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90_HB1283enr 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 HB1283 Enrolled 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 delinquentunder this Sectionthrough the 27 fault of the mortgage lender, (i) the interest assessedunder28this Sectionfor 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 HB1283 Enrolled -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) the10mortgage lender holds funds in escrow to pay the taxes, and11(c) the funds are sufficient to pay the taxes after deducting12all amounts reasonably anticipated to become due for all13hazard insurance premiums and mortgage insurance premiums and14any other assessments to be paid from the escrow under the15terms 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.)