Public Act 102-0319
 
SB1545 EnrolledLRB102 15159 RAM 20514 b


  
    AN ACT concerning transportation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Illinois Vehicle Code is amended  by 
changing Sections 3-114, 3-117.1, and 3-301 as follows:
 


    (625 ILCS 5/3-114)  (from Ch. 95 1/2, par. 3-114)




    Sec. 3-114. Transfer by operation of law. 

    (a) If the interest of an owner in a vehicle passes to 
another other
than by voluntary transfer, the transferee 
shall, except as provided in
paragraph (b), promptly mail or 
deliver within 20 days to the
Secretary of State the last 
certificate of title, if available, proof of
the transfer, and 
his application for a new certificate in the form the

Secretary of State prescribes. It shall be unlawful for any 
person
having possession of a certificate of title for a motor 
vehicle,
semi-trailer, or house car by reason of his having a 
lien or encumbrance
on such vehicle, to fail or refuse to 
deliver such certificate to the
owner, upon the satisfaction 
or discharge of the lien or encumbrance,
indicated upon such 
certificate of title.

    (b) If the interest of an owner in a vehicle passes to 
another under
the provisions of the Small Estates provisions 
of the Probate Act of 1975 the
transferee shall promptly mail 
or deliver to the Secretary of State, within 120
days, the last 
certificate of title, if available, the documentation required

under the provisions of the Probate Act of 1975, and an 
application for
certificate of title. The Small Estate 
Affidavit form shall be furnished by the
Secretary of State. 
The transfer may be to the transferee or to the nominee of
the 
transferee.

    (c) If the interest of an owner in a vehicle passes to 
another under
other provisions of the Probate Act of 1975, as 
amended, and the transfer is
made by a representative or 
guardian, such transferee shall promptly mail or
deliver to 
the Secretary of State, the last certificate of title, if 
available,
and a certified copy of the letters of office or 
guardianship, and an
application for certificate of title. 
Such application shall be made before the
estate is closed. 
The transfer may be to the transferee or to the nominee of
the 
transferee.

    (d) If the interest of an owner in joint tenancy passes to 
the other
joint tenant with survivorship rights as provided by 
law, the transferee
shall promptly mail or deliver to the 
Secretary of State, the last
certificate of title, if 
available, proof of death of the one joint
tenant and 
survivorship of the surviving joint tenant, and an
application 
for certificate of title. Such application shall be made

within 120 days after the death of the joint tenant. The 
transfer may
be to the transferee or to the nominee of the 
transferee.

    (d-5)   If the interest of an owner passes to the owner's 
spouse or if the spouse otherwise acquires ownership of the 
vehicle, then the transferee shall promptly mail or deliver to 
the Secretary of State, proof of (i) the owner's death; (ii) 
the transfer or acquisition of ownership; and (iii) proof of 
the marital relationship between the owner and the transferee, 
along with the last certificate of title, if available, and an 
application for certificate of title along with the 
appropriate fees and taxes, if applicable. The application 
shall be made within 180 days after the death of the owner. 
    (e) The Secretary of State shall transfer a decedent's 
vehicle title to
any legatee, representative or heir of the 
decedent who submits to the
Secretary a death certificate and 
an affidavit by an attorney at law on the
letterhead 
stationery  of the attorney at law stating the facts of the

transfer.

    (f) Repossession with assignment of title.  In all cases 
wherein a
lienholder has repossessed a vehicle by other
than 
judicial process and holds it for resale under a security 
agreement, and
the owner of record has executed an assignment 
of the existing certificate of
title after default, the 
lienholder may proceed to sell or otherwise dispose of
the 
vehicle
as authorized under the Uniform Commercial Code.  Upon 
selling the vehicle to
another person, the lienholder need not 
send the certificate of title to the
Secretary of State, but 
shall promptly and within 20 days mail or deliver to
the 
purchaser
as transferee the existing certificate of title for 
the repossessed vehicle,
reflecting the release of the 
lienholder's security interest in the vehicle.
The application 
for a certificate of title made by the
purchaser shall comply 
with subsection (a) of Section 3-104 and be accompanied
by the 
existing certificate of title for the repossessed vehicle.
The 
lienholder shall execute the assignment and warranty of title 
showing the
name and address of the purchaser in the spaces 
provided therefor on the
certificate of title or as the 
Secretary of State prescribes.  The lienholder
shall complete 
the assignment of title in the certificate of title to reflect

the transfer of the vehicle to the lienholder and also a 
reassignment to
reflect the transfer from the lienholder to 
the purchaser.  For this purpose,
the lienholder is 
specifically authorized
to complete and execute
the space 
reserved in the certificate of title for a dealer 
reassignment,
notwithstanding that the lienholder is not a 
licensed dealer.  Nothing herein
shall be construed to mean 
that the lienholder is taking title to the
repossessed vehicle 
for purposes of liability for retailer occupation, vehicle

use, or other tax with respect to the proceeds from the 
repossession sale.
Delivery of the existing certificate of 
title to the purchaser shall be deemed
disclosure to the 
purchaser of the owner of the vehicle.

    (f-5) Repossession without assignment of title.  Subject to 
subsection (f-30), in all cases wherein a
lienholder has 
repossessed a vehicle
by other than judicial process and holds 
it for resale under a security
agreement,
and the owner of 
record has not executed an assignment of the existing

certificate of title,
the lienholder shall comply with the 
following provisions:

        (1) Prior to sale, the lienholder shall deliver or 
    mail to the owner at
the owner's last known address and to 
    any other lienholder of record, a notice
of redemption

    setting forth the following information: (i) the name of 
    the owner of record
and in bold type at or near the top of 
    the notice a statement that the owner's
vehicle was 
    repossessed on a specified date for failure to make 
    payments on the
loan (or other reason), (ii) a
description 
    of the vehicle subject to the lien sufficient to identify 
    it, (iii)
the right of the owner to redeem the vehicle, 
    (iv) the lienholder's intent to
sell or otherwise dispose 
    of the vehicle after the expiration of 21 days from
the 
    date of mailing or delivery of the notice, and (v) the 
    name, address, and
telephone number of the lienholder from

    whom information may be
obtained concerning the amount due 
    to redeem the vehicle and from whom
the vehicle may be 
    redeemed under
Section 9-623 of the Uniform Commercial 
    Code.  At the
lienholder's option, the
information required 
    to be set forth in this notice of redemption
may be made a 
    part of or accompany the notification of sale or other

    disposition
required under Section 9-611 of the
Uniform

    Commercial Code, but none of the information required by 
    this notice shall
be construed to impose any requirement 
    under Article 9 of the Uniform
Commercial Code.

        (2) With respect to the repossession of a vehicle used 
    primarily for
personal, family, or household purposes, the 
    lienholder shall also deliver or
mail to the owner at the 
    owner's last known address an affidavit
of defense.  The 
    affidavit of defense shall accompany the notice of

    redemption
required in subdivision (f-5)(1) of
this 
    Section. The affidavit of defense shall (i) identify the 
    lienholder,
owner, and the
vehicle; (ii) provide space for 
    the owner to state the defense claimed by the
owner; and 
    (iii) include an acknowledgment by the owner that the 
    owner may be
liable to the lienholder for fees, charges, 
    and costs incurred by the
lienholder in establishing the 
    insufficiency or invalidity of the owner's
defense.  To 
    stop the transfer of title, the affidavit of defense must 
    be
received by the
lienholder no later than 21 days after 
    the date of mailing or delivery of the
notice required in 
    subdivision (f-5)(1) of this Section. If the lienholder

    receives the affidavit from the owner in a timely manner, 
    the lienholder must
apply to a court of competent 
    jurisdiction to determine if the lienholder is
entitled to 
    possession of the vehicle.

        (3) Upon selling the vehicle to another person, the 
    lienholder need not
send the certificate of title to the 
    Secretary of State, but shall
promptly and within 20 days 
    mail or deliver to the purchaser as transferee (i)
the 
    existing
certificate of title for the repossessed vehicle, 
    reflecting the release of the
lienholder's security 
    interest in the vehicle; and (ii) an affidavit of

    repossession made by or on behalf of the lienholder which 
    provides the
following information: that the vehicle was 
    repossessed, a description of the
vehicle sufficient to 
    identify it, whether the vehicle has been damaged in

    excess of 50% 33 1/3% of its fair market value as required 
    under subdivision (b)(3)
of Section 3-117.1, that the 
    owner and any other lienholder of record were
given the 
    notice required in subdivision (f-5)(1) of this Section,

    that the owner of record was given the affidavit of 
    defense required in
subdivision (f-5)(2) of this Section,

    that the interest of the owner was lawfully terminated or 
    sold pursuant to the
terms of the security agreement, and 
    the purchaser's name and address.
If the vehicle is 
    damaged in excess of 50% 33 1/3% of its fair market value, 
    the
lienholder shall make application for a salvage 
    certificate under Section
3-117.1 and transfer the vehicle 
    to a person eligible to receive assignments of
salvage 
    certificates identified in Section 3-118.

        (4) The application for a certificate of title made by 
    the purchaser shall
comply with subsection (a) of Section 
    3-104 and be accompanied by the affidavit
of repossession 
    furnished by the lienholder and the existing certificate 
    of
title for the repossessed vehicle.
The lienholder shall 
    execute the assignment and warranty of title showing the

    name and address of the purchaser in the spaces provided 
    therefor on the
certificate of title or as the Secretary 
    of State prescribes.  The lienholder
shall complete the 
    assignment of title in the certificate of title to reflect

    the transfer of the vehicle to the lienholder and also a 
    reassignment to
reflect the transfer from the lienholder 
    to the purchaser.  For this purpose,
the lienholder is 
    specifically authorized to execute the assignment on 
    behalf
of the owner as seller if the owner has not done so 
    and to complete and execute
the space reserved in the 
    certificate of title for a dealer reassignment,

    notwithstanding that the lienholder is not a licensed 
    dealer.  Nothing herein
shall be construed to mean that the 
    lienholder is taking title to the
repossessed vehicle for 
    purposes of liability for retailer occupation, vehicle

    use, or other tax with respect to the proceeds from the 
    repossession sale.
Delivery of the existing certificate of 
    title to the purchaser shall be deemed
disclosure to the 
    purchaser of the owner of the vehicle.
In the event the 
    lienholder does not hold
the certificate of title for the 
    repossessed vehicle, the lienholder shall
make application 
    for and may obtain a new certificate of title in the name 
    of
the lienholder upon furnishing information satisfactory 
    to the Secretary of
State.  Upon receiving the new 
    certificate of title, the lienholder may proceed
with the 
    sale described in subdivision (f-5)(3), except that upon 
    selling the
vehicle the lienholder shall promptly and 
    within 20 days mail or deliver to the
purchaser the new 
    certificate of title reflecting the assignment and 
    transfer
of title to the purchaser.

        (5) Neither the lienholder nor the owner shall file 
    with the Office of
the Secretary of State the notice of 
    redemption or affidavit of defense
 described in 
    subdivisions (f-5)(1) and (f-5)(2) of this Section. The 
    Office of
the Secretary of State shall not determine the 
    merits of an owner's affidavit
of defense, nor consider 
    any allegations or assertions regarding the validity
or 
    invalidity of a lienholder's claim to the vehicle or an 
    owner's asserted
defenses to the repossession action.

    (f-7) Notice of reinstatement in certain cases.

        (1) Subject to subsection (f-30), if, at the time of 
    repossession by a lienholder that is seeking to
transfer 
    title pursuant to subsection (f-5), the owner has paid an 
    amount equal
to 30% or more of the deferred payment price 
    or total of payments due, the
owner may, within 21 days of 
    the date of repossession, reinstate the contract
or loan 
    agreement and recover the vehicle from the lienholder by 
    tendering in a
lump sum (i) the total of all unpaid 
    amounts, including any unpaid delinquency
or deferral 
    charges due at the date of reinstatement, without 
    acceleration; and
(ii) performance necessary to cure any 
    default other than nonpayment of the
amounts due; and 
    (iii)
all reasonable costs and fees incurred by the 
    lienholder in retaking, holding,
and preparing the vehicle 
    for disposition and in arranging for the sale of the

    vehicle.  Reasonable costs and fees incurred by the 
    lienholder include without
limitation repossession and 
    storage expenses and, if authorized by the contract
or 
    loan agreement, reasonable attorneys' fees and collection 
    agency charges.

        (2) Tender of payment and performance pursuant to this 
    limited right of
reinstatement restores to the owner his 
    rights under the contract or loan
agreement as though no 
    default had occurred.  The owner has the right to
reinstate 
    the contract or loan agreement and recover the vehicle 
    from the
lienholder only once under this subsection.  The 
    lienholder may, in the
lienholder's sole discretion, 
    extend the period during which the owner may
reinstate the 
    contract or loan agreement and recover the vehicle beyond 
    the 21
days allowed under this subsection, and the 
    extension shall not subject the
lienholder to liability to 
    the owner under the laws of this State.

        (3) The lienholder shall deliver or mail written 
    notice to the owner at
the
owner's last known address, 
    within 3 business days of the date of repossession,
of the 
    owner's right to reinstate the contract or loan agreement 
    and recover
the vehicle pursuant to the limited right of 
    reinstatement described in this
subsection.  At the 
    lienholder's option, the information required to be set

    forth in this notice of reinstatement may be made part of 
    or accompany the
notice of redemption required in 
    subdivision (f-5)(1) of this Section and the
notification 
    of sale or other disposition required under
Section 9-611 
    of the Uniform Commercial Code, but none of the

    information
required by this notice of reinstatement shall 
    be construed to impose any
requirement under Article 9 of 
    the Uniform Commercial Code.

        (4) The reinstatement period, if applicable, and the 
    redemption period
described in subdivision (f-5)(1) of 
    this Section, shall run concurrently if
the information 
    required to be set forth in the notice of reinstatement is 
    part
of or accompanies the notice of redemption.  In any 
    event, the 21 day
redemption period described in 
    subdivision (f-5)(1) of this Section shall
commence on the 
    date of
mailing or delivery to the owner of the 
    information required to be set forth in
the notice of 
    redemption, and the 21 day reinstatement period described 
    in this
subdivision, if applicable, shall commence on the 
    date of mailing or delivery
to the owner of the 
    information required to be set forth in the notice of

    reinstatement.

        (5) The Office of the Secretary of State shall not 
    determine the merits of
an owner's claim of right to 
    reinstatement, nor consider any allegations or
assertions 
    regarding the validity or invalidity of a lienholder's 
    claim to the
vehicle or an owner's asserted right to 
    reinstatement.  Where a lienholder is
subject to licensing 
    and regulatory supervision by the State of Illinois, the

    lienholder shall be subject to all of the powers and 
    authority of the
lienholder's primary State regulator to 
    enforce compliance with the procedures
set forth in this 
    subsection (f-7).

    (f-10) Repossession by judicial process.  In all cases 
wherein a lienholder
has repossessed a vehicle by
judicial

process and holds it for resale under a security agreement, 
order for replevin,
or other court order establishing the 
lienholder's right to possession of the
vehicle, the 
lienholder may proceed to sell or otherwise dispose of the 
vehicle
as authorized under the Uniform Commercial Code or the 
court order. Upon
selling the vehicle to another person, the 
lienholder need not send the
certificate of title to the 
Secretary of State, but shall promptly and within
20 days mail 
or
deliver to the purchaser as transferee (i) the existing 
certificate of title
for the repossessed vehicle reflecting 
the release of the lienholder's security
interest in the 
vehicle; (ii) a certified copy of the court order; and (iii) a

bill of sale identifying the new owner's name and address and 
the year, make,
model, and vehicle identification number of 
the vehicle.
The application for a certificate of title made 
by the purchaser shall comply
with subsection (a) of Section 
3-104 and be accompanied by the certified copy
of the court 
order furnished by the
lienholder and the existing certificate 
of title for the repossessed vehicle.
The lienholder shall 
execute the assignment and warranty of title showing the
name 
and address of the purchaser in the spaces provided therefor 
on the
certificate of title or as the Secretary of State 
prescribes.  The lienholder
shall complete the assignment of 
title in the certificate of title to reflect
the transfer of 
the vehicle to the lienholder and also a reassignment to

reflect the transfer from the lienholder to the purchaser.  For 
this purpose,
the lienholder is specifically authorized to 
execute the assignment on behalf
of the owner as seller if the 
owner has not done so and to complete and execute
the space 
reserved in the certificate of title for a dealer 
reassignment,
notwithstanding that the lienholder is not a 
licensed dealer.  Nothing herein
shall be construed to mean 
that the lienholder is taking title to the
repossessed vehicle 
for purposes of liability for retailer occupation, vehicle

use, or other tax with respect to the proceeds from the 
repossession sale.
Delivery of the existing certificate of 
title to the purchaser shall be deemed
disclosure to the 
purchaser of the owner of the vehicle.
In the event the

lienholder does not hold the certificate of title for the 
repossessed vehicle,
the lienholder shall
make application for 
and may obtain a new certificate of title in the name of
the 
lienholder upon furnishing information satisfactory to the 
Secretary of
State.  Upon receiving the new certificate of 
title, the lienholder may proceed
with the sale described in 
this subsection, except that upon selling the
vehicle the 
lienholder shall promptly and within 20 days mail or deliver 
to the
purchaser the new certificate of title reflecting the 
assignment and transfer
of title to the purchaser.

    (f-15) The Secretary of State shall not issue a 
certificate of title to a
purchaser under subsection (f), 
(f-5), or (f-10) of this Section, unless the
person from whom 
the vehicle has been repossessed by the lienholder is shown to

be the last registered owner of the motor vehicle.  The 
Secretary of State may
provide by rule for the standards to be 
followed by a lienholder in assigning
and transferring 
certificates of title with respect to repossessed vehicles.

    (f-20) If applying for a salvage certificate or a junking 
certificate, the lienholder
shall within 20 days make an 
application to the Secretary of State for a salvage 
certificate or a junking certificate, as
set forth in this 
Code. The Secretary of State shall
not issue a salvage

certificate or a junking
certificate to such lienholder unless 
the person from whom such vehicle has
been repossessed is 
shown to be the last registered owner of such motor
vehicle and 
such lienholder establishes to the satisfaction of
the 
Secretary of State that he is entitled to such
salvage 
certificate or junking certificate. The Secretary
of State may 
provide by rule for the standards to be followed by
a 
lienholder in order to obtain a
salvage certificate or junking 
certificate for a
repossessed vehicle.

    (f-25) If the interest of an owner in a mobile home, as 
defined in the
Mobile Home Local Services Tax Act, passes to 
another under the provisions of
the
Mobile Home Local Services 
Tax Enforcement Act, the transferee shall promptly
mail or 
deliver to the Secretary of State (i) the last certificate of 
title, if
available, (ii) a certified copy of the court order 
ordering the transfer of
title, and (iii) an application for 
certificate of title.

    (f-30) Bankruptcy.  If the repossessed vehicle is the 
subject of a bankruptcy proceeding or discharge:

        (1) the lienholder may proceed to sell or otherwise 
    dispose of the vehicle as authorized by the Bankruptcy 
    Code and the Uniform Commercial Code;
        (2) the notice of redemption, affidavit of defense, 
    and notice of reinstatement otherwise required to be sent 
    by the lienholder to the owner of record or other 
    lienholder of record under this Section  are not required 
    to be delivered or mailed;
        (3) the requirement to delay disposition of the 
    vehicle for 21 days, (i) from the mailing or delivery of 
    the notice of redemption under subdivision (f-5)(1) of 
    this Section, (ii) from the mailing or delivery of the 
    affidavit of defense under subdivision (f-5)(2) of this 
    Section,  or (iii) from the date of repossession when the 
    owner is entitled to a notice of reinstatement under 
    subsection (f-7) of this Section, does not apply;
        (4) the affidavit of repossession that is required 
    under subdivision (f-5)(3) shall contain a notation of 
    "bankruptcy" where the affidavit requires the date of the 
    mailing or delivery of the notice of redemption.  The 
    notation of "bankruptcy" means the lienholder makes no 
    sworn representations regarding the mailing or delivery of 
    the notice of redemption or affidavit of defense or   
    lienholder's compliance with the requirements that 
    otherwise apply to the  notices listed in this subsection 
    (f-30), and makes no sworn representation that the 
    lienholder assumes liability or costs for any litigation 
    that may arise from the issuance of a certificate of title 
    based on the excluded representations;
        (5) the right of redemption, the right to assert a 
    defense to the transfer of title, and reinstatement rights 
    under this Section do not apply; and
        (6) references to judicial process and court orders in 
    subsection (f-10) of this Section do not include 
    bankruptcy proceedings or orders.

    (g) A person holding a certificate of title whose interest 
in the
vehicle has been extinguished or transferred other than 
by voluntary
transfer shall mail or deliver the certificate, 
within 20 days
upon request of the Secretary of State. The 
delivery of the certificate
pursuant to the request of the 
Secretary of State does not affect the
rights of the person 
surrendering the certificate, and the action of the
Secretary 
of State in issuing a new certificate of title as provided

herein is not conclusive upon the rights of an owner or 
lienholder named
in the old certificate.

    (h) The Secretary of State may decline to process any 
application
for a transfer of an interest in a vehicle 
hereunder if any fees or
taxes due under this Act from the 
transferor or the transferee have not
been paid upon 
reasonable notice and demand.

    (i) The Secretary of State shall not be held civilly or 
criminally
liable to any person because any purported 
transferor may not have had
the power or authority to make a 
transfer of any interest in any vehicle
or because a 
certificate of title issued in error is subsequently used to

commit a fraudulent act.

(Source: P.A. 99-260, eff. 1-1-16.)

 


    (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)



    Sec. 3-117.1. When junking certificates or salvage 
certificates must
be obtained.
    (a) Except as provided in Chapter 4 and Section 3-117.3 of 
this Code, a person who possesses a
junk vehicle shall within 
15 days cause the certificate of title, salvage
certificate, 
certificate of purchase, or a similarly acceptable 
out-of-state
document of ownership to be surrendered to the 
Secretary of State along with an
application for a junking 
certificate, except as provided in Section 3-117.2,
whereupon 
the Secretary of State shall issue to such a person a junking

certificate, which shall authorize the holder thereof to 
possess, transport,
or, by an endorsement, transfer ownership 
in such junked vehicle, and a
certificate of title shall not 
again be issued for such vehicle. The owner of a junk vehicle 
is not required to surrender the certificate of title under 
this subsection if (i) there is no lienholder on the 
certificate of title or (ii) the owner of the junk vehicle has 
a valid lien release from the lienholder releasing all 
interest in the vehicle and the owner applying for the junk 
certificate matches the current record on the certificate of 
title file for the vehicle.

    A licensee who possesses a junk vehicle and a Certificate 
of Title,
Salvage Certificate, Certificate of Purchase, or a 
similarly acceptable
out-of-state document of ownership for 
such junk vehicle, may transport the
junk vehicle to another 
licensee prior to applying for or obtaining a
junking 
certificate, by executing a uniform invoice. The licensee

transferor shall furnish a copy of the uniform invoice to the 
licensee
transferee at the time of transfer.  In any case, the 
licensee transferor
shall apply for a junking certificate in 
conformance with Section 3-117.1
of this Chapter.  The 
following information shall be contained on a uniform
invoice:

        (1) The business name, address and dealer license 
    number of the person
disposing of the vehicle, junk 
    vehicle or vehicle cowl;

        (2) The name and address of the person acquiring the 
    vehicle, junk
vehicle or vehicle cowl, and if that person 
    is a dealer, the Illinois or
out-of-state dealer license 
    number of that dealer;

        (3) The date of the disposition of the vehicle, junk 
    vehicle or vehicle
cowl;

        (4) The year, make, model, color and description of 
    each vehicle, junk
vehicle or vehicle cowl disposed of by 
    such person;

        (5) The manufacturer's vehicle identification number, 
    Secretary of State
identification number or Illinois 
    Department of State Police number,
for each vehicle, junk 
    vehicle or vehicle cowl part disposed of by such person;

        (6) The printed name and legible signature of the 
    person or agent
disposing of the vehicle, junk vehicle or 
    vehicle cowl; and

        (7) The printed name and legible signature of the 
    person accepting
delivery of the vehicle, junk vehicle or 
    vehicle cowl.

    The Secretary of State may certify a junking manifest in a 
form prescribed by
the Secretary of State that reflects those 
vehicles for which junking
certificates have been applied or 
issued.  A junking manifest
may be issued to any person and it 
shall constitute evidence of ownership
for the vehicle listed 
upon it.  A junking manifest may be transferred only
to a person 
licensed under Section 5-301 of this Code as a scrap 
processor.
 A junking manifest will allow the transportation of 
those
vehicles to a scrap processor prior to receiving the 
junk certificate from
the Secretary of State.

    (b) An application for a salvage certificate shall be 
submitted to the
Secretary of State in any of the following 
situations:

        (1) When an insurance company makes a payment of 
    damages on a total loss
claim for a vehicle, the insurance 
    company shall be deemed to be the owner of
such vehicle and 
    the vehicle shall be considered to be salvage except that

    ownership of (i) a vehicle that has incurred only hail 
    damage that does
not
affect the operational safety of the 
    vehicle or (ii) any vehicle
9 model years of age or older 
    may, by agreement between
the registered owner and the 
    insurance company, be retained by the registered
owner of 
    such vehicle.  The insurance  company shall promptly deliver 
    or mail
within 20 days the certificate of title along with 
    proper application and fee
to the Secretary of State, and 
    a salvage certificate shall be issued in the
name of the 
    insurance company.  Notwithstanding the foregoing, an 
    insurer making payment of damages on a total loss claim 
    for the theft of a vehicle shall not be required to apply 
    for a salvage certificate unless the vehicle is recovered 
    and has incurred damage that initially would have caused 
    the vehicle to be declared a total loss by the insurer.
        (1.1) When a vehicle of a self-insured company is to 
    be sold in the State of Illinois and  has sustained damaged 
    by collision, fire, theft, rust corrosion, or other means 
    so that the self-insured company determines the vehicle to 
    be a total loss, or if the cost of repairing the damage, 
    including labor, would be greater than 70% of its fair 
    market value without that damage, the vehicle shall be 
    considered salvage.  The self-insured company shall 
    promptly deliver the certificate of title along with 
    proper application and fee to the Secretary of State, and 
    a salvage certificate shall be issued in the name of the 
    self-insured company. A self-insured company making 
    payment of damages on a total loss claim for the theft of a 
    vehicle may exchange the salvage certificate for a 
    certificate of title if the vehicle is recovered without 
    damage. In such a situation, the self-insured  shall fill 
    out and sign a form prescribed by the Secretary of State 
    which contains an affirmation under penalty of perjury 
    that the vehicle was recovered without damage and the 
    Secretary of State may, by rule, require photographs to be 
    submitted.


        (2) When a vehicle the ownership of which has been 
    transferred to any
person through a certificate of 
    purchase from acquisition of the vehicle at an
auction, 
    other dispositions as set forth in Sections 4-208 and 
    4-209
of this Code, or a lien arising under Section 
    18a-501 of this Code shall be deemed
salvage or junk at the 
    option of the purchaser.  The person acquiring such
vehicle 
    in such manner shall promptly deliver or mail, within 20 
    days after the
acquisition of the vehicle, the certificate 
    of purchase, the
proper application and fee, and, if the 
    vehicle is an abandoned mobile home
under the Abandoned 
    Mobile Home Act, a certification from a local law

    enforcement agency that the vehicle was purchased or 
    acquired at a public sale
under the Abandoned Mobile Home 
    Act to the Secretary of State and a salvage
certificate or 
    junking certificate shall be issued in the name of that 
    person.
The salvage certificate or junking certificate 
    issued by the Secretary of State
under this Section shall 
    be free of any lien that existed against the vehicle
prior 
    to the time the vehicle was acquired by the applicant 
    under this Code.

        (3) A vehicle which has been repossessed by a 
    lienholder shall be
considered to be salvage only when the 
    repossessed vehicle, on the date of
repossession by the 
    lienholder, has sustained damage by collision, fire, 
    theft,
rust corrosion, or other means so that the cost of 
    repairing
such damage, including labor, would be greater 
    than 50% 33 1/3% of its fair market
value without such 
    damage.  If the lienholder determines that such vehicle is

    damaged in excess of 50% 33 1/3% of such fair market value, 
    the lienholder shall,
before sale, transfer or assignment 
    of the vehicle, make application for a
salvage 
    certificate, and shall submit with such application the 
    proper fee
and evidence of possession.  If the facts 
    required to be shown in
subsection (f) of Section 3-114 
    are satisfied, the Secretary of State shall
issue a 
    salvage certificate in the name of the lienholder making 
    the
application.  In any case wherein the vehicle 
    repossessed is not damaged in
excess of 50% 33 1/3% of its 
    fair market value, the lienholder
shall comply with the 
    requirements of subsections (f), (f-5), and (f-10) of

    Section 3-114, except that the affidavit of repossession 
    made by or on behalf
of the lienholder
shall also contain 
    an affirmation under penalty of perjury that the vehicle

    on
the date of sale is not
damaged in
excess of 50% 33 1/3% 
    of its fair market value.  If the facts required to be shown

    in subsection (f) of Section 3-114 are satisfied, the 
    Secretary of State
shall issue a certificate of title as 
    set forth in Section 3-116 of this Code.
The Secretary of 
    State may by rule or regulation require photographs to be

    submitted.

        (4) A vehicle which is a part of a fleet of more than 5 
    commercial
vehicles registered in this State or any other 
    state or registered
proportionately among several states 
    shall be considered to be salvage when
such vehicle has 
    sustained damage by collision, fire, theft, rust,

    corrosion or similar means so that the cost of repairing 
    such damage, including
labor, would be greater than 50% 33 
    1/3% of the fair market value of the vehicle
without such 
    damage.  If the owner of a fleet vehicle desires to sell,

    transfer, or assign his interest in such vehicle to a 
    person within this State
other than an insurance company 
    licensed to do business within this State, and
the owner 
    determines that such vehicle, at the time of the proposed 
    sale,
transfer or assignment is damaged in excess of 50% 
    33 1/3% of its fair market
value, the owner shall, before 
    such sale, transfer or assignment, make
application for a 
    salvage certificate.  The application shall contain with it

    evidence of possession of the vehicle.  If the fleet 
    vehicle at the time of its
sale, transfer, or assignment 
    is not damaged in excess of 50% 33 1/3% of its
fair market 
    value, the owner shall so state in a written affirmation 
    on a
form prescribed by the Secretary of State by rule or 
    regulation.  The
Secretary of State may by rule or 
    regulation require photographs to be
submitted.  Upon sale, 
    transfer or assignment of the fleet vehicle the
owner 
    shall mail the affirmation to the Secretary of State.

        (5) A vehicle that has been submerged in water to the

    point that rising water has reached over the door sill and 
    has
entered the
passenger or trunk compartment is a "flood 
    vehicle".  A flood vehicle shall
be considered to be 
    salvage only if the vehicle has sustained damage so that

    the cost of repairing the damage, including labor, would 
    be greater than 50% 33
1/3% of the fair market value of the 
    vehicle without that damage. The salvage
certificate 
    issued under this
Section shall indicate the word "flood", 
    and the word "flood" shall be
conspicuously entered on 
    subsequent titles for the vehicle.  A person who
possesses 
    or acquires a flood vehicle that is not damaged in excess 
    of 50% 33 1/3%
of its fair market value shall make 
    application for title in accordance with
Section 3-116 of 
    this Code, designating the vehicle as "flood" in a manner

    prescribed by the Secretary of State.  The certificate of 
    title issued shall
indicate the word "flood", and the word 
    "flood" shall be conspicuously entered
on subsequent 
    titles for the vehicle.

        (6)  When any licensed rebuilder, repairer, new or used 
    vehicle dealer, or remittance agent has submitted an 
    application for title to a vehicle  (other than an 
    application for title to a rebuilt vehicle) that he or she 
    knows or reasonably should have known to have sustained 
    damages in excess of 50% 33 1/3% of the vehicle's fair 
    market value without that damage; provided, however, that 
    any application for a salvage certificate for a vehicle 
    recovered from theft and acquired from an insurance 
    company shall be made as required by paragraph (1) of this 
    subsection (b). 
    (c) Any person who without authority acquires, sells, 
exchanges, gives
away, transfers or destroys or offers to 
acquire, sell, exchange, give
away, transfer or destroy the 
certificate of title to any vehicle which is
a junk or salvage 
vehicle shall be guilty of a Class 3 felony.

    (d) Except as provided under subsection (a), any person 
who knowingly fails to surrender to the Secretary of State a

certificate of title, salvage certificate, certificate of 
purchase or a
similarly acceptable out-of-state document of 
ownership as required under
the provisions of this Section is 
guilty of a Class A misdemeanor for a
first offense and a Class 
4 felony for a subsequent offense; except that a
person 
licensed under this Code who violates paragraph (5) of 
subsection (b)
of this Section is
guilty of a business offense 
and shall be fined not less than $1,000 nor more
than $5,000 
for a first offense and is guilty of a Class 4 felony
for a 
second or subsequent violation.

    (e) Any vehicle which is salvage or junk may not be driven 
or operated
on roads and highways within this State.  A 
violation of this subsection is
a Class A misdemeanor.  A 
salvage vehicle displaying valid special plates
issued under 
Section 3-601(b) of this Code, which is being driven to or
from 
an inspection conducted under Section 3-308 of this Code, is 
exempt
from the provisions of this subsection.  A salvage 
vehicle for which a
short term permit has been issued under 
Section 3-307 of this Code is
exempt from the provisions of 
this subsection for the duration of the permit.

(Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19; 
100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)

 



    (625 ILCS 5/3-301)  (from Ch. 95 1/2, par. 3-301)



    Sec. 3-301. New certificate of title for rebuilt vehicle. 


    (a) For vehicles 8 model years of age or newer, the 
Secretary of State
shall issue a new certificate of title to 
any rebuilt
vehicle or any vehicle which previously had been 
titled as salvage
in this State or any other jurisdiction upon 
the successful inspection
of the vehicle in accordance with 
Section 3-308 of this Article.

    (b) Vehicles more than 8 model years old shall not be 
required to
complete a successful inspection required under 
Section 3-308 of this Code
before being issued a new 
certificate of title as provided under this
Section.

    (c) Vehicles designated as flood vehicles that have 
sustained damage
greater than 50% 33 1/3% of their fair market 
value with that damage shall be
required to complete a

successful
inspection required under Section 3-308 of this 
Code before being issued a new
certificate of title provided 
under paragraph (5), subsection (b) of Section
3-117.1.

(Source: P.A. 88-685, eff. 1-24-95; 89-669, eff. 1-1-97.)