State of Illinois
91st General Assembly
Legislation

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91_SB1628

 
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 1        AN ACT concerning mortgages.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.   Short  Title.  This Act may be cited as the
 5    Mortgage Certificate of Payment Act.

 6        Section 5.  Definitions.  As used in this Act:
 7        "Mortgage" means  a  mortgage  or  mortgage  lien  on  an
 8    interest  in  real  property  in this State given to secure a
 9    loan in the original principal amount of less than $500,000.
10        "Mortgagee" means either: (i) the grantee of a  mortgage;
11    or  (ii)  if a mortgage has been assigned of record, the last
12    person to whom the mortgage has been assigned of record.
13        "Mortgage servicer" means  the  last  person  to  whom  a
14    mortgagor  or  the mortgagor's successor in interest has been
15    instructed by a mortgagee to send payments on a loan  secured
16    by  a  mortgage.  A person transmitting a payoff statement is
17    the mortgage servicer  for  the  mortgage  described  in  the
18    payoff statement.
19        "Mortgagor" means the grantor of a mortgage.
20        "Notice  of  intention  to  file  certificate of payment"
21    means a statement from a title  insurance  company  or  title
22    insurance  agent  to  the  person to whom payment of the loan
23    secured by the mortgage  was  made  in  accordance  with  the
24    payoff  statement of the intention to record a certificate of
25    payment.
26        "Payoff statement" means a statement for  the  amount  of
27    the  (i)  unpaid  balance  of  a  loan secured by a mortgage,
28    including principal, interest,  and  any  other  charges  due
29    under  or secured by the mortgage; and (ii) interest on a per
30    day basis for the unpaid balance.
31        "Record" means to deliver the certificate of payment  for
 
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 1    recording with the county recorder.
 2        "Title  insurance agent" has the same meaning ascribed to
 3    it as in Section 3 of the Title Insurance Act.
 4        "Title insurance company" has the same  meaning  ascribed
 5    to it as in Section 3 of the Title Insurance Act.

 6        Section  10.  Content  of  notice  of  intention  to file
 7    certificate of payment. The notice of  intention  to  file  a
 8    certificate  of  payment shall state that if a release is not
 9    received by the title insurance company  or  title  insurance
10    agent  within  45  days  of the receipt of payoff of the loan
11    secured by the mortgage, a certificate  of  payment  will  be
12    delivered  for  recording  to  the recorder of each county in
13    which the mortgage is recorded. The notice  of  intention  to
14    file  certificate  of  payment  shall  be sent by first class
15    mail,  postage  prepaid,  at  least  15   days   before   the
16    certificate of payment is to be delivered to the recorder.

17        Section  15.  Certificate of payment.  An officer or duly
18    appointed agent of a title insurance company may,  on  behalf
19    of  a mortgagor or a person who has acquired from a mortgagor
20    title to all  or  part  of  the  property  described  in  the
21    mortgage, execute a certificate of payment that complies with
22    the  requirements  of  this Act and record the certificate of
23    payment with  the  recorder  of  each  county  in  which  the
24    mortgage  is  recorded,  provided  that  payment  of the loan
25    secured by the mortgage was made in accordance with a  payoff
26    statement   furnished   by  the  mortgagee  or  the  mortgage
27    servicer, that a satisfaction or release of the mortgage  has
28    not  previously been recorded, and that a notice of intention
29    to file certificate of payment was sent  in  accordance  with
30    Section 10.

31        Section  20.   Contents  of  certificate  of payment.   A
 
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 1    certificate of payment executed under this Act  must  contain
 2    substantially all of the following:
 3        (a)  The  name of the mortgagor, the name of the original
 4    mortgagee, and, if applicable, the mortgage servicer  at  the
 5    date  of  the mortgage, the date of recording, and the volume
 6    and page or  document  number  or  other  official  recording
 7    designation  in  the real property records where the mortgage
 8    is recorded, together with similar information for  the  last
 9    recorded assignment of the mortgage.
10        (b)  A statement that the mortgage was paid in accordance
11    with  the  payoff  statement  received  from the mortgagee or
12    mortgage servicer.
13        (c)  A  statement   that   the   person   executing   the
14    certificate  of  payment  is  an  officer or a duly appointed
15    agent of a title insurance company authorized and licensed to
16    transact the business of insuring titles to interest in  real
17    property in this State pursuant to subsections (2) and (3) of
18    Section 3 of the Title Insurance Act.
19        (d)  A  statement that the certificate of payment is made
20    on behalf of the mortgagor or a  person  who  acquired  title
21    from the mortgagor to all or a part of the property described
22    in the mortgage.
23        (e)  A  statement that the mortgagee or mortgage servicer
24    provided a payoff statement.

25        Section  25.  Execution.     A  certificate  of   payment
26    authorized by Section 15 must be executed and acknowledged as
27    required  by  law,  as  in  the  case  of  a deed, and may be
28    executed by a duly  appointed  agent  of  a  title  insurance
29    company.   The  agent  must  be  a currently registered title
30    insurance agent of the title insurance company.

31        Section 30. Appointment of title insurance agent.
32        (a)  The appointment of a title insurance agent  must  be
 
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 1    executed  and acknowledged as required by law, as in the case
 2    of a deed, and must state all of the following:
 3             (1) the identity of the title insurance  company  as
 4        the principal;
 5             (2) the identity of the person, partnership, limited
 6        partnership, limited liability company, limited liability
 7        partnership,  or  corporation  authorized to act as title
 8        insurance agent to execute  and  record  certificates  of
 9        payment  provided  for in this Act on behalf of the title
10        insurance company;
11             (3) that the title  insurance  agent  has  the  full
12        authority  to  execute and record certificates of payment
13        provided for in this Act on behalf of the title insurance
14        company;
15             (4) the term of appointment of the  title  insurance
16        agent; and
17             (5)  that the title insurance agent has consented to
18        and accepts the terms of the appointment.
19        (b) The delegation to a title insurance agent by a  title
20    insurance  company  shall  not  relieve  the  title insurance
21    company of any liability for actual damages  as  provided  in
22    Section 40.
23        (c)  A   single  appointment  of  title  insurance  agent
24    instrument may be recorded in each county in  the  office  of
25    the recorder. A separate appointment of title insurance agent
26    shall  not  be necessary for each certificate of payment. The
27    appointment of an agent may be re-recorded where necessary to
28    establish authority of the agent,  but  the  authority  shall
29    continue until a revocation of appointment is recorded in the
30    office  of  the  recorder  where  the  appointment  of  title
31    insurance  agent  was recorded or on the date, if any, in the
32    recorded appointment document.

33        Section 35.  Effect  recording  certificate  of  payment.
 
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 1    For  purposes  of  releasing  the  lien  of  the  mortgage, a
 2    certificate  of  payment  containing  the   information   and
 3    statements  provided  for  in  Section  20  and  executed  as
 4    provided  in  Section 25 is prima facie evidence of the facts
 5    contained therein,  is  entitled  to  be  recorded  with  the
 6    recorder,  and  operates  as  a  release  of  the lien of the
 7    mortgage described in the certificate of payment.  The  title
 8    insurance  company  or  title  insurance  agent recording the
 9    certificate of payment may use the  recording  fee  collected
10    for  the  recording  of  a  release  or  satisfaction  of the
11    mortgage to  effect  the  recording  of  the  certificate  of
12    payment.  The  recorder  shall  rely  upon the certificate of
13    payment to release the mortgage.

14        Section  40.  Wrongful  or   erroneous   certificate   of
15    payment.     Recording of a wrongful or erroneous certificate
16    of  payment  by  a  title  insurance  company  or  its  title
17    insurance agent  shall  not  relieve  the  mortgagor  or  the
18    mortgagor's   successors   or  assignees  from  any  personal
19    liability on the loan or other  obligations  secured  by  the
20    mortgage.  In addition to any other remedy provided by law, a
21    title insurance company executing or recording a  certificate
22    of  payment under this Act that has actual knowledge that the
23    information and statements contained  therein  are  false  is
24    liable  to  the mortgagee for actual damages sustained due to
25    the recording of the certificate of payment.   The prevailing
26    party in any action or proceeding seeking actual damages  due
27    to  the  recording  of  a  certificate  of  payment  shall be
28    entitled to the recovery of  reasonable  attorneys  fees  and
29    costs incurred in that action or proceeding.

30             Section  45.  Recording.   If a mortgage is recorded
31    in more than one county  and  a  certificate  of  payment  is
32    recorded  in one of them, a certified copy of the certificate
 
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 1    of payment may be recorded in another county  with  the  same
 2    effect  as  the  original.   In all cases, the certificate of
 3    payment shall be entered and indexed where  satisfactions  or
 4    releases of mortgage are entered and indexed.

 5        Section 50. Form of certificate of payment. A certificate
 6    of  payment in substantially the following form complies with
 7    this Act.

 8                       CERTIFICATE OF PAYMENT
 9    Date:....Title Order No.:.....
10    1. Name of mortgagor(s):.....
11    2. Name of original mortgagee:.....
12    3. Name of mortgage servicer (if any):.....
13    4. Name of last assignee of mortgage or record (if any):.....
14    5.  Mortgage   recording:   Vol.:.....Page:.....or   Document
15    No.:.....
16    6. Last assignment recording (if any):
17    Vol.:.....Page:.....or Document No.:.....
18    7.  The above referenced mortgage has been paid in accordance
19    with the payment statement received from.....
20    8. The person executing this certificate  of  payment  is  an
21    officer  or duly appointed agent of a title insurance company
22    authorized and licensed to transact the business of  insuring
23    titles  to  interests in real property in this State pursuant
24    to subsections  (2)  and  (3)  of  Section  3  of  the  Title
25    Insurance Act.
26    9.  This  certificate  of  payment  is  made on behalf of the
27    mortgagor or a person who acquired title from  the  mortgagor
28    to all or part of the property described in the mortgage.
29    10.  The  mortgagee  or  mortgage  servicer provided a payoff
30    statement.
31    11. The property described in the mortgage is as follows:
32    Permanent Index Number:.....
33    Common Address:.....
 
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 1    (Name of title insurance company)
 2    By:.....
 3    (Name of officer and title or  name  of  agent  and  name  of
 4    officer / representative thereof)
 5    Address:.....
 6    Telephone No.:.....
 7    State of Illinois)
 8                     )
 9    County of        )
10    This  instrument was acknowledged before me on .....(date) by
11    .....(name of  person)  as  .....(officer  for  /  agent  of)
12    .....(title insurance company).
13    .....
14    Notary Public
15    My commission expires on.....

16        Section  55. Form of appointment of title insurance agent
17    for issuance of certificates of payment.  A  title  insurance
18    company  shall  use the following form for the appointment of
19    its title insurance  agents  for  the  purpose  of  executing
20    certificates of payment pursuant to this Act.
21        APPOINTMENT OF TITLE INSURANCE AGENT FOR ISSUANCE OF
22                       CERTIFICATES OF PAYMENT
23    ..... (name of title insurance company) appoints .....
24    (name  of  title insurance agent) to act as its agent for the
25    purpose   of   executing   and   delivering   for   recording
26    certificates  of  payment  as  provided   by   the   Mortgage
27    Certificate  Of  Payment Act. This appointment shall commence
28    on ..... (date) and (select one) continue  until  revoked  as
29    provided by that Act / terminate on ..... (date).
30    Dated this ..... (date).
31    By:
32    ..... (title insurance company)
33    ..... (signature)
 
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 1    ..... (typed / printed name & title)
 2    ..... (address)
 3    ..... (telephone number)
 4    Accepted this ..... (date)
 5    By:
 6    ..... (title insurance company)
 7    ..... (signature)
 8    ..... (typed / printed name & title)
 9    ..... (address)
10    ..... (telephone number)
11    State of Illinois)
12                     )
13    County of        )
14    This instrument was acknowledged before me on .....(date)
15    by .....(name of person) as .....(officer for / agent of)
16    .....(title insurance company).
17    .....
18    Notary Public
19    My commission expires on.....

20        Section  60.  Form  of revocation of appointment of title
21    insurance agent for issuance of certificates  of  payment.  A
22    title  insurance company shall use the following form for the
23    purpose of revoking the appointment of  its  title  insurance
24    agent's  authorization  for executing certificates of payment
25    pursuant to this Act.
26        REVOCATION OF APPOINTMENT OF TITLE INSURANCE AGENT FOR
27                   ISSUANCE OF CERTIFICATES OF PAYMENT
28    .... (name of title insurance company) revokes the
29    appointment of ..... (name of title insurance agent) to act
30    as its agent for the purpose of executing and delivering
31    for recording certificates of payment as provided by the
32    Mortgage Certificate of Payment Act.  This Revocation shall
33    be effective upon the recording in each county, or on .....
 
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 1    (date), if subsequent to recording.
 2    A copy of this Revocation has been delivered to the named
 3    title insurance agent by certified U. S. mail, return
 4    receipt requested, at the following address:
 5    .....(name of title insurance agent)
 6    .....(address)
 7    Dated this ..... (date).
 8    By:
 9    ..... (title insurance company)
10    ..... (signature)
11    ..... (typed / printed name & title)
12    ..... (address)
13    ..... (telephone number)
14    State of Illinois)
15                     )
16    County of        )
17    This instrument was acknowledged before me on .....(date)
18    by .....(name of person) as .....(officer for / agent of)
19    .....(title insurance company).
20    .....
21    Notary Public
22    My commission expires on.....

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