98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2927

 

Introduced , by Rep. Brandon W. Phelps

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act. Provides that manufactured homes are deemed to be real property. Sets forth certain conditions that must be met to convey or voluntarily encumber a manufactured home as real property. Contains provisions concerning affidavits of affixation and affidavits of severance. Contains provisions concerning security interests and liens. Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the tax imposed on new mobile homes or new manufactured homes located outside of mobile home parks shall be calculated against 40% of the selling price of the home and against 100% of the selling price of any other building materials. Amends the Property Tax Code and the Mobile Home Local Services Tax Act. Makes changes concerning the taxation of mobile homes and manufactured homes located outside of mobile home parks. Amends various Acts to define and include "manufactured homes" and to make changes to provisions concerning registration of manufactured homes and security interests in or liens on manufactured homes. Contains other provisions. Effective immediately.


LRB098 07544 HLH 37615 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2927LRB098 07544 HLH 37615 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 5. CONVEYANCE AND ENCUMBRANCE OF MANUFACTURED HOMES AS
5
REAL PROPERTY AND SEVERANCE ACT

 
6    Section 5-1. Short title. This Act may be cited as the
7Conveyance and Encumbrance of Manufactured Homes as Real
8Property and Severance Act. All references in this Article to
9"this Act" mean this Article.
 
10    Section 5-2. Findings and purpose.
11    (a) The General Assembly finds that there is a need to
12clarify the legal status of manufactured homes affixed or to be
13affixed to real property in the State.
14    (b) The purpose of this Act is to establish a clear
15statutory procedure for converting to real property
16manufactured homes located outside of mobile home parks that
17are affixed to real property and for the severance of
18manufactured homes from real property.
 
19    Section 5-5. Manufactured home; permanently affixed to
20real property. For the purposes of this Act, "manufactured
21home" means a manufactured home as defined in subdivision (53)

 

 

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1of Section 9-102 of the Uniform Commercial Code.
2Notwithstanding the foregoing, for the purposes of subsection
3(b)(2) of Section 1322 of the federal Bankruptcy Code (11
4U.S.C. 1322(b)(2)), a manufactured home shall be deemed to be
5real property. For the purposes of this Act, a manufactured
6home is "permanently affixed" if it is anchored to real
7property by attachment to a permanent foundation, constructed
8in accordance with applicable state and local building codes
9and manufacturer's specifications as provided in 24 C.F.R. Part
103285, and connected to residential utilities (such as water,
11gas, electricity, or sewer or septic service).
 
12    Section 5-10. Act not mandatory; record notice. The owner
13of a manufactured home that is personal property or a fixture
14may, but need not, cause that manufactured home to be deemed to
15be real property by satisfying the requirements of Section 5-30
16of this Act and the requirements of Section 3-116.1 or 3-116.2
17of the Illinois Vehicle Code, as applicable.
18    To convey or voluntarily encumber a manufactured home as
19real property, the following conditions must be met:
20        (1) the manufactured home must be permanently affixed
21    to real property;
22        (2) the ownership interests in the manufactured home
23    and the real property to which the manufactured home is
24    permanently affixed must be identical, or, if the
25    manufactured home is not located in a mobile home park as

 

 

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1    defined in Section 2.5 of the Mobile Home Park Act, and if
2    the owner of the manufactured home, if not the owner of the
3    real property, is in possession of the real property
4    pursuant to the terms of a lease in recordable form that
5    has a term that continues for at least 20 years after the
6    date of execution, then the consent of the lessor of the
7    real property must be given;
8        (3) the person (all, if more than one) having an
9    ownership interest in such manufactured home shall execute
10    and record with the recording officer of the county in
11    which the real property is located an affidavit of
12    affixation as provided in Section 5-15 of this Act and
13    satisfy the other applicable requirements of this Act; and
14        (4) upon receipt of a certified copy of the affidavit
15    of affixation pursuant to Section 5-25 of this Act, any
16    person designated therein for filing with the Secretary of
17    State shall file the certified copy of affidavit of
18    affixation with the Secretary of State; except that
19            (A) in a case described in subsection (a)(4)(A) of
20        Section 5-15 of this Act, a certified copy of the
21        affidavit of affixation and the original
22        Manufacturer's Statement of Origin, each as recorded
23        in the county in which the real property is located,
24        must be filed with the Secretary of State pursuant to
25        Section 3-116.1 of the Illinois Vehicle Code; and
26            (B) in a case described in subsection (a)(4)(B) of

 

 

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1        Section 5-15 of this Act, a certified copy of the
2        affidavit of affixation as recorded in the county in
3        which the real property is located, and the original
4        certificate of title, including, if applicable, a
5        certificate of title issued in accordance with
6        subsection (b) of Section 3-109 of the Illinois Vehicle
7        Code, must be filed with the Secretary of State
8        pursuant to Section 3-116.2 of the Illinois Vehicle
9        Code.
 
10    Section 5-15. Affidavit of affixation.
11    (a) An affidavit of affixation shall contain or be
12accompanied by:
13        (1) the name of the manufacturer, the make, the model
14    name, the model year, the dimensions, and the vehicle
15    identification number or numbers of the manufactured home,
16    and whether the manufactured home is new or used;
17        (2)(A) a statement that the party executing the
18    affidavit is the owner of the real property described
19    therein or (B) if the party executing the affidavit is not
20    the owner of the real property, (1) a statement that the
21    manufactured home is not located in a mobile home park as
22    defined in Section 2.5 of the Mobile Home Park Act and that
23    the party executing the affidavit is in possession of the
24    real property pursuant to the terms of a lease in
25    recordable form that has a term that continues for at least

 

 

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1    20 years after the date of execution of the affidavit and
2    (2) the consent of the lessor of the real property,
3    endorsed upon or attached to the affidavit and acknowledged
4    or proved in the manner as to entitle a conveyance to be
5    recorded;
6        (3) the street address and the legal description of the
7    real property to which the manufactured home is or shall be
8    permanently affixed; and
9        (4) as applicable:
10            (A) if the manufactured home is not covered by a
11        certificate of title, including, if applicable, a
12        certificate of title issued in accordance with
13        subsection (b) of Section 3-109 of the Illinois Vehicle
14        Code, a statement by the owner to that effect, and
15                (i) a statement by the owner of the
16            manufactured home that the manufactured home is
17            covered by a Manufacturer's Statement of Origin,
18            the date the Manufacturer's Statement of Origin
19            was issued, and the vehicle identification number
20            or numbers of the manufactured home; and
21                (ii) a statement that annexed to the affidavit
22            of affixation is the original Manufacturer's
23            Statement of Origin for the manufactured home,
24            duly endorsed to the owner of the manufactured
25            home, and that the owner of the manufactured home
26            shall surrender the Manufacturer's Statement of

 

 

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1            Origin; or
2            (B) if the manufactured home is covered by a
3        certificate of title, including, if applicable, a
4        certificate of title issued in accordance with
5        subsection (b) of Section 3-109 of the Illinois Vehicle
6        Code, a statement by the owner of the manufactured home
7        that the manufactured home is covered by a certificate
8        of title, the date the title was issued, the title
9        number, and that the owner of the manufactured home
10        shall surrender the title;
11        (5) a statement whether or not the manufactured home is
12    subject to one or more security interests or liens, and
13            (A) if the manufactured home is subject to one or
14        more security interests or liens, the name and address
15        of each party holding a security interest in or lien on
16        the manufactured home, including but not limited to,
17        each holder shown on any certificate of title issued by
18        the Secretary of State, if any, the original principal
19        amount secured by each security interest or lien; and a
20        statement that the security interest or lien shall be
21        released; or
22            (B) a statement that each security interest in or
23        lien on the manufactured home, if any, has been
24        released, together with due proof of each such release;
25        (6) a statement that the manufactured home is or shall
26    be permanently affixed to the real property; and

 

 

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1        (7) the name and address of a person designated for
2    filing the certified copy of the affidavit of affixation
3    with the Secretary of State, to whom the recording officer
4    shall return the certified copy of the affidavit of
5    affixation after it has been duly recorded in the real
6    property records, as provided in Section 5 of this Act.
7    (b) An affidavit of affixation shall be in the form set
8forth in this Section, duly acknowledged or proved in like
9manner as to entitle a conveyance to be recorded, and when so
10acknowledged or proved and upon payment of the lawful fees
11therefor, the recording officer shall immediately cause the
12affidavit of affixation and any attachments thereto to be duly
13recorded and indexed in the record of deeds.
14    (c) An affidavit of affixation shall be in the form set
15forth below:
 
16
MANUFACTURED HOME
17
AFFIDAVIT OF AFFIXATION

 
18STATE OF ........................)
19                                 )SS.
20COUNTY OF .......................)
 
21BEFORE ME, the undersigned Notary Public, on this day
22personally appeared ......................... (type the
23name(s) of each person signing this Affidavit) known to me to

 

 

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1be the person(s) whose name(s) is/are subscribed below (each a
2"Homeowner"), and who, being by me first duly sworn, did each
3on his or her oath state as follows:
41. Homeowner owns the manufactured home ("Home") described as
5    follows:
6.....................................................
7..............................
8(New/Used;  Year;  Manufacturer's Name;  Model Name and Model 
9No.;  Manufacturer's VIN  No(s).;  Length/Width)
 
102. The Home was built in compliance with the federal
11    Manufactured Home Construction and Safety Standards (42
12    U.S.C.A. Ch. 70).
133. If Homeowner is the first retail buyer of the Home,
14    Homeowner is in receipt of (i) the manufacturer's warranty
15    for the Home, (ii) the Consumer Manual for the Home, (iii)
16    the Insulation Disclosure for the Home, (iv) the
17    formaldehyde health notice, and (v) the Dispute Resolution
18    Disclosure required by 24 C.F.R. 3288.5.
194. The street address of the real property to which the Home is
20    or shall be permanently affixed ("Property Address") is:
 
21.............................................................
22(Street or Route; City; County; State; Zip Code)
 
235. The legal description of the real property to which the Home

 

 

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1    is or shall be permanently affixed ("Land") is:
2..............
3..............................
4..............................
5..............................
 
66. Homeowner is the owner of the Land or, if not the owner of
7    the Land, the Home is not located in a mobile home park, as
8    defined in Section 2.5 of the Mobile Home Park Act, and
9    Homeowner is in possession of the Land pursuant to a lease
10    in recordable form that has a term that continues for at
11    least 20 years after the date of the execution of this
12    Affidavit, and the consent of the lessor is attached to
13    this Affidavit.
147. The Home is or shall be assessed and taxed as an improvement
15    to the Land.
168. As of the date of the execution of this Affidavit, or, if
17    the Home is not yet located at the Property Address, upon
18    the delivery of the Home to the Property Address:
19    (a) All permits required by governmental authorities have
20been obtained;
21    (b) The Home [ ] is [ ] shall be permanently affixed as
22defined in Section 5-5 of the Conveyance and Encumbrance of
23Manufactured Homes as Real Property and Severance Act;
24    (c) The wheels, axles, towbar, or hitch were removed when
25the Home was placed on the Property Address; and

 

 

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1    (d) The Home has the characteristics of site-built housing
2and is part of the Land.
39. The Home [ ] was [ ] was not permanently affixed before
4    January 1, 2011.
510. If Homeowner is the owner of the Land, any conveyance or
6    financing of the Home and the Land shall be a single
7    transaction under applicable State law.
811. The Home is subject to the following security interests or
9    liens:
 
10Name of Lienholder: ................
11Address: ........
12Original Principal Amount Secured: ..........................
 
13Name of Lienholder: ................
14Address: ........
15Original Principal Amount Secured: ..........................
 
1612. Other than those disclosed in this Affidavit, Homeowner is
17    not aware of (i) any other security interest, claim, lien,
18    or encumbrance affecting the Home or (ii) any other facts
19    or information that could reasonably affect the validity of
20    the title of the Home or the existence or non-existence of
21    security interests in it.
2213. A release of lien from each of the lienholders identified
23    in paragraph 11 of this Affidavit [] has been [] shall be

 

 

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1    delivered to the Secretary of State.
214. Homeowner shall initial only one of the following, as it
3    applies to the Home:
4    [] The Home is not covered by a certificate of title. The  
5Home is covered by a Manufacturer's Statement of Origin, 
6issued on the ...... of .........., ....., manufacturer's 
7vehicle identification number ........................, which 
8Homeowner shall surrender. The original Manufacturer's 
9Statement of Origin, duly endorsed to Homeowner, is attached 
10to this Affidavit. 
11    [] The Home is covered by a certificate of title issued 
12on the ....... day of .........., ......, title number 
13........................, which  Homeowner shall surrender.
1415. Homeowner designates the following person to file a
15    certified copy of this Affidavit with the Secretary of
16    State, and the person to whom the Recorder shall return a
17    certified copy of this Affidavit after it has been duly
18    recorded in the real property records:
19    Name: ..............................................
20    Address: ................................................
 
2116. This Affidavit is executed by Homeowner pursuant to Section
22    5-15 of the Conveyance and Encumbrance of Manufactured
23    Homes as Real Property and Severance Act.
24
25IN WITNESS WHEREOF, Homeowner(s) has/have executed this 

 

 

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1Affidavit in my presence and in the presence of the 
2undersigned witnesses on this ...... day of ......, ......
 
3...........................(SEAL) ..........................
4Homeowner #1                      Witness
5...........................
6Printed Name
 
7...........................(SEAL) ..........................
8Homeowner #2                      Witness
9...........................
10Printed Name
 
11...........................(SEAL) ..........................
12Homeowner #3                      Witness
13...........................
14Printed Name
 
15...........................(SEAL) ..........................
16Homeowner #4                      Witness
17...........................
18Printed Name
 
19STATE OF .........................)
20                                  )  SS.

 

 

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1COUNTY OF ........................)
 
 
2    The foregoing instrument was acknowledged before me this
3(date) by (name(s) of person(s) who acknowledged).
4                  .......................... Notary Public
5                          Signature
 
6                 My commission expires: ...................
7                 Official Seal:
 
8    ATTENTION RECORDER: This instrument covers goods that are
9or are to become fixtures on the Property described herein and
10is to be filed for record in the records where conveyances of
11real estate are recorded.
 
12    Section 5-20. Disposition of liens. Neither the act of
13permanently affixing a manufactured home to real property nor
14the recording of the affidavit of affixation shall impair the
15rights of any holder of a security interest in or lien on a
16manufactured home perfected as provided in Section 3-202 of the
17Illinois Vehicle Code, unless and until the due filing with and
18acceptance by the Secretary of State of an application to
19surrender the title as provided in Section 3-116.2 of the
20Illinois Vehicle Code and release the security interest or lien
21as provided in Section 3-205 of the Illinois Vehicle Code. Upon

 

 

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1the filing of such a release, the security interest or lien
2perfected under Section 3-202 of the Illinois Vehicle Code is
3terminated. The recording of an affidavit of affixation does
4not change the character of any security interest or lien noted
5on a certificate of title, and no recording tax shall be
6imposed at the time an affidavit of affixation is recorded upon
7any security interest in or lien on a manufactured home
8perfected under Section 3-202 of the Illinois Vehicle Code.
 
9    Section 5-25. Notice to Secretary of State. Upon payment of
10the fees provided by law and recordation of the affidavit of
11affixation, the recording officer shall endorse the affidavit
12as "recorded in land records", setting forth thereon the
13indexing information for the affidavit of affixation, and the
14recording officer shall forthwith forward a certified copy of
15the affidavit of affixation and all attachments thereto to the
16person designated therein for filing with the Secretary of
17State. Upon receipt of a certified copy of the affidavit of
18affixation by the person designated therein for filing with the
19Secretary of State, such person shall forthwith deliver for
20filing to the Secretary a certified copy of the affidavit of
21affixation and other documents as provided in item (4) of
22Section 5-10 of this Act.
 
23    Section 5-30. Effect of recorded affidavit of affixation. A
24manufactured home shall be deemed to be real property when all

 

 

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1of the following events have occurred:
2    (1) the manufactured home is permanently affixed to land as
3provided in Section 5-5 of this Act;
4    (2) an affidavit of affixation conforming to the
5requirements of Section 5-15 of this Act has been recorded;
6    (3) a certified copy of the affidavit of affixation has
7been delivered for filing to the Secretary of State as provided
8in Section 5 of this Act; and
9    (4) the requirements of Section 3-116.1 or 3-116.2 of the
10Illinois Vehicle Code, as applicable, have been satisfied.
 
11    Section 5-35. Conveyance and encumbrance as real property.
12Upon the satisfaction of the requirements of Section 5-30 of
13this Act and the requirements of Section 3-116.1 or 3-116.2 of
14the Illinois Vehicle Code, as applicable, such manufactured
15home shall be deemed to be real property; any mortgage, deed of
16trust, lien, or security interest that can attach to land,
17buildings erected thereon, or fixtures affixed thereto shall
18attach as of the date of its recording in the same manner as if
19the manufactured home were built from ordinary building
20materials on site; title to such manufactured home shall be
21transferred by deed or other form of conveyance that is
22effective to transfer an interest in real property, together
23with the land to which such structure has been affixed; and the
24manufactured home shall be deemed to be real property and shall
25be governed by the laws applicable to real property.
 

 

 

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1    Section 5-40. Manufactured home that remains personal
2property or a fixture. Except as provided in Sections 5-15,
35-25, 5-30, and 5-35 of this Act, an affidavit of affixation is
4not necessary or effective to convey or encumber a manufactured
5home or to change the character of the manufactured home to
6real property. Every conveyance of land upon which is located a
7manufactured home for which no affidavit of affixation has been
8recorded or for which an affidavit of severance has been
9recorded shall contain a recital that such conveyance does not
10affect the title to said manufactured home and that the
11transfer or encumbrance thereof can only be made pursuant to
12the provisions of the Illinois Vehicle Code. Any agreement by
13any party to the transaction whereby the requirements of this
14subsection are waived shall be void as contrary to public
15policy.
 
16    Section 5-45. Applicability. Nothing in this Act shall
17impair any rights existing under law prior to the effective
18date of this Act of anyone claiming an interest in the
19manufactured home.
 
20    Section 5-50. Affidavit of severance.
21    (a) If and when a manufactured home for which an affidavit
22of affixation has been recorded is detached or severed from the
23real property to which it is affixed, the person (all, if more

 

 

HB2927- 17 -LRB098 07544 HLH 37615 b

1than one) having an interest in the real property shall record
2an affidavit of severance in the land records of the county
3where the affidavit of affixation with respect to the
4manufactured home is recorded. The affidavit of severance shall
5contain or be accompanied by:
6        (i) the name, residence, and mailing address of the
7    owner of the manufactured home;
8        (ii) a description of the manufactured home including
9    the name of the manufacturer, the make, the model name, the
10    model year, the dimensions, and the vehicle identification
11    number or numbers of the manufactured home and whether it
12    is new or used;
13        (iii) the book number, page number and date of
14    recordation of the affidavit of affixation;
15        (iv) a statement of either (A) any facts or information
16    known to the party executing the affidavit that could
17    reasonably affect the validity of the title of the
18    manufactured home or the existence or non-existence of a
19    security interest in or lien on it, or (B) that no such
20    facts or information are known to such party; and
21        (v) the name and address of the person designated for
22    filing the certified copy of the affidavit of severance
23    with the Secretary of State, to whom the recording officer
24    shall return the certified copy of the affidavit of
25    severance after it has been duly recorded in the real
26    property records, as provided in subsection (d) of this

 

 

HB2927- 18 -LRB098 07544 HLH 37615 b

1    Section.
2    (b) The affidavit of severance shall be in the form set
3forth in subsection (d) of this Section, duly acknowledged or
4proved in like manner as to entitle a conveyance to be
5recorded, and when so acknowledged or proved and upon payment
6of the lawful fees therefor, such recording officer shall
7immediately cause the affidavit and any attachments thereto to
8be duly recorded and indexed in the record of deeds.
9    (c) Upon payment of the fees provided by law and
10recordation of the affidavit of severance, the recording
11officer shall endorse the affidavit as "recorded in land
12records", setting forth thereon the indexing information for
13the affidavit of severance, and the recording officer shall
14forthwith forward a certified copy of the affidavit of
15severance to the person designated therein for filing with the
16Secretary of State. Upon receipt of a certified copy of the
17affidavit of severance by the person designated therein for
18filing with the Secretary of State, such person shall deliver
19for filing to the Secretary of State such certified copy of the
20affidavit of severance and the other documents provided in
21subsection (a) of this Section, together with an application
22for a certificate of title to the manufactured home, to be
23issued in accordance with subsection (b) of Section 3-109 of
24the Illinois Vehicle Code.
25    (d) An affidavit of severance shall be in the form set
26forth below:
 

 

 

HB2927- 19 -LRB098 07544 HLH 37615 b

1
MANUFACTURED HOME
2
AFFIDAVIT OF SEVERANCE

 
3STATE OF .........................)
4                                  )SS.
5COUNTY OF ........................)
 
6BEFORE ME, the undersigned notary public, on this day
7personally appeared ................... (type the name(s) of
8each person signing this Affidavit) known to me to be the
9person(s) whose name(s) is/are subscribed below (each an
10"Affiant"), and who, being by me first duly sworn, did each on
11his or her oath state as follows:
 
121. The owner(s) of the manufactured home described below
13    reside(s) at the following address:
14..........................
15(Street or Route; City; County; State; Zip Code)
 
16Mailing address, if different:
17...............................
18(Street or Route; City; County; State; Zip Code)
 
192. The manufactured home that is the subject of this Affidavit
20    ("Home") is described as follows:

 

 

HB2927- 20 -LRB098 07544 HLH 37615 b

1............................
2(New/Used;  Year;  Manufacturer's Name;  Model Name and Model 
3No.;  Manufacturer's VIN No(s).;  Length/Width)
 
43. The Home was severed from the following address ("Land"):
5.
6(Street or Route; City; County; State; Zip Code)
 
74. An Affidavit of Affixation was duly recorded in the land 
8    records of  the  county in which the  Land is located on 
9    (date) ............., in book number ...... at page 
10    number .....
115. Affiant is the owner of the Land or, if not the owner of 
12    the Land, is in possession of the Land pursuant to a 
13    lease in recordable form, and the consent of the lessor 
14    is attached to this Affidavit.
156. The Home is subject to the following security interests:
 
16Name of Lienholder: ................
17Address: ........
18Original Principal Amount Secured: ..........................
 
19Name of Lienholder: ................
20Address: ........
21Original Principal Amount Secured: ..........................
 

 

 

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17. Other than those disclosed in this Affidavit, Affiant is 
2    not aware of (i) any other security interest, claim, 
3    lien, or encumbrance affecting the Home or (ii) any other 
4    facts or information that could reasonably affect the 
5    validity of the title of the Home or the existence or 
6    non-existence of security interests in it.
78. A release of lien from each of the lienholders identified 
8    in paragraph 6 of this Affidavit [] has been [] shall  be 
9    delivered to the Secretary of State. 
109. Affiant designates the following person to file a 
11    certified copy of this Affidavit with the Secretary of 
12    State, and the person to whom the Recorder shall return a 
13    certified copy of this Affidavit after it has been duly 
14    recorded in the real property records:
15    Name: ...............................................
16    Address: ................................................
 
1710. This Affidavit is executed by Affiant pursuant to Section 
18    5-50 of the Conveyance and Encumbrance of Manufactured 
19    Homes as Real Property and Severance Act.
20
21    IN WITNESS WHEREOF, Affiant(s) has/have executed this 
22    Affidavit in my presence and in the presence of the 
23    undersigned witnesses on this ....... day of 
24    ................, .......
25

 

 

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1...........................(SEAL) ..........................
2Homeowner #1                      Witness
3...........................
4Printed Name
 
5...........................(SEAL) ..........................
6Homeowner #2                      Witness
7...........................
8Printed Name
 
9...........................(SEAL) ..........................
10Homeowner #3                      Witness
11...........................
12Printed Name
 
13...........................(SEAL) ..........................
14Homeowner #4                      Witness
15...........................
16Printed Name
 
17STATE OF .........................)
18                                  )  SS.
19COUNTY OF ........................)
 
20    The foregoing instrument was acknowledged before me this
21(date) by (name(s) of person(s) who acknowledged).

 

 

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1                  .......................... Notary Public
2                          Signature
 
3                 My commission expires: ...................
4                 Official Seal:
 
5ATTENTION RECORDER: This instrument covers goods that had been
6fixtures on the Property described herein and is to be filed
7for record in the records where conveyances of real estate are
8recorded.
 
9    Section 5-55. Documents in trust.
10    (a) Manufacturer's Statement of Origin. The holder of a
11Manufacturer's Statement of Origin to a manufactured home may
12deliver it to any person to facilitate conveying or encumbering
13the home. Any person receiving a Manufacturer's Statement of
14Origin so delivered holds it in trust for the person delivering
15it.
16    (b) Lien Release. The holder of a security interest in a
17manufactured home may deliver lien release documents to any
18person to facilitate conveying or encumbering the home. Any
19person receiving any such documents so delivered holds the
20documents in trust for the lienholder.
 
21
Article 10. AMENDATORY PROVISIONS

 

 

 

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1    Section 10-15. The Property Tax Code is amended by changing
2Section 1-130 as follows:
 
3    (35 ILCS 200/1-130)
4    Sec. 1-130. Property; real property; real estate; land;
5tract; lot.
6    (a) The land itself, with all things contained therein, and
7also all buildings, structures and improvements, and other
8permanent fixtures thereon, including all oil, gas, coal, and
9other minerals in the land and the right to remove oil, gas and
10other minerals, excluding coal, from the land, and all rights
11and privileges belonging or pertaining thereto, except where
12otherwise specified by this Code. Not included therein are
13low-income housing tax credits authorized by Section 42 of the
14Internal Revenue Code, 26 U.S.C. 42.
15    (b) Notwithstanding any other provision of law, mobile
16homes and manufactured homes that (i) are located outside of
17mobile home parks and (ii) are taxed under the Mobile Home
18Local Services Tax Act on the effective date of this amendatory
19Act of the 96th General Assembly shall continue to be taxed
20under the Mobile Home Local Services Tax Act and shall not be
21classified, assessed, and taxed as real property until the home
22is sold or transferred or until the home is relocated to a
23different parcel of land outside of a mobile home park. If a
24mobile home or manufactured home described in this subsection
25(b) is sold, transferred, or relocated to a different parcel of

 

 

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1land outside of a mobile home park, then the home shall be
2classified, assessed, and taxed as real property whether or not
3that mobile home or manufactured home is permanently affixed to
4real property as defined in Section 5-5 of the Conveyance and
5Encumbrance of Manufactured Homes as Real Property and
6Severance Act or installed on a permanent foundation and
7whether or not such mobile home or manufactured home is real
8property as defined in Section 5-35 of the Conveyance and
9Encumbrance of Manufactured Homes as Real Property and
10Severance Act. Mobile homes and manufactured homes that are
11located outside of mobile home parks and classified, assessed,
12and taxed as real property on the effective date of this
13amendatory Act of the 96th General Assembly shall continue to
14be classified, assessed, and taxed as real property whether or
15not those mobile homes or manufactured homes are permanently
16affixed to real property as defined in the Conveyance and
17Encumbrance of Manufactured Homes as Real Property and
18Severance Act or installed on permanent foundations and whether
19or not those mobile homes or manufactured homes are real
20property as defined in the Conveyance and Encumbrance of
21Manufactured Homes as Real Property and Severance Act. If a
22mobile or manufactured home that is located outside of a mobile
23home park is relocated to a mobile home park, it must be
24considered chattel and must be taxed according to the Mobile
25Home Local Services Tax Act. The owner of a mobile home or
26manufactured home that is located outside of a mobile home park

 

 

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1may file a request with the chief county assessment officer
2county that the home be classified, assessed, and taxed as real
3property.
4    (c) Mobile homes and manufactured homes that are located in
5mobile home parks must be considered chattel and must be taxed
6according to the Mobile Home Local Services Tax Act.
7    (d) If the provisions of this Section conflict with the
8Illinois Manufactured Housing and Mobile Home Safety Act, the
9Mobile Home Local Services Tax Act, the Mobile Home Park Act,
10or any other provision of law with respect to the taxation of
11mobile homes or manufactured homes located outside of mobile
12home parks, the provisions of this Section shall control.
13(Source: P.A. 96-1477, eff. 1-1-11.)
 
14    Section 10-20. The Mobile Home Local Services Tax Act is
15amended by changing Sections 1 and 4 as follows:
 
16    (35 ILCS 515/1)  (from Ch. 120, par. 1201)
17    Sec. 1. (a) As Except as provided in subsections (b) and
18(c), as used in this Act, "manufactured home" means a
19factory-assembled, completely integrated structure designed
20for permanent habitation, with a permanent chassis, and so
21constructed as to permit its transport, on wheels temporarily
22or permanently attached to its frame, and is a movable or
23portable unit that is (i) 8 body feet or more in width, (ii) 40
24body feet or more in length, and (iii) 320 or more square feet,

 

 

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1constructed to be towed on its own chassis (comprised of frame
2and wheels) from the place of its construction to the location,
3or subsequent locations, at which it is installed and set up
4according to the manufacturer's instructions and connected to
5utilities for year-round occupancy for use as a permanent
6habitation, and designed and situated so as to permit its
7occupancy as a dwelling place for one or more persons, and
8specifically includes a "manufactured home" as defined in
9subdivision 53 of Section 9-102 of the Uniform Commercial Code.
10The term shall include units containing parts that may be
11folded, collapsed, or telescoped when being towed and that may
12be expected to provide additional cubic capacity, and that are
13designed to be joined into one integral unit capable of being
14separated again into the components for repeated towing. The
15term excludes campers and recreational vehicles. Mobile homes
16and manufactured homes in mobile home parks must be assessed
17and taxed as chattel. Mobile homes and manufactured homes
18outside of mobile home parks must be assessed and taxed as real
19property whether or not such mobile homes and manufactured
20homes are permanently affixed to real property as defined in
21Section 5-5 of the Conveyance and Encumbrance of Manufactured
22Homes as Real Property and Severance Act or installed on
23permanent foundations, and whether or not such mobile homes and
24manufactured homes are real property as defined in Section 5-35
25of the Conveyance and Encumbrance of Manufactured Homes as Real
26Property and Severance Act. The words "mobile home" and

 

 

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1"manufactured home" are synonymous for the purposes of this
2Act. Any such structure located outside of a mobile home park
3shall not be assessed and taxed construed as chattel, but must
4be assessed and taxed as real property as defined by Section
51-130 of the Property Tax Code. All mobile homes and
6manufactured homes located inside mobile home parks must be
7considered as chattel and taxed according to this Act. Mobile
8homes and manufactured homes located on a dealer's lot for
9resale purposes or as a temporary office shall not be subject
10to this tax.
11    (b) Mobile homes and manufactured homes that (i) are
12located outside of mobile home parks and (ii) are taxed under
13this Act on the effective date of this amendatory Act of the
1496th General Assembly must continue to be taxed under this Act
15and shall not be classified, assessed, and taxed as real
16property until the home is sold, transferred, or relocated to a
17different parcel of land outside of a mobile home park. If a
18mobile home or manufactured home described in this subsection
19(b) is sold, transferred, or relocated to a different parcel of
20land outside of a mobile home park, then the home must be
21classified, assessed, and taxed as real property whether or not
22the mobile home or manufactured home is permanently affixed to
23real property as defined in Section 5-5 of the Conveyance and
24Encumbrance of Manufactured Homes as Real Property and
25Severance Act or installed on a permanent foundation and
26whether or not the mobile home or manufactured home is real

 

 

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1property as defined in Section 5-35 of the Conveyance and
2Encumbrance of Manufactured Homes as Real Property and
3Severance Act. Mobile homes and manufactured homes that are
4located outside of mobile home parks and classified, assessed,
5and taxed as real property on the effective date of this
6amendatory Act of the 96th General Assembly must continue to be
7classified, assessed, and taxed as real property whether or not
8the mobile homes and manufactured homes are permanently affixed
9to real property as defined in Section 5-5 of the Conveyance
10and Encumbrance of Manufactured Homes as Real Property and
11Severance Act or installed on permanent foundations and whether
12or not the mobile homes and manufactured homes are real
13property as defined in Section 5-35 of the Conveyance and
14Encumbrance of Manufactured Homes as Real Property and
15Severance Act. If a mobile or manufactured home that is located
16outside of a mobile home park is relocated to a mobile home
17park, the home must be considered chattel and must be taxed
18according to the Mobile Home Local Services Tax Act. The owner
19of a mobile home or manufactured home that is located outside
20of a mobile home park may file a request with the county that
21the home be classified, assessed, and taxed as real property.
22    (c) Mobile homes and manufactured homes that are located in
23mobile home parks must be considered chattel and must be taxed
24according to this Act.
25(Source: P.A. 96-1477, eff. 1-1-11.)
 

 

 

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1    (35 ILCS 515/4)  (from Ch. 120, par. 1204)
2    Sec. 4. The owner of each inhabited mobile home or
3manufactured home located in this State, but not located inside
4of a mobile home park, on the effective date of this amendatory
5Act of the 96th General Assembly shall, within 30 days after
6such date, record with the Office of the Recorder in the county
7where the mobile home or manufactured home is located file with
8the township assessor, if any, or with the Supervisor of
9Assessments or county assessor if there is no township
10assessor, or with the county assessor in those counties in
11which a county assessor is elected pursuant to Section 3-45 of
12the Property Tax Code, a mobile home registration form
13containing the information hereinafter specified, subject to
14the county's recording fees and record a signed copy of the
15title or certificate of origin in the county where the home is
16located or surrender the signed title or certificate of origin
17to be held by the county until such time as the home is to be
18removed from the county. Mobile home park operators shall
19forward a copy of the mobile home registration form provided in
20Section 12 of "An Act to provide for, license and regulate
21mobile homes and mobile home parks and to repeal an Act named
22herein", approved September 8, 1971, as amended, to the
23township assessor, if any, or to Supervisor of Assessments or
24county assessor if there is no township assessor, or to the
25county assessor in those counties in which a county assessor is
26elected pursuant to Section 3-45 of the Property Tax Code,

 

 

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1within 5 days of the entry of a mobile home into such park. The
2owner of a mobile home or manufactured home not located in a
3mobile home park, other than a mobile home or manufactured home
4with respect to which the requirements of Section 5-30 of the
5Conveyance and Encumbrance of Manufactured Homes as Real
6Property and Severance Act and the requirements of Section
73-116.1 or Section 3-116.2 of the Illinois Vehicle Code, as
8applicable, have been satisfied unless with respect to the same
9manufactured home there has been recorded an affidavit of
10severance pursuant to Section 5-50 of the Conveyance and
11Encumbrance of Manufactured Homes as Real Property and
12Severance Act, shall, within 30 days after initial placement of
13such mobile home or manufactured home in any county and within
1430 days after movement of such mobile home or manufactured home
15to a new location, record with the Office of the Recorder in
16the county where the mobile home or manufactured home is
17located file with the county assessor, Supervisor of
18Assessments or township assessor, as the case may be, a mobile
19home registration showing the name and address of the owner and
20every occupant of the mobile home or manufactured home, the
21location of the mobile home or manufactured home, the year of
22manufacture, and the square feet of floor space contained in
23such mobile home or manufactured home together with the date
24that the mobile home or manufactured home became inhabited, was
25initially installed and set up in the county, or was moved to a
26new location. Such registration shall also include the license

 

 

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1number of such mobile home or manufactured home and of the
2towing vehicle, if there be any, and the State issuing such
3licenses, subject to the county's recording fees. In the case
4of a mobile home or manufactured home not located in a mobile
5home park, the registration shall be signed by the owner or
6occupant of the mobile home or manufactured home. and the title
7or certificate of origin shall be signed and recorded in the
8county where the home is located or surrendered to the county
9and held until such time the home is removed from the county.
10Titles or certificates of origin held by a mortgage company on
11the home shall be signed and recorded in the county where
12located or surrendered to the county once the mortgage is
13released. Failure to record the registration or surrender the
14title or certificate of origin shall not prevent the home from
15being assessed and taxed as real property. It is the duty of
16each township assessor, if any, and each Supervisor of
17Assessments or county assessor if there is no township
18assessor, or the county assessor in those counties in which a
19county assessor is elected pursuant to Section 3-45 of the
20Property Tax Code, to require timely filing of a properly
21completed registration for each mobile home or manufactured
22home located in a mobile home park in his or her township or
23county, as the case may be. Any person furnishing
24misinformation for purposes of registration or failing to
25record file a required registration is guilty of a Class A
26misdemeanor. This Section applies only when the tax permitted

 

 

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1by Section 3 has been imposed on mobile homes and manufactured
2homes located inside mobile home parks.
3(Source: P.A. 96-1477, eff. 1-1-11.)
 
4    Section 10-25. The Illinois Banking Act is amended by
5changing Sections 3, 5a, 5d, and 6.1 as follows:
 
6    (205 ILCS 5/3)  (from Ch. 17, par. 309)
7    Sec. 3. Formation and primary powers. It shall be lawful to
8form banks, as herein provided, for the purpose of discount and
9deposit, buying and selling exchange and doing a general
10banking business, excepting the issuing of bills to circulate
11as money; and such banks shall have the power to loan money on
12personal and real estate security, and to accept and execute
13trusts upon obtaining a certificate of authority pursuant to
14the "Corporate Fiduciary Act", and shall be subject to all of
15the provisions of this Act. For purposes of this Section, "real
16estate" includes a manufactured home as defined in subdivision
17(53) of Section 9-102 of the Uniform Commercial Code that is
18real property as defined in Section 5-35 of the Conveyance and
19Encumbrance of Manufactured Homes as Real Property and
20Severance Act.
21(Source: P.A. 85-1402.)
 
22    (205 ILCS 5/5a)  (from Ch. 17, par. 312)
23    Sec. 5a. Reverse mortgage loans. Notwithstanding any other

 

 

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1provision of this Act, a bank may engage in making "reverse
2mortgage" loans.
3    For purposes of this Section, a "reverse mortgage" loan
4shall be a loan extended on the basis of existing equity in
5homestead property. A bank, in making a "reverse mortgage"
6loan, may add deferred interest to principal or otherwise
7provide for the charging of interest or premium on the deferred
8interest.
9    The loans shall be repaid upon sale of the property or upon
10the death of the owner or, if the property is in joint tenancy,
11upon the death of the last surviving joint tenant who had an
12interest in the property at the time the loan was initiated.
13    "Homestead" property, for purposes of this Section, means
14the domicile and contiguous real estate owned and occupied by
15the mortgagor. For purposes of this Section, "homestead"
16includes a manufactured home as defined in subdivision (53) of
17Section 9-102 of the Uniform Commercial Code, used as the
18domicile, that is real property, as defined in Section 5-35 of
19the Conveyance and Encumbrance of Manufactured Homes as Real
20Property and Severance Act, and is owned and occupied by the
21mortgagor.
22    The Commissioner of Banks and Real Estate shall prescribe
23rules governing this Section and Section 1-6a of the Illinois
24Savings and Loan Act of 1985.
25(Source: P.A. 88-643, eff. 1-1-95; 89-508, eff. 7-3-96.)
 

 

 

HB2927- 35 -LRB098 07544 HLH 37615 b

1    (205 ILCS 5/5d)  (from Ch. 17, par. 312.3)
2    Sec. 5d. Notwithstanding any other provision of this Act, a
3bank may engage in making revolving credit loans secured by
4mortgages or deeds of trust on real property or by security
5assignments of beneficial interests in land trusts.
6    For purposes of this Section, "revolving credit", has the
7meaning defined in Section 4.1 of "An Act in relation to the
8rate of interest and other charges in connection with sales on
9credit and the lending of money", approved May 24, 1879, as
10amended.
11    Any mortgage or deed of trust given to secure a revolving
12credit loan may, and when so expressed therein shall, secure
13not only the existing indebtedness, but also such future
14advances, whether such advances are obligatory or to be made at
15the option of the lender, or otherwise, as are made within
16twenty years from the date thereof, to the same extent as if
17such future advances were made on the date of the execution of
18such mortgage or deed of trust, although there may be no
19advance made at the time of execution of such mortgage or other
20instrument, and although there may be no indebtedness
21outstanding at the time any advance is made. The lien of such
22mortgage or deed of trust, as to third persons without actual
23notice thereof, shall be valid as to all such indebtedness and
24future advances from the time said mortgage or deed of trust is
25filed for record in the office of the Recorder of Deeds or the
26Registrar of Titles of the county where the real property

 

 

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1described therein is located. The total amount of indebtedness
2that may be so secured may increase or decrease from time to
3time, but the total unpaid balance so secured at any one time
4shall not exceed a maximum principal amount which must be
5specified in such mortgage or deed of trust, plus interest
6thereon, and any disbursements made for the payment of taxes,
7special assessments, or insurance on said real property, with
8interest on such disbursements.
9    Any such mortgage or deed of trust shall be valid and have
10priority over all subsequent liens and encumbrances, including
11statutory liens, except taxes and assessments levied on said
12real property.
13    For purposes of this Section, "real property" includes a
14manufactured home as defined in subdivision (53) of Section
159-102 of the Uniform Commercial Code, that is real property as
16defined in Section 5-35 of the Conveyance and Encumbrance of
17Manufactured Homes as Real Property and Severance Act.
18(Source: P.A. 83-1539; 83-1380.)
 
19    (205 ILCS 5/6.1)  (from Ch. 17, par. 313.1)
20    Sec. 6.1. Non-recourse reverse mortgage loans.
21    (a) It is the intent of this amendatory Act of 1991 that
22homeowners at least 62 years of age be permitted to meet their
23financial needs by accessing the equity in their homes through
24a reverse mortgage. The General Assembly recognizes that many
25restrictions and requirements that exist to govern traditional

 

 

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1mortgage transactions are inapplicable in the context of
2reverse mortgages. In order to foster reverse mortgage
3transactions and better serve the citizens of this State, this
4Section authorizes the making of reverse mortgages, and
5expressly relieves reverse mortgage lenders and borrowers from
6compliance with inappropriate requirements.
7    As used in this Section, "borrower" means any homeowner who
8is, or whose spouse is, at least 62 years of age.
9    For purposes of this Section, "real property" includes a
10manufactured home as defined in subdivision (53) of Section
119-102 of the Uniform Commercial Code which is real property as
12defined in Section 5-35 of the Conveyance and Encumbrance of
13Manufactured Homes as Real Property and Severance Act.
14    As used in this Section, "reverse mortgage" means a
15non-recourse loan, secured by real property, that complies with
16all of the following:
17        (1) Provides cash advances to a borrower based on the
18    equity in a borrower's owner-occupied principal residence,
19    provided that it is a residence designed to be occupied by
20    not more than 4 families.
21        (2) Requires no payment of principal or interest until
22    the entire loan becomes due and payable.
23    (b) Reverse mortgage loans shall be subject only to all of
24the following provisions:
25        (1) Payment, in whole or in part, shall be permitted
26    without penalty at any time during the term of the

 

 

HB2927- 38 -LRB098 07544 HLH 37615 b

1    mortgage.
2        (2) A reverse mortgage may provide for an interest rate
3    that is fixed or adjustable and may provide for interest
4    that is contingent on appreciation in the value of the
5    property.
6        (3) If a reverse mortgage provides for periodic
7    advances to a borrower, the advances may not be reduced in
8    amount or number based on any adjustment in the interest
9    rate.
10        (4) A reverse mortgage may be subject to any additional
11    terms and conditions imposed by a lender that are required
12    under the provisions of the federal Housing and Community
13    Development Act of 1987 to enable the lender to obtain
14    federal government insurance on the mortgage if the loans
15    are to be insured under that Act.
16    (c) The repayment obligation under a reverse mortgage is
17subject to all of the following:
18        (1) Temporary absences from the home not exceeding 60
19    consecutive days shall not cause the mortgage to become due
20    and payable.
21        (2) Temporary absences from the home exceeding 60 days,
22    but not exceeding one year shall not cause the mortgage to
23    become due and payable, provided that the borrower has
24    taken action that secures the home in a manner satisfactory
25    to the lender.
26        (3) The lender must disclose any interest or other fees

 

 

HB2927- 39 -LRB098 07544 HLH 37615 b

1    to be charged during the period that commences on the date
2    the mortgage becomes due and payable and ends when
3    repayment in full is made in accordance with applicable
4    State and federal laws, rules, and regulations.
5    (d) A reverse mortgage shall become due and payable upon
6the occurrence of any of the following events:
7        (1) The real property securing the loan is sold.
8        (2) All borrowers cease to occupy the home as a
9    principal residence.
10        (3) A fixed maturity date agreed to by the lender and
11    the borrower is reached.
12        (4) An event that is specified in the loan documents
13    and that jeopardizes the lender's security occurs.
14    (e) No reverse mortgage commitment may be made by a lender
15unless the loan applicant attests, in writing, that the
16applicant has received from the lender, at the time of initial
17inquiry, a statement prepared by the Department on Aging
18regarding the advisability and availability of independent
19information and counseling services on reverse mortgages.
20(Source: P.A. 87-488.)
 
21    Section 10-30. The Illinois Savings and Loan Act of 1985 is
22amended by changing Sections 1-10.30 and 5-2 as follows:
 
23    (205 ILCS 105/1-10.30)  (from Ch. 17, par. 3301-10.30)
24    Sec. 1-10.30. "Real property": the interests, benefits,

 

 

HB2927- 40 -LRB098 07544 HLH 37615 b

1and rights inherent in the ownership of the physical real
2estate. It is the rights with which the ownership of real
3estate is endowed. "Real property" includes a manufactured home
4as defined in subdivision (53) of Section 9-102 of the Uniform
5Commercial Code that is real property as defined in Section
65-35 of the Conveyance and Encumbrance of Manufactured Homes as
7Real Property and Severance Act. For purposes of this Act, the
8term "Real Estate" is synonymous with "Real Property".
9(Source: P.A. 84-543.)
 
10    (205 ILCS 105/5-2)  (from Ch. 17, par. 3305-2)
11    Sec. 5-2. Investment in loans. An association may loan
12funds to members as follows:
13    (a) On the security of withdrawable capital accounts, but
14no such loan shall exceed the withdrawal value of the pledged
15account;
16    (b) On the security of real estate:
17    (1) Of a value, determined in accordance with Section 5-12
18of this Act, sufficient to provide good and ample security for
19the loan;
20    (2) With a fee simple title or a leasehold title of not
21less duration than 10 years beyond the maturity of the loan;
22    (3) With the title established by such evidence of title as
23is consistent with sound lending practices in the locality;
24    (4) With the security interest in such real estate
25evidenced by an appropriate written instrument and the loan

 

 

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1evidenced by a note, bond or similar written instrument. A loan
2on the security of the whole of the beneficial interest in a
3land trust satisfies the requirements of this paragraph if the
4title to the land is held by a corporate trustee and if the
5real estate held in the land trust meets the other requirements
6of this subsection; and
7    (5) With a mortgage loan not to exceed 40 years;
8    (c) For the purpose of repair, improvement,
9rehabilitation, furnishing or equipment of real estate or any
10other purpose;
11    (d) For the purpose of financing or refinancing an existing
12ownership interest in certificates of stock, certificates of
13beneficial interest or other evidence of an ownership interest
14in, and a proprietary lease from, a corporation, trust or
15partnership formed for the purpose of the cooperative ownership
16of real estate, secured by the assignment or transfer of such
17certificates or other evidence of ownership of the borrower;
18    (e) Through the purchase of loans which at the time of
19purchase the association could make in accordance with this
20Section and the by-laws;
21    (f) Through the purchase of installment contracts for the
22sale of real estate, and title thereto which is subject to such
23contracts, but in each instance only if the association at the
24time of purchase could make a mortgage loan of the same amount
25and for the same length of time on the security of such real
26estate;

 

 

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1    (g) Through loans guaranteed or insured, wholly or in part
2by the United States or any of its instrumentalities, and
3without regard to the limits in amount and terms otherwise
4imposed by this Article;
5    (h) Through secured or unsecured loans for business,
6corporate, personal, family, or household purposes, or for
7secured or unsecured loans for agricultural or commercial
8purposes to the same extent that such agricultural or
9commercial loans are authorized by federal law for any savings
10and loan association organized under federal law and authorized
11to do business in this State, except that loans to service
12corporations shall not be subject to the limitations of this
13paragraph;
14    (i) For the purpose of manufactured mobile home financing
15subject, however, to the regulation of the Commissioner; as
16used in this Section, "manufactured home" means a manufactured
17home as defined in subdivision (53) of Section 9-102 of the
18Uniform Commercial Code;
19    (j) Through loans to its members secured by the cash
20surrender value of any life insurance policy or any collateral
21which would be a legal investment if made by such association
22pursuant to the terms of this Act; and
23    (k) Any provision of this Act to the contrary
24notwithstanding, any association may make any loan to its
25members or investment which such association could make if it
26were incorporated and operating as an association organized

 

 

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1under the laws of the United States.
2(Source: P.A. 86-137.)
 
3    Section 10-35. The Savings Bank Act is amended by changing
4Sections 6002 and 6008 as follows:
 
5    (205 ILCS 205/6002)  (from Ch. 17, par. 7306-2)
6    Sec. 6002. Investment in loans.
7    (a) Subject to the regulations of the Commissioner, a
8savings bank may loan funds as follows:
9    (1) On the security of deposit accounts, but no such loan
10shall exceed the withdrawal value of the pledged account.
11    (2) On the security of real estate:
12        (A) of a value, determined in accordance with this Act,
13    sufficient to provide good and ample security for the loan;
14        (B) with a fee simple title or a leasehold title;
15        (C) with the title established by evidence of title as
16    is consistent with sound lending practices in the locality;
17        (D) with the security interest in the real estate
18    evidenced by an appropriate written instrument and the loan
19    evidenced by a note, bond, or similar written instrument; a
20    loan on the security of the whole of the beneficial
21    interest in a land trust satisfies the requirements of this
22    paragraph if the title to the land is held by a corporate
23    trustee and if the real estate held in the land trust meets
24    the other requirements of this subsection;

 

 

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1        (E) with a mortgage loan not to exceed 40 years.
2    (3) For the purpose of repair, improvement,
3rehabilitation, furnishing, or equipment of real estate.
4    (4) For the purpose of financing or refinancing an existing
5ownership interest in certificates of stock, certificates of
6beneficial interest, other evidence of an ownership interest
7in, or a proprietary lease from a corporation, trust, or
8partnership formed for the purpose of the cooperative ownership
9of real estate, secured by the assignment or transfer of
10certificates or other evidence of ownership of the borrower.
11    (5) Through the purchase of loans that, at the time of
12purchase, the savings bank could make in accordance with this
13Section and the bylaws.
14    (6) Through the purchase of installment contracts for the
15sale of real estate and title thereto that is subject to the
16contracts, but in each instance only if the savings bank, at
17the time of purchase, could make a mortgage loan of the same
18amount and for the same length of time on the security of the
19real estate.
20    (7) Through loans guaranteed or insured, wholly or in part,
21by the United States or any of its instrumentalities.
22    (8) Subject to regulations adopted by the Commissioner,
23through secured or unsecured loans for business, corporate,
24commercial, or agricultural purposes; provided that the total
25of all loans granted under this paragraph shall not exceed 15%
26of the savings bank's total assets unless a greater amount is

 

 

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1authorized in writing by the Commissioner.
2    (9) For the purpose of manufactured mobile home financing
3subject, however, to the regulation of the Commissioner. As
4used in this Section, "manufactured home" means a manufactured
5home as defined in subdivision (53) of Section 9-102 of the
6Uniform Commercial Code.
7    (10) Through loans secured by the cash surrender value of
8any life insurance policy or any collateral that would be a
9legal investment under the terms of this Act if made by the
10savings bank.
11    (11) Any provision of this Act or any other law, except for
12paragraph (18) of Section 6003, to the contrary
13notwithstanding, but subject to the Financial Institutions
14Insurance Sales Law and subject to the Commissioner's
15regulations, any savings bank may make any loan or investment
16or engage in any activity that it could make or engage in if it
17were organized under State law as a savings and loan
18association or under federal law as a federal savings and loan
19association or federal savings bank.
20    (12) A savings bank may issue letters of credit or other
21similar arrangements only as provided for by regulation of the
22Commissioner with regard to aggregate amounts permitted, take
23out commitments for stand-by letters of credit, underlying
24documentation and underwriting, legal limitations on loans of
25the savings bank, control and subsidiary records, and other
26procedures deemed necessary by the Commissioner.

 

 

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1    (13) For the purpose of automobile financing, subject to
2the regulation of the Commissioner.
3    (14) For the purpose of financing primary, secondary,
4undergraduate, or postgraduate education.
5    (15) Through revolving lines of credit on the security of a
6first or junior lien on the borrower's personal residence,
7based primarily on the borrower's equity, the proceeds of which
8may be used for any purpose; those loans being commonly
9referred to as home equity loans.
10    (16) As secured or unsecured credit to cover the payment of
11checks, drafts, or other funds transfer orders in excess of the
12available balance of an account on which they are drawn,
13subject to the regulations of the Commissioner.
14    (b) For purposes of this Section, "real estate" includes a
15manufactured home as defined in subdivision (53) of Section
169-102 of the Uniform Commercial Code which is real property as
17defined in Section 5-35 of the Conveyance and Encumbrance of
18Manufactured Homes as Real Property and Severance Act.
19(Source: P.A. 90-301, eff. 8-1-97; 91-97, eff. 7-9-99.)
 
20    (205 ILCS 205/6008)  (from Ch. 17, par. 7306-8)
21    Sec. 6008. Purchase of real estate at forced sale. A
22savings bank may purchase at any sheriff's or other judicial
23sale, either public or private, any real estate upon which the
24savings bank has any mortgage, lien or other encumbrance, or in
25which the savings bank has any other interest. The savings bank

 

 

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1thereafter may repair, insure, improve, sell, convey, lease,
2preserve, mortgage, exchange, or otherwise dispose of real
3estate so acquired in the best interests of the savings bank.
4For purposes of this Section, "real estate" includes a
5manufactured home as defined in subdivision (53) of Section
69-102 of the Uniform Commercial Code which is real property as
7defined in Section 5-35 of the Conveyance and Encumbrance of
8Manufactured Homes as Real Property and Severance Act.
9(Source: P.A. 86-1213.)
 
10    Section 10-40. The Illinois Credit Union Act is amended by
11changing Sections 46 and 46.1 as follows:
 
12    (205 ILCS 305/46)  (from Ch. 17, par. 4447)
13    Sec. 46. Loans and interest rate.
14    (1) A credit union may make loans to its members for such
15purpose and upon such security and terms, including rates of
16interest, as the credit committee, credit manager, or loan
17officer approves. Notwithstanding the provisions of any other
18law in connection with extensions of credit, a credit union may
19elect to contract for and receive interest and fees and other
20charges for extensions of credit subject only to the provisions
21of this Act and rules promulgated under this Act, except that
22extensions of credit secured by residential real estate shall
23be subject to the laws applicable thereto. The rates of
24interest to be charged on loans to members shall be set by the

 

 

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1board of directors of each individual credit union in
2accordance with Section 30 of this Act and such rates may be
3less than, but may not exceed, the maximum rate set forth in
4this Section. A borrower may repay his loan prior to maturity,
5in whole or in part, without penalty. The credit contract may
6provide for the payment by the member and receipt by the credit
7union of all costs and disbursements, including reasonable
8attorney's fees and collection agency charges, incurred by the
9credit union to collect or enforce the debt in the event of a
10delinquency by the member, or in the event of a breach of any
11obligation of the member under the credit contract. A
12contingency or hourly arrangement established under an
13agreement entered into by a credit union with an attorney or
14collection agency to collect a loan of a member in default
15shall be presumed prima facie reasonable.
16    (2) Credit unions may make loans based upon the security of
17any interest or equity in real estate, subject to rules and
18regulations promulgated by the Secretary. In any contract or
19loan which is secured by a mortgage, deed of trust, or
20conveyance in the nature of a mortgage, on residential real
21estate, the interest which is computed, calculated, charged, or
22collected pursuant to such contract or loan, or pursuant to any
23regulation or rule promulgated pursuant to this Act, may not be
24computed, calculated, charged or collected for any period of
25time occurring after the date on which the total indebtedness,
26with the exception of late payment penalties, is paid in full.

 

 

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1    For purposes of this subsection (2) of this Section 46, a
2prepayment shall mean the payment of the total indebtedness,
3with the exception of late payment penalties if incurred or
4charged, on any date before the date specified in the contract
5or loan agreement on which the total indebtedness shall be paid
6in full, or before the date on which all payments, if timely
7made, shall have been made. In the event of a prepayment of the
8indebtedness which is made on a date after the date on which
9interest on the indebtedness was last computed, calculated,
10charged, or collected but before the next date on which
11interest on the indebtedness was to be calculated, computed,
12charged, or collected, the lender may calculate, charge and
13collect interest on the indebtedness for the period which
14elapsed between the date on which the prepayment is made and
15the date on which interest on the indebtedness was last
16computed, calculated, charged or collected at a rate equal to
171/360 of the annual rate for each day which so elapsed, which
18rate shall be applied to the indebtedness outstanding as of the
19date of prepayment. The lender shall refund to the borrower any
20interest charged or collected which exceeds that which the
21lender may charge or collect pursuant to the preceding
22sentence. The provisions of this amendatory Act of 1985 shall
23apply only to contracts or loans entered into on or after the
24effective date of this amendatory Act.
25    (3) Notwithstanding any other provision of this Act, a
26credit union authorized under this Act to make loans secured by

 

 

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1an interest or equity in real estate may engage in making
2"reverse mortgage" loans to persons for the purpose of making
3home improvements or repairs, paying insurance premiums or
4paying real estate taxes on the homestead properties of such
5persons. If made, such loans shall be made on such terms and
6conditions as the credit union shall determine and as shall be
7consistent with the provisions of this Section and such rules
8and regulations as the Secretary shall promulgate hereunder.
9For purposes of this Section, a "reverse mortgage" loan shall
10be a loan extended on the basis of existing equity in homestead
11property and secured by a mortgage on such property. Such loans
12shall be repaid upon the sale of the property or upon the death
13of the owner or, if the property is in joint tenancy, upon the
14death of the last surviving joint tenant who had such an
15interest in the property at the time the loan was initiated,
16provided, however, that the credit union and its member may by
17mutual agreement, establish other repayment terms. A credit
18union, in making a "reverse mortgage" loan, may add deferred
19interest to principal or otherwise provide for the charging of
20interest or premiums on such deferred interest. "Homestead"
21property, for purposes of this Section, means the domicile and
22contiguous real estate owned and occupied by the mortgagor.
23    (4) Notwithstanding any other provisions of this Act, a
24credit union authorized under this Act to make loans secured by
25an interest or equity in real property may engage in making
26revolving credit loans secured by mortgages or deeds of trust

 

 

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1on such real property or by security assignments of beneficial
2interests in land trusts.
3    For purposes of this Section, "revolving credit" has the
4meaning defined in Section 4.1 of the Interest Act.
5    Any mortgage or deed of trust given to secure a revolving
6credit loan may, and when so expressed therein shall, secure
7not only the existing indebtedness but also such future
8advances, whether such advances are obligatory or to be made at
9the option of the lender, or otherwise, as are made within
10twenty years from the date thereof, to the same extent as if
11such future advances were made on the date of the execution of
12such mortgage or deed of trust, although there may be no
13advance made at the time of execution of such mortgage or other
14instrument, and although there may be no indebtedness
15outstanding at the time any advance is made. The lien of such
16mortgage or deed of trust, as to third persons without actual
17notice thereof, shall be valid as to all such indebtedness and
18future advances form the time said mortgage or deed of trust is
19filed for record in the office of the recorder of deeds or the
20registrar of titles of the county where the real property
21described therein is located. The total amount of indebtedness
22that may be so secured may increase or decrease from time to
23time, but the total unpaid balance so secured at any one time
24shall not exceed a maximum principal amount which must be
25specified in such mortgage or deed of trust, plus interest
26thereon, and any disbursements made for the payment of taxes,

 

 

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1special assessments, or insurance on said real property, with
2interest on such disbursements.
3    Any such mortgage or deed of trust shall be valid and have
4priority over all subsequent liens and encumbrances, including
5statutory liens, except taxes and assessments levied on said
6real property.
7    (4-5) For purposes of this Section, "real estate" and "real
8property" include a manufactured home as defined in subdivision
9(53) of Section 9-102 of the Uniform Commercial Code which is
10real property as defined in Section 5-35 of the Conveyance and
11Encumbrance of Manufactured Homes as Real Property and
12Severance Act.
13    (5) Compliance with federal or Illinois preemptive laws or
14regulations governing loans made by a credit union chartered
15under this Act shall constitute compliance with this Act.
16    (6) Credit unions may make residential real estate mortgage
17loans on terms and conditions established by the United States
18Department of Agriculture through its Rural Development
19Housing and Community Facilities Program. The portion of any
20loan in excess of the appraised value of the real estate shall
21be allocable only to the guarantee fee required under the
22program.
23(Source: P.A. 96-141, eff. 8-7-09; 97-133, eff. 1-1-12.)
 
24    (205 ILCS 305/46.1)  (from Ch. 17, par. 4447.1)
25    Sec. 46.1. Non-recourse reverse mortgage loans. Any credit

 

 

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1union authorized under this Act to make loans secured by an
2interest or equity in real estate may make non-recourse reverse
3mortgage loans as provided in Section 6.1 of the Illinois
4Banking Act.
5    For purposes of this Section, "real estate" includes a
6manufactured home as defined in subdivision (53) of Section
79-102 of the Uniform Commercial Code that is real property as
8defined in Section 5-35 of the Conveyance and Encumbrance of
9Manufactured Homes as Real Property and Severance Act.
10(Source: P.A. 87-488.)
 
11    Section 10-45. The Residential Mortgage License Act of 1987
12is amended by changing Section 1-4 as follows:
 
13    (205 ILCS 635/1-4)
14    Sec. 1-4. Definitions.
15    (a) "Residential real property" or "residential real
16estate" shall mean any real property located in Illinois, upon
17which is constructed or intended to be constructed a dwelling.
18Those terms include a manufactured home as defined in
19subdivision (53) of Section 9-102 of the Uniform Commercial
20Code which is real property as defined in Section 5-35 of the
21Conveyance and Encumbrance of Manufactured Homes as Real
22Property and Severance Act.
23    (b) "Making a residential mortgage loan" or "funding a
24residential mortgage loan" shall mean for compensation or gain,

 

 

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1either directly or indirectly, advancing funds or making a
2commitment to advance funds to a loan applicant for a
3residential mortgage loan.
4    (c) "Soliciting, processing, placing, or negotiating a
5residential mortgage loan" shall mean for compensation or gain,
6either directly or indirectly, accepting or offering to accept
7an application for a residential mortgage loan, assisting or
8offering to assist in the processing of an application for a
9residential mortgage loan on behalf of a borrower, or
10negotiating or offering to negotiate the terms or conditions of
11a residential mortgage loan with a lender on behalf of a
12borrower including, but not limited to, the submission of
13credit packages for the approval of lenders, the preparation of
14residential mortgage loan closing documents, including a
15closing in the name of a broker.
16    (d) "Exempt person or entity" shall mean the following:
17        (1) (i) Any banking organization or foreign banking
18    corporation licensed by the Illinois Commissioner of Banks
19    and Real Estate or the United States Comptroller of the
20    Currency to transact business in this State; (ii) any
21    national bank, federally chartered savings and loan
22    association, federal savings bank, federal credit union;
23    (iii) any pension trust, bank trust, or bank trust company;
24    (iv) any bank, savings and loan association, savings bank,
25    or credit union organized under the laws of this or any
26    other state; (v) any Illinois Consumer Installment Loan Act

 

 

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1    licensee; (vi) any insurance company authorized to
2    transact business in this State; (vii) any entity engaged
3    solely in commercial mortgage lending; (viii) any service
4    corporation of a savings and loan association or savings
5    bank organized under the laws of this State or the service
6    corporation of a federally chartered savings and loan
7    association or savings bank having its principal place of
8    business in this State, other than a service corporation
9    licensed or entitled to reciprocity under the Real Estate
10    License Act of 2000; or (ix) any first tier subsidiary of a
11    bank, the charter of which is issued under the Illinois
12    Banking Act by the Illinois Commissioner of Banks and Real
13    Estate, or the first tier subsidiary of a bank chartered by
14    the United States Comptroller of the Currency and that has
15    its principal place of business in this State, provided
16    that the first tier subsidiary is regularly examined by the
17    Illinois Commissioner of Banks and Real Estate or the
18    Comptroller of the Currency, or a consumer compliance
19    examination is regularly conducted by the Federal Reserve
20    Board.
21        (1.5) Any employee of a person or entity mentioned in
22    item (1) of this subsection, when acting for such person or
23    entity, or any registered mortgage loan originator when
24    acting for an entity described in subsection (tt) of this
25    Section.
26        (1.8) Any person or entity that does not originate

 

 

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1    mortgage loans in the ordinary course of business, but
2    makes or acquires residential mortgage loans with his or
3    her own funds for his or her or its own investment without
4    intent to make, acquire, or resell more than 3 residential
5    mortgage loans in any one calendar year.
6        (2) (Blank).
7        (3) Any person employed by a licensee to assist in the
8    performance of the residential mortgage licensee's
9    activities regulated by this Act who is compensated in any
10    manner by only one licensee.
11        (4) (Blank).
12        (5) Any individual, corporation, partnership, or other
13    entity that originates, services, or brokers residential
14    mortgage loans, as these activities are defined in this
15    Act, and who or which receives no compensation for those
16    activities, subject to the Commissioner's regulations and
17    the federal Secure and Fair Enforcement for Mortgage
18    Licensing Act of 2008 and the rules promulgated under that
19    Act with regard to the nature and amount of compensation.
20        (6) (Blank).
21    (e) "Licensee" or "residential mortgage licensee" shall
22mean a person, partnership, association, corporation, or any
23other entity who or which is licensed pursuant to this Act to
24engage in the activities regulated by this Act.
25    (f) "Mortgage loan" "residential mortgage loan" or "home
26mortgage loan" shall mean any loan primarily for personal,

 

 

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1family, or household use that is secured by a mortgage, deed of
2trust, or other equivalent consensual security interest on a
3dwelling as defined in Section 103(v) of the federal Truth in
4Lending Act, or residential real estate upon which is
5constructed or intended to be constructed a dwelling.
6    (g) "Lender" shall mean any person, partnership,
7association, corporation, or any other entity who either lends
8or invests money in residential mortgage loans.
9    (h) "Ultimate equitable owner" shall mean a person who,
10directly or indirectly, owns or controls an ownership interest
11in a corporation, foreign corporation, alien business
12organization, trust, or any other form of business organization
13regardless of whether the person owns or controls the ownership
14interest through one or more persons or one or more proxies,
15powers of attorney, nominees, corporations, associations,
16partnerships, trusts, joint stock companies, or other entities
17or devices, or any combination thereof.
18    (i) "Residential mortgage financing transaction" shall
19mean the negotiation, acquisition, sale, or arrangement for or
20the offer to negotiate, acquire, sell, or arrange for, a
21residential mortgage loan or residential mortgage loan
22commitment.
23    (j) "Personal residence address" shall mean a street
24address and shall not include a post office box number.
25    (k) "Residential mortgage loan commitment" shall mean a
26contract for residential mortgage loan financing.

 

 

HB2927- 58 -LRB098 07544 HLH 37615 b

1    (l) "Party to a residential mortgage financing
2transaction" shall mean a borrower, lender, or loan broker in a
3residential mortgage financing transaction.
4    (m) "Payments" shall mean payment of all or any of the
5following: principal, interest and escrow reserves for taxes,
6insurance and other related reserves, and reimbursement for
7lender advances.
8    (n) "Commissioner" shall mean the Commissioner of Banks and
9Real Estate, except that, beginning on April 6, 2009 (the
10effective date of Public Act 95-1047), all references in this
11Act to the Commissioner of Banks and Real Estate are deemed, in
12appropriate contexts, to be references to the Secretary of
13Financial and Professional Regulation, or his or her designee,
14including the Director of the Division of Banking of the
15Department of Financial and Professional Regulation.
16    (n-1) "Director" shall mean the Director of the Division of
17Banking of the Department of Financial and Professional
18Regulation, except that, beginning on July 31, 2009 (the
19effective date of Public Act 96-112), all references in this
20Act to the Director are deemed, in appropriate contexts, to be
21the Secretary of Financial and Professional Regulation, or his
22or her designee, including the Director of the Division of
23Banking of the Department of Financial and Professional
24Regulation.
25    (o) "Loan brokering", "brokering", or "brokerage service"
26shall mean the act of helping to obtain from another entity,

 

 

HB2927- 59 -LRB098 07544 HLH 37615 b

1for a borrower, a loan secured by residential real estate
2situated in Illinois or assisting a borrower in obtaining a
3loan secured by residential real estate situated in Illinois in
4return for consideration to be paid by either the borrower or
5the lender including, but not limited to, contracting for the
6delivery of residential mortgage loans to a third party lender
7and soliciting, processing, placing, or negotiating
8residential mortgage loans.
9    (p) "Loan broker" or "broker" shall mean a person,
10partnership, association, corporation, or limited liability
11company, other than those persons, partnerships, associations,
12corporations, or limited liability companies exempted from
13licensing pursuant to Section 1-4, subsection (d), of this Act,
14who performs the activities described in subsections (c), (o),
15and (yy) of this Section.
16    (q) "Servicing" shall mean the collection or remittance for
17or the right or obligation to collect or remit for any lender,
18noteowner, noteholder, or for a licensee's own account, of
19payments, interests, principal, and trust items such as hazard
20insurance and taxes on a residential mortgage loan in
21accordance with the terms of the residential mortgage loan; and
22includes loan payment follow-up, delinquency loan follow-up,
23loan analysis and any notifications to the borrower that are
24necessary to enable the borrower to keep the loan current and
25in good standing. "Servicing" includes management of
26third-party entities acting on behalf of a residential mortgage

 

 

HB2927- 60 -LRB098 07544 HLH 37615 b

1licensee for the collection of delinquent payments and the use
2by such third-party entities of said licensee's servicing
3records or information, including their use in foreclosure.
4    (r) "Full service office" shall mean an office, provided by
5the licensee and not subleased from the licensee's employees,
6and staff in Illinois reasonably adequate to handle efficiently
7communications, questions, and other matters relating to any
8application for, or an existing home mortgage secured by
9residential real estate situated in Illinois with respect to
10which the licensee is brokering, funding originating,
11purchasing, or servicing. The management and operation of each
12full service office must include observance of good business
13practices such as proper signage; adequate, organized, and
14accurate books and records; ample phone lines, hours of
15business, staff training and supervision, and provision for a
16mechanism to resolve consumer inquiries, complaints, and
17problems. The Commissioner shall issue regulations with regard
18to these requirements and shall include an evaluation of
19compliance with this Section in his or her periodic examination
20of each licensee.
21    (s) "Purchasing" shall mean the purchase of conventional or
22government-insured mortgage loans secured by residential real
23estate situated in Illinois from either the lender or from the
24secondary market.
25    (t) "Borrower" shall mean the person or persons who seek
26the services of a loan broker, originator, or lender.

 

 

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1    (u) "Originating" shall mean the issuing of commitments for
2and funding of residential mortgage loans.
3    (v) "Loan brokerage agreement" shall mean a written
4agreement in which a broker or loan broker agrees to do either
5of the following:
6        (1) obtain a residential mortgage loan for the borrower
7    or assist the borrower in obtaining a residential mortgage
8    loan; or
9        (2) consider making a residential mortgage loan to the
10    borrower.
11    (w) "Advertisement" shall mean the attempt by publication,
12dissemination, or circulation to induce, directly or
13indirectly, any person to enter into a residential mortgage
14loan agreement or residential mortgage loan brokerage
15agreement relative to a mortgage secured by residential real
16estate situated in Illinois.
17    (x) "Residential Mortgage Board" shall mean the
18Residential Mortgage Board created in Section 1-5 of this Act.
19    (y) "Government-insured mortgage loan" shall mean any
20mortgage loan made on the security of residential real estate
21insured by the Department of Housing and Urban Development or
22Farmers Home Loan Administration, or guaranteed by the Veterans
23Administration.
24    (z) "Annual audit" shall mean a certified audit of the
25licensee's books and records and systems of internal control
26performed by a certified public accountant in accordance with

 

 

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1generally accepted accounting principles and generally
2accepted auditing standards.
3    (aa) "Financial institution" shall mean a savings and loan
4association, savings bank, credit union, or a bank organized
5under the laws of Illinois or a savings and loan association,
6savings bank, credit union or a bank organized under the laws
7of the United States and headquartered in Illinois.
8    (bb) "Escrow agent" shall mean a third party, individual or
9entity charged with the fiduciary obligation for holding escrow
10funds on a residential mortgage loan pending final payout of
11those funds in accordance with the terms of the residential
12mortgage loan.
13    (cc) "Net worth" shall have the meaning ascribed thereto in
14Section 3-5 of this Act.
15    (dd) "Affiliate" shall mean:
16        (1) any entity that directly controls or is controlled
17    by the licensee and any other company that is directly
18    affecting activities regulated by this Act that is
19    controlled by the company that controls the licensee;
20        (2) any entity:
21            (A) that is controlled, directly or indirectly, by
22        a trust or otherwise, by or for the benefit of
23        shareholders who beneficially or otherwise control,
24        directly or indirectly, by trust or otherwise, the
25        licensee or any company that controls the licensee; or
26            (B) a majority of the directors or trustees of

 

 

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1        which constitute a majority of the persons holding any
2        such office with the licensee or any company that
3        controls the licensee;
4        (3) any company, including a real estate investment
5    trust, that is sponsored and advised on a contractual basis
6    by the licensee or any subsidiary or affiliate of the
7    licensee.
8    The Commissioner may define by rule and regulation any
9terms used in this Act for the efficient and clear
10administration of this Act.
11    (ee) "First tier subsidiary" shall be defined by regulation
12incorporating the comparable definitions used by the Office of
13the Comptroller of the Currency and the Illinois Commissioner
14of Banks and Real Estate.
15    (ff) "Gross delinquency rate" means the quotient
16determined by dividing (1) the sum of (i) the number of
17government-insured residential mortgage loans funded or
18purchased by a licensee in the preceding calendar year that are
19delinquent and (ii) the number of conventional residential
20mortgage loans funded or purchased by the licensee in the
21preceding calendar year that are delinquent by (2) the sum of
22(i) the number of government-insured residential mortgage
23loans funded or purchased by the licensee in the preceding
24calendar year and (ii) the number of conventional residential
25mortgage loans funded or purchased by the licensee in the
26preceding calendar year.

 

 

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1    (gg) "Delinquency rate factor" means the factor set by rule
2of the Commissioner that is multiplied by the average gross
3delinquency rate of licensees, determined annually for the
4immediately preceding calendar year, for the purpose of
5determining which licensees shall be examined by the
6Commissioner pursuant to subsection (b) of Section 4-8 of this
7Act.
8    (hh) "Loan originator" means any natural person who, for
9compensation or in the expectation of compensation, either
10directly or indirectly makes, offers to make, solicits, places,
11or negotiates a residential mortgage loan. This definition
12applies only to Section 7-1 of this Act.
13    (ii) "Confidential supervisory information" means any
14report of examination, visitation, or investigation prepared
15by the Commissioner under this Act, any report of examination
16visitation, or investigation prepared by the state regulatory
17authority of another state that examines a licensee, any
18document or record prepared or obtained in connection with or
19relating to any examination, visitation, or investigation, and
20any record prepared or obtained by the Commissioner to the
21extent that the record summarizes or contains information
22derived from any report, document, or record described in this
23subsection. "Confidential supervisory information" does not
24include any information or record routinely prepared by a
25licensee and maintained in the ordinary course of business or
26any information or record that is required to be made publicly

 

 

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1available pursuant to State or federal law or rule.
2    (jj) "Mortgage loan originator" means an individual who for
3compensation or gain or in the expectation of compensation or
4gain:
5        (i) takes a residential mortgage loan application; or
6        (ii) offers or negotiates terms of a residential
7    mortgage loan.
8    "Mortgage loan originator" includes an individual engaged
9in loan modification activities as defined in subsection (yy)
10of this Section. A mortgage loan originator engaged in loan
11modification activities shall report those activities to the
12Department of Financial and Professional Regulation in the
13manner provided by the Department; however, the Department
14shall not impose a fee for reporting, nor require any
15additional qualifications to engage in those activities beyond
16those provided pursuant to this Act for mortgage loan
17originators.
18    "Mortgage loan originator" does not include an individual
19engaged solely as a loan processor or underwriter except as
20otherwise provided in subsection (d) of Section 7-1A of this
21Act.
22    "Mortgage loan originator" does not include a person or
23entity that only performs real estate brokerage activities and
24is licensed in accordance with the Real Estate License Act of
252000, unless the person or entity is compensated by a lender, a
26mortgage broker, or other mortgage loan originator, or by any

 

 

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1agent of that lender, mortgage broker, or other mortgage loan
2originator.
3    "Mortgage loan originator" does not include a person or
4entity solely involved in extensions of credit relating to
5timeshare plans, as that term is defined in Section 101(53D) of
6Title 11, United States Code.
7    (kk) "Depository institution" has the same meaning as in
8Section 3 of the Federal Deposit Insurance Act, and includes
9any credit union.
10    (ll) "Dwelling" means a residential structure or mobile
11home which contains one to 4 family housing units, or
12individual units of condominiums or cooperatives.
13    (mm) "Immediate family member" means a spouse, child,
14sibling, parent, grandparent, or grandchild, and includes
15step-parents, step-children, step-siblings, or adoptive
16relationships.
17    (nn) "Individual" means a natural person.
18    (oo) "Loan processor or underwriter" means an individual
19who performs clerical or support duties as an employee at the
20direction of and subject to the supervision and instruction of
21a person licensed, or exempt from licensing, under this Act.
22"Clerical or support duties" includes subsequent to the receipt
23of an application:
24        (i) the receipt, collection, distribution, and
25    analysis of information common for the processing or
26    underwriting of a residential mortgage loan; and

 

 

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1        (ii) communicating with a consumer to obtain the
2    information necessary for the processing or underwriting
3    of a loan, to the extent that the communication does not
4    include offering or negotiating loan rates or terms, or
5    counseling consumers about residential mortgage loan rates
6    or terms. An individual engaging solely in loan processor
7    or underwriter activities shall not represent to the
8    public, through advertising or other means of
9    communicating or providing information, including the use
10    of business cards, stationery, brochures, signs, rate
11    lists, or other promotional items, that the individual can
12    or will perform any of the activities of a mortgage loan
13    originator.
14    (pp) "Nationwide Mortgage Licensing System and Registry"
15means a mortgage licensing system developed and maintained by
16the Conference of State Bank Supervisors and the American
17Association of Residential Mortgage Regulators for the
18licensing and registration of licensed mortgage loan
19originators.
20    (qq) "Nontraditional mortgage product" means any mortgage
21product other than a 30-year fixed rate mortgage.
22    (rr) "Person" means a natural person, corporation,
23company, limited liability company, partnership, or
24association.
25    (ss) "Real estate brokerage activity" means any activity
26that involves offering or providing real estate brokerage

 

 

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1services to the public, including:
2        (1) acting as a real estate agent or real estate broker
3    for a buyer, seller, lessor, or lessee of real property;
4        (2) bringing together parties interested in the sale,
5    purchase, lease, rental, or exchange of real property;
6        (3) negotiating, on behalf of any party, any portion of
7    a contract relating to the sale, purchase, lease, rental,
8    or exchange of real property, other than in connection with
9    providing financing with respect to any such transaction;
10        (4) engaging in any activity for which a person engaged
11    in the activity is required to be registered or licensed as
12    a real estate agent or real estate broker under any
13    applicable law; or
14        (5) offering to engage in any activity, or act in any
15    capacity, described in this subsection (ss).
16    (tt) "Registered mortgage loan originator" means any
17individual that:
18        (1) meets the definition of mortgage loan originator
19    and is an employee of:
20            (A) a depository institution;
21            (B) a subsidiary that is:
22                (i) owned and controlled by a depository
23            institution; and
24                (ii) regulated by a federal banking agency; or
25            (C) an institution regulated by the Farm Credit
26        Administration; and

 

 

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1        (2) is registered with, and maintains a unique
2    identifier through, the Nationwide Mortgage Licensing
3    System and Registry.
4    (uu) "Unique identifier" means a number or other identifier
5assigned by protocols established by the Nationwide Mortgage
6Licensing System and Registry.
7    (vv) "Residential mortgage license" means a license issued
8pursuant to Section 1-3, 2-2, or 2-6 of this Act.
9    (ww) "Mortgage loan originator license" means a license
10issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act.
11    (xx) "Secretary" means the Secretary of the Department of
12Financial and Professional Regulation, or a person authorized
13by the Secretary or by this Act to act in the Secretary's
14stead.
15    (yy) "Loan modification" means, for compensation or gain,
16either directly or indirectly offering or negotiating on behalf
17of a borrower or homeowner to adjust the terms of a residential
18mortgage loan in a manner not provided for in the original or
19previously modified mortgage loan.
20    (zz) "Short sale facilitation" means, for compensation or
21gain, either directly or indirectly offering or negotiating on
22behalf of a borrower or homeowner to facilitate the sale of
23residential real estate subject to one or more residential
24mortgage loans or debts constituting liens on the property in
25which the proceeds from selling the residential real estate
26will fall short of the amount owed and the lien holders are

 

 

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1contacted to agree to release their lien on the residential
2real estate and accept less than the full amount owed on the
3debt.
4(Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10;
596-1216, eff. 1-1-11; 97-143, eff. 7-14-11; 97-891, eff.
68-3-12.)
 
7    Section 10-50. The Mobile Home Park Act is amended by
8changing Section 2.1 as follows:
 
9    (210 ILCS 115/2.1)  (from Ch. 111 1/2, par. 712.1)
10    Sec. 2.1. "Manufactured home" means a factory-assembled,
11completely integrated structure designed for permanent
12habitation, with a permanent chassis, and so constructed as to
13permit its transport, on wheels temporarily or permanently
14attached to its frame, and is a movable or portable unit that
15is (i) 8 body feet or more in width, (ii) 40 body feet or more
16in length, and (iii) 320 or more square feet, constructed to be
17towed on its own chassis (comprised of frame and wheels) from
18the place of its construction to the location, or subsequent
19locations, at which it is installed and set up according to the
20manufacturer's instructions and connected to utilities for
21year-round occupancy for use as a permanent habitation, and
22designed and situated so as to permit its occupancy as a
23dwelling place for one or more persons, and specifically
24includes a "manufactured home" as defined in subdivision (53)

 

 

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1of Section 9-102 of the Uniform Commercial Code. The term shall
2include units containing parts that may be folded, collapsed,
3or telescoped when being towed and that may be expected to
4provide additional cubic capacity, and that are designed to be
5joined into one integral unit capable of being separated again
6into the components for repeated towing. The term excludes
7campers and recreational vehicles. The term "mobile home" shall
8not include modular homes and their support systems. The words
9"mobile home" and "manufactured home" are synonymous for the
10purposes of this Act.
11(Source: P.A. 96-1477, eff. 1-1-11.)
 
12    Section 10-55. The Abandoned Mobile Home Act is amended by
13changing Section 10 as follows:
 
14    (210 ILCS 117/10)
15    Sec. 10. Definitions. As used in this Act:
16    "Manufactured home" means a factory-assembled, completely
17integrated structure designed for permanent habitation, with a
18permanent chassis, and so constructed as to permit its
19transport, on wheels temporarily or permanently attached to its
20frame, and is a movable or portable unit that is (i) 8 body
21feet or more in width, (ii) 40 body feet or more in length, and
22(iii) 320 or more square feet, constructed to be towed on its
23own chassis (comprised of frame and wheels) from the place of
24its construction to the location, or subsequent locations, at

 

 

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1which it is installed and set up according to the
2manufacturer's instructions and connected to utilities for
3year-round occupancy for use as a permanent habitation, and
4designed and situated so as to permit its occupancy as a
5dwelling place for one or more persons, and specifically
6includes a "manufactured home" as defined in subdivision (53)
7of Section 9-102 of the Uniform Commercial Code. The term shall
8include units containing parts that may be folded, collapsed,
9or telescoped when being towed and that may be expected to
10provide additional cubic capacity, and that are designed to be
11joined into one integral unit capable of being separated again
12into the components for repeated towing. The term excludes
13campers and recreational vehicles. The words "mobile home" and
14"manufactured home" are synonymous for the purposes of this
15Act.
16    "Abandoned mobile home" means a mobile home located inside
17a mobile home park that has no owner currently residing in the
18mobile home or authorized tenant of the owner currently
19residing in the mobile home to the best knowledge of the
20municipality; has had its electricity, natural gas, sewer, and
21water payments declared delinquent by the utility companies
22that are providing such services; and for which the Mobile Home
23Privilege Tax, imposed under the Mobile Home Local Services Tax
24Act, is delinquent for at least 3 months. A mobile home
25abandoned outside a mobile home park must be treated like other
26real property for condemnation purposes.

 

 

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1    "Municipality" means any city, village, incorporated town,
2or its duly authorized agent. If an abandoned mobile home is
3located in an unincorporated area, the county where the mobile
4home is located shall have all powers granted to a municipality
5under this Act.
6(Source: P.A. 96-1477, eff. 1-1-11.)
 
7    Section 10-60. The Illinois Manufactured Housing and
8Mobile Home Safety Act is amended by changing Section 2 as
9follows:
 
10    (430 ILCS 115/2)  (from Ch. 67 1/2, par. 502)
11    Sec. 2. Unless clearly indicated otherwise by the context,
12the following words and terms when used in this Act, for the
13purpose of this Act, shall have the following meanings:
14    (a) "Manufactured home" means a manufactured home as
15defined in subdivision (53) of Section 9-102 of the Uniform
16Commercial Code. "Mobile home" means a factory-assembled,
17completely integrated structure, constructed on or before June
1830, 1976, designed for permanent habitation, with a permanent
19chassis, and so constructed as to permit its transport, on
20wheels temporarily or permanently attached to its frame, that
21is a movable or portable unit that is constructed to be towed
22on its own chassis (comprised of frame and wheels) from the
23place of its construction to the location, or subsequent
24locations, at which it is connected to utilities for year-round

 

 

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1occupancy for use as a permanent habitation, and designed and
2situated so as to permit its occupancy as a dwelling place for
3one or more persons. a factory-assembled, completely
4integrated structure designed for permanent habitation, with a
5permanent chassis, and so constructed as to permit its
6transport, on wheels temporarily or permanently attached to its
7frame, and is a movable or portable unit that is (i) 8 body
8feet or more in width, (ii) 40 body feet or more in length, and
9(iii) 320 or more square feet, constructed to be towed on its
10own chassis (comprised of frame and wheels) from the place of
11its construction to the location, or subsequent locations, at
12which it is installed and set up according to the
13manufacturer's instructions and connected to utilities for
14year-round occupancy for use as a permanent habitation, and
15designed and situated so as to permit its occupancy as a
16dwelling place for one or more persons. The terms "manufactured
17home" and "mobile home" term shall include units otherwise
18meeting their respective definitions containing parts that may
19be folded, collapsed, or telescoped when being towed and that
20may be expected to provide additional cubic capacity, and that
21are designed to be joined into one integral unit capable of
22being separated again into the components for repeated towing.
23The terms "mobile home" and "manufactured home" exclude term
24excludes campers and recreational vehicles. The terms "mobile
25home" and "manufactured home" do not include modular homes or
26manufactured housing units.

 

 

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1    (b) "Person" means a person, partnership, corporation, or
2other legal entity.
3    (c) "Manufacturer" means any person who manufactures
4mobile homes or manufactured housing at the place or places,
5either on or away from the building site, at which machinery,
6equipment and other capital goods are assembled and operated
7for the purpose of making, fabricating, forming or assembling
8mobile homes or manufactured housing.
9    (d) "Department" means the Department of Public Health.
10    (e) "Director" means the Director of the Department of
11Public Health.
12    (f) "Dealer" means any person, other than a manufacturer,
13as defined in this Act, who sells 3 or more mobile homes or
14manufactured housing units in any consecutive 12-month period.
15    (g) "Codes" means the safety codes for manufactured housing
16and mobile homes promulgated by the Department. The Codes shall
17contain the standards and requirements for manufactured
18housing and mobile homes so that adequate performance for the
19intended use is made the test of acceptability. The Code of
20Standards shall permit the use of new and used technology,
21techniques, methods and materials, for both manufactured
22housing and mobile homes, consistent with recognized and
23accepted codes and standards developed by the International
24Code Council (ICC) or by the organizations that formed the ICC
25in 1994: Building Officials and Code Administrators, the
26International Conference of Building Officials, the Southern

 

 

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1Building Codes Congress International, the National Fire
2Protection Association, the International Association of
3Plumbing and Mechanical Officials, the American National
4Standards Institute, the Illinois State Plumbing Code, and the
5United States Department of Housing and Urban Development,
6hereinafter referred to as "HUD", applying to manufactured
7housing and mobile homes installed and set up according to the
8manufacturer's instructions. A copy of said safety codes,
9including said revisions thereof is on file with the
10Department.
11    (h) "Seal" means a device or insignia issued by the
12Department to be displayed on the exterior of the mobile home
13or the interior of a manufactured housing unit or modular home
14to evidence compliance with the applicable safety code.
15    (i) "Modular home" means a building assembly or system of
16building sub-assemblies, designed for habitation as a dwelling
17for one or more persons, including the necessary electrical,
18plumbing, heating, ventilating and other service systems,
19which is of closed or open construction and which is made or
20assembled by a manufacturer, on or off the building site, for
21installation, or assembly and installation, on the building
22site, installed and set up according to the manufacturer's
23instructions on an approved foundation and support system. The
24construction of modular dwelling units located in Illinois is
25regulated by the Illinois Department of Public Health.
26    (j) "Closed construction" is any building, component,

 

 

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1assembly or system manufactured in such a manner that all
2portions cannot readily be inspected at the installation site
3without disassembly, damage to, or destruction thereof.
4    (k) "Open construction" is any building, component,
5assembly or system manufactured in such a manner that all
6portions can be readily inspected at the installation site
7without disassembly, damage to, or destruction thereof.
8    (l) "Approved foundation and support system" means, for a
9modular home or modular dwelling unit, a closed perimeter
10formation consisting of materials such as concrete, mortared
11concrete block, or mortared brick extending into the ground
12below the frost line which shall include, but not necessarily
13be limited to, cellars, basements, or crawl spaces, and does
14include the use of piers supporting the marriage wall of the
15home that extend below the frost line.
16    (m) "Code compliance certificate" means the certificate
17provided by the manufacturer to the Department that warrants
18that the manufactured housing unit or mobile home complies with
19the applicable code.
20    (n) "Manufactured housing", "manufactured housing unit",
21"modular dwelling", and "modular home" shall not be confused
22with "manufactured home" or "mobile home".
23(Source: P.A. 96-1477, eff. 1-1-11.)
 
24    Section 10-65. The Manufactured Home Quality Assurance Act
25is amended by changing Section 10 as follows:
 

 

 

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1    (430 ILCS 117/10)
2    Sec. 10. Definitions. In this Act:
3    "Department" means the Illinois Department of Public
4Health.
5    "Licensed installer" means a person who has successfully
6completed a manufactured home installation course approved by
7the Department and paid the required fees.
8    "Manufactured home" means a "manufactured home", as
9defined in subdivision (53) of Section 9-102 of the Uniform
10Commercial Code. "Mobile home" means a factory-assembled,
11completely integrated structure, constructed on or before June
1230, 1976, designed for permanent habitation, with a permanent
13chassis, and so constructed as to permit its transport, on
14wheels temporarily or permanently attached to its frame, that
15is a movable or portable unit that is constructed to be towed
16on its own chassis (comprised of frame and wheels) from the
17place of its construction to the location, or subsequent
18locations, at which it is connected to utilities for year-round
19occupancy for use as a permanent habitation, and designed and
20situated so as to permit its occupancy as a dwelling place for
21one or more persons. a factory-assembled, completely
22integrated structure designed for permanent habitation, with a
23permanent chassis, and so constructed as to permit its
24transport, on wheels temporarily or permanently attached to its
25frame, and is a movable or portable unit that is (i) 8 body

 

 

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1feet or more in width, (ii) 40 body feet or more in length, and
2(iii) 320 or more square feet, constructed to be towed on its
3own chassis (comprised of frame and wheels) from the place of
4its construction to the location, or subsequent locations, at
5which it is installed and set up according to the
6manufacturer's instructions and connected to utilities for
7year-round occupancy for use as a permanent habitation, and
8designed and situated so as to permit its occupancy as a
9dwelling place for one or more persons. The terms "manufactured
10home" and "mobile home" term shall include units otherwise
11meeting their respective definitions containing parts that may
12be folded, collapsed, or telescoped when being towed and that
13may be expected to provide additional cubic capacity, and that
14are designed to be joined into one integral unit capable of
15being separated again into the components for repeated towing.
16The terms "manufactured home" and "mobile home" exclude term
17excludes campers and recreational vehicles.
18    "Manufacturer" means a manufacturer of a manufactured
19home, whether the manufacturer is located within or outside of
20the State of Illinois.
21    "Mobile home" or "manufactured home" does not include a
22modular home.
23    "Mobile home park" means a tract of land or 2 contiguous
24tracts of land that contain sites with the necessary utilities
25for 5 or more mobile homes or manufactured homes. A mobile home
26park may be operated either free of charge or for revenue

 

 

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1purposes.
2(Source: P.A. 96-1477, eff. 1-1-11.)
 
3    Section 10-70. The Illinois Vehicle Code is amended by
4changing Sections 3-100, 3-102, 3-103, 3-104, 3-106, 3-107,
53-109, 3-110, 3-116, 3-202, 3-205, 3-207, and 3-208 and by
6adding Sections 1-144.03, 3-116.1, 3-116.2, and 3-116.3 as
7follows:
 
8    (625 ILCS 5/1-144.03 new)
9    Sec. 1-144.03. Mobile home or manufactured home. A mobile
10home or manufactured home means a manufactured home as defined
11in subdivision (53) of Section 9-102 of the Uniform Commercial
12Code.
 
13    (625 ILCS 5/3-100)  (from Ch. 95 1/2, par. 3-100)
14    Sec. 3-100. Definitions. For the purposes of this Chapter,
15the following words shall have the meanings ascribed to them:
16    "Electronic" includes electrical, digital, magnetic,
17optical, electromagnetic, or any other form of technology that
18entails capabilities similar to these technologies.
19    "Electronic record" means a record generated,
20communicated, received, or stored by electronic means for use
21in an information system or for transmission from one
22information system to another.
23    "Electronic signature" means a signature in electronic

 

 

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1form attached to or logically associated with an electronic
2record.
3    "Owner" means a person who holds legal document of
4ownership of a vehicle, limited to a certificate of origin,
5certificate of title, salvage certificate, or junking
6certificate. However, in the event a vehicle is the subject of
7an agreement for the conditional sale or lease thereof with the
8right of purchase upon performance of the conditions stated in
9the agreement and with an immediate right of possession vested
10in the conditional vendee or lessee, or in the event a
11mortgagor of such vehicle is entitled to possession, then such
12conditional vendee or lessee or mortgagor shall be deemed the
13owner for the purpose of this Chapter, except as provided under
14paragraph (c) of Section 3-118.
15    "Record" means information that is inscribed, stored, or
16otherwise fixed on a tangible medium or that is stored in an
17electronic or other medium and is retrievable in perceivable
18form.
19    "Signature" or "signed" includes any symbol executed or
20adopted, or any security procedure employed or adopted, using
21electronic means or otherwise, by or on behalf of a person with
22intent to authenticate a record.
23    "Vehicle" means a vehicle as defined in Section 1-217 of
24this Code. Unless otherwise specified, "vehicle" also means a
25"manufactured home" as defined in Section 1-144.03 of this
26Code.

 

 

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1(Source: P.A. 91-79, eff. 1-1-00; 91-357, eff. 7-29-99; 91-772,
2eff. 1-1-01.)
 
3    (625 ILCS 5/3-102)  (from Ch. 95 1/2, par. 3-102)
4    Sec. 3-102. Exclusions.
5    No certificate of title need be obtained for:
6    1. A vehicle owned by the State of Illinois; or a vehicle
7owned by the United States unless it is registered in this
8State;
9    2. A vehicle owned by a manufacturer or dealer and held for
10sale, even though incidentally moved on the highway or used for
11purposes of testing or demonstration, provided a dealer
12reassignment area is still available on the manufacturer's
13certificate of origin or the Illinois title; or a vehicle used
14by a manufacturer solely for testing;
15    3. A vehicle owned by a non-resident of this State and not
16required by law to be registered in this State;
17    4. A motor vehicle regularly engaged in the interstate
18transportation of persons or property for which a currently
19effective certificate of title has been issued in another
20State;
21    5. A vehicle moved solely by animal power;
22    6. An implement of husbandry;
23    7. Special mobile equipment;
24    8. An apportionable trailer or an apportionable
25semitrailer registered in the State prior to April 1, 1998.

 

 

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1    9. A manufactured home for which an affidavit of affixation
2has been recorded pursuant to the Conveyance and Encumbrance of
3Manufactured Homes as Real Property and Severance Act unless
4with respect to the same manufactured home there has been
5recorded an affidavit of severance pursuant to that Act.
6(Source: P.A. 91-441, eff. 1-1-00.)
 
7    (625 ILCS 5/3-103)  (from Ch. 95 1/2, par. 3-103)
8    Sec. 3-103. Optional certificate of title.
9    (a) The owner of an implement of husbandry or special
10mobile equipment may apply for and obtain a certificate of
11title on it. All of the provisions of this chapter, except part
12(e) of Section 3-104, are applicable to a certificate of title
13so issued, except that a person who receives a transfer of an
14interest in the vehicle without knowledge of the certificate of
15title is not prejudiced by reason of the existence of the
16certificate, and the perfection of a security interest under
17this act is not effective until the lienholder has complied
18with the provisions of applicable law which otherwise relate to
19the perfection of security interests in personal property.
20    An application for an optional certificate of title must be
21accompanied by either an exemption determination from the
22Department of Revenue showing that no tax imposed under the
23"Use Tax Act" or the "Retailers' Occupation Tax Act" is owed by
24anyone with respect to that vehicle or by a receipt from the
25Department of Revenue showing that any tax so imposed has been

 

 

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1paid. No optional certificate of title shall be issued in the
2absence of such a receipt or exemption determination.
3    If the proof of payment or of nonliability is, after the
4issuance of the optional certificate of title, found to be
5invalid, the Secretary of State shall revoke the optional
6certificate of title and require that it be returned to him.
7    (b) The owner of a manufactured home which is permanently
8affixed to real estate and for which a certificate of title has
9not previously been issued and surrendered for cancellation may
10apply for a certificate of title, including, if applicable, a
11certificate of title issued in accordance with subsection (b)
12of Section 3-109, which shall be issued for the sole purpose of
13(i) surrendering such certificate of title for cancellation in
14accordance with Section 3-116.2 or (ii) satisfying the
15requirements of subdivision (e)(4) of Section 9-334 of the
16Uniform Commercial Code. The Secretary of State shall issue a
17certificate of title, in accordance with this Chapter, upon
18satisfaction of the application requirements of this Code.
19(Source: P.A. 78-1165.)
 
20    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)
21    Sec. 3-104. Application for certificate of title.
22    (a) The application for a certificate of title for a
23vehicle in this State must be made by the owner to the
24Secretary of State on the form prescribed and must contain:
25        1. The name, Illinois residence and mail address of the

 

 

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1    owner;
2        2. A description of the vehicle including, so far as
3    the following data exists: Its make, year-model,
4    identifying number, type of body, whether new or used, as
5    to house trailers as defined in Section 1-128 of this
6    Code,and as to manufactured homes as defined in Section
7    1-144.03 of this Code, the square footage of the house
8    trailer based upon the outside dimensions of the house
9    trailer excluding the length of the tongue and hitch, and,
10    as to vehicles of the second division, whether for-hire,
11    not-for-hire, or both for-hire and not-for-hire;
12        3. The date of purchase by applicant and, if
13    applicable, the name and address of the person from whom
14    the vehicle was acquired and the names and addresses of any
15    lienholders in the order of their priority and signatures
16    of owners;
17        4. The current odometer reading at the time of transfer
18    and that the stated odometer reading is one of the
19    following: actual mileage, not the actual mileage or
20    mileage is in excess of its mechanical limits; and
21        5. Any further information the Secretary of State
22    reasonably requires to identify the vehicle and to enable
23    him to determine whether the owner is entitled to a
24    certificate of title and the existence or nonexistence of
25    security interests in the vehicle.
26    (a-5) The Secretary of State shall designate on the

 

 

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1prescribed application form a space where the owner of a
2vehicle may designate a beneficiary, to whom ownership of the
3vehicle shall pass in the event of the owner's death.
4    (b) If the application refers to a vehicle purchased from a
5dealer, it must also be signed by the dealer as well as the
6owner, and the dealer must promptly mail or deliver the
7application and required documents to the Secretary of State.
8    (c) If the application refers to a vehicle last previously
9registered in another State or country, the application must
10contain or be accompanied by:
11        1. Any certified document of ownership so recognized
12    and issued by the other State or country and acceptable to
13    the Secretary of State, and
14        2. Any other information and documents the Secretary of
15    State reasonably requires to establish the ownership of the
16    vehicle and the existence or nonexistence of security
17    interests in it.
18    (d) If the application refers to a new vehicle it must be
19accompanied by the Manufacturer's Statement of Origin, or other
20documents as required and acceptable by the Secretary of State,
21with such assignments as may be necessary to show title in the
22applicant.
23    (e) If an application refers to a vehicle rebuilt from a
24vehicle previously salvaged, that application shall comply
25with the provisions set forth in Sections 3-302 through 3-304
26of this Code.

 

 

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1    (f) An application for a certificate of title for any
2vehicle, whether purchased in Illinois or outside Illinois, and
3even if previously registered in another State, must be
4accompanied by either an exemption determination from the
5Department of Revenue showing that no tax imposed pursuant to
6the Use Tax Act or the vehicle use tax imposed by Section
73-1001 of the Illinois Vehicle Code is owed by anyone with
8respect to that vehicle, or a receipt from the Department of
9Revenue showing that any tax so imposed has been paid. An
10application for a certificate of title for any vehicle
11purchased outside Illinois, even if previously registered in
12another state, must be accompanied by either an exemption
13determination from the Department of Revenue showing that no
14tax imposed pursuant to the Municipal Use Tax Act or the County
15Use Tax Act is owed by anyone with respect to that vehicle, or
16a receipt from the Department of Revenue showing that any tax
17so imposed has been paid. In the absence of such a receipt for
18payment or determination of exemption from the Department, no
19certificate of title shall be issued to the applicant.
20    If the proof of payment of the tax or of nonliability
21therefor is, after the issuance of the certificate of title and
22display certificate of title, found to be invalid, the
23Secretary of State shall revoke the certificate and require
24that the certificate of title and, when applicable, the display
25certificate of title be returned to him.
26    (g) If the application refers to a vehicle not manufactured

 

 

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1in accordance with federal safety and emission standards, the
2application must be accompanied by all documents required by
3federal governmental agencies to meet their standards before a
4vehicle is allowed to be issued title and registration.
5    (h) If the application refers to a vehicle sold at public
6sale by a sheriff, it must be accompanied by the required fee
7and a bill of sale issued and signed by a sheriff. The bill of
8sale must identify the new owner's name and address, the year
9model, make and vehicle identification number of the vehicle,
10court order document number authorizing such sale, if
11applicable, and the name and address of any lienholders in
12order of priority, if applicable.
13    (i) If the application refers to a vehicle for which a
14court of law determined the ownership, it must be accompanied
15with a certified copy of such court order and the required fee.
16The court order must indicate the new owner's name and address,
17the complete description of the vehicle, if known, the name and
18address of the lienholder, if any, and must be signed and dated
19by the judge issuing such order.
20    (j) If the application refers to a vehicle sold at public
21auction pursuant to the Labor and Storage Lien (Small Amount)
22Act, it must be accompanied by an affidavit or affirmation
23furnished by the Secretary of State along with the documents
24described in the affidavit or affirmation and the required fee.
25    (k) The Secretary may provide an expedited process for the
26issuance of vehicle titles. Expedited title applications must

 

 

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1be delivered to the Secretary of State's Vehicle Services
2Department in Springfield by express mail service or hand
3delivery. Applications must be complete, including necessary
4forms, fees, and taxes. Applications received before noon on a
5business day will be processed and shipped that same day.
6Applications received after noon on a business day will be
7processed and shipped the next business day. The Secretary
8shall charge an additional fee of $30 for this service, and
9that fee shall cover the cost of return shipping via an express
10mail service. All fees collected by the Secretary of State for
11expedited services shall be deposited into the Motor Vehicle
12License Plate Fund. In the event the Vehicle Services
13Department determines that the volume of expedited title
14requests received on a given day exceeds the ability of the
15Vehicle Services Department to process those requests in an
16expedited manner, the Vehicle Services Department may decline
17to provide expedited services, and the additional fee for the
18expedited service shall be refunded to the applicant.
19    (l) If the application refers to a homemade trailer, (i) it
20must be accompanied by the appropriate documentation regarding
21the source of materials used in the construction of the
22trailer, as required by the Secretary of State, (ii) the
23trailer must be inspected by a Secretary of State employee
24prior to the issuance of the title, and (iii) upon approval of
25the Secretary of State, the trailer must have a vehicle
26identification number, as provided by the Secretary of State,

 

 

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1stamped or riveted to the frame.
2    (m) The holder of a Manufacturer's Statement of Origin to a
3manufactured home may deliver it to any person to facilitate
4conveying or encumbering the manufactured home. Any person
5receiving any such Manufacturer's Statement of Origin so
6delivered holds it in trust for the person delivering it.
7    (n) Within 45 days after the completion of the first retail
8sale of a manufactured home, the Manufacturer's Statement of
9Origin to that manufactured home must be surrendered to the
10Secretary of State either in conjunction with an application
11for a certificate of title for that manufactured home or in
12accordance with Section 3-116.1.
13(Source: P.A. 96-519, eff. 1-1-10; 96-554, eff. 1-1-10;
1496-1000, eff. 7-2-10; 97-918, eff. 1-1-13.)
 
15    (625 ILCS 5/3-106)  (from Ch. 95 1/2, par. 3-106)
16    Sec. 3-106. Certificate of title - Issuance - Records. (a)
17The Secretary of State shall file each application received
18and, when satisfied as to its genuineness and regularity, and
19that no tax imposed by the "Use Tax Act" or the vehicle use
20tax, as imposed by Section 3-1001 of "The Illinois Vehicle
21Code", or pursuant to the "Municipal Use Tax Act" or pursuant
22to the "County Use Tax Act" is owed as evidenced by the receipt
23for payment or determination of exemption from the Department
24of Revenue provided for in Section 3-104 of this Act, and that
25the applicant is entitled to the issuance of a certificate of

 

 

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1title, shall issue a certificate of title of the vehicle.
2    (b) The Secretary of State shall maintain a record of all
3certificates of title issued by him under a distinctive title
4number assigned to the vehicle; and, in the discretion of the
5Secretary of State, in any other method determined.
6    (c) The Secretary of State shall not issue a certificate of
7title, including a certificate of title issued in accordance
8with subsection (b) of Section 3-109, to a manufactured home
9for which there has been recorded an affidavit of affixation
10pursuant to the Conveyance and Encumbrance of Manufactured
11Homes as Real Property and Severance Act unless with respect to
12the same manufactured home there has been recorded an affidavit
13of severance pursuant to the Conveyance and Encumbrance of
14Manufactured Homes as Real Property and Severance Act.
15    (d) The Secretary of State shall file, upon receipt, each
16affidavit of affixation and each affidavit of severance
17relating to a manufactured home that is delivered in accordance
18with the Conveyance and Encumbrance of Manufactured Homes as
19Real Property and Severance Act, when satisfied as to its
20genuineness and regularity.
21    (e) The Secretary of State shall maintain a record of each
22affidavit of affixation and each affidavit of severance filed
23in accordance with subsection (d) of this Section. The record
24shall state the name of the owner of the related manufactured
25home, the name of manufacturer, make, model name, model year,
26vehicle identification number, and any other data the Secretary

 

 

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1of State prescribes.
2    (f) The Secretary of State shall file, upon receipt, each
3application for surrender of the Manufacturer's Statement of
4Origin relating to a manufactured home that is delivered in
5accordance with Section 3-116.1, when satisfied as to its
6genuineness and regularity.
7    (g) The Secretary of State shall file, upon receipt, each
8application for surrender of the certificate of title relating
9to a manufactured home that is delivered in accordance with
10Section 3-116.2, when satisfied as to its genuineness and
11regularity.
12    (h) The Secretary of State shall maintain a record,
13including a record in the form of a searchable electronic
14database accessible to the public, of each Manufacturer's
15Statement of Origin accepted for surrender as provided in
16Section 3-116.1. The record shall state the date the
17Manufacturer's Statement of Origin was accepted for surrender,
18the name of manufacturer, make, model name, model year, vehicle
19identification number, and any other data the Secretary of
20State prescribes.
21    (i) The Secretary of State shall maintain a record,
22including a record in the form of a searchable electronic
23database accessible to the public, of each manufactured home
24certificate of title accepted for surrender as provided in
25Section 3-116.2. The record shall state the date the
26certificate of title was accepted for surrender, the name of

 

 

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1manufacturer, make, model name, model year, vehicle
2identification number, and any other data the Secretary of
3State prescribes.
4(Source: P.A. 86-444.)
 
5    (625 ILCS 5/3-107)  (from Ch. 95 1/2, par. 3-107)
6    Sec. 3-107. Contents and effect.
7    (a) Each certificate of title issued by the Secretary of
8State shall contain:
9        1. the date issued;
10        2. the name and address of the owner;
11        3. the names and addresses of any lienholders, in the
12    order of priority as shown on the application or, if the
13    application is based on a certificate of title, as shown on
14    the certificate;
15        4. the title number assigned to the vehicle;
16        5. a description of the vehicle including, so far as
17    the following data exists: its make, year-model,
18    identifying number, type of body, whether new or used, as
19    to house trailers as defined in Section 1-128 of this Code,
20    and as to manufactured homes as defined in Section 1-144.03
21    of this Code, the square footage of the vehicle based upon
22    the outside dimensions of the house trailer excluding the
23    length of the tongue and hitch, and, if a new vehicle, the
24    date of the first sale of the vehicle for use;
25        6. an odometer certification as provided for in this

 

 

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1    Code; and
2        7. any other data the Secretary of State prescribes.
3    (a-5) In the event the applicant seeks to have the vehicle
4titled as a custom vehicle or street rod, that fact must be
5stated in the application. The custom vehicle or street rod
6must be inspected as required by Section 3-406 of this Code
7prior to issuance of the title. Upon successful completion of
8the inspection, the vehicle may be titled in the following
9manner. The make of the vehicle shall be listed as the make of
10the actual vehicle or the make it is designed to resemble
11(e.g., Ford or Chevrolet); the model of the vehicle shall be
12listed as custom vehicle or street rod; and the year of the
13vehicle shall be listed as the year the actual vehicle was
14manufactured or the year it is designed to resemble. A vehicle
15previously titled as other than a custom vehicle or street rod
16may be issued a corrected title reflecting the custom vehicle
17or street rod model if it otherwise meets the requirements for
18the designation.
19    (b) The certificate of title shall contain forms for
20assignment and warranty of title by the owner, and for
21assignment and warranty of title by a dealer, and may contain
22forms for applications for a certificate of title by a
23transferee, the naming of a lienholder and the assignment or
24release of the security interest of a lienholder.
25    (b-5) The Secretary of State shall designate on a
26certificate of title a space where the owner of a vehicle may

 

 

HB2927- 95 -LRB098 07544 HLH 37615 b

1designate a beneficiary, to whom ownership of the vehicle shall
2pass in the event of the owner's death.
3    (c) A certificate of title issued by the Secretary of State
4is prima facie evidence of the facts appearing on it.
5    (d) A certificate of title for a vehicle is not subject to
6garnishment, attachment, execution or other judicial process,
7but this subsection does not prevent a lawful levy upon the
8vehicle.
9    (e) Any certificate of title issued by the Secretary of
10State is subject to a lien in favor of the State of Illinois
11for any fees or taxes required to be paid under this Act and as
12have not been paid, as provided for in this Code.
13    (f) Notwithstanding any other provision of law, a
14certificate of title issued by the Secretary of State to a
15manufactured home is prima facie evidence of the facts
16appearing on it, notwithstanding the fact that such
17manufactured home, at any time, shall have become affixed in
18any manner to real property.
19(Source: P.A. 95-784, eff. 1-1-09; 96-487, eff. 1-1-10.)
 
20    (625 ILCS 5/3-109)  (from Ch. 95 1/2, par. 3-109)
21    Sec. 3-109. Registration without certificate of title;
22bond. If the Secretary of State is not satisfied as to the
23ownership of the vehicle, including but not limited to, in the
24case of a manufactured home, a circumstance in which the
25manufactured home is covered by a Manufacturer's Statement of

 

 

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1Origin that the owner of the manufactured home, after diligent
2search and inquiry, is unable to produce, or that there are no
3undisclosed security interests in it, the Secretary of State
4may register the vehicle but shall either:
5    (a) Withhold issuance of a certificate of title until the
6applicant presents documents reasonably sufficient to satisfy
7the Secretary of State as to the applicant's ownership of the
8vehicle and that there are no undisclosed security interests in
9it; or
10    (b) As a condition of issuing a certificate of title,
11require the applicant to file with the Secretary of State a
12bond in the form prescribed by the Secretary of State and
13executed by the applicant, and either accompanied by the
14deposit of cash with the Secretary of State or also executed by
15a person authorized to conduct a surety business in this State.
16The bond shall be in an amount equal to one and one-half times
17the value of the vehicle as determined by the Secretary of
18State and conditioned to indemnify any prior owner and
19lienholder and any subsequent purchaser of the vehicle or
20person acquiring any security interest in it, and their
21respective successors in interest, against any expense, loss or
22damage, including reasonable attorney's fees, by reason of the
23issuance of the certificate of title of the vehicle or on
24account of any defect in or undisclosed security interest upon
25the right, title and interest of the applicant in and to the
26vehicle. Any such interested person has a right of action to

 

 

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1recover on the bond for any breach of its conditions, but the
2aggregate liability of the surety to all persons shall not
3exceed the amount of the bond. The bond, and any deposit
4accompanying it, shall be returned at the end of three (3)
5years or prior thereto if (i) the vehicle is no longer
6registered in this State and the currently valid certificate of
7title is surrendered to the Secretary of State or (ii), in the
8case of a certificate of title to a manufactured home, the
9currently valid certificate of title is surrendered to the
10Secretary of State in accordance with Section 3-116.2, unless
11the Secretary of State has been notified of the pendency of an
12action to recover on the bond.
13    Security deposited as a bond hereunder shall be placed by
14the Secretary of State in the custody of the State Treasurer.
15    (c) During July, annually, the Secretary shall compile a
16list of all bonds on deposit, pursuant to this Section, for
17more than 3 years and concerning which he has received no
18notice as to the pendency of any judicial proceeding that could
19affect the disposition thereof. Thereupon, he shall promptly
20send a notice by certified mail to the last known address of
21each depositor advising him that his bond will be subject to
22escheat to the State of Illinois if not claimed within 30 days
23after the mailing date of such notice. At the expiration of
24such time, the Secretary of State shall file with the State
25Treasurer an order directing the transfer of such deposit to
26the Road Fund in the State Treasury. Upon receipt of such

 

 

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1order, the State Treasurer shall make such transfer, after
2converting to cash any other type of security. Thereafter any
3person having a legal claim against such deposit may enforce it
4by appropriate proceedings in the Court of Claims subject to
5the limitations prescribed for such Court. At the expiration of
6such limitation period such deposit shall escheat to the State
7of Illinois.
8(Source: P.A. 81-1458.)
 
9    (625 ILCS 5/3-110)  (from Ch. 95 1/2, par. 3-110)
10    Sec. 3-110. Refusing certificate of title. The Secretary of
11State shall refuse issuance of a certificate of title if any
12required fee is not paid or if he has reasonable grounds to
13believe that:
14        (a) the applicant is not the owner of the vehicle;
15        (b) the application contains a false or fraudulent
16    statement;
17        (c) the applicant fails to furnish required
18    information or documents or any additional information the
19    Secretary of State reasonably requires; or
20        (d) the applicant has not paid to the Secretary of
21    State any fees or taxes due under this Act and have not
22    been paid upon reasonable notice and demand.
23    Except as provided in Section 3-116.2, the Secretary of
24State shall not refuse to issue a certificate of title to a
25manufactured home by reason of the fact that, at any time, in

 

 

HB2927- 99 -LRB098 07544 HLH 37615 b

1any manner, it shall have been affixed to real property.
2(Source: P.A. 97-333, eff. 8-12-11.)
 
3    (625 ILCS 5/3-116)  (from Ch. 95 1/2, par. 3-116)
4    Sec. 3-116. When Secretary of State to issue a certificate
5of title.
6    (a) The Secretary of State, upon receipt of a properly
7assigned certificate of title, with an application for a
8certificate of title, the required fee and any other documents
9required by law, shall issue a new certificate of title in the
10name of the transferee as owner and mail it to the first
11lienholder named in it or, if none, to the owner or owner's
12designee.
13    (b) The Secretary of State, upon receipt of an application
14for a new certificate of title by a transferee other than by
15voluntary transfer, with proof of the transfer, the required
16fee and any other documents required by law, shall issue a new
17certificate of title in the name of the transferee as owner.
18    (c) Any person, firm or corporation, who shall knowingly
19possess, buy, sell, exchange or give away, or offer to buy,
20sell, exchange or give away the certificate of title to any
21motor vehicle which is a junk or salvage, or who shall fail to
22surrender the certificate of title to the Secretary of State as
23required under the provisions of this Section and Section
243-117.2, shall be guilty of Class 3 felony.
25    (d) The Secretary of State shall file and retain for four

 

 

HB2927- 100 -LRB098 07544 HLH 37615 b

1(4) years a record of every surrendered certificate of title or
2proof of ownership accepted by the Secretary of State, the file
3to be maintained so as to permit the tracing of title of the
4vehicle designated therein. Such filing and retention
5requirements shall be in addition to and not in substitution
6for the recordkeeping requirements set forth in Section 3-106
7of this Code, which recordkeeping requirements are not limited
8to any period of time.
9    (e) The Secretary of State, upon receipt of an application
10for corrected certificate of title, with the original title,
11the required fee and any other required documents, shall issue
12a corrected certificate of title in the name of the owner and
13mail it to the first lienholder named in it or, if none, to the
14owner or owner's designee.
15    (f) The Secretary of State, upon receipt of a certified
16copy of a court order awarding ownership to an applicant along
17with an application for a certificate of title and the required
18fee, shall issue a certificate of title to the applicant.
19(Source: P.A. 90-212, eff. 1-1-98.)
 
20    (625 ILCS 5/3-116.1 new)
21    Sec. 3-116.1. Surrender of Manufacturer's Statement of
22Origin to a manufactured home.
23    (a) The owner (all, if more than one) of a manufactured
24home that is covered by a Manufacturer's Statement of Origin
25and that is permanently affixed to real property as defined in

 

 

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1the Conveyance and Encumbrance of Manufactured Homes as Real
2Property and Severance Act, or which the owner intends to
3permanently affix to real property as defined in the Conveyance
4and Encumbrance of Manufactured Homes as Real Property and
5Severance Act, may surrender the Manufacturer's Statement of
6Origin to the manufactured home to the Secretary of State by
7filing with the Secretary of State an application for surrender
8of Manufacturer's Statement of Origin containing or
9accompanied by:
10            (1) the name, residence, and mailing address of the
11    owner;
12            (2) a description of the manufactured home
13    including the name of the manufacturer, the make, the model
14    name, the model year, the dimensions, and the vehicle
15    identification number of the manufactured home and whether
16    it is new or used, and any other information the Secretary
17    of State requires;
18            (3) the date of purchase by the owner of the
19    manufactured home, the name and address of the person from
20    whom the home was acquired, and the names and addresses of
21    any security interest holders and lienholders in the order
22    of their apparent priority;
23            (4) a statement signed by the owner, stating either
24    (i) any facts or information known to the owner that could
25    reasonably affect the validity of the title to the
26    manufactured home or the existence or non-existence of a

 

 

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1    security interest in or lien on it or (ii) that no such
2    facts or information are known to the owner;
3            (5) a certified copy of the affidavit of affixation
4    in accordance with the Conveyance and Encumbrance of
5    Manufactured Homes as Real Property and Severance Act;
6            (6) the original Manufacturer's Statement of
7    Origin;
8            (7) the name and mailing address of each owner of
9    the manufactured home or such owner's designee wishing to
10    receive written acknowledgment of surrender from the
11    Secretary of State; and
12            (8) any other information and documents the
13    Secretary of State reasonably requires to identify the
14    owner of the manufactured home and to enable him or her to
15    determine whether the owner satisfied the requirements of
16    the Conveyance and Encumbrance of Manufactured Homes as
17    Real Property and Severance Act and is entitled to
18    surrender the Manufacturer's Statement of Origin, and the
19    existence or non-existence of security interests in or
20    liens on the manufactured home.
21    (b) When satisfied as to the genuineness and regularity of
22the surrender of a Manufacturer's Statement of Origin to a
23manufactured home, payment of any applicable fees and upon
24satisfaction of the requirements of subsection (a) of this
25Section, the Secretary of State shall (i) cancel the
26Manufacturer's Statement of Origin and update his or her

 

 

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1records in accordance with the provisions of Section 3-106 and
2(ii) provide written acknowledgment of compliance with the
3provisions of this Section to each person identified on the
4application for surrender of Manufacturer's Statement of
5Origin pursuant to subsection (a)(7) of this Section.
6    (c) Upon satisfaction of the requirements of this Section,
7a manufactured home shall be conveyed and encumbered as
8provided in the Conveyance and Encumbrance of Manufactured
9Homes as Real Property and Severance Act. If the application to
10surrender a Manufacturer's Statement of Origin is delivered to
11the Secretary of State within 60 days of recording the related
12affidavit of affixation with the recording officer in the
13county in which the real property to which the manufactured
14home is or shall be affixed and the application is thereafter
15accepted by the Secretary of State, the requirements of this
16Section shall be deemed satisfied as of the date the affidavit
17of affixation is recorded.
18    (d) Upon written request by a person identified on the
19application for surrender of Manufacturer's Statement of
20Origin pursuant to subsection (a)(7) of this Section, the
21Secretary of State shall provide written acknowledgment of
22compliance with the provisions of this Section.
 
23    (625 ILCS 5/3-116.2 new)
24    Sec. 3-116.2. Application for surrender of title.
25    (a) The owner (all, if more than one) of a manufactured

 

 

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1home that is covered by a certificate of title, including, if
2applicable, a certificate of title issued in accordance with
3subsection (b) of Section 3-109, and that is permanently
4affixed to real property as defined in the Conveyance and
5Encumbrance of Manufactured Homes as Real Property and
6Severance Act, or which the owner intends to permanently affix
7to real property as defined in the Conveyance and Encumbrance
8of Manufactured Homes as Real Property and Severance Act, may
9surrender the certificate of title to the manufactured home to
10the Secretary of State by filing with the Secretary of State an
11application for surrender of title containing or accompanied
12by:
13        (1) the name, residence, and mailing address of the
14    owner;
15        (2) a description of the manufactured home including
16    the name of the manufacturer, the make, the model name, the
17    model year, the dimensions, and the vehicle identification
18    number or numbers of the manufactured home and whether it
19    is new or used and any other information the Secretary of
20    State requires;
21        (3) the date of purchase by the owner of the
22    manufactured home, the name and address of the person from
23    whom the home was acquired and the names and addresses of
24    any security interest holders and lienholders in the order
25    of their apparent priority;
26        (4) a statement signed by the owner, stating either,

 

 

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1    (i) any facts or information known to the owner that could
2    reasonably affect the validity of the title to the
3    manufactured home or the existence or non-existence of a
4    security interest in or lien on it; or (ii) that no such
5    facts or information are known to the owner;
6        (5) a certified copy of the affidavit of affixation in
7    accordance with the Conveyance and Encumbrance of
8    Manufactured Homes as Real Property and Severance Act;
9        (6) the original certificate of title;
10        (7) the name and mailing address of each owner of the
11    manufactured home or such owner's designee wishing written
12    acknowledgment of surrender from the Secretary of State;
13        (8) a release of security interests (if any) pursuant
14    to Section 3-205 of this Code; and
15        (9) any other information and documents the Secretary
16    of State reasonably requires to identify the owner of the
17    manufactured home and to enable him or her to determine
18    whether the owner satisfied the requirements of the
19    Conveyance and Encumbrance of Manufactured Homes as Real
20    Property and Severance Act and is entitled to surrender the
21    certificate of title and the existence or non-existence of
22    security interests in or liens on the manufactured home.
23    (b) The Secretary of State shall not accept for surrender a
24certificate of title to a manufactured home unless and until
25all security interests or liens perfected pursuant to Sections
263-106 and 3-202 have been released.

 

 

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1    (c) When satisfied as to the genuineness and regularity of
2the surrender of a certificate of title to a manufactured home,
3payment of any applicable fees and upon satisfaction of the
4requirements of subsections (a) and (b) of this Section, the
5Secretary of State shall (i) cancel the certificate of title
6and update his or her records in accordance with the provisions
7of Section 3-106 and (ii) provide written acknowledgment of
8compliance with the provisions of this Section to each person
9identified on the application for surrender of title pursuant
10to subsection (a)(7) of this Section.
11    (d) Upon satisfaction of the requirements of this Section,
12a manufactured home shall be conveyed and encumbered as
13provided in the Conveyance and Encumbrance of Manufactured
14Homes as Real Property and Severance Act. If the application to
15surrender a certificate of title is delivered to the Secretary
16of State within 60 days of recording the related affidavit of
17affixation with the recording officer in the county in which
18the real property to which the manufactured home is or shall be
19affixed, and the application is thereafter accepted by the
20Secretary of State, the requirements of this Section shall be
21deemed satisfied as of the date the affidavit of affixation is
22recorded.
23    (e) Upon written request by a person identified on the
24application for surrender of title pursuant to subsection
25(a)(7) of this Section, the Secretary of State shall provide
26written acknowledgment of compliance with the provisions of

 

 

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1this Section.
 
2    (625 ILCS 5/3-116.3 new)
3    Sec. 3-116.3. Application for a certificate of title to a
4severed manufactured home.
5    (a) Notwithstanding any other provision of law, where a
6manufactured home has been permanently affixed to real
7property, and an affidavit of affixation has been recorded as
8part of the real property records in the county in which the
9manufactured home is located in accordance with the Conveyance
10and Encumbrance of Manufactured Homes as Real Property and
11Severance Act, and where the manufactured home subsequently is
12detached or severed from the real property, the owner (all, if
13more than one) of the manufactured home shall, unless exempted
14by other provisions of this Code, apply for a new certificate
15of title by filing with the Secretary of State an application
16for a certificate of title to a manufactured home, to be issued
17in accordance with subsection (b) of Section 3-109, containing
18or accompanied by:
19        (1) the name, residence, and mailing address of the
20    owner;
21        (2) a description of the manufactured home, including
22    the name of the manufacturer, the make, the model name, the
23    model year, the dimensions, and the vehicle identification
24    number or numbers of the manufactured home and whether it
25    is new or used, and any other information the Secretary of

 

 

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1    State requires;
2        (3) a statement signed by the applicant, stating
3    either: (i) any facts or information known to the applicant
4    that could reasonably affect the validity of the title of
5    the manufactured home or the existence or non-existence of
6    any security interest in or lien on it or (ii) that no such
7    facts or information are known to the applicant;
8        (4) a certified copy of the affidavit of severance
9    provided in accordance with the Conveyance and Encumbrance
10    of Manufactured Homes as Real Property and Severance Act;
11    and
12        (5) any other information and documents the Secretary
13    of State reasonably requires.
14    (b) Upon satisfaction of the requirements of subsection (a)
15of this Section and subsection (b) of Section 3-109, the
16Secretary of State shall issue a new certificate of title
17pursuant to subsection (b) of Section 3-109 and update his or
18her records in accordance with the provisions of Section 3-106.
19    (c) Immediately upon satisfaction of the requirements of
20this Section and thereafter, a manufactured home shall be
21conveyed and encumbered as personal property.
22    (d) The satisfaction of the requirements of this Section
23with respect to a manufactured home shall have no effect on the
24manner in which such manufactured home is taxed pursuant to the
25Property Tax Code or the Mobile Home Local Services Tax Act.
 

 

 

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1    (625 ILCS 5/3-202)  (from Ch. 95 1/2, par. 3-202)
2    Sec. 3-202. Perfection of security interest.
3    (a) Unless excepted by Section 3-201, a security interest
4in a vehicle of a type for which a certificate of title is
5required is not valid against subsequent transferees or
6lienholders of the vehicle unless perfected as provided in this
7Act. A purchase money security interest in a manufactured home
8is perfected against the rights of judicial lien creditors and
9execution creditors on and after the date such purchase money
10security interest attaches.
11    (b) A security interest is perfected by the delivery to the
12Secretary of State of the existing certificate of title, if
13any, an application for a certificate of title containing the
14name and address of the lienholder and the required fee. The
15security interest is perfected as of the time of its creation
16if the delivery to the Secretary of State is completed within
1730 days after the creation of the security interest or receipt
18by the new lienholder of the existing certificate of title from
19a prior lienholder or licensed dealer, otherwise as of the time
20of the delivery.
21    (c) If a vehicle is subject to a security interest when
22brought into this State, the validity of the security interest
23is determined by the law of the jurisdiction where the vehicle
24was when the security interest attached, subject to the
25following:
26        1. If the parties understood at the time the security

 

 

HB2927- 110 -LRB098 07544 HLH 37615 b

1    interest attached that the vehicle would be kept in this
2    State and it was brought into this State within 30 days
3    thereafter for purposes other than transportation through
4    this State, the validity of the security interest in this
5    State is determined by the law of this State.
6        2. If the security interest was perfected under the law
7    of the jurisdiction where the vehicle was when the security
8    interest attached, the following rules apply:
9            (A) If the name of the lienholder is shown on an
10        existing certificate of title issued by that
11        jurisdiction, his security interest continues
12        perfected in this State.
13            (B) If the name of the lienholder is not shown on
14        an existing certificate of title issued by that
15        jurisdiction, a security interest may be perfected by
16        the lienholder delivering to the Secretary of State the
17        prescribed notice and by payment of the required fee.
18        Such security interest is perfected as of the time of
19        delivery of the prescribed notice and payment of the
20        required fee.
21        3. If the security interest was not perfected under the
22    law of the jurisdiction where the vehicle was when the
23    security interest attached, it may be perfected in this
24    State; in that case perfection dates from the time of
25    perfection in this State.
26        4. A security interest may be perfected under paragraph

 

 

HB2927- 111 -LRB098 07544 HLH 37615 b

1    3 of this subsection either as provided in subsection (b)
2    or by the lienholder delivering to the Secretary of State a
3    notice of security interest in the form the Secretary of
4    State prescribes and the required fee.
5    (d) Except as otherwise provided in Sections 3-116.1,
63-116.2, 3-207, and the Conveyance and Encumbrance of
7Manufactured Homes as Real Property and Severance Act, after a
8certificate of title has been issued for a manufactured home
9and as long as the manufactured home is subject to any security
10interest perfected pursuant to this Section, the Secretary of
11State shall not file an affidavit of affixation, nor cancel the
12Manufacturer's Statement of Origin, nor revoke the certificate
13of title, nor issue a certificate of title under Section 3-106,
14and, in any event, the validity and priority of any security
15interest perfected pursuant to this Section shall continue,
16notwithstanding the provision of any other law.
17(Source: P.A. 95-284, eff. 1-1-08.)
 
18    (625 ILCS 5/3-205)  (from Ch. 95 1/2, par. 3-205)
19    Sec. 3-205. Release of security interest.
20    (a) Within 21 days after receiving payment to satisfy a
21security interest in a vehicle for which the certificate of
22title is in the possession of the lienholder, he shall execute
23a release of his security interest, and mail or deliver the
24certificate and release to the next lienholder named therein,
25or, if none, to the owner or any person who delivers to the

 

 

HB2927- 112 -LRB098 07544 HLH 37615 b

1lienholder an authorization from the owner to receive the
2certificate. If the payment is in the form of cash, a cashier's
3check, or a certified check, the number of days is reduced to
410 business days. If the owner desires a new certificate
5reflecting no lien, the certificate and release from the
6lienholder may be submitted to the Secretary of State, along
7with the prescribed application and required fee, for issuance
8of that new certificate.
9    (b) Within 21 days after receiving payment to satisfy a
10security interest in a vehicle for which the certificate of
11title is in the possession of a prior lienholder, the
12lienholder whose security interest is satisfied shall execute a
13release and deliver the release to the owner or any person who
14delivers to the lienholder an authorization from the owner to
15receive it. If the payment is in the form of cash, a cashier's
16check, or a certified check, the number of days is reduced to
1710 business days. The lienholder in possession of the
18certificate of title may either deliver the certificate to the
19owner, or the person authorized by him, for delivery to the
20Secretary of State, or, upon receipt of the release, may mail
21or may deliver the certificate and release, along with
22prescribed application and require fee, to the Secretary of
23State, who shall issue a new certificate.
24    (c) In addition to any other penalty, a lienholder who
25fails to execute a release of his or her security interest or
26who fails to mail or deliver the certificate and release within

 

 

HB2927- 113 -LRB098 07544 HLH 37615 b

1the time limit provided in subsection (a) or (b) is liable to
2the person or entity that was supposed to receive the release
3or certificate for $150 plus reasonable attorney fees and court
4costs. An action under this Section may be brought in small
5claims court or in any other appropriate court.
6    (d) The holder of a security interest in or a lien on a
7manufactured home may deliver lien release documents to any
8person to facilitate conveying or encumbering the manufactured
9home. Any person receiving any such documents so delivered
10holds the documents in trust for the security interest holder
11or the lienholder.
12(Source: P.A. 93-621, eff. 12-15-03.)
 
13    (625 ILCS 5/3-207)  (from Ch. 95 1/2, par. 3-207)
14    Sec. 3-207. Exclusiveness of procedure.
15    The method provided in this act of perfecting and giving
16notice of security interests subject to this act is exclusive.
17Security interests subject to this act are hereby exempted from
18the provisions of law which otherwise require or relate to the
19recording or filing of instruments creating or evidencing
20security interests in vehicles including chattel mortgages and
21conditional sale agreements, provided, however, that with
22respect to a manufactured home that is or will be permanently
23affixed to real property, upon recordation of an affidavit of
24affixation pursuant to the Conveyance and Encumbrance of
25Manufactured Homes as Real Property and Severance Act and

 

 

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1satisfaction of the requirements of Section 3-116.1 or 3-116.2,
2as applicable, any perfection or termination of a security
3interest with respect to such permanently affixed property
4shall be governed by the laws applicable to real property.
5(Source: P.A. 76-1586.)
 
6    (625 ILCS 5/3-208)  (from Ch. 95 1/2, par. 3-208)
7    Sec. 3-208. Suspension or revocation of certificates.
8    (a) The Secretary of State may suspend or revoke a
9certificate of title, upon notice and reasonable opportunity to
10be heard in accordance with Section 2-118, when authorized by
11any other provision of law or if he finds:
12        1. The certificate of title was fraudulently procured
13    or erroneously issued, or
14        2. The vehicle has been scrapped, dismantled or
15    destroyed.
16    Except as provided in Section 3-116.2, the Secretary of
17State shall not suspend or revoke a certificate of title to a
18manufactured home by reason of the fact that, at any time, it
19shall have become affixed in any manner to real property.
20    (b) Suspension or revocation of a certificate of title does
21not, in itself, affect the validity of a security interest
22noted on it.
23    (c) When the Secretary of State suspends or revokes a
24certificate of title, the owner or person in possession of it
25shall, immediately upon receiving notice of the suspension or

 

 

HB2927- 115 -LRB098 07544 HLH 37615 b

1revocation, mail or deliver the certificate to the Secretary of
2State.
3    (d) The Secretary of State may seize and impound any
4certificate of title which has been suspended or revoked.
5(Source: P.A. 76-1586.)
 
6    Section 10-75. The Code of Civil Procedure is amended by
7changing Section 15-1213 as follows:
 
8    (735 ILCS 5/15-1213)  (from Ch. 110, par. 15-1213)
9    Sec. 15-1213. Real Estate. "Real estate" means land or any
10estate or interest in, over or under land (including minerals,
11air rights, structures, fixtures and other things which by
12custom, usage or law pass with a conveyance of land though not
13described or mentioned in the contract of sale or instrument of
14conveyance). "Mortgaged real estate" means the real estate
15which is the subject of a mortgage. "Real Estate" includes a
16manufactured home as defined in subdivision (53) of Section
179-102 of the Uniform Commercial Code that is real property as
18defined in the Conveyance and Encumbrance of Manufactured Homes
19as Real Property and Severance Act.
20(Source: P.A. 84-1462.)
 
21    Section 10-80. The Conveyances Act is amended by changing
22Section 38 as follows:
 

 

 

HB2927- 116 -LRB098 07544 HLH 37615 b

1    (765 ILCS 5/38)  (from Ch. 30, par. 37)
2    Sec. 38. The term "real estate," as used in this act, shall
3be construed as co-extensive in meaning with "lands, tenements
4and hereditaments," and as embracing all chattels real. "Real
5estate" and "real property" include a manufactured home as
6defined in subdivision (53) of Section 9-102 of the Uniform
7Commercial Code that is real property as defined in the
8Conveyance and Encumbrance of Manufactured Homes as Real
9Property and Severance Act. This act shall not be construed so
10as to embrace last wills, except as herein expressly provided.
11(Source: P.A. 84-551.)
 
12    Section 10-85. The Residential Real Property Disclosure
13Act is amended by changing Section 5 as follows:
 
14    (765 ILCS 77/5)
15    Sec. 5. Definitions. As used in this Act, unless the
16context otherwise requires the following terms have the meaning
17given in this Section.
18    "Residential real property" means real property improved
19with not less than one nor more than 4 residential dwelling
20units; units in residential cooperatives; or, condominium
21units, including the limited common elements allocated to the
22exclusive use thereof that form an integral part of the
23condominium unit. The term includes a manufactured home as
24defined in subdivision (53) of Section 9-102 of the Uniform

 

 

HB2927- 117 -LRB098 07544 HLH 37615 b

1Commercial Code that is real property as defined in the
2Conveyance and Encumbrance of Manufactured Homes as Real
3Property and Severance Act.
4    "Seller" means every person or entity who is an owner,
5beneficiary of a trust, contract purchaser or lessee of a
6ground lease, who has an interest (legal or equitable) in
7residential real property. However, "seller" shall not include
8any person who has both (i) never occupied the residential real
9property and (ii) never had the management responsibility for
10the residential real property nor delegated such
11responsibility for the residential real property to another
12person or entity.
13    "Prospective buyer" means any person or entity negotiating
14or offering to become an owner or lessee of residential real
15property by means of a transfer for value to which this Act
16applies.
17(Source: P.A. 90-383, eff. 1-1-98.)
 
18    Section 10-90. The Mobile Home Landlord and Tenant Rights
19Act is amended by changing Section 3 as follows:
 
20    (765 ILCS 745/3)  (from Ch. 80, par. 203)
21    Sec. 3. Definitions. Unless otherwise expressly defined,
22all terms in this Act shall be construed to have their
23ordinarily accepted meanings or such meaning as the context
24therein requires.

 

 

HB2927- 118 -LRB098 07544 HLH 37615 b

1    (a) "Person" means any legal entity, including but not
2limited to, an individual, firm, partnership, association,
3trust, joint stock company, corporation or successor of any of
4the foregoing.
5    (b) "Manufactured home" means a factory-assembled,
6completely integrated structure designed for permanent
7habitation, with a permanent chassis, and so constructed as to
8permit its transport, on wheels temporarily or permanently
9attached to its frame, and is a movable or portable unit that
10is (i) 8 body feet or more in width, (ii) 40 body feet or more
11in length, and (iii) 320 or more square feet, constructed to be
12towed on its own chassis (comprised of frame and wheels) from
13the place of its construction to the location, or subsequent
14locations, at which it is installed and set up according to the
15manufacturer's instructions and connected to utilities for
16year-round occupancy for use as a permanent habitation, and
17designed and situated so as to permit its occupancy as a
18dwelling place for one or more persons, and specifically
19includes a "manufactured home" as defined in subdivision (53)
20of Section 9-102 of the Uniform Commercial Code. The term shall
21include units containing parts that may be folded, collapsed,
22or telescoped when being towed and that may be expected to
23provide additional cubic capacity, and that are designed to be
24joined into one integral unit capable of being separated again
25into the components for repeated towing. The term excludes
26campers and recreational vehicles. The words "mobile home" and

 

 

HB2927- 119 -LRB098 07544 HLH 37615 b

1"manufactured home" are synonymous for the purposes of this
2Act.
3    (c) "Mobile Home Park" or "Park" means a tract of land or 2
4contiguous tracts of land that contain sites with the necessary
5utilities for 5 or more mobile homes or manufactured homes. A
6mobile home park may be operated either free of charge or for
7revenue purposes.
8    (d) "Park Owner" means the owner of a mobile home park and
9any person authorized to exercise any aspect of the management
10of the premises, including any person who directly or
11indirectly receives rents and has no obligation to deliver the
12whole of such receipts to another person.
13    (e) "Tenant" means any person who occupies a mobile home
14rental unit for dwelling purposes or a lot on which he parks a
15mobile home for an agreed upon consideration.
16    (f) "Rent" means any money or other consideration given for
17the right of use, possession and occupancy of property, be it a
18lot, a mobile home, or both.
19    (g) "Master antenna television service" means any and all
20services provided by or through the facilities of any closed
21circuit coaxial cable communication system, or any microwave or
22similar transmission services other than a community antenna
23television system as defined in Section 11-42-11 of the
24Illinois Municipal Code.
25(Source: P.A. 96-1477, eff. 1-1-11.)
 

 

 

HB2927- 120 -LRB098 07544 HLH 37615 b

1    Section 10-95. The Mortgage Act is amended by adding
2Section 13.1 as follows:
 
3    (765 ILCS 905/13.1 new)
4    Sec. 13.1. Real estate; real property. As used in this Act,
5"real estate" and "real property" include a manufactured home
6as defined in subdivision (53) of Section 9-102 of the Uniform
7Commercial Code that is real property as defined in the
8Conveyance and Encumbrance of Manufactured Homes as Real
9Property and Severance Act.
 
10    Section 10-100. The Joint Tenancy Act is amended by adding
11Section 5 as follows:
 
12    (765 ILCS 1005/5 new)
13    Sec. 5. Real estate; real property. As used in this Act,
14"real estate" and "real property" include a manufactured home
15as defined in subdivision (53) of Section 9-102 of the Uniform
16Commercial Code that is real property as defined in the
17Conveyance and Encumbrance of Manufactured Homes as Real
18Property and Severance Act.
 
19    Section 10-105. The Uniform Commercial Code is amended by
20changing Section 9-102 as follows:
 
21    (810 ILCS 5/9-102)  (from Ch. 26, par. 9-102)

 

 

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1    (Text of Section before amendment by P.A. 97-1034)
2    Sec. 9-102. Definitions and index of definitions.
3    (a) Article 9 definitions. In this Article:
4        (1) "Accession" means goods that are physically united
5    with other goods in such a manner that the identity of the
6    original goods is not lost.
7        (2) "Account", except as used in "account for", means a
8    right to payment of a monetary obligation, whether or not
9    earned by performance, (i) for property that has been or is
10    to be sold, leased, licensed, assigned, or otherwise
11    disposed of, (ii) for services rendered or to be rendered,
12    (iii) for a policy of insurance issued or to be issued,
13    (iv) for a secondary obligation incurred or to be incurred,
14    (v) for energy provided or to be provided, (vi) for the use
15    or hire of a vessel under a charter or other contract,
16    (vii) arising out of the use of a credit or charge card or
17    information contained on or for use with the card, or
18    (viii) as winnings in a lottery or other game of chance
19    operated or sponsored by a State, governmental unit of a
20    State, or person licensed or authorized to operate the game
21    by a State or governmental unit of a State. The term
22    includes health-care-insurance receivables. The term does
23    not include (i) rights to payment evidenced by chattel
24    paper or an instrument, (ii) commercial tort claims, (iii)
25    deposit accounts, (iv) investment property, (v)
26    letter-of-credit rights or letters of credit, or (vi)

 

 

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1    rights to payment for money or funds advanced or sold,
2    other than rights arising out of the use of a credit or
3    charge card or information contained on or for use with the
4    card.
5        (3) "Account debtor" means a person obligated on an
6    account, chattel paper, or general intangible. The term
7    does not include persons obligated to pay a negotiable
8    instrument, even if the instrument constitutes part of
9    chattel paper.
10        (4) "Accounting", except as used in "accounting for",
11    means a record:
12            (A) authenticated by a secured party;
13            (B) indicating the aggregate unpaid secured
14        obligations as of a date not more than 35 days earlier
15        or 35 days later than the date of the record; and
16            (C) identifying the components of the obligations
17        in reasonable detail.
18        (5) "Agricultural lien" means an interest, other than a
19    security interest, in farm products:
20            (A) which secures payment or performance of an
21        obligation for goods or services furnished in
22        connection with a debtor's farming operation;
23            (B) which is created by statute in favor of a
24        person that in the ordinary course of its business
25        furnished goods or services to a debtor in connection
26        with a debtor's farming operation; and

 

 

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1            (C) whose effectiveness does not depend on the
2        person's possession of the personal property.
3        (6) "As-extracted collateral" means:
4            (A) oil, gas, or other minerals that are subject to
5        a security interest that:
6                (i) is created by a debtor having an interest
7            in the minerals before extraction; and
8                (ii) attaches to the minerals as extracted; or
9            (B) accounts arising out of the sale at the
10        wellhead or minehead of oil, gas, or other minerals in
11        which the debtor had an interest before extraction.
12        (7) "Authenticate" means:
13            (A) to sign; or
14            (B) to execute or otherwise adopt a symbol, or
15        encrypt or similarly process a record in whole or in
16        part, with the present intent of the authenticating
17        person to identify the person and adopt or accept a
18        record.
19        (8) "Bank" means an organization that is engaged in the
20    business of banking. The term includes savings banks,
21    savings and loan associations, credit unions, and trust
22    companies.
23        (9) "Cash proceeds" means proceeds that are money,
24    checks, deposit accounts, or the like.
25        (10) "Certificate of title" means a certificate of
26    title with respect to which a statute provides for the

 

 

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1    security interest in question to be indicated on the
2    certificate as a condition or result of the security
3    interest's obtaining priority over the rights of a lien
4    creditor with respect to the collateral.
5        (11) "Chattel paper" means a record or records that
6    evidence both a monetary obligation and a security interest
7    in specific goods, a security interest in specific goods
8    and software used in the goods, a security interest in
9    specific goods and license of software used in the goods, a
10    lease of specific goods, or a lease of specified goods and
11    a license of software used in the goods. In this paragraph,
12    "monetary obligation" means a monetary obligation secured
13    by the goods or owed under a lease of the goods and
14    includes a monetary obligation with respect to software
15    used in the goods. The term does not include (i) charters
16    or other contracts involving the use or hire of a vessel or
17    (ii) records that evidence a right to payment arising out
18    of the use of a credit or charge card or information
19    contained on or for use with the card. If a transaction is
20    evidenced by records that include an instrument or series
21    of instruments, the group of records taken together
22    constitutes chattel paper.
23        (12) "Collateral" means the property subject to a
24    security interest or agricultural lien. The term includes:
25            (A) proceeds to which a security interest
26        attaches;

 

 

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1            (B) accounts, chattel paper, payment intangibles,
2        and promissory notes that have been sold; and
3            (C) goods that are the subject of a consignment.
4        (13) "Commercial tort claim" means a claim arising in
5    tort with respect to which:
6            (A) the claimant is an organization; or
7            (B) the claimant is an individual and the claim:
8                (i) arose in the course of the claimant's
9            business or profession; and
10                (ii) does not include damages arising out of
11            personal injury to or the death of an individual.
12        (14) "Commodity account" means an account maintained
13    by a commodity intermediary in which a commodity contract
14    is carried for a commodity customer.
15        (15) "Commodity contract" means a commodity futures
16    contract, an option on a commodity futures contract, a
17    commodity option, or another contract if the contract or
18    option is:
19            (A) traded on or subject to the rules of a board of
20        trade that has been designated as a contract market for
21        such a contract pursuant to federal commodities laws;
22        or
23            (B) traded on a foreign commodity board of trade,
24        exchange, or market, and is carried on the books of a
25        commodity intermediary for a commodity customer.
26        (16) "Commodity customer" means a person for which a

 

 

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1    commodity intermediary carries a commodity contract on its
2    books.
3        (17) "Commodity intermediary" means a person that:
4            (A) is registered as a futures commission merchant
5        under federal commodities law; or
6            (B) in the ordinary course of its business provides
7        clearance or settlement services for a board of trade
8        that has been designated as a contract market pursuant
9        to federal commodities law.
10        (18) "Communicate" means:
11            (A) to send a written or other tangible record;
12            (B) to transmit a record by any means agreed upon
13        by the persons sending and receiving the record; or
14            (C) in the case of transmission of a record to or
15        by a filing office, to transmit a record by any means
16        prescribed by filing-office rule.
17        (19) "Consignee" means a merchant to which goods are
18    delivered in a consignment.
19        (20) "Consignment" means a transaction, regardless of
20    its form, in which a person delivers goods to a merchant
21    for the purpose of sale and:
22            (A) the merchant:
23                (i) deals in goods of that kind under a name
24            other than the name of the person making delivery;
25                (ii) is not an auctioneer; and
26                (iii) is not generally known by its creditors

 

 

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1            to be substantially engaged in selling the goods of
2            others;
3            (B) with respect to each delivery, the aggregate
4        value of the goods is $1,000 or more at the time of
5        delivery;
6            (C) the goods are not consumer goods immediately
7        before delivery; and
8            (D) the transaction does not create a security
9        interest that secures an obligation.
10        (21) "Consignor" means a person that delivers goods to
11    a consignee in a consignment.
12        (22) "Consumer debtor" means a debtor in a consumer
13    transaction.
14        (23) "Consumer goods" means goods that are used or
15    bought for use primarily for personal, family, or household
16    purposes.
17        (24) "Consumer-goods transaction" means a consumer
18    transaction in which:
19            (A) an individual incurs an obligation primarily
20        for personal, family, or household purposes; and
21            (B) a security interest in consumer goods secures
22        the obligation.
23        (25) "Consumer obligor" means an obligor who is an
24    individual and who incurred the obligation as part of a
25    transaction entered into primarily for personal, family,
26    or household purposes.

 

 

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1        (26) "Consumer transaction" means a transaction in
2    which (i) an individual incurs an obligation primarily for
3    personal, family, or household purposes, (ii) a security
4    interest secures the obligation, and (iii) the collateral
5    is held or acquired primarily for personal, family, or
6    household purposes. The term includes consumer-goods
7    transactions.
8        (27) "Continuation statement" means an amendment of a
9    financing statement which:
10            (A) identifies, by its file number, the initial
11        financing statement to which it relates; and
12            (B) indicates that it is a continuation statement
13        for, or that it is filed to continue the effectiveness
14        of, the identified financing statement.
15        (28) "Debtor" means:
16            (A) a person having an interest, other than a
17        security interest or other lien, in the collateral,
18        whether or not the person is an obligor;
19            (B) a seller of accounts, chattel paper, payment
20        intangibles, or promissory notes; or
21            (C) a consignee.
22        (29) "Deposit account" means a demand, time, savings,
23    passbook, nonnegotiable certificates of deposit,
24    uncertificated certificates of deposit, nontransferrable
25    certificates of deposit, or similar account maintained
26    with a bank. The term does not include investment property

 

 

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1    or accounts evidenced by an instrument.
2        (30) "Document" means a document of title or a receipt
3    of the type described in Section 7-201(b).
4        (31) "Electronic chattel paper" means chattel paper
5    evidenced by a record or records consisting of information
6    stored in an electronic medium.
7        (32) "Encumbrance" means a right, other than an
8    ownership interest, in real property. The term includes
9    mortgages and other liens on real property.
10        (33) "Equipment" means goods other than inventory,
11    farm products, or consumer goods.
12        (34) "Farm products" means goods, other than standing
13    timber, with respect to which the debtor is engaged in a
14    farming operation and which are:
15            (A) crops grown, growing, or to be grown,
16        including:
17                (i) crops produced on trees, vines, and
18            bushes; and
19                (ii) aquatic goods produced in aquacultural
20            operations;
21            (B) livestock, born or unborn, including aquatic
22        goods produced in aquacultural operations;
23            (C) supplies used or produced in a farming
24        operation; or
25            (D) products of crops or livestock in their
26        unmanufactured states.

 

 

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1        (35) "Farming operation" means raising, cultivating,
2    propagating, fattening, grazing, or any other farming,
3    livestock, or aquacultural operation.
4        (36) "File number" means the number assigned to an
5    initial financing statement pursuant to Section 9-519(a).
6        (37) "Filing office" means an office designated in
7    Section 9-501 as the place to file a financing statement.
8        (38) "Filing-office rule" means a rule adopted
9    pursuant to Section 9-526.
10        (39) "Financing statement" means a record or records
11    composed of an initial financing statement and any filed
12    record relating to the initial financing statement.
13        (40) "Fixture filing" means the filing of a financing
14    statement covering goods that are or are to become fixtures
15    and satisfying Section 9-502(a) and (b). The term includes
16    the filing of a financing statement covering goods of a
17    transmitting utility which are or are to become fixtures.
18        (41) "Fixtures" means goods that have become so related
19    to particular real property that an interest in them arises
20    under real property law.
21        (42) "General intangible" means any personal property,
22    including things in action, other than accounts, chattel
23    paper, commercial tort claims, deposit accounts,
24    documents, goods, instruments, investment property,
25    letter-of-credit rights, letters of credit, money, and
26    oil, gas, or other minerals before extraction. The term

 

 

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1    includes payment intangibles and software.
2        (43) "Good faith" means honesty in fact and the
3    observance of reasonable commercial standards of fair
4    dealing.
5        (44) "Goods" means all things that are movable when a
6    security interest attaches. The term includes (i)
7    fixtures, (ii) standing timber that is to be cut and
8    removed under a conveyance or contract for sale, (iii) the
9    unborn young of animals, (iv) crops grown, growing, or to
10    be grown, even if the crops are produced on trees, vines,
11    or bushes, and (v) manufactured homes. The term also
12    includes a computer program embedded in goods and any
13    supporting information provided in connection with a
14    transaction relating to the program if (i) the program is
15    associated with the goods in such a manner that it
16    customarily is considered part of the goods, or (ii) by
17    becoming the owner of the goods, a person acquires a right
18    to use the program in connection with the goods. The term
19    does not include a computer program embedded in goods that
20    consist solely of the medium in which the program is
21    embedded. The term also does not include accounts, chattel
22    paper, commercial tort claims, deposit accounts,
23    documents, general intangibles, instruments, investment
24    property, letter-of-credit rights, letters of credit,
25    money, or oil, gas, or other minerals before extraction.
26        (45) "Governmental unit" means a subdivision, agency,

 

 

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1    department, county, parish, municipality, or other unit of
2    the government of the United States, a State, or a foreign
3    country. The term includes an organization having a
4    separate corporate existence if the organization is
5    eligible to issue debt on which interest is exempt from
6    income taxation under the laws of the United States.
7        (46) "Health-care-insurance receivable" means an
8    interest in or claim under a policy of insurance which is a
9    right to payment of a monetary obligation for health-care
10    goods or services provided.
11        (47) "Instrument" means a negotiable instrument or any
12    other writing that evidences a right to the payment of a
13    monetary obligation, is not itself a security agreement or
14    lease, and is of a type that in ordinary course of business
15    is transferred by delivery with any necessary indorsement
16    or assignment. The term does not include (i) investment
17    property, (ii) letters of credit, (iii) nonnegotiable
18    certificates of deposit, (iv) uncertificated certificates
19    of deposit, (v) nontransferrable certificates of deposit,
20    or (vi) writings that evidence a right to payment arising
21    out of the use of a credit or charge card or information
22    contained on or for use with the card.
23        (48) "Inventory" means goods, other than farm
24    products, which:
25            (A) are leased by a person as lessor;
26            (B) are held by a person for sale or lease or to be

 

 

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1        furnished under a contract of service;
2            (C) are furnished by a person under a contract of
3        service; or
4            (D) consist of raw materials, work in process, or
5        materials used or consumed in a business.
6        (49) "Investment property" means a security, whether
7    certificated or uncertificated, security entitlement,
8    securities account, commodity contract, or commodity
9    account.
10        (50) "Jurisdiction of organization", with respect to a
11    registered organization, means the jurisdiction under
12    whose law the organization is organized.
13        (51) "Letter-of-credit right" means a right to payment
14    or performance under a letter of credit, whether or not the
15    beneficiary has demanded or is at the time entitled to
16    demand payment or performance. The term does not include
17    the right of a beneficiary to demand payment or performance
18    under a letter of credit.
19        (52) "Lien creditor" means:
20            (A) a creditor that has acquired a lien on the
21        property involved by attachment, levy, or the like;
22            (B) an assignee for benefit of creditors from the
23        time of assignment;
24            (C) a trustee in bankruptcy from the date of the
25        filing of the petition; or
26            (D) a receiver in equity from the time of

 

 

HB2927- 134 -LRB098 07544 HLH 37615 b

1        appointment.
2        (53) "Manufactured home" means a structure,
3    transportable in one or more sections, which, in the
4    traveling mode, is eight body feet or more in width or 40
5    body feet or more in length, or, when erected on site, is
6    320 or more square feet, and which is built on a permanent
7    chassis and designed to be used as a dwelling with or
8    without a permanent foundation when connected to the
9    required utilities, and includes the plumbing, heating,
10    air-conditioning, and electrical systems contained
11    therein. The term includes any structure that meets all of
12    the requirements of this paragraph except the size
13    requirements and with respect to which the manufacturer
14    voluntarily files a certification required by the United
15    States Secretary of Housing and Urban Development and
16    complies with the standards established under Title 42 of
17    the United States Code factory-assembled, completely
18    integrated structure designed for permanent habitation,
19    with a permanent chassis, and so constructed as to permit
20    its transport, on wheels temporarily or permanently
21    attached to its frame, and is a movable or portable unit
22    that is (i) 8 body feet or more in width, (ii) 40 body feet
23    or more in length, and (iii) 320 or more square feet,
24    constructed to be towed on its own chassis (comprised of
25    frame and wheels) from the place of its construction to the
26    location, or subsequent locations, at which it is installed

 

 

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1    and set up according to the manufacturer's instructions and
2    connected to utilities for year-round occupancy for use as
3    a permanent habitation, and designed and situated so as to
4    permit its occupancy as a dwelling place for one or more
5    persons. The term shall include units containing parts that
6    may be folded, collapsed, or telescoped when being towed
7    and that may be expected to provide additional cubic
8    capacity, and that are designed to be joined into one
9    integral unit capable of being separated again into the
10    components for repeated towing. The term shall exclude
11    campers and recreational vehicles.
12        (54) "Manufactured-home transaction" means a secured
13    transaction:
14            (A) that creates a purchase-money security
15        interest in a manufactured home, other than a
16        manufactured home held as inventory; or
17            (B) in which a manufactured home, other than a
18        manufactured home held as inventory, is the primary
19        collateral.
20        (55) "Mortgage" means a consensual interest in real
21    property, including fixtures, which secures payment or
22    performance of an obligation.
23        (56) "New debtor" means a person that becomes bound as
24    debtor under Section 9-203(d) by a security agreement
25    previously entered into by another person.
26        (57) "New value" means (i) money, (ii) money's worth in

 

 

HB2927- 136 -LRB098 07544 HLH 37615 b

1    property, services, or new credit, or (iii) release by a
2    transferee of an interest in property previously
3    transferred to the transferee. The term does not include an
4    obligation substituted for another obligation.
5        (58) "Noncash proceeds" means proceeds other than cash
6    proceeds.
7        (59) "Obligor" means a person that, with respect to an
8    obligation secured by a security interest in or an
9    agricultural lien on the collateral, (i) owes payment or
10    other performance of the obligation, (ii) has provided
11    property other than the collateral to secure payment or
12    other performance of the obligation, or (iii) is otherwise
13    accountable in whole or in part for payment or other
14    performance of the obligation. The term does not include
15    issuers or nominated persons under a letter of credit.
16        (60) "Original debtor", except as used in Section
17    9-310(c), means a person that, as debtor, entered into a
18    security agreement to which a new debtor has become bound
19    under Section 9-203(d).
20        (61) "Payment intangible" means a general intangible
21    under which the account debtor's principal obligation is a
22    monetary obligation.
23        (62) "Person related to", with respect to an
24    individual, means:
25            (A) the spouse of the individual;
26            (B) a brother, brother-in-law, sister, or

 

 

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1        sister-in-law of the individual;
2            (C) an ancestor or lineal descendant of the
3        individual or the individual's spouse; or
4            (D) any other relative, by blood or marriage, of
5        the individual or the individual's spouse who shares
6        the same home with the individual.
7        (63) "Person related to", with respect to an
8    organization, means:
9            (A) a person directly or indirectly controlling,
10        controlled by, or under common control with the
11        organization;
12            (B) an officer or director of, or a person
13        performing similar functions with respect to, the
14        organization;
15            (C) an officer or director of, or a person
16        performing similar functions with respect to, a person
17        described in subparagraph (A);
18            (D) the spouse of an individual described in
19        subparagraph (A), (B), or (C); or
20            (E) an individual who is related by blood or
21        marriage to an individual described in subparagraph
22        (A), (B), (C), or (D) and shares the same home with the
23        individual.
24        (64) "Proceeds", except as used in Section 9-609(b),
25    means the following property:
26            (A) whatever is acquired upon the sale, lease,

 

 

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1        license, exchange, or other disposition of collateral;
2            (B) whatever is collected on, or distributed on
3        account of, collateral;
4            (C) rights arising out of collateral;
5            (D) to the extent of the value of collateral,
6        claims arising out of the loss, nonconformity, or
7        interference with the use of, defects or infringement
8        of rights in, or damage to, the collateral; or
9            (E) to the extent of the value of collateral and to
10        the extent payable to the debtor or the secured party,
11        insurance payable by reason of the loss or
12        nonconformity of, defects or infringement of rights
13        in, or damage to, the collateral.
14        (65) "Promissory note" means an instrument that
15    evidences a promise to pay a monetary obligation, does not
16    evidence an order to pay, and does not contain an
17    acknowledgment by a bank that the bank has received for
18    deposit a sum of money or funds.
19        (66) "Proposal" means a record authenticated by a
20    secured party which includes the terms on which the secured
21    party is willing to accept collateral in full or partial
22    satisfaction of the obligation it secures pursuant to
23    Sections 9-620, 9-621, and 9-622.
24        (67) "Public-finance transaction" means a secured
25    transaction in connection with which:
26            (A) debt securities are issued;

 

 

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1            (B) all or a portion of the securities issued have
2        an initial stated maturity of at least 20 years; and
3            (C) the debtor, obligor, secured party, account
4        debtor or other person obligated on collateral,
5        assignor or assignee of a secured obligation, or
6        assignor or assignee of a security interest is a State
7        or a governmental unit of a State.
8        (68) "Pursuant to commitment", with respect to an
9    advance made or other value given by a secured party, means
10    pursuant to the secured party's obligation, whether or not
11    a subsequent event of default or other event not within the
12    secured party's control has relieved or may relieve the
13    secured party from its obligation.
14        (69) "Record", except as used in "for record", "of
15    record", "record or legal title", and "record owner", means
16    information that is inscribed on a tangible medium or which
17    is stored in an electronic or other medium and is
18    retrievable in perceivable form.
19        (70) "Registered organization" means an organization
20    organized solely under the law of a single State or the
21    United States and as to which the State or the United
22    States must maintain a public record showing the
23    organization to have been organized.
24        (71) "Secondary obligor" means an obligor to the extent
25    that:
26            (A) the obligor's obligation is secondary; or

 

 

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1            (B) the obligor has a right of recourse with
2        respect to an obligation secured by collateral against
3        the debtor, another obligor, or property of either.
4        (72) "Secured party" means:
5            (A) a person in whose favor a security interest is
6        created or provided for under a security agreement,
7        whether or not any obligation to be secured is
8        outstanding;
9            (B) a person that holds an agricultural lien;
10            (C) a consignor;
11            (D) a person to which accounts, chattel paper,
12        payment intangibles, or promissory notes have been
13        sold;
14            (E) a trustee, indenture trustee, agent,
15        collateral agent, or other representative in whose
16        favor a security interest or agricultural lien is
17        created or provided for; or
18            (F) a person that holds a security interest arising
19        under Section 2-401, 2-505, 2-711(3), 2A-508(5),
20        4-210, or 5-118.
21        (73) "Security agreement" means an agreement that
22    creates or provides for a security interest.
23        (74) "Send", in connection with a record or
24    notification, means:
25            (A) to deposit in the mail, deliver for
26        transmission, or transmit by any other usual means of

 

 

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1        communication, with postage or cost of transmission
2        provided for, addressed to any address reasonable
3        under the circumstances; or
4            (B) to cause the record or notification to be
5        received within the time that it would have been
6        received if properly sent under subparagraph (A).
7        (75) "Software" means a computer program and any
8    supporting information provided in connection with a
9    transaction relating to the program. The term does not
10    include a computer program that is included in the
11    definition of goods.
12        (76) "State" means a State of the United States, the
13    District of Columbia, Puerto Rico, the United States Virgin
14    Islands, or any territory or insular possession subject to
15    the jurisdiction of the United States.
16        (77) "Supporting obligation" means a letter-of-credit
17    right or secondary obligation that supports the payment or
18    performance of an account, chattel paper, a document, a
19    general intangible, an instrument, or investment property.
20        (78) "Tangible chattel paper" means chattel paper
21    evidenced by a record or records consisting of information
22    that is inscribed on a tangible medium.
23        (79) "Termination statement" means an amendment of a
24    financing statement which:
25            (A) identifies, by its file number, the initial
26        financing statement to which it relates; and

 

 

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1            (B) indicates either that it is a termination
2        statement or that the identified financing statement
3        is no longer effective.
4        (80) "Transmitting utility" means a person primarily
5    engaged in the business of:
6            (A) operating a railroad, subway, street railway,
7        or trolley bus;
8            (B) transmitting communications electrically,
9        electromagnetically, or by light;
10            (C) transmitting goods by pipeline or sewer; or
11            (D) transmitting or producing and transmitting
12        electricity, steam, gas, or water.
13    (b) Definitions in other Articles. "Control" as provided in
14Section 7-106 and the following definitions in other Articles
15apply to this Article:
16    "Applicant". Section 5-102.
17    "Beneficiary". Section 5-102.
18    "Broker". Section 8-102.
19    "Certificated security". Section 8-102.
20    "Check". Section 3-104.
21    "Clearing corporation". Section 8-102.
22    "Contract for sale". Section 2-106.
23    "Customer". Section 4-104.
24    "Entitlement holder". Section 8-102.
25    "Financial asset". Section 8-102.
26    "Holder in due course". Section 3-302.

 

 

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1    "Issuer" (with respect to a letter of credit or
2letter-of-credit right). Section 5-102.
3    "Issuer" (with respect to a security). Section 8-201.
4    "Issuer" (with respect to documents of title). Section
57-102.
6    "Lease". Section 2A-103.
7    "Lease agreement". Section 2A-103.
8    "Lease contract". Section 2A-103.
9    "Leasehold interest". Section 2A-103.
10    "Lessee". Section 2A-103.
11    "Lessee in ordinary course of business". Section 2A-103.
12    "Lessor". Section 2A-103.
13    "Lessor's residual interest". Section 2A-103.
14    "Letter of credit". Section 5-102.
15    "Merchant". Section 2-104.
16    "Negotiable instrument". Section 3-104.
17    "Nominated person". Section 5-102.
18    "Note". Section 3-104.
19    "Proceeds of a letter of credit". Section 5-114.
20    "Prove". Section 3-103.
21    "Sale". Section 2-106.
22    "Securities account". Section 8-501.
23    "Securities intermediary". Section 8-102.
24    "Security". Section 8-102.
25    "Security certificate". Section 8-102.
26    "Security entitlement". Section 8-102.

 

 

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1    "Uncertificated security". Section 8-102.
2    (c) Article 1 definitions and principles. Article 1
3contains general definitions and principles of construction
4and interpretation applicable throughout this Article.
5(Source: P.A. 95-895, eff. 1-1-09; 96-1477, eff. 1-1-11.)
 
6    (Text of Section after amendment by P.A. 97-1034)
7    Sec. 9-102. Definitions and index of definitions.
8    (a) Article 9 definitions. In this Article:
9        (1) "Accession" means goods that are physically united
10    with other goods in such a manner that the identity of the
11    original goods is not lost.
12        (2) "Account", except as used in "account for", means a
13    right to payment of a monetary obligation, whether or not
14    earned by performance, (i) for property that has been or is
15    to be sold, leased, licensed, assigned, or otherwise
16    disposed of, (ii) for services rendered or to be rendered,
17    (iii) for a policy of insurance issued or to be issued,
18    (iv) for a secondary obligation incurred or to be incurred,
19    (v) for energy provided or to be provided, (vi) for the use
20    or hire of a vessel under a charter or other contract,
21    (vii) arising out of the use of a credit or charge card or
22    information contained on or for use with the card, or
23    (viii) as winnings in a lottery or other game of chance
24    operated or sponsored by a State, governmental unit of a
25    State, or person licensed or authorized to operate the game

 

 

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1    by a State or governmental unit of a State. The term
2    includes health-care-insurance receivables. The term does
3    not include (i) rights to payment evidenced by chattel
4    paper or an instrument, (ii) commercial tort claims, (iii)
5    deposit accounts, (iv) investment property, (v)
6    letter-of-credit rights or letters of credit, or (vi)
7    rights to payment for money or funds advanced or sold,
8    other than rights arising out of the use of a credit or
9    charge card or information contained on or for use with the
10    card.
11        (3) "Account debtor" means a person obligated on an
12    account, chattel paper, or general intangible. The term
13    does not include persons obligated to pay a negotiable
14    instrument, even if the instrument constitutes part of
15    chattel paper.
16        (4) "Accounting", except as used in "accounting for",
17    means a record:
18            (A) authenticated by a secured party;
19            (B) indicating the aggregate unpaid secured
20        obligations as of a date not more than 35 days earlier
21        or 35 days later than the date of the record; and
22            (C) identifying the components of the obligations
23        in reasonable detail.
24        (5) "Agricultural lien" means an interest, other than a
25    security interest, in farm products:
26            (A) which secures payment or performance of an

 

 

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1        obligation for goods or services furnished in
2        connection with a debtor's farming operation;
3            (B) which is created by statute in favor of a
4        person that in the ordinary course of its business
5        furnished goods or services to a debtor in connection
6        with a debtor's farming operation; and
7            (C) whose effectiveness does not depend on the
8        person's possession of the personal property.
9        (6) "As-extracted collateral" means:
10            (A) oil, gas, or other minerals that are subject to
11        a security interest that:
12                (i) is created by a debtor having an interest
13            in the minerals before extraction; and
14                (ii) attaches to the minerals as extracted; or
15            (B) accounts arising out of the sale at the
16        wellhead or minehead of oil, gas, or other minerals in
17        which the debtor had an interest before extraction.
18        (7) "Authenticate" means:
19            (A) to sign; or
20            (B) with present intent to adopt or accept a
21        record, to attach to or logically associate with the
22        record an electronic sound, symbol, or process.
23        (8) "Bank" means an organization that is engaged in the
24    business of banking. The term includes savings banks,
25    savings and loan associations, credit unions, and trust
26    companies.

 

 

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1        (9) "Cash proceeds" means proceeds that are money,
2    checks, deposit accounts, or the like.
3        (10) "Certificate of title" means a certificate of
4    title with respect to which a statute provides for the
5    security interest in question to be indicated on the
6    certificate as a condition or result of the security
7    interest's obtaining priority over the rights of a lien
8    creditor with respect to the collateral. The term includes
9    another record maintained as an alternative to a
10    certificate of title by the governmental unit that issues
11    certificates of title if a statute permits the security
12    interest in question to be indicated on the record as a
13    condition or result of the security interest's obtaining
14    priority over the rights of a lien creditor with respect to
15    the collateral.
16        (11) "Chattel paper" means a record or records that
17    evidence both a monetary obligation and a security interest
18    in specific goods, a security interest in specific goods
19    and software used in the goods, a security interest in
20    specific goods and license of software used in the goods, a
21    lease of specific goods, or a lease of specified goods and
22    a license of software used in the goods. In this paragraph,
23    "monetary obligation" means a monetary obligation secured
24    by the goods or owed under a lease of the goods and
25    includes a monetary obligation with respect to software
26    used in the goods. The term does not include (i) charters

 

 

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1    or other contracts involving the use or hire of a vessel or
2    (ii) records that evidence a right to payment arising out
3    of the use of a credit or charge card or information
4    contained on or for use with the card. If a transaction is
5    evidenced by records that include an instrument or series
6    of instruments, the group of records taken together
7    constitutes chattel paper.
8        (12) "Collateral" means the property subject to a
9    security interest or agricultural lien. The term includes:
10            (A) proceeds to which a security interest
11        attaches;
12            (B) accounts, chattel paper, payment intangibles,
13        and promissory notes that have been sold; and
14            (C) goods that are the subject of a consignment.
15        (13) "Commercial tort claim" means a claim arising in
16    tort with respect to which:
17            (A) the claimant is an organization; or
18            (B) the claimant is an individual and the claim:
19                (i) arose in the course of the claimant's
20            business or profession; and
21                (ii) does not include damages arising out of
22            personal injury to or the death of an individual.
23        (14) "Commodity account" means an account maintained
24    by a commodity intermediary in which a commodity contract
25    is carried for a commodity customer.
26        (15) "Commodity contract" means a commodity futures

 

 

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1    contract, an option on a commodity futures contract, a
2    commodity option, or another contract if the contract or
3    option is:
4            (A) traded on or subject to the rules of a board of
5        trade that has been designated as a contract market for
6        such a contract pursuant to federal commodities laws;
7        or
8            (B) traded on a foreign commodity board of trade,
9        exchange, or market, and is carried on the books of a
10        commodity intermediary for a commodity customer.
11        (16) "Commodity customer" means a person for which a
12    commodity intermediary carries a commodity contract on its
13    books.
14        (17) "Commodity intermediary" means a person that:
15            (A) is registered as a futures commission merchant
16        under federal commodities law; or
17            (B) in the ordinary course of its business provides
18        clearance or settlement services for a board of trade
19        that has been designated as a contract market pursuant
20        to federal commodities law.
21        (18) "Communicate" means:
22            (A) to send a written or other tangible record;
23            (B) to transmit a record by any means agreed upon
24        by the persons sending and receiving the record; or
25            (C) in the case of transmission of a record to or
26        by a filing office, to transmit a record by any means

 

 

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1        prescribed by filing-office rule.
2        (19) "Consignee" means a merchant to which goods are
3    delivered in a consignment.
4        (20) "Consignment" means a transaction, regardless of
5    its form, in which a person delivers goods to a merchant
6    for the purpose of sale and:
7            (A) the merchant:
8                (i) deals in goods of that kind under a name
9            other than the name of the person making delivery;
10                (ii) is not an auctioneer; and
11                (iii) is not generally known by its creditors
12            to be substantially engaged in selling the goods of
13            others;
14            (B) with respect to each delivery, the aggregate
15        value of the goods is $1,000 or more at the time of
16        delivery;
17            (C) the goods are not consumer goods immediately
18        before delivery; and
19            (D) the transaction does not create a security
20        interest that secures an obligation.
21        (21) "Consignor" means a person that delivers goods to
22    a consignee in a consignment.
23        (22) "Consumer debtor" means a debtor in a consumer
24    transaction.
25        (23) "Consumer goods" means goods that are used or
26    bought for use primarily for personal, family, or household

 

 

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1    purposes.
2        (24) "Consumer-goods transaction" means a consumer
3    transaction in which:
4            (A) an individual incurs an obligation primarily
5        for personal, family, or household purposes; and
6            (B) a security interest in consumer goods secures
7        the obligation.
8        (25) "Consumer obligor" means an obligor who is an
9    individual and who incurred the obligation as part of a
10    transaction entered into primarily for personal, family,
11    or household purposes.
12        (26) "Consumer transaction" means a transaction in
13    which (i) an individual incurs an obligation primarily for
14    personal, family, or household purposes, (ii) a security
15    interest secures the obligation, and (iii) the collateral
16    is held or acquired primarily for personal, family, or
17    household purposes. The term includes consumer-goods
18    transactions.
19        (27) "Continuation statement" means an amendment of a
20    financing statement which:
21            (A) identifies, by its file number, the initial
22        financing statement to which it relates; and
23            (B) indicates that it is a continuation statement
24        for, or that it is filed to continue the effectiveness
25        of, the identified financing statement.
26        (28) "Debtor" means:

 

 

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1            (A) a person having an interest, other than a
2        security interest or other lien, in the collateral,
3        whether or not the person is an obligor;
4            (B) a seller of accounts, chattel paper, payment
5        intangibles, or promissory notes; or
6            (C) a consignee.
7        (29) "Deposit account" means a demand, time, savings,
8    passbook, nonnegotiable certificates of deposit,
9    uncertificated certificates of deposit, nontransferrable
10    certificates of deposit, or similar account maintained
11    with a bank. The term does not include investment property
12    or accounts evidenced by an instrument.
13        (30) "Document" means a document of title or a receipt
14    of the type described in Section 7-201(b).
15        (31) "Electronic chattel paper" means chattel paper
16    evidenced by a record or records consisting of information
17    stored in an electronic medium.
18        (32) "Encumbrance" means a right, other than an
19    ownership interest, in real property. The term includes
20    mortgages and other liens on real property.
21        (33) "Equipment" means goods other than inventory,
22    farm products, or consumer goods.
23        (34) "Farm products" means goods, other than standing
24    timber, with respect to which the debtor is engaged in a
25    farming operation and which are:
26            (A) crops grown, growing, or to be grown,

 

 

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1        including:
2                (i) crops produced on trees, vines, and
3            bushes; and
4                (ii) aquatic goods produced in aquacultural
5            operations;
6            (B) livestock, born or unborn, including aquatic
7        goods produced in aquacultural operations;
8            (C) supplies used or produced in a farming
9        operation; or
10            (D) products of crops or livestock in their
11        unmanufactured states.
12        (35) "Farming operation" means raising, cultivating,
13    propagating, fattening, grazing, or any other farming,
14    livestock, or aquacultural operation.
15        (36) "File number" means the number assigned to an
16    initial financing statement pursuant to Section 9-519(a).
17        (37) "Filing office" means an office designated in
18    Section 9-501 as the place to file a financing statement.
19        (38) "Filing-office rule" means a rule adopted
20    pursuant to Section 9-526.
21        (39) "Financing statement" means a record or records
22    composed of an initial financing statement and any filed
23    record relating to the initial financing statement.
24        (40) "Fixture filing" means the filing of a financing
25    statement covering goods that are or are to become fixtures
26    and satisfying Section 9-502(a) and (b). The term includes

 

 

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1    the filing of a financing statement covering goods of a
2    transmitting utility which are or are to become fixtures.
3        (41) "Fixtures" means goods that have become so related
4    to particular real property that an interest in them arises
5    under real property law.
6        (42) "General intangible" means any personal property,
7    including things in action, other than accounts, chattel
8    paper, commercial tort claims, deposit accounts,
9    documents, goods, instruments, investment property,
10    letter-of-credit rights, letters of credit, money, and
11    oil, gas, or other minerals before extraction. The term
12    includes payment intangibles and software.
13        (43) "Good faith" means honesty in fact and the
14    observance of reasonable commercial standards of fair
15    dealing.
16        (44) "Goods" means all things that are movable when a
17    security interest attaches. The term includes (i)
18    fixtures, (ii) standing timber that is to be cut and
19    removed under a conveyance or contract for sale, (iii) the
20    unborn young of animals, (iv) crops grown, growing, or to
21    be grown, even if the crops are produced on trees, vines,
22    or bushes, and (v) manufactured homes. The term also
23    includes a computer program embedded in goods and any
24    supporting information provided in connection with a
25    transaction relating to the program if (i) the program is
26    associated with the goods in such a manner that it

 

 

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1    customarily is considered part of the goods, or (ii) by
2    becoming the owner of the goods, a person acquires a right
3    to use the program in connection with the goods. The term
4    does not include a computer program embedded in goods that
5    consist solely of the medium in which the program is
6    embedded. The term also does not include accounts, chattel
7    paper, commercial tort claims, deposit accounts,
8    documents, general intangibles, instruments, investment
9    property, letter-of-credit rights, letters of credit,
10    money, or oil, gas, or other minerals before extraction.
11        (45) "Governmental unit" means a subdivision, agency,
12    department, county, parish, municipality, or other unit of
13    the government of the United States, a State, or a foreign
14    country. The term includes an organization having a
15    separate corporate existence if the organization is
16    eligible to issue debt on which interest is exempt from
17    income taxation under the laws of the United States.
18        (46) "Health-care-insurance receivable" means an
19    interest in or claim under a policy of insurance which is a
20    right to payment of a monetary obligation for health-care
21    goods or services provided.
22        (47) "Instrument" means a negotiable instrument or any
23    other writing that evidences a right to the payment of a
24    monetary obligation, is not itself a security agreement or
25    lease, and is of a type that in ordinary course of business
26    is transferred by delivery with any necessary indorsement

 

 

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1    or assignment. The term does not include (i) investment
2    property, (ii) letters of credit, (iii) nonnegotiable
3    certificates of deposit, (iv) uncertificated certificates
4    of deposit, (v) nontransferrable certificates of deposit,
5    or (vi) writings that evidence a right to payment arising
6    out of the use of a credit or charge card or information
7    contained on or for use with the card.
8        (48) "Inventory" means goods, other than farm
9    products, which:
10            (A) are leased by a person as lessor;
11            (B) are held by a person for sale or lease or to be
12        furnished under a contract of service;
13            (C) are furnished by a person under a contract of
14        service; or
15            (D) consist of raw materials, work in process, or
16        materials used or consumed in a business.
17        (49) "Investment property" means a security, whether
18    certificated or uncertificated, security entitlement,
19    securities account, commodity contract, or commodity
20    account.
21        (50) "Jurisdiction of organization", with respect to a
22    registered organization, means the jurisdiction under
23    whose law the organization is formed or organized.
24        (51) "Letter-of-credit right" means a right to payment
25    or performance under a letter of credit, whether or not the
26    beneficiary has demanded or is at the time entitled to

 

 

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1    demand payment or performance. The term does not include
2    the right of a beneficiary to demand payment or performance
3    under a letter of credit.
4        (52) "Lien creditor" means:
5            (A) a creditor that has acquired a lien on the
6        property involved by attachment, levy, or the like;
7            (B) an assignee for benefit of creditors from the
8        time of assignment;
9            (C) a trustee in bankruptcy from the date of the
10        filing of the petition; or
11            (D) a receiver in equity from the time of
12        appointment.
13        (53) "Manufactured home" means a structure,
14    transportable in one or more sections, which, in the
15    traveling mode, is eight body feet or more in width or 40
16    body feet or more in length, or, when erected on site, is
17    320 or more square feet, and which is built on a permanent
18    chassis and designed to be used as a dwelling with or
19    without a permanent foundation when connected to the
20    required utilities, and includes the plumbing, heating,
21    air-conditioning, and electrical systems contained
22    therein. The term includes any structure that meets all of
23    the requirements of this paragraph except the size
24    requirements and with respect to which the manufacturer
25    voluntarily files a certification required by the United
26    States Secretary of Housing and Urban Development and

 

 

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1    complies with the standards established under Title 42 of
2    the United States Code factory-assembled, completely
3    integrated structure designed for permanent habitation,
4    with a permanent chassis, and so constructed as to permit
5    its transport, on wheels temporarily or permanently
6    attached to its frame, and is a movable or portable unit
7    that is (i) 8 body feet or more in width, (ii) 40 body feet
8    or more in length, and (iii) 320 or more square feet,
9    constructed to be towed on its own chassis (comprised of
10    frame and wheels) from the place of its construction to the
11    location, or subsequent locations, at which it is installed
12    and set up according to the manufacturer's instructions and
13    connected to utilities for year-round occupancy for use as
14    a permanent habitation, and designed and situated so as to
15    permit its occupancy as a dwelling place for one or more
16    persons. The term shall include units containing parts that
17    may be folded, collapsed, or telescoped when being towed
18    and that may be expected to provide additional cubic
19    capacity, and that are designed to be joined into one
20    integral unit capable of being separated again into the
21    components for repeated towing. The term shall exclude
22    campers and recreational vehicles.
23        (54) "Manufactured-home transaction" means a secured
24    transaction:
25            (A) that creates a purchase-money security
26        interest in a manufactured home, other than a

 

 

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1        manufactured home held as inventory; or
2            (B) in which a manufactured home, other than a
3        manufactured home held as inventory, is the primary
4        collateral.
5        (55) "Mortgage" means a consensual interest in real
6    property, including fixtures, which secures payment or
7    performance of an obligation.
8        (56) "New debtor" means a person that becomes bound as
9    debtor under Section 9-203(d) by a security agreement
10    previously entered into by another person.
11        (57) "New value" means (i) money, (ii) money's worth in
12    property, services, or new credit, or (iii) release by a
13    transferee of an interest in property previously
14    transferred to the transferee. The term does not include an
15    obligation substituted for another obligation.
16        (58) "Noncash proceeds" means proceeds other than cash
17    proceeds.
18        (59) "Obligor" means a person that, with respect to an
19    obligation secured by a security interest in or an
20    agricultural lien on the collateral, (i) owes payment or
21    other performance of the obligation, (ii) has provided
22    property other than the collateral to secure payment or
23    other performance of the obligation, or (iii) is otherwise
24    accountable in whole or in part for payment or other
25    performance of the obligation. The term does not include
26    issuers or nominated persons under a letter of credit.

 

 

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1        (60) "Original debtor", except as used in Section
2    9-310(c), means a person that, as debtor, entered into a
3    security agreement to which a new debtor has become bound
4    under Section 9-203(d).
5        (61) "Payment intangible" means a general intangible
6    under which the account debtor's principal obligation is a
7    monetary obligation.
8        (62) "Person related to", with respect to an
9    individual, means:
10            (A) the spouse of the individual;
11            (B) a brother, brother-in-law, sister, or
12        sister-in-law of the individual;
13            (C) an ancestor or lineal descendant of the
14        individual or the individual's spouse; or
15            (D) any other relative, by blood or marriage, of
16        the individual or the individual's spouse who shares
17        the same home with the individual.
18        (63) "Person related to", with respect to an
19    organization, means:
20            (A) a person directly or indirectly controlling,
21        controlled by, or under common control with the
22        organization;
23            (B) an officer or director of, or a person
24        performing similar functions with respect to, the
25        organization;
26            (C) an officer or director of, or a person

 

 

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1        performing similar functions with respect to, a person
2        described in subparagraph (A);
3            (D) the spouse of an individual described in
4        subparagraph (A), (B), or (C); or
5            (E) an individual who is related by blood or
6        marriage to an individual described in subparagraph
7        (A), (B), (C), or (D) and shares the same home with the
8        individual.
9        (64) "Proceeds", except as used in Section 9-609(b),
10    means the following property:
11            (A) whatever is acquired upon the sale, lease,
12        license, exchange, or other disposition of collateral;
13            (B) whatever is collected on, or distributed on
14        account of, collateral;
15            (C) rights arising out of collateral;
16            (D) to the extent of the value of collateral,
17        claims arising out of the loss, nonconformity, or
18        interference with the use of, defects or infringement
19        of rights in, or damage to, the collateral; or
20            (E) to the extent of the value of collateral and to
21        the extent payable to the debtor or the secured party,
22        insurance payable by reason of the loss or
23        nonconformity of, defects or infringement of rights
24        in, or damage to, the collateral.
25        (65) "Promissory note" means an instrument that
26    evidences a promise to pay a monetary obligation, does not

 

 

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1    evidence an order to pay, and does not contain an
2    acknowledgment by a bank that the bank has received for
3    deposit a sum of money or funds.
4        (66) "Proposal" means a record authenticated by a
5    secured party which includes the terms on which the secured
6    party is willing to accept collateral in full or partial
7    satisfaction of the obligation it secures pursuant to
8    Sections 9-620, 9-621, and 9-622.
9        (67) "Public-finance transaction" means a secured
10    transaction in connection with which:
11            (A) debt securities are issued;
12            (B) all or a portion of the securities issued have
13        an initial stated maturity of at least 20 years; and
14            (C) the debtor, obligor, secured party, account
15        debtor or other person obligated on collateral,
16        assignor or assignee of a secured obligation, or
17        assignor or assignee of a security interest is a State
18        or a governmental unit of a State.
19        (68) "Public organic record" means a record that is
20    available to the public for inspection and is:
21            (A) a record consisting of the record initially
22        filed with or issued by a State or the United States to
23        form or organize an organization and any record filed
24        with or issued by the State or the United States which
25        amends or restates the initial record;
26            (B) an organic record of a business trust

 

 

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1        consisting of the record initially filed with a State
2        and any record filed with the State which amends or
3        restates the initial record, if a statute of the State
4        governing business trusts requires that the record be
5        filed with the State; or
6            (C) a record consisting of legislation enacted by
7        the legislature of a State or the Congress of the
8        United States which forms or organizes an
9        organization, any record amending the legislation, and
10        any record filed with or issued by the State or the
11        United States which amends or restates the name of the
12        organization.
13        (69) "Pursuant to commitment", with respect to an
14    advance made or other value given by a secured party, means
15    pursuant to the secured party's obligation, whether or not
16    a subsequent event of default or other event not within the
17    secured party's control has relieved or may relieve the
18    secured party from its obligation.
19        (70) "Record", except as used in "for record", "of
20    record", "record or legal title", and "record owner", means
21    information that is inscribed on a tangible medium or which
22    is stored in an electronic or other medium and is
23    retrievable in perceivable form.
24        (71) "Registered organization" means an organization
25    formed or organized solely under the law of a single State
26    or the United States by the filing of a public organic

 

 

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1    record with, the issuance of a public organic record by, or
2    the enactment of legislation by the State or the United
3    States. The term includes a business trust that is formed
4    or organized under the law of a single State if a statute
5    of the State governing business trusts requires that the
6    business trust's organic record be filed with the State.
7        (72) "Secondary obligor" means an obligor to the extent
8    that:
9            (A) the obligor's obligation is secondary; or
10            (B) the obligor has a right of recourse with
11        respect to an obligation secured by collateral against
12        the debtor, another obligor, or property of either.
13        (73) "Secured party" means:
14            (A) a person in whose favor a security interest is
15        created or provided for under a security agreement,
16        whether or not any obligation to be secured is
17        outstanding;
18            (B) a person that holds an agricultural lien;
19            (C) a consignor;
20            (D) a person to which accounts, chattel paper,
21        payment intangibles, or promissory notes have been
22        sold;
23            (E) a trustee, indenture trustee, agent,
24        collateral agent, or other representative in whose
25        favor a security interest or agricultural lien is
26        created or provided for; or

 

 

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1            (F) a person that holds a security interest arising
2        under Section 2-401, 2-505, 2-711(3), 2A-508(5),
3        4-210, or 5-118.
4        (74) "Security agreement" means an agreement that
5    creates or provides for a security interest.
6        (75) "Send", in connection with a record or
7    notification, means:
8            (A) to deposit in the mail, deliver for
9        transmission, or transmit by any other usual means of
10        communication, with postage or cost of transmission
11        provided for, addressed to any address reasonable
12        under the circumstances; or
13            (B) to cause the record or notification to be
14        received within the time that it would have been
15        received if properly sent under subparagraph (A).
16        (76) "Software" means a computer program and any
17    supporting information provided in connection with a
18    transaction relating to the program. The term does not
19    include a computer program that is included in the
20    definition of goods.
21        (77) "State" means a State of the United States, the
22    District of Columbia, Puerto Rico, the United States Virgin
23    Islands, or any territory or insular possession subject to
24    the jurisdiction of the United States.
25        (78) "Supporting obligation" means a letter-of-credit
26    right or secondary obligation that supports the payment or

 

 

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1    performance of an account, chattel paper, a document, a
2    general intangible, an instrument, or investment property.
3        (79) "Tangible chattel paper" means chattel paper
4    evidenced by a record or records consisting of information
5    that is inscribed on a tangible medium.
6        (80) "Termination statement" means an amendment of a
7    financing statement which:
8            (A) identifies, by its file number, the initial
9        financing statement to which it relates; and
10            (B) indicates either that it is a termination
11        statement or that the identified financing statement
12        is no longer effective.
13        (81) "Transmitting utility" means a person primarily
14    engaged in the business of:
15            (A) operating a railroad, subway, street railway,
16        or trolley bus;
17            (B) transmitting communications electrically,
18        electromagnetically, or by light;
19            (C) transmitting goods by pipeline or sewer; or
20            (D) transmitting or producing and transmitting
21        electricity, steam, gas, or water.
22    (b) Definitions in other Articles. "Control" as provided in
23Section 7-106 and the following definitions in other Articles
24apply to this Article:
25    "Applicant". Section 5-102.
26    "Beneficiary". Section 5-102.

 

 

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1    "Broker". Section 8-102.
2    "Certificated security". Section 8-102.
3    "Check". Section 3-104.
4    "Clearing corporation". Section 8-102.
5    "Contract for sale". Section 2-106.
6    "Customer". Section 4-104.
7    "Entitlement holder". Section 8-102.
8    "Financial asset". Section 8-102.
9    "Holder in due course". Section 3-302.
10    "Issuer" (with respect to a letter of credit or
11letter-of-credit right). Section 5-102.
12    "Issuer" (with respect to a security). Section 8-201.
13    "Issuer" (with respect to documents of title). Section
147-102.
15    "Lease". Section 2A-103.
16    "Lease agreement". Section 2A-103.
17    "Lease contract". Section 2A-103.
18    "Leasehold interest". Section 2A-103.
19    "Lessee". Section 2A-103.
20    "Lessee in ordinary course of business". Section 2A-103.
21    "Lessor". Section 2A-103.
22    "Lessor's residual interest". Section 2A-103.
23    "Letter of credit". Section 5-102.
24    "Merchant". Section 2-104.
25    "Negotiable instrument". Section 3-104.
26    "Nominated person". Section 5-102.

 

 

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1    "Note". Section 3-104.
2    "Proceeds of a letter of credit". Section 5-114.
3    "Prove". Section 3-103.
4    "Sale". Section 2-106.
5    "Securities account". Section 8-501.
6    "Securities intermediary". Section 8-102.
7    "Security". Section 8-102.
8    "Security certificate". Section 8-102.
9    "Security entitlement". Section 8-102.
10    "Uncertificated security". Section 8-102.
11    (c) Article 1 definitions and principles. Article 1
12contains general definitions and principles of construction
13and interpretation applicable throughout this Article.
14(Source: P.A. 96-1477, eff. 1-1-11; 97-1034, eff. 7-1-13.)
 
15    Section 10-110. The Interest Act is amended by changing
16Sections 4, 4.2, and 4a as follows:
 
17    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
18    Sec. 4. General interest rate.
19    (1) Except as otherwise provided in Section 4.05, in all
20written contracts it shall be lawful for the parties to
21stipulate or agree that 9% per annum, or any less sum of
22interest, shall be taken and paid upon every $100 of money
23loaned or in any manner due and owing from any person to any
24other person or corporation in this state, and after that rate

 

 

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1for a greater or less sum, or for a longer or shorter time,
2except as herein provided.
3    The maximum rate of interest that may lawfully be
4contracted for is determined by the law applicable thereto at
5the time the contract is made. Any provision in any contract,
6whether made before or after July 1, 1969, which provides for
7or purports to authorize, contingent upon a change in the
8Illinois law after the contract is made, any rate of interest
9greater than the maximum lawful rate at the time the contract
10is made, is void.
11    It is lawful for a state bank or a branch of an
12out-of-state bank, as those terms are defined in Section 2 of
13the Illinois Banking Act, to receive or to contract to receive
14and collect interest and charges at any rate or rates agreed
15upon by the bank or branch and the borrower. It is lawful for a
16savings bank chartered under the Savings Bank Act or a savings
17association chartered under the Illinois Savings and Loan Act
18of 1985 to receive or contract to receive and collect interest
19and charges at any rate agreed upon by the savings bank or
20savings association and the borrower.
21    It is lawful to receive or to contract to receive and
22collect interest and charges as authorized by this Act and as
23authorized by the Consumer Installment Loan Act and by the
24"Consumer Finance Act", approved July 10, 1935, as now or
25hereafter amended, or by the Payday Loan Reform Act. It is
26lawful to charge, contract for, and receive any rate or amount

 

 

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1of interest or compensation with respect to the following
2transactions:
3        (a) Any loan made to a corporation;
4        (b) Advances of money, repayable on demand, to an
5    amount not less than $5,000, which are made upon warehouse
6    receipts, bills of lading, certificates of stock,
7    certificates of deposit, bills of exchange, bonds or other
8    negotiable instruments pledged as collateral security for
9    such repayment, if evidenced by a writing;
10        (c) Any credit transaction between a merchandise
11    wholesaler and retailer; any business loan to a business
12    association or copartnership or to a person owning and
13    operating a business as sole proprietor or to any persons
14    owning and operating a business as joint venturers, joint
15    tenants or tenants in common, or to any limited
16    partnership, or to any trustee owning and operating a
17    business or whose beneficiaries own and operate a business,
18    except that any loan which is secured (1) by an assignment
19    of an individual obligor's salary, wages, commissions or
20    other compensation for services, or (2) by his household
21    furniture or other goods used for his personal, family or
22    household purposes shall be deemed not to be a loan within
23    the meaning of this subsection; and provided further that a
24    loan which otherwise qualifies as a business loan within
25    the meaning of this subsection shall not be deemed as not
26    so qualifying because of the inclusion, with other security

 

 

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1    consisting of business assets of any such obligor, of real
2    estate occupied by an individual obligor solely as his
3    residence. The term "business" shall be deemed to mean a
4    commercial, agricultural or industrial enterprise which is
5    carried on for the purpose of investment or profit, but
6    shall not be deemed to mean the ownership or maintenance of
7    real estate occupied by an individual obligor solely as his
8    residence;
9        (d) Any loan made in accordance with the provisions of
10    Subchapter I of Chapter 13 of Title 12 of the United States
11    Code, which is designated as "Housing Renovation and
12    Modernization";
13        (e) Any mortgage loan insured or upon which a
14    commitment to insure has been issued under the provisions
15    of the National Housing Act, Chapter 13 of Title 12 of the
16    United States Code;
17        (f) Any mortgage loan guaranteed or upon which a
18    commitment to guaranty has been issued under the provisions
19    of the Veterans' Benefits Act, Subchapter II of Chapter 37
20    of Title 38 of the United States Code;
21        (g) Interest charged by a broker or dealer registered
22    under the Securities Exchange Act of 1934, as amended, or
23    registered under the Illinois Securities Law of 1953,
24    approved July 13, 1953, as now or hereafter amended, on a
25    debit balance in an account for a customer if such debit
26    balance is payable at will without penalty and is secured

 

 

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1    by securities as defined in Uniform Commercial
2    Code-Investment Securities;
3        (h) Any loan made by a participating bank as part of
4    any loan guarantee program which provides for loans and for
5    the refinancing of such loans to medical students, interns
6    and residents and which are guaranteed by the American
7    Medical Association Education and Research Foundation;
8        (i) Any loan made, guaranteed, or insured in accordance
9    with the provisions of the Housing Act of 1949, Subchapter
10    III of Chapter 8A of Title 42 of the United States Code and
11    the Consolidated Farm and Rural Development Act,
12    Subchapters I, II, and III of Chapter 50 of Title 7 of the
13    United States Code;
14        (j) Any loan by an employee pension benefit plan, as
15    defined in Section 3 (2) of the Employee Retirement Income
16    Security Act of 1974 (29 U.S.C.A. Sec. 1002), to an
17    individual participating in such plan, provided that such
18    loan satisfies the prohibited transaction exemption
19    requirements of Section 408 (b) (1) (29 U.S.C.A. Sec. 1108
20    (b) (1)) or Section 2003 (a) (26 U.S.C.A. Sec. 4975 (d)
21    (1)) of the Employee Retirement Income Security Act of
22    1974;
23        (k) Written contracts, agreements or bonds for deed
24    providing for installment purchase of real estate,
25    including a manufactured home as defined in subdivision
26    (53) of Section 9-102 of the Uniform Commercial Code that

 

 

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1    is real property as defined in the Conveyance and
2    Encumbrance of Manufactured Homes as Real Property and
3    Severance Act;
4        (1) Loans secured by a mortgage on real estate,
5    including a manufactured home as defined in subdivision
6    (53) of Section 9-102 of the Uniform Commercial Code that
7    is real property as defined in the Conveyance and
8    Encumbrance of Manufactured Homes as Real Property and
9    Severance Act;
10        (m) Loans made by a sole proprietorship, partnership,
11    or corporation to an employee or to a person who has been
12    offered employment by such sole proprietorship,
13    partnership, or corporation made for the sole purpose of
14    transferring an employee or person who has been offered
15    employment to another office maintained and operated by the
16    same sole proprietorship, partnership, or corporation;
17        (n) Loans to or for the benefit of students made by an
18    institution of higher education.
19    (2) Except for loans described in subparagraph (a), (c),
20(d), (e), (f) or (i) of subsection (1) of this Section, and
21except to the extent permitted by the applicable statute for
22loans made pursuant to Section 4a or pursuant to the Consumer
23Installment Loan Act:
24        (a) Whenever the rate of interest exceeds 8% per annum
25    on any written contract, agreement or bond for deed
26    providing for the installment purchase of residential real

 

 

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1    estate, or on any loan secured by a mortgage on residential
2    real estate, it shall be unlawful to provide for a
3    prepayment penalty or other charge for prepayment.
4        (b) No agreement, note or other instrument evidencing a
5    loan secured by a mortgage on residential real estate, or
6    written contract, agreement or bond for deed providing for
7    the installment purchase of residential real estate, may
8    provide for any change in the contract rate of interest
9    during the term thereof. However, if the Congress of the
10    United States or any federal agency authorizes any class of
11    lender to enter, within limitations, into mortgage
12    contracts or written contracts, agreements or bonds for
13    deed in which the rate of interest may be changed during
14    the term of the contract, any person, firm, corporation or
15    other entity not otherwise prohibited from entering into
16    mortgage contracts or written contracts, agreements or
17    bonds for deed in Illinois may enter into mortgage
18    contracts or written contracts, agreements or bonds for
19    deed in which the rate of interest may be changed during
20    the term of the contract, within the same limitations.
21    (3) In any contract or loan which is secured by a mortgage,
22deed of trust, or conveyance in the nature of a mortgage, on
23residential real estate, the interest which is computed,
24calculated, charged, or collected pursuant to such contract or
25loan, or pursuant to any regulation or rule promulgated
26pursuant to this Act, may not be computed, calculated, charged

 

 

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1or collected for any period of time occurring after the date on
2which the total indebtedness, with the exception of late
3payment penalties, is paid in full.
4    (4) For purposes of this Section, a prepayment shall mean
5the payment of the total indebtedness, with the exception of
6late payment penalties if incurred or charged, on any date
7before the date specified in the contract or loan agreement on
8which the total indebtedness shall be paid in full, or before
9the date on which all payments, if timely made, shall have been
10made. In the event of a prepayment of the indebtedness which is
11made on a date after the date on which interest on the
12indebtedness was last computed, calculated, charged, or
13collected but before the next date on which interest on the
14indebtedness was to be calculated, computed, charged, or
15collected, the lender may calculate, charge and collect
16interest on the indebtedness for the period which elapsed
17between the date on which the prepayment is made and the date
18on which interest on the indebtedness was last computed,
19calculated, charged or collected at a rate equal to 1/360 of
20the annual rate for each day which so elapsed, which rate shall
21be applied to the indebtedness outstanding as of the date of
22prepayment. The lender shall refund to the borrower any
23interest charged or collected which exceeds that which the
24lender may charge or collect pursuant to the preceding
25sentence. The provisions of this amendatory Act of 1985 shall
26apply only to contracts or loans entered into on or after the

 

 

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1effective date of this amendatory Act, but shall not apply to
2contracts or loans entered into on or after that date that are
3subject to Section 4a of this Act, the Consumer Installment
4Loan Act, the Payday Loan Reform Act, or the Retail Installment
5Sales Act, or that provide for the refund of precomputed
6interest on prepayment in the manner provided by such Act.
7    (5) For purposes of items (a) and (c) of subsection (1) of
8this Section, a rate or amount of interest may be lawfully
9computed when applying the ratio of the annual interest rate
10over a year based on 360 days. The provisions of this
11amendatory Act of the 96th General Assembly are declarative of
12existing law.
13    (6) For purposes of this Section, "real estate" and "real
14property" include a manufactured home, as defined in
15subdivision (53) of Section 9-102 of the Uniform Commercial
16Code that is real property as defined in the Conveyance and
17Encumbrance of Manufactured Homes as Real Property and
18Severance Act.
19(Source: P.A. 95-331, eff. 8-21-07; 96-1421, eff. 8-3-10.)
 
20    (815 ILCS 205/4.2)  (from Ch. 17, par. 6407)
21    Sec. 4.2. Revolving credit; billing statements;
22disclosures. On a revolving credit which complies with
23subparagraphs (a), (b), (c), (d) and (e) of this Section 4.2,
24it is lawful for any bank that has its main office or, after
25May 31, 1997, a branch in this State, a state or federal

 

 

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1savings and loan association with its main office in this
2State, a state or federal credit union with its main office in
3this State, or a lender licensed under the Consumer Finance
4Act, the Consumer Installment Loan Act or the Sales Finance
5Agency Act, as such Acts are now and hereafter amended, to
6receive or contract to receive and collect interest in any
7amount or at any rate agreed upon by the parties to the
8revolving credit arrangement. It is lawful for any other lender
9to receive or contract to receive and collect interest in an
10amount not in excess of 1 1/2% per month of either the average
11daily unpaid balance of the principal of the debt during the
12billing cycle, or of the unpaid balance of the debt on
13approximately the same day of the billing cycle. If a lender
14under a revolving credit arrangement notifies the debtor at
15least 30 days in advance of any lawful increase in the amount
16or rate of interest to be charged under the revolving credit
17arrangement, and the debtor, after the effective date of such
18notice, incurs new debt pursuant to the revolving credit
19arrangement, the increased interest amount or rate may be
20applied only to any such new debt incurred under the revolving
21credit arrangement. For purposes of determining the balances to
22which the increased interest rate applies, all payments and
23other credits may be deemed to be applied to the balance
24existing prior to the change in rate until that balance is paid
25in full. The face amount of the drafts, items, orders for the
26payment of money, evidences of debt, or similar written

 

 

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1instruments received by the lender in connection with the
2revolving credit, less the amounts applicable to principal from
3time to time paid thereon by the debtor, are the unpaid balance
4of the debt upon which the interest is computed. If the billing
5cycle is not monthly, the maximum interest rate for the billing
6cycle is the percentage which bears the same relation to the
7monthly percentage provided for in the preceding sentence as
8the number of days in the billing cycle bears to 30. For the
9purposes of the foregoing computation, a "month" is deemed to
10be any time of 30 consecutive days. In addition to the interest
11charge provided for, it is lawful to receive, contract for or
12collect a charge not exceeding 25 cents for each transaction in
13which a loan or advance is made under the revolving credit or
14in lieu of this additional charge an annual fee for the
15privilege of receiving and using the revolving credit in an
16amount not exceeding $20. In addition, with respect to
17revolving credit secured by an interest in real estate,
18including a manufactured home as defined in subdivision (53) of
19Section 9-102 of the Uniform Commercial Code that is real
20property as defined in the Conveyance and Encumbrance of
21Manufactured Homes as Real Property and Severance Act, it is
22also lawful to receive, contract for or collect fees lawfully
23paid to any public officer or agency to record, file or release
24the security, and costs and disbursements actually incurred for
25any title insurance, title examination, abstract of title,
26survey, appraisal, escrow fees, and fees paid to a trustee in

 

 

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1connection with a trust deed.
2    (a) At or before the date a bill or statement is first
3rendered to the debtor under a revolving credit arrangement,
4the lender must mail or deliver to the debtor a written
5description of the conditions under which a charge for interest
6may be made and the method, including the rate, of computing
7these interest charges. The rate of interest must be expressed
8as an annual percentage rate.
9    (b) If during any billing cycle any debit or credit entry
10is made to a debtor's revolving credit account, and if at the
11end of that billing cycle there is an unpaid balance owing to
12the lender from the debtor, the lender must give to the debtor
13the following information within a reasonable time after the
14end of the billing cycle:
15        (i) the unpaid balance at the beginning of the billing
16    cycle;
17        (ii) the date and amount of all loans or advances made
18    during the billing cycle, which information may be supplied
19    by enclosing a copy of the drafts, items, orders for the
20    payment of money, evidences of debt or similar written
21    instruments presented to the lender during the billing
22    cycle;
23        (iii) the payments by the debtor to the lender and any
24    other credits to the debtor during the billing cycle;
25        (iv) the amount of interest and other charges, if any,
26    charged to the debtor's account during the billing cycle;

 

 

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1        (v) the amount which must be currently paid by the
2    debtor and the date on which that amount must be paid in
3    order to avoid delinquency;
4        (vi) the total amount remaining unpaid at the end of
5    the billing cycle and the right of the debtor to prepay
6    that amount in full without penalty; and
7        (vii) information required by (iv), (v) and (vi) must
8    be set forth in type of equal size and equal
9    conspicuousness.
10    (c) The revolving credit arrangement may provide for the
11payment by the debtor and receipt by the lender of all costs
12and disbursements, including reasonable attorney's fees,
13incurred by the lender in legal proceedings to collect or
14enforce the debt in the event of delinquency by the debtor or
15in the event of a breach of any obligation of the debtor under
16the arrangement.
17    (d) The lender under a revolving credit arrangement may
18provide credit life insurance or credit accident and health
19insurance, or both, with respect to the debtor and may charge
20the debtor therefor. Credit life insurance and credit accident
21and health insurance, and any charge therefor made to the
22debtor, shall comply with Article IX 1/2 of the Illinois
23Insurance Code, as now or hereafter amended, and all lawful
24requirements of the Director of Insurance related thereto. This
25insurance is in force with respect to each loan or advance made
26under a revolving credit arrangement as soon as the loan or

 

 

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1advance is made. The purchase of this insurance from an agent,
2broker or insurer specified by the lender may not be a
3condition precedent to the revolving credit arrangement or to
4the making of any loan or advance thereunder.
5    (e) Whenever interest is contracted for or received under
6this Section, no amount in addition to the charges authorized
7by this Act may be directly or indirectly charged, contracted
8for or received whether as interest, service charges, costs of
9investigations or enforcements or otherwise.
10    (f) The lender under a revolving credit arrangement must
11compute at year end the total amount charged to the debtor's
12account during the year, including service charges, finance
13charges, late charges and any other charges authorized by this
14Act, and upon request must furnish such information to the
15debtor within 30 days after the end of the year, or if the
16account has been terminated during such year, may give such
17requested information within 30 days after such termination.
18The lender shall annually inform the debtor of his right to
19obtain such information.
20    (g) A lender who complies with the federal Truth in Lending
21Act, amendments thereto, and any regulations issued or which
22may be issued thereunder, shall be deemed to be in compliance
23with the provisions of subparagraphs (a) and (b) of this
24Section.
25    (h) Anything in this Section 4.2 to the contrary
26notwithstanding, if the Congress of the United States or any

 

 

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1federal agency authorizes any class of lenders to enter, within
2limitations, into a revolving credit arrangement secured by a
3mortgage or deed of trust on residential real property, any
4person, firm, corporation or other entity, not otherwise
5prohibited by the Congress of the United States or any federal
6agency from entering into revolving credit arrangements
7secured by a mortgage or deed of trust on residential real
8property, may enter into such arrangements within the same
9limitations.
10(Source: P.A. 89-208, eff. 9-29-95.)
 
11    (815 ILCS 205/4a)  (from Ch. 17, par. 6410)
12    Sec. 4a. Installment loan rate.
13    (a) On money loaned to or in any manner owing from any
14person, whether secured or unsecured, except where the money
15loaned or in any manner owing is directly or indirectly for the
16purchase price of real estate or an interest therein and is
17secured by a lien on or retention of title to that real estate
18or interest therein, to an amount not more than $25,000
19(excluding interest) which is evidenced by a written instrument
20providing for the payment thereof in 2 or more periodic
21installments over a period of not more than 181 months from the
22date of the execution of the written instrument, it is lawful
23to receive or to contract to receive and collect either:
24        (i) interest in an amount equivalent to interest
25    computed at a rate not exceeding 9% per year on the entire

 

 

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1    principal amount of the money loaned or in any manner owing
2    for the period from the date of the making of the loan or
3    the incurring of the obligation for the amount owing
4    evidenced by the written instrument until the date of the
5    maturity of the last installment thereof, and to add that
6    amount to the principal, except that there shall be no
7    limit on the rate of interest which may be received or
8    contracted to be received and collected by (1) any bank
9    that has its main office or, after May 31, 1997, a branch
10    in this State; (2) a savings and loan association chartered
11    under the Illinois Savings and Loan Act of 1985, a savings
12    bank chartered under the Savings Bank Act, or a federal
13    savings and loan association established under the laws of
14    the United States and having its main office in this State;
15    or (3) any lender licensed under either the Consumer
16    Finance Act or the Consumer Installment Loan Act, but in
17    any case in which interest is received, contracted for or
18    collected on the basis of this clause (i), the debtor may
19    satisfy in full at any time before maturity the debt
20    evidenced by the written instrument, and in so satisfying
21    must receive a refund credit against the total amount of
22    interest added to the principal computed in the manner
23    provided under Section 15(f)(3) of the Consumer
24    Installment Loan Act for refunds or credits of applicable
25    interest on payment in full of precomputed loans before the
26    final installment due date; or

 

 

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1        (ii) interest accrued on the principal balance from
2    time to time remaining unpaid, from the date of making of
3    the loan or the incurring of the obligation to the date of
4    the payment of the debt in full, at a rate not exceeding
5    the annual percentage rate equivalent of the rate permitted
6    to be charged under clause (i) above, but in any such case
7    the debtor may, provided that the debtor shall have paid in
8    full all interest and other charges accrued to the date of
9    such prepayment, prepay the principal balance in full or in
10    part at any time, and interest shall, upon any such
11    prepayment, cease to accrue on the principal amount which
12    has been prepaid.
13    (b) Whenever the principal amount of an installment loan is
14$300 or more and the repayment period is 6 months or more, a
15minimum charge of $15 may be collected instead of interest, but
16only one minimum charge may be collected from the same person
17during one year. When the principal amount of the loan
18(excluding interest) is $800 or less, the lender or creditor
19may contract for and receive a service charge not to exceed $5
20in addition to interest; and that service charge may be
21collected when the loan is made, but only one service charge
22may be contracted for, received, or collected from the same
23person during one year.
24    (c) Credit life insurance and credit accident and health
25insurance, and any charge therefor which is deducted from the
26loan or paid by the obligor, must comply with Article IX 1/2 of

 

 

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1the Illinois Insurance Code and all lawful requirements of the
2Director of Insurance related thereto. When there are 2 or more
3obligors on the loan contract, only one charge for credit life
4insurance and credit accident and health insurance may be made
5and only one of the obligors may be required to be insured.
6Insurance obtained from, by or through the lender or creditor
7must be in effect when the loan is transacted. The purchase of
8that insurance from an agent, broker or insurer specified by
9the lender or creditor may not be a condition precedent to the
10granting of the loan.
11    (d) The lender or creditor may require the obligor to
12provide property insurance on security other than household
13goods, furniture and personal effects. The amount and term of
14the insurance must be reasonable in relation to the amount and
15term of the loan contract and the type and value of the
16security, and the insurance must be procured in accordance with
17the insurance laws of this State. The purchase of that
18insurance from an agent, broker or insurer specified by the
19lender or creditor may not be a condition precedent to the
20granting of the loan.
21    (e) The lender or creditor may, if the contract provides,
22collect a delinquency and collection charge on each installment
23in default for a period of not less than 10 days in an amount
24not exceeding 5% of the installment on installments in excess
25of $200 or $10 on installments of $200 or less, but only one
26delinquency and collection charge may be collected on any

 

 

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1installment regardless of the period during which it remains in
2default. In addition, the contract may provide for the payment
3by the borrower or debtor of attorney's fees incurred by the
4lender or creditor. The lender or creditor may enforce such a
5provision to the extent of the reasonable attorney's fees
6incurred by him in the collection or enforcement of the
7contract or obligation. Whenever interest is contracted for or
8received under this Section, no amount in addition to the
9charges authorized by this Section may be directly or
10indirectly charged, contracted for or received, except lawful
11fees paid to a public officer or agency to record, file or
12release security, and except costs and disbursements including
13reasonable attorney's fees, incurred in legal proceedings to
14collect a loan or to realize on a security after default. This
15Section does not prohibit the receipt of any commission,
16dividend or other benefit by the creditor or an employee,
17affiliate or associate of the creditor from the insurance
18authorized by this Section.
19    (f) When interest is contracted for or received under this
20Section, the lender must disclose the following items to the
21obligor in a written statement before the loan is consummated:
22        (1) the amount and date of the loan contract;
23        (2) the amount of loan credit using the term "amount
24    financed";
25        (3) every deduction from the amount financed or payment
26    made by the obligor for insurance and the type of insurance

 

 

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1    for which each deduction or payment was made;
2        (4) every other deduction from the loan or payment made
3    by the obligor in connection with obtaining the loan;
4        (5) the date on which the finance charge begins to
5    accrue if different from the date of the transaction;
6        (6) the total amount of the loan charge for the
7    scheduled term of the loan contract with a description of
8    each amount included using the term "finance charge";
9        (7) the finance charge expressed as an annual
10    percentage rate using the term "annual percentage rate".
11    "Annual percentage rate" means the nominal annual
12    percentage rate of finance charge determined in accordance
13    with the actuarial method of computation with an accuracy
14    at least to the nearest 1/4 of 1%; or at the option of the
15    lender by application of the United States rule so that it
16    may be disclosed with an accuracy at least to the nearest
17    1/4 of 1%;
18        (8) the number, amount and due dates or periods of
19    payments scheduled to repay the loan and the sum of such
20    payments using the term "total of payments";
21        (9) the amount, or method of computing the amount of
22    any default, delinquency or similar charges payable in the
23    event of late payments;
24        (10) the right of the obligor to prepay the loan and
25    the fact that such prepayment will reduce the charge for
26    the loan;

 

 

HB2927- 188 -LRB098 07544 HLH 37615 b

1        (11) a description or identification of the type of any
2    security interest held or to be retained or acquired by the
3    lender in connection with the loan and a clear
4    identification of the property to which the security
5    interest relates. If after-acquired property will be
6    subject to the security interest, or if other or future
7    indebtedness is or may be secured by any such property,
8    this fact shall be clearly set forth in conjunction with
9    the description or identification of the type of security
10    interest held, retained or acquired;
11        (12) a description of any penalty charge that may be
12    imposed by the lender for prepayment of the principal of
13    the obligation with an explanation of the method of
14    computation of such penalty and the conditions under which
15    it may be imposed;
16        (13) unless the contract provides for the accrual and
17    payment of the finance charge on the balance of the amount
18    financed from time to time remaining unpaid, an
19    identification of the method of computing any unearned
20    portion of the finance charge in the event of prepayment of
21    the loan.
22    The terms "finance charge" and "annual percentage rate"
23shall be printed more conspicuously than other terminology
24required by this Section.
25    (g) At the time disclosures are made, the lender shall
26deliver to the obligor a duplicate of the instrument or

 

 

HB2927- 189 -LRB098 07544 HLH 37615 b

1statement by which the required disclosures are made and on
2which the lender and obligor are identified and their addresses
3stated. All of the disclosures shall be made clearly,
4conspicuously and in meaningful sequence and made together on
5either:
6        (i) the note or other instrument evidencing the
7    obligation on the same side of the page and above or
8    adjacent to the place for the obligor's signature; however,
9    where a creditor elects to combine disclosures with the
10    contract, security agreement, and evidence of a
11    transaction in a single document, the disclosures required
12    under this Section shall be made on the face of the
13    document, on the reverse side, or on both sides, provided
14    that the amount of the finance charge and the annual
15    percentage rate shall appear on the face of the document,
16    and, if the reverse side is used, the printing on both
17    sides of the document shall be equally clear and
18    conspicuous, both sides shall contain the statement,
19    "NOTICE: See other side for important information", and the
20    place for the customer's signature shall be provided
21    following the full content of the document; or
22        (ii) one side of a separate statement which identifies
23    the transaction.
24    The amount of the finance charge shall be determined as the
25sum of all charges, payable directly or indirectly by the
26obligor and imposed directly or indirectly by the lender as an

 

 

HB2927- 190 -LRB098 07544 HLH 37615 b

1incident to or as a condition to the extension of credit,
2whether paid or payable by the obligor, any other person on
3behalf of the obligor, to the lender or to a third party,
4including any of the following types of charges:
5        (1) Interest, time price differential, and any amount
6    payable under a discount or other system of additional
7    charges.
8        (2) Service, transaction, activity, or carrying
9    charge.
10        (3) Loan fee, points, finder's fee, or similar charge.
11        (4) Fee for an appraisal, investigation, or credit
12    report.
13        (5) Charges or premiums for credit life, accident,
14    health, or loss of income insurance, written in connection
15    with any credit transaction unless (a) the insurance
16    coverage is not required by the lender and this fact is
17    clearly and conspicuously disclosed in writing to the
18    obligor; and (b) any obligor desiring such insurance
19    coverage gives specific dated and separately signed
20    affirmative written indication of such desire after
21    receiving written disclosure to him of the cost of such
22    insurance.
23        (6) Charges or premiums for insurance, written in
24    connection with any credit transaction, against loss of or
25    damage to property or against liability arising out of the
26    ownership or use of property, unless a clear, conspicuous,

 

 

HB2927- 191 -LRB098 07544 HLH 37615 b

1    and specific statement in writing is furnished by the
2    lender to the obligor setting forth the cost of the
3    insurance if obtained from or through the lender and
4    stating that the obligor may choose the person through
5    which the insurance is to be obtained.
6        (7) Premium or other charges for any other guarantee or
7    insurance protecting the lender against the obligor's
8    default or other credit loss.
9        (8) Any charge imposed by a lender upon another lender
10    for purchasing or accepting an obligation of an obligor if
11    the obligor is required to pay any part of that charge in
12    cash, as an addition to the obligation, or as a deduction
13    from the proceeds of the obligation.
14    A late payment, delinquency, default, reinstatement or
15other such charge is not a finance charge if imposed for actual
16unanticipated late payment, delinquency, default or other
17occurrence.
18    (h) Advertising for loans transacted under this Section may
19not be false, misleading, or deceptive. That advertising, if it
20states a rate or amount of interest, must state that rate as an
21annual percentage rate of interest charged. In addition, if
22charges other than for interest are made in connection with
23those loans, those charges must be separately stated. No
24advertising may indicate or imply that the rates or charges for
25loans are in any way "recommended", "approved", "set" or
26"established" by the State government or by this Act.

 

 

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1    (i) A lender or creditor who complies with the federal
2Truth in Lending Act, amendments thereto, and any regulations
3issued or which may be issued thereunder, shall be deemed to be
4in compliance with the provisions of subsections (f), (g) and
5(h) of this Section.
6    (j) For purposes of this Section, "real estate" and "real
7property" include a manufactured home as defined in subdivision
8(53) of Section 9-102 of the Uniform Commercial Code that is
9real property as defined in the Conveyance and Encumbrance of
10Manufactured Homes as Real Property and Severance Act.
11(Source: P.A. 92-483, eff. 8-23-01.)
 
12    Section 10-115. The Motor Vehicle Retail Installment Sales
13Act is amended by changing Section 2.1 as follows:
 
14    (815 ILCS 375/2.1)  (from Ch. 121 1/2, par. 562.1)
15    Sec. 2.1.
16    "Motor vehicle" means a motor vehicle as defined in The
17Illinois Vehicle Code but does not include bicycles,
18motorcycles, motor scooters, snowmobiles, trailers, and farm
19equipment, and manufactured homes as defined in subdivision
20(53) of Section 9-102 of the Uniform Commercial Code.
21(Source: P.A. 77-1167.)
 
22    Section 10-120. The Retail Installment Sales Act is amended
23by changing Section 2.1 as follows:
 

 

 

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1    (815 ILCS 405/2.1)  (from Ch. 121 1/2, par. 502.1)
2    Sec. 2.1. "Goods" means all goods used or purchased
3primarily for personal, family, or household purposes. "Goods"
4includes goods purchased primarily for agricultural purposes
5only for the purposes of the credit disclosure requirements of
6this Act. "Goods" includes merchandise certificates or coupons
7issued by a retail seller to be used in their face amount in
8the purchase of goods or services sold by such a seller but
9does not include money or other things in action. It also
10includes goods which are furnished or used, at the time of sale
11or subsequently, in the modernization, rehabilitation, repair,
12alteration, improvement, or construction of real estate so as
13to become a part of that real estate whether or not severable
14therefrom. "Goods" includes a manufactured home as defined in
15subdivision (53) of Section 9-102 of the Uniform Commercial
16Code that is not real property as defined in the Conveyance and
17Encumbrance of Manufactured Homes as Real Property and
18Severance Act. "Goods" does not include a motor vehicle as
19defined in The Illinois Vehicle Code, but does include
20bicycles, motorcycles, motor scooters, snowmobiles and
21trailers when purchased primarily for personal, family or
22household purposes. "Goods" does not include goods used or
23purchased primarily for business or commercial purposes.
24(Source: P.A. 77-1166.)
 

 

 

HB2927- 194 -LRB098 07544 HLH 37615 b

1
ARTICLE 99. EFFECTIVE DATE

 
2    Section 99-999. Effective date. This Act takes effect upon
3becoming law.

 

 

HB2927- 195 -LRB098 07544 HLH 37615 b

1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    35 ILCS 200/1-130
5    35 ILCS 515/1from Ch. 120, par. 1201
6    35 ILCS 515/4from Ch. 120, par. 1204
7    205 ILCS 5/3from Ch. 17, par. 309
8    205 ILCS 5/5afrom Ch. 17, par. 312
9    205 ILCS 5/5dfrom Ch. 17, par. 312.3
10    205 ILCS 5/6.1from Ch. 17, par. 313.1
11    205 ILCS 105/1-10.30from Ch. 17, par. 3301-10.30
12    205 ILCS 105/5-2from Ch. 17, par. 3305-2
13    205 ILCS 205/6002from Ch. 17, par. 7306-2
14    205 ILCS 205/6008from Ch. 17, par. 7306-8
15    205 ILCS 305/46from Ch. 17, par. 4447
16    205 ILCS 305/46.1from Ch. 17, par. 4447.1
17    205 ILCS 635/1-4
18    210 ILCS 115/2.1from Ch. 111 1/2, par. 712.1
19    210 ILCS 117/10
20    430 ILCS 115/2from Ch. 67 1/2, par. 502
21    430 ILCS 117/10
22    625 ILCS 5/1-144.03 new
23    625 ILCS 5/3-100from Ch. 95 1/2, par. 3-100
24    625 ILCS 5/3-102from Ch. 95 1/2, par. 3-102
25    625 ILCS 5/3-103from Ch. 95 1/2, par. 3-103

 

 

HB2927- 196 -LRB098 07544 HLH 37615 b

1    625 ILCS 5/3-104from Ch. 95 1/2, par. 3-104
2    625 ILCS 5/3-106from Ch. 95 1/2, par. 3-106
3    625 ILCS 5/3-107from Ch. 95 1/2, par. 3-107
4    625 ILCS 5/3-109from Ch. 95 1/2, par. 3-109
5    625 ILCS 5/3-110from Ch. 95 1/2, par. 3-110
6    625 ILCS 5/3-116from Ch. 95 1/2, par. 3-116
7    625 ILCS 5/3-116.1 new
8    625 ILCS 5/3-116.2 new
9    625 ILCS 5/3-116.3 new
10    625 ILCS 5/3-202from Ch. 95 1/2, par. 3-202
11    625 ILCS 5/3-205from Ch. 95 1/2, par. 3-205
12    625 ILCS 5/3-207from Ch. 95 1/2, par. 3-207
13    625 ILCS 5/3-208from Ch. 95 1/2, par. 3-208
14    735 ILCS 5/15-1213from Ch. 110, par. 15-1213
15    765 ILCS 5/38from Ch. 30, par. 37
16    765 ILCS 77/5
17    765 ILCS 745/3from Ch. 80, par. 203
18    765 ILCS 905/13.1 new
19    765 ILCS 1005/5 new
20    810 ILCS 5/9-102from Ch. 26, par. 9-102
21    815 ILCS 205/4from Ch. 17, par. 6404
22    815 ILCS 205/4.2from Ch. 17, par. 6407
23    815 ILCS 205/4afrom Ch. 17, par. 6410
24    815 ILCS 375/2.1from Ch. 121 1/2, par. 562.1
25    815 ILCS 405/2.1from Ch. 121 1/2, par. 502.1