093_SB1149

 
                                     LRB093 07023 DRH 07174 b

 1        AN ACT relation to vehicles.

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

 4        Section  5.   The  Illinois  Vehicle  Code  is amended by
 5    changing Section 3-205 as follows:

 6        (625 ILCS 5/3-205) (from Ch. 95 1/2, par. 3-205)
 7        Sec. 3-205. Release of security interest.
 8        (a)  Within 15 days after receiving  payment  to  satisfy
 9    Upon the satisfaction of a security interest in a vehicle for
10    which  the  certificate  of title is in the possession of the
11    lienholder, he shall, within ten (10) days after demand  and,
12    in  any  event, within thirty (30) days, execute a release of
13    his security interest, and mail or  deliver  the  certificate
14    and  release  to  the  next  lienholder named therein, or, if
15    none, to  the  owner  or  any  person  who  delivers  to  the
16    lienholder  an  authorization  from  the owner to receive the
17    certificate. If the  payment  is  in  the  form  of  cash,  a
18    cashier's check, or a money order, these requirements must be
19    satisfied  within  5  days  of  receiving the payment. If the
20    owner desires a  new  certificate  reflecting  no  lien,  the
21    certificate  and release from the lienholder may be submitted
22    to  the  Secretary  of  State,  along  with  the   prescribed
23    application  and  required  fee,  for  issuance  of  that new
24    certificate.
25        (b)  Within 15 days after receiving  payment  to  satisfy
26    Upon the satisfaction of a security interest in a vehicle for
27    which  the  certificate  of  title  is in the possession of a
28    prior lienholder, the lienholder whose security  interest  is
29    satisfied shall within ten (10) days after demand and, in any
30    event,  within thirty (30) days execute a release and deliver
31    the release to the owner or any person who  delivers  to  the
 
                            -2-      LRB093 07023 DRH 07174 b
 1    lienholder  an authorization from the owner to receive it. If
 2    the payment is in the form of cash, a cashier's check,  or  a
 3    money  order,  these  requirements must be satisfied within 5
 4    days of receiving the payment. The lienholder  in  possession
 5    of   the   certificate   of  title  may  either  deliver  the
 6    certificate to the owner, or the person  authorized  by  him,
 7    for  delivery  to the Secretary of State, or, upon receipt of
 8    the release, may mail or  may  deliver  the  certificate  and
 9    release,  along  with prescribed application and require fee,
10    to the Secretary of State, who shall issue a new certificate.
11        (c)  Any person who knowingly fails to execute a  release
12    of  his  or  her  security interest or who knowingly fails to
13    mail or deliver the certificate and release within  the  time
14    limit  provided in subsection (a) or (b) is guilty of a Class
15    B misdemeanor for a first violation and shall be  fined  $250
16    for  each violation. A second or subsequent violation of this
17    Section is a Class A misdemeanor.
18    (Source: P.A. 81-557.)