SB1394 97TH GENERAL ASSEMBLY

LRB097 05496 AJO 45556 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1394

Introduced 2/9/2011, by Sen. Mike Jacobs

SYNOPSIS AS INTRODUCED:

770 ILCS 95/2	from Ch. 114, par. 802
770 ILCS 95/4	from Ch. 114, par. 804
770 ILCS 95/7.5 new
770 ILCS 95/7.10 new

Amends the Self-Storage Facility Act. Provides that a notice given to an occupant to enforce a lien may be delivered in person, by certified mail or first class mail with certificate of mailing, or by email (instead of in person or by certified mail). Provides that the notice is presumed delivered when mailed or emailed (instead of mailed). Provides that after the notice period has run, the advertisement of the sale may be made on a designated website, or in a locally recognized publication or newspaper of general circulation (instead of in a newspaper of general circulation). Provides that until a lien sale, the exclusive custody of all property in the storage space remains vested in the occupant and no bailment or higher level of liability is assumed by the owner if the owner over-locks the tenant's lock and denies access. Provides that if the property upon which the lien is claimed is a motor vehicle or watercraft and rent is unpaid for 60 days, the owner may have the property towed. Provides that before the sale of any property that has a legal title or in which there is a recorded security interest, the owner shall contact the Secretary of State or other applicable agency to determine the identity of any title holder or lienholder and notify them of the sale. Provides that if the rental agreement contains a limit on the value of property that may be stored, that limit shall be deemed to be the maximum value of the stored property for liability purposes. Permits a reasonable late fee to be imposed if the rental agreement permits. Provides that a late fee of $20 for each late rental payment or 20% of the amount of each late rental payment, whichever is greater, is deemed reasonable. Makes other and corresponding changes.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Self-Service Storage Facility Act is amended by changing Sections 2 and 4 and by adding Sections 7.5 and 7.10 as follows:

(770 ILCS 95/2) (from Ch. 114, par. 802)

Sec. 2. Definitions. As used in this Act, unless the context clearly requires otherwise:

(A) "Self-service storage facility" means any real property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to such for the purpose of storing and removing personal property. A self-service storage facility is not a warehouse for purposes of Article 7 of the Uniform Commercial Code. If an owner issues any warehouse receipt, bill of lading, or other document of title for the personal property stored, the provisions of this Act do not apply.

(B) "Owner" means the owner, operator, lessor, or sublessor of a self-service storage facility, his agent, or any other person authorized by him to manage the facility, or to receive rent from an occupant under a rental agreement.

(C) "Occupant" means a person, his sublessee, successor, or assign, entitled to the use of the storage space at a self-service storage facility under a rental agreement, to the exclusion of others.

(D) "Rental agreement" means any agreement or lease, written or oral, that establishes or modifies the terms, conditions, rules or any other provisions concerning the use and occupancy of a self-service storage facility.

(E) "Personal property" means movable property not affixed to land, and includes, but is not limited to goods, merchandise, motor vehicles, and household items.

(F) "Last known address" means that address provided by the occupant in the latest rental agreement, or the address provided by the occupant in a subsequent written notice of a change of address.

(G) "Late fee" means a charge assessed for an occupant's failure to pay rent when due. "Late fee" does not include interest on a debt, reasonable expenses incurred in the collection of unpaid rent, or costs associated with the enforcement of any other remedy provided by statute or contract.

(Source: P.A. 83-800.)

(770 ILCS 95/4) (from Ch. 114, par. 804)

Sec. 4. Enforcement of lien. An owner's lien as provided for in Section 3 of this Act for a claim which has become due may be satisfied as follows:

(A) The occupant shall be notified;

(B) The notice shall be delivered:

(1) in person; or

(2) sent by certified mail or by first-class mail with a certificate of mailing to the last known address of the occupant; or

(3) by an email sent to the last known active email address of the occupant that was supplied by the occupant on the rental agreement or in a subsequent written notice of change of address received in person or by first-class mail or email;

(C) The notice shall include:

(1) A An itemized statement of the owner's claim showing the sum due at the time of the notice and the date when the sum became due;

(2) A brief and general description of the personal property subject to the lien. The description shall be reasonably adequate to permit the person notified to identify it, except that any container including, but not limited to, a trunk, valise, or box that is locked, fastened, sealed, or tied in a manner which deters immediate access to its contents may be described as such without describing its contents;

(3) A notice of denial of access to the personal property, if such denial is permitted under the terms of the rental agreement, which provides the name, street address, and telephone number of the owner, or his designated agent, whom the occupant may contact to respond to this notice;

(3.5) Except as otherwise provided by a rental agreement and until a lien sale, the exclusive care, custody, and control of all personal property stored in the leased self-service storage space remains vested in the occupant. No bailment or higher level of liability is created if the owner over-locks the occupant's lock, thereby denying the occupant access to the storage space. Rent and other charges related to the lien continue to accrue during the period of time when access is denied because of non-payment;

(4) A demand for payment within a specified time not less than 14 days after delivery of the notice;

(5) A conspicuous statement that unless the claim is paid within the time stated in the notice, the personal property will be advertised for sale or other disposition, and will be sold or otherwise disposed of at a specified time and place.

(D) Any notice made pursuant to this Section shall be presumed delivered when it is deposited with the United States Postal Service, and properly addressed with postage prepaid or if it is emailed, when it is transmitted;

(E) After the expiration of the time given in the notice, an advertisement of the sale or other disposition shall be published once a week for two consecutive weeks using the best method of advertising as determined by the facility owner including, but not limited to, advertising on a publicly accessible website that is identified in the rental agreement, a locally recognized publication, or in a newspaper of general circulation where the self-service storage facility is located. The advertisement shall include:

(1) A brief and general description of the personal property reasonably adequate to permit its identification as provided for in division (C)(2) of this Section;

(2) The address of the self-service storage facility and the number, if any, of the space where the personal property is located and the name of the occupant;

(3) The time, place, and manner of the sale or other disposition. The sale or other disposition shall take place not sooner than 15 days after the first publication. If there is no newspaper of general circulation where the self-service storage facility is located, the advertisement shall be posted at least 10 days before the date of the sale or other disposition in not less than 6 conspicuous places in the neighborhood where the self-service storage facility is located.

(F) Any sale or other disposition of the personal property shall conform to the terms of the notification as provided for in this Section;

(G) Any sale or other disposition of the personal property shall be held at the self-service storage facility, or at the nearest suitable place to where the personal property is held or stored;

(G-5) If the property upon which the lien is claimed is a motor vehicle or watercraft and rent or other charges related to the property remain unpaid or unsatisfied for 60 days, the owner may have the property towed from the self-service storage facility. If a motor vehicle or watercraft is towed, the owner shall not be liable for any damage to the motor vehicle or watercraft, once the tower takes possession of the property. After the motor vehicle or watercraft is towed, the owner may pursue other collection options against the delinquent tenant for any outstanding debt. Before the sale of a motor vehicle, aircraft, mobile home, moped, motorcycle, snowmobile, trailer, or watercraft, the owner shall contact the Secretary of State and any other governmental agency as reasonably necessary to determine the name and address of the title holder or lienholder of the item, and the owner shall notify every identified title holder or lienholder of the time and place of the proposed sale. The owner is required to notify the holder of a security interest only if the security interest is filed under the name of the person signing the rental agreement or an occupant. An owner who fails to make the lien searches required by this Section is liable only to valid lienholders injured by that failure as provided in Section 3;

(H) Before any sale or other disposition of personal property pursuant to this Section, the occupant may pay the amount necessary to satisfy the lien, and the reasonable expenses incurred under this Section, and thereby redeem the personal property. Upon receipt of such payment, the owner shall return the personal property, and thereafter the owner shall have no liability to any person with respect to such personal property;

(I) A purchaser in good faith of the personal property sold to satisfy a lien, as provided for in Section 3 of this Act, takes the property free of any rights of persons against whom the lien was valid, despite noncompliance by the owner with the requirements of this Section;

(J) In the event of a sale under this Section, the owner may satisfy his lien from the proceeds of the sale, but shall hold the balance, if any, for delivery on demand to the occupant. If the occupant does not claim the balance of the proceeds within two years of the date of sale, it shall become the property of the owner without further recourse by the occupant.

(K) The lien on any personal property created by this Act shall be terminated as to any such personal property which is sold or otherwise disposed of pursuant to this Act and any such personal property which is removed from the self-service storage facility.

(Source: P.A. 83-800.)

(770 ILCS 95/7.5 new)

Sec. 7.5. Limitation of value. If the rental agreement contains a limit on the value of property that may be stored in the occupant's space, this limit is deemed to be the maximum value of the stored property and establishes the maximum amount of any liability of the facility owner for a claim for loss of or damage to the stored property.

(770 ILCS 95/7.10 new)

Sec. 7.10. Late fees.

(a) A reasonable late fee may be imposed and collected by an owner for each service period that an occupant does not pay rent when due under a rental agreement, provided that the due date for the rental payment is not earlier than the day before the first day of the service period to which the rental payment applies. However, no late fee shall be imposed or collected if the occupant makes a rental payment in full by the third day after the due date under the rental agreement.

(b) No late fee may be collected pursuant to this Section unless the amount of that fee and the conditions for imposing that fee are stated in the rental agreement or in an addendum to that agreement.

(c) For purposes of this Section, a late fee of $20 for each late rental payment, or 20% of the amount of each late rental payment, whichever is greater, is deemed reasonable and does not constitute a penalty. However, the contract may provide for a late fee in a greater amount if that amount is reasonable. The owner has the burden of proof to show that the late fee in the greater amount is reasonable.

(d) Any reasonable expense incurred in rent collection or lien enforcement by an owner may be charged to the occupant in addition to the late fees permitted by this Section.