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1 | AN ACT concerning regulation.
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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 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||
5 | Conveyance and Encumbrance of Manufactured Homes Act. | ||||||||||||||||||||||||
6 | Section 5. Findings and purpose. | ||||||||||||||||||||||||
7 | (a) The General Assembly finds that there is a need to | ||||||||||||||||||||||||
8 | clarify the legal status of manufactured homes affixed or to be | ||||||||||||||||||||||||
9 | affixed to real property in the state.
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10 | (b) The purpose of this Act is to establish a clear | ||||||||||||||||||||||||
11 | statutory procedure for converting to real property | ||||||||||||||||||||||||
12 | manufactured homes that are affixed to such real property and | ||||||||||||||||||||||||
13 | for the severance of manufactured homes from real property.
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14 | Section 10. Manufactured home; permanently affixed to real | ||||||||||||||||||||||||
15 | property. For the purposes of this Act, "manufactured home" | ||||||||||||||||||||||||
16 | means a manufactured home as defined in subdivision (53) of | ||||||||||||||||||||||||
17 | Section 9-102 of the Uniform Commercial Code. For purposes of | ||||||||||||||||||||||||
18 | this Act, a manufactured home is "permanently affixed" if it is | ||||||||||||||||||||||||
19 | anchored to real property by attachment to a permanent | ||||||||||||||||||||||||
20 | foundation; constructed pursuant to applicable state and local | ||||||||||||||||||||||||
21 | building codes and manufacturer specifications as provided in | ||||||||||||||||||||||||
22 | 24 C.F.R. Part 3285; and connected to residential utilities |
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1 | (such as water, gas, electricity, or sewer or septic service). | ||||||
2 | Nothwithstanding the foregoing, for the purposes of 11 USC | ||||||
3 | 1322(b)(2), a manufactured home shall be deemed to be real | ||||||
4 | property. | ||||||
5 | Section 15. Record Notice. To convey or voluntarily | ||||||
6 | encumber a manufactured home as real property, the following | ||||||
7 | conditions shall be met: | ||||||
8 | (1) the manufactured home shall be permanently affixed to | ||||||
9 | real property;
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10 | (2) the ownership interests in the manufactured home and | ||||||
11 | the real property to which the manufactured home is or shall be | ||||||
12 | permanently affixed shall be identical, provided, however, | ||||||
13 | that the owner of the manufactured home, if not the owner of | ||||||
14 | the real property, is in possession of the real property | ||||||
15 | pursuant to the terms of a lease in recordable form that has a | ||||||
16 | term that continues for at least 20 years after the date of | ||||||
17 | execution, and has the consent of the lessor of the real | ||||||
18 | property;
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19 | (3) the person or persons having an ownership interest in | ||||||
20 | the manufactured home shall execute and record with the | ||||||
21 | recording officer of the county in which the real property is | ||||||
22 | located, an affidavit of affixation as provided in Section 20 | ||||||
23 | of this Act, and satisfy any other applicable requirements of | ||||||
24 | this Act; and
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25 | (4) upon receipt of a certified copy of the affidavit of |
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1 | affixation pursuant to Section 30 of this Act, any person | ||||||
2 | designated therein for filing with the Secretary of State shall | ||||||
3 | file the certified copy of affidavit of affixation with the | ||||||
4 | Secretary of State. Except that:
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5 | (A) in a case described in subsection (a)(4)(A)(i) of | ||||||
6 | Section 20 of this Act, a certified copy of the affidavit | ||||||
7 | of affixation and the original Manufacturer's Statement of | ||||||
8 | Origin, each as recorded in the county in which the real | ||||||
9 | property is located, shall be filed with the Secretary of | ||||||
10 | State pursuant to Section 3-116.1 of the Illinois Vehicle | ||||||
11 | Code;
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12 | (B) in a case described in subsection (a)(4)(B)(i) of | ||||||
13 | Section 20 of this Act, a certified copy of the affidavit | ||||||
14 | of affixation as recorded in the county in which the real | ||||||
15 | property is located, and the original certificate of title | ||||||
16 | shall be filed with the Secretary of State pursuant to | ||||||
17 | Section 3-116.2 of the Illinois Vehicle Code; and
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18 | (C) in a case described in subsections (a)(4)(A)(ii), | ||||||
19 | (a)(4)(B)(ii), or (a)(6) of Section 20 of this Act, a | ||||||
20 | certified copy of the affidavit of affixation and an | ||||||
21 | application for confirmation of conversion shall be filed | ||||||
22 | with the Secretary of State pursuant to Section 3-116.3 of | ||||||
23 | the Illinois Vehicle Code.
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24 | Section 20. Affidavit of affixation. | ||||||
25 | (a) An affidavit of affixation shall contain or be |
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1 | accompanied by:
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2 | (1) the name of the manufacturer, the make, the model | ||||||
3 | name, the model year, the dimensions, the vehicle | ||||||
4 | identification number or numbers of the manufactured home, | ||||||
5 | and whether the manufactured home is new or used;
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6 | (2)(A) a statement that the party executing the | ||||||
7 | affidavit is the owner of the real property described | ||||||
8 | therein; or, (B) if not the owner of the real property, (i) | ||||||
9 | a statement that the party executing the affidavit is in | ||||||
10 | possession of the real property pursuant to the terms of a | ||||||
11 | lease in recordable form that has a term that continues for | ||||||
12 | at least 20 years after the date of execution of the | ||||||
13 | affidavit, and (ii) the consent of the lessor of the real | ||||||
14 | property endorsed upon or attached to the affidavit and | ||||||
15 | acknowledged or proved in the manner as to entitle a | ||||||
16 | conveyance to be recorded;
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17 | (3) the street address and the legal description of the | ||||||
18 | real property to which the manufactured home is or shall be | ||||||
19 | permanently affixed;
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20 | (4) as applicable:
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21 | (A) if the manufactured home is not covered by a | ||||||
22 | certificate of title, a statement by the owner to that | ||||||
23 | effect, and either:
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24 | (i) a statement by the owner of the | ||||||
25 | manufactured home that the manufactured home is | ||||||
26 | covered by a Manufacturer's Statement of Origin, |
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1 | the date the Manufacturer's Statement of Origin | ||||||
2 | was issued, the vehicle identification number or | ||||||
3 | numbers of the manufactured home, and a statement | ||||||
4 | that annexed to the affidavit of affixation is the | ||||||
5 | original Manufacturer's Statement of Origin for | ||||||
6 | the manufactured home, duly endorsed to the owner | ||||||
7 | of the manufactured home, and that the owner of the | ||||||
8 | manufactured home shall surrender the | ||||||
9 | Manufacturer's Statement of Origin; or
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10 | (ii) a statement that the owner of the | ||||||
11 | manufactured home, after diligent search and | ||||||
12 | inquiry, is unable to produce the original | ||||||
13 | Manufacturer's Statement of Origin for the | ||||||
14 | manufactured home and that the owner of the | ||||||
15 | manufactured home shall apply to the Secretary of | ||||||
16 | State for a confirmation of conversion of the | ||||||
17 | manufactured home;
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18 | (B) if the manufactured home is covered by a | ||||||
19 | certificate of title, either:
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20 | (i) a statement by the owner of the | ||||||
21 | manufactured home that the manufactured home is | ||||||
22 | covered by a certificate of title, the date the | ||||||
23 | title was issued, the title number, and that the | ||||||
24 | owner of the manufactured home shall surrender the | ||||||
25 | title; or
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26 | (ii) a statement by the owner of the |
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1 | manufactured home that the manufactured home is | ||||||
2 | covered by a certificate of title, but after | ||||||
3 | diligent search and inquiry the owner is unable to | ||||||
4 | produce the certificate of title for the | ||||||
5 | manufactured home, and that the owner of the | ||||||
6 | manufactured home shall apply to the Secretary of | ||||||
7 | State for a confirmation of conversion of the | ||||||
8 | manufactured home;
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9 | (5) a statement whether or not the manufactured home is | ||||||
10 | subject to one or more security interests or liens, and: | ||||||
11 | (A) if the manufactured home is subject to one or | ||||||
12 | more security interests or liens, the name and address | ||||||
13 | of each party holding a security interest in or lien on | ||||||
14 | the manufactured home, including but not limited to, | ||||||
15 | each holder shown on any certificate of title issued by | ||||||
16 | the Secretary of State, if any; the original principal | ||||||
17 | amount secured by each security interest or lien; and a | ||||||
18 | statement that the security interest or lien shall be | ||||||
19 | released; or
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20 | (B) a statement that each security interest in or | ||||||
21 | lien on the manufactured home, if any, has been | ||||||
22 | released, together with due proof of each such release;
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23 | (6) if the manufactured home is covered by neither a | ||||||
24 | Manufacturer's Statement of Origin nor a certificate of | ||||||
25 | title, a statement by the owner of the manufactured home to | ||||||
26 | that effect, and that the owner of the manufactured home |
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1 | shall apply to the Secretary of State for a confirmation of | ||||||
2 | conversion of the manufactured home;
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3 | (7) a statement that the manufactured home is or shall | ||||||
4 | be permanently affixed to the real property; and
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5 | (8) the name and address of a person designated for | ||||||
6 | filing the certified copy of the affidavit of affixation | ||||||
7 | with the Secretary of State, to whom the recording officer | ||||||
8 | shall return the certified copy of the affidavit of | ||||||
9 | affixation after it has been duly recorded in the real | ||||||
10 | property records, as provided in Section 30 of this Act.
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11 | (b) An affidavit of affixation shall be in the form set | ||||||
12 | forth in subsection (c) of this Section, duly acknowledged or | ||||||
13 | proved in like manner as to entitle a conveyance to be | ||||||
14 | recorded, and when so acknowledged or proved and upon payment | ||||||
15 | of the lawful fees therefor, the recording officer shall | ||||||
16 | immediately cause the affidavit of affixation and any | ||||||
17 | attachments thereto to be duly recorded and indexed in the | ||||||
18 | record of deeds.
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19 | (c) An affidavit of affixation shall be in the form set | ||||||
20 | forth below: | ||||||
21 | The fee for recording and issuing a certified copy of | ||||||
22 | an affidavit of affixation shall be $ _________.
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23 | Section 25. Disposition of liens. Neither the act of | ||||||
24 | permanently affixing a manufactured home to real property, nor | ||||||
25 | the recording of the affidavit of affixation shall impair the |
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1 | rights of any holder of a security interest in or lien on a | ||||||
2 | manufactured home that was perfected as provided in Section | ||||||
3 | 3-202 of the Illinois Vehicle Code, unless and until an | ||||||
4 | application to (i) surrender the title, as provided in Section | ||||||
5 | 3-116.2 of the Illinois Vehicle Code, and (ii) release the | ||||||
6 | security interest or lien, as provided in Section 3-205 of the | ||||||
7 | Illinois Vehicle Code, has been duly filed with and accepted by | ||||||
8 | the Secretary of State. Upon the filing of the release, such | ||||||
9 | perfected security interest or lien is terminated. The | ||||||
10 | recording of an affidavit of affixation does not change the | ||||||
11 | character of any security interest or lien noted on a | ||||||
12 | certificate of title, and no recording tax shall be imposed at | ||||||
13 | the time an affidavit of affixation is recorded upon any | ||||||
14 | security interest in or lien on a manufactured home perfected | ||||||
15 | under Section 3-202 of the Illinois Vehicle Code. | ||||||
16 | Section 30. Notice to Secretary of State. Upon payment of | ||||||
17 | the fees provided by law and recordation of the affidavit of | ||||||
18 | affixation, the recording officer shall endorse the affidavit | ||||||
19 | as "recorded in land records", setting forth thereon the | ||||||
20 | indexing information for the affidavit of affixation; and the | ||||||
21 | recording officer shall forthwith forward a certified copy of | ||||||
22 | the affidavit of affixation and all attachments thereto to the | ||||||
23 | person designated therein for filing with the Secretary of | ||||||
24 | State. Upon receipt of a certified copy of the affidavit of | ||||||
25 | affixation by the person designated therein for filing with the |
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1 | Secretary of State, that person shall forthwith deliver for | ||||||
2 | filing to the Secretary of State the certified copy of the | ||||||
3 | affidavit of affixation and other documents as provided in | ||||||
4 | subsection (4) of Section 15 of this Act. | ||||||
5 | Section 35. Effect of recorded affidavit of affixation. A | ||||||
6 | manufactured home shall be deemed to be real property when all | ||||||
7 | of the following events have occurred:
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8 | (a) the manufactured home is permanently affixed to land as | ||||||
9 | provided in Section 10 of this Act;
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10 | (b) an affidavit of affixation conforming to the | ||||||
11 | requirements of Section 20 of this Act has been recorded;
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12 | (c) a certified copy of the affidavit of affixation has | ||||||
13 | been delivered for filing to the Secretary of State as provided | ||||||
14 | in Section 30 of this Act; and
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15 | (d) the requirements of Section 3-116.1, 3-116.2, or | ||||||
16 | 3-116.3 of the Illinois Vehicle Code, as applicable, have been | ||||||
17 | satisfied.
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18 | Section 40. Conveyance and encumbrance as real property. | ||||||
19 | Upon the satisfaction of the requirements of Section 35 of this | ||||||
20 | Act and, as applicable, the requirements of Section 3-116.1, | ||||||
21 | 3-116.2, or 3-116.3 of the Illinois Vehicle Code, the | ||||||
22 | manufactured home shall be deemed to be real property; any | ||||||
23 | mortgage, deed of trust, lien or security interest which can | ||||||
24 | attach to land and buildings erected thereon or fixtures |
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1 | affixed thereto shall attach as of the date of its recording in | ||||||
2 | the same manner as if the manufactured home were built from | ||||||
3 | ordinary building materials on site; title to the manufactured | ||||||
4 | home shall be transferred by deed or other form of conveyance | ||||||
5 | that is effective to transfer an interest in real property, | ||||||
6 | together with the land to which the structure has been affixed; | ||||||
7 | and the manufactured home shall be deemed to be real property | ||||||
8 | and shall be governed by the laws applicable to real property. | ||||||
9 | Section 45. Manufactured home that remains personal | ||||||
10 | property or a fixture. Except as provided in Sections 20, 30, | ||||||
11 | 35, and 40 of this Act, an affidavit of affixation is not | ||||||
12 | necessary or effective to convey or encumber a manufactured | ||||||
13 | home or to change the character of a manufactured home to real | ||||||
14 | property. Every conveyance of land upon which is located a | ||||||
15 | manufactured home for which no affidavit of affixation has been | ||||||
16 | recorded or for which an affidavit of severance has been | ||||||
17 | recorded, shall contain a recital that such conveyance does not | ||||||
18 | affect the title to the manufactured home and that the transfer | ||||||
19 | or encumbrance thereof can only be made pursuant to the | ||||||
20 | provisions of the Illinois Vehicle Code. Any agreement by any | ||||||
21 | party to the transaction whereby the requirements of this | ||||||
22 | Section are waived shall be void as contrary to public policy. | ||||||
23 | Section 50. Applicability. Nothing in this Act shall impair | ||||||
24 | any rights existing under the law prior to the effective date |
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1 | of this Act of any one claiming an interest in a manufactured | ||||||
2 | home. | ||||||
3 | Section 55. Affidavit of severance. | ||||||
4 | (a) If and when a manufactured home for which an affidavit | ||||||
5 | of affixation has been recorded is detached or severed from the | ||||||
6 | real property to which it is affixed, the person or persons | ||||||
7 | having an interest in the real property shall record an | ||||||
8 | affidavit of severance in the land records of the county where | ||||||
9 | the affidavit of affixation for the manufactured home is | ||||||
10 | recorded. The affidavit of severance shall contain or be | ||||||
11 | accompanied by:
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12 | (1) the name, residence, and mailing address of the | ||||||
13 | owner of the manufactured home;
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14 | (2) a description of the manufactured home including | ||||||
15 | the name of the manufacturer, the make, the model name, the | ||||||
16 | model year, the dimensions, the vehicle identification | ||||||
17 | number or numbers of the manufactured home, and whether it | ||||||
18 | is new or used;
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19 | (3) the book number, page number, and date of | ||||||
20 | recordation of the affidavit of affixation;
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21 | (4) a statement of either (A) any facts or information | ||||||
22 | known to the party executing the affidavit that could | ||||||
23 | reasonably affect the validity of the title of the | ||||||
24 | manufactured home or the existence or non-existence of a | ||||||
25 | security interest in or lien on it, or (B) that no such |
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1 | facts or information are known to such party; | ||||||
2 | (5) a sworn declaration by an attorney at law duly | ||||||
3 | admitted to practice in the courts of the State of | ||||||
4 | Illinois, or an agent of a title insurance company duly | ||||||
5 | licensed to issue policies of title insurance in the State | ||||||
6 | of Illinois, that the manufactured home is free and clear | ||||||
7 | of all security interests, liens, and encumbrances; and (i) | ||||||
8 | any facts or information known to him or her that could | ||||||
9 | reasonably affect the validity of the title of the | ||||||
10 | manufactured home or the existence or non-existence of a | ||||||
11 | security interest in or lien on it, or (ii) that no such | ||||||
12 | facts or information are known to him or her; and
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13 | (6) the name and address of the person designated for | ||||||
14 | filing the certified copy of the affidavit of severance | ||||||
15 | with the Secretary of State, to whom the recording officer | ||||||
16 | shall return the certified copy of the affidavit of | ||||||
17 | severance after it has been duly recorded in the real | ||||||
18 | property records, as provided in subsection (d) of this | ||||||
19 | Section.
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20 | (b) The affidavit of severance shall be in the form set | ||||||
21 | forth in subsection (c) of this Section, duly acknowledged or | ||||||
22 | proved in like manner as to entitle a conveyance to be | ||||||
23 | recorded, and when so acknowledged or proved and upon payment | ||||||
24 | of the lawful fees therefor, such recording officer shall | ||||||
25 | immediately cause the affidavit and any attachments thereto to | ||||||
26 | be duly recorded and indexed in the record of deeds.
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1 | (c) An affidavit of severance shall be in the form set | ||||||
2 | forth below: | ||||||
3 | Recording Fee. The fee for recording an affidavit of | ||||||
4 | severance shall be $ _________.
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5 | (d) Upon payment of the fees provided by law and | ||||||
6 | recordation of the affidavit of severance, the recording | ||||||
7 | officer shall endorse the affidavit as "recorded in land | ||||||
8 | records," setting forth thereon the indexing information for | ||||||
9 | the affidavit of severance, and the recording officer shall | ||||||
10 | forthwith forward a certified copy of the affidavit of | ||||||
11 | severance to the person designated therein for filing with the | ||||||
12 | Secretary of State. Upon receipt of a certified copy of the | ||||||
13 | affidavit of severance by the person designated therein for | ||||||
14 | filing with the Secretary of State, that person shall deliver | ||||||
15 | for filing to the Secretary of State the certified copy of the | ||||||
16 | affidavit of severance and the other documents provided in | ||||||
17 | subsection (a) of this Section.
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18 | Section 60. Documents in trust. | ||||||
19 | (a) Manufacturer's statement of origin. The holder of a | ||||||
20 | Manufacturer's Statement of Origin to a manufactured home may | ||||||
21 | deliver it to any person to facilitate conveying or encumbering | ||||||
22 | the home. Any person receiving the Manufacturer's Statement of | ||||||
23 | Origin, so delivered, holds it in trust for the person | ||||||
24 | delivering it.
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25 | (b) Lien release. The holder of a security interest in a |
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1 | manufactured home may deliver lien release documents to any | ||||||
2 | person to facilitate conveying or encumbering the home. Any | ||||||
3 | person receiving the lien release documents, so delivered, | ||||||
4 | holds the documents in trust for the lienholder.
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5 | Section 65. The Mobile Home Local Services Tax Act is | ||||||
6 | amended by changing Section 1 as follows:
| ||||||
7 | (35 ILCS 515/1) (from Ch. 120, par. 1201)
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8 | Sec. 1.
As used in this Act, "mobile home" means a factory | ||||||
9 | assembled
structure designed for permanent habitation and so | ||||||
10 | constructed as to permit its
transport on wheels, temporarily | ||||||
11 | or permanently attached to its frame, from the
place of its | ||||||
12 | construction to the location, or subsequent locations, and
| ||||||
13 | placement on a temporary foundation, at which it is intended to | ||||||
14 | be a permanent
habitation, and situated so as to permit the | ||||||
15 | occupancy thereof as a dwelling
place for one or more persons , | ||||||
16 | and includes a manufactured home as defined in paragraph (53) | ||||||
17 | of Section 9-102 of the Uniform Commercial Code , provided that | ||||||
18 | any such structure resting in
whole on a permanent foundation, | ||||||
19 | with wheels, tongue and hitch removed at the
time of | ||||||
20 | registration provided for in Section 4 of this Act, shall not | ||||||
21 | be
construed as a "mobile home", but shall be assessed and | ||||||
22 | taxed as real property
as defined by Section 1-130 of the | ||||||
23 | Property Tax Code. A manufactured home as defined in paragraph | ||||||
24 | (53) of Section 9-102 of the Uniform Commercial Code that is |
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| |||||||
1 | real property as defined in Section 40 of the Conveyance and | ||||||
2 | Encumbrance of Manufactured Homes Act, shall not be construed | ||||||
3 | as a "mobile home", but shall be assessed and taxed as real | ||||||
4 | property as defined by Section 1-130 of the Property Tax Code. | ||||||
5 | Mobile homes owned by a
corporation or partnership and on which | ||||||
6 | personal property taxes are paid as
required under the Revenue | ||||||
7 | Act of 1939 shall not be subject to this tax. Mobile
homes | ||||||
8 | located on a dealer's lot for resale purposes or as an office | ||||||
9 | shall not
be subject to this tax.
| ||||||
10 | (Source: P.A. 88-670, eff. 12-2-94.)
| ||||||
11 | Section 70. The Illinois Banking Act is amended by changing | ||||||
12 | Sections 3, 5a, 5d, and 6.1 as follows:
| ||||||
13 | (205 ILCS 5/3) (from Ch. 17, par. 309)
| ||||||
14 | Sec. 3. Formation and primary powers. It shall be lawful to | ||||||
15 | form banks,
as herein provided, for the purpose of discount and | ||||||
16 | deposit, buying and
selling exchange and doing a general | ||||||
17 | banking business, excepting the
issuing of bills to circulate | ||||||
18 | as money; and such banks shall have the power
to loan money on | ||||||
19 | personal and real estate security, and to accept and execute
| ||||||
20 | trusts upon obtaining a certificate of authority pursuant to | ||||||
21 | the "Corporate
Fiduciary Act", and shall be subject to all of | ||||||
22 | the provisions of this Act. For purposes of this Section, "real | ||||||
23 | estate" includes a manufactured home as defined in paragraph | ||||||
24 | (53) of Section 9-102 of the Uniform Commercial Code that is |
| |||||||
| |||||||
1 | real property as defined in Section 40 of the Conveyance and | ||||||
2 | Encumbrance of Manufactured Homes Act.
| ||||||
3 | (Source: P.A. 85-1402.)
| ||||||
4 | (205 ILCS 5/5a) (from Ch. 17, par. 312)
| ||||||
5 | Sec. 5a. Reverse mortgage loans. Notwithstanding any other | ||||||
6 | provision of
this Act, a bank may engage in making "reverse | ||||||
7 | mortgage" loans.
| ||||||
8 | For purposes of this Section, a "reverse mortgage" loan | ||||||
9 | shall be a loan
extended on the basis of existing equity in | ||||||
10 | homestead property. A bank,
in making a "reverse mortgage" | ||||||
11 | loan, may add deferred interest to principal
or otherwise | ||||||
12 | provide for the charging of interest or premium on the deferred
| ||||||
13 | interest.
| ||||||
14 | The loans shall be repaid upon sale of the property or upon | ||||||
15 | the death
of the owner or, if the property is in joint tenancy, | ||||||
16 | upon the death of
the last surviving joint tenant who had an | ||||||
17 | interest in the property
at the time the loan was initiated.
| ||||||
18 | "Homestead" property, for purposes of this Section, means | ||||||
19 | the domicile
and contiguous real estate owned and occupied by | ||||||
20 | the mortgagor , and includes a manufactured home as defined in | ||||||
21 | paragraph (53) of Section 9-102 of the Uniform Commercial Code | ||||||
22 | that is used as the domicile and is real property as defined in | ||||||
23 | Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
24 | Homes Act .
| ||||||
25 | The Commissioner of Banks and Real Estate shall
prescribe |
| |||||||
| |||||||
1 | rules governing this Section and
Section 1-6a of the Illinois | ||||||
2 | Savings and Loan Act of 1985.
| ||||||
3 | (Source: P.A. 88-643, eff. 1-1-95; 89-508, eff. 7-3-96.)
| ||||||
4 | (205 ILCS 5/5d) (from Ch. 17, par. 312.3)
| ||||||
5 | Sec. 5d.
Notwithstanding any other provision of this Act, a | ||||||
6 | bank may
engage in making revolving credit loans secured by | ||||||
7 | mortgages or deeds of
trust on real property or by security | ||||||
8 | assignments of beneficial interests
in land trusts.
| ||||||
9 | For purposes of this Section, "revolving credit", has the | ||||||
10 | meaning defined
in Section 4.1 of "An Act in relation to the | ||||||
11 | rate of interest and other
charges in connection with sales on | ||||||
12 | credit and the lending of money", approved
May 24, 1879, as | ||||||
13 | amended.
| ||||||
14 | Any mortgage or deed of trust given to secure a revolving | ||||||
15 | credit loan may,
and when so expressed therein shall, secure | ||||||
16 | not only the existing indebtedness,
but also such future | ||||||
17 | advances, whether such advances are obligatory or to
be made at | ||||||
18 | the option of the lender, or otherwise, as are made within | ||||||
19 | twenty
years from the date thereof, to the same extent as if | ||||||
20 | such future advances
were made on the date of the execution of | ||||||
21 | such mortgage or deed of trust,
although there may be no | ||||||
22 | advance made at the time of execution of such mortgage
or other | ||||||
23 | instrument, and although there may be no indebtedness | ||||||
24 | outstanding
at the time any advance is made. The lien of such | ||||||
25 | mortgage or deed of
trust, as to third persons without actual |
| |||||||
| |||||||
1 | notice thereof, shall be valid as
to all such indebtedness and | ||||||
2 | future advances from the time said mortgage or
deed of trust is | ||||||
3 | filed for record in the office of the Recorder of Deeds or
the | ||||||
4 | Registrar of Titles of the county where the real property | ||||||
5 | described
therein is located. The total amount of indebtedness | ||||||
6 | that may be so
secured may increase or decrease from time to | ||||||
7 | time, but the total unpaid
balance so secured at any one time | ||||||
8 | shall not exceed a maximum principal
amount which must be | ||||||
9 | specified in such mortgage or deed of trust, plus
interest | ||||||
10 | thereon, and any disbursements made for the payment of taxes,
| ||||||
11 | special assessments, or insurance on said real property, with | ||||||
12 | interest on
such disbursements.
| ||||||
13 | Any such mortgage or deed of trust shall be valid and have | ||||||
14 | priority over
all subsequent liens and encumbrances, including | ||||||
15 | statutory liens, except
taxes and assessments levied on said | ||||||
16 | real property.
| ||||||
17 | For purposes of this Section, "real property" includes a | ||||||
18 | manufactured home as defined in paragraph (53) of Section 9-102 | ||||||
19 | of the Uniform Commercial Code that is real property as defined | ||||||
20 | in Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
21 | Homes Act. | ||||||
22 | (Source: P.A. 83-1539; 83-1380.)
| ||||||
23 | (205 ILCS 5/6.1) (from Ch. 17, par. 313.1)
| ||||||
24 | Sec. 6.1. Non-recourse reverse mortgage loans.
| ||||||
25 | (a) It is the intent of this amendatory Act of 1991 that |
| |||||||
| |||||||
1 | homeowners at
least 62 years of age be permitted to meet their | ||||||
2 | financial needs by
accessing the equity in their homes through | ||||||
3 | a reverse mortgage. The
General Assembly recognizes that many | ||||||
4 | restrictions and requirements that
exist to govern traditional | ||||||
5 | mortgage transactions are inapplicable in the
context of | ||||||
6 | reverse mortgages. In order to foster reverse mortgage
| ||||||
7 | transactions and better serve the citizens of this State, this | ||||||
8 | Section
authorizes the making of reverse mortgages, and | ||||||
9 | expressly relieves reverse
mortgage lenders and borrowers from | ||||||
10 | compliance with inappropriate requirements.
| ||||||
11 | As used in this Section, "borrower" means any homeowner who | ||||||
12 | is, or whose
spouse is, at least 62 years of age.
| ||||||
13 | As used in this Section, "real property" includes a | ||||||
14 | manufactured home as defined in paragraph (53) of Section 9-102 | ||||||
15 | of the Uniform Commercial Code that is real property as defined | ||||||
16 | in Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
17 | Homes Act. | ||||||
18 | As used in this Section, "reverse mortgage" means a | ||||||
19 | non-recourse loan,
secured by real property, that complies with | ||||||
20 | all of the following:
| ||||||
21 | (1) Provides cash advances to a borrower based on the | ||||||
22 | equity in a
borrower's owner-occupied principal residence, | ||||||
23 | provided that it is a
residence designed to be occupied by | ||||||
24 | not more than 4 families.
| ||||||
25 | (2) Requires no payment of principal or interest until | ||||||
26 | the entire loan
becomes due and payable.
|
| |||||||
| |||||||
1 | (b) Reverse mortgage loans shall be subject only to all of | ||||||
2 | the following
provisions:
| ||||||
3 | (1) Payment, in whole or in part, shall be permitted | ||||||
4 | without penalty
at any time during the term of the | ||||||
5 | mortgage.
| ||||||
6 | (2) A reverse mortgage may provide for an interest rate | ||||||
7 | that is fixed
or adjustable and may provide for interest | ||||||
8 | that is contingent on
appreciation in the value of the | ||||||
9 | property.
| ||||||
10 | (3) If a reverse mortgage provides for periodic | ||||||
11 | advances to a
borrower, the advances may not be reduced in | ||||||
12 | amount or number based on any
adjustment in the interest | ||||||
13 | rate.
| ||||||
14 | (4) A reverse mortgage may be subject to any additional | ||||||
15 | terms and
conditions imposed by a lender that are required | ||||||
16 | under the provisions of
the federal Housing and Community | ||||||
17 | Development Act of 1987 to enable the
lender to obtain | ||||||
18 | federal government insurance on the mortgage if the loans
| ||||||
19 | are to be insured under that Act.
| ||||||
20 | (c) The repayment obligation under a reverse mortgage is | ||||||
21 | subject to all
of the following:
| ||||||
22 | (1) Temporary absences from the home not exceeding 60 | ||||||
23 | consecutive days
shall not cause the mortgage to become due | ||||||
24 | and payable.
| ||||||
25 | (2) Temporary absences from the home exceeding 60 days, | ||||||
26 | but not
exceeding one year shall not cause the mortgage to |
| |||||||
| |||||||
1 | become due and payable,
provided that the borrower has | ||||||
2 | taken action that secures the home in a
manner satisfactory | ||||||
3 | to the lender.
| ||||||
4 | (3) The lender must disclose any interest or other fees | ||||||
5 | to be charged
during the period that commences on the date | ||||||
6 | the mortgage becomes due and
payable and ends when | ||||||
7 | repayment in full is made in accordance with
applicable | ||||||
8 | State and federal laws, rules, and regulations.
| ||||||
9 | (d) A reverse mortgage shall become due and payable upon | ||||||
10 | the occurrence
of any of the following events:
| ||||||
11 | (1) The real property securing the loan is sold.
| ||||||
12 | (2) All borrowers cease to occupy the home as a | ||||||
13 | principal residence.
| ||||||
14 | (3) A fixed maturity date agreed to by the lender and | ||||||
15 | the borrower
is reached.
| ||||||
16 | (4) An event that is specified in the loan documents | ||||||
17 | and that
jeopardizes the lender's security occurs.
| ||||||
18 | (e) No reverse mortgage commitment may be made by a lender | ||||||
19 | unless the
loan applicant attests, in writing, that the | ||||||
20 | applicant has received from
the lender, at the time of initial | ||||||
21 | inquiry, a statement prepared by the
Department on Aging | ||||||
22 | regarding the advisability and availability of
independent | ||||||
23 | information and counseling services on reverse mortgages.
| ||||||
24 | (Source: P.A. 87-488.)
| ||||||
25 | Section 75. The Illinois Savings and Loan Act of 1985 is |
| |||||||
| |||||||
1 | amended by changing Sections 1-10.30 and 5-2 as follows:
| ||||||
2 | (205 ILCS 105/1-10.30) (from Ch. 17, par. 3301-10.30)
| ||||||
3 | Sec. 1-10.30. "Real property": the interests, benefits, | ||||||
4 | and rights inherent
in the ownership of the physical real | ||||||
5 | estate. It is the rights with which
the ownership of real | ||||||
6 | estate is endowed. Real property includes a manufactured home | ||||||
7 | as defined in paragraph (53) of Section 9-102 of the Uniform | ||||||
8 | Commercial Code that is real property as defined in Section 40 | ||||||
9 | of the Conveyance and Encumbrance of Manufactured Homes Act. | ||||||
10 | For purposes of this Act, the
term "Real Estate" is synonymous | ||||||
11 | with "Real Property".
| ||||||
12 | (Source: P.A. 84-543.)
| ||||||
13 | (205 ILCS 105/5-2) (from Ch. 17, par. 3305-2)
| ||||||
14 | Sec. 5-2. Investment in loans. An association may
loan | ||||||
15 | funds to members as follows:
| ||||||
16 | (a) On the security of withdrawable capital accounts, but | ||||||
17 | no such
loan shall exceed the withdrawal value of the pledged | ||||||
18 | account;
| ||||||
19 | (b) On the security of real estate:
| ||||||
20 | (1) Of a value, determined in accordance with Section 5-12 | ||||||
21 | of this
Act, sufficient to provide good and ample security for | ||||||
22 | the loan;
| ||||||
23 | (2) With a fee simple title or a leasehold title of not | ||||||
24 | less duration
than 10 years beyond the maturity of the loan;
|
| |||||||
| |||||||
1 | (3) With the title established by such evidence of title as | ||||||
2 | is
consistent with sound lending practices in the locality;
| ||||||
3 | (4) With the security interest in such real estate | ||||||
4 | evidenced by an
appropriate written instrument and the loan | ||||||
5 | evidenced by a note, bond or
similar written instrument. A loan | ||||||
6 | on the security of the whole of the
beneficial interest in a | ||||||
7 | land trust satisfies the requirements of this
paragraph if the | ||||||
8 | title to the land is held by a corporate trustee and if
the | ||||||
9 | real estate held in the land trust meets the other requirements | ||||||
10 | of
this subsection; and
| ||||||
11 | (5) With a mortgage loan not to exceed 40 years;
| ||||||
12 | (c) For the purpose of repair, improvement, | ||||||
13 | rehabilitation,
furnishing or equipment of real estate or any | ||||||
14 | other purpose;
| ||||||
15 | (d) For the purpose of financing or refinancing an existing
| ||||||
16 | ownership interest in certificates of stock, certificates of | ||||||
17 | beneficial
interest or other evidence of an ownership interest | ||||||
18 | in, and a
proprietary lease from, a corporation, trust or | ||||||
19 | partnership formed for
the purpose of the cooperative ownership | ||||||
20 | of real estate, secured by the
assignment or transfer of such | ||||||
21 | certificates or other evidence of
ownership of the borrower;
| ||||||
22 | (e) Through the purchase of loans which at the time of | ||||||
23 | purchase the
association could make in accordance with this | ||||||
24 | Section and the by-laws;
| ||||||
25 | (f) Through the purchase of installment contracts for the | ||||||
26 | sale of
real estate, and title thereto which is subject to such |
| |||||||
| |||||||
1 | contracts, but
in each instance only if the association at the | ||||||
2 | time of purchase could
make a mortgage loan of the same amount | ||||||
3 | and for the same length of time
on the security of such real | ||||||
4 | estate;
| ||||||
5 | (g) Through loans guaranteed or insured, wholly or in part | ||||||
6 | by the
United States or any of its instrumentalities, and | ||||||
7 | without regard to the
limits in amount and terms otherwise | ||||||
8 | imposed by this Article;
| ||||||
9 | (h) Through secured or unsecured loans for business, | ||||||
10 | corporate,
personal, family, or household purposes, or for | ||||||
11 | secured or unsecured loans
for agricultural or commercial | ||||||
12 | purposes to the same extent that such
agricultural or | ||||||
13 | commercial loans are authorized by federal law for any
savings | ||||||
14 | and loan association organized under federal law and authorized | ||||||
15 | to
do business in this State, except that loans to service | ||||||
16 | corporations
shall not be subject to the limitations of this | ||||||
17 | paragraph;
| ||||||
18 | (i) For the purpose of financing a manufactured home mobile | ||||||
19 | home financing subject, however, to
the regulation of the | ||||||
20 | Commissioner . As used in this Section, "manufactured home" | ||||||
21 | means a manufactured home as defined in paragraph (53) of | ||||||
22 | Section 9-102 of the Uniform Commercial Code ;
| ||||||
23 | (j) Through loans to its members secured by the cash | ||||||
24 | surrender value of
any life insurance policy or any collateral | ||||||
25 | which would be a legal
investment if made by such association | ||||||
26 | pursuant to the terms of this Act; and
|
| |||||||
| |||||||
1 | (k) Any provision of this Act to the contrary | ||||||
2 | notwithstanding, any
association may make any loan to its | ||||||
3 | members or investment which such
association could make if it | ||||||
4 | were incorporated and operating as an
association organized | ||||||
5 | under the laws of the United States.
| ||||||
6 | (Source: P.A. 86-137.)
| ||||||
7 | Section 80. The Savings Bank Act is amended by changing | ||||||
8 | Sections 6002 and 6008 as follows:
| ||||||
9 | (205 ILCS 205/6002) (from Ch. 17, par. 7306-2)
| ||||||
10 | Sec. 6002. Investment in loans. | ||||||
11 | (a) Subject to the regulations of the
Commissioner, a | ||||||
12 | savings bank may loan funds as follows:
| ||||||
13 | (1) On the security of deposit accounts, but no such
| ||||||
14 | loan shall exceed the withdrawal value of the pledged | ||||||
15 | account.
| ||||||
16 | (2) On the security of real estate:
| ||||||
17 |
(A) of a value, determined in accordance with this | ||||||
18 | Act,
sufficient to provide good and ample security for | ||||||
19 | the loan;
| ||||||
20 |
(B) with a fee simple title or a leasehold title;
| ||||||
21 | (C) with the title established by evidence of title
| ||||||
22 | as is consistent with sound lending practices in the | ||||||
23 | locality;
| ||||||
24 |
(D) with the security interest in the real estate
|
| |||||||
| |||||||
1 | evidenced by an appropriate written instrument and the | ||||||
2 | loan
evidenced by a note, bond, or similar written | ||||||
3 | instrument; a loan
on the security of the whole of the | ||||||
4 | beneficial interest in a land
trust satisfies the | ||||||
5 | requirements of this paragraph if the title to
the land | ||||||
6 | is held by a corporate trustee and if the real estate | ||||||
7 | held
in the land trust meets the other requirements of | ||||||
8 | this subsection;
| ||||||
9 |
(E) with a mortgage loan not to exceed 40 years.
| ||||||
10 | (3) For the purpose of repair, improvement, | ||||||
11 | rehabilitation,
furnishing, or equipment of real estate.
| ||||||
12 | (4) For the purpose of financing or refinancing an | ||||||
13 | existing
ownership interest in certificates of stock, | ||||||
14 | certificates of
beneficial interest, other evidence of an | ||||||
15 | ownership interest in,
or a proprietary lease from a | ||||||
16 | corporation, trust, or partnership
formed for the purpose | ||||||
17 | of the cooperative ownership of real estate,
secured by the | ||||||
18 | assignment or transfer of certificates or other
evidence of | ||||||
19 | ownership of the borrower.
| ||||||
20 | (5) Through the purchase of loans that, at the time of
| ||||||
21 | purchase, the savings bank could make in accordance with | ||||||
22 | this
Section and the bylaws.
| ||||||
23 | (6) Through the purchase of installment contracts for | ||||||
24 | the
sale of real estate and title thereto that is subject | ||||||
25 | to the
contracts, but in each instance only if the savings | ||||||
26 | bank, at the
time of purchase, could make a mortgage loan |
| |||||||
| |||||||
1 | of the same amount and
for the same length of time on the | ||||||
2 | security of the real estate.
| ||||||
3 | (7) Through loans guaranteed or insured, wholly or in | ||||||
4 | part,
by the United States or any of its instrumentalities.
| ||||||
5 | (8) Subject to regulations adopted by the | ||||||
6 | Commissioner, through
secured or unsecured loans for | ||||||
7 | business, corporate, commercial, or
agricultural purposes; | ||||||
8 | provided that the total of all loans granted under
this | ||||||
9 | paragraph shall not exceed 15% of the savings bank's total | ||||||
10 | assets unless
a greater amount is authorized in writing by | ||||||
11 | the Commissioner.
| ||||||
12 | (9) For the purpose of financing a manufactured home | ||||||
13 | mobile home financing subject,
however, to the regulation | ||||||
14 | of the Commissioner. As used in this Section, "manufactured | ||||||
15 | home" means a manufactured home as defined in paragraph | ||||||
16 | (53) of Section 9-102 of the Uniform Commercial Code.
| ||||||
17 | (10) Through loans secured by the cash surrender value | ||||||
18 | of any
life insurance policy or any collateral that would | ||||||
19 | be a legal
investment under the terms of this Act if made | ||||||
20 | by the savings bank.
| ||||||
21 | (11) Any provision of this Act or any other law, except | ||||||
22 | for paragraph
(18) of Section
6003, to the contrary
| ||||||
23 | notwithstanding, but subject to the Financial Institutions | ||||||
24 | Insurance Sales
Law and subject to the Commissioner's | ||||||
25 | regulations, any
savings bank may make any loan or | ||||||
26 | investment or engage in any
activity that it could make or |
| |||||||
| |||||||
1 | engage in if it were organized
under State law as a savings | ||||||
2 | and loan association or under federal law as a
federal | ||||||
3 | savings and loan association or federal savings bank.
| ||||||
4 | (12) A savings bank may issue letters of credit or | ||||||
5 | other
similar arrangements only as provided for by | ||||||
6 | regulation of the
Commissioner with regard to aggregate | ||||||
7 | amounts permitted, take out
commitments for stand-by | ||||||
8 | letters of credit, underlying
documentation and | ||||||
9 | underwriting, legal limitations on loans of the
savings | ||||||
10 | bank, control and subsidiary records, and other procedures
| ||||||
11 | deemed necessary by the Commissioner.
| ||||||
12 | (13) For the purpose of automobile financing, subject | ||||||
13 | to the
regulation of the Commissioner.
| ||||||
14 | (14) For the purpose of financing primary, secondary,
| ||||||
15 | undergraduate, or postgraduate education.
| ||||||
16 | (15) Through revolving lines of credit on the security | ||||||
17 | of a
first or junior lien on the borrower's personal | ||||||
18 | residence, based
primarily on the borrower's equity, the | ||||||
19 | proceeds of which may be
used for any purpose; those loans | ||||||
20 | being commonly referred to as home
equity loans.
| ||||||
21 | (16) As secured or unsecured credit to cover the | ||||||
22 | payment of checks,
drafts, or other funds transfer orders | ||||||
23 | in excess of the available balance
of an account on which | ||||||
24 | they are drawn, subject to the regulations of the
| ||||||
25 | Commissioner.
| ||||||
26 | (b) For purposes of this Section, "real estate" includes a |
| |||||||
| |||||||
1 | manufactured home as defined in paragraph (53) of Section 9-102 | ||||||
2 | of the Uniform Commercial Code that is real property as defined | ||||||
3 | in Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
4 | Homes Act. | ||||||
5 | (Source: P.A. 90-301, eff. 8-1-97; 91-97, eff. 7-9-99.)
| ||||||
6 | (205 ILCS 205/6008) (from Ch. 17, par. 7306-8)
| ||||||
7 | Sec. 6008. Purchase of real estate at forced sale. A | ||||||
8 | savings bank may
purchase at any sheriff's or other judicial | ||||||
9 | sale, either public or private,
any real estate upon which the | ||||||
10 | savings bank has any mortgage, lien or other
encumbrance, or in | ||||||
11 | which the savings bank has any other interest. The
savings bank | ||||||
12 | thereafter may repair, insure, improve, sell, convey, lease,
| ||||||
13 | preserve, mortgage, exchange, or otherwise dispose of real | ||||||
14 | estate so
acquired in the best interests of the savings bank. | ||||||
15 | For purposes of this Section, "real estate" includes a | ||||||
16 | manufactured home as defined in paragraph (53) of Section 9-102 | ||||||
17 | of the Uniform Commercial Code that is real property as defined | ||||||
18 | in Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
19 | Homes Act.
| ||||||
20 | (Source: P.A. 86-1213.)
| ||||||
21 | Section 85. The Illinois Credit Union Act is amended by | ||||||
22 | changing Sections 46 and 46.1 as follows: | ||||||
23 | (205 ILCS 305/46) (from Ch. 17, par. 4447)
|
| |||||||
| |||||||
1 | Sec. 46. Loans and interest rate.
| ||||||
2 | (1) A credit union may make loans
to its members for such | ||||||
3 | purpose and upon such security and terms, including
rates of | ||||||
4 | interest, as the Credit Committee, credit manager, or loan | ||||||
5 | officer
approves.
Notwithstanding the provisions of any other | ||||||
6 | law in connection with extensions
of credit, a credit union may | ||||||
7 | elect to
contract for and receive interest and fees and other | ||||||
8 | charges for extensions of
credit subject only to the provisions | ||||||
9 | of this Act and rules promulgated under
this Act, except that | ||||||
10 | extensions of credit secured by residential real estate
shall | ||||||
11 | be subject to the laws applicable thereto.
The rates of | ||||||
12 | interest to be charged on loans to members shall be
set by the | ||||||
13 | Board of Directors of each individual credit union in | ||||||
14 | accordance with Section 30 of this Act and such
rates may be | ||||||
15 | less than, but may not exceed, the maximum rate set forth in
| ||||||
16 | this Section. A borrower may repay his loan prior to maturity, | ||||||
17 | in whole or
in part, without penalty. The credit contract may | ||||||
18 | provide for the payment
by the member and receipt by the credit | ||||||
19 | union of all costs and
disbursements, including reasonable | ||||||
20 | attorney's fees and collection agency
charges, incurred by the | ||||||
21 | credit union to collect or enforce the debt in the
event of a | ||||||
22 | delinquency by the member, or in the event of a breach of any
| ||||||
23 | obligation of the member under the credit contract. A | ||||||
24 | contingency or
hourly arrangement established under an | ||||||
25 | agreement entered into by a credit
union with an attorney or | ||||||
26 | collection agency to collect a loan of a member
in default |
| |||||||
| |||||||
1 | shall be presumed prima facie reasonable.
| ||||||
2 | (2) Credit unions may make loans based upon the security of | ||||||
3 | any
interest or equity in real estate, subject to rules and | ||||||
4 | regulations
promulgated by the Director. In any contract or | ||||||
5 | loan which
is secured by a mortgage, deed of
trust, or | ||||||
6 | conveyance in the nature of a mortgage, on residential real
| ||||||
7 | estate, the interest which is computed, calculated, charged, or | ||||||
8 | collected
pursuant to such contract or loan, or pursuant to any | ||||||
9 | regulation or rule
promulgated pursuant to this Act, may not be | ||||||
10 | computed, calculated, charged
or collected for any period of | ||||||
11 | time occurring after the date on which the
total indebtedness, | ||||||
12 | with the exception of late payment penalties, is paid
in full.
| ||||||
13 | For purposes of this subsection (2) of this Section 46, a | ||||||
14 | prepayment
shall mean the payment of the total indebtedness, | ||||||
15 | with the exception of
late payment penalties if incurred or | ||||||
16 | charged, on any date before the date
specified in the contract | ||||||
17 | or loan agreement on which the total indebtedness
shall be paid | ||||||
18 | in full, or before the date on which all payments, if timely
| ||||||
19 | made, shall have been made. In the event of a prepayment of the
| ||||||
20 | indebtedness which is made on a date
after the date on which | ||||||
21 | interest on the indebtedness was last computed,
calculated, | ||||||
22 | charged, or collected but before the next date on which | ||||||
23 | interest
on the indebtedness was to be calculated, computed, | ||||||
24 | charged, or collected,
the lender may calculate, charge and | ||||||
25 | collect interest on the indebtedness
for the period which | ||||||
26 | elapsed between the date on which the prepayment is
made and |
| |||||||
| |||||||
1 | the date on which interest on the indebtedness was last | ||||||
2 | computed,
calculated, charged or collected at a rate equal to | ||||||
3 | 1/360 of the annual
rate for each day which so elapsed, which | ||||||
4 | rate shall be applied to the
indebtedness outstanding as of the | ||||||
5 | date of prepayment. The lender shall
refund to the borrower any | ||||||
6 | interest charged or collected which exceeds that
which the | ||||||
7 | lender may charge or collect pursuant to the preceding | ||||||
8 | sentence.
The provisions of this amendatory Act of 1985 shall | ||||||
9 | apply only to contracts
or loans entered into on or after the | ||||||
10 | effective date of this amendatory
Act.
| ||||||
11 | (3) Notwithstanding any other provision of this Act, a | ||||||
12 | credit union
authorized under this Act to make loans secured by | ||||||
13 | an interest or equity in
real estate may engage in making | ||||||
14 | "reverse mortgage" loans to persons for
the purpose of making | ||||||
15 | home improvements or repairs, paying insurance
premiums or | ||||||
16 | paying real estate taxes on the homestead properties
of such | ||||||
17 | persons. If made, such loans shall be made on such terms and
| ||||||
18 | conditions as the credit union shall determine and as shall be | ||||||
19 | consistent
with the provisions of this Section and such rules | ||||||
20 | and regulations as the
Director shall promulgate hereunder. For | ||||||
21 | purposes of this Section, a
"reverse mortgage" loan shall be a | ||||||
22 | loan extended on the basis of existing
equity in homestead | ||||||
23 | property and secured by a mortgage on such property.
Such loans | ||||||
24 | shall be repaid upon the sale of the property or upon the death
| ||||||
25 | of the owner or, if the property is in joint tenancy, upon the | ||||||
26 | death of the
last surviving joint tenant who had such an |
| |||||||
| |||||||
1 | interest in the property at the
time the loan was initiated, | ||||||
2 | provided, however, that the credit union and
its member may by | ||||||
3 | mutual agreement, establish other repayment terms. A
credit | ||||||
4 | union, in making a "reverse mortgage" loan, may add deferred
| ||||||
5 | interest to principal or otherwise provide for the charging of | ||||||
6 | interest or
premiums on such deferred interest. "Homestead" | ||||||
7 | property, for purposes of
this Section, means the domicile and | ||||||
8 | contiguous real estate owned and
occupied by the mortgagor. The | ||||||
9 | Director shall promulgate rules and
regulations under this | ||||||
10 | Section; provided that such rules and regulations
need not be | ||||||
11 | promulgated jointly with any other administrative agency of | ||||||
12 | this State.
| ||||||
13 | (4) Notwithstanding any other provisions of this Act, a | ||||||
14 | credit union
authorized under this Act to make loans secured by | ||||||
15 | an interest or equity
in real property may engage in making | ||||||
16 | revolving credit loans secured by
mortgages or deeds of trust | ||||||
17 | on such real property or by security
assignments of beneficial | ||||||
18 | interests in land trusts.
| ||||||
19 | For purposes of this Section, "revolving credit" has the | ||||||
20 | meaning defined
in Section 4.1 of the Interest Act.
| ||||||
21 | Any mortgage or deed of trust given to secure a revolving | ||||||
22 | credit loan may,
and when so expressed therein shall, secure | ||||||
23 | not only the existing indebtedness
but also such future | ||||||
24 | advances, whether such advances are obligatory or to
be made at | ||||||
25 | the option of the lender, or otherwise, as are made within | ||||||
26 | twenty
years from the date thereof, to the same extent as if |
| |||||||
| |||||||
1 | such future advances
were made on the date of the execution of | ||||||
2 | such mortgage or deed of trust,
although there may be no | ||||||
3 | advance made at the time of execution of such mortgage
or other | ||||||
4 | instrument, and although there may be no indebtedness | ||||||
5 | outstanding
at the time any advance is made. The lien of such | ||||||
6 | mortgage or deed of trust,
as to third persons
without actual | ||||||
7 | notice thereof, shall be valid as to all such indebtedness
and | ||||||
8 | future advances form the time said mortgage or deed of trust is | ||||||
9 | filed
for record in the office of the Recorder of Deeds or the | ||||||
10 | Registrar of Titles
of the county where the real property | ||||||
11 | described therein is located. The
total amount of indebtedness | ||||||
12 | that may be so secured may increase or decrease
from time to | ||||||
13 | time, but the total unpaid balance so secured at any one time
| ||||||
14 | shall not exceed a maximum principal amount which must be | ||||||
15 | specified in such
mortgage or deed of trust, plus interest | ||||||
16 | thereon, and any disbursements
made for the payment of taxes, | ||||||
17 | special assessments, or insurance on said
real property, with | ||||||
18 | interest on such disbursements.
| ||||||
19 | Any such mortgage or deed of trust shall be valid and have | ||||||
20 | priority over
all subsequent liens and encumbrances, including | ||||||
21 | statutory liens, except
taxes and assessments levied on said | ||||||
22 | real property.
| ||||||
23 | (4.1) For purposes of this Section, "real estate" and "real | ||||||
24 | property" include a manufactured home as defined in paragraph | ||||||
25 | (53) of Section 9-102 of the Uniform Commercial Code that is | ||||||
26 | real property as defined in Section 40 of the Conveyance and |
| |||||||
| |||||||
1 | Encumbrance of Manufactured Homes Act. | ||||||
2 | (5) Compliance with federal or Illinois preemptive laws or | ||||||
3 | regulations
governing loans made by a credit union chartered | ||||||
4 | under this Act shall
constitute compliance with this Act.
| ||||||
5 | (Source: P.A. 95-98, eff. 8-13-07.)
| ||||||
6 | (205 ILCS 305/46.1) (from Ch. 17, par. 4447.1)
| ||||||
7 | Sec. 46.1. Non-recourse reverse mortgage loans. Any credit | ||||||
8 | union
authorized under this Act to make loans secured by an | ||||||
9 | interest or equity in
real estate may make non-recourse reverse | ||||||
10 | mortgage loans as provided in
Section 6.1 of the Illinois | ||||||
11 | Banking Act.
| ||||||
12 | For purposes of this Section, "real estate" includes a | ||||||
13 | manufactured home as defined in paragraph (53) of Section 9-102 | ||||||
14 | of the Uniform Commercial Code that is real property as defined | ||||||
15 | in Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
16 | Homes Act. | ||||||
17 | (Source: P.A. 87-488.)
| ||||||
18 | Section 90. The Residential Mortgage License Act of 1987 is | ||||||
19 | amended by changing Section 1-4 as follows:
| ||||||
20 | (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
| ||||||
21 | Sec. 1-4. Definitions.
| ||||||
22 | (a) "Residential real property" or "residential real | ||||||
23 | estate" shall mean
real property located in this State improved |
| |||||||
| |||||||
1 | by a one-to-four family
dwelling used or occupied, wholly or | ||||||
2 | partly, as the home or residence of
one or more persons and may | ||||||
3 | refer, subject to regulations of the
Commissioner, to | ||||||
4 | unimproved real property upon which those kinds of dwellings
| ||||||
5 | are to be constructed. The term includes a manufactured home as | ||||||
6 | defined in paragraph (53) of Section 9-102 of the Uniform | ||||||
7 | Commercial Code that is real property as defined in Section 40 | ||||||
8 | of the Conveyance and Encumbrance of Manufactured Homes Act.
| ||||||
9 | (b) "Making a residential mortgage loan" or "funding a | ||||||
10 | residential mortgage
loan" shall mean for compensation or gain, | ||||||
11 | either directly or indirectly,
advancing funds or making a | ||||||
12 | commitment to advance funds to a loan applicant
for a | ||||||
13 | residential mortgage loan.
| ||||||
14 | (c) "Soliciting, processing, placing, or negotiating a | ||||||
15 | residential
mortgage loan" shall mean for compensation or gain, | ||||||
16 | either directly or
indirectly, accepting or offering to accept | ||||||
17 | an application for a
residential mortgage loan, assisting or | ||||||
18 | offering to assist in the
processing of an application for a | ||||||
19 | residential mortgage loan on behalf of a
borrower, or | ||||||
20 | negotiating or offering to negotiate the terms or conditions
of | ||||||
21 | a residential mortgage loan with a lender on behalf of a | ||||||
22 | borrower
including, but not limited to, the submission of | ||||||
23 | credit packages for the
approval of lenders, the preparation of | ||||||
24 | residential mortgage loan closing
documents, including a | ||||||
25 | closing in the name of a broker.
| ||||||
26 | (d) "Exempt person or entity" shall mean the following:
|
| |||||||
| |||||||
1 | (1) (i) Any banking organization or foreign banking | ||||||
2 | corporation
licensed by the Illinois Commissioner of Banks | ||||||
3 | and Real Estate or the
United States Comptroller of the | ||||||
4 | Currency to transact business in this
State; (ii) any | ||||||
5 | national bank, federally chartered savings and loan
| ||||||
6 | association, federal savings bank, federal credit union; | ||||||
7 | (iii) any pension
trust, bank trust, or bank trust company; | ||||||
8 | (iv) any bank, savings and loan
association, savings bank, | ||||||
9 | or credit union organized under the laws of this
or any | ||||||
10 | other state; (v) any Illinois Consumer Installment Loan Act | ||||||
11 | licensee;
(vi) any insurance company authorized to | ||||||
12 | transact business in this State;
(vii) any entity engaged | ||||||
13 | solely in commercial mortgage lending; (viii) any
service | ||||||
14 | corporation of a savings and loan association or savings | ||||||
15 | bank organized
under the laws of this State or the service | ||||||
16 | corporation of a federally
chartered savings and loan | ||||||
17 | association or savings bank having
its principal place of | ||||||
18 | business in this State, other than a service
corporation | ||||||
19 | licensed or entitled to reciprocity under the Real Estate
| ||||||
20 | License Act of 2000; or (ix) any first tier subsidiary of a
| ||||||
21 | bank, the charter of which is issued under the Illinois | ||||||
22 | Banking Act
by the Illinois Commissioner of Banks and Real | ||||||
23 | Estate,
or the first tier subsidiary of a bank chartered by | ||||||
24 | the United States
Comptroller of the Currency and that has | ||||||
25 | its principal place of business
in this State, provided | ||||||
26 | that the first tier subsidiary is regularly
examined by the |
| |||||||
| |||||||
1 | Illinois Commissioner of Banks and Real Estate
or the | ||||||
2 | Comptroller of the Currency, or a consumer compliance | ||||||
3 | examination is
regularly conducted by the Federal Reserve | ||||||
4 | Board.
| ||||||
5 | (1.5) Any employee of a person or entity mentioned in
| ||||||
6 | item (1) of this subsection.
| ||||||
7 | (2) Any person or entity that does not originate
| ||||||
8 | mortgage loans in the ordinary course of
business making or | ||||||
9 | acquiring residential mortgage loans
with his or her or its | ||||||
10 | own funds for his or her or its own investment
without | ||||||
11 | intent to
make, acquire, or resell more than 10 residential | ||||||
12 | mortgage loans in
any one calendar year.
| ||||||
13 | (3) Any person employed by a licensee to assist in the | ||||||
14 | performance of
the activities regulated by this Act who is | ||||||
15 | compensated in any manner by
only one licensee.
| ||||||
16 | (4) Any person licensed pursuant to the Real Estate
| ||||||
17 | License Act of
2000, who engages only in the taking of | ||||||
18 | applications and credit
and
appraisal information to | ||||||
19 | forward to a licensee or an exempt entity under this
Act | ||||||
20 | and who is compensated by either a licensee or an exempt | ||||||
21 | entity under this
Act, but is not compensated by either the | ||||||
22 | buyer (applicant) or the seller.
| ||||||
23 | (5) Any individual, corporation, partnership, or other | ||||||
24 | entity that
originates, services, or brokers residential | ||||||
25 | mortgage loans, as these
activities are defined in this | ||||||
26 | Act, and who or which receives no
compensation for those |
| |||||||
| |||||||
1 | activities, subject to the Commissioner's
regulations with | ||||||
2 | regard to the nature and amount of compensation.
| ||||||
3 | (6) A person who prepares supporting documentation for | ||||||
4 | a residential
mortgage loan application taken by a licensee | ||||||
5 | and performs ministerial
functions pursuant to specific | ||||||
6 | instructions of the licensee who neither
requires nor | ||||||
7 | permits the preparer to exercise his or her discretion or
| ||||||
8 | judgment; provided that this activity is engaged in | ||||||
9 | pursuant to a binding,
written agreement between the | ||||||
10 | licensee and the preparer that:
| ||||||
11 | (A) holds the licensee fully accountable for the | ||||||
12 | preparer's action; and
| ||||||
13 | (B) otherwise meets the requirements of this | ||||||
14 | Section and this Act, does
not undermine the purposes | ||||||
15 | of this Act, and is approved by the
Commissioner.
| ||||||
16 | (e) "Licensee" or "residential mortgage licensee" shall | ||||||
17 | mean a person,
partnership, association, corporation, or any | ||||||
18 | other entity who or which is
licensed pursuant to this Act to | ||||||
19 | engage in the activities regulated by
this Act.
| ||||||
20 | (f) "Mortgage loan" "residential mortgage loan" or "home
| ||||||
21 | mortgage loan" shall mean a loan to or for the benefit of any
| ||||||
22 | natural person made primarily for personal, family, or | ||||||
23 | household use,
primarily secured by either a mortgage on | ||||||
24 | residential real property or
certificates of stock or other | ||||||
25 | evidence of ownership interests in and
proprietary leases from, | ||||||
26 | corporations, partnerships, or limited
liability companies |
| |||||||
| |||||||
1 | formed for the purpose
of cooperative ownership of residential | ||||||
2 | real property, all located in Illinois.
| ||||||
3 | (g) "Lender" shall mean any person, partnership, | ||||||
4 | association,
corporation, or any other entity who either lends | ||||||
5 | or invests money in
residential mortgage loans.
| ||||||
6 | (h) "Ultimate equitable owner" shall mean a person who, | ||||||
7 | directly
or indirectly, owns or controls an ownership interest | ||||||
8 | in a corporation,
foreign corporation, alien business | ||||||
9 | organization, trust, or any other form
of business organization | ||||||
10 | regardless of whether the person owns or controls
the ownership | ||||||
11 | interest through one or more persons or one or more proxies,
| ||||||
12 | powers of attorney, nominees, corporations, associations, | ||||||
13 | partnerships,
trusts, joint stock companies, or other entities | ||||||
14 | or devices, or any
combination thereof.
| ||||||
15 | (i) "Residential mortgage financing transaction" shall | ||||||
16 | mean the negotiation,
acquisition, sale, or arrangement for or | ||||||
17 | the offer to negotiate, acquire,
sell, or arrange for, a | ||||||
18 | residential mortgage loan or residential mortgage
loan | ||||||
19 | commitment.
| ||||||
20 | (j) "Personal residence address" shall mean a street | ||||||
21 | address and shall
not include a post office box number.
| ||||||
22 | (k) "Residential mortgage loan commitment" shall mean a | ||||||
23 | contract for
residential mortgage loan financing.
| ||||||
24 | (l) "Party to a residential mortgage financing | ||||||
25 | transaction" shall mean a
borrower, lender, or loan broker in a | ||||||
26 | residential mortgage financing
transaction.
|
| |||||||
| |||||||
1 | (m) "Payments" shall mean payment of all or any of the | ||||||
2 | following:
principal, interest and escrow reserves for taxes, | ||||||
3 | insurance and other related
reserves, and reimbursement for | ||||||
4 | lender advances.
| ||||||
5 | (n) "Commissioner" shall mean the Commissioner of Banks and | ||||||
6 | Real Estate
or a person authorized by the Commissioner, the | ||||||
7 | Office of Banks and Real Estate
Act, or this Act to act in the | ||||||
8 | Commissioner's stead.
| ||||||
9 | (o) "Loan brokering", "brokering", or "brokerage service" | ||||||
10 | shall mean the act
of helping to obtain from another entity, | ||||||
11 | for a borrower, a loan secured by
residential real estate | ||||||
12 | situated in Illinois or assisting a borrower in
obtaining a | ||||||
13 | loan secured by residential real estate situated in Illinois in
| ||||||
14 | return for consideration to be paid by either the borrower or | ||||||
15 | the lender
including, but not limited to, contracting for the | ||||||
16 | delivery of residential
mortgage loans to a third party lender | ||||||
17 | and soliciting, processing, placing,
or negotiating | ||||||
18 | residential mortgage loans.
| ||||||
19 | (p) "Loan broker" or "broker" shall mean a person, | ||||||
20 | partnership,
association, corporation, or limited liability | ||||||
21 | company, other than
those persons, partnerships,
associations, | ||||||
22 | corporations, or limited liability companies exempted
from | ||||||
23 | licensing pursuant to Section
1-4, subsection (d), of this Act, | ||||||
24 | who performs the activities described
in subsections (c) and | ||||||
25 | (o) of this Section.
| ||||||
26 | (q) "Servicing" shall mean the collection or remittance for |
| |||||||
| |||||||
1 | or the
right or obligation to collect or remit for any lender, | ||||||
2 | noteowner,
noteholder, or for a licensee's own account, of | ||||||
3 | payments, interests,
principal, and trust items such as hazard | ||||||
4 | insurance and taxes on a
residential mortgage loan in | ||||||
5 | accordance with the terms of the residential
mortgage loan; and | ||||||
6 | includes loan payment follow-up, delinquency loan
follow-up, | ||||||
7 | loan analysis and any notifications to the borrower that are
| ||||||
8 | necessary to enable the borrower to keep the loan current and | ||||||
9 | in good standing.
| ||||||
10 | (r) "Full service office" shall mean office and staff in | ||||||
11 | Illinois
reasonably adequate to handle efficiently | ||||||
12 | communications, questions, and
other matters relating to any | ||||||
13 | application for, or an existing home mortgage
secured by | ||||||
14 | residential real estate situated in Illinois
with respect to | ||||||
15 | which the licensee is brokering, funding originating,
| ||||||
16 | purchasing, or servicing. The management and operation of each | ||||||
17 | full service
office must include observance of good business | ||||||
18 | practices such as adequate,
organized, and accurate books and | ||||||
19 | records; ample phone lines, hours of
business, staff training | ||||||
20 | and supervision, and provision for a mechanism to
resolve | ||||||
21 | consumer inquiries, complaints, and problems. The Commissioner
| ||||||
22 | shall issue regulations with regard to these requirements and | ||||||
23 | shall include
an evaluation of compliance with this Section in | ||||||
24 | his or her periodic
examination of each licensee.
| ||||||
25 | (s) "Purchasing" shall mean the purchase of conventional or
| ||||||
26 | government-insured mortgage loans secured by residential real |
| |||||||
| |||||||
1 | estate
situated in Illinois from either the lender or from the | ||||||
2 | secondary market.
| ||||||
3 | (t) "Borrower" shall mean the person or persons who seek | ||||||
4 | the services of
a loan broker, originator, or lender.
| ||||||
5 | (u) "Originating" shall mean the issuing of commitments for | ||||||
6 | and funding of
residential mortgage loans.
| ||||||
7 | (v) "Loan brokerage agreement" shall mean a written | ||||||
8 | agreement in which a
broker or loan broker agrees to do either | ||||||
9 | of the following:
| ||||||
10 | (1) obtain a residential mortgage loan for the borrower | ||||||
11 | or assist the
borrower in obtaining a residential mortgage | ||||||
12 | loan; or
| ||||||
13 | (2) consider making a residential mortgage loan to the | ||||||
14 | borrower.
| ||||||
15 | (w) "Advertisement" shall mean the attempt by publication,
| ||||||
16 | dissemination, or circulation to induce, directly or | ||||||
17 | indirectly,
any person to enter into a residential mortgage | ||||||
18 | loan agreement or
residential mortgage loan brokerage | ||||||
19 | agreement relative to a
mortgage secured by residential real | ||||||
20 | estate situated in Illinois.
| ||||||
21 | (x) "Residential Mortgage Board" shall mean the | ||||||
22 | Residential Mortgage
Board created in Section 1-5 of this Act.
| ||||||
23 | (y) "Government-insured mortgage loan" shall mean any | ||||||
24 | mortgage loan made
on the security of residential real estate | ||||||
25 | insured by the Department of
Housing and Urban Development or | ||||||
26 | Farmers Home Loan Administration, or
guaranteed by the Veterans |
| |||||||
| |||||||
1 | Administration.
| ||||||
2 | (z) "Annual audit" shall mean a certified audit of the | ||||||
3 | licensee's books and
records and systems of internal control | ||||||
4 | performed by a certified public
accountant in accordance with | ||||||
5 | generally accepted accounting principles
and generally | ||||||
6 | accepted auditing standards.
| ||||||
7 | (aa) "Financial institution" shall mean a savings and loan
| ||||||
8 | association, savings bank, credit union, or a bank organized | ||||||
9 | under the
laws of Illinois or a savings and loan association, | ||||||
10 | savings bank,
credit union or a bank organized under the laws | ||||||
11 | of the United States and
headquartered in Illinois.
| ||||||
12 | (bb) "Escrow agent" shall mean a third party, individual or | ||||||
13 | entity
charged with the fiduciary obligation for holding escrow | ||||||
14 | funds on a
residential mortgage loan pending final payout of | ||||||
15 | those funds
in accordance with the terms of the residential | ||||||
16 | mortgage loan.
| ||||||
17 | (cc) "Net worth" shall have the meaning ascribed thereto in | ||||||
18 | Section 3-5
of this Act.
| ||||||
19 | (dd) "Affiliate" shall mean:
| ||||||
20 | (1) any entity that directly controls or is controlled | ||||||
21 | by the licensee
and any other company that is directly | ||||||
22 | affecting activities regulated by
this Act that is | ||||||
23 | controlled by the company that controls the licensee;
| ||||||
24 | (2) any entity:
| ||||||
25 | (A) that is controlled, directly or indirectly, by | ||||||
26 | a trust or otherwise,
by or for the benefit of |
| |||||||
| |||||||
1 | shareholders who beneficially or otherwise
control, | ||||||
2 | directly or indirectly, by trust or otherwise, the | ||||||
3 | licensee or any
company that controls the licensee; or
| ||||||
4 | (B) a majority of the directors or trustees of | ||||||
5 | which constitute a
majority of the persons holding any | ||||||
6 | such office with the licensee or any
company that | ||||||
7 | controls the licensee;
| ||||||
8 | (3) any company, including a real estate investment | ||||||
9 | trust, that is
sponsored and advised on a contractual basis | ||||||
10 | by the licensee or any
subsidiary or affiliate of the | ||||||
11 | licensee.
| ||||||
12 | The Commissioner may define by rule and regulation any | ||||||
13 | terms used
in this Act for the efficient and clear | ||||||
14 | administration of this Act.
| ||||||
15 | (ee) "First tier subsidiary" shall be defined by regulation
| ||||||
16 | incorporating the comparable definitions used by the Office of | ||||||
17 | the
Comptroller of the Currency and the Illinois Commissioner | ||||||
18 | of Banks
and Real Estate.
| ||||||
19 | (ff) "Gross delinquency rate" means the quotient | ||||||
20 | determined by dividing
(1) the sum of (i) the number of | ||||||
21 | government-insured residential mortgage loans
funded or | ||||||
22 | purchased by a licensee in the preceding calendar year that are
| ||||||
23 | delinquent and (ii) the number of conventional residential | ||||||
24 | mortgage loans
funded or purchased by the licensee in the | ||||||
25 | preceding calendar year that are
delinquent by (2) the sum of | ||||||
26 | (i) the number of government-insured residential
mortgage |
| |||||||
| |||||||
1 | loans funded or purchased by the licensee in the preceding | ||||||
2 | calendar
year and (ii) the number of conventional residential | ||||||
3 | mortgage loans funded or
purchased by the licensee in the | ||||||
4 | preceding calendar year.
| ||||||
5 | (gg) "Delinquency rate factor" means the factor set by rule | ||||||
6 | of the
Commissioner that is multiplied by the average gross | ||||||
7 | delinquency rate of
licensees, determined annually for the | ||||||
8 | immediately preceding calendar year, for
the purpose of | ||||||
9 | determining which licensees shall be examined by the
| ||||||
10 | Commissioner pursuant to subsection (b) of Section 4-8 of this | ||||||
11 | Act.
| ||||||
12 | (hh) "Loan originator" means any natural person who, for | ||||||
13 | compensation or in
the expectation of compensation, either | ||||||
14 | directly or indirectly makes, offers to
make, solicits, places, | ||||||
15 | or negotiates a residential mortgage loan.
| ||||||
16 | (ii) "Confidential supervisory information" means any | ||||||
17 | report of examination, visitation, or investigation prepared | ||||||
18 | by the Commissioner under this Act, any report of examination | ||||||
19 | visitation, or investigation prepared by the state regulatory | ||||||
20 | authority of another state that examines a licensee, any | ||||||
21 | document or record prepared or obtained in connection with or | ||||||
22 | relating to any examination, visitation, or investigation, and | ||||||
23 | any record prepared or obtained by the Commissioner to the | ||||||
24 | extent that the record summarizes or contains information | ||||||
25 | derived from any report, document, or record described in this | ||||||
26 | subsection. "Confidential supervisory information" does not |
| |||||||
| |||||||
1 | include any information or record routinely prepared by a | ||||||
2 | licensee and maintained in the ordinary course of business or | ||||||
3 | any information or record that is required to be made publicly | ||||||
4 | available pursuant to State or federal law or rule.
| ||||||
5 | (Source: P.A. 93-561, eff. 1-1-04; 93-1018, eff. 1-1-05.)
| ||||||
6 | Section 95. The Abandoned Mobile Home Act is amended by | ||||||
7 | changing Section 10 as follows:
| ||||||
8 | (210 ILCS 117/10)
| ||||||
9 | Sec. 10. Definitions.
| ||||||
10 | "Mobile home" means a structure designed for permanent | ||||||
11 | habitation and
constructed to permit its transport on wheels, | ||||||
12 | temporarily or
permanently attached to its frame, from its | ||||||
13 | place of construction to a
location where it is intended to be | ||||||
14 | a
permanent habitation and includes a manufactured home as | ||||||
15 | defined in paragraph (53) of Section 9-102 of the Uniform | ||||||
16 | Commercial Code .
"Mobile home" does not include a structure | ||||||
17 | that is
served by individual utilities and that rests on a | ||||||
18 | permanent foundation
with its wheels, tongue, and hitch | ||||||
19 | permanently removed , nor a manufactured home as defined in | ||||||
20 | paragraph (53) of Section 9-102 of the Uniform Commercial Code | ||||||
21 | that is real property as defined in Section 40 of the | ||||||
22 | Conveyance and Encumbrance of Manufactured Homes Act .
| ||||||
23 | "Abandoned mobile home" means a mobile home that has no | ||||||
24 | owner currently
residing in the mobile home or authorized |
| |||||||
| |||||||
1 | tenant of the owner currently
residing in the mobile home to | ||||||
2 | the best knowledge of the municipality;
has had its | ||||||
3 | electricity,
natural gas, sewer, and water payments declared | ||||||
4 | delinquent
by the utility companies that are providing such | ||||||
5 | services; and for which
the Mobile Home Privilege Tax, imposed | ||||||
6 | under the Mobile Home Local
Services Tax Act, is delinquent for | ||||||
7 | at least 3 months.
| ||||||
8 | "Municipality" means any city, village, incorporated town, | ||||||
9 | or its duly
authorized agent. If an abandoned mobile home is | ||||||
10 | located in an
unincorporated area, the county where the mobile | ||||||
11 | home is located shall have
all powers granted to a
municipality | ||||||
12 | under this Act.
| ||||||
13 | (Source: P.A. 88-516.)
| ||||||
14 | Section 100. The Illinois Vehicle Code is amended by | ||||||
15 | changing Sections 3-100, 3-102, 3-103, 3-104, 3-106, 3-107, | ||||||
16 | 3-110, 3-116, 3-202, 3-205, 3-207, and 3-208 and by adding | ||||||
17 | Sections 1-145.002, 3-116.1, 3-116.2, 3-116.3, and 3-116.4 as | ||||||
18 | follows: | ||||||
19 | (625 ILCS 5/1-145.002 new) | ||||||
20 | Sec. 1-145.002. Mobile home or manufactured home. | ||||||
21 | A "mobile home" or "manufactured home" means a manufactured | ||||||
22 | home as defined in paragraph (53) of Section 9-102 of the | ||||||
23 | Uniform Commercial Code.
|
| |||||||
| |||||||
1 | (625 ILCS 5/3-100) (from Ch. 95 1/2, par. 3-100)
| ||||||
2 | Sec. 3-100. Definitions. For the purposes of this Chapter, | ||||||
3 | the following words shall
have the meanings ascribed to them:
| ||||||
4 | "Electronic" includes electrical, digital, magnetic, | ||||||
5 | optical,
electromagnetic, or any other form of technology that | ||||||
6 | entails capabilities
similar to these technologies.
| ||||||
7 | "Electronic record" means a record generated, | ||||||
8 | communicated, received, or
stored by electronic means for use | ||||||
9 | in an information system or for
transmission from one | ||||||
10 | information system to another.
| ||||||
11 | "Electronic signature" means a signature in electronic | ||||||
12 | form attached to or
logically associated with an electronic | ||||||
13 | record.
| ||||||
14 | "Vehicle" means a vehicle as defined in the Illinois | ||||||
15 | Vehicle Code. Unless otherwise specified, "vehicle" also means | ||||||
16 | a manufactured home as defined in Section 1-145.002 of the | ||||||
17 | Illinois Vehicle Code. | ||||||
18 | "Owner" means a person who holds legal document of | ||||||
19 | ownership of a vehicle,
limited to a certificate of origin, | ||||||
20 | certificate of title, salvage certificate,
or junking | ||||||
21 | certificate. However, in the event a vehicle is the subject of | ||||||
22 | an
agreement for the conditional sale or lease thereof with the
| ||||||
23 | right of purchase upon performance of the conditions stated in | ||||||
24 | the
agreement and with an immediate right of possession vested | ||||||
25 | in the
conditional vendee or lessee, or in the event a | ||||||
26 | mortgagor of such vehicle
is entitled to possession, then such |
| |||||||
| |||||||
1 | conditional vendee or lessee or
mortgagor shall be deemed the | ||||||
2 | owner for the purpose of this Chapter,
except as provided under | ||||||
3 | paragraph (c) of Section 3-118.
| ||||||
4 | "Record" means information that is inscribed, stored, or | ||||||
5 | otherwise fixed
on a tangible medium or that is stored in an | ||||||
6 | electronic or other medium
and is retrievable in perceivable | ||||||
7 | form.
| ||||||
8 | "Signature" or "signed" includes any symbol executed or | ||||||
9 | adopted, or any
security procedure employed or adopted, using | ||||||
10 | electronic means or
otherwise, by or on behalf of a person with | ||||||
11 | intent to authenticate a
record.
| ||||||
12 | (Source: P.A. 91-79, eff. 1-1-00; 91-357, eff. 7-29-99; 91-772, | ||||||
13 | eff.
1-1-01.)
| ||||||
14 | (625 ILCS 5/3-102) (from Ch. 95 1/2, par. 3-102)
| ||||||
15 | Sec. 3-102. Exclusions.
| ||||||
16 | No certificate of title need be obtained for:
| ||||||
17 | 1. A vehicle owned by the State of Illinois; or a vehicle | ||||||
18 | owned by the
United States unless it is registered in this | ||||||
19 | State;
| ||||||
20 | 2. A vehicle owned by a manufacturer or dealer and held for | ||||||
21 | sale, even
though incidentally moved on the highway or used for | ||||||
22 | purposes of testing or
demonstration, provided a dealer | ||||||
23 | reassignment area is still available on the
manufacturer's | ||||||
24 | certificate of origin or the Illinois title; or a vehicle used
| ||||||
25 | by a manufacturer solely for testing;
|
| |||||||
| |||||||
1 | 3. A vehicle owned by a non-resident of this State and not | ||||||
2 | required by
law to be registered in this State;
| ||||||
3 | 4. A motor vehicle regularly engaged in the interstate | ||||||
4 | transportation of
persons or property for which a currently | ||||||
5 | effective certificate of title
has been issued in another | ||||||
6 | State;
| ||||||
7 | 5. A vehicle moved solely by animal power;
| ||||||
8 | 6. An implement of husbandry;
| ||||||
9 | 7. Special mobile equipment;
| ||||||
10 | 8. An apportionable trailer or an apportionable | ||||||
11 | semitrailer registered in
the State prior to April 1, 1998 ; .
| ||||||
12 | 9. A manufactured home for which an affidavit of affixation | ||||||
13 | has been recorded pursuant to Section 15 of the Conveyance and | ||||||
14 | Encumbrance of Manufactured Homes Act, unless an affidavit of | ||||||
15 | severance has been recorded for the same manufactured home | ||||||
16 | pursuant to Section 55 of the Conveyance and Encumbrance of | ||||||
17 | Manufactured Homes Act. | ||||||
18 | (Source: P.A. 91-441, eff. 1-1-00.)
| ||||||
19 | (625 ILCS 5/3-103) (from Ch. 95 1/2, par. 3-103)
| ||||||
20 | Sec. 3-103. Optional certificate of title.
| ||||||
21 | (a) The owner of an implement of husbandry or special | ||||||
22 | mobile equipment may
apply for and obtain a certificate of | ||||||
23 | title on it. All of the provisions of
this chapter, except part | ||||||
24 | (e) of Section 3-104, are applicable to a
certificate of title | ||||||
25 | so issued, except that a person who receives a
transfer of an |
| |||||||
| |||||||
1 | interest in the vehicle without knowledge of the certificate
of | ||||||
2 | title is not prejudiced by reason of the existence of the | ||||||
3 | certificate,
and the perfection of a security interest under | ||||||
4 | this act is not effective
until the lienholder has complied | ||||||
5 | with the provisions of applicable law
which otherwise relate to | ||||||
6 | the perfection of security interests in personal
property.
| ||||||
7 | An application for an optional certificate of title must be | ||||||
8 | accompanied
by either an exemption determination from the | ||||||
9 | Department of Revenue showing
that no tax imposed under the | ||||||
10 | "Use Tax Act" or the "Retailers' Occupation
Tax Act" is owed by | ||||||
11 | anyone with respect to that vehicle or by a receipt
from the | ||||||
12 | Department of Revenue showing that any tax so imposed has been
| ||||||
13 | paid. No optional certificate of title shall be issued in the | ||||||
14 | absence of
such a receipt or exemption determination.
| ||||||
15 | If the proof of payment or of nonliability is, after the | ||||||
16 | issuance of the
optional certificate of title, found to be | ||||||
17 | invalid, the Secretary of State
shall revoke the optional | ||||||
18 | certificate of title and require that it be
returned to him.
| ||||||
19 | (b) The owner of a manufactured home that is permanently | ||||||
20 | affixed to real estate and for which a certificate of title has | ||||||
21 | not previously been issued and surrendered for cancellation, | ||||||
22 | may apply for a certificate of title which shall be issued for | ||||||
23 | the sole purpose of (i) surrendering such certificate of title | ||||||
24 | for cancellation in accordance with Section 3-116.2 of this | ||||||
25 | Code or (ii) satisfying the requirements of subsection (e)(4) | ||||||
26 | of Section 9-334 of the Uniform Commercial Code. The Secretary |
| |||||||
| |||||||
1 | of State shall issue a certificate of title, in accordance with | ||||||
2 | this Chapter, upon satisfaction of the application | ||||||
3 | requirements of this Code. | ||||||
4 | (Source: P.A. 78-1165.)
| ||||||
5 | (625 ILCS 5/3-104) (from Ch. 95 1/2, par. 3-104)
| ||||||
6 | Sec. 3-104. Application for certificate of title.
| ||||||
7 | (a) The application for a certificate of title for a | ||||||
8 | vehicle in this
State must be made by the owner to the | ||||||
9 | Secretary of State on the form
prescribed and must contain:
| ||||||
10 | 1. The name, Illinois residence and mail address of the | ||||||
11 | owner;
| ||||||
12 | 2. A description of the vehicle including, so far as | ||||||
13 | the following
data exists: Its make, year-model, | ||||||
14 | identifying number, type of body,
whether new or used, as | ||||||
15 | to house trailers as
defined in Section 1-128 of this Code, | ||||||
16 | and as to manufactured homes as defined in Section | ||||||
17 | 1-145.002 of this Code, the square footage of the house
| ||||||
18 | trailer based upon the outside dimensions of the house | ||||||
19 | trailer excluding
the length of the tongue and hitch, and, | ||||||
20 | as to vehicles of the
second division, whether for-hire, | ||||||
21 | not-for-hire, or both for-hire and
not-for-hire;
| ||||||
22 | 3. The date of purchase by applicant and, if | ||||||
23 | applicable, the name and
address of the person from whom | ||||||
24 | the vehicle was acquired and the names and
addresses of any | ||||||
25 | lienholders in the order of their priority and signatures |
| |||||||
| |||||||
1 | of
owners;
| ||||||
2 | 4. The current odometer reading at the time of transfer | ||||||
3 | and that the
stated odometer reading is one of the | ||||||
4 | following: actual mileage, not
the actual mileage or | ||||||
5 | mileage is in excess of its mechanical limits; and
| ||||||
6 | 5. Any further information the Secretary of State | ||||||
7 | reasonably
requires to identify the vehicle and to enable | ||||||
8 | him to determine whether
the owner is entitled to a | ||||||
9 | certificate of title and the existence or
nonexistence of | ||||||
10 | security interests in the vehicle. | ||||||
11 | (a-5) The Secretary of State shall designate on the | ||||||
12 | prescribed application form a space where the owner of a | ||||||
13 | vehicle may designate a beneficiary, to whom ownership of the | ||||||
14 | vehicle shall pass in the event of the owner's death.
| ||||||
15 | (b) If the application refers to a vehicle purchased from a | ||||||
16 | dealer,
it must also be signed by the dealer as well as the | ||||||
17 | owner, and the dealer must
promptly mail or deliver the | ||||||
18 | application and required documents to the
Secretary of State.
| ||||||
19 | (c) If the application refers to a vehicle last previously
| ||||||
20 | registered in another State or country, the application must | ||||||
21 | contain or
be accompanied by:
| ||||||
22 | 1. Any certified document of ownership so recognized | ||||||
23 | and issued by
the other State or country and acceptable to | ||||||
24 | the Secretary of State, and
| ||||||
25 | 2. Any other information and documents the Secretary of | ||||||
26 | State
reasonably requires to establish the ownership of the |
| |||||||
| |||||||
1 | vehicle and the
existence or nonexistence of security | ||||||
2 | interests in it.
| ||||||
3 | (d) If the application refers to a new vehicle it must be
| ||||||
4 | accompanied by the Manufacturer's Statement of Origin, or other | ||||||
5 | documents
as required and acceptable by the Secretary of State, | ||||||
6 | with such
assignments as may be necessary to show title in the | ||||||
7 | applicant.
| ||||||
8 | (e) If an application refers to a vehicle rebuilt from a | ||||||
9 | vehicle
previously salvaged, that application shall comply | ||||||
10 | with the provisions
set forth in Sections 3-302 through 3-304 | ||||||
11 | of this Code.
| ||||||
12 | (f) An application for a certificate of title for any | ||||||
13 | vehicle,
whether purchased in Illinois or outside Illinois, and | ||||||
14 | even if
previously registered in another State, must be | ||||||
15 | accompanied by either an
exemption determination from the | ||||||
16 | Department of Revenue showing that no
tax imposed pursuant to | ||||||
17 | the Use Tax Act or the vehicle use tax imposed by
Section | ||||||
18 | 3-1001 of the Illinois Vehicle Code is owed by anyone with | ||||||
19 | respect to
that vehicle, or a receipt from the Department of | ||||||
20 | Revenue showing that any tax
so imposed has been paid. An | ||||||
21 | application for a certificate of title for any
vehicle | ||||||
22 | purchased outside Illinois, even if previously registered in | ||||||
23 | another
state, must be accompanied by either an exemption | ||||||
24 | determination from the
Department of Revenue showing that no | ||||||
25 | tax imposed pursuant to the Municipal Use
Tax Act or the County | ||||||
26 | Use Tax Act is owed by anyone with respect to that
vehicle, or |
| |||||||
| |||||||
1 | a receipt from the Department of Revenue showing that any tax | ||||||
2 | so
imposed has been paid. In the absence of such a receipt for | ||||||
3 | payment or
determination of exemption from the Department, no | ||||||
4 | certificate of title shall
be issued to the applicant.
| ||||||
5 | If the proof of payment of the tax or of nonliability | ||||||
6 | therefor is,
after the issuance of the certificate of title and | ||||||
7 | display certificate
of title, found to be invalid, the | ||||||
8 | Secretary of State shall revoke the
certificate and require | ||||||
9 | that the certificate of title and, when
applicable, the display | ||||||
10 | certificate of title be returned to him.
| ||||||
11 | (g) If the application refers to a vehicle not manufactured | ||||||
12 | in
accordance with federal safety and emission standards, the | ||||||
13 | application must
be accompanied by all documents required by | ||||||
14 | federal governmental
agencies to meet their standards before a | ||||||
15 | vehicle is allowed to be issued
title and registration.
| ||||||
16 | (h) If the application refers to a vehicle sold at public | ||||||
17 | sale by a
sheriff, it must be accompanied by the required fee | ||||||
18 | and a bill of sale
issued and signed by a sheriff. The bill of | ||||||
19 | sale must identify the new
owner's name and address, the year | ||||||
20 | model, make and vehicle identification
number of the vehicle, | ||||||
21 | court order document number authorizing such sale,
if | ||||||
22 | applicable, and the name and address of any lienholders in | ||||||
23 | order of
priority, if applicable.
| ||||||
24 | (i) If the application refers to a vehicle for which a | ||||||
25 | court of law
determined the ownership, it must be accompanied | ||||||
26 | with a certified copy of
such court order and the required fee. |
| |||||||
| |||||||
1 | The court order must indicate the
new owner's name and address, | ||||||
2 | the complete description of the vehicle, if
known, the name and | ||||||
3 | address of the lienholder, if any, and must be signed
and dated | ||||||
4 | by the judge issuing such order.
| ||||||
5 | (j) If the application refers to a vehicle sold at public | ||||||
6 | auction pursuant
to the Labor and Storage Lien (Small Amount) | ||||||
7 | Act, it must be
accompanied by an affidavit or affirmation | ||||||
8 | furnished by the Secretary of
State along with the
documents | ||||||
9 | described in the affidavit or affirmation and the required fee.
| ||||||
10 | (k) The holder of a Manufacturer's Statement of Origin to a | ||||||
11 | manufactured home may deliver it to any person to facilitate | ||||||
12 | conveying or encumbering the manufactured home. Any person | ||||||
13 | receiving any such Manufacturer's Statement of Origin, so | ||||||
14 | delivered, holds it in trust for the person delivering it. | ||||||
15 | (Source: P.A. 95-784, eff. 1-1-09.)
| ||||||
16 | (625 ILCS 5/3-106) (from Ch. 95 1/2, par. 3-106)
| ||||||
17 | Sec. 3-106. Certificate of title - Issuance - Records. (a) | ||||||
18 | The Secretary of State shall file each application received | ||||||
19 | and,
when satisfied as to its genuineness and regularity, and | ||||||
20 | that no tax
imposed by the "Use Tax Act" or the vehicle use | ||||||
21 | tax, as imposed by Section
3-1001 of "The Illinois Vehicle | ||||||
22 | Code", or pursuant to the "Municipal Use
Tax Act" or pursuant | ||||||
23 | to the "County Use Tax Act" is owed as evidenced by
the receipt | ||||||
24 | for payment or determination of exemption from the Department
| ||||||
25 | of Revenue provided for in Section 3-104 of this Act, and that |
| |||||||
| |||||||
1 | the
applicant is entitled to the issuance of a certificate of | ||||||
2 | title, shall
issue a certificate of title of the vehicle.
| ||||||
3 | (b) The Secretary of State shall maintain a record of all
| ||||||
4 | certificates of title issued by him under a distinctive title | ||||||
5 | number
assigned to the vehicle; and, in the discretion of the | ||||||
6 | Secretary of
State, in any other method determined.
| ||||||
7 | (c) The Secretary of State shall not issue a certificate of | ||||||
8 | title to a manufactured home for which there has been recorded | ||||||
9 | an affidavit of affixation pursuant to Section 15 of the | ||||||
10 | Conveyance and Encumbrance of Manufactured Homes Act unless, | ||||||
11 | with respect to the same manufactured home, there has been | ||||||
12 | recorded an affidavit of severance pursuant to Section 55 the | ||||||
13 | Conveyance and Encumbrance of Manufactured Homes Act. | ||||||
14 | (d) When satisfied as to its genuineness and regularity, | ||||||
15 | the Secretary of State shall file, upon receipt, each affidavit | ||||||
16 | of affixation and affidavit of severance relating to a | ||||||
17 | manufactured home that is delivered in accordance with the | ||||||
18 | Conveyance and Encumbrance of Manufactured Homes Act. | ||||||
19 | (e) The Secretary of State shall maintain a record of each | ||||||
20 | affidavit of affixation and each affidavit of severance filed | ||||||
21 | in accordance with subsection (d) of this Section. The record | ||||||
22 | shall state the name of the owner of the related manufactured | ||||||
23 | home, the county of recordation, the date of recordation, and | ||||||
24 | the book and page number of each record of deeds in which there | ||||||
25 | has been recorded an affidavit of affixation or affidavit of | ||||||
26 | severance pursuant to the Conveyance and Encumbrance of |
| |||||||
| |||||||
1 | Manufactured Homes Act, and any other data the Secretary of | ||||||
2 | State prescribes. | ||||||
3 | (f) When satisfied as to its genuineness and regularity, | ||||||
4 | the Secretary of State shall file, upon receipt, each | ||||||
5 | application for surrender of the Manufacturer's Statement of | ||||||
6 | Origin relating to a manufactured home that is delivered in | ||||||
7 | accordance with Section 3-116.1 of this Code. | ||||||
8 | (g) When satisfied as to its genuineness and regularity, | ||||||
9 | the Secretary of State shall file, upon receipt, each | ||||||
10 | application for surrender of the certificate of title relating | ||||||
11 | to a manufactured home that is delivered in accordance with | ||||||
12 | Section 3-116.2 of this Code. | ||||||
13 | (h) When satisfied as to its genuineness and regularity, | ||||||
14 | the Secretary of State shall file, upon receipt, each | ||||||
15 | application for confirmation of conversion relating to a | ||||||
16 | manufactured home that is delivered in accordance with Section | ||||||
17 | 3-116.3 of this Code. | ||||||
18 | (i) The Secretary of State shall maintain a record of each | ||||||
19 | Manufacturer's Statement of Origin accepted for surrender as | ||||||
20 | provided in Section 3-116.1 of this Code. The record shall | ||||||
21 | state the name of each owner of the manufactured home, the date | ||||||
22 | the Manufacturer's Statement of Origin was accepted for | ||||||
23 | surrender, the county of recordation, the date of recordation, | ||||||
24 | and the book and page number of each record of deeds in which | ||||||
25 | there has been recorded an affidavit of affixation pursuant to | ||||||
26 | the Conveyance and Encumbrance of Manufactured Homes Act, and |
| |||||||
| |||||||
1 | any other data the Secretary of State prescribes. | ||||||
2 | (j) The Secretary of State shall maintain a record of each | ||||||
3 | manufactured home certificate of title accepted for surrender | ||||||
4 | as provided in Section 3-116.2 of this Code. The record shall | ||||||
5 | state the name of each owner of the manufactured home, the date | ||||||
6 | the certificate of title was accepted for surrender, the county | ||||||
7 | of recordation, the date of recordation, and the book and page | ||||||
8 | number of each record of deeds in which there has been recorded | ||||||
9 | an affidavit of affixation pursuant to the Conveyance and | ||||||
10 | Encumbrance of Manufactured Homes Act, and any other data the | ||||||
11 | Secretary of State prescribes. | ||||||
12 | (k) The Secretary of State shall maintain a record of each | ||||||
13 | application for confirmation of conversion accepted as | ||||||
14 | provided in Section 3-116.3 of this Code. The record shall | ||||||
15 | state the name of each owner of the manufactured home, the | ||||||
16 | county of recordation, the date of recordation, and the book | ||||||
17 | and page number of each record of deeds in which there has been | ||||||
18 | recorded an affidavit of affixation pursuant to the Conveyance | ||||||
19 | and Encumbrance of Manufactured Homes Act, and any other data | ||||||
20 | the Secretary of State prescribes. | ||||||
21 | (Source: P.A. 86-444.)
| ||||||
22 | (625 ILCS 5/3-107) (from Ch. 95 1/2, par. 3-107)
| ||||||
23 | Sec. 3-107. Contents and effect.
| ||||||
24 | (a) Each certificate of title issued by the Secretary of | ||||||
25 | State shall
contain:
|
| |||||||
| |||||||
1 | 1. the date issued;
| ||||||
2 | 2. the name and address of the owner;
| ||||||
3 | 3. the names and addresses of any lienholders, in the | ||||||
4 | order of
priority as shown on the application or, if the | ||||||
5 | application is based on
a certificate of title, as shown on | ||||||
6 | the certificate;
| ||||||
7 | 4. the title number assigned to the vehicle;
| ||||||
8 | 5. a description of the vehicle including, so far as | ||||||
9 | the following
data exists: its make, year-model, | ||||||
10 | identifying number, type of body,
whether new or used, as | ||||||
11 | to house trailers as defined in Section 1-128 of
this Code, | ||||||
12 | and as to manufactured homes as defined in Section | ||||||
13 | 1-145.002 of this Code, the square footage of the vehicle | ||||||
14 | based upon the outside
dimensions of the house trailer | ||||||
15 | excluding the length of the tongue and
hitch, and, if a new | ||||||
16 | vehicle, the date of the first sale of the vehicle
for use;
| ||||||
17 | 6. an odometer certification as provided for in
this | ||||||
18 | Code; and
| ||||||
19 | 7. any other data the Secretary of State prescribes.
| ||||||
20 | (b) The certificate of title shall contain forms for | ||||||
21 | assignment and
warranty of title by the owner, and for | ||||||
22 | assignment and warranty of title
by a dealer, and may contain | ||||||
23 | forms for applications for a certificate of
title by a | ||||||
24 | transferee, the naming of a lienholder and the assignment or
| ||||||
25 | release of the security interest of a lienholder. | ||||||
26 | (b-5) The Secretary of State shall designate on a |
| |||||||
| |||||||
1 | certificate of title a space where the owner of a vehicle may | ||||||
2 | designate a beneficiary, to whom ownership of the vehicle shall | ||||||
3 | pass in the event of the owner's death.
| ||||||
4 | (c) A certificate of title issued by the Secretary of State | ||||||
5 | is prima
facie evidence of the facts appearing on it.
| ||||||
6 | (d) A certificate of title for a vehicle is not subject to
| ||||||
7 | garnishment, attachment, execution or other judicial process, | ||||||
8 | but this
subsection does not prevent a lawful levy upon the | ||||||
9 | vehicle.
| ||||||
10 | (e) Any certificate of title issued by the Secretary of | ||||||
11 | State is
subject to a lien in favor of the State of Illinois | ||||||
12 | for any fees or
taxes required to be paid under this Act and as | ||||||
13 | have not been paid, as
provided for in this Code.
| ||||||
14 | (f) Notwithstanding any other provision of law, a | ||||||
15 | certificate of title issued by the Secretary of State to a | ||||||
16 | manufactured home is prima facie evidence of the facts | ||||||
17 | appearing on it, regardless that the manufactured home became | ||||||
18 | affixed, at any time and in any manner, to real property. | ||||||
19 | (Source: P.A. 95-784, eff. 1-1-09.)
| ||||||
20 | (625 ILCS 5/3-110) (from Ch. 95 1/2, par. 3-110)
| ||||||
21 | Sec. 3-110. Refusing certificate of title.
| ||||||
22 | The Secretary of State shall refuse issuance of a | ||||||
23 | certificate of title
if any required fee is not paid or if he | ||||||
24 | has reasonable grounds to believe
that:
| ||||||
25 | (a) The applicant is not the owner of the vehicle;
|
| |||||||
| |||||||
1 | (b) The application contains a false or fraudulent | ||||||
2 | statement; or
| ||||||
3 | (c) The applicant fails to furnish required information or | ||||||
4 | documents or
any additional information the Secretary of State | ||||||
5 | reasonably requires;
| ||||||
6 | (d) The applicant has not paid to the Secretary of State | ||||||
7 | any fees or
taxes due under this Act and have not been paid | ||||||
8 | upon reasonable notice and
demand.
| ||||||
9 | (e) Except as provided in Section 3-116.2 of this Code, the | ||||||
10 | Secretary of State shall not refuse to issue a certificate of | ||||||
11 | title to a manufactured home because it, at any time and in any | ||||||
12 | manner, became affixed to real property. | ||||||
13 | (Source: P.A. 77-641.)
| ||||||
14 | (625 ILCS 5/3-116) (from Ch. 95 1/2, par. 3-116)
| ||||||
15 | Sec. 3-116. When Secretary of State to issue a certificate | ||||||
16 | of title.
| ||||||
17 | (a) The Secretary of State, upon receipt of a properly | ||||||
18 | assigned
certificate of title, with an application for a | ||||||
19 | certificate of
title, the required fee and any other documents | ||||||
20 | required by law, shall
issue a new certificate of title in the | ||||||
21 | name of the transferee as owner
and mail it to the first | ||||||
22 | lienholder named in it or, if none, to the
owner or owner's | ||||||
23 | designee.
| ||||||
24 | (b) The Secretary of State, upon receipt of an application | ||||||
25 | for a new
certificate of title by a transferee other than by |
| |||||||
| |||||||
1 | voluntary transfer,
with proof of the transfer, the required | ||||||
2 | fee and any other documents
required by law, shall issue a new | ||||||
3 | certificate of title in the name of
the transferee as owner.
| ||||||
4 | (c) Any person, firm or corporation, who shall knowingly | ||||||
5 | possess,
buy, sell, exchange or give away, or offer to buy, | ||||||
6 | sell, exchange or
give away the certificate of title to any | ||||||
7 | motor vehicle which is a junk
or salvage, or who shall fail to | ||||||
8 | surrender the certificate of title to
the Secretary of State as | ||||||
9 | required under the provisions of this Section
and Section | ||||||
10 | 3-117.2, shall be guilty of Class 3 felony.
| ||||||
11 | (d) The Secretary of State shall file and retain for four | ||||||
12 | (4) years a
record of every surrendered certificate of title or | ||||||
13 | proof of ownership
accepted by the Secretary of State, the file | ||||||
14 | to be maintained so as to
permit the tracing of title of the | ||||||
15 | vehicle designated therein. This subsection (d) does not apply | ||||||
16 | to manufactured homes.
| ||||||
17 | (e) The Secretary of State, upon receipt of an application | ||||||
18 | for
corrected certificate of title, with the original title, | ||||||
19 | the required fee
and any other required documents, shall issue | ||||||
20 | a corrected certificate of
title in the name of the owner and | ||||||
21 | mail it to the first lienholder named in
it or, if none, to the | ||||||
22 | owner or owner's designee.
| ||||||
23 | (f) The Secretary of State, upon receipt of a certified | ||||||
24 | copy of a court
order awarding ownership to an applicant along | ||||||
25 | with an application for a
certificate of title and the required | ||||||
26 | fee, shall issue a certificate of title
to the applicant.
|
| |||||||
| |||||||
1 | (Source: P.A. 90-212, eff. 1-1-98.)
| ||||||
2 | (625 ILCS 5/3-116.1 new) | ||||||
3 | Sec. 3-116.1. Surrender of Manufacturer's Statement of | ||||||
4 | Origin to a manufactured home. | ||||||
5 | (a) The owner or owners of a manufactured home that is | ||||||
6 | covered by a Manufacturer's Statement of Origin, and that is | ||||||
7 | permanently affixed to real property or which the owner intends | ||||||
8 | to permanently affix to real property as defined in Section 10 | ||||||
9 | of the Conveyance and Encumbrance of Manufactured Homes Act, | ||||||
10 | may surrender the Manufacturer's Statement of Origin to the | ||||||
11 | Secretary of State by filing with the Secretary of State an | ||||||
12 | application for surrender of the Manufacturer's Statement of | ||||||
13 | Origin, containing or accompanied by: | ||||||
14 | (1) the name, residence, and mailing address of the | ||||||
15 | owner; | ||||||
16 | (2) a description of the manufactured home including | ||||||
17 | the name of the manufacturer, the make, the model name, the | ||||||
18 | model year, the dimensions, the vehicle identification | ||||||
19 | number of the manufactured home, whether it is new or used, | ||||||
20 | and any other information the Secretary of State requires; | ||||||
21 | (3) the date of purchase by the owner of the | ||||||
22 | manufactured home, the name and address of the person from | ||||||
23 | whom the home was acquired, and the names and addresses of | ||||||
24 | any security interest holders and lienholders in the order | ||||||
25 | of their apparent priority; |
| |||||||
| |||||||
1 | (4) a statement signed by the owner, stating either (i) | ||||||
2 | any facts or information known to the owner that could | ||||||
3 | reasonably affect the validity of the title to the | ||||||
4 | manufactured home or the existence or non-existence of a | ||||||
5 | security interest in or lien on it; or (ii) that no such | ||||||
6 | facts or information are known to the owner; | ||||||
7 | (5) a certified copy of the affidavit of affixation | ||||||
8 | with the original Manufacturer's Statement of Origin in | ||||||
9 | accordance with Section 30 of the Conveyance and | ||||||
10 | Encumbrance of Manufactured Homes Act; | ||||||
11 | (6) the name and mailing address of each person wishing | ||||||
12 | written acknowledgment of surrender from the Secretary of | ||||||
13 | State; and | ||||||
14 | (7) any other information and documents the Secretary | ||||||
15 | of State reasonably requires to identify the owner of the | ||||||
16 | manufactured home and to enable him or her to determine | ||||||
17 | whether the owner satisfied the requirements of Section 35 | ||||||
18 | of the Conveyance and Encumbrance of Manufactured Homes Act | ||||||
19 | and is entitled to surrender the Manufacturer's Statement | ||||||
20 | of Origin, and the existence or non-existence of security | ||||||
21 | interests in or liens on the manufactured home. | ||||||
22 | (b) When satisfied as to the genuineness and regularity of | ||||||
23 | the surrender of a manufactured home's Manufacturer's | ||||||
24 | Statement of Origin, and upon satisfaction of the requirements | ||||||
25 | of subsection (a) of this Section, the Secretary of State shall | ||||||
26 | (i) cancel the Manufacturer's Statement of Origin and update |
| |||||||
| |||||||
1 | his or her records pursuant to Section 3-106 of this Code and | ||||||
2 | (ii) provide written acknowledgment of compliance with the | ||||||
3 | provisions of this Section to each person identified on the | ||||||
4 | application for surrender of the Manufacturer's Statement of | ||||||
5 | Origin pursuant to subsection (a)(7) of this Section. | ||||||
6 | (c) Upon satisfaction of the requirements of this Section, | ||||||
7 | a manufactured home shall be conveyed and encumbered as | ||||||
8 | provided in Section 40 of the Conveyance and Encumbrance of | ||||||
9 | Manufactured Homes Act. If the application to surrender a | ||||||
10 | Manufacturer's Statement of Origin is delivered to the | ||||||
11 | Secretary of State within 60 days of recording the related | ||||||
12 | affidavit of affixation with the recording officer in the | ||||||
13 | county in which the real property to which the manufactured | ||||||
14 | home is or shall be affixed and the application is thereafter | ||||||
15 | accepted by the Secretary of State, the requirements of this | ||||||
16 | Section shall be deemed satisfied as of the date the affidavit | ||||||
17 | of affixation is recorded. | ||||||
18 | (d) Upon written request, the Secretary of State shall | ||||||
19 | provide written acknowledgment of compliance with the | ||||||
20 | provisions of this Section. | ||||||
21 | (625 ILCS 5/3-116.2 new) | ||||||
22 | Sec. 3-116.2. Surrender of title to a manufactured home. | ||||||
23 | (a) The owner or owners of a manufactured home that is | ||||||
24 | covered by a certificate of title and that is permanently | ||||||
25 | affixed to real property or which the owner intends to |
| |||||||
| |||||||
1 | permanently affix to real property as defined in Section 10 of | ||||||
2 | the Conveyance and Encumbrance of Manufactured Homes Act, may | ||||||
3 | surrender the manufactured home's certificate of title to the | ||||||
4 | Secretary of State by filing with the Secretary of State an | ||||||
5 | application for surrender of title, containing or accompanied | ||||||
6 | by: | ||||||
7 | (1) the name, residence, and mailing address of the | ||||||
8 | owner; | ||||||
9 | (2) a description of the manufactured home including | ||||||
10 | the name of the manufacturer, the make, the model name, the | ||||||
11 | model year, the dimensions, the vehicle identification | ||||||
12 | number or numbers of the manufactured home, whether it is | ||||||
13 | new or used, and any other information the Secretary of | ||||||
14 | State requires; | ||||||
15 | (3) the date of purchase by the owner of the | ||||||
16 | manufactured home, the name and address of the person from | ||||||
17 | whom the home was acquired, and the names and addresses of | ||||||
18 | any security interest holders and lienholders in the order | ||||||
19 | of their apparent priority; | ||||||
20 | (4) a statement signed by the owner, stating either, | ||||||
21 | (i) any facts or information known to the owner that could | ||||||
22 | reasonably affect the validity of the title to the | ||||||
23 | manufactured home or the existence or non-existence of a | ||||||
24 | security interest in or lien on it; or (ii) that no such | ||||||
25 | facts or information are known to the owner; | ||||||
26 | (5) a certified copy of the affidavit of affixation as |
| |||||||
| |||||||
1 | provided by Section 15 of the Conveyance and Encumbrance of | ||||||
2 | Manufactured Homes Act; | ||||||
3 | (6) the original certificate of title; | ||||||
4 | (7) the name and mailing address of each person wishing | ||||||
5 | written acknowledgment of surrender from the Secretary of | ||||||
6 | State; and | ||||||
7 | (8) any other information and documents the Secretary | ||||||
8 | of State reasonably requires to identify the owner of the | ||||||
9 | manufactured home and to enable him or her to determine | ||||||
10 | whether the owner satisfied the requirements of Section 35 | ||||||
11 | of the Conveyance and Encumbrance of Manufactured Homes Act | ||||||
12 | and is entitled to surrender the certificate of title and | ||||||
13 | the existence or non-existence of security interests in or | ||||||
14 | liens on the manufactured home. | ||||||
15 | (b) The Secretary of State shall not accept for surrender a | ||||||
16 | certificate of title to a manufactured home unless and until | ||||||
17 | all security interests or liens perfected pursuant to Sections | ||||||
18 | 3-106 and 3-202 of this Code have been released; | ||||||
19 | (c) When satisfied as to the genuineness and regularity of | ||||||
20 | the surrender of a manufactured home's certificate of title, | ||||||
21 | and upon satisfaction of the requirements of subsections (a) | ||||||
22 | and (b) of this Section, the Secretary of State shall (i) | ||||||
23 | cancel the certificate of title and update his or her records | ||||||
24 | in accordance with the provisions of Section 3-106 of this Code | ||||||
25 | and (ii) provide written acknowledgment of compliance with the | ||||||
26 | provisions of this Section to each person identified on the |
| |||||||
| |||||||
1 | application for surrender of title pursuant to subsection | ||||||
2 | (a)(7) of this Section. | ||||||
3 | (d) Upon satisfaction of the requirements of this Section, | ||||||
4 | a manufactured home shall be conveyed and encumbered as | ||||||
5 | provided in Section 40 of the Conveyance and Encumbrance of | ||||||
6 | Manufactured Homes Act. If the application to surrender a | ||||||
7 | certificate of title is delivered to the Secretary of State | ||||||
8 | within 60 days of recording the related affidavit of affixation | ||||||
9 | with the recording officer in the county in which the real | ||||||
10 | property to which the manufactured home is or shall be affixed, | ||||||
11 | and the application is thereafter accepted by the Secretary of | ||||||
12 | State, the requirements of this Section shall be deemed | ||||||
13 | satisfied as of the date the affidavit of affixation is | ||||||
14 | recorded. | ||||||
15 | (e) Upon written request, the Secretary of State shall | ||||||
16 | provide written acknowledgment of compliance with the | ||||||
17 | provisions of this Section. | ||||||
18 | (625 ILCS 5/3-116.3 new) | ||||||
19 | Sec. 3-116.3. Confirmation of conversion of a manufactured | ||||||
20 | home to real property. | ||||||
21 | (a) The owner or owners of a manufactured home that is not | ||||||
22 | covered by a Manufacturer's Statement of Origin or a | ||||||
23 | certificate of title, or that is covered by a Manufacturer's | ||||||
24 | Statement of Origin or a certificate of title which the owner | ||||||
25 | of the manufactured home is unable to produce after diligent |
| |||||||
| |||||||
1 | search and inquiry, and that is permanently affixed to real | ||||||
2 | property or which the owner intends to permanently affix to | ||||||
3 | real property as defined in Section 10 of the Conveyance and | ||||||
4 | Encumbrance of Manufactured Homes Act, may apply to the | ||||||
5 | Secretary of State by filing with the Secretary of State an | ||||||
6 | application for confirmation of conversion, containing or | ||||||
7 | accompanied by: | ||||||
8 | (1) the name, residence, and mailing address of the | ||||||
9 | owner; | ||||||
10 | (2) a description of the manufactured home including | ||||||
11 | the name of the manufacturer, the make, the model name, the | ||||||
12 | model year, the dimensions, the vehicle identification | ||||||
13 | number of the manufactured home, whether it is new or used, | ||||||
14 | and any other information the Secretary of State requires; | ||||||
15 | (3) the date of purchase by the owner of the | ||||||
16 | manufactured home, the name and address of the person from | ||||||
17 | whom the home was acquired, and the names and addresses of | ||||||
18 | any security interest holders and lienholders in the order | ||||||
19 | of their apparent priority; | ||||||
20 | (4) a statement signed by the owner, stating either (i) | ||||||
21 | any facts or information known to the owner that could | ||||||
22 | reasonably affect the validity of the title to the | ||||||
23 | manufactured home or the existence or non-existence of a | ||||||
24 | security interest in or lien on it; or (ii) that no such | ||||||
25 | facts or information are known to the owner; | ||||||
26 | (5) a certified copy of the affidavit of affixation as |
| |||||||
| |||||||
1 | provided in accordance with Section 30 of the Conveyance | ||||||
2 | and Encumbrance of Manufactured Homes Act; | ||||||
3 | (6) a sworn declaration by an attorney at law duly | ||||||
4 | admitted to practice in the courts of the State of | ||||||
5 | Illinois, or an agent of a title insurance company duly | ||||||
6 | licensed to issue policies of title insurance in the State | ||||||
7 | of Illinois, that the manufactured home is free and clear | ||||||
8 | of all security interests, liens, and encumbrances, and (i) | ||||||
9 | any facts or information known to him or her that could | ||||||
10 | reasonably affect the validity of the title of the | ||||||
11 | manufactured home or the existence or non-existence of any | ||||||
12 | security interest in or lien on it; or (ii) that no such | ||||||
13 | facts or information are known to him or her; | ||||||
14 | (7) the name and mailing address of each person wishing | ||||||
15 | written acknowledgment of surrender from the Secretary of | ||||||
16 | State; and | ||||||
17 | (8) any other information and documents the Secretary | ||||||
18 | of State reasonably requires to identify the owner of the | ||||||
19 | manufactured home and to enable him or her to determine | ||||||
20 | whether the owner satisfied the requirements of Section 35 | ||||||
21 | of the Conveyance and Encumbrance of Manufactured Homes | ||||||
22 | Act, and the existence or non-existence of security | ||||||
23 | interests in or liens on the manufactured home. | ||||||
24 | (b) When satisfied as to the genuineness and regularity of | ||||||
25 | the application for confirmation of conversion of a | ||||||
26 | manufactured home, and upon satisfaction of the requirements of |
| |||||||
| |||||||
1 | subsection (a) of this Section, the Secretary of State shall | ||||||
2 | (i) update his or her records in accordance with the provisions | ||||||
3 | of Section 3-106 of this Code and (ii) provide written | ||||||
4 | acknowledgment of compliance with the provisions of this | ||||||
5 | Section to each person identified on the application for | ||||||
6 | confirmation of conversion pursuant to subsection (a)(7) of | ||||||
7 | this Section. | ||||||
8 | (c) Upon satisfaction of the requirements of this Section, | ||||||
9 | a manufactured home shall be conveyed and encumbered as | ||||||
10 | provided in Section 40 of the Conveyance and Encumbrance of | ||||||
11 | Manufactured Homes Act. If the application for confirmation of | ||||||
12 | conversion of a manufactured home is delivered to the Secretary | ||||||
13 | of State within 60 days of recording the related affidavit of | ||||||
14 | affixation with the recording officer in the county in which | ||||||
15 | the real property to which the manufactured home is or shall be | ||||||
16 | affixed, and the application is thereafter accepted by the | ||||||
17 | Secretary of State, the requirements of this Section shall be | ||||||
18 | deemed satisfied as of the date the affidavit of affixation is | ||||||
19 | recorded. | ||||||
20 | (d) Upon written request, the Secretary of State shall | ||||||
21 | provide written acknowledgment of compliance with the | ||||||
22 | provisions of this Section. | ||||||
23 | (625 ILCS 5/3-116.4 new) | ||||||
24 | Sec. 3-116.4. Application for a certificate of title to a | ||||||
25 | severed manufactured home. |
| |||||||
| |||||||
1 | (a) Notwithstanding any other provision of law, where a | ||||||
2 | manufactured home has been permanently affixed to real | ||||||
3 | property, and an affidavit of affixation has been recorded as | ||||||
4 | part of the real property records in the county in which the | ||||||
5 | manufactured home is located pursuant to Section 15 of the | ||||||
6 | Conveyance and Encumbrance of Manufactured Homes Act, and where | ||||||
7 | the manufactured home subsequently is detached or severed from | ||||||
8 | the real property, the owner or owners of the manufactured home | ||||||
9 | may apply for a new certificate of title by filing with the | ||||||
10 | Secretary of State an application for a certificate of title to | ||||||
11 | a manufactured home, containing or accompanied by: | ||||||
12 | (1) the name, residence, and mailing address of the | ||||||
13 | owner; | ||||||
14 | (2) a description of the manufactured home including | ||||||
15 | the name of the manufacturer, the make, the model name, the | ||||||
16 | model year, the dimensions, the vehicle identification | ||||||
17 | number or numbers of the manufactured home, whether it is | ||||||
18 | new or used, and any other information the Secretary of | ||||||
19 | State requires; | ||||||
20 | (3) a statement signed by the applicant, stating | ||||||
21 | either: (i) any facts or information known to the applicant | ||||||
22 | that could reasonably affect the validity of the title of | ||||||
23 | the manufactured home or the existence or non-existence of | ||||||
24 | any security interest in or lien on it; or (ii) that no | ||||||
25 | such facts or information are known to the applicant; | ||||||
26 | (4) a certified copy of the affidavit of severance |
| |||||||
| |||||||
1 | provided in accordance with Section 55 of the Conveyance | ||||||
2 | and Encumbrance of Manufactured Homes Act. | ||||||
3 | (5) a sworn declaration by an attorney at law duly | ||||||
4 | admitted to practice in the courts of the State of | ||||||
5 | Illinois, or an agent of a title insurance company duly | ||||||
6 | licensed to issue policies of title insurance in the State | ||||||
7 | of Illinois, that the manufactured home is free and clear | ||||||
8 | of all security interests, liens, and encumbrances, and (i) | ||||||
9 | any facts or information known to him or her that could | ||||||
10 | reasonably affect the validity of the title of the | ||||||
11 | manufactured home or the existence or non-existence of any | ||||||
12 | security interest in or lien on it; or (ii) that no such | ||||||
13 | facts or information are known to him or her; and | ||||||
14 | (6) any other information and documents the Secretary | ||||||
15 | of State reasonably requires to identify the manufactured | ||||||
16 | home and to enable him or her to determine whether the | ||||||
17 | owner is entitled to a certificate of title, and the | ||||||
18 | existence or non-existence of security interests in or | ||||||
19 | liens on the manufactured home. | ||||||
20 | (b) When satisfied as to its genuineness and regularity the | ||||||
21 | application for a certificate of title to a manufactured home, | ||||||
22 | and upon satisfaction of the requirements of subsection (a) of | ||||||
23 | this Section, the Secretary of State shall issue a new | ||||||
24 | certificate of title and update his or her records in | ||||||
25 | accordance with the provisions of Section 3-106 of this Code. | ||||||
26 | (c) Immediately upon satisfaction of the requirements of |
| |||||||
| |||||||
1 | this Section and thereafter, a manufactured home shall be | ||||||
2 | conveyed and encumbered as personal property.
| ||||||
3 | (625 ILCS 5/3-202) (from Ch. 95 1/2, par. 3-202)
| ||||||
4 | Sec. 3-202. Perfection of security interest.
| ||||||
5 | (a) Unless excepted by Section 3-201, a security interest | ||||||
6 | in a
vehicle of a type for which a certificate of title is | ||||||
7 | required is not
valid against subsequent transferees or | ||||||
8 | lienholders of the vehicle
unless perfected as provided in this | ||||||
9 | Act. A purchase money security interest in a manufactured home | ||||||
10 | is perfected against the rights of judicial lien creditors and | ||||||
11 | execution creditors on and after the date such purchase money | ||||||
12 | security interest attaches.
| ||||||
13 | (b) A security interest is perfected by the delivery to the
| ||||||
14 | Secretary of State of the existing certificate of title, if | ||||||
15 | any, an
application for a certificate of title containing the | ||||||
16 | name and address
of the lienholder and the
required fee. The | ||||||
17 | security interest is perfected as of the time of
its creation | ||||||
18 | if the
delivery to the Secretary of State is completed within | ||||||
19 | 30 days after the
creation of the security interest or receipt | ||||||
20 | by the new lienholder of the
existing certificate of title from | ||||||
21 | a prior lienholder or licensed
dealer, otherwise as of the
time | ||||||
22 | of the delivery.
| ||||||
23 | (c) If a vehicle is subject to a security interest when | ||||||
24 | brought into
this State, the validity of the security interest | ||||||
25 | is determined by the
law of the jurisdiction where the vehicle |
| |||||||
| |||||||
1 | was when the security interest
attached, subject to the | ||||||
2 | following:
| ||||||
3 | 1. If the parties understood at the time the security | ||||||
4 | interest
attached that the vehicle would be kept in this | ||||||
5 | State and it was brought
into this State within 30 days | ||||||
6 | thereafter for purposes other than
transportation through | ||||||
7 | this State, the validity of the security interest
in this | ||||||
8 | State is determined by the law of this State.
| ||||||
9 | 2. If the security interest was perfected under the law | ||||||
10 | of the
jurisdiction where the vehicle was when the security | ||||||
11 | interest attached,
the following rules apply:
| ||||||
12 | (A) If the name of the lienholder is shown on an | ||||||
13 | existing
certificate of title issued by that | ||||||
14 | jurisdiction, his security interest
continues | ||||||
15 | perfected in this State.
| ||||||
16 | (B) If the name of the lienholder is not shown on | ||||||
17 | an existing
certificate of title issued by that | ||||||
18 | jurisdiction, a security interest
may be perfected by | ||||||
19 | the lienholder delivering to the Secretary of State
the | ||||||
20 | prescribed notice and by payment of the required fee. | ||||||
21 | Such security
interest is perfected as of the time of | ||||||
22 | delivery of the prescribed
notice and payment of the | ||||||
23 | required fee.
| ||||||
24 | 3. If the security interest was not perfected under the | ||||||
25 | law of the
jurisdiction where the vehicle was when the | ||||||
26 | security interest attached,
it may be perfected in this |
| |||||||
| |||||||
1 | State; in that case perfection dates from
the time of | ||||||
2 | perfection in this State.
| ||||||
3 | 4. A security interest may be perfected under paragraph | ||||||
4 | 3 of this
subsection either as provided in subsection (b) | ||||||
5 | or by the lienholder
delivering to the Secretary of State a | ||||||
6 | notice of security interest in
the form the Secretary of | ||||||
7 | State prescribes and the required fee.
| ||||||
8 | (d) Except as otherwise provided in the Conveyance and | ||||||
9 | Encumbrance of Manufactured Homes Act and Sections 3-116.1, | ||||||
10 | 3-116.2, and 3-207 of this Code, after a certificate of title | ||||||
11 | has been issued for a manufactured home and as long as the | ||||||
12 | manufactured home is subject to any security interest perfected | ||||||
13 | pursuant to this Section, the Secretary of State shall not file | ||||||
14 | an affidavit of affixation, nor cancel the Manufacturer's | ||||||
15 | Statement of Origin, nor revoke the certificate of title, nor | ||||||
16 | issue a certificate of title under Section 3-106 of this Code; | ||||||
17 | and, in any event, the validity and priority of any security | ||||||
18 | interest perfected pursuant to this Section shall continue, | ||||||
19 | notwithstanding the provision of any other law. | ||||||
20 | (Source: P.A. 95-284, eff. 1-1-08.)
| ||||||
21 | (625 ILCS 5/3-205) (from Ch. 95 1/2, par. 3-205)
| ||||||
22 | Sec. 3-205. Release of security interest.
| ||||||
23 | (a) Within 21 days after receiving payment to satisfy a | ||||||
24 | security interest in a vehicle for
which the certificate of | ||||||
25 | title is in the possession of the lienholder,
he shall execute |
| |||||||
| |||||||
1 | a release of his security interest, and mail
or deliver the | ||||||
2 | certificate and release to the next lienholder named
therein, | ||||||
3 | or, if none, to the owner or any person who delivers to the
| ||||||
4 | lienholder an authorization from the owner to receive the | ||||||
5 | certificate.
If the payment is in the form of cash, a cashier's | ||||||
6 | check, or a
certified check, the number of days is reduced to | ||||||
7 | 10 business days.
If the owner desires a new certificate | ||||||
8 | reflecting no lien, the certificate
and release from the | ||||||
9 | lienholder may be submitted to the Secretary of State,
along | ||||||
10 | with the prescribed application and required fee, for issuance | ||||||
11 | of that
new certificate.
| ||||||
12 | (b) Within 21 days after receiving payment to satisfy a | ||||||
13 | security interest in a vehicle for
which the certificate of | ||||||
14 | title is in the possession of a prior
lienholder, the | ||||||
15 | lienholder whose security interest is satisfied shall
execute a | ||||||
16 | release and deliver the release to the owner or any
person who | ||||||
17 | delivers to the lienholder an authorization from the owner to
| ||||||
18 | receive it. If the payment is in the form of cash, a cashier's | ||||||
19 | check, or a
certified check, the number of days is reduced to | ||||||
20 | 10 business days. The
lienholder in possession of the | ||||||
21 | certificate of title
may either deliver the certificate to the | ||||||
22 | owner, or the person
authorized by him, for delivery to the | ||||||
23 | Secretary of State, or, upon
receipt of the release, may mail | ||||||
24 | or may deliver the certificate and release,
along with | ||||||
25 | prescribed application and require fee, to
the Secretary of | ||||||
26 | State, who shall issue a new certificate.
|
| |||||||
| |||||||
1 | (c) In addition to any other penalty, a lienholder who | ||||||
2 | fails to execute a
release of his or her security interest or | ||||||
3 | who fails to mail or deliver the
certificate and release within | ||||||
4 | the time limit provided in subsection (a) or (b)
is liable to | ||||||
5 | the person or entity that was supposed to receive the release | ||||||
6 | or
certificate for $150 plus reasonable attorney fees and court | ||||||
7 | costs.
An action under this Section may be brought in small | ||||||
8 | claims court or in any
other appropriate court.
| ||||||
9 | (d) The holder of a security interest in or a lien on a | ||||||
10 | manufactured home may deliver lien release documents to any | ||||||
11 | person to facilitate conveying or encumbering the manufactured | ||||||
12 | home. Any person receiving the lien release documents, so | ||||||
13 | delivered, holds the documents in trust for the security | ||||||
14 | interest holder or the lienholder. | ||||||
15 | (Source: P.A. 93-621, eff. 12-15-03.)
| ||||||
16 | (625 ILCS 5/3-207) (from Ch. 95 1/2, par. 3-207)
| ||||||
17 | Sec. 3-207. Exclusiveness of procedure.
| ||||||
18 | The method provided in this act of perfecting and giving | ||||||
19 | notice of
security interests subject to this act is exclusive. | ||||||
20 | Security interests
subject to this act are hereby exempted from | ||||||
21 | the provisions of law which
otherwise require or relate to the | ||||||
22 | recording or filing of instruments
creating or evidencing | ||||||
23 | security interests in vehicles including chattel
mortgages and | ||||||
24 | conditional sale agreements , provided, however, that upon | ||||||
25 | recording an affidavit of affixation for a manufactured home |
| |||||||
| |||||||
1 | that is or will be permanently affixed pursuant to Section 10 | ||||||
2 | of the Conveyance and Encumbrance of Manufactured Homes Act, | ||||||
3 | and satisfaction, as applicable, of the requirements of | ||||||
4 | Sections 3-116.1, 3-116.2, or 3-116.3 of this Code, any | ||||||
5 | perfection or termination of a security interest with respect | ||||||
6 | to such permanently affixed property shall be governed by the | ||||||
7 | Property Chapter .
| ||||||
8 | (Source: P.A. 76-1586.)
| ||||||
9 | (625 ILCS 5/3-208) (from Ch. 95 1/2, par. 3-208)
| ||||||
10 | Sec. 3-208. Suspension or revocation of certificates.
| ||||||
11 | (a) (1) The Secretary of State may suspend or revoke a | ||||||
12 | certificate of title,
upon notice and reasonable opportunity to | ||||||
13 | be heard in accordance with
Section 2-118, when authorized by | ||||||
14 | any other provision of law or if he
finds:
| ||||||
15 | 1. The certificate of title was fraudulently procured or | ||||||
16 | erroneously
issued, or
| ||||||
17 | 2. The vehicle has been scrapped, dismantled or destroyed.
| ||||||
18 | (2) Except as provided in Section 3-116.2 of this Code, | ||||||
19 | the Secretary of State shall not suspend or revoke a | ||||||
20 | certificate of title to a manufactured home because it, at | ||||||
21 | any time and in any manner, became affixed to real | ||||||
22 | property. | ||||||
23 | (b) Suspension or revocation of a certificate of title does | ||||||
24 | not, in
itself, affect the validity of a security interest | ||||||
25 | noted on it.
|
| |||||||
| |||||||
1 | (c) When the Secretary of State suspends or revokes a | ||||||
2 | certificate of
title, the owner or person in possession of it | ||||||
3 | shall, immediately upon
receiving notice of the suspension or | ||||||
4 | revocation, mail or deliver the
certificate to the Secretary of | ||||||
5 | State.
| ||||||
6 | (d) The Secretary of State may seize and impound any | ||||||
7 | certificate of
title which has been suspended or revoked.
| ||||||
8 | (Source: P.A. 76-1586.)
| ||||||
9 | Section 105. The Code of Civil Procedure is amended by | ||||||
10 | changing Section 15-1213 as follows:
| ||||||
11 | (735 ILCS 5/15-1213) (from Ch. 110, par. 15-1213)
| ||||||
12 | Sec. 15-1213. Real Estate. "Real estate" means land or any | ||||||
13 | estate or
interest in, over or under land (including minerals, | ||||||
14 | air rights,
structures, fixtures and other things which by | ||||||
15 | custom, usage or law pass
with a conveyance of land though not | ||||||
16 | described or mentioned in the contract
of sale or instrument of | ||||||
17 | conveyance). "Mortgaged real estate" means the
real estate | ||||||
18 | which is the subject of a mortgage. "Real Estate" includes a | ||||||
19 | manufactured home as defined in paragraph (53) of Section 9-102 | ||||||
20 | of the Uniform Commercial Code that is real property as defined | ||||||
21 | in Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
22 | Homes Act.
| ||||||
23 | (Source: P.A. 84-1462.)
|
| |||||||
| |||||||
1 | Section 110. The Conveyances Act is amended by changing | ||||||
2 | Section 38 as follows:
| ||||||
3 | (765 ILCS 5/38) (from Ch. 30, par. 37)
| ||||||
4 | Sec. 38.
The term "real estate," as used in this act, shall | ||||||
5 | be construed as
co-extensive in meaning with "lands, tenements | ||||||
6 | and hereditaments," and as
embracing all chattels real. "Real | ||||||
7 | estate" and "real property" include a manufactured home as | ||||||
8 | defined in paragraph (53) of Section 9-102 of the Uniform | ||||||
9 | Commercial Code that is real property as defined in Section 40 | ||||||
10 | of the Conveyance and Encumbrance of Manufactured Homes Act. | ||||||
11 | This act shall not be construed so as to
embrace last wills, | ||||||
12 | except as herein expressly provided.
| ||||||
13 | (Source: P.A. 84-551.)
| ||||||
14 | Section 115. The Residential Real Property Disclosure Act | ||||||
15 | is amended by changing Section 5 as follows:
| ||||||
16 | (765 ILCS 77/5)
| ||||||
17 | Sec. 5. Definitions. As used in this Act, unless the | ||||||
18 | context otherwise
requires the
following terms have the meaning | ||||||
19 | given in this Section.
| ||||||
20 | "Residential real property" means real property improved | ||||||
21 | with not less
than one nor more than 4 residential dwelling | ||||||
22 | units; units in residential
cooperatives; or, condominium | ||||||
23 | units, including the limited common elements
allocated to the |
| |||||||
| |||||||
1 | exclusive use thereof that form an integral part of the
| ||||||
2 | condominium unit. The term includes a manufactured home as | ||||||
3 | defined in paragraph (53) of Section 9-102 of the Uniform | ||||||
4 | Commercial Code that is real property as defined in Section 40 | ||||||
5 | of the Conveyance and Encumbrance of Manufactured Homes Act.
| ||||||
6 | "Seller" means every person or entity who is an owner, | ||||||
7 | beneficiary of a
trust, contract purchaser or lessee of a | ||||||
8 | ground lease,
who has an interest (legal or equitable) in | ||||||
9 | residential real property.
However, "seller" shall not include
| ||||||
10 | any person who has both (i) never occupied the residential real | ||||||
11 | property and
(ii) never had the management responsibility for | ||||||
12 | the residential real property
nor delegated such | ||||||
13 | responsibility for the residential real property to another
| ||||||
14 | person or entity.
| ||||||
15 | "Prospective buyer" means any person or entity negotiating | ||||||
16 | or offering
to become an owner or lessee of residential real | ||||||
17 | property by means of a
transfer for value to which this Act | ||||||
18 | applies.
| ||||||
19 | (Source: P.A. 90-383, eff. 1-1-98.)
| ||||||
20 | Section 120. The Mortgage Act is amended by adding Section | ||||||
21 | 13.1 as follows: | ||||||
22 | (765 ILCS 905/13.1 new) | ||||||
23 | Sec. 13.1. As used in this Act: | ||||||
24 | "Real estate" and "real property" include a manufactured |
| |||||||
| |||||||
1 | home as defined in paragraph (53) of Section 9-102 of the | ||||||
2 | Uniform Commercial Code that is real property as defined in | ||||||
3 | Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
4 | Homes Act. | ||||||
5 | Section 125. The Joint Tenancy Act is amended by adding | ||||||
6 | Section 5 as follows: | ||||||
7 | (765 ILCS 1005/5 new) | ||||||
8 | Sec. 5. As used in this Act: | ||||||
9 | "Real estate" and "real property" include a manufactured | ||||||
10 | home as defined in paragraph (53) of Section 9-102 of the | ||||||
11 | Uniform Commercial Code that is real property as defined in | ||||||
12 | Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
13 | Homes Act. | ||||||
14 | Section 130. The Interest Act is amended by changing | ||||||
15 | Sections 4, 4.2, and 4a as follows:
| ||||||
16 | (815 ILCS 205/4) (from Ch. 17, par. 6404)
| ||||||
17 | Sec. 4. General interest rate.
| ||||||
18 | (1) Except as otherwise provided in Section 4.05, in all | ||||||
19 | written contracts it shall be lawful for the parties to
| ||||||
20 | stipulate or agree that 9% per annum, or any less sum of | ||||||
21 | interest, shall be
taken and paid upon every $100 of money | ||||||
22 | loaned or in any manner due and
owing from any person to any |
| |||||||
| |||||||
1 | other person or corporation in this state, and
after that rate | ||||||
2 | for a greater or less sum, or for a longer or shorter time,
| ||||||
3 | except as herein provided.
| ||||||
4 | The maximum rate of interest that may lawfully be | ||||||
5 | contracted for is
determined by the law applicable thereto at | ||||||
6 | the time the contract is
made. Any provision in any contract, | ||||||
7 | whether made before or after July
1, 1969, which provides for | ||||||
8 | or purports to authorize, contingent upon a
change in the | ||||||
9 | Illinois law after the contract is made, any rate of
interest | ||||||
10 | greater than the maximum lawful rate at the time the contract
| ||||||
11 | is made, is void.
| ||||||
12 | It is lawful for a state bank or a branch of an | ||||||
13 | out-of-state bank, as those
terms are defined in Section 2 of | ||||||
14 | the Illinois Banking Act, to receive or to
contract to receive
| ||||||
15 | and collect interest and charges at any rate or rates agreed | ||||||
16 | upon by
the bank or branch and the borrower.
It is lawful for a | ||||||
17 | savings bank chartered under the Savings Bank Act or a
savings | ||||||
18 | association chartered under the Illinois Savings and Loan Act | ||||||
19 | of 1985
to receive or contract to receive and collect interest | ||||||
20 | and charges at any rate
agreed upon by the savings bank or | ||||||
21 | savings association and the borrower.
| ||||||
22 | It is lawful to receive or to contract to receive and | ||||||
23 | collect
interest and charges as authorized by this Act and as | ||||||
24 | authorized by the
Consumer Installment Loan Act and by the | ||||||
25 | "Consumer Finance Act", approved July
10,
1935, as now or | ||||||
26 | hereafter amended, or by the Payday Loan Reform Act. It is |
| |||||||
| |||||||
1 | lawful to charge, contract
for, and receive any rate or amount | ||||||
2 | of interest or compensation with
respect to the following | ||||||
3 | transactions:
| ||||||
4 | (a) Any loan made to a corporation;
| ||||||
5 | (b) Advances of money, repayable on demand, to an | ||||||
6 | amount not less
than $5,000, which are made upon warehouse | ||||||
7 | receipts, bills of lading,
certificates of stock, | ||||||
8 | certificates of deposit, bills of exchange, bonds
or other | ||||||
9 | negotiable instruments pledged as collateral security for | ||||||
10 | such
repayment, if evidenced by a writing;
| ||||||
11 | (c) Any credit transaction between a merchandise | ||||||
12 | wholesaler and
retailer; any business loan to a business | ||||||
13 | association or copartnership
or to a person owning and | ||||||
14 | operating a business as sole proprietor or to
any persons | ||||||
15 | owning and operating a business as joint venturers, joint
| ||||||
16 | tenants or tenants in common, or to any limited | ||||||
17 | partnership, or to any
trustee owning and operating a | ||||||
18 | business or whose beneficiaries own and
operate a business, | ||||||
19 | except that any loan which is secured (1) by an
assignment | ||||||
20 | of an individual obligor's salary, wages, commissions or
| ||||||
21 | other compensation for services, or (2) by his household | ||||||
22 | furniture or
other goods used for his personal, family or | ||||||
23 | household purposes shall be
deemed not to be a loan within | ||||||
24 | the meaning of this subsection; and
provided further that a | ||||||
25 | loan which otherwise qualifies as a business
loan within | ||||||
26 | the meaning of this subsection shall not be deemed as not |
| |||||||
| |||||||
1 | so
qualifying because of the inclusion, with other security | ||||||
2 | consisting of
business assets of any such obligor, of real | ||||||
3 | estate occupied by an
individual obligor solely as his | ||||||
4 | residence. The term "business" shall
be deemed to mean a | ||||||
5 | commercial, agricultural or industrial enterprise
which is | ||||||
6 | carried on for the purpose of investment or profit, but | ||||||
7 | shall
not be deemed to mean the ownership or maintenance of | ||||||
8 | real estate
occupied by an individual obligor solely as his | ||||||
9 | residence;
| ||||||
10 | (d) Any loan made in accordance with the provisions of | ||||||
11 | Subchapter I
of Chapter 13 of Title 12 of the United States | ||||||
12 | Code, which is designated
as "Housing Renovation and | ||||||
13 | Modernization";
| ||||||
14 | (e) Any mortgage loan insured or upon which a | ||||||
15 | commitment to insure
has been issued under the provisions | ||||||
16 | of the National Housing Act,
Chapter 13 of Title 12 of the | ||||||
17 | United States Code;
| ||||||
18 | (f) Any mortgage loan guaranteed or upon which a | ||||||
19 | commitment to
guaranty has been issued under the provisions | ||||||
20 | of the Veterans' Benefits
Act, Subchapter II of Chapter 37 | ||||||
21 | of Title 38 of the United States Code;
| ||||||
22 | (g) Interest charged by a broker or dealer registered | ||||||
23 | under the
Securities Exchange Act of 1934, as amended, or | ||||||
24 | registered under the
Illinois Securities Law of 1953, | ||||||
25 | approved July 13, 1953, as now or
hereafter amended, on a | ||||||
26 | debit balance in an account for a customer if
such debit |
| |||||||
| |||||||
1 | balance is payable at will without penalty and is secured | ||||||
2 | by
securities as defined in Uniform Commercial | ||||||
3 | Code-Investment Securities;
| ||||||
4 | (h) Any loan made by a participating bank as part of | ||||||
5 | any loan
guarantee program which provides for loans and for | ||||||
6 | the refinancing of
such loans to medical students, interns | ||||||
7 | and residents and which are
guaranteed by the American | ||||||
8 | Medical Association Education and Research
Foundation;
| ||||||
9 | (i) Any loan made, guaranteed, or insured in accordance | ||||||
10 | with the
provisions of the Housing Act of 1949, Subchapter | ||||||
11 | III of Chapter 8A of
Title 42 of the United States Code and | ||||||
12 | the Consolidated Farm and Rural
Development Act, | ||||||
13 | Subchapters I, II, and III of Chapter 50 of Title 7 of
the | ||||||
14 | United States Code;
| ||||||
15 | (j) Any loan by an employee pension benefit plan, as | ||||||
16 | defined in Section
3 (2) of the Employee Retirement Income | ||||||
17 | Security Act of 1974 (29 U.S.C.A.
Sec. 1002), to an | ||||||
18 | individual participating in such plan, provided that such
| ||||||
19 | loan satisfies the prohibited transaction exemption | ||||||
20 | requirements of Section
408 (b) (1) (29 U.S.C.A. Sec. 1108 | ||||||
21 | (b) (1)) or Section 2003 (a) (26 U.S.C.A.
Sec. 4975 (d) | ||||||
22 | (1)) of the Employee Retirement Income Security Act of | ||||||
23 | 1974;
| ||||||
24 | (k) Written contracts, agreements or bonds for deed | ||||||
25 | providing for
installment purchase of real estate , | ||||||
26 | including a manufactured home as defined in paragraph (53) |
| |||||||
| |||||||
1 | of Section 9-102 of the Uniform Commercial Code that is | ||||||
2 | real property as defined in Section 40 of the Conveyance | ||||||
3 | and Encumbrance of Manufactured Homes Act ;
| ||||||
4 | (1) Loans secured by a mortgage on real estate , | ||||||
5 | including a manufactured home as defined in paragraph (53) | ||||||
6 | of Section 9-102 of the Uniform Commercial Code that is | ||||||
7 | real property as defined in Section 40 of the Conveyance | ||||||
8 | and Encumbrance of Manufactured Homes Act ;
| ||||||
9 | (m) Loans made by a sole proprietorship, partnership, | ||||||
10 | or corporation to
an employee or to a person who has been | ||||||
11 | offered employment by such sole
proprietorship, | ||||||
12 | partnership, or corporation made for the sole purpose of
| ||||||
13 | transferring an employee or person who has been offered | ||||||
14 | employment to another
office maintained and operated by the | ||||||
15 | same sole proprietorship, partnership,
or corporation;
| ||||||
16 | (n) Loans to or for the benefit of students made by an | ||||||
17 | institution of
higher education.
| ||||||
18 | (2) Except for loans described in subparagraph (a), (c), | ||||||
19 | (d),
(e), (f) or (i) of subsection (1) of this Section, and | ||||||
20 | except to the
extent permitted by the applicable statute for | ||||||
21 | loans made pursuant to
Section 4a or pursuant to the Consumer | ||||||
22 | Installment Loan Act:
| ||||||
23 | (a) Whenever the rate of interest exceeds 8% per annum | ||||||
24 | on any
written contract, agreement or bond for deed | ||||||
25 | providing for the installment
purchase of residential real | ||||||
26 | estate, or on any loan secured by a mortgage
on residential |
| |||||||
| |||||||
1 | real estate, it shall be unlawful to provide for a
| ||||||
2 | prepayment penalty or other charge for prepayment.
| ||||||
3 | (b) No agreement, note or other instrument evidencing a | ||||||
4 | loan
secured by a mortgage on residential real estate, or | ||||||
5 | written contract,
agreement or bond for deed providing for | ||||||
6 | the installment purchase of
residential real estate, may | ||||||
7 | provide for any change in the contract rate of
interest | ||||||
8 | during the term thereof. However, if the Congress of the | ||||||
9 | United
States or any federal agency authorizes any class of | ||||||
10 | lender to enter, within
limitations, into mortgage | ||||||
11 | contracts or written contracts, agreements or
bonds for | ||||||
12 | deed in which the rate of interest may be changed during | ||||||
13 | the
term of the contract, any person, firm, corporation or | ||||||
14 | other entity
not otherwise prohibited from entering into | ||||||
15 | mortgage contracts or
written contracts, agreements or | ||||||
16 | bonds for deed in Illinois may enter
into mortgage | ||||||
17 | contracts or written contracts, agreements or bonds
for | ||||||
18 | deed in which the rate of interest may be changed during | ||||||
19 | the term
of the contract, within the same limitations.
| ||||||
20 | (3) In any contract or loan which is secured by a mortgage, | ||||||
21 | deed of
trust, or conveyance in the nature of a mortgage, on | ||||||
22 | residential real
estate, the interest which is computed, | ||||||
23 | calculated, charged, or collected
pursuant to such contract or | ||||||
24 | loan, or pursuant to any regulation or rule
promulgated | ||||||
25 | pursuant to this Act, may not be computed, calculated, charged
| ||||||
26 | or collected for any period of time occurring after the date on |
| |||||||
| |||||||
1 | which the
total indebtedness, with the exception of late | ||||||
2 | payment penalties, is paid
in full.
| ||||||
3 | For purposes of this Section, a prepayment shall mean the | ||||||
4 | payment of the
total indebtedness, with the exception of late | ||||||
5 | payment penalties if
incurred or charged, on any date before | ||||||
6 | the date specified in the contract
or loan agreement on which | ||||||
7 | the total indebtedness shall be paid in full, or
before the | ||||||
8 | date on which all payments, if timely made, shall have been
| ||||||
9 | made. In the event of a prepayment of the indebtedness which is | ||||||
10 | made on a
date after the date on which interest on the | ||||||
11 | indebtedness was last
computed, calculated, charged, or | ||||||
12 | collected but before the next date on
which interest on the | ||||||
13 | indebtedness was to be calculated, computed, charged,
or | ||||||
14 | collected, the lender may calculate, charge and collect | ||||||
15 | interest on the
indebtedness for the period which elapsed | ||||||
16 | between the date on which the
prepayment is made and the date | ||||||
17 | on which interest on the indebtedness was
last computed, | ||||||
18 | calculated, charged or collected at a rate equal to 1/360 of
| ||||||
19 | the annual rate for each day which so elapsed, which rate shall | ||||||
20 | be applied
to the indebtedness outstanding as of the date of | ||||||
21 | prepayment. The lender
shall refund to the borrower any | ||||||
22 | interest charged or collected which
exceeds that which the | ||||||
23 | lender may charge or collect pursuant to the
preceding | ||||||
24 | sentence. The provisions of this amendatory Act of 1985 shall
| ||||||
25 | apply only to contracts or loans entered into on or after the | ||||||
26 | effective
date of this amendatory Act, but shall not apply to |
| |||||||
| |||||||
1 | contracts or loans
entered into on or after that date that are | ||||||
2 | subject to Section 4a of this
Act, the Consumer Installment | ||||||
3 | Loan Act, the Payday Loan Reform Act, or the Retail Installment | ||||||
4 | Sales
Act, or that provide for the refund of precomputed | ||||||
5 | interest on prepayment
in the manner provided by such Act.
| ||||||
6 | For purposes of this Section, "real estate" and "real | ||||||
7 | property" include a manufactured home as defined in paragraph | ||||||
8 | (53) of Section 9-102 of the Uniform Commercial Code that is | ||||||
9 | real property as defined in Section 40 the Conveyance and | ||||||
10 | Encumbrance of Manufactured Homes Act. | ||||||
11 | (Source: P.A. 94-13, eff. 12-6-05; 94-635, eff. 8-22-05; | ||||||
12 | 95-331, eff. 8-21-07.)
| ||||||
13 | (815 ILCS 205/4.2) (from Ch. 17, par. 6407)
| ||||||
14 | Sec. 4.2. Revolving credit; billing statements; | ||||||
15 | disclosures. On a
revolving credit which complies with | ||||||
16 | subparagraphs (a), (b),
(c), (d) and (e) of this Section 4.2, | ||||||
17 | it is lawful for any bank that has its main office or, after | ||||||
18 | May 31, 1997,
a branch in this State, a state or federal | ||||||
19 | savings and
loan association with its main office in this | ||||||
20 | State, a state or federal
credit union with its main office in | ||||||
21 | this State, or a lender licensed under
the Consumer Finance | ||||||
22 | Act, the Consumer Installment Loan Act or the Sales
Finance | ||||||
23 | Agency Act, as such Acts are now and hereafter amended, to
| ||||||
24 | receive or contract to receive and collect interest
in any | ||||||
25 | amount or at any rate agreed upon by the parties to the |
| |||||||
| |||||||
1 | revolving
credit arrangement. It is lawful for any other lender | ||||||
2 | to receive or contract
to receive and collect interest in an | ||||||
3 | amount not in excess of 1 1/2% per
month of either the average | ||||||
4 | daily unpaid balance of the principal of the
debt during the | ||||||
5 | billing cycle, or of the unpaid balance of the debt on
| ||||||
6 | approximately the same day of the billing cycle. If a lender | ||||||
7 | under a revolving
credit arrangement notifies the debtor at | ||||||
8 | least 30 days in advance of any
lawful increase in the amount | ||||||
9 | or rate of interest to be charged under
the revolving credit | ||||||
10 | arrangement, and the debtor, after the effective date
of such | ||||||
11 | notice, incurs new debt pursuant to the revolving credit
| ||||||
12 | arrangement, the increased interest amount or rate may be | ||||||
13 | applied only to
any such new debt incurred under the revolving | ||||||
14 | credit arrangement.
For purposes of determining the balances to | ||||||
15 | which the increased interest
rate applies, all payments and | ||||||
16 | other credits may be deemed to be applied
to the balance | ||||||
17 | existing prior to the change in rate until that balance is
paid | ||||||
18 | in full. The face amount of the
drafts, items, orders for the | ||||||
19 | payment of money, evidences of debt, or
similar written | ||||||
20 | instruments received by the lender in connection with the
| ||||||
21 | revolving credit, less the amounts applicable to principal from | ||||||
22 | time to
time paid thereon by the debtor, are the unpaid balance | ||||||
23 | of the debt upon
which the interest is computed. If the billing | ||||||
24 | cycle is not monthly, the
maximum interest rate for the billing | ||||||
25 | cycle is the percentage which bears
the same relation to the | ||||||
26 | monthly percentage provided for in the preceding
sentence as |
| |||||||
| |||||||
1 | the number of days in the billing cycle bears to 30. For the
| ||||||
2 | purposes of the foregoing computation, a "month" is deemed to | ||||||
3 | be any time
of 30 consecutive days. In addition to the interest | ||||||
4 | charge provided for, it
is lawful to receive, contract for or | ||||||
5 | collect a charge not exceeding 25
cents for each transaction in | ||||||
6 | which a loan or advance is made under the
revolving credit or | ||||||
7 | in lieu of this additional charge an annual fee for the
| ||||||
8 | privilege of receiving and using the revolving credit in an | ||||||
9 | amount not
exceeding $20. In addition, with respect to | ||||||
10 | revolving credit secured by an
interest in real estate, | ||||||
11 | including a manufactured home as defined in paragraph (53) of | ||||||
12 | Section 9-102 of the Uniform Commercial Code that is real | ||||||
13 | property as defined in Section 40 of the Conveyance and | ||||||
14 | Encumbrance of Manufactured Homes Act, it is also lawful to | ||||||
15 | receive, contract for or
collect fees lawfully
paid to any | ||||||
16 | public officer or agency to record, file or release the | ||||||
17 | security,
and costs and disbursements actually incurred for any | ||||||
18 | title insurance,
title examination, abstract of title, survey, | ||||||
19 | appraisal, escrow fees, and fees
paid to a trustee in | ||||||
20 | connection with a trust deed.
| ||||||
21 | (a) At or before the date a bill or statement is first | ||||||
22 | rendered to the
debtor under a revolving credit arrangement, | ||||||
23 | the lender must mail or
deliver to the debtor a written | ||||||
24 | description of the conditions under which a
charge for interest | ||||||
25 | may be made and the method, including the rate, of
computing | ||||||
26 | these interest charges. The rate of interest must be expressed |
| |||||||
| |||||||
1 | as
an annual percentage rate.
| ||||||
2 | (b) If during any billing cycle any debit or credit entry | ||||||
3 | is made to a
debtor's revolving credit account, and if at the | ||||||
4 | end of that billing cycle
there is an unpaid balance owing to | ||||||
5 | the lender from the debtor, the lender
must give to the debtor | ||||||
6 | the following information within a reasonable time
after the | ||||||
7 | end of the billing cycle:
| ||||||
8 | (i) the unpaid balance at the beginning of the billing | ||||||
9 | cycle;
| ||||||
10 | (ii) the date and amount of all loans or advances made | ||||||
11 | during the
billing cycle, which information may be supplied | ||||||
12 | by enclosing a copy of the
drafts, items, orders for the | ||||||
13 | payment of money, evidences of debt or
similar written | ||||||
14 | instruments presented to the lender during the billing
| ||||||
15 | cycle;
| ||||||
16 | (iii) the payments by the debtor to the lender and any | ||||||
17 | other credits to
the debtor during the billing cycle;
| ||||||
18 | (iv) the amount of interest and other charges, if any, | ||||||
19 | charged to the
debtor's account during the billing cycle;
| ||||||
20 | (v) the amount which must be currently paid by the | ||||||
21 | debtor and the date
on which that amount must be paid in | ||||||
22 | order to avoid delinquency;
| ||||||
23 | (vi) the total amount remaining unpaid at the end of | ||||||
24 | the billing cycle
and the right of the debtor to prepay | ||||||
25 | that amount in full without penalty; and
| ||||||
26 | (vii) information required by (iv), (v) and (vi) must |
| |||||||
| |||||||
1 | be set forth in type of
equal size and equal | ||||||
2 | conspicuousness.
| ||||||
3 | (c) The revolving credit arrangement may provide for the | ||||||
4 | payment by the
debtor and receipt by the lender of all costs | ||||||
5 | and disbursements, including
reasonable attorney's fees, | ||||||
6 | incurred by the lender in legal proceedings to
collect or | ||||||
7 | enforce the debt in the event of delinquency by the debtor or | ||||||
8 | in
the event of a breach of any obligation of the debtor under | ||||||
9 | the arrangement.
| ||||||
10 | (d) The lender under a revolving credit arrangement may | ||||||
11 | provide credit
life insurance or credit accident and health | ||||||
12 | insurance, or both, with
respect to the debtor and may charge | ||||||
13 | the debtor therefor. Credit life
insurance and credit accident | ||||||
14 | and health insurance, and any charge therefor
made to the | ||||||
15 | debtor, shall comply with Article IX 1/2 of the Illinois
| ||||||
16 | Insurance Code, as now or hereafter amended, and all lawful
| ||||||
17 | requirements of the Director of Insurance
related thereto. This | ||||||
18 | insurance is in force with respect to each loan or
advance made | ||||||
19 | under a revolving credit arrangement as soon as the loan or
| ||||||
20 | advance is made. The purchase of this insurance from an agent, | ||||||
21 | broker or
insurer specified by the lender may not be a | ||||||
22 | condition precedent to the
revolving credit arrangement or to | ||||||
23 | the making of any loan or advance thereunder.
| ||||||
24 | (e) Whenever interest is contracted for or received under | ||||||
25 | this Section,
no amount in addition to the charges authorized | ||||||
26 | by this Act may be directly
or indirectly charged, contracted |
| |||||||
| |||||||
1 | for or received whether as interest,
service charges, costs of | ||||||
2 | investigations or enforcements or otherwise.
| ||||||
3 | (f) The lender under a revolving credit arrangement must
| ||||||
4 | compute at year end the total amount charged to the debtor's
| ||||||
5 | account during the year, including service charges, finance | ||||||
6 | charges,
late charges and any other charges authorized by this | ||||||
7 | Act,
and upon request must furnish such information to the | ||||||
8 | debtor within
30 days after the end of the year, or if the | ||||||
9 | account has been
terminated during such year, may give such | ||||||
10 | requested information within
30 days after such termination. | ||||||
11 | The lender shall annually inform the debtor
of his right to | ||||||
12 | obtain such information.
| ||||||
13 | (g) A lender who complies with the federal Truth in Lending | ||||||
14 | Act, amendments
thereto, and any regulations issued or which | ||||||
15 | may be issued thereunder, shall
be deemed to be in compliance | ||||||
16 | with the provisions of subparagraphs (a) and
(b) of this | ||||||
17 | Section.
| ||||||
18 | (h) Anything in this Section 4.2 to the contrary | ||||||
19 | notwithstanding, if
the Congress of the United States or any | ||||||
20 | federal agency authorizes any
class of lenders to enter, within | ||||||
21 | limitations, into a revolving credit
arrangement secured by a | ||||||
22 | mortgage or deed of trust on residential real
property, any | ||||||
23 | person, firm, corporation or other entity, not otherwise
| ||||||
24 | prohibited by the Congress of the United States or any federal | ||||||
25 | agency from
entering into revolving credit arrangements | ||||||
26 | secured by a mortgage or deed
of trust on residential real |
| |||||||
| |||||||
1 | property, may enter into such arrangements
within the same | ||||||
2 | limitations.
| ||||||
3 | (Source: P.A. 89-208, eff. 9-29-95.)
| ||||||
4 | (815 ILCS 205/4a) (from Ch. 17, par. 6410)
| ||||||
5 | Sec. 4a. Installment loan rate.
| ||||||
6 | (a) On money loaned to or in any manner owing from any | ||||||
7 | person, whether
secured or unsecured, except where the money | ||||||
8 | loaned or in any manner owing
is directly or indirectly for the | ||||||
9 | purchase price of real estate or an
interest therein and is | ||||||
10 | secured by a lien on or retention of title to that
real estate | ||||||
11 | or interest therein, to an amount not more than $25,000
| ||||||
12 | (excluding interest) which is evidenced by a written instrument | ||||||
13 | providing
for the payment thereof in 2 or more periodic | ||||||
14 | installments over a period of
not more than 181 months from the | ||||||
15 | date of the execution of the written
instrument, it is lawful | ||||||
16 | to receive or to contract to receive and collect
either:
| ||||||
17 | (i) interest in an amount equivalent to interest | ||||||
18 | computed at a rate not
exceeding 9% per year on the entire | ||||||
19 | principal amount of the money loaned or
in any manner owing | ||||||
20 | for the period from the date of the making of the loan
or | ||||||
21 | the incurring of the obligation for the amount owing | ||||||
22 | evidenced by the
written instrument until the date of the | ||||||
23 | maturity of the last installment
thereof, and to add that | ||||||
24 | amount to the principal, except that there shall
be no | ||||||
25 | limit on the rate of interest which may be received or |
| |||||||
| |||||||
1 | contracted to
be received and collected by (1) any bank | ||||||
2 | that has its main office
or, after May 31, 1997, a branch | ||||||
3 | in this State; (2) a savings and loan
association chartered | ||||||
4 | under the
Illinois Savings and Loan Act of 1985, a savings | ||||||
5 | bank chartered under the
Savings Bank Act, or a federal | ||||||
6 | savings and loan
association established under the laws of | ||||||
7 | the United States and having its
main office in this State; | ||||||
8 | or (3) any lender licensed under either the
Consumer | ||||||
9 | Finance Act or the Consumer Installment Loan Act, but in | ||||||
10 | any case in which interest is received,
contracted for or | ||||||
11 | collected on the basis of this clause (i), the debtor may
| ||||||
12 | satisfy in full at any time before maturity the debt | ||||||
13 | evidenced by the
written instrument, and in so satisfying | ||||||
14 | must receive a refund credit
against the total amount of | ||||||
15 | interest added to the principal computed in
the manner | ||||||
16 | provided under Section 15(f)(3) of the Consumer | ||||||
17 | Installment
Loan Act for refunds or credits of applicable | ||||||
18 | interest on payment in full
of precomputed loans before the | ||||||
19 | final installment due date; or
| ||||||
20 | (ii) interest accrued on the principal balance from | ||||||
21 | time to time
remaining unpaid, from the date of making of | ||||||
22 | the loan or the incurring of
the obligation to the date of | ||||||
23 | the payment of the debt in full, at a rate
not exceeding | ||||||
24 | the annual percentage rate equivalent of the rate permitted
| ||||||
25 | to be charged under clause (i) above, but in any such case | ||||||
26 | the debtor may,
provided that the debtor shall have paid in |
| |||||||
| |||||||
1 | full all interest and other
charges accrued to the date of | ||||||
2 | such prepayment, prepay the principal
balance in full or in | ||||||
3 | part at any time, and interest shall, upon any such
| ||||||
4 | prepayment, cease to accrue on the principal amount which | ||||||
5 | has been prepaid.
| ||||||
6 | (b) Whenever the principal amount of an installment loan is | ||||||
7 | $300 or
more and the repayment period is 6 months or more, a | ||||||
8 | minimum charge of
$15 may be collected instead of interest, but | ||||||
9 | only one minimum charge
may be collected from the same person | ||||||
10 | during one year. When the
principal amount of the loan | ||||||
11 | (excluding interest) is $800 or less, the
lender or creditor | ||||||
12 | may contract for and receive a service charge not to
exceed $5 | ||||||
13 | in addition to interest; and that service charge may be
| ||||||
14 | collected when the loan is made, but only one service charge | ||||||
15 | may be
contracted for, received, or collected from the same | ||||||
16 | person during one year.
| ||||||
17 | (c) Credit life insurance and credit accident and health | ||||||
18 | insurance,
and any charge therefor which is deducted from the | ||||||
19 | loan or paid by the
obligor, must comply with Article IX 1/2 of | ||||||
20 | the Illinois Insurance
Code and all lawful requirements of the | ||||||
21 | Director of Insurance related
thereto. When there are 2 or more | ||||||
22 | obligors on the loan contract, only
one charge for credit life | ||||||
23 | insurance and credit accident and health
insurance may be made | ||||||
24 | and only one of the obligors may be required to be
insured. | ||||||
25 | Insurance obtained from, by or through the lender or creditor
| ||||||
26 | must be in effect when the loan is transacted. The purchase of |
| |||||||
| |||||||
1 | that
insurance from an agent, broker or insurer specified by | ||||||
2 | the lender or
creditor may not be a condition precedent to the | ||||||
3 | granting of the loan.
| ||||||
4 | (d) The lender or creditor may require the obligor to | ||||||
5 | provide
property insurance on security other than household | ||||||
6 | goods, furniture and
personal effects. The amount and term of | ||||||
7 | the insurance must be
reasonable in relation to the amount and | ||||||
8 | term of the loan contract and
the type and value of the | ||||||
9 | security, and the insurance must be procured
in accordance with | ||||||
10 | the insurance laws of this State. The purchase of
that | ||||||
11 | insurance from an agent, broker or insurer specified by the | ||||||
12 | lender
or creditor may not be a condition precedent to the | ||||||
13 | granting of the loan.
| ||||||
14 | (e) The lender or creditor may, if the contract provides, | ||||||
15 | collect a
delinquency and collection charge on each installment | ||||||
16 | in default for a
period of not less than 10 days in an amount | ||||||
17 | not exceeding 5% of the
installment on installments in excess | ||||||
18 | of $200 or $10 on
installments of
$200 or less, but only one | ||||||
19 | delinquency and collection charge may
be
collected on any | ||||||
20 | installment regardless of the period during which it
remains in | ||||||
21 | default. In addition, the contract may provide for the payment
| ||||||
22 | by the borrower or debtor of attorney's fees incurred by the | ||||||
23 | lender or
creditor. The lender or creditor may enforce such a | ||||||
24 | provision to the extent
of the reasonable attorney's fees | ||||||
25 | incurred by him in the collection or
enforcement of the | ||||||
26 | contract or obligation. Whenever interest is contracted
for or |
| |||||||
| |||||||
1 | received under this Section, no amount in addition to the | ||||||
2 | charges
authorized by this Section may be directly or | ||||||
3 | indirectly charged,
contracted for or received, except lawful | ||||||
4 | fees paid to a public officer or
agency to record, file or | ||||||
5 | release security, and except costs and
disbursements including | ||||||
6 | reasonable attorney's fees, incurred in legal
proceedings to | ||||||
7 | collect a loan or to realize on a security after default.
This | ||||||
8 | Section does not prohibit the receipt of any commission, | ||||||
9 | dividend or
other benefit by the creditor or an employee, | ||||||
10 | affiliate or associate of the
creditor from the insurance | ||||||
11 | authorized by this Section.
| ||||||
12 | (f) When interest is contracted for or received under this | ||||||
13 | Section,
the lender must disclose the following items to the | ||||||
14 | obligor in a written
statement before the loan is consummated:
| ||||||
15 | (1) the amount and date of the loan contract;
| ||||||
16 | (2) the amount of loan credit using the term "amount | ||||||
17 | financed";
| ||||||
18 | (3) every deduction from the amount financed or payment | ||||||
19 | made by the
obligor for insurance and the type of insurance | ||||||
20 | for which each deduction
or payment was made;
| ||||||
21 | (4) every other deduction from the loan or payment made | ||||||
22 | by the
obligor in connection with obtaining the loan;
| ||||||
23 | (5) the date on which the finance charge begins to | ||||||
24 | accrue if
different from the date of the transaction;
| ||||||
25 | (6) the total amount of the loan charge for the | ||||||
26 | scheduled term of
the loan contract with a description of |
| |||||||
| |||||||
1 | each amount included using the
term "finance charge";
| ||||||
2 | (7) the finance charge expressed as an annual | ||||||
3 | percentage rate using
the term "annual percentage rate". | ||||||
4 | "Annual percentage rate" means the
nominal annual | ||||||
5 | percentage rate of finance charge determined in accordance
| ||||||
6 | with the actuarial method of computation with an accuracy | ||||||
7 | at least to the
nearest 1/4 of 1%; or at the option of the | ||||||
8 | lender by application of the
United States rule so that it | ||||||
9 | may be disclosed with an accuracy at least to
the nearest | ||||||
10 | 1/4 of 1%;
| ||||||
11 | (8) the number, amount and due dates or periods of | ||||||
12 | payments
scheduled to repay the loan and the sum of such | ||||||
13 | payments using the term
"total of payments";
| ||||||
14 | (9) the amount, or method of computing the amount of | ||||||
15 | any default,
delinquency or similar charges payable in the | ||||||
16 | event of late payments;
| ||||||
17 | (10) the right of the obligor to prepay the loan and | ||||||
18 | the fact that
such prepayment will reduce the charge for | ||||||
19 | the loan;
| ||||||
20 | (11) a description or identification of the type of any | ||||||
21 | security
interest held or to be retained or acquired by the | ||||||
22 | lender in connection
with the loan and a clear | ||||||
23 | identification of the property to which the
security | ||||||
24 | interest relates. If after-acquired property will be | ||||||
25 | subject to
the security interest, or if other or future | ||||||
26 | indebtedness is or may be
secured by any such property, |
| |||||||
| |||||||
1 | this fact shall be clearly set forth in
conjunction with | ||||||
2 | the description or identification of the type of
security | ||||||
3 | interest held, retained or acquired;
| ||||||
4 | (12) a description of any penalty charge that may be | ||||||
5 | imposed by the
lender for prepayment of the principal of | ||||||
6 | the obligation with an
explanation of the method of | ||||||
7 | computation of such penalty and the
conditions under which | ||||||
8 | it may be imposed;
| ||||||
9 | (13) unless the contract provides for the accrual and | ||||||
10 | payment of the
finance charge on the balance of the amount | ||||||
11 | financed from time to time
remaining unpaid, an | ||||||
12 | identification of the method of computing any
unearned | ||||||
13 | portion of the finance charge in the event of prepayment of | ||||||
14 | the
loan.
| ||||||
15 | The terms "finance charge" and "annual percentage rate" | ||||||
16 | shall be
printed more conspicuously than other terminology | ||||||
17 | required by this Section.
| ||||||
18 | (g) At the time disclosures are made, the lender shall | ||||||
19 | deliver to
the obligor a duplicate of the instrument or | ||||||
20 | statement by which the
required disclosures are made and on | ||||||
21 | which the lender and obligor are
identified and their addresses | ||||||
22 | stated. All of the disclosures shall be
made clearly, | ||||||
23 | conspicuously and in meaningful sequence and made together
on | ||||||
24 | either:
| ||||||
25 | (i) the note or other instrument evidencing the | ||||||
26 | obligation on the
same side of the page and above or |
| |||||||
| |||||||
1 | adjacent to the place for the
obligor's signature; however, | ||||||
2 | where a creditor elects to combine
disclosures with the | ||||||
3 | contract, security agreement, and evidence of a
| ||||||
4 | transaction in a single document, the disclosures required | ||||||
5 | under this
Section shall be made on the face of the | ||||||
6 | document, on the reverse side,
or on both sides, provided | ||||||
7 | that the amount of the finance charge and the
annual | ||||||
8 | percentage rate shall appear on the face of the document, | ||||||
9 | and, if
the reverse side is used, the printing on both | ||||||
10 | sides of the document
shall be equally clear and | ||||||
11 | conspicuous, both sides shall contain the
statement, | ||||||
12 | "NOTICE: See other side for important information", and the
| ||||||
13 | place for the customer's signature shall be provided | ||||||
14 | following the full
content of the document; or
| ||||||
15 | (ii) one side of a separate statement which identifies | ||||||
16 | the
transaction.
| ||||||
17 | The amount of the finance charge shall be determined as the | ||||||
18 | sum of
all charges, payable directly or indirectly by the | ||||||
19 | obligor and imposed
directly or indirectly by the lender as an | ||||||
20 | incident to or as a condition
to the extension of credit, | ||||||
21 | whether paid or payable by the obligor, any
other person on | ||||||
22 | behalf of the obligor, to the lender or to a third
party, | ||||||
23 | including any of the following types of charges:
| ||||||
24 | (1) Interest, time price differential, and any amount | ||||||
25 | payable under
a discount or other system of additional | ||||||
26 | charges.
|
| |||||||
| |||||||
1 | (2) Service, transaction, activity, or carrying | ||||||
2 | charge.
| ||||||
3 | (3) Loan fee, points, finder's fee, or similar charge.
| ||||||
4 | (4) Fee for an appraisal, investigation, or credit | ||||||
5 | report.
| ||||||
6 | (5) Charges or premiums for credit life, accident, | ||||||
7 | health, or loss
of income insurance, written in connection | ||||||
8 | with any credit transaction
unless (a) the insurance | ||||||
9 | coverage is not required by the lender and this
fact is | ||||||
10 | clearly and conspicuously disclosed in writing to the | ||||||
11 | obligor;
and (b) any obligor desiring such insurance | ||||||
12 | coverage gives specific dated
and separately signed | ||||||
13 | affirmative written indication of such desire after
| ||||||
14 | receiving written disclosure to him of the cost of such | ||||||
15 | insurance.
| ||||||
16 | (6) Charges or premiums for insurance, written in | ||||||
17 | connection with
any credit transaction, against loss of or | ||||||
18 | damage to property or against
liability arising out of the | ||||||
19 | ownership or use of property, unless a
clear, conspicuous, | ||||||
20 | and specific statement in writing is furnished by
the | ||||||
21 | lender to the obligor setting forth the cost of the | ||||||
22 | insurance if
obtained from or through the lender and | ||||||
23 | stating that the obligor may
choose the person through | ||||||
24 | which the insurance is to be obtained.
| ||||||
25 | (7) Premium or other charges for any other guarantee or | ||||||
26 | insurance
protecting the lender against the obligor's |
| |||||||
| |||||||
1 | default or other credit loss.
| ||||||
2 | (8) Any charge imposed by a lender upon another lender | ||||||
3 | for
purchasing or accepting an obligation of an obligor if | ||||||
4 | the obligor is
required to pay any part of that charge in | ||||||
5 | cash, as an addition to the
obligation, or as a deduction | ||||||
6 | from the proceeds of the obligation.
| ||||||
7 | A late payment, delinquency, default, reinstatement or | ||||||
8 | other such
charge is not a finance charge if imposed for actual | ||||||
9 | unanticipated late
payment, delinquency, default or other | ||||||
10 | occurrence.
| ||||||
11 | (h) Advertising for loans transacted under this Section may | ||||||
12 | not be
false, misleading, or deceptive. That advertising, if it | ||||||
13 | states a rate
or amount of interest, must state that rate as an | ||||||
14 | annual percentage rate
of interest charged. In addition, if | ||||||
15 | charges other than for interest are
made in connection with | ||||||
16 | those loans, those charges must be separately
stated. No | ||||||
17 | advertising may indicate or imply that the rates or charges
for | ||||||
18 | loans are in any way "recommended", "approved", "set" or
| ||||||
19 | "established" by the State government or by this Act.
| ||||||
20 | (i) A lender or creditor who complies with the federal | ||||||
21 | Truth in Lending
Act, amendments thereto, and any regulations | ||||||
22 | issued or which may be issued
thereunder, shall be deemed to be | ||||||
23 | in compliance with the provisions of
subsections (f), (g) and | ||||||
24 | (h) of this Section.
| ||||||
25 | (j) For purposes of this Section "real estate" includes a | ||||||
26 | manufactured home as defined in paragraph (53) of Section 9-102 |
| |||||||
| |||||||
1 | of the Uniform Commercial Code that is real property as defined | ||||||
2 | in Section 40 of the Conveyance and Encumbrance of Manufactured | ||||||
3 | Homes Act. | ||||||
4 | (Source: P.A. 92-483, eff. 8-23-01.)
| ||||||
5 | Section 135. The Motor Vehicle Retail Installment Sales Act | ||||||
6 | is amended by changing Section 2.1 as follows:
| ||||||
7 | (815 ILCS 375/2.1) (from Ch. 121 1/2, par. 562.1)
| ||||||
8 | Sec. 2.1. | ||||||
9 | "Motor vehicle" means a motor vehicle as defined in The | ||||||
10 | Illinois Vehicle
Code but does not include bicycles, | ||||||
11 | motorcycles, motor scooters,
snowmobiles, trailers , and farm | ||||||
12 | equipment , and a manufactured home as defined in paragraph (53) | ||||||
13 | of Section 9-102 of the Uniform Commercial Code .
| ||||||
14 | (Source: P.A. 77-1167.)
| ||||||
15 | Section 140. The Retail Installment Sales Act is amended by | ||||||
16 | changing Section 2.1 as follows:
| ||||||
17 | (815 ILCS 405/2.1) (from Ch. 121 1/2, par. 502.1)
| ||||||
18 | Sec. 2.1.
"Goods" means all goods used or purchased | ||||||
19 | primarily for personal,
family, or household purposes. "Goods" | ||||||
20 | includes goods purchased primarily
for agricultural purposes | ||||||
21 | only for the purposes of the credit disclosure
requirements of | ||||||
22 | this Act. "Goods" includes merchandise certificates or
coupons |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | issued by a retail seller to be used in their face amount in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | the
purchase of goods or services sold by such a seller but | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | does not include
money or other things in action. It also | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | includes goods which are furnished
or used, at the time of sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | or subsequently, in the modernization,
rehabilitation, repair, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | alteration, improvement, or construction of real
estate so as | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | to become a part of that real estate whether or not severable
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | therefrom. "Goods" includes a manufactured home as defined in | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | paragraph (53) of Section 9-102 of the Uniform Commercial Code | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | that is not real property as defined in Section 40 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | Conveyance and Encumberance of Manufactured Homes Act. "Goods" | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | does not include a motor vehicle as defined in The
Illinois | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Vehicle Code, but does include bicycles, motorcycles, motor
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | scooters, snowmobiles and trailers when purchased primarily | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | for personal,
family or household purposes. "Goods" does not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | include goods used or
purchased primarily for business or | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | commercial purposes.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | (Source: P.A. 77-1166.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | Section 999. Effective date. This Act takes effect July 1, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | 2010.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||