SB3358 EngrossedLRB097 18619 HEP 63853 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by changing
5Section 3-109 as follows:
 
6    (625 ILCS 5/3-109)  (from Ch. 95 1/2, par. 3-109)
7    Sec. 3-109. Registration without certificate of title;
8bond. If the Secretary of State is not satisfied as to the
9ownership of the vehicle or that there are no undisclosed
10security interests in it, the Secretary of State may register
11the vehicle but shall either:
12    (a) Withhold issuance of a certificate of title until the
13applicant presents documents reasonably sufficient to satisfy
14the Secretary of State as to the applicant's ownership of the
15vehicle and that there are no undisclosed security interests in
16it; or
17    (b) As a condition of issuing a certificate of title,
18require the applicant to file with the Secretary of State a
19bond in the form prescribed by the Secretary of State and
20executed by the applicant, and either accompanied by the
21deposit of cash with the Secretary of State or also executed by
22a person authorized to conduct a surety business in this State.
23The 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 the vehicle is no longer registered
16in this State and the currently valid certificate of title is
17surrendered to the Secretary of State, unless the Secretary of
18State has been notified of the pendency of an action to recover
19on the bond. The Secretary shall waive the requirements of this
20subsection (b) for the owner of an antique vehicle manufactured
21more than 50 years before the date the application for a
22certificate of title is made.
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    Section 99. Effective date. This Act takes effect upon
20becoming law.