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90_HB3136
625 ILCS 5/3-114 from Ch. 95 1/2, par. 3-114
815 ILCS 120/6 from Ch. 17, par. 856
815 ILCS 375/20 from Ch. 121 1/2, par. 580
Amends the Illinois Vehicle Code in provisions regarding
transfer of title. Provides that after repossession, if the
buyer has paid an amount equal to 30% or more of the deferred
payment price, the required 21 day notice shall include the
amount of all back payments and late charges owed, the amount
due for the costs of repossession, the total amount due to
recover the vehicle, the address where the buyer may bring
the total amount due to recover the repossessed vehicle, and
a statement that the buyer may not have any rights to recover
the repossessed vehicle after the expiration of 21 days from
the date of the notice. Amends the Illinois Fairness in
Lending Act and the Motor Vehicle Retail Installment Sales
Act to remove notice requirements after repossession when the
buyer has paid 30% or more of the deferred payment price, and
instead reference the notice requirement in the Illinois
Vehicle Code. Effective immediately.
LRB9010887SMdv
LRB9010887SMdv
1 AN ACT regarding vehicle repossession.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Vehicle Code is amended by
5 changing Section 3-114 as follows:
6 (625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)
7 Sec. 3-114. Transfer by operation of law.
8 (a) If the interest of an owner in a vehicle passes to
9 another other than by voluntary transfer, the transferee
10 shall, except as provided in paragraph (b), promptly mail or
11 deliver within 20 days to the Secretary of State the last
12 certificate of title, if available, proof of the transfer,
13 and his application for a new certificate in the form the
14 Secretary of State prescribes. It shall be unlawful for any
15 person having possession of a certificate of title for a
16 motor vehicle, semi-trailer, or house car by reason of his
17 having a lien or encumbrance on such vehicle, to fail or
18 refuse to deliver such certificate to the owner, upon the
19 satisfaction or discharge of the lien or encumbrance,
20 indicated upon such certificate of title.
21 (b) If the interest of an owner in a vehicle passes to
22 another under the provisions of the Small Estates provisions
23 of the Probate Act of 1975 the transferee shall promptly mail
24 or deliver to the Secretary of State, within 120 days, the
25 last certificate of title, if available, the documentation
26 required under the provisions of the Probate Act of 1975, and
27 an application for certificate of title. The Small Estate
28 Affidavit form shall be furnished by the Secretary of State.
29 The transfer may be to the transferee or to the nominee of
30 the transferee.
31 (c) If the interest of an owner in a vehicle passes to
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1 another under other provisions of the Probate Act of 1975, as
2 amended, and the transfer is made by a representative or
3 guardian, such transferee shall promptly mail or deliver to
4 the Secretary of State, the last certificate of title, if
5 available, and a certified copy of the letters of office or
6 guardianship, and an application for certificate of title.
7 Such application shall be made before the estate is closed.
8 The transfer may be to the transferee or to the nominee of
9 the transferee.
10 (d) If the interest of an owner in joint tenancy passes
11 to the other joint tenant with survivorship rights as
12 provided by law, the transferee shall promptly mail or
13 deliver to the Secretary of State, the last certificate of
14 title, if available, proof of death of the one joint tenant
15 and survivorship of the surviving joint tenant, and an
16 application for certificate of title. Such application shall
17 be made within 120 days after the death of the joint tenant.
18 The transfer may be to the transferee or to the nominee of
19 the transferee.
20 (e) The Secretary of State shall transfer a decedent's
21 vehicle title to any legatee, representative or heir of the
22 decedent who submits to the Secretary a death certificate and
23 an affidavit by an attorney at law on the letterhead
24 stationery of the attorney at law stating the facts of the
25 transfer.
26 (f) In all cases wherein a lienholder has repossessed a
27 vehicle, after the original 21 day notice to the debtor has
28 been fulfilled, the lienholder shall within 20 days make an
29 application to the Secretary of State for a certificate of
30 title, a salvage certificate or a junking certificate, as set
31 forth in this Code. In all cases, however, the Secretary of
32 State shall not issue a certificate of title, a salvage
33 certificate or a junking certificate to such lienholder
34 unless the person from whom such vehicle has been repossessed
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1 is shown to be the last registered owner of such motor
2 vehicle and such lienholder establishes to the satisfaction
3 of the Secretary of State that he is entitled to such
4 certificate of title, salvage certificate or junking
5 certificate. The Secretary of State shall provide by rule for
6 the standards to be followed by a lienholder in order to
7 obtain a certificate of title for a repossessed vehicle.
8 If the buyer has paid an amount equal to 30% or more of
9 the deferred payment price at the time of repossession, the
10 21 day notice shall include the following information: (i)
11 the amount of all back payments owed that, if paid, would
12 make the buyer current on the loan, (ii) the amount of any
13 late charges due, (iii) the amount due for the costs of
14 repossession, (iv) the total amount due to recover the
15 repossessed vehicle, (v) the address where the buyer may
16 bring cash, a certified check, or money order for the total
17 amount due to recover the repossessed vehicle, and (vi) a
18 statement that the buyer may not have any rights to recover
19 the repossessed vehicle after the expiration of 21 days from
20 the date of the notice.
21 (g) A person holding a certificate of title whose
22 interest in the vehicle has been extinguished or transferred
23 other than by voluntary transfer shall mail or deliver the
24 certificate, within 20 days upon request of the Secretary of
25 State. The delivery of the certificate pursuant to the
26 request of the Secretary of State does not affect the rights
27 of the person surrendering the certificate, and the action of
28 the Secretary of State in issuing a new certificate of title
29 as provided herein is not conclusive upon the rights of an
30 owner or lienholder named in the old certificate.
31 (h) The Secretary of State may decline to process any
32 application for a transfer of an interest in a vehicle
33 hereunder if any fees or taxes due under this Act from the
34 transferor or the transferee have not been paid upon
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1 reasonable notice and demand.
2 (i) The Secretary of State shall not be held civilly or
3 criminally liable to any person because any purported
4 transferor may not have had the power or authority to make a
5 transfer of any interest in any vehicle or because a
6 certificate of title issued in error is subsequently used to
7 commit a fraudulent act.
8 (Source: P.A. 90-212, eff. 1-1-98.)
9 Section 10. The Illinois Fairness in Lending Act is
10 amended by changing Section 6 as follows:
11 (815 ILCS 120/6) (from Ch. 17, par. 856)
12 Sec. 6. Where a financial institution, other than a
13 credit union, as defined in Section 1.1 of the Illinois
14 Credit Union Act, as now or hereafter amended, repossesses a
15 motor vehicle that was used as a collateral and which is
16 used primarily for the borrower's personal, family or
17 household purposes, and the borrower at the time of
18 repossession has paid an amount equal to 30% or more of the
19 total of payments due, the borrower may, within 21 15 days,
20 redeem the motor vehicle from the financial institution by
21 tendering:
22 (a) the total of all unpaid amounts, including any
23 unpaid delinquency or deferral charges due without
24 acceleration, and
25 (b) performance necessary to cure any default other than
26 nonpayment of the amounts due; and
27 (c) any reasonable cost or fees incurred by the
28 financial institution in the retaking of the goods.
29 Tender of payment and performance pursuant to this Section
30 restores to the borrower his rights under the loan as though
31 no default had occurred. The borrower has a right to redeem
32 the collateral from the financial institution only once under
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1 this Section. The financial institution may, in the financial
2 institution's sole discretion, extend the period during which
3 the borrower may redeem the collateral beyond the 21 15 days
4 allowed under this Section, and the extension shall not
5 subject the financial institution to liability to the
6 borrower under the laws of this State.
7 If the buyer has paid an amount equal to 30% or more of
8 the deferred payment price at the time or repossession, the
9 financial institution must give written notice to the
10 borrower, pursuant to Section 3-114 of the Illinois Vehicle
11 Code within 3 days of the repossession, of the borrower's
12 right to redeem the collateral pursuant to this Section. The
13 written notice shall be in substantially the following form:
14 NOTICE OF RIGHT TO RECOVER VEHICLE
15 Your vehicle was repossessed on (specify date) for
16 failure to make payments on the loan (or other reason).
17 Under Illinois law, because you have paid at least 30% of
18 the loan before repossession, you may be able to get the
19 vehicle back. You have the right to recover the vehicle if
20 you do the following within 15 days of the date of
21 repossession:
22 1. Make payment of all back payments so
23 that you are current on the loan. $...........
24 2. Pay any late charge due. $...........
25 3. Pay the costs of repossession. $...........
26 Total Amount Now Due $...........
27 Bring cash, a certified check or money order for the
28 total amount now due that is listed above to our office
29 located at (specify address) by (specify date) to get your
30 vehicle back.
31 (Source: P.A. 90-343, eff. 8-8-97.)
32 Section 15. The Motor Vehicle Retail Installment Sales
33 Act is amended by changing Section 20 as follows:
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1 (815 ILCS 375/20) (from Ch. 121 1/2, par. 580)
2 Sec. 20. Unless otherwise limited by this Act, the
3 parties shall have the rights and remedies provided in
4 Article 9 of the Uniform Commercial Code with respect to
5 default and, disposition, and recovery redemption of
6 collateral.
7 If the buyer has paid an amount equal to 60% or more of
8 the deferred payment price at the time of his default under
9 the contract and if the buyer, at the request of the holder
10 and without legal proceedings, surrenders the goods to the
11 holder in ordinary condition and free from malicious damage,
12 the holder must, within a period of 5 days from the date of
13 receipt of the goods at his place of business, elect either
14 (a) to retain the goods and release the buyer from further
15 obligation under the contract, or (b) to return the goods to
16 the buyer at the holder's expense and be limited to an action
17 to recover the balance of the indebtedness.
18 If the buyer has paid an amount equal to 30% or more of
19 the deferred payment price at the time of repossession, the
20 buyer shall have the right to reinstate the contract and
21 recover the collateral from the holder within 21 15 days from
22 the date of repossession by tendering (a) the total of all
23 unpaid amounts, including any unpaid delinquency or deferral
24 charges due at the time of tender, without acceleration, and
25 (b) performance necessary to cure any default other than
26 nonpayment of the amounts due; and (c) any reasonable cost or
27 fees incurred by the holder in the retaking of the goods.
28 Tender of payment and performance pursuant to this Section
29 restores to the buyer his rights under the contract as though
30 no default had occurred. The buyer has a right to reinstate
31 the contract and recover the collateral from the holder only
32 once under this Section. The holder may, in the holder's sole
33 discretion, extend the period during which the buyer may
34 reinstate the contract and recover redeem the collateral
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1 beyond the 21 15 days allowed under this Section, and the
2 extension shall not subject the holder to liability to the
3 buyer under the laws of this State. If the buyer has paid an
4 amount equal to 30% or more of the deferred payment price at
5 the time or repossession, the holder must give written notice
6 to the buyer pursuant to Section 3-114 of the Illinois
7 Vehicle Code.
8 The holder must give written notice to the buyer, within
9 3 days of the repossession, of the buyer's right to reinstate
10 the contract and recover the collateral pursuant to this
11 Section. The written notice shall be in substantially the
12 following form:
13 NOTICE OF RIGHT TO RECOVER VEHICLE
14 Your vehicle was repossessed on (specify date) for
15 failure to make payments on the contract (or other reason).
16 Under Illinois law, because you have paid at least 30% of
17 the deferred payment price before repossession, you may be
18 able to get the vehicle back. You have the right to recover
19 the vehicle if you do the following within 15 days of the
20 date of repossession:
21 1. Make payment of all back payments due as
22 of the date of this notice. $
23 2. Pay any late charges due. $
24 3. Pay the costs of repossession. $
25 TOTAL DUE as of the date of this
26 notice $
27 Plus any additional amounts which may become
28 due between the date of the notice and
29 the date of reinstatement. $
30 AMOUNT NOW DUE
31 Bring cash, a certified check or a money order for the
32 total amount plus any additional amounts which may become due
33 between the date of this notice and the date of the
34 reinstatement now due that is to our office located at
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1 (specify address) by (specify date) to get your vehicle back.
2 (Source: P.A. 90-343, eff. 8-8-97; 90-437, eff. 1-1-98;
3 revised 12-1-97.)
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.