Full Text of HB1195 96th General Assembly
HB1195eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning vacant and abandoned property.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Illinois Land Banking Act. | 6 |
| Section 5. Findings. There is a continuing need to | 7 |
| strengthen and revitalize the economy of this State. Vacant and | 8 |
| abandoned properties threaten communities around the State | 9 |
| because those properties diminish property values, enable | 10 |
| crime, and create health hazards. Municipalities are often | 11 |
| unaware of which properties are at risk of becoming vacant and | 12 |
| abandoned. Municipalities have an interest in knowing the | 13 |
| status of the housing stock located in their jurisdictions. | 14 |
| Local governments should be empowered to acquire, develop, | 15 |
| maintain, and dispose of vacant and abandoned properties that | 16 |
| present a threat to communities around the State. | 17 |
| Municipalities lack many of the tools necessary to ensure | 18 |
| adequate property maintenance. Municipalities are unable to | 19 |
| recover the reasonable costs of their property maintenance | 20 |
| activity. | 21 |
| Section 10. Definitions. | 22 |
| "Authority" means the land bank authority created pursuant |
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| to this Act.
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| "Intergovernmental agreement" means a contractual | 3 |
| agreement between one or more governmental agencies, | 4 |
| including, but not limited to, an agreement to jointly exercise | 5 |
| any power, privilege, or authority that agencies share in | 6 |
| common and that each might exercise separately under this Act.
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| Section 15. Authorization. A municipality may create a land | 8 |
| bank authority with the powers and restrictions specified in | 9 |
| this Act. In creating an authority, the municipality shall | 10 |
| provide for all of the following: | 11 |
| (1) The incorporation of the authority as a public | 12 |
| body, corporate and politic.
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| (2) Articles of incorporation for the authority, which | 14 |
| must specify a list of permissible purposes for authority | 15 |
| activity under this Act.
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| (3) The size of the board of directors for the | 17 |
| authority, which shall be composed of an odd number of | 18 |
| members.
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| (4) The qualifications, methods of selection, and | 20 |
| terms of office of the board members.
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| Section 20. Election of tax remittance. A municipality may | 22 |
| authorize the remittance of a portion of taxes collected on | 23 |
| real property, pursuant to the Property Tax Code, to the | 24 |
| authority that sold or conveyed real property in order to |
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| further the purposes of this Act. The municipality may elect to | 2 |
| have up to 50% of those taxes remitted to the authority for up | 3 |
| to 5 years after the land bank has completed the sale or | 4 |
| conveyance of the property. | 5 |
| Section 25. Board of directors. The board of the authority | 6 |
| shall meet from time to time as required, and the presence of a | 7 |
| majority of the board of directors shall constitute a quorum. A | 8 |
| chairperson shall be elected from among the members, and he or | 9 |
| she shall execute all deeds, leases, and contracts of the | 10 |
| authority when authorized by the board. The board of the | 11 |
| authority shall conduct meetings in accordance with the Open | 12 |
| Meetings Act. The board of the authority shall adopt a code of | 13 |
| ethics for its directors, officers, and employees. The board of | 14 |
| the authority shall establish policies and procedures | 15 |
| requiring the disclosure of relationships that may give rise to | 16 |
| a conflict of interest. The board of the authority shall | 17 |
| require that any member of the board with a direct or indirect | 18 |
| interest in any matter disclose the member's interest to the | 19 |
| board before the board takes any action on that matter. Members | 20 |
| of the board of directors of an authority shall serve without | 21 |
| compensation. | 22 |
| Section 30. Powers. Except as otherwise provided in this | 23 |
| Act, an authority may do all things necessary or convenient to | 24 |
| implement the purposes, objectives, and provisions of this Act, |
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| including but not limited to the following: | 2 |
| (a) Acquire property pursuant to Section 35 of this | 3 |
| Act.
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| (b) Adopt, amend, and repeal bylaws for the regulation | 5 |
| of its affairs and the conduct of its business.
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| (c) Sue and be sued in its own name and plead and be | 7 |
| impleaded, including, but not limited to, defending the | 8 |
| authority in an action to clear title to property conveyed | 9 |
| by the authority.
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| (d) Take any action, provide any notice, or instate any | 11 |
| proceeding required to clear or quiet title to property | 12 |
| held by the authority in order to establish ownership by | 13 |
| and vest title to property in the authority.
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| (e) Be made party to and defend any action or | 15 |
| proceeding concerning title claims against property held | 16 |
| by the authority.
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| (f) Borrow money and issue bonds and notes according to | 18 |
| the provisions of this Act.
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| (g) Enter into contracts and other instruments | 20 |
| necessary, incidental, or convenient to the performance of | 21 |
| its duties and the exercise of its powers, including, but | 22 |
| not limited to, intergovernmental agreements, for the | 23 |
| joint exercise of power under this Act. | 24 |
| (h) Enter into contracts for the management of, the | 25 |
| collection of rent from, and the sale of real property held | 26 |
| by an authority. |
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| (i) Enter into contracts with other entities, public or | 2 |
| private, for the provision of all or a portion of the | 3 |
| services necessary for the management and operation of the | 4 |
| authority.
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| (j) Solicit and accept gifts, grants, labor, loans, and | 6 |
| other aid from any person, the federal government, this | 7 |
| State, a political subdivision of this State or any agency | 8 |
| of the federal government, or an intergovernmental entity | 9 |
| created under the laws of this State or participate in any | 10 |
| other way in a program of the federal government, this | 11 |
| State, a political subdivision of this State, or an | 12 |
| intergovernmental entity created under the laws of this | 13 |
| State.
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| (k) Procure insurance against loss in connection with | 15 |
| the property, assets, or activities of the authority.
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| (l) Control, hold, manage, maintain, operate, repair, | 17 |
| lease as lessor, secure, prevent the waste or deterioration | 18 |
| of, demolish, and take all other actions necessary to | 19 |
| preserve the value of the property it holds or owns.
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| (m) Remediate environmental contamination on any | 21 |
| property held by the authority.
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| (n) Fix, charge, and collect rents, fees, and charges | 23 |
| for use of property under the control of the authority or | 24 |
| for services provided by the authority.
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| (o) Grant or acquire a license, easement, or option | 26 |
| with respect to property as the authority determines is |
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| reasonably necessary to achieve the purposes of the Act.
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| (p) Pay any tax or special assessment due on property | 3 |
| acquired or owned by the authority.
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| (q) Invest money of the authority, at the discretion of | 5 |
| the board of directors of the authority, in instruments, | 6 |
| obligations, securities, or property determined proper by | 7 |
| the board of directors of the authority, and name and use | 8 |
| depositories for its money. | 9 |
| (r)
Employ its own employees or use employees of the | 10 |
| authorizing municipality or employees of the parties to | 11 |
| intergovernmental agreements.
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| (s) Employ legal and technical experts, other | 13 |
| officers, agents, or employees and pay them from the funds | 14 |
| of the authority and determine the qualifications, duties, | 15 |
| and compensation of those it employs.
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| (t) The board of directors of an authority may delegate | 17 |
| to one or more of its members, officers, agents, or | 18 |
| employees any powers or duties it considers proper.
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| (u) Reimburse members of the board of directors of the | 20 |
| authority for actual and necessary expenses subject to | 21 |
| available appropriations.
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| (v) Contract for goods and services and engage | 23 |
| personnel as necessary and engage the services of private | 24 |
| consultants, managers, legal counsel, engineers, accounts, | 25 |
| and auditors for rendering professional financial | 26 |
| assistance and advice payable out of any money available to |
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| the authority.
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| (w) Prepare the reports or plans the authority | 3 |
| considers necessary to assist it in the exercise of its | 4 |
| powers under this Act and to monitor and evaluate progress | 5 |
| under this Act.
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| (x) Do all other things necessary or convenient to | 7 |
| achieve the objectives and purposes of the authority or | 8 |
| other laws that relate to the purposes and responsibility | 9 |
| of the authority.
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| The enumeration of a power in this Act shall not be | 11 |
| construed as a limitation upon the general powers of an | 12 |
| authority. | 13 |
| Section 35. Acquisition of property. An authority may | 14 |
| acquire by gift, devise, transfer, exchange, foreclosure, | 15 |
| purchase, or otherwise on terms and conditions and in a manner | 16 |
| the authority considers proper, real property within the | 17 |
| authority's jurisdiction, or rights or interests in real | 18 |
| property within the authority's jurisdiction. | 19 |
| An authority may acquire by gift, devise, transfer, | 20 |
| exchange, foreclosure, purchase, or otherwise on terms and | 21 |
| conditions and in a manner the authority considers proper, real | 22 |
| property outside of the authority's jurisdiction pursuant to an | 23 |
| intergovernmental agreement, or rights or interests in real | 24 |
| property outside of the authority's jurisdiction pursuant to an | 25 |
| intergovernmental agreement. |
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| An authority may acquire by gift, devise, transfer, | 2 |
| exchange, foreclosure, purchase, or otherwise on terms and | 3 |
| conditions and in a manner the authority considers proper, | 4 |
| personal property, or rights or interests in personal property. | 5 |
| Real property acquired by an authority by purchase may be | 6 |
| by purchase contract, lease purchase agreement, installment | 7 |
| sales contract, land contract, or otherwise. | 8 |
| An authority may hold and own in its name any property | 9 |
| acquired by it or conveyed to it by this State, a foreclosing | 10 |
| governmental unit, a unit of local government, an | 11 |
| intergovernmental entity created under the laws of this State, | 12 |
| or any other public or private person, including, but not | 13 |
| limited to, property without clear title. | 14 |
| All deeds, mortgages, contracts, leases, purchases, or | 15 |
| other agreements regarding property of an authority, including | 16 |
| agreements to acquire or dispose of real property, shall be | 17 |
| approved by and executed in the name of the authority. | 18 |
| The authority shall have the right to purchase properties | 19 |
| at tax sales conducted in accordance with Division 3.5 of the | 20 |
| Property Tax Code. | 21 |
| (a) The authority may tender a bid at a tax sale that | 22 |
| is a credit bid, consisting of the obligation of the | 23 |
| authority to satisfy the component parts of the bid by | 24 |
| payments to the respective political subdivisions. | 25 |
| (b) A bid by the authority at a tax sale for the | 26 |
| minimum amount shall take priority over all other bids for |
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| the same property. | 2 |
| Section 40. Taxes. When a property is acquired by the | 3 |
| authority, the authority shall have the power to extinguish all | 4 |
| outstanding county and city or consolidated government taxes, | 5 |
| including school district taxes, at the time it sells or | 6 |
| otherwise disposes of property. | 7 |
| Property of an authority is public property devoted to an | 8 |
| essential public and governmental function and purpose. Income | 9 |
| of the authority is considered to be for a public and | 10 |
| governmental purpose. The property of the authority and its | 11 |
| income and operation are exempt from all taxes and special | 12 |
| assessments of this State and all units of local government. | 13 |
| Bonds or notes issued by the authority, and the interest on and | 14 |
| income from those bonds and notes, are exempt from all taxation | 15 |
| of this State or a unit of local government. | 16 |
| Section 45. Disposition. The authority may convey, sell, | 17 |
| transfer, exchange, lease as lessor, or otherwise dispose of | 18 |
| property or rights or interests in property to which the | 19 |
| authority holds a legal interest to any public or private | 20 |
| person for value determined by the authority. | 21 |
| Section 50. Receipt of taxes. All moneys received by an | 22 |
| authority as payment of taxes, penalties, or interest, or from | 23 |
| the redemption or sale of property subject to a tax lien of any |
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| taxing unit shall be returned to the appropriate local tax | 2 |
| collecting unit in which the property is located. | 3 |
| Section 55. Proceeds. Except as otherwise provided in this | 4 |
| Act, as required by other law, as required under the provisions | 5 |
| of a deed, or as an authority otherwise agrees, any proceeds | 6 |
| received by the authority may be retained by the authority for | 7 |
| the purposes of this Act. | 8 |
| Section 60. Record maintenance. The authority shall | 9 |
| maintain a written inventory of all property held by the | 10 |
| authority. The property shall be inventoried and classified by | 11 |
| the authority according to title status and suitability for | 12 |
| use. The inventory shall be available for public inspection | 13 |
| during regular business hours. | 14 |
| For each property held, the authority shall establish and | 15 |
| maintain itemized records and accounts reflecting all | 16 |
| transactions, expenditures, and revenues relating to all | 17 |
| property held by the authority. | 18 |
| Section 65. The Property Tax Code is amended by adding | 19 |
| Sections 21-231 and 22-40 as follows: | 20 |
| (35 ILCS 200/21-231 new) | 21 |
| Sec. 21-231. Notice of sales and redemptions. When any | 22 |
| property is sold, the county clerk shall send notice of the |
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| sale to the municipal clerk of the jurisdiction where the | 2 |
| property is located of the name of the purchaser and the amount | 3 |
| of the final bid. When any property is redeemed from sale, the | 4 |
| county clerk shall send notice to the municipal clerk of the | 5 |
| jurisdiction where the property is located of the name of the | 6 |
| person redeeming and the redemption date. These notices must be | 7 |
| sent by registered or certified mail within 30 days after sale | 8 |
| or redemption.
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| (35 ILCS 200/22-40)
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| Sec. 22-40. Issuance of deed; possession.
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| (a) If the redemption period expires
and the property has | 12 |
| not been redeemed and all taxes and special assessments
which | 13 |
| became due and payable subsequent to the sale have been paid | 14 |
| and all
forfeitures and sales which occur subsequent to the | 15 |
| sale have been redeemed and
the notices required by law have | 16 |
| been given and all advancements of public
funds under the | 17 |
| police power made by a city, village or town under Section
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| 22-35 have been paid and the petitioner has complied with all | 19 |
| the provisions of
law entitling him or her to a deed, the court | 20 |
| shall so find and shall enter an
order directing the county | 21 |
| clerk on the production of the certificate of
purchase and a | 22 |
| certified copy of the order, to issue to the purchaser or his | 23 |
| or
her assignee a tax deed. The court shall insist on strict | 24 |
| compliance with
Section 22-10 through 22-25. Prior to the entry | 25 |
| of an order directing the
issuance of a tax deed, the |
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| petitioner shall furnish the court with a report of
proceedings | 2 |
| of the evidence received on the application for tax deed and | 3 |
| the
report of proceedings shall be filed and made a part of the | 4 |
| court record.
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| (b) If taxes for years prior to the year or years sold are | 6 |
| or become
delinquent subsequent to the date of sale, the court | 7 |
| shall find
that the lien of those delinquent taxes has been or | 8 |
| will be merged into the tax
deed grantee's title if the court | 9 |
| determines that
the tax deed grantee or any prior holder of the | 10 |
| certificate of purchase, or
any
person or entity under common | 11 |
| ownership or control with any such grantee or
prior holder of | 12 |
| the certificate of purchase, was at no time the holder of any
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| certificate of purchase for the years sought to be merged.
If | 14 |
| delinquent taxes are merged into the tax deed pursuant to this | 15 |
| subsection,
the court shall enter an order declaring which | 16 |
| specific taxes have been or
will
be merged into the tax deed | 17 |
| title and directing the county treasurer and county
clerk to | 18 |
| reflect that declaration in the warrant and judgment records;
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| provided,
that no such order shall be effective until a tax | 20 |
| deed has been issued and
timely recorded. Nothing contained in | 21 |
| this Section shall relieve any owner
liable for delinquent | 22 |
| property taxes under this Code from the payment of the
taxes | 23 |
| that have been merged into the title upon issuance of the tax | 24 |
| deed.
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| (c) The county clerk is entitled to a fee of $10 in | 26 |
| counties of
3,000,000 or more
inhabitants and $5 in counties |
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| with less than 3,000,000 inhabitants for the
issuance of the | 2 |
| tax deed. The clerk may not include in a tax deed more than
one | 3 |
| property as listed, assessed and sold in one description, | 4 |
| except in cases
where several properties are owned by one | 5 |
| person.
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| Upon application the court shall, enter an order to place | 7 |
| the tax deed
grantee or the grantee's successor in interest in | 8 |
| possession of the property and may enter orders and grant | 9 |
| relief as
may be necessary or desirable to maintain the grantee | 10 |
| or the grantee's successor in interest in possession.
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| (d) The court shall retain jurisdiction to enter orders | 12 |
| pursuant to
subsections (b) and (c) of this Section. This | 13 |
| amendatory Act of the 92nd
General Assembly and this amendatory | 14 |
| Act of the 95th General Assembly shall be construed as being | 15 |
| declarative of existing law
and not as a new enactment.
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| (e) When the deed is issued, the county clerk shall send | 17 |
| notice to the municipal clerk where the property is located of | 18 |
| the full name and the true post office address and residence of | 19 |
| the grantee. The notice must be sent by registered or certified | 20 |
| mail within 30 days after the issuance of the deed. | 21 |
| (Source: P.A. 95-477, eff. 6-1-08 .)
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| Section 70. The Illinois Municipal Code is amended by | 23 |
| changing Sections 11-20-7 and 11-20-13 and by adding Sections | 24 |
| 11-20-15, 11-20-16, and 11-20-17 as follows:
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| (65 ILCS 5/11-20-7) (from Ch. 24, par. 11-20-7)
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| Sec. 11-20-7. Cutting of weeds. The corporate authorities | 3 |
| of each municipality may provide
for the cutting of weeds or | 4 |
| grass, the trimming of trees or bushes, and the removal of | 5 |
| nuisance bushes or trees in the municipality, when the owners | 6 |
| of real
estate refuse or neglect to cut, trim, or remove them | 7 |
| and to collect from the owners of
private property the | 8 |
| reasonable cost thereof. This cost , including any associated | 9 |
| fees and other costs related to the enforcement of this | 10 |
| Section, is a lien upon the
real estate affected, superior to | 11 |
| all other liens and encumbrances, except
tax liens; provided | 12 |
| that within 60 days after such cost and expense is
incurred the | 13 |
| municipality, or person performing the service by authority of
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| the municipality, in his or its own name, files notice of lien | 15 |
| in the
office of the recorder in the county in which
such real | 16 |
| estate is
located or in the office of the Registrar of Titles | 17 |
| of such county if the
real estate affected is registered under | 18 |
| the Torrens system. The notice
shall consist of a sworn | 19 |
| statement setting out (1) a description of the
real estate | 20 |
| sufficient for identification thereof, (2) the amount of money
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| representing the cost and expense incurred or payable for the | 22 |
| service, and
(3) the date or dates when such cost and expense | 23 |
| was incurred by the
municipality. However, the lien of such | 24 |
| municipality shall not be valid as
to any purchaser whose | 25 |
| rights in and to such real estate have arisen
subsequent to the | 26 |
| cutting of weeds or grass, the trimming of trees or bushes, or |
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| the removal of nuisance bushes or trees and prior to the filing | 2 |
| of such notice , and
the lien of such municipality shall not be | 3 |
| valid as to any mortgagee,
judgment creditor or other lienor | 4 |
| whose rights in and to such real estate
arise prior to the | 5 |
| filing of such notice . Upon payment of the cost and
expense by | 6 |
| the owner of or persons interested in such property after | 7 |
| notice
of lien has been filed, the lien shall be released by | 8 |
| the municipality or
person in whose name the lien has been | 9 |
| filed and the release may be filed
of record as in the case of | 10 |
| filing notice of lien.
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| The cost of the cutting, trimming, or removal of weeds, | 12 |
| grass, trees, or bushes shall not be lien on the real estate
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| affected unless a notice is personally served on, or sent by | 14 |
| certified mail to,
the person to whom was sent the tax bill for | 15 |
| the general taxes on the property
for the last preceding year. | 16 |
| The notice shall be delivered or sent
after the cutting, | 17 |
| trimming, or removal of weeds, grass, trees, or bushes on the | 18 |
| property. The notice shall
state the substance of this Section | 19 |
| and the substance of any ordinance of the
municipality | 20 |
| implementing this Section and shall identify the property, by
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| common description, and the location of the weeds to be cut.
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| (Source: P.A. 95-183, eff. 8-14-07.)
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| (65 ILCS 5/11-20-13) (from Ch. 24, par. 11-20-13)
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| Sec. 11-20-13. Removal of garbage, debris, and graffiti. | 25 |
| The corporate authorities of each municipality may provide for |
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| the
removal of garbage, debris, and graffiti from private | 2 |
| property
when the owner of such
property, after reasonable | 3 |
| notice, refuses or neglects to remove such
garbage, debris, and | 4 |
| graffiti and may collect from such owner
the reasonable cost
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| thereof except in the case of graffiti. This cost , including | 6 |
| any associated fees and other costs related to the enforcement | 7 |
| of this Section, is a lien upon the real
estate affected, | 8 |
| superior to all
subsequent liens and encumbrances, except tax | 9 |
| liens, if within 60 days
after such cost and expense is | 10 |
| incurred the municipality, or person
performing the service by | 11 |
| authority of the municipality, in his or its own
name, files | 12 |
| notice of lien in the office of the recorder in the
county in | 13 |
| which such real estate is located or in the office of the
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| Registrar of Titles of such county if the real estate affected | 15 |
| is
registered under "An Act concerning land titles", approved | 16 |
| May 1, 1897,
as amended. The notice shall consist of a sworn
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| statement setting out (1) a description of the real estate | 18 |
| sufficient for
identification thereof, (2) the amount of money | 19 |
| representing the cost and
expense incurred or payable for the | 20 |
| service, and (3) the date or dates when
such cost and expense | 21 |
| was incurred by the municipality. However, the lien
of such | 22 |
| municipality shall not be valid as to any purchaser whose | 23 |
| rights in
and to such real estate have arisen subsequent to | 24 |
| removal of the garbage
and debris and prior to the filing of | 25 |
| such notice , and the lien of such
municipality shall not be | 26 |
| valid as to any mortgagee, judgment creditor or
other lienor |
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| whose rights in and to such real estate arise prior to the
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| filing of such notice . Upon payment of the cost and expense by | 3 |
| the owner of
or persons interested in such property after | 4 |
| notice of lien has been filed,
the lien shall be released by | 5 |
| the municipality or person in whose name the
lien has been | 6 |
| filed and the release may be filed of record as in the case
of | 7 |
| filing notice of lien. The lien may be enforced by proceedings | 8 |
| to
foreclose as in case of mortgages or mechanics' liens. An | 9 |
| action
to foreclose
this lien shall be commenced within 2 years | 10 |
| after the date of filing notice
of lien.
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| This amendatory Act of 1973 does not apply to any | 12 |
| municipality which is
a home rule unit.
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| (Source: P.A. 90-292, eff. 1-1-98.)
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| (65 ILCS 5/11-20-15 new) | 15 |
| Sec. 11-20-15. Vacant and abandoned property ordinances. | 16 |
| For the purposes of minimizing the hazards to persons and | 17 |
| property resulting from vacant and abandoned property, the | 18 |
| corporate authority of each municipality may prescribe rules, | 19 |
| regulations, or ordinances for the maintenance of vacant and | 20 |
| abandoned property. The corporate authorities of a | 21 |
| municipality may impose registration fees for vacant and | 22 |
| abandoned property and fines for failure to comply with the | 23 |
| rules, regulations, or ordinances enacted pursuant to this | 24 |
| Section. |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| (65 ILCS 5/11-20-16 new) | 2 |
| Sec. 11-20-16. Mortgage beneficiary responsibility. | 3 |
| Municipalities may hold responsible for any failure to comply | 4 |
| with rules, regulations, or ordinances for the maintenance of | 5 |
| vacant and abandoned property (i) any beneficiary or trustee, | 6 |
| who holds a deed of trust on a neglected property located | 7 |
| within the municipality, or (ii) any mortgagee who holds a | 8 |
| mortgage on a neglected property located within the | 9 |
| municipality, and has filed a notice of default under Section | 10 |
| 15-1503 of the Code of Civil Procedure. | 11 |
| If a beneficiary or trustee, who holds a deed of trust on a | 12 |
| neglected property, or a mortgagee who holds a mortgage on a | 13 |
| neglected property, is held responsible for any failure to | 14 |
| comply with municipal law, that beneficiary, trustee, or | 15 |
| mortgagee may enter the property, after proper notice, to | 16 |
| remedy any violation of the rules, regulations, or ordinances | 17 |
| for the maintenance of vacant and abandoned property. The | 18 |
| beneficiary, trustee, or mortgagee may enter the property only | 19 |
| if, 15 days after the beneficiary, trustee, or mortgagee sent | 20 |
| proper notice, the property owners and occupants have failed to | 21 |
| comply with the rules, regulations, or ordinances at issue. | 22 |
| For the purpose of this Section, "neglected" means that | 23 |
| there has been no occupant in the property for a period of 6 | 24 |
| months and 2 or more of the following criteria have been met: | 25 |
| (a) Construction was initiated on the property and was | 26 |
| discontinued prior to completion, leaving the building |
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HB1195 Engrossed |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| unsuitable for occupancy, and no construction has taken | 2 |
| place for at least 6 months. | 3 |
| (b) At least one installment of property tax is unpaid | 4 |
| and delinquent. | 5 |
| (c) The property has had more than one uncorrected | 6 |
| municipal code violation over the past year. | 7 |
| (d) Gas, electric, or water service to the premises has | 8 |
| been terminated. | 9 |
| (e) Windows or entrances to the premises are boarded up | 10 |
| or closed off, or multiple window panes are broken and | 11 |
| unrepaired. | 12 |
| (f) Doors to the premises are smashed through, broken | 13 |
| off, unhinged, or continuously unlocked. | 14 |
| (g) Rubbish, trash, or debris has accumulated on the | 15 |
| premises. | 16 |
| (h) The police or sheriff's office has received at | 17 |
| least 2 reports of trespassers on the premises, or of | 18 |
| vandalism or other illegal acts being committed on the | 19 |
| premises in the past 6 months. | 20 |
| (i) The property is a nuisance. | 21 |
| For the purpose of this Section, "mortgagee" means (i) the | 22 |
| holder of an indebtedness, obligee of a non-monetary obligation | 23 |
| secured by a mortgage, or any person designated or authorized | 24 |
| to act on behalf of such holder and (ii) any person claiming | 25 |
| through a mortgagee as successor. | 26 |
| For the purpose of this Section, "proper notice" means |
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HB1195 Engrossed |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| notice to all property owners and occupants by certified or | 2 |
| registered mail stating the intent of the beneficiary, trustee, | 3 |
| or mortgagee to enter the property; the notice must be sent at | 4 |
| least 15 days before the beneficiary, trustee, or mortgagee | 5 |
| enters the property. The notice must specify the municipal law | 6 |
| violations the beneficiary, trustee, or mortgagee has been held | 7 |
| responsible for by a municipality. | 8 |
| For the purpose of this Section, "occupant" means a person | 9 |
| in lawful physical possession of all or part of the mortgaged | 10 |
| real estate. | 11 |
| For the purpose of this Section, "nuisance" means any | 12 |
| property that because of its physical condition or use is a | 13 |
| public nuisance, or any property that constitutes a blight on | 14 |
| the surrounding area, or any property that is not fit for human | 15 |
| habitation under the applicable fire, building, and housing | 16 |
| codes. "Nuisance" also means any property on which any illegal | 17 |
| activity involving controlled substances, methamphetamine, or | 18 |
| cannabis takes place or any property on which any | 19 |
| streetgang-related activity takes place. | 20 |
| (65 ILCS 5/11-20-17 new) | 21 |
| Sec. 11-20-17. Care for vacant and abandoned buildings. The | 22 |
| corporate authorities of each municipality may (i) provide for | 23 |
| property maintenance required to correct violations of | 24 |
| municipal vacant and abandoned property rules, regulations, | 25 |
| and ordinances that would fall within those rules, regulations, |
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HB1195 Engrossed |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| and ordinances contemplated by Section 11-20-15, when the | 2 |
| owners of real estate refuse or neglect to correct such | 3 |
| violations and (ii) collect from the owners of private property | 4 |
| the reasonable cost thereof. This cost, including any | 5 |
| associated fees and other costs related to the enforcement of | 6 |
| this Section, is a lien upon the real estate affected, superior | 7 |
| to all subsequent liens and encumbrances, except tax liens; | 8 |
| provided that within 60 days after such cost and expense is | 9 |
| incurred the municipality, or person performing the service by | 10 |
| authority of the municipality, in that person's own name, file | 11 |
| notice of lien in the office of the recorder in the county in | 12 |
| which the real estate is located or in the office of the | 13 |
| Registrar of Titles of the county if the real estate affected | 14 |
| is registered under the Torrens system. The notice shall | 15 |
| consist of a sworn statement setting out (i) a description of | 16 |
| the real estate sufficient for identification thereof, (ii) the | 17 |
| amount of money representing the cost and expense incurred or | 18 |
| payable for the service, and (iii) the date or dates when the | 19 |
| cost and expense was incurred by the municipality. However, the | 20 |
| lien of the municipality shall not be valid as to any purchaser | 21 |
| whose rights in and to the real estate have arisen subsequent | 22 |
| to the property maintenance and prior to the filing of such | 23 |
| notice. Upon payment of the cost and expense by the owner of or | 24 |
| persons interested in the property after notice of lien has | 25 |
| been filed, the lien shall be released by the municipality or | 26 |
| person in whose name the lien has been filed and the release |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| may be filed of record as in the case of filing notice of lien. | 2 |
| The lien may be enforced by proceedings to foreclose as in case | 3 |
| of mortgages or mechanics' liens. An action to foreclose this | 4 |
| lien shall be commenced within 2 years after the date of filing | 5 |
| notice of lien. | 6 |
| Section 75. The Code of Civil Procedure is amended by | 7 |
| adding Section 15-1503.5 and by changing Section 15-1508 as | 8 |
| follows: | 9 |
| (735 ILCS 5/15-1503.5 new) | 10 |
| Sec. 15-1503.5. Notice of foreclosure to municipalities; | 11 |
| servicer duties. | 12 |
| (a) The municipality within the boundaries of which the | 13 |
| property is located shall be provided notice of foreclosure; | 14 |
| and all parties shall include the clerk of that municipality in | 15 |
| any mailings or notices associated with foreclosure | 16 |
| proceedings concerning property within the municipality's | 17 |
| boundaries. All notices must be sent by registered or certified | 18 |
| mail. The municipality shall not be joined as a party unless | 19 |
| the municipality is joined as a party under other provisions of | 20 |
| this Section. | 21 |
| When notice of foreclosure is sent to a municipality, it | 22 |
| shall include (i) the names of all plaintiffs and the case | 23 |
| number, (ii) the court in which the action was brought, (iii) | 24 |
| the names of title holders of record, (iv) a legal description |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| of the real estate sufficient to identify it with reasonable | 2 |
| certainty, (v) a common address or description of the location | 3 |
| of the real estate, (vi) identification of the mortgage sought | 4 |
| to be foreclosed, (vii) the name, address, and phone number of | 5 |
| the servicer, servicer's agent, or servicer's representative, | 6 |
| and (viii) the name of a natural person, 21 years of age or | 7 |
| older, who maintains a permanent residence in Illinois and who | 8 |
| can be contacted by the municipality to answer questions | 9 |
| relating to the maintenance of the property. The notice must be | 10 |
| sent within 10 days after the filing of a notice of foreclosure | 11 |
| under Section 15-1503 with the county in which the mortgaged | 12 |
| real estate is located. | 13 |
| If, before a foreclosure sale is completed, there is a | 14 |
| change in any of the relevant required information, such as | 15 |
| name, phone number, agent, or local representative, then new | 16 |
| notice must be sent to the municipality informing the | 17 |
| municipality of the change. The notice must be sent within 30 | 18 |
| days of the change. | 19 |
| (b) Servicers have the following duties in replying to | 20 |
| municipal inquiries: | 21 |
| (1) In general. If any servicer of a loan receives a | 22 |
| qualified written request from a municipality for | 23 |
| information relating to the maintenance of the property | 24 |
| covered by the loan, the servicer shall provide a written | 25 |
| response acknowledging the receipt of the correspondence | 26 |
| within 20 days (excluding public holidays, Saturdays, and |
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HB1195 Engrossed |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| Sundays) unless the action requested is taken within that | 2 |
| period. | 3 |
| (2) Qualified written request. For the purposes of this | 4 |
| subsection, a qualified written request shall be a written | 5 |
| correspondence that includes, or otherwise enables the | 6 |
| servicer to identify, the name and account of the borrower. | 7 |
| (3) Action with respect to inquiry. Not later than 60 | 8 |
| days (excluding legal public holidays, Saturdays, and | 9 |
| Sundays) after the receipt from any municipality of any | 10 |
| qualified written request the servicer shall provide the | 11 |
| information requested. | 12 |
| Any person, partnership, association, corporation, or | 13 |
| other entity that violates any provision of this subsection | 14 |
| commits a business offense and shall be fined an amount not to | 15 |
| exceed $25,000 by the Commissioner of Banks and Real Estate or | 16 |
| a person authorized by the Commissioner, the Office of Banks | 17 |
| and Real Estate Act, or this Act to act in the Commissioner's | 18 |
| stead. | 19 |
| (c) For the purposes of this Section, the term "servicer" | 20 |
| means the person responsible for servicing of a loan. The term | 21 |
| includes the person who makes or holds a loan if that person | 22 |
| also services the loan. | 23 |
| For the purposes of this Section, the term "servicing" | 24 |
| means the collection or remittance or the right or obligation | 25 |
| to collect or remit for any lender, noteowner, noteholder, or | 26 |
| for a licensee's own account, of payments, interest, principal, |
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HB1195 Engrossed |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| and trust items such as hazard insurance and taxes on a | 2 |
| residential mortgage loan in accordance with the terms of the | 3 |
| residential mortgage loan; and includes loan payment | 4 |
| follow-up, delinquency loan follow-up, loan analysis, and any | 5 |
| notifications to the borrower that are necessary to enable the | 6 |
| borrower to keep the loan current and in good standing.
| 7 |
| (735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508)
| 8 |
| Sec. 15-1508. Report of Sale and Confirmation of Sale.
| 9 |
| (a) Report. | 10 |
| (1) The person conducting the sale shall promptly make | 11 |
| a report to
the court, which report shall include a copy of | 12 |
| all receipts and, if any,
certificate of sale. | 13 |
| (2) The person conducting the sale shall promptly make | 14 |
| a report to the municipality, which report shall include | 15 |
| the name of the party purchasing the property if the | 16 |
| property is sold, or the name of the resulting | 17 |
| property-holding entity if there is no sale. Such a report | 18 |
| must be sent by registered or certified mail within 30 days | 19 |
| after the sale proceeding.
| 20 |
| (b) Hearing. Upon motion and notice in accordance with | 21 |
| court rules
applicable to motions generally, which motion shall | 22 |
| not be made prior to
sale, the court shall conduct a hearing to
| 23 |
| confirm the sale. Unless the court finds that (i) a notice | 24 |
| required in
accordance with subsection (c) of Section 15-1507 | 25 |
| was not given, (ii) the
terms of sale were unconscionable, |
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|
|
HB1195 Engrossed |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| (iii) the sale was conducted
fraudulently or (iv) that justice | 2 |
| was otherwise not done, the court shall
then enter an order | 3 |
| confirming the sale. The confirmation order may
also:
| 4 |
| (1) approve the mortgagee's fees and costs arising | 5 |
| between the entry of
the judgment of foreclosure and the | 6 |
| confirmation hearing, those costs and
fees to be allowable | 7 |
| to the same extent as provided in the note and mortgage
and | 8 |
| in Section 15-1504;
| 9 |
| (2) provide for a personal judgment against any party | 10 |
| for a deficiency;
and
| 11 |
| (3) determine the priority of the judgments of parties | 12 |
| who deferred proving
the priority pursuant to subsection | 13 |
| (h) of Section 15-1506, but
the court shall not
defer | 14 |
| confirming the sale pending the determination of such | 15 |
| priority.
| 16 |
| (b-5) Notice with respect to residential real estate. With | 17 |
| respect to residential real estate, the notice required under | 18 |
| subsection (b) of this Section shall be sent to the mortgagor | 19 |
| even if the mortgagor has previously been held in default. In | 20 |
| the event the mortgagor has filed an appearance, the notice | 21 |
| shall be sent to the address indicated on the appearance. In | 22 |
| all other cases, the notice shall be sent to the mortgagor at | 23 |
| the common address of the foreclosed property. The notice shall | 24 |
| be sent by first class mail. Unless the right to possession has | 25 |
| been previously terminated by the court, the notice shall | 26 |
| include the following language in 12-point boldface |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| capitalized type: | 2 |
| IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO | 3 |
| REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF | 4 |
| POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE | 5 |
| ILLINOIS MORTGAGE FORECLOSURE LAW. | 6 |
| (c) Failure to Give Notice. If any sale is held without | 7 |
| compliance with
subsection (c) of Section 15-1507 of this | 8 |
| Article, any party entitled to
the notice provided for in | 9 |
| paragraph (3) of that subsection
(c) who was not so notified | 10 |
| may, by motion supported by affidavit
made prior to | 11 |
| confirmation of such sale, ask the court which entered the
| 12 |
| judgment to set aside the sale, provided that such party shall | 13 |
| guarantee or
secure by bond a bid equal to the successful bid | 14 |
| at the prior sale. Any
subsequent sale is subject to the same | 15 |
| notice requirement as the original sale.
| 16 |
| (d) Validity of Sale. Except as provided in subsection (c) | 17 |
| of Section
15-1508, no sale under this Article shall be held | 18 |
| invalid or be set aside
because of any defect in the notice | 19 |
| thereof or in the publication of the
same, or in the | 20 |
| proceedings of the officer conducting the sale, except upon
| 21 |
| good cause shown in a hearing pursuant to subsection (b) of | 22 |
| Section
15-1508. At any time after a sale has occurred, any | 23 |
| party entitled to
notice under paragraph (3) of subsection (c) | 24 |
| of Section 15-1507 may recover
from the mortgagee any damages | 25 |
| caused by the mortgagee's failure to comply
with such paragraph | 26 |
| (3). Any party who recovers damages in a judicial
proceeding |
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|
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LRB096 09041 RLJ 19180 b |
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| 1 |
| brought under this subsection may also recover from the
| 2 |
| mortgagee the reasonable expenses of litigation, including | 3 |
| reasonable attorney's fees.
| 4 |
| (e) Deficiency Judgment. In any order confirming a sale | 5 |
| pursuant to the
judgment of foreclosure, the court shall also | 6 |
| enter a personal judgment
for deficiency against any party (i) | 7 |
| if otherwise authorized and (ii) to
the extent requested in the | 8 |
| complaint and proven upon presentation of the
report of sale in | 9 |
| accordance with Section 15-1508. Except as otherwise provided
| 10 |
| in this Article, a judgment may be entered for any balance of | 11 |
| money that
may be found due to the plaintiff, over and above | 12 |
| the proceeds of the sale
or sales, and enforcement may be had | 13 |
| for the collection of such balance,
the same as when the | 14 |
| judgment is solely for the payment of money. Such
judgment may | 15 |
| be entered, or enforcement had,
only in cases where personal | 16 |
| service has been had upon the
persons personally liable for the | 17 |
| mortgage indebtedness, unless they have
entered their | 18 |
| appearance in the foreclosure action.
| 19 |
| (f) Satisfaction. Upon confirmation of the sale, the
| 20 |
| judgment stands satisfied to the extent of the sale price less | 21 |
| expenses and
costs. If the order confirming the sale includes a | 22 |
| deficiency judgment, the
judgment shall become a lien in the | 23 |
| manner of any other
judgment for the payment of money.
| 24 |
| (g) The order confirming the sale shall include, | 25 |
| notwithstanding any
previous orders awarding possession during | 26 |
| the pendency of the foreclosure, an
award to the purchaser of |
|
|
|
HB1195 Engrossed |
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LRB096 09041 RLJ 19180 b |
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| 1 |
| possession of the mortgaged real estate, as of the
date 30 days | 2 |
| after the entry of the order, against the
parties to the | 3 |
| foreclosure whose interests have been terminated.
| 4 |
| An order of possession authorizing the removal of a person | 5 |
| from possession
of the mortgaged real estate shall be entered | 6 |
| and enforced only against those
persons personally
named as | 7 |
| individuals in the complaint or the petition under subsection | 8 |
| (h)
of Section 15-1701 and in the order of possession and shall
| 9 |
| not be entered and enforced against any person who is only | 10 |
| generically
described as an
unknown owner or nonrecord claimant | 11 |
| or by another generic designation in the
complaint.
| 12 |
| Notwithstanding the preceding paragraph, the failure to | 13 |
| personally
name,
include, or seek an award of
possession of the | 14 |
| mortgaged real estate against a person in the
confirmation | 15 |
| order shall not abrogate any right that the purchaser may have | 16 |
| to
possession of the mortgaged real estate and to maintain a | 17 |
| proceeding against
that person for
possession under Article 9 | 18 |
| of this Code or subsection (h) of Section 15-1701;
and | 19 |
| possession against a person
who (1) has not been personally | 20 |
| named as a party to the
foreclosure and (2) has not been | 21 |
| provided an opportunity to be heard in the
foreclosure | 22 |
| proceeding may be sought only by maintaining a
proceeding under | 23 |
| Article 9 of this
Code or subsection (h) of Section 15-1701.
| 24 |
| (Source: P.A. 95-826, eff. 8-14-08.)
|
|