Full Text of HB6113 096th General Assembly
HB6113eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning professional regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Foreclosed Home Receiver License Act. | 6 |
| Section 5. Purpose. The intent of the General Assembly in | 7 |
| enacting this Act is to evaluate the competency of persons, | 8 |
| including any entity, engaged in the foreclosed home receiver | 9 |
| business and to regulate and license those persons engaged in | 10 |
| this business for the protection of the public. | 11 |
| Section 10. Definitions. In this Act: | 12 |
| "Bank" means any person doing a banking business whether | 13 |
| subject to the laws of this State or any other jurisdiction. | 14 |
| "Department" means the Department of Financial and | 15 |
| Professional Regulation. | 16 |
| "Home" means real property that is used or intended to be | 17 |
| used as the principal place of residence of one or more | 18 |
| individuals. | 19 |
| "Foreclosed home receiver" means any person who acts as a | 20 |
| receiver of a home foreclosed on by a bank or trust or any | 21 |
| person to whom a receiver delegates managerial functions | 22 |
| concerning a home foreclosed on by a bank or trust. |
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| "Licensee" means a foreclosed home receiver licensed under | 2 |
| this Act. | 3 |
| "Person" means an individual, corporation, limited | 4 |
| liability company, partnership, joint venture, trust, estate, | 5 |
| or unincorporated association. | 6 |
| "Secretary" means the Secretary of Financial and | 7 |
| Professional Regulation. | 8 |
| "Trust" means any trust company or any other corporation | 9 |
| qualified to act as a fiduciary in this State. | 10 |
| Section 15. Exemptions. A full or part-time employee of a | 11 |
| bank or trust who acts as a receiver of homes foreclosed on by | 12 |
| that bank or trust shall be exempt from licensure under this | 13 |
| Act, but must comply with Section 23 of this Act. | 14 |
| Section 20. Unlicensed practice; civil penalty. | 15 |
| (a) Any person who practices, offers to practice, attempts | 16 |
| to practice, or holds himself or herself out to practice as a | 17 |
| foreclosed home receiver without being licensed under this Act | 18 |
| shall, in addition to any other penalty provided by law, pay a | 19 |
| civil penalty to the Department in an amount not to exceed | 20 |
| $10,000 for each offense as determined by the Department. The | 21 |
| civil penalty shall be assessed by the Department after a | 22 |
| hearing is held in accordance with the provisions set forth in | 23 |
| this Act regarding the provision of a hearing for the | 24 |
| discipline of a licensee. |
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| (b) Any licensee under this Act who delegates managerial | 2 |
| functions related to the foreclosed home to a person who is not | 3 |
| licensed under this Act shall, in addition to any other penalty | 4 |
| provided by law, pay a civil penalty to the Department in an | 5 |
| amount not to exceed $10,000 for each offense as determined by | 6 |
| the Department. The civil penalty shall be assessed by the | 7 |
| Department after a hearing is held in accordance with the | 8 |
| provisions set forth in this Act regarding the provision of a | 9 |
| hearing for the discipline of a licensee. | 10 |
| (c) The Department has the authority and power to | 11 |
| investigate any and all unlicensed activities. | 12 |
| (d) The civil penalty imposed under this Section must be | 13 |
| paid within 60 days after the effective date of the order | 14 |
| imposing the civil penalty. The order shall constitute a | 15 |
| judgment and may be filed and execution had thereon in the same | 16 |
| manner as any judgment from any court of record. | 17 |
| Section 23. Personal property requirements; public | 18 |
| posting. | 19 |
| (a) If a foreclosed home receiver takes possession of a | 20 |
| foreclosed home, then the foreclosed home receiver shall hold | 21 |
| onto and preserve all remaining personal property of the | 22 |
| mortgagor or former occupant for at least 30 days or until the | 23 |
| mortgagor or occupant releases his or her claim to his or her | 24 |
| property in writing, whichever is sooner. The Department may by | 25 |
| rule afford exceptions to the requirements of this subsection |
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| (a) for perishable items, such as food, or other items that the | 2 |
| Department determines may pose a health risk to the public or | 3 |
| may risk damage to other personal property or the home itself. | 4 |
| (b) The foreclosed home receiver may keep the remaining | 5 |
| personal property in the home or store the personal property at | 6 |
| another location which shall be reasonably accessible to the | 7 |
| public. A mortgagor or former occupant may reclaim his or her | 8 |
| personal property free of charge at this location. | 9 |
| (c) Upon possession of the foreclosed home, the foreclosed | 10 |
| home receiver shall make a public posting at the entrance of | 11 |
| the home that notifies the mortgagor or any occupant of the | 12 |
| following: | 13 |
| (1) The contact information of the receiver, including | 14 |
| phone number and address. | 15 |
| (2) The full name of the specific individual who is | 16 |
| responsible for preserving his or her personal property and | 17 |
| the location at which the personal property is stored and | 18 |
| may be reclaimed by the mortgagor or occupant, free of | 19 |
| charge. | 20 |
| (3) The phone number of the Consumer Fraud Hotline of | 21 |
| the Illinois Attorney General. | 22 |
| The public posting shall include the following language in | 23 |
| 12-point boldface capitalized type: | 24 |
| THIS HOME HAS BEEN FORECLOSED. | 25 |
| THE PERSONAL PROPERTY WITHIN THE HOME MAY BE REDEEMED |
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| WITHIN 30 DAYS OF THIS POSTING. | 2 |
| DO NOT ENTER THIS HOME - VIOLATORS ARE SUBJECT TO | 3 |
| ARREST FOR CRIMINAL TRESPASS. | 4 |
| ARRANGEMENTS TO REDEEM THE PERSONAL PROPERTY INSIDE | 5 |
| THE HOME MAY BE MADE BY CONTACTING: | 6 |
| The requirements of this subsection (c) are in addition to | 7 |
| any other provision of State law related to the public posting | 8 |
| of information that applies to a foreclosed home receiver. | 9 |
| Section 25. Powers and duties of the Department. | 10 |
| (a) The Department shall exercise the powers and duties | 11 |
| prescribed by the Civil Administrative Code of Illinois for the | 12 |
| administration of licensing Acts and shall exercise the powers | 13 |
| and duties vested in it by this Act. | 14 |
| (b) The Department shall adopt rules necessary for the | 15 |
| administration and enforcement of this Act, including rules | 16 |
| concerning the standards and criteria for licensure, payment of | 17 |
| applicable fees, and hearings. | 18 |
| (c) The Department must prescribe forms required for the | 19 |
| administration of this Act. | 20 |
| Section 35. Licensure requirements. | 21 |
| (a) Every person applying to the Department for licensure | 22 |
| must do so in writing on forms prescribed by the Department and | 23 |
| pay the required nonrefundable fee. The application shall | 24 |
| include without limitation all of the following information: |
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| (1) The name, principal place of business, address, and | 2 |
| telephone number of the applicant. | 3 |
| (2) Verification satisfactory to the Department that | 4 |
| the applicant is at least 18 years of age. | 5 |
| (3) Verification satisfactory to the Department that | 6 |
| the applicant does not have a criminal record. | 7 |
| (b) The Department may establish further requirements for | 8 |
| registration by rule. | 9 |
| Section 40. Current address. Every licensee under this Act | 10 |
| must maintain a current address with the Department. It shall | 11 |
| be the responsibility of the licensee to notify the Department | 12 |
| in writing of any change of address. | 13 |
| Section 45. Renewal; restoration; military service. | 14 |
| (a) The expiration date and renewal period for each license | 15 |
| issued under this Act shall be set by the Department by rule. | 16 |
| (b) Any person who has permitted his or her license to | 17 |
| expire may have his or her license restored by applying to the | 18 |
| Department, filing proof acceptable to the Department of his or | 19 |
| her fitness to have the license restored, which may include | 20 |
| sworn evidence certifying to active practice in another | 21 |
| jurisdiction satisfactory to the Department, and paying the | 22 |
| required restoration fee. If the person has not maintained an | 23 |
| active practice in another jurisdiction satisfactory to the | 24 |
| Department, then the Department shall determine, by an |
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| evaluation program established by rule, the person's fitness to | 2 |
| resume active status and may require the successful completion | 3 |
| of an examination. | 4 |
| (c) Any person whose license has expired while he or she | 5 |
| has been engaged (i) in federal service on active duty with the | 6 |
| Armed Forces of the United States or the State Militia called | 7 |
| into service or training or (ii) in training or education under | 8 |
| the supervision of the United States preliminary to induction | 9 |
| into the military service, may have his or her license renewed | 10 |
| or restored without paying any lapsed renewal fees if, within 2 | 11 |
| years after termination of service, training, or education, | 12 |
| other than by dishonorable discharge, he or she furnishes the | 13 |
| Department with satisfactory evidence to the effect that he or | 14 |
| she has been so engaged and that the service, training, or | 15 |
| education has been so terminated. | 16 |
| Section 50. Inactive status. | 17 |
| (a) Any person who notifies the Department in writing on | 18 |
| forms prescribed by the Department may elect to place his or | 19 |
| her license on inactive status and shall be excused from | 20 |
| payment of renewal fees until he or she notifies the Department | 21 |
| in writing of his or her desire to resume active status. | 22 |
| (b) Any person whose license has been expired for more than | 23 |
| 3 years may have his or her certificate restored by making | 24 |
| application to the Department and filing proof acceptable to | 25 |
| the Department of his or her fitness to have his or her license |
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| restored, including evidence certifying to active practice in | 2 |
| another jurisdiction, and by paying the required restoration | 3 |
| fee. | 4 |
| (c) Any licensee whose license is on inactive status, has | 5 |
| been suspended or revoked, or has expired may not represent | 6 |
| himself or herself to be a licensed foreclosed home receiver or | 7 |
| use the title "licensed foreclosed home receiver". | 8 |
| Section 55. Fees; disposition of funds. | 9 |
| (a) The Department shall establish by rule a schedule of | 10 |
| fees for the administration and maintenance of this Act. Such | 11 |
| fees shall be nonrefundable. | 12 |
| (b) All fees and fines collected pursuant to this Act shall | 13 |
| be deposited in the General Professions Dedicated Fund. All | 14 |
| moneys deposited into the Fund may be used for the expenses of | 15 |
| the Department in the administration of this Act. | 16 |
| Section 60. Roster. The Department shall maintain a roster | 17 |
| of the names and addresses of all licensees under this Act. | 18 |
| This roster shall be made available upon written request and | 19 |
| payment of the required fee. | 20 |
| Section 65. Advertising. Any person licensed under this Act | 21 |
| may advertise the availability of professional services in the | 22 |
| public media or on the premises where such professional | 23 |
| services are rendered, provided that such advertising is |
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| truthful and not misleading. | 2 |
| Section 70. Injunction; criminal penalty; cease and desist | 3 |
| order. | 4 |
| (a) If any person violates the provisions of this Act, the | 5 |
| Secretary may, in the name of the People of the State of | 6 |
| Illinois and through the Attorney General or the State's | 7 |
| Attorney of any county in which the action is brought, petition | 8 |
| for an order enjoining such violation and for an order | 9 |
| enforcing compliance with this Act. Upon the filing of a | 10 |
| verified petition in court, the court may issue a temporary | 11 |
| restraining order, without notice or bond, and may | 12 |
| preliminarily and permanently enjoin such violation. If it is | 13 |
| established that such person has violated or is violating the | 14 |
| injunction, the Court may punish the offender for contempt of | 15 |
| court. Proceedings under this Section shall be in addition to, | 16 |
| and not in lieu of, all other remedies and penalties provided | 17 |
| by this Act. | 18 |
| (b) If any person holds himself or herself out as a | 19 |
| "licensed foreclosed home receiver" without being licensed | 20 |
| under the provisions of this Act, then any interested party or | 21 |
| person injured thereby may, in addition to the Secretary, | 22 |
| petition for relief as provided in subsection (a) of this | 23 |
| Section. | 24 |
| (c) Whoever holds himself or herself out as a "licensed | 25 |
| foreclosed home receiver" in this State without being licensed |
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| for that purpose is guilty of a Class A misdemeanor, and for | 2 |
| each subsequent conviction, is guilty of a Class 4 felony. | 3 |
| (d) Whenever, in the opinion of the Department, a person | 4 |
| violates any provision of this Act, the Department may issue a | 5 |
| rule to show cause why an order to cease and desist should not | 6 |
| be entered against that person. The rule shall clearly set | 7 |
| forth the grounds relied upon by the Department and shall allow | 8 |
| the person at least 7 days after the date of the rule to file an | 9 |
| answer that is satisfactory to the Department. Failure to | 10 |
| answer to the satisfaction of the Department shall cause an | 11 |
| order to cease and desist to be issued. | 12 |
| Section 75. Disciplinary grounds. | 13 |
| (a) The Department may refuse to issue or renew, or may | 14 |
| revoke, suspend, place on probation, reprimand, or take other | 15 |
| disciplinary action as the Department considers appropriate, | 16 |
| including the issuance of fines not to exceed $10,000 for each | 17 |
| violation, with regard to any license for any one or more of | 18 |
| the following causes: | 19 |
| (1) Violation of this Act or any rule adopted under | 20 |
| this Act. | 21 |
| (2) Conviction of any crime under the laws of any U.S. | 22 |
| jurisdiction that is a felony or a misdemeanor an essential | 23 |
| element of which is dishonesty or that directly relates to | 24 |
| the practice of the profession. | 25 |
| (3) Making any misrepresentation for the purpose of |
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| obtaining a license. | 2 |
| (4) Professional incompetence or gross negligence in
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| the practice of building contracting. | 4 |
| (5) Gross malpractice, prima facie evidence of which | 5 |
| may be a conviction or judgment of malpractice in any court | 6 |
| of competent jurisdiction. | 7 |
| (6) Aiding or assisting another person in violating
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| provision of this Act or any rule adopted under this Act. | 9 |
| (7) Failing, within 60 days, to provide information in
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| response to a written request made by the Department that | 11 |
| has been sent by certified mail to the licensee's last | 12 |
| known address. | 13 |
| (8) Engaging in dishonorable, unethical, or
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| unprofessional conduct of a character likely to deceive, | 15 |
| defraud, or harm the public. | 16 |
| (9) Habitual or excessive use of or addiction to
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| alcohol, narcotics, stimulants, or any other chemical | 18 |
| agent or drug that results in the inability to practice | 19 |
| with reasonable judgment, skill, or safety. | 20 |
| (10) Discipline by another U.S. jurisdiction or | 21 |
| foreign nation, if at least one of the grounds for the | 22 |
| discipline is the same or substantially equivalent to those | 23 |
| set forth in this Section. | 24 |
| (11) Directly or indirectly giving to or receiving
from | 25 |
| any person, firm, corporation, partnership, or association | 26 |
| any fee, commission, rebate, or other form of compensation |
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| for any professional service not actually rendered. | 2 |
| (12) A finding by the Department that a licensee, after | 3 |
| having his or her license placed on probationary status, | 4 |
| has violated the terms of probation. | 5 |
| (13) Conviction by any court of competent | 6 |
| jurisdiction, either within or without this State, of any | 7 |
| violation of any law governing the practice of building | 8 |
| contracting if the Department determines, after | 9 |
| investigation, that such person has not been sufficiently | 10 |
| rehabilitated to warrant the public trust. | 11 |
| (14) A finding that registration has been applied for | 12 |
| or obtained by fraudulent means. | 13 |
| (15) Practicing, attempting to practice, or | 14 |
| advertising under a name other than the full name as shown | 15 |
| on the license or any other legally authorized name. | 16 |
| (16) Gross and willful overcharging for professional | 17 |
| services, including filing false statements for collection | 18 |
| of fees or moneys for which services are not rendered. | 19 |
| (17) Failure to file a return, to pay the tax, penalty, | 20 |
| or interest shown in a filed return, or to pay any final | 21 |
| assessment of tax, penalty, or interest as required by any | 22 |
| tax Act administered by the Department of Revenue, until | 23 |
| such time as the requirements of the tax Act are satisfied | 24 |
| in accordance with subsection (g) of Section 15 of the | 25 |
| Department of Professional Regulation Law of the Civil | 26 |
| Administrative Code of Illinois (20 ILCS 2105/2105-15). |
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| (18) Failure to continue to meet the requirements of | 2 |
| this Act. | 3 |
| (19) Material misstatement in furnishing information | 4 |
| to the Department or to any other State agency. | 5 |
| (20) Advertising in any manner that is false, | 6 |
| misleading, or deceptive. | 7 |
| (b) In enforcing this Section, the Department, upon a | 8 |
| showing of a possible violation, may order a licensee or | 9 |
| applicant to submit to a mental or physical examination, or | 10 |
| both, at the expense of the Department. The Department may | 11 |
| order the examining physician to present testimony concerning | 12 |
| his or her examination of the licensee or applicant. No | 13 |
| information shall be excluded by reason of any common law or | 14 |
| statutory privilege relating to communications between the | 15 |
| licensee or applicant and the examining physician. The | 16 |
| examining physicians shall be specifically designated by the | 17 |
| Department. The licensee or applicant may have, at his or her | 18 |
| own expense, another physician of his or her choice present | 19 |
| during all aspects of the examination. Failure of a licensee or | 20 |
| applicant to submit to any such examination when directed, | 21 |
| without reasonable cause as defined by rule, shall be grounds | 22 |
| for either the immediate suspension of his or her license or | 23 |
| immediate denial of his or her application. | 24 |
| If the Secretary immediately suspends the license of a | 25 |
| licensee for his or her failure to submit to a mental or | 26 |
| physical examination when directed, a hearing must be convened |
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| by the Department within 15 days after the suspension and | 2 |
| completed without appreciable delay. | 3 |
| If the Secretary otherwise suspends a license pursuant to | 4 |
| the results of the licensee's mental or physical examination, a | 5 |
| hearing must be convened by the Department within 15 days after | 6 |
| the suspension and completed without appreciable delay. The | 7 |
| Department shall have the authority to review the licensee's | 8 |
| record of treatment and counseling regarding the relevant | 9 |
| impairment or impairments to the extent permitted by applicable | 10 |
| federal statutes and regulations safeguarding the | 11 |
| confidentiality of medical records. | 12 |
| Any licensee suspended under this subsection (b) shall be | 13 |
| afforded an opportunity to demonstrate to the Department that | 14 |
| he or she can resume practice in compliance with the acceptable | 15 |
| and prevailing standards under the provisions of his or her | 16 |
| license. | 17 |
| (c) The Department shall deny a license or renewal | 18 |
| authorized by this Act to a person who has defaulted on an | 19 |
| educational loan or scholarship provided or guaranteed by the | 20 |
| Illinois Student Assistance Commission or any governmental | 21 |
| agency of this State in accordance with subdivision (a)(5) of | 22 |
| Section 15 of the Department of Professional Regulation Law of | 23 |
| the Civil Administrative Code of Illinois (20 ILCS | 24 |
| 2105/2105-15). | 25 |
| (d) In cases where the Department of Healthcare and Family | 26 |
| Services (formerly the Department of Public Aid) has previously |
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| determined that a licensee or a potential licensee is more than | 2 |
| 30 days delinquent in the payment of child support and has | 3 |
| subsequently certified the delinquency to the Department, the | 4 |
| Department may refuse to issue or renew or may revoke or | 5 |
| suspend that person's license or may take other disciplinary | 6 |
| action against that person based solely upon the certification | 7 |
| of delinquency made by the Department of Healthcare and Family | 8 |
| Services in accordance with subdivision (a)(5) of Section 15 of | 9 |
| the Department of Professional Regulation Law of the Civil | 10 |
| Administrative Code of Illinois (20 ILCS 2105/2105-15). | 11 |
| Section 80. Investigation; notice of hearing. The | 12 |
| Department may investigate the actions or qualifications of any | 13 |
| applicant or person holding or claiming to hold a license. The | 14 |
| Department shall, before suspending or revoking, placing on | 15 |
| probation, reprimanding, or taking any other disciplinary | 16 |
| action under Section 75 of this Act, at least 30 days before | 17 |
| the date set for the hearing, notify the applicant or licensee | 18 |
| in writing of the nature of the charges and that a hearing will | 19 |
| be held on the date designated. The written notice may be | 20 |
| served by personal delivery or certified mail to the applicant | 21 |
| or licensee at the address of his or her last notification to | 22 |
| the Department. The Department shall direct the applicant or | 23 |
| licensee to file a written answer with the Department, under | 24 |
| oath, within 20 days after the service of the notice, and | 25 |
| inform the person that if he or she fails to file an answer, |
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| his or her certificate may be revoked, suspended, placed on | 2 |
| probation, reprimanded, or the Department may take any other | 3 |
| additional disciplinary action, including the issuance of | 4 |
| fines not to exceed $1,000 for each violation, as the | 5 |
| Department may consider necessary, without a hearing. At the | 6 |
| time and place fixed in the notice, the Department shall | 7 |
| proceed to hear the charges and the parties or their counsel. | 8 |
| All parties shall be afforded an opportunity to present any | 9 |
| statements, testimony, evidence, and arguments as may be | 10 |
| pertinent to the charges or to their defense. The Department | 11 |
| may continue the hearing from time to time. | 12 |
| Section 120. Restoration of suspended or revoked license. | 13 |
| At any time after the suspension or revocation of any license, | 14 |
| the Department may restore it to the licensee, unless after an | 15 |
| investigation and hearing, the Department determines that | 16 |
| restoration is not in the public interest. | 17 |
| Section 125. Surrender of license. Upon the revocation or | 18 |
| suspension of any license, the licensee shall immediately | 19 |
| surrender his or her certificate to the Department. If the | 20 |
| licensee fails to do so, the Department has the right to seize | 21 |
| the certificate. | 22 |
| Section 130. Summary suspension of a license. The Secretary | 23 |
| may summarily suspend a license issued under this Act without a |
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| hearing, simultaneously with the institution of proceedings | 2 |
| for a hearing provided for in this Act, if the Secretary finds | 3 |
| that evidence in the possession of the Secretary indicates that | 4 |
| the continuation in practice by the licensee would constitute | 5 |
| an imminent danger to the public. In the event that the | 6 |
| Secretary temporarily suspends the license of an individual | 7 |
| without a hearing, a hearing must be held within 30 days after | 8 |
| such suspension has occurred. | 9 |
| Section 135. Administrative Review Law; venue. | 10 |
| (a) All final administrative decisions of the Department | 11 |
| are subject to judicial review under the Administrative Review | 12 |
| Law and its rules. The term "administrative decision" is | 13 |
| defined as in Section 3-101 of the Code of Civil Procedure. | 14 |
| (b) Proceedings for judicial review shall be commenced in | 15 |
| the circuit court of the county in which the party applying for | 16 |
| review resides, but if the party is not a resident of this | 17 |
| State, the venue shall be in Sangamon County. | 18 |
| Section 140. Certification of record; costs. The | 19 |
| Department shall not be required to certify any record to the | 20 |
| court or file an answer in court or to otherwise appear in any | 21 |
| court in a judicial review proceeding, unless there is filed in | 22 |
| the court with the complaint a receipt from the Department | 23 |
| acknowledging payment of the costs of furnishing and certifying | 24 |
| the record. Failure on the part of the plaintiff to file such |
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| receipt in court shall be grounds for dismissal of the action. | 2 |
| Section 145. Administrative Procedure Act. The Illinois | 3 |
| Administrative Procedure Act is hereby expressly adopted and | 4 |
| incorporated herein as if all of the provisions of that Act | 5 |
| were included in this Act, except that the provision of | 6 |
| subsection (d) of Section 10-65 of the Illinois Administrative | 7 |
| Procedure Act that provides that at hearings the licensee has | 8 |
| the right to show compliance with all lawful requirements for | 9 |
| retention, continuation, or renewal of the certificate is | 10 |
| specifically excluded. For the purposes of this Act, the notice | 11 |
| required under Section 10-25 of the Illinois Administrative | 12 |
| Procedure Act is deemed sufficient when mailed to the last | 13 |
| known address of a party. | 14 |
| Section 150. Home rule. A unit of local government, | 15 |
| including a home rule unit, may not regulate the practice of | 16 |
| foreclosed home receivers in a manner inconsistent with this | 17 |
| Act. This Section is a limitation under subsection (i) of | 18 |
| Section 6 of Article VII of the Illinois Constitution on the | 19 |
| concurrent exercise by home rule units of powers and functions | 20 |
| exercised by the State. | 21 |
| Section 900. The Regulatory Sunset Act is amended by | 22 |
| renumbering and changing Section 8.31 as follows: |
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| (5 ILCS 80/4.31) | 2 |
| Sec. 4.31 8.31 . Acts repealed on January 1, 2021. The | 3 |
| following Acts are repealed on January 1, 2021: | 4 |
| The Crematory Regulation Act. | 5 |
| The Cemetery Oversight Act.
| 6 |
| The Foreclosed Home Receiver License Act. | 7 |
| (Source: P.A. 96-863, eff. 3-1-10; revised 1-24-10.) | 8 |
| Section 920. The Code of Civil Procedure is amended by | 9 |
| changing Section 15-1702 as follows:
| 10 |
| (735 ILCS 5/15-1702) (from Ch. 110, par. 15-1702)
| 11 |
| Sec. 15-1702. Specific Rules of Possession. (a) | 12 |
| Mortgagee's Rights. No
mortgagee shall be required to take | 13 |
| possession of the mortgaged real
estate, whether upon | 14 |
| application made by any other party or otherwise.
Whenever a | 15 |
| mortgagee entitled to possession so requests, the court shall
| 16 |
| appoint a receiver. The failure of a mortgagee to request | 17 |
| possession or
appointment of a receiver shall not preclude a | 18 |
| mortgagee otherwise entitled
to possession from making such a | 19 |
| request at any future time.
The appointment of a receiver shall | 20 |
| not preclude a mortgagee from thereafter
seeking to exercise | 21 |
| such mortgagee's right to be placed in possession.
| 22 |
| (b) Designation of Receivers. Whenever a receiver is to be | 23 |
| appointed,
the mortgagee shall be entitled to designate the | 24 |
| receiver. If the mortgagee is a bank or trust, then the |
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| mortgagee may only designate a foreclosed home receiver that is | 2 |
| licensed under the Foreclosed Home Receiver License Act. If the | 3 |
| mortgagor or
any other party to the foreclosure objects to any | 4 |
| such designation
or designations and shows good cause, or the | 5 |
| court disapproves the
designee, then the mortgagee in such | 6 |
| instance shall
be entitled to make another designation.
| 7 |
| (c) Rights of Mortgagee Having Priority. If a mortgagee | 8 |
| having priority
objects to the proposed possession by a | 9 |
| subordinate mortgagee or by a receiver
designated by the | 10 |
| subordinate mortgagee, upon entry of a finding in accordance
| 11 |
| with subsection (d) of Section 15-1702 the court shall instead | 12 |
| place that
objecting mortgagee in possession or, if a receiver | 13 |
| is to be designated in
accordance with subsection (b) of | 14 |
| Section 15-1702, allow the designation of
the receiver to be | 15 |
| made by that objecting mortgagee.
| 16 |
| (d) Removal of Mortgagee in Possession. A mortgagee placed | 17 |
| in possession
shall not be removed from possession, and no | 18 |
| receiver or other mortgagee
shall be placed in possession | 19 |
| except upon (i) the mortgagee's misconduct,
death, legal | 20 |
| disability or other inability to act, (ii) appointment of a
| 21 |
| receiver in accordance with subsection (a) of Section 15-1704 | 22 |
| or (iii) a
showing of good cause by a mortgagee having | 23 |
| priority. A receiver shall not
be removed solely on account of | 24 |
| being designated by a mortgagee later
determined not to have | 25 |
| priority.
| 26 |
| (e) Determination of Priority. If the court is required to |
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| determine
priority for the purposes of subsection (c) of | 2 |
| Section 15-1702, a new
determination shall be made each time a | 3 |
| mortgagee is to be placed in
possession or a receiver is to be | 4 |
| appointed and shall be an interim
determination which shall not | 5 |
| preclude the court from making a contrary
determination later | 6 |
| in the foreclosure. If the court subsequently shall
make such a | 7 |
| contrary determination, a mortgagee in possession or acting
| 8 |
| receiver shall not be removed except in accordance with Part 17 | 9 |
| of this Article.
| 10 |
| (f) Rights to Crops. With respect to any crops growing or | 11 |
| to be grown
on the mortgaged real estate, the rights of a | 12 |
| holder of any obligation
secured by a collateral assignment of | 13 |
| beneficial interest in a land trust,
the rights of a mortgagee | 14 |
| in possession, or the rights of a receiver,
including rights by | 15 |
| virtue of an equitable lien, shall be subject to a
security | 16 |
| interest properly perfected pursuant to
Article 9 of the | 17 |
| Uniform Commercial Code, where the holder of a
collateral | 18 |
| assignment, mortgagee in possession, or receiver becomes
| 19 |
| entitled to crops by obtaining possession on or after the | 20 |
| effective date of
this Amendatory Act of 1988.
| 21 |
| (Source: P.A. 85-1427.)
| 22 |
| Section 999. Effective date. This Act takes effect upon | 23 |
| becoming law.
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