(35 ILCS 200/21-305)
Sec. 21-305. Payments from Indemnity Fund.
(a) Any owner of property sold under any provision of this Code who
sustains loss or damage by
reason of the issuance of a tax deed under Section 21-445 or 22-40 and who is
barred or is in any way
precluded from bringing an action for the recovery of the property shall have
the right to indemnity for the
loss or damage sustained, limited as follows:
(1) An owner who resided on property that contained 4 |
| or less dwelling units on the last day of the period of redemption and who is equitably entitled to compensation for the loss or damage sustained has the right to indemnity. An equitable indemnity award shall be limited to the fair cash value of the property as of the date the tax deed was issued less any mortgages or liens on the property, and the award will not exceed $99,000. The Court shall liberally construe this equitable entitlement standard to provide compensation wherever, in the discretion of the Court, the equities warrant the action.
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An owner of a property that contained 4 or less
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| dwelling units who requests an award in excess of $99,000 must prove that the loss of his or her property was not attributable to his or her own fault or negligence before an award in excess of $99,000 will be granted.
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(2) An owner who sustains the loss or damage of any
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| property occasioned by reason of the issuance of a tax deed, without fault or negligence of his or her own, has the right to indemnity limited to the fair cash value of the property less any mortgages or liens on the property. In determining the existence of fault or negligence, the court shall consider whether the owner exercised ordinary reasonable diligence under all of the relevant circumstances.
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(3) In determining the fair cash value of property
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| less any mortgages or liens on the property, the fair cash value shall be reduced by the principal amount of all taxes paid by the tax purchaser or his or her assignee before the issuance of the tax deed.
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(4) If an award made under paragraph (1) or (2) is
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| subject to a reduction by the amount of an outstanding mortgage or lien on the property, other than the principal amount of all taxes paid by the tax purchaser or his or her assignee before the issuance of the tax deed and the petitioner would be personally liable to the mortgagee or lienholder for all or part of that reduction amount, the court shall order an additional indemnity award to be paid directly to the mortgagee or lienholder sufficient to discharge the petitioner's personal liability. The court, in its discretion, may order the joinder of the mortgagee or lienholder as an additional party to the indemnity action.
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(b) Indemnity fund; subrogation.
(1) Any person claiming indemnity hereunder shall
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| petition the Court which ordered the tax deed to issue, shall name the County Treasurer, as Trustee of the indemnity fund, as defendant to the petition, and shall ask that judgment be entered against the County Treasurer, as Trustee, in the amount of the indemnity sought. The provisions of the Civil Practice Law shall apply to proceedings under the petition, except that neither the petitioner nor County Treasurer shall be entitled to trial by jury on the issues presented in the petition. The Court shall liberally construe this Section to provide compensation wherever in the discretion of the Court the equities warrant such action.
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(2) The County Treasurer, as Trustee of the indemnity
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| fund, shall be subrogated to all parties in whose favor judgment may be rendered against him or her, and by third party complaint may bring in as a defendant any person, other than the tax deed grantee and its successors in title, not a party to the action who is or may be liable to him or her, as subrogee, for all or part of the petitioner's claim against him or her.
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(c) Any contract involving the proceeds of a judgment for indemnity under
this Section, between the
tax deed grantee or its successors in title and the indemnity petitioner or his
or her successors, shall be in
writing. In any action brought under Section 21-305, the Collector shall be
entitled to discovery regarding,
but not limited to, the following:
(1) the identity of all persons beneficially
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| interested in the contract, directly or indirectly, including at least the following information: the names and addresses of any natural persons; the place of incorporation of any corporation and the names and addresses of its shareholders unless it is publicly held; the names and addresses of all general and limited partners of any partnership; the names and addresses of all persons having an ownership interest in any entity doing business under an assumed name, and the county in which the assumed business name is registered; and the nature and extent of the interest in the contract of each person identified;
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(2) the time period during which the contract was
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| negotiated and agreed upon, from the date of the first direct or indirect contact between any of the contracting parties to the date of its execution;
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(3) the name and address of each natural person who
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| took part in negotiating the contract, and the identity and relationship of the party that the person represented in the negotiations; and
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(4) the existence of an agreement for payment of
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| attorney's fees by or on behalf of each party.
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Any information disclosed during discovery may be subject to protective order
as deemed appropriate by
the court. The terms of the contract shall not be used as evidence of value.
(d) A petition of indemnity under this Section must be filed within 10 years after the date the tax deed was issued.
(Source: P.A. 97-557, eff. 7-1-12 .)
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(35 ILCS 200/21-310)
Sec. 21-310. Sales in error.
(a) When, upon application of the county collector, the owner of the
certificate of purchase, the holder of a 5% lien issued pursuant to Section 21-240, or a
municipality which owns or has owned the property ordered sold, it appears to
the satisfaction of the court which ordered the property sold that any of the
following subsections are applicable, the court shall declare the sale to be a
sale in error:
(1) the property was not subject to taxation, or all |
| or any part of the lien of taxes sold has become null and void pursuant to Section 21-95 or unenforceable pursuant to subsection (c) of Section 18-250 or subsection (b) of Section 22-40;
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(2) the taxes or special assessments had been paid
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| prior to the sale of the property;
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(3) there is a double assessment;
(4) the description is void for uncertainty;
(5) the assessor, chief county assessment officer,
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| board of review, board of appeals, or other county official has made an error material to the tax certificate at issue (other than an error of judgment as to the value of any property), provided, however, that a sale in error may not be declared upon application of the owner of the certificate of purchase under this paragraph (5) if the county collector provided notice in accordance with Section 21-118 that the same property received a previous sale in error on the same facts;
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(5.5) the owner of the homestead property had
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| tendered timely and full payment to the county collector that the owner reasonably believed was due and owing on the homestead property, and the county collector did not apply the payment to the homestead property; provided that this provision applies only to homeowners, not their agents or third-party payors;
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(6) a voluntary or involuntary petition was filed by
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| or against the legal or beneficial owner of the property requesting relief under the provisions of 11 U.S.C. Chapter 7, 11, 12, or 13, and the bankruptcy case was open on the date the collector's application for judgment was filed pursuant to Section 21-150 or 21-155 or the date of the tax sale;
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(7) the property is owned by the United States, the
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| State of Illinois, a municipality, or a taxing district; or
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(8) the owner of the property is a reservist or
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| guardsperson who is granted an extension of his or her due date under Sections 21-15, 21-20, and 21-25 of this Act.
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(b) When, upon application of the owner of the certificate of purchase
only, it appears to the satisfaction of the court which ordered the property
sold that any of the following subsections are applicable, the court shall
declare the sale to be a sale in error:
(1) A voluntary or involuntary petition under the
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| provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been filed subsequent to the tax sale and prior to the issuance of the tax deed, and the bankruptcy case was open on the date the petition for a sale in error was filed.
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(2) The improvements upon the property sold have been
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| substantially destroyed subsequent to the tax sale and prior to the issuance of the tax deed; however, if the court declares a sale in error under this paragraph (2), the court may order the holder of the certificate of purchase to assign the certificate to the county collector if requested by the county collector. The county collector may, upon request of the county, as trustee, or upon request of a taxing district having an interest in the taxes sold, further assign any certificate of purchase received pursuant to this paragraph (2) to the county acting as trustee for taxing districts pursuant to Section 21-90 of this Code or to the taxing district having an interest in the taxes sold.
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(3) There is an interest held by the United States in
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| the property sold which could not be extinguished by the tax deed.
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(4) The real property contains a hazardous substance,
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| hazardous waste, or underground storage tank that would require cleanup or other removal under any federal, State, or local law, ordinance, or regulation, only if the tax purchaser purchased the property without actual knowledge of the hazardous substance, hazardous waste, or underground storage tank. The presence of a grease trap on the property is not grounds for a sale in error under this paragraph (4). This paragraph (4) applies only if the owner of the certificate of purchase has made application for a sale in error at any time before the issuance of a tax deed. If the court declares a sale in error under this paragraph (4), the court may order the holder of the certificate of purchase to assign the certificate to the county collector if requested by the county collector. The county collector may, upon request of the county, as trustee, or upon request of a taxing district having an interest in the taxes sold, further assign any certificate of purchase received pursuant to this paragraph (4) to the county acting as trustee for taxing districts pursuant to Section 21-90 of this Code or to the taxing district having an interest in the taxes sold.
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Whenever a court declares a sale in error under this subsection (b), the State's attorney shall promptly notify the county collector in writing.
(c) When the county collector discovers, prior to the expiration of the period of redemption, that a tax sale
should not have occurred for one or more of the reasons set forth in
subdivision (a)(1), (a)(2), (a)(3), (a)(4), (a)(5.5), (a)(6), (a)(7), or (a)(8) of this Section, the county
collector shall notify the last known owner of the tax certificate by
certified and regular mail, or other means reasonably calculated to provide
actual notice, that the county collector intends to declare an administrative
sale in error and of the reasons therefor, including documentation sufficient
to establish the reason why the sale should not have occurred. The owner of the
certificate of purchase may object in writing within 28 days after the date of
the mailing by the county collector. If an objection is filed, the county
collector shall not administratively declare a sale in error, but may apply to
the circuit court for a sale in error as provided in subsection (a) of this
Section. Thirty days following the receipt of notice by the last known owner of
the certificate of purchase, or within a reasonable time thereafter, the county
collector shall make a written declaration, based upon clear and convincing
evidence, that the taxes were sold in error and shall deliver a copy thereof to
the county clerk within 30 days after the date the declaration is made for
entry in the tax judgment, sale, redemption, and forfeiture record pursuant to
subsection (d) of this Section. The county collector shall promptly notify the
last known owner of the certificate of purchase of the declaration by regular
mail and shall, except if the certificate was issued pursuant to a no-cash bid, promptly pay the amount of the tax sale, together with interest
and costs as provided in Section 21-315, upon surrender of the original
certificate of purchase.
(d) If a sale is declared to be a sale in error for any reason set forth in Section 22-35, Section 22-50, or subdivision (a)(5), (b)(2), or (b)(4) of this Section, the tax certificate shall be forfeited to the county as trustee pursuant to Section 21-90 of this Code, unless the county collector informs the county and the county clerk in writing that the tax certificate shall not be forfeited to the county as trustee. The county
clerk shall make entry in the tax judgment, sale, redemption and
forfeiture record, that the property was erroneously sold and that the tax certificate is forfeited to the county pursuant to Section 21-90, and the county
collector shall, on demand of the owner of the certificate of purchase, refund
the amount paid, except for the nonrefundable $80 fee paid, pursuant to Section 21-295, for each item purchased at the tax sale, pay any interest and costs as may be ordered under Sections
21-315 through 21-335, and cancel the certificate so far as it relates to the
property. The county collector shall deduct from the accounts of the
appropriate taxing bodies their pro rata amounts paid.
(e) Whenever the collector declares an administrative sale in error under this Section, the collector must send a copy of the declaration of the administrative sale in error, and documentation sufficient to establish the reason why the sale should not have occurred, to the government entity responsible for maintaining assessment books and property record cards for the subject property. That entity must review the documentation sent by the collector, make a determination as to whether an update to the assessment books or property record cards is necessary to prevent a recurrence of the sale in error, and update the assessment books or property record cards as appropriate.
(f) Whenever a court declares a sale in error under this Section, the State's attorney must send a copy of the application and order declaring the sale in error to the county collector, the county clerk, and the government entity responsible for maintaining the assessment books and property record cards for the subject property. The collector, the county clerk, and the other government entity must each review the application and order sent by the State's attorney and make a determination as to whether an update to its respective records is necessary to prevent a recurrence of the sale in error, and update its records as appropriate.
The changes made to this Section by this amendatory Act of the 103rd General Assembly apply to matters concerning tax certificates issued on or after the effective date of this amendatory Act of the 103rd General Assembly.
(Source: P.A. 103-555, eff. 1-1-24 .)
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(35 ILCS 200/21-355)
Sec. 21-355. Amount of redemption. Any person desiring to redeem shall
deposit an amount specified in this Section with the county clerk of the
county in which the property is situated,
in legal money of the United States, or by cashier's check, certified check,
post office money order or money order issued by a financial institution
insured by an agency or instrumentality of the United States, payable to the
county clerk of the proper county. The deposit shall be deemed timely only
if actually received in person at the county clerk's office prior to the close
of business as defined in Section 3-2007 of the Counties Code on or before the
expiration of the period of redemption or by United
States mail with a post office cancellation mark dated not less than one day
prior to the expiration of the period of redemption. The deposit shall
be
in an amount equal to the total of the
following:
(a) the certificate amount, which shall include all |
| tax principal, special assessments, interest and penalties paid by the tax purchaser together with costs and fees of sale and fees paid under Sections 21-295 and 21-315 through 21-335, except for the nonrefundable $80 fee paid, pursuant to Section 21-295, for each item purchased at the tax sale;
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(b) the accrued penalty, computed through the date of
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| redemption as a percentage of the certificate amount, as follows:
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(1) if the redemption occurs on or before the
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| expiration of 6 months from the date of sale, the certificate amount times the penalty bid at sale;
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(2) if the redemption occurs after 6 months from
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| the date of sale, and on or before the expiration of 12 months from the date of sale, the certificate amount times 2 times the penalty bid at sale;
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(3) if the redemption occurs after 12 months from
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| the date of sale and on or before the expiration of 18 months from the date of sale, the certificate amount times 3 times the penalty bid at sale;
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(4) if the redemption occurs after 18 months from
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| the date of sale and on or before the expiration of 24 months from the date of sale, the certificate amount times 4 times the penalty bid at sale;
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(5) if the redemption occurs after 24 months from
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| the date of sale and on or before the expiration of 30 months from the date of sale, the certificate amount times 5 times the penalty bid at sale;
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(6) if the redemption occurs after 30 months from
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| the date of sale and on or before the expiration of 36 months from the date of sale, the certificate amount times 6 times the penalty bid at sale.
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In the event that the property to be redeemed has
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| been purchased under Section 21-405 before January 1, 2024, the penalty bid shall be 12% per penalty period as set forth in subparagraphs (1) through (6) of this subsection (b). The changes to this subdivision (b)(6) made by this amendatory Act of the 91st General Assembly are not a new enactment, but declaratory of existing law.
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If the property to be redeemed is property with
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| respect to which a tax lien or certificate is acquired on or after January 1, 2024 by the county as trustee pursuant to Section 21-90, the penalty bid is 0.75% and shall accrue monthly instead of according to the penalty periods established in subparagraphs (1) through (6) of this subsection (b).
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(c) The total of all taxes, special assessments,
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| accrued interest on those taxes and special assessments and costs charged in connection with the payment of those taxes or special assessments, except for the nonrefundable $80 fee paid, pursuant to Section 21-295, for each item purchased at the tax sale, which have been paid by the tax certificate holder on or after the date those taxes or special assessments became delinquent together with 12% penalty on each amount so paid for each year or portion thereof intervening between the date of that payment and the date of redemption. In counties with less than 3,000,000 inhabitants, however, a tax certificate holder may not pay all or part of an installment of a subsequent tax or special assessment for any year, nor shall any tender of such a payment be accepted, until after the second or final installment of the subsequent tax or special assessment has become delinquent or until after the holder of the certificate of purchase has filed a petition for a tax deed under Section 22.30. The person redeeming shall also pay the amount of interest charged on the subsequent tax or special assessment and paid as a penalty by the tax certificate holder. This amendatory Act of 1995 applies to tax years beginning with the 1995 taxes, payable in 1996, and thereafter.
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(d) Any amount paid to redeem a forfeiture occurring
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| before January 1, 2024 but after the tax sale together with 12% penalty thereon for each year or portion thereof intervening between the date of the forfeiture redemption and the date of redemption from the sale.
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(e) Any amount paid by the certificate holder for
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| redemption of a subsequently occurring tax sale, including tax liens or certificates held by the county as trustee, pursuant to Section 21-90.
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(f) All fees paid to the county clerk under Section
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(g) All fees paid to the registrar of titles incident
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| to registering the tax certificate in compliance with the Registered Titles (Torrens) Act.
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(h) All fees paid to the circuit clerk and the
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| sheriff, a licensed or registered private detective, or the coroner in connection with the filing of the petition for tax deed and service of notices under Sections 22-15 through 22-30 and 22-40 in addition to (1) a fee of $35 if a petition for tax deed has been filed, which fee shall be posted to the tax judgement, sale, redemption, and forfeiture record, to be paid to the purchaser or his or her assignee; (2) a fee of $4 if a notice under Section 22-5 has been filed, which fee shall be posted to the tax judgment, sale, redemption, and forfeiture record, to be paid to the purchaser or his or her assignee; (3) all costs paid to record a lis pendens notice in connection with filing a petition under this Code; and (4) if a petition for tax deed has been filed, all fees up to $150 per redemption paid to a registered or licensed title insurance company or title insurance agent for a title search to identify all owners, parties interested, and occupants of the property, to be paid to the purchaser or his or her assignee. The fees in (1) and (2) of this paragraph (h) shall be exempt from the posting requirements of Section 21-360. The costs incurred in causing notices to be served by a licensed or registered private detective under Section 22-15, may not exceed the amount that the sheriff would be authorized by law to charge if those notices had been served by the sheriff.
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(i) All fees paid for publication of notice of the
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| tax sale in accordance with Section 22-20.
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(j) All sums paid to any county, city, village or
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| incorporated town for reimbursement under Section 22-35.
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(k) All costs and expenses of receivership under
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| Section 21-410, to the extent that these costs and expenses exceed any income from the property in question, if the costs and expenditures have been approved by the court appointing the receiver and a certified copy of the order or approval is filed and posted by the certificate holder with the county clerk. Only actual costs expended may be posted on the tax judgment, sale, redemption and forfeiture record.
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(Source: P.A. 103-555, eff. 1-1-24 .)
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(35 ILCS 200/21-370)
Sec. 21-370. Redemption of forfeited property. Except as otherwise provided
in Section 21-375, any property forfeited to the county may be redeemed or sold
in the following manner:
When property has been forfeited for delinquent general taxes,
the person desiring to redeem shall apply to the county clerk who shall order
the county collector to receive from the person the amount of the forfeited
general taxes, statutory costs, interest prior to forfeiture, printer's fees
due thereon and, in addition, forfeiture interest at a rate of 12% per year or
fraction thereof. Upon presentation of the county clerk's order to the county
collector, the collector shall receive the amount due on account of forfeited
general taxes and give the person duplicate receipts, setting forth a
description of the property and amount received. One of the receipts shall be
countersigned by the county clerk and, when so countersigned, shall be evidence
of the redemption of the property. The receipt shall not be valid until it is
countersigned by the county clerk. The other receipt shall be filed by the
county clerk in his or her office, and the clerk shall make a proper entry of
the redemption of the property on the appropriate books in his or her office
and charge the amount of the redemption to the county collector.
In counties with 3,000,000 or more inhabitants, when
property has been forfeited because of the nonpayment of
delinquent special assessments, the county clerk shall collect from the person
desiring to redeem the amount due on the delinquent special assessment,
together with the interest, costs and penalties fixed by law, and shall
issue a receipt therefor setting forth a description of the property and
the amount received. The receipt shall be evidence of the redemption of
the property therein described. In addition, the city comptroller or other
officer designated and authorized by the city council, board of trustees or
other governing body of any municipal corporation which levied any special
assessment shall have power to collect the amounts due on properties
which have been forfeited, and the interest and penalties due thereon,
based upon an estimate of the cost of redemption computed by the county
clerk and at a rate to be fixed by the city council, board of trustees
or other governing body as to the interest and penalties due thereon and
shall issue a receipt therefor. The person receiving the receipt shall
file with the county clerk the receipt of the municipal officer that
such special assessments and interest and penalties have been paid. Upon
the presentation of the receipt the county clerk shall issue to the person
a certificate of cancellation setting forth a description of the property,
the special assessment warrant and installment, and the amount received by the
municipal officer. The certificate of cancellation shall be evidence
of the redemption of the property therein described. The city council, board of
trustees, or other governing body may authorize the municipal officer to waive
penalties for the first year in excess of 7%. The form of the receipt of
redemption for filing with the county clerk shall be as prescribed by law.
In counties with less than 3,000,000 inhabitants, when property has been
forfeited in whole or in part for the non-payment of delinquent special
assessments, the person desiring to redeem shall apply to the municipal
collector who shall receive the amount due on the delinquent special
assessment, together with the interest, costs and penalties fixed by law, and
issue a certificate therefor. The recipient shall file the certificate of the
municipal collector that the special assessments and the costs, interest and
penalties thereon have been paid with the county clerk. The municipal
collector's certificate of payment shall be filed by the county clerk in his or
her office and the clerk shall make a proper entry of the redemption on the
books in his or her office.
This Section 21-370 does not apply to any forfeiture that occurs on or after January 1, 2024. (Source: P.A. 103-555, eff. 1-1-24 .)
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(35 ILCS 200/21-375)
Sec. 21-375.
Partial redemption of forfeited properties.
In counties with
less than 3,000,000 inhabitants, when forfeited taxes on a property remain
unpaid for one or more years, it is permissible to pay to the county or
township collector, one or more full years of back or forfeited taxes, interest
prior to forfeiture, statutory costs, printers' fees, and forfeiture interest
or penalties, attaching thereto beginning with the earliest year for which the
taxes are unpaid. In no case shall payment on account of a designated years'
taxes be accepted unless the sums due for prior years have first been paid or
are tendered at the same time.
Any person seeking to make payments under this Section shall notify the
county clerk of his or her intention in person or by agent or in writing. If
notice is given while the collector has possession of the collector's books,
the county clerk shall prepare an addendum to be presented to the collector and
attached, by the collector, to the collector's books on which the description
of the property involved appears, which addendum shall become a part of the
collector's books. If notice is given after the tax sale, but before receipt
by the county collector of the current collector's books, the county clerk
shall prepare an addendum and attach it to the Tax Judgment, Sale, Redemption,
and Forfeiture record, on which the property involved appears, which addendum
shall become a part of that record.
The addendum shall show separately, for the year or years
to be paid, (a) the amount of back or forfeited taxes, (b) interest prior
to forfeiture, (c) statutory costs and printers' fees, and (d) forfeiture
interest or penalties attaching thereto. The county clerk shall, at the
same time, order the county or town collector to receive from the person the
amount due on account of the taxes, for the year or years determined as
provided above, of the back or forfeited taxes, interest prior to forfeiture,
statutory costs, printers' fees, and forfeiture interest or penalties to date
attaching to the back or forfeited taxes.
Upon presentation of the order from the county clerk, and receipt of the
addendum if the books are in the collector's possession, the collector
shall receive the sum tendered on account of the taxes for the year or
years designated, and make out duplicate receipts therefor. The receipts
shall set forth a description of the property, the year or years paid, and
the total amount received. One copy of the receipt shall be given the
person making payment and, when countersigned by the county clerk, shall be
evidence of the payment therein set forth. The second copy
shall be filed by the county clerk in his or her office.
If the collector's books are in the collector's possession, he or she shall
enter the payment on the current collector's books or addendum, and he or
she shall also enter any unpaid balance on the Tax Judgment, Sale, Redemption
and Forfeiture record at the proper time.
After the tax sale and before receipt by the county collector of the current
collector's books, the county clerk shall make a proper entry on the Tax
Judgment, Sale, Redemption and Forfeiture record, and shall charge the county
collector with the sum received. The county clerk shall also enter any unpaid
balance on the county collector's books at the proper time.
The county collector shall distribute all sums received as required by law.
(Source: P.A. 76-2254; 88-455.)
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