98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1602

 

Introduced 2/13/2013, by Sen. Jacqueline Y. Collins

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/9-121
735 ILCS 5/9-205  from Ch. 110, par. 9-205
735 ILCS 5/9-207  from Ch. 110, par. 9-207
735 ILCS 5/9-207.5 new
735 ILCS 5/15-1202.5
735 ILCS 5/15-1506  from Ch. 110, par. 15-1506
735 ILCS 5/15-1508  from Ch. 110, par. 15-1508
735 ILCS 5/15-1508.5
735 ILCS 5/15-1701  from Ch. 110, par. 15-1701
735 ILCS 5/15-1703  from Ch. 110, par. 15-1703
735 ILCS 5/15-1704  from Ch. 110, par. 15-1704

    Amends the Code of Civil Procedure. Provides that in the case of a foreclosure, the landlord may terminate a tenancy established prior to the confirmation of sale only (i) at the end of the term of the lease agreement by written notice issued not earlier than 90 days prior to the end of the term of the lease; or (ii) in the case of a month to month or week to week tenancy, by 90 days' written notice. Provides that the entry of a judgment of foreclosure shall not terminate or otherwise affect the rights or interest of any occupant of a dwelling unit who has a lease or tenancy resulting from an arm's length transaction and who is not the mortgagor, whether or not the occupant has been made a party in the foreclosure. Provides that the holder of the certificate of sale, the holder of the deed issued pursuant to that certificate, or if no certificate or deed was issued, the purchaser at the sale shall: (i) assume the lease or tenancy of the mortgaged real estate resulting from an arm's length transaction entered into prior to the confirmation of sale; (ii) assume any federal, state, or local housing subsidy contract for the dwelling unit for the duration of the contract or the assumed lease, whichever is shorter; (iii) assume his or her interest in the mortgaged real estate subject to the rights of any occupant; and (iv) not terminate the occupancy or any occupant's tenancy except as otherwise provided in the Code. Provides that the purchaser who offers money or other valuable consideration to an occupant of a dwelling unit as an incentive to vacate the premises shall tender the offer in accordance with specified conditions. Makes corresponding changes. Effective immediately.


LRB098 09678 HEP 39825 b

 

 

A BILL FOR

 

SB1602LRB098 09678 HEP 39825 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 Code of Civil Procedure is amended by
5changing Sections 9-121, 9-205, 9-207, 15-1202.5, 15-1506,
615-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704 and by adding
7Section 9-207.5 as follows:
 
8    (735 ILCS 5/9-121)
9    Sec. 9-121. Sealing of court file.
10    (a) Definition. As used in this Section, "court file" means
11the court file created when a forcible entry and detainer
12action is filed with the court.
13    (b) Discretionary sealing of court file. The court may
14order that a court file in a forcible entry and detainer action
15be placed under seal if the court finds that the plaintiff's
16action is sufficiently without a basis in fact or law, which
17may include a lack of jurisdiction, that placing the court file
18under seal is clearly in the interests of justice, and that
19those interests are not outweighed by the public's interest in
20knowing about the record.
21    (c) Mandatory sealing of court file. The court file
22relating to a forcible entry and detainer action brought
23against a tenant under Section 9-207.5 of this Code or as set

 

 

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1forth in subdivision (h)(5) of Section 15-1701 of this Code
2shall be placed under seal who would have lawful possession of
3the premises but for the foreclosure on the property shall be
4sealed pursuant to Section 15-1701.
5(Source: P.A. 96-1131, eff. 7-20-10.)
 
6    (735 ILCS 5/9-205)  (from Ch. 110, par. 9-205)
7    Sec. 9-205. Notice to terminate tenancy from year to year.
8Except as provided in Section 9-206 and Section 9-207.5 of this
9Act, in all cases of tenancy from year to year, 60 days'
10notice, in writing, shall be sufficient to terminate the
11tenancy at the end of the year. The notice may be given at any
12time within 4 months preceding the last 60 days of the year.
13(Source: P.A. 82-280.)
 
14    (735 ILCS 5/9-207)  (from Ch. 110, par. 9-207)
15    Sec. 9-207. Notice to terminate tenancy for less than a
16year.
17    (a) Except as provided in Section 9-207.5 of this Code, in
18In all cases of tenancy from week to week, where the tenant
19holds over without special agreement, the landlord may
20terminate the tenancy by 7 days' notice, in writing, and may
21maintain an action for forcible entry and detainer or
22ejectment.
23    (b) Except as provided in Section 9-207.5 of this Code, in
24In all cases of tenancy for any term less than one year, other

 

 

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1than tenancy from week to week, where the tenant holds over
2without special agreement, the landlord may terminate the
3tenancy by 30 days' notice, in writing, and may maintain an
4action for forcible entry and detainer or ejectment.
5(Source: P.A. 82-280.)
 
6    (735 ILCS 5/9-207.5 new)
7    Sec. 9-207.5. Termination of tenancies after foreclosure.
8In the case of a foreclosure under Article 15 of this Code, the
9landlord may terminate a tenancy established prior to the
10confirmation of sale under Section 15-1508 of this Code only
11(i) at the end of the term of the lease agreement by written
12notice issued not earlier than 90 days prior to the end of the
13term of the lease; or (ii) in the case of a month to month or
14week to week tenancy, by 90 days' written notice. Nothing in
15this Section shall abrogate the rights of a landlord to
16terminate a tenancy under Sections 9-118, 9-119, 9-120, 9-209,
17or 9-210 of this Code.
 
18    (735 ILCS 5/15-1202.5)
19    Sec. 15-1202.5. Dwelling unit. For the purposes of Sections
2015-1506, 15-1508, 15-1508.5, 15-1701, 15-1703, and 15-1704
21only, "dwelling unit" means a room or suite of rooms providing
22complete, independent living facilities for at least one
23person, including permanent provisions for sanitation,
24cooking, eating, sleeping, and other activities routinely

 

 

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1associated with daily life.
2(Source: P.A. 96-111, eff. 10-29-09; 97-575, eff. 8-26-11.)
 
3    (735 ILCS 5/15-1506)  (from Ch. 110, par. 15-1506)
4    Sec. 15-1506. Judgment.
5    (a) Evidence. In the trial of a foreclosure, the evidence
6to support the allegations of the complaint shall be taken in
7open court, except:
8        (1) where an allegation of fact in the complaint is not
9    denied by a party's verified answer or verified
10    counterclaim, or where a party pursuant to subsection (b)
11    of Section 2-610 of the Code of Civil Procedure states, or
12    is deemed to have stated, in its pleading that it has no
13    knowledge of such allegation sufficient to form a belief
14    and attaches the required affidavit, a sworn verification
15    of the complaint or a separate affidavit setting forth such
16    fact is sufficient evidence thereof against such party and
17    no further evidence of such fact shall be required; and
18        (2) where all the allegations of fact in the complaint
19    have been proved by verification of the complaint or
20    affidavit, the court upon motion supported by an affidavit
21    stating the amount which is due the mortgagee, shall enter
22    a judgment of foreclosure as requested in the complaint.
23    (b) Instruments. In all cases the evidence of the
24indebtedness and the mortgage foreclosed shall be exhibited to
25the court and appropriately marked, and copies thereof shall be

 

 

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1filed with the court.
2    (c) Summary and Default Judgments. Nothing in this Section
315-1506 shall prevent a party from obtaining a summary or
4default judgment authorized by Article II of the Code of Civil
5Procedure.
6    (d) Notice of Entry of Default. When any judgment in a
7foreclosure is entered by default, notice of such judgment
8shall be given in accordance with Section 2-1302 of the Code of
9Civil Procedure.
10    (e) Matters Required in Judgment. A judgment of foreclosure
11shall include the last date for redemption and all rulings of
12the court entered with respect to each request for relief set
13forth in the complaint. The omission of the date for redemption
14shall not extend the time for redemption or impair the validity
15of the judgment.
16    (f) Special Matters in Judgment. Without limiting the
17general authority and powers of the court, special matters may
18be included in the judgment of foreclosure if sought by a party
19in the complaint or by separate motion. Such matters may
20include, without limitation:
21        (1) a manner of sale other than public auction;
22        (2) a sale by sealed bid;
23        (3) an official or other person who shall be the
24    officer to conduct the sale other than the one customarily
25    designated by the court;
26        (4) provisions for non-exclusive broker listings or

 

 

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1    designating a duly licensed real estate broker nominated by
2    one of the parties to exclusively list the real estate for
3    sale;
4        (5) the fees or commissions to be paid out of the sale
5    proceeds to the listing or other duly licensed broker, if
6    any, who shall have procured the accepted bid;
7        (6) the fees to be paid out of the sale proceeds to an
8    auctioneer, if any, who shall have been authorized to
9    conduct a public auction sale;
10        (7) whether and in what manner and with what content
11    signs shall be posted on the real estate;
12        (8) a particular time and place at which such bids
13    shall be received;
14        (9) a particular newspaper or newspapers in which
15    notice of sale shall be published;
16        (10) the format for the advertising of such sale,
17    including the size, content and format of such advertising,
18    and additional advertising of such sale;
19        (11) matters or exceptions to which title in the real
20    estate may be subject at the sale;
21        (12) a requirement that title insurance in a specified
22    form be provided to a purchaser at the sale, and who shall
23    pay for such insurance;
24        (13) whether and to what extent bids with mortgage or
25    other contingencies will be allowed;
26        (14) such other matters as approved by the court to

 

 

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1    ensure sale of the real estate for the most commercially
2    favorable price for the type of real estate involved.
3    (g) Agreement of the Parties. If all of the parties agree
4in writing on the minimum price and that the real estate may be
5sold to the first person who offers in writing to purchase the
6real estate for such price, and on such other commercially
7reasonable terms and conditions as the parties may agree, then
8the court shall order the real estate to be sold on such terms,
9subject to confirmation of the sale in accordance with Section
1015-1508.
11    (h) Postponement of Proving Priority. With the approval of
12the court prior to the entry of the judgment of foreclosure, a
13party claiming an interest in the proceeds of the sale of the
14mortgaged real estate may defer proving the priority of such
15interest until the hearing to confirm the sale.
16    (i) Effect of Judgment and Lien.
17        (1) Upon the entry of the judgment of foreclosure, all
18    rights of a party in the foreclosure against the mortgagor
19    provided for in the judgment of foreclosure or this Article
20    shall be secured by a lien on the mortgaged real estate,
21    which lien shall have the same priority as the claim to
22    which the judgment relates and shall be terminated upon
23    confirmation of a judicial sale in accordance with this
24    Article.
25        (2) Upon the entry of the judgment of foreclosure, the
26    rights in the real estate subject to the judgment of

 

 

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1    foreclosure of (i) all persons made a party in the
2    foreclosure and (ii) all nonrecord claimants given notice
3    in accordance with paragraph (2) of subsection (c) of
4    Section 15-1502, shall be solely as provided for in the
5    judgment of foreclosure and in this Article.
6        (3) Entry of a judgment of foreclosure does not
7    terminate or otherwise affect the rights or interest of any
8    occupant of a dwelling unit who has a lease or tenancy
9    resulting from an arm's length transaction and who is not
10    the mortgagor, whether or not the occupant has been made a
11    party in the foreclosure.
12(Source: P.A. 85-907.)
 
13    (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
14    Sec. 15-1508. Report of Sale and Confirmation of Sale.
15    (a) Report. The person conducting the sale shall promptly
16make a report to the court, which report shall include a copy
17of all receipts and, if any, certificate of sale.
18    (b) Hearing. Upon motion and notice in accordance with
19court rules applicable to motions generally, which motion shall
20not be made prior to sale, the court shall conduct a hearing to
21confirm the sale. Unless the court finds that (i) a notice
22required in accordance with subsection (c) of Section 15-1507
23was not given, (ii) the terms of sale were unconscionable,
24(iii) the sale was conducted fraudulently, or (iv) justice was
25otherwise not done, the court shall then enter an order

 

 

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1confirming the sale. The confirmation order shall include a
2name, address, and telephone number of the holder of the
3certificate of sale or deed issued pursuant to that certificate
4or, if no certificate or deed was issued, the purchaser, whom a
5municipality or county may contact with concerns about the real
6estate. The confirmation order may also:
7        (1) approve the mortgagee's fees and costs arising
8    between the entry of the judgment of foreclosure and the
9    confirmation hearing, those costs and fees to be allowable
10    to the same extent as provided in the note and mortgage and
11    in Section 15-1504;
12        (2) provide for a personal judgment against any party
13    for a deficiency; and
14        (3) determine the priority of the judgments of parties
15    who deferred proving the priority pursuant to subsection
16    (h) of Section 15-1506, but the court shall not defer
17    confirming the sale pending the determination of such
18    priority.
19    (b-5) Notice with respect to residential real estate. With
20respect to residential real estate, the notice required under
21subsection (b) of this Section shall be sent to the mortgagor
22even if the mortgagor has previously been held in default. In
23the event the mortgagor has filed an appearance, the notice
24shall be sent to the address indicated on the appearance. In
25all other cases, the notice shall be sent to the mortgagor at
26the common address of the foreclosed property. The notice shall

 

 

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1be sent by first class mail. Unless the right to possession has
2been previously terminated by the court, the notice shall
3include the following language in 12-point boldface
4capitalized type:
5
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
6
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
7
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
8
ILLINOIS MORTGAGE FORECLOSURE LAW.
9    (b-10) Notice of confirmation order sent to municipality or
10county. A copy of the confirmation order required under
11subsection (b) shall be sent to the municipality in which the
12foreclosed property is located, or to the county within the
13boundary of which the foreclosed property is located if the
14foreclosed property is located in an unincorporated territory.
15A municipality or county must clearly publish on its website a
16single address to which such notice shall be sent. If a
17municipality or county does not maintain a website, then the
18municipality or county must publicly post in its main office a
19single address to which such notice shall be sent. In the event
20that a municipality or county has not complied with the
21publication requirement in this subsection (b-10), then such
22notice to the municipality or county shall be provided pursuant
23to Section 2-211 of the Code of Civil Procedure.
24    (c) Failure to Give Notice. If any sale is held without
25compliance with subsection (c) of Section 15-1507 of this
26Article, any party entitled to the notice provided for in

 

 

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1paragraph (3) of that subsection (c) who was not so notified
2may, by motion supported by affidavit made prior to
3confirmation of such sale, ask the court which entered the
4judgment to set aside the sale. Any such party shall guarantee
5or secure by bond a bid equal to the successful bid at the
6prior sale, unless the party seeking to set aside the sale is
7the mortgagor, the real estate sold at the sale is residential
8real estate, and the mortgagor occupies the residential real
9estate at the time the motion is filed. In that event, no
10guarantee or bond shall be required of the mortgagor. Any
11subsequent sale is subject to the same notice requirement as
12the original sale.
13    (d) Validity of Sale. Except as provided in subsection (c)
14of Section 15-1508, no sale under this Article shall be held
15invalid or be set aside because of any defect in the notice
16thereof or in the publication of the same, or in the
17proceedings of the officer conducting the sale, except upon
18good cause shown in a hearing pursuant to subsection (b) of
19Section 15-1508. At any time after a sale has occurred, any
20party entitled to notice under paragraph (3) of subsection (c)
21of Section 15-1507 may recover from the mortgagee any damages
22caused by the mortgagee's failure to comply with such paragraph
23(3). Any party who recovers damages in a judicial proceeding
24brought under this subsection may also recover from the
25mortgagee the reasonable expenses of litigation, including
26reasonable attorney's fees.

 

 

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1    (d-5) Making Home Affordable Program. The court that
2entered the judgment shall set aside a sale held pursuant to
3Section 15-1507, upon motion of the mortgagor at any time prior
4to the confirmation of the sale, if the mortgagor proves by a
5preponderance of the evidence that (i) the mortgagor has
6applied for assistance under the Making Home Affordable Program
7established by the United States Department of the Treasury
8pursuant to the Emergency Economic Stabilization Act of 2008,
9as amended by the American Recovery and Reinvestment Act of
102009, and (ii) the mortgaged real estate was sold in material
11violation of the program's requirements for proceeding to a
12judicial sale. The provisions of this subsection (d-5), except
13for this sentence, shall become inoperative on January 1, 2014
14for all actions filed under this Article after December 31,
152013, in which the mortgagor did not apply for assistance under
16the Making Home Affordable Program on or before December 31,
172013.
18    (e) Deficiency Judgment. In any order confirming a sale
19pursuant to the judgment of foreclosure, the court shall also
20enter a personal judgment for deficiency against any party (i)
21if otherwise authorized and (ii) to the extent requested in the
22complaint and proven upon presentation of the report of sale in
23accordance with Section 15-1508. Except as otherwise provided
24in this Article, a judgment may be entered for any balance of
25money that may be found due to the plaintiff, over and above
26the proceeds of the sale or sales, and enforcement may be had

 

 

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1for the collection of such balance, the same as when the
2judgment is solely for the payment of money. Such judgment may
3be entered, or enforcement had, only in cases where personal
4service has been had upon the persons personally liable for the
5mortgage indebtedness, unless they have entered their
6appearance in the foreclosure action.
7    (f) Satisfaction. Upon confirmation of the sale, the
8judgment stands satisfied to the extent of the sale price less
9expenses and costs. If the order confirming the sale includes a
10deficiency judgment, the judgment shall become a lien in the
11manner of any other judgment for the payment of money.
12    (g) The order confirming the sale shall include,
13notwithstanding any previous orders awarding possession during
14the pendency of the foreclosure, an award to the purchaser of
15possession of the mortgaged real estate, as of the date 30 days
16after the entry of the order, against the parties to the
17foreclosure whose interests have been terminated.
18    An order of possession authorizing the removal of a person
19from possession of the mortgaged real estate shall be entered
20and enforced only against those persons personally named as
21individuals in the complaint or the petition under subsection
22(h) of Section 15-1701. However, no order of possession issued
23under this Section shall be entered against an occupant of a
24dwelling unit of the mortgaged real estate who has been
25personally named in the foreclosure if that occupant is not the
26mortgagor and has a lease or tenancy resulting from an arm's

 

 

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1length transaction. An and in the order of possession and shall
2not be entered and enforced against any person who is only
3generically described as an unknown owner or nonrecord claimant
4or by another generic designation in the complaint.
5    Notwithstanding the preceding paragraph, the failure to
6personally name, include, or seek an award of possession of the
7mortgaged real estate against a person in the confirmation
8order shall not abrogate any right that the purchaser may have
9to possession of the mortgaged real estate and to maintain a
10proceeding against that person for possession under Article 9
11of this Code or, if applicable, under subsection (h) of Section
1215-1701; and possession against a person who (1) has not been
13personally named as a party to the foreclosure and (2) has not
14been provided an opportunity to be heard in the foreclosure
15proceeding may be sought only by maintaining a proceeding under
16Article 9 of this Code or, if applicable, under subsection (h)
17of Section 15-1701.
18    (h) With respect to mortgaged real estate containing 5 or
19more dwelling units, the order confirming the sale shall also
20provide that (i) the mortgagor shall transfer to the purchaser
21the security deposits, if any, that the mortgagor received to
22secure payment of rent or to compensate for damage to the
23mortgaged real estate from any current occupant of a dwelling
24unit of the mortgaged real estate, as well as any statutory
25interest that has not been paid to the occupant, and (ii) the
26mortgagor shall provide an accounting of the security deposits

 

 

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1that are transferred, including the name and address of each
2occupant for whom the mortgagor holds the deposit and the
3amount of the deposit and any statutory interest.
4(Source: P.A. 96-265, eff. 8-11-09; 96-856, eff. 3-1-10;
596-1245, eff. 7-23-10; 97-333, eff. 8-12-11; 97-575, eff.
68-26-11; 97-1159, eff. 1-29-13.)
 
7    (735 ILCS 5/15-1508.5)
8    Sec. 15-1508.5. Notice by holder or purchaser to known
9occupants of dwelling units of mortgaged real estate.
10    (a) The holder of the certificate of sale or deed issued
11pursuant to that certificate or, if no certificate or deed was
12issued, the purchaser, shall:
13        (1) following the judicial sale under Section 15-1507,
14    but no later than 21 days after the confirmation of sale
15    under Section 15-1508, make a good faith effort to
16    ascertain the identities and addresses of all occupants of
17    dwelling units of the mortgaged real estate; and
18        (2) following the order confirming sale under Section
19    15-1508, but no later than 21 days after the order
20    confirming sale, notify all known occupants of dwelling
21    units of the mortgaged real estate that the holder or
22    purchaser has acquired the mortgaged real estate. The
23    notice shall be in writing and shall:
24            (i) identify the occupant being served by the name
25        known to the holder or purchaser;

 

 

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1            (ii) inform the occupant that the mortgaged real
2        estate at which the dwelling unit is located is the
3        subject of a foreclosure and that control of the
4        mortgaged real estate has changed;
5            (iii) provide the name, address, and telephone
6        number of an individual or entity whom the occupants
7        may contact with concerns about the mortgaged real
8        estate or to request repairs of that property;
9            (iv) include the following language, or language
10        that is substantially similar: "This is NOT a notice to
11        vacate the premises. You may wish to contact a lawyer
12        or your local legal aid or housing counseling agency to
13        discuss any rights that you may have."; and
14            (v) include the name of the case, the case number,
15        and the court where the order confirming the sale has
16        been entered; and .
17            (vi) provide instructions on the method of payment
18        of future rent, if applicable.
19    (b) The written notice required by subsection (a) of this
20Section shall be served by delivering a copy thereof to the
21known occupant, or by leaving the same with some person of the
22age of 13 years or upwards who is residing on or in possession
23of the premises, or by sending a copy of the notice to the
24known occupant by first-class mail, addressed to the occupant
25by the name known to the holder or purchaser.
26    (c) In the event that the holder or purchaser ascertains

 

 

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1the identity and address of an occupant of a dwelling unit of
2the mortgaged real estate more than 21 days after the
3confirmation of sale under Section 15-1508, the holder or
4purchaser shall provide the notice required by subparagraph (2)
5of subsection (a) within 7 days of ascertaining the identity
6and address of the occupant.
7    (d)(i) A holder or purchaser who fails to comply with
8subsections (a), (b), and (c) may not collect any rent due and
9owing from a known occupant, or terminate a known occupant's
10tenancy for non-payment of such rent, until the holder or
11purchaser has served the notice described in paragraph (2) of
12subsection (a) of this Section upon the known occupant. After
13providing such notice, the holder or purchaser may collect any
14and all rent accruing after service of the notice otherwise due
15and owing the holder or purchaser from the known occupant and
16may terminate the known occupant's tenancy for non-payment of
17such rent if the holder or purchaser otherwise has such right
18to terminate.
19    (ii) An occupant who previously paid rent for the current
20rental period to the mortgagor, or other entity with the
21authority to operate, manage, and conserve the mortgaged real
22estate at the time of payment, shall not be held liable for
23that rent by the holder or purchaser, and the occupant's
24tenancy shall not be terminated for non-payment of rent for
25that rental period.
26    (e) Within 21 days of the confirmation of sale under

 

 

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1Section 15-1508, the holder or purchaser shall post a written
2notice on the primary entrance of each dwelling unit subject to
3the foreclosure action. This notice shall:
4        (i) inform occupant that the dwelling unit is the
5    subject of a foreclosure action and that control of the
6    mortgaged real estate has changed;
7        (ii) include the following language: "This is NOT a
8    notice to vacate the premises."; and
9        (iii) provide the name, address, and telephone number
10    of the individual or entity whom occupants may contact with
11    concerns about the mortgaged real estate or to request
12    repairs of the property; and .
13        (iv) provide instructions on the method of payment of
14    future rent, if applicable.
15    (f)(i) The provisions of subsection (d) of this Section
16shall be the exclusive remedy for the failure of a holder or
17purchaser to provide notice to a known occupant under this
18Section.
19    (ii) This Section shall not abrogate any right that a
20holder or purchaser may have to possession of the mortgaged
21real estate and to maintain a proceeding against an occupant of
22a dwelling unit for possession under Article 9 of this Code or
23subsection (h) of Section 15-1701.
24    (iii) In the event that the holder or purchaser is a
25mortgagee in possession of the mortgaged real estate pursuant
26to Section 15-1703 at the time of the confirmation of sale and

 

 

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1has complied with requirements of subsection (a-5) of Section
215-1703, the holder or purchaser is excused from the
3requirements of subsections (a) and (e) of this Section.
4    (iv) A holder or purchaser is not required to provide the
5notice required by this Section to a mortgagor or party against
6whom an order of possession has been entered authorizing the
7removal of the mortgagor or party pursuant to subsection (g) of
8Section 15-1508.
9(Source: P.A. 96-111, eff. 10-29-09.)
 
10    (735 ILCS 5/15-1701)  (from Ch. 110, par. 15-1701)
11    Sec. 15-1701. Right to possession.
12    (a) General. The provisions of this Article shall govern
13the right to possession of the mortgaged real estate during
14foreclosure. Possession under this Article includes physical
15possession of the mortgaged real estate to the same extent to
16which the mortgagor, absent the foreclosure, would have been
17entitled to physical possession. For the purposes of Part 17,
18real estate is residential real estate only if it is
19residential real estate at the time the foreclosure is
20commenced.
21    (b) Pre-Judgment. Prior to the entry of a judgment of
22foreclosure:
23        (1) In the case of residential real estate, the
24    mortgagor shall be entitled to possession of the real
25    estate except if (i) the mortgagee shall object and show

 

 

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1    good cause, (ii) the mortgagee is so authorized by the
2    terms of the mortgage or other written instrument, and
3    (iii) the court is satisfied that there is a reasonable
4    probability that the mortgagee will prevail on a final
5    hearing of the cause, the court shall upon request place
6    the mortgagee in possession. If the residential real estate
7    consists of more than one dwelling unit, then for the
8    purpose of this Part residential real estate shall mean
9    only that dwelling unit or units occupied by persons
10    described in clauses (i), (ii) and (iii) of Section
11    15-1219.
12        (2) In all other cases, if (i) the mortgagee is so
13    authorized by the terms of the mortgage or other written
14    instrument, and (ii) the court is satisfied that there is a
15    reasonable probability that the mortgagee will prevail on a
16    final hearing of the cause, the mortgagee shall upon
17    request be placed in possession of the real estate, except
18    that if the mortgagor shall object and show good cause, the
19    court shall allow the mortgagor to remain in possession.
20    (c) Judgment Through 30 Days After Sale Confirmation. After
21the entry of a judgment of foreclosure and through the 30th day
22after a foreclosure sale is confirmed:
23        (1) Subsection (b) of Section 15-1701 shall be
24    applicable, regardless of the provisions of the mortgage or
25    other instrument, except that after a sale pursuant to the
26    judgment the holder of the certificate of sale (or, if

 

 

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1    none, the purchaser at the sale) shall have the mortgagee's
2    right to be placed in possession, with all rights and
3    duties of a mortgagee in possession under this Article.
4        (2) Notwithstanding paragraph (1) of subsection (b)
5    and paragraph (1) of subsection (c) of Section 15-1701,
6    upon request of the mortgagee, a mortgagor of residential
7    real estate shall not be allowed to remain in possession
8    between the expiration of the redemption period and through
9    the 30th day after sale confirmation unless (i) the
10    mortgagor pays to the mortgagee or such holder or
11    purchaser, whichever is applicable, monthly the lesser of
12    the interest due under the mortgage calculated at the
13    mortgage rate of interest applicable as if no default had
14    occurred or the fair rental value of the real estate, or
15    (ii) the mortgagor otherwise shows good cause. Any amounts
16    paid by the mortgagor pursuant to this subsection shall be
17    credited against the amounts due from the mortgagor.
18    (d) After 30 Days After Sale Confirmation. The holder of
19the certificate of sale or deed issued pursuant to that
20certificate or, if no certificate or deed was issued, the
21purchaser, except to the extent the holder or purchaser may
22consent otherwise, shall be entitled to possession of the
23mortgaged real estate, as of the date 30 days after the order
24confirming the sale is entered, against those parties to the
25foreclosure whose interests the court has ordered terminated,
26without further notice to any party, further order of the

 

 

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1court, or resort to proceedings under any other statute other
2than this Article. This right to possession shall be limited by
3the provisions governing entering and enforcing orders of
4possession under subsection (g) of Section 15-1508. If the
5holder or purchaser determines that there are occupants of the
6mortgaged real estate who have not been made parties to the
7foreclosure and had their interests terminated therein, the
8holder or purchaser may bring a proceeding under subsection (h)
9of this Section, if applicable, or under Article 9 of this Code
10to terminate the rights of possession of any such occupants.
11The holder or purchaser shall not be entitled to proceed
12against any such occupant under Article 9 of this Code until
13after 30 days after the order confirming the sale is entered.
14    (e) Termination of Leases. A lease of all or any part of
15the mortgaged real estate shall not be terminated automatically
16solely by virtue of the entry into possession by (i) a
17mortgagee or receiver prior to the entry of an order confirming
18the sale, (ii) the holder of the certificate of sale, (iii) the
19holder of the deed issued pursuant to that certificate, or (iv)
20if no certificate or deed was issued, the purchaser at the
21sale.
22    (f) Other Statutes; Instruments. The provisions of this
23Article providing for possession of mortgaged real estate shall
24supersede any other inconsistent statutory provisions. In
25particular, and without limitation, whenever a receiver is
26sought to be appointed in any action in which a foreclosure is

 

 

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1also pending, a receiver shall be appointed only in accordance
2with this Article. Except as may be authorized by this Article,
3no mortgage or other instrument may modify or supersede the
4provisions of this Article.
5    (g) Certain Leases. Leases of the mortgaged real estate
6entered into by a mortgagee in possession or a receiver and
7approved by the court in a foreclosure shall be binding on all
8parties, including the mortgagor after redemption, the
9purchaser at a sale pursuant to a judgment of foreclosure and
10any person acquiring an interest in the mortgaged real estate
11after entry of a judgment of foreclosure in accordance with
12Sections 15-1402 and 15-1403.
13    (h) Proceedings Against Certain Occupants.
14        (1) The mortgagee-in-possession of the mortgaged real
15    estate under Section 15-1703, a receiver appointed under
16    Section 15-1704, a holder of the certificate of sale or
17    deed, or the purchaser may, at any time during the pendency
18    of the foreclosure and up to 90 days after the date of the
19    order confirming the sale, file a supplemental petition for
20    possession against a person not personally named as a party
21    to the foreclosure. The supplemental petition for
22    possession shall name each such occupant against whom
23    possession is sought and state the facts upon which the
24    claim for relief is premised. This subsection (h) does not
25    apply to any occupant of a dwelling unit of the mortgaged
26    real estate who has a lease or tenancy resulting from an

 

 

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1    arm's length transaction and who is not the mortgagor.
2        (2) The petitioner shall serve upon each named occupant
3    the petition, a notice of hearing on the petition, and, if
4    any, a copy of the certificate of sale or deed. The
5    proceeding for the termination of such occupant's
6    possessory interest, including service of the notice of the
7    hearing and the petition, shall in all respects comport
8    with the requirements of Article 9 of this Code, except as
9    otherwise specified in this Section. The hearing shall be
10    no less than 21 days from the date of service of the
11    notice.
12        (3) The supplemental petition shall be heard as part of
13    the foreclosure proceeding and without the payment of
14    additional filing fees. An order for possession obtained
15    under this Section shall name each occupant whose interest
16    has been terminated, shall recite that it is only effective
17    as to the occupant so named and those holding under them,
18    and shall be enforceable for no more than 120 days after
19    its entry, except that the 120-day period may be extended
20    to the extent and in the manner provided in Section 9-117
21    of Article 9 and except as provided in item (4) of this
22    subsection (h).
23        (4) In a case of foreclosure where the occupant is
24    current on his or her rent, or where timely written notice
25    of to whom and where the rent is to be paid has not been
26    provided to the occupant, or where the occupant has made

 

 

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1    good-faith efforts to make rental payments in order to keep
2    current, any order of possession must allow the occupant to
3    retain possession of the property covered in his or her
4    rental agreement (i) for 120 days following the notice of
5    the hearing on the supplemental petition that has been
6    properly served upon the occupant, or (ii) through the
7    duration of his or her lease, whichever is shorter,
8    provided that if the duration of his or her lease is less
9    than 30 days from the date of the order, the order shall
10    allow the occupant to retain possession for 30 days from
11    the date of the order. A mortgagee in possession, receiver,
12    holder of a certificate of sale or deed, or purchaser at
13    the judicial sale, who asserts that the occupant is not
14    current in rent, shall file an affidavit to that effect in
15    the supplemental petition proceeding. If the occupant has
16    been given timely written notice of to whom and where the
17    rent is to be paid, this item (4) shall only apply if the
18    occupant continues to pay his or her rent in full during
19    the 120-day period or has made good-faith efforts to pay
20    the rent in full during that period. No
21    mortgagee-in-possession, receiver or holder of a
22    certificate of sale or deed, or purchaser who fails to file
23    a supplemental petition under this subsection during the
24    pendency of a mortgage foreclosure shall file a forcible
25    entry and detainer action against an occupant of the
26    mortgaged real estate until 90 days after a notice of

 

 

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1    intent to file such action has been properly served upon
2    the occupant.
3        (5) The court records relating to a supplemental
4    petition for possession filed under this subsection (h)
5    against an occupant who is entitled to notice under item
6    (4) of this subsection (h), or relating to a forcible entry
7    and detainer action brought against an occupant who would
8    have lawful possession of the premises but for the
9    foreclosure of a mortgage on the property, shall be ordered
10    sealed and shall not be disclosed to any person, other than
11    a law enforcement officer or any other representative of a
12    governmental entity, except upon further order of the
13    court.
14    (i) Occupants of Dwelling Units.
15        (1) The holder of the certificate of sale, the holder
16    of the deed issued pursuant to that certificate, or if no
17    certificate or deed was issued, the purchaser at the sale
18    shall: (i) assume the lease or tenancy of the mortgaged
19    real estate resulting from an arm's length transaction
20    entered into prior to the confirmation of sale under
21    Section 15-1508 of this Code; (ii) assume any federal,
22    state, or local housing subsidy contract for the dwelling
23    unit for the duration of the contract or the assumed lease,
24    whichever is shorter; (iii) assume his or her interest in
25    the mortgaged real estate subject to the rights of any
26    occupant; and (iv) not terminate the occupancy or any

 

 

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1    occupant's tenancy except pursuant to Article 9 of this
2    Code.
3        (2) A receiver, mortgagee, or holder of the certificate
4    of sale, the holder of the deed issued pursuant to that
5    certificate, or if no certificate or deed was issued, the
6    purchaser at the sale who offers any money or other
7    valuable consideration to an occupant of a dwelling unit as
8    an incentive to vacate the premises shall tender the offer
9    in writing along with a notice in the manner set forth in
10    paragraph (3) of this subsection (i). The offer shall: (i)
11    offer an amount that is at least either 3 times the
12    security deposit and interest that would be due to the
13    occupant under State or local law upon the termination of
14    the tenancy, or 3 months' rent, whichever is greater; (ii)
15    not require an occupant to vacate the premises earlier than
16    14 days after acceptance of the offer; (C) not require the
17    occupant to perform any other obligation that is not
18    already required under the law or any lease or tenancy in
19    existence prior to the offer; (iv) not demand the waiver or
20    forfeiture of any other rights or remedies the occupant may
21    have under the law; and (v) not misrepresent the occupant's
22    right to continued possession of the dwelling unit.
23        (3) A notice accompanying an offer tendered under
24    paragraph (2) of this subsection shall be headed in bold
25    14-point type "CASH-FOR-KEYS OFFER", and shall state the
26    following in 14-point type: "THIS IS AN OFFER FOR A

 

 

SB1602- 28 -LRB098 09678 HEP 39825 b

1    MONETARY PAYMENT IN EXCHANGE FOR VACATING THE PREMISES.
2    THIS IS NOT A DEMAND TO VACATE, AND YOU DO NOT HAVE TO
3    ACCEPT THESE TERMS. You cannot be asked to vacate sooner
4    than 14 days from the date you accept any offer, and you
5    cannot be asked to do more than your lease or tenancy
6    already requires. If you choose not to accept this offer,
7    only a judge can end your lease or tenancy. You may wish to
8    contact a lawyer or your local legal aid agency to discuss
9    any rights that you may have."
10        (4) A person whose rights have been violated under this
11    subsection may bring an action seeking: (i) all equitable
12    and legal relief, including punitive damages; (ii) an
13    amount that is the equivalent of 3 months' rent at the
14    subject property under any tenancy or lease that was
15    entered into prior to the confirmation of sale in addition
16    to $1000 per violation; and (iii) reasonable attorney's
17    fees and costs.
18        (5) This subsection does not apply to the mortgagor or
19    other person whose possessory interest in the property is
20    terminated under Section 15-1508 of this Article.
21        (6) Nothing in this subsection shall be interpreted to
22    limit any code or ordinance of any unit of local government
23    that provides greater or additional protections to
24    occupants.
25(Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08; 96-60,
26eff. 7-23-09; 96-111, eff. 10-29-09; 96-1000, eff. 7-2-10.)
 

 

 

SB1602- 29 -LRB098 09678 HEP 39825 b

1    (735 ILCS 5/15-1703)  (from Ch. 110, par. 15-1703)
2    Sec. 15-1703. Mortgagee in Possession.
3    (a) Powers and Duties. A mortgagee placed in possession of
4the real estate pursuant to Section 15-1701 or Section 15-1702
5shall have:
6        (1) such power and authority with respect to the real
7    estate and other property subject to the mortgage,
8    including the right to receive the rents, issues and
9    profits thereof, as may have been conferred upon the
10    mortgagee by the terms of the mortgage or other written
11    instrument authorizing the taking of possession;
12        (2) all other rights and privileges of a mortgagee in
13    possession under law not inconsistent herewith; and
14        (3) the same powers, duties and liabilities as a
15    receiver appointed for the real estate in accordance with
16    this Article. If an order placing a mortgagee in possession
17    is modified, revoked or set aside, the mortgagee shall not
18    be liable for any damages to the extent such damages arise
19    solely out of the fact that the mortgagor was removed from
20    possession or that the mortgagee was placed in possession.
21    (a-5) Notice to occupants.
22        (1) Following the order placing the mortgagee in
23    possession of the mortgaged real estate, but no later than
24    21 days after the entry of such order, the mortgagee in
25    possession shall make a good faith effort to ascertain the

 

 

SB1602- 30 -LRB098 09678 HEP 39825 b

1    identities and addresses of all occupants of dwelling units
2    of the mortgaged real estate.
3        (2) Following the order placing the mortgagee in
4    possession of the mortgaged real estate, but no later than
5    21 days after the entry of such order, the mortgagee in
6    possession shall notify all known occupants of dwelling
7    units of the mortgaged real estate that the mortgagee has
8    taken possession of the mortgaged real estate. The notice
9    shall be in writing and shall:
10            (i) identify the occupant being served by the name
11        known to the mortgagee in possession;
12            (ii) inform the occupant that the mortgaged real
13        estate at which the dwelling unit is located is the
14        subject of a foreclosure action and that control of the
15        mortgaged real estate has changed;
16            (iii) provide the name, address, and telephone
17        number of the individual or entity whom occupants may
18        contact with concerns about the mortgaged real estate
19        or to request repairs of that property;
20            (iv) include the following language, or language
21        that is substantially similar: "This is NOT a notice to
22        vacate the premises. You may wish to contact a lawyer
23        or your local legal aid or housing counseling agency to
24        discuss any rights that you may have."; and
25            (v) include the name of the case, the case number,
26        and the court where the foreclosure action is pending;

 

 

SB1602- 31 -LRB098 09678 HEP 39825 b

1        and .
2            (vi) provide instructions on the method of payment
3        of future rent, if applicable.
4        (3) The written notice required by item (2) of this
5    subsection (a-5) shall be served by delivering a copy
6    thereof to the known occupant, or by leaving the same with
7    some person of the age of 13 years or upwards, who is
8    residing on or in possession of the premises; or by sending
9    a copy of the notice to the known occupant by first-class
10    mail, addressed to the occupant by the name known to the
11    mortgagee in possession.
12        (4) In the event that a mortgagee in possession
13    ascertains the identity and address of an occupant of a
14    dwelling unit of the mortgaged real estate more than 21
15    days after being placed in possession of the mortgaged real
16    estate pursuant to Section 15-1703, the mortgagee in
17    possession shall provide the notice required by item (2) of
18    this subsection (a-5) within 7 days of ascertaining the
19    identity and address of the occupant.
20        (5)(i) A mortgagee in possession who fails to comply
21    with items (1), (2), (3), and (4) of this subsection (a-5)
22    may not collect any rent due and owing from a known
23    occupant, or terminate a known occupant's tenancy for
24    non-payment of such rent, until the mortgagee in possession
25    has served the notice described in item (2) of this
26    subsection (a-5) upon the known occupant. After providing

 

 

SB1602- 32 -LRB098 09678 HEP 39825 b

1    such notice, the mortgagee in possession may collect any
2    and all rent accruing after service of the notice otherwise
3    due and owing the mortgagee in possession from the known
4    occupant and may terminate the known occupant's tenancy for
5    non-payment of such rent if the mortgagee in possession
6    otherwise has such right to terminate.
7        (ii) An occupant who previously paid rent for the
8    current rental period to the mortgagor, or other entity
9    with the authority to operate, manage, and conserve the
10    mortgaged real estate at the time of payment, shall not be
11    held liable for that rent by the mortgagee in possession,
12    and the occupant's tenancy shall not be terminated for
13    non-payment of rent for that rental period.
14        (6) Within 21 days of the order placing the mortgagee
15    in possession of the mortgaged real estate, the mortgagee
16    in possession shall post a written notice on the primary
17    entrance of each dwelling unit subject to the foreclosure
18    action that informs the occupants that the mortgagee in
19    possession is now operating and managing the mortgaged real
20    estate. This notice shall:
21            (i) inform occupant that the dwelling unit is the
22        subject of a foreclosure action and that control of the
23        mortgaged real estate has changed;
24            (ii) include the following language: "This is NOT a
25        notice to vacate the premises."; and
26            (iii) provide the name, address, and telephone

 

 

SB1602- 33 -LRB098 09678 HEP 39825 b

1        number of the individual or entity whom occupants may
2        contact with concerns about the mortgaged real estate
3        or to request repairs of the property; and .
4            (iv) provide instructions on the method of payment
5        of future rent, if applicable.
6        (7)(i) The provisions of item (5) of this subsection
7    (a-5) shall be the exclusive remedy for the failure of a
8    mortgagee in possession to provide notice to a known
9    occupant under this Section.
10        (ii) This Section shall not abrogate any right that a
11    mortgagee in possession may have to possession of the
12    mortgaged real estate and to maintain a proceeding against
13    an occupant of a dwelling unit for possession under Article
14    9 of this Code or subsection (h) of Section 15-1701.
15    (b) Fees and Expenses. A mortgagee in possession shall not
16be entitled to any fees for so acting, but shall be entitled to
17reimbursement for reasonable costs, expenses and third party
18management fees incurred in connection with such possession.
19(Source: P.A. 96-111, eff. 10-29-09.)
 
20    (735 ILCS 5/15-1704)  (from Ch. 110, par. 15-1704)
21    Sec. 15-1704. Receivers.
22    (a) Receiver. Notwithstanding the provisions of
23subsections (b), (c) and (d) of Section 15-1701, and except as
24provided in Section 15-1702, upon request of any party and a
25showing of good cause, the court shall appoint a receiver for

 

 

SB1602- 34 -LRB098 09678 HEP 39825 b

1the mortgaged real estate.
2    (b) Powers. A receiver appointed pursuant to this Article
3shall have possession of the mortgaged real estate and other
4property subject to the mortgage during the foreclosure, shall
5have full power and authority to operate, manage and conserve
6such property, and shall have all the usual powers of receivers
7in like cases. Without limiting the foregoing, a receiver shall
8have the power and authority to:
9        (1) secure tenants and execute leases for the real
10    estate, the duration and terms of which are reasonable and
11    customary for the type of use involved, and such leases
12    shall have the same priority as if made by the owner of the
13    real estate; but, unless approved by the Court, the
14    receiver shall not execute oil, gas or other mineral
15    leases, or (even if otherwise allowed by law) leases
16    extending beyond the time of the receiver's possession;
17    provided, however, with respect to residential real estate
18    leased by the receiver, nothing in this Section shall
19    affect the legal rights of any lessee with respect to the
20    safety and habitability of the residential real estate;
21        (2) collect the rents, issues and profits from the
22    mortgaged real estate;
23        (3) insure the mortgaged real estate against loss by
24    fire or other casualty;
25        (4) employ counsel, custodians, janitors and other
26    help; and

 

 

SB1602- 35 -LRB098 09678 HEP 39825 b

1        (5) pay taxes which may have been or may be levied
2    against the mortgaged real estate.
3    (c) Duties. A receiver appointed pursuant to this Article
4must manage the mortgaged real estate as would a prudent
5person, taking into account the effect of the receiver's
6management on the interest of the mortgagor. A receiver may,
7without an order of the court, delegate managerial functions to
8a person in the business of managing real estate of the kind
9involved who is financially responsible, not related to the
10mortgagee or receiver and prudently selected. However, the
11receiver shall remain responsible to the mortgagor or other
12persons for the acts or omissions of such management agent.
13When fees are paid to such a management agent, the receiver's
14fees may be adjusted to the extent the court deems appropriate.
15In managing the mortgaged real estate and other property
16subject to the mortgage, a receiver or receiver's delegate, to
17the extent the receiver receives sufficient receipts from the
18mortgaged real estate, such other property or other sources,
19except to the extent ordered otherwise by the court:
20        (1) shall maintain the existing casualty and liability
21    insurance required in accordance with the mortgage or
22    applicable to the real estate and other property subject to
23    the mortgage at the time the receiver took possession;
24        (2) shall use reasonable efforts to maintain the real
25    estate and other property subject to the mortgage in at
26    least as good condition as existed at the time the receiver

 

 

SB1602- 36 -LRB098 09678 HEP 39825 b

1    took possession, excepting reasonable wear and tear and
2    damage by any casualty;
3        (2.5) shall accept all rental payments from an occupant
4    of the mortgaged property, and any payments from a third
5    party or any rental assistance program in support of an
6    occupant's housing;
7        (3) shall apply receipts to payment of ordinary
8    operating expenses, including royalties, rents and other
9    expenses of management;
10        (4) shall pay any shared or common expense assessments
11    due to any association of owners of interests in real
12    estate to the extent that such assessments are or may
13    become a lien against the mortgaged real estate;
14        (5) may pay the amounts due under any mortgage if the
15    mortgagee thereof is not a party in the foreclosure;
16        (6) may carry such additional casualty and liability
17    insurance as is reasonably available and reasonable as to
18    amounts and risks covered;
19        (7) may make other repairs and improvements necessary
20    to comply with building, housing, and other similar codes
21    or with existing contractual obligations affecting the
22    mortgaged real estate;
23        (8) may hold receipts as reserves reasonably required
24    for the foregoing purposes; and
25        (9) may take such other actions as may be reasonably
26    necessary to conserve the mortgaged real estate and other

 

 

SB1602- 37 -LRB098 09678 HEP 39825 b

1    property subject to the mortgage, or as otherwise
2    authorized by the court.
3    (d) Allocation of Receipts. Receipts received from
4operation of the real estate and other property subject to the
5mortgage by the receiver shall be applied in the following
6order of priority.
7        (1) to reimbursement of the receiver for all reasonable
8    costs and expenses incurred by the receiver or the
9    receiver's delegates;
10        (2) to payment of insurance premiums authorized in
11    paragraph (1) of subsection (c) of Section 15-1704;
12        (3) to payment of the receiver's delegates of any
13    reasonable management fees for managing real estate of the
14    type involved;
15        (4) to payment of receiver's fees allowed by the court;
16        (5) to payment of expenses authorized in paragraphs
17    (2), (3) and (4) of subsection (c) of Section 15-1704;
18        (6) to payment of amounts authorized in paragraph (5)
19    of subsection (c) of Section 15-1704;
20        (7) to payment of expenses authorized in paragraphs (6)
21    and (7) of subsection (c) of Section 15-1704; and
22        (8) the balance, if any, shall be held or disbursed as
23    ordered by the court.
24    (e) Non-Liability for Allocations. A receiver shall in no
25event be liable to any person for the allocation of, or failure
26to allocate, receipts to possible expenditures within the same

 

 

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1priority category.
2    (f) Notice to occupants.
3        (1) Following an order appointing a receiver pursuant
4    to Section 15-1704, but no later than 21 days after the
5    entry of such order, the appointed receiver shall make a
6    good faith effort to ascertain the identities and addresses
7    of all occupants of dwelling units of the mortgaged real
8    estate.
9        (2) Following an order appointing a receiver pursuant
10    to Section 15-1704, but no later than 21 days after the
11    entry of such order, the appointed receiver shall notify
12    all known occupants of dwelling units of the mortgaged real
13    estate that the receiver has been appointed receiver of the
14    mortgaged real estate. Such notice shall be in writing and
15    shall:
16            (i) identify the occupant being served by the name
17        known to the receiver;
18            (ii) inform the occupant that the mortgaged real
19        estate at which the dwelling unit is located is the
20        subject of a foreclosure action and that control of the
21        mortgaged real estate has changed;
22            (iii) provide the name, address, and telephone
23        number of the individual or entity whom occupants may
24        contact with concerns about the mortgaged real estate
25        or to request repairs of that property;
26            (iv) include the following language, or language

 

 

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1        that is substantially similar: "This is NOT a notice to
2        vacate the premises. You may wish to contact a lawyer
3        or your local legal aid or housing counseling agency to
4        discuss any rights that you may have."; and
5            (v) include the name of the case, the case number,
6        and the court where the foreclosure action is pending;
7        and .
8            (vi) provide instructions on the method of payment
9        of future rent, if applicable.
10        (3) The written notice required by item (2) of this
11    subsection (f) shall be served by delivering a copy thereof
12    to the known occupant, or by leaving the same with some
13    person of the age of 13 years or upwards, who is residing
14    on or in possession of the premises; or by sending a copy
15    of the notice to the known occupant by first-class mail,
16    addressed to the occupant by the name known to the
17    receiver.
18        (4) In the event that a receiver ascertains the
19    identity and address of an occupant of a dwelling unit of
20    the mortgaged real estate more than 21 days after
21    appointment pursuant to Section 15-1704, the receiver
22    shall provide the notice required by item (2) of this
23    subsection (f) within 7 days of ascertaining the identity
24    and address of the occupant.
25        (5)(i) A receiver who fails to comply with items (1),
26    (2), (3), and (4) of this subsection (f) may not collect

 

 

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1    any rent due and owing from a known occupant, or terminate
2    a known occupant's tenancy for non-payment of such rent,
3    until the receiver has served the notice described in item
4    (2) of this subsection (f) upon the known occupant. After
5    providing such notice, the receiver may collect any and all
6    rent accruing after service of the notice otherwise due and
7    owing the receiver from the known occupant and may
8    terminate the known occupant's tenancy for non-payment of
9    such rent if the receiver otherwise has such right to
10    terminate.
11        (ii) An occupant who previously paid rent for the
12    current rental period to the mortgagor, or other entity
13    with the authority to operate, manage, and conserve the
14    mortgaged real estate at the time of payment, shall not be
15    held liable for that rent by the receiver, and the
16    occupant's tenancy shall not be terminated for non-payment
17    of rent for that rental period.
18        (6) Within 21 days of appointment, the receiver shall
19    post a written notice on the primary entrance of each
20    dwelling unit subject to the foreclosure action that
21    informs occupants that the receiver has been appointed to
22    operate and manage the property. This notice shall:
23            (i) inform occupant that the dwelling unit is the
24        subject of a foreclosure action and that control of the
25        mortgaged real estate has changed;
26            (ii) include the following language: "This is NOT a

 

 

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1        notice to vacate the premises."; and
2            (iii) provide the name, address, and telephone
3        number of the individual or entity whom occupants may
4        contact with concerns about the mortgaged real estate
5        or to request repairs of the property; and .
6            (iv) provide instructions on the method of payment
7        of future rent, if applicable.
8        (7)(i) The provisions of item (5) of this subsection
9    (f) shall be the exclusive remedy for the failure of a
10    receiver to provide notice to a known occupant under this
11    Section.
12        (ii) This Section shall not abrogate any right that a
13    receiver may have to possession of the mortgaged real
14    estate and to maintain a proceeding against an occupant of
15    a dwelling unit for possession under Article 9 of this Code
16    or subsection (h) of Section 15-1701.
17    (g) Increase of rents. Notwithstanding any other provision
18of this Article, a receiver shall not charge an occupant of the
19mortgaged real estate a rental amount above that which the
20occupant had been paying for use and occupancy of the mortgaged
21real estate prior to the appointment of a receiver without
22leave of court. The court may allow an increase of rent if,
23upon motion by the receiver, the court finds by a preponderance
24of the evidence, that the increase of rent is necessary to
25operate, manage, and conserve the mortgaged real estate
26pursuant to this Section. A list of the current rents for each

 

 

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1unit in the mortgaged real estate, and a list of the proposed
2rent increase for each of those units, must be attached to a
3motion for a rent increase under this subsection (g). All
4occupants of the mortgaged real estate who may be affected by
5the motion for a rent increase, if not otherwise entitled to
6notice, shall be notified in writing of the nature of the
7motion, the date and time of the motion, and the court where
8the motion will be heard. Such notice shall be by personal
9service or first-class mail. In the event that the receiver and
10an occupant of a dwelling unit agree to a rent increase for
11that dwelling unit, the receiver is excused from the
12requirements of this subsection (g) as to that dwelling unit.
13Nothing in this subsection (g) shall alter the terms of any
14lease agreement.
15    (h) Removal. The court may remove a receiver upon a showing
16of good cause, in which case a new receiver may be appointed in
17accordance with subsection (b) of Section 15-1702 and
18subsection (a) of Section 15-1704.
19(Source: P.A. 96-111, eff. 10-29-09.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.