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1 | AN ACT concerning transportation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Vehicle Code is amended by | ||||||
5 | changing Sections 3-114, 3-117.1, and 3-301 as follows:
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6 | (625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)
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7 | Sec. 3-114. Transfer by operation of law.
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8 | (a) If the interest of an owner in a vehicle passes to | ||||||
9 | another other
than by voluntary transfer, the transferee | ||||||
10 | shall, except as provided in
paragraph (b), promptly mail or | ||||||
11 | deliver within 20 days to the
Secretary of State the last | ||||||
12 | certificate of title, if available, proof of
the transfer, and | ||||||
13 | his application for a new certificate in the form the
| ||||||
14 | Secretary of State prescribes. It shall be unlawful for any | ||||||
15 | person
having possession of a certificate of title for a motor | ||||||
16 | vehicle,
semi-trailer, or house car by reason of his having a | ||||||
17 | lien or encumbrance
on such vehicle, to fail or refuse to | ||||||
18 | deliver such certificate to the
owner, upon the satisfaction | ||||||
19 | or discharge of the lien or encumbrance,
indicated upon such | ||||||
20 | certificate of title.
| ||||||
21 | (b) If the interest of an owner in a vehicle passes to | ||||||
22 | another under
the provisions of the Small Estates provisions | ||||||
23 | of the Probate Act of 1975 the
transferee shall promptly mail |
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| |||||||
1 | or deliver to the Secretary of State, within 120
days, the last | ||||||
2 | certificate of title, if available, the documentation required
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3 | under the provisions of the Probate Act of 1975, and an | ||||||
4 | application for
certificate of title. The Small Estate | ||||||
5 | Affidavit form shall be furnished by the
Secretary of State. | ||||||
6 | The transfer may be to the transferee or to the nominee of
the | ||||||
7 | transferee.
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8 | (c) If the interest of an owner in a vehicle passes to | ||||||
9 | another under
other provisions of the Probate Act of 1975, as | ||||||
10 | amended, and the transfer is
made by a representative or | ||||||
11 | guardian, such transferee shall promptly mail or
deliver to | ||||||
12 | the Secretary of State, the last certificate of title, if | ||||||
13 | available,
and a certified copy of the letters of office or | ||||||
14 | guardianship, and an
application for certificate of title. | ||||||
15 | Such application shall be made before the
estate is closed. | ||||||
16 | The transfer may be to the transferee or to the nominee of
the | ||||||
17 | transferee.
| ||||||
18 | (d) If the interest of an owner in joint tenancy passes to | ||||||
19 | the other
joint tenant with survivorship rights as provided by | ||||||
20 | law, the transferee
shall promptly mail or deliver to the | ||||||
21 | Secretary of State, the last
certificate of title, if | ||||||
22 | available, proof of death of the one joint
tenant and | ||||||
23 | survivorship of the surviving joint tenant, and an
application | ||||||
24 | for certificate of title. Such application shall be made
| ||||||
25 | within 120 days after the death of the joint tenant. The | ||||||
26 | transfer may
be to the transferee or to the nominee of the |
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| |||||||
1 | transferee.
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2 | (d-5) If the interest of an owner passes to the owner's | ||||||
3 | spouse or if the spouse otherwise acquires ownership of the | ||||||
4 | vehicle, then the transferee shall promptly mail or deliver to | ||||||
5 | the Secretary of State, proof of (i) the owner's death; (ii) | ||||||
6 | the transfer or acquisition of ownership; and (iii) proof of | ||||||
7 | the marital relationship between the owner and the transferee, | ||||||
8 | along with the last certificate of title, if available, and an | ||||||
9 | application for certificate of title along with the | ||||||
10 | appropriate fees and taxes, if applicable. The application | ||||||
11 | shall be made within 180 days after the death of the owner. | ||||||
12 | (e) The Secretary of State shall transfer a decedent's | ||||||
13 | vehicle title to
any legatee, representative or heir of the | ||||||
14 | decedent who submits to the
Secretary a death certificate and | ||||||
15 | an affidavit by an attorney at law on the
letterhead | ||||||
16 | stationery of the attorney at law stating the facts of the
| ||||||
17 | transfer.
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18 | (f) Repossession with assignment of title. In all cases | ||||||
19 | wherein a
lienholder has repossessed a vehicle by other
than | ||||||
20 | judicial process and holds it for resale under a security | ||||||
21 | agreement, and
the owner of record has executed an assignment | ||||||
22 | of the existing certificate of
title after default, the | ||||||
23 | lienholder may proceed to sell or otherwise dispose of
the | ||||||
24 | vehicle
as authorized under the Uniform Commercial Code. Upon | ||||||
25 | selling the vehicle to
another person, the lienholder need not | ||||||
26 | send the certificate of title to the
Secretary of State, but |
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| |||||||
1 | shall promptly and within 20 days mail or deliver to
the | ||||||
2 | purchaser
as transferee the existing certificate of title for | ||||||
3 | the repossessed vehicle,
reflecting the release of the | ||||||
4 | lienholder's security interest in the vehicle.
The application | ||||||
5 | for a certificate of title made by the
purchaser shall comply | ||||||
6 | with subsection (a) of Section 3-104 and be accompanied
by the | ||||||
7 | existing certificate of title for the repossessed vehicle.
The | ||||||
8 | lienholder shall execute the assignment and warranty of title | ||||||
9 | showing the
name and address of the purchaser in the spaces | ||||||
10 | provided therefor on the
certificate of title or as the | ||||||
11 | Secretary of State prescribes. The lienholder
shall complete | ||||||
12 | the assignment of title in the certificate of title to reflect
| ||||||
13 | the transfer of the vehicle to the lienholder and also a | ||||||
14 | reassignment to
reflect the transfer from the lienholder to | ||||||
15 | the purchaser. For this purpose,
the lienholder is | ||||||
16 | specifically authorized
to complete and execute
the space | ||||||
17 | reserved in the certificate of title for a dealer | ||||||
18 | reassignment,
notwithstanding that the lienholder is not a | ||||||
19 | licensed dealer. Nothing herein
shall be construed to mean | ||||||
20 | that the lienholder is taking title to the
repossessed vehicle | ||||||
21 | for purposes of liability for retailer occupation, vehicle
| ||||||
22 | use, or other tax with respect to the proceeds from the | ||||||
23 | repossession sale.
Delivery of the existing certificate of | ||||||
24 | title to the purchaser shall be deemed
disclosure to the | ||||||
25 | purchaser of the owner of the vehicle.
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26 | (f-5) Repossession without assignment of title. Subject to |
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1 | subsection (f-30), in all cases wherein a
lienholder has | ||||||
2 | repossessed a vehicle
by other than judicial process and holds | ||||||
3 | it for resale under a security
agreement,
and the owner of | ||||||
4 | record has not executed an assignment of the existing
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5 | certificate of title,
the lienholder shall comply with the | ||||||
6 | following provisions:
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7 | (1) Prior to sale, the lienholder shall deliver or | ||||||
8 | mail to the owner at
the owner's last known address and to | ||||||
9 | any other lienholder of record, a notice
of redemption
| ||||||
10 | setting forth the following information: (i) the name of | ||||||
11 | the owner of record
and in bold type at or near the top of | ||||||
12 | the notice a statement that the owner's
vehicle was | ||||||
13 | repossessed on a specified date for failure to make | ||||||
14 | payments on the
loan (or other reason), (ii) a
description | ||||||
15 | of the vehicle subject to the lien sufficient to identify | ||||||
16 | it, (iii)
the right of the owner to redeem the vehicle, | ||||||
17 | (iv) the lienholder's intent to
sell or otherwise dispose | ||||||
18 | of the vehicle after the expiration of 21 days from
the | ||||||
19 | date of mailing or delivery of the notice, and (v) the | ||||||
20 | name, address, and
telephone number of the lienholder from
| ||||||
21 | whom information may be
obtained concerning the amount due | ||||||
22 | to redeem the vehicle and from whom
the vehicle may be | ||||||
23 | redeemed under
Section 9-623 of the Uniform Commercial | ||||||
24 | Code. At the
lienholder's option, the
information required | ||||||
25 | to be set forth in this notice of redemption
may be made a | ||||||
26 | part of or accompany the notification of sale or other
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1 | disposition
required under Section 9-611 of the
Uniform
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2 | Commercial Code, but none of the information required by | ||||||
3 | this notice shall
be construed to impose any requirement | ||||||
4 | under Article 9 of the Uniform
Commercial Code.
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5 | (2) With respect to the repossession of a vehicle used | ||||||
6 | primarily for
personal, family, or household purposes, the | ||||||
7 | lienholder shall also deliver or
mail to the owner at the | ||||||
8 | owner's last known address an affidavit
of defense. The | ||||||
9 | affidavit of defense shall accompany the notice of
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10 | redemption
required in subdivision (f-5)(1) of
this | ||||||
11 | Section. The affidavit of defense shall (i) identify the | ||||||
12 | lienholder,
owner, and the
vehicle; (ii) provide space for | ||||||
13 | the owner to state the defense claimed by the
owner; and | ||||||
14 | (iii) include an acknowledgment by the owner that the | ||||||
15 | owner may be
liable to the lienholder for fees, charges, | ||||||
16 | and costs incurred by the
lienholder in establishing the | ||||||
17 | insufficiency or invalidity of the owner's
defense. To | ||||||
18 | stop the transfer of title, the affidavit of defense must | ||||||
19 | be
received by the
lienholder no later than 21 days after | ||||||
20 | the date of mailing or delivery of the
notice required in | ||||||
21 | subdivision (f-5)(1) of this Section. If the lienholder
| ||||||
22 | receives the affidavit from the owner in a timely manner, | ||||||
23 | the lienholder must
apply to a court of competent | ||||||
24 | jurisdiction to determine if the lienholder is
entitled to | ||||||
25 | possession of the vehicle.
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26 | (3) Upon selling the vehicle to another person, the |
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1 | lienholder need not
send the certificate of title to the | ||||||
2 | Secretary of State, but shall
promptly and within 20 days | ||||||
3 | mail or deliver to the purchaser as transferee (i)
the | ||||||
4 | existing
certificate of title for the repossessed vehicle, | ||||||
5 | reflecting the release of the
lienholder's security | ||||||
6 | interest in the vehicle; and (ii) an affidavit of
| ||||||
7 | repossession made by or on behalf of the lienholder which | ||||||
8 | provides the
following information: that the vehicle was | ||||||
9 | repossessed, a description of the
vehicle sufficient to | ||||||
10 | identify it, whether the vehicle has been damaged in
| ||||||
11 | excess of 50% 33 1/3% of its fair market value as required | ||||||
12 | under subdivision (b)(3)
of Section 3-117.1, that the | ||||||
13 | owner and any other lienholder of record were
given the | ||||||
14 | notice required in subdivision (f-5)(1) of this Section,
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15 | that the owner of record was given the affidavit of | ||||||
16 | defense required in
subdivision (f-5)(2) of this Section,
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17 | that the interest of the owner was lawfully terminated or | ||||||
18 | sold pursuant to the
terms of the security agreement, and | ||||||
19 | the purchaser's name and address.
If the vehicle is | ||||||
20 | damaged in excess of 50% 33 1/3% of its fair market value, | ||||||
21 | the
lienholder shall make application for a salvage | ||||||
22 | certificate under Section
3-117.1 and transfer the vehicle | ||||||
23 | to a person eligible to receive assignments of
salvage | ||||||
24 | certificates identified in Section 3-118.
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25 | (4) The application for a certificate of title made by | ||||||
26 | the purchaser shall
comply with subsection (a) of Section |
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| |||||||
1 | 3-104 and be accompanied by the affidavit
of repossession | ||||||
2 | furnished by the lienholder and the existing certificate | ||||||
3 | of
title for the repossessed vehicle.
The lienholder shall | ||||||
4 | execute the assignment and warranty of title showing the
| ||||||
5 | name and address of the purchaser in the spaces provided | ||||||
6 | therefor on the
certificate of title or as the Secretary | ||||||
7 | of State prescribes. The lienholder
shall complete the | ||||||
8 | assignment of title in the certificate of title to reflect
| ||||||
9 | the transfer of the vehicle to the lienholder and also a | ||||||
10 | reassignment to
reflect the transfer from the lienholder | ||||||
11 | to the purchaser. For this purpose,
the lienholder is | ||||||
12 | specifically authorized to execute the assignment on | ||||||
13 | behalf
of the owner as seller if the owner has not done so | ||||||
14 | and to complete and execute
the space reserved in the | ||||||
15 | certificate of title for a dealer reassignment,
| ||||||
16 | notwithstanding that the lienholder is not a licensed | ||||||
17 | dealer. Nothing herein
shall be construed to mean that the | ||||||
18 | lienholder is taking title to the
repossessed vehicle for | ||||||
19 | purposes of liability for retailer occupation, vehicle
| ||||||
20 | use, or other tax with respect to the proceeds from the | ||||||
21 | repossession sale.
Delivery of the existing certificate of | ||||||
22 | title to the purchaser shall be deemed
disclosure to the | ||||||
23 | purchaser of the owner of the vehicle.
In the event the | ||||||
24 | lienholder does not hold
the certificate of title for the | ||||||
25 | repossessed vehicle, the lienholder shall
make application | ||||||
26 | for and may obtain a new certificate of title in the name |
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| |||||||
1 | of
the lienholder upon furnishing information satisfactory | ||||||
2 | to the Secretary of
State. Upon receiving the new | ||||||
3 | certificate of title, the lienholder may proceed
with the | ||||||
4 | sale described in subdivision (f-5)(3), except that upon | ||||||
5 | selling the
vehicle the lienholder shall promptly and | ||||||
6 | within 20 days mail or deliver to the
purchaser the new | ||||||
7 | certificate of title reflecting the assignment and | ||||||
8 | transfer
of title to the purchaser.
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9 | (5) Neither the lienholder nor the owner shall file | ||||||
10 | with the Office of
the Secretary of State the notice of | ||||||
11 | redemption or affidavit of defense
described in | ||||||
12 | subdivisions (f-5)(1) and (f-5)(2) of this Section. The | ||||||
13 | Office of
the Secretary of State shall not determine the | ||||||
14 | merits of an owner's affidavit
of defense, nor consider | ||||||
15 | any allegations or assertions regarding the validity
or | ||||||
16 | invalidity of a lienholder's claim to the vehicle or an | ||||||
17 | owner's asserted
defenses to the repossession action.
| ||||||
18 | (f-7) Notice of reinstatement in certain cases.
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19 | (1) Subject to subsection (f-30), if, at the time of | ||||||
20 | repossession by a lienholder that is seeking to
transfer | ||||||
21 | title pursuant to subsection (f-5), the owner has paid an | ||||||
22 | amount equal
to 30% or more of the deferred payment price | ||||||
23 | or total of payments due, the
owner may, within 21 days of | ||||||
24 | the date of repossession, reinstate the contract
or loan | ||||||
25 | agreement and recover the vehicle from the lienholder by | ||||||
26 | tendering in a
lump sum (i) the total of all unpaid |
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| |||||||
1 | amounts, including any unpaid delinquency
or deferral | ||||||
2 | charges due at the date of reinstatement, without | ||||||
3 | acceleration; and
(ii) performance necessary to cure any | ||||||
4 | default other than nonpayment of the
amounts due; and | ||||||
5 | (iii)
all reasonable costs and fees incurred by the | ||||||
6 | lienholder in retaking, holding,
and preparing the vehicle | ||||||
7 | for disposition and in arranging for the sale of the
| ||||||
8 | vehicle. Reasonable costs and fees incurred by the | ||||||
9 | lienholder include without
limitation repossession and | ||||||
10 | storage expenses and, if authorized by the contract
or | ||||||
11 | loan agreement, reasonable attorneys' fees and collection | ||||||
12 | agency charges.
| ||||||
13 | (2) Tender of payment and performance pursuant to this | ||||||
14 | limited right of
reinstatement restores to the owner his | ||||||
15 | rights under the contract or loan
agreement as though no | ||||||
16 | default had occurred. The owner has the right to
reinstate | ||||||
17 | the contract or loan agreement and recover the vehicle | ||||||
18 | from the
lienholder only once under this subsection. The | ||||||
19 | lienholder may, in the
lienholder's sole discretion, | ||||||
20 | extend the period during which the owner may
reinstate the | ||||||
21 | contract or loan agreement and recover the vehicle beyond | ||||||
22 | the 21
days allowed under this subsection, and the | ||||||
23 | extension shall not subject the
lienholder to liability to | ||||||
24 | the owner under the laws of this State.
| ||||||
25 | (3) The lienholder shall deliver or mail written | ||||||
26 | notice to the owner at
the
owner's last known address, |
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| |||||||
1 | within 3 business days of the date of repossession,
of the | ||||||
2 | owner's right to reinstate the contract or loan agreement | ||||||
3 | and recover
the vehicle pursuant to the limited right of | ||||||
4 | reinstatement described in this
subsection. At the | ||||||
5 | lienholder's option, the information required to be set
| ||||||
6 | forth in this notice of reinstatement may be made part of | ||||||
7 | or accompany the
notice of redemption required in | ||||||
8 | subdivision (f-5)(1) of this Section and the
notification | ||||||
9 | of sale or other disposition required under
Section 9-611 | ||||||
10 | of the Uniform Commercial Code, but none of the
| ||||||
11 | information
required by this notice of reinstatement shall | ||||||
12 | be construed to impose any
requirement under Article 9 of | ||||||
13 | the Uniform Commercial Code.
| ||||||
14 | (4) The reinstatement period, if applicable, and the | ||||||
15 | redemption period
described in subdivision (f-5)(1) of | ||||||
16 | this Section, shall run concurrently if
the information | ||||||
17 | required to be set forth in the notice of reinstatement is | ||||||
18 | part
of or accompanies the notice of redemption. In any | ||||||
19 | event, the 21 day
redemption period described in | ||||||
20 | subdivision (f-5)(1) of this Section shall
commence on the | ||||||
21 | date of
mailing or delivery to the owner of the | ||||||
22 | information required to be set forth in
the notice of | ||||||
23 | redemption, and the 21 day reinstatement period described | ||||||
24 | in this
subdivision, if applicable, shall commence on the | ||||||
25 | date of mailing or delivery
to the owner of the | ||||||
26 | information required to be set forth in the notice of
|
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| |||||||
1 | reinstatement.
| ||||||
2 | (5) The Office of the Secretary of State shall not | ||||||
3 | determine the merits of
an owner's claim of right to | ||||||
4 | reinstatement, nor consider any allegations or
assertions | ||||||
5 | regarding the validity or invalidity of a lienholder's | ||||||
6 | claim to the
vehicle or an owner's asserted right to | ||||||
7 | reinstatement. Where a lienholder is
subject to licensing | ||||||
8 | and regulatory supervision by the State of Illinois, the
| ||||||
9 | lienholder shall be subject to all of the powers and | ||||||
10 | authority of the
lienholder's primary State regulator to | ||||||
11 | enforce compliance with the procedures
set forth in this | ||||||
12 | subsection (f-7).
| ||||||
13 | (f-10) Repossession by judicial process. In all cases | ||||||
14 | wherein a lienholder
has repossessed a vehicle by
judicial
| ||||||
15 | process and holds it for resale under a security agreement, | ||||||
16 | order for replevin,
or other court order establishing the | ||||||
17 | lienholder's right to possession of the
vehicle, the | ||||||
18 | lienholder may proceed to sell or otherwise dispose of the | ||||||
19 | vehicle
as authorized under the Uniform Commercial Code or the | ||||||
20 | court order. Upon
selling the vehicle to another person, the | ||||||
21 | lienholder need not send the
certificate of title to the | ||||||
22 | Secretary of State, but shall promptly and within
20 days mail | ||||||
23 | or
deliver to the purchaser as transferee (i) the existing | ||||||
24 | certificate of title
for the repossessed vehicle reflecting | ||||||
25 | the release of the lienholder's security
interest in the | ||||||
26 | vehicle; (ii) a certified copy of the court order; and (iii) a
|
| |||||||
| |||||||
1 | bill of sale identifying the new owner's name and address and | ||||||
2 | the year, make,
model, and vehicle identification number of | ||||||
3 | the vehicle.
The application for a certificate of title made | ||||||
4 | by the purchaser shall comply
with subsection (a) of Section | ||||||
5 | 3-104 and be accompanied by the certified copy
of the court | ||||||
6 | order furnished by the
lienholder and the existing certificate | ||||||
7 | of title for the repossessed vehicle.
The lienholder shall | ||||||
8 | execute the assignment and warranty of title showing the
name | ||||||
9 | and address of the purchaser in the spaces provided therefor | ||||||
10 | on the
certificate of title or as the Secretary of State | ||||||
11 | prescribes. The lienholder
shall complete the assignment of | ||||||
12 | title in the certificate of title to reflect
the transfer of | ||||||
13 | the vehicle to the lienholder and also a reassignment to
| ||||||
14 | reflect the transfer from the lienholder to the purchaser. For | ||||||
15 | this purpose,
the lienholder is specifically authorized to | ||||||
16 | execute the assignment on behalf
of the owner as seller if the | ||||||
17 | owner has not done so and to complete and execute
the space | ||||||
18 | reserved in the certificate of title for a dealer | ||||||
19 | reassignment,
notwithstanding that the lienholder is not a | ||||||
20 | licensed dealer. Nothing herein
shall be construed to mean | ||||||
21 | that the lienholder is taking title to the
repossessed vehicle | ||||||
22 | for purposes of liability for retailer occupation, vehicle
| ||||||
23 | use, or other tax with respect to the proceeds from the | ||||||
24 | repossession sale.
Delivery of the existing certificate of | ||||||
25 | title to the purchaser shall be deemed
disclosure to the | ||||||
26 | purchaser of the owner of the vehicle.
In the event the
|
| |||||||
| |||||||
1 | lienholder does not hold the certificate of title for the | ||||||
2 | repossessed vehicle,
the lienholder shall
make application for | ||||||
3 | and may obtain a new certificate of title in the name of
the | ||||||
4 | lienholder upon furnishing information satisfactory to the | ||||||
5 | Secretary of
State. Upon receiving the new certificate of | ||||||
6 | title, the lienholder may proceed
with the sale described in | ||||||
7 | this subsection, except that upon selling the
vehicle the | ||||||
8 | lienholder shall promptly and within 20 days mail or deliver | ||||||
9 | to the
purchaser the new certificate of title reflecting the | ||||||
10 | assignment and transfer
of title to the purchaser.
| ||||||
11 | (f-15) The Secretary of State shall not issue a | ||||||
12 | certificate of title to a
purchaser under subsection (f), | ||||||
13 | (f-5), or (f-10) of this Section, unless the
person from whom | ||||||
14 | the vehicle has been repossessed by the lienholder is shown to
| ||||||
15 | be the last registered owner of the motor vehicle. The | ||||||
16 | Secretary of State may
provide by rule for the standards to be | ||||||
17 | followed by a lienholder in assigning
and transferring | ||||||
18 | certificates of title with respect to repossessed vehicles.
| ||||||
19 | (f-20) If applying for a salvage certificate or a junking | ||||||
20 | certificate, the lienholder
shall within 20 days make an | ||||||
21 | application to the Secretary of State for a salvage | ||||||
22 | certificate or a junking certificate, as
set forth in this | ||||||
23 | Code. The Secretary of State shall
not issue a salvage
| ||||||
24 | certificate or a junking
certificate to such lienholder unless | ||||||
25 | the person from whom such vehicle has
been repossessed is | ||||||
26 | shown to be the last registered owner of such motor
vehicle and |
| |||||||
| |||||||
1 | such lienholder establishes to the satisfaction of
the | ||||||
2 | Secretary of State that he is entitled to such
salvage | ||||||
3 | certificate or junking certificate. The Secretary
of State may | ||||||
4 | provide by rule for the standards to be followed by
a | ||||||
5 | lienholder in order to obtain a
salvage certificate or junking | ||||||
6 | certificate for a
repossessed vehicle.
| ||||||
7 | (f-25) If the interest of an owner in a mobile home, as | ||||||
8 | defined in the
Mobile Home Local Services Tax Act, passes to | ||||||
9 | another under the provisions of
the
Mobile Home Local Services | ||||||
10 | Tax Enforcement Act, the transferee shall promptly
mail or | ||||||
11 | deliver to the Secretary of State (i) the last certificate of | ||||||
12 | title, if
available, (ii) a certified copy of the court order | ||||||
13 | ordering the transfer of
title, and (iii) an application for | ||||||
14 | certificate of title.
| ||||||
15 | (f-30) Bankruptcy. If the repossessed vehicle is the | ||||||
16 | subject of a bankruptcy proceeding or discharge:
| ||||||
17 | (1) the lienholder may proceed to sell or otherwise | ||||||
18 | dispose of the vehicle as authorized by the Bankruptcy | ||||||
19 | Code and the Uniform Commercial Code; | ||||||
20 | (2) the notice of redemption, affidavit of defense, | ||||||
21 | and notice of reinstatement otherwise required to be sent | ||||||
22 | by the lienholder to the owner of record or other | ||||||
23 | lienholder of record under this Section are not required | ||||||
24 | to be delivered or mailed; | ||||||
25 | (3) the requirement to delay disposition of the | ||||||
26 | vehicle for 21 days, (i) from the mailing or delivery of |
| |||||||
| |||||||
1 | the notice of redemption under subdivision (f-5)(1) of | ||||||
2 | this Section, (ii) from the mailing or delivery of the | ||||||
3 | affidavit of defense under subdivision (f-5)(2) of this | ||||||
4 | Section, or (iii) from the date of repossession when the | ||||||
5 | owner is entitled to a notice of reinstatement under | ||||||
6 | subsection (f-7) of this Section, does not apply; | ||||||
7 | (4) the affidavit of repossession that is required | ||||||
8 | under subdivision (f-5)(3) shall contain a notation of | ||||||
9 | "bankruptcy" where the affidavit requires the date of the | ||||||
10 | mailing or delivery of the notice of redemption. The | ||||||
11 | notation of "bankruptcy" means the lienholder makes no | ||||||
12 | sworn representations regarding the mailing or delivery of | ||||||
13 | the notice of redemption or affidavit of defense or | ||||||
14 | lienholder's compliance with the requirements that | ||||||
15 | otherwise apply to the notices listed in this subsection | ||||||
16 | (f-30), and makes no sworn representation that the | ||||||
17 | lienholder assumes liability or costs for any litigation | ||||||
18 | that may arise from the issuance of a certificate of title | ||||||
19 | based on the excluded representations; | ||||||
20 | (5) the right of redemption, the right to assert a | ||||||
21 | defense to the transfer of title, and reinstatement rights | ||||||
22 | under this Section do not apply; and | ||||||
23 | (6) references to judicial process and court orders in | ||||||
24 | subsection (f-10) of this Section do not include | ||||||
25 | bankruptcy proceedings or orders.
| ||||||
26 | (g) A person holding a certificate of title whose interest |
| |||||||
| |||||||
1 | in the
vehicle has been extinguished or transferred other than | ||||||
2 | by voluntary
transfer shall mail or deliver the certificate, | ||||||
3 | within 20 days
upon request of the Secretary of State. The | ||||||
4 | delivery of the certificate
pursuant to the request of the | ||||||
5 | Secretary of State does not affect the
rights of the person | ||||||
6 | surrendering the certificate, and the action of the
Secretary | ||||||
7 | of State in issuing a new certificate of title as provided
| ||||||
8 | herein is not conclusive upon the rights of an owner or | ||||||
9 | lienholder named
in the old certificate.
| ||||||
10 | (h) The Secretary of State may decline to process any | ||||||
11 | application
for a transfer of an interest in a vehicle | ||||||
12 | hereunder if any fees or
taxes due under this Act from the | ||||||
13 | transferor or the transferee have not
been paid upon | ||||||
14 | reasonable notice and demand.
| ||||||
15 | (i) The Secretary of State shall not be held civilly or | ||||||
16 | criminally
liable to any person because any purported | ||||||
17 | transferor may not have had
the power or authority to make a | ||||||
18 | transfer of any interest in any vehicle
or because a | ||||||
19 | certificate of title issued in error is subsequently used to
| ||||||
20 | commit a fraudulent act.
| ||||||
21 | (Source: P.A. 99-260, eff. 1-1-16 .)
| ||||||
22 | (625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
| ||||||
23 | Sec. 3-117.1. When junking certificates or salvage | ||||||
24 | certificates must
be obtained. | ||||||
25 | (a) Except as provided in Chapter 4 and Section 3-117.3 of |
| |||||||
| |||||||
1 | this Code, a person who possesses a
junk vehicle shall within | ||||||
2 | 15 days cause the certificate of title, salvage
certificate, | ||||||
3 | certificate of purchase, or a similarly acceptable | ||||||
4 | out-of-state
document of ownership to be surrendered to the | ||||||
5 | Secretary of State along with an
application for a junking | ||||||
6 | certificate, except as provided in Section 3-117.2,
whereupon | ||||||
7 | the Secretary of State shall issue to such a person a junking
| ||||||
8 | certificate, which shall authorize the holder thereof to | ||||||
9 | possess, transport,
or, by an endorsement, transfer ownership | ||||||
10 | in such junked vehicle, and a
certificate of title shall not | ||||||
11 | again be issued for such vehicle. The owner of a junk vehicle | ||||||
12 | is not required to surrender the certificate of title under | ||||||
13 | this subsection if (i) there is no lienholder on the | ||||||
14 | certificate of title or (ii) the owner of the junk vehicle has | ||||||
15 | a valid lien release from the lienholder releasing all | ||||||
16 | interest in the vehicle and the owner applying for the junk | ||||||
17 | certificate matches the current record on the certificate of | ||||||
18 | title file for the vehicle.
| ||||||
19 | A licensee who possesses a junk vehicle and a Certificate | ||||||
20 | of Title,
Salvage Certificate, Certificate of Purchase, or a | ||||||
21 | similarly acceptable
out-of-state document of ownership for | ||||||
22 | such junk vehicle, may transport the
junk vehicle to another | ||||||
23 | licensee prior to applying for or obtaining a
junking | ||||||
24 | certificate, by executing a uniform invoice. The licensee
| ||||||
25 | transferor shall furnish a copy of the uniform invoice to the | ||||||
26 | licensee
transferee at the time of transfer. In any case, the |
| |||||||
| |||||||
1 | licensee transferor
shall apply for a junking certificate in | ||||||
2 | conformance with Section 3-117.1
of this Chapter. The | ||||||
3 | following information shall be contained on a uniform
invoice:
| ||||||
4 | (1) The business name, address and dealer license | ||||||
5 | number of the person
disposing of the vehicle, junk | ||||||
6 | vehicle or vehicle cowl;
| ||||||
7 | (2) The name and address of the person acquiring the | ||||||
8 | vehicle, junk
vehicle or vehicle cowl, and if that person | ||||||
9 | is a dealer, the Illinois or
out-of-state dealer license | ||||||
10 | number of that dealer;
| ||||||
11 | (3) The date of the disposition of the vehicle, junk | ||||||
12 | vehicle or vehicle
cowl;
| ||||||
13 | (4) The year, make, model, color and description of | ||||||
14 | each vehicle, junk
vehicle or vehicle cowl disposed of by | ||||||
15 | such person;
| ||||||
16 | (5) The manufacturer's vehicle identification number, | ||||||
17 | Secretary of State
identification number or Illinois | ||||||
18 | Department of State Police number,
for each vehicle, junk | ||||||
19 | vehicle or vehicle cowl part disposed of by such person;
| ||||||
20 | (6) The printed name and legible signature of the | ||||||
21 | person or agent
disposing of the vehicle, junk vehicle or | ||||||
22 | vehicle cowl; and
| ||||||
23 | (7) The printed name and legible signature of the | ||||||
24 | person accepting
delivery of the vehicle, junk vehicle or | ||||||
25 | vehicle cowl.
| ||||||
26 | The Secretary of State may certify a junking manifest in a |
| |||||||
| |||||||
1 | form prescribed by
the Secretary of State that reflects those | ||||||
2 | vehicles for which junking
certificates have been applied or | ||||||
3 | issued. A junking manifest
may be issued to any person and it | ||||||
4 | shall constitute evidence of ownership
for the vehicle listed | ||||||
5 | upon it. A junking manifest may be transferred only
to a person | ||||||
6 | licensed under Section 5-301 of this Code as a scrap | ||||||
7 | processor.
A junking manifest will allow the transportation of | ||||||
8 | those
vehicles to a scrap processor prior to receiving the | ||||||
9 | junk certificate from
the Secretary of State.
| ||||||
10 | (b) An application for a salvage certificate shall be | ||||||
11 | submitted to the
Secretary of State in any of the following | ||||||
12 | situations:
| ||||||
13 | (1) When an insurance company makes a payment of | ||||||
14 | damages on a total loss
claim for a vehicle, the insurance | ||||||
15 | company shall be deemed to be the owner of
such vehicle and | ||||||
16 | the vehicle shall be considered to be salvage except that
| ||||||
17 | ownership of (i) a vehicle that has incurred only hail | ||||||
18 | damage that does
not
affect the operational safety of the | ||||||
19 | vehicle or (ii) any vehicle
9 model years of age or older | ||||||
20 | may, by agreement between
the registered owner and the | ||||||
21 | insurance company, be retained by the registered
owner of | ||||||
22 | such vehicle. The insurance company shall promptly deliver | ||||||
23 | or mail
within 20 days the certificate of title along with | ||||||
24 | proper application and fee
to the Secretary of State, and | ||||||
25 | a salvage certificate shall be issued in the
name of the | ||||||
26 | insurance company. Notwithstanding the foregoing, an |
| |||||||
| |||||||
1 | insurer making payment of damages on a total loss claim | ||||||
2 | for the theft of a vehicle shall not be required to apply | ||||||
3 | for a salvage certificate unless the vehicle is recovered | ||||||
4 | and has incurred damage that initially would have caused | ||||||
5 | the vehicle to be declared a total loss by the insurer. | ||||||
6 | (1.1) When a vehicle of a self-insured company is to | ||||||
7 | be sold in the State of Illinois and has sustained damaged | ||||||
8 | by collision, fire, theft, rust corrosion, or other means | ||||||
9 | so that the self-insured company determines the vehicle to | ||||||
10 | be a total loss, or if the cost of repairing the damage, | ||||||
11 | including labor, would be greater than 70% of its fair | ||||||
12 | market value without that damage, the vehicle shall be | ||||||
13 | considered salvage. The self-insured company shall | ||||||
14 | promptly deliver the certificate of title along with | ||||||
15 | proper application and fee to the Secretary of State, and | ||||||
16 | a salvage certificate shall be issued in the name of the | ||||||
17 | self-insured company. A self-insured company making | ||||||
18 | payment of damages on a total loss claim for the theft of a | ||||||
19 | vehicle may exchange the salvage certificate for a | ||||||
20 | certificate of title if the vehicle is recovered without | ||||||
21 | damage. In such a situation, the self-insured shall fill | ||||||
22 | out and sign a form prescribed by the Secretary of State | ||||||
23 | which contains an affirmation under penalty of perjury | ||||||
24 | that the vehicle was recovered without damage and the | ||||||
25 | Secretary of State may, by rule, require photographs to be | ||||||
26 | submitted.
|
| |||||||
| |||||||
1 | (2) When a vehicle the ownership of which has been | ||||||
2 | transferred to any
person through a certificate of | ||||||
3 | purchase from acquisition of the vehicle at an
auction, | ||||||
4 | other dispositions as set forth in Sections 4-208 and | ||||||
5 | 4-209
of this Code, or a lien arising under Section | ||||||
6 | 18a-501 of this Code shall be deemed
salvage or junk at the | ||||||
7 | option of the purchaser. The person acquiring such
vehicle | ||||||
8 | in such manner shall promptly deliver or mail, within 20 | ||||||
9 | days after the
acquisition of the vehicle, the certificate | ||||||
10 | of purchase, the
proper application and fee, and, if the | ||||||
11 | vehicle is an abandoned mobile home
under the Abandoned | ||||||
12 | Mobile Home Act, a certification from a local law
| ||||||
13 | enforcement agency that the vehicle was purchased or | ||||||
14 | acquired at a public sale
under the Abandoned Mobile Home | ||||||
15 | Act to the Secretary of State and a salvage
certificate or | ||||||
16 | junking certificate shall be issued in the name of that | ||||||
17 | person.
The salvage certificate or junking certificate | ||||||
18 | issued by the Secretary of State
under this Section shall | ||||||
19 | be free of any lien that existed against the vehicle
prior | ||||||
20 | to the time the vehicle was acquired by the applicant | ||||||
21 | under this Code.
| ||||||
22 | (3) A vehicle which has been repossessed by a | ||||||
23 | lienholder shall be
considered to be salvage only when the | ||||||
24 | repossessed vehicle, on the date of
repossession by the | ||||||
25 | lienholder, has sustained damage by collision, fire, | ||||||
26 | theft,
rust corrosion, or other means so that the cost of |
| |||||||
| |||||||
1 | repairing
such damage, including labor, would be greater | ||||||
2 | than 50% 33 1/3% of its fair market
value without such | ||||||
3 | damage. If the lienholder determines that such vehicle is
| ||||||
4 | damaged in excess of 50% 33 1/3% of such fair market value, | ||||||
5 | the lienholder shall,
before sale, transfer or assignment | ||||||
6 | of the vehicle, make application for a
salvage | ||||||
7 | certificate, and shall submit with such application the | ||||||
8 | proper fee
and evidence of possession. If the facts | ||||||
9 | required to be shown in
subsection (f) of Section 3-114 | ||||||
10 | are satisfied, the Secretary of State shall
issue a | ||||||
11 | salvage certificate in the name of the lienholder making | ||||||
12 | the
application. In any case wherein the vehicle | ||||||
13 | repossessed is not damaged in
excess of 50% 33 1/3% of its | ||||||
14 | fair market value, the lienholder
shall comply with the | ||||||
15 | requirements of subsections (f), (f-5), and (f-10) of
| ||||||
16 | Section 3-114, except that the affidavit of repossession | ||||||
17 | made by or on behalf
of the lienholder
shall also contain | ||||||
18 | an affirmation under penalty of perjury that the vehicle
| ||||||
19 | on
the date of sale is not
damaged in
excess of 50% 33 1/3% | ||||||
20 | of its fair market value. If the facts required to be shown
| ||||||
21 | in subsection (f) of Section 3-114 are satisfied, the | ||||||
22 | Secretary of State
shall issue a certificate of title as | ||||||
23 | set forth in Section 3-116 of this Code.
The Secretary of | ||||||
24 | State may by rule or regulation require photographs to be
| ||||||
25 | submitted.
| ||||||
26 | (4) A vehicle which is a part of a fleet of more than 5 |
| |||||||
| |||||||
1 | commercial
vehicles registered in this State or any other | ||||||
2 | state or registered
proportionately among several states | ||||||
3 | shall be considered to be salvage when
such vehicle has | ||||||
4 | sustained damage by collision, fire, theft, rust,
| ||||||
5 | corrosion or similar means so that the cost of repairing | ||||||
6 | such damage, including
labor, would be greater than 50% 33 | ||||||
7 | 1/3% of the fair market value of the vehicle
without such | ||||||
8 | damage. If the owner of a fleet vehicle desires to sell,
| ||||||
9 | transfer, or assign his interest in such vehicle to a | ||||||
10 | person within this State
other than an insurance company | ||||||
11 | licensed to do business within this State, and
the owner | ||||||
12 | determines that such vehicle, at the time of the proposed | ||||||
13 | sale,
transfer or assignment is damaged in excess of 50% | ||||||
14 | 33 1/3% of its fair market
value, the owner shall, before | ||||||
15 | such sale, transfer or assignment, make
application for a | ||||||
16 | salvage certificate. The application shall contain with it
| ||||||
17 | evidence of possession of the vehicle. If the fleet | ||||||
18 | vehicle at the time of its
sale, transfer, or assignment | ||||||
19 | is not damaged in excess of 50% 33 1/3% of its
fair market | ||||||
20 | value, the owner shall so state in a written affirmation | ||||||
21 | on a
form prescribed by the Secretary of State by rule or | ||||||
22 | regulation. The
Secretary of State may by rule or | ||||||
23 | regulation require photographs to be
submitted. Upon sale, | ||||||
24 | transfer or assignment of the fleet vehicle the
owner | ||||||
25 | shall mail the affirmation to the Secretary of State.
| ||||||
26 | (5) A vehicle that has been submerged in water to the
|
| |||||||
| |||||||
1 | point that rising water has reached over the door sill and | ||||||
2 | has
entered the
passenger or trunk compartment is a "flood | ||||||
3 | vehicle". A flood vehicle shall
be considered to be | ||||||
4 | salvage only if the vehicle has sustained damage so that
| ||||||
5 | the cost of repairing the damage, including labor, would | ||||||
6 | be greater than 50% 33
1/3% of the fair market value of the | ||||||
7 | vehicle without that damage. The salvage
certificate | ||||||
8 | issued under this
Section shall indicate the word "flood", | ||||||
9 | and the word "flood" shall be
conspicuously entered on | ||||||
10 | subsequent titles for the vehicle. A person who
possesses | ||||||
11 | or acquires a flood vehicle that is not damaged in excess | ||||||
12 | of 50% 33 1/3%
of its fair market value shall make | ||||||
13 | application for title in accordance with
Section 3-116 of | ||||||
14 | this Code, designating the vehicle as "flood" in a manner
| ||||||
15 | prescribed by the Secretary of State. The certificate of | ||||||
16 | title issued shall
indicate the word "flood", and the word | ||||||
17 | "flood" shall be conspicuously entered
on subsequent | ||||||
18 | titles for the vehicle.
| ||||||
19 | (6) When any licensed rebuilder, repairer, new or used | ||||||
20 | vehicle dealer, or remittance agent has submitted an | ||||||
21 | application for title to a vehicle (other than an | ||||||
22 | application for title to a rebuilt vehicle) that he or she | ||||||
23 | knows or reasonably should have known to have sustained | ||||||
24 | damages in excess of 50% 33 1/3% of the vehicle's fair | ||||||
25 | market value without that damage; provided, however, that | ||||||
26 | any application for a salvage certificate for a vehicle |
| |||||||
| |||||||
1 | recovered from theft and acquired from an insurance | ||||||
2 | company shall be made as required by paragraph (1) of this | ||||||
3 | subsection (b). | ||||||
4 | (c) Any person who without authority acquires, sells, | ||||||
5 | exchanges, gives
away, transfers or destroys or offers to | ||||||
6 | acquire, sell, exchange, give
away, transfer or destroy the | ||||||
7 | certificate of title to any vehicle which is
a junk or salvage | ||||||
8 | vehicle shall be guilty of a Class 3 felony.
| ||||||
9 | (d) Except as provided under subsection (a), any person | ||||||
10 | who knowingly fails to surrender to the Secretary of State a
| ||||||
11 | certificate of title, salvage certificate, certificate of | ||||||
12 | purchase or a
similarly acceptable out-of-state document of | ||||||
13 | ownership as required under
the provisions of this Section is | ||||||
14 | guilty of a Class A misdemeanor for a
first offense and a Class | ||||||
15 | 4 felony for a subsequent offense; except that a
person | ||||||
16 | licensed under this Code who violates paragraph (5) of | ||||||
17 | subsection (b)
of this Section is
guilty of a business offense | ||||||
18 | and shall be fined not less than $1,000 nor more
than $5,000 | ||||||
19 | for a first offense and is guilty of a Class 4 felony
for a | ||||||
20 | second or subsequent violation.
| ||||||
21 | (e) Any vehicle which is salvage or junk may not be driven | ||||||
22 | or operated
on roads and highways within this State. A | ||||||
23 | violation of this subsection is
a Class A misdemeanor. A | ||||||
24 | salvage vehicle displaying valid special plates
issued under | ||||||
25 | Section 3-601(b) of this Code, which is being driven to or
from | ||||||
26 | an inspection conducted under Section 3-308 of this Code, is |
| |||||||
| |||||||
1 | exempt
from the provisions of this subsection. A salvage | ||||||
2 | vehicle for which a
short term permit has been issued under | ||||||
3 | Section 3-307 of this Code is
exempt from the provisions of | ||||||
4 | this subsection for the duration of the permit.
| ||||||
5 | (Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19; | ||||||
6 | 100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)
| ||||||
7 | (625 ILCS 5/3-301) (from Ch. 95 1/2, par. 3-301)
| ||||||
8 | Sec. 3-301. New certificate of title for rebuilt vehicle.
| ||||||
9 | (a) For vehicles 8 model years of age or newer, the | ||||||
10 | Secretary of State
shall issue a new certificate of title to | ||||||
11 | any rebuilt
vehicle or any vehicle which previously had been | ||||||
12 | titled as salvage
in this State or any other jurisdiction upon | ||||||
13 | the successful inspection
of the vehicle in accordance with | ||||||
14 | Section 3-308 of this Article.
| ||||||
15 | (b) Vehicles more than 8 model years old shall not be | ||||||
16 | required to
complete a successful inspection required under | ||||||
17 | Section 3-308 of this Code
before being issued a new | ||||||
18 | certificate of title as provided under this
Section.
| ||||||
19 | (c) Vehicles designated as flood vehicles that have | ||||||
20 | sustained damage
greater than 50% 33 1/3% of their fair market | ||||||
21 | value with that damage shall be
required to complete a
| ||||||
22 | successful
inspection required under Section 3-308 of this | ||||||
23 | Code before being issued a new
certificate of title provided | ||||||
24 | under paragraph (5), subsection (b) of Section
3-117.1.
| ||||||
25 | (Source: P.A. 88-685, eff. 1-24-95; 89-669, eff. 1-1-97.)
|