(210 ILCS 45/3-510) (from Ch. 111 1/2, par. 4153-510)
Sec. 3-510.
(a) A receiver may petition the court that he not be required
to honor any lease, mortgage, secured transaction or other wholly or partially
executory contract entered into by the owner of the facility if the rent,
price or rate of interest required to be paid under the agreement was substantially
in excess of a reasonable rent, price or rate of interest at the time the
contract was entered into, or if any material provision of the agreement
was unreasonable.
(b) If the receiver is in possession of real estate or goods subject to
a lease, mortgage or security interest which the receiver has obtained a
court order to avoid under subsection (a) of this Section, and if the real
estate or goods are necessary for the continued operation of the facility
under this Section, the receiver may apply to the court to set a reasonable
rental, price or
rate of interest to be paid by the receiver during the duration of the receivership.
The court shall hold a hearing on the application within 15 days. The receiver
shall send notice of the application to any known persons who own the property
involved at least 10 days prior to the hearing. Payment by the receiver
of the amount determined by the court to be reasonable is a defense to any
action against the receiver for payment or for possession of the goods or
real estate subject to the lease, security interest or mortgage involved
by any person who received such notice, but the payment does not relieve
the owner of the facility of any liability for the difference between the
amount paid by the receiver and the amount due under the original lease,
security interest or mortgage involved.
(Source: P.A. 81-223.)
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