[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_SB1355 625 ILCS 5/3-114 from Ch. 95 1/2, par. 3-114 625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1 625 ILCS 5/3-104.1 rep. Amends the Illinois Vehicle Code with regard to transfer of title after repossession of a vehicle. Removes provision requiring the lienholder to obtain a repossession title prior to the sale of a repossessed vehicle, providing instead for a 21 day notice of redemption period to the owner after repossession and the provision of an affidavit of defense to the owner, who may file such affidavit to be received by the lienholder within 21 days of the lienholder's notice of repossession to halt the transfer of title. Provides that upon reselling the vehicle the lienholder shall provide to the purchaser the certificate of title, or security agreement if the lienholder does not have the certificate of title, and an affidavit of repossession, with which documents the purchaser may obtain a new certificate of title. Amends the Consumer Installment Loan Act, the Illinois Fairness in Lending Act, and the Motor Vehicle Retail Installment Sales Act to remove the procedural repossession provisions and reference the transfer of title provisions in the Illinois Vehicle Code. Makes other changes. Effective January 1, 1999. LRB9008942SMdvA LRB9008942SMdvA 1 AN ACT regarding the repossession of vehicles. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Consumer Installment Loan Act is amended 5 by changing Section 19.1 as follows: 6 (205 ILCS 670/19.1) (from Ch. 17, par. 5425.1) 7 Sec. 19.1. Where the licensee repossesses a motor vehicle 8 that was used as collateral and which is used primarily for 9 the obligor's personal, family or household purposes, the 10 licensee shall transfer the certificate of title pursuant to 11 Section 3-114 of the Illinois Vehicle Code
and the obligor at12 the time of repossession has paid an amount equal to 30% or13 more of the total of payments due, the obligor may, within 1514 days, reinstate the contract and recover the motor vehicle15 from the licensee by tendering:16 (a) the total of all unpaid amounts, including any17 unpaid delinquency or deferral charges due, without18 acceleration; and19 (b) performance necessary to cure any default other than20 nonpayment of the amounts due; and21 (c) any reasonable cost or fees incurred by the licensee22 in the retaking of the goods. Tender of payment and23 performance pursuant to this Section restores to the obligor24 his rights under the loan as though no default had occurred.25 The obligor has a right to reinstate the contract and recover26 the collateral from the licensee only once under this27 Section.28 The licensee must give written notice to the obligor,29 within 3 days of the repossession, of the obligor's right to30 reinstate the contract and recover the collateral pursuant to31 this Section. The Written notice shall be in substantially-2- LRB9008942SMdvA 1 the following form:2 NOTICE OF RIGHT TO RECOVER VEHICLE3 Your car was repossessed on (specify date) for failure to4 make payments on the loan (or other reason).5 Under Illinois law, because you have paid at least 30% of6 the loan before repossession, you may be able to get the car7 back. To recover the car and reinstate the loan you must do8 the following within 15 days of the date of repossession:9 1. Make payment of all back payments as10 of the date of this notice11 . $...........12 2. Pay any late charge due. $...........13 3. Pay the costs of repossession. $...........14 Total due as of the date of this15 notice16 plus any additional amounts which may become17 due18 between the date of the notice and the date of19 reinstatement. $...........20 Bring cash, a certified check or money order for the21 total amount plus any amounts which may become due between22 the date of the notice and the date of reinstatement to our23 office located at (specify address) by (specify date) to get24 your car back. 25 (Source: P.A. 90-437, eff. 1-1-98.) 26 Section 10. The Illinois Vehicle Code is amended by 27 changing Sections 3-114 and 3-117.1 as follows: 28 (625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114) 29 Sec. 3-114. Transfer by operation of law. 30 (a) If the interest of an owner in a vehicle passes to 31 another other than by voluntary transfer, the transferee 32 shall, except as provided in paragraph (b), promptly mail or -3- LRB9008942SMdvA 1 deliver within 20 days to the Secretary of State the last 2 certificate of title, if available, proof of the transfer, 3 and his application for a new certificate in the form the 4 Secretary of State prescribes. It shall be unlawful for any 5 person having possession of a certificate of title for a 6 motor vehicle, semi-trailer, or house car by reason of his 7 having a lien or encumbrance on such vehicle, to fail or 8 refuse to deliver such certificate to the owner, upon the 9 satisfaction or discharge of the lien or encumbrance, 10 indicated upon such certificate of title. 11 (b) If the interest of an owner in a vehicle passes to 12 another under the provisions of the Small Estates provisions 13 of the Probate Act of 1975 the transferee shall promptly mail 14 or deliver to the Secretary of State, within 120 days, the 15 last certificate of title, if available, the documentation 16 required under the provisions of the Probate Act of 1975, and 17 an application for certificate of title. The Small Estate 18 Affidavit form shall be furnished by the Secretary of State. 19 The transfer may be to the transferee or to the nominee of 20 the transferee. 21 (c) If the interest of an owner in a vehicle passes to 22 another under other provisions of the Probate Act of 1975, as 23 amended, and the transfer is made by a representative or 24 guardian, such transferee shall promptly mail or deliver to 25 the Secretary of State, the last certificate of title, if 26 available, and a certified copy of the letters of office or 27 guardianship, and an application for certificate of title. 28 Such application shall be made before the estate is closed. 29 The transfer may be to the transferee or to the nominee of 30 the transferee. 31 (d) If the interest of an owner in joint tenancy passes 32 to the other joint tenant with survivorship rights as 33 provided by law, the transferee shall promptly mail or 34 deliver to the Secretary of State, the last certificate of -4- LRB9008942SMdvA 1 title, if available, proof of death of the one joint tenant 2 and survivorship of the surviving joint tenant, and an 3 application for certificate of title. Such application shall 4 be made within 120 days after the death of the joint tenant. 5 The transfer may be to the transferee or to the nominee of 6 the transferee. 7 (e) The Secretary of State shall transfer a decedent's 8 vehicle title to any legatee, representative or heir of the 9 decedent who submits to the Secretary a death certificate and 10 an affidavit by an attorney at law on the letterhead 11 stationery of the attorney at law stating the facts of the 12 transfer. 13 (f) In all cases wherein a lienholder has repossessed a 14 vehicle by other than judicial process and holds it for 15 resale under a security agreement, and the owner of record 16 has executed an assignment of the existing certificate of 17 title, the lienholder may proceed to sell or otherwise 18 dispose of the vehicle as authorized under the Uniform 19 Commercial Code. Upon selling the vehicle to another person, 20 the lienholder shall promptly mail or deliver to the 21 purchaser as transferee the existing certificate of title for 22 the repossessed vehicle, reflecting the release of the 23 lienholder's security interest in the vehicle and the owner's 24 assignment. The application for a certificate of title made 25 by the purchaser shall comply with subsection (a) of Section 26 3-104 and be accompanied by the existing certificate of title 27 for the repossessed vehicle. 28 (f-5) In all cases wherein a lienholder has repossessed 29 a vehicle by other than judicial process and holds it for 30 resale under a security agreement, and the owner of record 31 has not executed an assignment of the existing certificate of 32 title, the lienholder shall comply with the following 33 provisions: 34 (1) Prior to sale, the lienholder shall deliver or -5- LRB9008942SMdvA 1 mail to the owner at the owner's last known address and 2 to any other lienholder of record, a notice of redemption 3 setting forth (i) the name of the owner of record, (ii) a 4 description of the vehicle subject to the lien sufficient 5 to identify it, (iii) the right of the owner to redeem 6 the vehicle, (iv) the lienholder's intent to sell or 7 otherwise dispose of the vehicle after the expiration of 8 21 days from the date of mailing or delivery of the 9 notice, and (v) the name, address, and telephone number 10 of the lienholder from whom the vehicle may be redeemed 11 under Section 9-506 of the Uniform Commercial Code. At 12 the lienholder's option, this notice may be made a part 13 of the notification of sale or other disposition required 14 under subsection (3) of Section 9-504 of the Uniform 15 Commercial Code. 16 (2) With respect to the repossession of a vehicle 17 used primarily for personal, family, or household 18 purposes, the lienholder shall also deliver or mail to 19 the owner at the owner's last known address an affidavit 20 of defense. The affidavit shall accompany the notice 21 required in subdivision (f-5)(1) of this Section. The 22 affidavit shall (i) identify the lienholder, owner, and 23 the vehicle; (ii) provide space for the owner to state 24 the defense claimed by the owner; and (iii) include an 25 acknowledgment by the owner that the owner may be liable 26 to the lienholder for fees, charges, and costs incurred 27 by the lienholder in establishing the insufficiency or 28 invalidity of the owner's defense. To stop the transfer 29 of title, the affidavit must be received by the 30 lienholder no later than 21 days after the date of 31 mailing or delivery of the notice required in subdivision 32 (f-5)(1) of this Section. If the lienholder receives the 33 affidavit from the owner in a timely manner, the 34 lienholder must apply to a court of competent -6- LRB9008942SMdvA 1 jurisdiction to determine if the lienholder is entitled 2 to possession of the vehicle. 3 (3) Upon selling the vehicle to another person, the 4 lienholder shall promptly mail or deliver to the 5 purchaser as transferee (i) the existing certificate of 6 title for the repossessed vehicle, reflecting the release 7 of the lienholder's security interest in the vehicle; and 8 (ii) an affidavit of repossession made by or on behalf of 9 the lienholder which provides the following information: 10 that the vehicle was repossessed, a description of the 11 vehicle sufficient to identify it, whether the vehicle 12 has been damaged in excess of 33 1/3% of its fair market 13 value as required under subdivision (b)(3) of Section 14 3-117.1, that the owner and any other lienholder of 15 record were given the notice required in subdivision 16 (f-5)(1) of this Section, that the owner of record was 17 given the affidavit of defense required in subdivision 18 (f-5)(2) of this Section, that the interest of the owner 19 was lawfully terminated or sold pursuant to the terms of 20 the security agreement, and the purchaser's name and 21 address. 22 (4) The application for a certificate of title made 23 by the purchaser shall comply with subsection (a) of 24 Section 3-104 and be accompanied by the affidavit of 25 repossession furnished by the lienholder and the existing 26 certificate of title for the repossessed vehicle. In the 27 event the lienholder does not hold the certificate of 28 title for the repossessed vehicle, the lienholder shall 29 provide to the purchaser in lieu thereof a copy of the 30 security agreement, which the purchaser shall submit with 31 the purchaser's application for a new certificate of 32 title. The lienholder need not complete any assignment 33 of the existing certificate of title. 34 (5) Neither the lienholder nor the owner shall file -7- LRB9008942SMdvA 1 with the Office of the Secretary of State the notice or 2 affidavit of defense respectively described in 3 subdivision (f-5)(1) and (f-5)(2) of this Section. The 4 Office of the Secretary of State shall not determine the 5 merits of an owner's affidavit of defense, nor consider 6 any allegations or assertions regarding the validity or 7 invalidity of a lienholder's claim to the vehicle or an 8 owner's asserted defenses to the repossession action. 9 (6) If applying for a salvage certificate or a 10 junking certificate, after the original 21 day notice to11 the debtor has been fulfilled,the lienholder shall 12 within 20 days make an application to the Secretary of 13 State for a certificate of title,a salvage certificate 14 or a junking certificate, as set forth in this Code. In 15 all cases, however, the Secretary of State shall not 16 issue a certificate of title to the purchaser or ,a 17 salvage certificate or a junking certificate to such 18 lienholder unless the person from whom such vehicle has 19 been repossessed is shown to be the last registered owner 20 of such motor vehicle and such purchaser or lienholder 21 establishes to the satisfaction of the Secretary of State 22 that he is entitled to such certificate of title, salvage 23 certificate or junking certificate. The Secretary of 24 State may shallprovide by rule for the standards to be 25 followed by a purchaser or lienholder in order to obtain 26 a certificate of title, a salvage certificate, or junking 27 certificate for a repossessed vehicle. 28 (f-7) In all cases wherein a lienholder has repossessed 29 a vehicle by judicial process and holds it for resale under a 30 security agreement, order for replevin, or other court order 31 establishing the lienholder's right to possession of the 32 vehicle, the lienholder may proceed to sell or otherwise 33 dispose of the vehicle as authorized under the Uniform 34 Commercial Code or the court order. Upon selling the vehicle -8- LRB9008942SMdvA 1 to another person, the lienholder shall promptly mail or 2 deliver to the purchaser as transferee (i) the existing 3 certificate of title for the repossessed vehicle reflecting 4 the release of the lienholder's security interest in the 5 vehicle; (ii) a certified copy of the court order; and (iii) 6 a bill of sale identifying the new owner's name and address 7 and the year, make, model, and vehicle identification number 8 of the vehicle. In the event the lienholder does not hold 9 the certificate of title for the repossessed vehicle, the 10 lienholder shall provide to the purchaser in lieu thereof a 11 copy of the security agreement, which the purchaser shall 12 submit with the purchaser's application for a new certificate 13 of title. The lienholder need not complete any assignment of 14 the existing certificate of title. 15 (g) A person holding a certificate of title whose 16 interest in the vehicle has been extinguished or transferred 17 other than by voluntary transfer shall mail or deliver the 18 certificate, within 20 days upon request of the Secretary of 19 State. The delivery of the certificate pursuant to the 20 request of the Secretary of State does not affect the rights 21 of the person surrendering the certificate, and the action of 22 the Secretary of State in issuing a new certificate of title 23 as provided herein is not conclusive upon the rights of an 24 owner or lienholder named in the old certificate. 25 (h) The Secretary of State may decline to process any 26 application for a transfer of an interest in a vehicle 27 hereunder if any fees or taxes due under this Act from the 28 transferor or the transferee have not been paid upon 29 reasonable notice and demand. 30 (i) The Secretary of State shall not be held civilly or 31 criminally liable to any person because any purported 32 transferor may not have had the power or authority to make a 33 transfer of any interest in any vehicle or because a 34 certificate of title issued in error is subsequently used to -9- LRB9008942SMdvA 1 commit a fraudulent act. 2 (Source: P.A. 90-212, eff. 1-1-98.) 3 (625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1) 4 Sec. 3-117.1. When junking certificates or salvage 5 certificates must be obtained. 6 (a) Except as provided in Chapter 4 of this Code, a 7 person who possesses a junk vehicle shall within 15 days 8 cause the certificate of title, salvage certificate, 9 certificate of purchase, or a similarly acceptable out of 10 state document of ownership to be surrendered to the 11 Secretary of State along with an application for a junking 12 certificate, except as provided in Section 3-117.2, whereupon 13 the Secretary of State shall issue to such a person a junking 14 certificate, which shall authorize the holder thereof to 15 possess, transport, or, by an endorsement, transfer ownership 16 in such junked vehicle, and a certificate of title shall not 17 again be issued for such vehicle. 18 A licensee who possesses a junk vehicle and a Certificate 19 of Title, Salvage Certificate, Certificate of Purchase, or a 20 similarly acceptable out-of-state document of ownership for 21 such junk vehicle, may transport the junk vehicle to another 22 licensee prior to applying for or obtaining a junking 23 certificate, by executing a uniform invoice. The licensee 24 transferor shall furnish a copy of the uniform invoice to the 25 licensee transferee at the time of transfer. In any case, 26 the licensee transferor shall apply for a junking certificate 27 in conformance with Section 3-117.1 of this Chapter. The 28 following information shall be contained on a uniform 29 invoice: 30 (1) The business name, address and dealer license 31 number of the person disposing of the vehicle, junk 32 vehicle or vehicle cowl; 33 (2) The name and address of the person acquiring -10- LRB9008942SMdvA 1 the vehicle, junk vehicle or vehicle cowl, and if that 2 person is a dealer, the Illinois or out-of-state dealer 3 license number of that dealer; 4 (3) The date of the disposition of the vehicle, 5 junk vehicle or vehicle cowl; 6 (4) The year, make, model, color and description of 7 each vehicle, junk vehicle or vehicle cowl disposed of by 8 such person; 9 (5) The manufacturer's vehicle identification 10 number, Secretary of State identification number or 11 Illinois Department of State Police number, for each 12 vehicle, junk vehicle or vehicle cowl part disposed of by 13 such person; 14 (6) The printed name and legible signature of the 15 person or agent disposing of the vehicle, junk vehicle or 16 vehicle cowl; and 17 (7) The printed name and legible signature of the 18 person accepting delivery of the vehicle, junk vehicle or 19 vehicle cowl. 20 The Secretary of State may certify a junking manifest in 21 a form prescribed by the Secretary of State that reflects 22 those vehicles for which junking certificates have been 23 applied or issued. A junking manifest may be issued to any 24 person and it shall constitute evidence of ownership for the 25 vehicle listed upon it. A junking manifest may be 26 transferred only to a person licensed under Section 5-301 of 27 this Code as a scrap processor. A junking manifest will 28 allow the transportation of those vehicles to a scrap 29 processor prior to receiving the junk certificate from the 30 Secretary of State. 31 (b) An application for a salvage certificate shall be 32 submitted to the Secretary of State in any of the following 33 situations: 34 (1) When an insurance company makes a payment of -11- LRB9008942SMdvA 1 damages on a total loss claim for a vehicle, the 2 insurance company shall be deemed to be the owner of such 3 vehicle and the vehicle shall be considered to be salvage 4 except that ownership of a vehicle 9 model years of age 5 or older may, by agreement between the registered owner 6 and the insurance company, be retained by the registered 7 owner of such vehicle. The insurance company shall 8 promptly deliver or mail within 20 days the certificate 9 of title along with proper application and fee to the 10 Secretary of State, and a salvage certificate shall be 11 issued in the name of the insurance company. An insurer 12 making payment of damages on a total loss claim for the 13 theft of a vehicle may exchange the salvage certificate 14 for a certificate of title if the vehicle is recovered 15 without damage. In such a situation, the insurer shall 16 fill out and sign a form prescribed by the Secretary of 17 State which contains an affirmation under penalty of 18 perjury that the vehicle was recovered without damage and 19 the Secretary of State may, by rule or regulation, 20 require photographs to be submitted. 21 (2) When a vehicle the ownership of which has been 22 transferred to any person through a certificate of 23 purchase from acquisition of the vehicle at an auction, 24 other dispositions as set forth in Sections 4-208 and 25 4-209 of this Code, a lien arising under Section 18a-501 26 of this Code, or a public sale under the Abandoned Mobile 27 Home Act shall be deemed salvage or junk at the option of 28 the purchaser. The person acquiring such vehicle in such 29 manner shall promptly deliver or mail, within 20 days 30 after the acquisition of the vehicle, the certificate of 31 purchase, the proper application and fee, and, if the 32 vehicle is an abandoned mobile home under the Abandoned 33 Mobile Home Act, a certification from a local law 34 enforcement agency that the vehicle was purchased or -12- LRB9008942SMdvA 1 acquired at a public sale under the Abandoned Mobile Home 2 Act to the Secretary of State and a salvage certificate 3 or junking certificate shall be issued in the name of 4 that person. The salvage certificate or junking 5 certificate issued by the Secretary of State under this 6 Section shall be free of any lien that existed against 7 the vehicle prior to the time the vehicle was acquired by 8 the applicant under this Code. 9 (3) A vehicle which has been repossessed by a 10 lienholder shall be considered to be salvage only when 11 the repossessed vehicle, on the date of repossession by 12 the lienholder, has sustained damage by collision, fire, 13 theft, rust corrosion, or other means so that the cost of 14 repairing such damage, including labor, would be greater 15 than 33 1/3% of its fair market value without such 16 damage. If the lienholder determines that such vehicle 17 is damaged in excess of 33 1/3% of such fair market 18 value, the lienholder shall, before sale, transfer or 19 assignment of the vehicle, make application for a salvage 20 certificate, and shall submit with such application the 21 proper fee and evidence of possession. If the facts 22 required to be shown in subsection (f) of Section 3-114 23 are satisfied, the Secretary of State shall issue a 24 salvage certificate in the name of the lienholder making 25 the application. In any case wherein the vehicle 26 repossessed is not damaged in excess of 33 1/3% of its 27 fair market value, the lienholder, shall comply with the 28 requirements of subsections (f), (f-5), and (f-7) of 29 Section 3-114, except that the affidavit of repossession 30 made by or on behalf of the lienholder after the original31 21 day notice to the debtor has been fulfilled, shall32 within 15 days make an application to the Secretary of33 State for a certificate of title, submitting with such34 application evidence of possession. The application-13- LRB9008942SMdvA 1 shall also contain an affirmation under penalty of 2 perjury that the vehicle on the date of sale such3 application for certificate of titleis not damaged in 4 excess of 33 1/3% of its fair market value. If the facts 5 required to be shown in subsection (f) of Section 3-114 6 are satisfied, the Secretary of State shall issue a 7 certificate of title as set forth in Section 3-116 of 8 this Code. The Secretary of State may by rule or 9 regulation require photographs to be submitted. 10 (4) A vehicle which is a part of a fleet of more 11 than 5 commercial vehicles registered in this State or 12 any other state or registered proportionately among 13 several states shall be considered to be salvage when 14 such vehicle has sustained damage by collision, fire, 15 theft, rust, corrosion or similar means so that the cost 16 of repairing such damage, including labor, would be 17 greater than 33 1/3% of the fair market value of the 18 vehicle without such damage. If the owner of a fleet 19 vehicle desires to sell, transfer, or assign his interest 20 in such vehicle to a person within this State other than 21 an insurance company licensed to do business within this 22 State, and the owner determines that such vehicle, at the 23 time of the proposed sale, transfer or assignment is 24 damaged in excess of 33 1/3% of its fair market value, 25 the owner shall, before such sale, transfer or 26 assignment, make application for a salvage certificate. 27 The application shall contain with it evidence of 28 possession of the vehicle. If the fleet vehicle at the 29 time of its sale, transfer, or assignment is not damaged 30 in excess of 33 1/3% of its fair market value, the owner 31 shall so state in a written affirmation on a form 32 prescribed by the Secretary of State by rule or 33 regulation. The Secretary of State may by rule or 34 regulation require photographs to be submitted. Upon -14- LRB9008942SMdvA 1 sale, transfer or assignment of the fleet vehicle the 2 owner shall mail the affirmation to the Secretary of 3 State. 4 (5) A vehicle that has been submerged in water to 5 the point that rising water has reached over the door 6 sill and has entered the passenger or trunk compartment 7 is a "flood vehicle". A flood vehicle shall be 8 considered to be salvage only if the vehicle has 9 sustained damage so that the cost of repairing the 10 damage, including labor, would be greater than 33 1/3% of 11 the fair market value of the vehicle without that damage. 12 The salvage certificate issued under this Section shall 13 indicate the word "flood", and the word "flood" shall be 14 conspicuously entered on subsequent titles for the 15 vehicle. A person who possesses or acquires a flood 16 vehicle that is not damaged in excess of 33 1/3% of its 17 fair market value shall make application for title in 18 accordance with Section 3-116 of this Code, designating 19 the vehicle as "flood" in a manner prescribed by the 20 Secretary of State. The certificate of title issued 21 shall indicate the word "flood", and the word "flood" 22 shall be conspicuously entered on subsequent titles for 23 the vehicle. 24 (c) Any person who without authority acquires, sells, 25 exchanges, gives away, transfers or destroys or offers to 26 acquire, sell, exchange, give away, transfer or destroy the 27 certificate of title to any vehicle which is a junk or 28 salvage vehicle shall be guilty of a Class 3 felony. 29 (d) Any person who knowingly fails to surrender to the 30 Secretary of State a certificate of title, salvage 31 certificate, certificate of purchase or a similarly 32 acceptable out-of-state document of ownership as required 33 under the provisions of this Section is guilty of a Class A 34 misdemeanor for a first offense and a Class 4 felony for a -15- LRB9008942SMdvA 1 subsequent offense; except that a person licensed under this 2 Code who violates paragraph (5) of subsection (b) of this 3 Section is guilty of a business offense and shall be fined 4 not less than $1,000 nor more than $5,000 for a first offense 5 and is guilty of a Class 4 felony for a second or subsequent 6 violation. 7 (e) Any vehicle which is salvage or junk may not be 8 driven or operated on roads and highways within this State. 9 A violation of this subsection is a Class A misdemeanor. A 10 salvage vehicle displaying valid special plates issued under 11 Section 3-601(b) of this Code, which is being driven to or 12 from an inspection conducted under Section 3-308 of this 13 Code, is exempt from the provisions of this subsection. A 14 salvage vehicle for which a short term permit has been issued 15 under Section 3-307 of this Code is exempt from the 16 provisions of this subsection for the duration of the permit. 17 (Source: P.A. 88-516; 88-685, eff. 1-24-95; 89-669, eff. 18 1-1-97.) 19 (625 ILCS 5/3-104.1 rep.) 20 Section 15. The Illinois Vehicle Code is amended by 21 repealing Section 3-104.1. 22 Section 20. The Illinois Fairness in Lending Act is 23 amended by changing Section 6 as follows: 24 (815 ILCS 120/6) (from Ch. 17, par. 856) 25 Sec. 6. Where a financial institution , other than a26 credit union, as defined in Section 1.1 of the Illinois27 Credit Union Act, as now or hereafter amended,repossesses a 28 motor vehicle that was used as a collateral and which is 29 used primarily for the borrower's personal, family or 30 household purposes, the financial institution shall transfer 31 the certificate of title pursuant to Section 3-114 of the -16- LRB9008942SMdvA 1 Illinois Vehicle Code and the borrower at the time of2 repossession has paid an amount equal to 30% or more of the3 total of payments due, the borrower may, within 15 days,4 redeem the motor vehicle from the financial institution by5 tendering:6 (a) the total of all unpaid amounts, including any7 unpaid delinquency or deferral charges due without8 acceleration, and9 (b) performance necessary to cure any default other than10 nonpayment of the amounts due; and11 (c) any reasonable cost or fees incurred by the12 financial institution in the retaking of the goods.13 Tender of payment and performance pursuant to this Section14 restores to the borrower his rights under the loan as though15 no default had occurred. The borrower has a right to redeem16 the collateral from the financial institution only once under17 this Section. The financial institution may, in the financial18 institution's sole discretion, extend the period during which19 the borrower may redeem the collateral beyond the 15 days20 allowed under this Section, and the extension shall not21 subject the financial institution to liability to the22 borrower under the laws of this State.23 The financial institution must give written notice to the24 borrower, within 3 days of the repossession, of the25 borrower's right to redeem the collateral pursuant to this26 Section. The written notice shall be in substantially the27 following form:28 NOTICE OF RIGHT TO RECOVER VEHICLE29 Your vehicle was repossessed on (specify date) for30 failure to make payments on the loan (or other reason).31 Under Illinois law, because you have paid at least 30% of32 the loan before repossession, you may be able to get the33 vehicle back. You have the right to recover the vehicle if34 you do the following within 15 days of the date of-17- LRB9008942SMdvA 1 repossession:2 1. Make payment of all back payments so3 that you are current on the loan. $...........4 2. Pay any late charge due. $...........5 3. Pay the costs of repossession. $...........6 Total Amount Now Due $...........7 Bring cash, a certified check or money order for the8 total amount now due that is listed above to our office9 located at (specify address) by (specify date) to get your10 vehicle back. 11 (Source: P.A. 90-343, eff. 8-8-97.) 12 Section 25. The Motor Vehicle Retail Installment Sales 13 Act is amended by changing Section 20 as follows: 14 (815 ILCS 375/20) (from Ch. 121 1/2, par. 580) 15 Sec. 20. Unless otherwise limited by this Act,The 16 parties shall have the rights and remedies provided in 17 Article 9 of the Uniform Commercial Code with respect to 18 default and ,disposition ,and recovery redemptionof 19 collateral. If the holder of a retail installment contract 20 repossesses a motor vehicle that was used as collateral, the 21 holder shall transfer the certificate of title pursuant to 22 Section 3-114 of the Illinois Vehicle Code. 23 If the buyer has paid an amount equal to 60% or more of24 the deferred payment price at the time of his default under25 the contract and if the buyer, at the request of the holder26 and without legal proceedings, surrenders the goods to the27 holder in ordinary condition and free from malicious damage,28 the holder must, within a period of 5 days from the date of29 receipt of the goods at his place of business, elect either30 (a) to retain the goods and release the buyer from further31 obligation under the contract, or (b) to return the goods to32 the buyer at the holder's expense and be limited to an action-18- LRB9008942SMdvA 1 to recover the balance of the indebtedness.2 If the buyer has paid an amount equal to 30% or more of3 the deferred payment price at the time of repossession, the4 buyer shall have the right to reinstate the contract and5 recover the collateral from the holder within 15 days from6 the date of repossession by tendering (a) the total of all7 unpaid amounts, including any unpaid delinquency or deferral8 charges due at the time of tender, without acceleration, and9 (b) performance necessary to cure any default other than10 nonpayment of the amounts due; and (c) any reasonable cost or11 fees incurred by the holder in the retaking of the goods.12 Tender of payment and performance pursuant to this Section13 restores to the buyer his rights under the contract as though14 no default had occurred. The buyer has a right to reinstate15 the contract and recover the collateral from the holder only16 once under this Section. The holder may, in the holder's sole17 discretion, extend the period during which the buyer may18 redeem the collateral beyond the 15 days allowed under this19 Section, and the extension shall not subject the holder to20 liability to the buyer under the laws of this State.21 The holder must give written notice to the buyer, within22 3 days of the repossession, of the buyer's right to reinstate23 the contract and recover the collateral pursuant to this24 Section. The written notice shall be in substantially the25 following form:26 NOTICE OF RIGHT TO RECOVER VEHICLE27 Your vehicle was repossessed on (specify date) for28 failure to make payments on the contract (or other reason).29 Under Illinois law, because you have paid at least 30% of30 the deferred payment price before repossession, you may be31 able to get the vehicle back. You have the right to recover32 the vehicle if you do the following within 15 days of the33 date of repossession:-19- LRB9008942SMdvA 1 1. Make payment of all back payments due as2 of the date of this notice. $3 2. Pay any late charges due. $4 3. Pay the costs of repossession. $5 TOTAL DUE as of the date of this6 notice: $7 4. Plus any additional amounts which may8 become due between the date of the9 notice and the date of reinstatement. $10 AMOUNT NOW DUE11 Bring cash, a certified check or a money order for the12 total amount plus any additional amounts which may become due13 between the date of this notice and the date of the14 reinstatement now due that is to our office located at15 (specify address) by (specify date) to get your vehicle back.16 (Source: P.A. 90-343, eff. 8-8-97; 90-437, eff. 1-1-98; 17 revised 12-1-97.) 18 Section 99. Effective date. This Act takes effect 19 January 1, 1999.
[ Top ]