 -LRB097 07200 HLH 47306 b


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

 
 
SB1227- 113 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 114 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 115 -LRB097 07200 HLH 47306 b


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.


 
 
SB1227- 116 -LRB097 07200 HLH 47306 b


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.


 
 
SB1227- 117 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 118 -LRB097 07200 HLH 47306 b


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:


 
 
SB1227- 119 -LRB097 07200 HLH 47306 b


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

 
 
SB1227- 120 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 121 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 122 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 123 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 124 -LRB097 07200 HLH 47306 b


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


 
 
SB1227- 125 -LRB097 07200 HLH 47306 b


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

 
 
SB1227- 126 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 127 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 128 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 129 -LRB097 07200 HLH 47306 b


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

 
 
SB1227- 130 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 131 -LRB097 07200 HLH 47306 b


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 
24Section 7-106 and the
following definitions in other
Articles 
25apply to this Article:

26 "Applicant". Section 5-102.

 
 
SB1227- 132 -LRB097 07200 HLH 47306 b


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 
12letter-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 
157-102.

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.

 
 
SB1227- 133 -LRB097 07200 HLH 47306 b


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 
13contains general
definitions and principles of construction 
14and 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 
17Sections 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 
21written contracts it shall be lawful for the parties to

22stipulate or agree that 9% per annum, or any less sum of 
23interest, shall be
taken and paid upon every $100 of money 
24loaned or in any manner due and
owing from any person to any 
 
 
SB1227- 134 -LRB097 07200 HLH 47306 b


1other person or corporation in this state, and
after that rate 
2for a greater or less sum, or for a longer or shorter time,

3except as herein provided.
4 The maximum rate of interest that may lawfully be 
5contracted for is
determined by the law applicable thereto at 
6the time the contract is
made. Any provision in any contract, 
7whether made before or after July
1, 1969, which provides for 
8or purports to authorize, contingent upon a
change in the 
9Illinois law after the contract is made, any rate of
interest 
10greater than the maximum lawful rate at the time the contract

11is made, is void.
12 It is lawful for a state bank or a branch of an 
13out-of-state bank, as those
terms are defined in Section 2 of 
14the Illinois Banking Act, to receive or to
contract to receive

15and collect interest and charges at any rate or rates agreed 
16upon by
the bank or branch and the borrower.
It is lawful for a 
17savings bank chartered under the Savings Bank Act or a
savings 
18association chartered under the Illinois Savings and Loan Act 
19of 1985
to receive or contract to receive and collect interest 
20and charges at any rate
agreed upon by the savings bank or 
21savings association and the borrower.
22 It is lawful to receive or to contract to receive and 
23collect
interest and charges as authorized by this Act and as 
24authorized by the
Consumer Installment Loan Act and by the 
25"Consumer Finance Act", approved July
10,
1935, as now or 
26hereafter amended, or by the Payday Loan Reform Act. It is 
 
 
SB1227- 135 -LRB097 07200 HLH 47306 b


1lawful to charge, contract
for, and receive any rate or amount 
2of interest or compensation with
respect to the following 
3transactions:
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 
 
 
SB1227- 136 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 137 -LRB097 07200 HLH 47306 b


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 
 
 
SB1227- 138 -LRB097 07200 HLH 47306 b


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 
21except to the
extent permitted by the applicable statute for 
22loans made pursuant to
Section 4a or pursuant to the Consumer 
23Installment 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 
 
 
SB1227- 139 -LRB097 07200 HLH 47306 b


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, 
22deed of
trust, or conveyance in the nature of a mortgage, on 
23residential real
estate, the interest which is computed, 
24calculated, charged, or collected
pursuant to such contract or 
25loan, or pursuant to any regulation or rule
promulgated 
26pursuant to this Act, may not be computed, calculated, charged

 
 
SB1227- 140 -LRB097 07200 HLH 47306 b


1or collected for any period of time occurring after the date on 
2which the
total indebtedness, with the exception of late 
3payment penalties, is paid
in full.
4 (4) For purposes of this Section, a prepayment shall mean 
5the payment of the
total indebtedness, with the exception of 
6late payment penalties if
incurred or charged, on any date 
7before the date specified in the contract
or loan agreement on 
8which the total indebtedness shall be paid in full, or
before 
9the date on which all payments, if timely made, shall have been

10made. In the event of a prepayment of the indebtedness which is 
11made on a
date after the date on which interest on the 
12indebtedness was last
computed, calculated, charged, or 
13collected but before the next date on
which interest on the 
14indebtedness was to be calculated, computed, charged,
or 
15collected, the lender may calculate, charge and collect 
16interest on the
indebtedness for the period which elapsed 
17between the date on which the
prepayment is made and the date 
18on which interest on the indebtedness was
last computed, 
19calculated, charged or collected at a rate equal to 1/360 of

20the annual rate for each day which so elapsed, which rate shall 
21be applied
to the indebtedness outstanding as of the date of 
22prepayment. The lender
shall refund to the borrower any 
23interest charged or collected which
exceeds that which the 
24lender may charge or collect pursuant to the
preceding 
25sentence. The provisions of this amendatory Act of 1985 shall

26apply only to contracts or loans entered into on or after the 
 
 
SB1227- 141 -LRB097 07200 HLH 47306 b


1effective
date of this amendatory Act, but shall not apply to 
2contracts or loans
entered into on or after that date that are 
3subject to Section 4a of this
Act, the Consumer Installment 
4Loan Act, the Payday Loan Reform Act, or the Retail Installment 
5Sales
Act, or that provide for the refund of precomputed 
6interest on prepayment
in the manner provided by such Act.
7 (5) For purposes of items (a) and (c) of subsection (1) of 
8this Section, a rate or amount of interest may be lawfully 
9computed when applying the ratio of the annual interest rate 
10over a year based on 360 days. The provisions of this 
11amendatory Act of the 96th General Assembly are declarative of 
12existing law. 
13 (6) For purposes of this Section, "real estate" and "real 
14property" include a manufactured home, as defined in 
15subdivision (53) of Section 9-102 of the Uniform Commercial 
16Code that is real property as defined in the Conveyance and 
17Encumbrance of Manufactured Homes as Real Property and 
18Severance 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; 
22disclosures. On a
revolving credit which complies with 
23subparagraphs (a), (b),
(c), (d) and (e) of this Section 4.2, 
24it is lawful for any bank that has its main office or, after 
25May 31, 1997,
a branch in this State, a state or federal 
 
 
SB1227- 142 -LRB097 07200 HLH 47306 b


1savings and
loan association with its main office in this 
2State, a state or federal
credit union with its main office in 
3this State, or a lender licensed under
the Consumer Finance 
4Act, the Consumer Installment Loan Act or the Sales
Finance 
5Agency Act, as such Acts are now and hereafter amended, to

6receive or contract to receive and collect interest
in any 
7amount or at any rate agreed upon by the parties to the 
8revolving
credit arrangement. It is lawful for any other lender 
9to receive or contract
to receive and collect interest in an 
10amount not in excess of 1 1/2% per
month of either the average 
11daily unpaid balance of the principal of the
debt during the 
12billing cycle, or of the unpaid balance of the debt on

13approximately the same day of the billing cycle. If a lender 
14under a revolving
credit arrangement notifies the debtor at 
15least 30 days in advance of any
lawful increase in the amount 
16or rate of interest to be charged under
the revolving credit 
17arrangement, and the debtor, after the effective date
of such 
18notice, incurs new debt pursuant to the revolving credit

19arrangement, the increased interest amount or rate may be 
20applied only to
any such new debt incurred under the revolving 
21credit arrangement.
For purposes of determining the balances to 
22which the increased interest
rate applies, all payments and 
23other credits may be deemed to be applied
to the balance 
24existing prior to the change in rate until that balance is
paid 
25in full. The face amount of the
drafts, items, orders for the 
26payment of money, evidences of debt, or
similar written 
 
 
SB1227- 143 -LRB097 07200 HLH 47306 b


1instruments received by the lender in connection with the

2revolving credit, less the amounts applicable to principal from 
3time to
time paid thereon by the debtor, are the unpaid balance 
4of the debt upon
which the interest is computed. If the billing 
5cycle is not monthly, the
maximum interest rate for the billing 
6cycle is the percentage which bears
the same relation to the 
7monthly percentage provided for in the preceding
sentence as 
8the number of days in the billing cycle bears to 30. For the

9purposes of the foregoing computation, a "month" is deemed to 
10be any time
of 30 consecutive days. In addition to the interest 
11charge provided for, it
is lawful to receive, contract for or 
12collect a charge not exceeding 25
cents for each transaction in 
13which a loan or advance is made under the
revolving credit or 
14in lieu of this additional charge an annual fee for the

15privilege of receiving and using the revolving credit in an 
16amount not
exceeding $20. In addition, with respect to 
17revolving credit secured by an
interest in real estate, 
18including a manufactured home as defined in subdivision (53) of 
19Section 9-102 of the Uniform Commercial Code that is real 
20property as defined in the Conveyance and Encumbrance of 
21Manufactured Homes as Real Property and Severance Act, it is 
22also lawful to receive, contract for or
collect fees lawfully

23paid to any public officer or agency to record, file or release 
24the security,
and costs and disbursements actually incurred for 
25any title insurance,
title examination, abstract of title, 
26survey, appraisal, escrow fees, and fees
paid to a trustee in 
 
 
SB1227- 144 -LRB097 07200 HLH 47306 b


1connection with a trust deed.

2 (a) At or before the date a bill or statement is first 
3rendered to the
debtor under a revolving credit arrangement, 
4the lender must mail or
deliver to the debtor a written 
5description of the conditions under which a
charge for interest 
6may be made and the method, including the rate, of
computing 
7these interest charges. The rate of interest must be expressed 
8as
an annual percentage rate.

9 (b) If during any billing cycle any debit or credit entry 
10is made to a
debtor's revolving credit account, and if at the 
11end of that billing cycle
there is an unpaid balance owing to 
12the lender from the debtor, the lender
must give to the debtor 
13the following information within a reasonable time
after the 
14end 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;


 
 
SB1227- 145 -LRB097 07200 HLH 47306 b


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 
11payment by the
debtor and receipt by the lender of all costs 
12and disbursements, including
reasonable attorney's fees, 
13incurred by the lender in legal proceedings to
collect or 
14enforce the debt in the event of delinquency by the debtor or 
15in
the event of a breach of any obligation of the debtor under 
16the arrangement.

17 (d) The lender under a revolving credit arrangement may 
18provide credit
life insurance or credit accident and health 
19insurance, or both, with
respect to the debtor and may charge 
20the debtor therefor. Credit life
insurance and credit accident 
21and health insurance, and any charge therefor
made to the 
22debtor, shall comply with Article IX 1/2 of the Illinois

23Insurance Code, as now or hereafter amended, and all lawful

24requirements of the Director of Insurance
related thereto. This 
25insurance is in force with respect to each loan or
advance made 
26under a revolving credit arrangement as soon as the loan or

 
 
SB1227- 146 -LRB097 07200 HLH 47306 b


1advance is made. The purchase of this insurance from an agent, 
2broker or
insurer specified by the lender may not be a 
3condition precedent to the
revolving credit arrangement or to 
4the making of any loan or advance thereunder.

5 (e) Whenever interest is contracted for or received under 
6this Section,
no amount in addition to the charges authorized 
7by this Act may be directly
or indirectly charged, contracted 
8for or received whether as interest,
service charges, costs of 
9investigations or enforcements or otherwise.

10 (f) The lender under a revolving credit arrangement must

11compute at year end the total amount charged to the debtor's

12account during the year, including service charges, finance 
13charges,
late charges and any other charges authorized by this 
14Act,
and upon request must furnish such information to the 
15debtor within
30 days after the end of the year, or if the 
16account has been
terminated during such year, may give such 
17requested information within
30 days after such termination. 
18The lender shall annually inform the debtor
of his right to 
19obtain such information.

20 (g) A lender who complies with the federal Truth in Lending 
21Act, amendments
thereto, and any regulations issued or which 
22may be issued thereunder, shall
be deemed to be in compliance 
23with the provisions of subparagraphs (a) and
(b) of this 
24Section.

25 (h) Anything in this Section 4.2 to the contrary 
26notwithstanding, if
the Congress of the United States or any 
 
 
SB1227- 147 -LRB097 07200 HLH 47306 b


1federal agency authorizes any
class of lenders to enter, within 
2limitations, into a revolving credit
arrangement secured by a 
3mortgage or deed of trust on residential real
property, any 
4person, firm, corporation or other entity, not otherwise

5prohibited by the Congress of the United States or any federal 
6agency from
entering into revolving credit arrangements 
7secured by a mortgage or deed
of trust on residential real 
8property, may enter into such arrangements
within the same 
9limitations.

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 
14person, whether
secured or unsecured, except where the money 
15loaned or in any manner owing
is directly or indirectly for the 
16purchase price of real estate or an
interest therein and is 
17secured by a lien on or retention of title to that
real estate 
18or interest therein, to an amount not more than $25,000

19(excluding interest) which is evidenced by a written instrument 
20providing
for the payment thereof in 2 or more periodic 
21installments over a period of
not more than 181 months from the 
22date of the execution of the written
instrument, it is lawful 
23to 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 
 
 
SB1227- 148 -LRB097 07200 HLH 47306 b


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


 
 
SB1227- 149 -LRB097 07200 HLH 47306 b


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 
15minimum charge of
$15 may be collected instead of interest, but 
16only one minimum charge
may be collected from the same person 
17during one year. When the
principal amount of the loan 
18(excluding interest) is $800 or less, the
lender or creditor 
19may contract for and receive a service charge not to
exceed $5 
20in addition to interest; and that service charge may be

21collected when the loan is made, but only one service charge 
22may be
contracted for, received, or collected from the same 
23person during one year.

24 (c) Credit life insurance and credit accident and health 
25insurance,
and any charge therefor which is deducted from the 
26loan or paid by the
obligor, must comply with Article IX 1/2 of 
 
 
SB1227- 150 -LRB097 07200 HLH 47306 b


1the Illinois Insurance
Code and all lawful requirements of the 
2Director of Insurance related
thereto. When there are 2 or more 
3obligors on the loan contract, only
one charge for credit life 
4insurance and credit accident and health
insurance may be made 
5and only one of the obligors may be required to be
insured. 
6Insurance obtained from, by or through the lender or creditor

7must be in effect when the loan is transacted. The purchase of 
8that
insurance from an agent, broker or insurer specified by 
9the lender or
creditor may not be a condition precedent to the 
10granting of the loan.

11 (d) The lender or creditor may require the obligor to 
12provide
property insurance on security other than household 
13goods, furniture and
personal effects. The amount and term of 
14the insurance must be
reasonable in relation to the amount and 
15term of the loan contract and
the type and value of the 
16security, and the insurance must be procured
in accordance with 
17the insurance laws of this State. The purchase of
that 
18insurance from an agent, broker or insurer specified by the 
19lender
or creditor may not be a condition precedent to the 
20granting of the loan.

21 (e) The lender or creditor may, if the contract provides, 
22collect a
delinquency and collection charge on each installment 
23in default for a
period of not less than 10 days in an amount 
24not exceeding 5% of the
installment on installments in excess 
25of $200 or $10 on
installments of
$200 or less, but only one 
26delinquency and collection charge may
be
collected on any 
 
 
SB1227- 151 -LRB097 07200 HLH 47306 b


1installment regardless of the period during which it
remains in 
2default. In addition, the contract may provide for the payment

3by the borrower or debtor of attorney's fees incurred by the 
4lender or
creditor. The lender or creditor may enforce such a 
5provision to the extent
of the reasonable attorney's fees 
6incurred by him in the collection or
enforcement of the 
7contract or obligation. Whenever interest is contracted
for or 
8received under this Section, no amount in addition to the 
9charges
authorized by this Section may be directly or 
10indirectly charged,
contracted for or received, except lawful 
11fees paid to a public officer or
agency to record, file or 
12release security, and except costs and
disbursements including 
13reasonable attorney's fees, incurred in legal
proceedings to 
14collect a loan or to realize on a security after default.
This 
15Section does not prohibit the receipt of any commission, 
16dividend or
other benefit by the creditor or an employee, 
17affiliate or associate of the
creditor from the insurance 
18authorized by this Section.

19 (f) When interest is contracted for or received under this 
20Section,
the lender must disclose the following items to the 
21obligor 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 
 
 
SB1227- 152 -LRB097 07200 HLH 47306 b


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;


 
 
SB1227- 153 -LRB097 07200 HLH 47306 b


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" 
23shall be
printed more conspicuously than other terminology 
24required by this Section.

25 (g) At the time disclosures are made, the lender shall 
26deliver to
the obligor a duplicate of the instrument or 
 
 
SB1227- 154 -LRB097 07200 HLH 47306 b


1statement by which the
required disclosures are made and on 
2which the lender and obligor are
identified and their addresses 
3stated. All of the disclosures shall be
made clearly, 
4conspicuously and in meaningful sequence and made together
on 
5either:


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 
25sum of
all charges, payable directly or indirectly by the 
26obligor and imposed
directly or indirectly by the lender as an 
 
 
SB1227- 155 -LRB097 07200 HLH 47306 b


1incident to or as a condition
to the extension of credit, 
2whether paid or payable by the obligor, any
other person on 
3behalf of the obligor, to the lender or to a third
party, 
4including 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, 
 
 
SB1227- 156 -LRB097 07200 HLH 47306 b


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 
15other such
charge is not a finance charge if imposed for actual 
16unanticipated late
payment, delinquency, default or other 
17occurrence.

18 (h) Advertising for loans transacted under this Section may 
19not be
false, misleading, or deceptive. That advertising, if it 
20states a rate
or amount of interest, must state that rate as an 
21annual percentage rate
of interest charged. In addition, if 
22charges other than for interest are
made in connection with 
23those loans, those charges must be separately
stated. No 
24advertising may indicate or imply that the rates or charges
for 
25loans are in any way "recommended", "approved", "set" or

26"established" by the State government or by this Act.

 
 
SB1227- 157 -LRB097 07200 HLH 47306 b


1 (i) A lender or creditor who complies with the federal 
2Truth in Lending
Act, amendments thereto, and any regulations 
3issued or which may be issued
thereunder, shall be deemed to be 
4in 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 
7property" include a manufactured home as defined in subdivision 
8(53) of Section 9-102 of the Uniform Commercial Code that is 
9real property as defined in the Conveyance and Encumbrance of 
10Manufactured 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 
13Act 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 
17Illinois Vehicle
Code but does not include bicycles, 
18motorcycles, motor scooters,
snowmobiles, trailers, and farm 
19equipment, 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 
23by changing Section 2.1 as follows:




 
 
SB1227- 158 -LRB097 07200 HLH 47306 b


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 
3primarily for personal,
family, or household purposes. "Goods" 
4includes goods purchased primarily
for agricultural purposes 
5only for the purposes of the credit disclosure
requirements of 
6this Act. "Goods" includes merchandise certificates or
coupons 
7issued by a retail seller to be used in their face amount in 
8the
purchase of goods or services sold by such a seller but 
9does not include
money or other things in action. It also 
10includes goods which are furnished
or used, at the time of sale 
11or subsequently, in the modernization,
rehabilitation, repair, 
12alteration, improvement, or construction of real
estate so as 
13to become a part of that real estate whether or not severable

14therefrom. "Goods" includes a manufactured home as defined in 
15subdivision (53) of Section 9-102 of the Uniform Commercial 
16Code that is not real property as defined in the Conveyance and 
17Encumbrance of Manufactured Homes as Real Property and 
18Severance Act. "Goods" does not include a motor vehicle as 
19defined in The
Illinois Vehicle Code, but does include 
20bicycles, motorcycles, motor
scooters, snowmobiles and 
21trailers when purchased primarily for personal,
family or 
22household purposes. "Goods" does not include goods used or

23purchased primarily for business or commercial purposes.

24(Source: P.A. 77-1166.)

                                   
 
 
SB1227- 159 -LRB097 07200 HLH 47306 b


1
INDEX

2
Statutes amended in order of appearance

3 New Act
4 35 ILCS 105/3-3 new
5 35 ILCS 120/5m new
6 35 ILCS 200/1-130
7 35 ILCS 515/1from Ch. 120, par. 1201
8 35 ILCS 515/4from Ch. 120, par. 1204
9 205 ILCS 5/3from Ch. 17, par. 309
10 205 ILCS 5/5afrom Ch. 17, par. 312
11 205 ILCS 5/5dfrom Ch. 17, par. 312.3
12 205 ILCS 5/6.1from Ch. 17, par. 313.1
13 205 ILCS 105/1-10.30from Ch. 17, par. 3301-10.30
14 205 ILCS 105/5-2from Ch. 17, par. 3305-2
15 205 ILCS 205/6002from Ch. 17, par. 7306-2
16 205 ILCS 205/6008from Ch. 17, par. 7306-8
17 205 ILCS 305/46from Ch. 17, par. 4447
18 205 ILCS 305/46.1from Ch. 17, par. 4447.1
19 205 ILCS 635/1-4
20 210 ILCS 115/2.1from Ch. 111 1/2, par. 712.1
21 210 ILCS 117/10
22 430 ILCS 115/2from Ch. 67 1/2, par. 502
23 430 ILCS 117/10
24 625 ILCS 5/1-144.03 new
25 625 ILCS 5/3-100from Ch. 95 1/2, par. 3-100
                                      
 
 
SB1227- 160 -LRB097 07200 HLH 47306 b


1 625 ILCS 5/3-102from Ch. 95 1/2, par. 3-102
2 625 ILCS 5/3-103from Ch. 95 1/2, par. 3-103
3 625 ILCS 5/3-104from Ch. 95 1/2, par. 3-104
4 625 ILCS 5/3-106from Ch. 95 1/2, par. 3-106
5 625 ILCS 5/3-107from Ch. 95 1/2, par. 3-107
6 625 ILCS 5/3-109from Ch. 95 1/2, par. 3-109
7 625 ILCS 5/3-110from Ch. 95 1/2, par. 3-110
8 625 ILCS 5/3-116from Ch. 95 1/2, par. 3-116
9 625 ILCS 5/3-116.1 new
10 625 ILCS 5/3-116.2 new
11 625 ILCS 5/3-116.3 new
12 625 ILCS 5/3-202from Ch. 95 1/2, par. 3-202
13 625 ILCS 5/3-205from Ch. 95 1/2, par. 3-205
14 625 ILCS 5/3-207from Ch. 95 1/2, par. 3-207
15 625 ILCS 5/3-208from Ch. 95 1/2, par. 3-208
16 735 ILCS 5/15-1213from Ch. 110, par. 15-1213
17 765 ILCS 5/38from Ch. 30, par. 37
18 765 ILCS 77/5
19 765 ILCS 745/3from Ch. 80, par. 203
20 765 ILCS 905/13.1 new
21 765 ILCS 1005/5 new
22 810 ILCS 5/9-102from Ch. 26, par. 9-102
23 815 ILCS 205/4from Ch. 17, par. 6404
24 815 ILCS 205/4.2from Ch. 17, par. 6407
25 815 ILCS 205/4afrom Ch. 17, par. 6410
26 815 ILCS 375/2.1from Ch. 121 1/2, par. 562.1
 
 
SB1227- 161 -LRB097 07200 HLH 47306 b