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Public Act 92-0765
HB2207 Enrolled LRB9206526OBpc
AN ACT concerning mortgages.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short Title. This Act may be cited as the
Mortgage Certificate of Release Act.
Section 5. Definitions. As used in this Act:
"Mortgage" means a mortgage or mortgage lien on an
interest in one-to-four family residential real property in
this State given to secure a loan in the original principal
amount of less than $500,000. Trust deeds are not included.
"Mortgagee" means either: (i) the grantee of a mortgage;
or (ii) if a mortgage has been assigned of record, the last
person to whom the mortgage has been assigned of record.
"Mortgage servicer" means the last person to whom a
mortgagor or the mortgagor's successor in interest has been
instructed by a mortgagee to send payments on a loan secured
by a mortgage. A person transmitting a payoff statement is
the mortgage servicer for the mortgage described in the
payoff statement.
"Mortgagor" means the grantor of a mortgage.
"Notice of intention to file certificate of release"
means a statement from a title insurance company or title
insurance agent to the person to whom payment of the loan
secured by the mortgage was made in accordance with the
payoff statement of the intention to record a certificate of
release.
"Payoff statement" means a statement for the amount of
the (i) unpaid balance of a loan secured by a mortgage,
including principal, interest, and any other charges due
under or secured by the mortgage; and (ii) interest on a per
day basis for the unpaid balance.
"Record" means to deliver the certificate of release for
recording with the county recorder.
"Title insurance agent" has the same meaning ascribed to
it as in Section 3 of the Title Insurance Act.
"Title insurance company" has the same meaning ascribed
to it as in Section 3 of the Title Insurance Act.
Section 10. Content and delivery of notice of intention
to file certificate of release.
(a) The notice of intention to file a certificate of
release shall state that if the title insurance company or
title insurance agent does not receive from the mortgagee or
mortgage servicer or its successor in interest either a
release or a written objection to the issuance of a
certificate of release pursuant to subsection (c) of this
Section, a certificate of release may be delivered for
recording to the recorder of each county in which the
mortgage is recorded. A notice of intention to file a
certificate of release should be in a form and include
content that substantially complies with Section 65 of this
Act. The notice of intention shall include a copy of the
closing statement or HUD-1 form and the payoff check or a
copy of it, or a copy of the wire transfer order.
(b) The notice of intention to file a certificate of
release shall be sent by certified mail, return receipt
requested, with postage prepaid, or by another service
providing receipted delivery, no sooner than the day of
closing and no later than 30 days after receipt of payment.
The notice shall be delivered to the location identified in
the payoff statement or as otherwise directed in writing by
the mortgagee or mortgage servicer or its successor in
interest. The notice may be sent with the payment, and need
not be sent separately.
(c) Within 90 days after receipt of the notice of
intention to file a certificate of release, the mortgagee or
mortgage servicer or its successor in interest may issue a
release or may object in writing to the issuance of a
certificate of release, and by doing so shall prevent the
title insurance company or title insurance agent from
executing and recording a certificate of release pursuant to
this Act. Any written objection submitted by the mortgagee or
mortgage servicer or its successor in interest shall state
the reason for which the release or certificate of release
should not be issued. The written objection shall be sent to
the title insurance company or title insurance agent by
certified mail, return receipt requested, with postage
prepaid, or by another service providing receipted delivery.
A title insurance company or title insurance agent shall not
cause a certificate of release to be recorded pursuant to
this Section if the title insurance company or title
insurance agent receives a written objection from the
mortgagee or mortgage servicer or its successor in interest.
Section 15. Certificate of release. An officer or duly
appointed agent of a title insurance company may, on behalf
of a mortgagor or a person who has acquired from a mortgagor
title to all or part of the property described in the
mortgage, execute a certificate of release that complies with
the requirements of this Act and record the certificate of
release with the recorder of each county in which the
mortgage is recorded, provided that payment of the loan
secured by the mortgage was made in accordance with a written
payoff statement furnished by the mortgagee or the mortgage
servicer, that a satisfaction or release of the mortgage has
not previously been recorded, and that a notice of intention
to file a certificate of release was sent in accordance with
Section 10.
Section 20. Contents of certificate of release. A
certificate of release executed under this Act must contain
substantially all of the following:
(a) The name of the mortgagor, the name of the original
mortgagee, and, if applicable, the mortgage servicer at the
date of the mortgage, the date of recording, and the volume
and page or document number or other official recording
designation in the real property records where the mortgage
is recorded, together with similar information for the last
recorded assignment of the mortgage.
(b) A statement that the mortgage was paid in accordance
with the written payoff statement received from the mortgagee
or mortgage servicer and there is no objection from the
mortgagee or mortgage servicer or its successor in interest.
(c) A statement that the person executing the
certificate of release is an officer or a duly appointed
agent of a title insurance company authorized and licensed to
transact the business of insuring titles to interests in real
property in this State pursuant to subsections (2) and (3) of
Section 3 of the Title Insurance Act.
(d) A statement that the certificate of release is made
on behalf of the mortgagor or a person who acquired title
from the mortgagor to all or a part of the property described
in the mortgage.
(e) A statement that the mortgagee or mortgage servicer
provided a written payoff statement.
Section 25. Execution. A certificate of release
authorized by Section 15 must be executed and acknowledged as
required by law, as in the case of a deed, and may be
executed by an officer or a duly appointed agent of a title
insurance company. The agent must be a currently registered
title insurance agent of the title insurance company.
Section 30. Appointment of title insurance agent.
(a) The appointment of a title insurance agent must be
executed and acknowledged as required by law, as in the case
of a deed, and must state all of the following:
(1) the identity of the title insurance company as
the principal;
(2) the identity of the person, partnership, limited
partnership, limited liability company, limited liability
partnership, or corporation authorized to act as title
insurance agent to execute and record certificates of
release provided for in this Act on behalf of the title
insurance company;
(3) that the title insurance agent has the full
authority to execute and record certificates of release
provided for in this Act on behalf of the title insurance
company;
(4) the term of appointment of the title insurance
agent; and
(5) that the title insurance agent has consented to
and accepts the terms of the appointment.
(b) The delegation to a title insurance agent by a title
insurance company shall not relieve the title insurance
company of any liability for actual damages as provided in
Section 40.
(c) A title insurance company may create an instrument,
executed by an officer of that company and acknowledged in
the same manner as a deed, appointing one or more title
insurance agents authorized to issue certificates of release
under this Act. This instrument shall designate the county
or counties in which it is to be effective and shall be
recorded with the recorder in each of those counties, either
as an original instrument or by recording a copy certified by
the recorder of one of the counties. A separate appointment
of title insurance agent shall not be necessary for each
certificate of release. The appointment of an agent may be
re-recorded where necessary to establish authority of the
agent, but the authority shall continue until a revocation of
appointment is recorded in the office of the recorder where
the appointment of title insurance agent was recorded or on
the date, if any, in the recorded appointment document.
Section 35. Effect of recording certificate of release.
For purposes of releasing the lien of the mortgage, a
certificate of release containing the information and
statements provided for in Section 20 and executed as
provided in Section 25 is prima facie evidence of the facts
contained therein, and upon being recorded with the recorder,
shall constitute a release of the lien of the mortgage
described in the certificate of release. The title insurance
company or title insurance agent recording the certificate of
release may use the recording fee collected for the recording
of a release or satisfaction of the mortgage to effect the
recording of the certificate of release.
Section 40. Wrongful or erroneous certificate of
release. Recording of a wrongful or erroneous certificate
of release by a title insurance company or its title
insurance agent shall not relieve the mortgagor or the
mortgagor's successors or assignees from any personal
liability on the loan or other obligations secured by the
mortgage. In addition to any other remedy provided by law, a
title insurance company executing or recording a certificate
of release under this Act that has actual knowledge that the
information and statements contained therein are false is
liable to the mortgagee for actual damages sustained due to
the recording of the certificate of release. The prevailing
party in any action or proceeding seeking actual damages due
to the recording of a certificate of release shall be
entitled to the recovery of reasonable attorneys fees and
costs incurred in that action or proceeding.
Section 45. Recording. If a mortgage is recorded in
more than one county and a certificate of release is recorded
in one of them, a certified copy of the certificate of
release may be recorded in another county with the same
effect as the original. In all cases, the certificate of
release shall be entered and indexed where satisfactions or
releases of mortgage are entered and indexed.
Section 50. Form of certificate of release. A certificate
of release in substantially the following form complies with
this Act.
CERTIFICATE OF RELEASE
Date:....Title Order No.:.....
1. Name of mortgagor(s):.....
2. Name of original mortgagee:.....
3. Name of mortgage servicer (if any):.....
4. Name of last assignee of mortgage or record (if any):.....
5. Mortgage recording: Vol.:.....Page:.....or Document
No.:.....
6. Last assignment recording (if any):
Vol.:.....Page:.....or Document No.:.....
7. The above referenced mortgage has been paid in accordance
with the payoff statement received from....., and there is no
objection from the mortgagee or mortgage servicer or its
successor in interest to the recording of this certificate of
release.
8. The person executing this certificate of release is an
officer or duly appointed agent of a title insurance company
authorized and licensed to transact the business of insuring
titles to interests in real property in this State pursuant
to Section 30 of this Act.
9. This certificate of release is made on behalf of the
mortgagor or a person who acquired title from the mortgagor
to all or part of the property described in the mortgage.
10. The mortgagee or mortgage servicer provided a payoff
statement.
11. The property described in the mortgage is as follows:
Permanent Index Number:.....
Common Address:.....
(Name of title insurance company)
By:.....
(Name of officer and title or name of agent and name of
officer / representative thereof)
Address:.....
Telephone No.:.....
State of Illinois)
)
County of )
This instrument was acknowledged before me on .....(date) by
.....(name of person) as .....(officer for / agent of)
.....(title insurance company).
.....
Notary Public
My commission expires on.....
Section 55. Form of appointment of title insurance agent
for issuance of certificates of release. A title insurance
company shall use the following form for the appointment of
its title insurance agents for the purpose of executing
certificates of release pursuant to this Act.
APPOINTMENT OF TITLE INSURANCE AGENT OR AGENTS FOR ISSUANCE OF
CERTIFICATES OF RELEASE
..... (name of title insurance company) appoints .....
(name of title insurance agent or agents) to act as its agent
or agents for the purpose of executing and delivering for
recording certificates of release as provided by the Mortgage
Certificate of Release Act. This appointment shall commence
on ..... (date) and (select one) continue until revoked as
provided by that Act / terminate on ..... (date). The agent
or agents appointed has/have consented to and accept the
terms of this appointment.
Dated this ..... (date).
By:
..... (title insurance company)
..... (signature)
..... (typed / printed name & title)
..... (address)
..... (telephone number)
State of Illinois)
)
County of )
This instrument was acknowledged before me on .....(date)
by .....(name of person) as .....(officer for / agent of)
.....(title insurance company).
.....
Notary Public
My commission expires on.....
Section 60. Form of revocation of appointment of title
insurance agent or agents for issuance of certificates of
release. A title insurance company shall use the following
form for the purpose of revoking the appointment of its title
insurance agent's authorization for executing certificates of
release pursuant to this Act.
REVOCATION OF APPOINTMENT OF TITLE INSURANCE
AGENT OR AGENTS FOR
ISSUANCE OF CERTIFICATES OF RELEASE
.... (name of title insurance company) revokes the
appointment of ..... (name of title insurance agent or
agents) to act as its agent for the purpose of executing and
delivering for recording certificates of release as provided
by the Mortgage Certificate of Release Act. This Revocation
shall be effective upon the recording in each county, or on
..... (date), if subsequent to recording. A copy of this
Revocation has been delivered to the named title insurance
agent or agents by certified U. S. mail, return receipt
requested, at the following address or addresses:
.....(name of title insurance agent)
.....(address)
Dated this ..... (date).
By:
..... (title insurance company)
..... (signature)
..... (typed / printed name & title)
..... (address)
..... (telephone number)
State of Illinois)
)
County of )
This instrument was acknowledged before me on .....(date)
by .....(name of person) as .....(officer for / agent of)
.....(title insurance company).
.....
Notary Public
My commission expires on.....
Section 65. Form of notice of intention to file
certificate of release. A notice of intention to file
certificate of release shall be in the following form. Use
of a form substantially similar to this form complies with
this Act.
NOTICE OF INTENTION TO FILE CERTIFICATE OF RELEASE
(Name of title insurance company or title insurance
agent), authorized to issue certificates of release, having
participated in the real estate closing resulting in the
funding of the payoff of the mortgage originally recorded as
Document No. ..., or Book at page or other filing made to
(name of original mortgagee) hereby gives this notice of
intention to file certificate of release. If, within 90 days
from the receipt of this notice by you, we have not received
a release or satisfaction of the mortgage or an objection to
the issuance of a certificate of release, we may record a
certificate of release of this mortgage with the office of
the recorder.
Enclosed is a copy of the closing statement or HUD-1 form
and the payoff check or a copy of it, or copy of the wire
transfer order.
Dated: (Insert date)
By: (Title Insurance Company or Title Insurance Agent as
authorized agent of title insurance company)
By: (Name of officer of title insurance company or
authorized title insurance agent)
(signed) ...
Section 90. Repeal. This Act is repealed on January 1,
2004. A certificate of release executed during the period in
which this Act is in effect is valid and entitled to
recording. Any certificate of release of record is effective
as provided in Section 35 of this Act.
Section 95. The Mortgage Act is amended by changing
Section 2 as follows:
(765 ILCS 905/2) (from Ch. 95, par. 52)
Sec. 2. Every mortgagee of real property, his assignee
of record, or other legal representative, having received
full satisfaction and payment of all such sum or sums of
money as are really due to him from the mortgagor, and every
trustee, or his successor in trust, in a deed of trust in the
nature of a mortgage, the notes, bonds or other indebtedness
secured thereby having been fully paid before September 7,
1973, shall, at the request of the mortgagor, or grantor in a
deed of trust in the nature of a mortgage, his heirs, legal
representatives or assigns, in case such mortgage or trust
deed has been recorded or registered, make, execute and
deliver to the mortgagor or grantor in a deed of trust in the
nature of a mortgage, his heirs, legal representatives or
assigns, an instrument in writing executed in conformity with
the provisions of this section releasing such mortgage or
deed of trust in the nature of a mortgage, which release
shall be entitled to be recorded or registered and the
recorder or registrar upon receipt of such a release and the
payment of the recording fee therefor shall record or
register the same.
Mortgages of real property and deeds of trust in the
nature of a mortgage shall be released of record only in the
manner provided herein or as provided in the Mortgage
Certificate of Release Act; however, nothing contained in
this Act shall in any manner affect the validity of any
release of a mortgage or deed of trust made prior to January
1, 1952 on the margin of the record.
Every mortgagee of real property, his assignee of record,
or other legal representative, having received full
satisfaction and payment of all such sum or sums of money as
are really due to him from the mortgagor, and every trustee,
or his successor in trust, in a deed of trust in the nature
of a mortgage, the notes, bonds or other indebtedness secured
thereby having been fully paid after September 7, 1973, shall
make, execute and deliver to the mortgagor or grantor in a
deed of trust in the nature of a mortgage, his heirs, legal
representatives or assigns, an instrument in writing
releasing such mortgage or deed of trust in the nature of a
mortgage or shall deliver that release to the recorder or
registrar for recording or registering. If the release is
delivered to the mortgagor or grantor, it must have imprinted
on its face in bold letters at least 1/4 inch in height the
following: "FOR THE PROTECTION OF THE OWNER, THIS RELEASE
SHALL BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES
IN WHOSE OFFICE THE MORTGAGE OR DEED OF TRUST WAS FILED".
The recorder, or registrar, upon receipt of such a release
and the payment of the recording or registration fee, shall
record or register the release.
(Source: P.A. 83-358.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 21, 2002.
Approved August 06, 2002.
Effective August 06, 2002.
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