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91_HB1507
LRB9103925DJpc
1 AN ACT to amend the Mortgage Act by changing Sections 2
2 and 4.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Mortgage Act is amended by changing
6 Sections 2 and 4 as follows:
7 (765 ILCS 905/2) (from Ch. 95, par. 52)
8 Sec. 2. Release of mortgage. Every mortgagee of real
9 property, his assignee of record, or other legal
10 representative, having received full satisfaction and payment
11 of all such sum or sums of money as are really due to him
12 from the mortgagor, and every trustee, or his successor in
13 trust, in a deed of trust in the nature of a mortgage, the
14 notes, bonds or other indebtedness secured thereby having
15 been fully paid before September 7, 1973, shall, at the
16 request of the mortgagor, or grantor in a deed of trust in
17 the nature of a mortgage, his heirs, legal representatives or
18 assigns, in case such mortgage or trust deed has been
19 recorded or registered, make, execute and deliver to the
20 mortgagor or grantor in a deed of trust in the nature of a
21 mortgage, his heirs, legal representatives or assigns, an
22 instrument in writing executed in conformity with the
23 provisions of this section releasing such mortgage or deed of
24 trust in the nature of a mortgage, which release shall be
25 entitled to be recorded or registered and the recorder or
26 registrar upon receipt of such a release and the payment of
27 the recording fee therefor shall record or register the same.
28 Mortgages of real property and deeds of trust in the
29 nature of a mortgage shall be released of record only in the
30 manner provided herein; however, nothing contained in this
31 Act shall in any manner affect the validity of any release of
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1 a mortgage or deed of trust made prior to January 1, 1952 on
2 the margin of the record.
3 Every mortgagee of real property, his assignee of record,
4 or other legal representative, having received full
5 satisfaction and payment of all such sum or sums of money as
6 are really due to him from the mortgagor, and every trustee,
7 or his successor in trust, in a deed of trust in the nature
8 of a mortgage, the notes, bonds or other indebtedness secured
9 thereby having been fully paid after September 7, 1973, shall
10 make, execute and deliver to the mortgagor or grantor in a
11 deed of trust in the nature of a mortgage, his heirs, legal
12 representatives or assigns, an instrument in writing
13 releasing such mortgage or deed of trust in the nature of a
14 mortgage or shall deliver that release to the recorder or
15 registrar for recording or registering. If the release is
16 delivered to the mortgagor or grantor, it must have imprinted
17 on its face in bold letters at least 1/4 inch in height the
18 following: "FOR THE PROTECTION OF THE OWNER, THIS RELEASE
19 SHALL BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES
20 IN WHOSE OFFICE THE MORTGAGE OR DEED OF TRUST WAS FILED".
21 The recorder, or registrar, upon receipt of such a release
22 and the payment of the recording or registration fee, shall
23 record or register the release.
24 (Source: P.A. 83-358.)
25 (765 ILCS 905/4) (from Ch. 95, par. 54)
26 Sec. 4. Failure to release mortgage. If any mortgagee
27 or trustee, in a deed in the nature of a mortgage, of real
28 property, or his executor or administrator, heirs or assigns,
29 knowing the same to be paid, shall not, within one month
30 after the payment of the debt secured by such mortgage or
31 trust deed, comply with the requirements of Section 2 of this
32 Act, he shall, for every such offense, be liable for and pay
33 to the party aggrieved the sum of $200 which may be recovered
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1 by the party aggrieved in a civil action, together with
2 reasonable attorney's fees. In any such action, introduction
3 of a loan payment book or receipt which indicates that the
4 obligation has been paid shall be sufficient evidence to
5 raise a presumption that the obligation has been paid. Upon a
6 finding for the party aggrieved, the court shall order the
7 mortgagee or trustee, or his executor or administrator, heirs
8 or assigns, to make, execute and deliver the release as
9 provided in Section 2 of this Act. The successor in interest
10 to the mortgagee or trustee in a deed in the nature of a
11 mortgage shall not be liable for the penalty prescribed in
12 this Section if he complies with the requirements of Section
13 2 of this Act within one month after succeeding to the
14 interest.
15 (Source: P.A. 78-587.)