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Public Act 92-0807
HB1975 Enrolled LRB9201948SMdv
AN ACT concerning taxes.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Division 1. General provisions
Section 1. Short title. This Act may be cited as the
Mobile Home Local Services Tax Enforcement Act.
Section 5. Definitions. As used in this Act:
"Mobile home" means that term as defined in the Mobile
Home Local Services Tax Act.
Section 10. Application. This Act applies to
delinquencies in payment of the tax imposed by the Mobile
Home Local Services Tax Act.
Division 2. Enforcement actions
Section 15. Lien; payments by representative or agent.
When a mobile home is taxed to any person as agent for
another, or in a representative capacity, the agent or
representative shall have a lien on the mobile home, or any
mobile home of his or her principal in the agent's
possession, until he or she is indemnified against the
payment thereof, or, if he or she has paid the tax, until he
or she is reimbursed for the payment.
Section 20. Lien for taxes. The taxes upon a mobile
home, together with all penalties, interests, and costs that
may accrue thereon, shall be a prior and first lien on the
mobile home, superior to all other liens and encumbrances,
from and including the first day of January in the year in
which the taxes are imposed until the taxes are paid or until
a court order transfers ownership of the mobile home.
(a) Foreclosure; mobile home forfeited for 2 or more
years. A lien may be foreclosed, in the circuit court in the
name of the People of the State of Illinois, whenever the
taxes for 2 or more years on the same mobile home have been
forfeited to the State and there is not an open scavenger
buy. The mobile home may be sold under the order of the
court by the person having authority to receive County taxes,
with notice to interested parties and right of redemption
from the sale, (except that the interest or any other amount
to be paid upon redemption in addition to the amount for
which the mobile home was sold shall be as provided herein),
as provided in Sections 290 through 310 and 325.
In any action to foreclose the lien for delinquent taxes
brought by the People of the State of Illinois when the taxes
for 2 or more years on the same mobile home have been
forfeited to the State, service of process shall be made in
the manner now prescribed by law. All owners, parties
interested, and occupants of any mobile home against which
tax liens are sought to be foreclosed shall be named as
parties defendant, and shall be served in the manner and form
as provided by law for the service of defendants in
foreclosures of lien or encumbrances upon real estate. In
case there are other parties with ownership interests in the
mobile home, they shall be named in the notice under the
designation "unknown owners".
(b) Redemption interest. The interest to be paid upon
redemption from all tax foreclosure sales held under this
Section shall be:
(1) If redeemed within 2 months from the date of
the sale, 3% per month upon the amount for which the
mobile home was sold for each of the first 2 months, or
fraction thereof;
(2) If redeemed between 2 and 6 months from the
date of the sale, 12% of the amount of sale;
(3) If redeemed between 6 and 12 months from the
date of the sale, 24% of the amount of sale;
(4) If redeemed between 12 and 18 months from the
date of the sale, 36% of the amount of sale;
(5) If redeemed between 18 and 24 months from the
date of the sale, 48% of the amount of sale;
(6) If redeemed after 24 months from the date of
sale, the 48% for the 24 months plus interest at 6% per
year thereafter.
(c) Enforcement of lien from rents and profits. A lien
under this Section may be enforced at any time after 6 months
from the day the tax becomes delinquent out of the rents and
profits of the mobile home accruing, or accrued and under the
control or jurisdiction of a court. This process may be
initiated by the county board of the county or by the
corporate authorities of any taxing body entitled to receive
any part of the delinquent tax, by petition in any pending
suit having jurisdiction of the mobile home, or in any
application for judgment and order of sale of mobile homes
for delinquent taxes in which the mobile home is included, in
the name of the People of the State of Illinois.
The process, practice, and procedure under this
subsection shall be the same as provided in the Civil
Practice Law and the Supreme Court Rules adopted in relation
to that Law, except that receivers may be appointed on not
less than 3 days' written notice to holders of certificate of
title or persons in possession. In all petitions the court
shall have power to appoint the county collector to take
possession of the mobile home only for the purpose of
collecting the rents, issues and profits therefrom, and to
apply them in satisfaction of the tax lien. When the taxes
set forth in the petition are paid in full, the receiver
shall be discharged. If the taxes described in the petition
are reduced by the final judgment of a court, the county
collector shall immediately refund all moneys collected by
him or her as receiver over and above the taxes as reduced,
and shall deduct that amount from the moneys thereafter
distributed to the taxing bodies which received the tax
revenue.
In proceedings to foreclose the tax lien, or in petitions
to enforce the lien, the amount due on the collector's books
against the mobile home shall be prima facie evidence of the
amount of taxes against the mobile home. When any taxes are
collected, they shall be paid to the county collector, to be
distributed by him or her to the authorities entitled to
them. All sales made under this Section shall be conducted
under the order and supervision of the court by the county
collector.
An action to foreclose the lien for delinquent taxes
under this Act is an action in rem.
Section 25. Preventing waste to mobile homes; receiver.
During the pendency of any tax foreclosure proceeding and
until the time to redeem the mobile home sold expires, or
redemption is made, from any sale made under any judgment
foreclosing the lien of taxes, no waste shall be committed or
suffered on any of the mobile homes involved. The mobile home
shall be maintained in good condition and repair. When
violations of local building, health, or safety codes or
violations of mobile home park rules and regulations make the
mobile home dangerous or hazardous, when taxes on the mobile
home are delinquent for 2 years or more, or when in the
judgment of the court it is to the best interest of the
parties, the court may, upon the verified petition of any
party to the proceeding, or the holder of the certificate of
purchase, appoint a receiver for the mobile home with like
powers and duties of receivers as in cases of foreclosure of
mortgages or trust deeds. The court, in its discretion, may
take any other action as may be necessary or desirable to
prevent waste and maintain the mobile home in good condition
and repair.
Section 30. No receiver for homestead dwelling. No
receiver shall be appointed under the provisions of Section
25 for mobile homes used as a family dwelling and occupied by
the owner as a residence at the time the unpaid taxes became
a lien and continuously thereafter.
Section 35. Purchase and sale by county; distribution of
proceeds. When any mobile home is delinquent, or is forfeited
for each of 2 or more years, and is offered for sale under
any of the provisions of this Act, the county board of the
county in which the mobile home is located, in its
discretion, if there are no other bids, may bid, or, in the
case of a forfeited mobile home, may apply to purchase it, in
the name of the county as trustee for all taxing districts
having an interest in the mobile home's taxes for the
nonpayment of which the mobile home is sold. The presiding
officer of the county board, with the advice and consent of
the board, may appoint on its behalf some officer or person
to attend such sales and bid or, in the case of a forfeited
mobile home, to apply to the county clerk to purchase. The
county shall apply on the bid or purchase the unpaid taxes
due upon the mobile home. No cash need be paid. The county
shall take all steps necessary to acquire certificate of
title to the mobile home and upon acquisition of the
certificate of title may manage and operate the mobile home.
When a county, or other taxing district within the county, is
a petitioner for a tax certificate of title, no filing fee
shall be required. When a county or other taxing district
within the county is the petitioner for a tax certificate of
title, one petition may be filed including all mobile homes
that are tax delinquent within the county or taxing district,
and any publication made under Section 380 of this Act may
combine all such mobile homes within a single notice. The
notice shall list the street or common address, and the
mobile home park where the mobile home is sited, if known, of
the mobile homes for informational purposes. The county, as
tax creditor and as trustee for other tax creditors, or other
taxing districts within the county, shall not be required to
allege and prove that all taxes that become due and payable
after the sale to the county have been paid nor shall the
county be required to pay the subsequently accruing taxes at
any time, except when subsequent taxes are sold to another
buyer. The county board or its designee may prohibit the
county collector from including the mobile home in the tax
sale of one or more subsequent years. The lien of taxes that
become due and payable after a sale to a county shall merge
in the certificate of title of the county, or other taxing
district within the county, on the issuance of a certificate
of title.
The County may sell or assign the mobile home so
acquired, or the certificate of purchase to it, to any party,
including taxing districts. The proceeds of that sale or
assignment, less all costs of the county incurred in the
acquisition and sale or assignment of the mobile home, shall
be distributed to the taxing districts in proportion to their
respective interests therein.
Under Sections 55 and 60, a County may bid or purchase
only in the absence of other bidders.
Section 40. Tax abatement after acquisition by a
governmental unit. When any county or municipality acquires
a mobile home through the foreclosure of a lien, through a
judicial order, through the foreclosure of receivership
certificate lien, or by acceptance of a certificate of title
in lieu of foreclosing any lien against the mobile home, or
when any county or other taxing district acquires a
certificate of title for a mobile home under Section 35 or
Sections 90 and 200, all due or unpaid mobile home taxes and
existing liens for unpaid mobile home taxes imposed or
pending under any law or ordinance of this State or any of
its political subdivisions shall become null and void.
Section 45. Notice to county officials; voiding of tax
bills. The county board or corporate authorities of the
county, or other taxing district acquiring a mobile home
under Section 35 shall give written notice of the acquisition
to the chief county assessment officer and the county
collector and the county clerk of the county in which the
mobile home is located, and request the voiding of the tax
liens as provided in this Section. The notice shall describe
the acquired mobile home by the vehicle identification number
of the mobile home, if there is one.
Upon receipt of the notice, the county collector and
county clerk or county assessor, as appropriate shall void
the current and all prior unpaid taxes on the records in
their respective offices by entering the following statement
upon their records for the mobile home: "Acquired by ...
(name of county or municipality acquiring the mobile home
under Section 35). Taxes due and unpaid on this mobile home
... (give vehicle identification number, if any, and location
of the mobile home) ... are waived and null and void under
Section 45 of the Mobile Home Local Services Tax Enforcement
Act. The tax bills of this mobile home are hereby voided and
liens for the taxes are extinguished."
Section 50. Liability of owner; rights of tax purchaser.
Nothing in Sections 40 and 45 shall relieve any owner liable
for delinquent mobile home taxes under the Mobile Home Local
Services Tax Act from the payment of any delinquent taxes or
liens which have become null and void under those Sections.
Sections 45 and 50 shall not adversely affect the rights
or interests of the holder of any bona fide certificate of
purchase of the mobile home for delinquent taxes. However,
upon acquisition of a mobile home by a governmental unit as
set forth in Section 40, the rights and interests of the
holder of any bona fide certificate of purchase of the mobile
home for delinquent taxes shall be limited to a sale in error
and a refund as provided under Section 255.
Section 55. Published notice of annual application for
judgment and sale; delinquent taxes. At any time after all
taxes have become delinquent in any year, the Collector shall
publish an advertisement, giving notice of the intended
application for judgment and sale of the delinquent mobile
homes. Except as provided below, the advertisement shall be
in a newspaper published in the township or road district in
which the mobile homes are located. If there is no newspaper
published in the township or road district, then the notice
shall be published in some newspaper in the same county as
the township or road district, to be selected by the county
collector. When the mobile home is in an incorporated town
which has superseded a civil township, the advertisement
shall be in a newspaper published in the incorporated town or
if there is no such newspaper, then in a newspaper published
in the county.
Section 60. Times of publication of notice. The
advertisement shall be published once at least 10 days before
the day on which judgment is to be applied for, and shall
contain a list of the delinquent mobile homes upon which the
taxes or any part thereof remain due and unpaid, the names of
owners, and the street, common address, and mobile home park
where the mobile home is sited, if known, the vehicle
identification number, the model year of the home, the square
footage of the home, the total amount due, and the year or
years for which they are due. In counties of less than
3,000,000 inhabitants, advertisement shall include notice of
the registration requirement for persons bidding at the sale.
The collector shall give notice that he or she will apply
to the circuit court on a specified day for judgment against
the mobile homes for the taxes, and costs, and for an order
to sell the mobile homes for the satisfaction of the amount
due.
The collector shall also give notice of a date within the
next 5 business days after the date of application on which
all the mobile homes for the sale of which an order is made
will be exposed to public sale at a location within the
county designated by the county collector, for the amount of
taxes and cost due. The advertisement published according to
the provisions of this Section shall be deemed to be
sufficient notice of the intended application for judgment
and of the sale of mobile homes under the order of the court.
Section 65. Costs of publishing delinquent list. A county
shall pay for the printer for advertising delinquent lists
for mobile homes, $0.40 per column line, to be taxed and
collected as costs.
The printer shall receive for printing the preamble, the
descriptive headings, the affidavit, and any other matter
accompanying the delinquent list, the sum of $0.40 per line,
to be paid by the county.
No costs except printer's fee shall be charged on any
mobile homes forfeited to the State.
Section 70. Sale of mobile homes previously ordered
sold. A mobile home ordered sold by unexecuted judgments and
orders of sale, previously entered, shall be included in the
advertisement for sale only under the previous orders, and
shall be sold in the order in which they appear in the
delinquent list contained in the advertisement. At any time
between annual sales the county collector also may advertise
for sale any mobile homes subject to sale under orders
previously entered and not executed for any reason. The
advertisement and sale shall be regulated by the provisions
regulating the annual advertisement and sale of delinquent
mobile homes, as far as applicable.
Section 75. Use of figures and letters in advertisement
and other lists. In all advertisements for the sale of mobile
homes for taxes, and in entries required to be made by the
clerk of the court or other officer, letters, figures, or
characters may be used to denote the year or the years for
which the taxes were due and the amount of taxes, interest,
and costs. The county collector may subsequently advertise
and obtain judgment on mobile homes that have been omitted,
or that have been erroneously advertised or described in the
first advertisement.
Division 3. Notice and publication provisions
Section 80. Mailed notice of application for judgment
and sale. Not less than 15 days before the date of
application for judgment and sale of delinquent mobile homes,
the county collector shall mail, by registered or certified
mail, a notice of the forthcoming application for judgment
and sale to the person shown by the current collector's
warrant book to be the party in whose name the taxes were
last computed. The notice shall include the intended dates
of application for judgment and sale and commencement of the
sale, and a description of the mobile homes. The county
collector must present proof of the mailing to the court
along with the application for judgement.
In counties with less than 3,000,000 inhabitants, a copy
of this notice shall also be mailed by the county collector
by registered or certified mail to any lienholder of record
who annually requests a copy of the notice. The failure of
the county collector to mail a notice or its non-delivery to
the lienholder shall not affect the validity of the judgment.
The collector shall collect $10 from the proceeds of each
sale to cover the costs of registered or certified mailing
and the costs of advertisement and publication. If a taxpayer
pays the taxes on the mobile home after the notice of the
forthcoming application for judgment and sale is mailed but
before the sale is made, then the collector shall collect $10
from the taxpayer to cover the costs of registered or
certified mailing and the costs of advertisement and
publication.
Section 85. Printer's error in advertisement. In all
cases where there is a printer's error in the advertised list
which prevents judgment from being obtained against any
mobile home, or against all of the delinquent list, at the
time stated in the advertisement, the printer shall lose the
compensation allowed by this Act for those mobile homes
containing errors, or for the entire list, as the case may
be.
Section 90. Scavenger sale. At the same time the county
collector annually publishes the collector's annual sale
advertisement under Sections 55 and 60, the collector, if the
county board so orders by resolution, must publish an
advertisement giving notice of the intended application for
judgment and sale of all mobile homes upon which all or a
part of the taxes for each of 2 or more years, including the
current tax year, are delinquent as of the date of the
advertisement. In no event may there be more than 2
consecutive years without a sale under this Section. The term
delinquent also includes forfeitures. The county collector
shall include in the advertisement and in the application for
judgment and sale under this Section and Section 200 the
total amount of all taxes upon those mobile homes which are
delinquent as of the date of the advertisement. In lieu of a
single annual advertisement and application for judgment and
sale under this Section and Section 200, the county collector
may, from time to time, beginning on the date of the
publication of the annual sale advertisement and before
August 1 of the next year, publish separate advertisements
and make separate applications on eligible mobile homes
described in one or more volumes of the delinquent list. The
separate advertisements and applications shall, in the
aggregate, include all the mobile homes which otherwise would
have been included in the single annual advertisement and
application for judgment and sale under this Section. The
advertisement and application for judgment and sale shall be
in the manner prescribed by this Act relating to the annual
advertisement and application for judgment and sale of
delinquent mobile homes.
Division 3.5. Judgments and Sales
Section 95. Time of applying for judgment. Except as
otherwise provided in this Section, all applications for
judgment and order of sale for taxes on delinquent mobile
homes shall be made during the month of October.
Within 30 days after the day specified for the
application for judgment the court shall hear and determine
the matter. If judgment is rendered, the sale shall begin on
the date within 5 business days specified in the notice as
provided in Section 60. If the collector is prevented from
advertising and obtaining judgment during the month of
October, the collector may obtain judgment at any time
thereafter; but if the failure arises by the county
collector's not complying with any of the requirements of
this Act, he or she shall be held on his or her official bond
for the full amount of all taxes charged against him or her.
Any failure on the part of the county collector shall not be
allowed as a valid objection to the collection of any tax, or
to entry of a judgment against any delinquent mobile homes
included in the application of the county collector.
Section 100. Annual tax judgment, sale, redemption, and
forfeiture record. The collector shall transcribe into a
record prepared for that purpose, and known as the annual tax
judgment, sale, redemption, and forfeiture record, the list
of delinquent mobile homes. The record shall contain all the
information necessary to be recorded, at least 5 days before
the day on which application for judgment is to be made.
The record shall set forth the name of the owner and the
street, common address, and mobile home park where the mobile
home is sited, if known; a description of the mobile home,
including the vehicle identification number, model year, and
square footage; the year or years for which the tax is due;
the valuation on which the tax is extended; the amount of the
consolidated and other taxes; the costs; and the total amount
of charges against the mobile home.
The record shall also be ruled in columns to show the
amount paid before entry of judgment; the amount of judgment
and a column for remarks; the amount paid before sale and
after entry of judgment; the amount of the sale; amount of
interest or penalty; amount of cost; amount forfeited to the
State; date of sale; name of purchaser; amount of sale and
penalty; taxes of succeeding years; interest and when paid,
interest and cost; total amount of redemption; date of
redemption; when certificate of title executed; by whom
redeemed; and a column for remarks or receipt of redemption
money.
The record shall be kept in the office of the county
clerk.
Section 105. Payment of delinquent tax before sale. Any
person owning or claiming mobile homes upon which application
for judgment is applied for may, in person or by agent, pay
the taxes, and costs due to the county collector at any time
before sale.
Section 110. Report of payments and corrections. On the
day on which application for judgment on a delinquent mobile
home is applied for, the collector, assisted by the county
clerk, shall post all payments, compare and correct the list,
and shall make and subscribe an affidavit, which shall be
substantially in the following form:
State of Illinois)
) ss.
County of .......)
I ...., collector of the county of ...., do solemnly
swear (or affirm, as the case may be), that the foregoing is
a true and correct list of the delinquent mobile homes within
the county of ...., upon which I have been unable to collect
the taxes (and interest and printer's fees, if any), charged
thereon, as required by law, for the year or years therein
set forth; and that the taxes, now remain due and unpaid, to
the best of my knowledge and belief.
Dated ..........
The affidavit shall be entered at the end of the list,
and signed by the collector.
Section 115. Proceedings by court. Defenses to the
entry of judgment against mobile homes included in the
delinquent list shall be entertained by the court only when
the defense includes a writing specifying the particular
grounds for the objection.
If any party objecting is entitled to a refund of all or
any part of a tax paid, the court shall enter judgment
accordingly, and also shall enter judgment for the taxes,
interest, and penalties as appear to be due. The judgment
shall be considered as a several judgment against each mobile
home, for each kind of tax included therein. The court shall
direct the clerk to prepare and enter an order for the sale
of the mobile home against which judgment is entered.
Section 120. Form of court order. A judgment and order
of sale shall be substantially in the following form:
Whereas, due notice has been given of the intended
application for a judgment against mobile homes, and no
sufficient defense having been made or cause shown why
judgment should not be entered against the mobile homes, for
taxes, interest, penalties, and costs due and unpaid thereon
for the year or years herein set forth, therefore the court
hereby enters judgment against the above stated mobile homes,
in favor of the People of the State of Illinois, for the
amount of taxes, interest, penalties and costs due thereon.
It is ordered by the court that the mobile homes be sold as
the law directs.
The order shall be signed by the judge. In all judicial
proceedings of any kind, for the collection of taxes, all
amendments may be made which, by law, could be made in any
personal action pending in that court.
Section 125. Cure of error or informality in computation
of tax or collection of the taxes. No computation of the tax
on a mobile home or charge for any of the taxes shall be
considered illegal on account of any irregularity in the
computation, or on account of the computation not having been
made within the time required by law, or on account of the
mobile home having been charged without name, or in any other
name than that of the rightful owner. No error or informality
in the proceedings of any of the officers connected with the
computation or collection of the taxes, not affecting the
substantial justice of the tax itself, shall vitiate or in
any manner affect the tax or the computation thereof. Any
irregularity or informality in the computation of the tax, or
in any of the proceedings connected with the computation of
the taxes, or any omission or defective act of any other
officer or officers connected with the computation of the
taxes, may be, in the discretion of the court, corrected,
supplied and made to conform to law by the court, or by the
person (in the presence of the court) from whose neglect or
default it was occasioned.
Division 4. Annual tax sale procedure
Section 130. Entry of judgment for sale. If judgment is
rendered against any mobile home for any tax, the county
collector shall, after publishing a notice for sale in
compliance with the requirements of Sections 55 or 60,
proceed to offer the mobile home for sale pursuant to the
judgment. However, in the case of an appeal from the
judgment, if the party, when filing notice of appeal deposits
with the county collector the amount of the judgment and
costs, the collector shall not sell the mobile home until the
appeal is disposed of.
Section 135. Examination of record; certificate of
correctness. On the day advertised for sale, the county
clerk, assisted by the collector, shall examine the list upon
which judgment has been entered and ascertain that all
payments have been properly noted thereon. The county clerk
shall make a certificate to be entered on the record,
following the order of court that the record is correct, and
that judgment was entered upon the mobile home therein
mentioned for the taxes, interest, and costs due thereon.
The certificate shall be attested by the circuit court clerk
under seal of the court and shall be the process on which the
mobile home or any interest therein shall be sold for taxes,
interest, and costs due thereon, and may be substantially in
the following form:
State of Illinois County of .....
I, ...., clerk of the circuit court, in and for the
county of ...., do hereby certify that the foregoing is a
true and correct record of the delinquent mobile home in the
county, against which judgment and order of sale was duly
entered in the circuit court for the county, on (insert
date), for the amount of the taxes, interest, and costs due
severally thereon as therein set forth, and that the judgment
and order of court in relation thereto fully appears on the
record.
Dated (insert date).
Section 140. County clerk assistance at sale. The county
clerk, in person or by deputy, shall attend all sales for
taxes, made by the collector, and shall assist at the sales.
Section 145. Tax sale procedures. The collector, in
person or by deputy, shall attend, on the day and in the
place specified in the notice for the sale of mobile homes
for taxes, and shall, between 9:00 a.m. and 4:00 p.m., or
later at the collector's discretion, proceed to offer for
sale, separately and in consecutive order, all mobile homes
in the list on which the taxes, interest, or costs have not
been paid. The collector's office shall be kept open during
all hours in which the sale is in progress. The sale shall be
continued from day to day, until all mobile homes in the
delinquent list have been offered for sale.
Section 150. Penalty bids. The person at the sale
offering to pay the amount due on each mobile home for the
least penalty percentage shall be the purchaser of that
mobile home. No bid shall be accepted for a penalty exceeding
18% of the amount of the tax on a mobile home.
Section 155. Registration. In counties with less than
3,000,000 inhabitants, unless the county board provides
otherwise, no person shall be eligible to bid who did not
register with the county collector at least 10 business days
prior to the first day of sale authorized under Section 60.
Section 160. Forfeited mobile home. Every mobile home
offered at public sale, and not sold for want of bidders,
shall be forfeited to the State of Illinois. However, when
the court, county clerk, and county treasurer certify that
the taxes on a forfeited mobile home equal or exceed the
actual value of the mobile home, the county collector shall,
on the receipt of such certificate, offer the mobile home for
sale to the highest bidder, after first giving 10 days'
notice, in the manner described in Sections 55 and 60, of the
time and place of sale, together with a description of the
mobile home to be offered. A certificate of purchase shall be
issued to the purchaser at the sale as in other cases
provided in this Act. The county collector shall receive
credit in the settlement with the taxing bodies for which the
tax was levied for the amount not realized by the sale. The
amount received from the sale shall be paid by the collector,
pro rata, to the taxing bodies entitled to it.
Section 165. Record of sales and redemptions. When any
mobile home is sold, the county clerk shall enter on the Tax
Judgment, Sale, Redemption and Forfeiture Record, in the
blank columns provided for that purpose, the name of the
purchaser and the final bid. When any mobile home is redeemed
from sale, the county clerk shall enter the name of the
person redeeming, the redemption date, and the amount of
redemption, in the proper column.
Section 170. Record of forfeitures. All mobile homes
forfeited to the State at the sale shall be noted on the Tax
Judgment, Sale, Redemption and Forfeiture Record.
Section 175. Payment for mobile homes purchased at tax
sale; reoffering for sale. Except as otherwise provided
below, the person purchasing any mobile home shall be liable
to the county for the amount due and shall forthwith pay to
the county collector the amount charged on the mobile home.
Upon failure to do so, the amount due shall be recoverable in
a civil action brought in the name of the People of the State
of Illinois in any court of competent jurisdiction. The
person so purchasing shall be relieved of liability only by
payment of the amount due together with interest and costs
thereon, or if the mobile home is reoffered at the sale,
purchased, and paid for. Reoffering of the mobile home for
sale shall be at the discretion of the collector. The sale
shall not be closed until payment is made or the mobile home
again offered for sale. The purchaser then shall be entitled
to a certificate of purchase. If a purchaser fails to
complete his or her purchase as provided in this Section, the
purchase shall become void, and be of no effect, but the
collector shall not refund the amount paid in cash at the
time of the sale, except in cases of sale in error. That
amount shall be treated as a payment and distributed to the
taxing bodies as other collections are distributed. The lien
for taxes for the amount paid shall remain on the mobile
home, in favor of the purchaser, his or her heirs or assigns,
until paid with 5% interest per year on that amount from the
date the purchaser paid it. The amount and fact of such
ineffective purchase shall be entered in the tax judgment,
sale, redemption and forfeiture record opposite the mobile
home upon which the lien remains. No redemption shall be made
without payment of this amount for the benefit of the
purchaser, and no future sale of the mobile home shall be
made except subject to the lien of such purchaser.
Section 180. Automation fee. The county collector may
assess to the purchaser of a mobile home for delinquent taxes
an automation fee of not more than $10 per mobile home. In
counties with less than 3,000,000 inhabitants:
(a) The fee shall be paid at the time of the purchase if
the record keeping system used for processing the delinquent
mobile home tax sales is automated or has been approved for
automation by the county board. The fee shall be collected in
the same manner as other fees or costs.
(b) Fees collected under this Section shall be retained
by the county treasurer in a fund designated as the Tax Sale
Automation Fund. The fund shall be audited by the county
auditor. The county board shall make expenditures from the
fund to pay any costs related to the automation of mobile
home tax collections and delinquent mobile home tax sales,
including the cost of hardware, software, research and
development, and personnel.
Section 185. Certificate of purchase. The county clerk
shall make out and deliver to the purchaser of any mobile
home sold under Section 145, a certificate of purchase
countersigned by the collector, describing the mobile home
sold, including the vehicle identification number, the model
year, and the square footage, the date of sale, the amount of
taxes, interest, and cost for which it was sold, and that
payment of the sale price has been made. If any person
becomes the purchaser of more than one mobile home owned by
one party or person, the purchaser may have the whole or one
or more of them included in one certificate, but separate
certificates shall be issued in all other cases. A
certificate of purchase shall be assignable by endorsement.
An assignment shall vest in the assignee or his or her legal
representatives, all the right and title of the original
purchaser.
If the tax certificate is lost or destroyed, the county
clerk shall issue a duplicate certificate upon written
request and a sworn affidavit by the tax sale purchaser, or
his or her assignee, that the tax certificate is lost or
destroyed. The county clerk shall cause a notation to be made
in the tax sale and judgment book that a duplicate
certificate has been issued, and redemption payments shall be
made only to the holder of the duplicate certificate.
Section 190. Index of tax sale records. The county clerk
may make an index of tax-sale records. The index shall be
kept in the county clerk's office as a public record, open to
inspection during office hours.
Section 195. County clerk's books and records; prima
facie evidence. The books and records of the county clerk, or
copies thereof, certified by the clerk, shall be prima facie
evidence to prove the sale of any mobile home for taxes, the
redemption of the mobile home, or payment of taxes thereon.
Division 5. Scavenger sales; procedures
Section 200. Collector's scavenger sale. Upon the
county collector's application under Section 90, to be known
as the Scavenger Sale Application, the Court shall enter
judgment for the taxes, interest, penalties, and costs as are
included in the advertisement and appear to be due thereon
after allowing an opportunity to object and a hearing upon
the objections as provided in Section 115, and order those
mobile homes sold by the county collector at public sale to
the highest bidder for cash, notwithstanding the bid may be
less than the full amount of taxes, interest, penalties, and
costs for which judgment has been entered.
(a) Conducting the sale; bidding. All mobile homes
shall be offered for sale in consecutive order as they appear
in the delinquent list. The minimum bid for any mobile home
shall be $250 or one-half of the tax if the total liability
is less than $500. The successful bidder shall immediately
pay the amount of minimum bid to the County Collector in
cash, by certified or cashier's check, by money order, or, if
the successful bidder is a governmental unit, by a check
issued by that governmental unit. If the bid exceeds the
minimum bid, the successful bidder shall pay the balance of
the bid to the county collector in cash, by certified or
cashier's check, by money order, or, if the successful bidder
is a governmental unit, by a check issued by that
governmental unit by the close of the next business day. If
the minimum bid is not paid at the time of sale or if the
balance is not paid by the close of the next business day,
then the sale is void and the minimum bid, if paid, is
forfeited to the county general fund. In that event, the
mobile home shall be reoffered for sale within 30 days of the
last offering of mobile homes in regular order. The
collector shall make available to the public a list of all
mobile homes to be included in any reoffering due to the
voiding of the original sale. The collector is not required
to serve or publish any other notice of the reoffering of
those mobile homes. In the event that any of the mobile homes
are not sold upon reoffering, or are sold for less than the
amount of the original voided sale, the original bidder who
failed to pay the bid amount shall remain liable for the
unpaid balance of the bid in an action under Section 175.
Liability shall not be reduced where the bidder upon
reoffering also fails to pay the bid amount, and in that
event both bidders shall remain liable for the unpaid balance
of their respective bids. A sale of mobile homes under this
Section shall not be final until confirmed by the court.
(b) Confirmation of sales. The county collector shall
file his or her report of sale in the court within 30 days
after the date of sale of each mobile home. No notice of the
county collector's application to confirm the sales shall be
required except as prescribed by rule of the court. Upon
confirmation, except in cases where the sale becomes void
under Section 430, or in cases where the order of
confirmation is vacated by the court, a sale under this
Section shall extinguish the in rem lien of the taxes, for
which judgment has been entered and a redemption shall not
revive the lien. Confirmation of the sale shall in no event
affect the owner's personal liability to pay the taxes,
interest, and penalties as provided in this Act or prevent
institution of a proceeding under Section 355 to collect any
amount that may remain due after the sale.
(c) Issuance of tax sale certificates. Upon confirmation
of the sale, the county clerk and the county collector shall
issue to the purchaser a certificate of purchase in the form
prescribed by Section 185 as near as may be. A certificate
of purchase shall not be issued to any person who is
ineligible to bid at the sale or to receive a certificate of
purchase under Section 205.
(d) Scavenger Tax Judgment, Sale and Redemption Record;
sale of parcels not sold. The county collector shall prepare
a Scavenger Tax Judgment, Sale and Redemption Record. The
county clerk shall write or stamp on the scavenger tax
judgment, sale, forfeiture and redemption record opposite the
description of any mobile home offered for sale and not sold,
or not confirmed for any reason, the words "offered but not
sold". The mobile homes that are offered for sale under this
Section and not sold or not confirmed shall be offered for
sale annually thereafter in the manner provided in this
Section until sold. At any time between annual sales the
county collector may advertise for sale any mobile homes
subject to sale under judgments for sale previously entered
under this Section and not executed for any reason. The
advertisement and sale shall be regulated by the provisions
of this Act as far as applicable.
(e) Proceeding to tax certificate of title. The owner of
the certificate of purchase shall give notice as required by
Sections 365 through 390, and may extend the period of
redemption as provided by Section 330. At any time within 5
months prior to expiration of the period of redemption from a
sale under this Act, the owner of a certificate of purchase
may file a petition and may obtain a tax certificate of title
under Sections 390 through 410. All proceedings for the
issuance of a tax certificate of title and all tax
certificates of title for mobile homes sold under this
Section shall be subject to Sections 390 through 410. This
Section shall be liberally construed so that the certificates
of title provided for in this Section convey merchantable
title.
(f) Redemptions from scavenger sales. Redemptions may be
made from sales under this Section in the same manner and
upon the same terms and conditions as redemptions from sales
made under the county collector's annual application for
judgment and order of sale, except that in lieu of penalty
the person redeeming shall pay interest on that part of the
amount for which the mobile home was sold equal to or less
than the full amount of delinquent taxes, penalties,
interest, and costs, included in the judgment and order of
sale as follows:
(1) If redeemed within the first 2 months from the
date of the sale, 3% per month upon the amount of taxes,
penalties, interest, and costs due for each of the first
2 months, or fraction thereof.
(2) If redeemed at any time between 2 and 6 months
from the date of the sale, 12% of the amount of taxes,
penalties, interest, and costs due.
(3) If redeemed at any time between 6 and 12 months
from the date of the sale, 24% of the amount of taxes,
penalties, interest, and costs due.
(4) If redeemed at any time between 12 and 18
months from the date of the sale, 36% of the amount of
taxes, penalties, interest, and costs due.
(5) If redeemed at any time between 18 and 24
months from the date of the sale, 48% of the amount of
taxes, penalties, interest, and costs due.
(6) If redeemed after 24 months from the date of
sale, the 48% provided for the 24 months together with
interest at 6% per annum thereafter on the amount of
taxes, penalties, interest, and costs due.
The person redeeming shall not be required to pay any
interest on any part of the amount for which the mobile home
was sold that exceeds the full amount of delinquent taxes,
penalties, interest, and costs included in the judgment and
order of sale.
Notwithstanding any other provision of this Section, the
amount required to be paid for redemption shall also include
an amount equal to all delinquent taxes on the mobile home
which taxes were delinquent at the time of sale. The
delinquent taxes shall be apportioned by the county collector
among the taxing districts in which the mobile home is
situated in accordance with law. In the event that all moneys
received from any sale held under this Section exceed an
amount equal to all delinquent taxes on the mobile home sold,
which taxes were delinquent at the time of sale, together
with all publication and other costs associated with the
sale, then, upon redemption, the county collector and the
county clerk shall apply the excess amount to the cost of
redemption.
(g) Bidding by county or other taxing districts. Any
taxing district may bid at a scavenger sale. The county
board of the county in which mobile homes offered for sale
under this Section are located may bid as trustee for all
taxing districts having an interest in the taxes for the
nonpayment of which the mobile homes are offered. The county
shall apply on the bid the unpaid taxes due upon the mobile
home and no cash need be paid. The county or other taxing
district acquiring a tax sale certificate shall take all
steps necessary to acquire certificate of title to the mobile
home and may manage and operate the mobile home so acquired.
When a county, or other taxing district within the
county, is a petitioner for a tax certificate of title, no
filing fee shall be required on the petition. The county as a
tax creditor and as trustee for other tax creditors, or other
taxing district within the county shall not be required to
allege and prove that all taxes that become due and payable
after the sale to the county have been paid. The county shall
not be required to pay the subsequently accruing taxes at any
time. Upon the written request of the county board or its
designee, the county collector shall not offer the mobile
home for sale at any tax sale subsequent to the sale of the
mobile home to the county under this Section. The lien of
taxes that become due and payable after a sale to a county
shall merge in the certificate title of the county, or other
taxing district, on the issuance of a certificate of title.
The County may sell the mobile homes so acquired, or the
certificate of purchase thereto, and the proceeds of the sale
shall be distributed to the taxing districts in proportion to
their respective interests therein. The presiding officer of
the county board, with the advice and consent of the county
board, may appoint some officer or person to attend scavenger
sales and bid on its behalf.
(h) Miscellaneous provisions. In the event that a mobile
home sold at any such sale is not redeemed within the time
permitted by law and a tax certificate of title is issued,
all moneys that may be received from the sale of mobile homes
in excess of the delinquent taxes, together with all
publication and other costs associated with the sale, shall,
upon petition of any interested party to the court that
issued the tax certificate of title, be distributed by the
county collector pursuant to order of the court among the
persons having legal or equitable interests in the mobile
home according to the fair value of their interests in the
mobile home. Appeals may be taken from the orders and
judgments entered under this Section as in other civil cases.
The remedy herein provided is in addition to other remedies
for the collection of delinquent taxes.
Section 205. Scavenger sale; persons ineligible to bid
or purchase.
(a) No person, except a unit of local government, shall
be eligible to bid or receive a certificate of purchase at
any sale under Section 200 unless that person has completed
and delivered to the county clerk a true, accurate, and
complete application for certificate of purchase which shall
affirm that:
(1) the person has not bid upon or applied to
purchase any mobile home at the sale for a person who is
the party or agent of the party who owns the mobile home
or is responsible for the payment of the delinquent
taxes;
(2) the person is not, nor is he or she the agent
for, the owner or party responsible for payment of the
taxes on any mobile home which is located in the same
county in which the sale is held and which is tax
delinquent or forfeited for all or any part of each of 2
or more years; and
(3) the person, although otherwise eligible to bid,
has not either directly or through an agent twice during
the same sale failed to complete a purchase by the
immediate payment of the minimum bid or the payment of
the balance of a bid within the time provided by Section
200.
Section 210. Scavenger sale registration. No person,
except a unit of local government, shall be eligible to bid
or to receive a certificate of purchase who did not register
with the county collector at least 5 business days in advance
of the first day of the sale under Section 200. The collector
may charge, for each registration, a fee of not more than $50
in counties with less than 3,000,000 inhabitants.
Registration shall be made upon such forms and according to
such regulations as the county collector deems necessary in
order to effect complete and accurate disclosure of the
identity of all persons beneficially interested, directly or
indirectly, in each sale under Section 200. The information
to be disclosed shall include, but not be limited to, the
name, address, and telephone number of the purchaser to whom
the clerk and collector will be requested to issue a
certificate of purchase; if the purchaser is a corporation,
the place of incorporation and the names and addresses of its
shareholders unless the corporation is publicly held; if the
purchaser is a partnership, the names and addresses of all
general and limited partners; if the purchaser is doing
business under an assumed business name, the county where
such name is registered and the names, addresses, and
telephone numbers of all persons having an ownership interest
in the business; and the identity and location of any other
tax delinquent mobile home owned by the bidder and purchaser.
Every application for certificate of purchase and form
for registration authorized and required by this Section and
Section 215 shall be executed under penalty of perjury as
though under oath or affirmation, but no acknowledgement is
required.
Section 215. Scavenger sale; application for certificate
of purchase. The application for certificate of purchase
shall be executed by the purchaser and by any individual
bidder acting in the purchaser's behalf. The application
shall be initially executed and delivered to the county clerk
at the time of registration for the sale as provided in this
Section. Before receiving any certificate of purchase, each
purchaser and individual bidder acting in the purchaser's
behalf shall sign and deliver to the county clerk a schedule
or schedules of the mobile homes for which that purchaser has
successfully bid and is applying to purchase, which schedule
or schedules shall be attached to and incorporated within the
application. The schedule or schedules shall be accompanied
by a fee, for each mobile home listed, of $10 in counties
with less than 3,000,000 inhabitants. The application and
schedule or schedules shall be in substantially the following
form:
APPLICATION FOR CERTIFICATE OF PURCHASE
Date of Application: ...............
Name of Purchaser: .................
Address: ...........................
Name of Bidder: ....................
Address: ...........................
I (we) hereby apply to the County Clerk and County
Treasurer of ..... County for issuance of a certificate of
purchase for each of the mobile homes on the attached
schedule(s), and state as follows:
1. I (we) made (or authorized) the successful bid on
each mobile home listed on the attached schedule or schedules
at the sale of delinquent mobile homes under Section 200 of
the Mobile Home Local Services Tax Enforcement Act conducted
by the County Treasurer of ..... County, Illinois, on the
dates indicated for each mobile home on the schedule(s).
2. At least 5 business days before the first day of this
sale, I (we) submitted a truthful, accurate and complete
registration to the Treasurer of ..... County on the form(s)
and according to the regulations prescribed by the
Treasurer's office.
3. Neither I (we) nor any person or firm identified in
the registration submitted to the Treasurer of ..... County
was an owner or agent of an owner, lienholder or agent of a
lienholder (other than the mobile home park owner or his or
her agent), holder of beneficial interest or agent of a
holder of a beneficial interest in or of any mobile home
identified on the schedule(s) attached to this application on
January 1st of any years for which taxes were delinquent at
the time of my (our) bid(s) described in the schedule(s).
4. Neither I (we) nor any person or firm identified in
the registration submitted to the Treasurer of ..... County
was an owner or agent of an owner, lienholder or agent of a
lienholder (other than the mobile home park owner or his or
her agent), holder of a beneficial interest or agent of a
holder of a beneficial interest in or of the mobile home
identified on the schedule(s) attached to this application at
the time of the bid(s) described in the schedule.
5. Neither I (we) nor any person or firm identified in
the registration submitted to the Treasurer of ..... County
was an owner or agent for an owner, or party or agent for a
party responsible for the payment of delinquent taxes, on any
mobile home in the county that was tax delinquent or
forfeited for all or any part of each of 2 or more years when
the registration was submitted.
6. Neither I (we) nor any person acting in my (our)
behalf has twice failed to complete a purchase at the sale
during which the mobile homes on the attached schedule(s)
were offered by failing to immediately pay a minimum bid or
by failing to pay the balance of a bid for any mobile home
within one business day thereafter.
I (we) hereby affirm that I (we) have read this
application and that the statements made in it are personally
known by me (us) to be true, accurate and complete, under
penalty of perjury as provided by law.
I (we) further understand that this application shall be
void unless the schedule(s) of mobile homes referred to in
the application is (are) completed and delivered to the
County Clerk.
........................ Dated: ..............
(Signature of Purchaser)
........................ Dated: ..............
(Signature of Bidder)
SCHEDULE OF PROPERTIES
Mobile home vehicle identification number
(or other identification) Date of Bid
(insert number or other identification) (insert date)
I (we) hereby affirm that I (we) successfully bid upon
the above mobile homes at the sale conducted by the County
Treasurer of ..... County on the indicated dates, and I (we)
request that the County Clerk of ..... County attach this
schedule to my (our) application for certificate of purchase
dated ......
Signed under penalty of perjury as provided by law:
........................ Dated: ..............
(Signature of Purchaser)
........................ Dated: ..............
(Signature of Bidder)
Section 220. Scavenger sale; ineligible bid; liability.
(a) Any person who is ineligible under Section 205 to
bid or to receive a certificate of purchase from a sale under
Section 200, who nevertheless registers to bid or bids or
receives or acquires ownership of a certificate of purchase
from a sale, and any person who registers to bid or bids at a
sale on behalf of an ineligible person, shall be personally
liable, jointly and severally, in a sum equal to the full
amount of delinquent or forfeited taxes, interest, penalties,
and costs for which the judgment for sale under Section 200
was entered.
(b) The State's Attorney of the county in which the sale
under Section 200 was conducted may bring an action in the
name of the People of the State of Illinois against the
person and, upon a finding of liability under this Section,
the court shall enter judgment against the person in a sum
equal to the full amount of delinquent or forfeited taxes,
interest, penalties, and costs for which judgment for sale
under Section 200 was entered, together with the costs of the
action and reasonable attorney's fees. The proceeds of any
judgment under this Section shall be paid into the county
general fund.
Section 225. Tax scavenger sale fraud; definitions. For
purposes of Section 230:
(1) "Ownership interest" means any title or other
interest in a mobile home, the holder of which is
considered to be the owner of the mobile home for
purposes of taxation under Section 3 of the Mobile Home
Local Services Tax Act. Mobile home park owners are not
deemed to have an ownership interest as defined in this
Section.
(2) "Nonownership interest" means any interest in a
mobile home other than a contingent interest and other
than an ownership interest as defined in this Section,
including without limitation an easement or lien.
(3) "Mobile home" has the same meaning as defined
in Section 1 of the Mobile Home Local Services Tax Act.
Section 230. Offense of scavenger sale fraud. A person
commits the offense of tax sale fraud who knowingly:
(a) enters a bid or authorizes or procures the
entry of a bid on any mobile home offered for sale under
Section 200, when the person in whose behalf the bid is
made or authorized or procured has an ownership interest
or nonownership interest in the mobile home, or where
that person had such an interest on January 1 of any year
for which delinquent taxes were included within the
judgment for sale under Section 200;
(b) acquires, or attempts to acquire, ownership of
any certificate of purchase for a mobile home sold under
Section 200, when the person in whose behalf such
certificate of purchase is or would be acquired has an
ownership interest or nonownership interest in the mobile
home, or where that person had that interest on January 1
of any year for which delinquent taxes were included
within the judgment for sale under Section 200;
(c) conveys or assigns any certificate of purchase
for a mobile home sold under Section 200 to any person
who has an ownership interest or nonownership interest in
the mobile home, or who had that interest on January 1 of
any year for which delinquent taxes were included within
the judgment for sale under Section 200;
(d) makes a false statement in any application for
certificate of purchase or registration form submitted
under Sections 210 and 215; or
(e) forfeits 2 or more bids at any one sale under
Section 200 by failing to pay the minimum cash bid timely
or by failing to pay the balance of the bid timely as
required by Section 200.
Tax sale fraud is a Class A misdemeanor. A subsequent
conviction for tax sale fraud as defined in subsections (a)
through (d) of this Section is a Class 4 felony.
Division 6. Indemnity fund; sales in error
Section 235. Creation of indemnity fund.
(a) Each person purchasing any mobile home at a sale
under this Act shall pay to the county collector, prior to
the issuance of any certificate of purchase, a fee of $20 for
each item purchased. A like sum shall be paid for each year
that all or a portion of subsequent taxes are paid by the tax
purchaser and posted to the tax judgment, sale, redemption
and forfeiture record where the underlying certificate of
purchase is recorded.
(b) The amount paid prior to issuance of the certificate
of purchase pursuant to subsection (a) shall be included in
the purchase price of the mobile home in the certificate of
purchase and all amounts paid under this Section shall be
included in the amount required to redeem under Section 300.
Except as otherwise provided in subsection (b) of Section
240, all money received under subsection (a) shall be paid by
the collector to the county treasurer of the county in which
the mobile home is situated, for the purpose of an indemnity
fund. The county treasurer, as trustee of that fund, shall
invest all of that fund, principal and income, in his or her
hands from time to time, if not immediately required for
payments of indemnities under subsection (a) of Section 245,
in investments permitted by the Illinois State Board of
Investment under Article 22A of the Illinois Pension Act.
The county collector shall report annually to the circuit
court on the condition and income of the fund. The indemnity
fund shall be held to satisfy judgments obtained against the
county treasurer, as trustee of the fund. No payment shall be
made from the fund, except upon a judgment of the court which
ordered the issuance of a tax certificate of title.
Section 240. Amount to be retained in indemnity fund.
(a) The county board in each county shall determine the
amount of the fund to be maintained in that county, which
amount shall not be less than $50,000 and shall not be
greater than $1,000,000 in counties with less than 3,000,000
inhabitants. Any moneys accumulated by the county treasurer
in excess of the amount so established, as trustee of the
fund, shall be paid by him or her annually to the general
fund of the county.
(b) In counties in which a Tort Liability Fund is
established, all sums of money received under subsection (a)
of Section 235 may be deposited in the general fund of the
county for general county governmental purposes, if the
county board provides by ordinance that the indemnity
required by this Section shall be provided by the Tort
Liability Fund.
Section 245. Payments from Indemnity Fund.
(a) Any owner of a mobile home sold under any provision
of this Act who sustains loss or damage by reason of the
issuance of a tax certificate of title under Section 360 or
400 and who is barred or is in any way precluded from
bringing an action for the recovery of the mobile home shall
have the right to indemnity for the loss or damage sustained,
limited as follows:
(1) An owner who resided in a mobile home on the
last day of the period of redemption and who is equitably
entitled to compensation for the loss or damage sustained
has the right to indemnity. An equitable indemnity award
shall be limited to the fair cash value of the mobile
home as of the date the tax certificate of title was
issued less any liens on the mobile home, and the award
will not exceed $99,000. The court shall liberally
construe this equitable entitlement standard to provide
compensation wherever, in the discretion of the court,
the equities warrant the action.
An owner of a mobile home who requests an award in
excess of $99,000 must prove that the loss of his or her
mobile home was not attributable to his or her own fault
or negligence before an award in excess of $99,000 will
be granted.
(2) An owner who sustains the loss or damage of any
mobile home occasioned by reason of the issuance of a tax
certificate of title, without fault or negligence of his
or her own, has the right to indemnity limited to the
fair cash value of the mobile home less any liens on the
mobile home. In determining the existence of fault or
negligence, the court shall consider whether the owner
exercised ordinary reasonable diligence under all of the
relevant circumstances.
(3) In determining the fair cash value of a mobile
home less any liens on the mobile home, the fair cash
value shall be reduced by the principal amount of all
taxes paid by the tax purchaser or his or her assignee
before the issuance of the tax certificate of title.
(4) If an award made under paragraph (1) or (2) is
subject to a reduction by the amount of an outstanding
lien on the mobile home, other than the principal amount
of all taxes paid by the tax purchaser or his or her
assignee before the issuance of the tax certificate of
title and the petitioner would be personally liable to
the lienholder for all or part of that reduction amount,
the court shall order an additional indemnity award to be
paid directly to the lienholder sufficient to discharge
the petitioner's personal liability. The court, in its
discretion, may order the joinder of the lienholder as an
additional party to the indemnity action.
(b) Indemnity fund; subrogation.
(1) Any person claiming indemnity hereunder shall
petition the court which ordered the tax certificate of
title to issue, shall name the county treasurer, as
trustee of the indemnity fund, as defendant to the
petition, and shall ask that judgment be entered against
the county treasurer, as trustee, in the amount of the
indemnity sought. The provisions of the Civil Practice
Law shall apply to proceedings under the petition, except
that neither the petitioner nor county treasurer shall be
entitled to trial by jury on the issues presented in the
petition. The court shall liberally construe this Section
to provide compensation wherever in the discretion of the
Court the equities warrant such action.
(2) The county treasurer, as trustee of the
indemnity fund, shall be subrogated to all parties in
whose favor judgment may be rendered against him or her,
and by third party complaint may bring in as a defendant
any person, other than the tax certificate of title
grantee and its successors in title, not a party to the
action who is or may be liable to him or her, as
subrogee, for all or part of the petitioner's claim
against him or her.
(c) Any contract involving the proceeds of a judgment
for indemnity under this Section, between the tax certificate
of title grantee or its successors in title and the indemnity
petitioner or his or her successors, shall be in writing. In
any action brought under this Section, the Collector shall be
entitled to discovery regarding, but not limited to, the
following:
(1) the identity of all persons beneficially
interested in the contract, directly or indirectly,
including at least the following information: the names
and addresses of any natural persons; the place of
incorporation of any corporation and the names and
addresses of its shareholders unless it is publicly held;
the names and addresses of all general and limited
partners of any partnership; the names and addresses of
all persons having an ownership interest in any entity
doing business under an assumed name, and the county in
which the assumed business name is registered; and the
nature and extent of the interest in the contract of each
person identified;
(2) the time period during which the contract was
negotiated and agreed upon, from the date of the first
direct or indirect contact between any of the contracting
parties to the date of its execution;
(3) the name and address of each natural person who
took part in negotiating the contract, and the identity
and relationship of the party that the person represented
in the negotiations; and
(4) the existence of an agreement for payment of
attorney's fees by or on behalf of each party.
Any information disclosed during discovery may be subject
to protective order as deemed appropriate by the court. The
terms of the contract shall not be used as evidence of value.
Section 250. Indemnity fund fraud.
(a) A person commits the offense of indemnity fund fraud
when that person knowingly:
(1) offers or agrees to become a party to, or to
acquire an interest in, a contract involving the proceeds
of a judgment for indemnity under Section 245 before the
end of the period of redemption from the tax sale to
which the judgment relates;
(2) fraudulently induces a party to forego bringing
an action for the recovery of the mobile home;
(3) makes a deceptive misrepresentation during the
course of negotiating an agreement under subsection (c)
of Section 245; or
(4) conspires to violate any of the provisions of
this subsection.
(b) Commission of any one act described in subsection
(a) is a Class A misdemeanor. Commission of more than one act
described in subsection (a) during a single course of conduct
is a Class 4 felony. A second or subsequent conviction for
violation of any portion of this Section is a Class 4 felony.
(c) The State's Attorney of the county in which a
judgment for indemnity under Section 245 is entered may bring
a civil action in the name of the People of the State of
Illinois against a person who violates paragraph (1), (2), or
(3) of subsection (a). Upon a finding of liability in the
action the court shall enter judgment in favor of the People
in a sum equal to 3 times the amount of the judgment for
indemnity, together with costs of the action and reasonable
attorney's fees. The proceeds of any judgment under this
subsection shall be paid into the general fund of the county.
Section 255. Sales in error.
(a) When, upon application of the county collector, the
owner of the certificate of purchase, or a municipality that
owns or has owned the mobile home ordered sold, it appears to
the satisfaction of the court that ordered the mobile home
sold that any of the following subsections are applicable,
the court shall declare the sale to be a sale in error:
(1) the mobile home was not subject to taxation,
(1.5) the mobile home has been moved to a different
location,
(2) the taxes had been paid prior to the sale of
the mobile home,
(3) there is a double computation of the tax,
(4) the description is void for uncertainty,
(5) the assessor, chief county assessment officer,
board of review, board of appeals, or other county
official has made an error (other than an error of
judgment as to the value of any mobile home),
(5.5) the owner of the mobile home had tendered
timely and full payment to the county collector that the
owner reasonably believed was due and owing on the mobile
home, and the county collector did not apply the payment
to the mobile home; provided that this provision applies
only to mobile home owners, not their agents or
third-party payors, or
(6) prior to the tax sale a voluntary or
involuntary petition has been filed by or against the
legal or beneficial owner of the mobile home requesting
relief under the provisions of 11 U.S.C. Chapter 7, 11,
12, or 13.
(b) When, upon application of the owner of the
certificate of purchase only, it appears to the satisfaction
of the court that ordered the mobile home sold that any of
the following subsections are applicable, the court shall
declare the sale to be a sale in error:
(1) A voluntary or involuntary petition under the
provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
filed subsequent to the tax sale and prior to the
issuance of the tax certificate of title.
(2) The mobile home sold has been substantially
destroyed or rendered uninhabitable or otherwise unfit
for occupancy subsequent to the tax sale and prior to the
issuance of the tax certificate of title.
If a sale is declared to be a sale in error, the county
clerk shall make entry in the tax judgment, sale, redemption
and forfeiture record, that the mobile home was erroneously
sold, and the county collector shall, on demand of the owner
of the certificate of purchase, refund the amount paid, pay
any interest and costs as may be ordered under Sections 260
through 280, and cancel the certificate so far as it relates
to the mobile home. The county collector shall deduct from
the accounts of the appropriate taxing bodies their pro rata
amounts paid.
Section 260. Interest on refund.
(a) In those cases which arise solely under grounds set
forth in Section 255 or 395, and in no other cases, the court
which orders a sale in error shall also award interest on the
refund of the amount paid for the certificate of purchase,
together with all costs paid by the owner of the certificate
of purchase or his or her assignor which were posted to the
tax judgment, sale, redemption and forfeiture record, except
as otherwise provided in this Section. Except as otherwise
provided in this Section, interest shall be awarded and paid
at the rate of 1% per month from the date of sale to the date
of payment to the tax purchaser, or in an amount equivalent
to the penalty interest which would be recovered on a
redemption at the time of payment pursuant to the order for
sale in error, whichever is less.
(b) Interest on the refund to the owner of the
certificate of purchase shall not be paid (i) in any case in
which the mobile home sold has been substantially destroyed
or rendered uninhabitable or otherwise unfit for occupancy,
(ii) when the sale in error is made pursuant to Section 395,
or (iii) in any other case where the court determines that
the tax purchaser had actual knowledge prior to the sale of
the grounds on which the sale is declared to be erroneous.
(c) When the county collector files a petition for sale
in error under Section 255 and mails a notice thereof by
certified or registered mail to the tax purchaser, any
interest otherwise payable under this Section shall cease to
accrue as of the date the petition is filed, unless the tax
purchaser agrees to an order for sale in error upon the
presentation of the petition to the court. Notices under
this subsection may be mailed to the original owner of the
certificate of purchase, or to the latest assignee, if known.
When the owner of the certificate of purchase contests the
collector's petition solely to determine whether the grounds
for sale in error are such as to support a claim for
interest, the court may direct that the principal amount of
the refund be paid to the owner of the certificate of
purchase forthwith. If the court thereafter determines that a
claim for interest lies under this Section, it shall award
such interest from the date of sale to the date the principal
amount was paid.
Section 265. Refund of other taxes paid by holder of
certificate of purchase. The court which orders a sale in
error shall order the refund of all other taxes paid by the
owner of the certificate of purchase or his or her assignor
which were validly posted to the tax judgment, sale
redemption and forfeiture record subsequent to the tax sale,
together with interest on the other taxes under the same
terms as interest is otherwise payable under Section 260. The
interest under this Section shall be calculated at the rate
of 1% per month from the date the other taxes were paid and
not from the date of sale. The collector shall take credit
in settlement of his or her accounts for the refund of the
other taxes as in other cases of sale in error under Section
255.
Section 270. Orders for payment of interest. The county
treasurer may determine in his or her discretion whether
payment of interest and costs shall be made as provided in
Section 275, 280, or 285. If the treasurer determines not to
make payment as provided in those Sections, the treasurer
shall pay any interest or costs awarded under this Section
pro rata from those accounts where the principal refund of
the tax sale purchase price under Section 275 is taken.
Section 275. Fund for payment of interest. In counties
of under 3,000,000 inhabitants, the county board may impose a
fee of up to $10, which shall be paid to the county
collector, upon each person purchasing any mobile home at a
sale held under this Act, prior to the issuance of any
certificate of purchase. That amount shall be included in the
price paid for the certificate of purchase and the amount
required to redeem under Section 300.
All sums of money received under this Section shall be
paid by the collector to the county treasurer of the county
in which the mobile home is situated for deposit into a
special fund. It shall be the duty of the county treasurer,
as trustee of the fund, to invest the principal and income of
the fund from time to time, if not immediately required for
payments under this Section, in investments as are authorized
by Sections 3-10009 and 3-11002 of the Counties Code. The
fund shall be held to satisfy orders for payment of interest
and costs obtained against the county treasurer as trustee of
the fund. No payment shall be made from the fund except by
order of the court declaring a sale in error under Section
255. Any moneys accumulated in the fund by the county
treasurer in excess of $500,000 shall be paid each year prior
to the commencement of the annual tax sale, first to satisfy
any existing unpaid judgments entered pursuant to Section
235, and any funds remaining thereafter shall be paid to the
general fund of the county.
Section 280. Claims for interest and costs. Any person
claiming interest or costs under Sections 260 through 275
shall include the claim in his or her petition for sale in
error under Section 255. Any claim for interest or costs
which is not included in the petition is waived, except
interest or costs may be awarded to the extent permitted by
this Section upon a sale in error petition filed by the
county collector, without requiring a separate filing by the
claimant. Any order for interest or costs upon the petition
for sale in error shall be deemed to be entered against the
county treasurer as trustee of the fund created by Section
275. The fund shall be the sole source for payment and
satisfaction of orders for interest or costs, except as
otherwise provided in this Section. If the court determines
that the fund has been depleted and will not be restored in
time to pay an award with reasonable promptness, the court
may authorize the collector to pay the interest portion of
the award pro rata from those accounts where the principal
refund of the tax sale purchase price under Section 255 is
taken.
Section 285. Recovery of amount of tax paid by purchaser
at erroneous sale. In addition to all other remedies, when
the purchaser or assignee of a certificate of purchase that
has been declared an erroneous sale, has paid any tax upon
the mobile home sold, which was not paid by the owner of the
mobile home and was not refunded to the tax purchaser or
assignee by the county, the purchaser or assignee may recover
from the owner the amount he or she paid, with 10% interest,
as money paid for the owner's use.
Division 7. Redemption procedures and notice requirements
Section 290. Right of redemption.
(a) Mobile homes sold under this Act may be redeemed
only by those persons having a right of redemption as defined
in this Section and only in accordance with this Act.
A right to redeem a mobile home from any sale under this
Act shall exist in any owner or person interested in that
mobile home whether or not the interest in the mobile home
sold is recorded or filed. Any redemption shall be presumed
to have been made by or on behalf of the owners and persons
interested in the mobile home and shall inure to the benefit
of the persons having the certificate of title to the mobile
home redeemed, subject to the right of the person making the
redemption to be reimbursed by the persons benefited.
(b) Any person who desires to redeem and does not desire
to contest the validity of a petition for tax certificate of
title may redeem pursuant to this Section and related
Sections of this Act without submitting a written protest
under Section 21-380.
Section 295. Period of redemption. Mobile homes sold
under this Act may be redeemed on or before the expiration of
2 years and 6 months from the date of sale. If, however, the
court that ordered the mobile home sold, upon the verified
petition of the holder of the certificate of purchase brought
within 4 months from the date of sale, finds and declares
that the mobile home is abandoned, then the court may order
that the mobile home may be redeemed at any time on or before
the expiration of 1 year from the date of sale. Notice of the
hearing on a petition to declare the mobile home abandoned
shall be given to the owner or owners of the mobile home and
to the person in whose name the taxes were last assessed, by
certified or registered mail sent to their last known
addresses at least 5 days before the date of the hearing.
If the period of redemption has been extended by the
certificate holder as provided in Section 330, the mobile
home may be redeemed on or before the extended redemption
date.
Section 300. Amount of redemption. Any person desiring
to redeem shall deposit an amount specified in this Section
with the county clerk of the county in which the mobile home
is situated, in legal money of the United States, or by
cashier's check, certified check, post office money order or
money order, issued by a financial institution insured by an
agency or instrumentality of the United States, payable to
the county clerk of the proper county. The deposit shall be
deemed timely only if actually received in person at the
county clerk's office prior to the close of business as
defined in Section 3-2007 of the Counties Code on or before
the expiration of the period of redemption or by United
States mail with a post office cancellation mark dated not
less than one day prior to the expiration of the period of
redemption. The deposit shall be in an amount equal to the
total of the following:
(a) the certificate amount, which shall include all
tax principal, interest, and penalties paid by the tax
purchaser together with costs and fees of sale and fees
paid under Sections 235 and 260 through 280;
(b) the accrued penalty, computed through the date
of redemption as a percentage of the certificate amount,
as follows:
(1) if the redemption occurs on or before the
expiration of 6 months from the date of sale, the
certificate amount times the penalty bid at sale;
(2) if the redemption occurs after 6 months
from the date of sale, and on or before the
expiration of 12 months from the date of sale, the
certificate amount times 2 times the penalty bid at
sale;
(3) if the redemption occurs after 12 months
from the date of sale and on or before the
expiration of 18 months from the date of sale, the
certificate amount times 3 times the penalty bid at
sale;
(4) if the redemption occurs after 18 months
from the date of sale and on or before the
expiration of 24 months from the date of sale, the
certificate amount times 4 times the penalty bid at
sale;
(5) if the redemption occurs after 24 months
from the date of sale and on or before the
expiration of 30 months from the date of sale, the
certificate amount times 5 times the penalty bid at
sale;
(6) if the redemption occurs after 30 months
from the date of sale and on or before the
expiration of 36 months from the date of sale, the
certificate amount times 6 times the penalty bid at
sale.
(c) The total of all taxes, accrued interest on
those taxes, and costs charged in connection with the
payment of those taxes, which have been paid by the tax
certificate holder on or after the date those taxes
became delinquent together with 12% penalty on each
amount so paid for each year or portion thereof
intervening between the date of that payment and the date
of redemption. In counties with less than 3,000,000
inhabitants, however, a tax certificate holder may not
pay the subsequent tax for any year, nor shall any tender
of such a payment be accepted, until the subsequent tax
has become delinquent or until after the holder of the
certificate of purchase has filed a petition for a tax
certificate of title under Section 390. The person
redeeming shall also pay the amount of interest charged
on the subsequent tax and paid as a penalty by the tax
certificate holder.
(d) Any amount paid to redeem a forfeiture
occurring subsequent to the tax sale together with 12%
penalty thereon for each year or portion thereof
intervening between the date of the forfeiture redemption
and the date of redemption from the sale.
(e) Any amount paid by the certificate holder for
redemption of a subsequently occurring tax sale.
(f) All fees paid to the county clerk under Section
22-5.
(g) All fees paid to the circuit clerk and the
sheriff or coroner in connection with the filing of the
petition for tax certificate of title and service of
notices under Sections 375 through 390 and 400 in
addition to (1) a fee of $35 if a petition for tax
certificate of title has been filed, which fee shall be
posted to the tax judgement, sale, redemption, and
forfeiture record, to be paid to the purchaser or his or
her assignee; (2) a fee of $4 if a notice under Section
365 has been filed, which fee shall be posted to the tax
judgment, sale, redemption, and forfeiture record, to be
paid to the purchaser or his or her assignee; and (3) all
costs paid to record a lis pendens notice in connection
with filing a petition under this Act. The fees in (1)
and (2) of this paragraph (g) shall be exempt from the
posting requirements of Section 305.
(h) All fees paid for publication of notice of the
tax sale in accordance with Section 380.
(i) All sums paid to any city, village or
incorporated town for reimbursement under Section 395.
(j) All costs and expenses of receivership under
Section 350, to the extent that these costs and expenses
exceed any income from the mobile home in question, if
the costs and expenditures have been approved by the
court appointing the receiver and a certified copy of the
order or approval is filed and posted by the certificate
holder with the county clerk. Only actual costs expended
may be posted on the tax judgment, sale, redemption and
forfeiture record.
Section 305. Posting requirements. Except as otherwise
provided in Section 300, the county clerk shall not be
required to include amounts described in paragraphs (c)
through (j) of Section 300 in the payment for redemption or
the amount received for redemption, nor shall payment
thereof be a charge on the mobile home sold for taxes, unless
the tax certificate holder has filed and posted with the
county clerk prior to redemption and in any event not less
than 30 days prior to the expiration of the period of
redemption or extended period of redemption an official,
original or duplicate receipt for payment of those fees,
costs, and expenses permitted under paragraphs (c) through
(j) of Section 300.
Section 310. Deficiency judgment. If the sold mobile
home is not redeemed, a deficiency judgment shall not be
taken on account of the receivership proceedings against the
owner or owners of the mobile home. In the event that income
to the receiver exceeds expenditures, net income is to be
deposited with the clerk of the court ordering the tax sale
and shall be distributed as determined by the court ordering
the appointment of the receiver.
Section 315. Redemption of a forfeited mobile home.
Except as otherwise provided in Section 320, any mobile home
forfeited to the State may be redeemed or sold in the
following manner:
When a mobile home has been forfeited for delinquent
taxes, the person desiring to redeem shall apply to the
county clerk who shall order the county collector to receive
from the person the amount of the forfeited taxes, statutory
costs, interest prior to forfeiture, printer's fees due
thereon and, in addition, forfeiture interest at a rate of
12% per year or fraction thereof. Upon presentation of the
county clerk's order to the county collector, the collector
shall receive the amount due on account of forfeited taxes
and give the person duplicate receipts, setting forth a
description of the mobile home and amount received. One of
the receipts shall be countersigned by the county clerk and,
when so countersigned, shall be evidence of the redemption of
the mobile home. The receipt shall not be valid until it is
countersigned by the county clerk. The other receipt shall be
filed by the county clerk in his or her office, and the clerk
shall make a proper entry of the redemption of the mobile
home on the appropriate books in his or her office and charge
the amount of the redemption to the county collector.
Section 320. Partial redemption of forfeited mobile
homes. In counties with less than 3,000,000 inhabitants, when
forfeited taxes on a mobile home remain unpaid for one or
more years, it is permissible to pay to the county or
township collector, one or more full years of back or
forfeited taxes, interest prior to forfeiture, statutory
costs, printers' fees, and forfeiture interest or penalties,
attaching thereto beginning with the earliest year for which
the taxes are unpaid. In no case shall payment on account of
a designated years' taxes be accepted unless the sums due for
prior years have first been paid or are tendered at the same
time.
Any person seeking to make payments under this Section
shall notify the county clerk of his or her intention in
person or by agent or in writing. If notice is given while
the collector has possession of the collector's books, the
county clerk shall prepare an addendum to be presented to the
collector and attached, by the collector, to the collector's
books on which the description of the mobile home involved
appears, which addendum shall become a part of the
collector's books. If notice is given after the tax sale,
but before receipt by the county collector of the current
collector's books, the county clerk shall prepare an addendum
and attach it to the Tax Judgment, Sale, Redemption, and
Forfeiture record, on which the mobile home involved appears,
which addendum shall become a part of that record.
The addendum shall show separately, for the year or years
to be paid, (a) the amount of back or forfeited taxes, (b)
interest prior to forfeiture, (c) statutory costs and
printers' fees, and (d) forfeiture interest or penalties
attaching thereto. The county clerk shall, at the same time,
order the county or town collector to receive from the person
the amount due on account of the taxes, for the year or years
determined as provided above, of the back or forfeited taxes,
interest prior to forfeiture, statutory costs, printers'
fees, and forfeiture interest or penalties to date attaching
to the back or forfeited taxes.
Upon presentation of the order from the county clerk, and
receipt of the addendum if the books are in the collector's
possession, the collector shall receive the sum tendered on
account of the taxes for the year or years designated, and
make out duplicate receipts therefor. The receipts shall set
forth a description of the mobile home, the year or years
paid, and the total amount received. One copy of the receipt
shall be given the person making payment and, when
countersigned by the county clerk, shall be evidence of the
payment therein set forth. The second copy shall be filed by
the county clerk in his or her office.
If the collector's books are in the collector's
possession, he or she shall enter the payment on the current
collector's books or addendum, and he or she shall also enter
any unpaid balance on the Tax Judgment, Sale, Redemption and
Forfeiture record at the proper time.
After the tax sale and before receipt by the county
collector of the current collector's books, the county clerk
shall make a proper entry on the Tax Judgment, Sale,
Redemption and Forfeiture record, and shall charge the county
collector with the sum received. The county clerk shall also
enter any unpaid balance on the county collector's books at
the proper time.
The county collector shall distribute all sums received
as required by law.
Section 325. Redemption under protest. Any person
redeeming under this Section at a time subsequent to the
filing of a petition under Section 390 or 360, who desires to
preserve his or her right to defend against the petition for
a tax certificate of title, shall accompany the deposit for
redemption with a writing substantially in the following
form:
Redemption Under Protest
Tax Deed Case No. ...........................................
Vol. No. ....................................................
Mobile Home Vehicle Identification No.
(or other unique description)............................
Original Amount of Tax $.....................................
Amount Deposited for Redemption $............................
Name of Petitioner...........................................
Tax Year Included in Judgment................................
Date of Sale.................................................
Expiration Date of the Period of Redemption..................
To the county clerk of ........ County:
This redemption is made under protest for the following
reasons: (here set forth and specify the grounds relied upon
for the objection)
Name of party redeeming......................................
Address......................................................
Any grounds for the objection not specified at the time
of the redemption under protest shall not be considered by
the court. The specified grounds for the objections shall be
limited to those defenses as would provide sufficient basis
to deny entry of an order for issuance of a tax certificate
of title. Nothing in this Section shall be construed to
authorize or revive any objection to the tax sale or
underlying taxes which was estopped by entry of the order for
sale as set forth in Section 420.
The person protesting shall present to the county clerk 3
copies of the written protest signed by himself or herself.
The clerk shall write or stamp the date of receipt upon the
copies and sign them. He or she shall retain one of the
copies, another he or she shall deliver to the person making
the redemption, who shall file the copy with the clerk of the
court in which the tax certificate of title petition is
pending, and the third he or she shall forward to the
petitioner named therein.
The county clerk shall enter the redemption as provided
in Section 165 and shall note the redemption under protest.
The redemption money so deposited shall not be distributed to
the holder of the certificate of purchase but shall be
retained by the county clerk pending disposition of the
petition filed under Section 390.
Redemption under protest constitutes the appearance of
the person protesting in the proceedings under Sections 390
through 412 and that person shall present a defense to the
petition for tax certificate of title at the time which the
court directs. Failure to appear and defend shall constitute
a waiver of the protest and the court shall order the
redemption money distributed to the holder of the certificate
of purchase upon surrender of that certificate and shall
dismiss the proceedings.
When the party redeeming appears and presents a defense,
the court shall hear and determine the matter. If the
defense is not sustained, the court shall order the protest
stricken and direct the county clerk to distribute the
redemption money upon surrender of the certificate of
purchase and shall order the party redeeming to pay the
petitioner reasonable expenses, actually incurred, including
the cost of withheld redemption money, together with a
reasonable attorney's fee. Upon a finding sustaining the
protest in whole or in part, the court may declare the sale
to be a sale in error under Section 255 or Section 405, and
shall direct the county clerk to return all or part of the
redemption money or deposit to the party redeeming.
Section 330. Extension of period of redemption. The
purchaser or his or her assignee of a mobile home sold for
nonpayment of taxes may extend the period of redemption at
any time before the expiration of the original period of
redemption, or thereafter prior to the expiration of any
extended period of redemption, for a period which will expire
not later than 3 years from the date of sale, by filing with
the county clerk of the county in which the mobile home is
located a written notice to that effect describing the mobile
home, stating the date of the sale and specifying the
extended period of redemption. If prior to the expiration of
the period of redemption or extended period of redemption a
petition for tax certificate of title has been filed under
Section 390, upon application of the petitioner, the court
shall allow the purchaser or his or her assignee to extend
the period of redemption after expiration of the original
period or any extended period of redemption, provided that
any extension allowed will expire not later than 3 years from
the date of sale. If the period of redemption is extended,
the purchaser or his or her assignee must give the notices
provided for in Section 370 at the specified times prior to
the expiration of the extended period of redemption by
causing a sheriff (or if he or she is disqualified, a
coroner) of the county in which the mobile home, or any part
thereof, is located to serve the notices as provided in
Sections 375 and 380. The notices may also be served as
provided in Sections 375 and 380 by a special process server.
Section 335. Effect of receipt of redemption money,
forfeiture, withdrawal, or return of certificate. The receipt
of the redemption money on any mobile home by any purchaser
or assignee, on account of any forfeiture or withdrawal, or
the return of the certificate of purchase, withdrawal or
forfeiture for cancellation, shall operate as a release of
the claim to the mobile home under, or by virtue of, the
purchase, withdrawal, or forfeiture.
Section 340. County clerk to pay successor redemption
money collected. At the expiration of his or her term of
office, the county clerk shall pay over to the successor in
office all moneys in his or her hands received for redemption
from sale for taxes on a mobile home.
Section 345. Notice of order setting aside redemption.
The order shall provide that any person who was entitled to
redeem may pay to the county clerk within 30 days after the
entry of the order the amount necessary to redeem the mobile
home from the sale as of the last day of the period of
redemption. The county clerk shall make an entry in the
annual tax judgment, sale, redemption, and forfeiture record
reflecting the entry of the order and shall immediately upon
request provide an estimate of the amount required to effect
a redemption as of the last date of the period of redemption.
If the amount is paid within 30 days after entry of the
order, then the court shall enter an order declaring the
taxes to be paid as if the mobile home had been redeemed
within the time required by law and dismissing the petition
for tax certificate of title. A tax certificate of title
shall not be issued within the 30-day period. Upon surrender
of the certificate of purchase, the county clerk shall
distribute the funds deposited as if a timely redemption had
been made.
Division 8. Other procedures
Section 350. Waste; appointment of receiver. After any
sale of mobile homes under this Act and until a tax
certificate of title has been issued or until redemption has
been made, no waste shall be committed on any of the mobile
homes involved. The court which ordered the mobile home to be
sold may, upon verified petition of the holder of the
certificate of purchase, take such action as the court deems
necessary and desirable to prevent the commission of waste.
If the mobile home sold is abandoned or if any mobile
home park owner, municipality or other local governmental
body has legal action pending because the mobile home
violates local building, housing, or fire ordinances, or
mobile home park rules and regulations, or because the taxes
on the mobile home are delinquent for 2 or more years, the
court which ordered the mobile home to be sold may, upon
verified petition of the holder of the certificate of
purchase, enter an order for appointment of a receiver.
Notice of the hearing for appointment of the receiver shall
be given to the owner or owners of the mobile home and to the
person in whose name the taxes were last assessed, by
certified or registered mail sent to their last known
addresses, at least 5 days prior to the date of the hearing.
The receiver may take only that action, subject to court
approval, as is necessary for the preservation of the mobile
home or is necessary to correct conditions at the mobile home
that fail to conform to minimum standards of health and
safety, as set forth in local ordinances or mobile home park
rules and regulations. If a receiver is appointed, all costs
and expenses advanced by the receiver shall be repaid as
provided for in Section 300 before any redemption is
considered complete. The receiver shall be discharged upon
redemption from the tax sale or upon entry of an order
directing issuance of a tax certificate of title. Nothing
herein contained is intended to prevent a court from
appointing the holder of the certificate of purchase as
receiver. The holder of the certificate of purchase shall be
made a party to any action or proceeding to demolish or
destroy a mobile home where the mobile home has been sold for
failure to pay taxes and the period of redemption has not
expired.
Section 355. Action for collection of taxes. The county
board may, at any time after final judgment and order of sale
against a delinquent mobile home under Section 120, institute
a civil action in the name of the People of the State of
Illinois in the circuit court for the whole amount due for
taxes on the delinquent or forfeited mobile home. Any county,
city, village, incorporated town, school district or other
municipal corporation to which any tax is due, may, at any
time after final judgment under Section 120, institute a
civil action in its own name, in the circuit court, for the
amount of the tax due to it on the delinquent or forfeited
mobile home, and prosecute the same to final judgment. On the
sale of any mobile home following judgment in the civil
action, the county, city, village, incorporated town, school
district or other municipal corporation, interested in the
collection of the tax, may become purchaser at the sale. If
the mobile home so sold is not redeemed the purchaser may
acquire, hold, sell or dispose of the title thereto, the same
as individuals may do under the laws of this State. In any
action for delinquent or forfeited taxes, the fact that the
mobile home was assessed to a person shall be prima facie
evidence that the person was the owner thereof, and was
liable for the taxes for the year or years for which the
assessment was made. That fact may be proved by the
introduction in evidence of the proper assessment book or
roll, or other competent proof. Any judgment rendered for
delinquent or forfeited taxes under this Section shall
include the costs of the action and reasonable attorney's
fees.
Section 360. Tax foreclosure proceedings. In tax
foreclosure proceedings, the purchaser or assignee shall file
a petition for a certificate of title in the proceeding in
which the foreclosure order was entered. Notice of the
filing of the petition and of the hearing on the petition
shall be given in conformity with rule or practice of court
in regard to motions as in other civil actions.
Division 9. Tax certificates of title and procedures
Section 365. Notice of sale and redemption rights. In
order to be entitled to a tax certificate of title, within 4
months and 15 days after any sale held under this Act, the
purchaser or his or her assignee shall deliver to the county
clerk a notice to be given to the party in whose name the
taxes are last assessed as shown by the most recent tax
collector's warrant books, in at least 10 point type in the
following form completely filled in:
TAKE NOTICE
County of ...............................................
Date Premises Sold ......................................
Certificate No. .........................................
Sold for Taxes of (year) ................................
Warrant No. ............... Inst. No. .................
THIS PROPERTY HAS BEEN SOLD FOR
DELINQUENT TAXES
Property located at .........................................
Mobile Home Vehicle Identification No. (or other unique
description) ................................................
.............................................................
.............................................................
This notice is to advise you that the above mobile home
has been sold for delinquent taxes and that the period of
redemption from the sale will expire on .....................
This notice is also to advise you that a petition will be
filed for a tax certificate of title which will transfer
certificate of title and the right to possession of this
mobile home if redemption is not made on or before ..........
At the date of this notice the total amount which you
must pay in order to redeem the above mobile home is ........
YOU ARE URGED TO REDEEM IMMEDIATELY TO
PREVENT LOSS OF PROPERTY
Redemption can be made at any time on or before .... by
applying to the County Clerk of .... County, Illinois at the
County Court House in ...., Illinois.
The above amount is subject to increase at 6 month
intervals from the date of sale. Check with the county clerk
as to the exact amount you owe before redeeming. Payment
must be made by certified check, cashier's check, money
order, or in cash.
For further information contact the County Clerk.
...............................
Purchaser or Assignee
Dated (insert date).
Within 10 days after receipt of said notice, the county
clerk shall mail to the addresses supplied by the purchaser
or assignee, by registered or certified mail, copies of said
notice to the party in whose name the taxes are last assessed
as shown by the most recent tax collector's warrant books.
The purchaser or assignee shall pay to the clerk postage plus
the sum of $10. The clerk shall write or stamp the date of
receiving the notices upon the copies of the notices, and
retain one copy.
Section 370. Notice of expiration of period of
redemption. A purchaser or assignee shall not be entitled to
a tax certificate of title to the mobile home sold unless,
not less than 3 months nor more than 5 months prior to the
expiration of the period of redemption, he or she gives
notice of the sale and the date of expiration of the period
of redemption to the owners, occupants, and parties
interested in the mobile home as provided below.
The Notice to be given to the parties shall be in at
least 10 point type in the following form completely filled
in:
TAX DEED NO. .................... FILED ....................
TAKE NOTICE
County of ...............................................
Date Premises Sold ......................................
Certificate No. ........................................
Sold for Taxes of (year) ................................
Warrant No. ................ Inst. No. .................
THIS PROPERTY HAS BEEN SOLD FOR
DELINQUENT TAXES
Property located at .........................................
Mobile Home Vehicle Identification No. (or other unique
description) ................................................
.............................................................
.............................................................
This notice is to advise you that the above mobile home
has been sold for delinquent taxes and that the period of
redemption from the sale will expire on .....................
.............................................................
The amount to redeem is subject to increase at 6 month
intervals from the date of sale and may be further increased
if the purchaser at the tax sale or his or her assignee pays
any subsequently accruing taxes to redeem the mobile home
from subsequent forfeitures or tax sales. Check with the
county clerk as to the exact amount you owe before redeeming.
This notice is also to advise you that a petition has
been filed for a tax certificate of title which will transfer
certificate of title and the right to possession of this
mobile home if redemption is not made on or before ..........
This matter is set for hearing in the Circuit Court of
this county in ...., Illinois on .....
You may be present at this hearing but your right to
redeem will already have expired at that time.
YOU ARE URGED TO REDEEM IMMEDIATELY
TO PREVENT LOSS OF PROPERTY
Redemption can be made at any time on or before .... by
applying to the County Clerk of .... County, Illinois at the
County Court House in ...., Illinois.
For further information contact the County Clerk.
..........................
Purchaser or Assignee.
Section 375. Service of notice. The purchaser or his or
her assignee shall give the notice required by Section 370 by
causing it to be published in a newspaper as set forth in
Section 380. In addition, the notice shall be served by a
process server or sheriff (or if he or she is disqualified,
by a coroner) of the county in which the mobile home is
located upon owners who reside in the mobile home sold by
leaving a copy of the notice with those owners personally.
The same form of notice shall also be served upon all
other owners and parties interested in the mobile home, if
upon diligent inquiry they can be found in the county, and
upon the occupants of the mobile home in the following
manner:
(a) as to individuals, by (1) leaving a copy of the
notice with the person personally or (2) by leaving a
copy at his or her usual place of residence with a person
of the family, of the age of 13 years or more, and
informing that person of its contents. The person making
the service shall cause a copy of the notice to be sent
by registered or certified mail, return receipt
requested, to that party at his or her usual place of
residence;
(b) as to public and private corporations,
municipal, governmental and quasi-municipal corporations,
partnerships, receivers and trustees of corporations, by
leaving a copy of the notice with the person designated
by the Civil Practice Law.
When a party interested in the mobile home is a trustee,
notice served upon the trustee shall be deemed to have been
served upon any beneficiary or note holder thereunder unless
the holder of the note is disclosed of record.
When a judgment is a lien upon the mobile home sold, the
holder of the lien shall be served with notice if the name of
the judgment debtor as shown in the transcript, certified
copy or memorandum of judgment filed of record is identical,
as to given name and surname, with the name of the party
interested as it appears of record.
If any owner or party interested, upon diligent inquiry
and effort, cannot be found or served with notice in the
county as provided in this Section, and the person in actual
occupancy and possession is tenant to, or in possession under
the owners or the parties interested in the mobile home, then
service of notice upon the tenant, occupant or person in
possession shall be deemed service upon the owners or parties
interested.
If any owner or party interested, upon diligent inquiry
and effort cannot be found or served with notice in the
county, then the person making the service shall cause a copy
of the notice to be sent by registered or certified mail,
return receipt requested, to that party at his or her
residence, if ascertainable.
Section 380. Proof of service of notice; publication of
notice. The sheriff or coroner serving notice under Section
375 shall endorse his or her return thereon and file it with
the clerk of the circuit court and it shall be a part of the
court record. A special process server appointed under
Section 375 shall make his or her return by affidavit and
shall file it with the clerk of the circuit court, where it
shall be a part of the court record. If a sheriff, special
process server, or coroner to whom any notice is delivered
for service, neglects or refuses to make the return, the
purchaser or his or her assignee may petition the court to
enter a rule requiring the sheriff, special process server,
or coroner to make return of the notice on a day to be fixed
by the court, or to show cause on that day why he or she
should not be attached for contempt of the court. The
purchaser or assignee shall cause a written notice of the
rule to be served upon the sheriff, special process server,
or coroner. If good and sufficient cause to excuse the
sheriff, special process server, or coroner is not shown, the
court shall adjudge him or her guilty of contempt, and shall
proceed to punish him as in other cases of contempt.
If the mobile home is located in a municipality in a
county with less than 3,000,000 inhabitants, the purchaser or
his or her assignee shall also publish a notice as to the
owner or party interested, in some newspaper published in the
municipality. If the mobile home is not in a municipality in
a county with less than 3,000,000 inhabitants, or if no
newspaper is published therein, the notice shall be published
in some newspaper in the county. If no newspaper is
published in the county, then the notice shall be published
in the newspaper that is published nearest the county seat of
the county in which the mobile home is located. If the owners
and parties interested in the mobile home upon diligent
inquiry are unknown to the purchaser or his or her assignee,
the publication as to such owner or party interested, may be
made to unknown owners or parties interested. Any notice by
publication given under this Section shall be given 3 times
at any time after filing a petition for tax certificate of
title, but not less than 3 months nor more than 5 months
prior to the expiration of the period of redemption. The
publication shall contain (a) notice of the filing of the
petition for tax certificate of title, (b) the date on which
the petitioner intends to make application for an order on
the petition that a tax certificate of title issue, (c) a
description of the mobile home, (d) the date upon which the
mobile home was sold, (e) the taxes for which it was sold and
(f) the date on which the period of redemption will expire.
The publication shall not include more than one mobile home
listed and sold in one description, except as provided in
Section 35, and except that when more than one mobile home is
owned by one person, all of the mobile homes owned by that
person may be included in one notice.
Section 385. Mailed notice. In addition to the notice
required to be served not less than 3 months nor more than 5
months prior to the expiration of the period of redemption,
the purchaser or his or her assignee shall prepare and
deliver to the clerk of the circuit court of the county in
which the mobile home is located, the notice provided for in
this Section, together with the statutory costs for mailing
the notice by certified mail, return receipt requested. The
form of notice to be mailed by the clerk shall be identical
in form to that provided by Section 370 for service upon
owners residing in the mobile home sold, except that it shall
bear the signature of the clerk and shall designate the
parties to whom it is to be mailed. The clerk may furnish
the form. The clerk shall promptly mail the notices
delivered to him or her by certified mail, return receipt
requested. The certificate of the clerk that he or she has
mailed the notices, together with the return receipts, shall
be filed in and made a part of the court record. The notices
shall be mailed to the owners of the mobile home at their
last known addresses, and to those persons who are entitled
to service of notice as occupants.
Section 390. Petition for certificate of title. At any
time within 5 months but not less than 3 months prior to the
expiration of the redemption period for a mobile home sold
pursuant to judgment and order of sale under Sections 55
through 65 or 200, the purchaser or his or her assignee may
file a petition in the circuit court in the same proceeding
in which the judgment and order of sale were entered, asking
that the court direct the county clerk to issue a tax
certificate of title if the mobile home is not redeemed from
the sale. The petition shall be accompanied by the statutory
filing fee.
Notice of filing the petition and the date on which the
petitioner intends to apply for an order on the petition that
a certificate of title be issued if the mobile home is not
redeemed shall be given to occupants, owners, and persons
interested in the mobile home as part of the notice provided
in Sections 370 through 385, except that only one publication
is required. The county clerk shall be notified of the filing
of the petition and any person owning or interested in the
mobile home may, if he or she desires, appear in the
proceeding.
Section 395. Reimbursement of municipality before
issuance of tax certificate of title. An order for the
issuance of a tax certificate of title under this Act shall
not be entered affecting the title to or interest in any
mobile home in which a city, village, or incorporated town
has an interest under the police and welfare power by
advancements made from public funds, until the purchaser or
assignee makes reimbursement to the city, village, or
incorporated town of the money so advanced or the city,
village, or town waives its lien on the mobile home for the
money so advanced. However, in lieu of reimbursement or
waiver, the purchaser or his or her assignee may make
application for and the court shall order that the tax
purchase be set aside as a sale in error. A filing or
appearance fee shall not be required of a city, village, or
incorporated town seeking to enforce its claim under this
Section in a tax certificate of title proceeding.
Section 400. Issuance of certificate of title;
possession.
(a) If the redemption period expires and the mobile home
has not been redeemed and all taxes which became due and
payable subsequent to the sale have been paid and all
forfeitures and sales which occur subsequent to the sale have
been redeemed and the notices required by law have been given
and all advancements of public funds under the police power
made by a city, village, or town under Section 395 have been
paid and the petitioner has complied with all the provisions
of law entitling him or her to a certificate of title, the
court shall so find and shall enter an order directing the
Secretary of State on the production of the certificate of
purchase and a certified copy of the order, to issue to the
purchaser or his or her assignee a tax certificate of title.
The court shall insist on strict compliance with Sections 370
through 385. Prior to the entry of an order directing the
issuance of a tax certificate of title, the petitioner shall
furnish the court with a report of proceedings of the
evidence received on the application for tax certificate of
title and the report of proceedings shall be filed and made a
part of the court record.
(b) If taxes for years prior to the year sold remain
delinquent at the time of the tax certificate of title
hearing, those delinquent taxes may be merged into the tax
certificate of title if the court determines that all other
requirements for receiving an order directing the issuance of
the tax certificate of title are fulfilled and makes a
further determination under either paragraph (1) or (2).
(1) Incomplete estimate.
(A) The mobile home in question was purchased
at an annual sale; and
(B) the statement and estimate of forfeited
taxes furnished by the county clerk pursuant to
Section 175 failed to include all delinquent taxes
as of the date of that estimate's issuance.
(2) Vacating order.
(A) The petitioner furnishes the court with a
certified copy of an order vacating a prior sale for
the subject mobile home;
(B) the order vacating the sale was entered
after the date of purchase for the subject taxes;
(C) the sale in error was granted pursuant to
paragraphs (1), (2), or (4) of subsection (b) of
Section 255 or Section 395; and
(D) the tax purchaser who received the sale in
error has no affiliation, direct or indirect, with
the petitioner in the present proceeding and that
petitioner has signed an affidavit attesting to the
lack of affiliation.
If delinquent taxes are merged into the tax certificate of
title pursuant to this subsection, a declaration to that
effect shall be included in the order directing issuance of
the tax certificate of title. Nothing contained in this
Section shall relieve any owner liable for delinquent mobile
home taxes under the Mobile Home Local Services Tax Act from
the payment of the taxes that have been merged into the title
upon issuance of the tax certificate of title.
(c) Upon application the court shall enter an order to
place the tax certificate of title grantee in possession of
the mobile home and may enter orders and grant relief as may
be necessary or desirable to maintain the grantee in
possession.
Section 402. Mobile homes located in manufactured home
community; requirements. The person who has a certificate of
purchase and obtains a court order directing the issuance of
a tax certificate of title under Section 400 for a mobile
home located on a lot in a manufactured home community is
liable for lot rent (at the prevailing rate) beginning on the
date of the entry of the court order and shall either (i)
qualify for tenancy in the manufactured home community in
accordance with the community's normal tenant qualification
and screening procedures or (ii) remove the mobile home from
the lot no later than 30 days after the date of the entry of
the court order.
Section 405. Tax certificate of title incontestable
unless order appealed or relief petitioned. Tax certificates
of title issued under Section 395 are incontestable except by
appeal from the order of the court directing the county clerk
to issue the tax certificate of title. However, relief from
such order may be had under Section 2-1401 of the Code of
Civil Procedure in the same manner and to the same extent as
may be had under that Section with respect to final orders
and judgments in other proceedings. The grounds for relief
under Section 2-1401 shall be limited to:
(1) proof that the taxes were paid prior to sale;
(2) proof that the mobile home was exempt from taxation;
(3) proof by clear and convincing evidence that the tax
certificate of title had been procured by fraud or deception
by the tax purchaser or his or her assignee; or
(4) proof by a person or party holding a recorded
ownership or other recorded interest in the mobile home that
he or she was not named as a party in the publication notice
as set forth in Section 380, and that the tax purchaser or
his or her assignee did not make a diligent inquiry and
effort to serve that person or party with the notices
required by Sections 370 through 390.
The court hearing a petition filed under this Section or
Section 2-1401 of the Code of Civil Procedure may
concurrently hear a petition filed under Section 235 and may
grant relief under either Section.
Section 410. Denial of certificate of title. If the court
refuses to enter an order directing the Secretary of State to
execute and deliver the tax certificate of title, because of
the failure of the purchaser to fulfill any of the above
provisions, and if the purchaser, or his or her assignee has
made a bona fide attempt to comply with the statutory
requirements for the issuance of the tax certificate of
title, it shall order the return of the purchase price, and
subsequent taxes and posted costs forthwith, as in case of
sales in error, except that no interest shall be paid.
Section 412. Tax certificate of titles to convey
merchantable title. This Section shall be liberally
construed so that tax certificate of titles shall convey
merchantable title.
Section 415. Form of certificate of title. A tax
certificate of title executed by the Secretary of State vests
in the grantee the certificate of title of the mobile home
therein described without further acknowledgment or evidence
of the conveyance. The conveyance shall be substantially in
the following form:
At a public sale of mobile homes for the nonpayment of
taxes, held in the .... County, on (insert date), the
following described mobile home was sold: (here place
description of mobile home conveyed). The mobile home not
having been redeemed from the sale, and it appearing that the
holder of the certificate of purchase of the mobile home has
complied with the laws of the State of Illinois necessary to
entitle (insert him, her or them) to a certificate of title
of the mobile home: I ...., (Secretary of State official)
...., in consideration of the mobile home and by virtue of
the statutes of the State of Illinois in such cases provided,
issue a certificate of title to .... for the mobile home
described above.
Dated (insert date).
Signature of ....................
(Secretary of State)
Section 420. Certificate of title; prima facie evidence
of regularity of sale.
(a) As to the mobile home conveyed therein, tax
certificates of title executed by the Secretary of State are
prima facie evidence of the following facts in all
controversies and suits in relation to the rights of the tax
certificate of title grantee and his or her heirs or assigns:
(1) the mobile home conveyed was subject to
taxation at the time the tax was charged and was listed
and charged in the time and manner required by law;
(2) the taxes were not paid at any time before the
sale;
(3) the mobile home was advertised for sale in the
manner and for the length of time required by law;
(4) the mobile home was sold for taxes as stated in
the certificate of title;
(5) the sale was conducted in the manner required
by law;
(6) the mobile home conveyed was not redeemed from
the sale within the time permitted by law;
(7) the grantee in the certificate of title was the
purchaser or assignee of the purchaser.
(b) Any order for the sale of a mobile home for
delinquent taxes, except as otherwise provided in this
Section, shall estop all parties from raising any objections
to the order or to a tax certificate of title based thereon,
which existed at or before the rendition of the order, and
which could have been presented as a defense to the
application for the order. The order itself is conclusive
evidence of its regularity and validity in all collateral
proceedings, except in cases where the tax was paid prior to
the sale or the mobile home was exempt from taxes.
Section 425. Order of court setting aside tax
certificate of title; payments to holder of certificate of
title.
(a) Any order of court vacating an order directing the
Secretary of State to issue a tax certificate of title based
upon a finding that the mobile home was not subject to
taxation, or that the taxes had been paid prior to the sale
of the mobile home, or that the tax sale was otherwise void,
shall declare the tax sale to be a sale in error pursuant to
Section 255 of this Act. The order shall direct the county
collector to refund to the tax certificate of title grantee
or his or her successors and assigns (or, if a tax
certificate of title has not yet issued, the holder of the
certificate of purchase) the following amounts:
(1) all taxes purchased, paid, or redeemed by the
tax purchaser or his or her assignee, or by the tax
certificate of title grantee or his or her successors and
assigns, whether before or after entry of the order for
tax certificate of title, with interest at the rate of 1%
per month from the date each amount was paid until the
date of payment pursuant to this Section;
(2) all costs paid and posted to the judgment
record and not included in paragraph (1) of this
subsection (a); and
(3) court reporter fees for the hearing on the
application for tax certificate of title and transcript
thereof, cost of certification of tax certificate of
title order, cost of issuance of tax certificate of
title, and cost of transferring certificate of title to
the tax purchaser.
(b) Except in those cases described in subsection (a) of
this Section, and unless the court on motion of the tax
certificate of title petitioner extends the redemption period
to a date not later than 3 years from the date of sale, any
order of court finding that an order directing the Secretary
of State to issue a tax certificate of title should be
vacated shall direct the party who successfully contested the
entry of the order to pay to the tax certificate of title
grantee or his or her successors and assigns (or, if a tax
certificate of title has not yet issued, the holder of the
certificate) within 90 days after the date of the finding:
(1) the amount necessary to redeem the mobile home
from the sale as of the last day of the period of
redemption, except that, if the sale is a scavenger sale
pursuant to Section 200 of this Act, the redemption
amount shall not include an amount equal to all
delinquent taxes on such mobile home which taxes were
delinquent at the time of sale; and
(2) amounts in satisfaction of municipal liens paid
by the tax purchaser or his or her assignee, and the
amounts specified in paragraphs (1) and (3) of subsection
(a) of this Section, to the extent the amounts are not
included in paragraph (1) of this subsection (b).
If the payment is not made within the 90-day period, the
petition to vacate the order directing the Secretary of State
to issue a tax certificate of title shall be denied with
prejudice, and the order directing the Secretary of State to
issue a tax certificate of title shall remain in full force
and effect. No final order vacating any order directing the
Secretary of State to issue a tax certificate of title shall
be entered pursuant to this subsection (b) until the payment
has been made.
Section 430. Failure to timely transfer certificate of
title; tax certificate of title is void. Unless the holder
of the certificate purchased at any tax sale under this Act
transfers the certificate of title within one year from and
after the time for redemption expires, the certificate of
purchase or order for tax certificate of title, and the sale
on which it is based, shall, after the expiration of the one
year period, be absolutely void with no right to
reimbursement. If the holder of the certificate of purchase
is prevented from obtaining a certificate of title by
injunction or order of any court, or by the refusal or
inability of any court to act upon the application for a tax
certificate of title, or by the refusal of the Secretary of
State to execute the same certificate of title, the time he
or she is so prevented shall be excluded from computation of
the one year period. Certificates of purchase and orders for
tax certificates of title executed by the court shall recite
the qualifications required in this Section.
Division 900. Amendatory provisions
Section 905. The Mobile Home Local Services Tax Act is
amended by changing Sections 6, 8, 9, and 10.1 as follows:
(35 ILCS 515/6) (from Ch. 120, par. 1206)
Sec. 6. Computation, certification, and distribution of
tax. Except as otherwise provided in this Section, within 60
days of receipt of each registration form, the county clerk
or, in counties in which a county assessor is elected
pursuant to Section 3-45 of the Property Tax Code, the county
assessor shall compute the tax due, as provided in Section 3,
and certify the tax to the county treasurer who shall mail
the tax bill to the owner of such mobile home at the time he
receives the certification or on the annual billing date,
whichever occurs later. If the registration form is
accompanied by a receipt for privilege taxes paid in Illinois
for the current tax year, no further privilege tax shall be
imposed for the remainder of the current tax year. If the
mobile home is initially harbored after the annual liability
date, as provided in Section 3 of this Act, the county clerk
or county assessor shall reduce such tax 1/12 for each month
that has passed since such annual liability date. A mobile
home harbored after the first day of such month shall be
considered to have been harbored for the entire month for the
purposes of this Section. Thereafter, for taxable years
prior to taxable year 2003, except for the year 1976, the
county clerk or county assessor shall compute such tax as of
the first day of June of each year and certify the tax to the
county treasurer. For taxable year 2003 and thereafter, the
county clerk or county assessor shall compute the tax as of
the first day of March of each year and certify the tax to
the county treasurer. Such tax shall be due and payable to
the county treasurer within 60 days after the treasurer mails
the tax bill to the address of record. The first tax bill
mailed for taxable year 2003 shall include the following
notice: "The manner in which delinquent taxes on mobile homes
are collected has been changed by the enactment of the Mobile
Home Local Services Tax Enforcement Act. Failure to pay this
tax can result in a penalty of $25 per month." The county
treasurer shall distribute such taxes to the local taxing
districts within the boundaries of which such mobile homes
are located, in the same proportion as the property taxes
collectible for each such taxing district in the prior year.
In order to effect the change of the annual billing date
and the date of liability, provided for by this amendatory
Act of 1975, the county clerk shall compute such tax as of
July 1, 1976, for the 1/2 year period from July 1, 1976,
through December 31, 1976, at 1/2 the amount of the annual
tax. The tax for such period shall be certified, billed,
collected and distributed in the same manner as is provided
in this Section as taxes for a full year, and shall be
subject to a proportionate reduction if the mobile home is
initially harbored after July 1, 1976 and before January 1,
1977.
(Source: P.A. 88-670, eff. 12-2-94.)
(35 ILCS 515/8) (from Ch. 120, par. 1208)
Sec. 8. Failure to pay tax; lien. If any local services
tax imposed by this Act is not paid when due, the county
treasurer of the county in which the mobile home is located
shall have a lien on the mobile home for the amount of the
tax, addition to the tax, penalty and interest due. The
treasurer shall notify the taxpayer in writing of the
existence of the lien. Such lien shall terminate (i) unless
the county treasurer files with the county recorder of the
county in which the mobile home is located a notice of lien,
within one year of such tax due date or (ii) if the county
treasurer applies for judgment and order of sale for
delinquent taxes on mobile homes pursuant to the provisions
of the Mobile Home Local Services Tax Enforcement Act and the
taxes are sold. From the time of the filing, the amount set
forth in the certificate also constitutes a lien upon all
property of the taxpayer then owned by him or thereafter
acquired by him in the period before the expiration of the
lien. Such liens have the same force, effect and priority as
a judgment lien and continue for 10 years from the date of
the recording unless sooner released or otherwise discharged.
The county treasurer may, at any time, release all or any
portion of the property subject to any lien provided for in
this Act or subordinate the lien to other liens if he
determines that the taxes are sufficiently secured by a lien
or other property of the taxpayer or that the release or
subordination of the lien will not endanger or jeopardize the
collection of the taxes.
If the owner of a mobile home upon which the tax has not
been paid does not make payment within 6 months after a lien
has been filed, civil action may be instituted by the
collector for the amount of the tax, plus interest, penalties
and costs. If sale of the property is ordered, the court may
direct the sale to be made in cash or on such terms as it may
deem in the best interests of all parties. The court may
direct that such sale be held by the sheriff or in open
court.
(Source: P.A. 83-871.)
(35 ILCS 515/9) (from Ch. 120, par. 1209)
Sec. 9. Additional charge for delinquent taxes; penalty
for fraud. For taxable years prior to 2003, if any local
services tax, or part thereof, imposed by this Act is not
paid on or before the due date for such tax, interest on such
amount at the rate of 1 1/2% per month shall be paid for the
period from such due date to the date of payment of such
amount. For taxable year 2003 and thereafter, if any local
services tax, or part thereof, imposed by this Act is not
paid on or before the due date for such tax, the taxpayer
shall be required to pay a penalty of $25 per month, or any
portion thereof, not to exceed $100. If such failure to pay
such tax is the result of fraud, there shall be added to the
tax as a penalty an amount equal to 50% of the deficiency.
(Source: P.A. 83-546.)
(35 ILCS 515/10.1) (from Ch. 120, par. 1210.1)
Sec. 10.1. Notice to assessor of ownership change. An
operator of a mobile home park licensed under the provisions
of the Mobile Home Park Act and any land owner on which an
inhabited mobile home is located "An Act to provide for,
license and regulate mobile homes and mobile home parks and
to repeal an Act named herein", approved September 8, 1971,
as amended, shall notify the township assessor, if any, or
the Supervisor of Assessments or county assessor if there is
no township assessor, or the county assessor in those
counties in which a county assessor is elected pursuant to
Section 3-45 of the Property Tax Code, when a change in
ownership occurs in a mobile home located in such a park or
on such land. Such notification shall include the same
information for the new owner as that contained in the
registration form required of mobile home park operators and
mobile home owners by Section 4 of this Act.
(Source: P.A. 88-670, eff. 12-2-94.)
Section 910. The Illinois Vehicle Code is amended by
changing Section 3-114 as follows:
(625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)
(Text of Section before amendment by P.A. 91-893)
Sec. 3-114. Transfer by operation of law.
(a) If the interest of an owner in a vehicle passes to
another other than by voluntary transfer, the transferee
shall, except as provided in paragraph (b), promptly mail or
deliver within 20 days to the Secretary of State the last
certificate of title, if available, proof of the transfer,
and his application for a new certificate in the form the
Secretary of State prescribes. It shall be unlawful for any
person having possession of a certificate of title for a
motor vehicle, semi-trailer, or house car by reason of his
having a lien or encumbrance on such vehicle, to fail or
refuse to deliver such certificate to the owner, upon the
satisfaction or discharge of the lien or encumbrance,
indicated upon such certificate of title.
(b) If the interest of an owner in a vehicle passes to
another under the provisions of the Small Estates provisions
of the Probate Act of 1975 the transferee shall promptly mail
or deliver to the Secretary of State, within 120 days, the
last certificate of title, if available, the documentation
required under the provisions of the Probate Act of 1975, and
an application for certificate of title. The Small Estate
Affidavit form shall be furnished by the Secretary of State.
The transfer may be to the transferee or to the nominee of
the transferee.
(c) If the interest of an owner in a vehicle passes to
another under other provisions of the Probate Act of 1975, as
amended, and the transfer is made by a representative or
guardian, such transferee shall promptly mail or deliver to
the Secretary of State, the last certificate of title, if
available, and a certified copy of the letters of office or
guardianship, and an application for certificate of title.
Such application shall be made before the estate is closed.
The transfer may be to the transferee or to the nominee of
the transferee.
(d) If the interest of an owner in joint tenancy passes
to the other joint tenant with survivorship rights as
provided by law, the transferee shall promptly mail or
deliver to the Secretary of State, the last certificate of
title, if available, proof of death of the one joint tenant
and survivorship of the surviving joint tenant, and an
application for certificate of title. Such application shall
be made within 120 days after the death of the joint tenant.
The transfer may be to the transferee or to the nominee of
the transferee.
(e) The Secretary of State shall transfer a decedent's
vehicle title to any legatee, representative or heir of the
decedent who submits to the Secretary a death certificate and
an affidavit by an attorney at law on the letterhead
stationery of the attorney at law stating the facts of the
transfer.
(f) Repossession with assignment of title. In all cases
wherein a lienholder has repossessed a vehicle by other than
judicial process and holds it for resale under a security
agreement, and the owner of record has executed an assignment
of the existing certificate of title after default, the
lienholder may proceed to sell or otherwise dispose of the
vehicle as authorized under the Uniform Commercial Code.
Upon selling the vehicle to another person, the lienholder
need not send the certificate of title to the Secretary of
State, but shall promptly and within 20 days mail or deliver
to the purchaser as transferee the existing certificate of
title for the repossessed vehicle, reflecting the release of
the lienholder's security interest in the vehicle. The
application for a certificate of title made by the purchaser
shall comply with subsection (a) of Section 3-104 and be
accompanied by the existing certificate of title for the
repossessed vehicle. The lienholder shall execute the
assignment and warranty of title showing the name and address
of the purchaser in the spaces provided therefor on the
certificate of title or as the Secretary of State prescribes.
The lienholder shall complete the assignment of title in the
certificate of title to reflect the transfer of the vehicle
to the lienholder and also a reassignment to reflect the
transfer from the lienholder to the purchaser. For this
purpose, the lienholder is specifically authorized to
complete and execute the space reserved in the certificate of
title for a dealer reassignment, notwithstanding that the
lienholder is not a licensed dealer. Nothing herein shall be
construed to mean that the lienholder is taking title to the
repossessed vehicle for purposes of liability for retailer
occupation, vehicle use, or other tax with respect to the
proceeds from the repossession sale. Delivery of the
existing certificate of title to the purchaser shall be
deemed disclosure to the purchaser of the owner of the
vehicle.
(f-5) Repossession without assignment of title. In all
cases wherein a lienholder has repossessed a vehicle by other
than judicial process and holds it for resale under a
security agreement, and the owner of record has not executed
an assignment of the existing certificate of title, the
lienholder shall comply with the following provisions:
(1) Prior to sale, the lienholder shall deliver or
mail to the owner at the owner's last known address and
to any other lienholder of record, a notice of redemption
setting forth the following information: (i) the name of
the owner of record and in bold type at or near the top
of the notice a statement that the owner's vehicle was
repossessed on a specified date for failure to make
payments on the loan (or other reason), (ii) a
description of the vehicle subject to the lien sufficient
to identify it, (iii) the right of the owner to redeem
the vehicle, (iv) the lienholder's intent to sell or
otherwise dispose of the vehicle after the expiration of
21 days from the date of mailing or delivery of the
notice, and (v) the name, address, and telephone number
of the lienholder from whom information may be obtained
concerning the amount due to redeem the vehicle and from
whom the vehicle may be redeemed under Section 9-506 of
the Uniform Commercial Code. At the lienholder's option,
the information required to be set forth in this notice
of redemption may be made a part of or accompany the
notification of sale or other disposition required under
subsection (3) of Section 9-504 of the Uniform Commercial
Code, but none of the information required by this notice
shall be construed to impose any requirement under
Article 9 of the Uniform Commercial Code.
(2) With respect to the repossession of a vehicle
used primarily for personal, family, or household
purposes, the lienholder shall also deliver or mail to
the owner at the owner's last known address an affidavit
of defense. The affidavit of defense shall accompany the
notice of redemption required in subdivision (f-5)(1) of
this Section. The affidavit of defense shall (i) identify
the lienholder, owner, and the vehicle; (ii) provide
space for the owner to state the defense claimed by the
owner; and (iii) include an acknowledgment by the owner
that the owner may be liable to the lienholder for fees,
charges, and costs incurred by the lienholder in
establishing the insufficiency or invalidity of the
owner's defense. To stop the transfer of title, the
affidavit of defense must be received by the lienholder
no later than 21 days after the date of mailing or
delivery of the notice required in subdivision (f-5)(1)
of this Section. If the lienholder receives the affidavit
from the owner in a timely manner, the lienholder must
apply to a court of competent jurisdiction to determine
if the lienholder is entitled to possession of the
vehicle.
(3) Upon selling the vehicle to another person, the
lienholder need not send the certificate of title to the
Secretary of State, but shall promptly and within 20 days
mail or deliver to the purchaser as transferee (i) the
existing certificate of title for the repossessed
vehicle, reflecting the release of the lienholder's
security interest in the vehicle; and (ii) an affidavit
of repossession made by or on behalf of the lienholder
which provides the following information: that the
vehicle was repossessed, a description of the vehicle
sufficient to identify it, whether the vehicle has been
damaged in excess of 33 1/3% of its fair market value as
required under subdivision (b)(3) of Section 3-117.1,
that the owner and any other lienholder of record were
given the notice required in subdivision (f-5)(1) of this
Section, that the owner of record was given the affidavit
of defense required in subdivision (f-5)(2) of this
Section, that the interest of the owner was lawfully
terminated or sold pursuant to the terms of the security
agreement, and the purchaser's name and address. If the
vehicle is damaged in excess of 33 1/3% of its fair
market value, the lienholder shall make application for a
salvage certificate under Section 3-117.1 and transfer
the vehicle to a person eligible to receive assignments
of salvage certificates identified in Section 3-118.
(4) The application for a certificate of title made
by the purchaser shall comply with subsection (a) of
Section 3-104 and be accompanied by the affidavit of
repossession furnished by the lienholder and the existing
certificate of title for the repossessed vehicle. The
lienholder shall execute the assignment and warranty of
title showing the name and address of the purchaser in
the spaces provided therefor on the certificate of title
or as the Secretary of State prescribes. The lienholder
shall complete the assignment of title in the certificate
of title to reflect the transfer of the vehicle to the
lienholder and also a reassignment to reflect the
transfer from the lienholder to the purchaser. For this
purpose, the lienholder is specifically authorized to
execute the assignment on behalf of the owner as seller
if the owner has not done so and to complete and execute
the space reserved in the certificate of title for a
dealer reassignment, notwithstanding that the lienholder
is not a licensed dealer. Nothing herein shall be
construed to mean that the lienholder is taking title to
the repossessed vehicle for purposes of liability for
retailer occupation, vehicle use, or other tax with
respect to the proceeds from the repossession sale.
Delivery of the existing certificate of title to the
purchaser shall be deemed disclosure to the purchaser of
the owner of the vehicle. In the event the lienholder
does not hold the certificate of title for the
repossessed vehicle, the lienholder shall make
application for and may obtain a new certificate of title
in the name of the lienholder upon furnishing information
satisfactory to the Secretary of State. Upon receiving
the new certificate of title, the lienholder may proceed
with the sale described in subdivision (f-5)(3), except
that upon selling the vehicle the lienholder shall
promptly and within 20 days mail or deliver to the
purchaser the new certificate of title reflecting the
assignment and transfer of title to the purchaser.
(5) Neither the lienholder nor the owner shall file
with the Office of the Secretary of State the notice of
redemption or affidavit of defense described in
subdivisions (f-5)(1) and (f-5)(2) of this Section. The
Office of the Secretary of State shall not determine the
merits of an owner's affidavit of defense, nor consider
any allegations or assertions regarding the validity or
invalidity of a lienholder's claim to the vehicle or an
owner's asserted defenses to the repossession action.
(f-7) Notice of reinstatement in certain cases.
(1) If, at the time of repossession by a lienholder
that is seeking to transfer title pursuant to subsection
(f-5), the owner has paid an amount equal to 30% or more
of the deferred payment price or total of payments due,
the owner may, within 21 days of the date of
repossession, reinstate the contract or loan agreement
and recover the vehicle from the lienholder by tendering
in a lump sum (i) the total of all unpaid amounts,
including any unpaid delinquency or deferral charges due
at the date of reinstatement, without acceleration; and
(ii) performance necessary to cure any default other than
nonpayment of the amounts due; and (iii) all reasonable
costs and fees incurred by the lienholder in retaking,
holding, and preparing the vehicle for disposition and in
arranging for the sale of the vehicle. Reasonable costs
and fees incurred by the lienholder include without
limitation repossession and storage expenses and, if
authorized by the contract or loan agreement, reasonable
attorneys' fees and collection agency charges.
(2) Tender of payment and performance pursuant to
this limited right of reinstatement restores to the owner
his rights under the contract or loan agreement as though
no default had occurred. The owner has the right to
reinstate the contract or loan agreement and recover the
vehicle from the lienholder only once under this
subsection. The lienholder may, in the lienholder's sole
discretion, extend the period during which the owner may
reinstate the contract or loan agreement and recover the
vehicle beyond the 21 days allowed under this subsection,
and the extension shall not subject the lienholder to
liability to the owner under the laws of this State.
(3) The lienholder shall deliver or mail written
notice to the owner at the owner's last known address,
within 3 business days of the date of repossession, of
the owner's right to reinstate the contract or loan
agreement and recover the vehicle pursuant to the limited
right of reinstatement described in this subsection. At
the lienholder's option, the information required to be
set forth in this notice of reinstatement may be made
part of or accompany the notice of redemption required in
subdivision (f-5)(1) of this Section and the notification
of sale or other disposition required under subsection
(3) of Section 9-504 of the Uniform Commercial Code, but
none of the information required by this notice of
reinstatement shall be construed to impose any
requirement under Article 9 of the Uniform Commercial
Code.
(4) The reinstatement period, if applicable, and
the redemption period described in subdivision (f-5)(1)
of this Section, shall run concurrently if the
information required to be set forth in the notice of
reinstatement is part of or accompanies the notice of
redemption. In any event, the 21 day redemption period
described in subdivision (f-5)(1) of this Section shall
commence on the date of mailing or delivery to the owner
of the information required to be set forth in the notice
of redemption, and the 21 day reinstatement period
described in this subdivision, if applicable, shall
commence on the date of mailing or delivery to the owner
of the information required to be set forth in the notice
of reinstatement.
(5) The Office of the Secretary of State shall not
determine the merits of an owner's claim of right to
reinstatement, nor consider any allegations or assertions
regarding the validity or invalidity of a lienholder's
claim to the vehicle or an owner's asserted right to
reinstatement. Where a lienholder is subject to
licensing and regulatory supervision by the State of
Illinois, the lienholder shall be subject to all of the
powers and authority of the lienholder's primary State
regulator to enforce compliance with the procedures set
forth in this subsection (f-7).
(f-10) Repossession by judicial process. In all cases
wherein a lienholder has repossessed a vehicle by judicial
process and holds it for resale under a security agreement,
order for replevin, or other court order establishing the
lienholder's right to possession of the vehicle, the
lienholder may proceed to sell or otherwise dispose of the
vehicle as authorized under the Uniform Commercial Code or
the court order. Upon selling the vehicle to another person,
the lienholder need not send the certificate of title to the
Secretary of State, but shall promptly and within 20 days
mail or deliver to the purchaser as transferee (i) the
existing certificate of title for the repossessed vehicle
reflecting the release of the lienholder's security interest
in the vehicle; (ii) a certified copy of the court order; and
(iii) a bill of sale identifying the new owner's name and
address and the year, make, model, and vehicle identification
number of the vehicle. The application for a certificate of
title made by the purchaser shall comply with subsection (a)
of Section 3-104 and be accompanied by the certified copy of
the court order furnished by the lienholder and the existing
certificate of title for the repossessed vehicle. The
lienholder shall execute the assignment and warranty of title
showing the name and address of the purchaser in the spaces
provided therefor on the certificate of title or as the
Secretary of State prescribes. The lienholder shall complete
the assignment of title in the certificate of title to
reflect the transfer of the vehicle to the lienholder and
also a reassignment to reflect the transfer from the
lienholder to the purchaser. For this purpose, the
lienholder is specifically authorized to execute the
assignment on behalf of the owner as seller if the owner has
not done so and to complete and execute the space reserved in
the certificate of title for a dealer reassignment,
notwithstanding that the lienholder is not a licensed dealer.
Nothing herein shall be construed to mean that the lienholder
is taking title to the repossessed vehicle for purposes of
liability for retailer occupation, vehicle use, or other tax
with respect to the proceeds from the repossession sale.
Delivery of the existing certificate of title to the
purchaser shall be deemed disclosure to the purchaser of the
owner of the vehicle. In the event the lienholder does not
hold the certificate of title for the repossessed vehicle,
the lienholder shall make application for and may obtain a
new certificate of title in the name of the lienholder upon
furnishing information satisfactory to the Secretary of
State. Upon receiving the new certificate of title, the
lienholder may proceed with the sale described in this
subsection, except that upon selling the vehicle the
lienholder shall promptly and within 20 days mail or deliver
to the purchaser the new certificate of title reflecting the
assignment and transfer of title to the purchaser.
(f-15) The Secretary of State shall not issue a
certificate of title to a purchaser under subsection (f),
(f-5), or (f-10) of this Section, unless the person from whom
the vehicle has been repossessed by the lienholder is shown
to be the last registered owner of the motor vehicle. The
Secretary of State may provide by rule for the standards to
be followed by a lienholder in assigning and transferring
certificates of title with respect to repossessed vehicles.
(f-20) If applying for a salvage certificate or a
junking certificate, the lienholder shall within 20 days make
an application to the Secretary of State for a salvage
certificate or a junking certificate, as set forth in this
Code. The Secretary of State shall not issue a salvage
certificate or a junking certificate to such lienholder
unless the person from whom such vehicle has been repossessed
is shown to be the last registered owner of such motor
vehicle and such lienholder establishes to the satisfaction
of the Secretary of State that he is entitled to such salvage
certificate or junking certificate. The Secretary of State
may provide by rule for the standards to be followed by a
lienholder in order to obtain a salvage certificate or
junking certificate for a repossessed vehicle.
(g) A person holding a certificate of title whose
interest in the vehicle has been extinguished or transferred
other than by voluntary transfer shall mail or deliver the
certificate, within 20 days upon request of the Secretary of
State. The delivery of the certificate pursuant to the
request of the Secretary of State does not affect the rights
of the person surrendering the certificate, and the action of
the Secretary of State in issuing a new certificate of title
as provided herein is not conclusive upon the rights of an
owner or lienholder named in the old certificate.
(h) The Secretary of State may decline to process any
application for a transfer of an interest in a vehicle
hereunder if any fees or taxes due under this Act from the
transferor or the transferee have not been paid upon
reasonable notice and demand.
(i) The Secretary of State shall not be held civilly or
criminally liable to any person because any purported
transferor may not have had the power or authority to make a
transfer of any interest in any vehicle or because a
certificate of title issued in error is subsequently used to
commit a fraudulent act.
(Source: P.A. 90-212, eff. 1-1-98; 90-665, eff. 1-1-99.)
(Text of Section after amendment by P.A. 91-893)
Sec. 3-114. Transfer by operation of law.
(a) If the interest of an owner in a vehicle passes to
another other than by voluntary transfer, the transferee
shall, except as provided in paragraph (b), promptly mail or
deliver within 20 days to the Secretary of State the last
certificate of title, if available, proof of the transfer,
and his application for a new certificate in the form the
Secretary of State prescribes. It shall be unlawful for any
person having possession of a certificate of title for a
motor vehicle, semi-trailer, or house car by reason of his
having a lien or encumbrance on such vehicle, to fail or
refuse to deliver such certificate to the owner, upon the
satisfaction or discharge of the lien or encumbrance,
indicated upon such certificate of title.
(b) If the interest of an owner in a vehicle passes to
another under the provisions of the Small Estates provisions
of the Probate Act of 1975 the transferee shall promptly mail
or deliver to the Secretary of State, within 120 days, the
last certificate of title, if available, the documentation
required under the provisions of the Probate Act of 1975, and
an application for certificate of title. The Small Estate
Affidavit form shall be furnished by the Secretary of State.
The transfer may be to the transferee or to the nominee of
the transferee.
(c) If the interest of an owner in a vehicle passes to
another under other provisions of the Probate Act of 1975, as
amended, and the transfer is made by a representative or
guardian, such transferee shall promptly mail or deliver to
the Secretary of State, the last certificate of title, if
available, and a certified copy of the letters of office or
guardianship, and an application for certificate of title.
Such application shall be made before the estate is closed.
The transfer may be to the transferee or to the nominee of
the transferee.
(d) If the interest of an owner in joint tenancy passes
to the other joint tenant with survivorship rights as
provided by law, the transferee shall promptly mail or
deliver to the Secretary of State, the last certificate of
title, if available, proof of death of the one joint tenant
and survivorship of the surviving joint tenant, and an
application for certificate of title. Such application shall
be made within 120 days after the death of the joint tenant.
The transfer may be to the transferee or to the nominee of
the transferee.
(e) The Secretary of State shall transfer a decedent's
vehicle title to any legatee, representative or heir of the
decedent who submits to the Secretary a death certificate and
an affidavit by an attorney at law on the letterhead
stationery of the attorney at law stating the facts of the
transfer.
(f) Repossession with assignment of title. In all cases
wherein a lienholder has repossessed a vehicle by other than
judicial process and holds it for resale under a security
agreement, and the owner of record has executed an assignment
of the existing certificate of title after default, the
lienholder may proceed to sell or otherwise dispose of the
vehicle as authorized under the Uniform Commercial Code.
Upon selling the vehicle to another person, the lienholder
need not send the certificate of title to the Secretary of
State, but shall promptly and within 20 days mail or deliver
to the purchaser as transferee the existing certificate of
title for the repossessed vehicle, reflecting the release of
the lienholder's security interest in the vehicle. The
application for a certificate of title made by the purchaser
shall comply with subsection (a) of Section 3-104 and be
accompanied by the existing certificate of title for the
repossessed vehicle. The lienholder shall execute the
assignment and warranty of title showing the name and address
of the purchaser in the spaces provided therefor on the
certificate of title or as the Secretary of State prescribes.
The lienholder shall complete the assignment of title in the
certificate of title to reflect the transfer of the vehicle
to the lienholder and also a reassignment to reflect the
transfer from the lienholder to the purchaser. For this
purpose, the lienholder is specifically authorized to
complete and execute the space reserved in the certificate of
title for a dealer reassignment, notwithstanding that the
lienholder is not a licensed dealer. Nothing herein shall be
construed to mean that the lienholder is taking title to the
repossessed vehicle for purposes of liability for retailer
occupation, vehicle use, or other tax with respect to the
proceeds from the repossession sale. Delivery of the
existing certificate of title to the purchaser shall be
deemed disclosure to the purchaser of the owner of the
vehicle.
(f-5) Repossession without assignment of title. In all
cases wherein a lienholder has repossessed a vehicle by other
than judicial process and holds it for resale under a
security agreement, and the owner of record has not executed
an assignment of the existing certificate of title, the
lienholder shall comply with the following provisions:
(1) Prior to sale, the lienholder shall deliver or
mail to the owner at the owner's last known address and
to any other lienholder of record, a notice of redemption
setting forth the following information: (i) the name of
the owner of record and in bold type at or near the top
of the notice a statement that the owner's vehicle was
repossessed on a specified date for failure to make
payments on the loan (or other reason), (ii) a
description of the vehicle subject to the lien sufficient
to identify it, (iii) the right of the owner to redeem
the vehicle, (iv) the lienholder's intent to sell or
otherwise dispose of the vehicle after the expiration of
21 days from the date of mailing or delivery of the
notice, and (v) the name, address, and telephone number
of the lienholder from whom information may be obtained
concerning the amount due to redeem the vehicle and from
whom the vehicle may be redeemed under Section 9-623 of
the Uniform Commercial Code. At the lienholder's option,
the information required to be set forth in this notice
of redemption may be made a part of or accompany the
notification of sale or other disposition required under
Section 9-611 of the Uniform Commercial Code, but none of
the information required by this notice shall be
construed to impose any requirement under Article 9 of
the Uniform Commercial Code.
(2) With respect to the repossession of a vehicle
used primarily for personal, family, or household
purposes, the lienholder shall also deliver or mail to
the owner at the owner's last known address an affidavit
of defense. The affidavit of defense shall accompany the
notice of redemption required in subdivision (f-5)(1) of
this Section. The affidavit of defense shall (i) identify
the lienholder, owner, and the vehicle; (ii) provide
space for the owner to state the defense claimed by the
owner; and (iii) include an acknowledgment by the owner
that the owner may be liable to the lienholder for fees,
charges, and costs incurred by the lienholder in
establishing the insufficiency or invalidity of the
owner's defense. To stop the transfer of title, the
affidavit of defense must be received by the lienholder
no later than 21 days after the date of mailing or
delivery of the notice required in subdivision (f-5)(1)
of this Section. If the lienholder receives the affidavit
from the owner in a timely manner, the lienholder must
apply to a court of competent jurisdiction to determine
if the lienholder is entitled to possession of the
vehicle.
(3) Upon selling the vehicle to another person, the
lienholder need not send the certificate of title to the
Secretary of State, but shall promptly and within 20 days
mail or deliver to the purchaser as transferee (i) the
existing certificate of title for the repossessed
vehicle, reflecting the release of the lienholder's
security interest in the vehicle; and (ii) an affidavit
of repossession made by or on behalf of the lienholder
which provides the following information: that the
vehicle was repossessed, a description of the vehicle
sufficient to identify it, whether the vehicle has been
damaged in excess of 33 1/3% of its fair market value as
required under subdivision (b)(3) of Section 3-117.1,
that the owner and any other lienholder of record were
given the notice required in subdivision (f-5)(1) of this
Section, that the owner of record was given the affidavit
of defense required in subdivision (f-5)(2) of this
Section, that the interest of the owner was lawfully
terminated or sold pursuant to the terms of the security
agreement, and the purchaser's name and address. If the
vehicle is damaged in excess of 33 1/3% of its fair
market value, the lienholder shall make application for a
salvage certificate under Section 3-117.1 and transfer
the vehicle to a person eligible to receive assignments
of salvage certificates identified in Section 3-118.
(4) The application for a certificate of title made
by the purchaser shall comply with subsection (a) of
Section 3-104 and be accompanied by the affidavit of
repossession furnished by the lienholder and the existing
certificate of title for the repossessed vehicle. The
lienholder shall execute the assignment and warranty of
title showing the name and address of the purchaser in
the spaces provided therefor on the certificate of title
or as the Secretary of State prescribes. The lienholder
shall complete the assignment of title in the certificate
of title to reflect the transfer of the vehicle to the
lienholder and also a reassignment to reflect the
transfer from the lienholder to the purchaser. For this
purpose, the lienholder is specifically authorized to
execute the assignment on behalf of the owner as seller
if the owner has not done so and to complete and execute
the space reserved in the certificate of title for a
dealer reassignment, notwithstanding that the lienholder
is not a licensed dealer. Nothing herein shall be
construed to mean that the lienholder is taking title to
the repossessed vehicle for purposes of liability for
retailer occupation, vehicle use, or other tax with
respect to the proceeds from the repossession sale.
Delivery of the existing certificate of title to the
purchaser shall be deemed disclosure to the purchaser of
the owner of the vehicle. In the event the lienholder
does not hold the certificate of title for the
repossessed vehicle, the lienholder shall make
application for and may obtain a new certificate of title
in the name of the lienholder upon furnishing information
satisfactory to the Secretary of State. Upon receiving
the new certificate of title, the lienholder may proceed
with the sale described in subdivision (f-5)(3), except
that upon selling the vehicle the lienholder shall
promptly and within 20 days mail or deliver to the
purchaser the new certificate of title reflecting the
assignment and transfer of title to the purchaser.
(5) Neither the lienholder nor the owner shall file
with the Office of the Secretary of State the notice of
redemption or affidavit of defense described in
subdivisions (f-5)(1) and (f-5)(2) of this Section. The
Office of the Secretary of State shall not determine the
merits of an owner's affidavit of defense, nor consider
any allegations or assertions regarding the validity or
invalidity of a lienholder's claim to the vehicle or an
owner's asserted defenses to the repossession action.
(f-7) Notice of reinstatement in certain cases.
(1) If, at the time of repossession by a lienholder
that is seeking to transfer title pursuant to subsection
(f-5), the owner has paid an amount equal to 30% or more
of the deferred payment price or total of payments due,
the owner may, within 21 days of the date of
repossession, reinstate the contract or loan agreement
and recover the vehicle from the lienholder by tendering
in a lump sum (i) the total of all unpaid amounts,
including any unpaid delinquency or deferral charges due
at the date of reinstatement, without acceleration; and
(ii) performance necessary to cure any default other than
nonpayment of the amounts due; and (iii) all reasonable
costs and fees incurred by the lienholder in retaking,
holding, and preparing the vehicle for disposition and in
arranging for the sale of the vehicle. Reasonable costs
and fees incurred by the lienholder include without
limitation repossession and storage expenses and, if
authorized by the contract or loan agreement, reasonable
attorneys' fees and collection agency charges.
(2) Tender of payment and performance pursuant to
this limited right of reinstatement restores to the owner
his rights under the contract or loan agreement as though
no default had occurred. The owner has the right to
reinstate the contract or loan agreement and recover the
vehicle from the lienholder only once under this
subsection. The lienholder may, in the lienholder's sole
discretion, extend the period during which the owner may
reinstate the contract or loan agreement and recover the
vehicle beyond the 21 days allowed under this subsection,
and the extension shall not subject the lienholder to
liability to the owner under the laws of this State.
(3) The lienholder shall deliver or mail written
notice to the owner at the owner's last known address,
within 3 business days of the date of repossession, of
the owner's right to reinstate the contract or loan
agreement and recover the vehicle pursuant to the limited
right of reinstatement described in this subsection. At
the lienholder's option, the information required to be
set forth in this notice of reinstatement may be made
part of or accompany the notice of redemption required in
subdivision (f-5)(1) of this Section and the notification
of sale or other disposition required under Section 9-611
of the Uniform Commercial Code, but none of the
information required by this notice of reinstatement
shall be construed to impose any requirement under
Article 9 of the Uniform Commercial Code.
(4) The reinstatement period, if applicable, and
the redemption period described in subdivision (f-5)(1)
of this Section, shall run concurrently if the
information required to be set forth in the notice of
reinstatement is part of or accompanies the notice of
redemption. In any event, the 21 day redemption period
described in subdivision (f-5)(1) of this Section shall
commence on the date of mailing or delivery to the owner
of the information required to be set forth in the notice
of redemption, and the 21 day reinstatement period
described in this subdivision, if applicable, shall
commence on the date of mailing or delivery to the owner
of the information required to be set forth in the notice
of reinstatement.
(5) The Office of the Secretary of State shall not
determine the merits of an owner's claim of right to
reinstatement, nor consider any allegations or assertions
regarding the validity or invalidity of a lienholder's
claim to the vehicle or an owner's asserted right to
reinstatement. Where a lienholder is subject to
licensing and regulatory supervision by the State of
Illinois, the lienholder shall be subject to all of the
powers and authority of the lienholder's primary State
regulator to enforce compliance with the procedures set
forth in this subsection (f-7).
(f-10) Repossession by judicial process. In all cases
wherein a lienholder has repossessed a vehicle by judicial
process and holds it for resale under a security agreement,
order for replevin, or other court order establishing the
lienholder's right to possession of the vehicle, the
lienholder may proceed to sell or otherwise dispose of the
vehicle as authorized under the Uniform Commercial Code or
the court order. Upon selling the vehicle to another person,
the lienholder need not send the certificate of title to the
Secretary of State, but shall promptly and within 20 days
mail or deliver to the purchaser as transferee (i) the
existing certificate of title for the repossessed vehicle
reflecting the release of the lienholder's security interest
in the vehicle; (ii) a certified copy of the court order; and
(iii) a bill of sale identifying the new owner's name and
address and the year, make, model, and vehicle identification
number of the vehicle. The application for a certificate of
title made by the purchaser shall comply with subsection (a)
of Section 3-104 and be accompanied by the certified copy of
the court order furnished by the lienholder and the existing
certificate of title for the repossessed vehicle. The
lienholder shall execute the assignment and warranty of title
showing the name and address of the purchaser in the spaces
provided therefor on the certificate of title or as the
Secretary of State prescribes. The lienholder shall complete
the assignment of title in the certificate of title to
reflect the transfer of the vehicle to the lienholder and
also a reassignment to reflect the transfer from the
lienholder to the purchaser. For this purpose, the
lienholder is specifically authorized to execute the
assignment on behalf of the owner as seller if the owner has
not done so and to complete and execute the space reserved in
the certificate of title for a dealer reassignment,
notwithstanding that the lienholder is not a licensed dealer.
Nothing herein shall be construed to mean that the lienholder
is taking title to the repossessed vehicle for purposes of
liability for retailer occupation, vehicle use, or other tax
with respect to the proceeds from the repossession sale.
Delivery of the existing certificate of title to the
purchaser shall be deemed disclosure to the purchaser of the
owner of the vehicle. In the event the lienholder does not
hold the certificate of title for the repossessed vehicle,
the lienholder shall make application for and may obtain a
new certificate of title in the name of the lienholder upon
furnishing information satisfactory to the Secretary of
State. Upon receiving the new certificate of title, the
lienholder may proceed with the sale described in this
subsection, except that upon selling the vehicle the
lienholder shall promptly and within 20 days mail or deliver
to the purchaser the new certificate of title reflecting the
assignment and transfer of title to the purchaser.
(f-15) The Secretary of State shall not issue a
certificate of title to a purchaser under subsection (f),
(f-5), or (f-10) of this Section, unless the person from whom
the vehicle has been repossessed by the lienholder is shown
to be the last registered owner of the motor vehicle. The
Secretary of State may provide by rule for the standards to
be followed by a lienholder in assigning and transferring
certificates of title with respect to repossessed vehicles.
(f-20) If applying for a salvage certificate or a
junking certificate, the lienholder shall within 20 days make
an application to the Secretary of State for a salvage
certificate or a junking certificate, as set forth in this
Code. The Secretary of State shall not issue a salvage
certificate or a junking certificate to such lienholder
unless the person from whom such vehicle has been repossessed
is shown to be the last registered owner of such motor
vehicle and such lienholder establishes to the satisfaction
of the Secretary of State that he is entitled to such salvage
certificate or junking certificate. The Secretary of State
may provide by rule for the standards to be followed by a
lienholder in order to obtain a salvage certificate or
junking certificate for a repossessed vehicle.
(f-25) If the interest of an owner in a mobile home, as
defined in the Mobile Home Local Services Tax Act, passes to
another under the provisions of the Mobile Home Local
Services Tax Enforcement Act, the transferee shall promptly
mail or deliver to the Secretary of State (i) the last
certificate of title, if available, (ii) a certified copy of
the court order ordering the transfer of title, and (iii) an
application for certificate of title.
(g) A person holding a certificate of title whose
interest in the vehicle has been extinguished or transferred
other than by voluntary transfer shall mail or deliver the
certificate, within 20 days upon request of the Secretary of
State. The delivery of the certificate pursuant to the
request of the Secretary of State does not affect the rights
of the person surrendering the certificate, and the action of
the Secretary of State in issuing a new certificate of title
as provided herein is not conclusive upon the rights of an
owner or lienholder named in the old certificate.
(h) The Secretary of State may decline to process any
application for a transfer of an interest in a vehicle
hereunder if any fees or taxes due under this Act from the
transferor or the transferee have not been paid upon
reasonable notice and demand.
(i) The Secretary of State shall not be held civilly or
criminally liable to any person because any purported
transferor may not have had the power or authority to make a
transfer of any interest in any vehicle or because a
certificate of title issued in error is subsequently used to
commit a fraudulent act.
(Source: P.A. 90-212, eff. 1-1-98; 90-665, eff. 1-1-99;
91-893, eff. 7-1-01.)
Section 995. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i)
the changes made by this Act or (ii) provisions derived from
any other Public Act.
Division 999. Effective date
Section 999. Effective date. This Act takes effect on
January 1, 2003.
Passed in the General Assembly June 01, 2002.
Approved August 21, 2002.
Effective January 01, 2003.
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