(765 ILCS 1090/20)

(This Section may contain text from a Public Act with a delayed effective date)

Sec. 20. Notice of appointment; claim against receivership; distribution to creditors.

(a) Except as otherwise provided in subsection (h), a receiver shall give notice of appointment of the receiver to all creditors of the owner by:

(1) deposit for delivery through first-class mail or other commercially reasonable delivery method to the last-known address of each creditor; and

(2) such other means as directed by the court.

(b) Except as otherwise provided in subsection (h), the notice required by subsection (a) must specify the date by which each creditor holding a claim against the owner which arose before appointment of the receiver must file the claim with the court. The date specified must be at least 60 days after the date of the notice under subsection (a). Unless the court orders otherwise, a claim that is not timely filed with the court is not entitled to a distribution from the receivership.

(c) A claim filed by a creditor under this subsection shall be titled "Proof of Claim" and must:

(1) state the name and address of the creditor;

(2) state the amount and basis of the claim;

(3) identify any property securing the claim;

(4) be signed by the creditor or an authorized agent under penalty of perjury; and

(5) include a copy of any record on which the claim is based.

(d) An assignment by a creditor of a claim against the owner or receivership is effective against the receiver only if the assignee gives timely notice of the assignment to the receiver in a signed record prior to the entry of an order approving a receiver's final report.

(e) A claim filed with the court in accordance with subsections (b) and (c) constitutes prima facie evidence of the validity and amount of the claim. At any time before entry of an order approving a receiver's final report, the receiver or other person with an interest in the receivership may file with the court an objection to a claim of a creditor, stating the basis for the objection. The court shall allow or disallow the claim according to the law of this State other than this Act.

(f) Upon motion of the receiver or other person with an interest in the receivership, the following claims may be estimated for purpose of allowance under this Section:

(1) any contingent or unliquidated claims, the fixing or liquidation of which would unduly delay the administration of the receivership; or

(2) any right to payment arising from a right to an equitable remedy for breach of performance.

(g) Claims subject to estimation under subsection (f) shall be allowed in the estimated amount as determined by the court.

(h) If the court concludes that receivership property is likely to be insufficient to satisfy claims of each creditor holding a perfected lien on the property, the court may order that:

(1) the receiver need not give notice under subsection (a) of the appointment to all creditors of the owner, but only such creditors as the court directs; and

(2) unsecured creditors need not submit claims under this Section.

(i) Subject to Section 21:

(1) a distribution of receivership property to a creditor holding a perfected lien on the property must be made in accordance with the creditor's priority under law of this State other than this Act;

(2) a distribution of receivership property to a creditor with an allowed unsecured claim must be made as the court directs on a pro rata basis according to law of this State other than this Act; and

(3) if all of the creditors holding claims have been paid in full, any residue shall be paid to the owner.

(Source: P.A. 104-34, eff. 1-1-26.)