Rep. Brandon W. Phelps

Filed: 4/12/2013

 

 


 

 


 
09800HB2927ham001LRB098 07544 HLH 44335 a

1
AMENDMENT TO HOUSE BILL 2927

2    AMENDMENT NO. ______. Amend House Bill 2927 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1manufactured homes located outside of mobile home parks that
2are affixed to real property and for the severance of
3manufactured homes from real property.
 
4    Section 5-5. Manufactured home; permanently affixed to
5real property. For the purposes of this Act, "manufactured
6home" means a manufactured home as defined in subdivision (53)
7of Section 9-102 of the Uniform Commercial Code.
8Notwithstanding the foregoing, for the purposes of subsection
9(b)(2) of Section 1322 of the federal Bankruptcy Code (11
10U.S.C. 1322(b)(2)), a manufactured home shall be deemed to be
11real property. For the purposes of this Act, a manufactured
12home is "affixed to a permanent foundation" if it is anchored
13to real property by attachment to a permanent foundation and
14connected to residential utilities (such as water, gas,
15electricity, or sewer or septic service).
 
16    Section 5-10. Act not mandatory; record notice. The owner
17of a manufactured home that is personal property or a fixture
18may, but need not, cause that manufactured home to be deemed to
19be real property by satisfying the requirements of Section 5-30
20of this Act and the requirements of Section 3-116.1 or 3-116.2
21of the Illinois Vehicle Code, as applicable.
22    To convey or voluntarily encumber a manufactured home as
23real property, the following conditions must be met:
24        (1) the manufactured home must be affixed a permanent

 

 

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

 

 

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1        affidavit of affixation and the original
2        Manufacturer's Statement of Origin, each as recorded
3        in the county in which the real property is located,
4        must be filed with the Secretary of State pursuant to
5        Section 3-116.1 of the Illinois Vehicle Code; and
6            (B) in a case described in subsection (a)(4)(B) of
7        Section 5-15 of this Act, a certified copy of the
8        recorded affidavit of affixation as recorded in the
9        county in which the real property is located, and the
10        original certificate of title, including, if
11        applicable, a certificate of title issued in
12        accordance with subsection (b) of Section 3-109 of the
13        Illinois Vehicle Code, must be filed with the Secretary
14        of State pursuant to Section 3-116.2 of the Illinois
15        Vehicle Code.
 
16    Section 5-15. Affidavit of affixation.
17    (a) An affidavit of affixation shall contain or be
18accompanied by:
19        (1) the name of the manufacturer, the make, the model
20    name, the model year, the dimensions, and the
21    manufacturer's serial number or numbers of the
22    manufactured home, and whether the manufactured home is new
23    or used;
24        (2)(A) a statement that the party executing the
25    affidavit is the owner of the real property described

 

 

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1    therein or (B) if the party executing the affidavit is not
2    the owner of the real property, (1) a statement that the
3    manufactured home is not located in a mobile home park as
4    defined in Section 2.5 of the Mobile Home Park Act and that
5    the party executing the affidavit is in possession of the
6    real property pursuant to the terms of a lease in
7    recordable form that has a term that continues for at least
8    20 years after the date of execution of the affidavit and
9    (2) the consent of the lessor of the real property,
10    endorsed upon or attached to the affidavit and acknowledged
11    or proved in the manner as to entitle a conveyance to be
12    recorded;
13        (3) the street address and the legal description of the
14    real property to which the manufactured home is or shall be
15    affixed; and
16        (4) as applicable:
17            (A) if the manufactured home is not covered by a
18        certificate of title, including, if applicable, a
19        certificate of title issued in accordance with
20        subsection (b) of Section 3-109 of the Illinois Vehicle
21        Code, a statement by the owner to that effect, and
22                (i) a statement by the owner of the
23            manufactured home that the manufactured home is
24            covered by a Manufacturer's Statement of Origin,
25            the date the Manufacturer's Statement of Origin
26            was issued, and the manufacturer's serial number

 

 

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1            or numbers of the manufactured home; and
2                (ii) a statement that annexed to the affidavit
3            of affixation is the original Manufacturer's
4            Statement of Origin for the manufactured home,
5            duly endorsed to the owner of the manufactured
6            home, and that the owner of the manufactured home
7            shall surrender the Manufacturer's Statement of
8            Origin; or
9            (B) if the manufactured home is covered by a
10        certificate of title, including, if applicable, a
11        certificate of title issued in accordance with
12        subsection (b) of Section 3-109 of the Illinois Vehicle
13        Code, a statement by the owner of the manufactured home
14        that the manufactured home is covered by a certificate
15        of title, the date the title was issued, the title
16        number, and that the owner of the manufactured home
17        shall surrender the title;
18        (5) a statement whether or not the manufactured home is
19    subject to one or more security interests or liens, and
20            (A) if the manufactured home is subject to one or
21        more security interests or liens, the name and address
22        of each party holding a security interest in or lien on
23        the manufactured home, including but not limited to,
24        each holder shown on any certificate of title issued by
25        the Secretary of State, if any, the original principal
26        amount secured by each security interest or lien; and a

 

 

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1        statement that the security interest or lien shall be
2        released; or
3            (B) a statement that each security interest in or
4        lien on the manufactured home, if any, has been
5        released, together with due proof of each such release;
6        (6) a statement that the manufactured home is or shall
7    be affixed to a permanent foundation; and
8        (7) the name and address of a person designated for
9    filing the certified copy of the affidavit of affixation
10    with the Secretary of State, to whom the recording officer
11    shall return the certified copy of the affidavit of
12    affixation after it has been duly recorded in the real
13    property records, as provided in Section 5 of this Act.
14    (b) An affidavit of affixation shall be in the form set
15forth in this Section, duly acknowledged or proved in like
16manner as to entitle a conveyance to be recorded, and when so
17acknowledged or proved and upon payment of the lawful fees
18therefor, the recording officer shall immediately cause the
19affidavit of affixation and any attachments thereto to be duly
20recorded and indexed in the record of deeds.
21    (c) An affidavit of affixation shall be in the form set
22forth below:
 
23
MANUFACTURED HOME
24
AFFIDAVIT OF AFFIXATION

 

 

 

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1STATE OF ........................)
2                                 )SS.
3COUNTY OF .......................)
 
4BEFORE ME, the undersigned Notary Public, on this day
5personally appeared ......................... (type the
6name(s) of each person signing this Affidavit) known to me to
7be the person(s) whose name(s) is/are subscribed below (each a
8"Homeowner"), and who, being by me first duly sworn, did each
9on his or her oath state as follows:
101. Homeowner owns the manufactured home ("Home") described as
11    follows:
12.....................................................
13..............................
14(Year;  Manufacturer's Name; Manufacturer's Serial No(s).)
 
152. The street address of the real property to which the Home is
16    or shall be permanently affixed ("Property Address") is:
 
17.............................................................
18(Street or Route; City; County; State; Zip Code)
 
193. The legal description of the real property to which the Home
20    is or shall be affixed ("Land") is:
21..........................
22..............................

 

 

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1..............................
2..............................
 
34. Homeowner is the owner of the Land or, if not the owner of
4    the Land, the Home is not located in a mobile home park, as
5    defined in Section 2.5 of the Mobile Home Park Act, and
6    Homeowner is in possession of the Land pursuant to a lease
7    in recordable form that has a term that continues for at
8    least 20 years after the date of the execution of this
9    Affidavit, and the consent of the lessor is attached to
10    this Affidavit.
115. The Home is or shall be assessed and taxed as an improvement
12    to the Land.
136. As of the date of the execution of this Affidavit, or, if
14    the Home is not yet located at the Property Address, upon
15    the delivery of the Home to the Property Address:
16    (a) The Home [ ] is [ ] shall be affixed to a permanent
17foundation as defined in Section 5-5 of the Conveyance and
18Encumbrance of Manufactured Homes as Real Property and
19Severance Act;
20    (b) The wheels, axles, towbar, or hitch were removed when
21the Home was placed on the Property Address; and
227. The Home [ ] was [ ] was not permanently affixed before
23    January 1, 2011.
248. If Homeowner is the owner of the Land, any conveyance or
25    financing of the Home and the Land shall be a single

 

 

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1    transaction under applicable State law.
29. The Home is subject to the following security interests or
3    liens:
 
4Name of Lienholder: ................
5Address: ....................................................
 
6Name of Lienholder: ................
7Address: ....................................................
 
810. Other than those disclosed in this Affidavit, Homeowner is
9    not aware of (i) any other security interest, claim, lien,
10    or encumbrance affecting the Home or (ii) any other facts
11    or information that could reasonably affect the validity of
12    the title of the Home or the existence or non-existence of
13    security interests in it.
1411. A release of lien from each of the lienholders identified
15    in paragraph 11 of this Affidavit [] has been [] shall be
16    delivered to the Secretary of State.
1712. Homeowner shall initial only one of the following, as it
18    applies to the Home:
19    [] The Home is not covered by a certificate of title. The  
20Home is covered by a Manufacturer's Statement of Origin, 
21issued on the ...... of .........., ....., manufacturer's 
22serial number ........................, which Homeowner shall 
23surrender. The original Manufacturer's Statement of Origin, 

 

 

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1duly endorsed to Homeowner, is attached to this Affidavit. 
2    [] The Home is covered by a certificate of title issued 
3on the ....... day of .........., ......, title number 
4........................, which  Homeowner shall surrender.
513. Homeowner designates the following person to file a
6    certified copy of this Affidavit with the Secretary of
7    State, and the person to whom the Recorder shall return a
8    certified copy of this Affidavit after it has been duly
9    recorded in the real property records:
10    Name: ..............................................
11    Address: ................................................
 
1214. This Affidavit is executed by Homeowner pursuant to Section
13    5-15 of the Conveyance and Encumbrance of Manufactured
14    Homes as Real Property and Severance Act.
15
16IN WITNESS WHEREOF, Homeowner(s) has/have executed this 
17Affidavit in my presence and in the presence of the 
18undersigned witnesses on this ...... day of ......, ......
 
19...........................(SEAL) ..........................
20Homeowner #1                      Witness
21...........................
22Printed Name
 

 

 

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

 

 

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1                 Official Seal:
 
2    ATTENTION RECORDER: This instrument covers goods that are
3or are to become fixtures on the Property described herein and
4is to be filed for record in the records where conveyances of
5real estate are recorded.
 
6    Section 5-20. Disposition of liens. Neither the act of
7affixing a manufactured home to a permanent foundation nor the
8recording of the affidavit of affixation shall impair the
9rights of any holder of a security interest in or lien on a
10manufactured home perfected as provided in Section 3-202 of the
11Illinois Vehicle Code, unless and until the due filing with and
12acceptance by the Secretary of State of an application to
13surrender the title as provided in Section 3-116.2 of the
14Illinois Vehicle Code and release of all security interests or
15liens as provided in Section 3-205 of the Illinois Vehicle
16Code. Upon the filing of such releases, the security interests
17or liens perfected under Section 3-202 of the Illinois Vehicle
18Code are terminated. The recording of an affidavit of
19affixation does not change the character of any security
20interest or lien noted on a certificate of title, and no
21recording tax shall be imposed at the time an affidavit of
22affixation is recorded upon any security interest in or lien on
23a manufactured home perfected under Section 3-202 of the
24Illinois Vehicle Code.
 

 

 

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1    Section 5-25. Notice to Secretary of State. Upon payment of
2the fees provided by law and recordation of the affidavit of
3affixation, the recording officer shall endorse the affidavit
4as "recorded in land records", setting forth thereon the
5indexing information for the affidavit of affixation, and the
6recording officer shall forthwith forward a certified copy of
7the recorded affidavit of affixation and all attachments
8thereto to the person designated therein for filing with the
9Secretary of State. Upon receipt of a certified copy of the
10recorded affidavit of affixation by the person designated
11therein for filing with the Secretary of State, such person
12shall forthwith deliver for filing to the Secretary a certified
13copy of the affidavit of affixation and other documents as
14provided in item (4) of Section 5-10 of this Act.
 
15    Section 5-30. Effect of recorded affidavit of affixation. A
16manufactured home shall be deemed to be real property when all
17of the following events have occurred:
18    (1) the manufactured home is permanently affixed to land as
19provided in Section 5-5 of this Act;
20    (2) an affidavit of affixation conforming to the
21requirements of Section 5-15 of this Act has been recorded;
22    (3) a certified copy of the recorded affidavit of
23affixation has been delivered for filing to the Secretary of
24State as provided in Section 5 of this Act; and

 

 

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1    (4) the requirements of Section 3-116.1 or 3-116.2 of the
2Illinois Vehicle Code, as applicable, have been satisfied.
 
3    Section 5-35. Conveyance and encumbrance as real property.
4Upon the satisfaction of the requirements of Section 5-30 of
5this Act and the requirements of Section 3-116.1 or 3-116.2 of
6the Illinois Vehicle Code, as applicable, such manufactured
7home shall be deemed to be real property; any mortgage, deed of
8trust, lien, or security interest that can attach to land,
9buildings erected thereon, or fixtures affixed thereto shall
10attach as of the date of its recording in the same manner as if
11the manufactured home were built from ordinary building
12materials on site; title to such manufactured home shall be
13transferred by deed or other form of conveyance that is
14effective to transfer an interest in real property, together
15with the land to which such structure has been affixed; and the
16manufactured home shall be deemed to be real property and shall
17be governed by the laws applicable to real property.
 
18    Section 5-40. Manufactured home that remains personal
19property or a fixture. Except as provided in Sections 5-15,
205-25, 5-30, and 5-35 of this Act, an affidavit of affixation is
21not necessary or effective to convey or encumber a manufactured
22home or to change the character of the manufactured home to
23real property. Every conveyance of land upon which is located a
24manufactured home for which no affidavit of affixation has been

 

 

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1recorded or for which an affidavit of severance has been
2recorded shall contain a recital that such conveyance does not
3affect the title to said manufactured home and that the
4transfer or encumbrance thereof can only be made pursuant to
5the provisions of the Illinois Vehicle Code. Any agreement by
6any party to the transaction whereby the requirements of this
7subsection are waived shall be void as contrary to public
8policy.
 
9    Section 5-45. Applicability. Nothing in this Act shall
10impair any rights existing under law prior to the effective
11date of this Act of anyone claiming an interest in the
12manufactured home.
 
13    Section 5-50. Affidavit of severance.
14    (a) If and when a manufactured home for which an affidavit
15of affixation has been recorded is detached or severed from the
16real property to which it is affixed, the person (all, if more
17than one) having an interest in the real property shall record
18an affidavit of severance in the land records of the county
19where the affidavit of affixation with respect to the
20manufactured home is recorded. The affidavit of severance shall
21contain or be accompanied by:
22        (i) the name, residence, and mailing address of the
23    owner of the manufactured home;
24        (ii) a description of the manufactured home including

 

 

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1    the name of the manufacturer, manufacturer's serial number
2    or numbers of the manufactured home;
3        (iii) the book number, page number and date of
4    recordation of the affidavit of affixation;
5        (iv) a statement of either (A) any facts or information
6    known to the party executing the affidavit that could
7    reasonably affect the validity of the title of the
8    manufactured home or the existence or non-existence of a
9    security interest in or lien on it, or (B) that no such
10    facts or information are known to such party; and
11        (v) the name and address of the person designated for
12    filing the certified copy of the recorded affidavit of
13    severance with the Secretary of State, to whom the
14    recording officer shall return the certified copy of the
15    affidavit of severance after it has been duly recorded in
16    the real property records, as provided in subsection (d) of
17    this Section.
18    (b) The affidavit of severance shall be in the form set
19forth in subsection (d) of this Section, duly acknowledged or
20proved in like manner as to entitle a conveyance to be
21recorded, and when so acknowledged or proved and upon payment
22of the lawful fees therefor, such recording officer shall
23immediately cause the affidavit and any attachments thereto to
24be duly recorded and indexed in the record of deeds.
25    (c) Upon payment of the fees provided by law and
26recordation of the affidavit of severance, the recording

 

 

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1officer shall endorse the affidavit as "recorded in land
2records", setting forth thereon the indexing information for
3the recorded affidavit of severance, and the recording officer
4shall forthwith forward a certified copy of the recorded
5affidavit of severance to the person designated therein for
6filing with the Secretary of State. Upon receipt of a certified
7copy of the recorded affidavit of severance by the person
8designated therein for filing with the Secretary of State, such
9person shall deliver for filing to the Secretary of State such
10certified copy of the affidavit of severance and the other
11documents provided in subsection (a) of this Section, together
12with an application for a certificate of title to the
13manufactured home, to be issued in accordance with subsection
14(b) of Section 3-109 of the Illinois Vehicle Code.
15    (d) An affidavit of severance shall be in the form set
16forth below:
 
17
MANUFACTURED HOME
18
AFFIDAVIT OF SEVERANCE

 
19STATE OF .........................)
20                                  )SS.
21COUNTY OF ........................)
 
22BEFORE ME, the undersigned notary public, on this day
23personally appeared ................... (type the name(s) of

 

 

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1each person signing this Affidavit) known to me to be the
2person(s) whose name(s) is/are subscribed below (each an
3"Affiant"), and who, being by me first duly sworn, did each on
4his or her oath state as follows:
 
51. The owner(s) of the manufactured home described below
6    reside(s) at the following address:
7..........................
8(Street or Route; City; County; State; Zip Code)
 
9Mailing address, if different:
10...............................
11(Street or Route; City; County; State; Zip Code)
 
122. The manufactured home that is the subject of this Affidavit
13    ("Home") is described as follows:
14............................
15(Year;  Manufacturer's Name; Manufacturer's Serial No(s).)
 
163. The Home was severed from the following address ("Land"):
17.
18(Street or Route; City; County; State; Zip Code)
 
194. An Affidavit of Affixation was duly recorded in the land 
20    records of  the  county in which the  Land is located on 
21    (date) ............., in book number ...... at page 

 

 

09800HB2927ham001- 20 -LRB098 07544 HLH 44335 a

1    number .....
25. Affiant is the owner of the Land or, if not the owner of 
3    the Land, is in possession of the Land pursuant to a 
4    lease in recordable form, and the consent of the lessor 
5    is attached to this Affidavit.
66. The Home is subject to the following security interests:
 
7Name of Lienholder: ................
8Address: ....................................................
 
9Name of Lienholder: ................
10Address: ....................................................
 
117. Other than those disclosed in this Affidavit, Affiant is 
12    not aware of (i) any other security interest, claim, 
13    lien, or encumbrance affecting the Home or (ii) any other 
14    facts or information that could reasonably affect the 
15    validity of the title of the Home or the existence or 
16    non-existence of security interests in it.
178. A release of lien from each of the lienholders identified 
18    in paragraph 6 of this Affidavit [] has been [] shall  be 
19    delivered to the Secretary of State. 
209. Affiant designates the following person to file a 
21    certified copy of this Affidavit with the Secretary of 
22    State, and the person to whom the Recorder shall return a 
23    certified copy of this Affidavit after it has been duly 

 

 

09800HB2927ham001- 21 -LRB098 07544 HLH 44335 a

1    recorded in the real property records:
2    Name: ...............................................
3    Address: ................................................
 
410. This Affidavit is executed by Affiant pursuant to Section 
5    5-50 of the Conveyance and Encumbrance of Manufactured 
6    Homes as Real Property and Severance Act.
7
8    IN WITNESS WHEREOF, Affiant(s) has/have executed this 
9    Affidavit in my presence and in the presence of the 
10    undersigned witnesses on this ....... day of 
11    ................, .......
12
13...........................(SEAL) ..........................
14Homeowner #1                      Witness
15...........................
16Printed Name
 
17...........................(SEAL) ..........................
18Homeowner #2                      Witness
19...........................
20Printed Name
 
21...........................(SEAL) ..........................
22Homeowner #3                      Witness
23...........................

 

 

09800HB2927ham001- 22 -LRB098 07544 HLH 44335 a

1Printed Name
 
2...........................(SEAL) ..........................
3Homeowner #4                      Witness
4...........................
5Printed Name
 
6STATE OF .........................)
7                                  )  SS.
8COUNTY OF ........................)
 
9    The foregoing instrument was acknowledged before me this
10(date) by (name(s) of person(s) who acknowledged).
11                  .......................... Notary Public
12                          Signature
 
13                 My commission expires: ...................
14                 Official Seal:
 
15ATTENTION RECORDER: This instrument covers goods that had been
16fixtures on the Property described herein and is to be filed
17for record in the records where conveyances of real estate are
18recorded.
 
19    Section 5-55. Documents in trust.
20    (a) Manufacturer's Statement of Origin. The holder of a

 

 

09800HB2927ham001- 23 -LRB098 07544 HLH 44335 a

1Manufacturer's Statement of Origin to a manufactured home may
2deliver it to any person to facilitate conveying or encumbering
3the home. Any person receiving a Manufacturer's Statement of
4Origin so delivered holds it in trust for the person delivering
5it.
6    (b) Lien Release. The holder of a security interest in a
7manufactured home may deliver lien release documents to any
8person to facilitate conveying or encumbering the home. Any
9person receiving any such documents so delivered holds the
10documents in trust for the lienholder.
 
11
ARTICLE 10. AMENDATORY PROVISIONS

 
12    Section 10-15. The Property Tax Code is amended by changing
13Section 1-130 as follows:
 
14    (35 ILCS 200/1-130)
15    Sec. 1-130. Property; real property; real estate; land;
16tract; lot.
17    (a) The land itself, with all things contained therein, and
18also all buildings, structures and improvements, and other
19permanent fixtures thereon, including all oil, gas, coal, and
20other minerals in the land and the right to remove oil, gas and
21other minerals, excluding coal, from the land, and all rights
22and privileges belonging or pertaining thereto, except where
23otherwise specified by this Code. Not included therein are

 

 

09800HB2927ham001- 24 -LRB098 07544 HLH 44335 a

1low-income housing tax credits authorized by Section 42 of the
2Internal Revenue Code, 26 U.S.C. 42.
3    (b) Notwithstanding any other provision of law, mobile
4homes and manufactured homes that (i) are located outside of
5mobile home parks and (ii) are taxed under the Mobile Home
6Local Services Tax Act on the effective date of this amendatory
7Act of the 96th General Assembly shall continue to be taxed
8under the Mobile Home Local Services Tax Act and shall not be
9classified, assessed, and taxed as real property until the home
10is sold or transferred or until the home is relocated to a
11different parcel of land outside of a mobile home park. If a
12mobile home or manufactured home described in this subsection
13(b) is sold, transferred, or relocated to a different parcel of
14land outside of a mobile home park, then the home shall be
15classified, assessed, and taxed as real property whether or not
16that mobile home or manufactured home is affixed to a permanent
17foundation, as defined in Section 5-5 of the Conveyance and
18Encumbrance of Manufactured Homes as Real Property and
19Severance Act, or installed on a permanent foundation, and
20whether or not such mobile home or manufactured home is real
21property as defined in Section 5-35 of the Conveyance and
22Encumbrance of Manufactured Homes as Real Property and
23Severance Act. Mobile homes and manufactured homes that are
24located outside of mobile home parks and classified, assessed,
25and taxed as real property on the effective date of this
26amendatory Act of the 96th General Assembly shall continue to

 

 

09800HB2927ham001- 25 -LRB098 07544 HLH 44335 a

1be classified, assessed, and taxed as real property whether or
2not those mobile homes or manufactured homes are affixed to a
3permanent foundation as defined in the Conveyance and
4Encumbrance of Manufactured Homes as Real Property and
5Severance Act or installed on permanent foundations and whether
6or not those mobile homes or manufactured homes are real
7property as defined in the Conveyance and Encumbrance of
8Manufactured Homes as Real Property and Severance Act. If a
9mobile or manufactured home that is located outside of a mobile
10home park is relocated to a mobile home park, it must be
11considered chattel and must be taxed according to the Mobile
12Home Local Services Tax Act. The owner of a mobile home or
13manufactured home that is located outside of a mobile home park
14may file a request with the chief county assessment officer
15county that the home be classified, assessed, and taxed as real
16property.
17    (c) Mobile homes and manufactured homes that are located in
18mobile home parks must be considered chattel and must be taxed
19according to the Mobile Home Local Services Tax Act.
20    (d) If the provisions of this Section conflict with the
21Illinois Manufactured Housing and Mobile Home Safety Act, the
22Mobile Home Local Services Tax Act, the Mobile Home Park Act,
23or any other provision of law with respect to the taxation of
24mobile homes or manufactured homes located outside of mobile
25home parks, the provisions of this Section shall control.
26(Source: P.A. 96-1477, eff. 1-1-11.)
 

 

 

09800HB2927ham001- 26 -LRB098 07544 HLH 44335 a

1    Section 10-20. The Mobile Home Local Services Tax Act is
2amended by changing Sections 1 and 4 as follows:
 
3    (35 ILCS 515/1)  (from Ch. 120, par. 1201)
4    Sec. 1. (a) As Except as provided in subsections (b) and
5(c), as used in this Act, "manufactured home" means a
6factory-assembled, completely integrated structure designed
7for permanent habitation, with a permanent chassis, and so
8constructed as to permit its transport, on wheels temporarily
9or permanently attached to its frame, and is a movable or
10portable unit that is (i) 8 body feet or more in width, (ii) 40
11body feet or more in length, and (iii) 320 or more square feet,
12constructed to be towed on its own chassis (comprised of frame
13and wheels) from the place of its construction to the location,
14or subsequent locations, at which it is installed and set up
15according to the manufacturer's instructions and connected to
16utilities for year-round occupancy for use as a permanent
17habitation, and designed and situated so as to permit its
18occupancy as a dwelling place for one or more persons, and
19specifically includes a "manufactured home" as defined in
20subdivision 53 of Section 9-102 of the Uniform Commercial Code.
21The term shall include units containing parts that may be
22folded, collapsed, or telescoped when being towed and that may
23be expected to provide additional cubic capacity, and that are
24designed to be joined into one integral unit capable of being

 

 

09800HB2927ham001- 27 -LRB098 07544 HLH 44335 a

1separated again into the components for repeated towing. The
2term excludes campers and recreational vehicles. Mobile homes
3and manufactured homes in mobile home parks must be assessed
4and taxed as chattel. Mobile homes and manufactured homes
5outside of mobile home parks must be assessed and taxed as real
6property whether or not such mobile homes and manufactured
7homes are affixed to a permanent foundation as defined in
8Section 5-5 of the Conveyance and Encumbrance of Manufactured
9Homes as Real Property and Severance Act, and whether or not
10such mobile homes and manufactured homes are real property as
11defined in Section 5-35 of the Conveyance and Encumbrance of
12Manufactured Homes as Real Property and Severance Act. The
13words "mobile home" and "manufactured home" are synonymous for
14the purposes of this Act. Any such structure located outside of
15a mobile home park shall not be assessed and taxed construed as
16chattel, but must be assessed and taxed as real property as
17defined by Section 1-130 of the Property Tax Code. All mobile
18homes and manufactured homes located inside mobile home parks
19must be considered as chattel and taxed according to this Act.
20Mobile homes and manufactured homes located on a dealer's lot
21for resale purposes or as a temporary office shall not be
22subject to this tax.
23    (b) Mobile homes and manufactured homes that (i) are
24located outside of mobile home parks and (ii) are taxed under
25this Act on the effective date of this amendatory Act of the
2696th General Assembly must continue to be taxed under this Act

 

 

09800HB2927ham001- 28 -LRB098 07544 HLH 44335 a

1and shall not be classified, assessed, and taxed as real
2property until the home is sold, transferred, or relocated to a
3different parcel of land outside of a mobile home park. If a
4mobile home or manufactured home described in this subsection
5(b) is sold, transferred, or relocated to a different parcel of
6land outside of a mobile home park, then the home must be
7classified, assessed, and taxed as real property whether or not
8the mobile home or manufactured home is affixed to a permanent
9foundation as defined in Section 5-5 of the Conveyance and
10Encumbrance of Manufactured Homes as Real Property and
11Severance Act and whether or not the mobile home or
12manufactured home is real property as defined in Section 5-35
13of the Conveyance and Encumbrance of Manufactured Homes as Real
14Property and Severance Act. Mobile homes and manufactured homes
15that are located outside of mobile home parks and classified,
16assessed, and taxed as real property on the effective date of
17this amendatory Act of the 96th General Assembly must continue
18to be classified, assessed, and taxed as real property whether
19or not the mobile homes and manufactured homes are affixed to a
20permanent foundation as defined in Section 5-5 of the
21Conveyance and Encumbrance of Manufactured Homes as Real
22Property and Severance Act or installed on permanent
23foundations and whether or not the 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. If a mobile or manufactured home

 

 

09800HB2927ham001- 29 -LRB098 07544 HLH 44335 a

1that is located outside of a mobile home park is relocated to a
2mobile home park, the home must be considered chattel and must
3be taxed according to the Mobile Home Local Services Tax Act.
4The owner of a mobile home or manufactured home that is located
5outside of a mobile home park may file a request with the
6county that the home be classified, assessed, and taxed as real
7property.
8    (c) Mobile homes and manufactured homes that are located in
9mobile home parks must be considered chattel and must be taxed
10according to this Act.
11(Source: P.A. 96-1477, eff. 1-1-11.)
 
12    (35 ILCS 515/4)  (from Ch. 120, par. 1204)
13    Sec. 4. The owner of each inhabited mobile home or
14manufactured home located in this State, but not located inside
15of a mobile home park, on the effective date of this amendatory
16Act of the 96th General Assembly shall, within 30 days after
17such date, record with the Office of the Recorder in the county
18where the mobile home or manufactured home is located file with
19the township assessor, if any, or with the Supervisor of
20Assessments or county assessor if there is no township
21assessor, or with the county assessor in those counties in
22which a county assessor is elected pursuant to Section 3-45 of
23the Property Tax Code, a mobile home registration form
24containing the information hereinafter specified, subject to
25the county's recording fees and record a signed copy of the

 

 

09800HB2927ham001- 30 -LRB098 07544 HLH 44335 a

1title or certificate of origin in the county where the home is
2located or surrender the signed title or certificate of origin
3to be held by the county until such time as the home is to be
4removed from the county. Mobile home park operators shall
5forward a copy of the mobile home registration form provided in
6Section 12 of "An Act to provide for, license and regulate
7mobile homes and mobile home parks and to repeal an Act named
8herein", approved September 8, 1971, as amended, to the
9township assessor, if any, or to Supervisor of Assessments or
10county assessor if there is no township assessor, or to the
11county assessor in those counties in which a county assessor is
12elected pursuant to Section 3-45 of the Property Tax Code,
13within 5 days of the entry of a mobile home into such park. The
14owner of a mobile home or manufactured home not located in a
15mobile home park, other than a mobile home or manufactured home
16with respect to which the requirements of Section 5-30 of the
17Conveyance and Encumbrance of Manufactured Homes as Real
18Property and Severance Act and the requirements of Section
193-116.1 or Section 3-116.2 of the Illinois Vehicle Code, as
20applicable, have been satisfied unless with respect to the same
21manufactured home there has been recorded an affidavit of
22severance pursuant to Section 5-50 of the Conveyance and
23Encumbrance of Manufactured Homes as Real Property and
24Severance Act, shall, within 30 days after initial placement of
25such mobile home or manufactured home in any county and within
2630 days after movement of such mobile home or manufactured home

 

 

09800HB2927ham001- 31 -LRB098 07544 HLH 44335 a

1to a new location, record with the Office of the Recorder in
2the county where the mobile home or manufactured home is
3located file with the county assessor, Supervisor of
4Assessments or township assessor, as the case may be, a mobile
5home registration showing the name and address of the owner and
6every occupant of the mobile home or manufactured home, the
7location of the mobile home or manufactured home, the year of
8manufacture, and the square feet of floor space contained in
9such mobile home or manufactured home together with the date
10that the mobile home or manufactured home became inhabited, was
11initially installed and set up in the county, or was moved to a
12new location. Such registration shall also include the license
13number of such mobile home or manufactured home and of the
14towing vehicle, if there be any, and the State issuing such
15licenses, subject to the county's recording fees. In the case
16of a mobile home or manufactured home not located in a mobile
17home park, the registration shall be signed by the owner or
18occupant of the mobile home or manufactured home. and the title
19or certificate of origin shall be signed and recorded in the
20county where the home is located or surrendered to the county
21and held until such time the home is removed from the county.
22Titles or certificates of origin held by a mortgage company on
23the home shall be signed and recorded in the county where
24located or surrendered to the county once the mortgage is
25released. Failure to record the registration or surrender the
26title or certificate of origin shall not prevent the home from

 

 

09800HB2927ham001- 32 -LRB098 07544 HLH 44335 a

1being assessed and taxed as real property. It is the duty of
2each township assessor, if any, and each Supervisor of
3Assessments or county assessor if there is no township
4assessor, or the county assessor in those counties in which a
5county assessor is elected pursuant to Section 3-45 of the
6Property Tax Code, to require timely filing of a properly
7completed registration for each mobile home or manufactured
8home located in a mobile home park in his or her township or
9county, as the case may be. Any person furnishing
10misinformation for purposes of registration or failing to
11record file a required registration is guilty of a Class A
12misdemeanor. This Section applies only when the tax permitted
13by Section 3 has been imposed on mobile homes and manufactured
14homes located inside mobile home parks.
15(Source: P.A. 96-1477, eff. 1-1-11.)
 
16    Section 10-25. The Illinois Banking Act is amended by
17changing Sections 3, 5a, 5d, and 6.1 as follows:
 
18    (205 ILCS 5/3)  (from Ch. 17, par. 309)
19    Sec. 3. Formation and primary powers. It shall be lawful to
20form banks, as herein provided, for the purpose of discount and
21deposit, buying and selling exchange and doing a general
22banking business, excepting the issuing of bills to circulate
23as money; and such banks shall have the power to loan money on
24personal and real estate security, and to accept and execute

 

 

09800HB2927ham001- 33 -LRB098 07544 HLH 44335 a

1trusts upon obtaining a certificate of authority pursuant to
2the "Corporate Fiduciary Act", and shall be subject to all of
3the provisions of this Act. For purposes of this Section, "real
4estate" includes a manufactured home as defined in subdivision
5(53) of Section 9-102 of the Uniform Commercial Code that is
6real property as defined in Section 5-35 of the Conveyance and
7Encumbrance of Manufactured Homes as Real Property and
8Severance Act.
9(Source: P.A. 85-1402.)
 
10    (205 ILCS 5/5a)  (from Ch. 17, par. 312)
11    Sec. 5a. Reverse mortgage loans. Notwithstanding any other
12provision of this Act, a bank may engage in making "reverse
13mortgage" loans.
14    For purposes of this Section, a "reverse mortgage" loan
15shall be a loan extended on the basis of existing equity in
16homestead property. A bank, in making a "reverse mortgage"
17loan, may add deferred interest to principal or otherwise
18provide for the charging of interest or premium on the deferred
19interest.
20    The loans shall be repaid upon sale of the property or upon
21the death of the owner or, if the property is in joint tenancy,
22upon the death of the last surviving joint tenant who had an
23interest in the property at the time the loan was initiated.
24    "Homestead" property, for purposes of this Section, means
25the domicile and contiguous real estate owned and occupied by

 

 

09800HB2927ham001- 34 -LRB098 07544 HLH 44335 a

1the mortgagor. For purposes of this Section, "homestead"
2includes a manufactured home as defined in subdivision (53) of
3Section 9-102 of the Uniform Commercial Code, used as the
4domicile, that is real property, as defined in Section 5-35 of
5the Conveyance and Encumbrance of Manufactured Homes as Real
6Property and Severance Act, and is owned and occupied by the
7mortgagor.
8    The Commissioner of Banks and Real Estate shall prescribe
9rules governing this Section and Section 1-6a of the Illinois
10Savings and Loan Act of 1985.
11(Source: P.A. 88-643, eff. 1-1-95; 89-508, eff. 7-3-96.)
 
12    (205 ILCS 5/5d)  (from Ch. 17, par. 312.3)
13    Sec. 5d. Notwithstanding any other provision of this Act, a
14bank may engage in making revolving credit loans secured by
15mortgages or deeds of trust on real property or by security
16assignments of beneficial interests in land trusts.
17    For purposes of this Section, "revolving credit", has the
18meaning defined in Section 4.1 of "An Act in relation to the
19rate of interest and other charges in connection with sales on
20credit and the lending of money", approved May 24, 1879, as
21amended.
22    Any mortgage or deed of trust given to secure a revolving
23credit loan may, and when so expressed therein shall, secure
24not only the existing indebtedness, but also such future
25advances, whether such advances are obligatory or to be made at

 

 

09800HB2927ham001- 35 -LRB098 07544 HLH 44335 a

1the option of the lender, or otherwise, as are made within
2twenty years from the date thereof, to the same extent as if
3such future advances were made on the date of the execution of
4such mortgage or deed of trust, although there may be no
5advance made at the time of execution of such mortgage or other
6instrument, and although there may be no indebtedness
7outstanding at the time any advance is made. The lien of such
8mortgage or deed of trust, as to third persons without actual
9notice thereof, shall be valid as to all such indebtedness and
10future advances from the time said mortgage or deed of trust is
11filed for record in the office of the Recorder of Deeds or the
12Registrar of Titles of the county where the real property
13described therein is located. The total amount of indebtedness
14that may be so secured may increase or decrease from time to
15time, but the total unpaid balance so secured at any one time
16shall not exceed a maximum principal amount which must be
17specified in such mortgage or deed of trust, plus interest
18thereon, and any disbursements made for the payment of taxes,
19special assessments, or insurance on said real property, with
20interest on such disbursements.
21    Any such mortgage or deed of trust shall be valid and have
22priority over all subsequent liens and encumbrances, including
23statutory liens, except taxes and assessments levied on said
24real property.
25    For purposes of this Section, "real property" includes a
26manufactured home as defined in subdivision (53) of Section

 

 

09800HB2927ham001- 36 -LRB098 07544 HLH 44335 a

19-102 of the Uniform Commercial Code, that is real property as
2defined in Section 5-35 of the Conveyance and Encumbrance of
3Manufactured Homes as Real Property and Severance Act.
4(Source: P.A. 83-1539; 83-1380.)
 
5    (205 ILCS 5/6.1)  (from Ch. 17, par. 313.1)
6    Sec. 6.1. Non-recourse reverse mortgage loans.
7    (a) It is the intent of this amendatory Act of 1991 that
8homeowners at least 62 years of age be permitted to meet their
9financial needs by accessing the equity in their homes through
10a reverse mortgage. The General Assembly recognizes that many
11restrictions and requirements that exist to govern traditional
12mortgage transactions are inapplicable in the context of
13reverse mortgages. In order to foster reverse mortgage
14transactions and better serve the citizens of this State, this
15Section authorizes the making of reverse mortgages, and
16expressly relieves reverse mortgage lenders and borrowers from
17compliance with inappropriate requirements.
18    As used in this Section, "borrower" means any homeowner who
19is, or whose spouse is, at least 62 years of age.
20    For purposes of this Section, "real property" includes a
21manufactured home as defined in subdivision (53) of Section
229-102 of the Uniform Commercial Code which is real property as
23defined in Section 5-35 of the Conveyance and Encumbrance of
24Manufactured Homes as Real Property and Severance Act.
25    As used in this Section, "reverse mortgage" means a

 

 

09800HB2927ham001- 37 -LRB098 07544 HLH 44335 a

1non-recourse loan, secured by real property, that complies with
2all of the following:
3        (1) Provides cash advances to a borrower based on the
4    equity in a borrower's owner-occupied principal residence,
5    provided that it is a residence designed to be occupied by
6    not more than 4 families.
7        (2) Requires no payment of principal or interest until
8    the entire loan becomes due and payable.
9    (b) Reverse mortgage loans shall be subject only to all of
10the following provisions:
11        (1) Payment, in whole or in part, shall be permitted
12    without penalty at any time during the term of the
13    mortgage.
14        (2) A reverse mortgage may provide for an interest rate
15    that is fixed or adjustable and may provide for interest
16    that is contingent on appreciation in the value of the
17    property.
18        (3) If a reverse mortgage provides for periodic
19    advances to a borrower, the advances may not be reduced in
20    amount or number based on any adjustment in the interest
21    rate.
22        (4) A reverse mortgage may be subject to any additional
23    terms and conditions imposed by a lender that are required
24    under the provisions of the federal Housing and Community
25    Development Act of 1987 to enable the lender to obtain
26    federal government insurance on the mortgage if the loans

 

 

09800HB2927ham001- 38 -LRB098 07544 HLH 44335 a

1    are to be insured under that Act.
2    (c) The repayment obligation under a reverse mortgage is
3subject to all of the following:
4        (1) Temporary absences from the home not exceeding 60
5    consecutive days shall not cause the mortgage to become due
6    and payable.
7        (2) Temporary absences from the home exceeding 60 days,
8    but not exceeding one year shall not cause the mortgage to
9    become due and payable, provided that the borrower has
10    taken action that secures the home in a manner satisfactory
11    to the lender.
12        (3) The lender must disclose any interest or other fees
13    to be charged during the period that commences on the date
14    the mortgage becomes due and payable and ends when
15    repayment in full is made in accordance with applicable
16    State and federal laws, rules, and regulations.
17    (d) A reverse mortgage shall become due and payable upon
18the occurrence of any of the following events:
19        (1) The real property securing the loan is sold.
20        (2) All borrowers cease to occupy the home as a
21    principal residence.
22        (3) A fixed maturity date agreed to by the lender and
23    the borrower is reached.
24        (4) An event that is specified in the loan documents
25    and that jeopardizes the lender's security occurs.
26    (e) No reverse mortgage commitment may be made by a lender

 

 

09800HB2927ham001- 39 -LRB098 07544 HLH 44335 a

1unless the loan applicant attests, in writing, that the
2applicant has received from the lender, at the time of initial
3inquiry, a statement prepared by the Department on Aging
4regarding the advisability and availability of independent
5information and counseling services on reverse mortgages.
6(Source: P.A. 87-488.)
 
7    Section 10-30. The Illinois Savings and Loan Act of 1985 is
8amended by changing Sections 1-10.30 and 5-2 as follows:
 
9    (205 ILCS 105/1-10.30)  (from Ch. 17, par. 3301-10.30)
10    Sec. 1-10.30. "Real property": the interests, benefits,
11and rights inherent in the ownership of the physical real
12estate. It is the rights with which the ownership of real
13estate is endowed. "Real property" includes a manufactured home
14as defined in subdivision (53) of Section 9-102 of the Uniform
15Commercial Code that is real property as defined in Section
165-35 of the Conveyance and Encumbrance of Manufactured Homes as
17Real Property and Severance Act. For purposes of this Act, the
18term "Real Estate" is synonymous with "Real Property".
19(Source: P.A. 84-543.)
 
20    (205 ILCS 105/5-2)  (from Ch. 17, par. 3305-2)
21    Sec. 5-2. Investment in loans. An association may loan
22funds to members as follows:
23    (a) On the security of withdrawable capital accounts, but

 

 

09800HB2927ham001- 40 -LRB098 07544 HLH 44335 a

1no such loan shall exceed the withdrawal value of the pledged
2account;
3    (b) On the security of real estate:
4    (1) Of a value, determined in accordance with Section 5-12
5of this Act, sufficient to provide good and ample security for
6the loan;
7    (2) With a fee simple title or a leasehold title of not
8less duration than 10 years beyond the maturity of the loan;
9    (3) With the title established by such evidence of title as
10is consistent with sound lending practices in the locality;
11    (4) With the security interest in such real estate
12evidenced by an appropriate written instrument and the loan
13evidenced by a note, bond or similar written instrument. A loan
14on the security of the whole of the beneficial interest in a
15land trust satisfies the requirements of this paragraph if the
16title to the land is held by a corporate trustee and if the
17real estate held in the land trust meets the other requirements
18of this subsection; and
19    (5) With a mortgage loan not to exceed 40 years;
20    (c) For the purpose of repair, improvement,
21rehabilitation, furnishing or equipment of real estate or any
22other purpose;
23    (d) For the purpose of financing or refinancing an existing
24ownership interest in certificates of stock, certificates of
25beneficial interest or other evidence of an ownership interest
26in, and a proprietary lease from, a corporation, trust or

 

 

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1partnership formed for the purpose of the cooperative ownership
2of real estate, secured by the assignment or transfer of such
3certificates or other evidence of ownership of the borrower;
4    (e) Through the purchase of loans which at the time of
5purchase the association could make in accordance with this
6Section and the by-laws;
7    (f) Through the purchase of installment contracts for the
8sale of real estate, and title thereto which is subject to such
9contracts, but in each instance only if the association at the
10time of purchase could make a mortgage loan of the same amount
11and for the same length of time on the security of such real
12estate;
13    (g) Through loans guaranteed or insured, wholly or in part
14by the United States or any of its instrumentalities, and
15without regard to the limits in amount and terms otherwise
16imposed by this Article;
17    (h) Through secured or unsecured loans for business,
18corporate, personal, family, or household purposes, or for
19secured or unsecured loans for agricultural or commercial
20purposes to the same extent that such agricultural or
21commercial loans are authorized by federal law for any savings
22and loan association organized under federal law and authorized
23to do business in this State, except that loans to service
24corporations shall not be subject to the limitations of this
25paragraph;
26    (i) For the purpose of manufactured mobile home financing

 

 

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1subject, however, to the regulation of the Commissioner; as
2used in this Section, "manufactured home" means a manufactured
3home as defined in subdivision (53) of Section 9-102 of the
4Uniform Commercial Code;
5    (j) Through loans to its members secured by the cash
6surrender value of any life insurance policy or any collateral
7which would be a legal investment if made by such association
8pursuant to the terms of this Act; and
9    (k) Any provision of this Act to the contrary
10notwithstanding, any association may make any loan to its
11members or investment which such association could make if it
12were incorporated and operating as an association organized
13under the laws of the United States.
14(Source: P.A. 86-137.)
 
15    Section 10-35. The Savings Bank Act is amended by changing
16Sections 6002 and 6008 as follows:
 
17    (205 ILCS 205/6002)  (from Ch. 17, par. 7306-2)
18    Sec. 6002. Investment in loans.
19    (a) Subject to the regulations of the Commissioner, a
20savings bank may loan funds as follows:
21    (1) On the security of deposit accounts, but no such loan
22shall exceed the withdrawal value of the pledged account.
23    (2) On the security of real estate:
24        (A) of a value, determined in accordance with this Act,

 

 

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1    sufficient to provide good and ample security for the loan;
2        (B) with a fee simple title or a leasehold title;
3        (C) with the title established by evidence of title as
4    is consistent with sound lending practices in the locality;
5        (D) with the security interest in the real estate
6    evidenced by an appropriate written instrument and the loan
7    evidenced by a note, bond, or similar written instrument; a
8    loan on the security of the whole of the beneficial
9    interest in a land trust satisfies the requirements of this
10    paragraph if the title to the land is held by a corporate
11    trustee and if the real estate held in the land trust meets
12    the other requirements of this subsection;
13        (E) with a mortgage loan not to exceed 40 years.
14    (3) For the purpose of repair, improvement,
15rehabilitation, furnishing, or equipment of real estate.
16    (4) For the purpose of financing or refinancing an existing
17ownership interest in certificates of stock, certificates of
18beneficial interest, other evidence of an ownership interest
19in, or a proprietary lease from a corporation, trust, or
20partnership formed for the purpose of the cooperative ownership
21of real estate, secured by the assignment or transfer of
22certificates or other evidence of ownership of the borrower.
23    (5) Through the purchase of loans that, at the time of
24purchase, the savings bank could make in accordance with this
25Section and the bylaws.
26    (6) Through the purchase of installment contracts for the

 

 

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1sale of real estate and title thereto that is subject to the
2contracts, but in each instance only if the savings bank, at
3the time of purchase, could make a mortgage loan of the same
4amount and for the same length of time on the security of the
5real estate.
6    (7) Through loans guaranteed or insured, wholly or in part,
7by the United States or any of its instrumentalities.
8    (8) Subject to regulations adopted by the Commissioner,
9through secured or unsecured loans for business, corporate,
10commercial, or agricultural purposes; provided that the total
11of all loans granted under this paragraph shall not exceed 15%
12of the savings bank's total assets unless a greater amount is
13authorized in writing by the Commissioner.
14    (9) 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    (10) Through loans secured by the cash surrender value of
20any life insurance policy or any collateral that would be a
21legal investment under the terms of this Act if made by the
22savings bank.
23    (11) Any provision of this Act or any other law, except for
24paragraph (18) of Section 6003, to the contrary
25notwithstanding, but subject to the Financial Institutions
26Insurance Sales Law and subject to the Commissioner's

 

 

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1regulations, any savings bank may make any loan or investment
2or engage in any activity that it could make or engage in if it
3were organized under State law as a savings and loan
4association or under federal law as a federal savings and loan
5association or federal savings bank.
6    (12) A savings bank may issue letters of credit or other
7similar arrangements only as provided for by regulation of the
8Commissioner with regard to aggregate amounts permitted, take
9out commitments for stand-by letters of credit, underlying
10documentation and underwriting, legal limitations on loans of
11the savings bank, control and subsidiary records, and other
12procedures deemed necessary by the Commissioner.
13    (13) For the purpose of automobile financing, subject to
14the regulation of the Commissioner.
15    (14) For the purpose of financing primary, secondary,
16undergraduate, or postgraduate education.
17    (15) Through revolving lines of credit on the security of a
18first or junior lien on the borrower's personal residence,
19based primarily on the borrower's equity, the proceeds of which
20may be used for any purpose; those loans being commonly
21referred to as home equity loans.
22    (16) As secured or unsecured credit to cover the payment of
23checks, drafts, or other funds transfer orders in excess of the
24available balance of an account on which they are drawn,
25subject to the regulations of the Commissioner.
26    (b) For purposes of this Section, "real estate" includes a

 

 

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1manufactured home as defined in subdivision (53) of Section
29-102 of the Uniform Commercial Code which is real property as
3defined in Section 5-35 of the Conveyance and Encumbrance of
4Manufactured Homes as Real Property and Severance Act.
5(Source: P.A. 90-301, eff. 8-1-97; 91-97, eff. 7-9-99.)
 
6    (205 ILCS 205/6008)  (from Ch. 17, par. 7306-8)
7    Sec. 6008. Purchase of real estate at forced sale. A
8savings bank may purchase at any sheriff's or other judicial
9sale, either public or private, any real estate upon which the
10savings bank has any mortgage, lien or other encumbrance, or in
11which the savings bank has any other interest. The savings bank
12thereafter may repair, insure, improve, sell, convey, lease,
13preserve, mortgage, exchange, or otherwise dispose of real
14estate so acquired in the best interests of the savings bank.
15For purposes of this Section, "real estate" includes a
16manufactured home as defined in subdivision (53) of Section
179-102 of the Uniform Commercial Code which is real property as
18defined in Section 5-35 of the Conveyance and Encumbrance of
19Manufactured Homes as Real Property and Severance Act.
20(Source: P.A. 86-1213.)
 
21    Section 10-40. The Illinois Credit Union Act is amended by
22changing Sections 46 and 46.1 as follows:
 
23    (205 ILCS 305/46)  (from Ch. 17, par. 4447)

 

 

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1    Sec. 46. Loans and interest rate.
2    (1) A credit union may make loans to its members for such
3purpose and upon such security and terms, including rates of
4interest, as the credit committee, credit manager, or loan
5officer approves. Notwithstanding the provisions of any other
6law in connection with extensions of credit, a credit union may
7elect to contract for and receive interest and fees and other
8charges for extensions of credit subject only to the provisions
9of this Act and rules promulgated under this Act, except that
10extensions of credit secured by residential real estate shall
11be subject to the laws applicable thereto. The rates of
12interest to be charged on loans to members shall be set by the
13board of directors of each individual credit union in
14accordance with Section 30 of this Act and such rates may be
15less than, but may not exceed, the maximum rate set forth in
16this Section. A borrower may repay his loan prior to maturity,
17in whole or in part, without penalty. The credit contract may
18provide for the payment by the member and receipt by the credit
19union of all costs and disbursements, including reasonable
20attorney's fees and collection agency charges, incurred by the
21credit union to collect or enforce the debt in the event of a
22delinquency by the member, or in the event of a breach of any
23obligation of the member under the credit contract. A
24contingency or hourly arrangement established under an
25agreement entered into by a credit union with an attorney or
26collection agency to collect a loan of a member in default

 

 

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1shall be presumed prima facie reasonable.
2    (2) Credit unions may make loans based upon the security of
3any interest or equity in real estate, subject to rules and
4regulations promulgated by the Secretary. In any contract or
5loan which is secured by a mortgage, deed of trust, or
6conveyance in the nature of a mortgage, on residential real
7estate, the interest which is computed, calculated, charged, or
8collected pursuant to such contract or loan, or pursuant to any
9regulation or rule promulgated pursuant to this Act, may not be
10computed, calculated, charged or collected for any period of
11time occurring after the date on which the total indebtedness,
12with the exception of late payment penalties, is paid in full.
13    For purposes of this subsection (2) of this Section 46, a
14prepayment shall mean the payment of the total indebtedness,
15with the exception of late payment penalties if incurred or
16charged, on any date before the date specified in the contract
17or loan agreement on which the total indebtedness shall be paid
18in full, or before the date on which all payments, if timely
19made, shall have been made. In the event of a prepayment of the
20indebtedness which is made on a date after the date on which
21interest on the indebtedness was last computed, calculated,
22charged, or collected but before the next date on which
23interest on the indebtedness was to be calculated, computed,
24charged, or collected, the lender may calculate, charge and
25collect interest on the indebtedness for the period which
26elapsed between the date on which the prepayment is made and

 

 

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1the date on which interest on the indebtedness was last
2computed, calculated, charged or collected at a rate equal to
31/360 of the annual rate for each day which so elapsed, which
4rate shall be applied to the indebtedness outstanding as of the
5date of prepayment. The lender shall refund to the borrower any
6interest charged or collected which exceeds that which the
7lender may charge or collect pursuant to the preceding
8sentence. The provisions of this amendatory Act of 1985 shall
9apply only to contracts or loans entered into on or after the
10effective date of this amendatory Act.
11    (3) Notwithstanding any other provision of this Act, a
12credit union authorized under this Act to make loans secured by
13an interest or equity in real estate may engage in making
14"reverse mortgage" loans to persons for the purpose of making
15home improvements or repairs, paying insurance premiums or
16paying real estate taxes on the homestead properties of such
17persons. If made, such loans shall be made on such terms and
18conditions as the credit union shall determine and as shall be
19consistent with the provisions of this Section and such rules
20and regulations as the Secretary shall promulgate hereunder.
21For purposes of this Section, a "reverse mortgage" loan shall
22be a loan extended on the basis of existing equity in homestead
23property and secured by a mortgage on such property. Such loans
24shall be repaid upon the sale of the property or upon the death
25of the owner or, if the property is in joint tenancy, upon the
26death of the last surviving joint tenant who had such an

 

 

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1interest in the property at the time the loan was initiated,
2provided, however, that the credit union and its member may by
3mutual agreement, establish other repayment terms. A credit
4union, in making a "reverse mortgage" loan, may add deferred
5interest to principal or otherwise provide for the charging of
6interest or premiums on such deferred interest. "Homestead"
7property, for purposes of this Section, means the domicile and
8contiguous real estate owned and occupied by the mortgagor.
9    (4) Notwithstanding any other provisions of this Act, a
10credit union authorized under this Act to make loans secured by
11an interest or equity in real property may engage in making
12revolving credit loans secured by mortgages or deeds of trust
13on such real property or by security assignments of beneficial
14interests in land trusts.
15    For purposes of this Section, "revolving credit" has the
16meaning defined in Section 4.1 of the Interest Act.
17    Any mortgage or deed of trust given to secure a revolving
18credit loan may, and when so expressed therein shall, secure
19not only the existing indebtedness but also such future
20advances, whether such advances are obligatory or to be made at
21the option of the lender, or otherwise, as are made within
22twenty years from the date thereof, to the same extent as if
23such future advances were made on the date of the execution of
24such mortgage or deed of trust, although there may be no
25advance made at the time of execution of such mortgage or other
26instrument, and although there may be no indebtedness

 

 

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1outstanding at the time any advance is made. The lien of such
2mortgage or deed of trust, as to third persons without actual
3notice thereof, shall be valid as to all such indebtedness and
4future advances form the time said mortgage or deed of trust is
5filed for record in the office of the recorder of deeds or the
6registrar of titles of the county where the real property
7described therein is located. The total amount of indebtedness
8that may be so secured may increase or decrease from time to
9time, but the total unpaid balance so secured at any one time
10shall not exceed a maximum principal amount which must be
11specified in such mortgage or deed of trust, plus interest
12thereon, and any disbursements made for the payment of taxes,
13special assessments, or insurance on said real property, with
14interest on such disbursements.
15    Any such mortgage or deed of trust shall be valid and have
16priority over all subsequent liens and encumbrances, including
17statutory liens, except taxes and assessments levied on said
18real property.
19    (4-5) For purposes of this Section, "real estate" and "real
20property" include a manufactured home as defined in subdivision
21(53) of Section 9-102 of the Uniform Commercial Code which is
22real property as defined in Section 5-35 of the Conveyance and
23Encumbrance of Manufactured Homes as Real Property and
24Severance Act.
25    (5) Compliance with federal or Illinois preemptive laws or
26regulations governing loans made by a credit union chartered

 

 

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1under this Act shall constitute compliance with this Act.
2    (6) Credit unions may make residential real estate mortgage
3loans on terms and conditions established by the United States
4Department of Agriculture through its Rural Development
5Housing and Community Facilities Program. The portion of any
6loan in excess of the appraised value of the real estate shall
7be allocable only to the guarantee fee required under the
8program.
9(Source: P.A. 96-141, eff. 8-7-09; 97-133, eff. 1-1-12.)
 
10    (205 ILCS 305/46.1)  (from Ch. 17, par. 4447.1)
11    Sec. 46.1. Non-recourse reverse mortgage loans. Any credit
12union authorized under this Act to make loans secured by an
13interest or equity in real estate may make non-recourse reverse
14mortgage loans as provided in Section 6.1 of the Illinois
15Banking Act.
16    For purposes of this Section, "real estate" includes a
17manufactured home as defined in subdivision (53) of Section
189-102 of the Uniform Commercial Code that is real property as
19defined in Section 5-35 of the Conveyance and Encumbrance of
20Manufactured Homes as Real Property and Severance Act.
21(Source: P.A. 87-488.)
 
22    Section 10-45. The Residential Mortgage License Act of 1987
23is amended by changing Section 1-4 as follows:
 

 

 

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1    (205 ILCS 635/1-4)
2    Sec. 1-4. Definitions.
3    (a) "Residential real property" or "residential real
4estate" shall mean any real property located in Illinois, upon
5which is constructed or intended to be constructed a dwelling.
6Those terms include a manufactured home as defined in
7subdivision (53) of Section 9-102 of the Uniform Commercial
8Code which is real property as defined in Section 5-35 of the
9Conveyance and Encumbrance of Manufactured Homes as Real
10Property and Severance Act.
11    (b) "Making a residential mortgage loan" or "funding a
12residential mortgage loan" shall mean for compensation or gain,
13either directly or indirectly, advancing funds or making a
14commitment to advance funds to a loan applicant for a
15residential mortgage loan.
16    (c) "Soliciting, processing, placing, or negotiating a
17residential mortgage loan" shall mean for compensation or gain,
18either directly or indirectly, accepting or offering to accept
19an application for a residential mortgage loan, assisting or
20offering to assist in the processing of an application for a
21residential mortgage loan on behalf of a borrower, or
22negotiating or offering to negotiate the terms or conditions of
23a residential mortgage loan with a lender on behalf of a
24borrower including, but not limited to, the submission of
25credit packages for the approval of lenders, the preparation of
26residential mortgage loan closing documents, including a

 

 

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1closing in the name of a broker.
2    (d) "Exempt person or entity" shall mean the following:
3        (1) (i) Any banking organization or foreign banking
4    corporation licensed by the Illinois Commissioner of Banks
5    and Real Estate or the United States Comptroller of the
6    Currency to transact business in this State; (ii) any
7    national bank, federally chartered savings and loan
8    association, federal savings bank, federal credit union;
9    (iii) any pension trust, bank trust, or bank trust company;
10    (iv) any bank, savings and loan association, savings bank,
11    or credit union organized under the laws of this or any
12    other state; (v) any Illinois Consumer Installment Loan Act
13    licensee; (vi) any insurance company authorized to
14    transact business in this State; (vii) any entity engaged
15    solely in commercial mortgage lending; (viii) any service
16    corporation of a savings and loan association or savings
17    bank organized under the laws of this State or the service
18    corporation of a federally chartered savings and loan
19    association or savings bank having its principal place of
20    business in this State, other than a service corporation
21    licensed or entitled to reciprocity under the Real Estate
22    License Act of 2000; or (ix) any first tier subsidiary of a
23    bank, the charter of which is issued under the Illinois
24    Banking Act by the Illinois Commissioner of Banks and Real
25    Estate, or the first tier subsidiary of a bank chartered by
26    the United States Comptroller of the Currency and that has

 

 

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1    its principal place of business in this State, provided
2    that the first tier subsidiary is regularly examined by the
3    Illinois Commissioner of Banks and Real Estate or the
4    Comptroller of the Currency, or a consumer compliance
5    examination is regularly conducted by the Federal Reserve
6    Board.
7        (1.5) Any employee of a person or entity mentioned in
8    item (1) of this subsection, when acting for such person or
9    entity, or any registered mortgage loan originator when
10    acting for an entity described in subsection (tt) of this
11    Section.
12        (1.8) Any person or entity that does not originate
13    mortgage loans in the ordinary course of business, but
14    makes or acquires residential mortgage loans with his or
15    her own funds for his or her or its own investment without
16    intent to make, acquire, or resell more than 3 residential
17    mortgage loans in any one calendar year.
18        (2) (Blank).
19        (3) Any person employed by a licensee to assist in the
20    performance of the residential mortgage licensee's
21    activities regulated by this Act who is compensated in any
22    manner by only one licensee.
23        (4) (Blank).
24        (5) Any individual, corporation, partnership, or other
25    entity that originates, services, or brokers residential
26    mortgage loans, as these activities are defined in this

 

 

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1    Act, and who or which receives no compensation for those
2    activities, subject to the Commissioner's regulations and
3    the federal Secure and Fair Enforcement for Mortgage
4    Licensing Act of 2008 and the rules promulgated under that
5    Act with regard to the nature and amount of compensation.
6        (6) (Blank).
7    (e) "Licensee" or "residential mortgage licensee" shall
8mean a person, partnership, association, corporation, or any
9other entity who or which is licensed pursuant to this Act to
10engage in the activities regulated by this Act.
11    (f) "Mortgage loan" "residential mortgage loan" or "home
12mortgage loan" shall mean any loan primarily for personal,
13family, or household use that is secured by a mortgage, deed of
14trust, or other equivalent consensual security interest on a
15dwelling as defined in Section 103(v) of the federal Truth in
16Lending Act, or residential real estate upon which is
17constructed or intended to be constructed a dwelling.
18    (g) "Lender" shall mean any person, partnership,
19association, corporation, or any other entity who either lends
20or invests money in residential mortgage loans.
21    (h) "Ultimate equitable owner" shall mean a person who,
22directly or indirectly, owns or controls an ownership interest
23in a corporation, foreign corporation, alien business
24organization, trust, or any other form of business organization
25regardless of whether the person owns or controls the ownership
26interest through one or more persons or one or more proxies,

 

 

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1powers of attorney, nominees, corporations, associations,
2partnerships, trusts, joint stock companies, or other entities
3or devices, or any combination thereof.
4    (i) "Residential mortgage financing transaction" shall
5mean the negotiation, acquisition, sale, or arrangement for or
6the offer to negotiate, acquire, sell, or arrange for, a
7residential mortgage loan or residential mortgage loan
8commitment.
9    (j) "Personal residence address" shall mean a street
10address and shall not include a post office box number.
11    (k) "Residential mortgage loan commitment" shall mean a
12contract for residential mortgage loan financing.
13    (l) "Party to a residential mortgage financing
14transaction" shall mean a borrower, lender, or loan broker in a
15residential mortgage financing transaction.
16    (m) "Payments" shall mean payment of all or any of the
17following: principal, interest and escrow reserves for taxes,
18insurance and other related reserves, and reimbursement for
19lender advances.
20    (n) "Commissioner" shall mean the Commissioner of Banks and
21Real Estate, except that, beginning on April 6, 2009 (the
22effective date of Public Act 95-1047), all references in this
23Act to the Commissioner of Banks and Real Estate are deemed, in
24appropriate contexts, to be references to the Secretary of
25Financial and Professional Regulation, or his or her designee,
26including the Director of the Division of Banking of the

 

 

09800HB2927ham001- 58 -LRB098 07544 HLH 44335 a

1Department of Financial and Professional Regulation.
2    (n-1) "Director" shall mean the Director of the Division of
3Banking of the Department of Financial and Professional
4Regulation, except that, beginning on July 31, 2009 (the
5effective date of Public Act 96-112), all references in this
6Act to the Director are deemed, in appropriate contexts, to be
7the Secretary of Financial and Professional Regulation, or his
8or her designee, including the Director of the Division of
9Banking of the Department of Financial and Professional
10Regulation.
11    (o) "Loan brokering", "brokering", or "brokerage service"
12shall mean the act of helping to obtain from another entity,
13for a borrower, a loan secured by residential real estate
14situated in Illinois or assisting a borrower in obtaining a
15loan secured by residential real estate situated in Illinois in
16return for consideration to be paid by either the borrower or
17the lender including, but not limited to, contracting for the
18delivery of residential mortgage loans to a third party lender
19and soliciting, processing, placing, or negotiating
20residential mortgage loans.
21    (p) "Loan broker" or "broker" shall mean a person,
22partnership, association, corporation, or limited liability
23company, other than those persons, partnerships, associations,
24corporations, or limited liability companies exempted from
25licensing pursuant to Section 1-4, subsection (d), of this Act,
26who performs the activities described in subsections (c), (o),

 

 

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1and (yy) of this Section.
2    (q) "Servicing" shall mean the collection or remittance for
3or the right or obligation to collect or remit for any lender,
4noteowner, noteholder, or for a licensee's own account, of
5payments, interests, principal, and trust items such as hazard
6insurance and taxes on a residential mortgage loan in
7accordance with the terms of the residential mortgage loan; and
8includes loan payment follow-up, delinquency loan follow-up,
9loan analysis and any notifications to the borrower that are
10necessary to enable the borrower to keep the loan current and
11in good standing. "Servicing" includes management of
12third-party entities acting on behalf of a residential mortgage
13licensee for the collection of delinquent payments and the use
14by such third-party entities of said licensee's servicing
15records or information, including their use in foreclosure.
16    (r) "Full service office" shall mean an office, provided by
17the licensee and not subleased from the licensee's employees,
18and staff in Illinois reasonably adequate to handle efficiently
19communications, questions, and other matters relating to any
20application for, or an existing home mortgage secured by
21residential real estate situated in Illinois with respect to
22which the licensee is brokering, funding originating,
23purchasing, or servicing. The management and operation of each
24full service office must include observance of good business
25practices such as proper signage; adequate, organized, and
26accurate books and records; ample phone lines, hours of

 

 

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1business, staff training and supervision, and provision for a
2mechanism to resolve consumer inquiries, complaints, and
3problems. The Commissioner shall issue regulations with regard
4to these requirements and shall include an evaluation of
5compliance with this Section in his or her periodic examination
6of each licensee.
7    (s) "Purchasing" shall mean the purchase of conventional or
8government-insured mortgage loans secured by residential real
9estate situated in Illinois from either the lender or from the
10secondary market.
11    (t) "Borrower" shall mean the person or persons who seek
12the services of a loan broker, originator, or lender.
13    (u) "Originating" shall mean the issuing of commitments for
14and funding of residential mortgage loans.
15    (v) "Loan brokerage agreement" shall mean a written
16agreement in which a broker or loan broker agrees to do either
17of the following:
18        (1) obtain a residential mortgage loan for the borrower
19    or assist the borrower in obtaining a residential mortgage
20    loan; or
21        (2) consider making a residential mortgage loan to the
22    borrower.
23    (w) "Advertisement" shall mean the attempt by publication,
24dissemination, or circulation to induce, directly or
25indirectly, any person to enter into a residential mortgage
26loan agreement or residential mortgage loan brokerage

 

 

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1agreement relative to a mortgage secured by residential real
2estate situated in Illinois.
3    (x) "Residential Mortgage Board" shall mean the
4Residential Mortgage Board created in Section 1-5 of this Act.
5    (y) "Government-insured mortgage loan" shall mean any
6mortgage loan made on the security of residential real estate
7insured by the Department of Housing and Urban Development or
8Farmers Home Loan Administration, or guaranteed by the Veterans
9Administration.
10    (z) "Annual audit" shall mean a certified audit of the
11licensee's books and records and systems of internal control
12performed by a certified public accountant in accordance with
13generally accepted accounting principles and generally
14accepted auditing standards.
15    (aa) "Financial institution" shall mean a savings and loan
16association, savings bank, credit union, or a bank organized
17under the laws of Illinois or a savings and loan association,
18savings bank, credit union or a bank organized under the laws
19of the United States and headquartered in Illinois.
20    (bb) "Escrow agent" shall mean a third party, individual or
21entity charged with the fiduciary obligation for holding escrow
22funds on a residential mortgage loan pending final payout of
23those funds in accordance with the terms of the residential
24mortgage loan.
25    (cc) "Net worth" shall have the meaning ascribed thereto in
26Section 3-5 of this Act.

 

 

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1    (dd) "Affiliate" shall mean:
2        (1) any entity that directly controls or is controlled
3    by the licensee and any other company that is directly
4    affecting activities regulated by this Act that is
5    controlled by the company that controls the licensee;
6        (2) any entity:
7            (A) that is controlled, directly or indirectly, by
8        a trust or otherwise, by or for the benefit of
9        shareholders who beneficially or otherwise control,
10        directly or indirectly, by trust or otherwise, the
11        licensee or any company that controls the licensee; or
12            (B) a majority of the directors or trustees of
13        which constitute a majority of the persons holding any
14        such office with the licensee or any company that
15        controls the licensee;
16        (3) any company, including a real estate investment
17    trust, that is sponsored and advised on a contractual basis
18    by the licensee or any subsidiary or affiliate of the
19    licensee.
20    The Commissioner may define by rule and regulation any
21terms used in this Act for the efficient and clear
22administration of this Act.
23    (ee) "First tier subsidiary" shall be defined by regulation
24incorporating the comparable definitions used by the Office of
25the Comptroller of the Currency and the Illinois Commissioner
26of Banks and Real Estate.

 

 

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1    (ff) "Gross delinquency rate" means the quotient
2determined by dividing (1) the sum of (i) the number of
3government-insured residential mortgage loans funded or
4purchased by a licensee in the preceding calendar year that are
5delinquent and (ii) the number of conventional residential
6mortgage loans funded or purchased by the licensee in the
7preceding calendar year that are delinquent by (2) the sum of
8(i) the number of government-insured residential mortgage
9loans funded or purchased by the licensee in the preceding
10calendar year and (ii) the number of conventional residential
11mortgage loans funded or purchased by the licensee in the
12preceding calendar year.
13    (gg) "Delinquency rate factor" means the factor set by rule
14of the Commissioner that is multiplied by the average gross
15delinquency rate of licensees, determined annually for the
16immediately preceding calendar year, for the purpose of
17determining which licensees shall be examined by the
18Commissioner pursuant to subsection (b) of Section 4-8 of this
19Act.
20    (hh) "Loan originator" means any natural person who, for
21compensation or in the expectation of compensation, either
22directly or indirectly makes, offers to make, solicits, places,
23or negotiates a residential mortgage loan. This definition
24applies only to Section 7-1 of this Act.
25    (ii) "Confidential supervisory information" means any
26report of examination, visitation, or investigation prepared

 

 

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1by the Commissioner under this Act, any report of examination
2visitation, or investigation prepared by the state regulatory
3authority of another state that examines a licensee, any
4document or record prepared or obtained in connection with or
5relating to any examination, visitation, or investigation, and
6any record prepared or obtained by the Commissioner to the
7extent that the record summarizes or contains information
8derived from any report, document, or record described in this
9subsection. "Confidential supervisory information" does not
10include any information or record routinely prepared by a
11licensee and maintained in the ordinary course of business or
12any information or record that is required to be made publicly
13available pursuant to State or federal law or rule.
14    (jj) "Mortgage loan originator" means an individual who for
15compensation or gain or in the expectation of compensation or
16gain:
17        (i) takes a residential mortgage loan application; or
18        (ii) offers or negotiates terms of a residential
19    mortgage loan.
20    "Mortgage loan originator" includes an individual engaged
21in loan modification activities as defined in subsection (yy)
22of this Section. A mortgage loan originator engaged in loan
23modification activities shall report those activities to the
24Department of Financial and Professional Regulation in the
25manner provided by the Department; however, the Department
26shall not impose a fee for reporting, nor require any

 

 

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1additional qualifications to engage in those activities beyond
2those provided pursuant to this Act for mortgage loan
3originators.
4    "Mortgage loan originator" does not include an individual
5engaged solely as a loan processor or underwriter except as
6otherwise provided in subsection (d) of Section 7-1A of this
7Act.
8    "Mortgage loan originator" does not include a person or
9entity that only performs real estate brokerage activities and
10is licensed in accordance with the Real Estate License Act of
112000, unless the person or entity is compensated by a lender, a
12mortgage broker, or other mortgage loan originator, or by any
13agent of that lender, mortgage broker, or other mortgage loan
14originator.
15    "Mortgage loan originator" does not include a person or
16entity solely involved in extensions of credit relating to
17timeshare plans, as that term is defined in Section 101(53D) of
18Title 11, United States Code.
19    (kk) "Depository institution" has the same meaning as in
20Section 3 of the Federal Deposit Insurance Act, and includes
21any credit union.
22    (ll) "Dwelling" means a residential structure or mobile
23home which contains one to 4 family housing units, or
24individual units of condominiums or cooperatives.
25    (mm) "Immediate family member" means a spouse, child,
26sibling, parent, grandparent, or grandchild, and includes

 

 

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1step-parents, step-children, step-siblings, or adoptive
2relationships.
3    (nn) "Individual" means a natural person.
4    (oo) "Loan processor or underwriter" means an individual
5who performs clerical or support duties as an employee at the
6direction of and subject to the supervision and instruction of
7a person licensed, or exempt from licensing, under this Act.
8"Clerical or support duties" includes subsequent to the receipt
9of an application:
10        (i) the receipt, collection, distribution, and
11    analysis of information common for the processing or
12    underwriting of a residential mortgage loan; and
13        (ii) communicating with a consumer to obtain the
14    information necessary for the processing or underwriting
15    of a loan, to the extent that the communication does not
16    include offering or negotiating loan rates or terms, or
17    counseling consumers about residential mortgage loan rates
18    or terms. An individual engaging solely in loan processor
19    or underwriter activities shall not represent to the
20    public, through advertising or other means of
21    communicating or providing information, including the use
22    of business cards, stationery, brochures, signs, rate
23    lists, or other promotional items, that the individual can
24    or will perform any of the activities of a mortgage loan
25    originator.
26    (pp) "Nationwide Mortgage Licensing System and Registry"

 

 

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1means a mortgage licensing system developed and maintained by
2the Conference of State Bank Supervisors and the American
3Association of Residential Mortgage Regulators for the
4licensing and registration of licensed mortgage loan
5originators.
6    (qq) "Nontraditional mortgage product" means any mortgage
7product other than a 30-year fixed rate mortgage.
8    (rr) "Person" means a natural person, corporation,
9company, limited liability company, partnership, or
10association.
11    (ss) "Real estate brokerage activity" means any activity
12that involves offering or providing real estate brokerage
13services to the public, including:
14        (1) acting as a real estate agent or real estate broker
15    for a buyer, seller, lessor, or lessee of real property;
16        (2) bringing together parties interested in the sale,
17    purchase, lease, rental, or exchange of real property;
18        (3) negotiating, on behalf of any party, any portion of
19    a contract relating to the sale, purchase, lease, rental,
20    or exchange of real property, other than in connection with
21    providing financing with respect to any such transaction;
22        (4) engaging in any activity for which a person engaged
23    in the activity is required to be registered or licensed as
24    a real estate agent or real estate broker under any
25    applicable law; or
26        (5) offering to engage in any activity, or act in any

 

 

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1    capacity, described in this subsection (ss).
2    (tt) "Registered mortgage loan originator" means any
3individual that:
4        (1) meets the definition of mortgage loan originator
5    and is an employee of:
6            (A) a depository institution;
7            (B) a subsidiary that is:
8                (i) owned and controlled by a depository
9            institution; and
10                (ii) regulated by a federal banking agency; or
11            (C) an institution regulated by the Farm Credit
12        Administration; and
13        (2) is registered with, and maintains a unique
14    identifier through, the Nationwide Mortgage Licensing
15    System and Registry.
16    (uu) "Unique identifier" means a number or other identifier
17assigned by protocols established by the Nationwide Mortgage
18Licensing System and Registry.
19    (vv) "Residential mortgage license" means a license issued
20pursuant to Section 1-3, 2-2, or 2-6 of this Act.
21    (ww) "Mortgage loan originator license" means a license
22issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act.
23    (xx) "Secretary" means the Secretary of the Department of
24Financial and Professional Regulation, or a person authorized
25by the Secretary or by this Act to act in the Secretary's
26stead.

 

 

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1    (yy) "Loan modification" means, for compensation or gain,
2either directly or indirectly offering or negotiating on behalf
3of a borrower or homeowner to adjust the terms of a residential
4mortgage loan in a manner not provided for in the original or
5previously modified mortgage loan.
6    (zz) "Short sale facilitation" means, for compensation or
7gain, either directly or indirectly offering or negotiating on
8behalf of a borrower or homeowner to facilitate the sale of
9residential real estate subject to one or more residential
10mortgage loans or debts constituting liens on the property in
11which the proceeds from selling the residential real estate
12will fall short of the amount owed and the lien holders are
13contacted to agree to release their lien on the residential
14real estate and accept less than the full amount owed on the
15debt.
16(Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10;
1796-1216, eff. 1-1-11; 97-143, eff. 7-14-11; 97-891, eff.
188-3-12.)
 
19    Section 10-50. The Mobile Home Park Act is amended by
20changing Section 2.1 as follows:
 
21    (210 ILCS 115/2.1)  (from Ch. 111 1/2, par. 712.1)
22    Sec. 2.1. "Manufactured home" means a factory-assembled,
23completely integrated structure designed for permanent
24habitation, with a permanent chassis, and so constructed as to

 

 

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1permit its transport, on wheels temporarily or permanently
2attached to its frame, and is a movable or portable unit that
3is (i) 8 body feet or more in width, (ii) 40 body feet or more
4in length, and (iii) 320 or more square feet, constructed to be
5towed on its own chassis (comprised of frame and wheels) from
6the place of its construction to the location, or subsequent
7locations, at which it is installed and set up according to the
8manufacturer's instructions and connected to utilities for
9year-round occupancy for use as a permanent habitation, and
10designed and situated so as to permit its occupancy as a
11dwelling place for one or more persons, and specifically
12includes a "manufactured home" as defined in subdivision (53)
13of Section 9-102 of the Uniform Commercial Code. The term shall
14include units containing parts that may be folded, collapsed,
15or telescoped when being towed and that may be expected to
16provide additional cubic capacity, and that are designed to be
17joined into one integral unit capable of being separated again
18into the components for repeated towing. The term excludes
19campers and recreational vehicles. The term "mobile home" shall
20not include modular homes and their support systems. The words
21"mobile home" and "manufactured home" are synonymous for the
22purposes of this Act.
23(Source: P.A. 96-1477, eff. 1-1-11.)
 
24    Section 10-55. The Abandoned Mobile Home Act is amended by
25changing Section 10 as follows:
 

 

 

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1    (210 ILCS 117/10)
2    Sec. 10. Definitions. As used in this Act:
3    "Manufactured home" means 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, and specifically
17includes a "manufactured home" as defined in subdivision (53)
18of Section 9-102 of the Uniform Commercial Code. The term shall
19include units containing parts that may be folded, collapsed,
20or telescoped when being towed and that may be expected to
21provide additional cubic capacity, and that are designed to be
22joined into one integral unit capable of being separated again
23into the components for repeated towing. The term excludes
24campers and recreational vehicles. The words "mobile home" and
25"manufactured home" are synonymous for the purposes of this

 

 

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1Act.
2    "Abandoned mobile home" means a mobile home located inside
3a mobile home park that has no owner currently residing in the
4mobile home or authorized tenant of the owner currently
5residing in the mobile home to the best knowledge of the
6municipality; has had its electricity, natural gas, sewer, and
7water payments declared delinquent by the utility companies
8that are providing such services; and for which the Mobile Home
9Privilege Tax, imposed under the Mobile Home Local Services Tax
10Act, is delinquent for at least 3 months. A mobile home
11abandoned outside a mobile home park must be treated like other
12real property for condemnation purposes.
13    "Municipality" means any city, village, incorporated town,
14or its duly authorized agent. If an abandoned mobile home is
15located in an unincorporated area, the county where the mobile
16home is located shall have all powers granted to a municipality
17under this Act.
18(Source: P.A. 96-1477, eff. 1-1-11.)
 
19    Section 10-60. The Illinois Manufactured Housing and
20Mobile Home Safety Act is amended by changing Section 2 as
21follows:
 
22    (430 ILCS 115/2)  (from Ch. 67 1/2, par. 502)
23    Sec. 2. Unless clearly indicated otherwise by the context,
24the following words and terms when used in this Act, for the

 

 

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1purpose of this Act, shall have the following meanings:
2    (a) "Manufactured home" means a manufactured home as
3defined in subdivision (53) of Section 9-102 of the Uniform
4Commercial Code. "Mobile home" means a factory-assembled,
5completely integrated structure, constructed on or before June
630, 1976, designed for permanent habitation, with a permanent
7chassis, and so constructed as to permit its transport, on
8wheels temporarily or permanently attached to its frame, that
9is a movable or portable unit that is constructed to be towed
10on its own chassis (comprised of frame and wheels) from the
11place of its construction to the location, or subsequent
12locations, at which it is connected to utilities for year-round
13occupancy for use as a permanent habitation, and designed and
14situated so as to permit its occupancy as a dwelling place for
15one or more persons. a factory-assembled, completely
16integrated structure designed for permanent habitation, with a
17permanent chassis, and so constructed as to permit its
18transport, on wheels temporarily or permanently attached to its
19frame, and is a movable or portable unit that is (i) 8 body
20feet or more in width, (ii) 40 body feet or more in length, and
21(iii) 320 or more square feet, constructed to be towed on its
22own chassis (comprised of frame and wheels) from the place of
23its construction to the location, or subsequent locations, at
24which it is installed and set up according to the
25manufacturer's instructions and connected to utilities for
26year-round occupancy for use as a permanent habitation, and

 

 

09800HB2927ham001- 74 -LRB098 07544 HLH 44335 a

1designed and situated so as to permit its occupancy as a
2dwelling place for one or more persons. The terms "manufactured
3home" and "mobile home" term shall include units otherwise
4meeting their respective definitions containing parts that may
5be folded, collapsed, or telescoped when being towed and that
6may be expected to provide additional cubic capacity, and that
7are designed to be joined into one integral unit capable of
8being separated again into the components for repeated towing.
9The terms "mobile home" and "manufactured home" exclude term
10excludes campers and recreational vehicles. The terms "mobile
11home" and "manufactured home" do not include modular homes or
12manufactured housing units.
13    (b) "Person" means a person, partnership, corporation, or
14other legal entity.
15    (c) "Manufacturer" means any person who manufactures
16mobile homes or manufactured housing at the place or places,
17either on or away from the building site, at which machinery,
18equipment and other capital goods are assembled and operated
19for the purpose of making, fabricating, forming or assembling
20mobile homes or manufactured housing.
21    (d) "Department" means the Department of Public Health.
22    (e) "Director" means the Director of the Department of
23Public Health.
24    (f) "Dealer" means any person, other than a manufacturer,
25as defined in this Act, who sells 3 or more mobile homes or
26manufactured housing units in any consecutive 12-month period.

 

 

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1    (g) "Codes" means the safety codes for manufactured housing
2and mobile homes promulgated by the Department. The Codes shall
3contain the standards and requirements for manufactured
4housing and mobile homes so that adequate performance for the
5intended use is made the test of acceptability. The Code of
6Standards shall permit the use of new and used technology,
7techniques, methods and materials, for both manufactured
8housing and mobile homes, consistent with recognized and
9accepted codes and standards developed by the International
10Code Council (ICC) or by the organizations that formed the ICC
11in 1994: Building Officials and Code Administrators, the
12International Conference of Building Officials, the Southern
13Building Codes Congress International, the National Fire
14Protection Association, the International Association of
15Plumbing and Mechanical Officials, the American National
16Standards Institute, the Illinois State Plumbing Code, and the
17United States Department of Housing and Urban Development,
18hereinafter referred to as "HUD", applying to manufactured
19housing and mobile homes installed and set up according to the
20manufacturer's instructions. A copy of said safety codes,
21including said revisions thereof is on file with the
22Department.
23    (h) "Seal" means a device or insignia issued by the
24Department to be displayed on the exterior of the mobile home
25or the interior of a manufactured housing unit or modular home
26to evidence compliance with the applicable safety code.

 

 

09800HB2927ham001- 76 -LRB098 07544 HLH 44335 a

1    (i) "Modular home" means a building assembly or system of
2building sub-assemblies, designed for habitation as a dwelling
3for one or more persons, including the necessary electrical,
4plumbing, heating, ventilating and other service systems,
5which is of closed or open construction and which is made or
6assembled by a manufacturer, on or off the building site, for
7installation, or assembly and installation, on the building
8site, installed and set up according to the manufacturer's
9instructions on an approved foundation and support system. The
10construction of modular dwelling units located in Illinois is
11regulated by the Illinois Department of Public Health.
12    (j) "Closed construction" is any building, component,
13assembly or system manufactured in such a manner that all
14portions cannot readily be inspected at the installation site
15without disassembly, damage to, or destruction thereof.
16    (k) "Open construction" is any building, component,
17assembly or system manufactured in such a manner that all
18portions can be readily inspected at the installation site
19without disassembly, damage to, or destruction thereof.
20    (l) "Approved foundation and support system" means, for a
21modular home or modular dwelling unit, a closed perimeter
22formation consisting of materials such as concrete, mortared
23concrete block, or mortared brick extending into the ground
24below the frost line which shall include, but not necessarily
25be limited to, cellars, basements, or crawl spaces, and does
26include the use of piers supporting the marriage wall of the

 

 

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1home that extend below the frost line.
2    (m) "Code compliance certificate" means the certificate
3provided by the manufacturer to the Department that warrants
4that the manufactured housing unit or mobile home complies with
5the applicable code.
6    (n) "Manufactured housing", "manufactured housing unit",
7"modular dwelling", and "modular home" shall not be confused
8with "manufactured home" or "mobile home".
9(Source: P.A. 96-1477, eff. 1-1-11.)
 
10    Section 10-65. The Manufactured Home Quality Assurance Act
11is amended by changing Section 10 as follows:
 
12    (430 ILCS 117/10)
13    Sec. 10. Definitions. In this Act:
14    "Department" means the Illinois Department of Public
15Health.
16    "Licensed installer" means a person who has successfully
17completed a manufactured home installation course approved by
18the Department and paid the required fees.
19    "Manufactured home" means a "manufactured home", as
20defined in subdivision (53) of Section 9-102 of the Uniform
21Commercial Code. "Mobile home" means a factory-assembled,
22completely integrated structure, constructed on or before June
2330, 1976, designed for permanent habitation, with a permanent
24chassis, and so constructed as to permit its transport, on

 

 

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1wheels temporarily or permanently attached to its frame, that
2is a movable or portable unit that is constructed to be towed
3on its own chassis (comprised of frame and wheels) from the
4place of its construction to the location, or subsequent
5locations, at which it is connected to utilities for year-round
6occupancy for use as a permanent habitation, and designed and
7situated so as to permit its occupancy as a dwelling place for
8one or more persons. a factory-assembled, completely
9integrated structure designed for permanent habitation, with a
10permanent chassis, and so constructed as to permit its
11transport, on wheels temporarily or permanently attached to its
12frame, and is a movable or portable unit that is (i) 8 body
13feet or more in width, (ii) 40 body feet or more in length, and
14(iii) 320 or more square feet, constructed to be towed on its
15own chassis (comprised of frame and wheels) from the place of
16its construction to the location, or subsequent locations, at
17which it is installed and set up according to the
18manufacturer's instructions and connected to utilities for
19year-round occupancy for use as a permanent habitation, and
20designed and situated so as to permit its occupancy as a
21dwelling place for one or more persons. The terms "manufactured
22home" and "mobile home" term shall include units otherwise
23meeting their respective definitions containing parts that may
24be folded, collapsed, or telescoped when being towed and that
25may be expected to provide additional cubic capacity, and that
26are designed to be joined into one integral unit capable of

 

 

09800HB2927ham001- 79 -LRB098 07544 HLH 44335 a

1being separated again into the components for repeated towing.
2The terms "manufactured home" and "mobile home" exclude term
3excludes campers and recreational vehicles.
4    "Manufacturer" means a manufacturer of a manufactured
5home, whether the manufacturer is located within or outside of
6the State of Illinois.
7    "Mobile home" or "manufactured home" does not include a
8modular home.
9    "Mobile home park" means a tract of land or 2 contiguous
10tracts of land that contain sites with the necessary utilities
11for 5 or more mobile homes or manufactured homes. A mobile home
12park may be operated either free of charge or for revenue
13purposes.
14(Source: P.A. 96-1477, eff. 1-1-11.)
 
15    Section 10-70. The Illinois Vehicle Code is amended by
16changing Sections 3-100, 3-102, 3-103, 3-104, 3-106, 3-107,
173-109, 3-110, 3-116, 3-202, 3-205, 3-207, and 3-208 and by
18adding Sections 1-144.03, 3-116.1, 3-116.2, and 3-116.3 as
19follows:
 
20    (625 ILCS 5/1-144.03 new)
21    Sec. 1-144.03. Mobile home or manufactured home. A mobile
22home or manufactured home means a manufactured home as defined
23in subdivision (53) of Section 9-102 of the Uniform Commercial
24Code.
 

 

 

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1    (625 ILCS 5/3-100)  (from Ch. 95 1/2, par. 3-100)
2    Sec. 3-100. Definitions. For the purposes of this Chapter,
3the following words shall have the meanings ascribed to them:
4    "Electronic" includes electrical, digital, magnetic,
5optical, electromagnetic, or any other form of technology that
6entails capabilities similar to these technologies.
7    "Electronic record" means a record generated,
8communicated, received, or stored by electronic means for use
9in an information system or for transmission from one
10information system to another.
11    "Electronic signature" means a signature in electronic
12form attached to or logically associated with an electronic
13record.
14    "Owner" means a person who holds legal document of
15ownership of a vehicle, limited to a certificate of origin,
16certificate of title, salvage certificate, or junking
17certificate. However, in the event a vehicle is the subject of
18an agreement for the conditional sale or lease thereof with the
19right of purchase upon performance of the conditions stated in
20the agreement and with an immediate right of possession vested
21in the conditional vendee or lessee, or in the event a
22mortgagor of such vehicle is entitled to possession, then such
23conditional vendee or lessee or mortgagor shall be deemed the
24owner for the purpose of this Chapter, except as provided under
25paragraph (c) of Section 3-118.

 

 

09800HB2927ham001- 81 -LRB098 07544 HLH 44335 a

1    "Record" means information that is inscribed, stored, or
2otherwise fixed on a tangible medium or that is stored in an
3electronic or other medium and is retrievable in perceivable
4form.
5    "Signature" or "signed" includes any symbol executed or
6adopted, or any security procedure employed or adopted, using
7electronic means or otherwise, by or on behalf of a person with
8intent to authenticate a record.
9    "Vehicle" means a vehicle as defined in Section 1-217 of
10this Code. Unless otherwise specified, "vehicle" also means a
11"manufactured home" as defined in Section 1-144.03 of this
12Code.
13(Source: P.A. 91-79, eff. 1-1-00; 91-357, eff. 7-29-99; 91-772,
14eff. 1-1-01.)
 
15    (625 ILCS 5/3-102)  (from Ch. 95 1/2, par. 3-102)
16    Sec. 3-102. Exclusions.
17    No certificate of title need be obtained for:
18    1. A vehicle owned by the State of Illinois; or a vehicle
19owned by the United States unless it is registered in this
20State;
21    2. A vehicle owned by a manufacturer or dealer and held for
22sale, even though incidentally moved on the highway or used for
23purposes of testing or demonstration, provided a dealer
24reassignment area is still available on the manufacturer's
25certificate of origin or the Illinois title; or a vehicle used

 

 

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1by a manufacturer solely for testing;
2    3. A vehicle owned by a non-resident of this State and not
3required by law to be registered in this State;
4    4. A motor vehicle regularly engaged in the interstate
5transportation of persons or property for which a currently
6effective certificate of title has been issued in another
7State;
8    5. A vehicle moved solely by animal power;
9    6. An implement of husbandry;
10    7. Special mobile equipment;
11    8. An apportionable trailer or an apportionable
12semitrailer registered in the State prior to April 1, 1998.
13    9. A manufactured home for which an affidavit of affixation
14has been recorded pursuant to the Conveyance and Encumbrance of
15Manufactured Homes as Real Property and Severance Act unless
16with respect to the same manufactured home there has been
17recorded an affidavit of severance pursuant to that Act.
18(Source: P.A. 91-441, eff. 1-1-00.)
 
19    (625 ILCS 5/3-103)  (from Ch. 95 1/2, par. 3-103)
20    Sec. 3-103. Optional certificate of title.
21    (a) The owner of an implement of husbandry or special
22mobile equipment may apply for and obtain a certificate of
23title on it. All of the provisions of this chapter, except part
24(e) of Section 3-104, are applicable to a certificate of title
25so issued, except that a person who receives a transfer of an

 

 

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1interest in the vehicle without knowledge of the certificate of
2title is not prejudiced by reason of the existence of the
3certificate, and the perfection of a security interest under
4this act is not effective until the lienholder has complied
5with the provisions of applicable law which otherwise relate to
6the perfection of security interests in personal property.
7    An application for an optional certificate of title must be
8accompanied by either an exemption determination from the
9Department of Revenue showing that no tax imposed under the
10"Use Tax Act" or the "Retailers' Occupation Tax Act" is owed by
11anyone with respect to that vehicle or by a receipt from the
12Department of Revenue showing that any tax so imposed has been
13paid. No optional certificate of title shall be issued in the
14absence of such a receipt or exemption determination.
15    If the proof of payment or of nonliability is, after the
16issuance of the optional certificate of title, found to be
17invalid, the Secretary of State shall revoke the optional
18certificate of title and require that it be returned to him.
19    (b) The owner of a manufactured home which is affixed to a
20permanent foundation and for which a certificate of title has
21not previously been issued and surrendered for cancellation may
22apply for a certificate of title, including, if applicable, a
23certificate of title issued in accordance with subsection (b)
24of Section 3-109, which shall be issued for the sole purpose of
25(i) surrendering such certificate of title for cancellation in
26accordance with Section 3-116.2 or (ii) satisfying the

 

 

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1requirements of subdivision (e)(4) of Section 9-334 of the
2Uniform Commercial Code. The Secretary of State shall issue a
3certificate of title, in accordance with this Chapter, upon
4satisfaction of the application requirements of this Code.
5(Source: P.A. 78-1165.)
 
6    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)
7    Sec. 3-104. Application for certificate of title.
8    (a) The application for a certificate of title for a
9vehicle in this State must be made by the owner to the
10Secretary of State on the form prescribed and must contain:
11        1. The name, Illinois residence and mail address of the
12    owner;
13        2. A description of the vehicle including, so far as
14    the following data exists: Its make, year-model,
15    identifying number, type of body, whether new or used, as
16    to house trailers as defined in Section 1-128 of this
17    Code,and as to manufactured homes as defined in Section
18    1-144.03 of this Code, the square footage of the house
19    trailer based upon the outside dimensions of the house
20    trailer excluding the length of the tongue and hitch, and,
21    as to vehicles of the second division, whether for-hire,
22    not-for-hire, or both for-hire and not-for-hire;
23        3. The date of purchase by applicant and, if
24    applicable, the name and address of the person from whom
25    the vehicle was acquired and the names and addresses of any

 

 

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1    lienholders in the order of their priority and signatures
2    of owners;
3        4. The current odometer reading at the time of transfer
4    and that the stated odometer reading is one of the
5    following: actual mileage, not the actual mileage or
6    mileage is in excess of its mechanical limits; and
7        5. Any further information the Secretary of State
8    reasonably requires to identify the vehicle and to enable
9    him to determine whether the owner is entitled to a
10    certificate of title and the existence or nonexistence of
11    security interests in the vehicle.
12    (a-5) The Secretary of State shall designate on the
13prescribed application form a space where the owner of a
14vehicle may designate a beneficiary, to whom ownership of the
15vehicle shall pass in the event of the owner's death.
16    (b) If the application refers to a vehicle purchased from a
17dealer, it must also be signed by the dealer as well as the
18owner, and the dealer must promptly mail or deliver the
19application and required documents to the Secretary of State.
20    (c) If the application refers to a vehicle last previously
21registered in another State or country, the application must
22contain or be accompanied by:
23        1. Any certified document of ownership so recognized
24    and issued by the other State or country and acceptable to
25    the Secretary of State, and
26        2. Any other information and documents the Secretary of

 

 

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1    State reasonably requires to establish the ownership of the
2    vehicle and the existence or nonexistence of security
3    interests in it.
4    (d) If the application refers to a new vehicle it must be
5accompanied by the Manufacturer's Statement of Origin, or other
6documents as required and acceptable by the Secretary of State,
7with such assignments as may be necessary to show title in the
8applicant.
9    (e) If an application refers to a vehicle rebuilt from a
10vehicle previously salvaged, that application shall comply
11with the provisions set forth in Sections 3-302 through 3-304
12of this Code.
13    (f) An application for a certificate of title for any
14vehicle, whether purchased in Illinois or outside Illinois, and
15even if previously registered in another State, must be
16accompanied by either an exemption determination from the
17Department of Revenue showing that no tax imposed pursuant to
18the Use Tax Act or the vehicle use tax imposed by Section
193-1001 of the Illinois Vehicle Code is owed by anyone with
20respect to that vehicle, or a receipt from the Department of
21Revenue showing that any tax so imposed has been paid. An
22application for a certificate of title for any vehicle
23purchased outside Illinois, even if previously registered in
24another state, must be accompanied by either an exemption
25determination from the Department of Revenue showing that no
26tax imposed pursuant to the Municipal Use Tax Act or the County

 

 

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1Use Tax Act is owed by anyone with respect to that vehicle, or
2a receipt from the Department of Revenue showing that any tax
3so imposed has been paid. In the absence of such a receipt for
4payment or determination of exemption from the Department, no
5certificate of title shall be issued to the applicant.
6    If the proof of payment of the tax or of nonliability
7therefor is, after the issuance of the certificate of title and
8display certificate of title, found to be invalid, the
9Secretary of State shall revoke the certificate and require
10that the certificate of title and, when applicable, the display
11certificate of title be returned to him.
12    (g) If the application refers to a vehicle not manufactured
13in accordance with federal safety and emission standards, the
14application must be accompanied by all documents required by
15federal governmental agencies to meet their standards before a
16vehicle is allowed to be issued title and registration.
17    (h) If the application refers to a vehicle sold at public
18sale by a sheriff, it must be accompanied by the required fee
19and a bill of sale issued and signed by a sheriff. The bill of
20sale must identify the new owner's name and address, the year
21model, make and vehicle identification number of the vehicle,
22court order document number authorizing such sale, if
23applicable, and the name and address of any lienholders in
24order of priority, if applicable.
25    (i) If the application refers to a vehicle for which a
26court of law determined the ownership, it must be accompanied

 

 

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1with a certified copy of such court order and the required fee.
2The court order must indicate the new owner's name and address,
3the complete description of the vehicle, if known, the name and
4address of the lienholder, if any, and must be signed and dated
5by the judge issuing such order.
6    (j) If the application refers to a vehicle sold at public
7auction pursuant to the Labor and Storage Lien (Small Amount)
8Act, it must be accompanied by an affidavit or affirmation
9furnished by the Secretary of State along with the documents
10described in the affidavit or affirmation and the required fee.
11    (k) The Secretary may provide an expedited process for the
12issuance of vehicle titles. Expedited title applications must
13be delivered to the Secretary of State's Vehicle Services
14Department in Springfield by express mail service or hand
15delivery. Applications must be complete, including necessary
16forms, fees, and taxes. Applications received before noon on a
17business day will be processed and shipped that same day.
18Applications received after noon on a business day will be
19processed and shipped the next business day. The Secretary
20shall charge an additional fee of $30 for this service, and
21that fee shall cover the cost of return shipping via an express
22mail service. All fees collected by the Secretary of State for
23expedited services shall be deposited into the Motor Vehicle
24License Plate Fund. In the event the Vehicle Services
25Department determines that the volume of expedited title
26requests received on a given day exceeds the ability of the

 

 

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1Vehicle Services Department to process those requests in an
2expedited manner, the Vehicle Services Department may decline
3to provide expedited services, and the additional fee for the
4expedited service shall be refunded to the applicant.
5    (l) If the application refers to a homemade trailer, (i) it
6must be accompanied by the appropriate documentation regarding
7the source of materials used in the construction of the
8trailer, as required by the Secretary of State, (ii) the
9trailer must be inspected by a Secretary of State employee
10prior to the issuance of the title, and (iii) upon approval of
11the Secretary of State, the trailer must have a vehicle
12identification number, as provided by the Secretary of State,
13stamped or riveted to the frame.
14    (m) The holder of a Manufacturer's Statement of Origin to a
15manufactured home may deliver it to any person to facilitate
16conveying or encumbering the manufactured home. Any person
17receiving any such Manufacturer's Statement of Origin so
18delivered holds it in trust for the person delivering it.
19    (n) Within 45 days after the completion of the first retail
20sale of a manufactured home, the Manufacturer's Statement of
21Origin to that manufactured home must be surrendered to the
22Secretary of State either in conjunction with an application
23for a certificate of title for that manufactured home or in
24accordance with Section 3-116.1.
25(Source: P.A. 96-519, eff. 1-1-10; 96-554, eff. 1-1-10;
2696-1000, eff. 7-2-10; 97-918, eff. 1-1-13.)
 

 

 

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1    (625 ILCS 5/3-106)  (from Ch. 95 1/2, par. 3-106)
2    Sec. 3-106. Certificate of title - Issuance - Records. (a)
3The Secretary of State shall file each application received
4and, when satisfied as to its genuineness and regularity, and
5that no tax imposed by the "Use Tax Act" or the vehicle use
6tax, as imposed by Section 3-1001 of "The Illinois Vehicle
7Code", or pursuant to the "Municipal Use Tax Act" or pursuant
8to the "County Use Tax Act" is owed as evidenced by the receipt
9for payment or determination of exemption from the Department
10of Revenue provided for in Section 3-104 of this Act, and that
11the applicant is entitled to the issuance of a certificate of
12title, shall issue a certificate of title of the vehicle.
13    (b) The Secretary of State shall maintain a record of all
14certificates of title issued by him under a distinctive title
15number assigned to the vehicle; and, in the discretion of the
16Secretary of State, in any other method determined.
17    (c) The Secretary of State shall not issue a certificate of
18title, including a certificate of title issued in accordance
19with subsection (b) of Section 3-109, to a manufactured home
20for which there has been recorded an affidavit of affixation
21pursuant to the Conveyance and Encumbrance of Manufactured
22Homes as Real Property and Severance Act unless with respect to
23the same manufactured home there has been recorded an affidavit
24of severance pursuant to the Conveyance and Encumbrance of
25Manufactured Homes as Real Property and Severance Act.

 

 

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1    (d) The Secretary of State shall file, upon receipt, each
2affidavit of affixation and each affidavit of severance
3relating to a manufactured home that is delivered in accordance
4with the Conveyance and Encumbrance of Manufactured Homes as
5Real Property and Severance Act, when satisfied as to its
6genuineness and regularity.
7    (e) The Secretary of State shall maintain a record of each
8affidavit of affixation and each affidavit of severance filed
9in accordance with subsection (d) of this Section. The record
10shall state the name of the owner of the related manufactured
11home, the name of manufacturer, model year, manufacturer's
12serial number, and any other data the Secretary of State
13prescribes.
14    (f) The Secretary of State shall file, upon receipt, each
15application for surrender of the Manufacturer's Statement of
16Origin relating to a manufactured home that is delivered in
17accordance with Section 3-116.1, when satisfied as to its
18genuineness and regularity.
19    (g) The Secretary of State shall file, upon receipt, each
20application for surrender of the certificate of title relating
21to a manufactured home that is delivered in accordance with
22Section 3-116.2, when satisfied as to its genuineness and
23regularity.
24    (h) The Secretary of State shall maintain a record,
25including a record in the form of a searchable electronic
26database accessible to the public, of each Manufacturer's

 

 

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1Statement of Origin accepted for surrender as provided in
2Section 3-116.1. The record shall state the date the
3Manufacturer's Statement of Origin was accepted for surrender,
4the name of manufacturer, make, model name, model year,
5manufacturer's serial number, and any other data the Secretary
6of State prescribes.
7    (i) The Secretary of State shall maintain a record,
8including a record in the form of a searchable electronic
9database accessible to the public, of each manufactured home
10certificate of title accepted for surrender as provided in
11Section 3-116.2. The record shall state the date the
12certificate of title was accepted for surrender, the name of
13manufacturer, model year, manufacturer's serial number, and
14any other data the Secretary of State prescribes.
15(Source: P.A. 86-444.)
 
16    (625 ILCS 5/3-107)  (from Ch. 95 1/2, par. 3-107)
17    Sec. 3-107. Contents and effect.
18    (a) Each certificate of title issued by the Secretary of
19State shall contain:
20        1. the date issued;
21        2. the name and address of the owner;
22        3. the names and addresses of any lienholders, in the
23    order of priority as shown on the application or, if the
24    application is based on a certificate of title, as shown on
25    the certificate;

 

 

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1        4. the title number assigned to the vehicle;
2        5. 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 Code,
6    and as to manufactured homes as defined in Section 1-144.03
7    of this Code, the square footage of the vehicle based upon
8    the outside dimensions of the house trailer excluding the
9    length of the tongue and hitch, and, if a new vehicle, the
10    date of the first sale of the vehicle for use;
11        6. an odometer certification as provided for in this
12    Code; and
13        7. any other data the Secretary of State prescribes.
14    (a-5) In the event the applicant seeks to have the vehicle
15titled as a custom vehicle or street rod, that fact must be
16stated in the application. The custom vehicle or street rod
17must be inspected as required by Section 3-406 of this Code
18prior to issuance of the title. Upon successful completion of
19the inspection, the vehicle may be titled in the following
20manner. The make of the vehicle shall be listed as the make of
21the actual vehicle or the make it is designed to resemble
22(e.g., Ford or Chevrolet); the model of the vehicle shall be
23listed as custom vehicle or street rod; and the year of the
24vehicle shall be listed as the year the actual vehicle was
25manufactured or the year it is designed to resemble. A vehicle
26previously titled as other than a custom vehicle or street rod

 

 

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1may be issued a corrected title reflecting the custom vehicle
2or street rod model if it otherwise meets the requirements for
3the designation.
4    (b) The certificate of title shall contain forms for
5assignment and warranty of title by the owner, and for
6assignment and warranty of title by a dealer, and may contain
7forms for applications for a certificate of title by a
8transferee, the naming of a lienholder and the assignment or
9release of the security interest of a lienholder.
10    (b-5) The Secretary of State shall designate on a
11certificate of title a space where the owner of a vehicle may
12designate a beneficiary, to whom ownership of the vehicle shall
13pass in the event of the owner's death.
14    (c) A certificate of title issued by the Secretary of State
15is prima facie evidence of the facts appearing on it.
16    (d) A certificate of title for a vehicle is not subject to
17garnishment, attachment, execution or other judicial process,
18but this subsection does not prevent a lawful levy upon the
19vehicle.
20    (e) Any certificate of title issued by the Secretary of
21State is subject to a lien in favor of the State of Illinois
22for any fees or taxes required to be paid under this Act and as
23have not been paid, as provided for in this Code.
24    (f) Notwithstanding any other provision of law, a
25certificate of title issued by the Secretary of State to a
26manufactured home is prima facie evidence of the facts

 

 

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1appearing on it, notwithstanding the fact that such
2manufactured home, at any time, shall have become affixed in
3any manner to real property.
4(Source: P.A. 95-784, eff. 1-1-09; 96-487, eff. 1-1-10.)
 
5    (625 ILCS 5/3-109)  (from Ch. 95 1/2, par. 3-109)
6    Sec. 3-109. Registration without certificate of title;
7bond. If the Secretary of State is not satisfied as to the
8ownership of the vehicle, including but not limited to, in the
9case of a manufactured home, a circumstance in which the
10manufactured home is covered by a Manufacturer's Statement of
11Origin that the owner of the manufactured home, after diligent
12search and inquiry, is unable to produce, or that there are no
13undisclosed security interests in it, the Secretary of State
14may register the vehicle but shall either:
15    (a) Withhold issuance of a certificate of title until the
16applicant presents documents reasonably sufficient to satisfy
17the Secretary of State as to the applicant's ownership of the
18vehicle and that there are no undisclosed security interests in
19it; or
20    (b) As a condition of issuing a certificate of title,
21require the applicant to file with the Secretary of State a
22bond in the form prescribed by the Secretary of State and
23executed by the applicant, and either accompanied by the
24deposit of cash with the Secretary of State or also executed by
25a person authorized to conduct a surety business in this State.

 

 

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1The bond shall be in an amount equal to one and one-half times
2the value of the vehicle as determined by the Secretary of
3State and conditioned to indemnify any prior owner and
4lienholder and any subsequent purchaser of the vehicle or
5person acquiring any security interest in it, and their
6respective successors in interest, against any expense, loss or
7damage, including reasonable attorney's fees, by reason of the
8issuance of the certificate of title of the vehicle or on
9account of any defect in or undisclosed security interest upon
10the right, title and interest of the applicant in and to the
11vehicle. Any such interested person has a right of action to
12recover on the bond for any breach of its conditions, but the
13aggregate liability of the surety to all persons shall not
14exceed the amount of the bond. The bond, and any deposit
15accompanying it, shall be returned at the end of three (3)
16years or prior thereto if (i) the vehicle is no longer
17registered in this State and the currently valid certificate of
18title is surrendered to the Secretary of State or (ii), in the
19case of a certificate of title to a manufactured home, the
20currently valid certificate of title is surrendered to the
21Secretary of State in accordance with Section 3-116.2, unless
22the Secretary of State has been notified of the pendency of an
23action to recover on the bond.
24    Security deposited as a bond hereunder shall be placed by
25the Secretary of State in the custody of the State Treasurer.
26    (c) During July, annually, the Secretary shall compile a

 

 

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1list of all bonds on deposit, pursuant to this Section, for
2more than 3 years and concerning which he has received no
3notice as to the pendency of any judicial proceeding that could
4affect the disposition thereof. Thereupon, he shall promptly
5send a notice by certified mail to the last known address of
6each depositor advising him that his bond will be subject to
7escheat to the State of Illinois if not claimed within 30 days
8after the mailing date of such notice. At the expiration of
9such time, the Secretary of State shall file with the State
10Treasurer an order directing the transfer of such deposit to
11the Road Fund in the State Treasury. Upon receipt of such
12order, the State Treasurer shall make such transfer, after
13converting to cash any other type of security. Thereafter any
14person having a legal claim against such deposit may enforce it
15by appropriate proceedings in the Court of Claims subject to
16the limitations prescribed for such Court. At the expiration of
17such limitation period such deposit shall escheat to the State
18of Illinois.
19(Source: P.A. 81-1458.)
 
20    (625 ILCS 5/3-110)  (from Ch. 95 1/2, par. 3-110)
21    Sec. 3-110. Refusing certificate of title. The Secretary of
22State shall refuse issuance of a certificate of title if any
23required fee is not paid or if he has reasonable grounds to
24believe that:
25        (a) the applicant is not the owner of the vehicle;

 

 

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1        (b) the application contains a false or fraudulent
2    statement;
3        (c) the applicant fails to furnish required
4    information or documents or any additional information the
5    Secretary of State reasonably requires; or
6        (d) the applicant has not paid to the Secretary of
7    State any fees or taxes due under this Act and have not
8    been paid upon reasonable notice and demand.
9    Except as provided in Section 3-116.2, the Secretary of
10State shall not refuse to issue a certificate of title to a
11manufactured home by reason of the fact that, at any time, in
12any manner, it shall have been affixed to real property.
13(Source: P.A. 97-333, eff. 8-12-11.)
 
14    (625 ILCS 5/3-116)  (from Ch. 95 1/2, par. 3-116)
15    Sec. 3-116. When Secretary of State to issue a certificate
16of title.
17    (a) The Secretary of State, upon receipt of a properly
18assigned certificate of title, with an application for a
19certificate of title, the required fee and any other documents
20required by law, shall issue a new certificate of title in the
21name of the transferee as owner and mail it to the first
22lienholder named in it or, if none, to the owner or owner's
23designee.
24    (b) The Secretary of State, upon receipt of an application
25for a new certificate of title by a transferee other than by

 

 

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1voluntary transfer, with proof of the transfer, the required
2fee and any other documents required by law, shall issue a new
3certificate of title in the name of the transferee as owner.
4    (c) Any person, firm or corporation, who shall knowingly
5possess, buy, sell, exchange or give away, or offer to buy,
6sell, exchange or give away the certificate of title to any
7motor vehicle which is a junk or salvage, or who shall fail to
8surrender the certificate of title to the Secretary of State as
9required under the provisions of this Section and Section
103-117.2, shall be guilty of Class 3 felony.
11    (d) The Secretary of State shall file and retain for four
12(4) years a record of every surrendered certificate of title or
13proof of ownership accepted by the Secretary of State, the file
14to be maintained so as to permit the tracing of title of the
15vehicle designated therein. Such filing and retention
16requirements shall be in addition to and not in substitution
17for the recordkeeping requirements set forth in Section 3-106
18of this Code, which recordkeeping requirements are not limited
19to any period of time.
20    (e) The Secretary of State, upon receipt of an application
21for corrected certificate of title, with the original title,
22the required fee and any other required documents, shall issue
23a corrected certificate of title in the name of the owner and
24mail it to the first lienholder named in it or, if none, to the
25owner or owner's designee.
26    (f) The Secretary of State, upon receipt of a certified

 

 

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1copy of a court order awarding ownership to an applicant along
2with an application for a certificate of title and the required
3fee, shall issue a certificate of title to the applicant.
4(Source: P.A. 90-212, eff. 1-1-98.)
 
5    (625 ILCS 5/3-116.1 new)
6    Sec. 3-116.1. Surrender of Manufacturer's Statement of
7Origin to a manufactured home.
8    (a) The owner (all, if more than one) of a manufactured
9home that is covered by a Manufacturer's Statement of Origin
10and that is affixed to a permanent foundation as defined in the
11Conveyance and Encumbrance of Manufactured Homes as Real
12Property and Severance Act, or which the owner intends to affix
13to a permanent foundation as defined in the Conveyance and
14Encumbrance of Manufactured Homes as Real Property and
15Severance Act, may surrender the Manufacturer's Statement of
16Origin to the manufactured home to the Secretary of State by
17filing with the Secretary of State an application for surrender
18of Manufacturer's Statement of Origin containing or
19accompanied by:
20            (1) the name, residence, and mailing address of the
21    owner;
22            (2) a description of the manufactured home
23    including the name of the manufacturer, the make, the model
24    name, the model year, the dimensions, and the vehicle
25    identification number of the manufactured home and whether

 

 

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1    it is new or used, and any other information the Secretary
2    of State requires;
3            (3) the date of purchase by the owner of the
4    manufactured home, the name and address of the person from
5    whom the home was acquired, and the names and addresses of
6    any security interest holders and lienholders in the order
7    of their apparent priority;
8            (4) a statement signed by the owner, stating either
9    (i) any facts or information known to the owner that could
10    reasonably affect the validity of the title to the
11    manufactured home or the existence or non-existence of a
12    security interest in or lien on it or (ii) that no such
13    facts or information are known to the owner;
14            (5) a certified copy of the recorded affidavit of
15    affixation in accordance with the Conveyance and
16    Encumbrance of Manufactured Homes as Real Property and
17    Severance Act;
18            (6) the original Manufacturer's Statement of
19    Origin;
20            (7) the name and mailing address of each owner of
21    the manufactured home or such owner's designee wishing to
22    receive written acknowledgment of surrender from the
23    Secretary of State; and
24            (8) any other information and documents the
25    Secretary of State reasonably requires to identify the
26    owner of the manufactured home and to enable him or her to

 

 

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

 

 

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1accepted by the Secretary of State, the requirements of this
2Section shall be deemed satisfied as of the date the affidavit
3of affixation is recorded.
4    (d) Upon written request by a person identified on the
5application for surrender of Manufacturer's Statement of
6Origin pursuant to subsection (a)(7) of this Section, the
7Secretary of State shall provide written acknowledgment of
8compliance with the provisions of this Section.
 
9    (625 ILCS 5/3-116.2 new)
10    Sec. 3-116.2. Application for surrender of title.
11    (a) The owner (all, if more than one) of a manufactured
12home that is covered by a certificate of title, including, if
13applicable, a certificate of title issued in accordance with
14subsection (b) of Section 3-109, and that is permanently
15affixed to real property as defined in the Conveyance and
16Encumbrance of Manufactured Homes as Real Property and
17Severance Act, or which the owner intends to permanently affix
18to real property as defined in the Conveyance and Encumbrance
19of Manufactured Homes as Real Property and Severance Act, may
20surrender the certificate of title to the manufactured home to
21the Secretary of State by filing with the Secretary of State an
22application for surrender of title containing or accompanied
23by:
24        (1) the name, residence, and mailing address of the
25    owner;

 

 

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1        (2) a description of the manufactured home including
2    the name of the manufacturer, the make, the model name, the
3    model year, the dimensions, and the vehicle identification
4    number or numbers of the manufactured home and whether it
5    is new or used and any other information the Secretary of
6    State requires;
7        (3) the date of purchase by the owner of the
8    manufactured home, the name and address of the person from
9    whom the home was acquired and the names and addresses of
10    any security interest holders and lienholders in the order
11    of their apparent priority;
12        (4) a statement signed by the owner, stating either,
13    (i) any facts or information known to the owner that could
14    reasonably affect the validity of the title to the
15    manufactured home or the existence or non-existence of a
16    security interest in or lien on it; or (ii) that no such
17    facts or information are known to the owner;
18        (5) a certified copy of the affidavit of affixation in
19    accordance with the Conveyance and Encumbrance of
20    Manufactured Homes as Real Property and Severance Act;
21        (6) the original certificate of title;
22        (7) the name and mailing address of each owner of the
23    manufactured home or such owner's designee wishing written
24    acknowledgment of surrender from the Secretary of State;
25        (8) a release of security interests (if any) pursuant
26    to Section 3-205 of this Code; and

 

 

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1        (9) any other information and documents the Secretary
2    of State reasonably requires to identify the owner of the
3    manufactured home and to enable him or her to determine
4    whether the owner satisfied the requirements of the
5    Conveyance and Encumbrance of Manufactured Homes as Real
6    Property and Severance Act and is entitled to surrender the
7    certificate of title and the existence or non-existence of
8    security interests in or liens on the manufactured home.
9    (b) The Secretary of State shall not accept for surrender a
10certificate of title to a manufactured home unless and until
11all security interests or liens perfected pursuant to Sections
123-106 and 3-202 have been released.
13    (c) When satisfied as to the genuineness and regularity of
14the surrender of a certificate of title to a manufactured home,
15payment of any applicable fees and upon satisfaction of the
16requirements of subsections (a) and (b) of this Section, the
17Secretary of State shall (i) cancel the certificate of title
18and update his or her records in accordance with the provisions
19of Section 3-106 and (ii) provide written acknowledgment of
20compliance with the provisions of this Section to each person
21identified on the application for surrender of title pursuant
22to subsection (a)(7) of this Section.
23    (d) Upon satisfaction of the requirements of this Section,
24a manufactured home shall be conveyed and encumbered as
25provided in the Conveyance and Encumbrance of Manufactured
26Homes as Real Property and Severance Act. If the application to

 

 

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1surrender a certificate of title is delivered to the Secretary
2of State within 60 days of recording the related affidavit of
3affixation with the recording officer in the county in which
4the real property to which the manufactured home is or shall be
5affixed, and the application is thereafter accepted by the
6Secretary of State, the requirements of this Section shall be
7deemed satisfied as of the date the affidavit of affixation is
8recorded.
9    (e) Upon written request by a person identified on the
10application for surrender of title pursuant to subsection
11(a)(7) of this Section, the Secretary of State shall provide
12written acknowledgment of compliance with the provisions of
13this Section.
 
14    (625 ILCS 5/3-116.3 new)
15    Sec. 3-116.3. Application for a certificate of title to a
16severed manufactured home.
17    (a) Notwithstanding any other provision of law, where a
18manufactured home has been affixed to a permanent foundation,
19and an affidavit of affixation has been recorded as part of the
20real property records in the county in which the manufactured
21home is located in accordance with the Conveyance and
22Encumbrance of Manufactured Homes as Real Property and
23Severance Act, and where the manufactured home subsequently is
24detached or severed from the real property, the owner (all, if
25more than one) of the manufactured home shall, unless exempted

 

 

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1by other provisions of this Code, apply for a new certificate
2of title by filing with the Secretary of State an application
3for a certificate of title to a manufactured home, to be issued
4in accordance with subsection (b) of Section 3-109, containing
5or accompanied by:
6        (1) the name, residence, and mailing address of the
7    owner;
8        (2) 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, and any other information the Secretary of
13    State requires;
14        (3) a statement signed by the applicant, stating
15    either: (i) any facts or information known to the applicant
16    that could reasonably affect the validity of the title of
17    the manufactured home or the existence or non-existence of
18    any security interest in or lien on it or (ii) that no such
19    facts or information are known to the applicant;
20        (4) a certified copy of the recorded affidavit of
21    severance provided in accordance with the Conveyance and
22    Encumbrance of Manufactured Homes as Real Property and
23    Severance Act; and
24        (5) any other information and documents the Secretary
25    of State reasonably requires.
26    (b) Upon satisfaction of the requirements of subsection (a)

 

 

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1of this Section and subsection (b) of Section 3-109, the
2Secretary of State shall issue a new certificate of title
3pursuant to subsection (b) of Section 3-109 and update his or
4her records in accordance with the provisions of Section 3-106.
5    (c) Immediately upon satisfaction of the requirements of
6this Section and thereafter, a manufactured home shall be
7conveyed and encumbered as personal property.
8    (d) The satisfaction of the requirements of this Section
9with respect to a manufactured home shall have no effect on the
10manner in which such manufactured home is taxed pursuant to the
11Property Tax Code or the Mobile Home Local Services Tax Act.
 
12    (625 ILCS 5/3-202)  (from Ch. 95 1/2, par. 3-202)
13    Sec. 3-202. Perfection of security interest.
14    (a) Unless excepted by Section 3-201, a security interest
15in a vehicle of a type for which a certificate of title is
16required is not valid against subsequent transferees or
17lienholders of the vehicle unless perfected as provided in this
18Act. A purchase money security interest in a manufactured home
19is perfected against the rights of judicial lien creditors and
20execution creditors on and after the date such purchase money
21security interest attaches.
22    (b) A security interest is perfected by the delivery to the
23Secretary of State of the existing certificate of title, if
24any, an application for a certificate of title containing the
25name and address of the lienholder and the required fee. The

 

 

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1security interest is perfected as of the time of its creation
2if the delivery to the Secretary of State is completed within
330 days after the creation of the security interest or receipt
4by the new lienholder of the existing certificate of title from
5a prior lienholder or licensed dealer, otherwise as of the time
6of the delivery.
7    (c) If a vehicle is subject to a security interest when
8brought into this State, the validity of the security interest
9is determined by the law of the jurisdiction where the vehicle
10was when the security interest attached, subject to the
11following:
12        1. If the parties understood at the time the security
13    interest attached that the vehicle would be kept in this
14    State and it was brought into this State within 30 days
15    thereafter for purposes other than transportation through
16    this State, the validity of the security interest in this
17    State is determined by the law of this State.
18        2. If the security interest was perfected under the law
19    of the jurisdiction where the vehicle was when the security
20    interest attached, the following rules apply:
21            (A) If the name of the lienholder is shown on an
22        existing certificate of title issued by that
23        jurisdiction, his security interest continues
24        perfected in this State.
25            (B) If the name of the lienholder is not shown on
26        an existing certificate of title issued by that

 

 

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1        jurisdiction, a security interest may be perfected by
2        the lienholder delivering to the Secretary of State the
3        prescribed notice and by payment of the required fee.
4        Such security interest is perfected as of the time of
5        delivery of the prescribed notice and payment of the
6        required fee.
7        3. If the security interest was not perfected under the
8    law of the jurisdiction where the vehicle was when the
9    security interest attached, it may be perfected in this
10    State; in that case perfection dates from the time of
11    perfection in this State.
12        4. A security interest may be perfected under paragraph
13    3 of this subsection either as provided in subsection (b)
14    or by the lienholder delivering to the Secretary of State a
15    notice of security interest in the form the Secretary of
16    State prescribes and the required fee.
17    (d) Except as otherwise provided in Sections 3-116.1,
183-116.2, 3-207, and the Conveyance and Encumbrance of
19Manufactured Homes as Real Property and Severance Act, after a
20certificate of title has been issued for a manufactured home
21and as long as the manufactured home is subject to any security
22interest perfected pursuant to this Section, the Secretary of
23State shall not file an affidavit of affixation, nor cancel the
24Manufacturer's Statement of Origin, nor revoke the certificate
25of title, nor issue a certificate of title under Section 3-106,
26and, in any event, the validity and priority of any security

 

 

09800HB2927ham001- 111 -LRB098 07544 HLH 44335 a

1interest perfected pursuant to this Section shall continue,
2notwithstanding the provision of any other law.
3(Source: P.A. 95-284, eff. 1-1-08.)
 
4    (625 ILCS 5/3-205)  (from Ch. 95 1/2, par. 3-205)
5    Sec. 3-205. Release of security interest.
6    (a) Within 21 days after receiving payment to satisfy a
7security interest in a vehicle for which the certificate of
8title is in the possession of the lienholder, he shall execute
9a release of his security interest, and mail or deliver the
10certificate and release to the next lienholder named therein,
11or, if none, to the owner or any person who delivers to the
12lienholder an authorization from the owner to receive the
13certificate. If the payment is in the form of cash, a cashier's
14check, or a certified check, the number of days is reduced to
1510 business days. If the owner desires a new certificate
16reflecting no lien, the certificate and release from the
17lienholder may be submitted to the Secretary of State, along
18with the prescribed application and required fee, for issuance
19of that new certificate.
20    (b) 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 a prior lienholder, the
23lienholder whose security interest is satisfied shall execute a
24release and deliver the release to the owner or any person who
25delivers to the lienholder an authorization from the owner to

 

 

09800HB2927ham001- 112 -LRB098 07544 HLH 44335 a

1receive it. If the payment is in the form of cash, a cashier's
2check, or a certified check, the number of days is reduced to
310 business days. The lienholder in possession of the
4certificate of title may either deliver the certificate to the
5owner, or the person authorized by him, for delivery to the
6Secretary of State, or, upon receipt of the release, may mail
7or may deliver the certificate and release, along with
8prescribed application and require fee, to the Secretary of
9State, who shall issue a new certificate.
10    (c) In addition to any other penalty, a lienholder who
11fails to execute a release of his or her security interest or
12who fails to mail or deliver the certificate and release within
13the time limit provided in subsection (a) or (b) is liable to
14the person or entity that was supposed to receive the release
15or certificate for $150 plus reasonable attorney fees and court
16costs. An action under this Section may be brought in small
17claims court or in any other appropriate court.
18    (d) The holder of a security interest in or a lien on a
19manufactured home may deliver lien release documents to any
20person to facilitate conveying or encumbering the manufactured
21home. Any person receiving any such documents so delivered
22holds the documents in trust for the security interest holder
23or the lienholder.
24(Source: P.A. 93-621, eff. 12-15-03.)
 
25    (625 ILCS 5/3-207)  (from Ch. 95 1/2, par. 3-207)

 

 

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1    Sec. 3-207. Exclusiveness of procedure.
2    The method provided in this act of perfecting and giving
3notice of security interests subject to this act is exclusive.
4Security interests subject to this act are hereby exempted from
5the provisions of law which otherwise require or relate to the
6recording or filing of instruments creating or evidencing
7security interests in vehicles including chattel mortgages and
8conditional sale agreements, provided, however, that with
9respect to a manufactured home that is or will be affixed to a
10permanent foundation, upon recordation of an affidavit of
11affixation pursuant to the Conveyance and Encumbrance of
12Manufactured Homes as Real Property and Severance Act and
13satisfaction of the requirements of Section 3-116.1 or 3-116.2,
14as applicable, any perfection or termination of a security
15interest with respect to such permanently affixed property
16shall be governed by the laws applicable to real property.
17(Source: P.A. 76-1586.)
 
18    (625 ILCS 5/3-208)  (from Ch. 95 1/2, par. 3-208)
19    Sec. 3-208. Suspension or revocation of certificates.
20    (a) The Secretary of State may suspend or revoke a
21certificate of title, upon notice and reasonable opportunity to
22be heard in accordance with Section 2-118, when authorized by
23any other provision of law or if he finds:
24        1. The certificate of title was fraudulently procured
25    or erroneously issued, or

 

 

09800HB2927ham001- 114 -LRB098 07544 HLH 44335 a

1        2. The vehicle has been scrapped, dismantled or
2    destroyed.
3    Except as provided in Section 3-116.2, the Secretary of
4State shall not suspend or revoke a certificate of title to a
5manufactured home by reason of the fact that, at any time, it
6shall have become affixed in any manner to real property.
7    (b) Suspension or revocation of a certificate of title does
8not, in itself, affect the validity of a security interest
9noted on it.
10    (c) When the Secretary of State suspends or revokes a
11certificate of title, the owner or person in possession of it
12shall, immediately upon receiving notice of the suspension or
13revocation, mail or deliver the certificate to the Secretary of
14State.
15    (d) The Secretary of State may seize and impound any
16certificate of title which has been suspended or revoked.
17(Source: P.A. 76-1586.)
 
18    Section 10-75. The Code of Civil Procedure is amended by
19changing Section 15-1213 as follows:
 
20    (735 ILCS 5/15-1213)  (from Ch. 110, par. 15-1213)
21    Sec. 15-1213. Real Estate. "Real estate" means land or any
22estate or interest in, over or under land (including minerals,
23air rights, structures, fixtures and other things which by
24custom, usage or law pass with a conveyance of land though not

 

 

09800HB2927ham001- 115 -LRB098 07544 HLH 44335 a

1described or mentioned in the contract of sale or instrument of
2conveyance). "Mortgaged real estate" means the real estate
3which is the subject of a mortgage. "Real Estate" includes a
4manufactured home as defined in subdivision (53) of Section
59-102 of the Uniform Commercial Code that is real property as
6defined in the Conveyance and Encumbrance of Manufactured Homes
7as Real Property and Severance Act.
8(Source: P.A. 84-1462.)
 
9    Section 10-80. The Conveyances Act is amended by changing
10Section 38 as follows:
 
11    (765 ILCS 5/38)  (from Ch. 30, par. 37)
12    Sec. 38. The term "real estate," as used in this act, shall
13be construed as co-extensive in meaning with "lands, tenements
14and hereditaments," and as embracing all chattels real. "Real
15estate" and "real property" include a manufactured home as
16defined in subdivision (53) of Section 9-102 of the Uniform
17Commercial Code that is real property as defined in the
18Conveyance and Encumbrance of Manufactured Homes as Real
19Property and Severance Act. This act shall not be construed so
20as to embrace last wills, except as herein expressly provided.
21(Source: P.A. 84-551.)
 
22    Section 10-85. The Residential Real Property Disclosure
23Act is amended by changing Section 5 as follows:
 

 

 

09800HB2927ham001- 116 -LRB098 07544 HLH 44335 a

1    (765 ILCS 77/5)
2    Sec. 5. Definitions. As used in this Act, unless the
3context otherwise requires the following terms have the meaning
4given in this Section.
5    "Residential real property" means real property improved
6with not less than one nor more than 4 residential dwelling
7units; units in residential cooperatives; or, condominium
8units, including the limited common elements allocated to the
9exclusive use thereof that form an integral part of the
10condominium unit. The term includes a manufactured home as
11defined in subdivision (53) of Section 9-102 of the Uniform
12Commercial Code that is real property as defined in the
13Conveyance and Encumbrance of Manufactured Homes as Real
14Property and Severance Act.
15    "Seller" means every person or entity who is an owner,
16beneficiary of a trust, contract purchaser or lessee of a
17ground lease, who has an interest (legal or equitable) in
18residential real property. However, "seller" shall not include
19any person who has both (i) never occupied the residential real
20property and (ii) never had the management responsibility for
21the residential real property nor delegated such
22responsibility for the residential real property to another
23person or entity.
24    "Prospective buyer" means any person or entity negotiating
25or offering to become an owner or lessee of residential real

 

 

09800HB2927ham001- 117 -LRB098 07544 HLH 44335 a

1property by means of a transfer for value to which this Act
2applies.
3(Source: P.A. 90-383, eff. 1-1-98.)
 
4    Section 10-90. The Mobile Home Landlord and Tenant Rights
5Act is amended by changing Section 3 as follows:
 
6    (765 ILCS 745/3)  (from Ch. 80, par. 203)
7    Sec. 3. Definitions. Unless otherwise expressly defined,
8all terms in this Act shall be construed to have their
9ordinarily accepted meanings or such meaning as the context
10therein requires.
11    (a) "Person" means any legal entity, including but not
12limited to, an individual, firm, partnership, association,
13trust, joint stock company, corporation or successor of any of
14the foregoing.
15    (b) "Manufactured home" means a factory-assembled,
16completely integrated structure designed for permanent
17habitation, with a permanent chassis, and so constructed as to
18permit its transport, on wheels temporarily or permanently
19attached to its frame, and is a movable or portable unit that
20is (i) 8 body feet or more in width, (ii) 40 body feet or more
21in length, and (iii) 320 or more square feet, constructed to be
22towed on its own chassis (comprised of frame and wheels) from
23the place of its construction to the location, or subsequent
24locations, at which it is installed and set up according to the

 

 

09800HB2927ham001- 118 -LRB098 07544 HLH 44335 a

1manufacturer's instructions and connected to utilities for
2year-round occupancy for use as a permanent habitation, and
3designed and situated so as to permit its occupancy as a
4dwelling place for one or more persons, and specifically
5includes a "manufactured home" as defined in subdivision (53)
6of Section 9-102 of the Uniform Commercial Code. The term shall
7include units containing parts that may be folded, collapsed,
8or telescoped when being towed and that may be expected to
9provide additional cubic capacity, and that are designed to be
10joined into one integral unit capable of being separated again
11into the components for repeated towing. The term excludes
12campers and recreational vehicles. The words "mobile home" and
13"manufactured home" are synonymous for the purposes of this
14Act.
15    (c) "Mobile Home Park" or "Park" means a tract of land or 2
16contiguous tracts of land that contain sites with the necessary
17utilities for 5 or more mobile homes or manufactured homes. A
18mobile home park may be operated either free of charge or for
19revenue purposes.
20    (d) "Park Owner" means the owner of a mobile home park and
21any person authorized to exercise any aspect of the management
22of the premises, including any person who directly or
23indirectly receives rents and has no obligation to deliver the
24whole of such receipts to another person.
25    (e) "Tenant" means any person who occupies a mobile home
26rental unit for dwelling purposes or a lot on which he parks a

 

 

09800HB2927ham001- 119 -LRB098 07544 HLH 44335 a

1mobile home for an agreed upon consideration.
2    (f) "Rent" means any money or other consideration given for
3the right of use, possession and occupancy of property, be it a
4lot, a mobile home, or both.
5    (g) "Master antenna television service" means any and all
6services provided by or through the facilities of any closed
7circuit coaxial cable communication system, or any microwave or
8similar transmission services other than a community antenna
9television system as defined in Section 11-42-11 of the
10Illinois Municipal Code.
11(Source: P.A. 96-1477, eff. 1-1-11.)
 
12    Section 10-95. The Mortgage Act is amended by adding
13Section 13.1 as follows:
 
14    (765 ILCS 905/13.1 new)
15    Sec. 13.1. Real estate; real property. As used in this Act,
16"real estate" and "real property" include a manufactured home
17as defined in subdivision (53) of Section 9-102 of the Uniform
18Commercial Code that is real property as defined in the
19Conveyance and Encumbrance of Manufactured Homes as Real
20Property and Severance Act.
 
21    Section 10-100. The Joint Tenancy Act is amended by adding
22Section 5 as follows:
 

 

 

09800HB2927ham001- 120 -LRB098 07544 HLH 44335 a

1    (765 ILCS 1005/5 new)
2    Sec. 5. Real estate; real property. As used in this Act,
3"real estate" and "real property" include a manufactured home
4as defined in subdivision (53) of Section 9-102 of the Uniform
5Commercial Code that is real property as defined in the
6Conveyance and Encumbrance of Manufactured Homes as Real
7Property and Severance Act.
 
8    Section 10-105. The Uniform Commercial Code is amended by
9changing Section 9-102 as follows:
 
10    (810 ILCS 5/9-102)  (from Ch. 26, par. 9-102)
11    (Text of Section before amendment by P.A. 97-1034)
12    Sec. 9-102. Definitions and index of definitions.
13    (a) Article 9 definitions. In this Article:
14        (1) "Accession" means goods that are physically united
15    with other goods in such a manner that the identity of the
16    original goods is not lost.
17        (2) "Account", except as used in "account for", means a
18    right to payment of a monetary obligation, whether or not
19    earned by performance, (i) for property that has been or is
20    to be sold, leased, licensed, assigned, or otherwise
21    disposed of, (ii) for services rendered or to be rendered,
22    (iii) for a policy of insurance issued or to be issued,
23    (iv) for a secondary obligation incurred or to be incurred,
24    (v) for energy provided or to be provided, (vi) for the use

 

 

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

 

 

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1        or 35 days later than the date of the record; and
2            (C) identifying the components of the obligations
3        in reasonable detail.
4        (5) "Agricultural lien" means an interest, other than a
5    security interest, in farm products:
6            (A) which secures payment or performance of an
7        obligation for goods or services furnished in
8        connection with a debtor's farming operation;
9            (B) which is created by statute in favor of a
10        person that in the ordinary course of its business
11        furnished goods or services to a debtor in connection
12        with a debtor's farming operation; and
13            (C) whose effectiveness does not depend on the
14        person's possession of the personal property.
15        (6) "As-extracted collateral" means:
16            (A) oil, gas, or other minerals that are subject to
17        a security interest that:
18                (i) is created by a debtor having an interest
19            in the minerals before extraction; and
20                (ii) attaches to the minerals as extracted; or
21            (B) accounts arising out of the sale at the
22        wellhead or minehead of oil, gas, or other minerals in
23        which the debtor had an interest before extraction.
24        (7) "Authenticate" means:
25            (A) to sign; or
26            (B) to execute or otherwise adopt a symbol, or

 

 

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1        encrypt or similarly process a record in whole or in
2        part, with the present intent of the authenticating
3        person to identify the person and adopt or accept a
4        record.
5        (8) "Bank" means an organization that is engaged in the
6    business of banking. The term includes savings banks,
7    savings and loan associations, credit unions, and trust
8    companies.
9        (9) "Cash proceeds" means proceeds that are money,
10    checks, deposit accounts, or the like.
11        (10) "Certificate of title" means a certificate of
12    title with respect to which a statute provides for the
13    security interest in question to be indicated on the
14    certificate as a condition or result of the security
15    interest's obtaining priority over the rights of a lien
16    creditor with respect to the collateral.
17        (11) "Chattel paper" means a record or records that
18    evidence both a monetary obligation and a security interest
19    in specific goods, a security interest in specific goods
20    and software used in the goods, a security interest in
21    specific goods and license of software used in the goods, a
22    lease of specific goods, or a lease of specified goods and
23    a license of software used in the goods. In this paragraph,
24    "monetary obligation" means a monetary obligation secured
25    by the goods or owed under a lease of the goods and
26    includes a monetary obligation with respect to software

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    and satisfying Section 9-502(a) and (b). The term includes
2    the filing of a financing statement covering goods of a
3    transmitting utility which are or are to become fixtures.
4        (41) "Fixtures" means goods that have become so related
5    to particular real property that an interest in them arises
6    under real property law.
7        (42) "General intangible" means any personal property,
8    including things in action, other than accounts, chattel
9    paper, commercial tort claims, deposit accounts,
10    documents, goods, instruments, investment property,
11    letter-of-credit rights, letters of credit, money, and
12    oil, gas, or other minerals before extraction. The term
13    includes payment intangibles and software.
14        (43) "Good faith" means honesty in fact and the
15    observance of reasonable commercial standards of fair
16    dealing.
17        (44) "Goods" means all things that are movable when a
18    security interest attaches. The term includes (i)
19    fixtures, (ii) standing timber that is to be cut and
20    removed under a conveyance or contract for sale, (iii) the
21    unborn young of animals, (iv) crops grown, growing, or to
22    be grown, even if the crops are produced on trees, vines,
23    or bushes, and (v) manufactured homes. The term also
24    includes a computer program embedded in goods and any
25    supporting information provided in connection with a
26    transaction relating to the program if (i) the program is

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            (C) an officer or director of, or a person
2        performing similar functions with respect to, a person
3        described in subparagraph (A);
4            (D) the spouse of an individual described in
5        subparagraph (A), (B), or (C); or
6            (E) an individual who is related by blood or
7        marriage to an individual described in subparagraph
8        (A), (B), (C), or (D) and shares the same home with the
9        individual.
10        (64) "Proceeds", except as used in Section 9-609(b),
11    means the following property:
12            (A) whatever is acquired upon the sale, lease,
13        license, exchange, or other disposition of collateral;
14            (B) whatever is collected on, or distributed on
15        account of, collateral;
16            (C) rights arising out of collateral;
17            (D) to the extent of the value of collateral,
18        claims arising out of the loss, nonconformity, or
19        interference with the use of, defects or infringement
20        of rights in, or damage to, the collateral; or
21            (E) to the extent of the value of collateral and to
22        the extent payable to the debtor or the secured party,
23        insurance payable by reason of the loss or
24        nonconformity of, defects or infringement of rights
25        in, or damage to, the collateral.
26        (65) "Promissory note" means an instrument that

 

 

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1    evidences a promise to pay a monetary obligation, does not
2    evidence an order to pay, and does not contain an
3    acknowledgment by a bank that the bank has received for
4    deposit a sum of money or funds.
5        (66) "Proposal" means a record authenticated by a
6    secured party which includes the terms on which the secured
7    party is willing to accept collateral in full or partial
8    satisfaction of the obligation it secures pursuant to
9    Sections 9-620, 9-621, and 9-622.
10        (67) "Public-finance transaction" means a secured
11    transaction in connection with which:
12            (A) debt securities are issued;
13            (B) all or a portion of the securities issued have
14        an initial stated maturity of at least 20 years; and
15            (C) the debtor, obligor, secured party, account
16        debtor or other person obligated on collateral,
17        assignor or assignee of a secured obligation, or
18        assignor or assignee of a security interest is a State
19        or a governmental unit of a State.
20        (68) "Pursuant to commitment", with respect to an
21    advance made or other value given by a secured party, means
22    pursuant to the secured party's obligation, whether or not
23    a subsequent event of default or other event not within the
24    secured party's control has relieved or may relieve the
25    secured party from its obligation.
26        (69) "Record", except as used in "for record", "of

 

 

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1    record", "record or legal title", and "record owner", means
2    information that is inscribed on a tangible medium or which
3    is stored in an electronic or other medium and is
4    retrievable in perceivable form.
5        (70) "Registered organization" means an organization
6    organized solely under the law of a single State or the
7    United States and as to which the State or the United
8    States must maintain a public record showing the
9    organization to have been organized.
10        (71) "Secondary obligor" means an obligor to the extent
11    that:
12            (A) the obligor's obligation is secondary; or
13            (B) the obligor has a right of recourse with
14        respect to an obligation secured by collateral against
15        the debtor, another obligor, or property of either.
16        (72) "Secured party" means:
17            (A) a person in whose favor a security interest is
18        created or provided for under a security agreement,
19        whether or not any obligation to be secured is
20        outstanding;
21            (B) a person that holds an agricultural lien;
22            (C) a consignor;
23            (D) a person to which accounts, chattel paper,
24        payment intangibles, or promissory notes have been
25        sold;
26            (E) a trustee, indenture trustee, agent,

 

 

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

 

 

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

 

 

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1apply to this Article:
2    "Applicant". Section 5-102.
3    "Beneficiary". Section 5-102.
4    "Broker". Section 8-102.
5    "Certificated security". Section 8-102.
6    "Check". Section 3-104.
7    "Clearing corporation". Section 8-102.
8    "Contract for sale". Section 2-106.
9    "Customer". Section 4-104.
10    "Entitlement holder". Section 8-102.
11    "Financial asset". Section 8-102.
12    "Holder in due course". Section 3-302.
13    "Issuer" (with respect to a letter of credit or
14letter-of-credit right). Section 5-102.
15    "Issuer" (with respect to a security). Section 8-201.
16    "Issuer" (with respect to documents of title). Section
177-102.
18    "Lease". Section 2A-103.
19    "Lease agreement". Section 2A-103.
20    "Lease contract". Section 2A-103.
21    "Leasehold interest". Section 2A-103.
22    "Lessee". Section 2A-103.
23    "Lessee in ordinary course of business". Section 2A-103.
24    "Lessor". Section 2A-103.
25    "Lessor's residual interest". Section 2A-103.
26    "Letter of credit". Section 5-102.

 

 

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1    "Merchant". Section 2-104.
2    "Negotiable instrument". Section 3-104.
3    "Nominated person". Section 5-102.
4    "Note". Section 3-104.
5    "Proceeds of a letter of credit". Section 5-114.
6    "Prove". Section 3-103.
7    "Sale". Section 2-106.
8    "Securities account". Section 8-501.
9    "Securities intermediary". Section 8-102.
10    "Security". Section 8-102.
11    "Security certificate". Section 8-102.
12    "Security entitlement". Section 8-102.
13    "Uncertificated security". Section 8-102.
14    (c) Article 1 definitions and principles. Article 1
15contains general definitions and principles of construction
16and interpretation applicable throughout this Article.
17(Source: P.A. 95-895, eff. 1-1-09; 96-1477, eff. 1-1-11.)
 
18    (Text of Section after amendment by P.A. 97-1034)
19    Sec. 9-102. Definitions and index of definitions.
20    (a) Article 9 definitions. In this Article:
21        (1) "Accession" means goods that are physically united
22    with other goods in such a manner that the identity of the
23    original goods is not lost.
24        (2) "Account", except as used in "account for", means a
25    right to payment of a monetary obligation, whether or not

 

 

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1    earned by performance, (i) for property that has been or is
2    to be sold, leased, licensed, assigned, or otherwise
3    disposed of, (ii) for services rendered or to be rendered,
4    (iii) for a policy of insurance issued or to be issued,
5    (iv) for a secondary obligation incurred or to be incurred,
6    (v) for energy provided or to be provided, (vi) for the use
7    or hire of a vessel under a charter or other contract,
8    (vii) arising out of the use of a credit or charge card or
9    information contained on or for use with the card, or
10    (viii) as winnings in a lottery or other game of chance
11    operated or sponsored by a State, governmental unit of a
12    State, or person licensed or authorized to operate the game
13    by a State or governmental unit of a State. The term
14    includes health-care-insurance receivables. The term does
15    not include (i) rights to payment evidenced by chattel
16    paper or an instrument, (ii) commercial tort claims, (iii)
17    deposit accounts, (iv) investment property, (v)
18    letter-of-credit rights or letters of credit, or (vi)
19    rights to payment for money or funds advanced or sold,
20    other than rights arising out of the use of a credit or
21    charge card or information contained on or for use with the
22    card.
23        (3) "Account debtor" means a person obligated on an
24    account, chattel paper, or general intangible. The term
25    does not include persons obligated to pay a negotiable
26    instrument, even if the instrument constitutes part of

 

 

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1    chattel paper.
2        (4) "Accounting", except as used in "accounting for",
3    means a record:
4            (A) authenticated by a secured party;
5            (B) indicating the aggregate unpaid secured
6        obligations as of a date not more than 35 days earlier
7        or 35 days later than the date of the record; and
8            (C) identifying the components of the obligations
9        in reasonable detail.
10        (5) "Agricultural lien" means an interest, other than a
11    security interest, in farm products:
12            (A) which secures payment or performance of an
13        obligation for goods or services furnished in
14        connection with a debtor's farming operation;
15            (B) which is created by statute in favor of a
16        person that in the ordinary course of its business
17        furnished goods or services to a debtor in connection
18        with a debtor's farming operation; and
19            (C) whose effectiveness does not depend on the
20        person's possession of the personal property.
21        (6) "As-extracted collateral" means:
22            (A) oil, gas, or other minerals that are subject to
23        a security interest that:
24                (i) is created by a debtor having an interest
25            in the minerals before extraction; and
26                (ii) attaches to the minerals as extracted; or

 

 

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1            (B) accounts arising out of the sale at the
2        wellhead or minehead of oil, gas, or other minerals in
3        which the debtor had an interest before extraction.
4        (7) "Authenticate" means:
5            (A) to sign; or
6            (B) with present intent to adopt or accept a
7        record, to attach to or logically associate with the
8        record an electronic sound, symbol, or process.
9        (8) "Bank" means an organization that is engaged in the
10    business of banking. The term includes savings banks,
11    savings and loan associations, credit unions, and trust
12    companies.
13        (9) "Cash proceeds" means proceeds that are money,
14    checks, deposit accounts, or the like.
15        (10) "Certificate of title" means a certificate of
16    title with respect to which a statute provides for the
17    security interest in question to be indicated on the
18    certificate as a condition or result of the security
19    interest's obtaining priority over the rights of a lien
20    creditor with respect to the collateral. The term includes
21    another record maintained as an alternative to a
22    certificate of title by the governmental unit that issues
23    certificates of title if a statute permits the security
24    interest in question to be indicated on the record as a
25    condition or result of the security interest's obtaining
26    priority over the rights of a lien creditor with respect to

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    interest secures the obligation, and (iii) the collateral
2    is held or acquired primarily for personal, family, or
3    household purposes. The term includes consumer-goods
4    transactions.
5        (27) "Continuation statement" means an amendment of a
6    financing statement which:
7            (A) identifies, by its file number, the initial
8        financing statement to which it relates; and
9            (B) indicates that it is a continuation statement
10        for, or that it is filed to continue the effectiveness
11        of, the identified financing statement.
12        (28) "Debtor" means:
13            (A) a person having an interest, other than a
14        security interest or other lien, in the collateral,
15        whether or not the person is an obligor;
16            (B) a seller of accounts, chattel paper, payment
17        intangibles, or promissory notes; or
18            (C) a consignee.
19        (29) "Deposit account" means a demand, time, savings,
20    passbook, nonnegotiable certificates of deposit,
21    uncertificated certificates of deposit, nontransferrable
22    certificates of deposit, or similar account maintained
23    with a bank. The term does not include investment property
24    or accounts evidenced by an instrument.
25        (30) "Document" means a document of title or a receipt
26    of the type described in Section 7-201(b).

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    permit its occupancy as a dwelling place for one or more
2    persons. The term shall include units containing parts that
3    may be folded, collapsed, or telescoped when being towed
4    and that may be expected to provide additional cubic
5    capacity, and that are designed to be joined into one
6    integral unit capable of being separated again into the
7    components for repeated towing. The term shall exclude
8    campers and recreational vehicles.
9        (54) "Manufactured-home transaction" means a secured
10    transaction:
11            (A) that creates a purchase-money security
12        interest in a manufactured home, other than a
13        manufactured home held as inventory; or
14            (B) in which a manufactured home, other than a
15        manufactured home held as inventory, is the primary
16        collateral.
17        (55) "Mortgage" means a consensual interest in real
18    property, including fixtures, which secures payment or
19    performance of an obligation.
20        (56) "New debtor" means a person that becomes bound as
21    debtor under Section 9-203(d) by a security agreement
22    previously entered into by another person.
23        (57) "New value" means (i) money, (ii) money's worth in
24    property, services, or new credit, or (iii) release by a
25    transferee of an interest in property previously
26    transferred to the transferee. The term does not include an

 

 

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

 

 

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

 

 

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

 

 

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1        debtor or other person obligated on collateral,
2        assignor or assignee of a secured obligation, or
3        assignor or assignee of a security interest is a State
4        or a governmental unit of a State.
5        (68) "Public organic record" means a record that is
6    available to the public for inspection and is:
7            (A) a record consisting of the record initially
8        filed with or issued by a State or the United States to
9        form or organize an organization and any record filed
10        with or issued by the State or the United States which
11        amends or restates the initial record;
12            (B) an organic record of a business trust
13        consisting of the record initially filed with a State
14        and any record filed with the State which amends or
15        restates the initial record, if a statute of the State
16        governing business trusts requires that the record be
17        filed with the State; or
18            (C) a record consisting of legislation enacted by
19        the legislature of a State or the Congress of the
20        United States which forms or organizes an
21        organization, any record amending the legislation, and
22        any record filed with or issued by the State or the
23        United States which amends or restates the name of the
24        organization.
25        (69) "Pursuant to commitment", with respect to an
26    advance made or other value given by a secured party, means

 

 

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1    pursuant to the secured party's obligation, whether or not
2    a subsequent event of default or other event not within the
3    secured party's control has relieved or may relieve the
4    secured party from its obligation.
5        (70) "Record", except as used in "for record", "of
6    record", "record or legal title", and "record owner", means
7    information that is inscribed on a tangible medium or which
8    is stored in an electronic or other medium and is
9    retrievable in perceivable form.
10        (71) "Registered organization" means an organization
11    formed or organized solely under the law of a single State
12    or the United States by the filing of a public organic
13    record with, the issuance of a public organic record by, or
14    the enactment of legislation by the State or the United
15    States. The term includes a business trust that is formed
16    or organized under the law of a single State if a statute
17    of the State governing business trusts requires that the
18    business trust's organic record be filed with the State.
19        (72) "Secondary obligor" means an obligor to the extent
20    that:
21            (A) the obligor's obligation is secondary; or
22            (B) the obligor has a right of recourse with
23        respect to an obligation secured by collateral against
24        the debtor, another obligor, or property of either.
25        (73) "Secured party" means:
26            (A) a person in whose favor a security interest is

 

 

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

 

 

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1        received if properly sent under subparagraph (A).
2        (76) "Software" means a computer program and any
3    supporting information provided in connection with a
4    transaction relating to the program. The term does not
5    include a computer program that is included in the
6    definition of goods.
7        (77) "State" means a State of the United States, the
8    District of Columbia, Puerto Rico, the United States Virgin
9    Islands, or any territory or insular possession subject to
10    the jurisdiction of the United States.
11        (78) "Supporting obligation" means a letter-of-credit
12    right or secondary obligation that supports the payment or
13    performance of an account, chattel paper, a document, a
14    general intangible, an instrument, or investment property.
15        (79) "Tangible chattel paper" means chattel paper
16    evidenced by a record or records consisting of information
17    that is inscribed on a tangible medium.
18        (80) "Termination statement" means an amendment of a
19    financing statement which:
20            (A) identifies, by its file number, the initial
21        financing statement to which it relates; and
22            (B) indicates either that it is a termination
23        statement or that the identified financing statement
24        is no longer effective.
25        (81) "Transmitting utility" means a person primarily
26    engaged in the business of:

 

 

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1            (A) operating a railroad, subway, street railway,
2        or trolley bus;
3            (B) transmitting communications electrically,
4        electromagnetically, or by light;
5            (C) transmitting goods by pipeline or sewer; or
6            (D) transmitting or producing and transmitting
7        electricity, steam, gas, or water.
8    (b) Definitions in other Articles. "Control" as provided in
9Section 7-106 and the following definitions in other Articles
10apply to this Article:
11    "Applicant". Section 5-102.
12    "Beneficiary". Section 5-102.
13    "Broker". Section 8-102.
14    "Certificated security". Section 8-102.
15    "Check". Section 3-104.
16    "Clearing corporation". Section 8-102.
17    "Contract for sale". Section 2-106.
18    "Customer". Section 4-104.
19    "Entitlement holder". Section 8-102.
20    "Financial asset". Section 8-102.
21    "Holder in due course". Section 3-302.
22    "Issuer" (with respect to a letter of credit or
23letter-of-credit right). Section 5-102.
24    "Issuer" (with respect to a security). Section 8-201.
25    "Issuer" (with respect to documents of title). Section
267-102.

 

 

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1    "Lease". Section 2A-103.
2    "Lease agreement". Section 2A-103.
3    "Lease contract". Section 2A-103.
4    "Leasehold interest". Section 2A-103.
5    "Lessee". Section 2A-103.
6    "Lessee in ordinary course of business". Section 2A-103.
7    "Lessor". Section 2A-103.
8    "Lessor's residual interest". Section 2A-103.
9    "Letter of credit". Section 5-102.
10    "Merchant". Section 2-104.
11    "Negotiable instrument". Section 3-104.
12    "Nominated person". Section 5-102.
13    "Note". Section 3-104.
14    "Proceeds of a letter of credit". Section 5-114.
15    "Prove". Section 3-103.
16    "Sale". Section 2-106.
17    "Securities account". Section 8-501.
18    "Securities intermediary". Section 8-102.
19    "Security". Section 8-102.
20    "Security certificate". Section 8-102.
21    "Security entitlement". Section 8-102.
22    "Uncertificated security". Section 8-102.
23    (c) Article 1 definitions and principles. Article 1
24contains general definitions and principles of construction
25and interpretation applicable throughout this Article.
26(Source: P.A. 96-1477, eff. 1-1-11; 97-1034, eff. 7-1-13.)
 

 

 

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1    Section 10-110. The Interest Act is amended by changing
2Sections 4, 4.2, and 4a as follows:
 
3    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
4    Sec. 4. General interest rate.
5    (1) Except as otherwise provided in Section 4.05, in all
6written contracts it shall be lawful for the parties to
7stipulate or agree that 9% per annum, or any less sum of
8interest, shall be taken and paid upon every $100 of money
9loaned or in any manner due and owing from any person to any
10other person or corporation in this state, and after that rate
11for a greater or less sum, or for a longer or shorter time,
12except as herein provided.
13    The maximum rate of interest that may lawfully be
14contracted for is determined by the law applicable thereto at
15the time the contract is made. Any provision in any contract,
16whether made before or after July 1, 1969, which provides for
17or purports to authorize, contingent upon a change in the
18Illinois law after the contract is made, any rate of interest
19greater than the maximum lawful rate at the time the contract
20is made, is void.
21    It is lawful for a state bank or a branch of an
22out-of-state bank, as those terms are defined in Section 2 of
23the Illinois Banking Act, to receive or to contract to receive
24and collect interest and charges at any rate or rates agreed

 

 

09800HB2927ham001- 169 -LRB098 07544 HLH 44335 a

1upon by the bank or branch and the borrower. It is lawful for a
2savings bank chartered under the Savings Bank Act or a savings
3association chartered under the Illinois Savings and Loan Act
4of 1985 to receive or contract to receive and collect interest
5and charges at any rate agreed upon by the savings bank or
6savings association and the borrower.
7    It is lawful to receive or to contract to receive and
8collect interest and charges as authorized by this Act and as
9authorized by the Consumer Installment Loan Act and by the
10"Consumer Finance Act", approved July 10, 1935, as now or
11hereafter amended, or by the Payday Loan Reform Act. It is
12lawful to charge, contract for, and receive any rate or amount
13of interest or compensation with respect to the following
14transactions:
15        (a) Any loan made to a corporation;
16        (b) Advances of money, repayable on demand, to an
17    amount not less than $5,000, which are made upon warehouse
18    receipts, bills of lading, certificates of stock,
19    certificates of deposit, bills of exchange, bonds or other
20    negotiable instruments pledged as collateral security for
21    such repayment, if evidenced by a writing;
22        (c) Any credit transaction between a merchandise
23    wholesaler and retailer; any business loan to a business
24    association or copartnership or to a person owning and
25    operating a business as sole proprietor or to any persons
26    owning and operating a business as joint venturers, joint

 

 

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1    tenants or tenants in common, or to any limited
2    partnership, or to any trustee owning and operating a
3    business or whose beneficiaries own and operate a business,
4    except that any loan which is secured (1) by an assignment
5    of an individual obligor's salary, wages, commissions or
6    other compensation for services, or (2) by his household
7    furniture or other goods used for his personal, family or
8    household purposes shall be deemed not to be a loan within
9    the meaning of this subsection; and provided further that a
10    loan which otherwise qualifies as a business loan within
11    the meaning of this subsection shall not be deemed as not
12    so qualifying because of the inclusion, with other security
13    consisting of business assets of any such obligor, of real
14    estate occupied by an individual obligor solely as his
15    residence. The term "business" shall be deemed to mean a
16    commercial, agricultural or industrial enterprise which is
17    carried on for the purpose of investment or profit, but
18    shall not be deemed to mean the ownership or maintenance of
19    real estate occupied by an individual obligor solely as his
20    residence;
21        (d) Any loan made in accordance with the provisions of
22    Subchapter I of Chapter 13 of Title 12 of the United States
23    Code, which is designated as "Housing Renovation and
24    Modernization";
25        (e) Any mortgage loan insured or upon which a
26    commitment to insure has been issued under the provisions

 

 

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1    of the National Housing Act, Chapter 13 of Title 12 of the
2    United States Code;
3        (f) Any mortgage loan guaranteed or upon which a
4    commitment to guaranty has been issued under the provisions
5    of the Veterans' Benefits Act, Subchapter II of Chapter 37
6    of Title 38 of the United States Code;
7        (g) Interest charged by a broker or dealer registered
8    under the Securities Exchange Act of 1934, as amended, or
9    registered under the Illinois Securities Law of 1953,
10    approved July 13, 1953, as now or hereafter amended, on a
11    debit balance in an account for a customer if such debit
12    balance is payable at will without penalty and is secured
13    by securities as defined in Uniform Commercial
14    Code-Investment Securities;
15        (h) Any loan made by a participating bank as part of
16    any loan guarantee program which provides for loans and for
17    the refinancing of such loans to medical students, interns
18    and residents and which are guaranteed by the American
19    Medical Association Education and Research Foundation;
20        (i) Any loan made, guaranteed, or insured in accordance
21    with the provisions of the Housing Act of 1949, Subchapter
22    III of Chapter 8A of Title 42 of the United States Code and
23    the Consolidated Farm and Rural Development Act,
24    Subchapters I, II, and III of Chapter 50 of Title 7 of the
25    United States Code;
26        (j) Any loan by an employee pension benefit plan, as

 

 

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1    defined in Section 3 (2) of the Employee Retirement Income
2    Security Act of 1974 (29 U.S.C.A. Sec. 1002), to an
3    individual participating in such plan, provided that such
4    loan satisfies the prohibited transaction exemption
5    requirements of Section 408 (b) (1) (29 U.S.C.A. Sec. 1108
6    (b) (1)) or Section 2003 (a) (26 U.S.C.A. Sec. 4975 (d)
7    (1)) of the Employee Retirement Income Security Act of
8    1974;
9        (k) Written contracts, agreements or bonds for deed
10    providing for installment purchase of real estate,
11    including a manufactured home as defined in subdivision
12    (53) of Section 9-102 of the Uniform Commercial Code that
13    is real property as defined in the Conveyance and
14    Encumbrance of Manufactured Homes as Real Property and
15    Severance Act;
16        (1) Loans secured by a mortgage on real estate,
17    including a manufactured home as defined in subdivision
18    (53) of Section 9-102 of the Uniform Commercial Code that
19    is real property as defined in the Conveyance and
20    Encumbrance of Manufactured Homes as Real Property and
21    Severance Act;
22        (m) Loans made by a sole proprietorship, partnership,
23    or corporation to an employee or to a person who has been
24    offered employment by such sole proprietorship,
25    partnership, or corporation made for the sole purpose of
26    transferring an employee or person who has been offered

 

 

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1    employment to another office maintained and operated by the
2    same sole proprietorship, partnership, or corporation;
3        (n) Loans to or for the benefit of students made by an
4    institution of higher education.
5    (2) Except for loans described in subparagraph (a), (c),
6(d), (e), (f) or (i) of subsection (1) of this Section, and
7except to the extent permitted by the applicable statute for
8loans made pursuant to Section 4a or pursuant to the Consumer
9Installment Loan Act:
10        (a) Whenever the rate of interest exceeds 8% per annum
11    on any written contract, agreement or bond for deed
12    providing for the installment purchase of residential real
13    estate, or on any loan secured by a mortgage on residential
14    real estate, it shall be unlawful to provide for a
15    prepayment penalty or other charge for prepayment.
16        (b) No agreement, note or other instrument evidencing a
17    loan secured by a mortgage on residential real estate, or
18    written contract, agreement or bond for deed providing for
19    the installment purchase of residential real estate, may
20    provide for any change in the contract rate of interest
21    during the term thereof. However, if the Congress of the
22    United States or any federal agency authorizes any class of
23    lender to enter, within limitations, into mortgage
24    contracts or written contracts, agreements or bonds for
25    deed in which the rate of interest may be changed during
26    the term of the contract, any person, firm, corporation or

 

 

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1    other entity not otherwise prohibited from entering into
2    mortgage contracts or written contracts, agreements or
3    bonds for deed in Illinois may enter into mortgage
4    contracts or written contracts, agreements or bonds for
5    deed in which the rate of interest may be changed during
6    the term of the contract, within the same limitations.
7    (3) In any contract or loan which is secured by a mortgage,
8deed of trust, or conveyance in the nature of a mortgage, on
9residential real estate, the interest which is computed,
10calculated, charged, or collected pursuant to such contract or
11loan, or pursuant to any regulation or rule promulgated
12pursuant to this Act, may not be computed, calculated, charged
13or collected for any period of time occurring after the date on
14which the total indebtedness, with the exception of late
15payment penalties, is paid in full.
16    (4) For purposes of this Section, a prepayment shall mean
17the payment of the total indebtedness, with the exception of
18late payment penalties if incurred or charged, on any date
19before the date specified in the contract or loan agreement on
20which the total indebtedness shall be paid in full, or before
21the date on which all payments, if timely made, shall have been
22made. In the event of a prepayment of the indebtedness which is
23made on a date after the date on which interest on the
24indebtedness was last computed, calculated, charged, or
25collected but before the next date on which interest on the
26indebtedness was to be calculated, computed, charged, or

 

 

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1collected, the lender may calculate, charge and collect
2interest on the indebtedness for the period which elapsed
3between the date on which the prepayment is made and the date
4on which interest on the indebtedness was last computed,
5calculated, charged or collected at a rate equal to 1/360 of
6the annual rate for each day which so elapsed, which rate shall
7be applied to the indebtedness outstanding as of the date of
8prepayment. The lender shall refund to the borrower any
9interest charged or collected which exceeds that which the
10lender may charge or collect pursuant to the preceding
11sentence. The provisions of this amendatory Act of 1985 shall
12apply only to contracts or loans entered into on or after the
13effective date of this amendatory Act, but shall not apply to
14contracts or loans entered into on or after that date that are
15subject to Section 4a of this Act, the Consumer Installment
16Loan Act, the Payday Loan Reform Act, or the Retail Installment
17Sales Act, or that provide for the refund of precomputed
18interest on prepayment in the manner provided by such Act.
19    (5) For purposes of items (a) and (c) of subsection (1) of
20this Section, a rate or amount of interest may be lawfully
21computed when applying the ratio of the annual interest rate
22over a year based on 360 days. The provisions of this
23amendatory Act of the 96th General Assembly are declarative of
24existing law.
25    (6) For purposes of this Section, "real estate" and "real
26property" include a manufactured home, as defined in

 

 

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1subdivision (53) of Section 9-102 of the Uniform Commercial
2Code that is real property as defined in the Conveyance and
3Encumbrance of Manufactured Homes as Real Property and
4Severance Act.
5(Source: P.A. 95-331, eff. 8-21-07; 96-1421, eff. 8-3-10.)
 
6    (815 ILCS 205/4.2)  (from Ch. 17, par. 6407)
7    Sec. 4.2. Revolving credit; billing statements;
8disclosures. On a revolving credit which complies with
9subparagraphs (a), (b), (c), (d) and (e) of this Section 4.2,
10it is lawful for any bank that has its main office or, after
11May 31, 1997, a branch in this State, a state or federal
12savings and loan association with its main office in this
13State, a state or federal credit union with its main office in
14this State, or a lender licensed under the Consumer Finance
15Act, the Consumer Installment Loan Act or the Sales Finance
16Agency Act, as such Acts are now and hereafter amended, to
17receive or contract to receive and collect interest in any
18amount or at any rate agreed upon by the parties to the
19revolving credit arrangement. It is lawful for any other lender
20to receive or contract to receive and collect interest in an
21amount not in excess of 1 1/2% per month of either the average
22daily unpaid balance of the principal of the debt during the
23billing cycle, or of the unpaid balance of the debt on
24approximately the same day of the billing cycle. If a lender
25under a revolving credit arrangement notifies the debtor at

 

 

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1least 30 days in advance of any lawful increase in the amount
2or rate of interest to be charged under the revolving credit
3arrangement, and the debtor, after the effective date of such
4notice, incurs new debt pursuant to the revolving credit
5arrangement, the increased interest amount or rate may be
6applied only to any such new debt incurred under the revolving
7credit arrangement. For purposes of determining the balances to
8which the increased interest rate applies, all payments and
9other credits may be deemed to be applied to the balance
10existing prior to the change in rate until that balance is paid
11in full. The face amount of the drafts, items, orders for the
12payment of money, evidences of debt, or similar written
13instruments received by the lender in connection with the
14revolving credit, less the amounts applicable to principal from
15time to time paid thereon by the debtor, are the unpaid balance
16of the debt upon which the interest is computed. If the billing
17cycle is not monthly, the maximum interest rate for the billing
18cycle is the percentage which bears the same relation to the
19monthly percentage provided for in the preceding sentence as
20the number of days in the billing cycle bears to 30. For the
21purposes of the foregoing computation, a "month" is deemed to
22be any time of 30 consecutive days. In addition to the interest
23charge provided for, it is lawful to receive, contract for or
24collect a charge not exceeding 25 cents for each transaction in
25which a loan or advance is made under the revolving credit or
26in lieu of this additional charge an annual fee for the

 

 

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1privilege of receiving and using the revolving credit in an
2amount not exceeding $20. In addition, with respect to
3revolving credit secured by an interest in real estate,
4including a manufactured home as defined in subdivision (53) of
5Section 9-102 of the Uniform Commercial Code that is real
6property as defined in the Conveyance and Encumbrance of
7Manufactured Homes as Real Property and Severance Act, it is
8also lawful to receive, contract for or collect fees lawfully
9paid to any public officer or agency to record, file or release
10the security, and costs and disbursements actually incurred for
11any title insurance, title examination, abstract of title,
12survey, appraisal, escrow fees, and fees paid to a trustee in
13connection with a trust deed.
14    (a) At or before the date a bill or statement is first
15rendered to the debtor under a revolving credit arrangement,
16the lender must mail or deliver to the debtor a written
17description of the conditions under which a charge for interest
18may be made and the method, including the rate, of computing
19these interest charges. The rate of interest must be expressed
20as an annual percentage rate.
21    (b) If during any billing cycle any debit or credit entry
22is made to a debtor's revolving credit account, and if at the
23end of that billing cycle there is an unpaid balance owing to
24the lender from the debtor, the lender must give to the debtor
25the following information within a reasonable time after the
26end of the billing cycle:

 

 

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1        (i) the unpaid balance at the beginning of the billing
2    cycle;
3        (ii) the date and amount of all loans or advances made
4    during the billing cycle, which information may be supplied
5    by enclosing a copy of the drafts, items, orders for the
6    payment of money, evidences of debt or similar written
7    instruments presented to the lender during the billing
8    cycle;
9        (iii) the payments by the debtor to the lender and any
10    other credits to the debtor during the billing cycle;
11        (iv) the amount of interest and other charges, if any,
12    charged to the debtor's account during the billing cycle;
13        (v) the amount which must be currently paid by the
14    debtor and the date on which that amount must be paid in
15    order to avoid delinquency;
16        (vi) the total amount remaining unpaid at the end of
17    the billing cycle and the right of the debtor to prepay
18    that amount in full without penalty; and
19        (vii) information required by (iv), (v) and (vi) must
20    be set forth in type of equal size and equal
21    conspicuousness.
22    (c) The revolving credit arrangement may provide for the
23payment by the debtor and receipt by the lender of all costs
24and disbursements, including reasonable attorney's fees,
25incurred by the lender in legal proceedings to collect or
26enforce the debt in the event of delinquency by the debtor or

 

 

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1in the event of a breach of any obligation of the debtor under
2the arrangement.
3    (d) The lender under a revolving credit arrangement may
4provide credit life insurance or credit accident and health
5insurance, or both, with respect to the debtor and may charge
6the debtor therefor. Credit life insurance and credit accident
7and health insurance, and any charge therefor made to the
8debtor, shall comply with Article IX 1/2 of the Illinois
9Insurance Code, as now or hereafter amended, and all lawful
10requirements of the Director of Insurance related thereto. This
11insurance is in force with respect to each loan or advance made
12under a revolving credit arrangement as soon as the loan or
13advance is made. The purchase of this insurance from an agent,
14broker or insurer specified by the lender may not be a
15condition precedent to the revolving credit arrangement or to
16the making of any loan or advance thereunder.
17    (e) Whenever interest is contracted for or received under
18this Section, no amount in addition to the charges authorized
19by this Act may be directly or indirectly charged, contracted
20for or received whether as interest, service charges, costs of
21investigations or enforcements or otherwise.
22    (f) The lender under a revolving credit arrangement must
23compute at year end the total amount charged to the debtor's
24account during the year, including service charges, finance
25charges, late charges and any other charges authorized by this
26Act, and upon request must furnish such information to the

 

 

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1debtor within 30 days after the end of the year, or if the
2account has been terminated during such year, may give such
3requested information within 30 days after such termination.
4The lender shall annually inform the debtor of his right to
5obtain such information.
6    (g) A lender who complies with the federal Truth in Lending
7Act, amendments thereto, and any regulations issued or which
8may be issued thereunder, shall be deemed to be in compliance
9with the provisions of subparagraphs (a) and (b) of this
10Section.
11    (h) Anything in this Section 4.2 to the contrary
12notwithstanding, if the Congress of the United States or any
13federal agency authorizes any class of lenders to enter, within
14limitations, into a revolving credit arrangement secured by a
15mortgage or deed of trust on residential real property, any
16person, firm, corporation or other entity, not otherwise
17prohibited by the Congress of the United States or any federal
18agency from entering into revolving credit arrangements
19secured by a mortgage or deed of trust on residential real
20property, may enter into such arrangements within the same
21limitations.
22(Source: P.A. 89-208, eff. 9-29-95.)
 
23    (815 ILCS 205/4a)  (from Ch. 17, par. 6410)
24    Sec. 4a. Installment loan rate.
25    (a) On money loaned to or in any manner owing from any

 

 

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1person, whether secured or unsecured, except where the money
2loaned or in any manner owing is directly or indirectly for the
3purchase price of real estate or an interest therein and is
4secured by a lien on or retention of title to that real estate
5or interest therein, to an amount not more than $25,000
6(excluding interest) which is evidenced by a written instrument
7providing for the payment thereof in 2 or more periodic
8installments over a period of not more than 181 months from the
9date of the execution of the written instrument, it is lawful
10to receive or to contract to receive and collect either:
11        (i) interest in an amount equivalent to interest
12    computed at a rate not exceeding 9% per year on the entire
13    principal amount of the money loaned or in any manner owing
14    for the period from the date of the making of the loan or
15    the incurring of the obligation for the amount owing
16    evidenced by the written instrument until the date of the
17    maturity of the last installment thereof, and to add that
18    amount to the principal, except that there shall be no
19    limit on the rate of interest which may be received or
20    contracted to be received and collected by (1) any bank
21    that has its main office or, after May 31, 1997, a branch
22    in this State; (2) a savings and loan association chartered
23    under the Illinois Savings and Loan Act of 1985, a savings
24    bank chartered under the Savings Bank Act, or a federal
25    savings and loan association established under the laws of
26    the United States and having its main office in this State;

 

 

09800HB2927ham001- 183 -LRB098 07544 HLH 44335 a

1    or (3) any lender licensed under either the Consumer
2    Finance Act or the Consumer Installment Loan Act, but in
3    any case in which interest is received, contracted for or
4    collected on the basis of this clause (i), the debtor may
5    satisfy in full at any time before maturity the debt
6    evidenced by the written instrument, and in so satisfying
7    must receive a refund credit against the total amount of
8    interest added to the principal computed in the manner
9    provided under Section 15(f)(3) of the Consumer
10    Installment Loan Act for refunds or credits of applicable
11    interest on payment in full of precomputed loans before the
12    final installment due date; or
13        (ii) interest accrued on the principal balance from
14    time to time remaining unpaid, from the date of making of
15    the loan or the incurring of the obligation to the date of
16    the payment of the debt in full, at a rate not exceeding
17    the annual percentage rate equivalent of the rate permitted
18    to be charged under clause (i) above, but in any such case
19    the debtor may, provided that the debtor shall have paid in
20    full all interest and other charges accrued to the date of
21    such prepayment, prepay the principal balance in full or in
22    part at any time, and interest shall, upon any such
23    prepayment, cease to accrue on the principal amount which
24    has been prepaid.
25    (b) Whenever the principal amount of an installment loan is
26$300 or more and the repayment period is 6 months or more, a

 

 

09800HB2927ham001- 184 -LRB098 07544 HLH 44335 a

1minimum charge of $15 may be collected instead of interest, but
2only one minimum charge may be collected from the same person
3during one year. When the principal amount of the loan
4(excluding interest) is $800 or less, the lender or creditor
5may contract for and receive a service charge not to exceed $5
6in addition to interest; and that service charge may be
7collected when the loan is made, but only one service charge
8may be contracted for, received, or collected from the same
9person during one year.
10    (c) Credit life insurance and credit accident and health
11insurance, and any charge therefor which is deducted from the
12loan or paid by the obligor, must comply with Article IX 1/2 of
13the Illinois Insurance Code and all lawful requirements of the
14Director of Insurance related thereto. When there are 2 or more
15obligors on the loan contract, only one charge for credit life
16insurance and credit accident and health insurance may be made
17and only one of the obligors may be required to be insured.
18Insurance obtained from, by or through the lender or creditor
19must be in effect when the loan is transacted. The purchase of
20that insurance from an agent, broker or insurer specified by
21the lender or creditor may not be a condition precedent to the
22granting of the loan.
23    (d) The lender or creditor may require the obligor to
24provide property insurance on security other than household
25goods, furniture and personal effects. The amount and term of
26the insurance must be reasonable in relation to the amount and

 

 

09800HB2927ham001- 185 -LRB098 07544 HLH 44335 a

1term of the loan contract and the type and value of the
2security, and the insurance must be procured in accordance with
3the insurance laws of this State. The purchase of that
4insurance from an agent, broker or insurer specified by the
5lender or creditor may not be a condition precedent to the
6granting of the loan.
7    (e) The lender or creditor may, if the contract provides,
8collect a delinquency and collection charge on each installment
9in default for a period of not less than 10 days in an amount
10not exceeding 5% of the installment on installments in excess
11of $200 or $10 on installments of $200 or less, but only one
12delinquency and collection charge may be collected on any
13installment regardless of the period during which it remains in
14default. In addition, the contract may provide for the payment
15by the borrower or debtor of attorney's fees incurred by the
16lender or creditor. The lender or creditor may enforce such a
17provision to the extent of the reasonable attorney's fees
18incurred by him in the collection or enforcement of the
19contract or obligation. Whenever interest is contracted for or
20received under this Section, no amount in addition to the
21charges authorized by this Section may be directly or
22indirectly charged, contracted for or received, except lawful
23fees paid to a public officer or agency to record, file or
24release security, and except costs and disbursements including
25reasonable attorney's fees, incurred in legal proceedings to
26collect a loan or to realize on a security after default. This

 

 

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1Section does not prohibit the receipt of any commission,
2dividend or other benefit by the creditor or an employee,
3affiliate or associate of the creditor from the insurance
4authorized by this Section.
5    (f) When interest is contracted for or received under this
6Section, the lender must disclose the following items to the
7obligor in a written statement before the loan is consummated:
8        (1) the amount and date of the loan contract;
9        (2) the amount of loan credit using the term "amount
10    financed";
11        (3) every deduction from the amount financed or payment
12    made by the obligor for insurance and the type of insurance
13    for which each deduction or payment was made;
14        (4) every other deduction from the loan or payment made
15    by the obligor in connection with obtaining the loan;
16        (5) the date on which the finance charge begins to
17    accrue if different from the date of the transaction;
18        (6) the total amount of the loan charge for the
19    scheduled term of the loan contract with a description of
20    each amount included using the term "finance charge";
21        (7) the finance charge expressed as an annual
22    percentage rate using the term "annual percentage rate".
23    "Annual percentage rate" means the nominal annual
24    percentage rate of finance charge determined in accordance
25    with the actuarial method of computation with an accuracy
26    at least to the nearest 1/4 of 1%; or at the option of the

 

 

09800HB2927ham001- 187 -LRB098 07544 HLH 44335 a

1    lender by application of the United States rule so that it
2    may be disclosed with an accuracy at least to the nearest
3    1/4 of 1%;
4        (8) the number, amount and due dates or periods of
5    payments scheduled to repay the loan and the sum of such
6    payments using the term "total of payments";
7        (9) the amount, or method of computing the amount of
8    any default, delinquency or similar charges payable in the
9    event of late payments;
10        (10) the right of the obligor to prepay the loan and
11    the fact that such prepayment will reduce the charge for
12    the loan;
13        (11) a description or identification of the type of any
14    security interest held or to be retained or acquired by the
15    lender in connection with the loan and a clear
16    identification of the property to which the security
17    interest relates. If after-acquired property will be
18    subject to the security interest, or if other or future
19    indebtedness is or may be secured by any such property,
20    this fact shall be clearly set forth in conjunction with
21    the description or identification of the type of security
22    interest held, retained or acquired;
23        (12) a description of any penalty charge that may be
24    imposed by the lender for prepayment of the principal of
25    the obligation with an explanation of the method of
26    computation of such penalty and the conditions under which

 

 

09800HB2927ham001- 188 -LRB098 07544 HLH 44335 a

1    it may be imposed;
2        (13) unless the contract provides for the accrual and
3    payment of the finance charge on the balance of the amount
4    financed from time to time remaining unpaid, an
5    identification of the method of computing any unearned
6    portion of the finance charge in the event of prepayment of
7    the loan.
8    The terms "finance charge" and "annual percentage rate"
9shall be printed more conspicuously than other terminology
10required by this Section.
11    (g) At the time disclosures are made, the lender shall
12deliver to the obligor a duplicate of the instrument or
13statement by which the required disclosures are made and on
14which the lender and obligor are identified and their addresses
15stated. All of the disclosures shall be made clearly,
16conspicuously and in meaningful sequence and made together on
17either:
18        (i) the note or other instrument evidencing the
19    obligation on the same side of the page and above or
20    adjacent to the place for the obligor's signature; however,
21    where a creditor elects to combine disclosures with the
22    contract, security agreement, and evidence of a
23    transaction in a single document, the disclosures required
24    under this Section shall be made on the face of the
25    document, on the reverse side, or on both sides, provided
26    that the amount of the finance charge and the annual

 

 

09800HB2927ham001- 189 -LRB098 07544 HLH 44335 a

1    percentage rate shall appear on the face of the document,
2    and, if the reverse side is used, the printing on both
3    sides of the document shall be equally clear and
4    conspicuous, both sides shall contain the statement,
5    "NOTICE: See other side for important information", and the
6    place for the customer's signature shall be provided
7    following the full content of the document; or
8        (ii) one side of a separate statement which identifies
9    the transaction.
10    The amount of the finance charge shall be determined as the
11sum of all charges, payable directly or indirectly by the
12obligor and imposed directly or indirectly by the lender as an
13incident to or as a condition to the extension of credit,
14whether paid or payable by the obligor, any other person on
15behalf of the obligor, to the lender or to a third party,
16including any of the following types of charges:
17        (1) Interest, time price differential, and any amount
18    payable under a discount or other system of additional
19    charges.
20        (2) Service, transaction, activity, or carrying
21    charge.
22        (3) Loan fee, points, finder's fee, or similar charge.
23        (4) Fee for an appraisal, investigation, or credit
24    report.
25        (5) Charges or premiums for credit life, accident,
26    health, or loss of income insurance, written in connection

 

 

09800HB2927ham001- 190 -LRB098 07544 HLH 44335 a

1    with any credit transaction unless (a) the insurance
2    coverage is not required by the lender and this fact is
3    clearly and conspicuously disclosed in writing to the
4    obligor; and (b) any obligor desiring such insurance
5    coverage gives specific dated and separately signed
6    affirmative written indication of such desire after
7    receiving written disclosure to him of the cost of such
8    insurance.
9        (6) Charges or premiums for insurance, written in
10    connection with any credit transaction, against loss of or
11    damage to property or against liability arising out of the
12    ownership or use of property, unless a clear, conspicuous,
13    and specific statement in writing is furnished by the
14    lender to the obligor setting forth the cost of the
15    insurance if obtained from or through the lender and
16    stating that the obligor may choose the person through
17    which the insurance is to be obtained.
18        (7) Premium or other charges for any other guarantee or
19    insurance protecting the lender against the obligor's
20    default or other credit loss.
21        (8) Any charge imposed by a lender upon another lender
22    for purchasing or accepting an obligation of an obligor if
23    the obligor is required to pay any part of that charge in
24    cash, as an addition to the obligation, or as a deduction
25    from the proceeds of the obligation.
26    A late payment, delinquency, default, reinstatement or

 

 

09800HB2927ham001- 191 -LRB098 07544 HLH 44335 a

1other such charge is not a finance charge if imposed for actual
2unanticipated late payment, delinquency, default or other
3occurrence.
4    (h) Advertising for loans transacted under this Section may
5not be false, misleading, or deceptive. That advertising, if it
6states a rate or amount of interest, must state that rate as an
7annual percentage rate of interest charged. In addition, if
8charges other than for interest are made in connection with
9those loans, those charges must be separately stated. No
10advertising may indicate or imply that the rates or charges for
11loans are in any way "recommended", "approved", "set" or
12"established" by the State government or by this Act.
13    (i) A lender or creditor who complies with the federal
14Truth in Lending Act, amendments thereto, and any regulations
15issued or which may be issued thereunder, shall be deemed to be
16in compliance with the provisions of subsections (f), (g) and
17(h) of this Section.
18    (j) For purposes of this Section, "real estate" and "real
19property" include a manufactured home as defined in subdivision
20(53) of Section 9-102 of the Uniform Commercial Code that is
21real property as defined in the Conveyance and Encumbrance of
22Manufactured Homes as Real Property and Severance Act.
23(Source: P.A. 92-483, eff. 8-23-01.)
 
24    Section 10-115. The Motor Vehicle Retail Installment Sales
25Act is amended by changing Section 2.1 as follows:
 

 

 

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1    (815 ILCS 375/2.1)  (from Ch. 121 1/2, par. 562.1)
2    Sec. 2.1.
3    "Motor vehicle" means a motor vehicle as defined in The
4Illinois Vehicle Code but does not include bicycles,
5motorcycles, motor scooters, snowmobiles, trailers, and farm
6equipment, and manufactured homes as defined in subdivision
7(53) of Section 9-102 of the Uniform Commercial Code.
8(Source: P.A. 77-1167.)
 
9    Section 10-120. The Retail Installment Sales Act is amended
10by changing Section 2.1 as follows:
 
11    (815 ILCS 405/2.1)  (from Ch. 121 1/2, par. 502.1)
12    Sec. 2.1. "Goods" means all goods used or purchased
13primarily for personal, family, or household purposes. "Goods"
14includes goods purchased primarily for agricultural purposes
15only for the purposes of the credit disclosure requirements of
16this Act. "Goods" includes merchandise certificates or coupons
17issued by a retail seller to be used in their face amount in
18the purchase of goods or services sold by such a seller but
19does not include money or other things in action. It also
20includes goods which are furnished or used, at the time of sale
21or subsequently, in the modernization, rehabilitation, repair,
22alteration, improvement, or construction of real estate so as
23to become a part of that real estate whether or not severable

 

 

09800HB2927ham001- 193 -LRB098 07544 HLH 44335 a

1therefrom. "Goods" includes a manufactured home as defined in
2subdivision (53) of Section 9-102 of the Uniform Commercial
3Code that is not real property as defined in the Conveyance and
4Encumbrance of Manufactured Homes as Real Property and
5Severance Act. "Goods" does not include a motor vehicle as
6defined in The Illinois Vehicle Code, but does include
7bicycles, motorcycles, motor scooters, snowmobiles and
8trailers when purchased primarily for personal, family or
9household purposes. "Goods" does not include goods used or
10purchased primarily for business or commercial purposes.
11(Source: P.A. 77-1166.)
 
12
ARTICLE 95. NONACCELERATION

 
13    Section 95-995. No acceleration or delay. Where this Act
14makes changes in a statute that is represented in this Act by
15text that is not yet or no longer in effect (for example, a
16Section represented by multiple versions), the use of that text
17does not accelerate or delay the taking effect of (i) the
18changes made by this Act or (ii) provisions derived from any
19other Public Act.
 
20
ARTICLE 99. EFFECTIVE DATE

 
21    Section 99-999. Effective date. This Act takes effect upon
22becoming law.".