Illinois Compiled Statutes
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VEHICLES625 ILCS 5/3-118
(625 ILCS 5/) Illinois Vehicle Code.
(625 ILCS 5/3-118)
(from Ch. 95 1/2, par. 3-118)
Application for salvage or junking certificate; contents.
(a) An application for a salvage certificate or junking certificate
shall be made upon the forms prescribed by the Secretary of State and contain:
1. The name and address of the owner;
2. A description of the vehicle including, so far as
the following data exists: its make, year-model, identifying number, type of body, whether new or used;
3. The date of purchase by applicant; and
4. Any further information reasonably required by
(b) The application for salvage certificate must also contain the
current odometer reading and that the stated odometer reading is one of the
following: actual mileage, not the actual mileage or mileage is in
excess of its mechanical limits.
(b-5) Each application for a salvage certificate for a motor vehicle shall be verified by the National Motor Vehicle Title Information System (NMVTIS) for a vehicle history report prior to the Secretary issuing a salvage certificate.
(c) A salvage certificate may be assigned to any person licensed under
this Act as a rebuilder, automotive parts recycler, or scrap processor, or to an
out-of-state salvage vehicle buyer. A salvage certificate for a vehicle that has come from a police impoundment may be assigned to a municipal fire department. A junking certificate may be assigned
to anyone. The provisions for reassignment by dealers under paragraph (a)
of Section 3-113 shall apply to salvage certificates, except as provided
in Section 3-117.2. A salvage certificate may be reassigned to one other
person to whom a salvage certificate may be assigned pursuant to this Section.
(Source: P.A. 99-414, eff. 8-20-15.)
625 ILCS 5/3-118.1
(625 ILCS 5/3-118.1)
(from Ch. 95 1/2, par. 3-118.1)
Whenever a certificate of title is issued for a vehicle
with respect to which a salvage certificate has been previously issued,
the new certificate of title shall bear the notation "REBUILT". However,
insurance companies or persons licensed under Section 5-301 who are also
licensed as a used vehicle dealer under Section 5-102 of this Code may
exchange a salvage certificate for a certificate of title which does not
bear the notation "REBUILT" when there is submitted with the application
satisfactory proof that the salvage certificate was obtained because of a
claim of total loss from theft and the vehicle was recovered
without structural damage caused by collision, fire, flood, theft, rust,
The Secretary may adopt rules governing the issuance of titles authorized
under this Section.
(Source: P.A. 89-189, eff. 1-1-96.)
625 ILCS 5/Ch. 3 Art. II
(625 ILCS 5/Ch. 3 Art. II heading)
625 ILCS 5/3-201
(625 ILCS 5/3-201)
(from Ch. 95 1/2, par. 3-201)
Excepted liens and security interests.
This Article does not apply to or affect:
(a) A lien given by statute or rule of law to a supplier of services or
materials for the vehicle;
(b) A lien given by statute to the United States, this State or any
political subdivision of this State, except liens on trailer coaches and
mobile homes for public assistance, as provided in Section 3-12 (now
repealed) of the
Illinois Public Aid Code.
(c) A security interest in a vehicle created by a manufacturer or dealer
who holds the vehicle for sale, but a buyer in the ordinary course of trade
from the manufacturer or dealer takes free of the security interest.
(Source: P.A. 90-655, eff. 7-30-98.)
625 ILCS 5/3-201.1
(625 ILCS 5/3-201.1)
(from Ch. 95 1/2, par. 3-201.1)
Terminal rent adjustment clause leases.
In the case of
motor vehicles or trailers, a transaction does not create a sale or a security
interest merely because it provides that the rental price is permitted or
required to be adjusted under the agreement either upward or downward by
reference to the amount realized upon sale or other disposition of the
motor vehicle or trailer.
(Source: P.A. 87-493.)
625 ILCS 5/3-202
(625 ILCS 5/3-202)
(from Ch. 95 1/2, par. 3-202)
Perfection of security interest.
(a) Unless excepted by Section 3-201, a security interest in a
vehicle of a type for which a certificate of title is required is not
valid against subsequent transferees or lienholders of the vehicle
unless perfected as provided in this Act. A purchase money security interest in a manufactured home is perfected against the rights of judicial lien creditors and execution creditors on and after the date such purchase money security interest attaches.
(b) A security interest is perfected by the delivery to the
Secretary of State of the existing certificate of title, if any, an
application for a certificate of title containing the name and address
of the lienholder and the
required fee. The security interest is perfected as of the time of
its creation if the
delivery to the Secretary of State is completed within 30 days after the
creation of the security interest or receipt by the new lienholder of the
existing certificate of title from a prior lienholder or licensed
dealer, otherwise as of the
time of the delivery.
(c) If a vehicle is subject to a security interest when brought into
this State, the validity of the security interest is determined by the
law of the jurisdiction where the vehicle was when the security interest
attached, subject to the following:
1. If the parties understood at the time the security
interest attached that the vehicle would be kept in this State and it was brought into this State within 30 days thereafter for purposes other than transportation through this State, the validity of the security interest in this State is determined by the law of this State.
2. If the security interest was perfected under the
law of the jurisdiction where the vehicle was when the security interest attached, the following rules apply:
(A) If the name of the lienholder is shown on an
existing certificate of title issued by that jurisdiction, his security interest continues perfected in this State.
(B) If the name of the lienholder is not shown on
an existing certificate of title issued by that jurisdiction, a security interest may be perfected by the lienholder delivering to the Secretary of State the prescribed notice and by payment of the required fee. Such security interest is perfected as of the time of delivery of the prescribed notice and payment of the required fee.
3. If the security interest was not perfected under
the law of the jurisdiction where the vehicle was when the security interest attached, it may be perfected in this State; in that case perfection dates from the time of perfection in this State.
4. A security interest may be perfected under
paragraph 3 of this subsection either as provided in subsection (b) or by the lienholder delivering to the Secretary of State a notice of security interest in the form the Secretary of State prescribes and the required fee.
(d) Except as otherwise provided in Sections 3-116.1, 3-116.2, 3-207, and the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act, after a certificate of title has been issued for a manufactured home and as long as the manufactured home is subject to any security interest perfected pursuant to this Section, the Secretary of State shall not file an affidavit of affixation, nor cancel the Manufacturer's Statement of Origin, nor revoke the certificate of title, nor issue a certificate of title under Section 3-106, and, in any event, the validity and priority of any security interest perfected pursuant to this Section shall continue, notwithstanding the provision of any other law.
(Source: P.A. 98-749, eff. 7-16-14.)
625 ILCS 5/3-203
(625 ILCS 5/3-203)
(from Ch. 95 1/2, par. 3-203)
If an owner creates a security interest in a vehicle:
(a) The owner shall immediately execute the application, in the
space provided therefor on the certificate of title or on a separate
form the Secretary of State prescribes, to name the lienholder on the
certificate, showing the name and address of the lienholder and cause the
certificate, application and
the required fee to be delivered to the lienholder.
(b) The lienholder shall immediately cause the certificate,
application and the required fee to be mailed or delivered to the
Secretary of State.
(c) Upon request of the owner or subordinate lienholder, a
lienholder in possession of the certificate of title shall either mail
or deliver the certificate to the subordinate lienholder for delivery to
the Secretary of State or, upon receipt from the subordinate lienholder
of the owner's application and the required fee, mail or deliver them to
the Secretary of State with the certificate. The delivery of the
certificate does not affect the rights of the first lienholder under his
(d) Upon receipt of the certificate of title, application and the
required fee, the Secretary of State shall issue a new certificate containing
the name and address
of the new lienholder, and mail the certificate to the first lienholder
named in it.
(Source: P.A. 85-511.)
625 ILCS 5/3-204
(625 ILCS 5/3-204)
(from Ch. 95 1/2, par. 3-204)
Assignment by lienholder.
(a) A lienholder may assign, absolutely or otherwise, his security
interest in the vehicle to a person other than the owner without
affecting the interest of the owner or the validity of the security
interest, but any person without notice of the assignment is protected
in dealing with the lienholder as the holder of the security interest
and the lienholder remains liable for any obligations as lienholder
until the assignee is named as lienholder on the certificate.
(b) The assignee may, but need not to perfect the assignment, have
the certificate of title issued with the assignee named as
lienholder, upon delivering to the Secretary of State the certificate
and an assignment by the lienholder named in the certificate in the form
the Secretary of State prescribes.
(Source: P.A. 85-511.)
625 ILCS 5/3-205
(625 ILCS 5/3-205)
(from Ch. 95 1/2, par. 3-205)
Release of security interest.
(a) Within 21 days after receiving payment to satisfy a security interest in a vehicle for
which the certificate of title is in the possession of the lienholder,
he shall execute a release of his security interest, and mail
or deliver the certificate and release to the next lienholder named
therein, or, if none, to the owner or any person who delivers to the
lienholder an authorization from the owner to receive the certificate.
If the payment is in the form of cash, a cashier's check, or a
certified check, the number of days is reduced to 10 business days.
If the owner desires a new certificate reflecting no lien, the certificate
and release from the lienholder may be submitted to the Secretary of State,
along with the prescribed application and required fee, for issuance of that
(b) Within 21 days after receiving payment to satisfy a security interest in a vehicle for
which the certificate of title is in the possession of a prior
lienholder, the lienholder whose security interest is satisfied shall
execute a release and deliver the release to the owner or any
person who delivers to the lienholder an authorization from the owner to
receive it. If the payment is in the form of cash, a cashier's check, or a
certified check, the number of days is reduced to 10 business days. The
lienholder in possession of the certificate of title
may either deliver the certificate to the owner, or the person
authorized by him, for delivery to the Secretary of State, or, upon
receipt of the release, may mail or may deliver the certificate and release,
along with prescribed application and require fee, to
the Secretary of State, who shall issue a new certificate.
(c) In addition to any other penalty, a lienholder who fails to execute a
release of his or her security interest or who fails to mail or deliver the
certificate and release within the time limit provided in subsection (a) or (b)
is liable to the person or entity that was supposed to receive the release or
certificate for $150 plus reasonable attorney fees and court costs.
An action under this Section may be brought in small claims court or in any
other appropriate court.
(d) The holder of a security interest in or a lien on a manufactured home may deliver lien release documents to any person to facilitate conveying or encumbering the manufactured home. Any person receiving any such documents so delivered holds the documents in trust for the security interest holder or the lienholder.
(Source: P.A. 98-749, eff. 7-16-14.)
625 ILCS 5/3-206
(625 ILCS 5/3-206)
(from Ch. 95 1/2, par. 3-206)
Duty of lienholder.
A lienholder named in a certificate of title shall, upon written request
of the owner or of another lienholder named on the certificate, disclose
any pertinent information as to his security agreement and the indebtedness
secured by it.
(Source: P.A. 76-1586.)
625 ILCS 5/3-207
(625 ILCS 5/3-207)
(from Ch. 95 1/2, par. 3-207)
Exclusiveness of procedure.
The method provided in this Act of perfecting and giving notice of
security interests subject to this Act is exclusive. Security interests
subject to this Act are hereby exempted from the provisions of law which
otherwise require or relate to the recording or filing of instruments
creating or evidencing security interests in vehicles including chattel
mortgages and conditional sale agreements, provided, however, that with respect to a manufactured home that is or will be affixed to a permanent foundation, upon recordation of an affidavit of affixation pursuant to the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act and satisfaction of the requirements of Section 3-116.1 or 3-116.2, as applicable, any perfection or termination of a security interest with respect to such permanently affixed property shall be governed by the laws applicable to real property.
(Source: P.A. 98-749, eff. 7-16-14.)