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1 | AN ACT concerning transportation.
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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 5. The Illinois Vehicle Code is amended by | |||||||||||||||||||
5 | changing Section 3-117.3 as follows: | |||||||||||||||||||
6 | (625 ILCS 5/3-117.3) | |||||||||||||||||||
7 | Sec. 3-117.3. Junking or salvage certificates; insurance | |||||||||||||||||||
8 | company; salvage dealer. | |||||||||||||||||||
9 | (a) For purposes of this Section, "salvage dealer" means a | |||||||||||||||||||
10 | licensed dealer who primarily sells salvage vehicles on behalf | |||||||||||||||||||
11 | of insurance companies and obtains a "salvage dealer" | |||||||||||||||||||
12 | designation through the used dealer application process under | |||||||||||||||||||
13 | Section 5-102 of this Code. | |||||||||||||||||||
14 | (b) Notwithstanding any other provision of law to the | |||||||||||||||||||
15 | contrary, an insurance company or salvage dealer may, after | |||||||||||||||||||
16 | completing a record search for any owner of a vehicle or a | |||||||||||||||||||
17 | lienholder of record, obtain free of any lien a junking | |||||||||||||||||||
18 | certificate or salvage certificate in the insurance company's | |||||||||||||||||||
19 | name by submitting an application for a junking certificate or | |||||||||||||||||||
20 | salvage certificate to the Secretary of State. The application | |||||||||||||||||||
21 | shall include, but is not limited to, proof of full payment, in | |||||||||||||||||||
22 | whole or in part, to the vehicle owner or, if applicable, any | |||||||||||||||||||
23 | lienholder of record and proof of notice to the vehicle owner |
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1 | and any lienholder via certified mail or other proof of | ||||||
2 | service that a transfer of title shall occur no earlier than 30 | ||||||
3 | days after the date the notice is sent. An electronic image | ||||||
4 | showing payment to the vehicle owner or any lienholder of | ||||||
5 | record via electronic funds transfer or other electronic means | ||||||
6 | shall be sufficient proof of full payment. Upon approval of | ||||||
7 | the application, the Secretary shall issue to the insurance | ||||||
8 | company a junking certificate or salvage certificate free of | ||||||
9 | any lien in the insurance company's name. | ||||||
10 | An insurance company or salvage dealer shall not sell a | ||||||
11 | salvage vehicle with a title obtained under this subsection | ||||||
12 | (b) to anyone not authorized to buy salvage vehicles under | ||||||
13 | this Code. | ||||||
14 | This subsection (b) shall apply only to a motor vehicle | ||||||
15 | titled in this State that has been through an insurance claims | ||||||
16 | process and the owner of the vehicle or lienholder, if | ||||||
17 | applicable, has received compensation in exchange for | ||||||
18 | relinquishing the ownership rights of the vehicle to an | ||||||
19 | insurance company licensed under the Illinois Insurance Code | ||||||
20 | and the insurance company is unable to obtain an endorsed | ||||||
21 | certificate of title within 30 days of payment to the owner or | ||||||
22 | lienholder. | ||||||
23 | (c) Notwithstanding any other provision of law to the | ||||||
24 | contrary, a salvage dealer may, after completing a record | ||||||
25 | search for any owner of a vehicle or a lienholder of record, | ||||||
26 | obtain free of any lien a junking certificate or salvage |
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1 | certificate in his or her name by submitting an application | ||||||
2 | for a junking certificate or a salvage certificate to the | ||||||
3 | Secretary of State which shall include, but is not limited to, | ||||||
4 | proof of notice via certified mail or other proof of service to | ||||||
5 | the vehicle owner or any lienholder that a transfer of title | ||||||
6 | shall occur no earlier than 30 days after the date the notice | ||||||
7 | is sent. The notice shall inform the vehicle owner or | ||||||
8 | lienholder that upon payment of any applicable charges, the | ||||||
9 | vehicle may be removed from the salvage dealer's facility. | ||||||
10 | Upon approval of the application, the Secretary shall issue to | ||||||
11 | the salvage dealer a junking certificate or salvage | ||||||
12 | certificate free of any lien in the salvage dealer's name. | ||||||
13 | A salvage dealer shall not sell a salvage vehicle with a | ||||||
14 | title obtained under this subsection (c) to anyone not | ||||||
15 | authorized to buy salvage vehicles under this Code. | ||||||
16 | This subsection (c) shall apply only to a motor vehicle | ||||||
17 | titled in this State and in possession of a salvage dealer by | ||||||
18 | request of an insurance company licensed under the Illinois | ||||||
19 | Insurance Code to take possession of the motor vehicle subject | ||||||
20 | to an insurance claim and the insurance company denies | ||||||
21 | coverage of the vehicle or does not take ownership of the | ||||||
22 | vehicle within 45 days of possession by the salvage dealer. | ||||||
23 | (d) A vehicle owner or lienholder may send notice of | ||||||
24 | dispute of the transfer of title under this Section within 30 | ||||||
25 | days after the required notice is sent by the insurance | ||||||
26 | company or salvage dealer. If a dispute between a vehicle |
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1 | owner or lienholder and an insurance company or salvage dealer | ||||||
2 | cannot be resolved within 45 days after the required notice to | ||||||
3 | the vehicle owner or lienholder is sent, the vehicle owner or | ||||||
4 | lienholder, within 90 days after sending notice of dispute, | ||||||
5 | shall petition a court of competent jurisdiction for an order | ||||||
6 | to determine ownership of the vehicle and shall notify the | ||||||
7 | Secretary of State of the filing of the petition. If a vehicle | ||||||
8 | owner or lienholder does not file a petition within the 90-day | ||||||
9 | period, the title to the vehicle shall be issued to the | ||||||
10 | insurance company or salvage dealer under this Section. | ||||||
11 | (e) Any person who without authority acquires, sells, | ||||||
12 | exchanges, gives away, transfers, or destroys or offers to | ||||||
13 | acquire, sell, exchange, give away, transfer, or destroy the | ||||||
14 | certificate of title to any vehicle which is a junk or salvage | ||||||
15 | vehicle shall be guilty of a Class 3 felony. | ||||||
16 | (f) Any person who knowingly fails to surrender to the | ||||||
17 | Secretary of State a certificate of title, salvage | ||||||
18 | certificate, or certificate of purchase is guilty of a Class A | ||||||
19 | misdemeanor for a first offense and a Class 4 felony for a | ||||||
20 | second and subsequent offense. | ||||||
21 | (g) Any vehicle which is salvage or junk may not be driven | ||||||
22 | or operated on roads and highways within this State. A | ||||||
23 | violation of this subsection (g) is a Class A misdemeanor. A | ||||||
24 | salvage vehicle displaying valid special plates issued under | ||||||
25 | subsection (b) of Section 3-601 of this Code, which is being | ||||||
26 | driven to or from an inspection conducted under Section 3-308 |
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1 | of this Code, is exempt from the provisions of this subsection | ||||||
2 | (g). A salvage vehicle for which a short term permit has been | ||||||
3 | issued under Section 3-307 of this Code is exempt from the | ||||||
4 | provisions of this subsection (g) for the duration of the | ||||||
5 | permit. | ||||||
6 | (h) The Secretary of State may adopt any rules necessary | ||||||
7 | to implement this Section.
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8 | (Source: P.A. 100-104, eff. 11-9-17 .)
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