093_SB1149enr

SB1149 Enrolled                      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 10 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 Enrolled            -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 10 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)  In addition to any other penalty, a  lienholder  who
11    fails to execute a release of his or her security interest or
12    who  fails  to  mail  or  deliver the certificate and release
13    within the time limit provided in subsection (a)  or  (b)  is
14    liable  to  the person or entity that was supposed to receive
15    the release or certificate for $150 plus reasonable  attorney
16    fees  and  court  costs.  An action under this Section may be
17    brought in small claims court or  in  any  other  appropriate
18    court.
19    (Source: P.A. 81-557.)

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.