Public Act 098-0749
 
HB5938 EnrolledLRB098 18594 HLH 53735 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
ARTICLE 5. CONVEYANCE AND ENCUMBRANCE OF MANUFACTURED HOMES AS
REAL PROPERTY AND SEVERANCE ACT

 
    Section 5-1. Short title. This Act may be cited as the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act. All references in this Article to
"this Act" mean this Article.
 
    Section 5-2. Findings and purpose.
    (a) The General Assembly finds that there is a need to
clarify the legal status of manufactured homes affixed or to be
affixed to real property in the State.
    (b) The purpose of this Act is to establish a clear
statutory procedure for converting to real property
manufactured homes located outside of mobile home parks that
are affixed to real property and for the severance of
manufactured homes from real property.
 
    Section 5-5. Manufactured home; permanently affixed to
real property. For the purposes of this Act, "manufactured
home" means a manufactured home as defined in subdivision (53)
of Section 9-102 of the Uniform Commercial Code.
Notwithstanding the foregoing, for the purposes of subsection
(b)(2) of Section 1322 of the federal Bankruptcy Code (11
U.S.C. 1322(b)(2)), a manufactured home shall be deemed to be
real property. For the purposes of this Act, a manufactured
home is "affixed to a permanent foundation" if the wheels,
axles, and towing hitch are removed, and it is anchored to real
property by attachment to a permanent foundation and connected
to residential utilities (such as water, gas, electricity, or
sewer or septic service). The certification of a certified
residential real estate appraiser, a certified general real
estate appraiser, a licensed manufactured home installer, or a
licensed professional engineer that the home is affixed to a
permanent foundation shall establish conclusively that the
home is affixed to a permanent foundation.
 
    Section 5-10. Act not mandatory; record notice. The owner
of a manufactured home that is personal property or a fixture
may, but need not, cause that manufactured home to be deemed to
be real property by satisfying the requirements of Section 5-30
of this Act and the requirements of Section 3-116.1 or 3-116.2
of the Illinois Vehicle Code, as applicable.
    To convey or voluntarily encumber a manufactured home as
real property, the following conditions must be met:
        (1) the manufactured home must be affixed to a
    permanent foundation on real property;
        (2) the ownership interests in the manufactured home
    and the real property to which the manufactured home is
    affixed must be identical, or, if the manufactured home is
    not located in a mobile home park as defined in Section 2.5
    of the Mobile Home Park Act, and if the owner of the
    manufactured home, if not the owner of the real property,
    is in possession of the real property pursuant to the terms
    of a lease in recordable form that has a term that
    continues for at least 20 years after the date of
    execution, then the consent of the lessor of the real
    property must be given;
        (3) the person (all, if more than one) having an
    ownership interest in such manufactured home shall execute
    and record with the recording officer of the county in
    which the real property is located an affidavit of
    affixation as provided in Section 5-15 of this Act and
    satisfy the other applicable requirements of this Act; and
        (4) upon receipt of a certified copy of the recorded
    affidavit of affixation pursuant to Section 5-25 of this
    Act, any person designated therein for filing with the
    Secretary of State shall file the certified copy of
    affidavit of affixation with the Secretary of State; except
    that
            (A) in a case described in subsection (a)(4)(A) of
        Section 5-15 of this Act, a certified copy of the
        affidavit of affixation and the original
        Manufacturer's Statement of Origin, each as recorded
        in the county in which the real property is located,
        must be filed with the Secretary of State pursuant to
        Section 3-116.1 of the Illinois Vehicle Code; and
            (B) in a case described in subsection (a)(4)(B) of
        Section 5-15 of this Act, a certified copy of the
        recorded affidavit of affixation as recorded in the
        county in which the real property is located, and the
        original certificate of title, including, if
        applicable, a certificate of title issued in
        accordance with subsection (b) of Section 3-109 of the
        Illinois Vehicle Code, must be filed with the Secretary
        of State pursuant to Section 3-116.2 of the Illinois
        Vehicle Code.
 
    Section 5-15. Affidavit of affixation.
    (a) An affidavit of affixation shall contain or be
accompanied by:
        (1) the name of the manufacturer, the make, the model
    name, the model year, the dimensions, and the
    manufacturer's serial number or numbers of the
    manufactured home, and whether the manufactured home is new
    or used;
        (2)(A) a statement that the party executing the
    affidavit is the owner of the real property described
    therein or (B) if the party executing the affidavit is not
    the owner of the real property, (1) a statement that the
    manufactured home is not located in a mobile home park as
    defined in Section 2.5 of the Mobile Home Park Act and that
    the party executing the affidavit is in possession of the
    real property pursuant to the terms of a lease in
    recordable form that has a term that continues for at least
    20 years after the date of execution of the affidavit and
    (2) the consent of the lessor of the real property,
    endorsed upon or attached to the affidavit and acknowledged
    or proved in the manner as to entitle a conveyance to be
    recorded;
        (3) the street address and the legal description of the
    real property to which the manufactured home is or shall be
    affixed; and
        (4) as applicable:
            (A) if the manufactured home is not covered by a
        certificate of title, including, if applicable, a
        certificate of title issued in accordance with
        subsection (b) of Section 3-109 of the Illinois Vehicle
        Code, a statement by the owner to that effect, and
                (i) a statement by the owner of the
            manufactured home that the manufactured home is
            covered by a Manufacturer's Statement of Origin,
            the date the Manufacturer's Statement of Origin
            was issued, and the manufacturer's serial number
            or numbers of the manufactured home; and
                (ii) a statement that annexed to the affidavit
            of affixation is the original Manufacturer's
            Statement of Origin for the manufactured home,
            duly endorsed to the owner of the manufactured
            home, and that the owner of the manufactured home
            shall surrender the Manufacturer's Statement of
            Origin; or
            (B) if the manufactured home is covered by a
        certificate of title, including, if applicable, a
        certificate of title issued in accordance with
        subsection (b) of Section 3-109 of the Illinois Vehicle
        Code, a statement by the owner of the manufactured home
        that the manufactured home is covered by a certificate
        of title, the date the title was issued, the title
        number, and that the owner of the manufactured home
        shall surrender the title;
        (5) a statement whether or not the manufactured home is
    subject to one or more security interests or liens, and
            (A) if the manufactured home is subject to one or
        more security interests or liens, the name and address
        of each party holding a security interest in or lien on
        the manufactured home, including but not limited to,
        each holder shown on any certificate of title issued by
        the Secretary of State, if any, the original principal
        amount secured by each security interest or lien; and a
        statement that the security interest or lien shall be
        released; or
            (B) a statement that each security interest in or
        lien on the manufactured home, if any, has been
        released, together with due proof of each such release;
        (6) a statement that the manufactured home is or shall
    be affixed to a permanent foundation;
        (7) the name and address of a person designated for
    filing the certified copy of the affidavit of affixation
    with the Secretary of State, to whom the recording officer
    shall return the certified copy of the affidavit of
    affixation after it has been duly recorded in the real
    property records, as provided in Section 5-25 of this Act;
    and
        (8) the certification of a certified residential real
    estate appraiser, a certified general real estate
    appraiser, a licensed manufactured home installer, or a
    licensed professional engineer, as provided in Section 5-5
    of this Act.
    (b) An affidavit of affixation shall be in the form set
forth in this Section, duly acknowledged or proved in like
manner as to entitle a conveyance to be recorded, and when so
acknowledged or proved and upon payment of the lawful fees
therefor, the recording officer shall immediately cause the
affidavit of affixation and any attachments thereto to be duly
recorded and indexed in the record of deeds.
    (c) An affidavit of affixation shall be in the form set
forth below:
 
MANUFACTURED HOME
AFFIDAVIT OF AFFIXATION

 
STATE OF ........................)
                                 )SS.
COUNTY OF .......................)
 
BEFORE ME, the undersigned Notary Public, on this day
personally appeared ......................... (type the
name(s) of each person signing this Affidavit) known to me to
be the person(s) whose name(s) is/are subscribed below (each a
"Homeowner"), and who, being by me first duly sworn, did each
on his or her oath state as follows:
1. Homeowner owns the manufactured home ("Home") described as
    follows:
.....................................................
..............................
(Year;  Manufacturer's Name; Manufacturer's Serial No(s).)
 
2. The street address of the real property to which the Home is
    or shall be permanently affixed ("Property Address") is:
 
.............................................................
(Street or Route; City; County; State; Zip Code)
 
3. The legal description of the real property to which the Home
    is or shall be affixed ("Land") is:
..........................
..............................
..............................
..............................
 
4. Homeowner is the owner of the Land or, if not the owner of
    the Land, the Home is not located in a mobile home park, as
    defined in Section 2.5 of the Mobile Home Park Act, and
    Homeowner is in possession of the Land pursuant to a lease
    in recordable form that has a term that continues for at
    least 20 years after the date of the execution of this
    Affidavit, and the consent of the lessor is attached to
    this Affidavit.
5. The Home is or shall be assessed and taxed as an improvement
    to the Land.
6. As of the date of the execution of this Affidavit, or, if
    the Home is not yet located at the Property Address, upon
    the delivery of the Home to the Property Address:
    (a) The Home [ ] is [ ] shall be affixed to a permanent
foundation as defined in Section 5-5 of the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act;
    (b) The wheels, axles, towbar, or hitch were removed when
the Home was placed on the Property Address; and
7. The Home [ ] was [ ] was not permanently affixed before
    January 1, 2011.
8. If Homeowner is the owner of the Land, any conveyance or
    financing of the Home and the Land shall be a single
    transaction under applicable State law.
9. The Home is subject to the following security interests or
    liens:
 
Name of Lienholder: ................
Address: ....................................................
 
Name of Lienholder: ................
Address: ....................................................
 
10. Other than those disclosed in this Affidavit, Homeowner is
    not aware of (i) any other security interest, claim, lien,
    or encumbrance affecting the Home or (ii) any other facts
    or information that could reasonably affect the validity of
    the title of the Home or the existence or non-existence of
    security interests in it.
11. A release of lien from each of the lienholders identified
    in paragraph 11 of this Affidavit [] has been [] shall be
    delivered to the Secretary of State.
12. Homeowner shall initial only one of the following, as it
    applies to the Home:
    [] The Home is not covered by a certificate of title. The  
Home is covered by a Manufacturer's Statement of Origin, 
issued on the ...... of .........., ....., manufacturer's 
serial number ........................, which Homeowner shall 
surrender. The original Manufacturer's Statement of Origin, 
duly endorsed to Homeowner, is attached to this Affidavit. 
    [] The Home is covered by a certificate of title issued 
on the ....... day of .........., ......, title number 
........................, which  Homeowner shall surrender.
13. Homeowner designates the following person to file a
    certified copy of this Affidavit with the Secretary of
    State, and the person to whom the Recorder shall return a
    certified copy of this Affidavit after it has been duly
    recorded in the real property records:
    Name: ..............................................
    Address: ................................................
 
14. This Affidavit is executed by Homeowner pursuant to Section
    5-15 of the Conveyance and Encumbrance of Manufactured
    Homes as Real Property and Severance Act.
15. The certification, pursuant to Section 5-5 of the
    Conveyance and Encumbrance of Manufactured Homes as Real
    Property and Severance Act, of a certified residential real
    estate appraiser, a certified general real estate
    appraiser, a licensed manufactured home installer, or a
    licensed professional engineer that the home is affixed to
    a permanent foundation is attached to this Affidavit.
IN WITNESS WHEREOF, Homeowner(s) has/have executed this 
Affidavit in my presence and in the presence of the 
undersigned witnesses on this ...... day of ......, ......
 
...........................(SEAL) ..........................
Homeowner #1                      Witness
...........................
Printed Name
 
...........................(SEAL) ..........................
Homeowner #2                      Witness
...........................
Printed Name
 
...........................(SEAL) ..........................
Homeowner #3                      Witness
...........................
Printed Name
 
...........................(SEAL) ..........................
Homeowner #4                      Witness
...........................
Printed Name
 
STATE OF .........................)
                                  )  SS.
COUNTY OF ........................)
 
 
    The foregoing instrument was acknowledged before me this
(date) by (name(s) of person(s) who acknowledged).
                  .......................... Notary Public
                          Signature
 
                 My commission expires: ...................
                 Official Seal:
 
    ATTENTION RECORDER: This instrument covers goods that are
or are to become fixtures on the Property described herein and
is to be filed for record in the records where conveyances of
real estate are recorded.
 
    Section 5-20. Disposition of liens. Neither the act of
affixing a manufactured home to a permanent foundation nor the
recording of the affidavit of affixation shall impair the
rights of any holder of a security interest in or lien on a
manufactured home perfected as provided in Section 3-202 of the
Illinois Vehicle Code, unless and until the due filing with and
acceptance by the Secretary of State of an application to
surrender the title as provided in Section 3-116.2 of the
Illinois Vehicle Code and release of all security interests or
liens as provided in Section 3-205 of the Illinois Vehicle
Code. Upon the filing of such releases, the security interests
or liens perfected under Section 3-202 of the Illinois Vehicle
Code are terminated. The recording of an affidavit of
affixation does not change the character of any security
interest or lien noted on a certificate of title, and no
recording tax shall be imposed at the time an affidavit of
affixation is recorded upon any security interest in or lien on
a manufactured home perfected under Section 3-202 of the
Illinois Vehicle Code.
 
    Section 5-25. Notice to Secretary of State. Upon payment of
the fees provided by law and recordation of the affidavit of
affixation, the recording officer shall endorse the affidavit
as "recorded in land records", setting forth thereon the
indexing information for the affidavit of affixation, and the
recording officer shall forthwith forward a certified copy of
the recorded affidavit of affixation and all attachments
thereto to the person designated therein for filing with the
Secretary of State. Upon receipt of a certified copy of the
recorded affidavit of affixation by the person designated
therein for filing with the Secretary of State, such person
shall forthwith deliver for filing to the Secretary a certified
copy of the affidavit of affixation and other documents as
provided in item (4) of Section 5-10 of this Act.
 
    Section 5-30. Effect of recorded affidavit of affixation. A
manufactured home shall be deemed to be real property when all
of the following events have occurred:
    (1) the manufactured home is affixed to a permanent
foundation as provided in Section 5-5 of this Act;
    (2) an affidavit of affixation conforming to the
requirements of Section 5-15 of this Act has been recorded;
    (3) a certified copy of the recorded affidavit of
affixation has been delivered for filing to the Secretary of
State as provided in Section 5-25 of this Act; and
    (4) the requirements of Section 3-116.1 or 3-116.2 of the
Illinois Vehicle Code, as applicable, have been satisfied.
    A conclusive presumption shall arise that the averments of
the recorded affidavit of affixation establish that, for all
purposes, the manufactured home is real property.
 
    Section 5-35. Conveyance and encumbrance as real property.
Upon the satisfaction of the requirements of Section 5-30 of
this Act and the requirements of Section 3-116.1 or 3-116.2 of
the Illinois Vehicle Code, as applicable, such manufactured
home shall be deemed to be real property; any mortgage, deed of
trust, lien, or security interest that can attach to land,
buildings erected thereon, or fixtures affixed thereto shall
attach as of the date of its recording in the same manner as if
the manufactured home were built from ordinary building
materials on site; title to such manufactured home shall be
transferred by deed or other form of conveyance that is
effective to transfer an interest in real property, together
with the land to which such structure has been affixed; and the
manufactured home shall be deemed to be real property and shall
be governed by the laws applicable to real property.
 
    Section 5-40. Exclusive procedure. The method of
converting a manufactured home to real property set forth in
Section 5-10 of this Act shall be exclusive, and shall supplant
the common law of fixtures as it relates to manufactured homes.
 
    Section 5-45. Applicability. Nothing in this Act shall
impair any rights existing under law prior to the effective
date of this Act of anyone claiming an interest in the
manufactured home.
 
    Section 5-50. Affidavit of severance.
    (a) If and when a manufactured home for which an affidavit
of affixation has been recorded is detached or severed from the
real property to which it is affixed, the person (all, if more
than one) having an interest in the real property shall record
an affidavit of severance in the land records of the county
where the affidavit of affixation with respect to the
manufactured home is recorded. The affidavit of severance shall
contain or be accompanied by:
        (i) the name, residence, and mailing address of the
    owner of the manufactured home;
        (ii) a description of the manufactured home including
    the name of the manufacturer, manufacturer's serial number
    or numbers of the manufactured home;
        (iii) the book number, page number and date of
    recordation of the affidavit of affixation;
        (iv) a statement of either (A) any facts or information
    known to the party executing the affidavit that could
    reasonably affect the validity of the title of the
    manufactured home or the existence or non-existence of a
    security interest in or lien on it, or (B) that no such
    facts or information are known to such party; and
        (v) the name and address of the person designated for
    filing the certified copy of the recorded affidavit of
    severance with the Secretary of State, to whom the
    recording officer shall return the certified copy of the
    affidavit of severance after it has been duly recorded in
    the real property records, as provided in subsection (d) of
    this Section.
    (b) The affidavit of severance shall be in the form set
forth in subsection (d) of this Section, duly acknowledged or
proved in like manner as to entitle a conveyance to be
recorded, and when so acknowledged or proved and upon payment
of the lawful fees therefor, such recording officer shall
immediately cause the affidavit and any attachments thereto to
be duly recorded and indexed in the record of deeds.
    (c) Upon payment of the fees provided by law and
recordation of the affidavit of severance, the recording
officer shall endorse the affidavit as "recorded in land
records", setting forth thereon the indexing information for
the recorded affidavit of severance, and the recording officer
shall forthwith forward a certified copy of the recorded
affidavit of severance to the person designated therein for
filing with the Secretary of State. Upon receipt of a certified
copy of the recorded affidavit of severance by the person
designated therein for filing with the Secretary of State, such
person shall deliver for filing to the Secretary of State such
certified copy of the affidavit of severance and the other
documents provided in subsection (a) of this Section, together
with an application for a certificate of title to the
manufactured home, to be issued in accordance with subsection
(b) of Section 3-109 of the Illinois Vehicle Code.
    (d) An affidavit of severance shall be in the form set
forth below:
 
MANUFACTURED HOME
AFFIDAVIT OF SEVERANCE

 
STATE OF .........................)
                                  )SS.
COUNTY OF ........................)
 
BEFORE ME, the undersigned notary public, on this day
personally appeared ................... (type the name(s) of
each person signing this Affidavit) known to me to be the
person(s) whose name(s) is/are subscribed below (each an
"Affiant"), and who, being by me first duly sworn, did each on
his or her oath state as follows:
 
1. The owner(s) of the manufactured home described below
    reside(s) at the following address:
..........................
(Street or Route; City; County; State; Zip Code)
 
Mailing address, if different:
...............................
(Street or Route; City; County; State; Zip Code)
 
2. The manufactured home that is the subject of this Affidavit
    ("Home") is described as follows:
............................
(Year;  Manufacturer's Name; Manufacturer's Serial No(s).)
 
3. The Home was severed from the following address ("Land"):
.
(Street or Route; City; County; State; Zip Code)
 
4. An Affidavit of Affixation was duly recorded in the land 
    records of  the  county in which the  Land is located on 
    (date) ............., in book number ...... at page 
    number .....
5. Affiant is the owner of the Land or, if not the owner of 
    the Land, is in possession of the Land pursuant to a 
    lease in recordable form, and the consent of the lessor 
    is attached to this Affidavit.
6. The Home is subject to the following security interests:
 
Name of Lienholder: ................
Address: ....................................................
 
Name of Lienholder: ................
Address: ....................................................
 
7. Other than those disclosed in this Affidavit, Affiant is 
    not aware of (i) any other security interest, claim, 
    lien, or encumbrance affecting the Home or (ii) any other 
    facts or information that could reasonably affect the 
    validity of the title of the Home or the existence or 
    non-existence of security interests in it.
8. A release of lien from each of the lienholders identified 
    in paragraph 6 of this Affidavit [] has been [] shall  be 
    delivered to the Secretary of State. 
9. Affiant designates the following person to file a 
    certified copy of this Affidavit with the Secretary of 
    State, and the person to whom the Recorder shall return a 
    certified copy of this Affidavit after it has been duly 
    recorded in the real property records:
    Name: ...............................................
    Address: ................................................
 
10. This Affidavit is executed by Affiant pursuant to Section 
    5-50 of the Conveyance and Encumbrance of Manufactured 
    Homes as Real Property and Severance Act.
    IN WITNESS WHEREOF, Affiant(s) has/have executed this 
    Affidavit in my presence and in the presence of the 
    undersigned witnesses on this ....... day of 
    ................, .......
...........................(SEAL) ..........................
Homeowner #1                      Witness
...........................
Printed Name
 
...........................(SEAL) ..........................
Homeowner #2                      Witness
...........................
Printed Name
 
...........................(SEAL) ..........................
Homeowner #3                      Witness
...........................
Printed Name
 
...........................(SEAL) ..........................
Homeowner #4                      Witness
...........................
Printed Name
 
STATE OF .........................)
                                  )  SS.
COUNTY OF ........................)
 
    The foregoing instrument was acknowledged before me this
(date) by (name(s) of person(s) who acknowledged).
                  .......................... Notary Public
                          Signature
 
                 My commission expires: ...................
                 Official Seal:
 
ATTENTION RECORDER: This instrument covers goods that had been
fixtures on the Property described herein and is to be filed
for record in the records where conveyances of real estate are
recorded.
 
    Section 5-55. Documents in trust.
    (a) Manufacturer's Statement of Origin. The holder of a
Manufacturer's Statement of Origin to a manufactured home may
deliver it to any person to facilitate conveying or encumbering
the home. Any person receiving a Manufacturer's Statement of
Origin so delivered holds it in trust for the person delivering
it.
    (b) Lien Release. The holder of a security interest in a
manufactured home may deliver lien release documents to any
person to facilitate conveying or encumbering the home. Any
person receiving any such documents so delivered holds the
documents in trust for the lienholder.
 
ARTICLE 10. AMENDATORY PROVISIONS

 
    Section 10-15. The Property Tax Code is amended by changing
Section 1-130 as follows:
 
    (35 ILCS 200/1-130)
    Sec. 1-130. Property; real property; real estate; land;
tract; lot.
    (a) The land itself, with all things contained therein, and
also all buildings, structures and improvements, and other
permanent fixtures thereon, including all oil, gas, coal, and
other minerals in the land and the right to remove oil, gas and
other minerals, excluding coal, from the land, and all rights
and privileges belonging or pertaining thereto, except where
otherwise specified by this Code. Not included therein are
low-income housing tax credits authorized by Section 42 of the
Internal Revenue Code, 26 U.S.C. 42.
    (b) Notwithstanding any other provision of law, mobile
homes and manufactured homes that (i) are located outside of
mobile home parks and (ii) are taxed under the Mobile Home
Local Services Tax Act on the effective date of this amendatory
Act of the 96th General Assembly shall continue to be taxed
under the Mobile Home Local Services Tax Act and shall not be
classified, assessed, and taxed as real property until the home
is sold or transferred or until the home is relocated to a
different parcel of land outside of a mobile home park. If a
mobile home or manufactured home described in this subsection
(b) is sold, transferred, or relocated to a different parcel of
land outside of a mobile home park, then the home shall be
classified, assessed, and taxed as real property whether or not
that mobile home or manufactured home is affixed to a permanent
foundation, as defined in Section 5-5 of the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act, or installed on a permanent foundation, and
whether or not such mobile home or manufactured home is real
property as defined in Section 5-35 of the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act. Mobile homes and manufactured homes that are
located outside of mobile home parks and classified, assessed,
and taxed as real property on the effective date of this
amendatory Act of the 96th General Assembly shall continue to
be classified, assessed, and taxed as real property whether or
not those mobile homes or manufactured homes are affixed to a
permanent foundation as defined in the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act or installed on permanent foundations and whether
or not those mobile homes or manufactured homes are real
property as defined in the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act. If a
mobile or manufactured home that is located outside of a mobile
home park is relocated to a mobile home park, it must be
considered chattel and must be taxed according to the Mobile
Home Local Services Tax Act. The owner of a mobile home or
manufactured home that is located outside of a mobile home park
may file a request with the chief county assessment officer
county that the home be classified, assessed, and taxed as real
property.
    (c) Mobile homes and manufactured homes that are located in
mobile home parks must be considered chattel and must be taxed
according to the Mobile Home Local Services Tax Act.
    (d) If the provisions of this Section conflict with the
Illinois Manufactured Housing and Mobile Home Safety Act, the
Mobile Home Local Services Tax Act, the Mobile Home Park Act,
or any other provision of law with respect to the taxation of
mobile homes or manufactured homes located outside of mobile
home parks, the provisions of this Section shall control.
(Source: P.A. 96-1477, eff. 1-1-11.)
 
    Section 10-20. The Mobile Home Local Services Tax Act is
amended by changing Sections 1 and 4 as follows:
 
    (35 ILCS 515/1)  (from Ch. 120, par. 1201)
    Sec. 1. (a) As Except as provided in subsections (b) and
(c), as used in this Act, "manufactured home" means a
factory-assembled, completely integrated structure designed
for permanent habitation, with a permanent chassis, and so
constructed as to permit its transport, on wheels temporarily
or permanently attached to its frame, and is a movable or
portable unit that is (i) 8 body feet or more in width, (ii) 40
body feet or more in length, and (iii) 320 or more square feet,
constructed to be towed on its own chassis (comprised of frame
and wheels) from the place of its construction to the location,
or subsequent locations, at which it is installed and set up
according to the manufacturer's instructions and connected to
utilities for year-round occupancy for use as a permanent
habitation, and designed and situated so as to permit its
occupancy as a dwelling place for one or more persons, and
specifically includes a "manufactured home" as defined in
subdivision (53) of Section 9-102 of the Uniform Commercial
Code. The term shall include units containing parts that may be
folded, collapsed, or telescoped when being towed and that may
be expected to provide additional cubic capacity, and that are
designed to be joined into one integral unit capable of being
separated again into the components for repeated towing. The
term excludes campers and recreational vehicles. Mobile homes
and manufactured homes in mobile home parks must be assessed
and taxed as chattel. Mobile homes and manufactured homes
outside of mobile home parks must be assessed and taxed as real
property whether or not such mobile homes and manufactured
homes are affixed to a permanent foundation as defined in
Section 5-5 of the Conveyance and Encumbrance of Manufactured
Homes as Real Property and Severance Act, and whether or not
such mobile homes and manufactured homes are real property as
defined in Section 5-35 of the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act. The
words "mobile home" and "manufactured home" are synonymous for
the purposes of this Act. Any such structure located outside of
a mobile home park shall not be assessed and taxed construed as
chattel, but must be assessed and taxed as real property as
defined by Section 1-130 of the Property Tax Code. All mobile
homes and manufactured homes located inside mobile home parks
must be considered as chattel and taxed according to this Act.
Mobile homes and manufactured homes located on a dealer's lot
for resale purposes or as a temporary office shall not be
subject to this tax.
    (b) Mobile homes and manufactured homes that (i) are
located outside of mobile home parks and (ii) are taxed under
this Act on the effective date of this amendatory Act of the
96th General Assembly must continue to be taxed under this Act
and shall not be classified, assessed, and taxed as real
property until the home is sold, transferred, or relocated to a
different parcel of land outside of a mobile home park. If a
mobile home or manufactured home described in this subsection
(b) is sold, transferred, or relocated to a different parcel of
land outside of a mobile home park, then the home must be
classified, assessed, and taxed as real property whether or not
the mobile home or manufactured home is affixed to a permanent
foundation as defined in Section 5-5 of the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act and whether or not the mobile home or
manufactured home is real property as defined in Section 5-35
of the Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act. Mobile homes and manufactured homes
that are located outside of mobile home parks and classified,
assessed, and taxed as real property on the effective date of
this amendatory Act of the 96th General Assembly must continue
to be classified, assessed, and taxed as real property whether
or not the mobile homes and manufactured homes are affixed to a
permanent foundation as defined in Section 5-5 of the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act or installed on permanent
foundations and whether or not the mobile homes and
manufactured homes are real property as defined in Section 5-35
of the Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act. If a mobile or manufactured home
that is located outside of a mobile home park is relocated to a
mobile home park, the home must be considered chattel and must
be taxed according to the Mobile Home Local Services Tax Act.
The owner of a mobile home or manufactured home that is located
outside of a mobile home park may file a request with the
county that the home be classified, assessed, and taxed as real
property.
    (c) Mobile homes and manufactured homes that are located in
mobile home parks must be considered chattel and must be taxed
according to this Act.
(Source: P.A. 96-1477, eff. 1-1-11.)
 
    (35 ILCS 515/4)  (from Ch. 120, par. 1204)
    Sec. 4. The owner of each inhabited mobile home or
manufactured home located in this State, but not located inside
of a mobile home park, on the effective date of this amendatory
Act of the 96th General Assembly shall, within 30 days after
such date, record with the Office of the Recorder in the county
where the mobile home or manufactured home is located file with
the township assessor, if any, or with the Supervisor of
Assessments or county assessor if there is no township
assessor, or with the county assessor in those counties in
which a county assessor is elected pursuant to Section 3-45 of
the Property Tax Code, a mobile home registration form
containing the information hereinafter specified, subject to
the county's recording fees and record a signed copy of the
title or certificate of origin in the county where the home is
located or surrender the signed title or certificate of origin
to be held by the county until such time as the home is to be
removed from the county. Mobile home park operators shall
forward a copy of the mobile home registration form provided in
Section 12 of "An Act to provide for, license and regulate
mobile homes and mobile home parks and to repeal an Act named
herein", approved September 8, 1971, as amended, to the
township assessor, if any, or to Supervisor of Assessments or
county assessor if there is no township assessor, or to the
county assessor in those counties in which a county assessor is
elected pursuant to Section 3-45 of the Property Tax Code,
within 5 days of the entry of a mobile home into such park. The
owner of a mobile home or manufactured home not located in a
mobile home park, other than a mobile home or manufactured home
with respect to which the requirements of Section 5-30 of the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act and the requirements of Section
3-116.1 or Section 3-116.2 of the Illinois Vehicle Code, as
applicable, have been satisfied unless with respect to the same
manufactured home there has been recorded an affidavit of
severance pursuant to Section 5-50 of the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act, shall, within 30 days after initial placement of
such mobile home or manufactured home in any county and within
30 days after movement of such mobile home or manufactured home
to a new location, record with the Office of the Recorder in
the county where the mobile home or manufactured home is
located file with the county assessor, Supervisor of
Assessments or township assessor, as the case may be, a mobile
home registration showing the name and address of the owner and
every occupant of the mobile home or manufactured home, the
location of the mobile home or manufactured home, the year of
manufacture, and the square feet of floor space contained in
such mobile home or manufactured home together with the date
that the mobile home or manufactured home became inhabited, was
initially installed and set up in the county, or was moved to a
new location. Such registration shall also include the license
number of such mobile home or manufactured home and of the
towing vehicle, if there be any, and the State issuing such
licenses, subject to the county's recording fees. In the case
of a mobile home or manufactured home not located in a mobile
home park, the registration shall be signed by the owner or
occupant of the mobile home or manufactured home. and the title
or certificate of origin shall be signed and recorded in the
county where the home is located or surrendered to the county
and held until such time the home is removed from the county.
Titles or certificates of origin held by a mortgage company on
the home shall be signed and recorded in the county where
located or surrendered to the county once the mortgage is
released. Failure to record the registration or surrender the
title or certificate of origin shall not prevent the home from
being assessed and taxed as real property. It is the duty of
each township assessor, if any, and each Supervisor of
Assessments or county assessor if there is no township
assessor, or the county assessor in those counties in which a
county assessor is elected pursuant to Section 3-45 of the
Property Tax Code, to require timely filing of a properly
completed registration for each mobile home or manufactured
home located in a mobile home park in his or her township or
county, as the case may be. Any person furnishing
misinformation for purposes of registration or failing to
record file a required registration is guilty of a Class A
misdemeanor. This Section applies only when the tax permitted
by Section 3 has been imposed on mobile homes and manufactured
homes located inside mobile home parks.
(Source: P.A. 96-1477, eff. 1-1-11.)
 
    Section 10-25. The Illinois Banking Act is amended by
changing Sections 3, 5a, 5d, and 6.1 as follows:
 
    (205 ILCS 5/3)  (from Ch. 17, par. 309)
    Sec. 3. Formation and primary powers. It shall be lawful to
form banks, as herein provided, for the purpose of discount and
deposit, buying and selling exchange and doing a general
banking business, excepting the issuing of bills to circulate
as money; and such banks shall have the power to loan money on
personal and real estate security, and to accept and execute
trusts upon obtaining a certificate of authority pursuant to
the "Corporate Fiduciary Act", and shall be subject to all of
the provisions of this Act. For purposes of this Section, "real
estate" includes a manufactured home as defined in subdivision
(53) of Section 9-102 of the Uniform Commercial Code that is
real property as defined in Section 5-35 of the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act.
(Source: P.A. 85-1402.)
 
    (205 ILCS 5/5a)  (from Ch. 17, par. 312)
    Sec. 5a. Reverse mortgage loans. Notwithstanding any other
provision of this Act, a bank may engage in making "reverse
mortgage" loans.
    For purposes of this Section, a "reverse mortgage" loan
shall be a loan extended on the basis of existing equity in
homestead property. A bank, in making a "reverse mortgage"
loan, may add deferred interest to principal or otherwise
provide for the charging of interest or premium on the deferred
interest.
    The loans shall be repaid upon sale of the property or upon
the death of the owner or, if the property is in joint tenancy,
upon the death of the last surviving joint tenant who had an
interest in the property at the time the loan was initiated.
    "Homestead" property, for purposes of this Section, means
the domicile and contiguous real estate owned and occupied by
the mortgagor. For purposes of this Section, "homestead"
includes a manufactured home as defined in subdivision (53) of
Section 9-102 of the Uniform Commercial Code, used as the
domicile, that is real property, as defined in Section 5-35 of
the Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act, and is owned and occupied by the
mortgagor.
    The Commissioner of Banks and Real Estate shall prescribe
rules governing this Section and Section 1-6a of the Illinois
Savings and Loan Act of 1985.
(Source: P.A. 88-643, eff. 1-1-95; 89-508, eff. 7-3-96.)
 
    (205 ILCS 5/5d)  (from Ch. 17, par. 312.3)
    Sec. 5d. Notwithstanding any other provision of this Act, a
bank may engage in making revolving credit loans secured by
mortgages or deeds of trust on real property or by security
assignments of beneficial interests in land trusts.
    For purposes of this Section, "revolving credit", has the
meaning defined in Section 4.1 of "An Act in relation to the
rate of interest and other charges in connection with sales on
credit and the lending of money", approved May 24, 1879, as
amended.
    Any mortgage or deed of trust given to secure a revolving
credit loan may, and when so expressed therein shall, secure
not only the existing indebtedness, but also such future
advances, whether such advances are obligatory or to be made at
the option of the lender, or otherwise, as are made within
twenty years from the date thereof, to the same extent as if
such future advances were made on the date of the execution of
such mortgage or deed of trust, although there may be no
advance made at the time of execution of such mortgage or other
instrument, and although there may be no indebtedness
outstanding at the time any advance is made. The lien of such
mortgage or deed of trust, as to third persons without actual
notice thereof, shall be valid as to all such indebtedness and
future advances from the time said mortgage or deed of trust is
filed for record in the office of the Recorder of Deeds or the
Registrar of Titles of the county where the real property
described therein is located. The total amount of indebtedness
that may be so secured may increase or decrease from time to
time, but the total unpaid balance so secured at any one time
shall not exceed a maximum principal amount which must be
specified in such mortgage or deed of trust, plus interest
thereon, and any disbursements made for the payment of taxes,
special assessments, or insurance on said real property, with
interest on such disbursements.
    Any such mortgage or deed of trust shall be valid and have
priority over all subsequent liens and encumbrances, including
statutory liens, except taxes and assessments levied on said
real property.
    For purposes of this Section, "real property" includes a
manufactured home as defined in subdivision (53) of Section
9-102 of the Uniform Commercial Code, that is real property as
defined in Section 5-35 of the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 83-1539; 83-1380.)
 
    (205 ILCS 5/6.1)  (from Ch. 17, par. 313.1)
    Sec. 6.1. Non-recourse reverse mortgage loans.
    (a) It is the intent of this amendatory Act of 1991 that
homeowners at least 62 years of age be permitted to meet their
financial needs by accessing the equity in their homes through
a reverse mortgage. The General Assembly recognizes that many
restrictions and requirements that exist to govern traditional
mortgage transactions are inapplicable in the context of
reverse mortgages. In order to foster reverse mortgage
transactions and better serve the citizens of this State, this
Section authorizes the making of reverse mortgages, and
expressly relieves reverse mortgage lenders and borrowers from
compliance with inappropriate requirements.
    As used in this Section, "borrower" means any homeowner who
is, or whose spouse is, at least 62 years of age.
    For purposes of this Section, "real property" includes a
manufactured home as defined in subdivision (53) of Section
9-102 of the Uniform Commercial Code which is real property as
defined in Section 5-35 of the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
    As used in this Section, "reverse mortgage" means a
non-recourse loan, secured by real property, that complies with
all of the following:
        (1) Provides cash advances to a borrower based on the
    equity in a borrower's owner-occupied principal residence,
    provided that it is a residence designed to be occupied by
    not more than 4 families.
        (2) Requires no payment of principal or interest until
    the entire loan becomes due and payable.
    (b) Reverse mortgage loans shall be subject only to all of
the following provisions:
        (1) Payment, in whole or in part, shall be permitted
    without penalty at any time during the term of the
    mortgage.
        (2) A reverse mortgage may provide for an interest rate
    that is fixed or adjustable and may provide for interest
    that is contingent on appreciation in the value of the
    property.
        (3) If a reverse mortgage provides for periodic
    advances to a borrower, the advances may not be reduced in
    amount or number based on any adjustment in the interest
    rate.
        (4) A reverse mortgage may be subject to any additional
    terms and conditions imposed by a lender that are required
    under the provisions of the federal Housing and Community
    Development Act of 1987 to enable the lender to obtain
    federal government insurance on the mortgage if the loans
    are to be insured under that Act.
    (c) The repayment obligation under a reverse mortgage is
subject to all of the following:
        (1) Temporary absences from the home not exceeding 60
    consecutive days shall not cause the mortgage to become due
    and payable.
        (2) Temporary absences from the home exceeding 60 days,
    but not exceeding one year shall not cause the mortgage to
    become due and payable, provided that the borrower has
    taken action that secures the home in a manner satisfactory
    to the lender.
        (3) The lender must disclose any interest or other fees
    to be charged during the period that commences on the date
    the mortgage becomes due and payable and ends when
    repayment in full is made in accordance with applicable
    State and federal laws, rules, and regulations.
    (d) A reverse mortgage shall become due and payable upon
the occurrence of any of the following events:
        (1) The real property securing the loan is sold.
        (2) All borrowers cease to occupy the home as a
    principal residence.
        (3) A fixed maturity date agreed to by the lender and
    the borrower is reached.
        (4) An event that is specified in the loan documents
    and that jeopardizes the lender's security occurs.
    (e) No reverse mortgage commitment may be made by a lender
unless the loan applicant attests, in writing, that the
applicant has received from the lender, at the time of initial
inquiry, a statement prepared by the Department on Aging
regarding the advisability and availability of independent
information and counseling services on reverse mortgages.
(Source: P.A. 87-488.)
 
    Section 10-30. The Illinois Savings and Loan Act of 1985 is
amended by changing Sections 1-10.30 and 5-2 as follows:
 
    (205 ILCS 105/1-10.30)  (from Ch. 17, par. 3301-10.30)
    Sec. 1-10.30. "Real property": the interests, benefits,
and rights inherent in the ownership of the physical real
estate. It is the rights with which the ownership of real
estate is endowed. "Real property" includes a manufactured home
as defined in subdivision (53) of Section 9-102 of the Uniform
Commercial Code that is real property as defined in Section
5-35 of the Conveyance and Encumbrance of Manufactured Homes as
Real Property and Severance Act. For purposes of this Act, the
term "Real Estate" is synonymous with "Real Property".
(Source: P.A. 84-543.)
 
    (205 ILCS 105/5-2)  (from Ch. 17, par. 3305-2)
    Sec. 5-2. Investment in loans. An association may loan
funds to members as follows:
    (a) On the security of withdrawable capital accounts, but
no such loan shall exceed the withdrawal value of the pledged
account;
    (b) On the security of real estate:
    (1) Of a value, determined in accordance with Section 5-12
of this Act, sufficient to provide good and ample security for
the loan;
    (2) With a fee simple title or a leasehold title of not
less duration than 10 years beyond the maturity of the loan;
    (3) With the title established by such evidence of title as
is consistent with sound lending practices in the locality;
    (4) With the security interest in such real estate
evidenced by an appropriate written instrument and the loan
evidenced by a note, bond or similar written instrument. A loan
on the security of the whole of the beneficial interest in a
land trust satisfies the requirements of this paragraph if the
title to the land is held by a corporate trustee and if the
real estate held in the land trust meets the other requirements
of this subsection; and
    (5) With a mortgage loan not to exceed 40 years;
    (c) For the purpose of repair, improvement,
rehabilitation, furnishing or equipment of real estate or any
other purpose;
    (d) For the purpose of financing or refinancing an existing
ownership interest in certificates of stock, certificates of
beneficial interest or other evidence of an ownership interest
in, and a proprietary lease from, a corporation, trust or
partnership formed for the purpose of the cooperative ownership
of real estate, secured by the assignment or transfer of such
certificates or other evidence of ownership of the borrower;
    (e) Through the purchase of loans which at the time of
purchase the association could make in accordance with this
Section and the by-laws;
    (f) Through the purchase of installment contracts for the
sale of real estate, and title thereto which is subject to such
contracts, but in each instance only if the association at the
time of purchase could make a mortgage loan of the same amount
and for the same length of time on the security of such real
estate;
    (g) Through loans guaranteed or insured, wholly or in part
by the United States or any of its instrumentalities, and
without regard to the limits in amount and terms otherwise
imposed by this Article;
    (h) Through secured or unsecured loans for business,
corporate, personal, family, or household purposes, or for
secured or unsecured loans for agricultural or commercial
purposes to the same extent that such agricultural or
commercial loans are authorized by federal law for any savings
and loan association organized under federal law and authorized
to do business in this State, except that loans to service
corporations shall not be subject to the limitations of this
paragraph;
    (i) For the purpose of manufactured mobile home financing
subject, however, to the regulation of the Commissioner; as
used in this Section, "manufactured home" means a manufactured
home as defined in subdivision (53) of Section 9-102 of the
Uniform Commercial Code;
    (j) Through loans to its members secured by the cash
surrender value of any life insurance policy or any collateral
which would be a legal investment if made by such association
pursuant to the terms of this Act; and
    (k) Any provision of this Act to the contrary
notwithstanding, any association may make any loan to its
members or investment which such association could make if it
were incorporated and operating as an association organized
under the laws of the United States.
(Source: P.A. 86-137.)
 
    Section 10-35. The Savings Bank Act is amended by changing
Sections 6002 and 6008 as follows:
 
    (205 ILCS 205/6002)  (from Ch. 17, par. 7306-2)
    Sec. 6002. Investment in loans.
    (a) Subject to the regulations of the Commissioner, a
savings bank may loan funds as follows:
    (1) On the security of deposit accounts, but no such loan
shall exceed the withdrawal value of the pledged account.
    (2) On the security of real estate:
        (A) of a value, determined in accordance with this Act,
    sufficient to provide good and ample security for the loan;
        (B) with a fee simple title or a leasehold title;
        (C) with the title established by evidence of title as
    is consistent with sound lending practices in the locality;
        (D) with the security interest in the real estate
    evidenced by an appropriate written instrument and the loan
    evidenced by a note, bond, or similar written instrument; a
    loan on the security of the whole of the beneficial
    interest in a land trust satisfies the requirements of this
    paragraph if the title to the land is held by a corporate
    trustee and if the real estate held in the land trust meets
    the other requirements of this subsection;
        (E) with a mortgage loan not to exceed 40 years.
    (3) For the purpose of repair, improvement,
rehabilitation, furnishing, or equipment of real estate.
    (4) For the purpose of financing or refinancing an existing
ownership interest in certificates of stock, certificates of
beneficial interest, other evidence of an ownership interest
in, or a proprietary lease from a corporation, trust, or
partnership formed for the purpose of the cooperative ownership
of real estate, secured by the assignment or transfer of
certificates or other evidence of ownership of the borrower.
    (5) Through the purchase of loans that, at the time of
purchase, the savings bank could make in accordance with this
Section and the bylaws.
    (6) Through the purchase of installment contracts for the
sale of real estate and title thereto that is subject to the
contracts, but in each instance only if the savings bank, at
the time of purchase, could make a mortgage loan of the same
amount and for the same length of time on the security of the
real estate.
    (7) Through loans guaranteed or insured, wholly or in part,
by the United States or any of its instrumentalities.
    (8) Subject to regulations adopted by the Commissioner,
through secured or unsecured loans for business, corporate,
commercial, or agricultural purposes; provided that the total
of all loans granted under this paragraph shall not exceed 15%
of the savings bank's total assets unless a greater amount is
authorized in writing by the Commissioner.
    (9) For the purpose of manufactured mobile home financing
subject, however, to the regulation of the Commissioner. As
used in this Section, "manufactured home" means a manufactured
home as defined in subdivision (53) of Section 9-102 of the
Uniform Commercial Code.
    (10) Through loans secured by the cash surrender value of
any life insurance policy or any collateral that would be a
legal investment under the terms of this Act if made by the
savings bank.
    (11) Any provision of this Act or any other law, except for
paragraph (18) of Section 6003, to the contrary
notwithstanding, but subject to the Financial Institutions
Insurance Sales Law and subject to the Commissioner's
regulations, any savings bank may make any loan or investment
or engage in any activity that it could make or engage in if it
were organized under State law as a savings and loan
association or under federal law as a federal savings and loan
association or federal savings bank.
    (12) A savings bank may issue letters of credit or other
similar arrangements only as provided for by regulation of the
Commissioner with regard to aggregate amounts permitted, take
out commitments for stand-by letters of credit, underlying
documentation and underwriting, legal limitations on loans of
the savings bank, control and subsidiary records, and other
procedures deemed necessary by the Commissioner.
    (13) For the purpose of automobile financing, subject to
the regulation of the Commissioner.
    (14) For the purpose of financing primary, secondary,
undergraduate, or postgraduate education.
    (15) Through revolving lines of credit on the security of a
first or junior lien on the borrower's personal residence,
based primarily on the borrower's equity, the proceeds of which
may be used for any purpose; those loans being commonly
referred to as home equity loans.
    (16) As secured or unsecured credit to cover the payment of
checks, drafts, or other funds transfer orders in excess of the
available balance of an account on which they are drawn,
subject to the regulations of the Commissioner.
    (b) For purposes of this Section, "real estate" includes a
manufactured home as defined in subdivision (53) of Section
9-102 of the Uniform Commercial Code which is real property as
defined in Section 5-35 of the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 90-301, eff. 8-1-97; 91-97, eff. 7-9-99.)
 
    (205 ILCS 205/6008)  (from Ch. 17, par. 7306-8)
    Sec. 6008. Purchase of real estate at forced sale. A
savings bank may purchase at any sheriff's or other judicial
sale, either public or private, any real estate upon which the
savings bank has any mortgage, lien or other encumbrance, or in
which the savings bank has any other interest. The savings bank
thereafter may repair, insure, improve, sell, convey, lease,
preserve, mortgage, exchange, or otherwise dispose of real
estate so acquired in the best interests of the savings bank.
For purposes of this Section, "real estate" includes a
manufactured home as defined in subdivision (53) of Section
9-102 of the Uniform Commercial Code which is real property as
defined in Section 5-35 of the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 86-1213.)
 
    Section 10-40. The Illinois Credit Union Act is amended by
changing Sections 46 and 46.1 as follows:
 
    (205 ILCS 305/46)  (from Ch. 17, par. 4447)
    Sec. 46. Loans and interest rate.
    (1) A credit union may make loans to its members for such
purpose and upon such security and terms, including rates of
interest, as the credit committee, credit manager, or loan
officer approves. Notwithstanding the provisions of any other
law in connection with extensions of credit, a credit union may
elect to contract for and receive interest and fees and other
charges for extensions of credit subject only to the provisions
of this Act and rules promulgated under this Act, except that
extensions of credit secured by residential real estate shall
be subject to the laws applicable thereto. The rates of
interest to be charged on loans to members shall be set by the
board of directors of each individual credit union in
accordance with Section 30 of this Act and such rates may be
less than, but may not exceed, the maximum rate set forth in
this Section. A borrower may repay his loan prior to maturity,
in whole or in part, without penalty. The credit contract may
provide for the payment by the member and receipt by the credit
union of all costs and disbursements, including reasonable
attorney's fees and collection agency charges, incurred by the
credit union to collect or enforce the debt in the event of a
delinquency by the member, or in the event of a breach of any
obligation of the member under the credit contract. A
contingency or hourly arrangement established under an
agreement entered into by a credit union with an attorney or
collection agency to collect a loan of a member in default
shall be presumed prima facie reasonable.
    (2) Credit unions may make loans based upon the security of
any interest or equity in real estate, subject to rules and
regulations promulgated by the Secretary. In any contract or
loan which is secured by a mortgage, deed of trust, or
conveyance in the nature of a mortgage, on residential real
estate, the interest which is computed, calculated, charged, or
collected pursuant to such contract or loan, or pursuant to any
regulation or rule promulgated pursuant to this Act, may not be
computed, calculated, charged or collected for any period of
time occurring after the date on which the total indebtedness,
with the exception of late payment penalties, is paid in full.
    For purposes of this subsection (2) of this Section 46, a
prepayment shall mean the payment of the total indebtedness,
with the exception of late payment penalties if incurred or
charged, on any date before the date specified in the contract
or loan agreement on which the total indebtedness shall be paid
in full, or before the date on which all payments, if timely
made, shall have been made. In the event of a prepayment of the
indebtedness which is made on a date after the date on which
interest on the indebtedness was last computed, calculated,
charged, or collected but before the next date on which
interest on the indebtedness was to be calculated, computed,
charged, or collected, the lender may calculate, charge and
collect interest on the indebtedness for the period which
elapsed between the date on which the prepayment is made and
the date on which interest on the indebtedness was last
computed, calculated, charged or collected at a rate equal to
1/360 of the annual rate for each day which so elapsed, which
rate shall be applied to the indebtedness outstanding as of the
date of prepayment. The lender shall refund to the borrower any
interest charged or collected which exceeds that which the
lender may charge or collect pursuant to the preceding
sentence. The provisions of this amendatory Act of 1985 shall
apply only to contracts or loans entered into on or after the
effective date of this amendatory Act.
    (3) Notwithstanding any other provision of this Act, a
credit union authorized under this Act to make loans secured by
an interest or equity in real estate may engage in making
"reverse mortgage" loans to persons for the purpose of making
home improvements or repairs, paying insurance premiums or
paying real estate taxes on the homestead properties of such
persons. If made, such loans shall be made on such terms and
conditions as the credit union shall determine and as shall be
consistent with the provisions of this Section and such rules
and regulations as the Secretary shall promulgate hereunder.
For purposes of this Section, a "reverse mortgage" loan shall
be a loan extended on the basis of existing equity in homestead
property and secured by a mortgage on such property. Such loans
shall be repaid upon the sale of the property or upon the death
of the owner or, if the property is in joint tenancy, upon the
death of the last surviving joint tenant who had such an
interest in the property at the time the loan was initiated,
provided, however, that the credit union and its member may by
mutual agreement, establish other repayment terms. A credit
union, in making a "reverse mortgage" loan, may add deferred
interest to principal or otherwise provide for the charging of
interest or premiums on such deferred interest. "Homestead"
property, for purposes of this Section, means the domicile and
contiguous real estate owned and occupied by the mortgagor.
    (4) Notwithstanding any other provisions of this Act, a
credit union authorized under this Act to make loans secured by
an interest or equity in real property may engage in making
revolving credit loans secured by mortgages or deeds of trust
on such real property or by security assignments of beneficial
interests in land trusts.
    For purposes of this Section, "revolving credit" has the
meaning defined in Section 4.1 of the Interest Act.
    Any mortgage or deed of trust given to secure a revolving
credit loan may, and when so expressed therein shall, secure
not only the existing indebtedness but also such future
advances, whether such advances are obligatory or to be made at
the option of the lender, or otherwise, as are made within
twenty years from the date thereof, to the same extent as if
such future advances were made on the date of the execution of
such mortgage or deed of trust, although there may be no
advance made at the time of execution of such mortgage or other
instrument, and although there may be no indebtedness
outstanding at the time any advance is made. The lien of such
mortgage or deed of trust, as to third persons without actual
notice thereof, shall be valid as to all such indebtedness and
future advances form the time said mortgage or deed of trust is
filed for record in the office of the recorder of deeds or the
registrar of titles of the county where the real property
described therein is located. The total amount of indebtedness
that may be so secured may increase or decrease from time to
time, but the total unpaid balance so secured at any one time
shall not exceed a maximum principal amount which must be
specified in such mortgage or deed of trust, plus interest
thereon, and any disbursements made for the payment of taxes,
special assessments, or insurance on said real property, with
interest on such disbursements.
    Any such mortgage or deed of trust shall be valid and have
priority over all subsequent liens and encumbrances, including
statutory liens, except taxes and assessments levied on said
real property.
    (4-5) For purposes of this Section, "real estate" and "real
property" include a manufactured home as defined in subdivision
(53) of Section 9-102 of the Uniform Commercial Code which is
real property as defined in Section 5-35 of the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act.
    (5) Compliance with federal or Illinois preemptive laws or
regulations governing loans made by a credit union chartered
under this Act shall constitute compliance with this Act.
    (6) Credit unions may make residential real estate mortgage
loans on terms and conditions established by the United States
Department of Agriculture through its Rural Development
Housing and Community Facilities Program. The portion of any
loan in excess of the appraised value of the real estate shall
be allocable only to the guarantee fee required under the
program.
(Source: P.A. 96-141, eff. 8-7-09; 97-133, eff. 1-1-12.)
 
    (205 ILCS 305/46.1)  (from Ch. 17, par. 4447.1)
    Sec. 46.1. Non-recourse reverse mortgage loans. Any credit
union authorized under this Act to make loans secured by an
interest or equity in real estate may make non-recourse reverse
mortgage loans as provided in Section 6.1 of the Illinois
Banking Act.
    For purposes of this Section, "real estate" includes a
manufactured home as defined in subdivision (53) of Section
9-102 of the Uniform Commercial Code that is real property as
defined in Section 5-35 of the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 87-488.)
 
    Section 10-45. The Residential Mortgage License Act of 1987
is amended by changing Section 1-4 as follows:
 
    (205 ILCS 635/1-4)
    Sec. 1-4. Definitions.
    (a) "Residential real property" or "residential real
estate" shall mean any real property located in Illinois, upon
which is constructed or intended to be constructed a dwelling.
Those terms include a manufactured home as defined in
subdivision (53) of Section 9-102 of the Uniform Commercial
Code which is real property as defined in Section 5-35 of the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act.
    (b) "Making a residential mortgage loan" or "funding a
residential mortgage loan" shall mean for compensation or gain,
either directly or indirectly, advancing funds or making a
commitment to advance funds to a loan applicant for a
residential mortgage loan.
    (c) "Soliciting, processing, placing, or negotiating a
residential mortgage loan" shall mean for compensation or gain,
either directly or indirectly, accepting or offering to accept
an application for a residential mortgage loan, assisting or
offering to assist in the processing of an application for a
residential mortgage loan on behalf of a borrower, or
negotiating or offering to negotiate the terms or conditions of
a residential mortgage loan with a lender on behalf of a
borrower including, but not limited to, the submission of
credit packages for the approval of lenders, the preparation of
residential mortgage loan closing documents, including a
closing in the name of a broker.
    (d) "Exempt person or entity" shall mean the following:
        (1) (i) Any banking organization or foreign banking
    corporation licensed by the Illinois Commissioner of Banks
    and Real Estate or the United States Comptroller of the
    Currency to transact business in this State; (ii) any
    national bank, federally chartered savings and loan
    association, federal savings bank, federal credit union;
    (iii) any pension trust, bank trust, or bank trust company;
    (iv) any bank, savings and loan association, savings bank,
    or credit union organized under the laws of this or any
    other state; (v) any Illinois Consumer Installment Loan Act
    licensee; (vi) any insurance company authorized to
    transact business in this State; (vii) any entity engaged
    solely in commercial mortgage lending; (viii) any service
    corporation of a savings and loan association or savings
    bank organized under the laws of this State or the service
    corporation of a federally chartered savings and loan
    association or savings bank having its principal place of
    business in this State, other than a service corporation
    licensed or entitled to reciprocity under the Real Estate
    License Act of 2000; or (ix) any first tier subsidiary of a
    bank, the charter of which is issued under the Illinois
    Banking Act by the Illinois Commissioner of Banks and Real
    Estate, or the first tier subsidiary of a bank chartered by
    the United States Comptroller of the Currency and that has
    its principal place of business in this State, provided
    that the first tier subsidiary is regularly examined by the
    Illinois Commissioner of Banks and Real Estate or the
    Comptroller of the Currency, or a consumer compliance
    examination is regularly conducted by the Federal Reserve
    Board.
        (1.5) Any employee of a person or entity mentioned in
    item (1) of this subsection, when acting for such person or
    entity, or any registered mortgage loan originator when
    acting for an entity described in subsection (tt) of this
    Section.
        (1.8) Any person or entity that does not originate
    mortgage loans in the ordinary course of business, but
    makes or acquires residential mortgage loans with his or
    her own funds for his or her or its own investment without
    intent to make, acquire, or resell more than 3 residential
    mortgage loans in any one calendar year.
        (2) (Blank).
        (3) Any person employed by a licensee to assist in the
    performance of the residential mortgage licensee's
    activities regulated by this Act who is compensated in any
    manner by only one licensee.
        (4) (Blank).
        (5) Any individual, corporation, partnership, or other
    entity that originates, services, or brokers residential
    mortgage loans, as these activities are defined in this
    Act, and who or which receives no compensation for those
    activities, subject to the Commissioner's regulations and
    the federal Secure and Fair Enforcement for Mortgage
    Licensing Act of 2008 and the rules promulgated under that
    Act with regard to the nature and amount of compensation.
        (6) (Blank).
    (e) "Licensee" or "residential mortgage licensee" shall
mean a person, partnership, association, corporation, or any
other entity who or which is licensed pursuant to this Act to
engage in the activities regulated by this Act.
    (f) "Mortgage loan" "residential mortgage loan" or "home
mortgage loan" shall mean any loan primarily for personal,
family, or household use that is secured by a mortgage, deed of
trust, or other equivalent consensual security interest on a
dwelling as defined in Section 103(v) of the federal Truth in
Lending Act, or residential real estate upon which is
constructed or intended to be constructed a dwelling.
    (g) "Lender" shall mean any person, partnership,
association, corporation, or any other entity who either lends
or invests money in residential mortgage loans.
    (h) "Ultimate equitable owner" shall mean a person who,
directly or indirectly, owns or controls an ownership interest
in a corporation, foreign corporation, alien business
organization, trust, or any other form of business organization
regardless of whether the person owns or controls the ownership
interest through one or more persons or one or more proxies,
powers of attorney, nominees, corporations, associations,
partnerships, trusts, joint stock companies, or other entities
or devices, or any combination thereof.
    (i) "Residential mortgage financing transaction" shall
mean the negotiation, acquisition, sale, or arrangement for or
the offer to negotiate, acquire, sell, or arrange for, a
residential mortgage loan or residential mortgage loan
commitment.
    (j) "Personal residence address" shall mean a street
address and shall not include a post office box number.
    (k) "Residential mortgage loan commitment" shall mean a
contract for residential mortgage loan financing.
    (l) "Party to a residential mortgage financing
transaction" shall mean a borrower, lender, or loan broker in a
residential mortgage financing transaction.
    (m) "Payments" shall mean payment of all or any of the
following: principal, interest and escrow reserves for taxes,
insurance and other related reserves, and reimbursement for
lender advances.
    (n) "Commissioner" shall mean the Commissioner of Banks and
Real Estate, except that, beginning on April 6, 2009 (the
effective date of Public Act 95-1047), all references in this
Act to the Commissioner of Banks and Real Estate are deemed, in
appropriate contexts, to be references to the Secretary of
Financial and Professional Regulation, or his or her designee,
including the Director of the Division of Banking of the
Department of Financial and Professional Regulation.
    (n-1) "Director" shall mean the Director of the Division of
Banking of the Department of Financial and Professional
Regulation, except that, beginning on July 31, 2009 (the
effective date of Public Act 96-112), all references in this
Act to the Director are deemed, in appropriate contexts, to be
the Secretary of Financial and Professional Regulation, or his
or her designee, including the Director of the Division of
Banking of the Department of Financial and Professional
Regulation.
    (o) "Loan brokering", "brokering", or "brokerage service"
shall mean the act of helping to obtain from another entity,
for a borrower, a loan secured by residential real estate
situated in Illinois or assisting a borrower in obtaining a
loan secured by residential real estate situated in Illinois in
return for consideration to be paid by either the borrower or
the lender including, but not limited to, contracting for the
delivery of residential mortgage loans to a third party lender
and soliciting, processing, placing, or negotiating
residential mortgage loans.
    (p) "Loan broker" or "broker" shall mean a person,
partnership, association, corporation, or limited liability
company, other than those persons, partnerships, associations,
corporations, or limited liability companies exempted from
licensing pursuant to Section 1-4, subsection (d), of this Act,
who performs the activities described in subsections (c), (o),
and (yy) of this Section.
    (q) "Servicing" shall mean the collection or remittance for
or the right or obligation to collect or remit for any lender,
noteowner, noteholder, or for a licensee's own account, of
payments, interests, principal, and trust items such as hazard
insurance and taxes on a residential mortgage loan in
accordance with the terms of the residential mortgage loan; and
includes loan payment follow-up, delinquency loan follow-up,
loan analysis and any notifications to the borrower that are
necessary to enable the borrower to keep the loan current and
in good standing. "Servicing" includes management of
third-party entities acting on behalf of a residential mortgage
licensee for the collection of delinquent payments and the use
by such third-party entities of said licensee's servicing
records or information, including their use in foreclosure.
    (r) "Full service office" shall mean an office, provided by
the licensee and not subleased from the licensee's employees,
and staff in Illinois reasonably adequate to handle efficiently
communications, questions, and other matters relating to any
application for, or an existing home mortgage secured by
residential real estate situated in Illinois with respect to
which the licensee is brokering, funding originating,
purchasing, or servicing. The management and operation of each
full service office must include observance of good business
practices such as proper signage; adequate, organized, and
accurate books and records; ample phone lines, hours of
business, staff training and supervision, and provision for a
mechanism to resolve consumer inquiries, complaints, and
problems. The Commissioner shall issue regulations with regard
to these requirements and shall include an evaluation of
compliance with this Section in his or her periodic examination
of each licensee.
    (s) "Purchasing" shall mean the purchase of conventional or
government-insured mortgage loans secured by residential real
estate situated in Illinois from either the lender or from the
secondary market.
    (t) "Borrower" shall mean the person or persons who seek
the services of a loan broker, originator, or lender.
    (u) "Originating" shall mean the issuing of commitments for
and funding of residential mortgage loans.
    (v) "Loan brokerage agreement" shall mean a written
agreement in which a broker or loan broker agrees to do either
of the following:
        (1) obtain a residential mortgage loan for the borrower
    or assist the borrower in obtaining a residential mortgage
    loan; or
        (2) consider making a residential mortgage loan to the
    borrower.
    (w) "Advertisement" shall mean the attempt by publication,
dissemination, or circulation to induce, directly or
indirectly, any person to enter into a residential mortgage
loan agreement or residential mortgage loan brokerage
agreement relative to a mortgage secured by residential real
estate situated in Illinois.
    (x) "Residential Mortgage Board" shall mean the
Residential Mortgage Board created in Section 1-5 of this Act.
    (y) "Government-insured mortgage loan" shall mean any
mortgage loan made on the security of residential real estate
insured by the Department of Housing and Urban Development or
Farmers Home Loan Administration, or guaranteed by the Veterans
Administration.
    (z) "Annual audit" shall mean a certified audit of the
licensee's books and records and systems of internal control
performed by a certified public accountant in accordance with
generally accepted accounting principles and generally
accepted auditing standards.
    (aa) "Financial institution" shall mean a savings and loan
association, savings bank, credit union, or a bank organized
under the laws of Illinois or a savings and loan association,
savings bank, credit union or a bank organized under the laws
of the United States and headquartered in Illinois.
    (bb) "Escrow agent" shall mean a third party, individual or
entity charged with the fiduciary obligation for holding escrow
funds on a residential mortgage loan pending final payout of
those funds in accordance with the terms of the residential
mortgage loan.
    (cc) "Net worth" shall have the meaning ascribed thereto in
Section 3-5 of this Act.
    (dd) "Affiliate" shall mean:
        (1) any entity that directly controls or is controlled
    by the licensee and any other company that is directly
    affecting activities regulated by this Act that is
    controlled by the company that controls the licensee;
        (2) any entity:
            (A) that is controlled, directly or indirectly, by
        a trust or otherwise, by or for the benefit of
        shareholders who beneficially or otherwise control,
        directly or indirectly, by trust or otherwise, the
        licensee or any company that controls the licensee; or
            (B) a majority of the directors or trustees of
        which constitute a majority of the persons holding any
        such office with the licensee or any company that
        controls the licensee;
        (3) any company, including a real estate investment
    trust, that is sponsored and advised on a contractual basis
    by the licensee or any subsidiary or affiliate of the
    licensee.
    The Commissioner may define by rule and regulation any
terms used in this Act for the efficient and clear
administration of this Act.
    (ee) "First tier subsidiary" shall be defined by regulation
incorporating the comparable definitions used by the Office of
the Comptroller of the Currency and the Illinois Commissioner
of Banks and Real Estate.
    (ff) "Gross delinquency rate" means the quotient
determined by dividing (1) the sum of (i) the number of
government-insured residential mortgage loans funded or
purchased by a licensee in the preceding calendar year that are
delinquent and (ii) the number of conventional residential
mortgage loans funded or purchased by the licensee in the
preceding calendar year that are delinquent by (2) the sum of
(i) the number of government-insured residential mortgage
loans funded or purchased by the licensee in the preceding
calendar year and (ii) the number of conventional residential
mortgage loans funded or purchased by the licensee in the
preceding calendar year.
    (gg) "Delinquency rate factor" means the factor set by rule
of the Commissioner that is multiplied by the average gross
delinquency rate of licensees, determined annually for the
immediately preceding calendar year, for the purpose of
determining which licensees shall be examined by the
Commissioner pursuant to subsection (b) of Section 4-8 of this
Act.
    (hh) "Loan originator" means any natural person who, for
compensation or in the expectation of compensation, either
directly or indirectly makes, offers to make, solicits, places,
or negotiates a residential mortgage loan. This definition
applies only to Section 7-1 of this Act.
    (ii) "Confidential supervisory information" means any
report of examination, visitation, or investigation prepared
by the Commissioner under this Act, any report of examination
visitation, or investigation prepared by the state regulatory
authority of another state that examines a licensee, any
document or record prepared or obtained in connection with or
relating to any examination, visitation, or investigation, and
any record prepared or obtained by the Commissioner to the
extent that the record summarizes or contains information
derived from any report, document, or record described in this
subsection. "Confidential supervisory information" does not
include any information or record routinely prepared by a
licensee and maintained in the ordinary course of business or
any information or record that is required to be made publicly
available pursuant to State or federal law or rule.
    (jj) "Mortgage loan originator" means an individual who for
compensation or gain or in the expectation of compensation or
gain:
        (i) takes a residential mortgage loan application; or
        (ii) offers or negotiates terms of a residential
    mortgage loan.
    "Mortgage loan originator" includes an individual engaged
in loan modification activities as defined in subsection (yy)
of this Section. A mortgage loan originator engaged in loan
modification activities shall report those activities to the
Department of Financial and Professional Regulation in the
manner provided by the Department; however, the Department
shall not impose a fee for reporting, nor require any
additional qualifications to engage in those activities beyond
those provided pursuant to this Act for mortgage loan
originators.
    "Mortgage loan originator" does not include an individual
engaged solely as a loan processor or underwriter except as
otherwise provided in subsection (d) of Section 7-1A of this
Act.
    "Mortgage loan originator" does not include a person or
entity that only performs real estate brokerage activities and
is licensed in accordance with the Real Estate License Act of
2000, unless the person or entity is compensated by a lender, a
mortgage broker, or other mortgage loan originator, or by any
agent of that lender, mortgage broker, or other mortgage loan
originator.
    "Mortgage loan originator" does not include a person or
entity solely involved in extensions of credit relating to
timeshare plans, as that term is defined in Section 101(53D) of
Title 11, United States Code.
    (kk) "Depository institution" has the same meaning as in
Section 3 of the Federal Deposit Insurance Act, and includes
any credit union.
    (ll) "Dwelling" means a residential structure or mobile
home which contains one to 4 family housing units, or
individual units of condominiums or cooperatives.
    (mm) "Immediate family member" means a spouse, child,
sibling, parent, grandparent, or grandchild, and includes
step-parents, step-children, step-siblings, or adoptive
relationships.
    (nn) "Individual" means a natural person.
    (oo) "Loan processor or underwriter" means an individual
who performs clerical or support duties as an employee at the
direction of and subject to the supervision and instruction of
a person licensed, or exempt from licensing, under this Act.
"Clerical or support duties" includes subsequent to the receipt
of an application:
        (i) the receipt, collection, distribution, and
    analysis of information common for the processing or
    underwriting of a residential mortgage loan; and
        (ii) communicating with a consumer to obtain the
    information necessary for the processing or underwriting
    of a loan, to the extent that the communication does not
    include offering or negotiating loan rates or terms, or
    counseling consumers about residential mortgage loan rates
    or terms. An individual engaging solely in loan processor
    or underwriter activities shall not represent to the
    public, through advertising or other means of
    communicating or providing information, including the use
    of business cards, stationery, brochures, signs, rate
    lists, or other promotional items, that the individual can
    or will perform any of the activities of a mortgage loan
    originator.
    (pp) "Nationwide Mortgage Licensing System and Registry"
means a mortgage licensing system developed and maintained by
the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators for the
licensing and registration of licensed mortgage loan
originators.
    (qq) "Nontraditional mortgage product" means any mortgage
product other than a 30-year fixed rate mortgage.
    (rr) "Person" means a natural person, corporation,
company, limited liability company, partnership, or
association.
    (ss) "Real estate brokerage activity" means any activity
that involves offering or providing real estate brokerage
services to the public, including:
        (1) acting as a real estate agent or real estate broker
    for a buyer, seller, lessor, or lessee of real property;
        (2) bringing together parties interested in the sale,
    purchase, lease, rental, or exchange of real property;
        (3) negotiating, on behalf of any party, any portion of
    a contract relating to the sale, purchase, lease, rental,
    or exchange of real property, other than in connection with
    providing financing with respect to any such transaction;
        (4) engaging in any activity for which a person engaged
    in the activity is required to be registered or licensed as
    a real estate agent or real estate broker under any
    applicable law; or
        (5) offering to engage in any activity, or act in any
    capacity, described in this subsection (ss).
    (tt) "Registered mortgage loan originator" means any
individual that:
        (1) meets the definition of mortgage loan originator
    and is an employee of:
            (A) a depository institution;
            (B) a subsidiary that is:
                (i) owned and controlled by a depository
            institution; and
                (ii) regulated by a federal banking agency; or
            (C) an institution regulated by the Farm Credit
        Administration; and
        (2) is registered with, and maintains a unique
    identifier through, the Nationwide Mortgage Licensing
    System and Registry.
    (uu) "Unique identifier" means a number or other identifier
assigned by protocols established by the Nationwide Mortgage
Licensing System and Registry.
    (vv) "Residential mortgage license" means a license issued
pursuant to Section 1-3, 2-2, or 2-6 of this Act.
    (ww) "Mortgage loan originator license" means a license
issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act.
    (xx) "Secretary" means the Secretary of the Department of
Financial and Professional Regulation, or a person authorized
by the Secretary or by this Act to act in the Secretary's
stead.
    (yy) "Loan modification" means, for compensation or gain,
either directly or indirectly offering or negotiating on behalf
of a borrower or homeowner to adjust the terms of a residential
mortgage loan in a manner not provided for in the original or
previously modified mortgage loan.
    (zz) "Short sale facilitation" means, for compensation or
gain, either directly or indirectly offering or negotiating on
behalf of a borrower or homeowner to facilitate the sale of
residential real estate subject to one or more residential
mortgage loans or debts constituting liens on the property in
which the proceeds from selling the residential real estate
will fall short of the amount owed and the lien holders are
contacted to agree to release their lien on the residential
real estate and accept less than the full amount owed on the
debt.
(Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10;
96-1216, eff. 1-1-11; 97-143, eff. 7-14-11; 97-891, eff.
8-3-12.)
 
    Section 10-50. The Mobile Home Park Act is amended by
changing Section 2.1 as follows:
 
    (210 ILCS 115/2.1)  (from Ch. 111 1/2, par. 712.1)
    Sec. 2.1. "Manufactured home" means a factory-assembled,
completely integrated structure designed for permanent
habitation, with a permanent chassis, and so constructed as to
permit its transport, on wheels temporarily or permanently
attached to its frame, and is a movable or portable unit that
is (i) 8 body feet or more in width, (ii) 40 body feet or more
in length, and (iii) 320 or more square feet, constructed to be
towed on its own chassis (comprised of frame and wheels) from
the place of its construction to the location, or subsequent
locations, at which it is installed and set up according to the
manufacturer's instructions and connected to utilities for
year-round occupancy for use as a permanent habitation, and
designed and situated so as to permit its occupancy as a
dwelling place for one or more persons, and specifically
includes a "manufactured home" as defined in subdivision (53)
of Section 9-102 of the Uniform Commercial Code. The term shall
include units containing parts that may be folded, collapsed,
or telescoped when being towed and that may be expected to
provide additional cubic capacity, and that are designed to be
joined into one integral unit capable of being separated again
into the components for repeated towing. The term excludes
campers and recreational vehicles. The term "mobile home" shall
not include modular homes and their support systems. The words
"mobile home" and "manufactured home" are synonymous for the
purposes of this Act.
(Source: P.A. 96-1477, eff. 1-1-11.)
 
    Section 10-55. The Abandoned Mobile Home Act is amended by
changing Section 10 as follows:
 
    (210 ILCS 117/10)
    Sec. 10. Definitions. As used in this Act:
    "Manufactured home" means a factory-assembled, completely
integrated structure designed for permanent habitation, with a
permanent chassis, and so constructed as to permit its
transport, on wheels temporarily or permanently attached to its
frame, and is a movable or portable unit that is (i) 8 body
feet or more in width, (ii) 40 body feet or more in length, and
(iii) 320 or more square feet, constructed to be towed on its
own chassis (comprised of frame and wheels) from the place of
its construction to the location, or subsequent locations, at
which it is installed and set up according to the
manufacturer's instructions and connected to utilities for
year-round occupancy for use as a permanent habitation, and
designed and situated so as to permit its occupancy as a
dwelling place for one or more persons, and specifically
includes a "manufactured home" as defined in subdivision (53)
of Section 9-102 of the Uniform Commercial Code. The term shall
include units containing parts that may be folded, collapsed,
or telescoped when being towed and that may be expected to
provide additional cubic capacity, and that are designed to be
joined into one integral unit capable of being separated again
into the components for repeated towing. The term excludes
campers and recreational vehicles. The words "mobile home" and
"manufactured home" are synonymous for the purposes of this
Act.
    "Abandoned mobile home" means a mobile home located inside
a mobile home park that has no owner currently residing in the
mobile home or authorized tenant of the owner currently
residing in the mobile home to the best knowledge of the
municipality; has had its electricity, natural gas, sewer, and
water payments declared delinquent by the utility companies
that are providing such services; and for which the Mobile Home
Privilege Tax, imposed under the Mobile Home Local Services Tax
Act, is delinquent for at least 3 months. A mobile home
abandoned outside a mobile home park must be treated like other
real property for condemnation purposes.
    "Municipality" means any city, village, incorporated town,
or its duly authorized agent. If an abandoned mobile home is
located in an unincorporated area, the county where the mobile
home is located shall have all powers granted to a municipality
under this Act.
(Source: P.A. 96-1477, eff. 1-1-11.)
 
    Section 10-60. The Illinois Manufactured Housing and
Mobile Home Safety Act is amended by changing Section 2 as
follows:
 
    (430 ILCS 115/2)  (from Ch. 67 1/2, par. 502)
    Sec. 2. Unless clearly indicated otherwise by the context,
the following words and terms when used in this Act, for the
purpose of this Act, shall have the following meanings:
    (a) "Manufactured home" means a manufactured home as
defined in subdivision (53) of Section 9-102 of the Uniform
Commercial Code. "Mobile home" means a factory-assembled,
completely integrated structure, constructed on or before June
30, 1976, designed for permanent habitation, with a permanent
chassis, and so constructed as to permit its transport, on
wheels temporarily or permanently attached to its frame, that
is a movable or portable unit that is constructed to be towed
on its own chassis (comprised of frame and wheels) from the
place of its construction to the location, or subsequent
locations, at which it is connected to utilities for year-round
occupancy for use as a permanent habitation, and designed and
situated so as to permit its occupancy as a dwelling place for
one or more persons. a factory-assembled, completely
integrated structure designed for permanent habitation, with a
permanent chassis, and so constructed as to permit its
transport, on wheels temporarily or permanently attached to its
frame, and is a movable or portable unit that is (i) 8 body
feet or more in width, (ii) 40 body feet or more in length, and
(iii) 320 or more square feet, constructed to be towed on its
own chassis (comprised of frame and wheels) from the place of
its construction to the location, or subsequent locations, at
which it is installed and set up according to the
manufacturer's instructions and connected to utilities for
year-round occupancy for use as a permanent habitation, and
designed and situated so as to permit its occupancy as a
dwelling place for one or more persons. The terms "manufactured
home" and "mobile home" term shall include units otherwise
meeting their respective definitions containing parts that may
be folded, collapsed, or telescoped when being towed and that
may be expected to provide additional cubic capacity, and that
are designed to be joined into one integral unit capable of
being separated again into the components for repeated towing.
The terms "mobile home" and "manufactured home" exclude term
excludes campers and recreational vehicles. The terms "mobile
home" and "manufactured home" do not include modular homes or
manufactured housing units.
    (b) "Person" means a person, partnership, corporation, or
other legal entity.
    (c) "Manufacturer" means any person who manufactures
mobile homes or manufactured housing at the place or places,
either on or away from the building site, at which machinery,
equipment and other capital goods are assembled and operated
for the purpose of making, fabricating, forming or assembling
mobile homes or manufactured housing.
    (d) "Department" means the Department of Public Health.
    (e) "Director" means the Director of the Department of
Public Health.
    (f) "Dealer" means any person, other than a manufacturer,
as defined in this Act, who sells 3 or more mobile homes or
manufactured housing units in any consecutive 12-month period.
    (g) "Codes" means the safety codes for manufactured housing
and mobile homes promulgated by the Department. The Codes shall
contain the standards and requirements for manufactured
housing and mobile homes so that adequate performance for the
intended use is made the test of acceptability. The Code of
Standards shall permit the use of new and used technology,
techniques, methods and materials, for both manufactured
housing and mobile homes, consistent with recognized and
accepted codes and standards developed by the International
Code Council (ICC) or by the organizations that formed the ICC
in 1994: Building Officials and Code Administrators, the
International Conference of Building Officials, the Southern
Building Codes Congress International, the National Fire
Protection Association, the International Association of
Plumbing and Mechanical Officials, the American National
Standards Institute, the Illinois State Plumbing Code, and the
United States Department of Housing and Urban Development,
hereinafter referred to as "HUD", applying to manufactured
housing and mobile homes installed and set up according to the
manufacturer's instructions. A copy of said safety codes,
including said revisions thereof is on file with the
Department.
    (h) "Seal" means a device or insignia issued by the
Department to be displayed on the exterior of the mobile home
or the interior of a manufactured housing unit or modular home
to evidence compliance with the applicable safety code.
    (i) "Modular home" means a building assembly or system of
building sub-assemblies, designed for habitation as a dwelling
for one or more persons, including the necessary electrical,
plumbing, heating, ventilating and other service systems,
which is of closed or open construction and which is made or
assembled by a manufacturer, on or off the building site, for
installation, or assembly and installation, on the building
site, installed and set up according to the manufacturer's
instructions on an approved foundation and support system. The
construction of modular dwelling units located in Illinois is
regulated by the Illinois Department of Public Health.
    (j) "Closed construction" is any building, component,
assembly or system manufactured in such a manner that all
portions cannot readily be inspected at the installation site
without disassembly, damage to, or destruction thereof.
    (k) "Open construction" is any building, component,
assembly or system manufactured in such a manner that all
portions can be readily inspected at the installation site
without disassembly, damage to, or destruction thereof.
    (l) "Approved foundation and support system" means, for a
modular home or modular dwelling unit, a closed perimeter
formation consisting of materials such as concrete, mortared
concrete block, or mortared brick extending into the ground
below the frost line which shall include, but not necessarily
be limited to, cellars, basements, or crawl spaces, and does
include the use of piers supporting the marriage wall of the
home that extend below the frost line.
    (m) "Code compliance certificate" means the certificate
provided by the manufacturer to the Department that warrants
that the manufactured housing unit or mobile home complies with
the applicable code.
    (n) "Manufactured housing", "manufactured housing unit",
"modular dwelling", and "modular home" shall not be confused
with "manufactured home" or "mobile home".
(Source: P.A. 96-1477, eff. 1-1-11.)
 
    Section 10-65. The Manufactured Home Quality Assurance Act
is amended by changing Section 10 as follows:
 
    (430 ILCS 117/10)
    Sec. 10. Definitions. In this Act:
    "Department" means the Illinois Department of Public
Health.
    "Licensed installer" means a person who has successfully
completed a manufactured home installation course approved by
the Department and paid the required fees.
    "Manufactured home" means a "manufactured home", as
defined in subdivision (53) of Section 9-102 of the Uniform
Commercial Code. "Mobile home" means a factory-assembled,
completely integrated structure, constructed on or before June
30, 1976, designed for permanent habitation, with a permanent
chassis, and so constructed as to permit its transport, on
wheels temporarily or permanently attached to its frame, that
is a movable or portable unit that is constructed to be towed
on its own chassis (comprised of frame and wheels) from the
place of its construction to the location, or subsequent
locations, at which it is connected to utilities for year-round
occupancy for use as a permanent habitation, and designed and
situated so as to permit its occupancy as a dwelling place for
one or more persons. a factory-assembled, completely
integrated structure designed for permanent habitation, with a
permanent chassis, and so constructed as to permit its
transport, on wheels temporarily or permanently attached to its
frame, and is a movable or portable unit that is (i) 8 body
feet or more in width, (ii) 40 body feet or more in length, and
(iii) 320 or more square feet, constructed to be towed on its
own chassis (comprised of frame and wheels) from the place of
its construction to the location, or subsequent locations, at
which it is installed and set up according to the
manufacturer's instructions and connected to utilities for
year-round occupancy for use as a permanent habitation, and
designed and situated so as to permit its occupancy as a
dwelling place for one or more persons. The terms "manufactured
home" and "mobile home" term shall include units otherwise
meeting their respective definitions containing parts that may
be folded, collapsed, or telescoped when being towed and that
may be expected to provide additional cubic capacity, and that
are designed to be joined into one integral unit capable of
being separated again into the components for repeated towing.
The terms "manufactured home" and "mobile home" exclude term
excludes campers and recreational vehicles.
    "Manufacturer" means a manufacturer of a manufactured
home, whether the manufacturer is located within or outside of
the State of Illinois.
    "Mobile home" or "manufactured home" does not include a
modular home.
    "Mobile home park" means a tract of land or 2 contiguous
tracts of land that contain sites with the necessary utilities
for 5 or more mobile homes or manufactured homes. A mobile home
park may be operated either free of charge or for revenue
purposes.
(Source: P.A. 96-1477, eff. 1-1-11.)
 
    Section 10-70. The Illinois Vehicle Code is amended by
changing Sections 3-100, 3-102, 3-103, 3-104, 3-106, 3-107,
3-109, 3-110, 3-116, 3-202, 3-205, 3-207, and 3-208 and by
adding Sections 1-144.03, 3-116.1, 3-116.2, and 3-116.3 as
follows:
 
    (625 ILCS 5/1-144.03 new)
    Sec. 1-144.03. Mobile home or manufactured home. A mobile
home or manufactured home means a manufactured home as defined
in subdivision (53) of Section 9-102 of the Uniform Commercial
Code.
 
    (625 ILCS 5/3-100)  (from Ch. 95 1/2, par. 3-100)
    Sec. 3-100. Definitions. For the purposes of this Chapter,
the following words shall have the meanings ascribed to them:
    "Electronic" includes electrical, digital, magnetic,
optical, electromagnetic, or any other form of technology that
entails capabilities similar to these technologies.
    "Electronic record" means a record generated,
communicated, received, or stored by electronic means for use
in an information system or for transmission from one
information system to another.
    "Electronic signature" means a signature in electronic
form attached to or logically associated with an electronic
record.
    "Owner" means a person who holds legal document of
ownership of a vehicle, limited to a certificate of origin,
certificate of title, salvage certificate, or junking
certificate. However, in the event a vehicle is the subject of
an agreement for the conditional sale or lease thereof with the
right of purchase upon performance of the conditions stated in
the agreement and with an immediate right of possession vested
in the conditional vendee or lessee, or in the event a
mortgagor of such vehicle is entitled to possession, then such
conditional vendee or lessee or mortgagor shall be deemed the
owner for the purpose of this Chapter, except as provided under
paragraph (c) of Section 3-118.
    "Record" means information that is inscribed, stored, or
otherwise fixed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable
form.
    "Signature" or "signed" includes any symbol executed or
adopted, or any security procedure employed or adopted, using
electronic means or otherwise, by or on behalf of a person with
intent to authenticate a record.
    "Vehicle" means a vehicle as defined in Section 1-217 of
this Code. Unless otherwise specified, "vehicle" also means a
"manufactured home" as defined in Section 1-144.03 of this
Code.
(Source: P.A. 91-79, eff. 1-1-00; 91-357, eff. 7-29-99; 91-772,
eff. 1-1-01.)
 
    (625 ILCS 5/3-102)  (from Ch. 95 1/2, par. 3-102)
    Sec. 3-102. Exclusions.
    No certificate of title need be obtained for:
    1. A vehicle owned by the State of Illinois; or a vehicle
owned by the United States unless it is registered in this
State;
    2. A vehicle owned by a manufacturer or dealer and held for
sale, even though incidentally moved on the highway or used for
purposes of testing or demonstration, provided a dealer
reassignment area is still available on the manufacturer's
certificate of origin or the Illinois title; or a vehicle used
by a manufacturer solely for testing;
    3. A vehicle owned by a non-resident of this State and not
required by law to be registered in this State;
    4. A motor vehicle regularly engaged in the interstate
transportation of persons or property for which a currently
effective certificate of title has been issued in another
State;
    5. A vehicle moved solely by animal power;
    6. An implement of husbandry;
    7. Special mobile equipment;
    8. An apportionable trailer or an apportionable
semitrailer registered in the State prior to April 1, 1998.
    9. A manufactured home for which an affidavit of affixation
has been recorded pursuant to the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act unless
with respect to the same manufactured home there has been
recorded an affidavit of severance pursuant to that Act.
(Source: P.A. 91-441, eff. 1-1-00.)
 
    (625 ILCS 5/3-103)  (from Ch. 95 1/2, par. 3-103)
    Sec. 3-103. Optional certificate of title.
    (a) The owner of an implement of husbandry or special
mobile equipment may apply for and obtain a certificate of
title on it. All of the provisions of this chapter, except part
(e) of Section 3-104, are applicable to a certificate of title
so issued, except that a person who receives a transfer of an
interest in the vehicle without knowledge of the certificate of
title is not prejudiced by reason of the existence of the
certificate, and the perfection of a security interest under
this act is not effective until the lienholder has complied
with the provisions of applicable law which otherwise relate to
the perfection of security interests in personal property.
    An application for an optional certificate of title must be
accompanied by either an exemption determination from the
Department of Revenue showing that no tax imposed under the
"Use Tax Act" or the "Retailers' Occupation Tax Act" is owed by
anyone with respect to that vehicle or by a receipt from the
Department of Revenue showing that any tax so imposed has been
paid. No optional certificate of title shall be issued in the
absence of such a receipt or exemption determination.
    If the proof of payment or of nonliability is, after the
issuance of the optional certificate of title, found to be
invalid, the Secretary of State shall revoke the optional
certificate of title and require that it be returned to him.
    (b) The owner of a manufactured home which is affixed to a
permanent foundation and for which a certificate of title has
not previously been issued and surrendered for cancellation may
apply for a certificate of title, including, if applicable, a
certificate of title issued in accordance with subsection (b)
of Section 3-109, which shall be issued for the sole purpose of
(i) surrendering such certificate of title for cancellation in
accordance with Section 3-116.2 or (ii) satisfying the
requirements of subdivision (e)(4) of Section 9-334 of the
Uniform Commercial Code. The Secretary of State shall issue a
certificate of title, in accordance with this Chapter, upon
satisfaction of the application requirements of this Code.
(Source: P.A. 78-1165.)
 
    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)
    Sec. 3-104. Application for certificate of title.
    (a) The application for a certificate of title for a
vehicle in this State must be made by the owner to the
Secretary of State on the form prescribed and must contain:
        1. The name, Illinois residence and mail address of the
    owner;
        2. A description of the vehicle including, so far as
    the following data exists: Its make, year-model,
    identifying number, type of body, whether new or used, as
    to house trailers as defined in Section 1-128 of this Code,
    and as to manufactured homes as defined in Section 1-144.03
    of this Code, the square footage of the house trailer based
    upon the outside dimensions of the house trailer excluding
    the length of the tongue and hitch, and, as to vehicles of
    the second division, whether for-hire, not-for-hire, or
    both for-hire and not-for-hire;
        3. The date of purchase by applicant and, if
    applicable, the name and address of the person from whom
    the vehicle was acquired and the names and addresses of any
    lienholders in the order of their priority and signatures
    of owners;
        4. The current odometer reading at the time of transfer
    and that the stated odometer reading is one of the
    following: actual mileage, not the actual mileage or
    mileage is in excess of its mechanical limits; and
        5. Any further information the Secretary of State
    reasonably requires to identify the vehicle and to enable
    him to determine whether the owner is entitled to a
    certificate of title and the existence or nonexistence of
    security interests in the vehicle.
    (a-5) The Secretary of State shall designate on the
prescribed application form a space where the owner of a
vehicle may designate a beneficiary, to whom ownership of the
vehicle shall pass in the event of the owner's death.
    (b) If the application refers to a vehicle purchased from a
dealer, it must also be signed by the dealer as well as the
owner, and the dealer must promptly mail or deliver the
application and required documents to the Secretary of State.
    (c) If the application refers to a vehicle last previously
registered in another State or country, the application must
contain or be accompanied by:
        1. Any certified document of ownership so recognized
    and issued by the other State or country and acceptable to
    the Secretary of State, and
        2. Any other information and documents the Secretary of
    State reasonably requires to establish the ownership of the
    vehicle and the existence or nonexistence of security
    interests in it.
    (d) If the application refers to a new vehicle it must be
accompanied by the Manufacturer's Statement of Origin, or other
documents as required and acceptable by the Secretary of State,
with such assignments as may be necessary to show title in the
applicant.
    (e) If an application refers to a vehicle rebuilt from a
vehicle previously salvaged, that application shall comply
with the provisions set forth in Sections 3-302 through 3-304
of this Code.
    (f) An application for a certificate of title for any
vehicle, whether purchased in Illinois or outside Illinois, and
even if previously registered in another State, must be
accompanied by either an exemption determination from the
Department of Revenue showing that no tax imposed pursuant to
the Use Tax Act or the vehicle use tax imposed by Section
3-1001 of the Illinois Vehicle Code is owed by anyone with
respect to that vehicle, or a receipt from the Department of
Revenue showing that any tax so imposed has been paid. An
application for a certificate of title for any vehicle
purchased outside Illinois, even if previously registered in
another state, must be accompanied by either an exemption
determination from the Department of Revenue showing that no
tax imposed pursuant to the Municipal Use Tax Act or the County
Use Tax Act is owed by anyone with respect to that vehicle, or
a receipt from the Department of Revenue showing that any tax
so imposed has been paid. In the absence of such a receipt for
payment or determination of exemption from the Department, no
certificate of title shall be issued to the applicant.
    If the proof of payment of the tax or of nonliability
therefor is, after the issuance of the certificate of title and
display certificate of title, found to be invalid, the
Secretary of State shall revoke the certificate and require
that the certificate of title and, when applicable, the display
certificate of title be returned to him.
    (g) If the application refers to a vehicle not manufactured
in accordance with federal safety and emission standards, the
application must be accompanied by all documents required by
federal governmental agencies to meet their standards before a
vehicle is allowed to be issued title and registration.
    (h) If the application refers to a vehicle sold at public
sale by a sheriff, it must be accompanied by the required fee
and a bill of sale issued and signed by a sheriff. The bill of
sale must identify the new owner's name and address, the year
model, make and vehicle identification number of the vehicle,
court order document number authorizing such sale, if
applicable, and the name and address of any lienholders in
order of priority, if applicable.
    (i) If the application refers to a vehicle for which a
court of law determined the ownership, it must be accompanied
with a certified copy of such court order and the required fee.
The court order must indicate the new owner's name and address,
the complete description of the vehicle, if known, the name and
address of the lienholder, if any, and must be signed and dated
by the judge issuing such order.
    (j) If the application refers to a vehicle sold at public
auction pursuant to the Labor and Storage Lien (Small Amount)
Act, it must be accompanied by an affidavit or affirmation
furnished by the Secretary of State along with the documents
described in the affidavit or affirmation and the required fee.
    (k) The Secretary may provide an expedited process for the
issuance of vehicle titles. Expedited title applications must
be delivered to the Secretary of State's Vehicle Services
Department in Springfield by express mail service or hand
delivery. Applications must be complete, including necessary
forms, fees, and taxes. Applications received before noon on a
business day will be processed and shipped that same day.
Applications received after noon on a business day will be
processed and shipped the next business day. The Secretary
shall charge an additional fee of $30 for this service, and
that fee shall cover the cost of return shipping via an express
mail service. All fees collected by the Secretary of State for
expedited services shall be deposited into the Motor Vehicle
License Plate Fund. In the event the Vehicle Services
Department determines that the volume of expedited title
requests received on a given day exceeds the ability of the
Vehicle Services Department to process those requests in an
expedited manner, the Vehicle Services Department may decline
to provide expedited services, and the additional fee for the
expedited service shall be refunded to the applicant.
    (l) If the application refers to a homemade trailer, (i) it
must be accompanied by the appropriate documentation regarding
the source of materials used in the construction of the
trailer, as required by the Secretary of State, (ii) the
trailer must be inspected by a Secretary of State employee
prior to the issuance of the title, and (iii) upon approval of
the Secretary of State, the trailer must have a vehicle
identification number, as provided by the Secretary of State,
stamped or riveted to the frame.
    (m) The holder of a Manufacturer's Statement of Origin to a
manufactured home may deliver it to any person to facilitate
conveying or encumbering the manufactured home. Any person
receiving any such Manufacturer's Statement of Origin so
delivered holds it in trust for the person delivering it.
    (n) Within 45 days after the completion of the first retail
sale of a manufactured home, the Manufacturer's Statement of
Origin to that manufactured home must be surrendered to the
Secretary of State either in conjunction with an application
for a certificate of title for that manufactured home or in
accordance with Section 3-116.1.
(Source: P.A. 96-519, eff. 1-1-10; 96-554, eff. 1-1-10;
96-1000, eff. 7-2-10; 97-918, eff. 1-1-13.)
 
    (625 ILCS 5/3-106)  (from Ch. 95 1/2, par. 3-106)
    Sec. 3-106. Certificate of title - Issuance - Records. (a)
The Secretary of State shall file each application received
and, when satisfied as to its genuineness and regularity, and
that no tax imposed by the "Use Tax Act" or the vehicle use
tax, as imposed by Section 3-1001 of "The Illinois Vehicle
Code", or pursuant to the "Municipal Use Tax Act" or pursuant
to the "County Use Tax Act" is owed as evidenced by the receipt
for payment or determination of exemption from the Department
of Revenue provided for in Section 3-104 of this Act, and that
the applicant is entitled to the issuance of a certificate of
title, shall issue a certificate of title of the vehicle.
    (b) The Secretary of State shall maintain a record of all
certificates of title issued by him under a distinctive title
number assigned to the vehicle; and, in the discretion of the
Secretary of State, in any other method determined.
    (c) The Secretary of State shall not issue a certificate of
title, including a certificate of title issued in accordance
with subsection (b) of Section 3-109, to a manufactured home
for which there has been recorded an affidavit of affixation
pursuant to the Conveyance and Encumbrance of Manufactured
Homes as Real Property and Severance Act unless with respect to
the same manufactured home there has been recorded an affidavit
of severance pursuant to the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
    (d) The Secretary of State shall file, upon receipt, each
affidavit of affixation and each affidavit of severance
relating to a manufactured home that is delivered in accordance
with the Conveyance and Encumbrance of Manufactured Homes as
Real Property and Severance Act, when satisfied as to its
genuineness and regularity.
    (e) The Secretary of State shall maintain a record of each
affidavit of affixation and each affidavit of severance filed
in accordance with subsection (d) of this Section. The record
shall state the name of the owner of the related manufactured
home, the name of manufacturer, model year, manufacturer's
serial number, and any other data the Secretary of State
prescribes.
    (f) The Secretary of State shall file, upon receipt, each
application for surrender of the Manufacturer's Statement of
Origin relating to a manufactured home that is delivered in
accordance with Section 3-116.1, when satisfied as to its
genuineness and regularity.
    (g) The Secretary of State shall file, upon receipt, each
application for surrender of the certificate of title relating
to a manufactured home that is delivered in accordance with
Section 3-116.2, when satisfied as to its genuineness and
regularity.
    (h) The Secretary of State shall maintain a record,
including a record in the form of a searchable electronic
database accessible to the public, of each Manufacturer's
Statement of Origin accepted for surrender as provided in
Section 3-116.1. The record shall state the date the
Manufacturer's Statement of Origin was accepted for surrender,
the name of manufacturer, make, model name, model year,
manufacturer's serial number, and any other data the Secretary
of State prescribes.
    (i) The Secretary of State shall maintain a record,
including a record in the form of a searchable electronic
database accessible to the public, of each manufactured home
certificate of title accepted for surrender as provided in
Section 3-116.2. The record shall state the date the
certificate of title was accepted for surrender, the name of
manufacturer, model year, manufacturer's serial number, and
any other data the Secretary of State prescribes.
(Source: P.A. 86-444.)
 
    (625 ILCS 5/3-107)  (from Ch. 95 1/2, par. 3-107)
    Sec. 3-107. Contents and effect.
    (a) Each certificate of title issued by the Secretary of
State shall contain:
        1. the date issued;
        2. the name and address of the owner;
        3. the names and addresses of any lienholders, in the
    order of priority as shown on the application or, if the
    application is based on a certificate of title, as shown on
    the certificate;
        4. the title number assigned to the vehicle;
        5. a description of the vehicle including, so far as
    the following data exists: its make, year-model,
    identifying number, type of body, whether new or used, as
    to house trailers as defined in Section 1-128 of this Code,
    and as to manufactured homes as defined in Section 1-144.03
    of this Code, the square footage of the vehicle based upon
    the outside dimensions of the house trailer excluding the
    length of the tongue and hitch, and, if a new vehicle, the
    date of the first sale of the vehicle for use;
        6. an odometer certification as provided for in this
    Code; and
        7. any other data the Secretary of State prescribes.
    (a-5) In the event the applicant seeks to have the vehicle
titled as a custom vehicle or street rod, that fact must be
stated in the application. The custom vehicle or street rod
must be inspected as required by Section 3-406 of this Code
prior to issuance of the title. Upon successful completion of
the inspection, the vehicle may be titled in the following
manner. The make of the vehicle shall be listed as the make of
the actual vehicle or the make it is designed to resemble
(e.g., Ford or Chevrolet); the model of the vehicle shall be
listed as custom vehicle or street rod; and the year of the
vehicle shall be listed as the year the actual vehicle was
manufactured or the year it is designed to resemble. A vehicle
previously titled as other than a custom vehicle or street rod
may be issued a corrected title reflecting the custom vehicle
or street rod model if it otherwise meets the requirements for
the designation.
    (b) The certificate of title shall contain forms for
assignment and warranty of title by the owner, and for
assignment and warranty of title by a dealer, and may contain
forms for applications for a certificate of title by a
transferee, the naming of a lienholder and the assignment or
release of the security interest of a lienholder.
    (b-5) The Secretary of State shall designate on a
certificate of title a space where the owner of a vehicle may
designate a beneficiary, to whom ownership of the vehicle shall
pass in the event of the owner's death.
    (c) A certificate of title issued by the Secretary of State
is prima facie evidence of the facts appearing on it.
    (d) A certificate of title for a vehicle is not subject to
garnishment, attachment, execution or other judicial process,
but this subsection does not prevent a lawful levy upon the
vehicle.
    (e) Any certificate of title issued by the Secretary of
State is subject to a lien in favor of the State of Illinois
for any fees or taxes required to be paid under this Act and as
have not been paid, as provided for in this Code.
    (f) Notwithstanding any other provision of law, a
certificate of title issued by the Secretary of State to a
manufactured home is prima facie evidence of the facts
appearing on it, notwithstanding the fact that such
manufactured home, at any time, shall have become affixed in
any manner to real property.
(Source: P.A. 95-784, eff. 1-1-09; 96-487, eff. 1-1-10.)
 
    (625 ILCS 5/3-109)  (from Ch. 95 1/2, par. 3-109)
    Sec. 3-109. Registration without certificate of title;
bond. If the Secretary of State is not satisfied as to the
ownership of the vehicle, including but not limited to, in the
case of a manufactured home, a circumstance in which the
manufactured home is covered by a Manufacturer's Statement of
Origin that the owner of the manufactured home, after diligent
search and inquiry, is unable to produce, or that there are no
undisclosed security interests in it, the Secretary of State
may register the vehicle but shall either:
    (a) Withhold issuance of a certificate of title until the
applicant presents documents reasonably sufficient to satisfy
the Secretary of State as to the applicant's ownership of the
vehicle and that there are no undisclosed security interests in
it; or
    (b) As a condition of issuing a certificate of title,
require the applicant to file with the Secretary of State a
bond in the form prescribed by the Secretary of State and
executed by the applicant, and either accompanied by the
deposit of cash with the Secretary of State or also executed by
a person authorized to conduct a surety business in this State.
The bond shall be in an amount equal to one and one-half times
the value of the vehicle as determined by the Secretary of
State and conditioned to indemnify any prior owner and
lienholder and any subsequent purchaser of the vehicle or
person acquiring any security interest in it, and their
respective successors in interest, against any expense, loss or
damage, including reasonable attorney's fees, by reason of the
issuance of the certificate of title of the vehicle or on
account of any defect in or undisclosed security interest upon
the right, title and interest of the applicant in and to the
vehicle. Any such interested person has a right of action to
recover on the bond for any breach of its conditions, but the
aggregate liability of the surety to all persons shall not
exceed the amount of the bond. The bond, and any deposit
accompanying it, shall be returned at the end of three (3)
years or prior thereto if (i) the vehicle is no longer
registered in this State and the currently valid certificate of
title is surrendered to the Secretary of State or (ii), in the
case of a certificate of title to a manufactured home, the
currently valid certificate of title is surrendered to the
Secretary of State in accordance with Section 3-116.2, unless
the Secretary of State has been notified of the pendency of an
action to recover on the bond.
    Security deposited as a bond hereunder shall be placed by
the Secretary of State in the custody of the State Treasurer.
    (c) During July, annually, the Secretary shall compile a
list of all bonds on deposit, pursuant to this Section, for
more than 3 years and concerning which he has received no
notice as to the pendency of any judicial proceeding that could
affect the disposition thereof. Thereupon, he shall promptly
send a notice by certified mail to the last known address of
each depositor advising him that his bond will be subject to
escheat to the State of Illinois if not claimed within 30 days
after the mailing date of such notice. At the expiration of
such time, the Secretary of State shall file with the State
Treasurer an order directing the transfer of such deposit to
the Road Fund in the State Treasury. Upon receipt of such
order, the State Treasurer shall make such transfer, after
converting to cash any other type of security. Thereafter any
person having a legal claim against such deposit may enforce it
by appropriate proceedings in the Court of Claims subject to
the limitations prescribed for such Court. At the expiration of
such limitation period such deposit shall escheat to the State
of Illinois.
(Source: P.A. 81-1458.)
 
    (625 ILCS 5/3-110)  (from Ch. 95 1/2, par. 3-110)
    Sec. 3-110. Refusing certificate of title. The Secretary of
State shall refuse issuance of a certificate of title if any
required fee is not paid or if he has reasonable grounds to
believe that:
        (a) the applicant is not the owner of the vehicle;
        (b) the application contains a false or fraudulent
    statement;
        (c) the applicant fails to furnish required
    information or documents or any additional information the
    Secretary of State reasonably requires; or
        (d) the applicant has not paid to the Secretary of
    State any fees or taxes due under this Act and have not
    been paid upon reasonable notice and demand.
    Except as provided in Section 3-116.2, the Secretary of
State shall not refuse to issue a certificate of title to a
manufactured home by reason of the fact that, at any time, in
any manner, it shall have been affixed to real property.
(Source: P.A. 97-333, eff. 8-12-11.)
 
    (625 ILCS 5/3-116)  (from Ch. 95 1/2, par. 3-116)
    Sec. 3-116. When Secretary of State to issue a certificate
of title.
    (a) The Secretary of State, upon receipt of a properly
assigned certificate of title, with an application for a
certificate of title, the required fee and any other documents
required by law, shall issue a new certificate of title in the
name of the transferee as owner and mail it to the first
lienholder named in it or, if none, to the owner or owner's
designee.
    (b) The Secretary of State, upon receipt of an application
for a new certificate of title by a transferee other than by
voluntary transfer, with proof of the transfer, the required
fee and any other documents required by law, shall issue a new
certificate of title in the name of the transferee as owner.
    (c) Any person, firm or corporation, who shall knowingly
possess, buy, sell, exchange or give away, or offer to buy,
sell, exchange or give away the certificate of title to any
motor vehicle which is a junk or salvage, or who shall fail to
surrender the certificate of title to the Secretary of State as
required under the provisions of this Section and Section
3-117.2, shall be guilty of Class 3 felony.
    (d) The Secretary of State shall file and retain for four
(4) years a record of every surrendered certificate of title or
proof of ownership accepted by the Secretary of State, the file
to be maintained so as to permit the tracing of title of the
vehicle designated therein. Such filing and retention
requirements shall be in addition to and not in substitution
for the recordkeeping requirements set forth in Section 3-106
of this Code, which recordkeeping requirements are not limited
to any period of time.
    (e) The Secretary of State, upon receipt of an application
for corrected certificate of title, with the original title,
the required fee and any other required documents, shall issue
a corrected certificate of title in the name of the owner and
mail it to the first lienholder named in it or, if none, to the
owner or owner's designee.
    (f) The Secretary of State, upon receipt of a certified
copy of a court order awarding ownership to an applicant along
with an application for a certificate of title and the required
fee, shall issue a certificate of title to the applicant.
(Source: P.A. 90-212, eff. 1-1-98.)
 
    (625 ILCS 5/3-116.1 new)
    Sec. 3-116.1. Surrender of Manufacturer's Statement of
Origin to a manufactured home.
    (a) The owner (all, if more than one) of a manufactured
home that is covered by a Manufacturer's Statement of Origin
and that is affixed to a permanent foundation as defined in the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act, or which the owner intends to affix
to a permanent foundation as defined in the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act, may surrender the Manufacturer's Statement of
Origin to the manufactured home to the Secretary of State by
filing with the Secretary of State an application for surrender
of Manufacturer's Statement of Origin containing or
accompanied by:
            (1) the name, residence, and mailing address of the
    owner;
            (2) a description of the manufactured home
    including the name of the manufacturer, the make, the model
    name, the model year, the dimensions, and the vehicle
    identification number of the manufactured home and whether
    it is new or used, and any other information the Secretary
    of State requires;
            (3) the date of purchase by the owner of the
    manufactured home, the name and address of the person from
    whom the home was acquired, and the names and addresses of
    any security interest holders and lienholders in the order
    of their apparent priority;
            (4) a statement signed by the owner, stating either
    (i) any facts or information known to the owner that could
    reasonably affect the validity of the title to the
    manufactured home or the existence or non-existence of a
    security interest in or lien on it or (ii) that no such
    facts or information are known to the owner;
            (5) a certified copy of the recorded affidavit of
    affixation in accordance with the Conveyance and
    Encumbrance of Manufactured Homes as Real Property and
    Severance Act;
            (6) the original Manufacturer's Statement of
    Origin;
            (7) the name and mailing address of each owner of
    the manufactured home or such owner's designee wishing to
    receive written acknowledgment of surrender from the
    Secretary of State; and
            (8) any other information and documents the
    Secretary of State reasonably requires to identify the
    owner of the manufactured home and to enable him or her to
    determine whether the owner satisfied the requirements of
    the Conveyance and Encumbrance of Manufactured Homes as
    Real Property and Severance Act and is entitled to
    surrender the Manufacturer's Statement of Origin, and the
    existence or non-existence of security interests in or
    liens on the manufactured home.
    (b) When satisfied as to the genuineness and regularity of
the surrender of a Manufacturer's Statement of Origin to a
manufactured home, payment of any applicable fees and upon
satisfaction of the requirements of subsection (a) of this
Section, the Secretary of State shall (i) cancel the
Manufacturer's Statement of Origin and update his or her
records in accordance with the provisions of Section 3-106 and
(ii) provide written acknowledgment of compliance with the
provisions of this Section to each person identified on the
application for surrender of Manufacturer's Statement of
Origin pursuant to subsection (a)(7) of this Section.
    (c) Upon satisfaction of the requirements of this Section,
a manufactured home shall be conveyed and encumbered as
provided in the Conveyance and Encumbrance of Manufactured
Homes as Real Property and Severance Act. If the application to
surrender a Manufacturer's Statement of Origin is delivered to
the Secretary of State within 60 days of recording the related
affidavit of affixation with the recording officer in the
county in which the real property to which the manufactured
home is or shall be affixed and the application is thereafter
accepted by the Secretary of State, the requirements of this
Section shall be deemed satisfied as of the date the affidavit
of affixation is recorded.
    (d) Upon written request by a person identified on the
application for surrender of Manufacturer's Statement of
Origin pursuant to subsection (a)(7) of this Section, the
Secretary of State shall provide written acknowledgment of
compliance with the provisions of this Section.
 
    (625 ILCS 5/3-116.2 new)
    Sec. 3-116.2. Application for surrender of title.
    (a) The owner (all, if more than one) of a manufactured
home that is covered by a certificate of title, including, if
applicable, a certificate of title issued in accordance with
subsection (b) of Section 3-109, and that is permanently
affixed to real property as defined in the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act, or which the owner intends to permanently affix
to real property as defined in the Conveyance and Encumbrance
of Manufactured Homes as Real Property and Severance Act, may
surrender the certificate of title to the manufactured home to
the Secretary of State by filing with the Secretary of State an
application for surrender of title containing or accompanied
by:
        (1) the name, residence, and mailing address of the
    owner;
        (2) a description of the manufactured home including
    the name of the manufacturer, the make, the model name, the
    model year, the dimensions, and the vehicle identification
    number or numbers of the manufactured home and whether it
    is new or used and any other information the Secretary of
    State requires;
        (3) the date of purchase by the owner of the
    manufactured home, the name and address of the person from
    whom the home was acquired and the names and addresses of
    any security interest holders and lienholders in the order
    of their apparent priority;
        (4) a statement signed by the owner, stating either,
    (i) any facts or information known to the owner that could
    reasonably affect the validity of the title to the
    manufactured home or the existence or non-existence of a
    security interest in or lien on it; or (ii) that no such
    facts or information are known to the owner;
        (5) a certified copy of the affidavit of affixation in
    accordance with the Conveyance and Encumbrance of
    Manufactured Homes as Real Property and Severance Act;
        (6) the original certificate of title;
        (7) the name and mailing address of each owner of the
    manufactured home or such owner's designee wishing written
    acknowledgment of surrender from the Secretary of State;
        (8) a release of security interests (if any) pursuant
    to Section 3-205 of this Code; and
        (9) any other information and documents the Secretary
    of State reasonably requires to identify the owner of the
    manufactured home and to enable him or her to determine
    whether the owner satisfied the requirements of the
    Conveyance and Encumbrance of Manufactured Homes as Real
    Property and Severance Act and is entitled to surrender the
    certificate of title and the existence or non-existence of
    security interests in or liens on the manufactured home.
    (b) The Secretary of State shall not accept for surrender a
certificate of title to a manufactured home unless and until
all security interests or liens perfected pursuant to Sections
3-106 and 3-202 have been released.
    (c) When satisfied as to the genuineness and regularity of
the surrender of a certificate of title to a manufactured home,
payment of any applicable fees and upon satisfaction of the
requirements of subsections (a) and (b) of this Section, the
Secretary of State shall (i) cancel the certificate of title
and update his or her records in accordance with the provisions
of Section 3-106 and (ii) provide written acknowledgment of
compliance with the provisions of this Section to each person
identified on the application for surrender of title pursuant
to subsection (a)(7) of this Section.
    (d) Upon satisfaction of the requirements of this Section,
a manufactured home shall be conveyed and encumbered as
provided in the Conveyance and Encumbrance of Manufactured
Homes as Real Property and Severance Act. If the application to
surrender a certificate of title is delivered to the Secretary
of State within 60 days of recording the related affidavit of
affixation with the recording officer in the county in which
the real property to which the manufactured home is or shall be
affixed, and the application is thereafter accepted by the
Secretary of State, the requirements of this Section shall be
deemed satisfied as of the date the affidavit of affixation is
recorded.
    (e) Upon written request by a person identified on the
application for surrender of title pursuant to subsection
(a)(7) of this Section, the Secretary of State shall provide
written acknowledgment of compliance with the provisions of
this Section.
 
    (625 ILCS 5/3-116.3 new)
    Sec. 3-116.3. Application for a certificate of title to a
severed manufactured home.
    (a) Notwithstanding any other provision of law, where a
manufactured home has been affixed to a permanent foundation,
and an affidavit of affixation has been recorded as part of the
real property records in the county in which the manufactured
home is located in accordance with the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act, and where the manufactured home subsequently is
detached or severed from the real property, the owner (all, if
more than one) of the manufactured home shall, unless exempted
by other provisions of this Code, apply for a new certificate
of title by filing with the Secretary of State an application
for a certificate of title to a manufactured home, to be issued
in accordance with subsection (b) of Section 3-109, containing
or accompanied by:
        (1) the name, residence, and mailing address of the
    owner;
        (2) a description of the manufactured home, including
    the name of the manufacturer, the make, the model name, the
    model year, the dimensions, and the vehicle identification
    number or numbers of the manufactured home and whether it
    is new or used, and any other information the Secretary of
    State requires;
        (3) a statement signed by the applicant, stating
    either: (i) any facts or information known to the applicant
    that could reasonably affect the validity of the title of
    the manufactured home or the existence or non-existence of
    any security interest in or lien on it or (ii) that no such
    facts or information are known to the applicant;
        (4) a certified copy of the recorded affidavit of
    severance provided in accordance with the Conveyance and
    Encumbrance of Manufactured Homes as Real Property and
    Severance Act; and
        (5) any other information and documents the Secretary
    of State reasonably requires.
    (b) Upon satisfaction of the requirements of subsection (a)
of this Section and subsection (b) of Section 3-109, the
Secretary of State shall issue a new certificate of title
pursuant to subsection (b) of Section 3-109 and update his or
her records in accordance with the provisions of Section 3-106.
    (c) Immediately upon satisfaction of the requirements of
this Section and thereafter, a manufactured home shall be
conveyed and encumbered as personal property.
    (d) The satisfaction of the requirements of this Section
with respect to a manufactured home shall have no effect on the
manner in which such manufactured home is taxed pursuant to the
Property Tax Code or the Mobile Home Local Services Tax Act.
 
    (625 ILCS 5/3-202)  (from Ch. 95 1/2, par. 3-202)
    Sec. 3-202. Perfection of security interest.
    (a) Unless excepted by Section 3-201, a security interest
in a vehicle of a type for which a certificate of title is
required is not valid against subsequent transferees or
lienholders of the vehicle unless perfected as provided in this
Act. A purchase money security interest in a manufactured home
is perfected against the rights of judicial lien creditors and
execution creditors on and after the date such purchase money
security interest attaches.
    (b) A security interest is perfected by the delivery to the
Secretary of State of the existing certificate of title, if
any, an application for a certificate of title containing the
name and address of the lienholder and the required fee. The
security interest is perfected as of the time of its creation
if the delivery to the Secretary of State is completed within
30 days after the creation of the security interest or receipt
by the new lienholder of the existing certificate of title from
a prior lienholder or licensed dealer, otherwise as of the time
of the delivery.
    (c) If a vehicle is subject to a security interest when
brought into this State, the validity of the security interest
is determined by the law of the jurisdiction where the vehicle
was when the security interest attached, subject to the
following:
        1. If the parties understood at the time the security
    interest attached that the vehicle would be kept in this
    State and it was brought into this State within 30 days
    thereafter for purposes other than transportation through
    this State, the validity of the security interest in this
    State is determined by the law of this State.
        2. If the security interest was perfected under the law
    of the jurisdiction where the vehicle was when the security
    interest attached, the following rules apply:
            (A) If the name of the lienholder is shown on an
        existing certificate of title issued by that
        jurisdiction, his security interest continues
        perfected in this State.
            (B) If the name of the lienholder is not shown on
        an existing certificate of title issued by that
        jurisdiction, a security interest may be perfected by
        the lienholder delivering to the Secretary of State the
        prescribed notice and by payment of the required fee.
        Such security interest is perfected as of the time of
        delivery of the prescribed notice and payment of the
        required fee.
        3. If the security interest was not perfected under the
    law of the jurisdiction where the vehicle was when the
    security interest attached, it may be perfected in this
    State; in that case perfection dates from the time of
    perfection in this State.
        4. A security interest may be perfected under paragraph
    3 of this subsection either as provided in subsection (b)
    or by the lienholder delivering to the Secretary of State a
    notice of security interest in the form the Secretary of
    State prescribes and the required fee.
    (d) Except as otherwise provided in Sections 3-116.1,
3-116.2, 3-207, and the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act, after a
certificate of title has been issued for a manufactured home
and as long as the manufactured home is subject to any security
interest perfected pursuant to this Section, the Secretary of
State shall not file an affidavit of affixation, nor cancel the
Manufacturer's Statement of Origin, nor revoke the certificate
of title, nor issue a certificate of title under Section 3-106,
and, in any event, the validity and priority of any security
interest perfected pursuant to this Section shall continue,
notwithstanding the provision of any other law.
(Source: P.A. 95-284, eff. 1-1-08.)
 
    (625 ILCS 5/3-205)  (from Ch. 95 1/2, par. 3-205)
    Sec. 3-205. Release of security interest.
    (a) Within 21 days after receiving payment to satisfy a
security interest in a vehicle for which the certificate of
title is in the possession of the lienholder, he shall execute
a release of his security interest, and mail or deliver the
certificate and release to the next lienholder named therein,
or, if none, to the owner or any person who delivers to the
lienholder an authorization from the owner to receive the
certificate. If the payment is in the form of cash, a cashier's
check, or a certified check, the number of days is reduced to
10 business days. If the owner desires a new certificate
reflecting no lien, the certificate and release from the
lienholder may be submitted to the Secretary of State, along
with the prescribed application and required fee, for issuance
of that new certificate.
    (b) Within 21 days after receiving payment to satisfy a
security interest in a vehicle for which the certificate of
title is in the possession of a prior lienholder, the
lienholder whose security interest is satisfied shall execute a
release and deliver the release to the owner or any person who
delivers to the lienholder an authorization from the owner to
receive it. If the payment is in the form of cash, a cashier's
check, or a certified check, the number of days is reduced to
10 business days. The lienholder in possession of the
certificate of title may either deliver the certificate to the
owner, or the person authorized by him, for delivery to the
Secretary of State, or, upon receipt of the release, may mail
or may deliver the certificate and release, along with
prescribed application and require fee, to the Secretary of
State, who shall issue a new certificate.
    (c) In addition to any other penalty, a lienholder who
fails to execute a release of his or her security interest or
who fails to mail or deliver the certificate and release within
the time limit provided in subsection (a) or (b) is liable to
the person or entity that was supposed to receive the release
or certificate for $150 plus reasonable attorney fees and court
costs. An action under this Section may be brought in small
claims court or in any other appropriate court.
    (d) The holder of a security interest in or a lien on a
manufactured home may deliver lien release documents to any
person to facilitate conveying or encumbering the manufactured
home. Any person receiving any such documents so delivered
holds the documents in trust for the security interest holder
or the lienholder.
(Source: P.A. 93-621, eff. 12-15-03.)
 
    (625 ILCS 5/3-207)  (from Ch. 95 1/2, par. 3-207)
    Sec. 3-207. Exclusiveness of procedure.
    The method provided in this act of perfecting and giving
notice of security interests subject to this act is exclusive.
Security interests subject to this act are hereby exempted from
the provisions of law which otherwise require or relate to the
recording or filing of instruments creating or evidencing
security interests in vehicles including chattel mortgages and
conditional sale agreements, provided, however, that with
respect to a manufactured home that is or will be affixed to a
permanent foundation, upon recordation of an affidavit of
affixation pursuant to the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act and
satisfaction of the requirements of Section 3-116.1 or 3-116.2,
as applicable, any perfection or termination of a security
interest with respect to such permanently affixed property
shall be governed by the laws applicable to real property.
(Source: P.A. 76-1586.)
 
    (625 ILCS 5/3-208)  (from Ch. 95 1/2, par. 3-208)
    Sec. 3-208. Suspension or revocation of certificates.
    (a) The Secretary of State may suspend or revoke a
certificate of title, upon notice and reasonable opportunity to
be heard in accordance with Section 2-118, when authorized by
any other provision of law or if he finds:
        1. The certificate of title was fraudulently procured
    or erroneously issued, or
        2. The vehicle has been scrapped, dismantled or
    destroyed.
    Except as provided in Section 3-116.2, the Secretary of
State shall not suspend or revoke a certificate of title to a
manufactured home by reason of the fact that, at any time, it
shall have become affixed in any manner to real property.
    (b) Suspension or revocation of a certificate of title does
not, in itself, affect the validity of a security interest
noted on it.
    (c) When the Secretary of State suspends or revokes a
certificate of title, the owner or person in possession of it
shall, immediately upon receiving notice of the suspension or
revocation, mail or deliver the certificate to the Secretary of
State.
    (d) The Secretary of State may seize and impound any
certificate of title which has been suspended or revoked.
(Source: P.A. 76-1586.)
 
    Section 10-75. The Code of Civil Procedure is amended by
changing Section 15-1213 as follows:
 
    (735 ILCS 5/15-1213)  (from Ch. 110, par. 15-1213)
    Sec. 15-1213. Real Estate. "Real estate" means land or any
estate or interest in, over or under land (including minerals,
air rights, structures, fixtures and other things which by
custom, usage or law pass with a conveyance of land though not
described or mentioned in the contract of sale or instrument of
conveyance). "Mortgaged real estate" means the real estate
which is the subject of a mortgage. "Real Estate" includes a
manufactured home as defined in subdivision (53) of Section
9-102 of the Uniform Commercial Code that is real property as
defined in the Conveyance and Encumbrance of Manufactured Homes
as Real Property and Severance Act.
(Source: P.A. 84-1462.)
 
    Section 10-80. The Conveyances Act is amended by changing
Section 38 as follows:
 
    (765 ILCS 5/38)  (from Ch. 30, par. 37)
    Sec. 38. The term "real estate," as used in this act, shall
be construed as co-extensive in meaning with "lands, tenements
and hereditaments," and as embracing all chattels real. "Real
estate" and "real property" include a manufactured home as
defined in subdivision (53) of Section 9-102 of the Uniform
Commercial Code that is real property as defined in the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act. This act shall not be construed so
as to embrace last wills, except as herein expressly provided.
(Source: P.A. 84-551.)
 
    Section 10-85. The Residential Real Property Disclosure
Act is amended by changing Section 5 as follows:
 
    (765 ILCS 77/5)
    Sec. 5. Definitions. As used in this Act, unless the
context otherwise requires the following terms have the meaning
given in this Section.
    "Residential real property" means real property improved
with not less than one nor more than 4 residential dwelling
units; units in residential cooperatives; or, condominium
units, including the limited common elements allocated to the
exclusive use thereof that form an integral part of the
condominium unit. The term includes a manufactured home as
defined in subdivision (53) of Section 9-102 of the Uniform
Commercial Code that is real property as defined in the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act.
    "Seller" means every person or entity who is an owner,
beneficiary of a trust, contract purchaser or lessee of a
ground lease, who has an interest (legal or equitable) in
residential real property. However, "seller" shall not include
any person who has both (i) never occupied the residential real
property and (ii) never had the management responsibility for
the residential real property nor delegated such
responsibility for the residential real property to another
person or entity.
    "Prospective buyer" means any person or entity negotiating
or offering to become an owner or lessee of residential real
property by means of a transfer for value to which this Act
applies.
(Source: P.A. 90-383, eff. 1-1-98.)
 
    Section 10-90. The Mobile Home Landlord and Tenant Rights
Act is amended by changing Section 3 as follows:
 
    (765 ILCS 745/3)  (from Ch. 80, par. 203)
    Sec. 3. Definitions. Unless otherwise expressly defined,
all terms in this Act shall be construed to have their
ordinarily accepted meanings or such meaning as the context
therein requires.
    (a) "Person" means any legal entity, including but not
limited to, an individual, firm, partnership, association,
trust, joint stock company, corporation or successor of any of
the foregoing.
    (b) "Manufactured home" means a factory-assembled,
completely integrated structure designed for permanent
habitation, with a permanent chassis, and so constructed as to
permit its transport, on wheels temporarily or permanently
attached to its frame, and is a movable or portable unit that
is (i) 8 body feet or more in width, (ii) 40 body feet or more
in length, and (iii) 320 or more square feet, constructed to be
towed on its own chassis (comprised of frame and wheels) from
the place of its construction to the location, or subsequent
locations, at which it is installed and set up according to the
manufacturer's instructions and connected to utilities for
year-round occupancy for use as a permanent habitation, and
designed and situated so as to permit its occupancy as a
dwelling place for one or more persons, and specifically
includes a "manufactured home" as defined in subdivision (53)
of Section 9-102 of the Uniform Commercial Code. The term shall
include units containing parts that may be folded, collapsed,
or telescoped when being towed and that may be expected to
provide additional cubic capacity, and that are designed to be
joined into one integral unit capable of being separated again
into the components for repeated towing. The term excludes
campers and recreational vehicles. The words "mobile home" and
"manufactured home" are synonymous for the purposes of this
Act.
    (c) "Mobile Home Park" or "Park" means a tract of land or 2
contiguous tracts of land that contain sites with the necessary
utilities for 5 or more mobile homes or manufactured homes. A
mobile home park may be operated either free of charge or for
revenue purposes.
    (d) "Park Owner" means the owner of a mobile home park and
any person authorized to exercise any aspect of the management
of the premises, including any person who directly or
indirectly receives rents and has no obligation to deliver the
whole of such receipts to another person.
    (e) "Tenant" means any person who occupies a mobile home
rental unit for dwelling purposes or a lot on which he parks a
mobile home for an agreed upon consideration.
    (f) "Rent" means any money or other consideration given for
the right of use, possession and occupancy of property, be it a
lot, a mobile home, or both.
    (g) "Master antenna television service" means any and all
services provided by or through the facilities of any closed
circuit coaxial cable communication system, or any microwave or
similar transmission services other than a community antenna
television system as defined in Section 11-42-11 of the
Illinois Municipal Code.
(Source: P.A. 96-1477, eff. 1-1-11.)
 
    Section 10-95. The Mortgage Act is amended by adding
Section 13.1 as follows:
 
    (765 ILCS 905/13.1 new)
    Sec. 13.1. Real estate; real property. As used in this Act,
"real estate" and "real property" include a manufactured home
as defined in subdivision (53) of Section 9-102 of the Uniform
Commercial Code that is real property as defined in the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act.
 
    Section 10-100. The Joint Tenancy Act is amended by adding
Section 5 as follows:
 
    (765 ILCS 1005/5 new)
    Sec. 5. Real estate; real property. As used in this Act,
"real estate" and "real property" include a manufactured home
as defined in subdivision (53) of Section 9-102 of the Uniform
Commercial Code that is real property as defined in the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act.
 
    Section 10-105. The Uniform Commercial Code is amended by
changing Section 9-102 as follows:
 
    (810 ILCS 5/9-102)  (from Ch. 26, par. 9-102)
    Sec. 9-102. Definitions and index of definitions.
    (a) Article 9 definitions. In this Article:
        (1) "Accession" means goods that are physically united
    with other goods in such a manner that the identity of the
    original goods is not lost.
        (2) "Account", except as used in "account for", means a
    right to payment of a monetary obligation, whether or not
    earned by performance, (i) for property that has been or is
    to be sold, leased, licensed, assigned, or otherwise
    disposed of, (ii) for services rendered or to be rendered,
    (iii) for a policy of insurance issued or to be issued,
    (iv) for a secondary obligation incurred or to be incurred,
    (v) for energy provided or to be provided, (vi) for the use
    or hire of a vessel under a charter or other contract,
    (vii) arising out of the use of a credit or charge card or
    information contained on or for use with the card, or
    (viii) as winnings in a lottery or other game of chance
    operated or sponsored by a State, governmental unit of a
    State, or person licensed or authorized to operate the game
    by a State or governmental unit of a State. The term
    includes health-care-insurance receivables. The term does
    not include (i) rights to payment evidenced by chattel
    paper or an instrument, (ii) commercial tort claims, (iii)
    deposit accounts, (iv) investment property, (v)
    letter-of-credit rights or letters of credit, or (vi)
    rights to payment for money or funds advanced or sold,
    other than rights arising out of the use of a credit or
    charge card or information contained on or for use with the
    card.
        (3) "Account debtor" means a person obligated on an
    account, chattel paper, or general intangible. The term
    does not include persons obligated to pay a negotiable
    instrument, even if the instrument constitutes part of
    chattel paper.
        (4) "Accounting", except as used in "accounting for",
    means a record:
            (A) authenticated by a secured party;
            (B) indicating the aggregate unpaid secured
        obligations as of a date not more than 35 days earlier
        or 35 days later than the date of the record; and
            (C) identifying the components of the obligations
        in reasonable detail.
        (5) "Agricultural lien" means an interest, other than a
    security interest, in farm products:
            (A) which secures payment or performance of an
        obligation for goods or services furnished in
        connection with a debtor's farming operation;
            (B) which is created by statute in favor of a
        person that in the ordinary course of its business
        furnished goods or services to a debtor in connection
        with a debtor's farming operation; and
            (C) whose effectiveness does not depend on the
        person's possession of the personal property.
        (6) "As-extracted collateral" means:
            (A) oil, gas, or other minerals that are subject to
        a security interest that:
                (i) is created by a debtor having an interest
            in the minerals before extraction; and
                (ii) attaches to the minerals as extracted; or
            (B) accounts arising out of the sale at the
        wellhead or minehead of oil, gas, or other minerals in
        which the debtor had an interest before extraction.
        (7) "Authenticate" means:
            (A) to sign; or
            (B) with present intent to adopt or accept a
        record, to attach to or logically associate with the
        record an electronic sound, symbol, or process.
        (8) "Bank" means an organization that is engaged in the
    business of banking. The term includes savings banks,
    savings and loan associations, credit unions, and trust
    companies.
        (9) "Cash proceeds" means proceeds that are money,
    checks, deposit accounts, or the like.
        (10) "Certificate of title" means a certificate of
    title with respect to which a statute provides for the
    security interest in question to be indicated on the
    certificate as a condition or result of the security
    interest's obtaining priority over the rights of a lien
    creditor with respect to the collateral. The term includes
    another record maintained as an alternative to a
    certificate of title by the governmental unit that issues
    certificates of title if a statute permits the security
    interest in question to be indicated on the record as a
    condition or result of the security interest's obtaining
    priority over the rights of a lien creditor with respect to
    the collateral.
        (11) "Chattel paper" means a record or records that
    evidence both a monetary obligation and a security interest
    in specific goods, a security interest in specific goods
    and software used in the goods, a security interest in
    specific goods and license of software used in the goods, a
    lease of specific goods, or a lease of specified goods and
    a license of software used in the goods. In this paragraph,
    "monetary obligation" means a monetary obligation secured
    by the goods or owed under a lease of the goods and
    includes a monetary obligation with respect to software
    used in the goods. The term does not include (i) charters
    or other contracts involving the use or hire of a vessel or
    (ii) records that evidence a right to payment arising out
    of the use of a credit or charge card or information
    contained on or for use with the card. If a transaction is
    evidenced by records that include an instrument or series
    of instruments, the group of records taken together
    constitutes chattel paper.
        (12) "Collateral" means the property subject to a
    security interest or agricultural lien. The term includes:
            (A) proceeds to which a security interest
        attaches;
            (B) accounts, chattel paper, payment intangibles,
        and promissory notes that have been sold; and
            (C) goods that are the subject of a consignment.
        (13) "Commercial tort claim" means a claim arising in
    tort with respect to which:
            (A) the claimant is an organization; or
            (B) the claimant is an individual and the claim:
                (i) arose in the course of the claimant's
            business or profession; and
                (ii) does not include damages arising out of
            personal injury to or the death of an individual.
        (14) "Commodity account" means an account maintained
    by a commodity intermediary in which a commodity contract
    is carried for a commodity customer.
        (15) "Commodity contract" means a commodity futures
    contract, an option on a commodity futures contract, a
    commodity option, or another contract if the contract or
    option is:
            (A) traded on or subject to the rules of a board of
        trade that has been designated as a contract market for
        such a contract pursuant to federal commodities laws;
        or
            (B) traded on a foreign commodity board of trade,
        exchange, or market, and is carried on the books of a
        commodity intermediary for a commodity customer.
        (16) "Commodity customer" means a person for which a
    commodity intermediary carries a commodity contract on its
    books.
        (17) "Commodity intermediary" means a person that:
            (A) is registered as a futures commission merchant
        under federal commodities law; or
            (B) in the ordinary course of its business provides
        clearance or settlement services for a board of trade
        that has been designated as a contract market pursuant
        to federal commodities law.
        (18) "Communicate" means:
            (A) to send a written or other tangible record;
            (B) to transmit a record by any means agreed upon
        by the persons sending and receiving the record; or
            (C) in the case of transmission of a record to or
        by a filing office, to transmit a record by any means
        prescribed by filing-office rule.
        (19) "Consignee" means a merchant to which goods are
    delivered in a consignment.
        (20) "Consignment" means a transaction, regardless of
    its form, in which a person delivers goods to a merchant
    for the purpose of sale and:
            (A) the merchant:
                (i) deals in goods of that kind under a name
            other than the name of the person making delivery;
                (ii) is not an auctioneer; and
                (iii) is not generally known by its creditors
            to be substantially engaged in selling the goods of
            others;
            (B) with respect to each delivery, the aggregate
        value of the goods is $1,000 or more at the time of
        delivery;
            (C) the goods are not consumer goods immediately
        before delivery; and
            (D) the transaction does not create a security
        interest that secures an obligation.
        (21) "Consignor" means a person that delivers goods to
    a consignee in a consignment.
        (22) "Consumer debtor" means a debtor in a consumer
    transaction.
        (23) "Consumer goods" means goods that are used or
    bought for use primarily for personal, family, or household
    purposes.
        (24) "Consumer-goods transaction" means a consumer
    transaction in which:
            (A) an individual incurs an obligation primarily
        for personal, family, or household purposes; and
            (B) a security interest in consumer goods secures
        the obligation.
        (25) "Consumer obligor" means an obligor who is an
    individual and who incurred the obligation as part of a
    transaction entered into primarily for personal, family,
    or household purposes.
        (26) "Consumer transaction" means a transaction in
    which (i) an individual incurs an obligation primarily for
    personal, family, or household purposes, (ii) a security
    interest secures the obligation, and (iii) the collateral
    is held or acquired primarily for personal, family, or
    household purposes. The term includes consumer-goods
    transactions.
        (27) "Continuation statement" means an amendment of a
    financing statement which:
            (A) identifies, by its file number, the initial
        financing statement to which it relates; and
            (B) indicates that it is a continuation statement
        for, or that it is filed to continue the effectiveness
        of, the identified financing statement.
        (28) "Debtor" means:
            (A) a person having an interest, other than a
        security interest or other lien, in the collateral,
        whether or not the person is an obligor;
            (B) a seller of accounts, chattel paper, payment
        intangibles, or promissory notes; or
            (C) a consignee.
        (29) "Deposit account" means a demand, time, savings,
    passbook, nonnegotiable certificates of deposit,
    uncertificated certificates of deposit, nontransferrable
    certificates of deposit, or similar account maintained
    with a bank. The term does not include investment property
    or accounts evidenced by an instrument.
        (30) "Document" means a document of title or a receipt
    of the type described in Section 7-201(b).
        (31) "Electronic chattel paper" means chattel paper
    evidenced by a record or records consisting of information
    stored in an electronic medium.
        (32) "Encumbrance" means a right, other than an
    ownership interest, in real property. The term includes
    mortgages and other liens on real property.
        (33) "Equipment" means goods other than inventory,
    farm products, or consumer goods.
        (34) "Farm products" means goods, other than standing
    timber, with respect to which the debtor is engaged in a
    farming operation and which are:
            (A) crops grown, growing, or to be grown,
        including:
                (i) crops produced on trees, vines, and
            bushes; and
                (ii) aquatic goods produced in aquacultural
            operations;
            (B) livestock, born or unborn, including aquatic
        goods produced in aquacultural operations;
            (C) supplies used or produced in a farming
        operation; or
            (D) products of crops or livestock in their
        unmanufactured states.
        (35) "Farming operation" means raising, cultivating,
    propagating, fattening, grazing, or any other farming,
    livestock, or aquacultural operation.
        (36) "File number" means the number assigned to an
    initial financing statement pursuant to Section 9-519(a).
        (37) "Filing office" means an office designated in
    Section 9-501 as the place to file a financing statement.
        (38) "Filing-office rule" means a rule adopted
    pursuant to Section 9-526.
        (39) "Financing statement" means a record or records
    composed of an initial financing statement and any filed
    record relating to the initial financing statement.
        (40) "Fixture filing" means the filing of a financing
    statement covering goods that are or are to become fixtures
    and satisfying Section 9-502(a) and (b). The term includes
    the filing of a financing statement covering goods of a
    transmitting utility which are or are to become fixtures.
        (41) "Fixtures" means goods that have become so related
    to particular real property that an interest in them arises
    under real property law.
        (42) "General intangible" means any personal property,
    including things in action, other than accounts, chattel
    paper, commercial tort claims, deposit accounts,
    documents, goods, instruments, investment property,
    letter-of-credit rights, letters of credit, money, and
    oil, gas, or other minerals before extraction. The term
    includes payment intangibles and software.
        (43) "Good faith" means honesty in fact and the
    observance of reasonable commercial standards of fair
    dealing.
        (44) "Goods" means all things that are movable when a
    security interest attaches. The term includes (i)
    fixtures, (ii) standing timber that is to be cut and
    removed under a conveyance or contract for sale, (iii) the
    unborn young of animals, (iv) crops grown, growing, or to
    be grown, even if the crops are produced on trees, vines,
    or bushes, and (v) manufactured homes. The term also
    includes a computer program embedded in goods and any
    supporting information provided in connection with a
    transaction relating to the program if (i) the program is
    associated with the goods in such a manner that it
    customarily is considered part of the goods, or (ii) by
    becoming the owner of the goods, a person acquires a right
    to use the program in connection with the goods. The term
    does not include a computer program embedded in goods that
    consist solely of the medium in which the program is
    embedded. The term also does not include accounts, chattel
    paper, commercial tort claims, deposit accounts,
    documents, general intangibles, instruments, investment
    property, letter-of-credit rights, letters of credit,
    money, or oil, gas, or other minerals before extraction.
        (45) "Governmental unit" means a subdivision, agency,
    department, county, parish, municipality, or other unit of
    the government of the United States, a State, or a foreign
    country. The term includes an organization having a
    separate corporate existence if the organization is
    eligible to issue debt on which interest is exempt from
    income taxation under the laws of the United States.
        (46) "Health-care-insurance receivable" means an
    interest in or claim under a policy of insurance which is a
    right to payment of a monetary obligation for health-care
    goods or services provided.
        (47) "Instrument" means a negotiable instrument or any
    other writing that evidences a right to the payment of a
    monetary obligation, is not itself a security agreement or
    lease, and is of a type that in ordinary course of business
    is transferred by delivery with any necessary indorsement
    or assignment. The term does not include (i) investment
    property, (ii) letters of credit, (iii) nonnegotiable
    certificates of deposit, (iv) uncertificated certificates
    of deposit, (v) nontransferrable certificates of deposit,
    or (vi) writings that evidence a right to payment arising
    out of the use of a credit or charge card or information
    contained on or for use with the card.
        (48) "Inventory" means goods, other than farm
    products, which:
            (A) are leased by a person as lessor;
            (B) are held by a person for sale or lease or to be
        furnished under a contract of service;
            (C) are furnished by a person under a contract of
        service; or
            (D) consist of raw materials, work in process, or
        materials used or consumed in a business.
        (49) "Investment property" means a security, whether
    certificated or uncertificated, security entitlement,
    securities account, commodity contract, or commodity
    account.
        (50) "Jurisdiction of organization", with respect to a
    registered organization, means the jurisdiction under
    whose law the organization is formed or organized.
        (51) "Letter-of-credit right" means a right to payment
    or performance under a letter of credit, whether or not the
    beneficiary has demanded or is at the time entitled to
    demand payment or performance. The term does not include
    the right of a beneficiary to demand payment or performance
    under a letter of credit.
        (52) "Lien creditor" means:
            (A) a creditor that has acquired a lien on the
        property involved by attachment, levy, or the like;
            (B) an assignee for benefit of creditors from the
        time of assignment;
            (C) a trustee in bankruptcy from the date of the
        filing of the petition; or
            (D) a receiver in equity from the time of
        appointment.
        (53) "Manufactured home" means a structure,
    transportable in one or more sections, which, in the
    traveling mode, is eight body feet or more in width or 40
    body feet or more in length, or, when erected on site, is
    320 or more square feet, and which is built on a permanent
    chassis and designed to be used as a dwelling with or
    without a permanent foundation when connected to the
    required utilities, and includes the plumbing, heating,
    air-conditioning, and electrical systems contained
    therein. The term includes any structure that meets all of
    the requirements of this paragraph except the size
    requirements and with respect to which the manufacturer
    voluntarily files a certification required by the United
    States Secretary of Housing and Urban Development and
    complies with the standards established under Title 42 of
    the United States Code. The term "manufactured home" does
    not include campers and recreational vehicles
    factory-assembled, completely integrated structure
    designed for permanent habitation, with a permanent
    chassis, and so constructed as to permit its transport, on
    wheels temporarily or permanently attached to its frame,
    and is a movable or portable unit that is (i) 8 body feet
    or more in width, (ii) 40 body feet or more in length, and
    (iii) 320 or more square feet, constructed to be towed on
    its own chassis (comprised of frame and wheels) from the
    place of its construction to the location, or subsequent
    locations, at which it is installed and set up according to
    the manufacturer's instructions and connected to utilities
    for year-round occupancy for use as a permanent habitation,
    and designed and situated so as to permit its occupancy as
    a dwelling place for one or more persons. The term shall
    include units containing parts that may be folded,
    collapsed, or telescoped when being towed and that may be
    expected to provide additional cubic capacity, and that are
    designed to be joined into one integral unit capable of
    being separated again into the components for repeated
    towing. The term shall exclude campers and recreational
    vehicles.
        (54) "Manufactured-home transaction" means a secured
    transaction:
            (A) that creates a purchase-money security
        interest in a manufactured home, other than a
        manufactured home held as inventory; or
            (B) in which a manufactured home, other than a
        manufactured home held as inventory, is the primary
        collateral.
        (55) "Mortgage" means a consensual interest in real
    property, including fixtures, which secures payment or
    performance of an obligation.
        (56) "New debtor" means a person that becomes bound as
    debtor under Section 9-203(d) by a security agreement
    previously entered into by another person.
        (57) "New value" means (i) money, (ii) money's worth in
    property, services, or new credit, or (iii) release by a
    transferee of an interest in property previously
    transferred to the transferee. The term does not include an
    obligation substituted for another obligation.
        (58) "Noncash proceeds" means proceeds other than cash
    proceeds.
        (59) "Obligor" means a person that, with respect to an
    obligation secured by a security interest in or an
    agricultural lien on the collateral, (i) owes payment or
    other performance of the obligation, (ii) has provided
    property other than the collateral to secure payment or
    other performance of the obligation, or (iii) is otherwise
    accountable in whole or in part for payment or other
    performance of the obligation. The term does not include
    issuers or nominated persons under a letter of credit.
        (60) "Original debtor", except as used in Section
    9-310(c), means a person that, as debtor, entered into a
    security agreement to which a new debtor has become bound
    under Section 9-203(d).
        (61) "Payment intangible" means a general intangible
    under which the account debtor's principal obligation is a
    monetary obligation.
        (62) "Person related to", with respect to an
    individual, means:
            (A) the spouse of the individual;
            (B) a brother, brother-in-law, sister, or
        sister-in-law of the individual;
            (C) an ancestor or lineal descendant of the
        individual or the individual's spouse; or
            (D) any other relative, by blood or marriage, of
        the individual or the individual's spouse who shares
        the same home with the individual.
        (63) "Person related to", with respect to an
    organization, means:
            (A) a person directly or indirectly controlling,
        controlled by, or under common control with the
        organization;
            (B) an officer or director of, or a person
        performing similar functions with respect to, the
        organization;
            (C) an officer or director of, or a person
        performing similar functions with respect to, a person
        described in subparagraph (A);
            (D) the spouse of an individual described in
        subparagraph (A), (B), or (C); or
            (E) an individual who is related by blood or
        marriage to an individual described in subparagraph
        (A), (B), (C), or (D) and shares the same home with the
        individual.
        (64) "Proceeds", except as used in Section 9-609(b),
    means the following property:
            (A) whatever is acquired upon the sale, lease,
        license, exchange, or other disposition of collateral;
            (B) whatever is collected on, or distributed on
        account of, collateral;
            (C) rights arising out of collateral;
            (D) to the extent of the value of collateral,
        claims arising out of the loss, nonconformity, or
        interference with the use of, defects or infringement
        of rights in, or damage to, the collateral; or
            (E) to the extent of the value of collateral and to
        the extent payable to the debtor or the secured party,
        insurance payable by reason of the loss or
        nonconformity of, defects or infringement of rights
        in, or damage to, the collateral.
        (65) "Promissory note" means an instrument that
    evidences a promise to pay a monetary obligation, does not
    evidence an order to pay, and does not contain an
    acknowledgment by a bank that the bank has received for
    deposit a sum of money or funds.
        (66) "Proposal" means a record authenticated by a
    secured party which includes the terms on which the secured
    party is willing to accept collateral in full or partial
    satisfaction of the obligation it secures pursuant to
    Sections 9-620, 9-621, and 9-622.
        (67) "Public-finance transaction" means a secured
    transaction in connection with which:
            (A) debt securities are issued;
            (B) all or a portion of the securities issued have
        an initial stated maturity of at least 20 years; and
            (C) the debtor, obligor, secured party, account
        debtor or other person obligated on collateral,
        assignor or assignee of a secured obligation, or
        assignor or assignee of a security interest is a State
        or a governmental unit of a State.
        (68) "Public organic record" means a record that is
    available to the public for inspection and is:
            (A) a record consisting of the record initially
        filed with or issued by a State or the United States to
        form or organize an organization and any record filed
        with or issued by the State or the United States which
        amends or restates the initial record;
            (B) an organic record of a business trust
        consisting of the record initially filed with a State
        and any record filed with the State which amends or
        restates the initial record, if a statute of the State
        governing business trusts requires that the record be
        filed with the State; or
            (C) a record consisting of legislation enacted by
        the legislature of a State or the Congress of the
        United States which forms or organizes an
        organization, any record amending the legislation, and
        any record filed with or issued by the State or the
        United States which amends or restates the name of the
        organization.
        (69) "Pursuant to commitment", with respect to an
    advance made or other value given by a secured party, means
    pursuant to the secured party's obligation, whether or not
    a subsequent event of default or other event not within the
    secured party's control has relieved or may relieve the
    secured party from its obligation.
        (70) "Record", except as used in "for record", "of
    record", "record or legal title", and "record owner", means
    information that is inscribed on a tangible medium or which
    is stored in an electronic or other medium and is
    retrievable in perceivable form.
        (71) "Registered organization" means an organization
    formed or organized solely under the law of a single State
    or the United States by the filing of a public organic
    record with, the issuance of a public organic record by, or
    the enactment of legislation by the State or the United
    States. The term includes a business trust that is formed
    or organized under the law of a single State if a statute
    of the State governing business trusts requires that the
    business trust's organic record be filed with the State.
        (72) "Secondary obligor" means an obligor to the extent
    that:
            (A) the obligor's obligation is secondary; or
            (B) the obligor has a right of recourse with
        respect to an obligation secured by collateral against
        the debtor, another obligor, or property of either.
        (73) "Secured party" means:
            (A) a person in whose favor a security interest is
        created or provided for under a security agreement,
        whether or not any obligation to be secured is
        outstanding;
            (B) a person that holds an agricultural lien;
            (C) a consignor;
            (D) a person to which accounts, chattel paper,
        payment intangibles, or promissory notes have been
        sold;
            (E) a trustee, indenture trustee, agent,
        collateral agent, or other representative in whose
        favor a security interest or agricultural lien is
        created or provided for; or
            (F) a person that holds a security interest arising
        under Section 2-401, 2-505, 2-711(3), 2A-508(5),
        4-210, or 5-118.
        (74) "Security agreement" means an agreement that
    creates or provides for a security interest.
        (75) "Send", in connection with a record or
    notification, means:
            (A) to deposit in the mail, deliver for
        transmission, or transmit by any other usual means of
        communication, with postage or cost of transmission
        provided for, addressed to any address reasonable
        under the circumstances; or
            (B) to cause the record or notification to be
        received within the time that it would have been
        received if properly sent under subparagraph (A).
        (76) "Software" means a computer program and any
    supporting information provided in connection with a
    transaction relating to the program. The term does not
    include a computer program that is included in the
    definition of goods.
        (77) "State" means a State of the United States, the
    District of Columbia, Puerto Rico, the United States Virgin
    Islands, or any territory or insular possession subject to
    the jurisdiction of the United States.
        (78) "Supporting obligation" means a letter-of-credit
    right or secondary obligation that supports the payment or
    performance of an account, chattel paper, a document, a
    general intangible, an instrument, or investment property.
        (79) "Tangible chattel paper" means chattel paper
    evidenced by a record or records consisting of information
    that is inscribed on a tangible medium.
        (80) "Termination statement" means an amendment of a
    financing statement which:
            (A) identifies, by its file number, the initial
        financing statement to which it relates; and
            (B) indicates either that it is a termination
        statement or that the identified financing statement
        is no longer effective.
        (81) "Transmitting utility" means a person primarily
    engaged in the business of:
            (A) operating a railroad, subway, street railway,
        or trolley bus;
            (B) transmitting communications electrically,
        electromagnetically, or by light;
            (C) transmitting goods by pipeline or sewer; or
            (D) transmitting or producing and transmitting
        electricity, steam, gas, or water.
    (b) Definitions in other Articles. "Control" as provided in
Section 7-106 and the following definitions in other Articles
apply to this Article:
    "Applicant". Section 5-102.
    "Beneficiary". Section 5-102.
    "Broker". Section 8-102.
    "Certificated security". Section 8-102.
    "Check". Section 3-104.
    "Clearing corporation". Section 8-102.
    "Contract for sale". Section 2-106.
    "Customer". Section 4-104.
    "Entitlement holder". Section 8-102.
    "Financial asset". Section 8-102.
    "Holder in due course". Section 3-302.
    "Issuer" (with respect to a letter of credit or
letter-of-credit right). Section 5-102.
    "Issuer" (with respect to a security). Section 8-201.
    "Issuer" (with respect to documents of title). Section
7-102.
    "Lease". Section 2A-103.
    "Lease agreement". Section 2A-103.
    "Lease contract". Section 2A-103.
    "Leasehold interest". Section 2A-103.
    "Lessee". Section 2A-103.
    "Lessee in ordinary course of business". Section 2A-103.
    "Lessor". Section 2A-103.
    "Lessor's residual interest". Section 2A-103.
    "Letter of credit". Section 5-102.
    "Merchant". Section 2-104.
    "Negotiable instrument". Section 3-104.
    "Nominated person". Section 5-102.
    "Note". Section 3-104.
    "Proceeds of a letter of credit". Section 5-114.
    "Prove". Section 3-103.
    "Sale". Section 2-106.
    "Securities account". Section 8-501.
    "Securities intermediary". Section 8-102.
    "Security". Section 8-102.
    "Security certificate". Section 8-102.
    "Security entitlement". Section 8-102.
    "Uncertificated security". Section 8-102.
    (c) Article 1 definitions and principles. Article 1
contains general definitions and principles of construction
and interpretation applicable throughout this Article.
(Source: P.A. 96-1477, eff. 1-1-11; 97-1034, eff. 7-1-13.)
 
    Section 10-110. The Interest Act is amended by changing
Sections 4, 4.2, and 4a as follows:
 
    (815 ILCS 205/4)  (from Ch. 17, par. 6404)
    Sec. 4. General interest rate.
    (1) Except as otherwise provided in Section 4.05, in all
written contracts it shall be lawful for the parties to
stipulate or agree that 9% per annum, or any less sum of
interest, shall be taken and paid upon every $100 of money
loaned or in any manner due and owing from any person to any
other person or corporation in this state, and after that rate
for a greater or less sum, or for a longer or shorter time,
except as herein provided.
    The maximum rate of interest that may lawfully be
contracted for is determined by the law applicable thereto at
the time the contract is made. Any provision in any contract,
whether made before or after July 1, 1969, which provides for
or purports to authorize, contingent upon a change in the
Illinois law after the contract is made, any rate of interest
greater than the maximum lawful rate at the time the contract
is made, is void.
    It is lawful for a state bank or a branch of an
out-of-state bank, as those terms are defined in Section 2 of
the Illinois Banking Act, to receive or to contract to receive
and collect interest and charges at any rate or rates agreed
upon by the bank or branch and the borrower. It is lawful for a
savings bank chartered under the Savings Bank Act or a savings
association chartered under the Illinois Savings and Loan Act
of 1985 to receive or contract to receive and collect interest
and charges at any rate agreed upon by the savings bank or
savings association and the borrower.
    It is lawful to receive or to contract to receive and
collect interest and charges as authorized by this Act and as
authorized by the Consumer Installment Loan Act and by the
"Consumer Finance Act", approved July 10, 1935, as now or
hereafter amended, or by the Payday Loan Reform Act. It is
lawful to charge, contract for, and receive any rate or amount
of interest or compensation with respect to the following
transactions:
        (a) Any loan made to a corporation;
        (b) Advances of money, repayable on demand, to an
    amount not less than $5,000, which are made upon warehouse
    receipts, bills of lading, certificates of stock,
    certificates of deposit, bills of exchange, bonds or other
    negotiable instruments pledged as collateral security for
    such repayment, if evidenced by a writing;
        (c) Any credit transaction between a merchandise
    wholesaler and retailer; any business loan to a business
    association or copartnership or to a person owning and
    operating a business as sole proprietor or to any persons
    owning and operating a business as joint venturers, joint
    tenants or tenants in common, or to any limited
    partnership, or to any trustee owning and operating a
    business or whose beneficiaries own and operate a business,
    except that any loan which is secured (1) by an assignment
    of an individual obligor's salary, wages, commissions or
    other compensation for services, or (2) by his household
    furniture or other goods used for his personal, family or
    household purposes shall be deemed not to be a loan within
    the meaning of this subsection; and provided further that a
    loan which otherwise qualifies as a business loan within
    the meaning of this subsection shall not be deemed as not
    so qualifying because of the inclusion, with other security
    consisting of business assets of any such obligor, of real
    estate occupied by an individual obligor solely as his
    residence. The term "business" shall be deemed to mean a
    commercial, agricultural or industrial enterprise which is
    carried on for the purpose of investment or profit, but
    shall not be deemed to mean the ownership or maintenance of
    real estate occupied by an individual obligor solely as his
    residence;
        (d) Any loan made in accordance with the provisions of
    Subchapter I of Chapter 13 of Title 12 of the United States
    Code, which is designated as "Housing Renovation and
    Modernization";
        (e) Any mortgage loan insured or upon which a
    commitment to insure has been issued under the provisions
    of the National Housing Act, Chapter 13 of Title 12 of the
    United States Code;
        (f) Any mortgage loan guaranteed or upon which a
    commitment to guaranty has been issued under the provisions
    of the Veterans' Benefits Act, Subchapter II of Chapter 37
    of Title 38 of the United States Code;
        (g) Interest charged by a broker or dealer registered
    under the Securities Exchange Act of 1934, as amended, or
    registered under the Illinois Securities Law of 1953,
    approved July 13, 1953, as now or hereafter amended, on a
    debit balance in an account for a customer if such debit
    balance is payable at will without penalty and is secured
    by securities as defined in Uniform Commercial
    Code-Investment Securities;
        (h) Any loan made by a participating bank as part of
    any loan guarantee program which provides for loans and for
    the refinancing of such loans to medical students, interns
    and residents and which are guaranteed by the American
    Medical Association Education and Research Foundation;
        (i) Any loan made, guaranteed, or insured in accordance
    with the provisions of the Housing Act of 1949, Subchapter
    III of Chapter 8A of Title 42 of the United States Code and
    the Consolidated Farm and Rural Development Act,
    Subchapters I, II, and III of Chapter 50 of Title 7 of the
    United States Code;
        (j) Any loan by an employee pension benefit plan, as
    defined in Section 3 (2) of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C.A. Sec. 1002), to an
    individual participating in such plan, provided that such
    loan satisfies the prohibited transaction exemption
    requirements of Section 408 (b) (1) (29 U.S.C.A. Sec. 1108
    (b) (1)) or Section 2003 (a) (26 U.S.C.A. Sec. 4975 (d)
    (1)) of the Employee Retirement Income Security Act of
    1974;
        (k) Written contracts, agreements or bonds for deed
    providing for installment purchase of real estate,
    including a manufactured home as defined in subdivision
    (53) of Section 9-102 of the Uniform Commercial Code that
    is real property as defined in the Conveyance and
    Encumbrance of Manufactured Homes as Real Property and
    Severance Act;
        (1) Loans secured by a mortgage on real estate,
    including a manufactured home as defined in subdivision
    (53) of Section 9-102 of the Uniform Commercial Code that
    is real property as defined in the Conveyance and
    Encumbrance of Manufactured Homes as Real Property and
    Severance Act;
        (m) Loans made by a sole proprietorship, partnership,
    or corporation to an employee or to a person who has been
    offered employment by such sole proprietorship,
    partnership, or corporation made for the sole purpose of
    transferring an employee or person who has been offered
    employment to another office maintained and operated by the
    same sole proprietorship, partnership, or corporation;
        (n) Loans to or for the benefit of students made by an
    institution of higher education.
    (2) Except for loans described in subparagraph (a), (c),
(d), (e), (f) or (i) of subsection (1) of this Section, and
except to the extent permitted by the applicable statute for
loans made pursuant to Section 4a or pursuant to the Consumer
Installment Loan Act:
        (a) Whenever the rate of interest exceeds 8% per annum
    on any written contract, agreement or bond for deed
    providing for the installment purchase of residential real
    estate, or on any loan secured by a mortgage on residential
    real estate, it shall be unlawful to provide for a
    prepayment penalty or other charge for prepayment.
        (b) No agreement, note or other instrument evidencing a
    loan secured by a mortgage on residential real estate, or
    written contract, agreement or bond for deed providing for
    the installment purchase of residential real estate, may
    provide for any change in the contract rate of interest
    during the term thereof. However, if the Congress of the
    United States or any federal agency authorizes any class of
    lender to enter, within limitations, into mortgage
    contracts or written contracts, agreements or bonds for
    deed in which the rate of interest may be changed during
    the term of the contract, any person, firm, corporation or
    other entity not otherwise prohibited from entering into
    mortgage contracts or written contracts, agreements or
    bonds for deed in Illinois may enter into mortgage
    contracts or written contracts, agreements or bonds for
    deed in which the rate of interest may be changed during
    the term of the contract, within the same limitations.
    (3) In any contract or loan which is secured by a mortgage,
deed of trust, or conveyance in the nature of a mortgage, on
residential real estate, the interest which is computed,
calculated, charged, or collected pursuant to such contract or
loan, or pursuant to any regulation or rule promulgated
pursuant to this Act, may not be computed, calculated, charged
or collected for any period of time occurring after the date on
which the total indebtedness, with the exception of late
payment penalties, is paid in full.
    (4) For purposes of this Section, a prepayment shall mean
the payment of the total indebtedness, with the exception of
late payment penalties if incurred or charged, on any date
before the date specified in the contract or loan agreement on
which the total indebtedness shall be paid in full, or before
the date on which all payments, if timely made, shall have been
made. In the event of a prepayment of the indebtedness which is
made on a date after the date on which interest on the
indebtedness was last computed, calculated, charged, or
collected but before the next date on which interest on the
indebtedness was to be calculated, computed, charged, or
collected, the lender may calculate, charge and collect
interest on the indebtedness for the period which elapsed
between the date on which the prepayment is made and the date
on which interest on the indebtedness was last computed,
calculated, charged or collected at a rate equal to 1/360 of
the annual rate for each day which so elapsed, which rate shall
be applied to the indebtedness outstanding as of the date of
prepayment. The lender shall refund to the borrower any
interest charged or collected which exceeds that which the
lender may charge or collect pursuant to the preceding
sentence. The provisions of this amendatory Act of 1985 shall
apply only to contracts or loans entered into on or after the
effective date of this amendatory Act, but shall not apply to
contracts or loans entered into on or after that date that are
subject to Section 4a of this Act, the Consumer Installment
Loan Act, the Payday Loan Reform Act, or the Retail Installment
Sales Act, or that provide for the refund of precomputed
interest on prepayment in the manner provided by such Act.
    (5) For purposes of items (a) and (c) of subsection (1) of
this Section, a rate or amount of interest may be lawfully
computed when applying the ratio of the annual interest rate
over a year based on 360 days. The provisions of this
amendatory Act of the 96th General Assembly are declarative of
existing law.
    (6) For purposes of this Section, "real estate" and "real
property" include a manufactured home, as defined in
subdivision (53) of Section 9-102 of the Uniform Commercial
Code that is real property as defined in the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act.
(Source: P.A. 95-331, eff. 8-21-07; 96-1421, eff. 8-3-10.)
 
    (815 ILCS 205/4.2)  (from Ch. 17, par. 6407)
    Sec. 4.2. Revolving credit; billing statements;
disclosures. On a revolving credit which complies with
subparagraphs (a), (b), (c), (d) and (e) of this Section 4.2,
it is lawful for any bank that has its main office or, after
May 31, 1997, a branch in this State, a state or federal
savings and loan association with its main office in this
State, a state or federal credit union with its main office in
this State, or a lender licensed under the Consumer Finance
Act, the Consumer Installment Loan Act or the Sales Finance
Agency Act, as such Acts are now and hereafter amended, to
receive or contract to receive and collect interest in any
amount or at any rate agreed upon by the parties to the
revolving credit arrangement. It is lawful for any other lender
to receive or contract to receive and collect interest in an
amount not in excess of 1 1/2% per month of either the average
daily unpaid balance of the principal of the debt during the
billing cycle, or of the unpaid balance of the debt on
approximately the same day of the billing cycle. If a lender
under a revolving credit arrangement notifies the debtor at
least 30 days in advance of any lawful increase in the amount
or rate of interest to be charged under the revolving credit
arrangement, and the debtor, after the effective date of such
notice, incurs new debt pursuant to the revolving credit
arrangement, the increased interest amount or rate may be
applied only to any such new debt incurred under the revolving
credit arrangement. For purposes of determining the balances to
which the increased interest rate applies, all payments and
other credits may be deemed to be applied to the balance
existing prior to the change in rate until that balance is paid
in full. The face amount of the drafts, items, orders for the
payment of money, evidences of debt, or similar written
instruments received by the lender in connection with the
revolving credit, less the amounts applicable to principal from
time to time paid thereon by the debtor, are the unpaid balance
of the debt upon which the interest is computed. If the billing
cycle is not monthly, the maximum interest rate for the billing
cycle is the percentage which bears the same relation to the
monthly percentage provided for in the preceding sentence as
the number of days in the billing cycle bears to 30. For the
purposes of the foregoing computation, a "month" is deemed to
be any time of 30 consecutive days. In addition to the interest
charge provided for, it is lawful to receive, contract for or
collect a charge not exceeding 25 cents for each transaction in
which a loan or advance is made under the revolving credit or
in lieu of this additional charge an annual fee for the
privilege of receiving and using the revolving credit in an
amount not exceeding $20. In addition, with respect to
revolving credit secured by an interest in real estate,
including a manufactured home as defined in subdivision (53) of
Section 9-102 of the Uniform Commercial Code that is real
property as defined in the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act, it is
also lawful to receive, contract for or collect fees lawfully
paid to any public officer or agency to record, file or release
the security, and costs and disbursements actually incurred for
any title insurance, title examination, abstract of title,
survey, appraisal, escrow fees, and fees paid to a trustee in
connection with a trust deed.
    (a) At or before the date a bill or statement is first
rendered to the debtor under a revolving credit arrangement,
the lender must mail or deliver to the debtor a written
description of the conditions under which a charge for interest
may be made and the method, including the rate, of computing
these interest charges. The rate of interest must be expressed
as an annual percentage rate.
    (b) If during any billing cycle any debit or credit entry
is made to a debtor's revolving credit account, and if at the
end of that billing cycle there is an unpaid balance owing to
the lender from the debtor, the lender must give to the debtor
the following information within a reasonable time after the
end of the billing cycle:
        (i) the unpaid balance at the beginning of the billing
    cycle;
        (ii) the date and amount of all loans or advances made
    during the billing cycle, which information may be supplied
    by enclosing a copy of the drafts, items, orders for the
    payment of money, evidences of debt or similar written
    instruments presented to the lender during the billing
    cycle;
        (iii) the payments by the debtor to the lender and any
    other credits to the debtor during the billing cycle;
        (iv) the amount of interest and other charges, if any,
    charged to the debtor's account during the billing cycle;
        (v) the amount which must be currently paid by the
    debtor and the date on which that amount must be paid in
    order to avoid delinquency;
        (vi) the total amount remaining unpaid at the end of
    the billing cycle and the right of the debtor to prepay
    that amount in full without penalty; and
        (vii) information required by (iv), (v) and (vi) must
    be set forth in type of equal size and equal
    conspicuousness.
    (c) The revolving credit arrangement may provide for the
payment by the debtor and receipt by the lender of all costs
and disbursements, including reasonable attorney's fees,
incurred by the lender in legal proceedings to collect or
enforce the debt in the event of delinquency by the debtor or
in the event of a breach of any obligation of the debtor under
the arrangement.
    (d) The lender under a revolving credit arrangement may
provide credit life insurance or credit accident and health
insurance, or both, with respect to the debtor and may charge
the debtor therefor. Credit life insurance and credit accident
and health insurance, and any charge therefor made to the
debtor, shall comply with Article IX 1/2 of the Illinois
Insurance Code, as now or hereafter amended, and all lawful
requirements of the Director of Insurance related thereto. This
insurance is in force with respect to each loan or advance made
under a revolving credit arrangement as soon as the loan or
advance is made. The purchase of this insurance from an agent,
broker or insurer specified by the lender may not be a
condition precedent to the revolving credit arrangement or to
the making of any loan or advance thereunder.
    (e) Whenever interest is contracted for or received under
this Section, no amount in addition to the charges authorized
by this Act may be directly or indirectly charged, contracted
for or received whether as interest, service charges, costs of
investigations or enforcements or otherwise.
    (f) The lender under a revolving credit arrangement must
compute at year end the total amount charged to the debtor's
account during the year, including service charges, finance
charges, late charges and any other charges authorized by this
Act, and upon request must furnish such information to the
debtor within 30 days after the end of the year, or if the
account has been terminated during such year, may give such
requested information within 30 days after such termination.
The lender shall annually inform the debtor of his right to
obtain such information.
    (g) A lender who complies with the federal Truth in Lending
Act, amendments thereto, and any regulations issued or which
may be issued thereunder, shall be deemed to be in compliance
with the provisions of subparagraphs (a) and (b) of this
Section.
    (h) Anything in this Section 4.2 to the contrary
notwithstanding, if the Congress of the United States or any
federal agency authorizes any class of lenders to enter, within
limitations, into a revolving credit arrangement secured by a
mortgage or deed of trust on residential real property, any
person, firm, corporation or other entity, not otherwise
prohibited by the Congress of the United States or any federal
agency from entering into revolving credit arrangements
secured by a mortgage or deed of trust on residential real
property, may enter into such arrangements within the same
limitations.
(Source: P.A. 89-208, eff. 9-29-95.)
 
    (815 ILCS 205/4a)  (from Ch. 17, par. 6410)
    Sec. 4a. Installment loan rate.
    (a) On money loaned to or in any manner owing from any
person, whether secured or unsecured, except where the money
loaned or in any manner owing is directly or indirectly for the
purchase price of real estate or an interest therein and is
secured by a lien on or retention of title to that real estate
or interest therein, to an amount not more than $25,000
(excluding interest) which is evidenced by a written instrument
providing for the payment thereof in 2 or more periodic
installments over a period of not more than 181 months from the
date of the execution of the written instrument, it is lawful
to receive or to contract to receive and collect either:
        (i) interest in an amount equivalent to interest
    computed at a rate not exceeding 9% per year on the entire
    principal amount of the money loaned or in any manner owing
    for the period from the date of the making of the loan or
    the incurring of the obligation for the amount owing
    evidenced by the written instrument until the date of the
    maturity of the last installment thereof, and to add that
    amount to the principal, except that there shall be no
    limit on the rate of interest which may be received or
    contracted to be received and collected by (1) any bank
    that has its main office or, after May 31, 1997, a branch
    in this State; (2) a savings and loan association chartered
    under the Illinois Savings and Loan Act of 1985, a savings
    bank chartered under the Savings Bank Act, or a federal
    savings and loan association established under the laws of
    the United States and having its main office in this State;
    or (3) any lender licensed under either the Consumer
    Finance Act or the Consumer Installment Loan Act, but in
    any case in which interest is received, contracted for or
    collected on the basis of this clause (i), the debtor may
    satisfy in full at any time before maturity the debt
    evidenced by the written instrument, and in so satisfying
    must receive a refund credit against the total amount of
    interest added to the principal computed in the manner
    provided under Section 15(f)(3) of the Consumer
    Installment Loan Act for refunds or credits of applicable
    interest on payment in full of precomputed loans before the
    final installment due date; or
        (ii) interest accrued on the principal balance from
    time to time remaining unpaid, from the date of making of
    the loan or the incurring of the obligation to the date of
    the payment of the debt in full, at a rate not exceeding
    the annual percentage rate equivalent of the rate permitted
    to be charged under clause (i) above, but in any such case
    the debtor may, provided that the debtor shall have paid in
    full all interest and other charges accrued to the date of
    such prepayment, prepay the principal balance in full or in
    part at any time, and interest shall, upon any such
    prepayment, cease to accrue on the principal amount which
    has been prepaid.
    (b) Whenever the principal amount of an installment loan is
$300 or more and the repayment period is 6 months or more, a
minimum charge of $15 may be collected instead of interest, but
only one minimum charge may be collected from the same person
during one year. When the principal amount of the loan
(excluding interest) is $800 or less, the lender or creditor
may contract for and receive a service charge not to exceed $5
in addition to interest; and that service charge may be
collected when the loan is made, but only one service charge
may be contracted for, received, or collected from the same
person during one year.
    (c) Credit life insurance and credit accident and health
insurance, and any charge therefor which is deducted from the
loan or paid by the obligor, must comply with Article IX 1/2 of
the Illinois Insurance Code and all lawful requirements of the
Director of Insurance related thereto. When there are 2 or more
obligors on the loan contract, only one charge for credit life
insurance and credit accident and health insurance may be made
and only one of the obligors may be required to be insured.
Insurance obtained from, by or through the lender or creditor
must be in effect when the loan is transacted. The purchase of
that insurance from an agent, broker or insurer specified by
the lender or creditor may not be a condition precedent to the
granting of the loan.
    (d) The lender or creditor may require the obligor to
provide property insurance on security other than household
goods, furniture and personal effects. The amount and term of
the insurance must be reasonable in relation to the amount and
term of the loan contract and the type and value of the
security, and the insurance must be procured in accordance with
the insurance laws of this State. The purchase of that
insurance from an agent, broker or insurer specified by the
lender or creditor may not be a condition precedent to the
granting of the loan.
    (e) The lender or creditor may, if the contract provides,
collect a delinquency and collection charge on each installment
in default for a period of not less than 10 days in an amount
not exceeding 5% of the installment on installments in excess
of $200 or $10 on installments of $200 or less, but only one
delinquency and collection charge may be collected on any
installment regardless of the period during which it remains in
default. In addition, the contract may provide for the payment
by the borrower or debtor of attorney's fees incurred by the
lender or creditor. The lender or creditor may enforce such a
provision to the extent of the reasonable attorney's fees
incurred by him in the collection or enforcement of the
contract or obligation. Whenever interest is contracted for or
received under this Section, no amount in addition to the
charges authorized by this Section may be directly or
indirectly charged, contracted for or received, except lawful
fees paid to a public officer or agency to record, file or
release security, and except costs and disbursements including
reasonable attorney's fees, incurred in legal proceedings to
collect a loan or to realize on a security after default. This
Section does not prohibit the receipt of any commission,
dividend or other benefit by the creditor or an employee,
affiliate or associate of the creditor from the insurance
authorized by this Section.
    (f) When interest is contracted for or received under this
Section, the lender must disclose the following items to the
obligor in a written statement before the loan is consummated:
        (1) the amount and date of the loan contract;
        (2) the amount of loan credit using the term "amount
    financed";
        (3) every deduction from the amount financed or payment
    made by the obligor for insurance and the type of insurance
    for which each deduction or payment was made;
        (4) every other deduction from the loan or payment made
    by the obligor in connection with obtaining the loan;
        (5) the date on which the finance charge begins to
    accrue if different from the date of the transaction;
        (6) the total amount of the loan charge for the
    scheduled term of the loan contract with a description of
    each amount included using the term "finance charge";
        (7) the finance charge expressed as an annual
    percentage rate using the term "annual percentage rate".
    "Annual percentage rate" means the nominal annual
    percentage rate of finance charge determined in accordance
    with the actuarial method of computation with an accuracy
    at least to the nearest 1/4 of 1%; or at the option of the
    lender by application of the United States rule so that it
    may be disclosed with an accuracy at least to the nearest
    1/4 of 1%;
        (8) the number, amount and due dates or periods of
    payments scheduled to repay the loan and the sum of such
    payments using the term "total of payments";
        (9) the amount, or method of computing the amount of
    any default, delinquency or similar charges payable in the
    event of late payments;
        (10) the right of the obligor to prepay the loan and
    the fact that such prepayment will reduce the charge for
    the loan;
        (11) a description or identification of the type of any
    security interest held or to be retained or acquired by the
    lender in connection with the loan and a clear
    identification of the property to which the security
    interest relates. If after-acquired property will be
    subject to the security interest, or if other or future
    indebtedness is or may be secured by any such property,
    this fact shall be clearly set forth in conjunction with
    the description or identification of the type of security
    interest held, retained or acquired;
        (12) a description of any penalty charge that may be
    imposed by the lender for prepayment of the principal of
    the obligation with an explanation of the method of
    computation of such penalty and the conditions under which
    it may be imposed;
        (13) unless the contract provides for the accrual and
    payment of the finance charge on the balance of the amount
    financed from time to time remaining unpaid, an
    identification of the method of computing any unearned
    portion of the finance charge in the event of prepayment of
    the loan.
    The terms "finance charge" and "annual percentage rate"
shall be printed more conspicuously than other terminology
required by this Section.
    (g) At the time disclosures are made, the lender shall
deliver to the obligor a duplicate of the instrument or
statement by which the required disclosures are made and on
which the lender and obligor are identified and their addresses
stated. All of the disclosures shall be made clearly,
conspicuously and in meaningful sequence and made together on
either:
        (i) the note or other instrument evidencing the
    obligation on the same side of the page and above or
    adjacent to the place for the obligor's signature; however,
    where a creditor elects to combine disclosures with the
    contract, security agreement, and evidence of a
    transaction in a single document, the disclosures required
    under this Section shall be made on the face of the
    document, on the reverse side, or on both sides, provided
    that the amount of the finance charge and the annual
    percentage rate shall appear on the face of the document,
    and, if the reverse side is used, the printing on both
    sides of the document shall be equally clear and
    conspicuous, both sides shall contain the statement,
    "NOTICE: See other side for important information", and the
    place for the customer's signature shall be provided
    following the full content of the document; or
        (ii) one side of a separate statement which identifies
    the transaction.
    The amount of the finance charge shall be determined as the
sum of all charges, payable directly or indirectly by the
obligor and imposed directly or indirectly by the lender as an
incident to or as a condition to the extension of credit,
whether paid or payable by the obligor, any other person on
behalf of the obligor, to the lender or to a third party,
including any of the following types of charges:
        (1) Interest, time price differential, and any amount
    payable under a discount or other system of additional
    charges.
        (2) Service, transaction, activity, or carrying
    charge.
        (3) Loan fee, points, finder's fee, or similar charge.
        (4) Fee for an appraisal, investigation, or credit
    report.
        (5) Charges or premiums for credit life, accident,
    health, or loss of income insurance, written in connection
    with any credit transaction unless (a) the insurance
    coverage is not required by the lender and this fact is
    clearly and conspicuously disclosed in writing to the
    obligor; and (b) any obligor desiring such insurance
    coverage gives specific dated and separately signed
    affirmative written indication of such desire after
    receiving written disclosure to him of the cost of such
    insurance.
        (6) Charges or premiums for insurance, written in
    connection with any credit transaction, against loss of or
    damage to property or against liability arising out of the
    ownership or use of property, unless a clear, conspicuous,
    and specific statement in writing is furnished by the
    lender to the obligor setting forth the cost of the
    insurance if obtained from or through the lender and
    stating that the obligor may choose the person through
    which the insurance is to be obtained.
        (7) Premium or other charges for any other guarantee or
    insurance protecting the lender against the obligor's
    default or other credit loss.
        (8) Any charge imposed by a lender upon another lender
    for purchasing or accepting an obligation of an obligor if
    the obligor is required to pay any part of that charge in
    cash, as an addition to the obligation, or as a deduction
    from the proceeds of the obligation.
    A late payment, delinquency, default, reinstatement or
other such charge is not a finance charge if imposed for actual
unanticipated late payment, delinquency, default or other
occurrence.
    (h) Advertising for loans transacted under this Section may
not be false, misleading, or deceptive. That advertising, if it
states a rate or amount of interest, must state that rate as an
annual percentage rate of interest charged. In addition, if
charges other than for interest are made in connection with
those loans, those charges must be separately stated. No
advertising may indicate or imply that the rates or charges for
loans are in any way "recommended", "approved", "set" or
"established" by the State government or by this Act.
    (i) A lender or creditor who complies with the federal
Truth in Lending Act, amendments thereto, and any regulations
issued or which may be issued thereunder, shall be deemed to be
in compliance with the provisions of subsections (f), (g) and
(h) of this Section.
    (j) For purposes of this Section, "real estate" and "real
property" include a manufactured home as defined in subdivision
(53) of Section 9-102 of the Uniform Commercial Code that is
real property as defined in the Conveyance and Encumbrance of
Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 92-483, eff. 8-23-01.)
 
    Section 10-115. The Motor Vehicle Retail Installment Sales
Act is amended by changing Section 2.1 as follows:
 
    (815 ILCS 375/2.1)  (from Ch. 121 1/2, par. 562.1)
    Sec. 2.1.
    "Motor vehicle" means a motor vehicle as defined in The
Illinois Vehicle Code but does not include bicycles,
motorcycles, motor scooters, snowmobiles, trailers, and farm
equipment, and manufactured homes as defined in subdivision
(53) of Section 9-102 of the Uniform Commercial Code.
(Source: P.A. 77-1167.)
 
    Section 10-120. The Retail Installment Sales Act is amended
by changing Section 2.1 as follows:
 
    (815 ILCS 405/2.1)  (from Ch. 121 1/2, par. 502.1)
    Sec. 2.1. "Goods" means all goods used or purchased
primarily for personal, family, or household purposes. "Goods"
includes goods purchased primarily for agricultural purposes
only for the purposes of the credit disclosure requirements of
this Act. "Goods" includes merchandise certificates or coupons
issued by a retail seller to be used in their face amount in
the purchase of goods or services sold by such a seller but
does not include money or other things in action. It also
includes goods which are furnished or used, at the time of sale
or subsequently, in the modernization, rehabilitation, repair,
alteration, improvement, or construction of real estate so as
to become a part of that real estate whether or not severable
therefrom. "Goods" includes a manufactured home as defined in
subdivision (53) of Section 9-102 of the Uniform Commercial
Code that is not real property as defined in the Conveyance and
Encumbrance of Manufactured Homes as Real Property and
Severance Act. "Goods" does not include a motor vehicle as
defined in The Illinois Vehicle Code, but does include
bicycles, motorcycles, motor scooters, snowmobiles and
trailers when purchased primarily for personal, family or
household purposes. "Goods" does not include goods used or
purchased primarily for business or commercial purposes.
(Source: P.A. 77-1166.)
 
ARTICLE 99. EFFECTIVE DATE

 
    Section 99-999. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance
    New Act
    35 ILCS 200/1-130
    35 ILCS 515/1from Ch. 120, par. 1201
    35 ILCS 515/4from Ch. 120, par. 1204
    205 ILCS 5/3from Ch. 17, par. 309
    205 ILCS 5/5afrom Ch. 17, par. 312
    205 ILCS 5/5dfrom Ch. 17, par. 312.3
    205 ILCS 5/6.1from Ch. 17, par. 313.1
    205 ILCS 105/1-10.30from Ch. 17, par. 3301-10.30
    205 ILCS 105/5-2from Ch. 17, par. 3305-2
    205 ILCS 205/6002from Ch. 17, par. 7306-2
    205 ILCS 205/6008from Ch. 17, par. 7306-8
    205 ILCS 305/46from Ch. 17, par. 4447
    205 ILCS 305/46.1from Ch. 17, par. 4447.1
    205 ILCS 635/1-4
    210 ILCS 115/2.1from Ch. 111 1/2, par. 712.1
    210 ILCS 117/10
    430 ILCS 115/2from Ch. 67 1/2, par. 502
    430 ILCS 117/10
    625 ILCS 5/1-144.03 new
    625 ILCS 5/3-100from Ch. 95 1/2, par. 3-100
    625 ILCS 5/3-102from Ch. 95 1/2, par. 3-102
    625 ILCS 5/3-103from Ch. 95 1/2, par. 3-103
    625 ILCS 5/3-104from Ch. 95 1/2, par. 3-104
    625 ILCS 5/3-106from Ch. 95 1/2, par. 3-106
    625 ILCS 5/3-107from Ch. 95 1/2, par. 3-107
    625 ILCS 5/3-109from Ch. 95 1/2, par. 3-109
    625 ILCS 5/3-110from Ch. 95 1/2, par. 3-110
    625 ILCS 5/3-116from Ch. 95 1/2, par. 3-116
    625 ILCS 5/3-116.1 new
    625 ILCS 5/3-116.2 new
    625 ILCS 5/3-116.3 new
    625 ILCS 5/3-202from Ch. 95 1/2, par. 3-202
    625 ILCS 5/3-205from Ch. 95 1/2, par. 3-205
    625 ILCS 5/3-207from Ch. 95 1/2, par. 3-207
    625 ILCS 5/3-208from Ch. 95 1/2, par. 3-208
    735 ILCS 5/15-1213from Ch. 110, par. 15-1213
    765 ILCS 5/38from Ch. 30, par. 37
    765 ILCS 77/5
    765 ILCS 745/3from Ch. 80, par. 203
    765 ILCS 905/13.1 new
    765 ILCS 1005/5 new
    810 ILCS 5/9-102from Ch. 26, par. 9-102
    815 ILCS 205/4from Ch. 17, par. 6404
    815 ILCS 205/4.2from Ch. 17, par. 6407
    815 ILCS 205/4afrom Ch. 17, par. 6410
    815 ILCS 375/2.1from Ch. 121 1/2, par. 562.1
    815 ILCS 405/2.1from Ch. 121 1/2, par. 502.1