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Public Act 096-0111


 

Public Act 0111 96TH GENERAL ASSEMBLY



 


 
Public Act 096-0111
 
HB3863 Enrolled LRB096 08541 AJO 18662 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Code of Civil Procedure is amended by
changing Sections 15-1701, 15-1703, and 15-1704 and by adding
Sections 15-1202.5 and 15-1508.5 as follows:
 
    (735 ILCS 5/15-1202.5 new)
    Sec. 15-1202.5. Dwelling unit. For the purposes of Sections
15-1508.5, 15-1703, and 15-1704 only, "dwelling unit" means a
room or suite of rooms providing complete, independent living
facilities for at least one person, including permanent
provisions for sanitation, cooking, eating, sleeping, and
other activities routinely associated with daily life.
 
    (735 ILCS 5/15-1508.5 new)
    Sec. 15-1508.5. Notice by holder or purchaser to known
occupants of dwelling units of mortgaged real estate.
    (a) The holder of the certificate of sale or deed issued
pursuant to that certificate or, if no certificate or deed was
issued, the purchaser, shall:
        (1) following the judicial sale under Section 15-1507,
    but no later than 21 days after the confirmation of sale
    under Section 15-1508, make a good faith effort to
    ascertain the identities and addresses of all occupants of
    dwelling units of the mortgaged real estate; and
        (2) following the order confirming sale under Section
    15-1508, but no later than 21 days after the order
    confirming sale, notify all known occupants of dwelling
    units of the mortgaged real estate that the holder or
    purchaser has acquired the mortgaged real estate. The
    notice shall be in writing and shall:
            (i) identify the occupant being served by the name
        known to the holder or purchaser;
            (ii) inform the occupant that the mortgaged real
        estate at which the dwelling unit is located is the
        subject of a foreclosure and that control of the
        mortgaged real estate has changed;
            (iii) provide the name, address, and telephone
        number of an individual or entity whom the occupants
        may contact with concerns about the mortgaged real
        estate or to request repairs of that property;
            (iv) include the following language, or language
        that is substantially similar: "This is NOT a notice to
        vacate the premises. You may wish to contact a lawyer
        or your local legal aid or housing counseling agency to
        discuss any rights that you may have."; and
            (v) include the name of the case, the case number,
        and the court where the order confirming the sale has
        been entered.
    (b) The written notice required by subsection (a) of this
Section shall be served by delivering a copy thereof to the
known occupant, or by leaving the same with some person of the
age of 13 years or upwards who is residing on or in possession
of the premises, or by sending a copy of the notice to the
known occupant by first-class mail, addressed to the occupant
by the name known to the holder or purchaser.
    (c) In the event that the holder or purchaser ascertains
the identity and address of an occupant of a dwelling unit of
the mortgaged real estate more than 21 days after the
confirmation of sale under Section 15-1508, the holder or
purchaser shall provide the notice required by subparagraph (2)
of subsection (a) within 7 days of ascertaining the identity
and address of the occupant.
    (d)(i) A holder or purchaser who fails to comply with
subsections (a), (b), and (c) may not collect any rent due and
owing from a known occupant, or terminate a known occupant's
tenancy for non-payment of such rent, until the holder or
purchaser has served the notice described in paragraph (2) of
subsection (a) of this Section upon the known occupant. After
providing such notice, the holder or purchaser may collect any
and all rent otherwise due and owing the holder or purchaser
from the known occupant and may terminate the known occupant's
tenancy for non-payment of such rent if the holder or purchaser
otherwise has such right to terminate.
    (ii) An occupant who previously paid rent for the current
rental period to the mortgagor, or other entity with the
authority to operate, manage, and conserve the mortgaged real
estate at the time of payment, shall not be held liable for
that rent by the holder or purchaser, and the occupant's
tenancy shall not be terminated for non-payment of rent for
that rental period.
    (e) Within 21 days of the confirmation of sale under
Section 15-1508, the holder or purchaser shall post a written
notice on the primary entrance of each dwelling unit subject to
the foreclosure action. This notice shall:
        (i) inform occupant that the dwelling unit is the
    subject of a foreclosure action and that control of the
    mortgaged real estate has changed;
        (ii) include the following language: "This is NOT a
    notice to vacate the premises."; and
        (iii) provide the name, address, and telephone number
    of the individual or entity whom occupants may contact with
    concerns about the mortgaged real estate or to request
    repairs of the property.
    (f)(i) The provisions of subsection (d) of this Section
shall be the exclusive remedy for the failure of a holder or
purchaser to provide notice to a known occupant under this
Section.
    (ii) This Section shall not abrogate any right that a
holder or purchaser may have to possession of the mortgaged
real estate and to maintain a proceeding against an occupant of
a dwelling unit for possession under Article 9 of this Code or
subsection (h) of Section 15-1701.
    (iii) In the event that the holder or purchaser is a
mortgagee in possession of the mortgaged real estate pursuant
to Section 15-1703 at the time of the confirmation of sale and
has complied with requirements of subsection (a-5) of Section
15-1703, the holder or purchaser is excused from the
requirements of subsections (a) and (e) of this Section.
    (iv) A holder or purchaser is not required to provide the
notice required by this Section to a mortgagor or party against
whom an order of possession has been entered authorizing the
removal of the mortgagor or party pursuant to subsection (g) of
Section 15-1508.
 
    (735 ILCS 5/15-1701)  (from Ch. 110, par. 15-1701)
    Sec. 15-1701. Right to possession.
    (a) General. The provisions of this Article shall govern
the right to possession of the mortgaged real estate during
foreclosure. Possession under this Article includes physical
possession of the mortgaged real estate to the same extent to
which the mortgagor, absent the foreclosure, would have been
entitled to physical possession. For the purposes of Part 17,
real estate is residential real estate only if it is
residential real estate at the time the foreclosure is
commenced.
    (b) Pre-Judgment. Prior to the entry of a judgment of
foreclosure:
        (1) In the case of residential real estate, the
    mortgagor shall be entitled to possession of the real
    estate except if (i) the mortgagee shall object and show
    good cause, (ii) the mortgagee is so authorized by the
    terms of the mortgage or other written instrument, and
    (iii) the court is satisfied that there is a reasonable
    probability that the mortgagee will prevail on a final
    hearing of the cause, the court shall upon request place
    the mortgagee in possession. If the residential real estate
    consists of more than one dwelling unit, then for the
    purpose of this Part residential real estate shall mean
    only that dwelling unit or units occupied by persons
    described in clauses (i), (ii) and (iii) of Section
    15-1219.
        (2) In all other cases, if (i) the mortgagee is so
    authorized by the terms of the mortgage or other written
    instrument, and (ii) the court is satisfied that there is a
    reasonable probability that the mortgagee will prevail on a
    final hearing of the cause, the mortgagee shall upon
    request be placed in possession of the real estate, except
    that if the mortgagor shall object and show good cause, the
    court shall allow the mortgagor to remain in possession.
    (c) Judgment Through 30 Days After Sale Confirmation. After
the entry of a judgment of foreclosure and through the 30th day
after a foreclosure sale is confirmed:
        (1) Subsection (b) of Section 15-1701 shall be
    applicable, regardless of the provisions of the mortgage or
    other instrument, except that after a sale pursuant to the
    judgment the holder of the certificate of sale (or, if
    none, the purchaser at the sale) shall have the mortgagee's
    right to be placed in possession, with all rights and
    duties of a mortgagee in possession under this Article.
        (2) Notwithstanding paragraph (1) of subsection (b)
    and paragraph (1) of subsection (c) of Section 15-1701,
    upon request of the mortgagee, a mortgagor of residential
    real estate shall not be allowed to remain in possession
    between the expiration of the redemption period and through
    the 30th day after sale confirmation unless (i) the
    mortgagor pays to the mortgagee or such holder or
    purchaser, whichever is applicable, monthly the lesser of
    the interest due under the mortgage calculated at the
    mortgage rate of interest applicable as if no default had
    occurred or the fair rental value of the real estate, or
    (ii) the mortgagor otherwise shows good cause. Any amounts
    paid by the mortgagor pursuant to this subsection shall be
    credited against the amounts due from the mortgagor.
    (d) After 30 Days After Sale Confirmation. The holder of
the certificate of sale or deed issued pursuant to that
certificate or, if no certificate or deed was issued, the
purchaser, except to the extent the holder or purchaser may
consent otherwise, shall be entitled to possession of the
mortgaged real estate, as of the date 30 days after the order
confirming the sale is entered, against those parties to the
foreclosure whose interests the court has ordered terminated,
without further notice to any party, further order of the
court, or resort to proceedings under any other statute other
than this Article. This right to possession shall be limited by
the provisions governing entering and enforcing orders of
possession under subsection (g) of Section 15-1508. If the
holder or purchaser determines that there are occupants of the
mortgaged real estate who have not been made parties to the
foreclosure and had their interests terminated therein, the
holder or purchaser may bring a proceeding under subsection (h)
of this Section or under Article 9 of this Code to terminate
the rights of possession of any such occupants. The holder or
purchaser shall not be entitled to proceed against any such
occupant under Article 9 of this Code until after 30 days after
the order confirming the sale is entered.
    (e) Termination of Leases. A lease of all or any part of
the mortgaged real estate shall not be terminated automatically
solely by virtue of the entry into possession by (i) a
mortgagee or receiver prior to the entry of an order confirming
the sale, (ii) the holder of the certificate of sale, (iii) the
holder of the deed issued pursuant to that certificate, or (iv)
if no certificate or deed was issued, the purchaser at the
sale.
    (f) Other Statutes; Instruments. The provisions of this
Article providing for possession of mortgaged real estate shall
supersede any other inconsistent statutory provisions. In
particular, and without limitation, whenever a receiver is
sought to be appointed in any action in which a foreclosure is
also pending, a receiver shall be appointed only in accordance
with this Article. Except as may be authorized by this Article,
no mortgage or other instrument may modify or supersede the
provisions of this Article.
    (g) Certain Leases. Leases of the mortgaged real estate
entered into by a mortgagee in possession or a receiver and
approved by the court in a foreclosure shall be binding on all
parties, including the mortgagor after redemption, the
purchaser at a sale pursuant to a judgment of foreclosure and
any person acquiring an interest in the mortgaged real estate
after entry of a judgment of foreclosure in accordance with
Sections 15-1402 and 15-1403.
    (h) Proceedings Against Certain Occupants.
        (1) The mortgagee-in-possession of the mortgaged real
    estate under Section 15-1703, a receiver appointed under
    Section 15-1704, a holder of the certificate of sale or
    deed, or the purchaser may, at any time during the pendency
    of the foreclosure and up to 90 days after the date of the
    order confirming the sale, file a supplemental petition for
    possession against a person not personally named as a party
    to the foreclosure. The supplemental petition for
    possession shall name each such occupant against whom
    possession is sought and state the facts upon which the
    claim for relief is premised.
        (2) The petitioner shall serve upon each named occupant
    the petition, a notice of hearing on the petition, and, if
    any, a copy of the certificate of sale or deed. The
    proceeding for the termination of such occupant's
    possessory interest, including service of the notice of the
    hearing and the petition, shall in all respects comport
    with the requirements of Article 9 of this Code, except as
    otherwise specified in this Section. The hearing shall be
    no less than 21 days from the date of service of the
    notice.
        (3) The supplemental petition shall be heard as part of
    the foreclosure proceeding and without the payment of
    additional filing fees. An order for possession obtained
    under this Section shall name each occupant whose interest
    has been terminated, shall recite that it is only effective
    as to the occupant so named and those holding under them,
    and shall be enforceable for no more than 90 days after its
    entry, except that the 90-day period may be extended to the
    extent and in the manner provided in Section 9-117 of
    Article 9 and except as provided in item (4) of this
    subsection (h).
        (4) In a case of foreclosure where the occupant tenant
    is current on his or her rent, or where timely written
    notice of to whom and where the rent is to be paid has not
    been provided to the occupant tenant, or where the occupant
    tenant has made good-faith efforts to make rental payments
    in order to keep current, any order of possession must
    allow the occupant tenant to retain possession of the
    property covered in his or her rental agreement (i) for 120
    days following the notice of the hearing on the
    supplemental petition that has been properly served upon
    the occupant tenant, or (ii) through the duration of his or
    her lease, whichever is shorter, provided that if the
    duration of his or her lease is less than 30 days from the
    date of the order, the order shall allow the occupant to
    retain possession for 30 days from the date of the order. A
    mortgagee in possession, receiver, holder of a certificate
    of sale or deed, or purchaser at the judicial sale, who
    asserts that the occupant is not current in rent, shall
    file an affidavit to that effect in the supplemental
    petition proceeding. If the occupant tenant has been given
    timely written notice of to whom and where the rent is to
    be paid, this item (4) shall only apply if the occupant
    tenant continues to pay his or her rent in full during the
    120-day period or has made good-faith efforts to pay the
    rent in full during that period. No
    mortgagee-in-possession, receiver or holder of a
    certificate of sale or deed, or purchaser who fails to file
    a supplemental petition under this subsection during the
    pendency of a mortgage foreclosure shall file a forcible
    entry and detainer action against an occupant a tenant of
    the mortgaged real estate until 90 days after a notice of
    intent to file such action has been properly served upon
    the occupant tenant.
        (5) The court records relating to a supplemental
    petition for possession filed under this subsection (h)
    against an occupant a tenant who is entitled to notice
    under item (4) of this subsection (h), or relating to a
    forcible entry and detainer action brought against an
    occupant a tenant who would have lawful possession of the
    premises but for the foreclosure of a mortgage on the
    property, shall be ordered sealed and shall not be
    disclosed to any person, other than a law enforcement
    officer or any other representative of a governmental
    entity, except upon further order of the court.
(Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08.)
 
    (735 ILCS 5/15-1703)  (from Ch. 110, par. 15-1703)
    Sec. 15-1703. Mortgagee in Possession. (a) Powers and
Duties. A mortgagee placed in possession of the real estate
pursuant to Section 15-1701 or Section 15-1702 shall have:
        (1) such power and authority with respect to the real
    estate and other property subject to the mortgage,
    including the right to receive the rents, issues and
    profits thereof, as may have been conferred upon the
    mortgagee by the terms of the mortgage or other written
    instrument authorizing the taking of possession;
        (2) all other rights and privileges of a mortgagee in
    possession under law not inconsistent herewith; and
        (3) the same powers, duties and liabilities as a
    receiver appointed for the real estate in accordance with
    this Article. If an order placing a mortgagee in possession
    is modified, revoked or set aside, the mortgagee shall not
    be liable for any damages to the extent such damages arise
    solely out of the fact that the mortgagor was removed from
    possession or that the mortgagee was placed in possession.
    (a-5) Notice to occupants.
        (1) Following the order placing the mortgagee in
    possession of the mortgaged real estate, but no later than
    21 days after the entry of such order, the mortgagee in
    possession shall make a good faith effort to ascertain the
    identities and addresses of all occupants of dwelling units
    of the mortgaged real estate.
        (2) Following the order placing the mortgagee in
    possession of the mortgaged real estate, but no later than
    21 days after the entry of such order, the mortgagee in
    possession shall notify all known occupants of dwelling
    units of the mortgaged real estate that the mortgagee has
    taken possession of the mortgaged real estate. The notice
    shall be in writing and shall:
            (i) identify the occupant being served by the name
        known to the mortgagee in possession;
            (ii) inform the occupant that the mortgaged real
        estate at which the dwelling unit is located is the
        subject of a foreclosure action and that control of the
        mortgaged real estate has changed;
            (iii) provide the name, address, and telephone
        number of the individual or entity whom occupants may
        contact with concerns about the mortgaged real estate
        or to request repairs of that property;
            (iv) include the following language, or language
        that is substantially similar: "This is NOT a notice to
        vacate the premises. You may wish to contact a lawyer
        or your local legal aid or housing counseling agency to
        discuss any rights that you may have."; and
            (v) include the name of the case, the case number,
        and the court where the foreclosure action is pending.
        (3) The written notice required by item (2) of this
    subsection (a-5) shall be served by delivering a copy
    thereof to the known occupant, or by leaving the same with
    some person of the age of 13 years or upwards, who is
    residing on or in possession of the premises; or by sending
    a copy of the notice to the known occupant by first-class
    mail, addressed to the occupant by the name known to the
    mortgagee in possession.
        (4) In the event that a mortgagee in possession
    ascertains the identity and address of an occupant of a
    dwelling unit of the mortgaged real estate more than 21
    days after being placed in possession of the mortgaged real
    estate pursuant to Section 15-1703, the mortgagee in
    possession shall provide the notice required by item (2) of
    this subsection (a-5) within 7 days of ascertaining the
    identity and address of the occupant.
        (5)(i) A mortgagee in possession who fails to comply
    with items (1), (2), (3), and (4) of this subsection (a-5)
    may not collect any rent due and owing from a known
    occupant, or terminate a known occupant's tenancy for
    non-payment of such rent, until the mortgagee in possession
    has served the notice described in item (2) of this
    subsection (a-5) upon the known occupant. After providing
    such notice, the mortgagee in possession may collect any
    and all rent otherwise due and owing the mortgagee in
    possession from the known occupant and may terminate the
    known occupant's tenancy for non-payment of such rent if
    the mortgagee in possession otherwise has such right to
    terminate.
        (ii) An occupant who previously paid rent for the
    current rental period to the mortgagor, or other entity
    with the authority to operate, manage, and conserve the
    mortgaged real estate at the time of payment, shall not be
    held liable for that rent by the mortgagee in possession,
    and the occupant's tenancy shall not be terminated for
    non-payment of rent for that rental period.
        (6) Within 21 days of the order placing the mortgagee
    in possession of the mortgaged real estate, the mortgagee
    in possession shall post a written notice on the primary
    entrance of each dwelling unit subject to the foreclosure
    action that informs the occupants that the mortgagee in
    possession is now operating and managing the mortgaged real
    estate. This notice shall:
            (i) inform occupant that the dwelling unit is the
        subject of a foreclosure action and that control of the
        mortgaged real estate has changed;
            (ii) include the following language: "This is NOT a
        notice to vacate the premises."; and
            (iii) provide the name, address, and telephone
        number of the individual or entity whom occupants may
        contact with concerns about the mortgaged real estate
        or to request repairs of the property.
        (7)(i) The provisions of item (5) of this subsection
    (a-5) shall be the exclusive remedy for the failure of a
    mortgagee in possession to provide notice to a known
    occupant under this Section.
        (ii) This Section shall not abrogate any right that a
    mortgagee in possession may have to possession of the
    mortgaged real estate and to maintain a proceeding against
    an occupant of a dwelling unit for possession under Article
    9 of this Code or subsection (h) of Section 15-1701.
    (b) Fees and Expenses. A mortgagee in possession shall not
be entitled to any fees for so acting, but shall be entitled to
reimbursement for reasonable costs, expenses and third party
management fees incurred in connection with such possession.
(Source: P.A. 84-1462.)
 
    (735 ILCS 5/15-1704)  (from Ch. 110, par. 15-1704)
    Sec. 15-1704. Receivers. (a) Receiver. Notwithstanding the
provisions of subsections (b), (c) and (d) of Section 15-1701,
and except as provided in Section 15-1702, upon request of any
party and a showing of good cause, the court shall appoint a
receiver for the mortgaged real estate.
    (b) Powers. A receiver appointed pursuant to this Article
shall have possession of the mortgaged real estate and other
property subject to the mortgage during the foreclosure, shall
have full power and authority to operate, manage and conserve
such property, and shall have all the usual powers of receivers
in like cases. Without limiting the foregoing, a receiver shall
have the power and authority to:
        (1) secure tenants and execute leases for the real
    estate, the duration and terms of which are reasonable and
    customary for the type of use involved, and such leases
    shall have the same priority as if made by the owner of the
    real estate; but, unless approved by the Court, the
    receiver shall not execute oil, gas or other mineral
    leases, or (even if otherwise allowed by law) leases
    extending beyond the time of the receiver's possession;
    provided, however, with respect to residential real estate
    leased by the receiver, nothing in this Section shall
    affect the legal rights of any lessee with respect to the
    safety and habitability of the residential real estate;
        (2) collect the rents, issues and profits from the
    mortgaged real estate;
        (3) insure the mortgaged real estate against loss by
    fire or other casualty;
        (4) employ counsel, custodians, janitors and other
    help; and
        (5) pay taxes which may have been or may be levied
    against the mortgaged real estate.
    (c) Duties. A receiver appointed pursuant to this Article
must manage the mortgaged real estate as would a prudent
person, taking into account the effect of the receiver's
management on the interest of the mortgagor. A receiver may,
without an order of the court, delegate managerial functions to
a person in the business of managing real estate of the kind
involved who is financially responsible, not related to the
mortgagee or receiver and prudently selected. However, the
receiver shall remain responsible to the mortgagor or other
persons for the acts or omissions of such management agent.
When fees are paid to such a management agent, the receiver's
fees may be adjusted to the extent the court deems appropriate.
In managing the mortgaged real estate and other property
subject to the mortgage, a receiver or receiver's delegate, to
the extent the receiver receives sufficient receipts from the
mortgaged real estate, such other property or other sources,
except to the extent ordered otherwise by the court:
        (1) shall maintain the existing casualty and liability
    insurance required in accordance with the mortgage or
    applicable to the real estate and other property subject to
    the mortgage at the time the receiver took possession;
        (2) shall use reasonable efforts to maintain the real
    estate and other property subject to the mortgage in at
    least as good condition as existed at the time the receiver
    took possession, excepting reasonable wear and tear and
    damage by any casualty;
        (2.5) shall accept all rental payments from an occupant
    of the mortgaged property, and any payments from a third
    party or any rental assistance program in support of an
    occupant's housing;
        (3) shall apply receipts to payment of ordinary
    operating expenses, including royalties, rents and other
    expenses of management;
        (4) shall pay any shared or common expense assessments
    due to any association of owners of interests in real
    estate to the extent that such assessments are or may
    become a lien against the mortgaged real estate;
        (5) may pay the amounts due under any mortgage if the
    mortgagee thereof is not a party in the foreclosure;
        (6) may carry such additional casualty and liability
    insurance as is reasonably available and reasonable as to
    amounts and risks covered;
        (7) may make other repairs and improvements necessary
    to comply with building, housing, and other similar codes
    or with existing contractual obligations affecting the
    mortgaged real estate;
        (8) may hold receipts as reserves reasonably required
    for the foregoing purposes; and
        (9) may take such other actions as may be reasonably
    necessary to conserve the mortgaged real estate and other
    property subject to the mortgage, or as otherwise
    authorized by the court.
    (d) Allocation of Receipts. Receipts received from
operation of the real estate and other property subject to the
mortgage by the receiver shall be applied in the following
order of priority.
        (1) to reimbursement of the receiver for all reasonable
    costs and expenses incurred by the receiver or the
    receiver's delegates;
        (2) to payment of insurance premiums authorized in
    paragraph (1) of subsection (c) of Section 15-1704;
        (3) to payment of the receiver's delegates of any
    reasonable management fees for managing real estate of the
    type involved;
        (4) to payment of receiver's fees allowed by the court;
        (5) to payment of expenses authorized in paragraphs
    (2), (3) and (4) of subsection (c) of Section 15-1704;
        (6) to payment of amounts authorized in paragraph (5)
    of subsection (c) of Section 15-1704;
        (7) to payment of expenses authorized in paragraphs (6)
    and (7) of subsection (c) of Section 15-1704; and
        (8) the balance, if any, shall be held or disbursed as
    ordered by the court.
    (e) Non-Liability for Allocations. A receiver shall in no
event be liable to any person for the allocation of, or failure
to allocate, receipts to possible expenditures within the same
priority category.
    (f) Notice to occupants.
        (1) Following an order appointing a receiver pursuant
    to Section 15-1704, but no later than 21 days after the
    entry of such order, the appointed receiver shall make a
    good faith effort to ascertain the identities and addresses
    of all occupants of dwelling units of the mortgaged real
    estate.
        (2) Following an order appointing a receiver pursuant
    to Section 15-1704, but no later than 21 days after the
    entry of such order, the appointed receiver shall notify
    all known occupants of dwelling units of the mortgaged real
    estate that the receiver has been appointed receiver of the
    mortgaged real estate. Such notice shall be in writing and
    shall:
            (i) identify the occupant being served by the name
        known to the receiver;
            (ii) inform the occupant that the mortgaged real
        estate at which the dwelling unit is located is the
        subject of a foreclosure action and that control of the
        mortgaged real estate has changed;
            (iii) provide the name, address, and telephone
        number of the individual or entity whom occupants may
        contact with concerns about the mortgaged real estate
        or to request repairs of that property;
            (iv) include the following language, or language
        that is substantially similar: "This is NOT a notice to
        vacate the premises. You may wish to contact a lawyer
        or your local legal aid or housing counseling agency to
        discuss any rights that you may have."; and
            (v) include the name of the case, the case number,
        and the court where the foreclosure action is pending.
        (3) The written notice required by item (2) of this
    subsection (f) shall be served by delivering a copy thereof
    to the known occupant, or by leaving the same with some
    person of the age of 13 years or upwards, who is residing
    on or in possession of the premises; or by sending a copy
    of the notice to the known occupant by first-class mail,
    addressed to the occupant by the name known to the
    receiver.
        (4) In the event that a receiver ascertains the
    identity and address of an occupant of a dwelling unit of
    the mortgaged real estate more than 21 days after
    appointment pursuant to Section 15-1704, the receiver
    shall provide the notice required by item (2) of this
    subsection (f) within 7 days of ascertaining the identity
    and address of the occupant.
        (5)(i) A receiver who fails to comply with items (1),
    (2), (3), and (4) of this subsection (f) may not collect
    any rent due and owing from a known occupant, or terminate
    a known occupant's tenancy for non-payment of such rent,
    until the receiver has served the notice described in item
    (2) of this subsection (f) upon the known occupant. After
    providing such notice, the receiver may collect any and all
    rent otherwise due and owing the receiver from the known
    occupant and may terminate the known occupant's tenancy for
    non-payment of such rent if the receiver otherwise has such
    right to terminate.
        (ii) An occupant who previously paid rent for the
    current rental period to the mortgagor, or other entity
    with the authority to operate, manage, and conserve the
    mortgaged real estate at the time of payment, shall not be
    held liable for that rent by the receiver, and the
    occupant's tenancy shall not be terminated for non-payment
    of rent for that rental period.
        (6) Within 21 days of appointment, the receiver shall
    post a written notice on the primary entrance of each
    dwelling unit subject to the foreclosure action that
    informs occupants that the receiver has been appointed to
    operate and manage the property. This notice shall:
            (i) inform occupant that the dwelling unit is the
        subject of a foreclosure action and that control of the
        mortgaged real estate has changed;
            (ii) include the following language: "This is NOT a
        notice to vacate the premises."; and
            (iii) provide the name, address, and telephone
        number of the individual or entity whom occupants may
        contact with concerns about the mortgaged real estate
        or to request repairs of the property.
        (7)(i) The provisions of item (5) of this subsection
    (f) shall be the exclusive remedy for the failure of a
    receiver to provide notice to a known occupant under this
    Section.
        (ii) This Section shall not abrogate any right that a
    receiver may have to possession of the mortgaged real
    estate and to maintain a proceeding against an occupant of
    a dwelling unit for possession under Article 9 of this Code
    or subsection (h) of Section 15-1701.
    (g) Increase of rents. Notwithstanding any other provision
of this Article, a receiver shall not charge an occupant of the
mortgaged real estate a rental amount above that which the
occupant had been paying for use and occupancy of the mortgaged
real estate prior to the appointment of a receiver without
leave of court. The court may allow an increase of rent if,
upon motion by the receiver, the court finds by a preponderance
of the evidence, that the increase of rent is necessary to
operate, manage, and conserve the mortgaged real estate
pursuant to this Section. A list of the current rents for each
unit in the mortgaged real estate, and a list of the proposed
rent increase for each of those units, must be attached to a
motion for a rent increase under this subsection (g). All
occupants of the mortgaged real estate who may be affected by
the motion for a rent increase, if not otherwise entitled to
notice, shall be notified in writing of the nature of the
motion, the date and time of the motion, and the court where
the motion will be heard. Such notice shall be by personal
service or first-class mail. In the event that the receiver and
an occupant of a dwelling unit agree to a rent increase for
that dwelling unit, the receiver is excused from the
requirements of this subsection (g) as to that dwelling unit.
Nothing in this subsection (g) shall alter the terms of any
lease agreement.
    (h) (f) Removal. The court may remove a receiver upon a
showing of good cause, in which case a new receiver may be
appointed in accordance with subsection (b) of Section 15-1702
and subsection (a) of Section 15-1704.
(Source: P.A. 84-1462.)
 
    Section 98. Compliance. In a foreclosure action filed on or
before the effective date of this Act, a holder or purchaser,
receiver, or mortgagee in possession required to serve notice
or otherwise comply with Section 15-1508.5, subsection (a-5) of
Section 15-1703, and subsection (f) of 15-1704 shall have an
additional 60 days to comply with the provisions of this Act.
 
    Section 99. Effective date. This Act takes effect 90 days
after becoming law.

Effective Date: 10/29/2009