102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3823

 

Introduced 2/22/2021, by Rep. Michael Halpin

 

SYNOPSIS AS INTRODUCED:
 
770 ILCS 95/4  from Ch. 114, par. 804

    Amends the Self-Service Storage Facility Act. Provides that an owner's lien may be satisfied by sale or other disposition after an advertisement of the sale or other disposition is published once (rather than once a week for 2 consecutive weeks) in a newspaper of general circulation where the self-service storage facility is located or in any other commercially reasonable manner. Provides that the manner of advertisement shall be deemed commercially reasonable if at least 3 bidders who are unrelated to the owner attend or view the sale at the time and place advertised.


LRB102 13072 LNS 18415 b

 

 

A BILL FOR

 

HB3823LRB102 13072 LNS 18415 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Self-Service Storage Facility Act is
5amended by changing Section 4 as follows:
 
6    (770 ILCS 95/4)  (from Ch. 114, par. 804)
7    Sec. 4. Enforcement of lien. An owner's lien as provided
8for in Section 3 of this Act for a claim which has become due
9may be satisfied as follows:
10    (A) The occupant shall be notified;
11    (B) The notice shall be delivered:
12        (1) in person; or
13        (2) by verified mail or by electronic mail to the last
14    known address of the occupant;
15    (C) The notice shall include:
16        (1) An itemized statement of the owner's claim showing
17    the sum due at the time of the notice and the date when the
18    sum became due;
19        (2) The name of the facility, address, telephone
20    number, date, time, location, and manner of the lien sale,
21    and the occupant's name and unit number;
22        (3) A notice of denial of access to the personal
23    property, if such denial is permitted under the terms of

 

 

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1    the rental agreement, which provides the name, street
2    address, and telephone number of the owner, or his
3    designated agent, whom the occupant may contact to respond
4    to this notice;
5        (3.5) Except as otherwise provided by a rental
6    agreement and until a lien sale, the exclusive care,
7    custody, and control of all personal property stored in
8    the leased self-service storage space remains vested in
9    the occupant. No bailment or higher level of liability is
10    created if the owner over-locks the occupant's lock,
11    thereby denying the occupant access to the storage space.
12    Rent and other charges related to the lien continue to
13    accrue during the period of time when access is denied
14    because of non-payment;
15        (4) A demand for payment within a specified time not
16    less than 14 days after delivery of the notice;
17        (5) A conspicuous statement that unless the claim is
18    paid within the time stated in the notice, the personal
19    property will be advertised for sale or other disposition,
20    and will be sold or otherwise disposed of at a specified
21    time and place.
22    (D) Any notice made pursuant to this Section shall be
23presumed delivered when it is deposited with the United States
24Postal Service, and properly addressed with postage prepaid or
25sent by electronic mail and the owner receives a receipt of
26delivery to the occupant's last known address, except if the

 

 

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1owner does not receive a receipt of delivery for the notice
2sent by electronic mail, the notice is presumed delivered when
3it is sent to the occupant by verified mail to the occupant's
4last known mailing address;
5    (E) After the expiration of the time given in the notice,
6an advertisement of the sale or other disposition shall be
7published once a week for two consecutive weeks in a newspaper
8of general circulation where the self-service storage facility
9is located or in any other commercially reasonable manner. The
10manner of advertisement shall be deemed commercially
11reasonable if at least 3 bidders who are unrelated to the owner
12attend or view the sale at the time and place advertised. The
13advertisement shall include:
14        (1) The name of the facility, address, telephone
15    number, date, time, location, and manner of lien sale and
16    the occupant's name and unit number.
17        (2) (Blank).
18        (3) The sale or other disposition shall take place not
19    sooner than 15 days after the first publication. If there
20    is no newspaper of general circulation where the
21    self-service storage facility is located, the
22    advertisement shall be posted at least 10 days before the
23    date of the sale or other disposition in not less than 6
24    conspicuous places in the neighborhood where the
25    self-service storage facility is located.
26    (F) Any sale or other disposition of the personal property

 

 

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1shall conform to the terms of the notification as provided for
2in this Section;
3    (G) Any sale or other disposition of the personal property
4shall be held at the self-service storage facility, or at the
5nearest suitable place to where the personal property is held
6or stored. A sale under this Section shall be deemed to be held
7at the self-service storage facility where the personal
8property is stored if the sale is held on a publicly accessible
9online website;
10    (G-5) If the property upon which the lien is claimed is a
11motor vehicle or watercraft and rent or other charges related
12to the property remain unpaid or unsatisfied for 60 days, the
13owner may have the property towed from the self-service
14storage facility. If a motor vehicle or watercraft is towed,
15the owner shall not be liable for any damage to the motor
16vehicle or watercraft, once the tower takes possession of the
17property. After the motor vehicle or watercraft is towed, the
18owner may pursue other collection options against the
19delinquent occupant for any outstanding debt. If the owner
20chooses to sell a motor vehicle, aircraft, mobile home, moped,
21motorcycle, snowmobile, trailer, or watercraft, the owner
22shall contact the Secretary of State and any other
23governmental agency as reasonably necessary to determine the
24name and address of the title holder or lienholder of the item,
25and the owner shall notify every identified title holder or
26lienholder of the time and place of the proposed sale. The

 

 

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1owner is required to notify the holder of a security interest
2only if the security interest is filed under the name of the
3person signing the rental agreement or an occupant. An owner
4who fails to make the lien searches required by this Section is
5liable only to valid lienholders injured by that failure as
6provided in Section 3;
7    (H) Before any sale or other disposition of personal
8property pursuant to this Section, the occupant may pay the
9amount necessary to satisfy the lien, and the reasonable
10expenses incurred under this Section, and thereby redeem the
11personal property. Upon receipt of such payment, the owner
12shall return the personal property, and thereafter the owner
13shall have no liability to any person with respect to such
14personal property;
15    (I) A purchaser in good faith of the personal property
16sold to satisfy a lien, as provided for in Section 3 of this
17Act, takes the property free of any rights of persons against
18whom the lien was valid, despite noncompliance by the owner
19with the requirements of this Section;
20    (J) In the event of a sale under this Section, the owner
21may satisfy his lien from the proceeds of the sale, but shall
22hold the balance, if any, for delivery on demand to the
23occupant. If the occupant does not claim the balance of the
24proceeds within one year of the date of sale, it shall become
25the property of the owner without further recourse by the
26occupant.

 

 

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1    (K) The lien on any personal property created by this Act
2shall be terminated as to any such personal property which is
3sold or otherwise disposed of pursuant to this Act and any such
4personal property which is removed from the self-service
5storage facility.
6    (L) If 3 or more bidders who are unrelated to the owner are
7in attendance at a sale held under this Section, the sale and
8its proceeds are deemed to be commercially reasonable.
9(Source: P.A. 97-599, eff. 8-26-11; 98-1106, eff. 1-1-15.)