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225 ILCS 454/20-90
(225 ILCS 454/20-90)
(Section scheduled to be repealed on January 1, 2020)
Collection from Real Estate Recovery Fund; procedure.
(a) No action for a judgment that subsequently results in a post-judgment order for
collection from the
Real Estate Recovery Fund shall be started later than 2 years after the date on
which the aggrieved
person knew, or through the use of reasonable diligence should have known, of
the acts or
omissions giving rise to a right of recovery from the Real Estate Recovery
(b) When any aggrieved person commences action for a judgment that may
collection from the Real Estate Recovery Fund, the aggrieved person must name
defendant to that action any and all licensees, their
employees, or independent contractors who allegedly committed or are responsible for acts or omissions
giving rise to a right
of recovery from the Real Estate Recovery Fund. Failure to name as parties
licensees, their employees, or independent contractors shall preclude recovery
from the Real Estate
Recovery Fund of any portion of any judgment received in such an action. These parties defendant shall also include any corporations, limited
partnerships, registered limited liability partnership, or other business
associations licensed under this Act that may be
responsible for acts giving rise to a right of recovery from the Real Estate
(d) When any aggrieved person commences action for a judgment that may
collection from the Real Estate Recovery Fund, and the aggrieved person is unable to obtain legal
and proper service upon the parties defendant licensed under this Act under the provisions of Illinois law concerning service of
process in civil actions, the aggrieved person may petition the court where the action to obtain
judgment was begun for an order to allow service of legal process on the Secretary. Service of
process on the Secretary shall be taken and held in that court to be as valid and binding as if
due service had been made upon the parties defendant licensed under this Act. In case any process mentioned in this Section is
served upon the Secretary, the Secretary shall forward a copy of the
process by certified
mail to the licensee's last address on record with the Department. Any judgment obtained
after service of
process on the Secretary under this Act shall apply to and be enforceable
against the Real
Estate Recovery Fund only. The Department may intervene in and defend any such action.
(f) The aggrieved person shall give written notice to the Department within 30 days of
the entry of any
judgment that may result in collection from the Real Estate Recovery Fund. The
aggrieved person shall provide the Department with 20 days prior written notice of all
proceedings so as to allow the Department to intervene and participate in all efforts to collect on the
judgment in the same manner as any party.
(g) When any aggrieved person recovers a valid judgment in any court of
jurisdiction against any licensee or an unlicensed employee of any licensee, upon
the grounds of
fraud, misrepresentation, discrimination, or deceit, the aggrieved person may,
upon the termination
of all proceedings, including review and appeals in connection with the
judgment, file a verified
claim in the court in which the judgment was entered and, upon 30 days' written
notice to the Department,
and to the person against whom the judgment was obtained, may apply to the
court for a post-judgment order
directing payment out of the Real Estate Recovery Fund of the amount unpaid
upon the judgment,
not including interest on the judgment, and subject to the limitations stated
in Section 20-85 of this
Act. The aggrieved person must set out in that verified claim and prove at an
evidentiary hearing to be
held by the court upon the application that the claim meets all requirements of Section 20-85 and this Section to be eligible for payment from the Real Estate Recovery Fund and the aggrieved party shall be required to
show that the
(1) Is not a spouse of the debtor or debtors or the
personal representative of such spouse.
(2) Has complied with all the requirements of this
(3) Has obtained a judgment stating the amount
thereof and the amount owing thereon, not including interest thereon, at the date of the application.
(4) Has made all reasonable searches and inquiries to
ascertain whether the judgment debtor or debtors is possessed of real or personal property or other assets, liable to be sold or applied in satisfaction of the judgment.
(5) By such search has discovered no personal or real
property or other assets liable to be sold or applied, or has discovered certain of them, describing them as owned by the judgment debtor or debtors and liable to be so applied and has taken all necessary action and proceedings for the realization thereof, and the amount thereby realized was insufficient to satisfy the judgment, stating the amount so realized and the balance remaining due on the judgment after application of the amount realized.
(6) Has diligently pursued all remedies against all
the judgment debtors and all other persons liable to the aggrieved person in the transaction for which recovery is sought from the Real Estate Recovery Fund, including the filing of an adversary action to have the debts declared non-dischargeable in any bankruptcy petition matter filed by any judgment debtor or person liable to the aggrieved person.
The aggrieved person shall also be required to prove the amount of attorney's
fees sought to be
recovered and the reasonableness of those fees up to the maximum allowed
pursuant to Section 20-85
of this Act.
(h) After conducting the evidentiary hearing required under this Section, the court, in a post-judgment order directed to the Department, shall indicate whether requiring payment from
the Real Estate
Recovery Fund is appropriate and, if so, the amount it finds to be payable upon the claim, pursuant
to and in
accordance with the limitations contained in Section 20-85 of this Act, if the
satisfied, based upon the hearing,
of the truth of all matters required to be shown by the aggrieved person under
subsection (g) of this
Section and that the aggrieved person has fully pursued and exhausted all
remedies available for
recovering the amount awarded by the judgment of the court.
(i) Should the Department pay from the Real Estate Recovery Fund any amount in
settlement of a claim
or toward satisfaction of a judgment against any licensee
or an unlicensed
employee of a licensee, the licensee's license shall be automatically revoked
upon the issuance of a
post-judgment order authorizing payment from the Real Estate Recovery Fund. No
petition for restoration of
a license shall be heard until repayment has been made in full, plus interest
at the rate prescribed in
Section 12-109 of the Code of Civil Procedure of the amount paid from
the Real Estate Recovery Fund on their account, notwithstanding any provision to the contrary in Section 2105-15 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois. A discharge in bankruptcy shall
not relieve a
person from the penalties and disabilities provided in this subsection (i).
(j) If, at any time, the money deposited in the Real Estate Recovery Fund is
satisfy any duly authorized claim or portion thereof, the Department shall, when
sufficient money has been
deposited in the Real Estate Recovery Fund, satisfy such unpaid claims or
portions thereof, in the
order that such claims or portions thereof were originally filed, plus
accumulated interest at the rate
prescribed in Section 12-109 of the Code of Civil Procedure.
(Source: P.A. 96-856, eff. 12-31-09; 97-1002, eff. 8-17-12.)