State of Illinois
90th General Assembly
Legislation

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90_HB1283

      35 ILCS 200/21-15
          Amends the Property Tax Code.  Provides  that,  when  any
      unpaid  taxes  become  delinquent  through  the  fault of the
      mortgage lender, the lender shall pay the taxes,  redeem  the
      property,  and  take  all necessary steps to remove any liens
      accruing against the property  because  of  the  delinquency.
      Provides that unpaid taxes shall be deemed delinquent through
      the  fault  of  the  lender  if  the  lender has received all
      payments due the lender for the property  being  taxed  under
      the  written  terms  of the mortgage or promissory note (now,
      the lender has received all payments due the lender  for  the
      property being taxed, the lender holds funds in escrow to pay
      the  taxes,  and  the  funds  are sufficient to pay the taxes
      after deducting all amounts reasonably anticipated to  become
      due for certain insurance premiums an other assessments to be
      paid from the escrow).
                                                     LRB9004586DNcd
                                               LRB9004586DNcd
 1        AN ACT to amend the Property Tax Code by changing Section
 2    21-15.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Property Tax Code is amended by changing
 6    Section 21-15 as follows:
 7        (35 ILCS 200/21-15)
 8        Sec. 21-15.  General tax due dates; default  by  mortgage
 9    lender.  Except  as  otherwise  provided  in  this Section or
10    Section 21-40, all property upon which the first  installment
11    of  taxes  remains  unpaid on June 1 annually shall be deemed
12    delinquent and shall bear interest after June 1 at  the  rate
13    of  1 1/2% per month or portion thereof.  Except as otherwise
14    provided in this Section or Section 21-40, all property  upon
15    which  the second installment of taxes remains due and unpaid
16    on September 1, annually,  shall  be  deemed  delinquent  and
17    shall  bear  interest  after September 1 at the same interest
18    rate. All interest collected shall be paid into  the  general
19    fund of the county.
20        Property  not  subject  to the interest charge in Section
21    9-265 shall also  not  be  subject  to  the  interest  charge
22    imposed  by  this Section until such time as the owner of the
23    property receives actual notice of  and  is  billed  for  the
24    principal amount of back taxes due and owing.
25        Notwithstanding  any  other  provision  of  law, when any
26    unpaid taxes become delinquent under this Section through the
27    fault of the mortgage lender, (i) the interest assessed under
28    this Section for delinquent taxes shall  be  charged  against
29    the  mortgage  lender  and  not  the  mortgagor  and (ii) the
30    mortgage lender shall pay the taxes, redeem the property  and
31    take all necessary steps to remove any liens accruing against
                            -2-                LRB9004586DNcd
 1    the  property  because of the delinquency.  In the event that
 2    more than one entity meets the definition of mortgage  lender
 3    with  respect to any mortgage, the interest shall be assessed
 4    against the mortgage lender  responsible  for  servicing  the
 5    mortgage.   Unpaid  taxes  shall be deemed delinquent through
 6    the fault of the mortgage lender only if:  (a)  the  mortgage
 7    lender  has received all payments due the mortgage lender for
 8    the property being taxed  under  the  written  terms  of  the
 9    mortgage  or promissory note secured by the mortgage, (b) the
10    mortgage lender holds funds in escrow to pay the  taxes,  and
11    (c) the funds are sufficient to pay the taxes after deducting
12    all  amounts  reasonably  anticipated  to  become due for all
13    hazard insurance premiums and mortgage insurance premiums and
14    any other assessments to be paid from the  escrow  under  the
15    terms  of  the  mortgage.  For  purposes  of this Section, an
16    amount is reasonably anticipated  to  become  due  if  it  is
17    payable  within  12  months  from the time of determining the
18    sufficiency of funds held in escrow.  Unpaid taxes shall  not
19    be deemed delinquent through the fault of the mortgage lender
20    if  the  mortgage  lender  was  directed  in  writing  by the
21    mortgagor not to pay the property taxes, or if the failure to
22    pay the taxes when due resulted from inadequate or inaccurate
23    parcel information provided by  the  mortgagor,  a  title  or
24    abstract  company,  or  by  the  agency or unit of government
25    assessing the tax.
26    (Source: P.A. 86-234; 87-17; 87-145; 87-208; 87-340;  87-895;
27    88-455.)

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