HB5938 EngrossedLRB098 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 the wheels,
7axles, and towing hitch are removed, and it is anchored to real
8property by attachment to a permanent foundation and connected
9to residential utilities (such as water, gas, electricity, or
10sewer or septic service). The certification of a certified
11residential real estate appraiser, a certified general real
12estate appraiser, a licensed manufactured home installer, or a
13licensed professional engineer that the home is affixed to a
14permanent foundation shall establish conclusively that the
15home is affixed to a permanent foundation.
 
16    Section 5-10. Act not mandatory; record notice. The owner
17of a manufactured home that is personal property or a fixture
18may, but need not, cause that manufactured home to be deemed to
19be real property by satisfying the requirements of Section 5-30
20of this Act and the requirements of Section 3-116.1 or 3-116.2
21of the Illinois Vehicle Code, as applicable.
22    To convey or voluntarily encumber a manufactured home as
23real property, the following conditions must be met:
24        (1) the manufactured home must be affixed to a
25    permanent foundation on real property;

 

 

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

 

 

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1        Manufacturer's Statement of Origin, each as recorded
2        in the county in which the real property is located,
3        must be filed with the Secretary of State pursuant to
4        Section 3-116.1 of the Illinois Vehicle Code; and
5            (B) in a case described in subsection (a)(4)(B) of
6        Section 5-15 of this Act, a certified copy of the
7        recorded affidavit of affixation as recorded in the
8        county in which the real property is located, and the
9        original certificate of title, including, if
10        applicable, a certificate of title issued in
11        accordance with subsection (b) of Section 3-109 of the
12        Illinois Vehicle Code, must be filed with the Secretary
13        of State pursuant to Section 3-116.2 of the Illinois
14        Vehicle Code.
 
15    Section 5-15. Affidavit of affixation.
16    (a) An affidavit of affixation shall contain or be
17accompanied by:
18        (1) the name of the manufacturer, the make, the model
19    name, the model year, the dimensions, and the
20    manufacturer's serial number or numbers of the
21    manufactured home, and whether the manufactured home is new
22    or used;
23        (2)(A) a statement that the party executing the
24    affidavit is the owner of the real property described
25    therein or (B) if the party executing the affidavit is not

 

 

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

 

 

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

 

 

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1        released; or
2            (B) a statement that each security interest in or
3        lien on the manufactured home, if any, has been
4        released, together with due proof of each such release;
5        (6) a statement that the manufactured home is or shall
6    be affixed to a permanent foundation;
7        (7) the name and address of a person designated for
8    filing the certified copy of the affidavit of affixation
9    with the Secretary of State, to whom the recording officer
10    shall return the certified copy of the affidavit of
11    affixation after it has been duly recorded in the real
12    property records, as provided in Section 5-25 of this Act;
13    and
14        (8) the certification of a certified residential real
15    estate appraiser, a certified general real estate
16    appraiser, a licensed manufactured home installer, or a
17    licensed professional engineer, as provided in Section 5-5
18    of this Act.
19    (b) An affidavit of affixation shall be in the form set
20forth in this Section, duly acknowledged or proved in like
21manner as to entitle a conveyance to be recorded, and when so
22acknowledged or proved and upon payment of the lawful fees
23therefor, the recording officer shall immediately cause the
24affidavit of affixation and any attachments thereto to be duly
25recorded and indexed in the record of deeds.
26    (c) An affidavit of affixation shall be in the form set

 

 

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1forth below:
 
2
MANUFACTURED HOME
3
AFFIDAVIT OF AFFIXATION

 
4STATE OF ........................)
5                                 )SS.
6COUNTY OF .......................)
 
7BEFORE ME, the undersigned Notary Public, on this day
8personally appeared ......................... (type the
9name(s) of each person signing this Affidavit) known to me to
10be the person(s) whose name(s) is/are subscribed below (each a
11"Homeowner"), and who, being by me first duly sworn, did each
12on his or her oath state as follows:
131. Homeowner owns the manufactured home ("Home") described as
14    follows:
15.....................................................
16..............................
17(Year;  Manufacturer's Name; Manufacturer's Serial No(s).)
 
182. The street address of the real property to which the Home is
19    or shall be permanently affixed ("Property Address") is:
 
20.............................................................
21(Street or Route; City; County; State; Zip Code)
 

 

 

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13. The legal description of the real property to which the Home
2    is or shall be affixed ("Land") is:
3..........................
4..............................
5..............................
6..............................
 
74. Homeowner is the owner of the Land or, if not the owner of
8    the Land, the Home is not located in a mobile home park, as
9    defined in Section 2.5 of the Mobile Home Park Act, and
10    Homeowner is in possession of the Land pursuant to a lease
11    in recordable form that has a term that continues for at
12    least 20 years after the date of the execution of this
13    Affidavit, and the consent of the lessor is attached to
14    this Affidavit.
155. The Home is or shall be assessed and taxed as an improvement
16    to the Land.
176. As of the date of the execution of this Affidavit, or, if
18    the Home is not yet located at the Property Address, upon
19    the delivery of the Home to the Property Address:
20    (a) The Home [ ] is [ ] shall be affixed to a permanent
21foundation as defined in Section 5-5 of the Conveyance and
22Encumbrance of Manufactured Homes as Real Property and
23Severance Act;
24    (b) The wheels, axles, towbar, or hitch were removed when

 

 

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1the Home was placed on the Property Address; and
27. The Home [ ] was [ ] was not permanently affixed before
3    January 1, 2011.
48. If Homeowner is the owner of the Land, any conveyance or
5    financing of the Home and the Land shall be a single
6    transaction under applicable State law.
79. The Home is subject to the following security interests or
8    liens:
 
9Name of Lienholder: ................
10Address: ....................................................
 
11Name of Lienholder: ................
12Address: ....................................................
 
1310. Other than those disclosed in this Affidavit, Homeowner is
14    not aware of (i) any other security interest, claim, lien,
15    or encumbrance affecting the Home or (ii) any other facts
16    or information that could reasonably affect the validity of
17    the title of the Home or the existence or non-existence of
18    security interests in it.
1911. A release of lien from each of the lienholders identified
20    in paragraph 11 of this Affidavit [] has been [] shall be
21    delivered to the Secretary of State.
2212. Homeowner shall initial only one of the following, as it
23    applies to the Home:

 

 

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1    [] The Home is not covered by a certificate of title. The  
2Home is covered by a Manufacturer's Statement of Origin, 
3issued on the ...... of .........., ....., manufacturer's 
4serial number ........................, which Homeowner shall 
5surrender. The original Manufacturer's Statement of Origin, 
6duly endorsed to Homeowner, is attached to this Affidavit. 
7    [] The Home is covered by a certificate of title issued 
8on the ....... day of .........., ......, title number 
9........................, which  Homeowner shall surrender.
1013. Homeowner designates the following person to file a
11    certified copy of this Affidavit with the Secretary of
12    State, and the person to whom the Recorder shall return a
13    certified copy of this Affidavit after it has been duly
14    recorded in the real property records:
15    Name: ..............................................
16    Address: ................................................
 
1714. This Affidavit is executed by Homeowner pursuant to Section
18    5-15 of the Conveyance and Encumbrance of Manufactured
19    Homes as Real Property and Severance Act.
2015. The certification, pursuant to Section 5-5 of the
21    Conveyance and Encumbrance of Manufactured Homes as Real
22    Property and Severance Act, of a certified residential real
23    estate appraiser, a certified general real estate
24    appraiser, a licensed manufactured home installer, or a
25    licensed professional engineer that the home is affixed to

 

 

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

 

 

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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:
 
10    ATTENTION RECORDER: This instrument covers goods that are
11or are to become fixtures on the Property described herein and
12is to be filed for record in the records where conveyances of
13real estate are recorded.
 
14    Section 5-20. Disposition of liens. Neither the act of
15affixing a manufactured home to a permanent foundation nor the
16recording of the affidavit of affixation shall impair the
17rights of any holder of a security interest in or lien on a
18manufactured home perfected as provided in Section 3-202 of the
19Illinois Vehicle Code, unless and until the due filing with and
20acceptance by the Secretary of State of an application to

 

 

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1surrender the title as provided in Section 3-116.2 of the
2Illinois Vehicle Code and release of all security interests or
3liens as provided in Section 3-205 of the Illinois Vehicle
4Code. Upon the filing of such releases, the security interests
5or liens perfected under Section 3-202 of the Illinois Vehicle
6Code are terminated. The recording of an affidavit of
7affixation does not change the character of any security
8interest or lien noted on a certificate of title, and no
9recording tax shall be imposed at the time an affidavit of
10affixation is recorded upon any security interest in or lien on
11a manufactured home perfected under Section 3-202 of the
12Illinois Vehicle Code.
 
13    Section 5-25. Notice to Secretary of State. Upon payment of
14the fees provided by law and recordation of the affidavit of
15affixation, the recording officer shall endorse the affidavit
16as "recorded in land records", setting forth thereon the
17indexing information for the affidavit of affixation, and the
18recording officer shall forthwith forward a certified copy of
19the recorded affidavit of affixation and all attachments
20thereto to the person designated therein for filing with the
21Secretary of State. Upon receipt of a certified copy of the
22recorded affidavit of affixation by the person designated
23therein for filing with the Secretary of State, such person
24shall forthwith deliver for filing to the Secretary a certified
25copy of the affidavit of affixation and other documents as

 

 

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1provided in item (4) of Section 5-10 of this Act.
 
2    Section 5-30. Effect of recorded affidavit of affixation. A
3manufactured home shall be deemed to be real property when all
4of the following events have occurred:
5    (1) the manufactured home is affixed to a permanent
6foundation as provided in Section 5-5 of this Act;
7    (2) an affidavit of affixation conforming to the
8requirements of Section 5-15 of this Act has been recorded;
9    (3) a certified copy of the recorded affidavit of
10affixation has been delivered for filing to the Secretary of
11State as provided in Section 5-25 of this Act; and
12    (4) the requirements of Section 3-116.1 or 3-116.2 of the
13Illinois Vehicle Code, as applicable, have been satisfied.
14    A conclusive presumption shall arise that the averments of
15the recorded affidavit of affixation establish that, for all
16purposes, the manufactured home is real property.
 
17    Section 5-35. Conveyance and encumbrance as real property.
18Upon the satisfaction of the requirements of Section 5-30 of
19this Act and the requirements of Section 3-116.1 or 3-116.2 of
20the Illinois Vehicle Code, as applicable, such manufactured
21home shall be deemed to be real property; any mortgage, deed of
22trust, lien, or security interest that can attach to land,
23buildings erected thereon, or fixtures affixed thereto shall
24attach as of the date of its recording in the same manner as if

 

 

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1the manufactured home were built from ordinary building
2materials on site; title to such manufactured home shall be
3transferred by deed or other form of conveyance that is
4effective to transfer an interest in real property, together
5with the land to which such structure has been affixed; and the
6manufactured home shall be deemed to be real property and shall
7be governed by the laws applicable to real property.
 
8    Section 5-40. Exclusive procedure. The method of
9converting a manufactured home to real property set forth in
10Section 5-10 of this Act shall be exclusive, and shall supplant
11the common law of fixtures as it relates to manufactured homes.
 
12    Section 5-45. Applicability. Nothing in this Act shall
13impair any rights existing under law prior to the effective
14date of this Act of anyone claiming an interest in the
15manufactured home.
 
16    Section 5-50. Affidavit of severance.
17    (a) If and when a manufactured home for which an affidavit
18of affixation has been recorded is detached or severed from the
19real property to which it is affixed, the person (all, if more
20than one) having an interest in the real property shall record
21an affidavit of severance in the land records of the county
22where the affidavit of affixation with respect to the
23manufactured home is recorded. The affidavit of severance shall

 

 

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

 

 

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

 
23STATE OF .........................)
24                                  )SS.

 

 

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1COUNTY OF ........................)
 
2BEFORE ME, the undersigned notary public, on this day
3personally appeared ................... (type the name(s) of
4each person signing this Affidavit) known to me to be the
5person(s) whose name(s) is/are subscribed below (each an
6"Affiant"), and who, being by me first duly sworn, did each on
7his or her oath state as follows:
 
81. The owner(s) of the manufactured home described below
9    reside(s) at the following address:
10..........................
11(Street or Route; City; County; State; Zip Code)
 
12Mailing address, if different:
13...............................
14(Street or Route; City; County; State; Zip Code)
 
152. The manufactured home that is the subject of this Affidavit
16    ("Home") is described as follows:
17............................
18(Year;  Manufacturer's Name; Manufacturer's Serial No(s).)
 
193. The Home was severed from the following address ("Land"):
20.
21(Street or Route; City; County; State; Zip Code)
 

 

 

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14. An Affidavit of Affixation was duly recorded in the land 
2    records of  the  county in which the  Land is located on 
3    (date) ............., in book number ...... at page 
4    number .....
55. Affiant is the owner of the Land or, if not the owner of 
6    the Land, is in possession of the Land pursuant to a 
7    lease in recordable form, and the consent of the lessor 
8    is attached to this Affidavit.
96. The Home is subject to the following security interests:
 
10Name of Lienholder: ................
11Address: ....................................................
 
12Name of Lienholder: ................
13Address: ....................................................
 
147. Other than those disclosed in this Affidavit, Affiant is 
15    not aware of (i) any other security interest, claim, 
16    lien, or encumbrance affecting the Home or (ii) any other 
17    facts or information that could reasonably affect the 
18    validity of the title of the Home or the existence or 
19    non-existence of security interests in it.
208. A release of lien from each of the lienholders identified 
21    in paragraph 6 of this Affidavit [] has been [] shall  be 
22    delivered to the Secretary of State. 

 

 

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19. Affiant designates the following person to file a 
2    certified copy of this Affidavit with the Secretary of 
3    State, and the person to whom the Recorder shall return a 
4    certified copy of this Affidavit after it has been duly 
5    recorded in the real property records:
6    Name: ...............................................
7    Address: ................................................
 
810. This Affidavit is executed by Affiant pursuant to Section 
9    5-50 of the Conveyance and Encumbrance of Manufactured 
10    Homes as Real Property and Severance Act.
11
12    IN WITNESS WHEREOF, Affiant(s) has/have executed this 
13    Affidavit in my presence and in the presence of the 
14    undersigned witnesses on this ....... day of 
15    ................, .......
16
17...........................(SEAL) ..........................
18Homeowner #1                      Witness
19...........................
20Printed Name
 
21...........................(SEAL) ..........................
22Homeowner #2                      Witness
23...........................
24Printed Name
 

 

 

HB5938 Engrossed- 22 -LRB098 18594 HLH 53735 b

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

 

 

HB5938 Engrossed- 23 -LRB098 18594 HLH 53735 b

1recorded.
 
2    Section 5-55. Documents in trust.
3    (a) Manufacturer's Statement of Origin. The holder of a
4Manufacturer's Statement of Origin to a manufactured home may
5deliver it to any person to facilitate conveying or encumbering
6the home. Any person receiving a Manufacturer's Statement of
7Origin so delivered holds it in trust for the person delivering
8it.
9    (b) Lien Release. The holder of a security interest in a
10manufactured home may deliver lien release documents to any
11person to facilitate conveying or encumbering the home. Any
12person receiving any such documents so delivered holds the
13documents in trust for the lienholder.
 
14
ARTICLE 10. AMENDATORY PROVISIONS

 
15    Section 10-15. The Property Tax Code is amended by changing
16Section 1-130 as follows:
 
17    (35 ILCS 200/1-130)
18    Sec. 1-130. Property; real property; real estate; land;
19tract; lot.
20    (a) The land itself, with all things contained therein, and
21also all buildings, structures and improvements, and other
22permanent fixtures thereon, including all oil, gas, coal, and

 

 

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

 

 

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

 

 

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1or any other provision of law with respect to the taxation of
2mobile homes or manufactured homes located outside of mobile
3home parks, the provisions of this Section shall control.
4(Source: P.A. 96-1477, eff. 1-1-11.)
 
5    Section 10-20. The Mobile Home Local Services Tax Act is
6amended by changing Sections 1 and 4 as follows:
 
7    (35 ILCS 515/1)  (from Ch. 120, par. 1201)
8    Sec. 1. (a) As Except as provided in subsections (b) and
9(c), as used in this Act, "manufactured home" means a
10factory-assembled, completely integrated structure designed
11for permanent habitation, with a permanent chassis, and so
12constructed as to permit its transport, on wheels temporarily
13or permanently attached to its frame, and is a movable or
14portable unit that is (i) 8 body feet or more in width, (ii) 40
15body feet or more in length, and (iii) 320 or more square feet,
16constructed to be towed on its own chassis (comprised of frame
17and wheels) from the place of its construction to the location,
18or subsequent locations, at which it is installed and set up
19according to the manufacturer's instructions and connected to
20utilities for year-round occupancy for use as a permanent
21habitation, and designed and situated so as to permit its
22occupancy as a dwelling place for one or more persons, and
23specifically includes a "manufactured home" as defined in
24subdivision (53) of Section 9-102 of the Uniform Commercial

 

 

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1Code. The term shall include units containing parts that may be
2folded, collapsed, or telescoped when being towed and that may
3be expected to provide additional cubic capacity, and that are
4designed to be joined into one integral unit capable of being
5separated again into the components for repeated towing. The
6term excludes campers and recreational vehicles. Mobile homes
7and manufactured homes in mobile home parks must be assessed
8and taxed as chattel. Mobile homes and manufactured homes
9outside of mobile home parks must be assessed and taxed as real
10property whether or not such mobile homes and manufactured
11homes are affixed to a permanent foundation as defined in
12Section 5-5 of the Conveyance and Encumbrance of Manufactured
13Homes as Real Property and Severance Act, and whether or not
14such mobile homes and manufactured homes are real property as
15defined in Section 5-35 of the Conveyance and Encumbrance of
16Manufactured Homes as Real Property and Severance Act. The
17words "mobile home" and "manufactured home" are synonymous for
18the purposes of this Act. Any such structure located outside of
19a mobile home park shall not be assessed and taxed construed as
20chattel, but must be assessed and taxed as real property as
21defined by Section 1-130 of the Property Tax Code. All mobile
22homes and manufactured homes located inside mobile home parks
23must be considered as chattel and taxed according to this Act.
24Mobile homes and manufactured homes located on a dealer's lot
25for resale purposes or as a temporary office shall not be
26subject to this tax.

 

 

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1    (b) Mobile homes and manufactured homes that (i) are
2located outside of mobile home parks and (ii) are taxed under
3this Act on the effective date of this amendatory Act of the
496th General Assembly must continue to be taxed under this Act
5and shall not be classified, assessed, and taxed as real
6property until the home is sold, transferred, or relocated to a
7different parcel of land outside of a mobile home park. If a
8mobile home or manufactured home described in this subsection
9(b) is sold, transferred, or relocated to a different parcel of
10land outside of a mobile home park, then the home must be
11classified, assessed, and taxed as real property whether or not
12the mobile home or manufactured home is affixed to a permanent
13foundation as defined in Section 5-5 of the Conveyance and
14Encumbrance of Manufactured Homes as Real Property and
15Severance Act and whether or not the mobile home or
16manufactured home is real property as defined in Section 5-35
17of the Conveyance and Encumbrance of Manufactured Homes as Real
18Property and Severance Act. Mobile homes and manufactured homes
19that are located outside of mobile home parks and classified,
20assessed, and taxed as real property on the effective date of
21this amendatory Act of the 96th General Assembly must continue
22to be classified, assessed, and taxed as real property whether
23or not the mobile homes and manufactured homes are affixed to a
24permanent foundation as defined in Section 5-5 of the
25Conveyance and Encumbrance of Manufactured Homes as Real
26Property and Severance Act or installed on permanent

 

 

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

 

 

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1which a county assessor is elected pursuant to Section 3-45 of
2the Property Tax Code, a mobile home registration form
3containing the information hereinafter specified, subject to
4the county's recording fees and record a signed copy of the
5title or certificate of origin in the county where the home is
6located or surrender the signed title or certificate of origin
7to be held by the county until such time as the home is to be
8removed from the county. Mobile home park operators shall
9forward a copy of the mobile home registration form provided in
10Section 12 of "An Act to provide for, license and regulate
11mobile homes and mobile home parks and to repeal an Act named
12herein", approved September 8, 1971, as amended, to the
13township assessor, if any, or to Supervisor of Assessments or
14county assessor if there is no township assessor, or to the
15county assessor in those counties in which a county assessor is
16elected pursuant to Section 3-45 of the Property Tax Code,
17within 5 days of the entry of a mobile home into such park. The
18owner of a mobile home or manufactured home not located in a
19mobile home park, other than a mobile home or manufactured home
20with respect to which the requirements of Section 5-30 of the
21Conveyance and Encumbrance of Manufactured Homes as Real
22Property and Severance Act and the requirements of Section
233-116.1 or Section 3-116.2 of the Illinois Vehicle Code, as
24applicable, have been satisfied unless with respect to the same
25manufactured home there has been recorded an affidavit of
26severance pursuant to Section 5-50 of the Conveyance and

 

 

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1Encumbrance of Manufactured Homes as Real Property and
2Severance Act, shall, within 30 days after initial placement of
3such mobile home or manufactured home in any county and within
430 days after movement of such mobile home or manufactured home
5to a new location, record with the Office of the Recorder in
6the county where the mobile home or manufactured home is
7located file with the county assessor, Supervisor of
8Assessments or township assessor, as the case may be, a mobile
9home registration showing the name and address of the owner and
10every occupant of the mobile home or manufactured home, the
11location of the mobile home or manufactured home, the year of
12manufacture, and the square feet of floor space contained in
13such mobile home or manufactured home together with the date
14that the mobile home or manufactured home became inhabited, was
15initially installed and set up in the county, or was moved to a
16new location. Such registration shall also include the license
17number of such mobile home or manufactured home and of the
18towing vehicle, if there be any, and the State issuing such
19licenses, subject to the county's recording fees. In the case
20of a mobile home or manufactured home not located in a mobile
21home park, the registration shall be signed by the owner or
22occupant of the mobile home or manufactured home. and the title
23or certificate of origin shall be signed and recorded in the
24county where the home is located or surrendered to the county
25and held until such time the home is removed from the county.
26Titles or certificates of origin held by a mortgage company on

 

 

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1the home shall be signed and recorded in the county where
2located or surrendered to the county once the mortgage is
3released. Failure to record the registration or surrender the
4title or certificate of origin shall not prevent the home from
5being assessed and taxed as real property. It is the duty of
6each township assessor, if any, and each Supervisor of
7Assessments or county assessor if there is no township
8assessor, or the county assessor in those counties in which a
9county assessor is elected pursuant to Section 3-45 of the
10Property Tax Code, to require timely filing of a properly
11completed registration for each mobile home or manufactured
12home located in a mobile home park in his or her township or
13county, as the case may be. Any person furnishing
14misinformation for purposes of registration or failing to
15record file a required registration is guilty of a Class A
16misdemeanor. This Section applies only when the tax permitted
17by Section 3 has been imposed on mobile homes and manufactured
18homes located inside mobile home parks.
19(Source: P.A. 96-1477, eff. 1-1-11.)
 
20    Section 10-25. The Illinois Banking Act is amended by
21changing Sections 3, 5a, 5d, and 6.1 as follows:
 
22    (205 ILCS 5/3)  (from Ch. 17, par. 309)
23    Sec. 3. Formation and primary powers. It shall be lawful to
24form banks, as herein provided, for the purpose of discount and

 

 

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1deposit, buying and selling exchange and doing a general
2banking business, excepting the issuing of bills to circulate
3as money; and such banks shall have the power to loan money on
4personal and real estate security, and to accept and execute
5trusts upon obtaining a certificate of authority pursuant to
6the "Corporate Fiduciary Act", and shall be subject to all of
7the provisions of this Act. For purposes of this Section, "real
8estate" includes a manufactured home as defined in subdivision
9(53) of Section 9-102 of the Uniform Commercial Code that is
10real property as defined in Section 5-35 of the Conveyance and
11Encumbrance of Manufactured Homes as Real Property and
12Severance Act.
13(Source: P.A. 85-1402.)
 
14    (205 ILCS 5/5a)  (from Ch. 17, par. 312)
15    Sec. 5a. Reverse mortgage loans. Notwithstanding any other
16provision of this Act, a bank may engage in making "reverse
17mortgage" loans.
18    For purposes of this Section, a "reverse mortgage" loan
19shall be a loan extended on the basis of existing equity in
20homestead property. A bank, in making a "reverse mortgage"
21loan, may add deferred interest to principal or otherwise
22provide for the charging of interest or premium on the deferred
23interest.
24    The loans shall be repaid upon sale of the property or upon
25the death of the owner or, if the property is in joint tenancy,

 

 

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1upon the death of the last surviving joint tenant who had an
2interest in the property at the time the loan was initiated.
3    "Homestead" property, for purposes of this Section, means
4the domicile and contiguous real estate owned and occupied by
5the mortgagor. For purposes of this Section, "homestead"
6includes a manufactured home as defined in subdivision (53) of
7Section 9-102 of the Uniform Commercial Code, used as the
8domicile, that is real property, as defined in Section 5-35 of
9the Conveyance and Encumbrance of Manufactured Homes as Real
10Property and Severance Act, and is owned and occupied by the
11mortgagor.
12    The Commissioner of Banks and Real Estate shall prescribe
13rules governing this Section and Section 1-6a of the Illinois
14Savings and Loan Act of 1985.
15(Source: P.A. 88-643, eff. 1-1-95; 89-508, eff. 7-3-96.)
 
16    (205 ILCS 5/5d)  (from Ch. 17, par. 312.3)
17    Sec. 5d. Notwithstanding any other provision of this Act, a
18bank may engage in making revolving credit loans secured by
19mortgages or deeds of trust on real property or by security
20assignments of beneficial interests in land trusts.
21    For purposes of this Section, "revolving credit", has the
22meaning defined in Section 4.1 of "An Act in relation to the
23rate of interest and other charges in connection with sales on
24credit and the lending of money", approved May 24, 1879, as
25amended.

 

 

HB5938 Engrossed- 35 -LRB098 18594 HLH 53735 b

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

 

 

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1statutory liens, except taxes and assessments levied on said
2real property.
3    For purposes of this Section, "real property" includes a
4manufactured home as defined in subdivision (53) of Section
59-102 of the Uniform Commercial Code, that is real property as
6defined in Section 5-35 of the Conveyance and Encumbrance of
7Manufactured Homes as Real Property and Severance Act.
8(Source: P.A. 83-1539; 83-1380.)
 
9    (205 ILCS 5/6.1)  (from Ch. 17, par. 313.1)
10    Sec. 6.1. Non-recourse reverse mortgage loans.
11    (a) It is the intent of this amendatory Act of 1991 that
12homeowners at least 62 years of age be permitted to meet their
13financial needs by accessing the equity in their homes through
14a reverse mortgage. The General Assembly recognizes that many
15restrictions and requirements that exist to govern traditional
16mortgage transactions are inapplicable in the context of
17reverse mortgages. In order to foster reverse mortgage
18transactions and better serve the citizens of this State, this
19Section authorizes the making of reverse mortgages, and
20expressly relieves reverse mortgage lenders and borrowers from
21compliance with inappropriate requirements.
22    As used in this Section, "borrower" means any homeowner who
23is, or whose spouse is, at least 62 years of age.
24    For purposes of this Section, "real property" includes a
25manufactured home as defined in subdivision (53) of Section

 

 

HB5938 Engrossed- 37 -LRB098 18594 HLH 53735 b

19-102 of the Uniform Commercial Code which is real property as
2defined in Section 5-35 of the Conveyance and Encumbrance of
3Manufactured Homes as Real Property and Severance Act.
4    As used in this Section, "reverse mortgage" means a
5non-recourse loan, secured by real property, that complies with
6all of the following:
7        (1) Provides cash advances to a borrower based on the
8    equity in a borrower's owner-occupied principal residence,
9    provided that it is a residence designed to be occupied by
10    not more than 4 families.
11        (2) Requires no payment of principal or interest until
12    the entire loan becomes due and payable.
13    (b) Reverse mortgage loans shall be subject only to all of
14the following provisions:
15        (1) Payment, in whole or in part, shall be permitted
16    without penalty at any time during the term of the
17    mortgage.
18        (2) A reverse mortgage may provide for an interest rate
19    that is fixed or adjustable and may provide for interest
20    that is contingent on appreciation in the value of the
21    property.
22        (3) If a reverse mortgage provides for periodic
23    advances to a borrower, the advances may not be reduced in
24    amount or number based on any adjustment in the interest
25    rate.
26        (4) A reverse mortgage may be subject to any additional

 

 

HB5938 Engrossed- 38 -LRB098 18594 HLH 53735 b

1    terms and conditions imposed by a lender that are required
2    under the provisions of the federal Housing and Community
3    Development Act of 1987 to enable the lender to obtain
4    federal government insurance on the mortgage if the loans
5    are to be insured under that Act.
6    (c) The repayment obligation under a reverse mortgage is
7subject to all of the following:
8        (1) Temporary absences from the home not exceeding 60
9    consecutive days shall not cause the mortgage to become due
10    and payable.
11        (2) Temporary absences from the home exceeding 60 days,
12    but not exceeding one year shall not cause the mortgage to
13    become due and payable, provided that the borrower has
14    taken action that secures the home in a manner satisfactory
15    to the lender.
16        (3) The lender must disclose any interest or other fees
17    to be charged during the period that commences on the date
18    the mortgage becomes due and payable and ends when
19    repayment in full is made in accordance with applicable
20    State and federal laws, rules, and regulations.
21    (d) A reverse mortgage shall become due and payable upon
22the occurrence of any of the following events:
23        (1) The real property securing the loan is sold.
24        (2) All borrowers cease to occupy the home as a
25    principal residence.
26        (3) A fixed maturity date agreed to by the lender and

 

 

HB5938 Engrossed- 39 -LRB098 18594 HLH 53735 b

1    the borrower is reached.
2        (4) An event that is specified in the loan documents
3    and that jeopardizes the lender's security occurs.
4    (e) No reverse mortgage commitment may be made by a lender
5unless the loan applicant attests, in writing, that the
6applicant has received from the lender, at the time of initial
7inquiry, a statement prepared by the Department on Aging
8regarding the advisability and availability of independent
9information and counseling services on reverse mortgages.
10(Source: P.A. 87-488.)
 
11    Section 10-30. The Illinois Savings and Loan Act of 1985 is
12amended by changing Sections 1-10.30 and 5-2 as follows:
 
13    (205 ILCS 105/1-10.30)  (from Ch. 17, par. 3301-10.30)
14    Sec. 1-10.30. "Real property": the interests, benefits,
15and rights inherent in the ownership of the physical real
16estate. It is the rights with which the ownership of real
17estate is endowed. "Real property" includes a manufactured home
18as defined in subdivision (53) of Section 9-102 of the Uniform
19Commercial Code that is real property as defined in Section
205-35 of the Conveyance and Encumbrance of Manufactured Homes as
21Real Property and Severance Act. For purposes of this Act, the
22term "Real Estate" is synonymous with "Real Property".
23(Source: P.A. 84-543.)
 

 

 

HB5938 Engrossed- 40 -LRB098 18594 HLH 53735 b

1    (205 ILCS 105/5-2)  (from Ch. 17, par. 3305-2)
2    Sec. 5-2. Investment in loans. An association may loan
3funds to members as follows:
4    (a) On the security of withdrawable capital accounts, but
5no such loan shall exceed the withdrawal value of the pledged
6account;
7    (b) On the security of real estate:
8    (1) Of a value, determined in accordance with Section 5-12
9of this Act, sufficient to provide good and ample security for
10the loan;
11    (2) With a fee simple title or a leasehold title of not
12less duration than 10 years beyond the maturity of the loan;
13    (3) With the title established by such evidence of title as
14is consistent with sound lending practices in the locality;
15    (4) With the security interest in such real estate
16evidenced by an appropriate written instrument and the loan
17evidenced by a note, bond or similar written instrument. A loan
18on the security of the whole of the beneficial interest in a
19land trust satisfies the requirements of this paragraph if the
20title to the land is held by a corporate trustee and if the
21real estate held in the land trust meets the other requirements
22of this subsection; and
23    (5) With a mortgage loan not to exceed 40 years;
24    (c) For the purpose of repair, improvement,
25rehabilitation, furnishing or equipment of real estate or any
26other purpose;

 

 

HB5938 Engrossed- 41 -LRB098 18594 HLH 53735 b

1    (d) For the purpose of financing or refinancing an existing
2ownership interest in certificates of stock, certificates of
3beneficial interest or other evidence of an ownership interest
4in, and a proprietary lease from, a corporation, trust or
5partnership formed for the purpose of the cooperative ownership
6of real estate, secured by the assignment or transfer of such
7certificates or other evidence of ownership of the borrower;
8    (e) Through the purchase of loans which at the time of
9purchase the association could make in accordance with this
10Section and the by-laws;
11    (f) Through the purchase of installment contracts for the
12sale of real estate, and title thereto which is subject to such
13contracts, but in each instance only if the association at the
14time of purchase could make a mortgage loan of the same amount
15and for the same length of time on the security of such real
16estate;
17    (g) Through loans guaranteed or insured, wholly or in part
18by the United States or any of its instrumentalities, and
19without regard to the limits in amount and terms otherwise
20imposed by this Article;
21    (h) Through secured or unsecured loans for business,
22corporate, personal, family, or household purposes, or for
23secured or unsecured loans for agricultural or commercial
24purposes to the same extent that such agricultural or
25commercial loans are authorized by federal law for any savings
26and loan association organized under federal law and authorized

 

 

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1to do business in this State, except that loans to service
2corporations shall not be subject to the limitations of this
3paragraph;
4    (i) For the purpose of manufactured mobile home financing
5subject, however, to the regulation of the Commissioner; as
6used in this Section, "manufactured home" means a manufactured
7home as defined in subdivision (53) of Section 9-102 of the
8Uniform Commercial Code;
9    (j) Through loans to its members secured by the cash
10surrender value of any life insurance policy or any collateral
11which would be a legal investment if made by such association
12pursuant to the terms of this Act; and
13    (k) Any provision of this Act to the contrary
14notwithstanding, any association may make any loan to its
15members or investment which such association could make if it
16were incorporated and operating as an association organized
17under the laws of the United States.
18(Source: P.A. 86-137.)
 
19    Section 10-35. The Savings Bank Act is amended by changing
20Sections 6002 and 6008 as follows:
 
21    (205 ILCS 205/6002)  (from Ch. 17, par. 7306-2)
22    Sec. 6002. Investment in loans.
23    (a) Subject to the regulations of the Commissioner, a
24savings bank may loan funds as follows:

 

 

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

 

 

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1    (5) Through the purchase of loans that, at the time of
2purchase, the savings bank could make in accordance with this
3Section and the bylaws.
4    (6) Through the purchase of installment contracts for the
5sale of real estate and title thereto that is subject to the
6contracts, but in each instance only if the savings bank, at
7the time of purchase, could make a mortgage loan of the same
8amount and for the same length of time on the security of the
9real estate.
10    (7) Through loans guaranteed or insured, wholly or in part,
11by the United States or any of its instrumentalities.
12    (8) Subject to regulations adopted by the Commissioner,
13through secured or unsecured loans for business, corporate,
14commercial, or agricultural purposes; provided that the total
15of all loans granted under this paragraph shall not exceed 15%
16of the savings bank's total assets unless a greater amount is
17authorized in writing by the Commissioner.
18    (9) For the purpose of manufactured mobile home financing
19subject, however, to the regulation of the Commissioner. As
20used in this Section, "manufactured home" means a manufactured
21home as defined in subdivision (53) of Section 9-102 of the
22Uniform Commercial Code.
23    (10) Through loans secured by the cash surrender value of
24any life insurance policy or any collateral that would be a
25legal investment under the terms of this Act if made by the
26savings bank.

 

 

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1    (11) Any provision of this Act or any other law, except for
2paragraph (18) of Section 6003, to the contrary
3notwithstanding, but subject to the Financial Institutions
4Insurance Sales Law and subject to the Commissioner's
5regulations, any savings bank may make any loan or investment
6or engage in any activity that it could make or engage in if it
7were organized under State law as a savings and loan
8association or under federal law as a federal savings and loan
9association or federal savings bank.
10    (12) A savings bank may issue letters of credit or other
11similar arrangements only as provided for by regulation of the
12Commissioner with regard to aggregate amounts permitted, take
13out commitments for stand-by letters of credit, underlying
14documentation and underwriting, legal limitations on loans of
15the savings bank, control and subsidiary records, and other
16procedures deemed necessary by the Commissioner.
17    (13) For the purpose of automobile financing, subject to
18the regulation of the Commissioner.
19    (14) For the purpose of financing primary, secondary,
20undergraduate, or postgraduate education.
21    (15) Through revolving lines of credit on the security of a
22first or junior lien on the borrower's personal residence,
23based primarily on the borrower's equity, the proceeds of which
24may be used for any purpose; those loans being commonly
25referred to as home equity loans.
26    (16) As secured or unsecured credit to cover the payment of

 

 

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1checks, drafts, or other funds transfer orders in excess of the
2available balance of an account on which they are drawn,
3subject to the regulations of the Commissioner.
4    (b) For purposes of this Section, "real estate" includes a
5manufactured home as defined in subdivision (53) of Section
69-102 of the Uniform Commercial Code which is real property as
7defined in Section 5-35 of the Conveyance and Encumbrance of
8Manufactured Homes as Real Property and Severance Act.
9(Source: P.A. 90-301, eff. 8-1-97; 91-97, eff. 7-9-99.)
 
10    (205 ILCS 205/6008)  (from Ch. 17, par. 7306-8)
11    Sec. 6008. Purchase of real estate at forced sale. A
12savings bank may purchase at any sheriff's or other judicial
13sale, either public or private, any real estate upon which the
14savings bank has any mortgage, lien or other encumbrance, or in
15which the savings bank has any other interest. The savings bank
16thereafter may repair, insure, improve, sell, convey, lease,
17preserve, mortgage, exchange, or otherwise dispose of real
18estate so acquired in the best interests of the savings bank.
19For 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. 86-1213.)
 

 

 

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1    Section 10-40. The Illinois Credit Union Act is amended by
2changing Sections 46 and 46.1 as follows:
 
3    (205 ILCS 305/46)  (from Ch. 17, par. 4447)
4    Sec. 46. Loans and interest rate.
5    (1) A credit union may make loans to its members for such
6purpose and upon such security and terms, including rates of
7interest, as the credit committee, credit manager, or loan
8officer approves. Notwithstanding the provisions of any other
9law in connection with extensions of credit, a credit union may
10elect to contract for and receive interest and fees and other
11charges for extensions of credit subject only to the provisions
12of this Act and rules promulgated under this Act, except that
13extensions of credit secured by residential real estate shall
14be subject to the laws applicable thereto. The rates of
15interest to be charged on loans to members shall be set by the
16board of directors of each individual credit union in
17accordance with Section 30 of this Act and such rates may be
18less than, but may not exceed, the maximum rate set forth in
19this Section. A borrower may repay his loan prior to maturity,
20in whole or in part, without penalty. The credit contract may
21provide for the payment by the member and receipt by the credit
22union of all costs and disbursements, including reasonable
23attorney's fees and collection agency charges, incurred by the
24credit union to collect or enforce the debt in the event of a
25delinquency by the member, or in the event of a breach of any

 

 

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

 

 

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1interest on the indebtedness was to be calculated, computed,
2charged, or collected, the lender may calculate, charge and
3collect interest on the indebtedness for the period which
4elapsed between the date on which the prepayment is made and
5the date on which interest on the indebtedness was last
6computed, calculated, charged or collected at a rate equal to
71/360 of the annual rate for each day which so elapsed, which
8rate shall be applied to the indebtedness outstanding as of the
9date of prepayment. The lender shall refund to the borrower any
10interest charged or collected which exceeds that which the
11lender may charge or collect pursuant to the preceding
12sentence. The provisions of this amendatory Act of 1985 shall
13apply only to contracts or loans entered into on or after the
14effective date of this amendatory Act.
15    (3) Notwithstanding any other provision of this Act, a
16credit union authorized under this Act to make loans secured by
17an interest or equity in real estate may engage in making
18"reverse mortgage" loans to persons for the purpose of making
19home improvements or repairs, paying insurance premiums or
20paying real estate taxes on the homestead properties of such
21persons. If made, such loans shall be made on such terms and
22conditions as the credit union shall determine and as shall be
23consistent with the provisions of this Section and such rules
24and regulations as the Secretary shall promulgate hereunder.
25For purposes of this Section, a "reverse mortgage" loan shall
26be a loan extended on the basis of existing equity in homestead

 

 

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1property and secured by a mortgage on such property. Such loans
2shall be repaid upon the sale of the property or upon the death
3of the owner or, if the property is in joint tenancy, upon the
4death of the last surviving joint tenant who had such an
5interest in the property at the time the loan was initiated,
6provided, however, that the credit union and its member may by
7mutual agreement, establish other repayment terms. A credit
8union, in making a "reverse mortgage" loan, may add deferred
9interest to principal or otherwise provide for the charging of
10interest or premiums on such deferred interest. "Homestead"
11property, for purposes of this Section, means the domicile and
12contiguous real estate owned and occupied by the mortgagor.
13    (4) Notwithstanding any other provisions of this Act, a
14credit union authorized under this Act to make loans secured by
15an interest or equity in real property may engage in making
16revolving credit loans secured by mortgages or deeds of trust
17on such real property or by security assignments of beneficial
18interests in land trusts.
19    For purposes of this Section, "revolving credit" has the
20meaning defined in Section 4.1 of the Interest Act.
21    Any mortgage or deed of trust given to secure a revolving
22credit loan may, and when so expressed therein shall, secure
23not only the existing indebtedness but also such future
24advances, whether such advances are obligatory or to be made at
25the option of the lender, or otherwise, as are made within
26twenty years from the date thereof, to the same extent as if

 

 

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1such future advances were made on the date of the execution of
2such mortgage or deed of trust, although there may be no
3advance made at the time of execution of such mortgage or other
4instrument, and although there may be no indebtedness
5outstanding at the time any advance is made. The lien of such
6mortgage or deed of trust, as to third persons without actual
7notice thereof, shall be valid as to all such indebtedness and
8future advances form the time said mortgage or deed of trust is
9filed for record in the office of the recorder of deeds or the
10registrar of titles of the county where the real property
11described therein is located. The total amount of indebtedness
12that may be so secured may increase or decrease from time to
13time, but the total unpaid balance so secured at any one time
14shall not exceed a maximum principal amount which must be
15specified in such mortgage or deed of trust, plus interest
16thereon, and any disbursements made for the payment of taxes,
17special assessments, or insurance on said real property, with
18interest on such disbursements.
19    Any such mortgage or deed of trust shall be valid and have
20priority over all subsequent liens and encumbrances, including
21statutory liens, except taxes and assessments levied on said
22real property.
23    (4-5) For purposes of this Section, "real estate" and "real
24property" include a manufactured home as defined in subdivision
25(53) of Section 9-102 of the Uniform Commercial Code which is
26real property as defined in Section 5-35 of the Conveyance and

 

 

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1Encumbrance of Manufactured Homes as Real Property and
2Severance Act.
3    (5) Compliance with federal or Illinois preemptive laws or
4regulations governing loans made by a credit union chartered
5under this Act shall constitute compliance with this Act.
6    (6) Credit unions may make residential real estate mortgage
7loans on terms and conditions established by the United States
8Department of Agriculture through its Rural Development
9Housing and Community Facilities Program. The portion of any
10loan in excess of the appraised value of the real estate shall
11be allocable only to the guarantee fee required under the
12program.
13(Source: P.A. 96-141, eff. 8-7-09; 97-133, eff. 1-1-12.)
 
14    (205 ILCS 305/46.1)  (from Ch. 17, par. 4447.1)
15    Sec. 46.1. Non-recourse reverse mortgage loans. Any credit
16union authorized under this Act to make loans secured by an
17interest or equity in real estate may make non-recourse reverse
18mortgage loans as provided in Section 6.1 of the Illinois
19Banking Act.
20    For purposes of this Section, "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 Section 5-35 of the Conveyance and Encumbrance of
24Manufactured Homes as Real Property and Severance Act.
25(Source: P.A. 87-488.)
 

 

 

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1    Section 10-45. The Residential Mortgage License Act of 1987
2is amended by changing Section 1-4 as follows:
 
3    (205 ILCS 635/1-4)
4    Sec. 1-4. Definitions.
5    (a) "Residential real property" or "residential real
6estate" shall mean any real property located in Illinois, upon
7which is constructed or intended to be constructed a dwelling.
8Those terms include a manufactured home as defined in
9subdivision (53) of Section 9-102 of the Uniform Commercial
10Code which is real property as defined in Section 5-35 of the
11Conveyance and Encumbrance of Manufactured Homes as Real
12Property and Severance Act.
13    (b) "Making a residential mortgage loan" or "funding a
14residential mortgage loan" shall mean for compensation or gain,
15either directly or indirectly, advancing funds or making a
16commitment to advance funds to a loan applicant for a
17residential mortgage loan.
18    (c) "Soliciting, processing, placing, or negotiating a
19residential mortgage loan" shall mean for compensation or gain,
20either directly or indirectly, accepting or offering to accept
21an application for a residential mortgage loan, assisting or
22offering to assist in the processing of an application for a
23residential mortgage loan on behalf of a borrower, or
24negotiating or offering to negotiate the terms or conditions of

 

 

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1a residential mortgage loan with a lender on behalf of a
2borrower including, but not limited to, the submission of
3credit packages for the approval of lenders, the preparation of
4residential mortgage loan closing documents, including a
5closing in the name of a broker.
6    (d) "Exempt person or entity" shall mean the following:
7        (1) (i) Any banking organization or foreign banking
8    corporation licensed by the Illinois Commissioner of Banks
9    and Real Estate or the United States Comptroller of the
10    Currency to transact business in this State; (ii) any
11    national bank, federally chartered savings and loan
12    association, federal savings bank, federal credit union;
13    (iii) any pension trust, bank trust, or bank trust company;
14    (iv) any bank, savings and loan association, savings bank,
15    or credit union organized under the laws of this or any
16    other state; (v) any Illinois Consumer Installment Loan Act
17    licensee; (vi) any insurance company authorized to
18    transact business in this State; (vii) any entity engaged
19    solely in commercial mortgage lending; (viii) any service
20    corporation of a savings and loan association or savings
21    bank organized under the laws of this State or the service
22    corporation of a federally chartered savings and loan
23    association or savings bank having its principal place of
24    business in this State, other than a service corporation
25    licensed or entitled to reciprocity under the Real Estate
26    License Act of 2000; or (ix) any first tier subsidiary of a

 

 

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

 

 

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

 

 

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1in a corporation, foreign corporation, alien business
2organization, trust, or any other form of business organization
3regardless of whether the person owns or controls the ownership
4interest through one or more persons or one or more proxies,
5powers of attorney, nominees, corporations, associations,
6partnerships, trusts, joint stock companies, or other entities
7or devices, or any combination thereof.
8    (i) "Residential mortgage financing transaction" shall
9mean the negotiation, acquisition, sale, or arrangement for or
10the offer to negotiate, acquire, sell, or arrange for, a
11residential mortgage loan or residential mortgage loan
12commitment.
13    (j) "Personal residence address" shall mean a street
14address and shall not include a post office box number.
15    (k) "Residential mortgage loan commitment" shall mean a
16contract for residential mortgage loan financing.
17    (l) "Party to a residential mortgage financing
18transaction" shall mean a borrower, lender, or loan broker in a
19residential mortgage financing transaction.
20    (m) "Payments" shall mean payment of all or any of the
21following: principal, interest and escrow reserves for taxes,
22insurance and other related reserves, and reimbursement for
23lender advances.
24    (n) "Commissioner" shall mean the Commissioner of Banks and
25Real Estate, except that, beginning on April 6, 2009 (the
26effective date of Public Act 95-1047), all references in this

 

 

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

 

 

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1company, other than those persons, partnerships, associations,
2corporations, or limited liability companies exempted from
3licensing pursuant to Section 1-4, subsection (d), of this Act,
4who performs the activities described in subsections (c), (o),
5and (yy) of this Section.
6    (q) "Servicing" shall mean the collection or remittance for
7or the right or obligation to collect or remit for any lender,
8noteowner, noteholder, or for a licensee's own account, of
9payments, interests, principal, and trust items such as hazard
10insurance and taxes on a residential mortgage loan in
11accordance with the terms of the residential mortgage loan; and
12includes loan payment follow-up, delinquency loan follow-up,
13loan analysis and any notifications to the borrower that are
14necessary to enable the borrower to keep the loan current and
15in good standing. "Servicing" includes management of
16third-party entities acting on behalf of a residential mortgage
17licensee for the collection of delinquent payments and the use
18by such third-party entities of said licensee's servicing
19records or information, including their use in foreclosure.
20    (r) "Full service office" shall mean an office, provided by
21the licensee and not subleased from the licensee's employees,
22and staff in Illinois reasonably adequate to handle efficiently
23communications, questions, and other matters relating to any
24application for, or an existing home mortgage secured by
25residential real estate situated in Illinois with respect to
26which the licensee is brokering, funding originating,

 

 

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1purchasing, or servicing. The management and operation of each
2full service office must include observance of good business
3practices such as proper signage; adequate, organized, and
4accurate books and records; ample phone lines, hours of
5business, staff training and supervision, and provision for a
6mechanism to resolve consumer inquiries, complaints, and
7problems. The Commissioner shall issue regulations with regard
8to these requirements and shall include an evaluation of
9compliance with this Section in his or her periodic examination
10of each licensee.
11    (s) "Purchasing" shall mean the purchase of conventional or
12government-insured mortgage loans secured by residential real
13estate situated in Illinois from either the lender or from the
14secondary market.
15    (t) "Borrower" shall mean the person or persons who seek
16the services of a loan broker, originator, or lender.
17    (u) "Originating" shall mean the issuing of commitments for
18and funding of residential mortgage loans.
19    (v) "Loan brokerage agreement" shall mean a written
20agreement in which a broker or loan broker agrees to do either
21of the following:
22        (1) obtain a residential mortgage loan for the borrower
23    or assist the borrower in obtaining a residential mortgage
24    loan; or
25        (2) consider making a residential mortgage loan to the
26    borrower.

 

 

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

 

 

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1those funds in accordance with the terms of the residential
2mortgage loan.
3    (cc) "Net worth" shall have the meaning ascribed thereto in
4Section 3-5 of this Act.
5    (dd) "Affiliate" shall mean:
6        (1) any entity that directly controls or is controlled
7    by the licensee and any other company that is directly
8    affecting activities regulated by this Act that is
9    controlled by the company that controls the licensee;
10        (2) any entity:
11            (A) that is controlled, directly or indirectly, by
12        a trust or otherwise, by or for the benefit of
13        shareholders who beneficially or otherwise control,
14        directly or indirectly, by trust or otherwise, the
15        licensee or any company that controls the licensee; or
16            (B) a majority of the directors or trustees of
17        which constitute a majority of the persons holding any
18        such office with the licensee or any company that
19        controls the licensee;
20        (3) any company, including a real estate investment
21    trust, that is sponsored and advised on a contractual basis
22    by the licensee or any subsidiary or affiliate of the
23    licensee.
24    The Commissioner may define by rule and regulation any
25terms used in this Act for the efficient and clear
26administration of this Act.

 

 

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1    (ee) "First tier subsidiary" shall be defined by regulation
2incorporating the comparable definitions used by the Office of
3the Comptroller of the Currency and the Illinois Commissioner
4of Banks and Real Estate.
5    (ff) "Gross delinquency rate" means the quotient
6determined by dividing (1) the sum of (i) the number of
7government-insured residential mortgage loans funded or
8purchased by a licensee in the preceding calendar year that are
9delinquent and (ii) the number of conventional residential
10mortgage loans funded or purchased by the licensee in the
11preceding calendar year that are delinquent by (2) the sum of
12(i) the number of government-insured residential mortgage
13loans funded or purchased by the licensee in the preceding
14calendar year and (ii) the number of conventional residential
15mortgage loans funded or purchased by the licensee in the
16preceding calendar year.
17    (gg) "Delinquency rate factor" means the factor set by rule
18of the Commissioner that is multiplied by the average gross
19delinquency rate of licensees, determined annually for the
20immediately preceding calendar year, for the purpose of
21determining which licensees shall be examined by the
22Commissioner pursuant to subsection (b) of Section 4-8 of this
23Act.
24    (hh) "Loan originator" means any natural person who, for
25compensation or in the expectation of compensation, either
26directly or indirectly makes, offers to make, solicits, places,

 

 

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1or negotiates a residential mortgage loan. This definition
2applies only to Section 7-1 of this Act.
3    (ii) "Confidential supervisory information" means any
4report of examination, visitation, or investigation prepared
5by the Commissioner under this Act, any report of examination
6visitation, or investigation prepared by the state regulatory
7authority of another state that examines a licensee, any
8document or record prepared or obtained in connection with or
9relating to any examination, visitation, or investigation, and
10any record prepared or obtained by the Commissioner to the
11extent that the record summarizes or contains information
12derived from any report, document, or record described in this
13subsection. "Confidential supervisory information" does not
14include any information or record routinely prepared by a
15licensee and maintained in the ordinary course of business or
16any information or record that is required to be made publicly
17available pursuant to State or federal law or rule.
18    (jj) "Mortgage loan originator" means an individual who for
19compensation or gain or in the expectation of compensation or
20gain:
21        (i) takes a residential mortgage loan application; or
22        (ii) offers or negotiates terms of a residential
23    mortgage loan.
24    "Mortgage loan originator" includes an individual engaged
25in loan modification activities as defined in subsection (yy)
26of this Section. A mortgage loan originator engaged in loan

 

 

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1modification activities shall report those activities to the
2Department of Financial and Professional Regulation in the
3manner provided by the Department; however, the Department
4shall not impose a fee for reporting, nor require any
5additional qualifications to engage in those activities beyond
6those provided pursuant to this Act for mortgage loan
7originators.
8    "Mortgage loan originator" does not include an individual
9engaged solely as a loan processor or underwriter except as
10otherwise provided in subsection (d) of Section 7-1A of this
11Act.
12    "Mortgage loan originator" does not include a person or
13entity that only performs real estate brokerage activities and
14is licensed in accordance with the Real Estate License Act of
152000, unless the person or entity is compensated by a lender, a
16mortgage broker, or other mortgage loan originator, or by any
17agent of that lender, mortgage broker, or other mortgage loan
18originator.
19    "Mortgage loan originator" does not include a person or
20entity solely involved in extensions of credit relating to
21timeshare plans, as that term is defined in Section 101(53D) of
22Title 11, United States Code.
23    (kk) "Depository institution" has the same meaning as in
24Section 3 of the Federal Deposit Insurance Act, and includes
25any credit union.
26    (ll) "Dwelling" means a residential structure or mobile

 

 

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

 

 

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

 

 

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

 

 

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1    (xx) "Secretary" means the Secretary of the Department of
2Financial and Professional Regulation, or a person authorized
3by the Secretary or by this Act to act in the Secretary's
4stead.
5    (yy) "Loan modification" means, for compensation or gain,
6either directly or indirectly offering or negotiating on behalf
7of a borrower or homeowner to adjust the terms of a residential
8mortgage loan in a manner not provided for in the original or
9previously modified mortgage loan.
10    (zz) "Short sale facilitation" means, for compensation or
11gain, either directly or indirectly offering or negotiating on
12behalf of a borrower or homeowner to facilitate the sale of
13residential real estate subject to one or more residential
14mortgage loans or debts constituting liens on the property in
15which the proceeds from selling the residential real estate
16will fall short of the amount owed and the lien holders are
17contacted to agree to release their lien on the residential
18real estate and accept less than the full amount owed on the
19debt.
20(Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10;
2196-1216, eff. 1-1-11; 97-143, eff. 7-14-11; 97-891, eff.
228-3-12.)
 
23    Section 10-50. The Mobile Home Park Act is amended by
24changing Section 2.1 as follows:
 

 

 

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1    (210 ILCS 115/2.1)  (from Ch. 111 1/2, par. 712.1)
2    Sec. 2.1. "Manufactured home" means a factory-assembled,
3completely integrated structure designed for permanent
4habitation, with a permanent chassis, and so constructed as to
5permit its transport, on wheels temporarily or permanently
6attached to its frame, and is a movable or portable unit that
7is (i) 8 body feet or more in width, (ii) 40 body feet or more
8in length, and (iii) 320 or more square feet, constructed to be
9towed on its own chassis (comprised of frame and wheels) from
10the place of its construction to the location, or subsequent
11locations, at which it is installed and set up according to the
12manufacturer's instructions and connected to utilities for
13year-round occupancy for use as a permanent habitation, and
14designed and situated so as to permit its occupancy as a
15dwelling place for one or more persons, and specifically
16includes a "manufactured home" as defined in subdivision (53)
17of Section 9-102 of the Uniform Commercial Code. The term shall
18include units containing parts that may be folded, collapsed,
19or telescoped when being towed and that may be expected to
20provide additional cubic capacity, and that are designed to be
21joined into one integral unit capable of being separated again
22into the components for repeated towing. The term excludes
23campers and recreational vehicles. The term "mobile home" shall
24not include modular homes and their support systems. The words
25"mobile home" and "manufactured home" are synonymous for the
26purposes of this Act.

 

 

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1(Source: P.A. 96-1477, eff. 1-1-11.)
 
2    Section 10-55. The Abandoned Mobile Home Act is amended by
3changing Section 10 as follows:
 
4    (210 ILCS 117/10)
5    Sec. 10. Definitions. As used in this Act:
6    "Manufactured home" means a factory-assembled, completely
7integrated structure designed for permanent habitation, with a
8permanent chassis, and so constructed as to permit its
9transport, on wheels temporarily or permanently attached to its
10frame, and is a movable or portable unit that is (i) 8 body
11feet or more in width, (ii) 40 body feet or more in length, and
12(iii) 320 or more square feet, constructed to be towed on its
13own chassis (comprised of frame and wheels) from the place of
14its construction to the location, or subsequent locations, at
15which it is installed and set up according to the
16manufacturer's instructions and connected to utilities for
17year-round occupancy for use as a permanent habitation, and
18designed and situated so as to permit its occupancy as a
19dwelling place for one or more persons, and specifically
20includes a "manufactured home" as defined in subdivision (53)
21of Section 9-102 of the Uniform Commercial Code. The term shall
22include units containing parts that may be folded, collapsed,
23or telescoped when being towed and that may be expected to
24provide additional cubic capacity, and that are designed to be

 

 

HB5938 Engrossed- 72 -LRB098 18594 HLH 53735 b

1joined into one integral unit capable of being separated again
2into the components for repeated towing. The term excludes
3campers and recreational vehicles. The words "mobile home" and
4"manufactured home" are synonymous for the purposes of this
5Act.
6    "Abandoned mobile home" means a mobile home located inside
7a mobile home park that has no owner currently residing in the
8mobile home or authorized tenant of the owner currently
9residing in the mobile home to the best knowledge of the
10municipality; has had its electricity, natural gas, sewer, and
11water payments declared delinquent by the utility companies
12that are providing such services; and for which the Mobile Home
13Privilege Tax, imposed under the Mobile Home Local Services Tax
14Act, is delinquent for at least 3 months. A mobile home
15abandoned outside a mobile home park must be treated like other
16real property for condemnation purposes.
17    "Municipality" means any city, village, incorporated town,
18or its duly authorized agent. If an abandoned mobile home is
19located in an unincorporated area, the county where the mobile
20home is located shall have all powers granted to a municipality
21under this Act.
22(Source: P.A. 96-1477, eff. 1-1-11.)
 
23    Section 10-60. The Illinois Manufactured Housing and
24Mobile Home Safety Act is amended by changing Section 2 as
25follows:
 

 

 

HB5938 Engrossed- 73 -LRB098 18594 HLH 53735 b

1    (430 ILCS 115/2)  (from Ch. 67 1/2, par. 502)
2    Sec. 2. Unless clearly indicated otherwise by the context,
3the following words and terms when used in this Act, for the
4purpose of this Act, shall have the following meanings:
5    (a) "Manufactured home" means a manufactured home as
6defined in subdivision (53) of Section 9-102 of the Uniform
7Commercial Code. "Mobile home" means a factory-assembled,
8completely integrated structure, constructed on or before June
930, 1976, designed for permanent habitation, with a permanent
10chassis, and so constructed as to permit its transport, on
11wheels temporarily or permanently attached to its frame, that
12is a movable or portable unit that is constructed to be towed
13on its own chassis (comprised of frame and wheels) from the
14place of its construction to the location, or subsequent
15locations, at which it is connected to utilities for year-round
16occupancy for use as a permanent habitation, and designed and
17situated so as to permit its occupancy as a dwelling place for
18one or more persons. a factory-assembled, completely
19integrated structure designed for permanent habitation, with a
20permanent chassis, and so constructed as to permit its
21transport, on wheels temporarily or permanently attached to its
22frame, and is a movable or portable unit that is (i) 8 body
23feet or more in width, (ii) 40 body feet or more in length, and
24(iii) 320 or more square feet, constructed to be towed on its
25own chassis (comprised of frame and wheels) from the place of

 

 

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

 

 

HB5938 Engrossed- 75 -LRB098 18594 HLH 53735 b

1Public Health.
2    (f) "Dealer" means any person, other than a manufacturer,
3as defined in this Act, who sells 3 or more mobile homes or
4manufactured housing units in any consecutive 12-month period.
5    (g) "Codes" means the safety codes for manufactured housing
6and mobile homes promulgated by the Department. The Codes shall
7contain the standards and requirements for manufactured
8housing and mobile homes so that adequate performance for the
9intended use is made the test of acceptability. The Code of
10Standards shall permit the use of new and used technology,
11techniques, methods and materials, for both manufactured
12housing and mobile homes, consistent with recognized and
13accepted codes and standards developed by the International
14Code Council (ICC) or by the organizations that formed the ICC
15in 1994: Building Officials and Code Administrators, the
16International Conference of Building Officials, the Southern
17Building Codes Congress International, the National Fire
18Protection Association, the International Association of
19Plumbing and Mechanical Officials, the American National
20Standards Institute, the Illinois State Plumbing Code, and the
21United States Department of Housing and Urban Development,
22hereinafter referred to as "HUD", applying to manufactured
23housing and mobile homes installed and set up according to the
24manufacturer's instructions. A copy of said safety codes,
25including said revisions thereof is on file with the
26Department.

 

 

HB5938 Engrossed- 76 -LRB098 18594 HLH 53735 b

1    (h) "Seal" means a device or insignia issued by the
2Department to be displayed on the exterior of the mobile home
3or the interior of a manufactured housing unit or modular home
4to evidence compliance with the applicable safety code.
5    (i) "Modular home" means a building assembly or system of
6building sub-assemblies, designed for habitation as a dwelling
7for one or more persons, including the necessary electrical,
8plumbing, heating, ventilating and other service systems,
9which is of closed or open construction and which is made or
10assembled by a manufacturer, on or off the building site, for
11installation, or assembly and installation, on the building
12site, installed and set up according to the manufacturer's
13instructions on an approved foundation and support system. The
14construction of modular dwelling units located in Illinois is
15regulated by the Illinois Department of Public Health.
16    (j) "Closed construction" is any building, component,
17assembly or system manufactured in such a manner that all
18portions cannot readily be inspected at the installation site
19without disassembly, damage to, or destruction thereof.
20    (k) "Open construction" is any building, component,
21assembly or system manufactured in such a manner that all
22portions can be readily inspected at the installation site
23without disassembly, damage to, or destruction thereof.
24    (l) "Approved foundation and support system" means, for a
25modular home or modular dwelling unit, a closed perimeter
26formation consisting of materials such as concrete, mortared

 

 

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1concrete block, or mortared brick extending into the ground
2below the frost line which shall include, but not necessarily
3be limited to, cellars, basements, or crawl spaces, and does
4include the use of piers supporting the marriage wall of the
5home that extend below the frost line.
6    (m) "Code compliance certificate" means the certificate
7provided by the manufacturer to the Department that warrants
8that the manufactured housing unit or mobile home complies with
9the applicable code.
10    (n) "Manufactured housing", "manufactured housing unit",
11"modular dwelling", and "modular home" shall not be confused
12with "manufactured home" or "mobile home".
13(Source: P.A. 96-1477, eff. 1-1-11.)
 
14    Section 10-65. The Manufactured Home Quality Assurance Act
15is amended by changing Section 10 as follows:
 
16    (430 ILCS 117/10)
17    Sec. 10. Definitions. In this Act:
18    "Department" means the Illinois Department of Public
19Health.
20    "Licensed installer" means a person who has successfully
21completed a manufactured home installation course approved by
22the Department and paid the required fees.
23    "Manufactured home" means a "manufactured home", as
24defined in subdivision (53) of Section 9-102 of the Uniform

 

 

HB5938 Engrossed- 78 -LRB098 18594 HLH 53735 b

1Commercial Code. "Mobile home" means a factory-assembled,
2completely integrated structure, constructed on or before June
330, 1976, designed for permanent habitation, with a permanent
4chassis, and so constructed as to permit its transport, on
5wheels temporarily or permanently attached to its frame, that
6is a movable or portable unit that is constructed to be towed
7on its own chassis (comprised of frame and wheels) from the
8place of its construction to the location, or subsequent
9locations, at which it is connected to utilities for year-round
10occupancy for use as a permanent habitation, and designed and
11situated so as to permit its occupancy as a dwelling place for
12one or more persons. a factory-assembled, completely
13integrated structure designed for permanent habitation, with a
14permanent chassis, and so constructed as to permit its
15transport, on wheels temporarily or permanently attached to its
16frame, and is a movable or portable unit that is (i) 8 body
17feet or more in width, (ii) 40 body feet or more in length, and
18(iii) 320 or more square feet, constructed to be towed on its
19own chassis (comprised of frame and wheels) from the place of
20its construction to the location, or subsequent locations, at
21which it is installed and set up according to the
22manufacturer's instructions and connected to utilities for
23year-round occupancy for use as a permanent habitation, and
24designed and situated so as to permit its occupancy as a
25dwelling place for one or more persons. The terms "manufactured
26home" and "mobile home" term shall include units otherwise

 

 

HB5938 Engrossed- 79 -LRB098 18594 HLH 53735 b

1meeting their respective definitions containing parts that may
2be folded, collapsed, or telescoped when being towed and that
3may be expected to provide additional cubic capacity, and that
4are designed to be joined into one integral unit capable of
5being separated again into the components for repeated towing.
6The terms "manufactured home" and "mobile home" exclude term
7excludes campers and recreational vehicles.
8    "Manufacturer" means a manufacturer of a manufactured
9home, whether the manufacturer is located within or outside of
10the State of Illinois.
11    "Mobile home" or "manufactured home" does not include a
12modular home.
13    "Mobile home park" means a tract of land or 2 contiguous
14tracts of land that contain sites with the necessary utilities
15for 5 or more mobile homes or manufactured homes. A mobile home
16park may be operated either free of charge or for revenue
17purposes.
18(Source: P.A. 96-1477, eff. 1-1-11.)
 
19    Section 10-70. The Illinois Vehicle Code is amended by
20changing Sections 3-100, 3-102, 3-103, 3-104, 3-106, 3-107,
213-109, 3-110, 3-116, 3-202, 3-205, 3-207, and 3-208 and by
22adding Sections 1-144.03, 3-116.1, 3-116.2, and 3-116.3 as
23follows:
 
24    (625 ILCS 5/1-144.03 new)

 

 

HB5938 Engrossed- 80 -LRB098 18594 HLH 53735 b

1    Sec. 1-144.03. Mobile home or manufactured home. A mobile
2home or manufactured home means a manufactured home as defined
3in subdivision (53) of Section 9-102 of the Uniform Commercial
4Code.
 
5    (625 ILCS 5/3-100)  (from Ch. 95 1/2, par. 3-100)
6    Sec. 3-100. Definitions. For the purposes of this Chapter,
7the following words shall have the meanings ascribed to them:
8    "Electronic" includes electrical, digital, magnetic,
9optical, electromagnetic, or any other form of technology that
10entails capabilities similar to these technologies.
11    "Electronic record" means a record generated,
12communicated, received, or stored by electronic means for use
13in an information system or for transmission from one
14information system to another.
15    "Electronic signature" means a signature in electronic
16form attached to or logically associated with an electronic
17record.
18    "Owner" means a person who holds legal document of
19ownership of a vehicle, limited to a certificate of origin,
20certificate of title, salvage certificate, or junking
21certificate. However, in the event a vehicle is the subject of
22an agreement for the conditional sale or lease thereof with the
23right of purchase upon performance of the conditions stated in
24the agreement and with an immediate right of possession vested
25in the conditional vendee or lessee, or in the event a

 

 

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1mortgagor of such vehicle is entitled to possession, then such
2conditional vendee or lessee or mortgagor shall be deemed the
3owner for the purpose of this Chapter, except as provided under
4paragraph (c) of Section 3-118.
5    "Record" means information that is inscribed, stored, or
6otherwise fixed on a tangible medium or that is stored in an
7electronic or other medium and is retrievable in perceivable
8form.
9    "Signature" or "signed" includes any symbol executed or
10adopted, or any security procedure employed or adopted, using
11electronic means or otherwise, by or on behalf of a person with
12intent to authenticate a record.
13    "Vehicle" means a vehicle as defined in Section 1-217 of
14this Code. Unless otherwise specified, "vehicle" also means a
15"manufactured home" as defined in Section 1-144.03 of this
16Code.
17(Source: P.A. 91-79, eff. 1-1-00; 91-357, eff. 7-29-99; 91-772,
18eff. 1-1-01.)
 
19    (625 ILCS 5/3-102)  (from Ch. 95 1/2, par. 3-102)
20    Sec. 3-102. Exclusions.
21    No certificate of title need be obtained for:
22    1. A vehicle owned by the State of Illinois; or a vehicle
23owned by the United States unless it is registered in this
24State;
25    2. A vehicle owned by a manufacturer or dealer and held for

 

 

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1sale, even though incidentally moved on the highway or used for
2purposes of testing or demonstration, provided a dealer
3reassignment area is still available on the manufacturer's
4certificate of origin or the Illinois title; or a vehicle used
5by a manufacturer solely for testing;
6    3. A vehicle owned by a non-resident of this State and not
7required by law to be registered in this State;
8    4. A motor vehicle regularly engaged in the interstate
9transportation of persons or property for which a currently
10effective certificate of title has been issued in another
11State;
12    5. A vehicle moved solely by animal power;
13    6. An implement of husbandry;
14    7. Special mobile equipment;
15    8. An apportionable trailer or an apportionable
16semitrailer registered in the State prior to April 1, 1998.
17    9. A manufactured home for which an affidavit of affixation
18has been recorded pursuant to the Conveyance and Encumbrance of
19Manufactured Homes as Real Property and Severance Act unless
20with respect to the same manufactured home there has been
21recorded an affidavit of severance pursuant to that Act.
22(Source: P.A. 91-441, eff. 1-1-00.)
 
23    (625 ILCS 5/3-103)  (from Ch. 95 1/2, par. 3-103)
24    Sec. 3-103. Optional certificate of title.
25    (a) The owner of an implement of husbandry or special

 

 

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1mobile equipment may apply for and obtain a certificate of
2title on it. All of the provisions of this chapter, except part
3(e) of Section 3-104, are applicable to a certificate of title
4so issued, except that a person who receives a transfer of an
5interest in the vehicle without knowledge of the certificate of
6title is not prejudiced by reason of the existence of the
7certificate, and the perfection of a security interest under
8this act is not effective until the lienholder has complied
9with the provisions of applicable law which otherwise relate to
10the perfection of security interests in personal property.
11    An application for an optional certificate of title must be
12accompanied by either an exemption determination from the
13Department of Revenue showing that no tax imposed under the
14"Use Tax Act" or the "Retailers' Occupation Tax Act" is owed by
15anyone with respect to that vehicle or by a receipt from the
16Department of Revenue showing that any tax so imposed has been
17paid. No optional certificate of title shall be issued in the
18absence of such a receipt or exemption determination.
19    If the proof of payment or of nonliability is, after the
20issuance of the optional certificate of title, found to be
21invalid, the Secretary of State shall revoke the optional
22certificate of title and require that it be returned to him.
23    (b) The owner of a manufactured home which is affixed to a
24permanent foundation and for which a certificate of title has
25not previously been issued and surrendered for cancellation may
26apply for a certificate of title, including, if applicable, a

 

 

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1certificate of title issued in accordance with subsection (b)
2of Section 3-109, which shall be issued for the sole purpose of
3(i) surrendering such certificate of title for cancellation in
4accordance with Section 3-116.2 or (ii) satisfying the
5requirements of subdivision (e)(4) of Section 9-334 of the
6Uniform Commercial Code. The Secretary of State shall issue a
7certificate of title, in accordance with this Chapter, upon
8satisfaction of the application requirements of this Code.
9(Source: P.A. 78-1165.)
 
10    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)
11    Sec. 3-104. Application for certificate of title.
12    (a) The application for a certificate of title for a
13vehicle in this State must be made by the owner to the
14Secretary of State on the form prescribed and must contain:
15        1. The name, Illinois residence and mail address of the
16    owner;
17        2. A description of the vehicle including, so far as
18    the following data exists: Its make, year-model,
19    identifying number, type of body, whether new or used, as
20    to house trailers as defined in Section 1-128 of this Code,
21    and as to manufactured homes as defined in Section 1-144.03
22    of this Code, the square footage of the house trailer based
23    upon the outside dimensions of the house trailer excluding
24    the length of the tongue and hitch, and, as to vehicles of
25    the second division, whether for-hire, not-for-hire, or

 

 

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

 

 

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1        1. Any certified document of ownership so recognized
2    and issued by the other State or country and acceptable to
3    the Secretary of State, and
4        2. Any other information and documents the Secretary of
5    State reasonably requires to establish the ownership of the
6    vehicle and the existence or nonexistence of security
7    interests in it.
8    (d) If the application refers to a new vehicle it must be
9accompanied by the Manufacturer's Statement of Origin, or other
10documents as required and acceptable by the Secretary of State,
11with such assignments as may be necessary to show title in the
12applicant.
13    (e) If an application refers to a vehicle rebuilt from a
14vehicle previously salvaged, that application shall comply
15with the provisions set forth in Sections 3-302 through 3-304
16of this Code.
17    (f) An application for a certificate of title for any
18vehicle, whether purchased in Illinois or outside Illinois, and
19even if previously registered in another State, must be
20accompanied by either an exemption determination from the
21Department of Revenue showing that no tax imposed pursuant to
22the Use Tax Act or the vehicle use tax imposed by Section
233-1001 of the Illinois Vehicle Code is owed by anyone with
24respect to that vehicle, or a receipt from the Department of
25Revenue showing that any tax so imposed has been paid. An
26application for a certificate of title for any vehicle

 

 

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

 

 

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

 

 

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1expedited services shall be deposited into the Motor Vehicle
2License Plate Fund. In the event the Vehicle Services
3Department determines that the volume of expedited title
4requests received on a given day exceeds the ability of the
5Vehicle Services Department to process those requests in an
6expedited manner, the Vehicle Services Department may decline
7to provide expedited services, and the additional fee for the
8expedited service shall be refunded to the applicant.
9    (l) If the application refers to a homemade trailer, (i) it
10must be accompanied by the appropriate documentation regarding
11the source of materials used in the construction of the
12trailer, as required by the Secretary of State, (ii) the
13trailer must be inspected by a Secretary of State employee
14prior to the issuance of the title, and (iii) upon approval of
15the Secretary of State, the trailer must have a vehicle
16identification number, as provided by the Secretary of State,
17stamped or riveted to the frame.
18    (m) The holder of a Manufacturer's Statement of Origin to a
19manufactured home may deliver it to any person to facilitate
20conveying or encumbering the manufactured home. Any person
21receiving any such Manufacturer's Statement of Origin so
22delivered holds it in trust for the person delivering it.
23    (n) Within 45 days after the completion of the first retail
24sale of a manufactured home, the Manufacturer's Statement of
25Origin to that manufactured home must be surrendered to the
26Secretary of State either in conjunction with an application

 

 

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1for a certificate of title for that manufactured home or in
2accordance with Section 3-116.1.
3(Source: P.A. 96-519, eff. 1-1-10; 96-554, eff. 1-1-10;
496-1000, eff. 7-2-10; 97-918, eff. 1-1-13.)
 
5    (625 ILCS 5/3-106)  (from Ch. 95 1/2, par. 3-106)
6    Sec. 3-106. Certificate of title - Issuance - Records. (a)
7The Secretary of State shall file each application received
8and, when satisfied as to its genuineness and regularity, and
9that no tax imposed by the "Use Tax Act" or the vehicle use
10tax, as imposed by Section 3-1001 of "The Illinois Vehicle
11Code", or pursuant to the "Municipal Use Tax Act" or pursuant
12to the "County Use Tax Act" is owed as evidenced by the receipt
13for payment or determination of exemption from the Department
14of Revenue provided for in Section 3-104 of this Act, and that
15the applicant is entitled to the issuance of a certificate of
16title, shall issue a certificate of title of the vehicle.
17    (b) The Secretary of State shall maintain a record of all
18certificates of title issued by him under a distinctive title
19number assigned to the vehicle; and, in the discretion of the
20Secretary of State, in any other method determined.
21    (c) The Secretary of State shall not issue a certificate of
22title, including a certificate of title issued in accordance
23with subsection (b) of Section 3-109, to a manufactured home
24for which there has been recorded an affidavit of affixation
25pursuant to the Conveyance and Encumbrance of Manufactured

 

 

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

 

 

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

 

 

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1        3. the names and addresses of any lienholders, in the
2    order of priority as shown on the application or, if the
3    application is based on a certificate of title, as shown on
4    the certificate;
5        4. the title number assigned to the vehicle;
6        5. a description of the vehicle including, so far as
7    the following data exists: its make, year-model,
8    identifying number, type of body, whether new or used, as
9    to house trailers as defined in Section 1-128 of this Code,
10    and as to manufactured homes as defined in Section 1-144.03
11    of this Code, the square footage of the vehicle based upon
12    the outside dimensions of the house trailer excluding the
13    length of the tongue and hitch, and, if a new vehicle, the
14    date of the first sale of the vehicle for use;
15        6. an odometer certification as provided for in this
16    Code; and
17        7. any other data the Secretary of State prescribes.
18    (a-5) In the event the applicant seeks to have the vehicle
19titled as a custom vehicle or street rod, that fact must be
20stated in the application. The custom vehicle or street rod
21must be inspected as required by Section 3-406 of this Code
22prior to issuance of the title. Upon successful completion of
23the inspection, the vehicle may be titled in the following
24manner. The make of the vehicle shall be listed as the make of
25the actual vehicle or the make it is designed to resemble
26(e.g., Ford or Chevrolet); the model of the vehicle shall be

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1State shall refuse issuance of a certificate of title if any
2required fee is not paid or if he has reasonable grounds to
3believe that:
4        (a) the applicant is not the owner of the vehicle;
5        (b) the application contains a false or fraudulent
6    statement;
7        (c) the applicant fails to furnish required
8    information or documents or any additional information the
9    Secretary of State reasonably requires; or
10        (d) the applicant has not paid to the Secretary of
11    State any fees or taxes due under this Act and have not
12    been paid upon reasonable notice and demand.
13    Except as provided in Section 3-116.2, the Secretary of
14State shall not refuse to issue a certificate of title to a
15manufactured home by reason of the fact that, at any time, in
16any manner, it shall have been affixed to real property.
17(Source: P.A. 97-333, eff. 8-12-11.)
 
18    (625 ILCS 5/3-116)  (from Ch. 95 1/2, par. 3-116)
19    Sec. 3-116. When Secretary of State to issue a certificate
20of title.
21    (a) The Secretary of State, upon receipt of a properly
22assigned certificate of title, with an application for a
23certificate of title, the required fee and any other documents
24required by law, shall issue a new certificate of title in the
25name of the transferee as owner and mail it to the first

 

 

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1lienholder named in it or, if none, to the owner or owner's
2designee.
3    (b) The Secretary of State, upon receipt of an application
4for a new certificate of title by a transferee other than by
5voluntary transfer, with proof of the transfer, the required
6fee and any other documents required by law, shall issue a new
7certificate of title in the name of the transferee as owner.
8    (c) Any person, firm or corporation, who shall knowingly
9possess, buy, sell, exchange or give away, or offer to buy,
10sell, exchange or give away the certificate of title to any
11motor vehicle which is a junk or salvage, or who shall fail to
12surrender the certificate of title to the Secretary of State as
13required under the provisions of this Section and Section
143-117.2, shall be guilty of Class 3 felony.
15    (d) The Secretary of State shall file and retain for four
16(4) years a record of every surrendered certificate of title or
17proof of ownership accepted by the Secretary of State, the file
18to be maintained so as to permit the tracing of title of the
19vehicle designated therein. Such filing and retention
20requirements shall be in addition to and not in substitution
21for the recordkeeping requirements set forth in Section 3-106
22of this Code, which recordkeeping requirements are not limited
23to any period of time.
24    (e) The Secretary of State, upon receipt of an application
25for corrected certificate of title, with the original title,
26the required fee and any other required documents, shall issue

 

 

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1a corrected certificate of title in the name of the owner and
2mail it to the first lienholder named in it or, if none, to the
3owner or owner's designee.
4    (f) The Secretary of State, upon receipt of a certified
5copy of a court order awarding ownership to an applicant along
6with an application for a certificate of title and the required
7fee, shall issue a certificate of title to the applicant.
8(Source: P.A. 90-212, eff. 1-1-98.)
 
9    (625 ILCS 5/3-116.1 new)
10    Sec. 3-116.1. Surrender of Manufacturer's Statement of
11Origin to a manufactured home.
12    (a) The owner (all, if more than one) of a manufactured
13home that is covered by a Manufacturer's Statement of Origin
14and that is affixed to a permanent foundation as defined in the
15Conveyance and Encumbrance of Manufactured Homes as Real
16Property and Severance Act, or which the owner intends to affix
17to a permanent foundation as defined in the Conveyance and
18Encumbrance of Manufactured Homes as Real Property and
19Severance Act, may surrender the Manufacturer's Statement of
20Origin to the manufactured home to the Secretary of State by
21filing with the Secretary of State an application for surrender
22of Manufacturer's Statement of Origin containing or
23accompanied 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
2    including the name of the manufacturer, the make, the model
3    name, the model year, the dimensions, and the vehicle
4    identification number of the manufactured home and whether
5    it is new or used, and any other information the Secretary
6    of State requires;
7            (3) the date of purchase by the owner of the
8    manufactured home, the name and address of the person from
9    whom the home was acquired, and the names and addresses of
10    any security interest holders and lienholders in the order
11    of their apparent priority;
12            (4) a statement signed by the owner, stating either
13    (i) any facts or information known to the owner that could
14    reasonably affect the validity of the title to the
15    manufactured home or the existence or non-existence of a
16    security interest in or lien on it or (ii) that no such
17    facts or information are known to the owner;
18            (5) a certified copy of the recorded affidavit of
19    affixation in accordance with the Conveyance and
20    Encumbrance of Manufactured Homes as Real Property and
21    Severance Act;
22            (6) the original Manufacturer's Statement of
23    Origin;
24            (7) the name and mailing address of each owner of
25    the manufactured home or such owner's designee wishing to
26    receive written acknowledgment of surrender from the

 

 

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

 

 

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1the Secretary of State within 60 days of recording the related
2affidavit of affixation with the recording officer in the
3county in which the real property to which the manufactured
4home is or shall be affixed and the application is thereafter
5accepted by the Secretary of State, the requirements of this
6Section shall be deemed satisfied as of the date the affidavit
7of affixation is recorded.
8    (d) Upon written request by a person identified on the
9application for surrender of Manufacturer's Statement of
10Origin pursuant to subsection (a)(7) of this Section, the
11Secretary of State shall provide written acknowledgment of
12compliance with the provisions of this Section.
 
13    (625 ILCS 5/3-116.2 new)
14    Sec. 3-116.2. Application for surrender of title.
15    (a) The owner (all, if more than one) of a manufactured
16home that is covered by a certificate of title, including, if
17applicable, a certificate of title issued in accordance with
18subsection (b) of Section 3-109, and that is permanently
19affixed to real property as defined in the Conveyance and
20Encumbrance of Manufactured Homes as Real Property and
21Severance Act, or which the owner intends to permanently affix
22to real property as defined in the Conveyance and Encumbrance
23of Manufactured Homes as Real Property and Severance Act, may
24surrender the certificate of title to the manufactured home to
25the Secretary of State by filing with the Secretary of State an

 

 

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

 

 

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1    manufactured home or such owner's designee wishing written
2    acknowledgment of surrender from the Secretary of State;
3        (8) a release of security interests (if any) pursuant
4    to Section 3-205 of this Code; and
5        (9) any other information and documents the Secretary
6    of State reasonably requires to identify the owner of the
7    manufactured home and to enable him or her to determine
8    whether the owner satisfied the requirements of the
9    Conveyance and Encumbrance of Manufactured Homes as Real
10    Property and Severance Act and is entitled to surrender the
11    certificate of title and the existence or non-existence of
12    security interests in or liens on the manufactured home.
13    (b) The Secretary of State shall not accept for surrender a
14certificate of title to a manufactured home unless and until
15all security interests or liens perfected pursuant to Sections
163-106 and 3-202 have been released.
17    (c) When satisfied as to the genuineness and regularity of
18the surrender of a certificate of title to a manufactured home,
19payment of any applicable fees and upon satisfaction of the
20requirements of subsections (a) and (b) of this Section, the
21Secretary of State shall (i) cancel the certificate of title
22and update his or her records in accordance with the provisions
23of Section 3-106 and (ii) provide written acknowledgment of
24compliance with the provisions of this Section to each person
25identified on the application for surrender of title pursuant
26to subsection (a)(7) of this Section.

 

 

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

 

 

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1Encumbrance of Manufactured Homes as Real Property and
2Severance Act, and where the manufactured home subsequently is
3detached or severed from the real property, the owner (all, if
4more than one) of the manufactured home shall, unless exempted
5by other provisions of this Code, apply for a new certificate
6of title by filing with the Secretary of State an application
7for a certificate of title to a manufactured home, to be issued
8in accordance with subsection (b) of Section 3-109, containing
9or accompanied by:
10        (1) the name, residence, and mailing address of the
11    owner;
12        (2) a description of the manufactured home, including
13    the name of the manufacturer, the make, the model name, the
14    model year, the dimensions, and the vehicle identification
15    number or numbers of the manufactured home and whether it
16    is new or used, and any other information the Secretary of
17    State requires;
18        (3) a statement signed by the applicant, stating
19    either: (i) any facts or information known to the applicant
20    that could reasonably affect the validity of the title of
21    the manufactured home or the existence or non-existence of
22    any security interest in or lien on it or (ii) that no such
23    facts or information are known to the applicant;
24        (4) a certified copy of the recorded affidavit of
25    severance provided in accordance with the Conveyance and
26    Encumbrance of Manufactured Homes as Real Property and

 

 

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

 

 

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1    (b) A security interest is perfected by the delivery to the
2Secretary of State of the existing certificate of title, if
3any, an application for a certificate of title containing the
4name and address of the lienholder and the required fee. The
5security interest is perfected as of the time of its creation
6if the delivery to the Secretary of State is completed within
730 days after the creation of the security interest or receipt
8by the new lienholder of the existing certificate of title from
9a prior lienholder or licensed dealer, otherwise as of the time
10of the delivery.
11    (c) If a vehicle is subject to a security interest when
12brought into this State, the validity of the security interest
13is determined by the law of the jurisdiction where the vehicle
14was when the security interest attached, subject to the
15following:
16        1. If the parties understood at the time the security
17    interest attached that the vehicle would be kept in this
18    State and it was brought into this State within 30 days
19    thereafter for purposes other than transportation through
20    this State, the validity of the security interest in this
21    State is determined by the law of this State.
22        2. If the security interest was perfected under the law
23    of the jurisdiction where the vehicle was when the security
24    interest attached, the following rules apply:
25            (A) If the name of the lienholder is shown on an
26        existing certificate of title issued by that

 

 

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1        jurisdiction, his security interest continues
2        perfected in this State.
3            (B) If the name of the lienholder is not shown on
4        an existing certificate of title issued by that
5        jurisdiction, a security interest may be perfected by
6        the lienholder delivering to the Secretary of State the
7        prescribed notice and by payment of the required fee.
8        Such security interest is perfected as of the time of
9        delivery of the prescribed notice and payment of the
10        required fee.
11        3. If the security interest was not perfected under the
12    law of the jurisdiction where the vehicle was when the
13    security interest attached, it may be perfected in this
14    State; in that case perfection dates from the time of
15    perfection in this State.
16        4. A security interest may be perfected under paragraph
17    3 of this subsection either as provided in subsection (b)
18    or by the lienholder delivering to the Secretary of State a
19    notice of security interest in the form the Secretary of
20    State prescribes and the required fee.
21    (d) Except as otherwise provided in Sections 3-116.1,
223-116.2, 3-207, and the Conveyance and Encumbrance of
23Manufactured Homes as Real Property and Severance Act, after a
24certificate of title has been issued for a manufactured home
25and as long as the manufactured home is subject to any security
26interest perfected pursuant to this Section, the Secretary of

 

 

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1State shall not file an affidavit of affixation, nor cancel the
2Manufacturer's Statement of Origin, nor revoke the certificate
3of title, nor issue a certificate of title under Section 3-106,
4and, in any event, the validity and priority of any security
5interest perfected pursuant to this Section shall continue,
6notwithstanding the provision of any other law.
7(Source: P.A. 95-284, eff. 1-1-08.)
 
8    (625 ILCS 5/3-205)  (from Ch. 95 1/2, par. 3-205)
9    Sec. 3-205. Release of security interest.
10    (a) Within 21 days after receiving payment to satisfy a
11security interest in a vehicle for which the certificate of
12title is in the possession of the lienholder, he shall execute
13a release of his security interest, and mail or deliver the
14certificate and release to the next lienholder named therein,
15or, if none, to the owner or any person who delivers to the
16lienholder an authorization from the owner to receive the
17certificate. If the payment is in the form of cash, a cashier's
18check, or a certified check, the number of days is reduced to
1910 business days. If the owner desires a new certificate
20reflecting no lien, the certificate and release from the
21lienholder may be submitted to the Secretary of State, along
22with the prescribed application and required fee, for issuance
23of that new certificate.
24    (b) Within 21 days after receiving payment to satisfy a
25security interest in a vehicle for which the certificate of

 

 

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1title is in the possession of a prior lienholder, the
2lienholder whose security interest is satisfied shall execute a
3release and deliver the release to the owner or any person who
4delivers to the lienholder an authorization from the owner to
5receive it. If the payment is in the form of cash, a cashier's
6check, or a certified check, the number of days is reduced to
710 business days. The lienholder in possession of the
8certificate of title may either deliver the certificate to the
9owner, or the person authorized by him, for delivery to the
10Secretary of State, or, upon receipt of the release, may mail
11or may deliver the certificate and release, along with
12prescribed application and require fee, to the Secretary of
13State, who shall issue a new certificate.
14    (c) In addition to any other penalty, a lienholder who
15fails to execute a release of his or her security interest or
16who fails to mail or deliver the certificate and release within
17the time limit provided in subsection (a) or (b) is liable to
18the person or entity that was supposed to receive the release
19or certificate for $150 plus reasonable attorney fees and court
20costs. An action under this Section may be brought in small
21claims court or in any other appropriate court.
22    (d) The holder of a security interest in or a lien on a
23manufactured home may deliver lien release documents to any
24person to facilitate conveying or encumbering the manufactured
25home. Any person receiving any such documents so delivered
26holds the documents in trust for the security interest holder

 

 

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1or the lienholder.
2(Source: P.A. 93-621, eff. 12-15-03.)
 
3    (625 ILCS 5/3-207)  (from Ch. 95 1/2, par. 3-207)
4    Sec. 3-207. Exclusiveness of procedure.
5    The method provided in this act of perfecting and giving
6notice of security interests subject to this act is exclusive.
7Security interests subject to this act are hereby exempted from
8the provisions of law which otherwise require or relate to the
9recording or filing of instruments creating or evidencing
10security interests in vehicles including chattel mortgages and
11conditional sale agreements, provided, however, that with
12respect to a manufactured home that is or will be affixed to a
13permanent foundation, upon recordation of an affidavit of
14affixation pursuant to the Conveyance and Encumbrance of
15Manufactured Homes as Real Property and Severance Act and
16satisfaction of the requirements of Section 3-116.1 or 3-116.2,
17as applicable, any perfection or termination of a security
18interest with respect to such permanently affixed property
19shall be governed by the laws applicable to real property.
20(Source: P.A. 76-1586.)
 
21    (625 ILCS 5/3-208)  (from Ch. 95 1/2, par. 3-208)
22    Sec. 3-208. Suspension or revocation of certificates.
23    (a) The Secretary of State may suspend or revoke a
24certificate of title, upon notice and reasonable opportunity to

 

 

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1be heard in accordance with Section 2-118, when authorized by
2any other provision of law or if he finds:
3        1. The certificate of title was fraudulently procured
4    or erroneously issued, or
5        2. The vehicle has been scrapped, dismantled or
6    destroyed.
7    Except as provided in Section 3-116.2, the Secretary of
8State shall not suspend or revoke a certificate of title to a
9manufactured home by reason of the fact that, at any time, it
10shall have become affixed in any manner to real property.
11    (b) Suspension or revocation of a certificate of title does
12not, in itself, affect the validity of a security interest
13noted on it.
14    (c) When the Secretary of State suspends or revokes a
15certificate of title, the owner or person in possession of it
16shall, immediately upon receiving notice of the suspension or
17revocation, mail or deliver the certificate to the Secretary of
18State.
19    (d) The Secretary of State may seize and impound any
20certificate of title which has been suspended or revoked.
21(Source: P.A. 76-1586.)
 
22    Section 10-75. The Code of Civil Procedure is amended by
23changing Section 15-1213 as follows:
 
24    (735 ILCS 5/15-1213)  (from Ch. 110, par. 15-1213)

 

 

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1    Sec. 15-1213. Real Estate. "Real estate" means land or any
2estate or interest in, over or under land (including minerals,
3air rights, structures, fixtures and other things which by
4custom, usage or law pass with a conveyance of land though not
5described or mentioned in the contract of sale or instrument of
6conveyance). "Mortgaged real estate" means the real estate
7which is the subject of a mortgage. "Real Estate" includes a
8manufactured home as defined in subdivision (53) of Section
99-102 of the Uniform Commercial Code that is real property as
10defined in the Conveyance and Encumbrance of Manufactured Homes
11as Real Property and Severance Act.
12(Source: P.A. 84-1462.)
 
13    Section 10-80. The Conveyances Act is amended by changing
14Section 38 as follows:
 
15    (765 ILCS 5/38)  (from Ch. 30, par. 37)
16    Sec. 38. The term "real estate," as used in this act, shall
17be construed as co-extensive in meaning with "lands, tenements
18and hereditaments," and as embracing all chattels real. "Real
19estate" and "real property" include a manufactured home as
20defined in subdivision (53) of Section 9-102 of the Uniform
21Commercial Code that is real property as defined in the
22Conveyance and Encumbrance of Manufactured Homes as Real
23Property and Severance Act. This act shall not be construed so
24as to embrace last wills, except as herein expressly provided.

 

 

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1(Source: P.A. 84-551.)
 
2    Section 10-85. The Residential Real Property Disclosure
3Act is amended by changing Section 5 as follows:
 
4    (765 ILCS 77/5)
5    Sec. 5. Definitions. As used in this Act, unless the
6context otherwise requires the following terms have the meaning
7given in this Section.
8    "Residential real property" means real property improved
9with not less than one nor more than 4 residential dwelling
10units; units in residential cooperatives; or, condominium
11units, including the limited common elements allocated to the
12exclusive use thereof that form an integral part of the
13condominium unit. The term includes a manufactured home as
14defined in subdivision (53) of Section 9-102 of the Uniform
15Commercial Code that is real property as defined in the
16Conveyance and Encumbrance of Manufactured Homes as Real
17Property and Severance Act.
18    "Seller" means every person or entity who is an owner,
19beneficiary of a trust, contract purchaser or lessee of a
20ground lease, who has an interest (legal or equitable) in
21residential real property. However, "seller" shall not include
22any person who has both (i) never occupied the residential real
23property and (ii) never had the management responsibility for
24the residential real property nor delegated such

 

 

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

 

 

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1in length, and (iii) 320 or more square feet, constructed to be
2towed on its own chassis (comprised of frame and wheels) from
3the place of its construction to the location, or subsequent
4locations, at which it is installed and set up according to the
5manufacturer's instructions and connected to utilities for
6year-round occupancy for use as a permanent habitation, and
7designed and situated so as to permit its occupancy as a
8dwelling place for one or more persons, and specifically
9includes a "manufactured home" as defined in subdivision (53)
10of Section 9-102 of the Uniform Commercial Code. The term shall
11include units containing parts that may be folded, collapsed,
12or telescoped when being towed and that may be expected to
13provide additional cubic capacity, and that are designed to be
14joined into one integral unit capable of being separated again
15into the components for repeated towing. The term excludes
16campers and recreational vehicles. The words "mobile home" and
17"manufactured home" are synonymous for the purposes of this
18Act.
19    (c) "Mobile Home Park" or "Park" means a tract of land or 2
20contiguous tracts of land that contain sites with the necessary
21utilities for 5 or more mobile homes or manufactured homes. A
22mobile home park may be operated either free of charge or for
23revenue purposes.
24    (d) "Park Owner" means the owner of a mobile home park and
25any person authorized to exercise any aspect of the management
26of the premises, including any person who directly or

 

 

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1indirectly receives rents and has no obligation to deliver the
2whole of such receipts to another person.
3    (e) "Tenant" means any person who occupies a mobile home
4rental unit for dwelling purposes or a lot on which he parks a
5mobile home for an agreed upon consideration.
6    (f) "Rent" means any money or other consideration given for
7the right of use, possession and occupancy of property, be it a
8lot, a mobile home, or both.
9    (g) "Master antenna television service" means any and all
10services provided by or through the facilities of any closed
11circuit coaxial cable communication system, or any microwave or
12similar transmission services other than a community antenna
13television system as defined in Section 11-42-11 of the
14Illinois Municipal Code.
15(Source: P.A. 96-1477, eff. 1-1-11.)
 
16    Section 10-95. The Mortgage Act is amended by adding
17Section 13.1 as follows:
 
18    (765 ILCS 905/13.1 new)
19    Sec. 13.1. Real estate; real property. As used in this Act,
20"real estate" and "real property" include a manufactured home
21as defined in subdivision (53) of Section 9-102 of the Uniform
22Commercial Code that is real property as defined in the
23Conveyance and Encumbrance of Manufactured Homes as Real
24Property and Severance Act.
 

 

 

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1    Section 10-100. The Joint Tenancy Act is amended by adding
2Section 5 as follows:
 
3    (765 ILCS 1005/5 new)
4    Sec. 5. Real estate; real property. As used in this Act,
5"real estate" and "real property" include a manufactured home
6as defined in subdivision (53) of Section 9-102 of the Uniform
7Commercial Code that is real property as defined in the
8Conveyance and Encumbrance of Manufactured Homes as Real
9Property and Severance Act.
 
10    Section 10-105. The Uniform Commercial Code is amended by
11changing Section 9-102 as follows:
 
12    (810 ILCS 5/9-102)  (from Ch. 26, par. 9-102)
13    Sec. 9-102. Definitions and index of definitions.
14    (a) Article 9 definitions. In this Article:
15        (1) "Accession" means goods that are physically united
16    with other goods in such a manner that the identity of the
17    original goods is not lost.
18        (2) "Account", except as used in "account for", means a
19    right to payment of a monetary obligation, whether or not
20    earned by performance, (i) for property that has been or is
21    to be sold, leased, licensed, assigned, or otherwise
22    disposed of, (ii) for services rendered or to be rendered,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        clearance or settlement services for a board of trade
2        that has been designated as a contract market pursuant
3        to federal commodities law.
4        (18) "Communicate" means:
5            (A) to send a written or other tangible record;
6            (B) to transmit a record by any means agreed upon
7        by the persons sending and receiving the record; or
8            (C) in the case of transmission of a record to or
9        by a filing office, to transmit a record by any means
10        prescribed by filing-office rule.
11        (19) "Consignee" means a merchant to which goods are
12    delivered in a consignment.
13        (20) "Consignment" means a transaction, regardless of
14    its form, in which a person delivers goods to a merchant
15    for the purpose of sale and:
16            (A) the merchant:
17                (i) deals in goods of that kind under a name
18            other than the name of the person making delivery;
19                (ii) is not an auctioneer; and
20                (iii) is not generally known by its creditors
21            to be substantially engaged in selling the goods of
22            others;
23            (B) with respect to each delivery, the aggregate
24        value of the goods is $1,000 or more at the time of
25        delivery;
26            (C) the goods are not consumer goods immediately

 

 

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

 

 

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

 

 

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1        (32) "Encumbrance" means a right, other than an
2    ownership interest, in real property. The term includes
3    mortgages and other liens on real property.
4        (33) "Equipment" means goods other than inventory,
5    farm products, or consumer goods.
6        (34) "Farm products" means goods, other than standing
7    timber, with respect to which the debtor is engaged in a
8    farming operation and which are:
9            (A) crops grown, growing, or to be grown,
10        including:
11                (i) crops produced on trees, vines, and
12            bushes; and
13                (ii) aquatic goods produced in aquacultural
14            operations;
15            (B) livestock, born or unborn, including aquatic
16        goods produced in aquacultural operations;
17            (C) supplies used or produced in a farming
18        operation; or
19            (D) products of crops or livestock in their
20        unmanufactured states.
21        (35) "Farming operation" means raising, cultivating,
22    propagating, fattening, grazing, or any other farming,
23    livestock, or aquacultural operation.
24        (36) "File number" means the number assigned to an
25    initial financing statement pursuant to Section 9-519(a).
26        (37) "Filing office" means an office designated in

 

 

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

 

 

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

 

 

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

 

 

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1    certificated or uncertificated, security entitlement,
2    securities account, commodity contract, or commodity
3    account.
4        (50) "Jurisdiction of organization", with respect to a
5    registered organization, means the jurisdiction under
6    whose law the organization is formed or organized.
7        (51) "Letter-of-credit right" means a right to payment
8    or performance under a letter of credit, whether or not the
9    beneficiary has demanded or is at the time entitled to
10    demand payment or performance. The term does not include
11    the right of a beneficiary to demand payment or performance
12    under a letter of credit.
13        (52) "Lien creditor" means:
14            (A) a creditor that has acquired a lien on the
15        property involved by attachment, levy, or the like;
16            (B) an assignee for benefit of creditors from the
17        time of assignment;
18            (C) a trustee in bankruptcy from the date of the
19        filing of the petition; or
20            (D) a receiver in equity from the time of
21        appointment.
22        (53) "Manufactured home" means a structure,
23    transportable in one or more sections, which, in the
24    traveling mode, is eight body feet or more in width or 40
25    body feet or more in length, or, when erected on site, is
26    320 or more square feet, and which is built on a permanent

 

 

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1    chassis and designed to be used as a dwelling with or
2    without a permanent foundation when connected to the
3    required utilities, and includes the plumbing, heating,
4    air-conditioning, and electrical systems contained
5    therein. The term includes any structure that meets all of
6    the requirements of this paragraph except the size
7    requirements and with respect to which the manufacturer
8    voluntarily files a certification required by the United
9    States Secretary of Housing and Urban Development and
10    complies with the standards established under Title 42 of
11    the United States Code. The term "manufactured home" does
12    not include campers and recreational vehicles
13    factory-assembled, completely integrated structure
14    designed for permanent habitation, with a permanent
15    chassis, and so constructed as to permit its transport, on
16    wheels temporarily or permanently attached to its frame,
17    and is a movable or portable unit that is (i) 8 body feet
18    or more in width, (ii) 40 body feet or more in length, and
19    (iii) 320 or more square feet, constructed to be towed on
20    its own chassis (comprised of frame and wheels) from the
21    place of its construction to the location, or subsequent
22    locations, at which it is installed and set up according to
23    the manufacturer's instructions and connected to utilities
24    for year-round occupancy for use as a permanent habitation,
25    and designed and situated so as to permit its occupancy as
26    a dwelling place for one or more persons. The term shall

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        assignor or assignee of a secured obligation, or
2        assignor or assignee of a security interest is a State
3        or a governmental unit of a State.
4        (68) "Public organic record" means a record that is
5    available to the public for inspection and is:
6            (A) a record consisting of the record initially
7        filed with or issued by a State or the United States to
8        form or organize an organization and any record filed
9        with or issued by the State or the United States which
10        amends or restates the initial record;
11            (B) an organic record of a business trust
12        consisting of the record initially filed with a State
13        and any record filed with the State which amends or
14        restates the initial record, if a statute of the State
15        governing business trusts requires that the record be
16        filed with the State; or
17            (C) a record consisting of legislation enacted by
18        the legislature of a State or the Congress of the
19        United States which forms or organizes an
20        organization, any record amending the legislation, and
21        any record filed with or issued by the State or the
22        United States which amends or restates the name of the
23        organization.
24        (69) "Pursuant to commitment", with respect to an
25    advance made or other value given by a secured party, means
26    pursuant to the secured party's obligation, whether or not

 

 

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

 

 

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

 

 

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

 

 

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1        or trolley bus;
2            (B) transmitting communications electrically,
3        electromagnetically, or by light;
4            (C) transmitting goods by pipeline or sewer; or
5            (D) transmitting or producing and transmitting
6        electricity, steam, gas, or water.
7    (b) Definitions in other Articles. "Control" as provided in
8Section 7-106 and the following definitions in other Articles
9apply to this Article:
10    "Applicant". Section 5-102.
11    "Beneficiary". Section 5-102.
12    "Broker". Section 8-102.
13    "Certificated security". Section 8-102.
14    "Check". Section 3-104.
15    "Clearing corporation". Section 8-102.
16    "Contract for sale". Section 2-106.
17    "Customer". Section 4-104.
18    "Entitlement holder". Section 8-102.
19    "Financial asset". Section 8-102.
20    "Holder in due course". Section 3-302.
21    "Issuer" (with respect to a letter of credit or
22letter-of-credit right). Section 5-102.
23    "Issuer" (with respect to a security). Section 8-201.
24    "Issuer" (with respect to documents of title). Section
257-102.
26    "Lease". Section 2A-103.

 

 

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

 

 

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1    Section 10-110. The Interest Act is amended by changing
2Sections 4, 4.2, and 4a as follows:
 
3    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
4    Sec. 4. General interest rate.
5    (1) Except as otherwise provided in Section 4.05, in all
6written contracts it shall be lawful for the parties to
7stipulate or agree that 9% per annum, or any less sum of
8interest, shall be taken and paid upon every $100 of money
9loaned or in any manner due and owing from any person to any
10other person or corporation in this state, and after that rate
11for a greater or less sum, or for a longer or shorter time,
12except as herein provided.
13    The maximum rate of interest that may lawfully be
14contracted for is determined by the law applicable thereto at
15the time the contract is made. Any provision in any contract,
16whether made before or after July 1, 1969, which provides for
17or purports to authorize, contingent upon a change in the
18Illinois law after the contract is made, any rate of interest
19greater than the maximum lawful rate at the time the contract
20is made, is void.
21    It is lawful for a state bank or a branch of an
22out-of-state bank, as those terms are defined in Section 2 of
23the Illinois Banking Act, to receive or to contract to receive
24and collect interest and charges at any rate or rates agreed
25upon by the bank or branch and the borrower. It is lawful for a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    same sole proprietorship, partnership, or corporation;
2        (n) Loans to or for the benefit of students made by an
3    institution of higher education.
4    (2) Except for loans described in subparagraph (a), (c),
5(d), (e), (f) or (i) of subsection (1) of this Section, and
6except to the extent permitted by the applicable statute for
7loans made pursuant to Section 4a or pursuant to the Consumer
8Installment Loan Act:
9        (a) Whenever the rate of interest exceeds 8% per annum
10    on any written contract, agreement or bond for deed
11    providing for the installment purchase of residential real
12    estate, or on any loan secured by a mortgage on residential
13    real estate, it shall be unlawful to provide for a
14    prepayment penalty or other charge for prepayment.
15        (b) No agreement, note or other instrument evidencing a
16    loan secured by a mortgage on residential real estate, or
17    written contract, agreement or bond for deed providing for
18    the installment purchase of residential real estate, may
19    provide for any change in the contract rate of interest
20    during the term thereof. However, if the Congress of the
21    United States or any federal agency authorizes any class of
22    lender to enter, within limitations, into mortgage
23    contracts or written contracts, agreements or bonds for
24    deed in which the rate of interest may be changed during
25    the term of the contract, any person, firm, corporation or
26    other entity not otherwise prohibited from entering into

 

 

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

 

 

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1interest on the indebtedness for the period which elapsed
2between the date on which the prepayment is made and the date
3on which interest on the indebtedness was last computed,
4calculated, charged or collected at a rate equal to 1/360 of
5the annual rate for each day which so elapsed, which rate shall
6be applied to the indebtedness outstanding as of the date of
7prepayment. The lender shall refund to the borrower any
8interest charged or collected which exceeds that which the
9lender may charge or collect pursuant to the preceding
10sentence. The provisions of this amendatory Act of 1985 shall
11apply only to contracts or loans entered into on or after the
12effective date of this amendatory Act, but shall not apply to
13contracts or loans entered into on or after that date that are
14subject to Section 4a of this Act, the Consumer Installment
15Loan Act, the Payday Loan Reform Act, or the Retail Installment
16Sales Act, or that provide for the refund of precomputed
17interest on prepayment in the manner provided by such Act.
18    (5) For purposes of items (a) and (c) of subsection (1) of
19this Section, a rate or amount of interest may be lawfully
20computed when applying the ratio of the annual interest rate
21over a year based on 360 days. The provisions of this
22amendatory Act of the 96th General Assembly are declarative of
23existing law.
24    (6) For purposes of this Section, "real estate" and "real
25property" include a manufactured home, as defined in
26subdivision (53) of Section 9-102 of the Uniform Commercial

 

 

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1Code that is real property as defined in the Conveyance and
2Encumbrance of Manufactured Homes as Real Property and
3Severance Act.
4(Source: P.A. 95-331, eff. 8-21-07; 96-1421, eff. 8-3-10.)
 
5    (815 ILCS 205/4.2)  (from Ch. 17, par. 6407)
6    Sec. 4.2. Revolving credit; billing statements;
7disclosures. On a revolving credit which complies with
8subparagraphs (a), (b), (c), (d) and (e) of this Section 4.2,
9it is lawful for any bank that has its main office or, after
10May 31, 1997, a branch in this State, a state or federal
11savings and loan association with its main office in this
12State, a state or federal credit union with its main office in
13this State, or a lender licensed under the Consumer Finance
14Act, the Consumer Installment Loan Act or the Sales Finance
15Agency Act, as such Acts are now and hereafter amended, to
16receive or contract to receive and collect interest in any
17amount or at any rate agreed upon by the parties to the
18revolving credit arrangement. It is lawful for any other lender
19to receive or contract to receive and collect interest in an
20amount not in excess of 1 1/2% per month of either the average
21daily unpaid balance of the principal of the debt during the
22billing cycle, or of the unpaid balance of the debt on
23approximately the same day of the billing cycle. If a lender
24under a revolving credit arrangement notifies the debtor at
25least 30 days in advance of any lawful increase in the amount

 

 

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

 

 

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

 

 

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

 

 

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1the arrangement.
2    (d) The lender under a revolving credit arrangement may
3provide credit life insurance or credit accident and health
4insurance, or both, with respect to the debtor and may charge
5the debtor therefor. Credit life insurance and credit accident
6and health insurance, and any charge therefor made to the
7debtor, shall comply with Article IX 1/2 of the Illinois
8Insurance Code, as now or hereafter amended, and all lawful
9requirements of the Director of Insurance related thereto. This
10insurance is in force with respect to each loan or advance made
11under a revolving credit arrangement as soon as the loan or
12advance is made. The purchase of this insurance from an agent,
13broker or insurer specified by the lender may not be a
14condition precedent to the revolving credit arrangement or to
15the making of any loan or advance thereunder.
16    (e) Whenever interest is contracted for or received under
17this Section, no amount in addition to the charges authorized
18by this Act may be directly or indirectly charged, contracted
19for or received whether as interest, service charges, costs of
20investigations or enforcements or otherwise.
21    (f) The lender under a revolving credit arrangement must
22compute at year end the total amount charged to the debtor's
23account during the year, including service charges, finance
24charges, late charges and any other charges authorized by this
25Act, and upon request must furnish such information to the
26debtor within 30 days after the end of the year, or if the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1dividend or other benefit by the creditor or an employee,
2affiliate or associate of the creditor from the insurance
3authorized by this Section.
4    (f) When interest is contracted for or received under this
5Section, the lender must disclose the following items to the
6obligor in a written statement before the loan is consummated:
7        (1) the amount and date of the loan contract;
8        (2) the amount of loan credit using the term "amount
9    financed";
10        (3) every deduction from the amount financed or payment
11    made by the obligor for insurance and the type of insurance
12    for which each deduction or payment was made;
13        (4) every other deduction from the loan or payment made
14    by the obligor in connection with obtaining the loan;
15        (5) the date on which the finance charge begins to
16    accrue if different from the date of the transaction;
17        (6) the total amount of the loan charge for the
18    scheduled term of the loan contract with a description of
19    each amount included using the term "finance charge";
20        (7) the finance charge expressed as an annual
21    percentage rate using the term "annual percentage rate".
22    "Annual percentage rate" means the nominal annual
23    percentage rate of finance charge determined in accordance
24    with the actuarial method of computation with an accuracy
25    at least to the nearest 1/4 of 1%; or at the option of the
26    lender by application of the United States rule so that it

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (815 ILCS 375/2.1)  (from Ch. 121 1/2, par. 562.1)
2    Sec. 2.1.
3    "Motor vehicle" means a motor vehicle as defined in The
4Illinois Vehicle Code but does not include bicycles,
5motorcycles, motor scooters, snowmobiles, trailers, and farm
6equipment, and manufactured homes as defined in subdivision
7(53) of Section 9-102 of the Uniform Commercial Code.
8(Source: P.A. 77-1167.)
 
9    Section 10-120. The Retail Installment Sales Act is amended
10by changing Section 2.1 as follows:
 
11    (815 ILCS 405/2.1)  (from Ch. 121 1/2, par. 502.1)
12    Sec. 2.1. "Goods" means all goods used or purchased
13primarily for personal, family, or household purposes. "Goods"
14includes goods purchased primarily for agricultural purposes
15only for the purposes of the credit disclosure requirements of
16this Act. "Goods" includes merchandise certificates or coupons
17issued by a retail seller to be used in their face amount in
18the purchase of goods or services sold by such a seller but
19does not include money or other things in action. It also
20includes goods which are furnished or used, at the time of sale
21or subsequently, in the modernization, rehabilitation, repair,
22alteration, improvement, or construction of real estate so as
23to become a part of that real estate whether or not severable
24therefrom. "Goods" includes a manufactured home as defined in

 

 

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1subdivision (53) of Section 9-102 of the Uniform Commercial
2Code that is not real property as defined in the Conveyance and
3Encumbrance of Manufactured Homes as Real Property and
4Severance Act. "Goods" does not include a motor vehicle as
5defined in The Illinois Vehicle Code, but does include
6bicycles, motorcycles, motor scooters, snowmobiles and
7trailers when purchased primarily for personal, family or
8household purposes. "Goods" does not include goods used or
9purchased primarily for business or commercial purposes.
10(Source: P.A. 77-1166.)
 
11
ARTICLE 99. EFFECTIVE DATE

 
12    Section 99-999. Effective date. This Act takes effect upon
13becoming 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