Sen. Don Harmon

Filed: 2/17/2012

 

 


 

 


 
09700SB3358sam001LRB097 18619 HEP 65502 a

1
AMENDMENT TO SENATE BILL 3358

2    AMENDMENT NO. ______. Amend Senate Bill 3358 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Vehicle Code is amended by
5changing Section 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

 

 

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1    (b) As a condition of issuing a certificate of title,
2require the applicant to file with the Secretary of State a
3bond in the form prescribed by the Secretary of State and
4executed by the applicant, and either accompanied by the
5deposit of cash with the Secretary of State or also executed by
6a person authorized to conduct a surety business in this State.
7The bond shall be in an amount equal to one and one-half times
8the value of the vehicle as determined by the Secretary of
9State and conditioned to indemnify any prior owner and
10lienholder and any subsequent purchaser of the vehicle or
11person acquiring any security interest in it, and their
12respective successors in interest, against any expense, loss or
13damage, including reasonable attorney's fees, by reason of the
14issuance of the certificate of title of the vehicle or on
15account of any defect in or undisclosed security interest upon
16the right, title and interest of the applicant in and to the
17vehicle. Any such interested person has a right of action to
18recover on the bond for any breach of its conditions, but the
19aggregate liability of the surety to all persons shall not
20exceed the amount of the bond. The bond, and any deposit
21accompanying it, shall be returned at the end of three (3)
22years or prior thereto if the vehicle is no longer registered
23in this State and the currently valid certificate of title is
24surrendered to the Secretary of State, unless the Secretary of
25State has been notified of the pendency of an action to recover
26on the bond. The Secretary shall waive the requirements of this

 

 

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1subsection (b) for the owner of an antique vehicle manufactured
2more than 50 years before the date the application for a
3certificate of title is made.
4    Security deposited as a bond hereunder shall be placed by
5the Secretary of State in the custody of the State Treasurer.
6    (c) During July, annually, the Secretary shall compile a
7list of all bonds on deposit, pursuant to this Section, for
8more than 3 years and concerning which he has received no
9notice as to the pendency of any judicial proceeding that could
10affect the disposition thereof. Thereupon, he shall promptly
11send a notice by certified mail to the last known address of
12each depositor advising him that his bond will be subject to
13escheat to the State of Illinois if not claimed within 30 days
14after the mailing date of such notice. At the expiration of
15such time, the Secretary of State shall file with the State
16Treasurer an order directing the transfer of such deposit to
17the Road Fund in the State Treasury. Upon receipt of such
18order, the State Treasurer shall make such transfer, after
19converting to cash any other type of security. Thereafter any
20person having a legal claim against such deposit may enforce it
21by appropriate proceedings in the Court of Claims subject to
22the limitations prescribed for such Court. At the expiration of
23such limitation period such deposit shall escheat to the State
24of Illinois.
25(Source: P.A. 81-1458.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".