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Illinois Compiled Statutes

Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

VEHICLES
(625 ILCS 5/) Illinois Vehicle Code.

625 ILCS 5/3-117.3

    (625 ILCS 5/3-117.3)
    Sec. 3-117.3. Junking or salvage certificates; insurance company; salvage dealer.
    (a) For purposes of this Section, "salvage dealer" means a licensed dealer who primarily sells salvage vehicles on behalf of insurance companies and obtains a "salvage dealer" designation through the used dealer application process under Section 5-102 of this Code.
    (b) Notwithstanding any other provision of law to the contrary, an insurance company or salvage dealer may, after completing a record search for any owner of a vehicle or a lienholder of record, obtain free of any lien a junking certificate or salvage certificate in the insurance company's name by submitting an application for a junking certificate or salvage certificate to the Secretary of State. The application shall include, but is not limited to, proof of full payment, in whole or in part, to the vehicle owner or, if applicable, any lienholder of record and proof of notice to the vehicle owner and any lienholder via certified mail or other proof of service that a transfer of title shall occur no earlier than 30 days after the date the notice is sent. Upon approval of the application, the Secretary shall issue to the insurance company a junking certificate or salvage certificate free of any lien in the insurance company's name.
    An insurance company or salvage dealer shall not sell a salvage vehicle with a title obtained under this subsection (b) to anyone not authorized to buy salvage vehicles under this Code.
    This subsection (b) shall apply only to a motor vehicle titled in this State that has been through an insurance claims process and the owner of the vehicle or lienholder, if applicable, has received compensation in exchange for relinquishing the ownership rights of the vehicle to an insurance company licensed under the Illinois Insurance Code and the insurance company is unable to obtain an endorsed certificate of title within 30 days of payment to the owner or lienholder.
    (c) Notwithstanding any other provision of law to the contrary, a salvage dealer may, after completing a record search for any owner of a vehicle or a lienholder of record, obtain free of any lien a junking certificate or salvage certificate in his or her name by submitting an application for a junking certificate or a salvage certificate to the Secretary of State which shall include, but is not limited to, proof of notice via certified mail or other proof of service to the vehicle owner or any lienholder that a transfer of title shall occur no earlier than 30 days after the date the notice is sent. The notice shall inform the vehicle owner or lienholder that upon payment of any applicable charges, the vehicle may be removed from the salvage dealer's facility. Upon approval of the application, the Secretary shall issue to the salvage dealer a junking certificate or salvage certificate free of any lien in the salvage dealer's name.
    A salvage dealer shall not sell a salvage vehicle with a title obtained under this subsection (c) to anyone not authorized to buy salvage vehicles under this Code.
    This subsection (c) shall apply only to a motor vehicle titled in this State and in possession of a salvage dealer by request of an insurance company licensed under the Illinois Insurance Code to take possession of the motor vehicle subject to an insurance claim and the insurance company denies coverage of the vehicle or does not take ownership of the vehicle within 45 days of possession by the salvage dealer.
    (d) A vehicle owner or lienholder may send notice of dispute of the transfer of title under this Section within 30 days after the required notice is sent by the insurance company or salvage dealer. If a dispute between a vehicle owner or lienholder and an insurance company or salvage dealer cannot be resolved within 45 days after the required notice to the vehicle owner or lienholder is sent, the vehicle owner or lienholder, within 90 days after sending notice of dispute, shall petition a court of competent jurisdiction for an order to determine ownership of the vehicle and shall notify the Secretary of State of the filing of the petition. If a vehicle owner or lienholder does not file a petition within the 90-day period, the title to the vehicle shall be issued to the insurance company or salvage dealer under this Section.
    (e) Any person who without authority acquires, sells, exchanges, gives away, transfers, or destroys or offers to acquire, sell, exchange, give away, transfer, or destroy the certificate of title to any vehicle which is a junk or salvage vehicle shall be guilty of a Class 3 felony.
    (f) Any person who knowingly fails to surrender to the Secretary of State a certificate of title, salvage certificate, or certificate of purchase is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for a second and subsequent offense.
    (g) Any vehicle which is salvage or junk may not be driven or operated on roads and highways within this State. A violation of this subsection (g) is a Class A misdemeanor. A salvage vehicle displaying valid special plates issued under subsection (b) of Section 3-601 of this Code, which is being driven to or from an inspection conducted under Section 3-308 of this Code, is exempt from the provisions of this subsection (g). A salvage vehicle for which a short term permit has been issued under Section 3-307 of this Code is exempt from the provisions of this subsection (g) for the duration of the permit.
    (h) The Secretary of State may adopt any rules necessary to implement this Section.
(Source: P.A. 100-104, eff. 11-9-17.)

625 ILCS 5/3-118

    (625 ILCS 5/3-118) (from Ch. 95 1/2, par. 3-118)
    Sec. 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
    
the Secretary of State.
    (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)
    Sec. 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, or corrosion. 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)
ARTICLE II. SECURITY INTERESTS

625 ILCS 5/3-201

    (625 ILCS 5/3-201) (from Ch. 95 1/2, par. 3-201)
    Sec. 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)
    Sec. 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)
    Sec. 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)
    Sec. 3-203. Security interest. 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 security agreement.
    (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)
    Sec. 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)
    Sec. 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 new certificate.
    (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)
    Sec. 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)
    Sec. 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.)