093_SB1149eng

 
SB1149 Engrossed                     LRB093 07023 DRH 07174 b

 1        AN ACT in 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 21 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 certified check, the number of days is
19    reduced to 5 business  days.  If  the  owner  desires  a  new
20    certificate  reflecting  no lien, the certificate and release
21    from the lienholder may be  submitted  to  the  Secretary  of
22    State,  along  with  the  prescribed application and required
23    fee, for issuance of that new certificate.
24        (b)  Within 21 days after receiving  payment  to  satisfy
25    Upon the satisfaction of a security interest in a vehicle for
26    which  the  certificate  of  title  is in the possession of a
27    prior lienholder, the lienholder whose security  interest  is
28    satisfied shall within ten (10) days after demand and, in any
29    event,  within thirty (30) days execute a release and deliver
30    the release to the owner or any person who  delivers  to  the
31    lienholder  an authorization from the owner to receive it. If
 
SB1149 Engrossed            -2-      LRB093 07023 DRH 07174 b
 1    the payment is in the form of cash, a cashier's check,  or  a
 2    certified  check, the number of days is reduced to 5 business
 3    days. The lienholder in  possession  of  the  certificate  of
 4    title may either deliver the certificate to the owner, or the
 5    person  authorized  by  him, for delivery to the Secretary of
 6    State, or, upon receipt of  the  release,  may  mail  or  may
 7    deliver  the  certificate  and release, along with prescribed
 8    application and require fee, to the Secretary of  State,  who
 9    shall issue a new certificate.
10        (c)  Any lienholder who fails to execute a release of his
11    or  her security interest or who fails to mail or deliver the
12    certificate and release within the  time  limit  provided  in
13    subsection  (a) or (b) is guilty of a petty offense and shall
14    be fined $250.
15        (d)  In addition to any other penalty, a  lienholder  who
16    fails to execute a release of his or her security interest or
17    who  fails  to  mail  or  deliver the certificate and release
18    within the time limit provided in subsection (a)  or  (b)  is
19    liable  to  the person or entity that was supposed to receive
20    the release or certificate for $250 plus  attorney  fees  and
21    court  costs.  An action under this Section may be brought in
22    small claims court or in any other appropriate court.
23    (Source: P.A. 81-557.)

24        Section 99.  Effective date.  This Act takes effect  upon
25    becoming law.