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| [ Senate Amendment 001 ] |
91_HB1286ham001
LRB9102550LDmbam01
1 AMENDMENT TO HOUSE BILL 1286
2 AMENDMENT NO. . Amend House Bill 1286 by replacing
3 the title with the following:
4 "AN ACT to create the Land Trust Fiduciary Duties Act.";
5 and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 1. Short title. This Act may be cited as the
9 Land Trust Fiduciary Duties Act.
10 Section 5. Legislative finding; purpose.
11 (a) The General Assembly finds that the Illinois
12 judiciary system and the federal judiciary system have
13 unclear court decisions as to whether the holders of the
14 power of direction have fiduciary duties to the holders of
15 the beneficial interest in land trusts. The terms "land
16 trust" and "beneficial interest" have the same meanings as
17 defined in Section 2 of the Land Trustee as Creditor Act.
18 (b) It is the purpose of this Act to clarify that
19 holders of the power of direction have a fiduciary duty to
20 the holders of the beneficial interest in land trusts as
21 declaratory of existing law.
-2- LRB9102550LDmbam01
1 Section 10. Holders of the power of direction;
2 definition. "Holders of the power of direction" means the
3 persons or entities having the authority to direct the
4 trustee to convey, execute a mortgage, distribute proceeds of
5 sale or financing, and execute documents incidental to the
6 execution of a land trust.
7 Section 15. Fiduciary duties of holders of the power of
8 direction. The power of direction, unless provided otherwise
9 in the land trust agreement, is conferred upon the holders
10 thereof for the use and benefit of all of the holders of the
11 beneficial interest in the land trust. In exercising the
12 power of direction, the holders act in a fiduciary capacity
13 for the benefit of all holders of the beneficial interest in
14 the trust. The beneficial interest shall be indefeasible and
15 the power of direction shall not be so exercised to alter,
16 amend, revoke, terminate, defeat, or otherwise affect or
17 change the enjoyment of any beneficial interest.
18 Section 20. Application of Act. This Act is declaratory
19 of existing law and is intended to remove any possible
20 conflicts or ambiguities, thereby confirming the existing
21 law pertinent to land trusts and shall apply to all land
22 trusts in effect before, on, or after the effective date of
23 this Act.
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.".