HB3863eng 96TH GENERAL ASSEMBLY

HB3863 Engrossed LRB096 08541 AJO 18662 b

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Code of Civil Procedure is amended by changing Sections 15-1701, 15-1703, and 15-1704 and by adding Sections 15-1202.5 and 15-1508.5 as follows:

(735 ILCS 5/15-1202.5 new)

Sec. 15-1202.5. Dwelling Unit. "Dwelling unit" means a room or suite of rooms providing complete, independent living facilities for at least one person, including permanent provisions for sanitation, cooking, eating, sleeping, and other activities routinely associated with daily life.

(735 ILCS 5/15-1508.5 new)

Sec. 15-1508.5. Notice by holder or purchaser to occupants of mortgaged real estate.

(a) The holder of the certificate of sale or deed issued pursuant to that certificate or, if no certificate or deed was issued, the purchaser, shall:

(1) following the judicial sale under Section 15-1507, but not later than 14 days after the confirmation of sale under Section 15-1508, make a good faith effort to ascertain the identities and addresses of all occupants of dwelling units of the mortgaged real estate; and

(2) following the order confirming sale under Section 15-1508, but not later than 21 days after the order confirming sale, notify all known occupants of dwelling units of the mortgaged real estate that he or she has acquired the mortgaged real estate, including any occupants identified as a result of the good faith effort required under this subsection. The holder or purchaser is not required to provide the notice required by this Section to a mortgagor or party against whom an order of possession has been entered authorizing the removal of the mortgagor or party pursuant to Section 15-1508(g).

(b) The notice required under subsection (a)(2) shall be in writing and shall:

(1) identify the occupant being served by name;

(2) inform the occupant that the mortgaged real estate is the subject of a foreclosure action and that control of the mortgaged real estate has changed;

(3) provide the name, address, and telephone number of the individual or entity whom occupants may contact with concerns about the mortgaged real estate or to request repairs of that property;

(4) include the following language, or language that is substantially similar: "This is NOT a notice to vacate the premises. You will receive additional notice if your lease or rental agreement is being terminated. You may wish to contact a lawyer or your local legal aid or housing counseling agency to discuss any rights that you may have."; and

(5) attach a copy of the order confirming sale or other court order that indicates the holder or purchaser has acquired the mortgaged real estate.

(c) The written notice required by subsection (a)(2) shall be served: by delivering a copy to the known occupant, or by leaving the same with some person of the age of 13 years or older, who is residing on or in possession of the premises; or by sending a copy of the notice to the known occupant by first-class mail, addressed to the occupant by name.

(d) In the event that the holder or purchaser ascertains the identity and address of an occupant of a dwelling unit of the mortgaged real estate more than 14 days after the confirmation of sale under Section 15-1508, the holder or purchaser shall provide the notice required by subsection (a)(2) within 7 days of ascertaining the identity and address of the occupant.

(e)(i) A holder or purchaser who fails to comply with subsections (a), (b), (c), and (d) may not collect any rent due and owing from a known occupant, or terminate a known occupant's tenancy for non-payment of such rent, until the holder or purchaser has served the notice described in subsection (a)(2) of this Section 15-1508.5 upon the occupant. The provisions of this subsection shall be the exclusive remedy for the failure of a holder or purchaser to provide notice under this Section.

(ii) An occupant who previously paid rent for the current rental period to the mortgagor, or other entity with the authority to operate, manage, and conserve the mortgaged real estate at the time of payment, shall not be held liable for that rent by the holder or purchaser, and the occupant's tenancy shall not be terminated for non-payment of rent for that rental period.

(f) Following the confirmation of sale, a holder or purchaser may request, in writing, a copy of the lease or rental agreement of an occupant who has been served the notice prescribed in subsection (a)(2) of this Section, or the notice prescribed in subsection (a-5)(2) of Section 15-1703. An occupant who has received a request shall provide the holder or purchaser with a copy of any lease or rental agreement, or make such lease or rental agreement available for duplication to the holder or purchaser, within 14 days of receiving the request. In the event that there is no written lease or rental agreement, or if the occupant cannot produce such agreement, the occupant may provide a statement, verbally or in writing, about the terms of his or her possession of the unit, including the term of the tenancy, the amount of periodic rental payments, if any, and when rent is due. An occupant shall not unreasonably withhold information requested by a holder or purchaser under this subsection. A holder or purchaser shall include the following in a request under this subsection: (1) the specific information or documentation requested; (2) a mailing address, an electronic mail address if available, and a telephone number for responses to the request; (3) that the occupant shall respond within 14 days of receiving the request. The request under this subsection shall be served in the same manner described in subsection (c) of this Section, and may be served concurrently with the notice required under subsection (a)(2) of this Section. An occupant's failure to comply with the requirements of this subsection shall create the rebuttable presumption, in a proceeding under Section 15-1701(h)(1), that the term of the occupant's current leasehold interest is not more than 30 days.

(g) Within 14 days of the confirmation of sale under Section 15-1508, the holder or purchaser shall post a written notice on the primary entrance of each dwelling unit subject to the foreclosure action. This notice shall:

(1) inform the occupant that the dwelling unit is the subject of a foreclosure action and that control of the mortgaged real estate has changed;

(2) include the following language: "This is NOT a notice to vacate the premises."; and

(3) provide the name, address, and telephone number of the individual or entity whom occupants may contact with concerns about the mortgaged real estate or to request repairs of the property.

(h) In the event that the holder or purchaser is a mortgagee in possession of the mortgaged real estate pursuant to Section 15-1703 at the time of the confirmation of sale and has complied with requirements of subsection (a-5) of Section 15-1703, the holder or purchaser is excused from the requirements of subsections (a) and (g) of this Section 15-1508.5.

(735 ILCS 5/15-1701) (from Ch. 110, par. 15-1701)

Sec. 15-1701. Right to possession.

(a) General. The provisions of this Article shall govern the right to possession of the mortgaged real estate during foreclosure. Possession under this Article includes physical possession of the mortgaged real estate to the same extent to which the mortgagor, absent the foreclosure, would have been entitled to physical possession. For the purposes of Part 17, real estate is residential real estate only if it is residential real estate at the time the foreclosure is commenced.

(b) Pre-Judgment. Prior to the entry of a judgment of foreclosure:

(1) In the case of residential real estate, the mortgagor shall be entitled to possession of the real estate except if (i) the mortgagee shall object and show good cause, (ii) the mortgagee is so authorized by the terms of the mortgage or other written instrument, and (iii) the court is satisfied that there is a reasonable probability that the mortgagee will prevail on a final hearing of the cause, the court shall upon request place the mortgagee in possession. If the residential real estate consists of more than one dwelling unit, then for the purpose of this Part residential real estate shall mean only that dwelling unit or units occupied by persons described in clauses (i), (ii) and (iii) of Section 15-1219.

(2) In all other cases, if (i) the mortgagee is so authorized by the terms of the mortgage or other written instrument, and (ii) the court is satisfied that there is a reasonable probability that the mortgagee will prevail on a final hearing of the cause, the mortgagee shall upon request be placed in possession of the real estate, except that if the mortgagor shall object and show good cause, the court shall allow the mortgagor to remain in possession.

(c) Judgment Through 30 Days After Sale Confirmation. After the entry of a judgment of foreclosure and through the 30th day after a foreclosure sale is confirmed:

(1) Subsection (b) of Section 15-1701 shall be applicable, regardless of the provisions of the mortgage or other instrument, except that after a sale pursuant to the judgment the holder of the certificate of sale (or, if none, the purchaser at the sale) shall have the mortgagee's right to be placed in possession, with all rights and duties of a mortgagee in possession under this Article.

(2) Notwithstanding paragraph (1) of subsection (b) and paragraph (1) of subsection (c) of Section 15-1701, upon request of the mortgagee, a mortgagor of residential real estate shall not be allowed to remain in possession between the expiration of the redemption period and through the 30th day after sale confirmation unless (i) the mortgagor pays to the mortgagee or such holder or purchaser, whichever is applicable, monthly the lesser of the interest due under the mortgage calculated at the mortgage rate of interest applicable as if no default had occurred or the fair rental value of the real estate, or (ii) the mortgagor otherwise shows good cause. Any amounts paid by the mortgagor pursuant to this subsection shall be credited against the amounts due from the mortgagor.

(d) After 30 Days After Sale Confirmation. The holder of the certificate of sale or deed issued pursuant to that certificate or, if no certificate or deed was issued, the purchaser, except to the extent the holder or purchaser may consent otherwise, shall be entitled to possession of the mortgaged real estate, as of the date 30 days after the order confirming the sale is entered, against those parties to the foreclosure whose interests the court has ordered terminated, without further notice to any party, further order of the court, or resort to proceedings under any other statute other than this Article. This right to possession shall be limited by the provisions governing entering and enforcing orders of possession under subsection (g) of Section 15-1508. If the holder or purchaser determines that there are occupants of the mortgaged real estate who have not been made parties to the foreclosure and had their interests terminated therein, the holder or purchaser may bring a proceeding under subsection (h) of this Section or under Article 9 of this Code to terminate the rights of possession of any such occupants. The holder or purchaser shall not be entitled to proceed against any such occupant under Article 9 of this Code until after 30 days after the order confirming the sale is entered. Following the confirmation of sale and until the right of possession of an occupant of a dwelling unit of the mortgaged real estate has been terminated, the holder or purchaser shall: (i) maintain any essential utility services that had been the obligation of the mortgagor, receiver, or mortgagee in possession prior to the order confirming sale; (ii) maintain the mortgaged real estate in the same physical condition as had been the obligation of the mortgagor, receiver, or mortgagee in possession prior to the confirmation of sale; and (iii) maintain the mortgaged real estate in compliance with the requirements of State and local law. Nothing in this subsection shall prohibit the holder or purchaser and an occupant from entering into a new lease agreement that changes their respective utility obligations.

(e) Termination of Leases. A lease of all or any part of the mortgaged real estate shall not be terminated automatically solely by virtue of the entry into possession by (i) a mortgagee or receiver prior to the entry of an order confirming the sale, (ii) the holder of the certificate of sale, (iii) the holder of the deed issued pursuant to that certificate, or (iv) if no certificate or deed was issued, the purchaser at the sale.

(f) Other Statutes; Instruments. The provisions of this Article providing for possession of mortgaged real estate shall supersede any other inconsistent statutory provisions. In particular, and without limitation, whenever a receiver is sought to be appointed in any action in which a foreclosure is also pending, a receiver shall be appointed only in accordance with this Article. Except as may be authorized by this Article, no mortgage or other instrument may modify or supersede the provisions of this Article.

(g) Certain Leases. Leases of the mortgaged real estate entered into by a mortgagee in possession or a receiver and approved by the court in a foreclosure shall be binding on all parties, including the mortgagor after redemption, the purchaser at a sale pursuant to a judgment of foreclosure and any person acquiring an interest in the mortgaged real estate after entry of a judgment of foreclosure in accordance with Sections 15-1402 and 15-1403.

(h) Proceedings Against Certain Occupants.

(1) The mortgagee-in-possession of the mortgaged real estate under Section 15-1703, a receiver appointed under Section 15-1704, a holder of the certificate of sale or deed, or the purchaser may, at any time during the pendency of the foreclosure and up to 90 days after the date of the order confirming the sale, file a supplemental petition for possession against a person not personally named as a party to the foreclosure. The supplemental petition for possession shall name each such occupant against whom possession is sought and state the facts upon which the claim for relief is premised.

(2) The petitioner shall serve upon each named occupant the petition, a notice of hearing on the petition, and, if any, a copy of the certificate of sale or deed. The proceeding for the termination of such occupant's possessory interest, including service of the notice of the hearing and the petition, shall in all respects comport with the requirements of Article 9 of this Code, except as otherwise specified in this Section. The hearing shall be no less than 21 days from the date of service of the notice.

(3) The supplemental petition shall be heard as part of the foreclosure proceeding and without the payment of additional filing fees. An order for possession obtained under this Section shall name each occupant whose interest has been terminated, shall recite that it is only effective as to the occupant so named and those holding under them, and shall be enforceable for no more than 90 days after its entry, except that the 90-day period may be extended to the extent and in the manner provided in Section 9-117 of Article 9 and except as provided in item (4) of this subsection (h).

(4) In a case of foreclosure where the occupant tenant is current on his or her rent, or where timely written notice of to whom and where the rent is to be paid has not been provided to the occupant tenant, or where the occupant tenant has made good-faith efforts to make rental payments in order to keep current, any order of possession must allow the occupant tenant to retain possession of the property covered in his or her rental agreement (i) for 120 days following the notice of the hearing on the supplemental petition that has been properly served upon the occupant, or through the duration of his or her lease, whichever is shorter, but in no event less than 30 days after entry of the order of possession. A mortgagee in possession, receiver, or holder of a certificate of sale or deed, or purchaser at the judicial sale who asserts that the occupant is not current in rent at the time the supplemental petition is filed shall attach an affidavit to that effect to the supplemental petition. If the occupant the tenant, or (ii) through the duration of his or her lease, whichever is shorter. If the tenant has been given timely written notice of to whom and where the rent is to be paid, this item (4) shall only apply if the occupant tenant continues to pay his or her rent in full during the 120-day period or has made good-faith efforts to pay the rent in full during that period. No mortgagee-in-possession, receiver or holder of a certificate of sale or deed, or purchaser who fails to file a supplemental petition under this subsection during the pendency of a mortgage foreclosure shall file a forcible entry and detainer action against an occupant a tenant of the mortgaged real estate until 90 days after a notice of intent to file such action has been properly served upon the occupant tenant.

(5) The court records relating to a supplemental petition for possession filed under this subsection (h) against a tenant who is entitled to notice under item (4) of this subsection (h), or relating to a forcible entry and detainer action brought against a tenant who would have lawful possession of the premises but for the foreclosure of a mortgage on the property, shall be ordered sealed and shall not be disclosed to any person, other than a law enforcement officer or any other representative of a governmental entity, except upon further order of the court.

(Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08.)

(735 ILCS 5/15-1703) (from Ch. 110, par. 15-1703)

Sec. 15-1703. Mortgagee in Possession. (a) Powers and Duties. A mortgagee placed in possession of the real estate pursuant to Section 15-1701 or Section 15-1702 shall have:

(1) such power and authority with respect to the real estate and other property subject to the mortgage, including the right to receive the rents, issues and profits thereof, as may have been conferred upon the mortgagee by the terms of the mortgage or other written instrument authorizing the taking of possession;

(2) all other rights and privileges of a mortgagee in possession under law not inconsistent herewith; and

(3) the same powers, duties and liabilities as a receiver appointed for the real estate in accordance with this Article. If an order placing a mortgagee in possession is modified, revoked or set aside, the mortgagee shall not be liable for any damages to the extent such damages arise solely out of the fact that the mortgagor was removed from possession or that the mortgagee was placed in possession.

(a-5) Notice to occupants.

(1) Within 14 days of taking possession of the mortgaged real estate, the mortgagee in possession shall make a good faith effort to ascertain the identities and addresses of all occupants of dwelling units of the mortgaged real estate.

(2) Within 21 days of taking possession of the mortgaged real estate, the mortgagee in possession shall notify all known occupants of dwelling units of the mortgaged real estate, including any occupants identified as a result of the good faith effort required under this subsection, that he or she has taken possession of the mortgaged real estate. The notice shall be in writing and shall:

(i) identify the occupant being served by name;

(ii) inform the occupant that the mortgaged real estate is the subject of a foreclosure action and that control of the mortgaged real estate has changed;

(iii) provide the name, address, and telephone number of the individual or entity whom occupants may contact with concerns about the mortgaged real estate or to request repairs of that property;

(iv) include the following language, or language that is substantially similar:

"This is NOT a notice to vacate the premises. You will receive additional notice if your lease or rental agreement is being terminated. You may wish to contact a lawyer or your local legal aid or housing counseling agency to discuss any rights that you may have."

(v) attach a copy of the court order placing the mortgagee in possession of the mortgaged real estate.

(3) The written notice required by item (2) of this subsection (a-5) shall be served: by delivering a copy thereof to the known occupant, or by leaving the same with some person of the age of 13 years or older, who is residing on or in possession of the premises; or by sending a copy of the notice to the known occupant by first-class mail, addressed to the occupant by name.

(4) In the event that a mortgagee in possession ascertains the identity and address of an occupant of a dwelling unit of the mortgaged real estate more than 14 days after taking possession of the mortgaged real estate, the mortgagee in possession shall provide the notice required by subsection (a-5)(2) within 7 days of ascertaining the identity and address of the occupant.

(5)(i) A mortgagee in possession who fails to comply with items (2), (3), and (4) of this subsection (a-5) may not collect any rent due and owing from a known occupant, or terminate a known occupant's tenancy for non-payment of such rent, until the mortgagee in possession has served the notice described in item (2) of this subsection (a-5) upon the occupant. The provisions of this subsection shall be the exclusive remedy for the failure of a mortgagee in possession to provide notice under this Section.

(ii) An occupant who previously paid rent for the current rental period to the mortgagor, or other entity with the authority to operate, manage, and conserve the mortgaged real estate at the time of payment, shall not be held liable for that rent by the mortgagee in possession, and the occupant's tenancy shall not be terminated for non-payment of rent for that rental period.

(6) Within 14 days of the order allowing the mortgagee to take possession of the mortgaged real estate, the mortgagee in possession shall post a written notice on the primary entrance of each dwelling unit subject to the foreclosure action that informs the occupants that the mortgagee in possession is now operating and managing the mortgaged real estate. This written notice shall: (i) inform the occupant that the dwelling unit is the subject of a foreclosure action and that control of the mortgaged real estate has changed; (ii) include the following language: "This is NOT a notice to vacate the premises."; and (iii) provide the name, address, and telephone number of the individual or entity whom occupants may contact with concerns about the mortgaged real estate or to request repairs of the property.

(b) Fees and Expenses. A mortgagee in possession shall not be entitled to any fees for so acting, but shall be entitled to reimbursement for reasonable costs, expenses and third party management fees incurred in connection with such possession.

(Source: P.A. 84-1462.)

(735 ILCS 5/15-1704) (from Ch. 110, par. 15-1704)

Sec. 15-1704. Receivers. (a) Receiver. Notwithstanding the provisions of subsections (b), (c) and (d) of Section 15-1701, and except as provided in Section 15-1702, upon request of any party and a showing of good cause, the court shall appoint a receiver for the mortgaged real estate.

(b) Powers. A receiver appointed pursuant to this Article shall have possession of the mortgaged real estate and other property subject to the mortgage during the foreclosure, shall have full power and authority to operate, manage and conserve such property, and shall have all the usual powers of receivers in like cases. Without limiting the foregoing, a receiver shall have the power and authority to:

(1) secure tenants and execute leases for the real estate, the duration and terms of which are reasonable and customary for the type of use involved, and such leases shall have the same priority as if made by the owner of the real estate; but, unless approved by the Court, the receiver shall not execute oil, gas or other mineral leases, or (even if otherwise allowed by law) leases extending beyond the time of the receiver's possession; provided, however, with respect to residential real estate leased by the receiver, nothing in this Section shall affect the legal rights of any lessee with respect to the safety and habitability of the residential real estate;

(2) collect the rents, issues and profits from the mortgaged real estate;

(3) insure the mortgaged real estate against loss by fire or other casualty;

(4) employ counsel, custodians, janitors and other help; and

(5) pay taxes which may have been or may be levied against the mortgaged real estate.

(c) Duties. A receiver appointed pursuant to this Article must manage the mortgaged real estate as would a prudent person, taking into account the effect of the receiver's management on the interest of the mortgagor. A receiver may, without an order of the court, delegate managerial functions to a person in the business of managing real estate of the kind involved who is financially responsible, not related to the mortgagee or receiver and prudently selected. However, the receiver shall remain responsible to the mortgagor or other persons for the acts or omissions of such management agent. When fees are paid to such a management agent, the receiver's fees may be adjusted to the extent the court deems appropriate. In managing the mortgaged real estate and other property subject to the mortgage, a receiver or receiver's delegate, to the extent the receiver receives sufficient receipts from the mortgaged real estate, such other property or other sources, except to the extent ordered otherwise by the court:

(1) shall maintain the existing casualty and liability insurance required in accordance with the mortgage or applicable to the real estate and other property subject to the mortgage at the time the receiver took possession;

(2) shall use reasonable efforts to maintain the real estate and other property subject to the mortgage in at least as good condition as existed at the time the receiver took possession, excepting reasonable wear and tear and damage by any casualty;

(3) shall: (i) maintain any essential utility services that had been the obligation of the mortgagor prior to an order appointing a receiver or allowing the mortgagee to take possession of the mortgaged real estate; (ii) maintain the mortgaged real estate in the same physical condition as had been the obligation of the mortgagor prior to an order appointing a receiver or allowing the mortgagee to take possession of the mortgaged real estate; and (iii) maintain the mortgaged real estate in compliance with the requirements of State and local law;

(4) shall accept all rental payments from an occupant of the mortgaged property and any payments from a third party or any rental assistance program in support of an occupant's housing;

(5) (3) shall apply receipts to payment of ordinary operating expenses, including royalties, rents and other expenses of management;

(6) (4) shall pay any shared or common expense assessments due to any association of owners of interests in real estate to the extent that such assessments are or may become a lien against the mortgaged real estate;

(7) (5) may pay the amounts due under any mortgage if the mortgagee thereof is not a party in the foreclosure;

(8) (6) may carry such additional casualty and liability insurance as is reasonably available and reasonable as to amounts and risks covered;

(9) (7) may make other repairs and improvements necessary to comply with building, housing, and other similar codes or with existing contractual obligations affecting the mortgaged real estate;

(10) (8) may hold receipts as reserves reasonably required for the foregoing purposes; and

(11) (9) may take such other actions as may be reasonably necessary to conserve the mortgaged real estate and other property subject to the mortgage, or as otherwise authorized by the court.

(d) Allocation of Receipts. Receipts received from operation of the real estate and other property subject to the mortgage by the receiver shall be applied in the following order of priority.

(1) to reimbursement of the receiver for all reasonable costs and expenses incurred by the receiver or the receiver's delegates;

(2) to payment of insurance premiums authorized in paragraph (1) of subsection (c) of Section 15-1704;

(3) to payment of the receiver's delegates of any reasonable management fees for managing real estate of the type involved;

(4) to payment of receiver's fees allowed by the court;

(5) to payment of expenses authorized in paragraphs (2), (3), (5), and (6) (4) of subsection (c) of Section 15-1704;

(6) to payment of amounts authorized in paragraph (7) (5) of subsection (c) of Section 15-1704;

(7) to payment of expenses authorized in paragraphs (8) (6) and (9) (7) of subsection (c) of Section 15-1704; and

(8) the balance, if any, shall be held or disbursed as ordered by the court.

(e) Non-Liability for Allocations. A receiver shall in no event be liable to any person for the allocation of, or failure to allocate, receipts to possible expenditures within the same priority category.

(f) Notice to Occupants.

(1) Within 14 days of appointment, the receiver shall make a good faith effort to ascertain the identities and addresses of the mortgaged real estate.

(2) Within 21 days of appointment, the receiver shall notify all occupants of dwelling units of the mortgaged real estate that he or she has been appointed receiver of the mortgaged real estate, including any occupants identified as a result of the good faith effort under this subsection. Such notice shall be in writing and shall:

(i) identify the occupant being served by name;

(ii) inform the occupant that the mortgaged real estate is the subject of a foreclosure action and that control of the mortgaged real estate has changed;

(iii) provide the name, address, and telephone number of the individual or entity whom occupants may contact with concerns about the mortgaged real estate or to request repairs of that property;

(iv) include the following language, or language that is substantially similar:

"This is NOT a notice to vacate the premises. You will receive additional notice if your lease or rental agreement is being terminated. You may wish to contact a lawyer or your local legal aid or housing counseling agency to discuss any rights that you may have."

(v) attach a copy of the order appointing the receiver as receiver for the mortgaged real estate.

(3) The notice required by item (2) of this subsection (f) shall be served: by delivering a written or printed, or partly written and printed, copy thereof to the known occupant, or by leaving the same with some person of the age of 13 years or older, residing on or in possession of the premises; or by sending a copy of the notice to the known occupant by first-class mail, addressed to the occupant by name.

(4) In the event that a receiver ascertains the identity and address of an occupant of a dwelling unit of the mortgaged real estate more than 14 days after appointment, the receiver shall provide the notice required by part (2) of this subsection (f) within 7 days of ascertaining the identity and address of the occupant.

(5)(i) A receiver who fails to comply with items (2), (3), and (4) of this subsection (f) may not collect any rent due and owing from a known occupant, or terminate a known occupant's tenancy for non-payment of such rent, until the receiver has served the notice described in item (2) of this subsection (f) upon the occupant. The provisions of this subsection shall be the exclusive remedy for the failure of a receiver to provide notice under this Section.

(ii) An occupant who previously paid rent for the current rental period to the mortgagor, or other entity with the authority to operate, manage, and conserve the mortgaged real estate at the time of payment, shall not be held liable for that rent by the receiver, and the occupant's tenancy shall not be terminated for non-payment of rent for that rental period.

(6) Within 14 days of appointment, the receiver shall post a written notice on the primary entrance of all dwelling units subject to the foreclosure action that informs occupants that the receiver has been appointed to operate and manage the property. This written notice shall: (i) inform the occupant that the dwelling unit is the subject of a foreclosure action and that control of the mortgaged real estate has changed; (ii) include the following language: "This is NOT a notice to vacate the premises."; and (iii) provide the name, address, and telephone number of the individual or entity whom occupants may contact with concerns about the mortgaged real estate or to request repairs of the property.

(g) Increase of rents. Notwithstanding any other provision of this Article, a receiver shall not charge an occupant of the mortgaged real estate a rental amount greater than that which the occupant had been paying for use and occupancy of the mortgaged real estate prior to the appointment of a receiver, without leave of court or an agreement with the occupant about the increased rent. The court may allow an increase of rent if, upon motion by the receiver, the court finds by a preponderance of the evidence, that the increase of rent is necessary to operate, manage, and conserve the mortgaged real estate pursuant to this Section. A list of the current rents for each unit in the mortgaged real estate, and a list of the proposed rent increase for each of those units, must be attached to a motion for a rent increase under this subsection (g). All occupants of the mortgaged real estate who may be affected by the motion for a rent increase, if not otherwise entitled to notice, shall be notified in writing of the nature of the motion, the date and time of the motion, and the court where the motion will be heard. Such notice shall be by personal service or first-class mail. Nothing in this subsection (g) shall alter the terms of any lease agreement.

(h) (f) Removal. The court may remove a receiver upon a showing of good cause, in which case a new receiver may be appointed in accordance with subsection (b) of Section 15-1702 and subsection (a) of Section 15-1704.

(Source: P.A. 84-1462.)

Section 98. In a foreclosure action filed on or before the effective date of this Act, a holder or purchaser, receiver, or mortgagee in possession required to serve notice or otherwise comply with Section 15-1508.5, Section 15-1703(a-5), and Section 15-1704(f) shall have an additional 60 days to comply with the provisions of this Act.

Section 99. Effective date. This Act takes effect 90 days after becoming law.