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Illinois Compiled Statutes
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MUNICIPALITIES (65 ILCS 5/) Illinois Municipal Code. 65 ILCS 5/11-31-2
(65 ILCS 5/11-31-2) (from Ch. 24, par. 11-31-2)
Sec. 11-31-2.
(a) If the appropriate official of any municipality
determines, upon due investigation, that any building or structure therein
fails to conform to the minimum standards of health and safety as set forth
in the applicable ordinances of such municipality, and the owner or owners
of such building or structure fails, after due notice, to cause such
property so to conform, the municipality may make application to
the circuit court for an injunction requiring compliance with such
ordinances or for such other order as the court may deem necessary or
appropriate to secure such compliance.
If the appropriate official of any municipality determines, upon due
investigation, that any building or structure located within the area
affected by a conservation plan, adopted by the municipality pursuant to
the Urban Community Conservation Act,
fails to conform to the standards and provisions of such plan, and the
owner or owners of such building or structure fails, after due notice, to
cause such property so to conform, the municipality has the power to make
application to the circuit court for an injunction requiring compliance
with such plan or for such other order as the court may deem necessary or
appropriate to secure such compliance.
The hearing upon such suit shall be expedited by the court and shall be
given precedence over all other actions.
If, upon application hereunder, the court orders the appointment of a
receiver to cause such building or structure to conform, such receiver may
use the rents and issues of such property toward maintenance, repair
and rehabilitation of the property prior to and despite any assignment of
rents; and the court may further authorize the receiver to recover the cost
of such maintenance, repair and rehabilitation by the issuance and sale of
notes or receiver's certificates bearing such interest as the court may
fix, and such notes or certificates, after their initial issuance and
transfer by the receiver, shall be freely transferable and when sold or
transferred by the receiver in return for a valuable consideration in
money, material, labor or services, shall be a first lien upon the real
estate and the rents and issues thereof, and shall be superior to all prior
assignments of rents and all prior existing liens and encumbrances, except
taxes; provided, that within 90 days of such sale or transfer for value by
the receiver of such note or certificate, the holder thereof shall file
notice of lien in the office of the recorder in the county in which the
real estate is located, or in the office of the registrar of titles of such
county if the real estate affected is registered under the Registered Titles
(Torrens) Act. The notice of the lien
filed shall set forth (1) a description of the real estate affected
sufficient for the identification thereof, (2) the face amount of the
receiver's note or certificate, together with the interest payable thereon,
and (3) the date when the receiver's note or certificate was sold or
transferred for value by the receiver. Upon payment to the holder of the
receiver's note or certificate of the face amount thereof together with any
interest thereon to such date of payment, and upon the filing of record of
a sworn statement of such payment, the lien of such certificate shall be
released. Unless the lien is enforced pursuant to subsection (b), the lien
may be enforced by proceedings to foreclose as in the case of mortgages or
mechanics' liens, and such action to foreclose such lien may be commenced
at any time after the date of default. For the purposes of this subsection
(a), the date of default shall be deemed to occur 90 days from the date of
issuance of the receiver's certificate if at that time the certificate
remains unpaid in whole or in part.
In the event a receiver appointed under this subsection (a) completes a
feasibility study which study finds that the property cannot be economically
brought into compliance with the minimum standards of health and safety as set
forth in the applicable ordinances of the municipality, the receiver may
petition the court for reimbursement for the cost of the feasibility study from
the receivership feasibility study and fee fund. The court shall review the
petition and authorize reimbursement from the fund to the receiver if the court
finds that the findings in the feasibility report are reasonable, that the fee
for the feasibility report is reasonable, and that the receiver is unable to
obtain reimbursement other than by foreclosure of a lien on the property. If
the court grants the petition for reimbursement from the fund and, upon
receiving certification from the court of the amount to be paid, the county
treasurer shall order that amount paid from the fund to the receiver. If the
court grants the petition for reimbursement from the fund, the court shall also
authorize and direct the receiver to issue a certificate of lien against title.
The recorded lien shall be a first lien upon the real estate and shall be
superior to all prior liens and encumbrances except real estate taxes. The
court shall also order the receiver to reimburse the fund to the extent that
the receiver is reimbursed upon foreclosure of the receiver's lien upon sale of
the property.
In any proceedings hereunder in which the court orders the appointment
of a receiver, the court may further authorize the receiver to enter into
such agreements and to do such acts as may be required to obtain first
mortgage insurance on the receiver's notes or certificates from an agency
of the Federal Government.
(b) In any case where a municipality has obtained a lien pursuant to
subsection (a), the municipality may enforce such lien pursuant to
this subsection (b) in the same proceeding in which the lien is authorized.
A municipality desiring to enforce a lien under this subsection (b) shall
petition the court to retain jurisdiction for foreclosure proceedings under
this subsection. Notice of the petition shall be served, by certified or
registered mail, on all persons who were served notice under subsection (a).
The court shall conduct a hearing on the petition not less than 15
days after such notice is served. If the court determines that the
requirements of this subsection (b) have been satisfied, it shall grant the
petition and retain jurisdiction over the matter until the foreclosure
proceeding is completed. If the court denies the petition, the municipality
may enforce the lien in a separate action as provided in subsection (a).
All persons designated in Section 15-1501 of the Code of Civil Procedure
as necessary parties in a mortgage foreclosure action shall be joined as
parties prior to issuance of an order of foreclosure. Persons designated
in Section 15-1501 of the Code of Civil Procedure as permissible parties
may also be joined as parties in the action.
The provisions of Article XV of the Code of Civil Procedure applicable to
mortgage foreclosures shall apply to the foreclosure of a lien pursuant to
this subsection (b), except to the extent that such provisions are
inconsistent with this subsection. However, for purposes of foreclosures
of liens pursuant to this subsection, the redemption period described in
subsection (b) of Section 15-1603 of the Code of Civil Procedure shall end
60 days after the date of entry of the order of foreclosure.
(Source: P.A. 91-554, eff. 8-14-99.)
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65 ILCS 5/11-31-2.1
(65 ILCS 5/11-31-2.1) (from Ch. 24, par. 11-31-2.1)
Sec. 11-31-2.1.
(a) If a municipality petitions for appointment of a
receiver pursuant to Section 11-31-2 of this Act and it clearly appears
from specific facts shown by affidavit or by verified petition or verified
complaint that immediate and irreparable injury, loss or damage will result
before personal service can practicably be had, a receiver may be appointed
upon a showing that the municipality attempted to give notice by any means
practicable and reasonably calculated to give actual notice under the
circumstances, including by telephone to the defendant's last known phone
number or by mailing to the defendant's last known address. If a receiver
is appointed pursuant to this subsection, another hearing shall be set at
the earliest practicable date.
(b) Within 10 days after the appointment of a receiver pursuant to
subsection (a) of this Section, the municipality shall attempt to obtain
personal service, but if unable to obtain personal service and a summons
duly issued in such action is returned without service stating that service
cannot be obtained, then the municipality, its agent or attorney, may file
an affidavit stating that the defendant is not a resident of this State or
has departed from this State, or on due inquiry cannot be found or is
concealed within this State so that process cannot be served upon him or
her, and also stating the place of residence of the defendant, if known, or
if not, that upon diligent inquiry affiant has not been able to ascertain
the defendant's place of residence, and the
defendant may be notified by mailing to the defendant's last known address
and posting at the real estate in receivership, or by such mailing and by
publication pursuant to Section 2-206 of the Code of Civil Procedure. In
cases where a defendant is notified by mailing and posting or by mailing
and publication and the defendant does not appear generally, the court may
not enter a personal judgment against the defendant, but may continue the
receivership and authorize the issuance of receiver's certificates to
become liens upon the real estate, as provided in Section 11-31-2 of this Act.
(c) For purposes of notice by mail to owners as provided in Section
11-31-2.1, if the municipality in which the real estate subject to
receivership is located has an owner registration ordinance, mailing to the
addresses of unserved owners at the addresses registered with the
municipality pursuant to the ordinance shall be sufficient. Notice shall
be deemed provided 4 days after mailing. The notice shall state the
caption and case number of the action, the address of the affected real
estate, the fact that a receiver may be or has been appointed, the
possibility that a lien may be filed against the real estate as a result of
the appointment, and the date, time and place of the next court hearing on
the matter.
(Source: P.A. 85-634.)
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