093_HB3138

 
                                     LRB093 09804 LCB 10049 b

 1        AN ACT concerning mortgages.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Mortgage  Act  is  amended  by  changing
 5    Section 4 as follows:

 6        (765 ILCS 905/4) (from Ch. 95, par. 54)
 7        Sec. 4.
 8        (a)  If any mortgagee or trustee, in a deed in the nature
 9    of   a  mortgage,  of  real  property,  or  his  executor  or
10    administrator, heirs or assigns, knowing the same to be paid,
11    shall not, within one month after the  payment  of  the  debt
12    secured  by  such  mortgage  or  trust  deed, comply with the
13    requirements of Section 2 of this Act, he  shall,  for  every
14    such  offense,  be  liable for and pay to the party aggrieved
15    the sum of $500 $200 which may  be  recovered  by  the  party
16    aggrieved   in  a  civil  action,  together  with  reasonable
17    attorney's fees and court costs.
18        (b)  If any mortgagee or trustee, in a deed in the nature
19    of a mortgage, of real property, or his or  her  executor  or
20    administrator, heirs or assigns, knowing the same to be paid,
21    and  having charged the borrower or any successor in interest
22    to the  borrower  seeking  a  release  of  the  fee  for  the
23    preparation  of the release or having collected a fee for the
24    recording of the same, shall not, within one month after  the
25    payment  of  the  debt secured by the mortgage or trust deed,
26    comply with the requirements of Section 2 of this Act, he  or
27    she  shall,  for every such offense, be liable for and pay to
28    the party aggrieved the sum of $2,000 which may be  recovered
29    by  the  party  aggrieved  in  a  civil action, together with
30    reasonable attorney's fees and court costs.
31        (c)  In any such action, introduction of a  loan  payment
 
                            -2-      LRB093 09804 LCB 10049 b
 1    book  or receipt which indicates that the obligation has been
 2    paid shall be sufficient evidence to raise a presumption that
 3    the obligation has been paid. Upon a finding  for  the  party
 4    aggrieved, the court shall order the mortgagee or trustee, or
 5    his  executor  or  administrator,  heirs or assigns, to make,
 6    execute and deliver the release as provided in Section  2  of
 7    this  Act.  The  successor  in  interest  to the mortgagee or
 8    trustee in a deed in the nature of a mortgage  shall  not  be
 9    liable  for  the  penalty  prescribed  in  this Section if he
10    complies with the requirements  of  Section  2  of  this  Act
11    within one month after succeeding to the interest.
12    (Source: P.A. 78-587.)

13        Section  99.  Effective date.  This Act takes effect upon
14    becoming law.