State Government Administration Committee
Filed: 2/22/2007
 
 

 




 

 		












09500HB0217ham001

LRB095 04358 DRH 31494 a






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AMENDMENT TO HOUSE BILL 217




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    AMENDMENT NO. ______. Amend House Bill 217 on page 1, line 
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5, by replacing "Section 3-113" with "Sections 3-113 and 
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3-202"; and

 
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on page 2, below line 9, by inserting the following:
 



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



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    Sec. 3-202. Perfection of security interest. 

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

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

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Secretary of State of the existing certificate of title, if 
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any, an
application for a certificate of title containing the 
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name and address
of the lienholder and the
required fee. The 
 


 






09500HB0217ham001
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LRB095 04358 DRH 31494 a




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security interest is perfected as of the time of
its creation 
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if the
delivery to the Secretary of State is completed within 
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30
21 days after the
creation of the security interest or 
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receipt by the new lienholder of the
existing certificate of 
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title from a prior lienholder or licensed
dealer, otherwise as 
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of the
time of the delivery.

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


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


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


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


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            (B) If the name of the lienholder is not shown on 
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        an existing
certificate of title issued by that 
 


 






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LRB095 04358 DRH 31494 a




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        jurisdiction, a security interest
may be perfected by 
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        the lienholder delivering to the Secretary of State
the 
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        prescribed notice and by payment of the required fee. 
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        Such security
interest is perfected as of the time of 
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        delivery of the prescribed
notice and payment of the 
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        required fee.


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


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

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