97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1155

 

Introduced 02/08/11, by Rep. Thomas Holbrook

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/3-104  from Ch. 95 1/2, par. 3-104
625 ILCS 5/3-114  from Ch. 95 1/2, par. 3-114
625 ILCS 5/3-117.1  from Ch. 95 1/2, par. 3-117.1
625 ILCS 5/4-202  from Ch. 95 1/2, par. 4-202
770 ILCS 50/4.5 new

    Amends the Illinois Vehicle Code. Adds provision for a vehicle title application for an abandoned vehicle acquired under the Labor and Storage Lien (Small Amount) Act by filing with the Secretary of State a copy of the notice and affidavit of abandonment sent to the owner. Adds, in the provisions for the transfer of title by operation of law, a provision that allows for the transfer of title for an abandoned vehicle. Amends the Labor and Storage Lien (Small Amount) Act. Provides that if an automotive collision and body repair facility or an automotive repair facility has a lien for storage or repairs against a vehicle that has been in its possession for 30 days or more and the vehicle is an abandoned junk vehicle or a hazardous dilapidated motor vehicle the facility may sell the vehicle after mailing, with return receipt requested, a Notice and Affidavit of Abandonment to the reported owner, any assignee, other lienor, or other person with a duly recorded security interest in the vehicle. Provides that the notice shall state the amount of the storage lien and state that if the vehicle is not redeemed by payment of the lien amount within 14 days after the notice is sent the vehicle will be sold to a licensed scrap processor to satisfy this and any other liens. Upon the sale of the vehicle to a scrap processor and after satisfying the lien under the Act, any excess proceeds shall be paid to any others with an interest in the vehicle with the balance to be held by the lienor for 6 months. If the owner fails to claim the proceeds within 6 months, the lienor shall deposit the excess proceeds with the county treasurer for the county in which the vehicle was stored for deposit in the county's general revenue fund, subject to the right of the owner to claim the excess proceeds within 3 years after the date of the deposit with the treasurer.


LRB097 05096 AJO 45139 b

 

 

A BILL FOR

 

HB1155LRB097 05096 AJO 45139 b

1    AN ACT concerning abandoned vehicles.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by changing
5Sections 3-104, 3-114, 3-117.1, and 4-202 as follows:
 
6    (625 ILCS 5/3-104)  (from Ch. 95 1/2, par. 3-104)
7    Sec. 3-104. Application for certificate of title.
8    (a) The application for a certificate of title for a
9vehicle in this State must be made by the owner to the
10Secretary of State on the form prescribed and must contain:
11        1. The name, Illinois residence and mail address of the
12    owner;
13        2. A description of the vehicle including, so far as
14    the following data exists: Its make, year-model,
15    identifying number, type of body, whether new or used, as
16    to house trailers as defined in Section 1-128 of this Code,
17    the square footage of the house trailer based upon the
18    outside dimensions of the house trailer excluding the
19    length of the tongue and hitch, and, as to vehicles of the
20    second division, whether for-hire, not-for-hire, or both
21    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

 

 

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1    the vehicle was acquired and the names and addresses of any
2    lienholders in the order of their priority and signatures
3    of owners;
4        4. The current odometer reading at the time of transfer
5    and that the stated odometer reading is one of the
6    following: actual mileage, not the actual mileage or
7    mileage is in excess of its mechanical limits; and
8        5. Any further information the Secretary of State
9    reasonably requires to identify the vehicle and to enable
10    him to determine whether the owner is entitled to a
11    certificate of title and the existence or nonexistence of
12    security interests in the vehicle.
13    (a-5) The Secretary of State shall designate on the
14prescribed application form a space where the owner of a
15vehicle may designate a beneficiary, to whom ownership of the
16vehicle shall pass in the event of the owner's death.
17    (b) If the application refers to a vehicle purchased from a
18dealer, it must also be signed by the dealer as well as the
19owner, and the dealer must promptly mail or deliver the
20application and required documents to the Secretary of State.
21    (c) If the application refers to a vehicle last previously
22registered in another State or country, the application must
23contain or be accompanied by:
24        1. Any certified document of ownership so recognized
25    and issued by the other State or country and acceptable to
26    the Secretary of State, and

 

 

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1        2. Any other information and documents the Secretary of
2    State reasonably requires to establish the ownership of the
3    vehicle and the existence or nonexistence of security
4    interests in it.
5    (d) If the application refers to a new vehicle it must be
6accompanied by the Manufacturer's Statement of Origin, or other
7documents as required and acceptable by the Secretary of State,
8with such assignments as may be necessary to show title in the
9applicant.
10    (e) If an application refers to a vehicle rebuilt from a
11vehicle previously salvaged, that application shall comply
12with the provisions set forth in Sections 3-302 through 3-304
13of this Code.
14    (f) An application for a certificate of title for any
15vehicle, whether purchased in Illinois or outside Illinois, and
16even if previously registered in another State, must be
17accompanied by either an exemption determination from the
18Department of Revenue showing that no tax imposed pursuant to
19the Use Tax Act or the vehicle use tax imposed by Section
203-1001 of the Illinois Vehicle Code is owed by anyone with
21respect to that vehicle, or a receipt from the Department of
22Revenue showing that any tax so imposed has been paid. An
23application for a certificate of title for any vehicle
24purchased outside Illinois, even if previously registered in
25another state, must be accompanied by either an exemption
26determination from the Department of Revenue showing that no

 

 

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1tax imposed pursuant to the Municipal Use Tax Act or the County
2Use Tax Act is owed by anyone with respect to that vehicle, or
3a receipt from the Department of Revenue showing that any tax
4so imposed has been paid. In the absence of such a receipt for
5payment or determination of exemption from the Department, no
6certificate of title shall be issued to the applicant.
7    If the proof of payment of the tax or of nonliability
8therefor is, after the issuance of the certificate of title and
9display certificate of title, found to be invalid, the
10Secretary of State shall revoke the certificate and require
11that the certificate of title and, when applicable, the display
12certificate of title be returned to him.
13    (g) If the application refers to a vehicle not manufactured
14in accordance with federal safety and emission standards, the
15application must be accompanied by all documents required by
16federal governmental agencies to meet their standards before a
17vehicle is allowed to be issued title and registration.
18    (h) If the application refers to a vehicle sold at public
19sale by a sheriff, it must be accompanied by the required fee
20and a bill of sale issued and signed by a sheriff. The bill of
21sale must identify the new owner's name and address, the year
22model, make and vehicle identification number of the vehicle,
23court order document number authorizing such sale, if
24applicable, and the name and address of any lienholders in
25order of priority, if applicable.
26    (i) If the application refers to a vehicle for which a

 

 

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1court of law determined the ownership, it must be accompanied
2with a certified copy of such court order and the required fee.
3The court order must indicate the new owner's name and address,
4the complete description of the vehicle, if known, the name and
5address of the lienholder, if any, and must be signed and dated
6by the judge issuing such order.
7    (j) If the application refers to a vehicle sold at public
8auction pursuant to the Labor and Storage Lien (Small Amount)
9Act, it must be accompanied by an affidavit or affirmation
10furnished by the Secretary of State along with the documents
11described in the affidavit or affirmation and the required fee.
12    (k) The Secretary may provide an expedited process for the
13issuance of vehicle titles. Expedited title applications must
14be delivered to the Secretary of State's Vehicle Services
15Department in Springfield by express mail service or hand
16delivery. Applications must be complete, including necessary
17forms, fees, and taxes. Applications received before noon on a
18business day will be processed and shipped that same day.
19Applications received after noon on a business day will be
20processed and shipped the next business day. The Secretary
21shall charge an additional fee of $30 for this service, and
22that fee shall cover the cost of return shipping via an express
23mail service. All fees collected by the Secretary of State for
24expedited services shall be deposited into the Motor Vehicle
25License Plate Fund. In the event the Vehicle Services
26Department determines that the volume of expedited title

 

 

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1requests received on a given day exceeds the ability of the
2Vehicle Services Department to process those requests in an
3expedited manner, the Vehicle Services Department may decline
4to provide expedited services, and the additional fee for the
5expedited service shall be refunded to the applicant.
6    (l) If the application refers to a homemade trailer, (i) it
7must be accompanied by the appropriate documentation regarding
8the source of materials used in the construction of the
9trailer, as required by the Secretary of State, (ii) the
10trailer must be inspected by a Secretary of State investigator,
11as described in Section 2-115 of this Code, prior to the
12issuance of the title, and (iii) upon approval of the Secretary
13of State, the trailer must have a vehicle identification
14number, as provided by the Secretary of State, stamped or
15riveted to the frame.
16    (m) If the application refers to an abandoned vehicle
17acquired pursuant to Section 4.5 of the Labor and Storage Lien
18(Small Amount) Act, it must be accompanied by a copy of the
19Notice and Affidavit of Abandonment that certifies that the
20applicant has complied with the requirements of the Labor and
21Storage Lien (Small Amount) Act and other documents required by
22and acceptable to the Secretary of State.
23(Source: P.A. 95-784, eff. 1-1-09; 96-519, eff. 1-1-10; 96-554,
24eff. 1-1-10; 96-1000, eff. 7-2-10.)
 
25    (625 ILCS 5/3-114)  (from Ch. 95 1/2, par. 3-114)

 

 

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1    Sec. 3-114. Transfer by operation of law.
2    (a) If the interest of an owner in a vehicle passes to
3another other than by voluntary transfer, the transferee shall,
4except as provided in paragraph (b), promptly mail or deliver
5within 20 days to the Secretary of State the last certificate
6of title, if available, proof of the transfer, and his
7application for a new certificate in the form the Secretary of
8State prescribes. It shall be unlawful for any person having
9possession of a certificate of title for a motor vehicle,
10semi-trailer, or house car by reason of his having a lien or
11encumbrance on such vehicle, to fail or refuse to deliver such
12certificate to the owner, upon the satisfaction or discharge of
13the lien or encumbrance, indicated upon such certificate of
14title.
15    (b) If the interest of an owner in a vehicle passes to
16another under the provisions of the Small Estates provisions of
17the Probate Act of 1975 the transferee shall promptly mail or
18deliver to the Secretary of State, within 120 days, the last
19certificate of title, if available, the documentation required
20under the provisions of the Probate Act of 1975, and an
21application for certificate of title. The Small Estate
22Affidavit form shall be furnished by the Secretary of State.
23The transfer may be to the transferee or to the nominee of the
24transferee.
25    (c) If the interest of an owner in a vehicle passes to
26another under other provisions of the Probate Act of 1975, as

 

 

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1amended, and the transfer is made by a representative or
2guardian, such transferee shall promptly mail or deliver to the
3Secretary of State, the last certificate of title, if
4available, and a certified copy of the letters of office or
5guardianship, and an application for certificate of title. Such
6application shall be made before the estate is closed. The
7transfer may be to the transferee or to the nominee of the
8transferee.
9    (d) If the interest of an owner in joint tenancy passes to
10the other joint tenant with survivorship rights as provided by
11law, the transferee shall promptly mail or deliver to the
12Secretary of State, the last certificate of title, if
13available, proof of death of the one joint tenant and
14survivorship of the surviving joint tenant, and an application
15for certificate of title. Such application shall be made within
16120 days after the death of the joint tenant. The transfer may
17be to the transferee or to the nominee of the transferee.
18    (e) The Secretary of State shall transfer a decedent's
19vehicle title to any legatee, representative or heir of the
20decedent who submits to the Secretary a death certificate and
21an affidavit by an attorney at law on the letterhead stationery
22of the attorney at law stating the facts of the transfer.
23    (f) Repossession with assignment of title. In all cases
24wherein a lienholder has repossessed a vehicle by other than
25judicial process and holds it for resale under a security
26agreement, and the owner of record has executed an assignment

 

 

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1of the existing certificate of title after default, the
2lienholder may proceed to sell or otherwise dispose of the
3vehicle as authorized under the Uniform Commercial Code. Upon
4selling the vehicle to another person, the lienholder need not
5send the certificate of title to the Secretary of State, but
6shall promptly and within 20 days mail or deliver to the
7purchaser as transferee the existing certificate of title for
8the repossessed vehicle, reflecting the release of the
9lienholder's security interest in the vehicle. The application
10for a certificate of title made by the purchaser shall comply
11with subsection (a) of Section 3-104 and be accompanied by the
12existing certificate of title for the repossessed vehicle. The
13lienholder shall execute the assignment and warranty of title
14showing the name and address of the purchaser in the spaces
15provided therefor on the certificate of title or as the
16Secretary of State prescribes. The lienholder shall complete
17the assignment of title in the certificate of title to reflect
18the transfer of the vehicle to the lienholder and also a
19reassignment to reflect the transfer from the lienholder to the
20purchaser. For this purpose, the lienholder is specifically
21authorized to complete and execute the space reserved in the
22certificate of title for a dealer reassignment,
23notwithstanding that the lienholder is not a licensed dealer.
24Nothing herein shall be construed to mean that the lienholder
25is taking title to the repossessed vehicle for purposes of
26liability for retailer occupation, vehicle use, or other tax

 

 

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1with respect to the proceeds from the repossession sale.
2Delivery of the existing certificate of title to the purchaser
3shall be deemed disclosure to the purchaser of the owner of the
4vehicle.
5    (f-5) Repossession without assignment of title. Subject to
6subsection (f-30), in all cases wherein a lienholder has
7repossessed a vehicle by other than judicial process and holds
8it for resale under a security agreement, and the owner of
9record has not executed an assignment of the existing
10certificate of title, the lienholder shall comply with the
11following provisions:
12        (1) Prior to sale, the lienholder shall deliver or mail
13    to the owner at the owner's last known address and to any
14    other lienholder of record, a notice of redemption setting
15    forth the following information: (i) the name of the owner
16    of record and in bold type at or near the top of the notice
17    a statement that the owner's vehicle was repossessed on a
18    specified date for failure to make payments on the loan (or
19    other reason), (ii) a description of the vehicle subject to
20    the lien sufficient to identify it, (iii) the right of the
21    owner to redeem the vehicle, (iv) the lienholder's intent
22    to sell or otherwise dispose of the vehicle after the
23    expiration of 21 days from the date of mailing or delivery
24    of the notice, and (v) the name, address, and telephone
25    number of the lienholder from whom information may be
26    obtained concerning the amount due to redeem the vehicle

 

 

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1    and from whom the vehicle may be redeemed under Section
2    9-623 of the Uniform Commercial Code. At the lienholder's
3    option, the information required to be set forth in this
4    notice of redemption may be made a part of or accompany the
5    notification of sale or other disposition required under
6    Section 9-611 of the Uniform Commercial Code, but none of
7    the information required by this notice shall be construed
8    to impose any requirement under Article 9 of the Uniform
9    Commercial Code.
10        (2) With respect to the repossession of a vehicle used
11    primarily for personal, family, or household purposes, the
12    lienholder shall also deliver or mail to the owner at the
13    owner's last known address an affidavit of defense. The
14    affidavit of defense shall accompany the notice of
15    redemption required in subdivision (f-5)(1) of this
16    Section. The affidavit of defense shall (i) identify the
17    lienholder, owner, and the vehicle; (ii) provide space for
18    the owner to state the defense claimed by the owner; and
19    (iii) include an acknowledgment by the owner that the owner
20    may be liable to the lienholder for fees, charges, and
21    costs incurred by the lienholder in establishing the
22    insufficiency or invalidity of the owner's defense. To stop
23    the transfer of title, the affidavit of defense must be
24    received by the lienholder no later than 21 days after the
25    date of mailing or delivery of the notice required in
26    subdivision (f-5)(1) of this Section. If the lienholder

 

 

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1    receives the affidavit from the owner in a timely manner,
2    the lienholder must apply to a court of competent
3    jurisdiction to determine if the lienholder is entitled to
4    possession of the vehicle.
5        (3) Upon selling the vehicle to another person, the
6    lienholder need not send the certificate of title to the
7    Secretary of State, but shall promptly and within 20 days
8    mail or deliver to the purchaser as transferee (i) the
9    existing certificate of title for the repossessed vehicle,
10    reflecting the release of the lienholder's security
11    interest in the vehicle; and (ii) an affidavit of
12    repossession made by or on behalf of the lienholder which
13    provides the following information: that the vehicle was
14    repossessed, a description of the vehicle sufficient to
15    identify it, whether the vehicle has been damaged in excess
16    of 33 1/3% of its fair market value as required under
17    subdivision (b)(3) of Section 3-117.1, that the owner and
18    any other lienholder of record were given the notice
19    required in subdivision (f-5)(1) of this Section, that the
20    owner of record was given the affidavit of defense required
21    in subdivision (f-5)(2) of this Section, that the interest
22    of the owner was lawfully terminated or sold pursuant to
23    the terms of the security agreement, and the purchaser's
24    name and address. If the vehicle is damaged in excess of 33
25    1/3% of its fair market value, the lienholder shall make
26    application for a salvage certificate under Section

 

 

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1    3-117.1 and transfer the vehicle to a person eligible to
2    receive assignments of salvage certificates identified in
3    Section 3-118.
4        (4) The application for a certificate of title made by
5    the purchaser shall comply with subsection (a) of Section
6    3-104 and be accompanied by the affidavit of repossession
7    furnished by the lienholder and the existing certificate of
8    title for the repossessed vehicle. The lienholder shall
9    execute the assignment and warranty of title showing the
10    name and address of the purchaser in the spaces provided
11    therefor on the certificate of title or as the Secretary of
12    State prescribes. The lienholder shall complete the
13    assignment of title in the certificate of title to reflect
14    the transfer of the vehicle to the lienholder and also a
15    reassignment to reflect the transfer from the lienholder to
16    the purchaser. For this purpose, the lienholder is
17    specifically authorized to execute the assignment on
18    behalf of the owner as seller if the owner has not done so
19    and to complete and execute the space reserved in the
20    certificate of title for a dealer reassignment,
21    notwithstanding that the lienholder is not a licensed
22    dealer. Nothing herein shall be construed to mean that the
23    lienholder is taking title to the repossessed vehicle for
24    purposes of liability for retailer occupation, vehicle
25    use, or other tax with respect to the proceeds from the
26    repossession sale. Delivery of the existing certificate of

 

 

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1    title to the purchaser shall be deemed disclosure to the
2    purchaser of the owner of the vehicle. In the event the
3    lienholder does not hold the certificate of title for the
4    repossessed vehicle, the lienholder shall make application
5    for and may obtain a new certificate of title in the name
6    of the lienholder upon furnishing information satisfactory
7    to the Secretary of State. Upon receiving the new
8    certificate of title, the lienholder may proceed with the
9    sale described in subdivision (f-5)(3), except that upon
10    selling the vehicle the lienholder shall promptly and
11    within 20 days mail or deliver to the purchaser the new
12    certificate of title reflecting the assignment and
13    transfer of title to the purchaser.
14        (5) Neither the lienholder nor the owner shall file
15    with the Office of the Secretary of State the notice of
16    redemption or affidavit of defense described in
17    subdivisions (f-5)(1) and (f-5)(2) of this Section. The
18    Office of the Secretary of State shall not determine the
19    merits of an owner's affidavit of defense, nor consider any
20    allegations or assertions regarding the validity or
21    invalidity of a lienholder's claim to the vehicle or an
22    owner's asserted defenses to the repossession action.
23    (f-7) Notice of reinstatement in certain cases.
24        (1) Subject to subsection (f-30), if, at the time of
25    repossession by a lienholder that is seeking to transfer
26    title pursuant to subsection (f-5), the owner has paid an

 

 

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1    amount equal to 30% or more of the deferred payment price
2    or total of payments due, the owner may, within 21 days of
3    the date of repossession, reinstate the contract or loan
4    agreement and recover the vehicle from the lienholder by
5    tendering in a lump sum (i) the total of all unpaid
6    amounts, including any unpaid delinquency or deferral
7    charges due at the date of reinstatement, without
8    acceleration; and (ii) performance necessary to cure any
9    default other than nonpayment of the amounts due; and (iii)
10    all reasonable costs and fees incurred by the lienholder in
11    retaking, holding, and preparing the vehicle for
12    disposition and in arranging for the sale of the vehicle.
13    Reasonable costs and fees incurred by the lienholder
14    include without limitation repossession and storage
15    expenses and, if authorized by the contract or loan
16    agreement, reasonable attorneys' fees and collection
17    agency charges.
18        (2) Tender of payment and performance pursuant to this
19    limited right of reinstatement restores to the owner his
20    rights under the contract or loan agreement as though no
21    default had occurred. The owner has the right to reinstate
22    the contract or loan agreement and recover the vehicle from
23    the lienholder only once under this subsection. The
24    lienholder may, in the lienholder's sole discretion,
25    extend the period during which the owner may reinstate the
26    contract or loan agreement and recover the vehicle beyond

 

 

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1    the 21 days allowed under this subsection, and the
2    extension shall not subject the lienholder to liability to
3    the owner under the laws of this State.
4        (3) The lienholder shall deliver or mail written notice
5    to the owner at the owner's last known address, within 3
6    business days of the date of repossession, of the owner's
7    right to reinstate the contract or loan agreement and
8    recover the vehicle pursuant to the limited right of
9    reinstatement described in this subsection. At the
10    lienholder's option, the information required to be set
11    forth in this notice of reinstatement may be made part of
12    or accompany the notice of redemption required in
13    subdivision (f-5)(1) of this Section and the notification
14    of sale or other disposition required under Section 9-611
15    of the Uniform Commercial Code, but none of the information
16    required by this notice of reinstatement shall be construed
17    to impose any requirement under Article 9 of the Uniform
18    Commercial Code.
19        (4) The reinstatement period, if applicable, and the
20    redemption period described in subdivision (f-5)(1) of
21    this Section, shall run concurrently if the information
22    required to be set forth in the notice of reinstatement is
23    part of or accompanies the notice of redemption. In any
24    event, the 21 day redemption period described in
25    subdivision (f-5)(1) of this Section shall commence on the
26    date of mailing or delivery to the owner of the information

 

 

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1    required to be set forth in the notice of redemption, and
2    the 21 day reinstatement period described in this
3    subdivision, if applicable, shall commence on the date of
4    mailing or delivery to the owner of the information
5    required to be set forth in the notice of reinstatement.
6        (5) The Office of the Secretary of State shall not
7    determine the merits of an owner's claim of right to
8    reinstatement, nor consider any allegations or assertions
9    regarding the validity or invalidity of a lienholder's
10    claim to the vehicle or an owner's asserted right to
11    reinstatement. Where a lienholder is subject to licensing
12    and regulatory supervision by the State of Illinois, the
13    lienholder shall be subject to all of the powers and
14    authority of the lienholder's primary State regulator to
15    enforce compliance with the procedures set forth in this
16    subsection (f-7).
17    (f-10) Repossession by judicial process. In all cases
18wherein a lienholder has repossessed a vehicle by judicial
19process and holds it for resale under a security agreement,
20order for replevin, or other court order establishing the
21lienholder's right to possession of the vehicle, the lienholder
22may proceed to sell or otherwise dispose of the vehicle as
23authorized under the Uniform Commercial Code or the court
24order. Upon selling the vehicle to another person, the
25lienholder need not send the certificate of title to the
26Secretary of State, but shall promptly and within 20 days mail

 

 

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1or deliver to the purchaser as transferee (i) the existing
2certificate of title for the repossessed vehicle reflecting the
3release of the lienholder's security interest in the vehicle;
4(ii) a certified copy of the court order; and (iii) a bill of
5sale identifying the new owner's name and address and the year,
6make, model, and vehicle identification number of the vehicle.
7The application for a certificate of title made by the
8purchaser shall comply with subsection (a) of Section 3-104 and
9be accompanied by the certified copy of the court order
10furnished by the lienholder and the existing certificate of
11title for the repossessed vehicle. The lienholder shall execute
12the assignment and warranty of title showing the name and
13address of the purchaser in the spaces provided therefor on the
14certificate of title or as the Secretary of State prescribes.
15The lienholder shall complete the assignment of title in the
16certificate of title to reflect the transfer of the vehicle to
17the lienholder and also a reassignment to reflect the transfer
18from the lienholder to the purchaser. For this purpose, the
19lienholder is specifically authorized to execute the
20assignment on behalf of the owner as seller if the owner has
21not done so and to complete and execute the space reserved in
22the certificate of title for a dealer reassignment,
23notwithstanding that the lienholder is not a licensed dealer.
24Nothing herein shall be construed to mean that the lienholder
25is taking title to the repossessed vehicle for purposes of
26liability for retailer occupation, vehicle use, or other tax

 

 

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1with respect to the proceeds from the repossession sale.
2Delivery of the existing certificate of title to the purchaser
3shall be deemed disclosure to the purchaser of the owner of the
4vehicle. In the event the lienholder does not hold the
5certificate of title for the repossessed vehicle, the
6lienholder shall make application for and may obtain a new
7certificate of title in the name of the lienholder upon
8furnishing information satisfactory to the Secretary of State.
9Upon receiving the new certificate of title, the lienholder may
10proceed with the sale described in this subsection, except that
11upon selling the vehicle the lienholder shall promptly and
12within 20 days mail or deliver to the purchaser the new
13certificate of title reflecting the assignment and transfer of
14title to the purchaser.
15    (f-15) The Secretary of State shall not issue a certificate
16of title to a purchaser under subsection (f), (f-5), or (f-10)
17of this Section, unless the person from whom the vehicle has
18been repossessed by the lienholder is shown to be the last
19registered owner of the motor vehicle. The Secretary of State
20may provide by rule for the standards to be followed by a
21lienholder in assigning and transferring certificates of title
22with respect to repossessed vehicles.
23    (f-20) If applying for a salvage certificate or a junking
24certificate, the lienholder shall within 20 days make an
25application to the Secretary of State for a salvage certificate
26or a junking certificate, as set forth in this Code. The

 

 

HB1155- 20 -LRB097 05096 AJO 45139 b

1Secretary of State shall not issue a salvage certificate or a
2junking certificate to such lienholder unless the person from
3whom such vehicle has been repossessed is shown to be the last
4registered owner of such motor vehicle and such lienholder
5establishes to the satisfaction of the Secretary of State that
6he is entitled to such salvage certificate or junking
7certificate. The Secretary of State may provide by rule for the
8standards to be followed by a lienholder in order to obtain a
9salvage certificate or junking certificate for a repossessed
10vehicle.
11    (f-25) If the interest of an owner in a mobile home, as
12defined in the Mobile Home Local Services Tax Act, passes to
13another under the provisions of the Mobile Home Local Services
14Tax Enforcement Act, the transferee shall promptly mail or
15deliver to the Secretary of State (i) the last certificate of
16title, if available, (ii) a certified copy of the court order
17ordering the transfer of title, and (iii) an application for
18certificate of title.
19    (f-30) Bankruptcy. If the repossessed vehicle is the
20subject of a bankruptcy proceeding or discharge:
21        (1) the lienholder may proceed to sell or otherwise
22    dispose of the vehicle as authorized by the Bankruptcy Code
23    and the Uniform Commercial Code;
24        (2) the notice of redemption, affidavit of defense, and
25    notice of reinstatement otherwise required to be sent by
26    the lienholder to the owner of record or other lienholder

 

 

HB1155- 21 -LRB097 05096 AJO 45139 b

1    of record under this Section are not required to be
2    delivered or mailed;
3        (3) the requirement to delay disposition of the vehicle
4    for 21 days, (i) from the mailing or delivery of the notice
5    of redemption under subdivision (f-5)(1) of this Section,
6    (ii) from the mailing or delivery of the affidavit of
7    defense under subdivision (f-5)(2) of this Section, or
8    (iii) from the date of repossession when the owner is
9    entitled to a notice of reinstatement under subsection
10    (f-7) of this Section, does not apply;
11        (4) the affidavit of repossession that is required
12    under subdivision (f-5)(3) shall contain a notation of
13    "bankruptcy" where the affidavit requires the date of the
14    mailing or delivery of the notice of redemption. The
15    notation of "bankruptcy" means the lienholder makes no
16    sworn representations regarding the mailing or delivery of
17    the notice of redemption or affidavit of defense or
18    lienholder's compliance with the requirements that
19    otherwise apply to the notices listed in this subsection
20    (f-30), and makes no sworn representation that the
21    lienholder assumes liability or costs for any litigation
22    that may arise from the issuance of a certificate of title
23    based on the excluded representations;
24        (5) the right of redemption, the right to assert a
25    defense to the transfer of title, and reinstatement rights
26    under this Section do not apply; and

 

 

HB1155- 22 -LRB097 05096 AJO 45139 b

1        (6) references to judicial process and court orders in
2    subsection (f-10) of this Section do not include bankruptcy
3    proceedings or orders.
4    (f-35) When an abandoned junk or hazardous dilapidated
5motor vehicle is in the possession of an automotive collision
6and body repair facility or automotive repair facility and the
7facility, as lienholder, has complied with the requirements of
8Section 4.5 of the Labor and Storage Lien (Small Amount) Act
9the lienholder shall follow the provisions of subsection
10(f-20).
11    (g) A person holding a certificate of title whose interest
12in the vehicle has been extinguished or transferred other than
13by voluntary transfer shall mail or deliver the certificate,
14within 20 days upon request of the Secretary of State. The
15delivery of the certificate pursuant to the request of the
16Secretary of State does not affect the rights of the person
17surrendering the certificate, and the action of the Secretary
18of State in issuing a new certificate of title as provided
19herein is not conclusive upon the rights of an owner or
20lienholder named in the old certificate.
21    (h) The Secretary of State may decline to process any
22application for a transfer of an interest in a vehicle
23hereunder if any fees or taxes due under this Act from the
24transferor or the transferee have not been paid upon reasonable
25notice and demand.
26    (i) The Secretary of State shall not be held civilly or

 

 

HB1155- 23 -LRB097 05096 AJO 45139 b

1criminally liable to any person because any purported
2transferor may not have had the power or authority to make a
3transfer of any interest in any vehicle or because a
4certificate of title issued in error is subsequently used to
5commit a fraudulent act.
6(Source: P.A. 94-411, eff. 1-1-06.)
 
7    (625 ILCS 5/3-117.1)  (from Ch. 95 1/2, par. 3-117.1)
8    Sec. 3-117.1. When junking certificates or salvage
9certificates must be obtained.
10    (a) Except as provided in Chapter 4 of this Code, a person
11who possesses a junk vehicle shall within 15 days cause the
12certificate of title, salvage certificate, certificate of
13purchase, or a similarly acceptable out of state document of
14ownership to be surrendered to the Secretary of State along
15with an application for a junking certificate, except as
16provided in Section 3-117.2, whereupon the Secretary of State
17shall issue to such a person a junking certificate, which shall
18authorize the holder thereof to possess, transport, or, by an
19endorsement, transfer ownership in such junked vehicle, and a
20certificate of title shall not again be issued for such
21vehicle.
22    A licensee who possesses a junk vehicle and a Certificate
23of Title, Salvage Certificate, Certificate of Purchase, or a
24similarly acceptable out-of-state document of ownership for
25such junk vehicle, may transport the junk vehicle to another

 

 

HB1155- 24 -LRB097 05096 AJO 45139 b

1licensee prior to applying for or obtaining a junking
2certificate, by executing a uniform invoice. The licensee
3transferor shall furnish a copy of the uniform invoice to the
4licensee transferee at the time of transfer. In any case, the
5licensee transferor shall apply for a junking certificate in
6conformance with Section 3-117.1 of this Chapter. The following
7information shall be contained on a uniform invoice:
8        (1) The business name, address and dealer license
9    number of the person disposing of the vehicle, junk vehicle
10    or vehicle cowl;
11        (2) The name and address of the person acquiring the
12    vehicle, junk vehicle or vehicle cowl, and if that person
13    is a dealer, the Illinois or out-of-state dealer license
14    number of that dealer;
15        (3) The date of the disposition of the vehicle, junk
16    vehicle or vehicle cowl;
17        (4) The year, make, model, color and description of
18    each vehicle, junk vehicle or vehicle cowl disposed of by
19    such person;
20        (5) The manufacturer's vehicle identification number,
21    Secretary of State identification number or Illinois
22    Department of State Police number, for each vehicle, junk
23    vehicle or vehicle cowl part disposed of by such person;
24        (6) The printed name and legible signature of the
25    person or agent disposing of the vehicle, junk vehicle or
26    vehicle cowl; and

 

 

HB1155- 25 -LRB097 05096 AJO 45139 b

1        (7) The printed name and legible signature of the
2    person accepting delivery of the vehicle, junk vehicle or
3    vehicle cowl.
4    The Secretary of State may certify a junking manifest in a
5form prescribed by the Secretary of State that reflects those
6vehicles for which junking certificates have been applied or
7issued. A junking manifest may be issued to any person and it
8shall constitute evidence of ownership for the vehicle listed
9upon it. A junking manifest may be transferred only to a person
10licensed under Section 5-301 of this Code as a scrap processor.
11A junking manifest will allow the transportation of those
12vehicles to a scrap processor prior to receiving the junk
13certificate from the Secretary of State.
14    (b) An application for a salvage certificate shall be
15submitted to the Secretary of State in any of the following
16situations:
17        (1) When an insurance company makes a payment of
18    damages on a total loss claim for a vehicle, the insurance
19    company shall be deemed to be the owner of such vehicle and
20    the vehicle shall be considered to be salvage except that
21    ownership of (i) a vehicle that has incurred only hail
22    damage that does not affect the operational safety of the
23    vehicle or (ii) any vehicle 9 model years of age or older
24    may, by agreement between the registered owner and the
25    insurance company, be retained by the registered owner of
26    such vehicle. The insurance company shall promptly deliver

 

 

HB1155- 26 -LRB097 05096 AJO 45139 b

1    or mail within 20 days the certificate of title along with
2    proper application and fee to the Secretary of State, and a
3    salvage certificate shall be issued in the name of the
4    insurance company. Notwithstanding the foregoing, an
5    insurer making payment of damages on a total loss claim for
6    the theft of a vehicle shall not be required to apply for a
7    salvage certificate unless the vehicle is recovered and has
8    incurred damage that initially would have caused the
9    vehicle to be declared a total loss by the insurer.
10        (1.1) When a vehicle of a self-insured company is to be
11    sold in the State of Illinois and has sustained damaged by
12    collision, fire, theft, rust corrosion, or other means so
13    that the self-insured company determines the vehicle to be
14    a total loss, or if the cost of repairing the damage,
15    including labor, would be greater than 50% of its fair
16    market value without that damage, the vehicle shall be
17    considered salvage. The self-insured company shall
18    promptly deliver the certificate of title along with proper
19    application and fee to the Secretary of State, and a
20    salvage certificate shall be issued in the name of the
21    self-insured company. A self-insured company making
22    payment of damages on a total loss claim for the theft of a
23    vehicle may exchange the salvage certificate for a
24    certificate of title if the vehicle is recovered without
25    damage. In such a situation, the self-insured shall fill
26    out and sign a form prescribed by the Secretary of State

 

 

HB1155- 27 -LRB097 05096 AJO 45139 b

1    which contains an affirmation under penalty of perjury that
2    the vehicle was recovered without damage and the Secretary
3    of State may, by rule, require photographs to be submitted.
4        (2) When a vehicle the ownership of which has been
5    transferred to any person through a certificate of purchase
6    from acquisition of the vehicle at an auction, other
7    dispositions as set forth in Sections 4-208 and 4-209 of
8    this Code, a lien arising under Section 18a-501 of this
9    Code, or a public sale under the Abandoned Mobile Home Act
10    shall be deemed salvage or junk at the option of the
11    purchaser. The person acquiring such vehicle in such manner
12    shall promptly deliver or mail, within 20 days after the
13    acquisition of the vehicle, the certificate of purchase,
14    the proper application and fee, and, if the vehicle is an
15    abandoned mobile home under the Abandoned Mobile Home Act,
16    a certification from a local law enforcement agency that
17    the vehicle was purchased or acquired at a public sale
18    under the Abandoned Mobile Home Act to the Secretary of
19    State and a salvage certificate or junking certificate
20    shall be issued in the name of that person. The salvage
21    certificate or junking certificate issued by the Secretary
22    of State under this Section shall be free of any lien that
23    existed against the vehicle prior to the time the vehicle
24    was acquired by the applicant under this Code.
25        (3) A vehicle which has been repossessed by a
26    lienholder shall be considered to be salvage only when the

 

 

HB1155- 28 -LRB097 05096 AJO 45139 b

1    repossessed vehicle, on the date of repossession by the
2    lienholder, has sustained damage by collision, fire,
3    theft, rust corrosion, or other means so that the cost of
4    repairing such damage, including labor, would be greater
5    than 33 1/3% of its fair market value without such damage.
6    If the lienholder determines that such vehicle is damaged
7    in excess of 33 1/3% of such fair market value, the
8    lienholder shall, before sale, transfer or assignment of
9    the vehicle, make application for a salvage certificate,
10    and shall submit with such application the proper fee and
11    evidence of possession. If the facts required to be shown
12    in subsection (f) of Section 3-114 are satisfied, the
13    Secretary of State shall issue a salvage certificate in the
14    name of the lienholder making the application. In any case
15    wherein the vehicle repossessed is not damaged in excess of
16    33 1/3% of its fair market value, the lienholder shall
17    comply with the requirements of subsections (f), (f-5), and
18    (f-10) of Section 3-114, except that the affidavit of
19    repossession made by or on behalf of the lienholder shall
20    also contain an affirmation under penalty of perjury that
21    the vehicle on the date of sale is not damaged in excess of
22    33 1/3% of its fair market value. If the facts required to
23    be shown in subsection (f) of Section 3-114 are satisfied,
24    the Secretary of State shall issue a certificate of title
25    as set forth in Section 3-116 of this Code. The Secretary
26    of State may by rule or regulation require photographs to

 

 

HB1155- 29 -LRB097 05096 AJO 45139 b

1    be submitted.
2        (4) A vehicle which is a part of a fleet of more than 5
3    commercial vehicles registered in this State or any other
4    state or registered proportionately among several states
5    shall be considered to be salvage when such vehicle has
6    sustained damage by collision, fire, theft, rust,
7    corrosion or similar means so that the cost of repairing
8    such damage, including labor, would be greater than 33 1/3%
9    of the fair market value of the vehicle without such
10    damage. If the owner of a fleet vehicle desires to sell,
11    transfer, or assign his interest in such vehicle to a
12    person within this State other than an insurance company
13    licensed to do business within this State, and the owner
14    determines that such vehicle, at the time of the proposed
15    sale, transfer or assignment is damaged in excess of 33
16    1/3% of its fair market value, the owner shall, before such
17    sale, transfer or assignment, make application for a
18    salvage certificate. The application shall contain with it
19    evidence of possession of the vehicle. If the fleet vehicle
20    at the time of its sale, transfer, or assignment is not
21    damaged in excess of 33 1/3% of its fair market value, the
22    owner shall so state in a written affirmation on a form
23    prescribed by the Secretary of State by rule or regulation.
24    The Secretary of State may by rule or regulation require
25    photographs to be submitted. Upon sale, transfer or
26    assignment of the fleet vehicle the owner shall mail the

 

 

HB1155- 30 -LRB097 05096 AJO 45139 b

1    affirmation to the Secretary of State.
2        (5) A vehicle that has been submerged in water to the
3    point that rising water has reached over the door sill and
4    has entered the passenger or trunk compartment is a "flood
5    vehicle". A flood vehicle shall be considered to be salvage
6    only if the vehicle has sustained damage so that the cost
7    of repairing the damage, including labor, would be greater
8    than 33 1/3% of the fair market value of the vehicle
9    without that damage. The salvage certificate issued under
10    this Section shall indicate the word "flood", and the word
11    "flood" shall be conspicuously entered on subsequent
12    titles for the vehicle. A person who possesses or acquires
13    a flood vehicle that is not damaged in excess of 33 1/3% of
14    its fair market value shall make application for title in
15    accordance with Section 3-116 of this Code, designating the
16    vehicle as "flood" in a manner prescribed by the Secretary
17    of State. The certificate of title issued shall indicate
18    the word "flood", and the word "flood" shall be
19    conspicuously entered on subsequent titles for the
20    vehicle.
21        (6) When an abandoned junk or hazardous dilapidated
22    motor vehicle is in the possession of an automotive
23    collision and body repair facility or automotive repair
24    facility and the lienholder has complied with the
25    requirements of Section 4.5 of the Labor and Storage Lien
26    (Small Amount) Act.

 

 

HB1155- 31 -LRB097 05096 AJO 45139 b

1    (c) Any person who without authority acquires, sells,
2exchanges, gives away, transfers or destroys or offers to
3acquire, sell, exchange, give away, transfer or destroy the
4certificate of title to any vehicle which is a junk or salvage
5vehicle shall be guilty of a Class 3 felony.
6    (d) Any person who knowingly fails to surrender to the
7Secretary of State a certificate of title, salvage certificate,
8certificate of purchase or a similarly acceptable out-of-state
9document of ownership as required under the provisions of this
10Section is guilty of a Class A misdemeanor for a first offense
11and a Class 4 felony for a subsequent offense; except that a
12person licensed under this Code who violates paragraph (5) of
13subsection (b) of this Section is guilty of a business offense
14and shall be fined not less than $1,000 nor more than $5,000
15for a first offense and is guilty of a Class 4 felony for a
16second or subsequent violation.
17    (e) Any vehicle which is salvage or junk may not be driven
18or operated on roads and highways within this State. A
19violation of this subsection is a Class A misdemeanor. A
20salvage vehicle displaying valid special plates issued under
21Section 3-601(b) of this Code, which is being driven to or from
22an inspection conducted under Section 3-308 of this Code, is
23exempt from the provisions of this subsection. A salvage
24vehicle for which a short term permit has been issued under
25Section 3-307 of this Code is exempt from the provisions of
26this subsection for the duration of the permit.

 

 

HB1155- 32 -LRB097 05096 AJO 45139 b

1(Source: P.A. 95-495, eff. 1-1-08; 95-783, eff. 1-1-09.)
 
2    (625 ILCS 5/4-202)  (from Ch. 95 1/2, par. 4-202)
3    Sec. 4-202. Abandoned, lost, stolen or unclaimed vehicle
4notification to law enforcement agencies.
5    When an abandoned, lost, stolen or unclaimed vehicle comes
6into the temporary possession or custody of a person in this
7State, not the owner of the vehicle, such person shall
8immediately notify the municipal police when the vehicle is
9within the corporate limits of any city, village or town having
10a duly authorized police department, or the State Police or the
11county sheriff when the vehicle is outside the corporate limits
12of a city, village or town. Upon receipt of such notification,
13the municipal police, State Police or county sheriff will
14authorize a towing service to remove and take possession of the
15abandoned, lost, stolen or unclaimed vehicle. The towing
16service will safely keep the towed vehicle and its contents,
17maintain a record of the tow as set forth in Section 4-204 for
18law enforcement agencies, until the vehicle is claimed by the
19owner or any other person legally entitled to possession
20thereof or until it is disposed of as provided in this Chapter.
21When an abandoned junk or hazardous dilapidated motor vehicle
22is in the possession of an automotive collision and body repair
23facility or automotive repair facility, the facility may
24utilize the procedures set forth in Section 4.5 of the Labor
25and Storage Lien (Small Amount) Act.

 

 

HB1155- 33 -LRB097 05096 AJO 45139 b

1(Source: P.A. 78-858.)
 
2    Section 10. The Labor and Storage Lien (Small Amount) Act
3is amended by adding Section 4.5 as follows:
 
4    (770 ILCS 50/4.5 new)
5    Sec. 4.5. Notice and Affidavit of Abandonment. If an
6automotive collision and body repair facility or an automotive
7repair facility has a lien under this Act upon an abandoned
8junk vehicle as defined under Section 1-134.1 of the Vehicle
9Code or a hazardous dilapidated motor vehicle as defined in
10Section 11-40-3.1 of the Illinois Municipal Code and has had
11possession of the vehicle for at least 30 days, the lienor may
12sell the vehicle pursuant to this Section after mailing a
13Notice and Affidavit of Abandonment, with postage prepaid and
14return receipt requested, to the last known address of the
15reported owner, any assignee, other lienor, and any other
16person who has a duly recorded security interest in the
17vehicle. The Notice and Affidavit of Abandonment shall be
18substantially in the following form:
19
NOTICE AND AFFIDAVIT OF ABANDONMENT
20Notice is hereby given that Lienor, ......, has a statutory
21lien upon a vehicle (describe) for the storage of the vehicle
22that the Lienor has furnished; That the name and address of the
23owner or reputed owner, is ....... located at ....... ; That
24the lienor furnished storage of the vehicle at the lienor's

 

 

HB1155- 34 -LRB097 05096 AJO 45139 b

1automotive collision and body repair facility or the lienor's
2automotive repair facility between the date of ......,
3......... and the date of ......, ........; That the vehicle
4has remained unclaimed for a period of no less than 30 days;
5That the vehicle is a junk vehicle as defined in Section
61-134.1 of the Vehicle Code or a hazardous dilapidated motor
7vehicle as defined in Section 11-40-3.1 of the Illinois
8Municipal Code; That the claimant intends to transfer
9possession of the vehicle to a licensed scrap processor in this
10State; That the claimant demands compensation for the storage
11of the vehicle in the amount of $...., and that the remaining
12unpaid balance is $......
13I,......, being first duly sworn, on oath say that I am the
14lienor or the authorized agent of the lienor named in the
15foregoing notice, that I have read the notice, know the
16contents thereof, and believe the same to be true.
17(Signed).......... (Lienor)
18Address of Lienor .........
19State of Illinois,
20County of .........
 
21Subscribed and sworn to me before this ..... day of ........,
22.........
 
23If after 14 days following the mailing of the notice as
24provided in this Section, the vehicle has not been redeemed,

 

 

HB1155- 35 -LRB097 05096 AJO 45139 b

1the lienor may sell the vehicle to a licensed scrap processor
2in the State of Illinois. Any proceeds in excess of the amount
3due for storage shall be paid to any other lienor, as the
4lienor's interest may appear, with any remaining amount to be
5held by the lienor for 6 months. If the owner fails to claim
6the proceeds within 6 months after the sale, the funds shall be
7deposited by the lienor with the county treasurer for the
8county in which the vehicle was stored. The treasurer shall
9credit the proceeds to the county's general revenue fund,
10subject to the right of the owner to claim the excess proceeds
11within 3 years after the date of the deposit with the
12treasurer.