HB5910 97TH GENERAL ASSEMBLY

LRB097 18536 AJO 63767 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5910

Introduced 2/16/2012, by Rep. Patricia R. Bellock

SYNOPSIS AS INTRODUCED:

770 ILCS 50/3	from Ch. 82, par. 47c
770 ILCS 90/4 new
770 ILCS 95/4	from Ch. 114, par. 804

Amends the Labor and Storage Lien (Small Amount) Act, the Sale of Unclaimed Property Act, and the Self-Service Storage Facility Act. Provides that notwithstanding any other provision of law, if a lien is held on a vehicle under one of the amended Acts and the name of the vehicle owner or other responsible party is unknown after reasonable inquiry or if a certified mailing mailed is returned as undeliverable, the lienholder seeking to enforce the lien may hold the sale without complying notice by publication requirements if the lienholder provides the Secretary of State with a signed statement that: (i) the lienholder has inspected the vehicle and in the lienholder's opinion, the vehicle is a junk vehicle; and (ii) if the lienholder purchases the vehicle at the public sale, the lienholder will apply for a junking certificate for the vehicle. Provides that a person seeking a junking certificate under the new provisions must demonstrate to the satisfaction of the Secretary of State that he or she is otherwise eligible for a junking certificate.

A BILL FOR

AN ACT concerning civil law.

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

Section 5. The Labor and Storage Lien (Small Amount) Act is amended by changing Section 3 as follows:

(770 ILCS 50/3) (from Ch. 82, par. 47c)

Sec. 3. Notice.

(a) Such sale shall be held only after giving 30 days' notice of the time and place of such sale, by publication once in some newspaper of general circulation in the city, village, or incorporated town in which such lienor expended such labor, services, skill, or material or furnished such storage, or if there be none, or if the labor, service, skill or material was not expended in a city, village, or incorporated town, then in some newspaper of general circulation in the county in which such lienor expended such labor, service, skill, or material or furnished such storage, and also by certified mailing, 30 days before such sale, a copy of such notice addressed to the person requesting or consenting to such expenditure of labor, services, skill, or material or furnishing of storage, if his address is known, or if his address is unknown, to the last known address of such person. If no address is known or discoverable after reasonable inquiry, the sale may be made without mailing such notice. The published notice required by this Section shall be in substantially the following form:

-------------------------------------------------------------

NOTICE IS HEREBY GIVEN

That on (insert date), a sale will be held at (insert place), to sell the following articles to enforce a lien existing under the laws of the State of Illinois against such articles for labor, services, skill or material expended upon a storage furnished for such articles at the request of the following designated persons, unless such articles are redeemed within thirty days of the publication of this notice.

-------------------------------------------------------------

Name of Person Description of Article Amount of lien ................. ................. $................. ................. ................. $.................

A separate notice need not be published for each lien to be enforced, but several may be combined in one publication.

(b) Notwithstanding any other provision of law, if a lien is held on a vehicle and the name of the vehicle owner or other responsible party is unknown after reasonable inquiry or if a certified mailing mailed under subsection (a) of this Section is returned as undeliverable, the lienholder seeking to enforce the lien under this Act may hold the sale without complying with the notice by publication requirements of subsection (a) of this Section if the lienholder provides the Secretary of State with a signed statement that:

(i) the lienholder has inspected the vehicle and in the lienholder's opinion, the vehicle is a junk vehicle as defined by Section 1-134.1 of this Code; and

(ii) if the lienholder purchases the vehicle at the public sale, the lienholder will apply for a junking certificate for the vehicle.

A person seeking a junking certificate under this subsection (b) must demonstrate to the satisfaction of the Secretary of State that he or she is otherwise eligible for a junking certificate.

(Source: P.A. 87-206.)

Section 10. The Sale of Unclaimed Property Act is amended by adding Section 4 as follows:

(770 ILCS 90/4 new)

Sec. 4. Junk vehicles. Notwithstanding any other provision of law, if a lien is held on a vehicle under this Act and the name of the vehicle owner or other responsible party is unknown after reasonable inquiry or if a certified mailing mailed under this Act is returned as undeliverable, the lienholder seeking to enforce the lien under this Act may hold the sale without complying with the notice by publication requirements of this Act if the lienholder provides the Secretary of State with a signed statement that:

(i) the lienholder has inspected the vehicle and in the lienholder's opinion, the vehicle is a junk vehicle as defined by Section 1-134.1 of this Code; and

(ii) if the lienholder purchases the vehicle at the public sale, the lienholder will apply for a junking certificate for the vehicle.

A person seeking a junking certificate under this Section must demonstrate to the satisfaction of the Secretary of State that he or she is otherwise eligible for a junking certificate.

Section 15. The Self-Service Storage Facility Act is amended by changing Section 4 as follows:

(770 ILCS 95/4) (from Ch. 114, par. 804)

Sec. 4. Enforcement of lien. An owner's lien as provided for in Section 3 of this Act for a claim which has become due may be satisfied as follows:

(A) The occupant shall be notified;

(B) The notice shall be delivered:

(1) in person; or

(2) by certified mail or by first-class mail with a certificate of mailing to the last known address of the occupant;

(C) The notice shall include:

(1) An itemized statement of the owner's claim showing the sum due at the time of the notice and the date when the sum became due;

(2) The name of the facility, address, telephone number, date, time, location, and manner of the lien sale, and the occupant's name and unit number;

(3) A notice of denial of access to the personal property, if such denial is permitted under the terms of the rental agreement, which provides the name, street address, and telephone number of the owner, or his designated agent, whom the occupant may contact to respond to this notice;

(3.5) Except as otherwise provided by a rental agreement and until a lien sale, the exclusive care, custody, and control of all personal property stored in the leased self-service storage space remains vested in the occupant. No bailment or higher level of liability is created if the owner over-locks the occupant's lock, thereby denying the occupant access to the storage space. Rent and other charges related to the lien continue to accrue during the period of time when access is denied because of non-payment;

(4) A demand for payment within a specified time not less than 14 days after delivery of the notice;

(5) A conspicuous statement that unless the claim is paid within the time stated in the notice, the personal property will be advertised for sale or other disposition, and will be sold or otherwise disposed of at a specified time and place.

(D) Any notice made pursuant to this Section shall be presumed delivered when it is deposited with the United States Postal Service, and properly addressed with postage prepaid;

(E) After the expiration of the time given in the notice, an advertisement of the sale or other disposition shall be published once a week for two consecutive weeks in a newspaper of general circulation where the self-service storage facility is located. The advertisement shall include:

(1) The name of the facility, address, telephone number, date, time, location, and manner of lien sale and the occupant's name and unit number.

(2) (Blank).

(3) The sale or other disposition shall take place not sooner than 15 days after the first publication. If there is no newspaper of general circulation where the self-service storage facility is located, the advertisement shall be posted at least 10 days before the date of the sale or other disposition in not less than 6 conspicuous places in the neighborhood where the self-service storage facility is located.

(F) Any sale or other disposition of the personal property shall conform to the terms of the notification as provided for in this Section;

(G) Any sale or other disposition of the personal property shall be held at the self-service storage facility, or at the nearest suitable place to where the personal property is held or stored;

(G-5) If the property upon which the lien is claimed is a motor vehicle or watercraft and rent or other charges related to the property remain unpaid or unsatisfied for 60 days, the owner may have the property towed from the self-service storage facility. If a motor vehicle or watercraft is towed, the owner shall not be liable for any damage to the motor vehicle or watercraft, once the tower takes possession of the property. After the motor vehicle or watercraft is towed, the owner may pursue other collection options against the delinquent occupant for any outstanding debt. If the owner chooses to sell a motor vehicle, aircraft, mobile home, moped, motorcycle, snowmobile, trailer, or watercraft, the owner shall contact the Secretary of State and any other governmental agency as reasonably necessary to determine the name and address of the title holder or lienholder of the item, and the owner shall notify every identified title holder or lienholder of the time and place of the proposed sale. The owner is required to notify the holder of a security interest only if the security interest is filed under the name of the person signing the rental agreement or an occupant. An owner who fails to make the lien searches required by this Section is liable only to valid lienholders injured by that failure as provided in Section 3;

(H) Before any sale or other disposition of personal property pursuant to this Section, the occupant may pay the amount necessary to satisfy the lien, and the reasonable expenses incurred under this Section, and thereby redeem the personal property. Upon receipt of such payment, the owner shall return the personal property, and thereafter the owner shall have no liability to any person with respect to such personal property;

(I) A purchaser in good faith of the personal property sold to satisfy a lien, as provided for in Section 3 of this Act, takes the property free of any rights of persons against whom the lien was valid, despite noncompliance by the owner with the requirements of this Section;

(J) In the event of a sale under this Section, the owner may satisfy his lien from the proceeds of the sale, but shall hold the balance, if any, for delivery on demand to the occupant. If the occupant does not claim the balance of the proceeds within one year of the date of sale, it shall become the property of the owner without further recourse by the occupant.

(K) The lien on any personal property created by this Act shall be terminated as to any such personal property which is sold or otherwise disposed of pursuant to this Act and any such personal property which is removed from the self-service storage facility.

(L) If 3 or more bidders who are unrelated to the owner are in attendance at a sale held under this Section, the sale and its proceeds are deemed to be commercially reasonable.

(M) Notwithstanding any other provision of law, if a lien is held on a vehicle under this Act and the name of the vehicle owner or other responsible party is unknown after reasonable inquiry or if a certified mailing mailed under this Act is returned as undeliverable, the lienholder seeking to enforce the lien under this Act may hold the sale without complying with the notice by publication requirements of this Act if the lienholder provides the Secretary of State with a signed statement that:

(i) the lienholder has inspected the vehicle and in the lienholder's opinion, the vehicle is a junk vehicle as defined by Section 1-134.1 of this Code; and

(ii) if the lienholder purchases the vehicle at the public sale, the lienholder will apply for a junking certificate for the vehicle.

A person seeking a junking certificate under this Section must demonstrate to the satisfaction of the Secretary of State that he or she is otherwise eligible for a junking certificate.

(Source: P.A. 97-599, eff. 8-26-11.)