Public Act 93-0621

SB1149 Enrolled                      LRB093 07023 DRH 07174 b

    AN ACT in relation to vehicles.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  Illinois  Vehicle  Code  is amended by
changing Section 3-205 as follows:

    (625 ILCS 5/3-205) (from Ch. 95 1/2, par. 3-205)
    Sec. 3-205. Release of security interest.
    (a)  Within 21 days after receiving  payment  to  satisfy
Upon the satisfaction of a security interest in a vehicle for
which  the  certificate  of title is in the possession of the
lienholder, he shall, within ten (10) days after demand  and,
in  any  event, within thirty (30) days, execute a release of
his security interest, and mail or  deliver  the  certificate
and  release  to  the  next  lienholder named therein, or, if
none, to  the  owner  or  any  person  who  delivers  to  the
lienholder  an  authorization  from  the owner to receive the
certificate. If the  payment  is  in  the  form  of  cash,  a
cashier's  check, or a certified check, the number of days is
reduced to 10 business days.  If  the  owner  desires  a  new
certificate  reflecting  no lien, the certificate and release
from the lienholder may be  submitted  to  the  Secretary  of
State,  along  with  the  prescribed application and required
fee, for issuance of that new certificate.
    (b)  Within 21 days after receiving  payment  to  satisfy
Upon the satisfaction of a security interest in a vehicle for
which  the  certificate  of  title  is in the possession of a
prior lienholder, the lienholder whose security  interest  is
satisfied shall within ten (10) days after demand and, in any
event,  within thirty (30) days execute a release and deliver
the release to the owner or any person who  delivers  to  the
lienholder  an authorization from the owner to receive it. If
the payment is in the form of cash, a cashier's check,  or  a
certified check, the number of days is reduced to 10 business
days.  The  lienholder  in  possession  of the certificate of
title may either deliver the certificate to the owner, or the
person authorized by him, for delivery to  the  Secretary  of
State,  or,  upon  receipt  of  the  release, may mail or may
deliver the certificate and release,  along  with  prescribed
application  and  require fee, to the Secretary of State, who
shall issue a new certificate.
    (c)  In addition to any other penalty, a  lienholder  who
fails to execute a release of his or her security interest or
who  fails  to  mail  or  deliver the certificate and release
within the time limit provided in subsection (a)  or  (b)  is
liable  to  the person or entity that was supposed to receive
the release or certificate for $150 plus reasonable  attorney
fees  and  court  costs.  An action under this Section may be
brought in small claims court or  in  any  other  appropriate
court.
(Source: P.A. 81-557.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

Effective Date: 12/15/2003