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92_HB2207eng HB2207 Engrossed 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 releases 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 Engrossed -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 of notice of intention to file 8 certificate of release. The notice of intention to file a 9 certificate of release shall state that if a release is not 10 received by the title insurance company or title insurance 11 agent within 60 days of the receipt of payoff of the loan 12 secured by the mortgage, a certificate of release will be 13 delivered for recording to the recorder of each county in 14 which the mortgage is recorded. The notice of intention to 15 file a certificate of release shall be sent by first class 16 mail, postage prepaid, at least 15 days before the 17 certificate of release is to be delivered to the recorder. 18 Section 15. Certificate of release. An officer or duly 19 appointed agent of a title insurance company may, on behalf 20 of a mortgagor or a person who has acquired from a mortgagor 21 title to all or part of the property described in the 22 mortgage, execute a certificate of release that complies with 23 the requirements of this Act and record the certificate of 24 release with the recorder of each county in which the 25 mortgage is recorded, provided that release of the loan 26 secured by the mortgage was made in accordance with a written 27 payoff statement furnished by the mortgagee or the mortgage 28 servicer, that a satisfaction or release of the mortgage has 29 not previously been recorded, and that a notice of intention 30 to file a certificate of release was sent in accordance with 31 Section 10. HB2207 Engrossed -3- 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 notice from the 14 mortgagee or mortgage servicer that the amount received was 15 inadequate. 16 (c) A statement that the person executing the 17 certificate of release is an officer or a duly appointed 18 agent of a title insurance company authorized and licensed to 19 transact the business of insuring titles to interest in real 20 property in this State pursuant to subsections (2) and (3) of 21 Section 3 of the Title Insurance Act. 22 (d) A statement that the certificate of release is made 23 on behalf of the mortgagor or a person who acquired title 24 from the mortgagor to all or a part of the property described 25 in the mortgage. 26 (e) A statement that the mortgagee or mortgage servicer 27 provided a written payoff statement. 28 Section 25. Execution. A certificate of release 29 authorized by Section 15 must be executed and acknowledged as 30 required by law, as in the case of a deed, and may be 31 executed by an officer or a duly appointed agent of a title 32 insurance company. The agent must be a currently registered 33 title insurance agent of the title insurance company. HB2207 Engrossed -4- 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 single appointment of title insurance agent 26 instrument may be recorded in each county in the office of 27 the recorder. A separate appointment of title insurance agent 28 shall not be necessary for each agent or each certificate of 29 release. The appointment of an agent may be re-recorded where 30 necessary to establish authority of the agent, but the 31 authority shall continue until a revocation of appointment is 32 recorded in the office of the recorder where the appointment 33 of title insurance agent was recorded or on the date, if any, 34 in the recorded appointment document. HB2207 Engrossed -5- LRB9206526OBpc 1 Section 35. Effect recording certificate of release. 2 For purposes of releasing the lien of the mortgage, a 3 certificate of release containing the information and 4 statements provided for in Section 20 and executed as 5 provided in Section 25 is prima facie evidence of the facts 6 contained therein, and upon being recorded with the recorder, 7 shall constitute a release of the lien of the mortgage 8 described in the certificate of release. The title insurance 9 company or title insurance agent recording the certificate of 10 release may use the recording fee collected for the recording 11 of a release or satisfaction of the mortgage to effect the 12 recording of the certificate of release. 13 Section 40. Wrongful or erroneous certificate of 14 release. Recording of a wrongful or erroneous certificate 15 of release by a title insurance company or its title 16 insurance agent shall not relieve the mortgagor or the 17 mortgagor's successors or assignees from any personal 18 liability on the loan or other obligations secured by the 19 mortgage. In addition to any other remedy provided by law, a 20 title insurance company executing or recording a certificate 21 of release under this Act that has actual knowledge that the 22 information and statements contained therein are false is 23 liable to the mortgagee for actual damages sustained due to 24 the recording of the certificate of release. The prevailing 25 party in any action or proceeding seeking actual damages due 26 to the recording of a certificate of release shall be 27 entitled to the recovery of reasonable attorneys fees and 28 costs incurred in that action or proceeding. 29 Section 45. Recording. If a mortgage is recorded in 30 more than one county and a certificate of release is recorded 31 in one of them, a certified copy of the certificate of 32 release may be recorded in another county with the same HB2207 Engrossed -6- LRB9206526OBpc 1 effect as the original. In all cases, the certificate of 2 release shall be entered and indexed where satisfactions or 3 releases of mortgage are entered and indexed. 4 Section 50. Form of certificate of release. A certificate 5 of release in substantially the following form complies with 6 this Act. 7 CERTIFICATE OF RELEASE 8 Date:....Title Order No.:..... 9 1. Name of mortgagor(s):..... 10 2. Name of original mortgagee:..... 11 3. Name of mortgage servicer (if any):..... 12 4. Name of last assignee of mortgage or record (if any):..... 13 5. Mortgage recording: Vol.:.....Page:.....or Document 14 No.:..... 15 6. Last assignment recording (if any): 16 Vol.:.....Page:.....or Document No.:..... 17 7. The above referenced mortgage has been paid in accordance 18 with the payoff statement received from..... 19 8. The person executing this certificate of release is an 20 officer or duly appointed agent of a title insurance company 21 authorized and licensed to transact the business of insuring 22 titles to interests in real property in this State pursuant 23 to subsections (2) and (3) of Section 3 of the Title 24 Insurance Act. 25 9. This certificate of release is made on behalf of the 26 mortgagor or a person who acquired title from the mortgagor 27 to all or part of the property described in the mortgage. 28 10. The mortgagee or mortgage servicer provided a payoff 29 statement. 30 11. The property described in the mortgage is as follows: 31 Permanent Index Number:..... 32 Common Address:..... 33 (Name of title insurance company) HB2207 Engrossed -7- LRB9206526OBpc 1 By:..... 2 (Name of officer and title or name of agent and name of 3 officer / representative thereof) 4 Address:..... 5 Telephone No.:..... 6 State of Illinois) 7 ) 8 County of ) 9 This instrument was acknowledged before me on .....(date) by 10 .....(name of person) as .....(officer for / agent of) 11 .....(title insurance company). 12 ..... 13 Notary Public 14 My commission expires on..... 15 Section 55. Form of appointment of title insurance agent 16 for issuance of certificates of release. A title insurance 17 company shall use the following form for the appointment of 18 its title insurance agents for the purpose of executing 19 certificates of release pursuant to this Act. 20 APPOINTMENT OF TITLE INSURANCE AGENT OR AGENTS FOR ISSUANCE OF 21 CERTIFICATES OF RELEASE 22 ..... (name of title insurance company) appoints ..... 23 (name of title insurance agent or agents) to act as its agent 24 or agents for the purpose of executing and delivering for 25 recording certificates of release as provided by the Mortgage 26 Certificate Of Release Act. This appointment shall commence 27 on ..... (date) and (select one) continue until revoked as 28 provided by that Act / terminate on ..... (date). The agent 29 or agents appointed has/have consented to and accept the 30 terms of this appointment. 31 Dated this ..... (date). 32 By: 33 ..... (title insurance company) HB2207 Engrossed -8- LRB9206526OBpc 1 ..... (signature) 2 ..... (typed / printed name & title) 3 ..... (address) 4 ..... (telephone number) 5 State of Illinois) 6 ) 7 County of ) 8 This instrument was acknowledged before me on .....(date) 9 by .....(name of person) as .....(officer for / agent of) 10 .....(title insurance company). 11 ..... 12 Notary Public 13 My commission expires on..... 14 Section 60. Form of revocation of appointment of title 15 insurance agent or agents for issuance of certificates of 16 release. A title insurance company shall use the following 17 form for the purpose of revoking the appointment of its title 18 insurance agent's authorization for executing certificates of 19 release pursuant to this Act. 20 REVOCATION OF APPOINTMENT OF TITLE INSURANCE 21 AGENT OR AGENTS FOR 22 ISSUANCE OF CERTIFICATES OF RELEASE 23 .... (name of title insurance company) revokes the 24 appointment of ..... (name of title insurance agent or 25 agents) to act as its agent for the purpose of executing and 26 delivering for recording certificates of release as provided 27 by the Mortgage Certificate of Release Act. This Revocation 28 shall be effective upon the recording in each county, or on 29 ..... (date), if subsequent to recording. A copy of this 30 Revocation has been delivered to the named title insurance 31 agent or agents by certified U. S. mail, return receipt 32 requested, at the following address or addresses: 33 .....(name of title insurance agent) HB2207 Engrossed -9- LRB9206526OBpc 1 .....(address) 2 Dated this ..... (date). 3 By: 4 ..... (title insurance company) 5 ..... (signature) 6 ..... (typed / printed name & title) 7 ..... (address) 8 ..... (telephone number) 9 State of Illinois) 10 ) 11 County of ) 12 This instrument was acknowledged before me on .....(date) 13 by .....(name of person) as .....(officer for / agent of) 14 .....(title insurance company). 15 ..... 16 Notary Public 17 My commission expires on..... 18 Section 95. The Mortgage Act is amended by changing 19 Section 2 as follows: 20 (765 ILCS 905/2) (from Ch. 95, par. 52) 21 Sec. 2. Every mortgagee of real property, his assignee 22 of record, or other legal representative, having received 23 full satisfaction and payment of all such sum or sums of 24 money as are really due to him from the mortgagor, and every 25 trustee, or his successor in trust, in a deed of trust in the 26 nature of a mortgage, the notes, bonds or other indebtedness 27 secured thereby having been fully paid before September 7, 28 1973, shall, at the request of the mortgagor, or grantor in a 29 deed of trust in the nature of a mortgage, his heirs, legal 30 representatives or assigns, in case such mortgage or trust 31 deed has been recorded or registered, make, execute and 32 deliver to the mortgagor or grantor in a deed of trust in the HB2207 Engrossed -10- LRB9206526OBpc 1 nature of a mortgage, his heirs, legal representatives or 2 assigns, an instrument in writing executed in conformity with 3 the provisions of this section releasing such mortgage or 4 deed of trust in the nature of a mortgage, which release 5 shall be entitled to be recorded or registered and the 6 recorder or registrar upon receipt of such a release and the 7 payment of the recording fee therefor shall record or 8 register the same. 9 Mortgages of real property and deeds of trust in the 10 nature of a mortgage shall be released of record only in the 11 manner provided herein or as provided in the Mortgage 12 Certificate of Release Act; however, nothing contained in 13 this Act shall in any manner affect the validity of any 14 release of a mortgage or deed of trust made prior to January 15 1, 1952 on the margin of the record. 16 Every mortgagee of real property, his assignee of record, 17 or other legal representative, having received full 18 satisfaction and payment of all such sum or sums of money as 19 are really due to him from the mortgagor, and every trustee, 20 or his successor in trust, in a deed of trust in the nature 21 of a mortgage, the notes, bonds or other indebtedness secured 22 thereby having been fully paid after September 7, 1973, shall 23 make, execute and deliver to the mortgagor or grantor in a 24 deed of trust in the nature of a mortgage, his heirs, legal 25 representatives or assigns, an instrument in writing 26 releasing such mortgage or deed of trust in the nature of a 27 mortgage or shall deliver that release to the recorder or 28 registrar for recording or registering. If the release is 29 delivered to the mortgagor or grantor, it must have imprinted 30 on its face in bold letters at least 1/4 inch in height the 31 following: "FOR THE PROTECTION OF THE OWNER, THIS RELEASE 32 SHALL BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES 33 IN WHOSE OFFICE THE MORTGAGE OR DEED OF TRUST WAS FILED". 34 The recorder, or registrar, upon receipt of such a release HB2207 Engrossed -11- LRB9206526OBpc 1 and the payment of the recording or registration fee, shall 2 record or register the release. 3 (Source: P.A. 83-358.)