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1 | AN ACT concerning revenue.
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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 Property Tax Code is amended by changing | ||||||||||||||||||||||||
5 | Section 21-305 as follows:
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6 | (35 ILCS 200/21-305)
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7 | Sec. 21-305. Payments from Indemnity Fund.
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8 | (a) Any owner of property sold under any provision of this | ||||||||||||||||||||||||
9 | Code who
sustains loss or damage by
reason of the issuance of a | ||||||||||||||||||||||||
10 | tax deed under Section 21-445 or 22-40 and who is
barred or is | ||||||||||||||||||||||||
11 | in any way
precluded from bringing an action for the recovery | ||||||||||||||||||||||||
12 | of the property shall have
the right to indemnity for the
loss | ||||||||||||||||||||||||
13 | or damage sustained, limited as follows:
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14 | (1) An owner who resided on property that contained 4 | ||||||||||||||||||||||||
15 | or less dwelling
units on the last day
of the period of | ||||||||||||||||||||||||
16 | redemption and who is equitably entitled to compensation | ||||||||||||||||||||||||
17 | for
the loss or damage sustained
has the right to | ||||||||||||||||||||||||
18 | indemnity. An equitable indemnity award shall be limited to
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19 | the fair cash value of the
property as of the date the tax | ||||||||||||||||||||||||
20 | deed was issued less any mortgages or liens on
the | ||||||||||||||||||||||||
21 | property, and the award will
not exceed $99,000. The Court | ||||||||||||||||||||||||
22 | shall liberally construe this equitable
entitlement | ||||||||||||||||||||||||
23 | standard to provide
compensation wherever, in the |
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1 | discretion of the Court, the equities warrant the
action.
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2 | An owner of a property that contained 4 or less | ||||||
3 | dwelling units who requests
an award in excess of
$99,000 | ||||||
4 | must prove that the loss of his or her property was not | ||||||
5 | attributable to
his or her own fault or
negligence before | ||||||
6 | an award in excess of $99,000 will be granted.
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7 | (2) An owner who sustains the loss or damage of any | ||||||
8 | property occasioned
by reason of the
issuance of a tax | ||||||
9 | deed, without fault or negligence of his or her own, has | ||||||
10 | the
right to indemnity limited to the
fair cash value of | ||||||
11 | the property less any mortgages or liens on the property.
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12 | In determining the existence of
fault or negligence, the | ||||||
13 | court shall consider whether the owner exercised
ordinary | ||||||
14 | reasonable diligence under
all of the relevant | ||||||
15 | circumstances.
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16 | (3) In determining the fair cash value of property less | ||||||
17 | any mortgages or
liens on the
property, the fair cash value | ||||||
18 | shall be reduced by the principal amount of all
taxes paid | ||||||
19 | by the tax purchaser
or his or her assignee before the | ||||||
20 | issuance of the tax deed.
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21 | (4) If an award made under paragraph (1) or (2) is | ||||||
22 | subject to a reduction
by the amount of
an outstanding | ||||||
23 | mortgage or lien on the property, other than the principal
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24 | amount of all taxes paid by the tax
purchaser or his or her | ||||||
25 | assignee before the issuance of the tax deed and the
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26 | petitioner would be personally
liable to the mortgagee or |
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1 | lienholder for all or part of that reduction amount,
the | ||||||
2 | court shall order an
additional indemnity award to be paid | ||||||
3 | directly to the mortgagee or lienholder
sufficient to | ||||||
4 | discharge the
petitioner's personal liability. The court, | ||||||
5 | in its discretion, may order the
joinder of the mortgagee | ||||||
6 | or
lienholder as an additional party to the indemnity | ||||||
7 | action.
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8 | (b) Indemnity fund; subrogation.
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9 | (1) Any person claiming indemnity hereunder
shall | ||||||
10 | petition the
Court which ordered the tax deed to issue, | ||||||
11 | shall name the County Treasurer, as
Trustee of the | ||||||
12 | indemnity fund, as defendant to the petition, and shall ask | ||||||
13 | that
judgment be entered against the County Treasurer, as | ||||||
14 | Trustee, in the amount of
the indemnity sought. The | ||||||
15 | provisions of the Civil Practice Law shall apply to
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16 | proceedings under the petition, except that neither the | ||||||
17 | petitioner nor County
Treasurer shall be entitled to trial | ||||||
18 | by jury on the issues presented in the
petition. The Court | ||||||
19 | shall liberally construe this Section to provide
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20 | compensation wherever in the discretion of the Court the | ||||||
21 | equities warrant such
action.
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22 | (2) The County Treasurer, as Trustee of the indemnity | ||||||
23 | fund, shall be
subrogated to all parties in whose favor | ||||||
24 | judgment may be rendered against him
or her, and by third | ||||||
25 | party complaint may bring in as a defendant any
person,
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26 | other than the tax deed grantee and its successors in |
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1 | title, not a party to the
action who is or may be liable to | ||||||
2 | him or her, as subrogee, for all
or part of the | ||||||
3 | petitioner's claim against him or her.
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4 | (c) Any contract involving the proceeds of a judgment for | ||||||
5 | indemnity under
this Section, between the
tax deed grantee or | ||||||
6 | its successors in title and the indemnity petitioner or his
or | ||||||
7 | her successors, shall be in
writing. In any action brought | ||||||
8 | under Section 21-305, the Collector shall be
entitled to | ||||||
9 | discovery regarding,
but not limited to, the following:
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10 | (1) the identity of all persons beneficially | ||||||
11 | interested in the contract,
directly or indirectly,
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12 | including at least the following information: the names and | ||||||
13 | addresses of any
natural
persons; the place of | ||||||
14 | incorporation of any corporation and the names and
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15 | addresses of its
shareholders unless it is publicly held; | ||||||
16 | the names and addresses of all general
and limited
partners | ||||||
17 | of any partnership; the names and addresses of all persons | ||||||
18 | having an
ownership
interest in any entity doing business | ||||||
19 | under an assumed name, and the county in
which the
assumed | ||||||
20 | business name is registered; and the nature and extent of | ||||||
21 | the interest
in the
contract of each person identified;
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22 | (2) the time period during which the contract was | ||||||
23 | negotiated and agreed
upon, from the date
of the first | ||||||
24 | direct or indirect contact between any of the contracting | ||||||
25 | parties
to the date of its
execution;
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26 | (3) the name and address of each natural person who |
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1 | took part in
negotiating the contract,
and the identity and | ||||||
2 | relationship of the party that the person represented in
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3 | the
negotiations; and
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4 | (4) the existence of an agreement for payment of | ||||||
5 | attorney's fees by or on
behalf of each
party.
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6 | Any information disclosed during discovery may be subject | ||||||
7 | to protective order
as deemed appropriate by
the court. The | ||||||
8 | terms of the contract shall not be used as evidence of value.
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9 | (d) A petition of indemnity under this Section must be | ||||||
10 | filed within 10 years after the date the tax deed was issued. | ||||||
11 | (Source: P.A. 91-564, eff. 8-14-99.)
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12 | Section 99. Effective date. This Act takes effect upon | ||||||
13 | becoming law.
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