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(815 ILCS 390/27.1)
Sec. 27.1.
Sales; liability of purchaser for shortage.
In the event of a sale or transfer of all or
substantially all of the assets of the licensee, the sale
or transfer of the controlling interest of the corporate
stock of the licensee if the licensee is a corporation, the
sale or transfer of the controlling interest of the partnership if
the licensee is a partnership, or sale pursuant to
foreclosure proceedings, the purchaser is liable for any
shortages existing before or after the sale in the trust
funds required to be maintained in a trust under this Act
and shall honor all pre-need contracts and trusts entered
into by the licensee. Any shortages existing in the trust
funds constitute a prior lien in favor of the trust for the
total value of the shortages, and notice of that lien must
be provided in all sales instruments.
In the event of a sale or transfer of all or
substantially all of the assets of the licensee, the sale
or transfer of the controlling interest of the corporate
stock of the licensee if the licensee is a corporation, or
the sale or transfer of the controlling interest of the partnership
if the licensee is a partnership, the licensee shall, at
least 21 days prior to the sale or transfer, notify the
Comptroller, in writing, of the pending date of sale or
transfer so as to permit the Comptroller to audit the books
and records of the licensee. The audit must be commenced
within 10 business days after the receipt of the notification
and completed within the 21-day notification period unless
the Comptroller notifies the licensee during that period
that there is a basis for determining a deficiency which
will require additional time to finalize. The sale or
transfer may not be completed by the licensee unless and
until:
(i) the Comptroller has completed the audit of the |
| licensee's books and records;
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(ii) any delinquency existing in the trust funds has
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| been paid by the licensee, or arrangements satisfactory to the Comptroller have been made by the licensee on the sale or transfer for the payment of any delinquency;
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(iii) the Comptroller issues a license upon
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| application of the new owner, which license must be applied for within 30 days after the anticipated date of the sale or transfer, subject to the payment of any delinquencies, if any, as stated in item (ii).
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For purposes of this Section, a person, firm,
corporation, partnership, or institution that acquires the
licensee through a real estate foreclosure is subject
to the provisions of this Section.
(Source: P.A. 92-419, eff. 1-1-02.)
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