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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.)