Illinois General Assembly - Full Text of SB1545
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Full Text of SB1545  102nd General Assembly

SB1545eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by
5changing Sections 3-114, 3-117.1, and 3-301 as follows:
 
6    (625 ILCS 5/3-114)  (from Ch. 95 1/2, par. 3-114)
7    Sec. 3-114. Transfer by operation of law.
8    (a) If the interest of an owner in a vehicle passes to
9another other than by voluntary transfer, the transferee
10shall, except as provided in paragraph (b), promptly mail or
11deliver within 20 days to the Secretary of State the last
12certificate of title, if available, proof of the transfer, and
13his application for a new certificate in the form the
14Secretary of State prescribes. It shall be unlawful for any
15person having possession of a certificate of title for a motor
16vehicle, semi-trailer, or house car by reason of his having a
17lien or encumbrance on such vehicle, to fail or refuse to
18deliver such certificate to the owner, upon the satisfaction
19or discharge of the lien or encumbrance, indicated upon such
20certificate of title.
21    (b) If the interest of an owner in a vehicle passes to
22another under the provisions of the Small Estates provisions
23of the Probate Act of 1975 the transferee shall promptly mail

 

 

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1or deliver to the Secretary of State, within 120 days, the last
2certificate of title, if available, the documentation required
3under the provisions of the Probate Act of 1975, and an
4application for certificate of title. The Small Estate
5Affidavit form shall be furnished by the Secretary of State.
6The transfer may be to the transferee or to the nominee of the
7transferee.
8    (c) If the interest of an owner in a vehicle passes to
9another under other provisions of the Probate Act of 1975, as
10amended, and the transfer is made by a representative or
11guardian, such transferee shall promptly mail or deliver to
12the Secretary of State, the last certificate of title, if
13available, and a certified copy of the letters of office or
14guardianship, and an application for certificate of title.
15Such application shall be made before the estate is closed.
16The transfer may be to the transferee or to the nominee of the
17transferee.
18    (d) If the interest of an owner in joint tenancy passes to
19the other joint tenant with survivorship rights as provided by
20law, the transferee shall promptly mail or deliver to the
21Secretary of State, the last certificate of title, if
22available, proof of death of the one joint tenant and
23survivorship of the surviving joint tenant, and an application
24for certificate of title. Such application shall be made
25within 120 days after the death of the joint tenant. The
26transfer may be to the transferee or to the nominee of the

 

 

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1transferee.
2    (d-5) If the interest of an owner passes to the owner's
3spouse or if the spouse otherwise acquires ownership of the
4vehicle, then the transferee shall promptly mail or deliver to
5the Secretary of State, proof of (i) the owner's death; (ii)
6the transfer or acquisition of ownership; and (iii) proof of
7the marital relationship between the owner and the transferee,
8along with the last certificate of title, if available, and an
9application for certificate of title along with the
10appropriate fees and taxes, if applicable. The application
11shall be made within 180 days after the death of the owner.
12    (e) The Secretary of State shall transfer a decedent's
13vehicle title to any legatee, representative or heir of the
14decedent who submits to the Secretary a death certificate and
15an affidavit by an attorney at law on the letterhead
16stationery of the attorney at law stating the facts of the
17transfer.
18    (f) Repossession with assignment of title. In all cases
19wherein a lienholder has repossessed a vehicle by other than
20judicial process and holds it for resale under a security
21agreement, and the owner of record has executed an assignment
22of the existing certificate of title after default, the
23lienholder may proceed to sell or otherwise dispose of the
24vehicle as authorized under the Uniform Commercial Code. Upon
25selling the vehicle to another person, the lienholder need not
26send the certificate of title to the Secretary of State, but

 

 

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1shall promptly and within 20 days mail or deliver to the
2purchaser as transferee the existing certificate of title for
3the repossessed vehicle, reflecting the release of the
4lienholder's security interest in the vehicle. The application
5for a certificate of title made by the purchaser shall comply
6with subsection (a) of Section 3-104 and be accompanied by the
7existing certificate of title for the repossessed vehicle. The
8lienholder shall execute the assignment and warranty of title
9showing the name and address of the purchaser in the spaces
10provided therefor on the certificate of title or as the
11Secretary of State prescribes. The lienholder shall complete
12the assignment of title in the certificate of title to reflect
13the transfer of the vehicle to the lienholder and also a
14reassignment to reflect the transfer from the lienholder to
15the purchaser. For this purpose, the lienholder is
16specifically authorized to complete and execute the space
17reserved in the certificate of title for a dealer
18reassignment, notwithstanding that the lienholder is not a
19licensed dealer. Nothing herein shall be construed to mean
20that the lienholder is taking title to the repossessed vehicle
21for purposes of liability for retailer occupation, vehicle
22use, or other tax with respect to the proceeds from the
23repossession sale. Delivery of the existing certificate of
24title to the purchaser shall be deemed disclosure to the
25purchaser of the owner of the vehicle.
26    (f-5) Repossession without assignment of title. Subject to

 

 

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1subsection (f-30), in all cases wherein a lienholder has
2repossessed a vehicle by other than judicial process and holds
3it for resale under a security agreement, and the owner of
4record has not executed an assignment of the existing
5certificate of title, the lienholder shall comply with the
6following provisions:
7        (1) Prior to sale, the lienholder shall deliver or
8    mail to the owner at the owner's last known address and to
9    any other lienholder of record, a notice of redemption
10    setting forth the following information: (i) the name of
11    the owner of record and in bold type at or near the top of
12    the notice a statement that the owner's vehicle was
13    repossessed on a specified date for failure to make
14    payments on the loan (or other reason), (ii) a description
15    of the vehicle subject to the lien sufficient to identify
16    it, (iii) the right of the owner to redeem the vehicle,
17    (iv) the lienholder's intent to sell or otherwise dispose
18    of the vehicle after the expiration of 21 days from the
19    date of mailing or delivery of the notice, and (v) the
20    name, address, and telephone number of the lienholder from
21    whom information may be obtained concerning the amount due
22    to redeem the vehicle and from whom the vehicle may be
23    redeemed under Section 9-623 of the Uniform Commercial
24    Code. At the lienholder's option, the information required
25    to be set forth in this notice of redemption may be made a
26    part of or accompany the notification of sale or other

 

 

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1    disposition required under Section 9-611 of the Uniform
2    Commercial Code, but none of the information required by
3    this notice shall be construed to impose any requirement
4    under Article 9 of the Uniform Commercial Code.
5        (2) With respect to the repossession of a vehicle used
6    primarily for personal, family, or household purposes, the
7    lienholder shall also deliver or mail to the owner at the
8    owner's last known address an affidavit of defense. The
9    affidavit of defense shall accompany the notice of
10    redemption required in subdivision (f-5)(1) of this
11    Section. The affidavit of defense shall (i) identify the
12    lienholder, owner, and the vehicle; (ii) provide space for
13    the owner to state the defense claimed by the owner; and
14    (iii) include an acknowledgment by the owner that the
15    owner may be liable to the lienholder for fees, charges,
16    and costs incurred by the lienholder in establishing the
17    insufficiency or invalidity of the owner's defense. To
18    stop the transfer of title, the affidavit of defense must
19    be received by the lienholder no later than 21 days after
20    the date of mailing or delivery of the notice required in
21    subdivision (f-5)(1) of this Section. If the lienholder
22    receives the affidavit from the owner in a timely manner,
23    the lienholder must apply to a court of competent
24    jurisdiction to determine if the lienholder is entitled to
25    possession of the vehicle.
26        (3) Upon selling the vehicle to another person, the

 

 

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1    lienholder need not send the certificate of title to the
2    Secretary of State, but shall promptly and within 20 days
3    mail or deliver to the purchaser as transferee (i) the
4    existing certificate of title for the repossessed vehicle,
5    reflecting the release of the lienholder's security
6    interest in the vehicle; and (ii) an affidavit of
7    repossession made by or on behalf of the lienholder which
8    provides the following information: that the vehicle was
9    repossessed, a description of the vehicle sufficient to
10    identify it, whether the vehicle has been damaged in
11    excess of 50% 33 1/3% of its fair market value as required
12    under subdivision (b)(3) of Section 3-117.1, that the
13    owner and any other lienholder of record were given the
14    notice required in subdivision (f-5)(1) of this Section,
15    that the owner of record was given the affidavit of
16    defense required in subdivision (f-5)(2) of this Section,
17    that the interest of the owner was lawfully terminated or
18    sold pursuant to the terms of the security agreement, and
19    the purchaser's name and address. If the vehicle is
20    damaged in excess of 50% 33 1/3% of its fair market value,
21    the lienholder shall make application for a salvage
22    certificate under Section 3-117.1 and transfer the vehicle
23    to a person eligible to receive assignments of salvage
24    certificates identified in Section 3-118.
25        (4) The application for a certificate of title made by
26    the purchaser shall comply with subsection (a) of Section

 

 

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1    3-104 and be accompanied by the affidavit of repossession
2    furnished by the lienholder and the existing certificate
3    of title for the repossessed vehicle. The lienholder shall
4    execute the assignment and warranty of title showing the
5    name and address of the purchaser in the spaces provided
6    therefor on the certificate of title or as the Secretary
7    of State prescribes. The lienholder shall complete the
8    assignment of title in the certificate of title to reflect
9    the transfer of the vehicle to the lienholder and also a
10    reassignment to reflect the transfer from the lienholder
11    to the purchaser. For this purpose, the lienholder is
12    specifically authorized to execute the assignment on
13    behalf of the owner as seller if the owner has not done so
14    and to complete and execute the space reserved in the
15    certificate of title for a dealer reassignment,
16    notwithstanding that the lienholder is not a licensed
17    dealer. Nothing herein shall be construed to mean that the
18    lienholder is taking title to the repossessed vehicle for
19    purposes of liability for retailer occupation, vehicle
20    use, or other tax with respect to the proceeds from the
21    repossession sale. Delivery of the existing certificate of
22    title to the purchaser shall be deemed disclosure to the
23    purchaser of the owner of the vehicle. In the event the
24    lienholder does not hold the certificate of title for the
25    repossessed vehicle, the lienholder shall make application
26    for and may obtain a new certificate of title in the name

 

 

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1    of the lienholder upon furnishing information satisfactory
2    to the Secretary of State. Upon receiving the new
3    certificate of title, the lienholder may proceed with the
4    sale described in subdivision (f-5)(3), except that upon
5    selling the vehicle the lienholder shall promptly and
6    within 20 days mail or deliver to the purchaser the new
7    certificate of title reflecting the assignment and
8    transfer of title to the purchaser.
9        (5) Neither the lienholder nor the owner shall file
10    with the Office of the Secretary of State the notice of
11    redemption or affidavit of defense described in
12    subdivisions (f-5)(1) and (f-5)(2) of this Section. The
13    Office of the Secretary of State shall not determine the
14    merits of an owner's affidavit of defense, nor consider
15    any allegations or assertions regarding the validity or
16    invalidity of a lienholder's claim to the vehicle or an
17    owner's asserted defenses to the repossession action.
18    (f-7) Notice of reinstatement in certain cases.
19        (1) Subject to subsection (f-30), if, at the time of
20    repossession by a lienholder that is seeking to transfer
21    title pursuant to subsection (f-5), the owner has paid an
22    amount equal to 30% or more of the deferred payment price
23    or total of payments due, the owner may, within 21 days of
24    the date of repossession, reinstate the contract or loan
25    agreement and recover the vehicle from the lienholder by
26    tendering in a lump sum (i) the total of all unpaid

 

 

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1    amounts, including any unpaid delinquency or deferral
2    charges due at the date of reinstatement, without
3    acceleration; and (ii) performance necessary to cure any
4    default other than nonpayment of the amounts due; and
5    (iii) all reasonable costs and fees incurred by the
6    lienholder in retaking, holding, and preparing the vehicle
7    for disposition and in arranging for the sale of the
8    vehicle. Reasonable costs and fees incurred by the
9    lienholder include without limitation repossession and
10    storage expenses and, if authorized by the contract or
11    loan agreement, reasonable attorneys' fees and collection
12    agency charges.
13        (2) Tender of payment and performance pursuant to this
14    limited right of reinstatement restores to the owner his
15    rights under the contract or loan agreement as though no
16    default had occurred. The owner has the right to reinstate
17    the contract or loan agreement and recover the vehicle
18    from the lienholder only once under this subsection. The
19    lienholder may, in the lienholder's sole discretion,
20    extend the period during which the owner may reinstate the
21    contract or loan agreement and recover the vehicle beyond
22    the 21 days allowed under this subsection, and the
23    extension shall not subject the lienholder to liability to
24    the owner under the laws of this State.
25        (3) The lienholder shall deliver or mail written
26    notice to the owner at the owner's last known address,

 

 

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1    within 3 business days of the date of repossession, of the
2    owner's right to reinstate the contract or loan agreement
3    and recover the vehicle pursuant to the limited right of
4    reinstatement described in this subsection. At the
5    lienholder's option, the information required to be set
6    forth in this notice of reinstatement may be made part of
7    or accompany the notice of redemption required in
8    subdivision (f-5)(1) of this Section and the notification
9    of sale or other disposition required under Section 9-611
10    of the Uniform Commercial Code, but none of the
11    information required by this notice of reinstatement shall
12    be construed to impose any requirement under Article 9 of
13    the Uniform Commercial Code.
14        (4) The reinstatement period, if applicable, and the
15    redemption period described in subdivision (f-5)(1) of
16    this Section, shall run concurrently if the information
17    required to be set forth in the notice of reinstatement is
18    part of or accompanies the notice of redemption. In any
19    event, the 21 day redemption period described in
20    subdivision (f-5)(1) of this Section shall commence on the
21    date of mailing or delivery to the owner of the
22    information required to be set forth in the notice of
23    redemption, and the 21 day reinstatement period described
24    in this subdivision, if applicable, shall commence on the
25    date of mailing or delivery to the owner of the
26    information required to be set forth in the notice of

 

 

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1    reinstatement.
2        (5) The Office of the Secretary of State shall not
3    determine the merits of an owner's claim of right to
4    reinstatement, nor consider any allegations or assertions
5    regarding the validity or invalidity of a lienholder's
6    claim to the vehicle or an owner's asserted right to
7    reinstatement. Where a lienholder is subject to licensing
8    and regulatory supervision by the State of Illinois, the
9    lienholder shall be subject to all of the powers and
10    authority of the lienholder's primary State regulator to
11    enforce compliance with the procedures set forth in this
12    subsection (f-7).
13    (f-10) Repossession by judicial process. In all cases
14wherein a lienholder has repossessed a vehicle by judicial
15process and holds it for resale under a security agreement,
16order for replevin, or other court order establishing the
17lienholder's right to possession of the vehicle, the
18lienholder may proceed to sell or otherwise dispose of the
19vehicle as authorized under the Uniform Commercial Code or the
20court order. Upon selling the vehicle to another person, the
21lienholder need not send the certificate of title to the
22Secretary of State, but shall promptly and within 20 days mail
23or deliver to the purchaser as transferee (i) the existing
24certificate of title for the repossessed vehicle reflecting
25the release of the lienholder's security interest in the
26vehicle; (ii) a certified copy of the court order; and (iii) a

 

 

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1bill of sale identifying the new owner's name and address and
2the year, make, model, and vehicle identification number of
3the vehicle. The application for a certificate of title made
4by the purchaser shall comply with subsection (a) of Section
53-104 and be accompanied by the certified copy of the court
6order furnished by the lienholder and the existing certificate
7of title for the repossessed vehicle. The lienholder shall
8execute the assignment and warranty of title showing the name
9and address of the purchaser in the spaces provided therefor
10on the certificate of title or as the Secretary of State
11prescribes. The lienholder shall complete the assignment of
12title in the certificate of title to reflect the transfer of
13the vehicle to the lienholder and also a reassignment to
14reflect the transfer from the lienholder to the purchaser. For
15this purpose, the lienholder is specifically authorized to
16execute the assignment on behalf of the owner as seller if the
17owner has not done so and to complete and execute the space
18reserved in the certificate of title for a dealer
19reassignment, notwithstanding that the lienholder is not a
20licensed dealer. Nothing herein shall be construed to mean
21that the lienholder is taking title to the repossessed vehicle
22for purposes of liability for retailer occupation, vehicle
23use, or other tax with respect to the proceeds from the
24repossession sale. Delivery of the existing certificate of
25title to the purchaser shall be deemed disclosure to the
26purchaser of the owner of the vehicle. In the event the

 

 

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1lienholder does not hold the certificate of title for the
2repossessed vehicle, the lienholder shall make application for
3and may obtain a new certificate of title in the name of the
4lienholder upon furnishing information satisfactory to the
5Secretary of State. Upon receiving the new certificate of
6title, the lienholder may proceed with the sale described in
7this subsection, except that upon selling the vehicle the
8lienholder shall promptly and within 20 days mail or deliver
9to the purchaser the new certificate of title reflecting the
10assignment and transfer of title to the purchaser.
11    (f-15) The Secretary of State shall not issue a
12certificate of title to a purchaser under subsection (f),
13(f-5), or (f-10) of this Section, unless the person from whom
14the vehicle has been repossessed by the lienholder is shown to
15be the last registered owner of the motor vehicle. The
16Secretary of State may provide by rule for the standards to be
17followed by a lienholder in assigning and transferring
18certificates of title with respect to repossessed vehicles.
19    (f-20) If applying for a salvage certificate or a junking
20certificate, the lienholder shall within 20 days make an
21application to the Secretary of State for a salvage
22certificate or a junking certificate, as set forth in this
23Code. The Secretary of State shall not issue a salvage
24certificate or a junking certificate to such lienholder unless
25the person from whom such vehicle has been repossessed is
26shown to be the last registered owner of such motor vehicle and

 

 

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1such lienholder establishes to the satisfaction of the
2Secretary of State that he is entitled to such salvage
3certificate or junking certificate. The Secretary of State may
4provide by rule for the standards to be followed by a
5lienholder in order to obtain a salvage certificate or junking
6certificate for a repossessed vehicle.
7    (f-25) If the interest of an owner in a mobile home, as
8defined in the Mobile Home Local Services Tax Act, passes to
9another under the provisions of the Mobile Home Local Services
10Tax Enforcement Act, the transferee shall promptly mail or
11deliver to the Secretary of State (i) the last certificate of
12title, if available, (ii) a certified copy of the court order
13ordering the transfer of title, and (iii) an application for
14certificate of title.
15    (f-30) Bankruptcy. If the repossessed vehicle is the
16subject of a bankruptcy proceeding or discharge:
17        (1) the lienholder may proceed to sell or otherwise
18    dispose of the vehicle as authorized by the Bankruptcy
19    Code and the Uniform Commercial Code;
20        (2) the notice of redemption, affidavit of defense,
21    and notice of reinstatement otherwise required to be sent
22    by the lienholder to the owner of record or other
23    lienholder of record under this Section are not required
24    to be delivered or mailed;
25        (3) the requirement to delay disposition of the
26    vehicle for 21 days, (i) from the mailing or delivery of

 

 

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1    the notice of redemption under subdivision (f-5)(1) of
2    this Section, (ii) from the mailing or delivery of the
3    affidavit of defense under subdivision (f-5)(2) of this
4    Section, or (iii) from the date of repossession when the
5    owner is entitled to a notice of reinstatement under
6    subsection (f-7) of this Section, does not apply;
7        (4) the affidavit of repossession that is required
8    under subdivision (f-5)(3) shall contain a notation of
9    "bankruptcy" where the affidavit requires the date of the
10    mailing or delivery of the notice of redemption. The
11    notation of "bankruptcy" means the lienholder makes no
12    sworn representations regarding the mailing or delivery of
13    the notice of redemption or affidavit of defense or
14    lienholder's compliance with the requirements that
15    otherwise apply to the notices listed in this subsection
16    (f-30), and makes no sworn representation that the
17    lienholder assumes liability or costs for any litigation
18    that may arise from the issuance of a certificate of title
19    based on the excluded representations;
20        (5) the right of redemption, the right to assert a
21    defense to the transfer of title, and reinstatement rights
22    under this Section do not apply; and
23        (6) references to judicial process and court orders in
24    subsection (f-10) of this Section do not include
25    bankruptcy proceedings or orders.
26    (g) A person holding a certificate of title whose interest

 

 

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1in the vehicle has been extinguished or transferred other than
2by voluntary transfer shall mail or deliver the certificate,
3within 20 days upon request of the Secretary of State. The
4delivery of the certificate pursuant to the request of the
5Secretary of State does not affect the rights of the person
6surrendering the certificate, and the action of the Secretary
7of State in issuing a new certificate of title as provided
8herein is not conclusive upon the rights of an owner or
9lienholder named in the old certificate.
10    (h) The Secretary of State may decline to process any
11application for a transfer of an interest in a vehicle
12hereunder if any fees or taxes due under this Act from the
13transferor or the transferee have not been paid upon
14reasonable notice and demand.
15    (i) The Secretary of State shall not be held civilly or
16criminally liable to any person because any purported
17transferor may not have had the power or authority to make a
18transfer of any interest in any vehicle or because a
19certificate of title issued in error is subsequently used to
20commit a fraudulent act.
21(Source: P.A. 99-260, eff. 1-1-16.)
 
22    (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)
23    Sec. 3-117.1. When junking certificates or salvage
24certificates must be obtained.
25    (a) Except as provided in Chapter 4 and Section 3-117.3 of

 

 

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1this Code, a person who possesses a junk vehicle shall within
215 days cause the certificate of title, salvage certificate,
3certificate of purchase, or a similarly acceptable
4out-of-state document of ownership to be surrendered to the
5Secretary of State along with an application for a junking
6certificate, except as provided in Section 3-117.2, whereupon
7the Secretary of State shall issue to such a person a junking
8certificate, which shall authorize the holder thereof to
9possess, transport, or, by an endorsement, transfer ownership
10in such junked vehicle, and a certificate of title shall not
11again be issued for such vehicle. The owner of a junk vehicle
12is not required to surrender the certificate of title under
13this subsection if (i) there is no lienholder on the
14certificate of title or (ii) the owner of the junk vehicle has
15a valid lien release from the lienholder releasing all
16interest in the vehicle and the owner applying for the junk
17certificate matches the current record on the certificate of
18title file for the vehicle.
19    A licensee who possesses a junk vehicle and a Certificate
20of Title, Salvage Certificate, Certificate of Purchase, or a
21similarly acceptable out-of-state document of ownership for
22such junk vehicle, may transport the junk vehicle to another
23licensee prior to applying for or obtaining a junking
24certificate, by executing a uniform invoice. The licensee
25transferor shall furnish a copy of the uniform invoice to the
26licensee transferee at the time of transfer. In any case, the

 

 

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1licensee transferor shall apply for a junking certificate in
2conformance with Section 3-117.1 of this Chapter. The
3following information shall be contained on a uniform invoice:
4        (1) The business name, address and dealer license
5    number of the person disposing of the vehicle, junk
6    vehicle or vehicle cowl;
7        (2) The name and address of the person acquiring the
8    vehicle, junk vehicle or vehicle cowl, and if that person
9    is a dealer, the Illinois or out-of-state dealer license
10    number of that dealer;
11        (3) The date of the disposition of the vehicle, junk
12    vehicle or vehicle cowl;
13        (4) The year, make, model, color and description of
14    each vehicle, junk vehicle or vehicle cowl disposed of by
15    such person;
16        (5) The manufacturer's vehicle identification number,
17    Secretary of State identification number or Illinois
18    Department of State Police number, for each vehicle, junk
19    vehicle or vehicle cowl part disposed of by such person;
20        (6) The printed name and legible signature of the
21    person or agent disposing of the vehicle, junk vehicle or
22    vehicle cowl; and
23        (7) The printed name and legible signature of the
24    person accepting delivery of the vehicle, junk vehicle or
25    vehicle cowl.
26    The Secretary of State may certify a junking manifest in a

 

 

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1form prescribed by the Secretary of State that reflects those
2vehicles for which junking certificates have been applied or
3issued. A junking manifest may be issued to any person and it
4shall constitute evidence of ownership for the vehicle listed
5upon it. A junking manifest may be transferred only to a person
6licensed under Section 5-301 of this Code as a scrap
7processor. A junking manifest will allow the transportation of
8those vehicles to a scrap processor prior to receiving the
9junk certificate from the Secretary of State.
10    (b) An application for a salvage certificate shall be
11submitted to the Secretary of State in any of the following
12situations:
13        (1) When an insurance company makes a payment of
14    damages on a total loss claim for a vehicle, the insurance
15    company shall be deemed to be the owner of such vehicle and
16    the vehicle shall be considered to be salvage except that
17    ownership of (i) a vehicle that has incurred only hail
18    damage that does not affect the operational safety of the
19    vehicle or (ii) any vehicle 9 model years of age or older
20    may, by agreement between the registered owner and the
21    insurance company, be retained by the registered owner of
22    such vehicle. The insurance company shall promptly deliver
23    or mail within 20 days the certificate of title along with
24    proper application and fee to the Secretary of State, and
25    a salvage certificate shall be issued in the name of the
26    insurance company. Notwithstanding the foregoing, an

 

 

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1    insurer making payment of damages on a total loss claim
2    for the theft of a vehicle shall not be required to apply
3    for a salvage certificate unless the vehicle is recovered
4    and has incurred damage that initially would have caused
5    the vehicle to be declared a total loss by the insurer.
6        (1.1) When a vehicle of a self-insured company is to
7    be sold in the State of Illinois and has sustained damaged
8    by collision, fire, theft, rust corrosion, or other means
9    so that the self-insured company determines the vehicle to
10    be a total loss, or if the cost of repairing the damage,
11    including labor, would be greater than 70% of its fair
12    market value without that damage, the vehicle shall be
13    considered salvage. The self-insured company shall
14    promptly deliver the certificate of title along with
15    proper application and fee to the Secretary of State, and
16    a salvage certificate shall be issued in the name of the
17    self-insured company. A self-insured company making
18    payment of damages on a total loss claim for the theft of a
19    vehicle may exchange the salvage certificate for a
20    certificate of title if the vehicle is recovered without
21    damage. In such a situation, the self-insured shall fill
22    out and sign a form prescribed by the Secretary of State
23    which contains an affirmation under penalty of perjury
24    that the vehicle was recovered without damage and the
25    Secretary of State may, by rule, require photographs to be
26    submitted.

 

 

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1        (2) When a vehicle the ownership of which has been
2    transferred to any person through a certificate of
3    purchase from acquisition of the vehicle at an auction,
4    other dispositions as set forth in Sections 4-208 and
5    4-209 of this Code, or a lien arising under Section
6    18a-501 of this Code shall be deemed salvage or junk at the
7    option of the purchaser. The person acquiring such vehicle
8    in such manner shall promptly deliver or mail, within 20
9    days after the acquisition of the vehicle, the certificate
10    of purchase, the proper application and fee, and, if the
11    vehicle is an abandoned mobile home under the Abandoned
12    Mobile Home Act, a certification from a local law
13    enforcement agency that the vehicle was purchased or
14    acquired at a public sale under the Abandoned Mobile Home
15    Act to the Secretary of State and a salvage certificate or
16    junking certificate shall be issued in the name of that
17    person. The salvage certificate or junking certificate
18    issued by the Secretary of State under this Section shall
19    be free of any lien that existed against the vehicle prior
20    to the time the vehicle was acquired by the applicant
21    under this Code.
22        (3) A vehicle which has been repossessed by a
23    lienholder shall be considered to be salvage only when the
24    repossessed vehicle, on the date of repossession by the
25    lienholder, has sustained damage by collision, fire,
26    theft, rust corrosion, or other means so that the cost of

 

 

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1    repairing such damage, including labor, would be greater
2    than 50% 33 1/3% of its fair market value without such
3    damage. If the lienholder determines that such vehicle is
4    damaged in excess of 50% 33 1/3% of such fair market value,
5    the lienholder shall, before sale, transfer or assignment
6    of the vehicle, make application for a salvage
7    certificate, and shall submit with such application the
8    proper fee and evidence of possession. If the facts
9    required to be shown in subsection (f) of Section 3-114
10    are satisfied, the Secretary of State shall issue a
11    salvage certificate in the name of the lienholder making
12    the application. In any case wherein the vehicle
13    repossessed is not damaged in excess of 50% 33 1/3% of its
14    fair market value, the lienholder shall comply with the
15    requirements of subsections (f), (f-5), and (f-10) of
16    Section 3-114, except that the affidavit of repossession
17    made by or on behalf of the lienholder shall also contain
18    an affirmation under penalty of perjury that the vehicle
19    on the date of sale is not damaged in excess of 50% 33 1/3%
20    of its fair market value. If the facts required to be shown
21    in subsection (f) of Section 3-114 are satisfied, the
22    Secretary of State shall issue a certificate of title as
23    set forth in Section 3-116 of this Code. The Secretary of
24    State may by rule or regulation require photographs to be
25    submitted.
26        (4) A vehicle which is a part of a fleet of more than 5

 

 

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1    commercial vehicles registered in this State or any other
2    state or registered proportionately among several states
3    shall be considered to be salvage when such vehicle has
4    sustained damage by collision, fire, theft, rust,
5    corrosion or similar means so that the cost of repairing
6    such damage, including labor, would be greater than 50% 33
7    1/3% of the fair market value of the vehicle without such
8    damage. If the owner of a fleet vehicle desires to sell,
9    transfer, or assign his interest in such vehicle to a
10    person within this State other than an insurance company
11    licensed to do business within this State, and the owner
12    determines that such vehicle, at the time of the proposed
13    sale, transfer or assignment is damaged in excess of 50%
14    33 1/3% of its fair market value, the owner shall, before
15    such sale, transfer or assignment, make application for a
16    salvage certificate. The application shall contain with it
17    evidence of possession of the vehicle. If the fleet
18    vehicle at the time of its sale, transfer, or assignment
19    is not damaged in excess of 50% 33 1/3% of its fair market
20    value, the owner shall so state in a written affirmation
21    on a form prescribed by the Secretary of State by rule or
22    regulation. The Secretary of State may by rule or
23    regulation require photographs to be submitted. Upon sale,
24    transfer or assignment of the fleet vehicle the owner
25    shall mail the affirmation to the Secretary of State.
26        (5) A vehicle that has been submerged in water to the

 

 

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1    point that rising water has reached over the door sill and
2    has entered the passenger or trunk compartment is a "flood
3    vehicle". A flood vehicle shall be considered to be
4    salvage only if the vehicle has sustained damage so that
5    the cost of repairing the damage, including labor, would
6    be greater than 50% 33 1/3% of the fair market value of the
7    vehicle without that damage. The salvage certificate
8    issued under this Section shall indicate the word "flood",
9    and the word "flood" shall be conspicuously entered on
10    subsequent titles for the vehicle. A person who possesses
11    or acquires a flood vehicle that is not damaged in excess
12    of 50% 33 1/3% of its fair market value shall make
13    application for title in accordance with Section 3-116 of
14    this Code, designating the vehicle as "flood" in a manner
15    prescribed by the Secretary of State. The certificate of
16    title issued shall indicate the word "flood", and the word
17    "flood" shall be conspicuously entered on subsequent
18    titles for the vehicle.
19        (6) When any licensed rebuilder, repairer, new or used
20    vehicle dealer, or remittance agent has submitted an
21    application for title to a vehicle (other than an
22    application for title to a rebuilt vehicle) that he or she
23    knows or reasonably should have known to have sustained
24    damages in excess of 50% 33 1/3% of the vehicle's fair
25    market value without that damage; provided, however, that
26    any application for a salvage certificate for a vehicle

 

 

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1    recovered from theft and acquired from an insurance
2    company shall be made as required by paragraph (1) of this
3    subsection (b).
4    (c) Any person who without authority acquires, sells,
5exchanges, gives away, transfers or destroys or offers to
6acquire, sell, exchange, give away, transfer or destroy the
7certificate of title to any vehicle which is a junk or salvage
8vehicle shall be guilty of a Class 3 felony.
9    (d) Except as provided under subsection (a), any person
10who knowingly fails to surrender to the Secretary of State a
11certificate of title, salvage certificate, certificate of
12purchase or a similarly acceptable out-of-state document of
13ownership as required under the provisions of this Section is
14guilty of a Class A misdemeanor for a first offense and a Class
154 felony for a subsequent offense; except that a person
16licensed under this Code who violates paragraph (5) of
17subsection (b) of this Section is guilty of a business offense
18and shall be fined not less than $1,000 nor more than $5,000
19for a first offense and is guilty of a Class 4 felony for a
20second or subsequent violation.
21    (e) Any vehicle which is salvage or junk may not be driven
22or operated on roads and highways within this State. A
23violation of this subsection is a Class A misdemeanor. A
24salvage vehicle displaying valid special plates issued under
25Section 3-601(b) of this Code, which is being driven to or from
26an inspection conducted under Section 3-308 of this Code, is

 

 

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1exempt from the provisions of this subsection. A salvage
2vehicle for which a short term permit has been issued under
3Section 3-307 of this Code is exempt from the provisions of
4this subsection for the duration of the permit.
5(Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19;
6100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)
 
7    (625 ILCS 5/3-301)  (from Ch. 95 1/2, par. 3-301)
8    Sec. 3-301. New certificate of title for rebuilt vehicle.
9    (a) For vehicles 8 model years of age or newer, the
10Secretary of State shall issue a new certificate of title to
11any rebuilt vehicle or any vehicle which previously had been
12titled as salvage in this State or any other jurisdiction upon
13the successful inspection of the vehicle in accordance with
14Section 3-308 of this Article.
15    (b) Vehicles more than 8 model years old shall not be
16required to complete a successful inspection required under
17Section 3-308 of this Code before being issued a new
18certificate of title as provided under this Section.
19    (c) Vehicles designated as flood vehicles that have
20sustained damage greater than 50% 33 1/3% of their fair market
21value with that damage shall be required to complete a
22successful inspection required under Section 3-308 of this
23Code before being issued a new certificate of title provided
24under paragraph (5), subsection (b) of Section 3-117.1.
25(Source: P.A. 88-685, eff. 1-24-95; 89-669, eff. 1-1-97.)