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.)