Public Act 095-0284
 		





HB0217 Enrolled
LRB095 04358 DRH 24401 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 3-113 and 3-202 as follows:

 
    (625 ILCS 5/3-113)  (from Ch. 95 1/2, par. 3-113)
    Sec. 3-113. Transfer to or from dealer; records.

    (a) After a dealer buys a vehicle and holds it for resale, 
the
dealer must procure the
certificate of title from the owner 
or the lienholder.  The dealer may hold
the certificate until he 
or she transfers the vehicle to another person.

Upon 
transferring the vehicle to another person,
the dealer shall 
promptly and within 20
days
execute the assignment and warranty 
of title by a dealer, showing the names and
addresses of the 
transferee and of any lienholder holding a security interest

created or reserved at the time of the resale, in the spaces 
provided therefor
on the certificate or as the Secretary of 
State prescribes, and mail or deliver
the certificate to the 
Secretary of State with the transferee's application for
a new 
certificate, except as provided in Section 3-117.2.
A dealer 
has complied with this Section if the date of the mailing of 
the certificate, as indicated by the postmark, is within 20 
days of the date on which the vehicle was transferred to 
another person.


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


    (c) Any person who violates this Section shall be guilty of 
a petty offense.


(Source: P.A. 94-239, eff. 1-1-06.)


 



    (625 ILCS 5/3-202)  (from Ch. 95 1/2, par. 3-202)



    Sec. 3-202. Perfection of security interest. 

    (a) Unless excepted by Section 3-201, a security interest 
in a
vehicle of a type for which a certificate of title is 
required is not
valid against subsequent transferees or 
lienholders of the vehicle
unless perfected as provided in this 
Act.

    (b) A security interest is perfected by the delivery to the

Secretary of State of the existing certificate of title, if 
any, an
application for a certificate of title containing the 
name and address
of the lienholder and the
required fee. The 
security interest is perfected as of the time of
its creation 
if the
delivery to the Secretary of State is completed within 
30
21 days after the
creation of the security interest or 
receipt by the new lienholder of the
existing certificate of 
title from a prior lienholder or licensed
dealer, otherwise as 
of the
time of the delivery.

    (c) If a vehicle is subject to a security interest when 
brought into
this State, the validity of the security interest 
is determined by the
law of the jurisdiction where the vehicle 
was when the security interest
attached, subject to the 
following:


        1. If the parties understood at the time the security 
    interest
attached that the vehicle would be kept in this 
    State and it was brought
into this State within 30 days 
    thereafter for purposes other than
transportation through 
    this State, the validity of the security interest
in this 
    State is determined by the law of this State.


        2. If the security interest was perfected under the law 
    of the
jurisdiction where the vehicle was when the security 
    interest attached,
the following rules apply:


            (A) If the name of the lienholder is shown on an 
        existing
certificate of title issued by that 
        jurisdiction, his security interest
continues 
        perfected in this State.


            (B) If the name of the lienholder is not shown on 
        an existing
certificate of title issued by that 
        jurisdiction, a security interest
may be perfected by 
        the lienholder delivering to the Secretary of State
the 
        prescribed notice and by payment of the required fee. 
        Such security
interest is perfected as of the time of 
        delivery of the prescribed
notice and payment of the 
        required fee.


        3. If the security interest was not perfected under the 
    law of the
jurisdiction where the vehicle was when the 
    security interest attached,
it may be perfected in this 
    State; in that case perfection dates from
the time of 
    perfection in this State.


        4. A security interest may be perfected under paragraph 
    3 of this
subsection either as provided in subsection (b) 
    or by the lienholder
delivering to the Secretary of State a 
    notice of security interest in
the form the Secretary of 
    State prescribes and the required fee.

(Source: P.A. 91-893, eff. 7-6-00.)