Full Text of HB5854 98th General Assembly
HB5854 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5854 Introduced , by Rep. Ed Sullivan, Jr. SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that certain tax liens are assignable. Provides that such an assignment of a tax lien does not alter the priority of the lien.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by adding | 5 | | Section 21-26 as follows: | 6 | | (35 ILCS 200/21-26 new) | 7 | | Sec. 21-26. Assignment of real property tax lien. | 8 | | (a) As used in this Section, "assignee" means any | 9 | | individual, firm, partnership, limited liability company, | 10 | | association, corporation, or any group or combination acting as | 11 | | a unit to whom an assignment of a tax lien is authorized | 12 | | pursuant to subsection (b) of this Section. | 13 | | (b) Notwithstanding any other provision of law, the | 14 | | treasurer of the county in which real property is located shall | 15 | | assign a tax lien against real property that arises pursuant to | 16 | | Section 21-75 to an assignee if the county treasurer receives: | 17 | | (1) a written authorization to assign the lien to an | 18 | | assignee signed by the owner of the real property; | 19 | | (2) payment by the assignee in the amount of the taxes, | 20 | | fees, interest, and penalties due and owing on the real | 21 | | property; and | 22 | | (3) a $25 processing fee made payable to the county | 23 | | treasurer. |
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| 1 | | (c) The owner of the real property and the assignee may | 2 | | enter into an agreement for payment of all amounts secured by | 3 | | the tax lien, including: | 4 | | (1) the total amounts paid as consideration for the | 5 | | assignment under paragraph (2) of subsection (b) of this | 6 | | Section; | 7 | | (2) all transaction costs reasonably and necessarily | 8 | | incurred by the assignee, which shall not exceed $400 for | 9 | | homestead properties, as defined by subsection (f) of | 10 | | Section 15-175; | 11 | | (3) interest at a rate not to exceed the rate | 12 | | prescribed in Section 21-15 on the total of the amounts | 13 | | provided for in paragraphs (1) and (2) of this subsection; | 14 | | and | 15 | | (4) any costs reasonably and necessarily incurred by | 16 | | the assignee to enforce, collect on, or release the | 17 | | agreement or the assigned lien; costs described in this | 18 | | paragraph include, but are not limited to, attorney's fees | 19 | | and costs incurred relating to foreclosure if the owner | 20 | | does not redeem the lien or otherwise fails to perform in | 21 | | accordance with the agreement. | 22 | | (d) Upon receipt of the items listed in subsection (b), the | 23 | | county treasurer shall assign the lien to the assignee by | 24 | | issuing the assignee a document acknowledging the assignment, | 25 | | which shall include the amount paid by the assignee, the legal | 26 | | description and parcel numbers of the property, and the name |
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| 1 | | and mailing address of the assignee. | 2 | | The assignment of a tax lien pursuant to this Section does | 3 | | not alter the priority of the lien provided in Section 21-75. | 4 | | (e) The assignee shall, within a reasonable period of time, | 5 | | cause to be recorded with the county recorder of the county in | 6 | | which the property is located a copy of the document | 7 | | acknowledging the assignment issued by the county treasurer | 8 | | pursuant to subsection (d) of this Section. The recordation | 9 | | shall constitute prima facie evidence of the valid assignment | 10 | | and priority of the property tax lien assigned pursuant to this | 11 | | Section. | 12 | | (f) If additional taxes become delinquent on real property | 13 | | subject to an agreement entered into pursuant to this Section | 14 | | while the assigned tax lien that is the subject of the | 15 | | agreement remains unsatisfied by the owner of the property, the | 16 | | tax collector shall assign the lien for the additional taxes to | 17 | | the assignee if the tax collector receives the items required | 18 | | in subsection (b) of this Section. | 19 | | (g) If the property owner defaults on the payment | 20 | | agreement, the assignee of the tax lien may foreclose in the | 21 | | same manner as provided in Article 15 of the Illinois Code of | 22 | | Civil Procedure, except that no action to foreclose may be | 23 | | brought prior to the date on which a lien would have been | 24 | | subject to foreclosure under section 21-75(a) had the taxes not | 25 | | been paid by the assignee and remained delinquent. At least 60 | 26 | | days before commencing an action to foreclose the assigned |
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| 1 | | lien, the assignee shall provide notice to the holder of a | 2 | | recorded mortgage lien. The assignee shall not recover a fee in | 3 | | connection with a foreclosure action if the fee is incurred | 4 | | within thirty days of the date of the notice required by this | 5 | | subsection. Upon receipt of the notice, the holder or servicer | 6 | | of the recorded first lien may obtain a release of the lien by | 7 | | paying the assignee the amount due under the payment agreement | 8 | | described in subsection (c) of this Section. | 9 | | If a foreclosure sale of the property results in proceeds | 10 | | in excess of the amounts owing to an assignee under the payment | 11 | | agreement between the property owner and the assignee, the | 12 | | excess moneys shall be distributed to each person that proves | 13 | | itself entitled to the proceeds, in order of priority, and any | 14 | | remaining balance shall be paid to the former owner. The | 15 | | assignee shall not be entitled to or receive any payment in | 16 | | excess of amounts due under the payment agreement provided for | 17 | | in this Section. | 18 | | (h) If an assignee receives full satisfaction of the | 19 | | amounts due in connection with the assigned tax lien, the | 20 | | assignee shall record a release of the tax lien with the county | 21 | | recorder of the county in which the property is located. The | 22 | | assignee shall provide written notification of the release of | 23 | | the tax lien to the county treasurer.
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