98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5938

 

Introduced , by Rep. Daniel V. Beiser

 

SYNOPSIS AS INTRODUCED:
 
See Index

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


LRB098 18594 HLH 53735 b

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

 

 

A BILL FOR

 

HB5938LRB098 18594 HLH 53735 b

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

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

 

 

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1of Section 9-102 of the Uniform Commercial Code.
2Notwithstanding the foregoing, for the purposes of subsection
3(b)(2) of Section 1322 of the federal Bankruptcy Code (11
4U.S.C. 1322(b)(2)), a manufactured home shall be deemed to be
5real property. For the purposes of this Act, a manufactured
6home is "affixed to a permanent foundation" if it is anchored
7to real property by attachment to a permanent foundation and
8connected to residential utilities (such as water, gas,
9electricity, or sewer or septic service).
 
10    Section 5-10. Act not mandatory; record notice. The owner
11of a manufactured home that is personal property or a fixture
12may, but need not, cause that manufactured home to be deemed to
13be real property by satisfying the requirements of Section 5-30
14of this Act and the requirements of Section 3-116.1 or 3-116.2
15of the Illinois Vehicle Code, as applicable.
16    To convey or voluntarily encumber a manufactured home as
17real property, the following conditions must be met:
18        (1) the manufactured home must be affixed a permanent
19    foundation to real property;
20        (2) the ownership interests in the manufactured home
21    and the real property to which the manufactured home is
22    affixed must be identical, or, if the manufactured home is
23    not located in a mobile home park as defined in Section 2.5
24    of the Mobile Home Park Act, and if the owner of the
25    manufactured home, if not the owner of the real property,

 

 

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1    is in possession of the real property pursuant to the terms
2    of a lease in recordable form that has a term that
3    continues for at least 20 years after the date of
4    execution, then the consent of the lessor of the real
5    property must be given;
6        (3) the person (all, if more than one) having an
7    ownership interest in such manufactured home shall execute
8    and record with the recording officer of the county in
9    which the real property is located an affidavit of
10    affixation as provided in Section 5-15 of this Act and
11    satisfy the other applicable requirements of this Act; and
12        (4) upon receipt of a certified copy of the recorded
13    affidavit of affixation pursuant to Section 5-25 of this
14    Act, any person designated therein for filing with the
15    Secretary of State shall file the certified copy of
16    affidavit of affixation with the Secretary of State; except
17    that
18            (A) in a case described in subsection (a)(4)(A) of
19        Section 5-15 of this Act, a certified copy of the
20        affidavit of affixation and the original
21        Manufacturer's Statement of Origin, each as recorded
22        in the county in which the real property is located,
23        must be filed with the Secretary of State pursuant to
24        Section 3-116.1 of the Illinois Vehicle Code; and
25            (B) in a case described in subsection (a)(4)(B) of
26        Section 5-15 of this Act, a certified copy of the

 

 

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

 

 

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

 

 

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

 

 

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

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

 

 

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1be the person(s) whose name(s) is/are subscribed below (each a
2"Homeowner"), and who, being by me first duly sworn, did each
3on his or her oath state as follows:
41. Homeowner owns the manufactured home ("Home") described as
5    follows:
6.....................................................
7..............................
8(Year;  Manufacturer's Name; Manufacturer's Serial No(s).)
 
92. The street address of the real property to which the Home is
10    or shall be permanently affixed ("Property Address") is:
 
11.............................................................
12(Street or Route; City; County; State; Zip Code)
 
133. The legal description of the real property to which the Home
14    is or shall be affixed ("Land") is:
15..........................
16..............................
17..............................
18..............................
 
194. Homeowner is the owner of the Land or, if not the owner of
20    the Land, the Home is not located in a mobile home park, as
21    defined in Section 2.5 of the Mobile Home Park Act, and
22    Homeowner is in possession of the Land pursuant to a lease

 

 

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1    in recordable form that has a term that continues for at
2    least 20 years after the date of the execution of this
3    Affidavit, and the consent of the lessor is attached to
4    this Affidavit.
55. The Home is or shall be assessed and taxed as an improvement
6    to the Land.
76. As of the date of the execution of this Affidavit, or, if
8    the Home is not yet located at the Property Address, upon
9    the delivery of the Home to the Property Address:
10    (a) The Home [ ] is [ ] shall be affixed to a permanent
11foundation as defined in Section 5-5 of the Conveyance and
12Encumbrance of Manufactured Homes as Real Property and
13Severance Act;
14    (b) The wheels, axles, towbar, or hitch were removed when
15the Home was placed on the Property Address; and
167. The Home [ ] was [ ] was not permanently affixed before
17    January 1, 2011.
188. If Homeowner is the owner of the Land, any conveyance or
19    financing of the Home and the Land shall be a single
20    transaction under applicable State law.
219. The Home is subject to the following security interests or
22    liens:
 
23Name of Lienholder: ................
24Address: ....................................................
 

 

 

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1Name of Lienholder: ................
2Address: ....................................................
 
310. Other than those disclosed in this Affidavit, Homeowner is
4    not aware of (i) any other security interest, claim, lien,
5    or encumbrance affecting the Home or (ii) any other facts
6    or information that could reasonably affect the validity of
7    the title of the Home or the existence or non-existence of
8    security interests in it.
911. A release of lien from each of the lienholders identified
10    in paragraph 11 of this Affidavit [] has been [] shall be
11    delivered to the Secretary of State.
1212. Homeowner shall initial only one of the following, as it
13    applies to the Home:
14    [] The Home is not covered by a certificate of title. The  
15Home is covered by a Manufacturer's Statement of Origin, 
16issued on the ...... of .........., ....., manufacturer's 
17serial number ........................, which Homeowner shall 
18surrender. The original Manufacturer's Statement of Origin, 
19duly endorsed to Homeowner, is attached to this Affidavit. 
20    [] The Home is covered by a certificate of title issued 
21on the ....... day of .........., ......, title number 
22........................, which  Homeowner shall surrender.
2313. Homeowner designates the following person to file a
24    certified copy of this Affidavit with the Secretary of
25    State, and the person to whom the Recorder shall return a

 

 

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

 

 

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

 

 

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1    Section 5-20. Disposition of liens. Neither the act of
2affixing a manufactured home to a permanent foundation nor the
3recording of the affidavit of affixation shall impair the
4rights of any holder of a security interest in or lien on a
5manufactured home perfected as provided in Section 3-202 of the
6Illinois Vehicle Code, unless and until the due filing with and
7acceptance by the Secretary of State of an application to
8surrender the title as provided in Section 3-116.2 of the
9Illinois Vehicle Code and release of all security interests or
10liens as provided in Section 3-205 of the Illinois Vehicle
11Code. Upon the filing of such releases, the security interests
12or liens perfected under Section 3-202 of the Illinois Vehicle
13Code are terminated. The recording of an affidavit of
14affixation does not change the character of any security
15interest or lien noted on a certificate of title, and no
16recording tax shall be imposed at the time an affidavit of
17affixation is recorded upon any security interest in or lien on
18a manufactured home perfected under Section 3-202 of the
19Illinois Vehicle Code.
 
20    Section 5-25. Notice to Secretary of State. Upon payment of
21the fees provided by law and recordation of the affidavit of
22affixation, the recording officer shall endorse the affidavit
23as "recorded in land records", setting forth thereon the
24indexing information for the affidavit of affixation, and the
25recording officer shall forthwith forward a certified copy of

 

 

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1the recorded affidavit of affixation and all attachments
2thereto to the person designated therein for filing with the
3Secretary of State. Upon receipt of a certified copy of the
4recorded affidavit of affixation by the person designated
5therein for filing with the Secretary of State, such person
6shall forthwith deliver for filing to the Secretary a certified
7copy of the affidavit of affixation and other documents as
8provided in item (4) of Section 5-10 of this Act.
 
9    Section 5-30. Effect of recorded affidavit of affixation. A
10manufactured home shall be deemed to be real property when all
11of the following events have occurred:
12    (1) the manufactured home is permanently affixed to land as
13provided in Section 5-5 of this Act;
14    (2) an affidavit of affixation conforming to the
15requirements of Section 5-15 of this Act has been recorded;
16    (3) a certified copy of the recorded affidavit of
17affixation has been delivered for filing to the Secretary of
18State as provided in Section 5 of this Act; and
19    (4) the requirements of Section 3-116.1 or 3-116.2 of the
20Illinois Vehicle Code, as applicable, have been satisfied.
 
21    Section 5-35. Conveyance and encumbrance as real property.
22Upon the satisfaction of the requirements of Section 5-30 of
23this Act and the requirements of Section 3-116.1 or 3-116.2 of
24the Illinois Vehicle Code, as applicable, such manufactured

 

 

HB5938- 15 -LRB098 18594 HLH 53735 b

1home shall be deemed to be real property; any mortgage, deed of
2trust, lien, or security interest that can attach to land,
3buildings erected thereon, or fixtures affixed thereto shall
4attach as of the date of its recording in the same manner as if
5the manufactured home were built from ordinary building
6materials on site; title to such manufactured home shall be
7transferred by deed or other form of conveyance that is
8effective to transfer an interest in real property, together
9with the land to which such structure has been affixed; and the
10manufactured home shall be deemed to be real property and shall
11be governed by the laws applicable to real property.
 
12    Section 5-40. Manufactured home that remains personal
13property or a fixture. Except as provided in Sections 5-15,
145-25, 5-30, and 5-35 of this Act, an affidavit of affixation is
15not necessary or effective to convey or encumber a manufactured
16home or to change the character of the manufactured home to
17real property. Every conveyance of land upon which is located a
18manufactured home for which no affidavit of affixation has been
19recorded or for which an affidavit of severance has been
20recorded shall contain a recital that such conveyance does not
21affect the title to said manufactured home and that the
22transfer or encumbrance thereof can only be made pursuant to
23the provisions of the Illinois Vehicle Code. Any agreement by
24any party to the transaction whereby the requirements of this
25subsection are waived shall be void as contrary to public

 

 

HB5938- 16 -LRB098 18594 HLH 53735 b

1policy.
 
2    Section 5-45. Applicability. Nothing in this Act shall
3impair any rights existing under law prior to the effective
4date of this Act of anyone claiming an interest in the
5manufactured home.
 
6    Section 5-50. Affidavit of severance.
7    (a) If and when a manufactured home for which an affidavit
8of affixation has been recorded is detached or severed from the
9real property to which it is affixed, the person (all, if more
10than one) having an interest in the real property shall record
11an affidavit of severance in the land records of the county
12where the affidavit of affixation with respect to the
13manufactured home is recorded. The affidavit of severance shall
14contain or be accompanied by:
15        (i) the name, residence, and mailing address of the
16    owner of the manufactured home;
17        (ii) a description of the manufactured home including
18    the name of the manufacturer, manufacturer's serial number
19    or numbers of the manufactured home;
20        (iii) the book number, page number and date of
21    recordation of the affidavit of affixation;
22        (iv) a statement of either (A) any facts or information
23    known to the party executing the affidavit that could
24    reasonably affect the validity of the title of the

 

 

HB5938- 17 -LRB098 18594 HLH 53735 b

1    manufactured home or the existence or non-existence of a
2    security interest in or lien on it, or (B) that no such
3    facts or information are known to such party; and
4        (v) the name and address of the person designated for
5    filing the certified copy of the recorded affidavit of
6    severance with the Secretary of State, to whom the
7    recording officer shall return the certified copy of the
8    affidavit of severance after it has been duly recorded in
9    the real property records, as provided in subsection (d) of
10    this Section.
11    (b) The affidavit of severance shall be in the form set
12forth in subsection (d) of this Section, duly acknowledged or
13proved in like manner as to entitle a conveyance to be
14recorded, and when so acknowledged or proved and upon payment
15of the lawful fees therefor, such recording officer shall
16immediately cause the affidavit and any attachments thereto to
17be duly recorded and indexed in the record of deeds.
18    (c) Upon payment of the fees provided by law and
19recordation of the affidavit of severance, the recording
20officer shall endorse the affidavit as "recorded in land
21records", setting forth thereon the indexing information for
22the recorded affidavit of severance, and the recording officer
23shall forthwith forward a certified copy of the recorded
24affidavit of severance to the person designated therein for
25filing with the Secretary of State. Upon receipt of a certified
26copy of the recorded affidavit of severance by the person

 

 

HB5938- 18 -LRB098 18594 HLH 53735 b

1designated therein for filing with the Secretary of State, such
2person shall deliver for filing to the Secretary of State such
3certified copy of the affidavit of severance and the other
4documents provided in subsection (a) of this Section, together
5with an application for a certificate of title to the
6manufactured home, to be issued in accordance with subsection
7(b) of Section 3-109 of the Illinois Vehicle Code.
8    (d) An affidavit of severance shall be in the form set
9forth below:
 
10
MANUFACTURED HOME
11
AFFIDAVIT OF SEVERANCE

 
12STATE OF .........................)
13                                  )SS.
14COUNTY OF ........................)
 
15BEFORE ME, the undersigned notary public, on this day
16personally appeared ................... (type the name(s) of
17each person signing this Affidavit) known to me to be the
18person(s) whose name(s) is/are subscribed below (each an
19"Affiant"), and who, being by me first duly sworn, did each on
20his or her oath state as follows:
 
211. The owner(s) of the manufactured home described below
22    reside(s) at the following address:

 

 

HB5938- 19 -LRB098 18594 HLH 53735 b

1..........................
2(Street or Route; City; County; State; Zip Code)
 
3Mailing address, if different:
4...............................
5(Street or Route; City; County; State; Zip Code)
 
62. The manufactured home that is the subject of this Affidavit
7    ("Home") is described as follows:
8............................
9(Year;  Manufacturer's Name; Manufacturer's Serial No(s).)
 
103. The Home was severed from the following address ("Land"):
11.
12(Street or Route; City; County; State; Zip Code)
 
134. An Affidavit of Affixation was duly recorded in the land 
14    records of  the  county in which the  Land is located on 
15    (date) ............., in book number ...... at page 
16    number .....
175. Affiant is the owner of the Land or, if not the owner of 
18    the Land, is in possession of the Land pursuant to a 
19    lease in recordable form, and the consent of the lessor 
20    is attached to this Affidavit.
216. The Home is subject to the following security interests:
 

 

 

HB5938- 20 -LRB098 18594 HLH 53735 b

1Name of Lienholder: ................
2Address: ....................................................
 
3Name of Lienholder: ................
4Address: ....................................................
 
57. Other than those disclosed in this Affidavit, Affiant is 
6    not aware of (i) any other security interest, claim, 
7    lien, or encumbrance affecting the Home or (ii) any other 
8    facts or information that could reasonably affect the 
9    validity of the title of the Home or the existence or 
10    non-existence of security interests in it.
118. A release of lien from each of the lienholders identified 
12    in paragraph 6 of this Affidavit [] has been [] shall  be 
13    delivered to the Secretary of State. 
149. Affiant designates the following person to file a 
15    certified copy of this Affidavit with the Secretary of 
16    State, and the person to whom the Recorder shall return a 
17    certified copy of this Affidavit after it has been duly 
18    recorded in the real property records:
19    Name: ...............................................
20    Address: ................................................
 
2110. This Affidavit is executed by Affiant pursuant to Section 
22    5-50 of the Conveyance and Encumbrance of Manufactured 
23    Homes as Real Property and Severance Act.

 

 

HB5938- 21 -LRB098 18594 HLH 53735 b

1
2    IN WITNESS WHEREOF, Affiant(s) has/have executed this 
3    Affidavit in my presence and in the presence of the 
4    undersigned witnesses on this ....... day of 
5    ................, .......
6
7...........................(SEAL) ..........................
8Homeowner #1                      Witness
9...........................
10Printed Name
 
11...........................(SEAL) ..........................
12Homeowner #2                      Witness
13...........................
14Printed Name
 
15...........................(SEAL) ..........................
16Homeowner #3                      Witness
17...........................
18Printed Name
 
19...........................(SEAL) ..........................
20Homeowner #4                      Witness
21...........................
22Printed Name
 

 

 

HB5938- 22 -LRB098 18594 HLH 53735 b

1STATE OF .........................)
2                                  )  SS.
3COUNTY OF ........................)
 
4    The foregoing instrument was acknowledged before me this
5(date) by (name(s) of person(s) who acknowledged).
6                  .......................... Notary Public
7                          Signature
 
8                 My commission expires: ...................
9                 Official Seal:
 
10ATTENTION RECORDER: This instrument covers goods that had been
11fixtures on the Property described herein and is to be filed
12for record in the records where conveyances of real estate are
13recorded.
 
14    Section 5-55. Documents in trust.
15    (a) Manufacturer's Statement of Origin. The holder of a
16Manufacturer's Statement of Origin to a manufactured home may
17deliver it to any person to facilitate conveying or encumbering
18the home. Any person receiving a Manufacturer's Statement of
19Origin so delivered holds it in trust for the person delivering
20it.
21    (b) Lien Release. The holder of a security interest in a
22manufactured home may deliver lien release documents to any

 

 

HB5938- 23 -LRB098 18594 HLH 53735 b

1person to facilitate conveying or encumbering the home. Any
2person receiving any such documents so delivered holds the
3documents in trust for the lienholder.
 
4
ARTICLE 10. AMENDATORY PROVISIONS

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

 

 

HB5938- 24 -LRB098 18594 HLH 53735 b

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

 

 

HB5938- 25 -LRB098 18594 HLH 53735 b

1Manufactured Homes as Real Property and Severance Act. If a
2mobile or manufactured home that is located outside of a mobile
3home park is relocated to a mobile home park, it must be
4considered chattel and must be taxed according to the Mobile
5Home Local Services Tax Act. The owner of a mobile home or
6manufactured home that is located outside of a mobile home park
7may file a request with the chief county assessment officer
8county that the home be classified, assessed, and taxed as real
9property.
10    (c) Mobile homes and manufactured homes that are located in
11mobile home parks must be considered chattel and must be taxed
12according to the Mobile Home Local Services Tax Act.
13    (d) If the provisions of this Section conflict with the
14Illinois Manufactured Housing and Mobile Home Safety Act, the
15Mobile Home Local Services Tax Act, the Mobile Home Park Act,
16or any other provision of law with respect to the taxation of
17mobile homes or manufactured homes located outside of mobile
18home parks, the provisions of this Section shall control.
19(Source: P.A. 96-1477, eff. 1-1-11.)
 
20    Section 10-20. The Mobile Home Local Services Tax Act is
21amended by changing Sections 1 and 4 as follows:
 
22    (35 ILCS 515/1)  (from Ch. 120, par. 1201)
23    Sec. 1. (a) As Except as provided in subsections (b) and
24(c), as used in this Act, "manufactured home" means a

 

 

HB5938- 26 -LRB098 18594 HLH 53735 b

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

 

 

HB5938- 27 -LRB098 18594 HLH 53735 b

1Section 5-5 of the Conveyance and Encumbrance of Manufactured
2Homes as Real Property and Severance Act, and whether or not
3such mobile homes and manufactured homes are real property as
4defined in Section 5-35 of the Conveyance and Encumbrance of
5Manufactured Homes as Real Property and Severance Act. The
6words "mobile home" and "manufactured home" are synonymous for
7the purposes of this Act. Any such structure located outside of
8a mobile home park shall not be assessed and taxed construed as
9chattel, but must be assessed and taxed as real property as
10defined by Section 1-130 of the Property Tax Code. All mobile
11homes and manufactured homes located inside mobile home parks
12must be considered as chattel and taxed according to this Act.
13Mobile homes and manufactured homes located on a dealer's lot
14for resale purposes or as a temporary office shall not be
15subject to this tax.
16    (b) Mobile homes and manufactured homes that (i) are
17located outside of mobile home parks and (ii) are taxed under
18this Act on the effective date of this amendatory Act of the
1996th General Assembly must continue to be taxed under this Act
20and shall not be classified, assessed, and taxed as real
21property until the home is sold, transferred, or relocated to a
22different parcel of land outside of a mobile home park. If a
23mobile home or manufactured home described in this subsection
24(b) is sold, transferred, or relocated to a different parcel of
25land outside of a mobile home park, then the home must be
26classified, assessed, and taxed as real property whether or not

 

 

HB5938- 28 -LRB098 18594 HLH 53735 b

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

 

 

HB5938- 29 -LRB098 18594 HLH 53735 b

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

 

 

HB5938- 30 -LRB098 18594 HLH 53735 b

1herein", approved September 8, 1971, as amended, to the
2township assessor, if any, or to Supervisor of Assessments or
3county assessor if there is no township assessor, or to the
4county assessor in those counties in which a county assessor is
5elected pursuant to Section 3-45 of the Property Tax Code,
6within 5 days of the entry of a mobile home into such park. The
7owner of a mobile home or manufactured home not located in a
8mobile home park, other than a mobile home or manufactured home
9with respect to which the requirements of Section 5-30 of the
10Conveyance and Encumbrance of Manufactured Homes as Real
11Property and Severance Act and the requirements of Section
123-116.1 or Section 3-116.2 of the Illinois Vehicle Code, as
13applicable, have been satisfied unless with respect to the same
14manufactured home there has been recorded an affidavit of
15severance pursuant to Section 5-50 of the Conveyance and
16Encumbrance of Manufactured Homes as Real Property and
17Severance Act, shall, within 30 days after initial placement of
18such mobile home or manufactured home in any county and within
1930 days after movement of such mobile home or manufactured home
20to a new location, record with the Office of the Recorder in
21the county where the mobile home or manufactured home is
22located file with the county assessor, Supervisor of
23Assessments or township assessor, as the case may be, a mobile
24home registration showing the name and address of the owner and
25every occupant of the mobile home or manufactured home, the
26location of the mobile home or manufactured home, the year of

 

 

HB5938- 31 -LRB098 18594 HLH 53735 b

1manufacture, and the square feet of floor space contained in
2such mobile home or manufactured home together with the date
3that the mobile home or manufactured home became inhabited, was
4initially installed and set up in the county, or was moved to a
5new location. Such registration shall also include the license
6number of such mobile home or manufactured home and of the
7towing vehicle, if there be any, and the State issuing such
8licenses, subject to the county's recording fees. In the case
9of a mobile home or manufactured home not located in a mobile
10home park, the registration shall be signed by the owner or
11occupant of the mobile home or manufactured home. and the title
12or certificate of origin shall be signed and recorded in the
13county where the home is located or surrendered to the county
14and held until such time the home is removed from the county.
15Titles or certificates of origin held by a mortgage company on
16the home shall be signed and recorded in the county where
17located or surrendered to the county once the mortgage is
18released. Failure to record the registration or surrender the
19title or certificate of origin shall not prevent the home from
20being assessed and taxed as real property. It is the duty of
21each township assessor, if any, and each Supervisor of
22Assessments or county assessor if there is no township
23assessor, or the county assessor in those counties in which a
24county assessor is elected pursuant to Section 3-45 of the
25Property Tax Code, to require timely filing of a properly
26completed registration for each mobile home or manufactured

 

 

HB5938- 32 -LRB098 18594 HLH 53735 b

1home located in a mobile home park in his or her township or
2county, as the case may be. Any person furnishing
3misinformation for purposes of registration or failing to
4record file a required registration is guilty of a Class A
5misdemeanor. This Section applies only when the tax permitted
6by Section 3 has been imposed on mobile homes and manufactured
7homes located inside mobile home parks.
8(Source: P.A. 96-1477, eff. 1-1-11.)
 
9    Section 10-25. The Illinois Banking Act is amended by
10changing Sections 3, 5a, 5d, and 6.1 as follows:
 
11    (205 ILCS 5/3)  (from Ch. 17, par. 309)
12    Sec. 3. Formation and primary powers. It shall be lawful to
13form banks, as herein provided, for the purpose of discount and
14deposit, buying and selling exchange and doing a general
15banking business, excepting the issuing of bills to circulate
16as money; and such banks shall have the power to loan money on
17personal and real estate security, and to accept and execute
18trusts upon obtaining a certificate of authority pursuant to
19the "Corporate Fiduciary Act", and shall be subject to all of
20the provisions of this Act. For purposes of this Section, "real
21estate" includes a manufactured home as defined in subdivision
22(53) of Section 9-102 of the Uniform Commercial Code that is
23real property as defined in Section 5-35 of the Conveyance and
24Encumbrance of Manufactured Homes as Real Property and

 

 

HB5938- 33 -LRB098 18594 HLH 53735 b

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

 

 

HB5938- 34 -LRB098 18594 HLH 53735 b

1    The Commissioner of Banks and Real Estate shall prescribe
2rules governing this Section and Section 1-6a of the Illinois
3Savings and Loan Act of 1985.
4(Source: P.A. 88-643, eff. 1-1-95; 89-508, eff. 7-3-96.)
 
5    (205 ILCS 5/5d)  (from Ch. 17, par. 312.3)
6    Sec. 5d. Notwithstanding any other provision of this Act, a
7bank may engage in making revolving credit loans secured by
8mortgages or deeds of trust on real property or by security
9assignments of beneficial interests in land trusts.
10    For purposes of this Section, "revolving credit", has the
11meaning defined in Section 4.1 of "An Act in relation to the
12rate of interest and other charges in connection with sales on
13credit and the lending of money", approved May 24, 1879, as
14amended.
15    Any mortgage or deed of trust given to secure a revolving
16credit loan may, and when so expressed therein shall, secure
17not only the existing indebtedness, but also such future
18advances, whether such advances are obligatory or to be made at
19the option of the lender, or otherwise, as are made within
20twenty years from the date thereof, to the same extent as if
21such future advances were made on the date of the execution of
22such mortgage or deed of trust, although there may be no
23advance made at the time of execution of such mortgage or other
24instrument, and although there may be no indebtedness
25outstanding at the time any advance is made. The lien of such

 

 

HB5938- 35 -LRB098 18594 HLH 53735 b

1mortgage or deed of trust, as to third persons without actual
2notice thereof, shall be valid as to all such indebtedness and
3future advances from the time said mortgage or deed of trust is
4filed for record in the office of the Recorder of Deeds or the
5Registrar of Titles of the county where the real property
6described therein is located. The total amount of indebtedness
7that may be so secured may increase or decrease from time to
8time, but the total unpaid balance so secured at any one time
9shall not exceed a maximum principal amount which must be
10specified in such mortgage or deed of trust, plus interest
11thereon, and any disbursements made for the payment of taxes,
12special assessments, or insurance on said real property, with
13interest on such disbursements.
14    Any such mortgage or deed of trust shall be valid and have
15priority over all subsequent liens and encumbrances, including
16statutory liens, except taxes and assessments levied on said
17real property.
18    For purposes of this Section, "real property" includes a
19manufactured home as defined in subdivision (53) of Section
209-102 of the Uniform Commercial Code, that is real property as
21defined in Section 5-35 of the Conveyance and Encumbrance of
22Manufactured Homes as Real Property and Severance Act.
23(Source: P.A. 83-1539; 83-1380.)
 
24    (205 ILCS 5/6.1)  (from Ch. 17, par. 313.1)
25    Sec. 6.1. Non-recourse reverse mortgage loans.

 

 

HB5938- 36 -LRB098 18594 HLH 53735 b

1    (a) It is the intent of this amendatory Act of 1991 that
2homeowners at least 62 years of age be permitted to meet their
3financial needs by accessing the equity in their homes through
4a reverse mortgage. The General Assembly recognizes that many
5restrictions and requirements that exist to govern traditional
6mortgage transactions are inapplicable in the context of
7reverse mortgages. In order to foster reverse mortgage
8transactions and better serve the citizens of this State, this
9Section authorizes the making of reverse mortgages, and
10expressly relieves reverse mortgage lenders and borrowers from
11compliance with inappropriate requirements.
12    As used in this Section, "borrower" means any homeowner who
13is, or whose spouse is, at least 62 years of age.
14    For purposes of this Section, "real property" includes a
15manufactured home as defined in subdivision (53) of Section
169-102 of the Uniform Commercial Code which is real property as
17defined in Section 5-35 of the Conveyance and Encumbrance of
18Manufactured Homes as Real Property and Severance Act.
19    As used in this Section, "reverse mortgage" means a
20non-recourse loan, secured by real property, that complies with
21all of the following:
22        (1) Provides cash advances to a borrower based on the
23    equity in a borrower's owner-occupied principal residence,
24    provided that it is a residence designed to be occupied by
25    not more than 4 families.
26        (2) Requires no payment of principal or interest until

 

 

HB5938- 37 -LRB098 18594 HLH 53735 b

1    the entire loan becomes due and payable.
2    (b) Reverse mortgage loans shall be subject only to all of
3the following provisions:
4        (1) Payment, in whole or in part, shall be permitted
5    without penalty at any time during the term of the
6    mortgage.
7        (2) A reverse mortgage may provide for an interest rate
8    that is fixed or adjustable and may provide for interest
9    that is contingent on appreciation in the value of the
10    property.
11        (3) If a reverse mortgage provides for periodic
12    advances to a borrower, the advances may not be reduced in
13    amount or number based on any adjustment in the interest
14    rate.
15        (4) A reverse mortgage may be subject to any additional
16    terms and conditions imposed by a lender that are required
17    under the provisions of the federal Housing and Community
18    Development Act of 1987 to enable the lender to obtain
19    federal government insurance on the mortgage if the loans
20    are to be insured under that Act.
21    (c) The repayment obligation under a reverse mortgage is
22subject to all of the following:
23        (1) Temporary absences from the home not exceeding 60
24    consecutive days shall not cause the mortgage to become due
25    and payable.
26        (2) Temporary absences from the home exceeding 60 days,

 

 

HB5938- 38 -LRB098 18594 HLH 53735 b

1    but not exceeding one year shall not cause the mortgage to
2    become due and payable, provided that the borrower has
3    taken action that secures the home in a manner satisfactory
4    to the lender.
5        (3) The lender must disclose any interest or other fees
6    to be charged during the period that commences on the date
7    the mortgage becomes due and payable and ends when
8    repayment in full is made in accordance with applicable
9    State and federal laws, rules, and regulations.
10    (d) A reverse mortgage shall become due and payable upon
11the occurrence of any of the following events:
12        (1) The real property securing the loan is sold.
13        (2) All borrowers cease to occupy the home as a
14    principal residence.
15        (3) A fixed maturity date agreed to by the lender and
16    the borrower is reached.
17        (4) An event that is specified in the loan documents
18    and that jeopardizes the lender's security occurs.
19    (e) No reverse mortgage commitment may be made by a lender
20unless the loan applicant attests, in writing, that the
21applicant has received from the lender, at the time of initial
22inquiry, a statement prepared by the Department on Aging
23regarding the advisability and availability of independent
24information and counseling services on reverse mortgages.
25(Source: P.A. 87-488.)
 

 

 

HB5938- 39 -LRB098 18594 HLH 53735 b

1    Section 10-30. The Illinois Savings and Loan Act of 1985 is
2amended by changing Sections 1-10.30 and 5-2 as follows:
 
3    (205 ILCS 105/1-10.30)  (from Ch. 17, par. 3301-10.30)
4    Sec. 1-10.30. "Real property": the interests, benefits,
5and rights inherent in the ownership of the physical real
6estate. It is the rights with which the ownership of real
7estate is endowed. "Real property" includes a manufactured home
8as defined in subdivision (53) of Section 9-102 of the Uniform
9Commercial Code that is real property as defined in Section
105-35 of the Conveyance and Encumbrance of Manufactured Homes as
11Real Property and Severance Act. For purposes of this Act, the
12term "Real Estate" is synonymous with "Real Property".
13(Source: P.A. 84-543.)
 
14    (205 ILCS 105/5-2)  (from Ch. 17, par. 3305-2)
15    Sec. 5-2. Investment in loans. An association may loan
16funds to members as follows:
17    (a) On the security of withdrawable capital accounts, but
18no such loan shall exceed the withdrawal value of the pledged
19account;
20    (b) On the security of real estate:
21    (1) Of a value, determined in accordance with Section 5-12
22of this Act, sufficient to provide good and ample security for
23the loan;
24    (2) With a fee simple title or a leasehold title of not

 

 

HB5938- 40 -LRB098 18594 HLH 53735 b

1less duration than 10 years beyond the maturity of the loan;
2    (3) With the title established by such evidence of title as
3is consistent with sound lending practices in the locality;
4    (4) With the security interest in such real estate
5evidenced by an appropriate written instrument and the loan
6evidenced by a note, bond or similar written instrument. A loan
7on the security of the whole of the beneficial interest in a
8land trust satisfies the requirements of this paragraph if the
9title to the land is held by a corporate trustee and if the
10real estate held in the land trust meets the other requirements
11of this subsection; and
12    (5) With a mortgage loan not to exceed 40 years;
13    (c) For the purpose of repair, improvement,
14rehabilitation, furnishing or equipment of real estate or any
15other purpose;
16    (d) For the purpose of financing or refinancing an existing
17ownership interest in certificates of stock, certificates of
18beneficial interest or other evidence of an ownership interest
19in, and 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 such
22certificates or other evidence of ownership of the borrower;
23    (e) Through the purchase of loans which at the time of
24purchase the association could make in accordance with this
25Section and the by-laws;
26    (f) Through the purchase of installment contracts for the

 

 

HB5938- 41 -LRB098 18594 HLH 53735 b

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

 

 

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1pursuant to the terms of this Act; and
2    (k) Any provision of this Act to the contrary
3notwithstanding, any association may make any loan to its
4members or investment which such association could make if it
5were incorporated and operating as an association organized
6under the laws of the United States.
7(Source: P.A. 86-137.)
 
8    Section 10-35. The Savings Bank Act is amended by changing
9Sections 6002 and 6008 as follows:
 
10    (205 ILCS 205/6002)  (from Ch. 17, par. 7306-2)
11    Sec. 6002. Investment in loans.
12    (a) Subject to the regulations of the Commissioner, a
13savings bank may loan funds as follows:
14    (1) On the security of deposit accounts, but no such loan
15shall exceed the withdrawal value of the pledged account.
16    (2) On the security of real estate:
17        (A) of a value, determined in accordance with this Act,
18    sufficient to provide good and ample security for the loan;
19        (B) with a fee simple title or a leasehold title;
20        (C) with the title established by evidence of title as
21    is consistent with sound lending practices in the locality;
22        (D) with the security interest in the real estate
23    evidenced by an appropriate written instrument and the loan
24    evidenced by a note, bond, or similar written instrument; a

 

 

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

 

 

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1    (8) Subject to regulations adopted by the Commissioner,
2through secured or unsecured loans for business, corporate,
3commercial, or agricultural purposes; provided that the total
4of all loans granted under this paragraph shall not exceed 15%
5of the savings bank's total assets unless a greater amount is
6authorized in writing by the Commissioner.
7    (9) For the purpose of manufactured mobile home financing
8subject, however, to the regulation of the Commissioner. As
9used in this Section, "manufactured home" means a manufactured
10home as defined in subdivision (53) of Section 9-102 of the
11Uniform Commercial Code.
12    (10) Through loans secured by the cash surrender value of
13any life insurance policy or any collateral that would be a
14legal investment under the terms of this Act if made by the
15savings bank.
16    (11) Any provision of this Act or any other law, except for
17paragraph (18) of Section 6003, to the contrary
18notwithstanding, but subject to the Financial Institutions
19Insurance Sales Law and subject to the Commissioner's
20regulations, any savings bank may make any loan or investment
21or engage in any activity that it could make or engage in if it
22were organized under State law as a savings and loan
23association or under federal law as a federal savings and loan
24association or federal savings bank.
25    (12) A savings bank may issue letters of credit or other
26similar arrangements only as provided for by regulation of the

 

 

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1Commissioner with regard to aggregate amounts permitted, take
2out commitments for stand-by letters of credit, underlying
3documentation and underwriting, legal limitations on loans of
4the savings bank, control and subsidiary records, and other
5procedures deemed necessary by the Commissioner.
6    (13) For the purpose of automobile financing, subject to
7the regulation of the Commissioner.
8    (14) For the purpose of financing primary, secondary,
9undergraduate, or postgraduate education.
10    (15) Through revolving lines of credit on the security of a
11first or junior lien on the borrower's personal residence,
12based primarily on the borrower's equity, the proceeds of which
13may be used for any purpose; those loans being commonly
14referred to as home equity loans.
15    (16) As secured or unsecured credit to cover the payment of
16checks, drafts, or other funds transfer orders in excess of the
17available balance of an account on which they are drawn,
18subject to the regulations of the Commissioner.
19    (b) For purposes of this Section, "real estate" includes a
20manufactured home as defined in subdivision (53) of Section
219-102 of the Uniform Commercial Code which is real property as
22defined in Section 5-35 of the Conveyance and Encumbrance of
23Manufactured Homes as Real Property and Severance Act.
24(Source: P.A. 90-301, eff. 8-1-97; 91-97, eff. 7-9-99.)
 
25    (205 ILCS 205/6008)  (from Ch. 17, par. 7306-8)

 

 

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1    Sec. 6008. Purchase of real estate at forced sale. A
2savings bank may purchase at any sheriff's or other judicial
3sale, either public or private, any real estate upon which the
4savings bank has any mortgage, lien or other encumbrance, or in
5which the savings bank has any other interest. The savings bank
6thereafter may repair, insure, improve, sell, convey, lease,
7preserve, mortgage, exchange, or otherwise dispose of real
8estate so acquired in the best interests of the savings bank.
9For purposes of this Section, "real estate" includes a
10manufactured home as defined in subdivision (53) of Section
119-102 of the Uniform Commercial Code which is real property as
12defined in Section 5-35 of the Conveyance and Encumbrance of
13Manufactured Homes as Real Property and Severance Act.
14(Source: P.A. 86-1213.)
 
15    Section 10-40. The Illinois Credit Union Act is amended by
16changing Sections 46 and 46.1 as follows:
 
17    (205 ILCS 305/46)  (from Ch. 17, par. 4447)
18    Sec. 46. Loans and interest rate.
19    (1) A credit union may make loans to its members for such
20purpose and upon such security and terms, including rates of
21interest, as the credit committee, credit manager, or loan
22officer approves. Notwithstanding the provisions of any other
23law in connection with extensions of credit, a credit union may
24elect to contract for and receive interest and fees and other

 

 

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

 

 

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1collected pursuant to such contract or loan, or pursuant to any
2regulation or rule promulgated pursuant to this Act, may not be
3computed, calculated, charged or collected for any period of
4time occurring after the date on which the total indebtedness,
5with the exception of late payment penalties, is paid in full.
6    For purposes of this subsection (2) of this Section 46, a
7prepayment shall mean the payment of the total indebtedness,
8with the exception of late payment penalties if incurred or
9charged, on any date before the date specified in the contract
10or loan agreement on which the total indebtedness shall be paid
11in full, or before the date on which all payments, if timely
12made, shall have been made. In the event of a prepayment of the
13indebtedness which is made on a date after the date on which
14interest on the indebtedness was last computed, calculated,
15charged, or collected but before the next date on which
16interest on the indebtedness was to be calculated, computed,
17charged, or collected, the lender may calculate, charge and
18collect interest on the indebtedness for the period which
19elapsed between the date on which the prepayment is made and
20the date on which interest on the indebtedness was last
21computed, calculated, charged or collected at a rate equal to
221/360 of the annual rate for each day which so elapsed, which
23rate shall be applied to the indebtedness outstanding as of the
24date of prepayment. The lender shall refund to the borrower any
25interest charged or collected which exceeds that which the
26lender may charge or collect pursuant to the preceding

 

 

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1sentence. The provisions of this amendatory Act of 1985 shall
2apply only to contracts or loans entered into on or after the
3effective date of this amendatory Act.
4    (3) Notwithstanding any other provision of this Act, a
5credit union authorized under this Act to make loans secured by
6an interest or equity in real estate may engage in making
7"reverse mortgage" loans to persons for the purpose of making
8home improvements or repairs, paying insurance premiums or
9paying real estate taxes on the homestead properties of such
10persons. If made, such loans shall be made on such terms and
11conditions as the credit union shall determine and as shall be
12consistent with the provisions of this Section and such rules
13and regulations as the Secretary shall promulgate hereunder.
14For purposes of this Section, a "reverse mortgage" loan shall
15be a loan extended on the basis of existing equity in homestead
16property and secured by a mortgage on such property. Such loans
17shall be repaid upon the sale of the property or upon the death
18of the owner or, if the property is in joint tenancy, upon the
19death of the last surviving joint tenant who had such an
20interest in the property at the time the loan was initiated,
21provided, however, that the credit union and its member may by
22mutual agreement, establish other repayment terms. A credit
23union, in making a "reverse mortgage" loan, may add deferred
24interest to principal or otherwise provide for the charging of
25interest or premiums on such deferred interest. "Homestead"
26property, for purposes of this Section, means the domicile and

 

 

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1contiguous real estate owned and occupied by the mortgagor.
2    (4) Notwithstanding any other provisions of this Act, a
3credit union authorized under this Act to make loans secured by
4an interest or equity in real property may engage in making
5revolving credit loans secured by mortgages or deeds of trust
6on such real property or by security assignments of beneficial
7interests in land trusts.
8    For purposes of this Section, "revolving credit" has the
9meaning defined in Section 4.1 of the Interest Act.
10    Any mortgage or deed of trust given to secure a revolving
11credit loan may, and when so expressed therein shall, secure
12not only the existing indebtedness but also such future
13advances, whether such advances are obligatory or to be made at
14the option of the lender, or otherwise, as are made within
15twenty years from the date thereof, to the same extent as if
16such future advances were made on the date of the execution of
17such mortgage or deed of trust, although there may be no
18advance made at the time of execution of such mortgage or other
19instrument, and although there may be no indebtedness
20outstanding at the time any advance is made. The lien of such
21mortgage or deed of trust, as to third persons without actual
22notice thereof, shall be valid as to all such indebtedness and
23future advances form the time said mortgage or deed of trust is
24filed for record in the office of the recorder of deeds or the
25registrar of titles of the county where the real property
26described therein is located. The total amount of indebtedness

 

 

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1that may be so secured may increase or decrease from time to
2time, but the total unpaid balance so secured at any one time
3shall not exceed a maximum principal amount which must be
4specified in such mortgage or deed of trust, plus interest
5thereon, and any disbursements made for the payment of taxes,
6special assessments, or insurance on said real property, with
7interest on such disbursements.
8    Any such mortgage or deed of trust shall be valid and have
9priority over all subsequent liens and encumbrances, including
10statutory liens, except taxes and assessments levied on said
11real property.
12    (4-5) For purposes of this Section, "real estate" and "real
13property" include a manufactured home as defined in subdivision
14(53) of Section 9-102 of the Uniform Commercial Code which is
15real property as defined in Section 5-35 of the Conveyance and
16Encumbrance of Manufactured Homes as Real Property and
17Severance Act.
18    (5) Compliance with federal or Illinois preemptive laws or
19regulations governing loans made by a credit union chartered
20under this Act shall constitute compliance with this Act.
21    (6) Credit unions may make residential real estate mortgage
22loans on terms and conditions established by the United States
23Department of Agriculture through its Rural Development
24Housing and Community Facilities Program. The portion of any
25loan in excess of the appraised value of the real estate shall
26be allocable only to the guarantee fee required under the

 

 

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1program.
2(Source: P.A. 96-141, eff. 8-7-09; 97-133, eff. 1-1-12.)
 
3    (205 ILCS 305/46.1)  (from Ch. 17, par. 4447.1)
4    Sec. 46.1. Non-recourse reverse mortgage loans. Any credit
5union authorized under this Act to make loans secured by an
6interest or equity in real estate may make non-recourse reverse
7mortgage loans as provided in Section 6.1 of the Illinois
8Banking Act.
9    For purposes of this Section, "real estate" includes a
10manufactured home as defined in subdivision (53) of Section
119-102 of the Uniform Commercial Code that is real property as
12defined in Section 5-35 of the Conveyance and Encumbrance of
13Manufactured Homes as Real Property and Severance Act.
14(Source: P.A. 87-488.)
 
15    Section 10-45. The Residential Mortgage License Act of 1987
16is amended by changing Section 1-4 as follows:
 
17    (205 ILCS 635/1-4)
18    Sec. 1-4. Definitions.
19    (a) "Residential real property" or "residential real
20estate" shall mean any real property located in Illinois, upon
21which is constructed or intended to be constructed a dwelling.
22Those terms include a manufactured home as defined in
23subdivision (53) of Section 9-102 of the Uniform Commercial

 

 

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1Code which is real property as defined in Section 5-35 of the
2Conveyance and Encumbrance of Manufactured Homes as Real
3Property and Severance Act.
4    (b) "Making a residential mortgage loan" or "funding a
5residential mortgage loan" shall mean for compensation or gain,
6either directly or indirectly, advancing funds or making a
7commitment to advance funds to a loan applicant for a
8residential mortgage loan.
9    (c) "Soliciting, processing, placing, or negotiating a
10residential mortgage loan" shall mean for compensation or gain,
11either directly or indirectly, accepting or offering to accept
12an application for a residential mortgage loan, assisting or
13offering to assist in the processing of an application for a
14residential mortgage loan on behalf of a borrower, or
15negotiating or offering to negotiate the terms or conditions of
16a residential mortgage loan with a lender on behalf of a
17borrower including, but not limited to, the submission of
18credit packages for the approval of lenders, the preparation of
19residential mortgage loan closing documents, including a
20closing in the name of a broker.
21    (d) "Exempt person or entity" shall mean the following:
22        (1) (i) Any banking organization or foreign banking
23    corporation licensed by the Illinois Commissioner of Banks
24    and Real Estate or the United States Comptroller of the
25    Currency to transact business in this State; (ii) any
26    national bank, federally chartered savings and loan

 

 

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1    association, federal savings bank, federal credit union;
2    (iii) any pension trust, bank trust, or bank trust company;
3    (iv) any bank, savings and loan association, savings bank,
4    or credit union organized under the laws of this or any
5    other state; (v) any Illinois Consumer Installment Loan Act
6    licensee; (vi) any insurance company authorized to
7    transact business in this State; (vii) any entity engaged
8    solely in commercial mortgage lending; (viii) any service
9    corporation of a savings and loan association or savings
10    bank organized under the laws of this State or the service
11    corporation of a federally chartered savings and loan
12    association or savings bank having its principal place of
13    business in this State, other than a service corporation
14    licensed or entitled to reciprocity under the Real Estate
15    License Act of 2000; or (ix) any first tier subsidiary of a
16    bank, the charter of which is issued under the Illinois
17    Banking Act by the Illinois Commissioner of Banks and Real
18    Estate, or the first tier subsidiary of a bank chartered by
19    the United States Comptroller of the Currency and that has
20    its principal place of business in this State, provided
21    that the first tier subsidiary is regularly examined by the
22    Illinois Commissioner of Banks and Real Estate or the
23    Comptroller of the Currency, or a consumer compliance
24    examination is regularly conducted by the Federal Reserve
25    Board.
26        (1.5) Any employee of a person or entity mentioned in

 

 

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1    item (1) of this subsection, when acting for such person or
2    entity, or any registered mortgage loan originator when
3    acting for an entity described in subsection (tt) of this
4    Section.
5        (1.8) Any person or entity that does not originate
6    mortgage loans in the ordinary course of business, but
7    makes or acquires residential mortgage loans with his or
8    her own funds for his or her or its own investment without
9    intent to make, acquire, or resell more than 3 residential
10    mortgage loans in any one calendar year.
11        (2) (Blank).
12        (3) Any person employed by a licensee to assist in the
13    performance of the residential mortgage licensee's
14    activities regulated by this Act who is compensated in any
15    manner by only one licensee.
16        (4) (Blank).
17        (5) Any individual, corporation, partnership, or other
18    entity that originates, services, or brokers residential
19    mortgage loans, as these activities are defined in this
20    Act, and who or which receives no compensation for those
21    activities, subject to the Commissioner's regulations and
22    the federal Secure and Fair Enforcement for Mortgage
23    Licensing Act of 2008 and the rules promulgated under that
24    Act with regard to the nature and amount of compensation.
25        (6) (Blank).
26    (e) "Licensee" or "residential mortgage licensee" shall

 

 

HB5938- 56 -LRB098 18594 HLH 53735 b

1mean a person, partnership, association, corporation, or any
2other entity who or which is licensed pursuant to this Act to
3engage in the activities regulated by this Act.
4    (f) "Mortgage loan" "residential mortgage loan" or "home
5mortgage loan" shall mean any loan primarily for personal,
6family, or household use that is secured by a mortgage, deed of
7trust, or other equivalent consensual security interest on a
8dwelling as defined in Section 103(v) of the federal Truth in
9Lending Act, or residential real estate upon which is
10constructed or intended to be constructed a dwelling.
11    (g) "Lender" shall mean any person, partnership,
12association, corporation, or any other entity who either lends
13or invests money in residential mortgage loans.
14    (h) "Ultimate equitable owner" shall mean a person who,
15directly or indirectly, owns or controls an ownership interest
16in a corporation, foreign corporation, alien business
17organization, trust, or any other form of business organization
18regardless of whether the person owns or controls the ownership
19interest through one or more persons or one or more proxies,
20powers of attorney, nominees, corporations, associations,
21partnerships, trusts, joint stock companies, or other entities
22or devices, or any combination thereof.
23    (i) "Residential mortgage financing transaction" shall
24mean the negotiation, acquisition, sale, or arrangement for or
25the offer to negotiate, acquire, sell, or arrange for, a
26residential mortgage loan or residential mortgage loan

 

 

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1commitment.
2    (j) "Personal residence address" shall mean a street
3address and shall not include a post office box number.
4    (k) "Residential mortgage loan commitment" shall mean a
5contract for residential mortgage loan financing.
6    (l) "Party to a residential mortgage financing
7transaction" shall mean a borrower, lender, or loan broker in a
8residential mortgage financing transaction.
9    (m) "Payments" shall mean payment of all or any of the
10following: principal, interest and escrow reserves for taxes,
11insurance and other related reserves, and reimbursement for
12lender advances.
13    (n) "Commissioner" shall mean the Commissioner of Banks and
14Real Estate, except that, beginning on April 6, 2009 (the
15effective date of Public Act 95-1047), all references in this
16Act to the Commissioner of Banks and Real Estate are deemed, in
17appropriate contexts, to be references to the Secretary of
18Financial and Professional Regulation, or his or her designee,
19including the Director of the Division of Banking of the
20Department of Financial and Professional Regulation.
21    (n-1) "Director" shall mean the Director of the Division of
22Banking of the Department of Financial and Professional
23Regulation, except that, beginning on July 31, 2009 (the
24effective date of Public Act 96-112), all references in this
25Act to the Director are deemed, in appropriate contexts, to be
26the Secretary of Financial and Professional Regulation, or his

 

 

HB5938- 58 -LRB098 18594 HLH 53735 b

1or her designee, including the Director of the Division of
2Banking of the Department of Financial and Professional
3Regulation.
4    (o) "Loan brokering", "brokering", or "brokerage service"
5shall mean the act of helping to obtain from another entity,
6for a borrower, a loan secured by residential real estate
7situated in Illinois or assisting a borrower in obtaining a
8loan secured by residential real estate situated in Illinois in
9return for consideration to be paid by either the borrower or
10the lender including, but not limited to, contracting for the
11delivery of residential mortgage loans to a third party lender
12and soliciting, processing, placing, or negotiating
13residential mortgage loans.
14    (p) "Loan broker" or "broker" shall mean a person,
15partnership, association, corporation, or limited liability
16company, other than those persons, partnerships, associations,
17corporations, or limited liability companies exempted from
18licensing pursuant to Section 1-4, subsection (d), of this Act,
19who performs the activities described in subsections (c), (o),
20and (yy) of this Section.
21    (q) "Servicing" shall mean the collection or remittance for
22or the right or obligation to collect or remit for any lender,
23noteowner, noteholder, or for a licensee's own account, of
24payments, interests, principal, and trust items such as hazard
25insurance and taxes on a residential mortgage loan in
26accordance with the terms of the residential mortgage loan; and

 

 

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

 

 

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1government-insured mortgage loans secured by residential real
2estate situated in Illinois from either the lender or from the
3secondary market.
4    (t) "Borrower" shall mean the person or persons who seek
5the services of a loan broker, originator, or lender.
6    (u) "Originating" shall mean the issuing of commitments for
7and funding of residential mortgage loans.
8    (v) "Loan brokerage agreement" shall mean a written
9agreement in which a broker or loan broker agrees to do either
10of the following:
11        (1) obtain a residential mortgage loan for the borrower
12    or assist the borrower in obtaining a residential mortgage
13    loan; or
14        (2) consider making a residential mortgage loan to the
15    borrower.
16    (w) "Advertisement" shall mean the attempt by publication,
17dissemination, or circulation to induce, directly or
18indirectly, any person to enter into a residential mortgage
19loan agreement or residential mortgage loan brokerage
20agreement relative to a mortgage secured by residential real
21estate situated in Illinois.
22    (x) "Residential Mortgage Board" shall mean the
23Residential Mortgage Board created in Section 1-5 of this Act.
24    (y) "Government-insured mortgage loan" shall mean any
25mortgage loan made on the security of residential real estate
26insured by the Department of Housing and Urban Development or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    "Mortgage loan originator" does not include a person or
2entity that only performs real estate brokerage activities and
3is licensed in accordance with the Real Estate License Act of
42000, unless the person or entity is compensated by a lender, a
5mortgage broker, or other mortgage loan originator, or by any
6agent of that lender, mortgage broker, or other mortgage loan
7originator.
8    "Mortgage loan originator" does not include a person or
9entity solely involved in extensions of credit relating to
10timeshare plans, as that term is defined in Section 101(53D) of
11Title 11, United States Code.
12    (kk) "Depository institution" has the same meaning as in
13Section 3 of the Federal Deposit Insurance Act, and includes
14any credit union.
15    (ll) "Dwelling" means a residential structure or mobile
16home which contains one to 4 family housing units, or
17individual units of condominiums or cooperatives.
18    (mm) "Immediate family member" means a spouse, child,
19sibling, parent, grandparent, or grandchild, and includes
20step-parents, step-children, step-siblings, or adoptive
21relationships.
22    (nn) "Individual" means a natural person.
23    (oo) "Loan processor or underwriter" means an individual
24who performs clerical or support duties as an employee at the
25direction of and subject to the supervision and instruction of
26a person licensed, or exempt from licensing, under this Act.

 

 

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1"Clerical or support duties" includes subsequent to the receipt
2of an application:
3        (i) the receipt, collection, distribution, and
4    analysis of information common for the processing or
5    underwriting of a residential mortgage loan; and
6        (ii) communicating with a consumer to obtain the
7    information necessary for the processing or underwriting
8    of a loan, to the extent that the communication does not
9    include offering or negotiating loan rates or terms, or
10    counseling consumers about residential mortgage loan rates
11    or terms. An individual engaging solely in loan processor
12    or underwriter activities shall not represent to the
13    public, through advertising or other means of
14    communicating or providing information, including the use
15    of business cards, stationery, brochures, signs, rate
16    lists, or other promotional items, that the individual can
17    or will perform any of the activities of a mortgage loan
18    originator.
19    (pp) "Nationwide Mortgage Licensing System and Registry"
20means a mortgage licensing system developed and maintained by
21the Conference of State Bank Supervisors and the American
22Association of Residential Mortgage Regulators for the
23licensing and registration of licensed mortgage loan
24originators.
25    (qq) "Nontraditional mortgage product" means any mortgage
26product other than a 30-year fixed rate mortgage.

 

 

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

 

 

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1                (i) owned and controlled by a depository
2            institution; and
3                (ii) regulated by a federal banking agency; or
4            (C) an institution regulated by the Farm Credit
5        Administration; and
6        (2) is registered with, and maintains a unique
7    identifier through, the Nationwide Mortgage Licensing
8    System and Registry.
9    (uu) "Unique identifier" means a number or other identifier
10assigned by protocols established by the Nationwide Mortgage
11Licensing System and Registry.
12    (vv) "Residential mortgage license" means a license issued
13pursuant to Section 1-3, 2-2, or 2-6 of this Act.
14    (ww) "Mortgage loan originator license" means a license
15issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act.
16    (xx) "Secretary" means the Secretary of the Department of
17Financial and Professional Regulation, or a person authorized
18by the Secretary or by this Act to act in the Secretary's
19stead.
20    (yy) "Loan modification" means, for compensation or gain,
21either directly or indirectly offering or negotiating on behalf
22of a borrower or homeowner to adjust the terms of a residential
23mortgage loan in a manner not provided for in the original or
24previously modified mortgage loan.
25    (zz) "Short sale facilitation" means, for compensation or
26gain, either directly or indirectly offering or negotiating on

 

 

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1behalf of a borrower or homeowner to facilitate the sale of
2residential real estate subject to one or more residential
3mortgage loans or debts constituting liens on the property in
4which the proceeds from selling the residential real estate
5will fall short of the amount owed and the lien holders are
6contacted to agree to release their lien on the residential
7real estate and accept less than the full amount owed on the
8debt.
9(Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10;
1096-1216, eff. 1-1-11; 97-143, eff. 7-14-11; 97-891, eff.
118-3-12.)
 
12    Section 10-50. The Mobile Home Park Act is amended by
13changing Section 2.1 as follows:
 
14    (210 ILCS 115/2.1)  (from Ch. 111 1/2, par. 712.1)
15    Sec. 2.1. "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

 

 

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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 term "mobile home" shall
13not include modular homes and their support systems. The words
14"mobile home" and "manufactured home" are synonymous for the
15purposes of this Act.
16(Source: P.A. 96-1477, eff. 1-1-11.)
 
17    Section 10-55. The Abandoned Mobile Home Act is amended by
18changing Section 10 as follows:
 
19    (210 ILCS 117/10)
20    Sec. 10. Definitions. As used in this Act:
21    "Manufactured home" means a factory-assembled, completely
22integrated structure designed for permanent habitation, with a
23permanent chassis, and so constructed as to permit its
24transport, on wheels temporarily or permanently attached to its

 

 

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1frame, and is a movable or portable unit that is (i) 8 body
2feet or more in width, (ii) 40 body feet or more in length, and
3(iii) 320 or more square feet, constructed to be towed on its
4own chassis (comprised of frame and wheels) from the place of
5its construction to the location, or subsequent locations, at
6which it is installed and set up according to the
7manufacturer's instructions and connected to utilities for
8year-round occupancy for use as a permanent habitation, and
9designed and situated so as to permit its occupancy as a
10dwelling place for one or more persons, and specifically
11includes a "manufactured home" as defined in subdivision (53)
12of Section 9-102 of the Uniform Commercial Code. The term shall
13include units containing parts that may be folded, collapsed,
14or telescoped when being towed and that may be expected to
15provide additional cubic capacity, and that are designed to be
16joined into one integral unit capable of being separated again
17into the components for repeated towing. The term excludes
18campers and recreational vehicles. The words "mobile home" and
19"manufactured home" are synonymous for the purposes of this
20Act.
21    "Abandoned mobile home" means a mobile home located inside
22a mobile home park that has no owner currently residing in the
23mobile home or authorized tenant of the owner currently
24residing in the mobile home to the best knowledge of the
25municipality; has had its electricity, natural gas, sewer, and
26water payments declared delinquent by the utility companies

 

 

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1that are providing such services; and for which the Mobile Home
2Privilege Tax, imposed under the Mobile Home Local Services Tax
3Act, is delinquent for at least 3 months. A mobile home
4abandoned outside a mobile home park must be treated like other
5real property for condemnation purposes.
6    "Municipality" means any city, village, incorporated town,
7or its duly authorized agent. If an abandoned mobile home is
8located in an unincorporated area, the county where the mobile
9home is located shall have all powers granted to a municipality
10under this Act.
11(Source: P.A. 96-1477, eff. 1-1-11.)
 
12    Section 10-60. The Illinois Manufactured Housing and
13Mobile Home Safety Act is amended by changing Section 2 as
14follows:
 
15    (430 ILCS 115/2)  (from Ch. 67 1/2, par. 502)
16    Sec. 2. Unless clearly indicated otherwise by the context,
17the following words and terms when used in this Act, for the
18purpose of this Act, shall have the following meanings:
19    (a) "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

 

 

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1being separated again into the components for repeated towing.
2The terms "mobile home" and "manufactured home" exclude term
3excludes campers and recreational vehicles. The terms "mobile
4home" and "manufactured home" do not include modular homes or
5manufactured housing units.
6    (b) "Person" means a person, partnership, corporation, or
7other legal entity.
8    (c) "Manufacturer" means any person who manufactures
9mobile homes or manufactured housing at the place or places,
10either on or away from the building site, at which machinery,
11equipment and other capital goods are assembled and operated
12for the purpose of making, fabricating, forming or assembling
13mobile homes or manufactured housing.
14    (d) "Department" means the Department of Public Health.
15    (e) "Director" means the Director of the Department of
16Public Health.
17    (f) "Dealer" means any person, other than a manufacturer,
18as defined in this Act, who sells 3 or more mobile homes or
19manufactured housing units in any consecutive 12-month period.
20    (g) "Codes" means the safety codes for manufactured housing
21and mobile homes promulgated by the Department. The Codes shall
22contain the standards and requirements for manufactured
23housing and mobile homes so that adequate performance for the
24intended use is made the test of acceptability. The Code of
25Standards shall permit the use of new and used technology,
26techniques, methods and materials, for both manufactured

 

 

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1housing and mobile homes, consistent with recognized and
2accepted codes and standards developed by the International
3Code Council (ICC) or by the organizations that formed the ICC
4in 1994: Building Officials and Code Administrators, the
5International Conference of Building Officials, the Southern
6Building Codes Congress International, the National Fire
7Protection Association, the International Association of
8Plumbing and Mechanical Officials, the American National
9Standards Institute, the Illinois State Plumbing Code, and the
10United States Department of Housing and Urban Development,
11hereinafter referred to as "HUD", applying to manufactured
12housing and mobile homes installed and set up according to the
13manufacturer's instructions. A copy of said safety codes,
14including said revisions thereof is on file with the
15Department.
16    (h) "Seal" means a device or insignia issued by the
17Department to be displayed on the exterior of the mobile home
18or the interior of a manufactured housing unit or modular home
19to evidence compliance with the applicable safety code.
20    (i) "Modular home" means a building assembly or system of
21building sub-assemblies, designed for habitation as a dwelling
22for one or more persons, including the necessary electrical,
23plumbing, heating, ventilating and other service systems,
24which is of closed or open construction and which is made or
25assembled by a manufacturer, on or off the building site, for
26installation, or assembly and installation, on the building

 

 

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1site, installed and set up according to the manufacturer's
2instructions on an approved foundation and support system. The
3construction of modular dwelling units located in Illinois is
4regulated by the Illinois Department of Public Health.
5    (j) "Closed construction" is any building, component,
6assembly or system manufactured in such a manner that all
7portions cannot readily be inspected at the installation site
8without disassembly, damage to, or destruction thereof.
9    (k) "Open construction" is any building, component,
10assembly or system manufactured in such a manner that all
11portions can be readily inspected at the installation site
12without disassembly, damage to, or destruction thereof.
13    (l) "Approved foundation and support system" means, for a
14modular home or modular dwelling unit, a closed perimeter
15formation consisting of materials such as concrete, mortared
16concrete block, or mortared brick extending into the ground
17below the frost line which shall include, but not necessarily
18be limited to, cellars, basements, or crawl spaces, and does
19include the use of piers supporting the marriage wall of the
20home that extend below the frost line.
21    (m) "Code compliance certificate" means the certificate
22provided by the manufacturer to the Department that warrants
23that the manufactured housing unit or mobile home complies with
24the applicable code.
25    (n) "Manufactured housing", "manufactured housing unit",
26"modular dwelling", and "modular home" shall not be confused

 

 

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1with "manufactured home" or "mobile home".
2(Source: P.A. 96-1477, eff. 1-1-11.)
 
3    Section 10-65. The Manufactured Home Quality Assurance Act
4is amended by changing Section 10 as follows:
 
5    (430 ILCS 117/10)
6    Sec. 10. Definitions. In this Act:
7    "Department" means the Illinois Department of Public
8Health.
9    "Licensed installer" means a person who has successfully
10completed a manufactured home installation course approved by
11the Department and paid the required fees.
12    "Manufactured home" means a "manufactured home", as
13defined in subdivision (53) of Section 9-102 of the Uniform
14Commercial Code. "Mobile home" means a factory-assembled,
15completely integrated structure, constructed on or before June
1630, 1976, designed for permanent habitation, with a permanent
17chassis, and so constructed as to permit its transport, on
18wheels temporarily or permanently attached to its frame, that
19is a movable or portable unit that is constructed to be towed
20on its own chassis (comprised of frame and wheels) from the
21place of its construction to the location, or subsequent
22locations, at which it is connected to utilities for year-round
23occupancy for use as a permanent habitation, and designed and
24situated so as to permit its occupancy as a dwelling place for

 

 

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

 

 

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1modular home.
2    "Mobile home park" means a tract of land or 2 contiguous
3tracts of land that contain sites with the necessary utilities
4for 5 or more mobile homes or manufactured homes. A mobile home
5park may be operated either free of charge or for revenue
6purposes.
7(Source: P.A. 96-1477, eff. 1-1-11.)
 
8    Section 10-70. The Illinois Vehicle Code is amended by
9changing Sections 3-100, 3-102, 3-103, 3-104, 3-106, 3-107,
103-109, 3-110, 3-116, 3-202, 3-205, 3-207, and 3-208 and by
11adding Sections 1-144.03, 3-116.1, 3-116.2, and 3-116.3 as
12follows:
 
13    (625 ILCS 5/1-144.03 new)
14    Sec. 1-144.03. Mobile home or manufactured home. A mobile
15home or manufactured home means a manufactured home as defined
16in subdivision (53) of Section 9-102 of the Uniform Commercial
17Code.
 
18    (625 ILCS 5/3-100)  (from Ch. 95 1/2, par. 3-100)
19    Sec. 3-100. Definitions. For the purposes of this Chapter,
20the following words shall have the meanings ascribed to them:
21    "Electronic" includes electrical, digital, magnetic,
22optical, electromagnetic, or any other form of technology that
23entails capabilities similar to these technologies.

 

 

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

 

 

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1intent to authenticate a record.
2    "Vehicle" means a vehicle as defined in Section 1-217 of
3this Code. Unless otherwise specified, "vehicle" also means a
4"manufactured home" as defined in Section 1-144.03 of this
5Code.
6(Source: P.A. 91-79, eff. 1-1-00; 91-357, eff. 7-29-99; 91-772,
7eff. 1-1-01.)
 
8    (625 ILCS 5/3-102)  (from Ch. 95 1/2, par. 3-102)
9    Sec. 3-102. Exclusions.
10    No certificate of title need be obtained for:
11    1. A vehicle owned by the State of Illinois; or a vehicle
12owned by the United States unless it is registered in this
13State;
14    2. A vehicle owned by a manufacturer or dealer and held for
15sale, even though incidentally moved on the highway or used for
16purposes of testing or demonstration, provided a dealer
17reassignment area is still available on the manufacturer's
18certificate of origin or the Illinois title; or a vehicle used
19by a manufacturer solely for testing;
20    3. A vehicle owned by a non-resident of this State and not
21required by law to be registered in this State;
22    4. A motor vehicle regularly engaged in the interstate
23transportation of persons or property for which a currently
24effective certificate of title has been issued in another
25State;

 

 

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1    5. A vehicle moved solely by animal power;
2    6. An implement of husbandry;
3    7. Special mobile equipment;
4    8. An apportionable trailer or an apportionable
5semitrailer registered in the State prior to April 1, 1998.
6    9. A manufactured home for which an affidavit of affixation
7has been recorded pursuant to the Conveyance and Encumbrance of
8Manufactured Homes as Real Property and Severance Act unless
9with respect to the same manufactured home there has been
10recorded an affidavit of severance pursuant to that Act.
11(Source: P.A. 91-441, eff. 1-1-00.)
 
12    (625 ILCS 5/3-103)  (from Ch. 95 1/2, par. 3-103)
13    Sec. 3-103. Optional certificate of title.
14    (a) The owner of an implement of husbandry or special
15mobile equipment may apply for and obtain a certificate of
16title on it. All of the provisions of this chapter, except part
17(e) of Section 3-104, are applicable to a certificate of title
18so issued, except that a person who receives a transfer of an
19interest in the vehicle without knowledge of the certificate of
20title is not prejudiced by reason of the existence of the
21certificate, and the perfection of a security interest under
22this act is not effective until the lienholder has complied
23with the provisions of applicable law which otherwise relate to
24the perfection of security interests in personal property.
25    An application for an optional certificate of title must be

 

 

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1accompanied by either an exemption determination from the
2Department of Revenue showing that no tax imposed under the
3"Use Tax Act" or the "Retailers' Occupation Tax Act" is owed by
4anyone with respect to that vehicle or by a receipt from the
5Department of Revenue showing that any tax so imposed has been
6paid. No optional certificate of title shall be issued in the
7absence of such a receipt or exemption determination.
8    If the proof of payment or of nonliability is, after the
9issuance of the optional certificate of title, found to be
10invalid, the Secretary of State shall revoke the optional
11certificate of title and require that it be returned to him.
12    (b) The owner of a manufactured home which is affixed to a
13permanent foundation and for which a certificate of title has
14not previously been issued and surrendered for cancellation may
15apply for a certificate of title, including, if applicable, a
16certificate of title issued in accordance with subsection (b)
17of Section 3-109, which shall be issued for the sole purpose of
18(i) surrendering such certificate of title for cancellation in
19accordance with Section 3-116.2 or (ii) satisfying the
20requirements of subdivision (e)(4) of Section 9-334 of the
21Uniform Commercial Code. The Secretary of State shall issue a
22certificate of title, in accordance with this Chapter, upon
23satisfaction of the application requirements of this Code.
24(Source: P.A. 78-1165.)
 
25    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)

 

 

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1    Sec. 3-104. Application for certificate of title.
2    (a) The application for a certificate of title for a
3vehicle in this State must be made by the owner to the
4Secretary of State on the form prescribed and must contain:
5        1. The name, Illinois residence and mail address of the
6    owner;
7        2. A description of the vehicle including, so far as
8    the following data exists: Its make, year-model,
9    identifying number, type of body, whether new or used, as
10    to house trailers as defined in Section 1-128 of this
11    Code,and as to manufactured homes as defined in Section
12    1-144.03 of this Code, the square footage of the house
13    trailer based upon the outside dimensions of the house
14    trailer excluding the length of the tongue and hitch, and,
15    as to vehicles of the second division, whether for-hire,
16    not-for-hire, or both for-hire and not-for-hire;
17        3. The date of purchase by applicant and, if
18    applicable, the name and address of the person from whom
19    the vehicle was acquired and the names and addresses of any
20    lienholders in the order of their priority and signatures
21    of owners;
22        4. The current odometer reading at the time of transfer
23    and that the stated odometer reading is one of the
24    following: actual mileage, not the actual mileage or
25    mileage is in excess of its mechanical limits; and
26        5. Any further information the Secretary of State

 

 

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

 

 

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1applicant.
2    (e) If an application refers to a vehicle rebuilt from a
3vehicle previously salvaged, that application shall comply
4with the provisions set forth in Sections 3-302 through 3-304
5of this Code.
6    (f) An application for a certificate of title for any
7vehicle, whether purchased in Illinois or outside Illinois, and
8even if previously registered in another State, must be
9accompanied by either an exemption determination from the
10Department of Revenue showing that no tax imposed pursuant to
11the Use Tax Act or the vehicle use tax imposed by Section
123-1001 of the Illinois Vehicle Code is owed by anyone with
13respect to that vehicle, or a receipt from the Department of
14Revenue showing that any tax so imposed has been paid. An
15application for a certificate of title for any vehicle
16purchased outside Illinois, even if previously registered in
17another state, must be accompanied by either an exemption
18determination from the Department of Revenue showing that no
19tax imposed pursuant to the Municipal Use Tax Act or the County
20Use Tax Act is owed by anyone with respect to that vehicle, or
21a receipt from the Department of Revenue showing that any tax
22so imposed has been paid. In the absence of such a receipt for
23payment or determination of exemption from the Department, no
24certificate of title shall be issued to the applicant.
25    If the proof of payment of the tax or of nonliability
26therefor is, after the issuance of the certificate of title and

 

 

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1display certificate of title, found to be invalid, the
2Secretary of State shall revoke the certificate and require
3that the certificate of title and, when applicable, the display
4certificate of title be returned to him.
5    (g) If the application refers to a vehicle not manufactured
6in accordance with federal safety and emission standards, the
7application must be accompanied by all documents required by
8federal governmental agencies to meet their standards before a
9vehicle is allowed to be issued title and registration.
10    (h) If the application refers to a vehicle sold at public
11sale by a sheriff, it must be accompanied by the required fee
12and a bill of sale issued and signed by a sheriff. The bill of
13sale must identify the new owner's name and address, the year
14model, make and vehicle identification number of the vehicle,
15court order document number authorizing such sale, if
16applicable, and the name and address of any lienholders in
17order of priority, if applicable.
18    (i) If the application refers to a vehicle for which a
19court of law determined the ownership, it must be accompanied
20with a certified copy of such court order and the required fee.
21The court order must indicate the new owner's name and address,
22the complete description of the vehicle, if known, the name and
23address of the lienholder, if any, and must be signed and dated
24by the judge issuing such order.
25    (j) If the application refers to a vehicle sold at public
26auction pursuant to the Labor and Storage Lien (Small Amount)

 

 

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

 

 

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1trailer, as required by the Secretary of State, (ii) the
2trailer must be inspected by a Secretary of State employee
3prior to the issuance of the title, and (iii) upon approval of
4the Secretary of State, the trailer must have a vehicle
5identification number, as provided by the Secretary of State,
6stamped or riveted to the frame.
7    (m) The holder of a Manufacturer's Statement of Origin to a
8manufactured home may deliver it to any person to facilitate
9conveying or encumbering the manufactured home. Any person
10receiving any such Manufacturer's Statement of Origin so
11delivered holds it in trust for the person delivering it.
12    (n) Within 45 days after the completion of the first retail
13sale of a manufactured home, the Manufacturer's Statement of
14Origin to that manufactured home must be surrendered to the
15Secretary of State either in conjunction with an application
16for a certificate of title for that manufactured home or in
17accordance with Section 3-116.1.
18(Source: P.A. 96-519, eff. 1-1-10; 96-554, eff. 1-1-10;
1996-1000, eff. 7-2-10; 97-918, eff. 1-1-13.)
 
20    (625 ILCS 5/3-106)  (from Ch. 95 1/2, par. 3-106)
21    Sec. 3-106. Certificate of title - Issuance - Records. (a)
22The Secretary of State shall file each application received
23and, when satisfied as to its genuineness and regularity, and
24that no tax imposed by the "Use Tax Act" or the vehicle use
25tax, as imposed by Section 3-1001 of "The Illinois Vehicle

 

 

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1Code", or pursuant to the "Municipal Use Tax Act" or pursuant
2to the "County Use Tax Act" is owed as evidenced by the receipt
3for payment or determination of exemption from the Department
4of Revenue provided for in Section 3-104 of this Act, and that
5the applicant is entitled to the issuance of a certificate of
6title, shall issue a certificate of title of the vehicle.
7    (b) The Secretary of State shall maintain a record of all
8certificates of title issued by him under a distinctive title
9number assigned to the vehicle; and, in the discretion of the
10Secretary of State, in any other method determined.
11    (c) The Secretary of State shall not issue a certificate of
12title, including a certificate of title issued in accordance
13with subsection (b) of Section 3-109, to a manufactured home
14for which there has been recorded an affidavit of affixation
15pursuant to the Conveyance and Encumbrance of Manufactured
16Homes as Real Property and Severance Act unless with respect to
17the same manufactured home there has been recorded an affidavit
18of severance pursuant to the Conveyance and Encumbrance of
19Manufactured Homes as Real Property and Severance Act.
20    (d) The Secretary of State shall file, upon receipt, each
21affidavit of affixation and each affidavit of severance
22relating to a manufactured home that is delivered in accordance
23with the Conveyance and Encumbrance of Manufactured Homes as
24Real Property and Severance Act, when satisfied as to its
25genuineness and regularity.
26    (e) The Secretary of State shall maintain a record of each

 

 

HB5938- 91 -LRB098 18594 HLH 53735 b

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

 

 

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1including a record in the form of a searchable electronic
2database accessible to the public, of each manufactured home
3certificate of title accepted for surrender as provided in
4Section 3-116.2. The record shall state the date the
5certificate of title was accepted for surrender, the name of
6manufacturer, model year, manufacturer's serial number, and
7any other data the Secretary of State prescribes.
8(Source: P.A. 86-444.)
 
9    (625 ILCS 5/3-107)  (from Ch. 95 1/2, par. 3-107)
10    Sec. 3-107. Contents and effect.
11    (a) Each certificate of title issued by the Secretary of
12State shall contain:
13        1. the date issued;
14        2. the name and address of the owner;
15        3. the names and addresses of any lienholders, in the
16    order of priority as shown on the application or, if the
17    application is based on a certificate of title, as shown on
18    the certificate;
19        4. the title number assigned to the vehicle;
20        5. a description of the vehicle including, so far as
21    the following data exists: its make, year-model,
22    identifying number, type of body, whether new or used, as
23    to house trailers as defined in Section 1-128 of this Code,
24    and as to manufactured homes as defined in Section 1-144.03
25    of this Code, the square footage of the vehicle based upon

 

 

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

 

 

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

 

 

HB5938- 95 -LRB098 18594 HLH 53735 b

1bond. If the Secretary of State is not satisfied as to the
2ownership of the vehicle, including but not limited to, in the
3case of a manufactured home, a circumstance in which the
4manufactured home is covered by a Manufacturer's Statement of
5Origin that the owner of the manufactured home, after diligent
6search and inquiry, is unable to produce, or that there are no
7undisclosed security interests in it, the Secretary of State
8may register the vehicle but shall either:
9    (a) Withhold issuance of a certificate of title until the
10applicant presents documents reasonably sufficient to satisfy
11the Secretary of State as to the applicant's ownership of the
12vehicle and that there are no undisclosed security interests in
13it; or
14    (b) As a condition of issuing a certificate of title,
15require the applicant to file with the Secretary of State a
16bond in the form prescribed by the Secretary of State and
17executed by the applicant, and either accompanied by the
18deposit of cash with the Secretary of State or also executed by
19a person authorized to conduct a surety business in this State.
20The bond shall be in an amount equal to one and one-half times
21the value of the vehicle as determined by the Secretary of
22State and conditioned to indemnify any prior owner and
23lienholder and any subsequent purchaser of the vehicle or
24person acquiring any security interest in it, and their
25respective successors in interest, against any expense, loss or
26damage, including reasonable attorney's fees, by reason of the

 

 

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

 

 

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

 

 

HB5938- 98 -LRB098 18594 HLH 53735 b

1    been paid upon reasonable notice and demand.
2    Except as provided in Section 3-116.2, the Secretary of
3State shall not refuse to issue a certificate of title to a
4manufactured home by reason of the fact that, at any time, in
5any manner, it shall have been affixed to real property.
6(Source: P.A. 97-333, eff. 8-12-11.)
 
7    (625 ILCS 5/3-116)  (from Ch. 95 1/2, par. 3-116)
8    Sec. 3-116. When Secretary of State to issue a certificate
9of title.
10    (a) The Secretary of State, upon receipt of a properly
11assigned certificate of title, with an application for a
12certificate of title, the required fee and any other documents
13required by law, shall issue a new certificate of title in the
14name of the transferee as owner and mail it to the first
15lienholder named in it or, if none, to the owner or owner's
16designee.
17    (b) The Secretary of State, upon receipt of an application
18for a new certificate of title by a transferee other than by
19voluntary transfer, with proof of the transfer, the required
20fee and any other documents required by law, shall issue a new
21certificate of title in the name of the transferee as owner.
22    (c) Any person, firm or corporation, who shall knowingly
23possess, buy, sell, exchange or give away, or offer to buy,
24sell, exchange or give away the certificate of title to any
25motor vehicle which is a junk or salvage, or who shall fail to

 

 

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1surrender the certificate of title to the Secretary of State as
2required under the provisions of this Section and Section
33-117.2, shall be guilty of Class 3 felony.
4    (d) The Secretary of State shall file and retain for four
5(4) years a record of every surrendered certificate of title or
6proof of ownership accepted by the Secretary of State, the file
7to be maintained so as to permit the tracing of title of the
8vehicle designated therein. Such filing and retention
9requirements shall be in addition to and not in substitution
10for the recordkeeping requirements set forth in Section 3-106
11of this Code, which recordkeeping requirements are not limited
12to any period of time.
13    (e) The Secretary of State, upon receipt of an application
14for corrected certificate of title, with the original title,
15the required fee and any other required documents, shall issue
16a corrected certificate of title in the name of the owner and
17mail it to the first lienholder named in it or, if none, to the
18owner or owner's designee.
19    (f) The Secretary of State, upon receipt of a certified
20copy of a court order awarding ownership to an applicant along
21with an application for a certificate of title and the required
22fee, shall issue a certificate of title to the applicant.
23(Source: P.A. 90-212, eff. 1-1-98.)
 
24    (625 ILCS 5/3-116.1 new)
25    Sec. 3-116.1. Surrender of Manufacturer's Statement of

 

 

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1Origin to a manufactured home.
2    (a) The owner (all, if more than one) of a manufactured
3home that is covered by a Manufacturer's Statement of Origin
4and that is affixed to a permanent foundation as defined in the
5Conveyance and Encumbrance of Manufactured Homes as Real
6Property and Severance Act, or which the owner intends to affix
7to a permanent foundation as defined in the Conveyance and
8Encumbrance of Manufactured Homes as Real Property and
9Severance Act, may surrender the Manufacturer's Statement of
10Origin to the manufactured home to the Secretary of State by
11filing with the Secretary of State an application for surrender
12of Manufacturer's Statement of Origin containing or
13accompanied by:
14            (1) the name, residence, and mailing address of the
15    owner;
16            (2) a description of the manufactured home
17    including the name of the manufacturer, the make, the model
18    name, the model year, the dimensions, and the vehicle
19    identification number of the manufactured home and whether
20    it is new or used, and any other information the Secretary
21    of State requires;
22            (3) the date of purchase by the owner of the
23    manufactured home, the name and address of the person from
24    whom the home was acquired, and the names and addresses of
25    any security interest holders and lienholders in the order
26    of their apparent priority;

 

 

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

 

 

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

 

 

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1compliance with the provisions of this Section.
 
2    (625 ILCS 5/3-116.2 new)
3    Sec. 3-116.2. Application for surrender of title.
4    (a) The owner (all, if more than one) of a manufactured
5home that is covered by a certificate of title, including, if
6applicable, a certificate of title issued in accordance with
7subsection (b) of Section 3-109, and that is permanently
8affixed to real property as defined in the Conveyance and
9Encumbrance of Manufactured Homes as Real Property and
10Severance Act, or which the owner intends to permanently affix
11to real property as defined in the Conveyance and Encumbrance
12of Manufactured Homes as Real Property and Severance Act, may
13surrender the certificate of title to the manufactured home to
14the Secretary of State by filing with the Secretary of State an
15application for surrender of title containing or accompanied
16by:
17        (1) the name, residence, and mailing address of the
18    owner;
19        (2) a description of the manufactured home including
20    the name of the manufacturer, the make, the model name, the
21    model year, the dimensions, and the vehicle identification
22    number or numbers of the manufactured home and whether it
23    is new or used and any other information the Secretary of
24    State requires;
25        (3) the date of purchase by the owner of the

 

 

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

 

 

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1    security interests in or liens on the manufactured home.
2    (b) The Secretary of State shall not accept for surrender a
3certificate of title to a manufactured home unless and until
4all security interests or liens perfected pursuant to Sections
53-106 and 3-202 have been released.
6    (c) When satisfied as to the genuineness and regularity of
7the surrender of a certificate of title to a manufactured home,
8payment of any applicable fees and upon satisfaction of the
9requirements of subsections (a) and (b) of this Section, the
10Secretary of State shall (i) cancel the certificate of title
11and update his or her records in accordance with the provisions
12of Section 3-106 and (ii) provide written acknowledgment of
13compliance with the provisions of this Section to each person
14identified on the application for surrender of title pursuant
15to subsection (a)(7) of this Section.
16    (d) Upon satisfaction of the requirements of this Section,
17a manufactured home shall be conveyed and encumbered as
18provided in the Conveyance and Encumbrance of Manufactured
19Homes as Real Property and Severance Act. If the application to
20surrender a certificate of title is delivered to the Secretary
21of State within 60 days of recording the related affidavit of
22affixation with the recording officer in the county in which
23the real property to which the manufactured home is or shall be
24affixed, and the application is thereafter accepted by the
25Secretary of State, the requirements of this Section shall be
26deemed satisfied as of the date the affidavit of affixation is

 

 

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1recorded.
2    (e) Upon written request by a person identified on the
3application for surrender of title pursuant to subsection
4(a)(7) of this Section, the Secretary of State shall provide
5written acknowledgment of compliance with the provisions of
6this Section.
 
7    (625 ILCS 5/3-116.3 new)
8    Sec. 3-116.3. Application for a certificate of title to a
9severed manufactured home.
10    (a) Notwithstanding any other provision of law, where a
11manufactured home has been affixed to a permanent foundation,
12and an affidavit of affixation has been recorded as part of the
13real property records in the county in which the manufactured
14home is located in accordance with the Conveyance and
15Encumbrance of Manufactured Homes as Real Property and
16Severance Act, and where the manufactured home subsequently is
17detached or severed from the real property, the owner (all, if
18more than one) of the manufactured home shall, unless exempted
19by other provisions of this Code, apply for a new certificate
20of title by filing with the Secretary of State an application
21for a certificate of title to a manufactured home, to be issued
22in accordance with subsection (b) of Section 3-109, containing
23or accompanied by:
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) a statement signed by the applicant, stating
8    either: (i) any facts or information known to the applicant
9    that could reasonably affect the validity of the title of
10    the manufactured home or the existence or non-existence of
11    any security interest in or lien on it or (ii) that no such
12    facts or information are known to the applicant;
13        (4) a certified copy of the recorded affidavit of
14    severance provided in accordance with the Conveyance and
15    Encumbrance of Manufactured Homes as Real Property and
16    Severance Act; and
17        (5) any other information and documents the Secretary
18    of State reasonably requires.
19    (b) Upon satisfaction of the requirements of subsection (a)
20of this Section and subsection (b) of Section 3-109, the
21Secretary of State shall issue a new certificate of title
22pursuant to subsection (b) of Section 3-109 and update his or
23her records in accordance with the provisions of Section 3-106.
24    (c) Immediately upon satisfaction of the requirements of
25this Section and thereafter, a manufactured home shall be
26conveyed and encumbered as personal property.

 

 

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1    (d) The satisfaction of the requirements of this Section
2with respect to a manufactured home shall have no effect on the
3manner in which such manufactured home is taxed pursuant to the
4Property Tax Code or the Mobile Home Local Services Tax Act.
 
5    (625 ILCS 5/3-202)  (from Ch. 95 1/2, par. 3-202)
6    Sec. 3-202. Perfection of security interest.
7    (a) Unless excepted by Section 3-201, a security interest
8in a vehicle of a type for which a certificate of title is
9required is not valid against subsequent transferees or
10lienholders of the vehicle unless perfected as provided in this
11Act. A purchase money security interest in a manufactured home
12is perfected against the rights of judicial lien creditors and
13execution creditors on and after the date such purchase money
14security interest attaches.
15    (b) A security interest is perfected by the delivery to the
16Secretary of State of the existing certificate of title, if
17any, an application for a certificate of title containing the
18name and address of the lienholder and the required fee. The
19security interest is perfected as of the time of its creation
20if the delivery to the Secretary of State is completed within
2130 days after the creation of the security interest or receipt
22by the new lienholder of the existing certificate of title from
23a prior lienholder or licensed dealer, otherwise as of the time
24of the delivery.
25    (c) If a vehicle is subject to a security interest when

 

 

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

 

 

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1    law of the jurisdiction where the vehicle was when the
2    security interest attached, it may be perfected in this
3    State; in that case perfection dates from the time of
4    perfection in this State.
5        4. A security interest may be perfected under paragraph
6    3 of this subsection either as provided in subsection (b)
7    or by the lienholder delivering to the Secretary of State a
8    notice of security interest in the form the Secretary of
9    State prescribes and the required fee.
10    (d) Except as otherwise provided in Sections 3-116.1,
113-116.2, 3-207, and the Conveyance and Encumbrance of
12Manufactured Homes as Real Property and Severance Act, after a
13certificate of title has been issued for a manufactured home
14and as long as the manufactured home is subject to any security
15interest perfected pursuant to this Section, the Secretary of
16State shall not file an affidavit of affixation, nor cancel the
17Manufacturer's Statement of Origin, nor revoke the certificate
18of title, nor issue a certificate of title under Section 3-106,
19and, in any event, the validity and priority of any security
20interest perfected pursuant to this Section shall continue,
21notwithstanding the provision of any other law.
22(Source: P.A. 95-284, eff. 1-1-08.)
 
23    (625 ILCS 5/3-205)  (from Ch. 95 1/2, par. 3-205)
24    Sec. 3-205. Release of security interest.
25    (a) Within 21 days after receiving payment to satisfy a

 

 

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1security interest in a vehicle for which the certificate of
2title is in the possession of the lienholder, he shall execute
3a release of his security interest, and mail or deliver the
4certificate and release to the next lienholder named therein,
5or, if none, to the owner or any person who delivers to the
6lienholder an authorization from the owner to receive the
7certificate. If the payment is in the form of cash, a cashier's
8check, or a certified check, the number of days is reduced to
910 business days. If the owner desires a new certificate
10reflecting no lien, the certificate and release from the
11lienholder may be submitted to the Secretary of State, along
12with the prescribed application and required fee, for issuance
13of that new certificate.
14    (b) Within 21 days after receiving payment to satisfy a
15security interest in a vehicle for which the certificate of
16title is in the possession of a prior lienholder, the
17lienholder whose security interest is satisfied shall execute a
18release and deliver the release to the owner or any person who
19delivers to the lienholder an authorization from the owner to
20receive it. If the payment is in the form of cash, a cashier's
21check, or a certified check, the number of days is reduced to
2210 business days. The lienholder in possession of the
23certificate of title may either deliver the certificate to the
24owner, or the person authorized by him, for delivery to the
25Secretary of State, or, upon receipt of the release, may mail
26or may deliver the certificate and release, along with

 

 

HB5938- 112 -LRB098 18594 HLH 53735 b

1prescribed application and require fee, to the Secretary of
2State, who shall issue a new certificate.
3    (c) In addition to any other penalty, a lienholder who
4fails to execute a release of his or her security interest or
5who fails to mail or deliver the certificate and release within
6the time limit provided in subsection (a) or (b) is liable to
7the person or entity that was supposed to receive the release
8or certificate for $150 plus reasonable attorney fees and court
9costs. An action under this Section may be brought in small
10claims court or in any other appropriate court.
11    (d) The holder of a security interest in or a lien on a
12manufactured home may deliver lien release documents to any
13person to facilitate conveying or encumbering the manufactured
14home. Any person receiving any such documents so delivered
15holds the documents in trust for the security interest holder
16or the lienholder.
17(Source: P.A. 93-621, eff. 12-15-03.)
 
18    (625 ILCS 5/3-207)  (from Ch. 95 1/2, par. 3-207)
19    Sec. 3-207. Exclusiveness of procedure.
20    The method provided in this act of perfecting and giving
21notice of security interests subject to this act is exclusive.
22Security interests subject to this act are hereby exempted from
23the provisions of law which otherwise require or relate to the
24recording or filing of instruments creating or evidencing
25security interests in vehicles including chattel mortgages and

 

 

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1conditional sale agreements, provided, however, that with
2respect to a manufactured home that is or will be affixed to a
3permanent foundation, upon recordation of an affidavit of
4affixation pursuant to the Conveyance and Encumbrance of
5Manufactured Homes as Real Property and Severance Act and
6satisfaction of the requirements of Section 3-116.1 or 3-116.2,
7as applicable, any perfection or termination of a security
8interest with respect to such permanently affixed property
9shall be governed by the laws applicable to real property.
10(Source: P.A. 76-1586.)
 
11    (625 ILCS 5/3-208)  (from Ch. 95 1/2, par. 3-208)
12    Sec. 3-208. Suspension or revocation of certificates.
13    (a) The Secretary of State may suspend or revoke a
14certificate of title, upon notice and reasonable opportunity to
15be heard in accordance with Section 2-118, when authorized by
16any other provision of law or if he finds:
17        1. The certificate of title was fraudulently procured
18    or erroneously issued, or
19        2. The vehicle has been scrapped, dismantled or
20    destroyed.
21    Except as provided in Section 3-116.2, the Secretary of
22State shall not suspend or revoke a certificate of title to a
23manufactured home by reason of the fact that, at any time, it
24shall have become affixed in any manner to real property.
25    (b) Suspension or revocation of a certificate of title does

 

 

HB5938- 114 -LRB098 18594 HLH 53735 b

1not, in itself, affect the validity of a security interest
2noted on it.
3    (c) When the Secretary of State suspends or revokes a
4certificate of title, the owner or person in possession of it
5shall, immediately upon receiving notice of the suspension or
6revocation, mail or deliver the certificate to the Secretary of
7State.
8    (d) The Secretary of State may seize and impound any
9certificate of title which has been suspended or revoked.
10(Source: P.A. 76-1586.)
 
11    Section 10-75. The Code of Civil Procedure is amended by
12changing Section 15-1213 as follows:
 
13    (735 ILCS 5/15-1213)  (from Ch. 110, par. 15-1213)
14    Sec. 15-1213. Real Estate. "Real estate" means land or any
15estate or interest in, over or under land (including minerals,
16air rights, structures, fixtures and other things which by
17custom, usage or law pass with a conveyance of land though not
18described or mentioned in the contract of sale or instrument of
19conveyance). "Mortgaged real estate" means the real estate
20which is the subject of a mortgage. "Real Estate" includes a
21manufactured home as defined in subdivision (53) of Section
229-102 of the Uniform Commercial Code that is real property as
23defined in the Conveyance and Encumbrance of Manufactured Homes
24as Real Property and Severance Act.

 

 

HB5938- 115 -LRB098 18594 HLH 53735 b

1(Source: P.A. 84-1462.)
 
2    Section 10-80. The Conveyances Act is amended by changing
3Section 38 as follows:
 
4    (765 ILCS 5/38)  (from Ch. 30, par. 37)
5    Sec. 38. The term "real estate," as used in this act, shall
6be construed as co-extensive in meaning with "lands, tenements
7and hereditaments," and as embracing all chattels real. "Real
8estate" and "real property" include a manufactured home as
9defined in subdivision (53) of Section 9-102 of the Uniform
10Commercial Code that is real property as defined in the
11Conveyance and Encumbrance of Manufactured Homes as Real
12Property and Severance Act. This act shall not be construed so
13as to embrace last wills, except as herein expressly provided.
14(Source: P.A. 84-551.)
 
15    Section 10-85. The Residential Real Property Disclosure
16Act is amended by changing Section 5 as follows:
 
17    (765 ILCS 77/5)
18    Sec. 5. Definitions. As used in this Act, unless the
19context otherwise requires the following terms have the meaning
20given in this Section.
21    "Residential real property" means real property improved
22with not less than one nor more than 4 residential dwelling

 

 

HB5938- 116 -LRB098 18594 HLH 53735 b

1units; units in residential cooperatives; or, condominium
2units, including the limited common elements allocated to the
3exclusive use thereof that form an integral part of the
4condominium unit. The term includes a manufactured home as
5defined in subdivision (53) of Section 9-102 of the Uniform
6Commercial Code that is real property as defined in the
7Conveyance and Encumbrance of Manufactured Homes as Real
8Property and Severance Act.
9    "Seller" means every person or entity who is an owner,
10beneficiary of a trust, contract purchaser or lessee of a
11ground lease, who has an interest (legal or equitable) in
12residential real property. However, "seller" shall not include
13any person who has both (i) never occupied the residential real
14property and (ii) never had the management responsibility for
15the residential real property nor delegated such
16responsibility for the residential real property to another
17person or entity.
18    "Prospective buyer" means any person or entity negotiating
19or offering to become an owner or lessee of residential real
20property by means of a transfer for value to which this Act
21applies.
22(Source: P.A. 90-383, eff. 1-1-98.)
 
23    Section 10-90. The Mobile Home Landlord and Tenant Rights
24Act is amended by changing Section 3 as follows:
 

 

 

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1    (765 ILCS 745/3)  (from Ch. 80, par. 203)
2    Sec. 3. Definitions. Unless otherwise expressly defined,
3all terms in this Act shall be construed to have their
4ordinarily accepted meanings or such meaning as the context
5therein requires.
6    (a) "Person" means any legal entity, including but not
7limited to, an individual, firm, partnership, association,
8trust, joint stock company, corporation or successor of any of
9the foregoing.
10    (b) "Manufactured home" means a factory-assembled,
11completely integrated structure designed for permanent
12habitation, with a permanent chassis, and so constructed as to
13permit its transport, on wheels temporarily or permanently
14attached to its frame, and is a movable or portable unit that
15is (i) 8 body feet or more in width, (ii) 40 body feet or more
16in length, and (iii) 320 or more square feet, constructed to be
17towed on its own chassis (comprised of frame and wheels) from
18the place of its construction to the location, or subsequent
19locations, at which it is installed and set up according to the
20manufacturer's instructions and connected to utilities for
21year-round occupancy for use as a permanent habitation, and
22designed and situated so as to permit its occupancy as a
23dwelling place for one or more persons, and specifically
24includes a "manufactured home" as defined in subdivision (53)
25of Section 9-102 of the Uniform Commercial Code. The term shall
26include units containing parts that may be folded, collapsed,

 

 

HB5938- 118 -LRB098 18594 HLH 53735 b

1or telescoped when being towed and that may be expected to
2provide additional cubic capacity, and that are designed to be
3joined into one integral unit capable of being separated again
4into the components for repeated towing. The term excludes
5campers and recreational vehicles. The words "mobile home" and
6"manufactured home" are synonymous for the purposes of this
7Act.
8    (c) "Mobile Home Park" or "Park" means a tract of land or 2
9contiguous tracts of land that contain sites with the necessary
10utilities for 5 or more mobile homes or manufactured homes. A
11mobile home park may be operated either free of charge or for
12revenue purposes.
13    (d) "Park Owner" means the owner of a mobile home park and
14any person authorized to exercise any aspect of the management
15of the premises, including any person who directly or
16indirectly receives rents and has no obligation to deliver the
17whole of such receipts to another person.
18    (e) "Tenant" means any person who occupies a mobile home
19rental unit for dwelling purposes or a lot on which he parks a
20mobile home for an agreed upon consideration.
21    (f) "Rent" means any money or other consideration given for
22the right of use, possession and occupancy of property, be it a
23lot, a mobile home, or both.
24    (g) "Master antenna television service" means any and all
25services provided by or through the facilities of any closed
26circuit coaxial cable communication system, or any microwave or

 

 

HB5938- 119 -LRB098 18594 HLH 53735 b

1similar transmission services other than a community antenna
2television system as defined in Section 11-42-11 of the
3Illinois Municipal Code.
4(Source: P.A. 96-1477, eff. 1-1-11.)
 
5    Section 10-95. The Mortgage Act is amended by adding
6Section 13.1 as follows:
 
7    (765 ILCS 905/13.1 new)
8    Sec. 13.1. Real estate; real property. As used in this Act,
9"real estate" and "real property" include a manufactured home
10as defined in subdivision (53) of Section 9-102 of the Uniform
11Commercial Code that is real property as defined in the
12Conveyance and Encumbrance of Manufactured Homes as Real
13Property and Severance Act.
 
14    Section 10-100. The Joint Tenancy Act is amended by adding
15Section 5 as follows:
 
16    (765 ILCS 1005/5 new)
17    Sec. 5. Real estate; real property. As used in this Act,
18"real estate" and "real property" include a manufactured home
19as defined in subdivision (53) of Section 9-102 of the Uniform
20Commercial Code that is real property as defined in the
21Conveyance and Encumbrance of Manufactured Homes as Real
22Property and Severance Act.
 

 

 

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1    Section 10-105. The Uniform Commercial Code is amended by
2changing Section 9-102 as follows:
 
3    (810 ILCS 5/9-102)  (from Ch. 26, par. 9-102)
4    Sec. 9-102. Definitions and index of definitions.
5    (a) Article 9 definitions. In this Article:
6        (1) "Accession" means goods that are physically united
7    with other goods in such a manner that the identity of the
8    original goods is not lost.
9        (2) "Account", except as used in "account for", means a
10    right to payment of a monetary obligation, whether or not
11    earned by performance, (i) for property that has been or is
12    to be sold, leased, licensed, assigned, or otherwise
13    disposed of, (ii) for services rendered or to be rendered,
14    (iii) for a policy of insurance issued or to be issued,
15    (iv) for a secondary obligation incurred or to be incurred,
16    (v) for energy provided or to be provided, (vi) for the use
17    or hire of a vessel under a charter or other contract,
18    (vii) arising out of the use of a credit or charge card or
19    information contained on or for use with the card, or
20    (viii) as winnings in a lottery or other game of chance
21    operated or sponsored by a State, governmental unit of a
22    State, or person licensed or authorized to operate the game
23    by a State or governmental unit of a State. The term
24    includes health-care-insurance receivables. The term does

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    under a letter of credit.
2        (52) "Lien creditor" means:
3            (A) a creditor that has acquired a lien on the
4        property involved by attachment, levy, or the like;
5            (B) an assignee for benefit of creditors from the
6        time of assignment;
7            (C) a trustee in bankruptcy from the date of the
8        filing of the petition; or
9            (D) a receiver in equity from the time of
10        appointment.
11        (53) "Manufactured home" means a structure,
12    transportable in one or more sections, which, in the
13    traveling mode, is eight body feet or more in width or 40
14    body feet or more in length, or, when erected on site, is
15    320 or more square feet, and which is built on a permanent
16    chassis and designed to be used as a dwelling with or
17    without a permanent foundation when connected to the
18    required utilities, and includes the plumbing, heating,
19    air-conditioning, and electrical systems contained
20    therein. The term includes any structure that meets all of
21    the requirements of this paragraph except the size
22    requirements and with respect to which the manufacturer
23    voluntarily files a certification required by the United
24    States Secretary of Housing and Urban Development and
25    complies with the standards established under Title 42 of
26    the United States Code factory-assembled, completely

 

 

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

 

 

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1        manufactured home held as inventory, is the primary
2        collateral.
3        (55) "Mortgage" means a consensual interest in real
4    property, including fixtures, which secures payment or
5    performance of an obligation.
6        (56) "New debtor" means a person that becomes bound as
7    debtor under Section 9-203(d) by a security agreement
8    previously entered into by another person.
9        (57) "New value" means (i) money, (ii) money's worth in
10    property, services, or new credit, or (iii) release by a
11    transferee of an interest in property previously
12    transferred to the transferee. The term does not include an
13    obligation substituted for another obligation.
14        (58) "Noncash proceeds" means proceeds other than cash
15    proceeds.
16        (59) "Obligor" means a person that, with respect to an
17    obligation secured by a security interest in or an
18    agricultural lien on the collateral, (i) owes payment or
19    other performance of the obligation, (ii) has provided
20    property other than the collateral to secure payment or
21    other performance of the obligation, or (iii) is otherwise
22    accountable in whole or in part for payment or other
23    performance of the obligation. The term does not include
24    issuers or nominated persons under a letter of credit.
25        (60) "Original debtor", except as used in Section
26    9-310(c), means a person that, as debtor, entered into a

 

 

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

 

 

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

 

 

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1    deposit a sum of money or funds.
2        (66) "Proposal" means a record authenticated by a
3    secured party which includes the terms on which the secured
4    party is willing to accept collateral in full or partial
5    satisfaction of the obligation it secures pursuant to
6    Sections 9-620, 9-621, and 9-622.
7        (67) "Public-finance transaction" means a secured
8    transaction in connection with which:
9            (A) debt securities are issued;
10            (B) all or a portion of the securities issued have
11        an initial stated maturity of at least 20 years; and
12            (C) the debtor, obligor, secured party, account
13        debtor or other person obligated on collateral,
14        assignor or assignee of a secured obligation, or
15        assignor or assignee of a security interest is a State
16        or a governmental unit of a State.
17        (68) "Public organic record" means a record that is
18    available to the public for inspection and is:
19            (A) a record consisting of the record initially
20        filed with or issued by a State or the United States to
21        form or organize an organization and any record filed
22        with or issued by the State or the United States which
23        amends or restates the initial record;
24            (B) an organic record of a business trust
25        consisting of the record initially filed with a State
26        and any record filed with the State which amends or

 

 

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

 

 

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1    States. The term includes a business trust that is formed
2    or organized under the law of a single State if a statute
3    of the State governing business trusts requires that the
4    business trust's organic record be filed with the State.
5        (72) "Secondary obligor" means an obligor to the extent
6    that:
7            (A) the obligor's obligation is secondary; or
8            (B) the obligor has a right of recourse with
9        respect to an obligation secured by collateral against
10        the debtor, another obligor, or property of either.
11        (73) "Secured party" means:
12            (A) a person in whose favor a security interest is
13        created or provided for under a security agreement,
14        whether or not any obligation to be secured is
15        outstanding;
16            (B) a person that holds an agricultural lien;
17            (C) a consignor;
18            (D) a person to which accounts, chattel paper,
19        payment intangibles, or promissory notes have been
20        sold;
21            (E) a trustee, indenture trustee, agent,
22        collateral agent, or other representative in whose
23        favor a security interest or agricultural lien is
24        created or provided for; or
25            (F) a person that holds a security interest arising
26        under Section 2-401, 2-505, 2-711(3), 2A-508(5),

 

 

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

 

 

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

 

 

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1    "Check". Section 3-104.
2    "Clearing corporation". Section 8-102.
3    "Contract for sale". Section 2-106.
4    "Customer". Section 4-104.
5    "Entitlement holder". Section 8-102.
6    "Financial asset". Section 8-102.
7    "Holder in due course". Section 3-302.
8    "Issuer" (with respect to a letter of credit or
9letter-of-credit right). Section 5-102.
10    "Issuer" (with respect to a security). Section 8-201.
11    "Issuer" (with respect to documents of title). Section
127-102.
13    "Lease". Section 2A-103.
14    "Lease agreement". Section 2A-103.
15    "Lease contract". Section 2A-103.
16    "Leasehold interest". Section 2A-103.
17    "Lessee". Section 2A-103.
18    "Lessee in ordinary course of business". Section 2A-103.
19    "Lessor". Section 2A-103.
20    "Lessor's residual interest". Section 2A-103.
21    "Letter of credit". Section 5-102.
22    "Merchant". Section 2-104.
23    "Negotiable instrument". Section 3-104.
24    "Nominated person". Section 5-102.
25    "Note". Section 3-104.
26    "Proceeds of a letter of credit". Section 5-114.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB5938- 151 -LRB098 18594 HLH 53735 b

1payment penalties, is paid in full.
2    (4) For purposes of this Section, a prepayment shall mean
3the payment of the total indebtedness, with the exception of
4late payment penalties if incurred or charged, on any date
5before the date specified in the contract or loan agreement on
6which the total indebtedness shall be paid in full, or before
7the date on which all payments, if timely made, shall have been
8made. In the event of a prepayment of the indebtedness which is
9made on a date after the date on which interest on the
10indebtedness was last computed, calculated, charged, or
11collected but before the next date on which interest on the
12indebtedness was to be calculated, computed, charged, or
13collected, the lender may calculate, charge and collect
14interest on the indebtedness for the period which elapsed
15between the date on which the prepayment is made and the date
16on which interest on the indebtedness was last computed,
17calculated, charged or collected at a rate equal to 1/360 of
18the annual rate for each day which so elapsed, which rate shall
19be applied to the indebtedness outstanding as of the date of
20prepayment. The lender shall refund to the borrower any
21interest charged or collected which exceeds that which the
22lender may charge or collect pursuant to the preceding
23sentence. The provisions of this amendatory Act of 1985 shall
24apply only to contracts or loans entered into on or after the
25effective date of this amendatory Act, but shall not apply to
26contracts or loans entered into on or after that date that are

 

 

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1subject to Section 4a of this Act, the Consumer Installment
2Loan Act, the Payday Loan Reform Act, or the Retail Installment
3Sales Act, or that provide for the refund of precomputed
4interest on prepayment in the manner provided by such Act.
5    (5) For purposes of items (a) and (c) of subsection (1) of
6this Section, a rate or amount of interest may be lawfully
7computed when applying the ratio of the annual interest rate
8over a year based on 360 days. The provisions of this
9amendatory Act of the 96th General Assembly are declarative of
10existing law.
11    (6) For purposes of this Section, "real estate" and "real
12property" include a manufactured home, as defined in
13subdivision (53) of Section 9-102 of the Uniform Commercial
14Code that is real property as defined in the Conveyance and
15Encumbrance of Manufactured Homes as Real Property and
16Severance Act.
17(Source: P.A. 95-331, eff. 8-21-07; 96-1421, eff. 8-3-10.)
 
18    (815 ILCS 205/4.2)  (from Ch. 17, par. 6407)
19    Sec. 4.2. Revolving credit; billing statements;
20disclosures. On a revolving credit which complies with
21subparagraphs (a), (b), (c), (d) and (e) of this Section 4.2,
22it is lawful for any bank that has its main office or, after
23May 31, 1997, a branch in this State, a state or federal
24savings and loan association with its main office in this
25State, a state or federal credit union with its main office in

 

 

HB5938- 153 -LRB098 18594 HLH 53735 b

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

 

 

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

 

 

HB5938- 155 -LRB098 18594 HLH 53735 b

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

 

 

HB5938- 156 -LRB098 18594 HLH 53735 b

1    order to avoid delinquency;
2        (vi) the total amount remaining unpaid at the end of
3    the billing cycle and the right of the debtor to prepay
4    that amount in full without penalty; and
5        (vii) information required by (iv), (v) and (vi) must
6    be set forth in type of equal size and equal
7    conspicuousness.
8    (c) The revolving credit arrangement may provide for the
9payment by the debtor and receipt by the lender of all costs
10and disbursements, including reasonable attorney's fees,
11incurred by the lender in legal proceedings to collect or
12enforce the debt in the event of delinquency by the debtor or
13in the event of a breach of any obligation of the debtor under
14the arrangement.
15    (d) The lender under a revolving credit arrangement may
16provide credit life insurance or credit accident and health
17insurance, or both, with respect to the debtor and may charge
18the debtor therefor. Credit life insurance and credit accident
19and health insurance, and any charge therefor made to the
20debtor, shall comply with Article IX 1/2 of the Illinois
21Insurance Code, as now or hereafter amended, and all lawful
22requirements of the Director of Insurance related thereto. This
23insurance is in force with respect to each loan or advance made
24under a revolving credit arrangement as soon as the loan or
25advance is made. The purchase of this insurance from an agent,
26broker or insurer specified by the lender may not be a

 

 

HB5938- 157 -LRB098 18594 HLH 53735 b

1condition precedent to the revolving credit arrangement or to
2the making of any loan or advance thereunder.
3    (e) Whenever interest is contracted for or received under
4this Section, no amount in addition to the charges authorized
5by this Act may be directly or indirectly charged, contracted
6for or received whether as interest, service charges, costs of
7investigations or enforcements or otherwise.
8    (f) The lender under a revolving credit arrangement must
9compute at year end the total amount charged to the debtor's
10account during the year, including service charges, finance
11charges, late charges and any other charges authorized by this
12Act, and upon request must furnish such information to the
13debtor within 30 days after the end of the year, or if the
14account has been terminated during such year, may give such
15requested information within 30 days after such termination.
16The lender shall annually inform the debtor of his right to
17obtain such information.
18    (g) A lender who complies with the federal Truth in Lending
19Act, amendments thereto, and any regulations issued or which
20may be issued thereunder, shall be deemed to be in compliance
21with the provisions of subparagraphs (a) and (b) of this
22Section.
23    (h) Anything in this Section 4.2 to the contrary
24notwithstanding, if the Congress of the United States or any
25federal agency authorizes any class of lenders to enter, within
26limitations, into a revolving credit arrangement secured by a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1issued or which may be issued thereunder, shall be deemed to be
2in compliance with the provisions of subsections (f), (g) and
3(h) of this Section.
4    (j) For purposes of this Section, "real estate" and "real
5property" include a manufactured home as defined in subdivision
6(53) of Section 9-102 of the Uniform Commercial Code that is
7real property as defined in the Conveyance and Encumbrance of
8Manufactured Homes as Real Property and Severance Act.
9(Source: P.A. 92-483, eff. 8-23-01.)
 
10    Section 10-115. The Motor Vehicle Retail Installment Sales
11Act is amended by changing Section 2.1 as follows:
 
12    (815 ILCS 375/2.1)  (from Ch. 121 1/2, par. 562.1)
13    Sec. 2.1.
14    "Motor vehicle" means a motor vehicle as defined in The
15Illinois Vehicle Code but does not include bicycles,
16motorcycles, motor scooters, snowmobiles, trailers, and farm
17equipment, and manufactured homes as defined in subdivision
18(53) of Section 9-102 of the Uniform Commercial Code.
19(Source: P.A. 77-1167.)
 
20    Section 10-120. The Retail Installment Sales Act is amended
21by changing Section 2.1 as follows:
 
22    (815 ILCS 405/2.1)  (from Ch. 121 1/2, par. 502.1)

 

 

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1    Sec. 2.1. "Goods" means all goods used or purchased
2primarily for personal, family, or household purposes. "Goods"
3includes goods purchased primarily for agricultural purposes
4only for the purposes of the credit disclosure requirements of
5this Act. "Goods" includes merchandise certificates or coupons
6issued by a retail seller to be used in their face amount in
7the purchase of goods or services sold by such a seller but
8does not include money or other things in action. It also
9includes goods which are furnished or used, at the time of sale
10or subsequently, in the modernization, rehabilitation, repair,
11alteration, improvement, or construction of real estate so as
12to become a part of that real estate whether or not severable
13therefrom. "Goods" includes a manufactured home as defined in
14subdivision (53) of Section 9-102 of the Uniform Commercial
15Code that is not real property as defined in the Conveyance and
16Encumbrance of Manufactured Homes as Real Property and
17Severance Act. "Goods" does not include a motor vehicle as
18defined in The Illinois Vehicle Code, but does include
19bicycles, motorcycles, motor scooters, snowmobiles and
20trailers when purchased primarily for personal, family or
21household purposes. "Goods" does not include goods used or
22purchased primarily for business or commercial purposes.
23(Source: P.A. 77-1166.)
 
24
ARTICLE 99. EFFECTIVE DATE

 
25    Section 99-999. Effective date. This Act takes effect upon

 

 

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1becoming law.

 

 

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

 

 

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