SB1394 EngrossedLRB097 05496 AJO 45556 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Self-Service Storage Facility Act is amended
5by changing Sections 2 and 4 and by adding Sections 7.5 and
67.10 as follows:
 
7    (770 ILCS 95/2)  (from Ch. 114, par. 802)
8    Sec. 2. Definitions. As used in this Act, unless the
9context clearly requires otherwise:
10    (A) "Self-service storage facility" means any real
11property designed and used for the purpose of renting or
12leasing individual storage space to occupants who are to have
13access to such for the purpose of storing and removing personal
14property. A self-service storage facility is not a warehouse
15for purposes of Article 7 of the Uniform Commercial Code. If an
16owner issues any warehouse receipt, bill of lading, or other
17document of title for the personal property stored, the
18provisions of this Act do not apply.
19    (B) "Owner" means the owner, operator, lessor, or sublessor
20of a self-service storage facility, his agent, or any other
21person authorized by him to manage the facility, or to receive
22rent from an occupant under a rental agreement.
23    (C) "Occupant" means a person, his sublessee, successor, or

 

 

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1assign, entitled to the use of the storage space at a
2self-service storage facility under a rental agreement, to the
3exclusion of others.
4    (D) "Rental agreement" means any agreement or lease,
5written or oral, that establishes or modifies the terms,
6conditions, rules or any other provisions concerning the use
7and occupancy of a self-service storage facility.
8    (E) "Personal property" means movable property not affixed
9to land, and includes, but is not limited to goods,
10merchandise, motor vehicles, watercraft, and household items.
11    (F) "Last known address" means that address provided by the
12occupant in the latest rental agreement, or the address
13provided by the occupant in a subsequent written notice of a
14change of address.
15    (G) "Late fee" means a charge assessed for an occupant's
16failure to pay rent when due. "Late fee" does not include
17interest on a debt, reasonable expenses incurred in the
18collection of unpaid rent, or costs associated with the
19enforcement of any other remedy provided by statute or
20contract.
21(Source: P.A. 83-800.)
 
22    (770 ILCS 95/4)  (from Ch. 114, par. 804)
23    Sec. 4. Enforcement of lien. An owner's lien as provided
24for in Section 3 of this Act for a claim which has become due
25may be satisfied as follows:

 

 

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1    (A) The occupant shall be notified;
2    (B) The notice shall be delivered:
3        (1) in person; or
4        (2) sent by certified mail or by first-class mail with
5    a certificate of mailing to the last known address of the
6    occupant;
7    (C) The notice shall include:
8        (1) An itemized statement of the owner's claim showing
9    the sum due at the time of the notice and the date when the
10    sum became due;
11        (2) The name of the facility, address, telephone
12    number, date, time, location, and manner of the lien sale,
13    and the occupant's name and unit number; A brief and
14    general description of the personal property subject to the
15    lien. The description shall be reasonably adequate to
16    permit the person notified to identify it, except that any
17    container including, but not limited to, a trunk, valise,
18    or box that is locked, fastened, sealed, or tied in a
19    manner which deters immediate access to its contents may be
20    described as such without describing its contents;
21    (3) A notice of denial of access to the personal property,
22if such denial is permitted under the terms of the rental
23agreement, which provides the name, street address, and
24telephone number of the owner, or his designated agent, whom
25the occupant may contact to respond to this notice;
26    (3.5) Except as otherwise provided by a rental agreement

 

 

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1and until a lien sale, the exclusive care, custody, and control
2of all personal property stored in the leased self-service
3storage space remains vested in the occupant. No bailment or
4higher level of liability is created if the owner over-locks
5the occupant's lock, thereby denying the occupant access to the
6storage space. Rent and other charges related to the lien
7continue to accrue during the period of time when access is
8denied because of non-payment;
9    (4) A demand for payment within a specified time not less
10than 14 days after delivery of the notice;
11    (5) A conspicuous statement that unless the claim is paid
12within the time stated in the notice, the personal property
13will be advertised for sale or other disposition, and will be
14sold or otherwise disposed of at a specified time and place.
15    (D) Any notice made pursuant to this Section shall be
16presumed delivered when it is deposited with the United States
17Postal Service, and properly addressed with postage prepaid;
18    (E) After the expiration of the time given in the notice,
19an advertisement of the sale or other disposition shall be
20published once a week for two consecutive weeks in a newspaper
21of general circulation where the self-service storage facility
22is located. The advertisement shall include:
23    (1) The name of the facility, address, telephone number,
24date, time, location, and manner of lien sale and the
25occupant's name and unit number. A brief and general
26description of the personal property reasonably adequate to

 

 

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1permit its identification as provided for in division (C)(2) of
2this Section;
3    (2) (Blank). The address of the self-service storage
4facility and the number, if any, of the space where the
5personal property is located and the name of the occupant;
6    (3) The time, place, and manner of the sale or other
7disposition. The sale or other disposition shall take place not
8sooner than 15 days after the first publication. If there is no
9newspaper of general circulation where the self-service
10storage facility is located, the advertisement shall be posted
11at least 10 days before the date of the sale or other
12disposition in not less than 6 conspicuous places in the
13neighborhood where the self-service storage facility is
14located.
15    (F) Any sale or other disposition of the personal property
16shall conform to the terms of the notification as provided for
17in this Section;
18    (G) Any sale or other disposition of the personal property
19shall be held at the self-service storage facility, or at the
20nearest suitable place to where the personal property is held
21or stored;
22    (G-5) If the property upon which the lien is claimed is a
23motor vehicle or watercraft and rent or other charges related
24to the property remain unpaid or unsatisfied for 60 days, the
25owner may have the property towed from the self-service storage
26facility. If a motor vehicle or watercraft is towed, the owner

 

 

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1shall not be liable for any damage to the motor vehicle or
2watercraft, once the tower takes possession of the property.
3After the motor vehicle or watercraft is towed, the owner may
4pursue other collection options against the delinquent
5occupant for any outstanding debt. Before the sale of a motor
6vehicle, aircraft, mobile home, moped, motorcycle, snowmobile,
7trailer, or watercraft, the owner shall contact the Secretary
8of State and any other governmental agency as reasonably
9necessary to determine the name and address of the title holder
10or lienholder of the item, and the owner shall notify every
11identified title holder or lienholder of the time and place of
12the proposed sale. The owner is required to notify the holder
13of a security interest only if the security interest is filed
14under the name of the person signing the rental agreement or an
15occupant. An owner who fails to make the lien searches required
16by this Section is liable only to valid lienholders injured by
17that failure as provided in Section 3;
18    (H) Before any sale or other disposition of personal
19property pursuant to this Section, the occupant may pay the
20amount necessary to satisfy the lien, and the reasonable
21expenses incurred under this Section, and thereby redeem the
22personal property. Upon receipt of such payment, the owner
23shall return the personal property, and thereafter the owner
24shall have no liability to any person with respect to such
25personal property;
26    (I) A purchaser in good faith of the personal property sold

 

 

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1to satisfy a lien, as provided for in Section 3 of this Act,
2takes the property free of any rights of persons against whom
3the lien was valid, despite noncompliance by the owner with the
4requirements of this Section;
5    (J) In the event of a sale under this Section, the owner
6may satisfy his lien from the proceeds of the sale, but shall
7hold the balance, if any, for delivery on demand to the
8occupant. If the occupant does not claim the balance of the
9proceeds within one year two years of the date of sale, it
10shall become the property of the owner without further recourse
11by the occupant.
12    (K) The lien on any personal property created by this Act
13shall be terminated as to any such personal property which is
14sold or otherwise disposed of pursuant to this Act and any such
15personal property which is removed from the self-service
16storage facility.
17(Source: P.A. 83-800.)
 
18    (770 ILCS 95/7.5 new)
19    Sec. 7.5. Limitation of value. If the rental agreement
20contains a limit on the value of property that may be stored in
21the occupant's space, this limit is deemed to be the maximum
22value of the stored property, provided that this limit
23provision must be printed in bold type or underlined in the
24rental agreement in order to be enforceable.
 

 

 

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1    (770 ILCS 95/7.10 new)
2    Sec. 7.10. Late fees.
3    (a) A reasonable late fee may be imposed and collected by
4an owner for each service period that an occupant does not pay
5rent when due under a rental agreement, provided that the due
6date for the rental payment is not earlier than the day before
7the first day of the service period to which the rental payment
8applies. No late payment fee shall be assessed unless the
9rental fee remains unpaid for at least 5 days after the date
10specified in the rental agreement for payment of the rental
11fee.
12    (b) No late fee may be collected pursuant to this Section
13unless the amount of that fee and the conditions for imposing
14that fee are stated in the rental agreement or in an addendum
15to that agreement.
16    (c) For purposes of this Section, a late fee of $20 or 20%
17of the rental fee for each month an occupant does not pay rent,
18whichever is greater, is deemed reasonable and does not
19constitute a penalty.
20    (d) Any reasonable expense incurred as a result of rent
21collection or lien enforcement by an owner may be charged to
22the occupant in addition to the late fees permitted by this
23Section. If any such expenses are charged, they shall be
24identified on an itemized list that is available to the
25occupant.
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.