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Public Act 102-0319 | ||||
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AN ACT concerning transportation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Vehicle Code is amended by | ||||
changing Sections 3-114, 3-117.1, and 3-301 as follows:
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(625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)
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Sec. 3-114. Transfer by operation of law.
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(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
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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.
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(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
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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.
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(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.
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(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
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within 120 days after the death of the joint tenant. The | ||
transfer may
be to the transferee or to the nominee of the |
transferee.
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(d-5) If the interest of an owner passes to the owner's | ||
spouse or if the spouse otherwise acquires ownership of the | ||
vehicle, then the transferee shall promptly mail or deliver to | ||
the Secretary of State, proof of (i) the owner's death; (ii) | ||
the transfer or acquisition of ownership; and (iii) proof of | ||
the marital relationship between the owner and the transferee, | ||
along with the last certificate of title, if available, and an | ||
application for certificate of title along with the | ||
appropriate fees and taxes, if applicable. The application | ||
shall be made within 180 days after the death of the owner. | ||
(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
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transfer.
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(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
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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
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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.
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(f-5) Repossession without assignment of title. Subject to |
subsection (f-30), 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
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certificate of title,
the lienholder shall comply with the | ||
following provisions:
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(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
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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
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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
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disposition
required under Section 9-611 of the
Uniform
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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.
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(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
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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
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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.
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(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
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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
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excess of 50% 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,
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that the owner of record was given the affidavit of | ||
defense required in
subdivision (f-5)(2) of this Section,
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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 50% 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.
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(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
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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
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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,
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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
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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.
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(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.
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(f-7) Notice of reinstatement in certain cases.
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(1) Subject to subsection (f-30), 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
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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.
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(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.
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(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
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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.
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(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
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reinstatement.
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(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
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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).
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(f-10) Repossession by judicial process. In all cases | ||
wherein a lienholder
has repossessed a vehicle by
judicial
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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
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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
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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
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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.
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(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.
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(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.
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(f-30) Bankruptcy. If the repossessed vehicle is the | ||
subject of a bankruptcy proceeding or discharge:
| ||
(1) the lienholder may proceed to sell or otherwise | ||
dispose of the vehicle as authorized by the Bankruptcy | ||
Code and the Uniform Commercial Code; | ||
(2) the notice of redemption, affidavit of defense, | ||
and notice of reinstatement otherwise required to be sent | ||
by the lienholder to the owner of record or other | ||
lienholder of record under this Section are not required | ||
to be delivered or mailed; | ||
(3) the requirement to delay disposition of the | ||
vehicle for 21 days, (i) from the mailing or delivery of |
the notice of redemption under subdivision (f-5)(1) of | ||
this Section, (ii) from the mailing or delivery of the | ||
affidavit of defense under subdivision (f-5)(2) of this | ||
Section, or (iii) from the date of repossession when the | ||
owner is entitled to a notice of reinstatement under | ||
subsection (f-7) of this Section, does not apply; | ||
(4) the affidavit of repossession that is required | ||
under subdivision (f-5)(3) shall contain a notation of | ||
"bankruptcy" where the affidavit requires the date of the | ||
mailing or delivery of the notice of redemption. The | ||
notation of "bankruptcy" means the lienholder makes no | ||
sworn representations regarding the mailing or delivery of | ||
the notice of redemption or affidavit of defense or | ||
lienholder's compliance with the requirements that | ||
otherwise apply to the notices listed in this subsection | ||
(f-30), and makes no sworn representation that the | ||
lienholder assumes liability or costs for any litigation | ||
that may arise from the issuance of a certificate of title | ||
based on the excluded representations; | ||
(5) the right of redemption, the right to assert a | ||
defense to the transfer of title, and reinstatement rights | ||
under this Section do not apply; and | ||
(6) references to judicial process and court orders in | ||
subsection (f-10) of this Section do not include | ||
bankruptcy proceedings or orders.
| ||
(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. 99-260, eff. 1-1-16 .)
| ||
(625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
| ||
Sec. 3-117.1. When junking certificates or salvage | ||
certificates must
be obtained. | ||
(a) Except as provided in Chapter 4 and Section 3-117.3 of |
this Code, a person who possesses a
junk vehicle shall within | ||
15 days cause the certificate of title, salvage
certificate, | ||
certificate of purchase, or a similarly acceptable | ||
out-of-state
document of ownership to be surrendered to the | ||
Secretary of State along with an
application for a junking | ||
certificate, except as provided in Section 3-117.2,
whereupon | ||
the Secretary of State shall issue to such a person a junking
| ||
certificate, which shall authorize the holder thereof to | ||
possess, transport,
or, by an endorsement, transfer ownership | ||
in such junked vehicle, and a
certificate of title shall not | ||
again be issued for such vehicle. The owner of a junk vehicle | ||
is not required to surrender the certificate of title under | ||
this subsection if (i) there is no lienholder on the | ||
certificate of title or (ii) the owner of the junk vehicle has | ||
a valid lien release from the lienholder releasing all | ||
interest in the vehicle and the owner applying for the junk | ||
certificate matches the current record on the certificate of | ||
title file for the vehicle.
| ||
A licensee who possesses a junk vehicle and a Certificate | ||
of Title,
Salvage Certificate, Certificate of Purchase, or a | ||
similarly acceptable
out-of-state document of ownership for | ||
such junk vehicle, may transport the
junk vehicle to another | ||
licensee prior to applying for or obtaining a
junking | ||
certificate, by executing a uniform invoice. The licensee
| ||
transferor shall furnish a copy of the uniform invoice to the | ||
licensee
transferee at the time of transfer. In any case, the |
licensee transferor
shall apply for a junking certificate in | ||
conformance with Section 3-117.1
of this Chapter. The | ||
following information shall be contained on a uniform
invoice:
| ||
(1) The business name, address and dealer license | ||
number of the person
disposing of the vehicle, junk | ||
vehicle or vehicle cowl;
| ||
(2) The name and address of the person acquiring the | ||
vehicle, junk
vehicle or vehicle cowl, and if that person | ||
is a dealer, the Illinois or
out-of-state dealer license | ||
number of that dealer;
| ||
(3) The date of the disposition of the vehicle, junk | ||
vehicle or vehicle
cowl;
| ||
(4) The year, make, model, color and description of | ||
each vehicle, junk
vehicle or vehicle cowl disposed of by | ||
such person;
| ||
(5) The manufacturer's vehicle identification number, | ||
Secretary of State
identification number or Illinois | ||
Department of State Police number,
for each vehicle, junk | ||
vehicle or vehicle cowl part disposed of by such person;
| ||
(6) The printed name and legible signature of the | ||
person or agent
disposing of the vehicle, junk vehicle or | ||
vehicle cowl; and
| ||
(7) The printed name and legible signature of the | ||
person accepting
delivery of the vehicle, junk vehicle or | ||
vehicle cowl.
| ||
The Secretary of State may certify a junking manifest in a |
form prescribed by
the Secretary of State that reflects those | ||
vehicles for which junking
certificates have been applied or | ||
issued. A junking manifest
may be issued to any person and it | ||
shall constitute evidence of ownership
for the vehicle listed | ||
upon it. A junking manifest may be transferred only
to a person | ||
licensed under Section 5-301 of this Code as a scrap | ||
processor.
A junking manifest will allow the transportation of | ||
those
vehicles to a scrap processor prior to receiving the | ||
junk certificate from
the Secretary of State.
| ||
(b) An application for a salvage certificate shall be | ||
submitted to the
Secretary of State in any of the following | ||
situations:
| ||
(1) When an insurance company makes a payment of | ||
damages on a total loss
claim for a vehicle, the insurance | ||
company shall be deemed to be the owner of
such vehicle and | ||
the vehicle shall be considered to be salvage except that
| ||
ownership of (i) a vehicle that has incurred only hail | ||
damage that does
not
affect the operational safety of the | ||
vehicle or (ii) any vehicle
9 model years of age or older | ||
may, by agreement between
the registered owner and the | ||
insurance company, be retained by the registered
owner of | ||
such vehicle. The insurance company shall promptly deliver | ||
or mail
within 20 days the certificate of title along with | ||
proper application and fee
to the Secretary of State, and | ||
a salvage certificate shall be issued in the
name of the | ||
insurance company. Notwithstanding the foregoing, an |
insurer making payment of damages on a total loss claim | ||
for the theft of a vehicle shall not be required to apply | ||
for a salvage certificate unless the vehicle is recovered | ||
and has incurred damage that initially would have caused | ||
the vehicle to be declared a total loss by the insurer. | ||
(1.1) When a vehicle of a self-insured company is to | ||
be sold in the State of Illinois and has sustained damaged | ||
by collision, fire, theft, rust corrosion, or other means | ||
so that the self-insured company determines the vehicle to | ||
be a total loss, or if the cost of repairing the damage, | ||
including labor, would be greater than 70% of its fair | ||
market value without that damage, the vehicle shall be | ||
considered salvage. The self-insured company shall | ||
promptly deliver the certificate of title along with | ||
proper application and fee to the Secretary of State, and | ||
a salvage certificate shall be issued in the name of the | ||
self-insured company. A self-insured company making | ||
payment of damages on a total loss claim for the theft of a | ||
vehicle may exchange the salvage certificate for a | ||
certificate of title if the vehicle is recovered without | ||
damage. In such a situation, the self-insured shall fill | ||
out and sign a form prescribed by the Secretary of State | ||
which contains an affirmation under penalty of perjury | ||
that the vehicle was recovered without damage and the | ||
Secretary of State may, by rule, require photographs to be | ||
submitted.
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(2) When a vehicle the ownership of which has been | ||
transferred to any
person through a certificate of | ||
purchase from acquisition of the vehicle at an
auction, | ||
other dispositions as set forth in Sections 4-208 and | ||
4-209
of this Code, or a lien arising under Section | ||
18a-501 of this Code shall be deemed
salvage or junk at the | ||
option of the purchaser. The person acquiring such
vehicle | ||
in such manner shall promptly deliver or mail, within 20 | ||
days after the
acquisition of the vehicle, the certificate | ||
of purchase, the
proper application and fee, and, if the | ||
vehicle is an abandoned mobile home
under the Abandoned | ||
Mobile Home Act, a certification from a local law
| ||
enforcement agency that the vehicle was purchased or | ||
acquired at a public sale
under the Abandoned Mobile Home | ||
Act to the Secretary of State and a salvage
certificate or | ||
junking certificate shall be issued in the name of that | ||
person.
The salvage certificate or junking certificate | ||
issued by the Secretary of State
under this Section shall | ||
be free of any lien that existed against the vehicle
prior | ||
to the time the vehicle was acquired by the applicant | ||
under this Code.
| ||
(3) A vehicle which has been repossessed by a | ||
lienholder shall be
considered to be salvage only when the | ||
repossessed vehicle, on the date of
repossession by the | ||
lienholder, has sustained damage by collision, fire, | ||
theft,
rust corrosion, or other means so that the cost of |
repairing
such damage, including labor, would be greater | ||
than 50% 33 1/3% of its fair market
value without such | ||
damage. If the lienholder determines that such vehicle is
| ||
damaged in excess of 50% 33 1/3% of such fair market value, | ||
the lienholder shall,
before sale, transfer or assignment | ||
of the vehicle, make application for a
salvage | ||
certificate, and shall submit with such application the | ||
proper fee
and evidence of possession. If the facts | ||
required to be shown in
subsection (f) of Section 3-114 | ||
are satisfied, the Secretary of State shall
issue a | ||
salvage certificate in the name of the lienholder making | ||
the
application. In any case wherein the vehicle | ||
repossessed is not damaged in
excess of 50% 33 1/3% of its | ||
fair market value, the lienholder
shall comply with the | ||
requirements of subsections (f), (f-5), and (f-10) of
| ||
Section 3-114, except that the affidavit of repossession | ||
made by or on behalf
of the lienholder
shall also contain | ||
an affirmation under penalty of perjury that the vehicle
| ||
on
the date of sale is not
damaged in
excess of 50% 33 1/3% | ||
of its fair market value. If the facts required to be shown
| ||
in subsection (f) of Section 3-114 are satisfied, the | ||
Secretary of State
shall issue a certificate of title as | ||
set forth in Section 3-116 of this Code.
The Secretary of | ||
State may by rule or regulation require photographs to be
| ||
submitted.
| ||
(4) A vehicle which is a part of a fleet of more than 5 |
commercial
vehicles registered in this State or any other | ||
state or registered
proportionately among several states | ||
shall be considered to be salvage when
such vehicle has | ||
sustained damage by collision, fire, theft, rust,
| ||
corrosion or similar means so that the cost of repairing | ||
such damage, including
labor, would be greater than 50% 33 | ||
1/3% of the fair market value of the vehicle
without such | ||
damage. If the owner of a fleet vehicle desires to sell,
| ||
transfer, or assign his interest in such vehicle to a | ||
person within this State
other than an insurance company | ||
licensed to do business within this State, and
the owner | ||
determines that such vehicle, at the time of the proposed | ||
sale,
transfer or assignment is damaged in excess of 50% | ||
33 1/3% of its fair market
value, the owner shall, before | ||
such sale, transfer or assignment, make
application for a | ||
salvage certificate. The application shall contain with it
| ||
evidence of possession of the vehicle. If the fleet | ||
vehicle at the time of its
sale, transfer, or assignment | ||
is not damaged in excess of 50% 33 1/3% of its
fair market | ||
value, the owner shall so state in a written affirmation | ||
on a
form prescribed by the Secretary of State by rule or | ||
regulation. The
Secretary of State may by rule or | ||
regulation require photographs to be
submitted. Upon sale, | ||
transfer or assignment of the fleet vehicle the
owner | ||
shall mail the affirmation to the Secretary of State.
| ||
(5) A vehicle that has been submerged in water to the
|
point that rising water has reached over the door sill and | ||
has
entered the
passenger or trunk compartment is a "flood | ||
vehicle". A flood vehicle shall
be considered to be | ||
salvage only if the vehicle has sustained damage so that
| ||
the cost of repairing the damage, including labor, would | ||
be greater than 50% 33
1/3% of the fair market value of the | ||
vehicle without that damage. The salvage
certificate | ||
issued under this
Section shall indicate the word "flood", | ||
and the word "flood" shall be
conspicuously entered on | ||
subsequent titles for the vehicle. A person who
possesses | ||
or acquires a flood vehicle that is not damaged in excess | ||
of 50% 33 1/3%
of its fair market value shall make | ||
application for title in accordance with
Section 3-116 of | ||
this Code, designating the vehicle as "flood" in a manner
| ||
prescribed by the Secretary of State. The certificate of | ||
title issued shall
indicate the word "flood", and the word | ||
"flood" shall be conspicuously entered
on subsequent | ||
titles for the vehicle.
| ||
(6) When any licensed rebuilder, repairer, new or used | ||
vehicle dealer, or remittance agent has submitted an | ||
application for title to a vehicle (other than an | ||
application for title to a rebuilt vehicle) that he or she | ||
knows or reasonably should have known to have sustained | ||
damages in excess of 50% 33 1/3% of the vehicle's fair | ||
market value without that damage; provided, however, that | ||
any application for a salvage certificate for a vehicle |
recovered from theft and acquired from an insurance | ||
company shall be made as required by paragraph (1) of this | ||
subsection (b). | ||
(c) Any person who without authority acquires, sells, | ||
exchanges, gives
away, transfers or destroys or offers to | ||
acquire, sell, exchange, give
away, transfer or destroy the | ||
certificate of title to any vehicle which is
a junk or salvage | ||
vehicle shall be guilty of a Class 3 felony.
| ||
(d) Except as provided under subsection (a), any person | ||
who knowingly fails to surrender to the Secretary of State a
| ||
certificate of title, salvage certificate, certificate of | ||
purchase or a
similarly acceptable out-of-state document of | ||
ownership as required under
the provisions of this Section is | ||
guilty of a Class A misdemeanor for a
first offense and a Class | ||
4 felony for a subsequent offense; except that a
person | ||
licensed under this Code who violates paragraph (5) of | ||
subsection (b)
of this Section is
guilty of a business offense | ||
and shall be fined not less than $1,000 nor more
than $5,000 | ||
for a first offense and is guilty of a Class 4 felony
for a | ||
second or subsequent violation.
| ||
(e) Any vehicle which is salvage or junk may not be driven | ||
or operated
on roads and highways within this State. A | ||
violation of this subsection is
a Class A misdemeanor. A | ||
salvage vehicle displaying valid special plates
issued under | ||
Section 3-601(b) of this Code, which is being driven to or
from | ||
an inspection conducted under Section 3-308 of this Code, is |
exempt
from the provisions of this subsection. A salvage | ||
vehicle for which a
short term permit has been issued under | ||
Section 3-307 of this Code is
exempt from the provisions of | ||
this subsection for the duration of the permit.
| ||
(Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19; | ||
100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)
| ||
(625 ILCS 5/3-301) (from Ch. 95 1/2, par. 3-301)
| ||
Sec. 3-301. New certificate of title for rebuilt vehicle.
| ||
(a) For vehicles 8 model years of age or newer, the | ||
Secretary of State
shall issue a new certificate of title to | ||
any rebuilt
vehicle or any vehicle which previously had been | ||
titled as salvage
in this State or any other jurisdiction upon | ||
the successful inspection
of the vehicle in accordance with | ||
Section 3-308 of this Article.
| ||
(b) Vehicles more than 8 model years old shall not be | ||
required to
complete a successful inspection required under | ||
Section 3-308 of this Code
before being issued a new | ||
certificate of title as provided under this
Section.
| ||
(c) Vehicles designated as flood vehicles that have | ||
sustained damage
greater than 50% 33 1/3% of their fair market | ||
value with that damage shall be
required to complete a
| ||
successful
inspection required under Section 3-308 of this | ||
Code before being issued a new
certificate of title provided | ||
under paragraph (5), subsection (b) of Section
3-117.1.
| ||
(Source: P.A. 88-685, eff. 1-24-95; 89-669, eff. 1-1-97.)
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