State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]


[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 001 ][ Senate Amendment 002 ][ Conference Committee Report 001 ]


92_HB2207enr

 
HB2207 Enrolled                                LRB9206526OBpc

 1        AN ACT concerning mortgages.

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

 4        Section 1.  Short Title.  This Act may be  cited  as  the
 5    Mortgage Certificate of Release Act.

 6        Section 5.  Definitions.  As used in this Act:
 7        "Mortgage"  means  a  mortgage  or  mortgage  lien  on an
 8    interest in one-to-four family residential real  property  in
 9    this  State  given to secure a loan in the original principal
10    amount of less than $500,000. Trust deeds are not included.
11        "Mortgagee" means either: (i) the grantee of a  mortgage;
12    or  (ii)  if a mortgage has been assigned of record, the last
13    person to whom the mortgage has been assigned of record.
14        "Mortgage servicer" means  the  last  person  to  whom  a
15    mortgagor  or  the mortgagor's successor in interest has been
16    instructed by a mortgagee to send payments on a loan  secured
17    by  a  mortgage.  A person transmitting a payoff statement is
18    the mortgage servicer  for  the  mortgage  described  in  the
19    payoff statement.
20        "Mortgagor" means the grantor of a mortgage.
21        "Notice  of  intention  to  file  certificate of release"
22    means a statement from a title  insurance  company  or  title
23    insurance  agent  to  the  person to whom payment of the loan
24    secured by the mortgage  was  made  in  accordance  with  the
25    payoff  statement of the intention to record a certificate of
26    release.
27        "Payoff statement" means a statement for  the  amount  of
28    the  (i)  unpaid  balance  of  a  loan secured by a mortgage,
29    including principal, interest,  and  any  other  charges  due
30    under  or secured by the mortgage; and (ii) interest on a per
31    day basis for the unpaid balance.
 
HB2207 Enrolled            -2-                 LRB9206526OBpc
 1        "Record" means to deliver the certificate of release  for
 2    recording with the county recorder.
 3        "Title  insurance agent" has the same meaning ascribed to
 4    it as in Section 3 of the Title Insurance Act.
 5        "Title insurance company" has the same  meaning  ascribed
 6    to it as in Section 3 of the Title Insurance Act.

 7        Section  10.  Content and delivery of notice of intention
 8    to file certificate of release.
 9        (a)  The notice of intention to  file  a  certificate  of
10    release  shall  state  that if the title insurance company or
11    title insurance agent does not receive from the mortgagee  or
12    mortgage  servicer  or  its  successor  in  interest either a
13    release  or  a  written  objection  to  the  issuance  of   a
14    certificate  of  release  pursuant  to subsection (c) of this
15    Section, a  certificate  of  release  may  be  delivered  for
16    recording  to  the  recorder  of  each  county  in  which the
17    mortgage is  recorded.  A  notice  of  intention  to  file  a
18    certificate  of  release  should  be  in  a  form and include
19    content that substantially complies with Section 65  of  this
20    Act.  The  notice  of  intention  shall include a copy of the
21    closing statement or HUD-1 form and the  payoff  check  or  a
22    copy of it, or a copy of the wire transfer order.
23        (b)  The  notice  of  intention  to file a certificate of
24    release shall be  sent  by  certified  mail,  return  receipt
25    requested,  with  postage  prepaid,  or  by  another  service
26    providing  receipted  delivery,  no  sooner  than  the day of
27    closing and no later than 30 days after receipt  of  payment.
28    The  notice  shall be delivered to the location identified in
29    the payoff statement or as otherwise directed in  writing  by
30    the  mortgagee  or  mortgage  servicer  or  its  successor in
31    interest. The notice may be sent with the payment,  and  need
32    not be sent separately.
33        (c)  Within  90  days  after  receipt  of  the  notice of
 
HB2207 Enrolled            -3-                 LRB9206526OBpc
 1    intention to file a certificate of release, the mortgagee  or
 2    mortgage  servicer  or  its successor in interest may issue a
 3    release or may  object  in  writing  to  the  issuance  of  a
 4    certificate  of  release,  and  by doing so shall prevent the
 5    title  insurance  company  or  title  insurance  agent   from
 6    executing  and recording a certificate of release pursuant to
 7    this Act. Any written objection submitted by the mortgagee or
 8    mortgage servicer or its successor in  interest  shall  state
 9    the  reason  for  which the release or certificate of release
10    should not be issued. The written objection shall be sent  to
11    the  title  insurance  company  or  title  insurance agent by
12    certified  mail,  return  receipt  requested,  with   postage
13    prepaid,  or by another service providing receipted delivery.
14    A title insurance company or title insurance agent shall  not
15    cause  a  certificate  of  release to be recorded pursuant to
16    this  Section  if  the  title  insurance  company  or   title
17    insurance   agent  receives  a  written  objection  from  the
18    mortgagee or mortgage servicer or its successor in interest.

19        Section 15. Certificate of release.  An officer  or  duly
20    appointed  agent  of a title insurance company may, on behalf
21    of a mortgagor or a person who has acquired from a  mortgagor
22    title  to  all  or  part  of  the  property  described in the
23    mortgage, execute a certificate of release that complies with
24    the requirements of this Act and record  the  certificate  of
25    release  with  the  recorder  of  each  county  in  which the
26    mortgage is recorded,  provided  that  payment  of  the  loan
27    secured by the mortgage was made in accordance with a written
28    payoff  statement  furnished by the mortgagee or the mortgage
29    servicer, that a satisfaction or release of the mortgage  has
30    not  previously been recorded, and that a notice of intention
31    to file a certificate of release was sent in accordance  with
32    Section 10.
 
HB2207 Enrolled            -4-                 LRB9206526OBpc
 1        Section  20.   Contents  of  certificate  of release.   A
 2    certificate of release executed under this Act  must  contain
 3    substantially all of the following:
 4        (a)  The  name of the mortgagor, the name of the original
 5    mortgagee, and, if applicable, the mortgage servicer  at  the
 6    date  of  the mortgage, the date of recording, and the volume
 7    and page or  document  number  or  other  official  recording
 8    designation  in  the real property records where the mortgage
 9    is recorded, together with similar information for  the  last
10    recorded assignment of the mortgage.
11        (b)  A statement that the mortgage was paid in accordance
12    with the written payoff statement received from the mortgagee
13    or  mortgage  servicer  and  there  is  no objection from the
14    mortgagee or mortgage servicer or its successor in interest.
15        (c)  A  statement   that   the   person   executing   the
16    certificate  of  release  is  an  officer or a duly appointed
17    agent of a title insurance company authorized and licensed to
18    transact the business of insuring titles to interests in real
19    property in this State pursuant to subsections (2) and (3) of
20    Section 3 of the Title Insurance Act.
21        (d)  A statement that the certificate of release is  made
22    on  behalf  of  the  mortgagor or a person who acquired title
23    from the mortgagor to all or a part of the property described
24    in the mortgage.
25        (e)  A statement that the mortgagee or mortgage  servicer
26    provided a written payoff statement.

27        Section   25.  Execution.     A  certificate  of  release
28    authorized by Section 15 must be executed and acknowledged as
29    required by law, as in  the  case  of  a  deed,  and  may  be
30    executed  by  an officer or a duly appointed agent of a title
31    insurance company.  The agent must be a currently  registered
32    title insurance agent of the title insurance company.
 
HB2207 Enrolled            -5-                 LRB9206526OBpc
 1        Section 30. Appointment of title insurance agent.
 2        (a)  The  appointment  of a title insurance agent must be
 3    executed and acknowledged as required by law, as in the  case
 4    of a deed, and must state all of the following:
 5             (1)  the  identity of the title insurance company as
 6        the principal;
 7             (2) the identity of the person, partnership, limited
 8        partnership, limited liability company, limited liability
 9        partnership, or corporation authorized to  act  as  title
10        insurance  agent  to  execute  and record certificates of
11        release provided for in this Act on behalf of  the  title
12        insurance company;
13             (3)  that  the  title  insurance  agent has the full
14        authority to execute and record certificates  of  release
15        provided for in this Act on behalf of the title insurance
16        company;
17             (4)  the  term of appointment of the title insurance
18        agent; and
19             (5) that the title insurance agent has consented  to
20        and accepts the terms of the appointment.
21        (b)  The delegation to a title insurance agent by a title
22    insurance company  shall  not  relieve  the  title  insurance
23    company  of  any  liability for actual damages as provided in
24    Section 40.
25        (c)  A title insurance company may create an  instrument,
26    executed  by  an  officer of that company and acknowledged in
27    the same manner as a  deed,  appointing  one  or  more  title
28    insurance  agents authorized to issue certificates of release
29    under this Act.  This instrument shall designate  the  county
30    or  counties  in  which  it  is  to be effective and shall be
31    recorded with the recorder in each of those counties,  either
32    as an original instrument or by recording a copy certified by
33    the  recorder  of one of the counties. A separate appointment
34    of title insurance agent shall  not  be  necessary  for  each
 
HB2207 Enrolled            -6-                 LRB9206526OBpc
 1    certificate  of  release.  The appointment of an agent may be
 2    re-recorded where necessary to  establish  authority  of  the
 3    agent, but the authority shall continue until a revocation of
 4    appointment  is  recorded in the office of the recorder where
 5    the appointment of title insurance agent was recorded  or  on
 6    the date, if any, in the recorded appointment document.

 7        Section  35.  Effect of recording certificate of release.
 8    For purposes  of  releasing  the  lien  of  the  mortgage,  a
 9    certificate   of   release  containing  the  information  and
10    statements  provided  for  in  Section  20  and  executed  as
11    provided in Section 25 is prima facie evidence of  the  facts
12    contained therein, and upon being recorded with the recorder,
13    shall  constitute  a  release  of  the  lien  of the mortgage
14    described in the certificate of release. The title  insurance
15    company or title insurance agent recording the certificate of
16    release may use the recording fee collected for the recording
17    of  a  release  or satisfaction of the mortgage to effect the
18    recording of the certificate of release.

19        Section  40.  Wrongful  or   erroneous   certificate   of
20    release.     Recording of a wrongful or erroneous certificate
21    of  release  by  a  title  insurance  company  or  its  title
22    insurance agent  shall  not  relieve  the  mortgagor  or  the
23    mortgagor's   successors   or  assignees  from  any  personal
24    liability on the loan or other  obligations  secured  by  the
25    mortgage.  In addition to any other remedy provided by law, a
26    title insurance company executing or recording a  certificate
27    of  release under this Act that has actual knowledge that the
28    information and statements contained  therein  are  false  is
29    liable  to  the mortgagee for actual damages sustained due to
30    the recording of the certificate of release.   The prevailing
31    party in any action or proceeding seeking actual damages  due
32    to  the  recording  of  a  certificate  of  release  shall be
 
HB2207 Enrolled            -7-                 LRB9206526OBpc
 1    entitled to the recovery of  reasonable  attorneys  fees  and
 2    costs incurred in that action or proceeding.

 3        Section  45.  Recording.   If  a  mortgage is recorded in
 4    more than one county and a certificate of release is recorded
 5    in one of them,  a  certified  copy  of  the  certificate  of
 6    release  may  be  recorded  in  another  county with the same
 7    effect as the original.  In all  cases,  the  certificate  of
 8    release  shall  be entered and indexed where satisfactions or
 9    releases of mortgage are entered and indexed.

10        Section 50. Form of certificate of release. A certificate
11    of release in substantially the following form complies  with
12    this Act.

13                       CERTIFICATE OF RELEASE
14    Date:....Title Order No.:.....
15    1. Name of mortgagor(s):.....
16    2. Name of original mortgagee:.....
17    3. Name of mortgage servicer (if any):.....
18    4. Name of last assignee of mortgage or record (if any):.....
19    5.   Mortgage   recording:   Vol.:.....Page:.....or  Document
20    No.:.....
21    6. Last assignment recording (if any):
22    Vol.:.....Page:.....or Document No.:.....
23    7. The above referenced mortgage has been paid in  accordance
24    with the payoff statement received from....., and there is no
25    objection  from  the  mortgagee  or  mortgage servicer or its
26    successor in interest to the recording of this certificate of
27    release.
28    8. The person executing this certificate  of  release  is  an
29    officer  or duly appointed agent of a title insurance company
30    authorized and licensed to transact the business of  insuring
31    titles  to  interests in real property in this State pursuant
32    to Section 30 of this Act.
 
HB2207 Enrolled            -8-                 LRB9206526OBpc
 1    9. This certificate of release  is  made  on  behalf  of  the
 2    mortgagor  or  a person who acquired title from the mortgagor
 3    to all or part of the property described in the mortgage.
 4    10. The mortgagee or  mortgage  servicer  provided  a  payoff
 5    statement.
 6    11. The property described in the mortgage is as follows:
 7    Permanent Index Number:.....
 8    Common Address:.....
 9    (Name of title insurance company)
10    By:.....
11    (Name  of  officer  and  title  or  name of agent and name of
12    officer / representative thereof)
13    Address:.....
14    Telephone No.:.....
15    State of Illinois)
16                     )
17    County of        )
18    This instrument was acknowledged before me on .....(date)  by
19    .....(name  of  person)  as  .....(officer  for  /  agent of)
20    .....(title insurance company).
21    .....
22    Notary Public
23    My commission expires on.....

24        Section 55. Form of appointment of title insurance  agent
25    for  issuance  of  certificates of release. A title insurance
26    company shall use the following form for the  appointment  of
27    its  title  insurance  agents  for  the  purpose of executing
28    certificates of release pursuant to this Act.
29    APPOINTMENT OF TITLE INSURANCE AGENT OR AGENTS FOR ISSUANCE OF
30                       CERTIFICATES OF RELEASE
31    ..... (name of title insurance company) appoints .....
32    (name of title insurance agent or agents) to act as its agent
33    or agents for the purpose of  executing  and  delivering  for
 
HB2207 Enrolled            -9-                 LRB9206526OBpc
 1    recording certificates of release as provided by the Mortgage
 2    Certificate  of  Release Act. This appointment shall commence
 3    on ..... (date) and (select one) continue  until  revoked  as
 4    provided  by that Act / terminate on ..... (date).  The agent
 5    or agents appointed has/have  consented  to  and  accept  the
 6    terms of this appointment.
 7    Dated this ..... (date).
 8    By:
 9    ..... (title insurance company)
10    ..... (signature)
11    ..... (typed / printed name & title)
12    ..... (address)
13    ..... (telephone number)
14    State of Illinois)
15                     )
16    County of        )
17    This instrument was acknowledged before me on .....(date)
18    by .....(name of person) as .....(officer for / agent of)
19    .....(title insurance company).
20    .....
21    Notary Public
22    My commission expires on.....

23        Section  60.  Form  of revocation of appointment of title
24    insurance agent or agents for  issuance  of  certificates  of
25    release.  A  title  insurance company shall use the following
26    form for the purpose of revoking the appointment of its title
27    insurance agent's authorization for executing certificates of
28    release pursuant to this Act.
29              REVOCATION OF APPOINTMENT OF TITLE INSURANCE
30                         AGENT OR AGENTS FOR
31                   ISSUANCE OF CERTIFICATES OF RELEASE
32    ....  (name  of  title   insurance   company)   revokes   the
33    appointment  of  .....  (name  of  title  insurance  agent or
 
HB2207 Enrolled            -10-                LRB9206526OBpc
 1    agents) to act as its agent for the purpose of executing  and
 2    delivering  for recording certificates of release as provided
 3    by the Mortgage Certificate of Release Act.  This  Revocation
 4    shall  be  effective upon the recording in each county, or on
 5    ..... (date), if subsequent to  recording.  A  copy  of  this
 6    Revocation  has  been  delivered to the named title insurance
 7    agent or agents by  certified  U.  S.  mail,  return  receipt
 8    requested, at the following address or addresses:
 9    .....(name of title insurance agent)
10    .....(address)
11    Dated this ..... (date).
12    By:
13    ..... (title insurance company)
14    ..... (signature)
15    ..... (typed / printed name & title)
16    ..... (address)
17    ..... (telephone number)
18    State of Illinois)
19                     )
20    County of        )
21    This instrument was acknowledged before me on .....(date)
22    by .....(name of person) as .....(officer for / agent of)
23    .....(title insurance company).
24    .....
25    Notary Public
26    My commission expires on.....

27        Section   65.  Form   of  notice  of  intention  to  file
28    certificate of release.    A  notice  of  intention  to  file
29    certificate  of  release shall be in the following form.  Use
30    of a form substantially similar to this  form  complies  with
31    this Act.

32         NOTICE OF INTENTION TO FILE CERTIFICATE OF RELEASE
 
HB2207 Enrolled            -11-                LRB9206526OBpc
 1        (Name  of  title  insurance  company  or  title insurance
 2    agent), authorized to issue certificates of  release,  having
 3    participated  in  the  real  estate  closing resulting in the
 4    funding of the payoff of the mortgage originally recorded  as
 5    Document  No.  ...,  or  Book at page or other filing made to
 6    (name of original mortgagee)  hereby  gives  this  notice  of
 7    intention to file certificate of release.  If, within 90 days
 8    from  the receipt of this notice by you, we have not received
 9    a release or satisfaction of the mortgage or an objection  to
10    the  issuance  of  a  certificate of release, we may record a
11    certificate of release of this mortgage with  the  office  of
12    the recorder.
13        Enclosed is a copy of the closing statement or HUD-1 form
14    and  the  payoff  check  or a copy of it, or copy of the wire
15    transfer order.
16    Dated:  (Insert date)
17    By:  (Title Insurance Company or  Title  Insurance  Agent  as
18    authorized agent of title insurance company)
19    By:    (Name   of  officer  of  title  insurance  company  or
20    authorized title insurance agent)
21        (signed)  ...

22        Section 90.  Repeal.  This Act is repealed on January  1,
23    2004.  A certificate of release executed during the period in
24    which  this  Act  is  in  effect  is  valid  and  entitled to
25    recording.  Any certificate of release of record is effective
26    as provided in Section 35 of this Act.

27        Section 95.  The Mortgage  Act  is  amended  by  changing
28    Section 2 as follows:

29        (765 ILCS 905/2) (from Ch. 95, par. 52)
30        Sec.  2.  Every  mortgagee of real property, his assignee
31    of record, or other  legal  representative,  having  received
 
HB2207 Enrolled            -12-                LRB9206526OBpc
 1    full  satisfaction  and  payment  of  all such sum or sums of
 2    money as are really due to him from the mortgagor, and  every
 3    trustee, or his successor in trust, in a deed of trust in the
 4    nature  of a mortgage, the notes, bonds or other indebtedness
 5    secured thereby having been fully paid  before  September  7,
 6    1973, shall, at the request of the mortgagor, or grantor in a
 7    deed  of  trust in the nature of a mortgage, his heirs, legal
 8    representatives or assigns, in case such  mortgage  or  trust
 9    deed  has  been  recorded  or  registered,  make, execute and
10    deliver to the mortgagor or grantor in a deed of trust in the
11    nature of a mortgage, his  heirs,  legal  representatives  or
12    assigns, an instrument in writing executed in conformity with
13    the  provisions  of  this  section releasing such mortgage or
14    deed of trust in the nature  of  a  mortgage,  which  release
15    shall  be  entitled  to  be  recorded  or  registered and the
16    recorder or registrar upon receipt of such a release and  the
17    payment  of  the  recording  fee  therefor  shall  record  or
18    register the same.
19        Mortgages  of  real  property  and  deeds of trust in the
20    nature of a mortgage shall be released of record only in  the
21    manner  provided  herein  or  as  provided  in  the  Mortgage
22    Certificate  of  Release  Act;  however, nothing contained in
23    this Act shall in any  manner  affect  the  validity  of  any
24    release  of a mortgage or deed of trust made prior to January
25    1, 1952 on the margin of the record.
26        Every mortgagee of real property, his assignee of record,
27    or  other  legal   representative,   having   received   full
28    satisfaction  and payment of all such sum or sums of money as
29    are really due to him from the mortgagor, and every  trustee,
30    or  his  successor in trust, in a deed of trust in the nature
31    of a mortgage, the notes, bonds or other indebtedness secured
32    thereby having been fully paid after September 7, 1973, shall
33    make, execute and deliver to the mortgagor or  grantor  in  a
34    deed  of  trust in the nature of a mortgage, his heirs, legal
 
HB2207 Enrolled            -13-                LRB9206526OBpc
 1    representatives  or  assigns,  an   instrument   in   writing
 2    releasing  such  mortgage or deed of trust in the nature of a
 3    mortgage or shall deliver that release  to  the  recorder  or
 4    registrar  for  recording  or registering.  If the release is
 5    delivered to the mortgagor or grantor, it must have imprinted
 6    on its face in bold letters at least 1/4 inch in  height  the
 7    following:  "FOR  THE  PROTECTION  OF THE OWNER, THIS RELEASE
 8    SHALL BE FILED WITH THE RECORDER OR THE REGISTRAR  OF  TITLES
 9    IN  WHOSE  OFFICE  THE  MORTGAGE OR DEED OF TRUST WAS FILED".
10    The recorder, or registrar, upon receipt of such a    release
11    and  the  payment of the recording or registration fee, shall
12    record or register the release.
13    (Source: P.A. 83-358.)

14        Section 99.  Effective date.  This Act takes effect  upon
15    becoming law.

[ Top ]