State of Illinois
91st General Assembly
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Public Act 91-0554

HB1769 Enrolled                                LRB9104011PTpk

    AN  ACT  to  amend  certain  Acts  in  relation  to  real
property.

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

    Section  5.  The Property Tax Code is amended by changing
Sections 21-385, 22-15, and 22-20 as follows:

    (35 ILCS 200/21-385)
    Sec. 21-385.  Extension of  period  of  redemption.   The
purchaser  or  his  or  her  assignee  of  property  sold for
nonpayment of general taxes or special assessments may extend
the period of redemption at any time before the expiration of
the original period of redemption, or thereafter prior to the
expiration of any extended period of redemption, for a period
which will expire not later than 3 years  from  the  date  of
sale,  by filing with the county clerk of the county in which
the property is located  a  written  notice  to  that  effect
describing  the  property,  stating  the date of the sale and
specifying the extended period of redemption.   If  prior  to
the expiration of the period of redemption or extended period
of  redemption  a  petition for tax deed has been filed under
Section 22-30, upon application of the petitioner, the  court
shall  allow  the  purchaser or his or her assignee to extend
the period of redemption after  expiration  of  the  original
period  or  any  extended period of redemption, provided that
any extension allowed will expire not later than 3 years from
the date of sale.  If the period of redemption  is  extended,
the  purchaser  or  his or her assignee must give the notices
provided for in Section 22-10 at the specified times prior to
the expiration  of  the  extended  period  of  redemption  by
causing  a  sheriff  (or  if  he  or  she  is disqualified, a
coroner) of the county in which the  property,  or  any  part
thereof,  is  located  to  serve  the  notices as provided in
Sections 22-15 and 22-20. The notices may also be  served  as
provided  in  Sections  22-15  and 22-20 by a special process
server appointed by the court under Section 22-15.
(Source: P.A. 86-949; 87-1189; 88-455.)

    (35 ILCS 200/22-15)
    Sec. 22-15.  Service of notice. The purchaser or  his  or
her  assignee shall give the notice required by Section 22-10
by causing it to be published in a newspaper as set forth  in
Section  22-20.  In addition, the notice shall be served by a
sheriff (or if he or she is disqualified, by  a  coroner)  of
the  county  in  which  the property, or any part thereof, is
located upon owners who reside on any part  of  the  property
sold  by   leaving  a  copy  of  the notice with those owners
personally.
    In counties of 3,000,000  or  more  inhabitants  where  a
taxing  district  is  a  petitioner  for tax deed pursuant to
Section 21-90, in lieu of service by the sheriff  or  coroner
the  notice  may  be  served  by  a  special  process  server
appointed  by  the circuit court as provided in this Section.
The taxing district may move prior  to  filing  one  or  more
petitions  for  tax  deed  for  appointment of such a special
process server.  The court, upon  being  satisfied  that  the
person named in the motion is at least 18 years of age and is
capable  of serving notice as required under this Code, shall
enter an order appointing such person as  a  special  process
server  for  a  period  of  one year.  The appointment may be
renewed for successive periods of one year each by motion and
order, and a copy of the original and  any  subsequent  order
shall  be  filed  in  each tax deed case in which a notice is
served by the appointed person.  Delivery of  the  notice  to
and service of the notice by the special process server shall
have the same force and effect as its delivery to and service
by the sheriff or coroner.
    The  same  form  of  notice shall also be served upon all
other owners and parties interested in the property, if  upon
diligent  inquiry  they  can be found in the county, and upon
the occupants of the property in the following manner:
         (a)  as to individuals, by (1) leaving a copy of the
    notice with the person personally or  (2)  by  leaving  a
    copy at his or her usual place of residence with a person
    of  the  family,  of  the  age  of  13 years or more, and
    informing that person of its contents.  The person making
    the service shall cause also send a copy of the notice to
    be sent by registered or certified mail,  return  receipt
    requested,  to  that  party  at his or her usual place of
    residence;
         (b)  as  to   public   and   private   corporations,
    municipal, governmental and quasi-municipal corporations,
    partnerships,  receivers and trustees of corporations, by
    leaving a copy of the notice with the  person  designated
    by the Civil Practice Law.
    If  the  property sold has more than 4 dwellings or other
rental units,  and has a managing agent or party who collects
rents, that person shall be deemed the occupant and shall  be
served with notice instead of the occupants of the individual
units.  If the property has no dwellings or rental units, but
economic  or  recreational activities are carried on therein,
the person directing such  activities  shall  be  deemed  the
occupant.   Holders  of  rights of entry and possibilities of
reverter shall  not  be  deemed  parties  interested  in  the
property.
    When  a  party  interested  in the property is a trustee,
notice served upon the trustee shall be deemed to  have  been
served  upon any beneficiary or note holder thereunder unless
the holder of the note is disclosed of record.
    When a judgment is a lien upon  the  property  sold,  the
holder of the lien shall be served with notice if the name of
the  judgment  debtor  as  shown in the transcript, certified
copy or  memorandum of judgment filed of record is identical,
as to given name and surname, with  the  name  of  the  party
interested as it appears of record.
    If  any  owner or party interested, upon diligent inquiry
and effort, cannot be found or  served  with  notice  in  the
county  as provided in this Section, and the person in actual
occupancy and possession is tenant to, or in possession under
the owners or the parties interested in  the  property,  then
service  of  notice  upon  the  tenant, occupant or person in
possession shall be deemed service upon the owners or parties
interested.
    If any owner or party interested, upon  diligent  inquiry
and  effort  cannot  be  found  or  served with notice in the
county, then the person making the service shall cause send a
copy of the notice to be  sent  by  registered  or  certified
mail,  return  receipt requested, to that party at his or her
residence, if ascertainable.
(Source: P.A. 87-1189; 88-455; incorporates  88-451;  88-670,
eff. 12-2-94.)

    (35 ILCS 200/22-20)
    Sec.  22-20.  Proof  of service of notice; publication of
notice. The sheriff or coroner serving notice  under  Section
22-15  shall  endorse  his  or her return thereon and file it
with the Clerk of the Circuit Court and it shall be a part of
the court record.  A special process server  appointed  under
Section  22-15  shall make his or her return by affidavit and
shall file it with the Clerk of the Circuit Court,  where  it
shall  be  a part of the court record.  If a sheriff, special
process server, or coroner to whom any  notice  is  delivered
for  service,  neglects  or  refuses  to make the return, the
purchaser or his or her assignee may petition  the  court  to
enter  a  rule requiring the sheriff, special process server,
or coroner to make return of the notice on a day to be  fixed
by  the  court,  or  to  show cause on that day why he or she
should not  be  attached  for  contempt  of  the  court.  The
purchaser  or  assignee  shall  cause a written notice of the
rule to be served upon the sheriff, special  process  server,
or  coroner.   If  good  and  sufficient  cause to excuse the
sheriff, special process server, or coroner is not shown, the
court shall adjudge him or her  guilty  of  a  contempt,  and
shall proceed to punish him as in other cases of contempt.
    If  the property is located in a municipality in a county
with less than 3,000,000 inhabitants, the purchaser or his or
her assignee shall also publish a notice as to the  owner  or
party   interested,   in  some  newspaper  published  in  the
municipality.  If the property is not in a municipality in  a
county  with  less  than  3,000,000  inhabitants,  or  if  no
newspaper is published therein, or if the property  is  in  a
county  with  3,000,000 or more inhabitants, the notice shall
be  published  in  some  newspaper  in  the  county.   If  no
newspaper is published in the county, then the  notice  shall
be  published  in the newspaper that is published nearest the
county seat of the county in which the property  is  located.
If  the  owners  and  parties interested in the property upon
diligent inquiry are unknown to the purchaser or his  or  her
assignee,   the   publication  as  to  such  owner  or  party
interested,  may  be  made  to  unknown  owners  or   parties
interested.   Any  notice  by  publication  given  under this
Section shall be given 3 times at any  time  after  filing  a
petition  for  tax  deed, but not less than 3 months nor more
than 5 months prior  to  the  expiration  of  the  period  of
redemption.   The publication shall contain (a) notice of the
filing of the petition for tax deed, (b) the  date  on  which
the  petitioner  intends  to make application for an order on
the petition that a tax deed issue, (c) a description of  the
property,  (d) the date upon which the property was sold, (e)
the taxes  or special assessments for which it was  sold  and
(f)  the  date on which the period of redemption will expire.
The publication shall not  include  more  than  one  property
listed  and  sold  in  one description, except as provided in
Section 21-90, and except that when more than one property is
owned by one person, all of the parcels owned by that  person
may be included in one notice.
(Source: P.A. 87-1189; 88-455; 88-535.)

    Section  10.   The  Illinois Municipal Code is amended by
changing Section 11-31-2 as follows:

    (65 ILCS 5/11-31-2) (from Ch. 24, par. 11-31-2)
    Sec. 11-31-2.  (a) If the  appropriate  official  of  any
municipality  determines,  upon  due  investigation, that any
building or structure therein fails to conform to the minimum
standards of health and safety as set forth in the applicable
ordinances of such municipality, and the owner or  owners  of
such  building or structure fails, after due notice, to cause
such property  so  to  conform,  the  municipality  may  make
application  to the circuit court for an injunction requiring
compliance with such ordinances or for such  other  order  as
the  court  may  deem necessary or appropriate to secure such
compliance.
    If  the  appropriate   official   of   any   municipality
determines,  upon  due  investigation,  that  any building or
structure located within the area affected by a  conservation
plan,  adopted  by  the  municipality  pursuant  to the Urban
Community Conservation Act, fails to conform to the standards
and provisions of such plan, and the owner or owners of  such
building  or structure fails, after due notice, to cause such
property so to conform, the municipality  has  the  power  to
make  application  to  the  circuit  court  for an injunction
requiring compliance with such plan or for such  other  order
as the court may deem necessary or appropriate to secure such
compliance.
    The  hearing  upon  such  suit  shall be expedited by the
court and shall be given precedence over all other actions.
    If, upon application  hereunder,  the  court  orders  the
appointment of a receiver to cause such building or structure
to  conform,  such  receiver  may use the rents and issues of
such property toward maintenance, repair  and  rehabilitation
of the property prior to and despite any assignment of rents;
and  the  court may further authorize the receiver to recover
the cost of such maintenance, repair  and  rehabilitation  by
the  issuance  and  sale  of notes or receiver's certificates
bearing such interest as the court may fix, and such notes or
certificates, after their initial issuance  and  transfer  by
the  receiver,  shall be freely transferable and when sold or
transferred  by  the  receiver  in  return  for  a   valuable
consideration in money, material, labor or services, shall be
a  first  lien  upon the real estate and the rents and issues
thereof, and shall be superior to all  prior  assignments  of
rents  and  all prior existing liens and encumbrances, except
taxes; provided, that within 90 days of such sale or transfer
for value by the receiver of such note  or  certificate,  the
holder thereof shall file notice of lien in the office of the
recorder  in  the county in which the real estate is located,
or in the office of the registrar of titles of such county if
the real estate affected is registered under  the  Registered
Titles (Torrens) Act.  The notice of the lien filed shall set
forth   (1)   a  description  of  the  real  estate  affected
sufficient for  the  identification  thereof,  (2)  the  face
amount  of  the receiver's note or certificate, together with
the interest payable thereon,  and  (3)  the  date  when  the
receiver's  note  or  certificate was sold or transferred for
value by the receiver.  Upon payment to  the  holder  of  the
receiver's  note  or  certificate  of the face amount thereof
together with any interest thereon to such date  of  payment,
and  upon  the  filing of record of a sworn statement of such
payment, the lien of  such  certificate  shall  be  released.
Unless  the  lien is enforced pursuant to subsection (b), the
lien may be enforced by proceedings to foreclose  as  in  the
case  of  mortgages  or  mechanics' liens, and such action to
foreclose such lien may be commenced at any  time  after  the
date of default. For the purposes of this subsection (a), the
date  of  default  shall  be deemed to occur 90 days from the
date of issuance of the receiver's  certificate  if  at  that
time the certificate remains unpaid in whole or in part.
    In  the  event a receiver appointed under this subsection
(a) completes a feasibility study which study finds that  the
property  cannot be economically brought into compliance with
the minimum standards of health and safety as  set  forth  in
the  applicable  ordinances of the municipality, the receiver
may petition the court for reimbursement for the cost of  the
feasibility study from the receivership feasibility study and
fee  fund.  The court shall review the petition and authorize
reimbursement from the fund to  the  receiver  if  the  court
finds  that  the  findings  in  the  feasibility  report  are
reasonable,  that  the  fee  for  the  feasibility  report is
reasonable,  and  that  the  receiver  is  unable  to  obtain
reimbursement other than by foreclosure  of  a  lien  on  the
property.  If the court grants the petition for reimbursement
from  the  fund  and,  upon  receiving certification from the
court of the amount to be paid, the  county  treasurer  shall
order that amount paid from the fund to the receiver.  If the
court  grants  the  petition for reimbursement from the fund,
the court shall also authorize and  direct  the  receiver  to
issue  a certificate of lien against title. The recorded lien
shall be a first lien upon  the  real  estate  and  shall  be
superior  to  all  prior  liens  and encumbrances except real
estate taxes.  The court shall also  order  the  receiver  to
reimburse  the  fund  to  the  extent  that  the  receiver is
reimbursed upon foreclosure of the receiver's lien upon  sale
of the property.
    In  any  proceedings  hereunder in which the court orders
the  appointment  of  a  receiver,  the  court  may   further
authorize  the  receiver to enter into such agreements and to
do such acts as may be  required  to  obtain  first  mortgage
insurance  on  the  receiver's  notes or certificates from an
agency of the Federal Government.
    (b)  In any case where a municipality has obtained a lien
pursuant to subsection (a), the municipality may enforce such
lien pursuant to this subsection (b) in the  same  proceeding
in which the lien is authorized.
    A  municipality  desiring  to  enforce  a lien under this
subsection  (b)  shall   petition   the   court   to   retain
jurisdiction   for   foreclosure   proceedings   under   this
subsection.   Notice  of  the  petition  shall  be served, by
certified or registered mail, on all persons who were  served
notice  under  subsection  (a).  The  court  shall  conduct a
hearing on the petition not less  than  15  days  after  such
notice   is   served.   If  the  court  determines  that  the
requirements of this subsection (b) have been  satisfied,  it
shall  grant  the  petition  and retain jurisdiction over the
matter until the foreclosure proceeding is completed.  If the
court denies the petition, the municipality may  enforce  the
lien in a separate action as provided in subsection (a).
    All  persons designated in Section 15-1501 of the Code of
Civil  Procedure  as  necessary   parties   in   a   mortgage
foreclosure  action  shall  be  joined  as  parties  prior to
issuance of an order of foreclosure.  Persons  designated  in
Section 15-1501 of the Code of Civil Procedure as permissible
parties may also be joined as parties in the action.
    The  provisions  of  Article  XV  of  the  Code  of Civil
Procedure applicable to mortgage foreclosures shall apply  to
the  foreclosure  of  a lien pursuant to this subsection (b),
except to the extent that such  provisions  are  inconsistent
with  this subsection.  However, for purposes of foreclosures
of liens pursuant to this subsection, the  redemption  period
described in subsection (b) of Section 15-1603 of the Code of
Civil  Procedure shall end 60 days after the date of entry of
the order of foreclosure.
(Source: P.A. 88-658, eff. 1-1-95.)

    Section 15.   The  Registered  Titles  (Torrens)  Act  is
amended  by  changing Sections 100 and 102 and adding Section
102.3 as follows:

    (765 ILCS 35/100) (from Ch. 30, par. 137)
    Sec. 100. All sums of money received pursuant to Sections
40, 99, and 108 of this Act shall be paid by the registrar to
the county treasurer of the  county  in  which  the  land  is
situated,  for  the  purpose of maintaining an indemnity fund
under the terms of this Act, and for  the  purposes  provided
for in Sections 102.1, and 102.2, and 102.3.  It shall be the
duty  of  the  treasurer to invest all of the fund, including
both  principal  and  income,  from  time  to  time  if   not
immediately   required   for   payments   of  indemnities  in
accordance with Division 3-11 and other applicable provisions
of the Counties Code.   The  county  treasurer  shall  report
annually  to the county board the condition and income of the
fund and forward a copy of the report to the registrar.
(Source: P.A. 90-778, eff. 8-14-98.)

    (765 ILCS 35/102) (from Ch. 30, par. 139)
    Sec. 102. Except as otherwise provided in Sections 102.1,
and 102.2, and 102.3 of this Act, the indemnity fund shall be
held to satisfy judgments obtained or claims allowed  against
the  county  for  losses or damages as aforesaid. Such claims
for damages shall be presented to the  registrar  and  county
board,  and  such  county  board  is  hereby  authorized  and
empowered  to allow or reject the same and to provide for the
payment of such claims as may be  allowed.    No  claims  for
such  losses or damages shall be allowed and paid by any such
county board unless upon the recommendation of the  registrar
who  shall  be  in  office  at  the  time  the claim shall be
allowed.  The county board shall grant or deny such claims in
whole or in part within 60 days from the date of the  receipt
thereof  by  the county board.  In the event the county board
shall fail to grant or deny such claims in whole or  in  part
within  60  days  from  the  date of the receipt thereof, the
claims are deemed to be denied.  Judicial review may  be  had
in accordance with Administrative Review Law as heretofore or
hereafter amended.
(Source: P.A. 90-778, eff. 8-14-98.)

    (765 ILCS 35/102.3 new)
    Sec.  102.3.   Transfer  to  the receivership feasibility
study and fee fund.  Within 30 days after the effective  date
of  this  amendatory  Act  of  the 91st General Assembly, the
county treasurer shall transfer $250,000 from  the  indemnity
fund  to  the  receivership feasibility study and fee fund, a
special fund created in the county treasury.  Moneys  in  the
fund  shall  be used for reimbursements to receivers for whom
the  county  treasurer  has  received  a   certification   of
reimbursement  due  from  the  circuit  court  under  Section
11-31-2 of the Illinois Municipal Code.

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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