Full Text of SB2230 96th General Assembly
SB2230sam001 96TH GENERAL ASSEMBLY
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Sen. Jacqueline Y. Collins
Filed: 3/11/2009
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| AMENDMENT TO SENATE BILL 2230
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| AMENDMENT NO. ______. Amend Senate Bill 2230 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Code of Civil Procedure is amended by | 5 |
| changing Section 15-1501 as follows:
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| (735 ILCS 5/15-1501) (from Ch. 110, par. 15-1501)
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| Sec. 15-1501. Parties.
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| (a) Necessary Parties. For the the purposes of
Section | 9 |
| 2-405 of the Code of Civil Procedure, only (i) the mortgagor | 10 |
| and (ii)
other
persons (but not guarantors)
who owe payment of | 11 |
| indebtedness or the performance of other
obligations secured by | 12 |
| the mortgage and against whom personal liability is
asserted | 13 |
| shall be necessary parties defendant in
a foreclosure. The | 14 |
| court may proceed to adjudicate their respective
interests, but | 15 |
| any disposition of the mortgaged real estate shall be
subject | 16 |
| to (i) the interests of all other persons not made a party or |
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| (ii)
interests in the mortgaged real estate not otherwise | 2 |
| barred or
terminated in the foreclosure.
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| (b) Permissible Parties. Any party may join as a party any | 4 |
| other
person, although such person is not a necessary party, | 5 |
| including, without
limitation, the following:
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| (1) All persons having a possessory interest in the | 7 |
| mortgaged real estate;
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| (2) A mortgagor's spouse who has waived the right of | 9 |
| homestead;
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| (3) A trustee holding an interest in the mortgaged real | 11 |
| estate or a
beneficiary of such trust;
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| (4) The owner or holder of a note secured by a trust | 13 |
| deed;
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| (5) Guarantors, provided that in a foreclosure any such | 15 |
| guarantor also
may be joined as a party in a separate count | 16 |
| in an action on such guarantor's guaranty;
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| (6) The State of Illinois or any political subdivision | 18 |
| thereof, where a
foreclosure involves real estate upon | 19 |
| which the State or such subdivision
has an interest or | 20 |
| claim for lien, in which case "An Act in relation to
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| immunity for the State of Illinois", approved December 10,
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| 1971, as amended, shall not be effective;
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| (7) The United States of America or any agency or | 24 |
| department thereof
where a foreclosure involves real | 25 |
| estate upon which the United States of
America or such | 26 |
| agency or department has an interest or a claim for lien;
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| (8) Any assignee of leases or rents relating to the | 2 |
| mortgaged real estate;
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| (9) Any person who may have a lien under the Mechanic's | 4 |
| Lien Act; and
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| (10) Any other mortgagee or claimant.
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| (c) Unknown Owners. Any unknown owner may be made a party | 7 |
| in accordance
with Section 2-413 of the Code of Civil | 8 |
| Procedure.
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| (d) Right to Become Party. Any person who has or claims an | 10 |
| interest in
real estate which is the subject of a foreclosure | 11 |
| or an interest in any
debt secured by the mortgage shall have | 12 |
| an unconditional
right to appear and become a party in such | 13 |
| foreclosure in accordance with
subsection (e) of Section | 14 |
| 15-1501, provided, that neither such
appearance by a lessee
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| whose interest in the real estate is subordinate to the | 16 |
| interest being
foreclosed, nor the act of making such lessee a | 17 |
| party,
shall result in the termination of the lessee's lease | 18 |
| unless the
termination of the lease or lessee's interest in the | 19 |
| mortgaged real estate is
specifically
ordered by the court in | 20 |
| the judgment of foreclosure.
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| (e) Time of Intervention.
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| (1) Of Right. A person not a party, other
than a | 23 |
| nonrecord claimant given notice in accordance with | 24 |
| paragraph (2) of
subsection (c) of Section 15-1502,
who has | 25 |
| or claims an interest in the mortgaged real estate may | 26 |
| appear and
become a party at any time prior to the entry of |
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| judgment of foreclosure.
A nonrecord claimant given such | 2 |
| notice may appear and become a party at any
time prior to | 3 |
| the earlier of (i) the entry of a judgment of
foreclosure | 4 |
| or (ii) 30 days after such notice is given.
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| (2) In Court's Discretion. After the right to intervene | 6 |
| expires and prior
to the sale in accordance with the | 7 |
| judgment, the court may permit a person
who has or claims | 8 |
| an interest in the mortgaged real estate to appear and
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| become a party on such terms as the court may deem just.
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| (3) Later Right. After the sale of the mortgaged real | 11 |
| estate in
accordance with a judgment of foreclosure and | 12 |
| prior to the entry of an
order confirming the sale, a | 13 |
| person who has or claims an interest in the
mortgaged real | 14 |
| estate, may appear and become a party, on such terms as the
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| court may deem
just, for the sole purpose of claiming an | 16 |
| interest in the proceeds of sale.
Any such party shall be | 17 |
| deemed a party from the commencement of the
foreclosure, | 18 |
| and the interest of such party in the real estate shall be
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| subject to all orders and judgments entered in the | 20 |
| foreclosure.
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| (4) Termination of Interest. Except as provided in | 22 |
| Section 15-1501(d),
the interest of any person who is | 23 |
| allowed to appear and become a party
shall be terminated, | 24 |
| and the interest of such party in the real estate
shall | 25 |
| attach to the proceeds of sale.
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| (f) Separate Actions. Any mortgagee or claimant, other than |
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| the
mortgagee who commences a foreclosure, whose interest in | 2 |
| the mortgaged real
estate is recorded prior to the filing of a | 3 |
| notice of foreclosure in
accordance with this Article but who | 4 |
| is not made a party to such
foreclosure, shall not be barred | 5 |
| from filing a separate foreclosure (i) as
an intervening | 6 |
| defendant or counterclaimant in accordance with subsections
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| (d) and (e) of Section
15-1501 if a judgment of foreclosure has | 8 |
| not been entered
in the original foreclosure or (ii) in a new | 9 |
| foreclosure subsequent to the
entry of a judgment of | 10 |
| foreclosure in the original foreclosure.
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| (g) Service on the State of Illinois. When making the State | 12 |
| of
Illinois a party to a foreclosure, summons may be served by | 13 |
| sending, by
registered or certified mail, a copy of the summons | 14 |
| and the complaint to
the Attorney General. The complaint shall | 15 |
| set forth with particularity the
nature of the interest or lien | 16 |
| of the State of Illinois. If such interest
or lien appears in a | 17 |
| recorded instrument, the complaint must state the
document | 18 |
| number of the instrument and the office wherein it was | 19 |
| recorded.
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| (Source: P.A. 88-265.)".
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