State of Illinois
90th General Assembly
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90_HB0246

      65 ILCS 5/11-117-12       from Ch. 24, par. 11-117-12
          Amends  the  Illinois  Municipal  Code.   Provides   that
      delinquent  service  charges or rates for municipal utilities
      are liens on the real estate upon or  for  which  service  is
      provided.   Provides  that  a  lien  is created only when the
      municipality sends the owners of record (i)  a  copy  of  the
      delinquency  notice  sent  to the person who is delinquent in
      paying the charges or rates and (ii) a notice that a lien may
      be created.  Provides that the municipality may  recover  the
      money  due  in  a  civil action.  Provides that judgment in a
      civil action operates as a release and waiver  of  the  lien.
      Effective immediately.
                                                     LRB9000927MWpc
                                               LRB9000927MWpc
 1        AN  ACT  to amend the Illinois Municipal Code by changing
 2    Section 11-117-12.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Illinois  Municipal Code is amended by
 6    changing Section 11-117-12 as follows:
 7        (65 ILCS 5/11-117-12) (from Ch. 24, par. 11-117-12)
 8        Sec.  11-117-12.   The  charges  fixed  for  the  product
 9    supplied or the service rendered by any municipality shall be
10    sufficient at least to  bear  all  cost  of  maintenance  and
11    operation,   to  meet  interest  charges  on  the  bonds  and
12    certificates issued on account thereof,  and  to  permit  the
13    accumulation  of a surplus or sinking fund to meet all unpaid
14    bonds or certificates at maturity.
15        The corporate authorities of any municipality owning  and
16    operating  a  municipal  utility  plant shall, in addition to
17    fixing utility rates, have the power to establish  a  service
18    charge for the late payment of rates charged.
19        Those  charges or rates are liens on the real estate upon
20    which or for which  the  product  is  supplied  whenever  the
21    charges  or  rates  become  delinquent  as  provided  by  the
22    ordinance  of  the municipality fixing a delinquency date.  A
23    lien is created under the  preceding  sentence  only  if  the
24    municipality  sends  to  the  owner  or  owners of record, as
25    referenced by the taxpayer's identification  number,  of  the
26    real estate (i) a copy of each delinquency notice sent to the
27    person  who  is  delinquent in paying the charges or rates or
28    other notice sufficient to inform  the  owner  or  owners  of
29    record,   as  referenced  by  the  taxpayer's  identification
30    number, that the charges or rates have become delinquent  and
31    (ii)  a notice that unpaid charges or rates may create a lien
                            -2-                LRB9000927MWpc
 1    on  the  real  estate  under  this  Section.    However,  the
 2    municipality  has  no  preference  over  the  rights  of  any
 3    purchaser, mortgagee, judgment creditor, or other lien holder
 4    arising prior to the filing of the notice of a  lien  in  the
 5    office of the recorder of the county in which the real estate
 6    is  located,  or  in the office of the registrar of titles of
 7    the county if the property affected is registered  under  the
 8    Registered  Titles  (Torrens) Act.  This notice shall consist
 9    of a sworn statement setting out (i)  a  description  of  the
10    real  estate  sufficient  for  the  identification,  (ii) the
11    amount of money due for the service, and (iii) the date  when
12    the  amount became delinquent.  The municipality shall send a
13    copy of the notice of the lien to  the  owner  or  owners  of
14    record  of  the  real estate, as referenced by the taxpayer's
15    identification number.  The municipality  has  the  power  to
16    foreclose  this  lien  in  the  same manner and with the same
17    effect as in the foreclosure of mortgages on real estate.
18        The municipality also has the power to sue  the  occupant
19    or  user  of  that  real  estate in a civil action to recover
20    money due for the services provided under this Division, plus
21    a reasonable attorney's  fee,  to  be  fixed  by  the  court.
22    However,  whenever  a  judgment is entered in a civil action,
23    the foregoing provisions in  this  Section  with  respect  to
24    filing sworn statements of delinquencies in the office of the
25    recorder  and  creating  a lien against the real estate shall
26    not be effective as to the charges  sued  upon  and  no  lien
27    shall  exist  thereafter  against  the  real  estate  for the
28    delinquency.  Judgment in the  civil  action  operates  as  a
29    release  and  waiver of the lien upon the real estate for the
30    amount of the judgment.
31        These amendatory Acts of 1971 and 1975 are not limits  on
32    any municipality which is a home rule unit.
33    (Source: P.A. 79-661.)
                            -3-                LRB9000927MWpc
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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