97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1337

 

Introduced 2/9/2011, by Rep. Brandon W. Phelps

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 5/11  from Ch. 30, par. 10

    Amends the Conveyances Act. Provides that notwithstanding any other provision of the Act that concerns the form of a mortgage, no person may challenge the validity of or the priority of an otherwise lawfully executed and recorded mortgage solely on the basis that the rate of interest was not expressed in the mortgage.


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A BILL FOR

 

HB1337LRB097 05449 AJO 45507 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Conveyances Act is amended by changing
5Section 11 as follows:
 
6    (765 ILCS 5/11)  (from Ch. 30, par. 10)
7    Sec. 11. (a) Mortgages of lands may be substantially in the
8following form:
9    The Mortgagor (here insert name or names), mortgages and
10warrants to (here insert name or names of mortgagee or
11mortgagees), to secure the payment of (here recite the nature
12and amount of indebtedness, showing when due and the rate of
13interest, and whether secured by note or otherwise), the
14following described real estate (here insert description
15thereof), situated in the County of ...., in the State of
16Illinois.
17    Dated (insert date).
18
(signature of mortgagor or mortgagors)

 
19    The names of the parties shall be typed or printed below
20the signatures. Such form shall have a blank space of 3 1/2
21inches by 3 1/2 inches for use by the recorder. However, the
22failure to comply with the requirement that the names of the

 

 

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1parties be typed or printed below the signatures and that the
2form have a blank space of 3 1/2 inches by 3 1/2 inches for use
3by the recorder shall not affect the validity and effect of
4such form.
5    Such mortgage, when otherwise properly executed, shall be
6deemed and held a good and sufficient mortgage in fee to secure
7the payment of the moneys therein specified; and if the same
8contains the words "and warrants," the same shall be construed
9the same as if full covenants of ownership, good right to
10convey against incumbrances of quiet enjoyment and general
11warranty, as expressed in Section 9 of this Act were fully
12written therein; but if the words "and warrants" are omitted,
13no such covenants shall be implied. When the grantor or
14grantors in such deed or mortgage for the conveyance of any
15real estate desires to release or waive his, her or their
16homestead rights therein, they or either of them may release or
17waive the same by inserting in the form of deed or mortgage (as
18the case may be), provided in Sections 9, 10 and 11, after the
19words "State of Illinois," in substance the following words,
20"hereby releasing and waiving all rights under and by virtue of
21the homestead exemption laws of this State."
22    Mortgages securing "reverse mortgage" loans shall be
23subject to this Section except where requirements concerning
24the definiteness of the term and amount of indebtedness
25provisions of a mortgage would be inconsistent with the Acts
26authorizing "reverse mortgage" loans, or rules and regulations

 

 

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1promulgated under those Acts.
2    Mortgages securing "revolving credit" loans shall be
3subject to this Section.
4    (b) Notwithstanding any provision of subsection (a) of this
5Section, no person may challenge the validity or priority of an
6otherwise lawfully executed and recorded mortgage solely on the
7basis that the rate of interest was not expressed in the
8recorded mortgage instrument.
9(Source: P.A. 91-357, eff. 7-29-99.)