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91_HB0388
LRB9100450PTpk
1 AN ACT concerning property taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Sections 21-260, 21-265, 21-275, 21-280, 21-285, 21-290,
6 21-305, 21-310, 21-315 and adding Section 21-306 as follows:
7 (35 ILCS 200/21-260)
8 Sec. 21-260. Collector's scavenger sale. Upon the
9 county collector's application under Section 21-145, to be
10 known as the Scavenger Sale Application, the Court shall
11 enter judgment for the general taxes, special taxes, special
12 assessments, interest, penalties and costs as are included in
13 the advertisement and appear to be due thereon after allowing
14 an opportunity to object and a hearing upon the objections as
15 provided in Section 21-175, and order those properties sold
16 by the County Collector at public sale to the highest bidder
17 for cash, notwithstanding the bid may be less than the full
18 amount of taxes, special taxes, special assessments,
19 interest, penalties and costs for which judgment has been
20 entered.
21 (a) Conducting the sale - Bidding. All properties
22 shall be offered for sale in consecutive order as they appear
23 in the delinquent list. The minimum bid for any property
24 shall be $250 or one-half of the tax if the total liability
25 is less than $500. The successful bidder shall immediately
26 pay the total amount of the minimum bid to the County
27 Collector in cash, by certified or cashier's check, or by
28 money order. If the bid exceeds the minimum bid, the
29 successful bidder shall pay the balance of the bid to the
30 county collector in cash, by certified or cashier's check, or
31 by money order by the close of the next business day. If the
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1 total amount of the minimum bid is not paid at the time of
2 sale or if the balance is not paid by the close of the next
3 business day, then the sale is void and any portion of the
4 bid paid the minimum bid, if paid, is forfeited to the county
5 general fund. In that event, the property shall be reoffered
6 for sale within 30 days of the last offering of property in
7 regular order. The collector shall make available to the
8 public a list of all properties to be included in any
9 reoffering due to the voiding of the original sale. The
10 collector is not required to serve or publish any other
11 notice of the reoffering of those properties. In the event
12 that any of the properties are not sold upon reoffering, or
13 are sold for less than the amount of the original voided
14 sale, the original bidder who failed to pay the bid amount
15 shall remain liable for the unpaid balance of the bid in an
16 action under Section 21-240. Liability shall not be reduced
17 where the bidder upon reoffering also fails to pay the bid
18 amount, and in that event both bidders shall remain liable
19 for the unpaid balance of their respective bids. A sale of
20 properties under this Section shall not be final until
21 confirmed by the court.
22 (b) Confirmation of sales. The county collector shall
23 file his or her report of sale in the court within 30 days of
24 the date of sale of each property. No notice of the county
25 collector's application to confirm the sales shall be
26 required except as prescribed by rule of the court. Upon
27 confirmation, except in cases where the sale becomes void
28 under Section 22-85, or in cases where the order of
29 confirmation is vacated by the court, a sale under this
30 Section shall extinguish the in rem lien of the general
31 taxes, special taxes and special assessments for which
32 judgment has been entered and a redemption shall not revive
33 the lien. Confirmation of the sale shall in no event affect
34 the owner's personal liability to pay the taxes, interest and
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1 penalties as provided in this Code or prevent institution of
2 a proceeding under Section 21-440 to collect any amount that
3 may remain due after the sale.
4 (c) Issuance of tax sale certificates. Upon confirmation
5 of the sale the County Clerk and the County Collector shall
6 issue to the purchaser a certificate of purchase in the form
7 prescribed by Section 21-250 as near as may be, except that
8 the form shall reflect that assignment of the certificate by
9 any person except a unit of local government is prohibited
10 under subsection (b) of Section 21-265. A certificate of
11 purchase shall not be issued to any person who is ineligible
12 to bid at the sale or to receive a certificate of purchase
13 under Section 21-265.
14 (d) Scavenger Tax Judgment, Sale and Redemption Record -
15 Sale of parcels not sold. The county collector shall prepare
16 a Scavenger Tax Judgment, Sale and Redemption Record. The
17 county clerk shall write or stamp on the scavenger tax
18 judgment, sale, forfeiture and redemption record opposite the
19 description of any property offered for sale and not sold, or
20 not confirmed for any reason, the words "offered but not
21 sold". The properties which are offered for sale under this
22 Section and not sold or not confirmed shall be offered for
23 sale annually thereafter in the manner provided in this
24 Section until sold, except in the case of mineral rights,
25 which after 10 consecutive years of being offered for sale
26 under this Section and not sold or confirmed shall no longer
27 be required to be offered for sale. At any time between
28 annual sales the County Collector may advertise for sale any
29 properties subject to sale under judgments for sale
30 previously entered under this Section and not executed for
31 any reason. The advertisement and sale shall be regulated by
32 the provisions of this Code as far as applicable.
33 (e) Proceeding to tax deed. The owner of the certificate
34 of purchase shall give notice as required by Sections 22-5
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1 through 22-30, and may extend the period of redemption as
2 provided by Section 21-385. At any time within 5 months prior
3 to expiration of the period of redemption from a sale under
4 this Code, the owner of a certificate of purchase may file a
5 petition and may obtain a tax deed under Sections 22-30
6 through 22-55. All proceedings for the issuance of a tax deed
7 and all tax deeds for properties sold under this Section
8 shall be subject to Sections 22-30 through 22-55. Deeds
9 issued under this Section are subject to Section 22-70. This
10 Section shall be liberally construed so that the deeds
11 provided for in this Section convey merchantable title.
12 (f) Redemptions from scavenger sales. Redemptions may be
13 made from sales under this Section in the same manner and
14 upon the same terms and conditions as redemptions from sales
15 made under the County Collector's annual application for
16 judgment and order of sale, except that in lieu of penalty
17 the person redeeming shall pay interest as follows if the
18 sale occurs before September 9, 1993:
19 (1) If redeemed within the first 2 months from the
20 date of the sale, 3% per month or portion thereof upon
21 the amount for which the property was sold;
22 (2) If redeemed between 2 and 6 months from the
23 date of the sale, 12% of the amount for which the
24 property was sold;
25 (3) If redeemed between 6 and 12 months from the
26 date of the sale, 24% of the amount for which the
27 property was sold;
28 (4) If redeemed between 12 and 18 months from the
29 date of the sale, 36% of the amount for which the
30 property was sold;
31 (5) If redeemed between 18 and 24 months from the
32 date of the sale, 48% of the amount for which the
33 property was sold;
34 (6) If redeemed after 24 months from the date of
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1 sale, the 48% herein provided together with interest at
2 6% per year thereafter.
3 If the sale occurs on or after September 9, 1993, the
4 person redeeming shall pay interest on that part of the
5 amount for which the property was sold equal to or less than
6 the full amount of delinquent taxes, special assessments,
7 penalties, interest, and costs, included in the judgment and
8 order of sale as follows:
9 (1) If redeemed within the first 2 months from the
10 date of the sale, 3% per month upon the amount of taxes,
11 special assessments, penalties, interest, and costs due
12 for each of the first 2 months, or fraction thereof.
13 (2) If redeemed at any time between 2 and 6 months
14 from the date of the sale, 12% of the amount of taxes,
15 special assessments, penalties, interest, and costs due.
16 (3) If redeemed at any time between 6 and 12 months
17 from the date of the sale, 24% of the amount of taxes,
18 special assessments, penalties, interest, and costs due.
19 (4) If redeemed at any time between 12 and 18
20 months from the date of the sale, 36% of the amount of
21 taxes, special assessments, penalties, interest, and
22 costs due.
23 (5) If redeemed at any time between 18 and 24
24 months from the date of the sale, 48% of the amount of
25 taxes, special assessments, penalties, interest, and
26 costs due.
27 (6) If redeemed after 24 months from the date of
28 sale, the 48% provided for the 24 months together with
29 interest at 6% per annum thereafter on the amount of
30 taxes, special assessments, penalties, interest, and
31 costs due.
32 The person redeeming shall not be required to pay any
33 interest on any part of the amount for which the property was
34 sold that exceeds the full amount of delinquent taxes,
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1 special assessments, penalties, interest, and costs included
2 in the judgment and order of sale.
3 Notwithstanding any other provision of this Section,
4 except for owner-occupied single family residential units
5 which are condominium units, cooperative units or dwellings,
6 the amount required to be paid for redemption shall also
7 include an amount equal to all delinquent taxes on the
8 property which taxes were delinquent at the time of sale.
9 The delinquent taxes shall be apportioned by the county
10 collector among the taxing districts in which the property is
11 situated in accordance with law. In the event that all moneys
12 received from any sale held under this Section exceed an
13 amount equal to all delinquent taxes on the property sold,
14 which taxes were delinquent at the time of sale, together
15 with all publication and other costs associated with the
16 sale, then, upon redemption, the County Collector and the
17 County Clerk shall apply the excess amount to the cost of
18 redemption.
19 (g) Bidding by county or other taxing districts. Any
20 taxing district may bid at a scavenger sale. The county
21 board of the county in which properties offered for sale
22 under this Section are located may bid as trustee for all
23 taxing districts having an interest in the taxes for the
24 nonpayment of which the parcels are offered. The County shall
25 apply on the bid the unpaid taxes due upon the property and
26 no cash need be paid. The County or other taxing district
27 acquiring a tax sale certificate shall take all steps
28 necessary to acquire title to the property and may manage and
29 operate the property so acquired.
30 When a county, or other taxing district within the
31 county, is a petitioner for a tax deed, no filing fee shall
32 be required on the petition. The county as a tax creditor and
33 as trustee for other tax creditors, or other taxing district
34 within the county shall not be required to allege and prove
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1 that all taxes and special assessments which become due and
2 payable after the sale to the county have been paid. The
3 county shall not be required to pay the subsequently accruing
4 taxes or special assessments at any time. Upon the written
5 request of the county board or its designee, the county
6 collector shall not offer the property for sale at any tax
7 sale subsequent to the sale of the property to the county
8 under this Section. The lien of taxes and special assessments
9 which become due and payable after a sale to a county shall
10 merge in the fee title of the county, or other taxing
11 district, on the issuance of a deed. The County may sell the
12 properties so acquired, or the certificate of purchase
13 thereto, and the proceeds of the sale shall be distributed to
14 the taxing districts in proportion to their respective
15 interests therein. The presiding officer of the county board,
16 with the advice and consent of the County Board, may appoint
17 some officer or person to attend scavenger sales and bid on
18 its behalf.
19 (h) Miscellaneous provisions. In the event that the
20 tract of land or lot sold at any such sale is not redeemed
21 within the time permitted by law and a tax deed is issued,
22 all moneys that may be received from the sale of properties
23 in excess of the delinquent taxes, together with all
24 publication and other costs associated with the sale, shall,
25 upon petition of any interested party to the court that
26 issued the tax deed, be distributed by the County Collector
27 pursuant to order of the court among the persons having legal
28 or equitable interests in the property according to the fair
29 value of their interests in the tract or lot. Section 21-415
30 does not apply to properties sold under this Section. Appeals
31 may be taken from the orders and judgments entered under this
32 Section as in other civil cases. The remedy herein provided
33 is in addition to other remedies for the collection of
34 delinquent taxes.
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1 (Source: P.A. 90-514, eff. 8-22-97; 90-655, eff. 7-30-98.)
2 (35 ILCS 200/21-265)
3 Sec. 21-265. Scavenger sale; persons ineligible to bid
4 or purchase; assignment of certificates prohibited.
5 (a) No person, except a unit of local government, shall
6 be eligible to bid or receive a certificate of purchase at
7 any sale under Section 21-260 unless that person has
8 completed and delivered to the county clerk a true, accurate
9 and complete application for certificate of purchase which
10 shall affirm that:
11 (1) the person has not bid upon or applied to
12 purchase any property at the sale for a person who is the
13 party or agent of the party who owns the property or is
14 responsible for the payment of the delinquent taxes;
15 (2) the person is not, nor is he or she the agent
16 for, the owner or party responsible for payment of the
17 general taxes on any property which is located in the
18 same county in which the sale is held and which is tax
19 delinquent or forfeited for all or any part of each of 2
20 or more years, excepting any year for which a certificate
21 of error issued under Sections 14-15, 14-20 and 14-25 is
22 pending for adjudication; and
23 (3) the person, although otherwise eligible to bid,
24 has not either directly or through an agent twice during
25 the same sale failed to complete a purchase by the
26 immediate payment of the minimum bid or the payment of
27 the balance of a bid within the time provided by Section
28 21-260; and.
29 (4) the person, whether or not otherwise eligible
30 to bid, has not been prohibited from participating in the
31 sale by prior order of any court.
32 (b) No person, except a unit of local government, shall
33 convey or assign, directly or indirectly, a certificate of
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1 purchase for a sale under Section 21-260 or any interest in
2 the certificate. No person shall accept a conveyance or
3 assignment of a certificate of purchase or interest in the
4 certificate, except from a unit of local government. Any
5 attempted assignment of a certificate of purchase or any
6 interest in the certificate in violation of this subsection,
7 and the sale evidenced by the certificate, are null and void.
8
9 (Source: P.A. 86-949; 87-669; 88-455.)
10 (35 ILCS 200/21-275)
11 Sec. 21-275. Scavenger sale; application for certificate
12 of purchase. The application for certificate of purchase
13 shall be executed by the purchaser and by any individual
14 bidder acting in the purchaser's behalf. The application
15 shall be initially executed and delivered to the county clerk
16 at the time of registration for the sale as provided in this
17 Section. Before receiving any certificate of purchase, each
18 purchaser and individual bidder acting in the purchaser's
19 behalf shall sign and deliver to the county clerk a schedule
20 or schedules of the properties for which that purchaser has
21 successfully bid and is applying to purchase, which
22 schedule(s) shall be attached to and incorporated within the
23 application. The schedule(s) shall be accompanied by a fee,
24 for each property listed, of $10 in counties with less than
25 3,000,000 inhabitants and $20 in counties with 3,000,000 or
26 more inhabitants. The application and schedule(s) shall be
27 in substantially the following form:
28 APPLICATION FOR CERTIFICATE OF PURCHASE
29 Date of Application: ...............
30 Name of Purchaser: .................
31 Address: ...........................
32 Name of Bidder: ....................
33 Address: ...........................
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1 I (we) hereby apply to the County Clerk and County
2 Treasurer of ..... County for issuance of a certificate of
3 purchase for each of the properties on the attached
4 schedule(s), and state as follows:
5 1. I (we) made (or authorized) the successful bid on
6 each property listed on the attached schedule(s) at the sale
7 of delinquent properties under Section 21-260 of the Property
8 Tax Code conducted by the County Treasurer of ..... County,
9 Illinois, on the dates indicated for each property on the
10 schedule(s).
11 2. At least 5 business days before the first day of this
12 sale, I (we) submitted a truthful, accurate and complete
13 registration to the Treasurer of ..... County on the form(s)
14 and according to the regulations prescribed by the
15 Treasurer's office.
16 3. Neither I (we) nor any person or firm identified in
17 the registration submitted to the Treasurer of ..... County
18 was an owner or agent of an owner, mortgagee or agent of a
19 mortgagee, lienholder or agent of a lienholder, holder of
20 beneficial interest or agent of a holder of a beneficial
21 interest in or of any property identified on the schedule(s)
22 attached to this application on January 1st of any years for
23 which taxes were delinquent at the time of my (our) bid(s)
24 described in the schedule(s).
25 4. Neither I (we) nor any person or firm identified in
26 the registration submitted to the Treasurer of ..... County
27 was an owner or agent of an owner, mortgagee or agent of a
28 mortgagee, lienholder or agent of a lienholder, holder of a
29 beneficial interest or agent of a holder of a beneficial
30 interest in or of the property identified on the schedule(s)
31 attached to this application at the time of the bid(s)
32 described in the schedule.
33 5. Neither I (we) nor any person or firm identified in
34 the registration submitted to the Treasurer of ..... County
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1 was an owner or agent for an owner, or party or agent for a
2 party responsible for the payment of delinquent taxes, on any
3 property in the county which was tax delinquent or forfeited
4 for all or any part of each of 2 or more years when the
5 registration was submitted.
6 6. Neither I (we) nor any person acting in my (our)
7 behalf has twice failed to complete any a purchase at the
8 sale during which the properties on the attached schedule(s)
9 were offered by failing to immediately pay a minimum bid or
10 by failing to pay the total amount balance of a bid for any
11 property within one business day thereafter.
12 7. Neither I (we) nor any person acting in my (our)
13 behalf was prohibited by order of any court from
14 participating in the sale during which the properties on the
15 attached schedule(s) were offered.
16 I (we) hereby affirm that I (we) have read this
17 application and that the statements made in it are personally
18 known by me (us) to be true, accurate and complete, under
19 penalty of perjury as provided by law.
20 I (we) further understand that this application shall be
21 void unless the schedule(s) of properties referred to in the
22 application is (are) completed and delivered to the County
23 Clerk.
24 ........................ Dated: ..............
25 (Signature of Purchaser)
26 ........................ Dated: ..............
27 (Signature of Bidder)
28 SCHEDULE OF PROPERTIES
29 Permanent Index Number Date of Bid
30 (insert number) (insert date)
31 I (we) hereby affirm that I (we) successfully bid upon
32 the above properties at the sale conducted by the County
33 Treasurer of ..... County on the indicated dates, and I (we)
34 request that the County Clerk of ..... County attach this
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1 schedule to my (our) application for certificate of purchase
2 dated ......
3 Signed under penalty of perjury as provided by law:
4 ........................ Dated: ..............
5 (Signature of Purchaser)
6 ........................ Dated: ..............
7 (Signature of Bidder)
8 (Source: P.A. 86-949; 87-669; 88-455.)
9 (35 ILCS 200/21-280)
10 Sec. 21-280. Scavenger sale; ineligible bid; liability.
11 (a) Any person who is ineligible under Section 21-265 to
12 bid or to receive a certificate of purchase from a sale under
13 Section 21-260, who nevertheless registers to bid or bids or
14 receives or acquires ownership of a certificate of purchase
15 from a sale, and any person who registers to bid or bids at a
16 sale on behalf of an ineligible person, shall be personally
17 liable, jointly and severally, in a sum equal to three times
18 the full amount of delinquent or forfeited general taxes,
19 special taxes or special assessments, interest, penalties,
20 and costs for which the judgment for sale under Section
21 21-260 was entered. The liability provided by this Section
22 shall be in addition to the liability for the general taxes
23 imposed by Section 9-175 through 9-185 and shall not be
24 offset by any other payment of the taxes.
25 (a-5) Any person, except a unit of local government, who
26 conveys, assigns, or accepts the conveyance or assignment of
27 a certificate of purchase for a sale under Section 21-260 or
28 any interest in the certificate in violation of subsection
29 (b) of Section 21-265 is personally liable, jointly and
30 severally, for a sum equal to three times the full amount of
31 delinquent or forfeited general taxes, special taxes or
32 special assessments, interest, penalties, and costs for which
33 the judgment for sale under Section 21-260 was entered. The
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1 liability provided by this Section is in addition to any
2 liability for the general taxes imposed by Sections 9-175
3 through 9-185 and may not be offset by any other payment of
4 the taxes.
5 (b) The State's attorney of the county in which the sale
6 under Section 21-260 was conducted may bring an action in the
7 name of the People of the State of Illinois against any the
8 person who may be liable under any provision of this Section
9 and, upon a finding of liability under this Section, the
10 court shall enter judgment against the person in a sum equal
11 to three times the full amount of delinquent or forfeited
12 general taxes, special taxes or special assessments,
13 interest, penalties, and costs for which judgment for sale
14 under Section 21-260 was entered, together with the costs of
15 the action and reasonable attorney's fees. The judgment shall
16 also provide that the person found liable under this Section
17 is permanently barred from participating in any future
18 scavenger sale under Section 21-260. The proceeds of any
19 judgment under this Section shall be paid into the county
20 general fund.
21 (Source: P.A. 86-949; 88-455.)
22 (35 ILCS 200/21-285)
23 Sec. 21-285. Tax scavenger sale fraud; definitions. For
24 purposes of Section 21-290:
25 (1) "Ownership interest" means any title or other
26 interest in property, including without limitation any
27 beneficial interest in a land trust, the holder of which
28 is considered to be the owner of the property for
29 purposes of taxation under Section 9-175.
30 (2) "Nonownership interest" means any interest in
31 real property other than a contingent interest and other
32 than an ownership interest as defined in this Section,
33 including without limitation a mortgage, equitable
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1 mortgage or other interest in the nature of a mortgage,
2 leasehold, easement, or lien.
3 (3) "Real property" has the same meaning as defined
4 in Section 1-130, and includes leasehold estates subject
5 to taxation as property under Section 9-195.
6 (4) "Beneficial interest" and "land trust" have the
7 meanings given to those terms in the Land Trust
8 Beneficial Interest Disclosure Act.
9 (5) "Person" means any natural person or
10 corporation, except a unit of local government. This
11 paragraph (5) shall be construed as declarative of the
12 existing law and not as a new enactment.
13 (Source: P.A. 86-949; 88-455.)
14 (35 ILCS 200/21-290)
15 Sec. 21-290. Offense of scavenger sale fraud. A person
16 commits the offense of tax sale fraud who knowingly:
17 (a) enters a bid or authorizes or procures the
18 entry of a bid on any property offered for sale under
19 Section 21-260, when the person in whose behalf the bid
20 is made or authorized or procured has an ownership
21 interest or nonownership interest in the property, or
22 where that person had such an interest on January 1 of
23 any year for which delinquent taxes were included within
24 the judgment for sale under Section 21-260;
25 (b) acquires, or attempts to acquire, ownership of
26 any certificate of purchase for property sold under
27 Section 21-260, when the person in whose behalf such
28 certificate of purchase is or would be acquired has an
29 ownership interest or nonownership interest in the
30 property, or where that person had that interest on
31 January 1 of any year for which delinquent taxes were
32 included within the judgment for sale under Section
33 21-260;
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1 (c) conveys or assigns, or accepts the conveyance
2 or assignment of, any certificate of purchase for
3 property sold under Section 21-260 or any interest in the
4 certificate in violation of subsection (b) of Section
5 21-265 to any person who has an ownership interest or
6 nonownership interest in the property, or who had that
7 interest on January 1 of any year for which delinquent
8 taxes were included within the judgment for sale under
9 Section 21-260;
10 (d) makes a false statement in any application for
11 certificate of purchase or registration form submitted
12 under Sections 21-270 and 21-275; or
13 (d-5) conspires to violate any of the provisions of
14 subsections (a) through (d); or
15 (e) forfeits a bid 2 or more bids at any one sale
16 under Section 21-260 by failing to pay the minimum cash
17 bid timely or by failing to pay the full amount balance
18 of the bid timely as required by Section 21-260.
19 Commission of any one act described in subsections (a)
20 through (e) is a Class A misdemeanor. Commission of more
21 than one act described in subsections (a) through (e) during
22 a single course of conduct is a Class 4 felony. A second or
23 subsequent conviction for violation of any provision of
24 subsections (a) through (e) is a Class 4 felony. Any person
25 convicted under any provision of this Section is permanently
26 barred from participating in any future scavenger sale under
27 Section 21-260.
28 Tax sale fraud is a Class A misdemeanor. A subsequent
29 conviction for tax sale fraud as defined in subsections (a)
30 through (d) of this Section is a Class 4 felony.
31 (Source: P.A. 86-949; 88-455.)
32 (35 ILCS 200/21-305)
33 Sec. 21-305. Payments from Indemnity Fund.
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1 (a) Any owner of property sold under any provision of
2 this Code (i) who sustains loss or damage by reason of the
3 issuance of a tax deed under Section 21-445 or 22-40 and (ii)
4 who is barred or is in any way precluded from bringing an
5 action for the recovery of the property, has the right to
6 indemnity for the loss or damage sustained, limited as
7 follows:
8 (1) An owner who sustains the loss or damage
9 without fault or negligence of his or her own has the
10 right to indemnity limited to the fair cash value of the
11 property on the date that the tax deed was issued, less
12 any mortgages or liens on the property. In determining
13 the existence of fault or negligence, the court shall
14 consider whether the owner exercised ordinary reasonable
15 diligence under all of the relevant circumstances.
16 (2) An owner who resided on the property, which
17 contained 4 or fewer dwelling units, on the last day of
18 the period of redemption and who is equitably entitled to
19 compensation for the loss or damage sustained, has the
20 right to indemnity limited to the fair cash value of the
21 property reflected in the County Assessor's records on
22 the date that the tax deed was issued less any mortgages
23 or liens on the property.
24 (3) In determining the fair cash value of property,
25 less any mortgages or liens on the property, under this
26 subsection (a), the court shall not calculate or adjust
27 the amount of the award based on the petitioner's
28 personal liability to a third party. The court shall
29 deduct from the fair cash value the lien of taxes sold,
30 measured by the amount which the petitioner would have
31 had to pay in order to redeem on the last day of the
32 period of redemption. Any owner of property sold under
33 any provision of this Code, who without fault or
34 negligence of his or her own sustains loss or damage by
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1 reason of the issuance of a tax deed under Sections 22-40
2 or 21-445 and who is barred or in any way precluded from
3 bringing an action for the recovery of the property or
4 any owner of property containing 4 or less dwelling units
5 who resided thereon the last day of the period of
6 redemption who, in the opinion of the Court which issued
7 the tax deed order, is equitably entitled to just
8 compensation, has the right to indemnity for the loss or
9 damage sustained. Indemnity shall be limited to the fair
10 cash value of the property as of the date that the tax
11 deed was issued, less any mortgages or liens thereon.
12 (b) The right of indemnity shall be exercised according
13 to the following provisions:
14 (1) Any person claiming indemnity hereunder shall
15 petition the Court which ordered the tax deed to issue,
16 shall name the County Treasurer, as Trustee of the
17 indemnity fund, as defendant to the petition, and shall
18 ask that judgment be entered against the County
19 Treasurer, as Trustee, in the amount of the indemnity
20 sought. The provisions of the Civil Practice Law shall
21 apply to proceedings under the petition, except that in
22 any case tried to a jury, the jury shall consist of six
23 persons neither the petitioner nor County Treasurer shall
24 be entitled to trial by jury on the issues presented in
25 the petition.
26 (2) The Court shall liberally construe this Section
27 to provide compensation wherever in the discretion of the
28 Court the equities warrant such action. The County
29 Treasurer, as Trustee of the indemnity fund, shall be
30 subrogated to all parties in whose favor judgment may be
31 rendered against him or her, and by third party
32 complaint may bring in as a defendant any a person, other
33 than the tax deed grantee and its successors in title,
34 not a party to the action who is or may be liable to him
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1 or her, as subrogee, for all or part of the petitioner's
2 claim against him or her.
3 (c) No contract involving the proceeds of a judgment for
4 indemnity under this Section, between the tax deed grantee or
5 its successors in title and the indemnity petitioner or his
6 or her successors, shall be valid or enforceable unless its
7 entire terms are set forth in a writing, filed of record in
8 the court that entered the judgment upon notice to all
9 parties to the case, and unless it meets the requirements of
10 this subsection.
11 (1) The contract shall fully identify all persons
12 beneficially interested in the contract, directly or
13 indirectly, including at least the following information:
14 the names and addresses of any natural persons; the place
15 of incorporation of any corporation and the names and
16 addresses of its shareholders unless it is publicly held;
17 the names and addresses of all general and limited
18 partners of any partnership; the names and addresses of
19 all persons having an ownership interest in any entity
20 doing business under an assumed name, and the county in
21 which the assumed business name is registered; and the
22 nature and extent of the interest in the contract of each
23 person identified.
24 (2) The contract shall state the time period during
25 which it was negotiated and agreed upon, including the
26 period from the date of the first direct or indirect
27 contact between any of the contracting parties to the
28 date of its execution.
29 (3) The contract shall state the name and address
30 of each natural person who took part in negotiating it
31 and shall state the party that the person represented in
32 the negotiations.
33 (4) The contract shall fully disclose any and all
34 provisions for payment of attorney's fees by or on behalf
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1 of each party.
2 (5) The court that entered the judgment for
3 indemnity under this Section shall have jurisdiction over
4 all proceedings to enforce or determine the validity of
5 the contract. The State's Attorney may appear in the
6 proceedings in the name of the People of the State of
7 Illinois to pursue discovery or otherwise to secure the
8 public interest in full disclosure and compliance with
9 this Section.
10 (Source: P.A. 86-1028; 86-1431; 88-455.)
11 (35 ILCS 200/21-306 new)
12 Sec. 21-306. Indemnity fund fraud.
13 (a) A person commits the offense of indemnity fund fraud
14 when that person knowingly:
15 (1) offers or agrees to become a party to, or to
16 acquire an interest in, a contract involving the proceeds
17 of a judgment for indemnity under Section 21-305 before
18 the end of the period of redemption from the tax sale to
19 which the judgment relates;
20 (2) makes a false statement in a contract described
21 in paragraph (1);
22 (3) omits to state any material fact in a contract
23 described in paragraph (1) in violation of subsection (c)
24 of Section 21-305;
25 (4) conspires to violate any of the provisions of
26 this subsection.
27 (b) Commission of any one act described in subsection
28 (a) is a Class A misdemeanor. Commission of more than one act
29 described in subsection (a) during a single course of conduct
30 is a Class 4 felony. A second or subsequent conviction for
31 violation of any portion of this subsection is a Class 4
32 felony.
33 (c) The State's Attorney of the county in which a
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1 judgment for indemnity under Section 21-305 is entered may
2 bring a civil action in the name of the People of the State
3 of Illinois against a person who violates paragraph (1), (2),
4 or (3) of subsection (a). Upon a finding of liability in the
5 action the court shall enter judgment in favor of the People
6 in a sum equal to three times the amount of the judgment for
7 indemnity, together with costs of the action and reasonable
8 attorney's fees. The proceeds of any judgment under this
9 subsection shall be paid into the general fund of the county.
10
11 (35 ILCS 200/21-310)
12 Sec. 21-310. Sales in error.
13 (a) When, upon application of the county collector, tax
14 purchaser, or a municipality which owns or has owned the
15 property ordered sold, it appears to the satisfaction of the
16 court which ordered the property sold that any of the
17 following subsections are applicable, the court shall declare
18 the sale to be a sale in error:
19 (1) the property was not subject to taxation,
20 (2) the taxes or special assessments had been paid
21 prior to the sale of the property,
22 (3) there is a double assessment,
23 (4) the description is void for uncertainty,
24 (5) the assessor, chief county assessment officer
25 certifies that, board of review, or board of appeals has
26 made an error (other than an error of judgment as to the
27 value of any property) has been made in the assessment,
28 or
29 (6) prior to the tax sale a voluntary or
30 involuntary petition has been filed by or against the
31 legal or beneficial owner of the property requesting
32 relief under the provisions of 11 U.S.C. Chapter 7, 11,
33 12 or 13.
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1 (b) When, upon application of the tax purchaser or his
2 or her assignee only, it appears to the satisfaction of the
3 court which ordered the property sold that any of the
4 following subsections are applicable, the court shall declare
5 a sale in error:
6 (1) A voluntary or involuntary petition under the
7 provisions of U.S.C. Chapter 7, 11, 12, or 13 has been
8 filed subsequent to the tax sale and prior to the
9 issuance of the tax deed.
10 (2) The improvements upon the property sold have
11 been substantially destroyed or rendered uninhabitable or
12 otherwise unfit for occupancy subsequent to the tax sale
13 and prior to the issuance of the tax deed.
14 (3) There is an interest held by the United States
15 in the property sold which could not be extinguished by
16 the tax deed.
17 (4) The real property contains a hazardous
18 substance, hazardous waste, or underground storage tank
19 that would require cleanup or other removal under any
20 federal, State, or local law, ordinance, or regulation,
21 only if the tax purchaser purchased the property without
22 actual knowledge of the hazardous substance, hazardous
23 waste, or underground storage tank. This paragraph (4)
24 applies only to tax purchases occurring after January 1,
25 1990 and if the tax purchaser or his or her assignee has
26 made application for a sale in error at any time before
27 the issuance of a tax deed.
28 If a sale is declared to be a sale in error, the county
29 clerk shall make entry in the tax judgment, sale, redemption
30 and forfeiture record, that the property was erroneously
31 sold, and the county collector shall, on demand of the owner
32 of the certificate of purchase, refund the amount paid, pay
33 any interest and costs as may be ordered under Sections
34 21-315 through 21-335, and cancel the certificate so far as
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1 it relates to the property. The county collector shall deduct
2 from the accounts of the appropriate taxing bodies their pro
3 rata amounts paid.
4 (Source: P.A. 88-455; 88-676, eff. 12-14-94.)
5 (35 ILCS 200/21-315)
6 Sec. 21-315. Interest on refund.
7 (a) In those cases which arise solely under grounds set
8 forth in Section 21-310 or 22-35, and in no other cases, the
9 court which orders a sale in error shall also award interest
10 on the refund of the amount paid for the certificate of
11 purchase, together with all costs paid by the owner of the
12 certificate of purchase or his or her assignor which were
13 posted to the tax judgment, sale, redemption and forfeiture
14 record, except as otherwise provided in this Section. Except
15 as otherwise provided in this Section, interest shall be
16 awarded and paid at the rate of 1% per month from the date of
17 sale to the date of payment to the tax purchaser, or in an
18 amount equivalent to the penalty interest which would be
19 recovered on a redemption at the time of payment pursuant to
20 the order for sale in error, whichever is less. No further
21 interest or costs, however, shall be paid beginning 45 days
22 after the tax purchaser acquires actual knowledge of the
23 grounds on which the sale is declared to be erroneous.
24 (b) Interest on the refund to the owner of the
25 certificate of purchase shall not be paid (i) in any case in
26 which the improvements upon the property sold have been
27 substantially destroyed or rendered uninhabitable or
28 otherwise unfit for occupancy, (ii) when the sale in error is
29 made pursuant to Section 22-35, (iii) in any case, after
30 January 1, 1990, in which the real estate contains a
31 hazardous substance, hazardous waste, or underground storage
32 tank that would require a cleanup or other removal under any
33 federal, State, or local law, ordinance or regulation, only
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1 if the tax purchaser purchased the property without actual
2 knowledge of the hazardous substance, hazardous waste or
3 underground storage tank, or (iv) when a sale under Section
4 21-260 has been made in error, on any portion of the refund
5 that consists of moneys paid for the sale in excess of the
6 full amount of delinquent taxes, special taxes, special
7 assessments, interests, penalties, and costs for which
8 judgment was entered, or (v) in any other case where the
9 court determines that the tax purchaser had actual knowledge
10 prior to the sale of the grounds on which the sale is
11 declared to be erroneous.
12 (c) When the county collector files a petition for sale
13 in error under Section 21-310 and mails a notice thereof by
14 certified or registered mail to the tax purchaser, any
15 interest otherwise payable under this Section shall cease to
16 accrue as of the date the petition is filed, unless the tax
17 purchaser agrees to an order for sale in error upon the
18 presentation of the petition to the court. Notices under
19 this subsection may be mailed to the original owner of the
20 certificate of purchase, or to the latest assignee, if known.
21 When the owner of the certificate of purchase contests the
22 collector's petition solely to determine whether the grounds
23 for sale in error are such as to support a claim for
24 interest, the court may direct that the principal amount of
25 the refund be paid to the owner of the certificate of
26 purchase forthwith. If the court thereafter determines that a
27 claim for interest lies under this Section, it shall award
28 such interest from the date of sale to the date the principal
29 amount was paid.
30 (Source: P.A. 89-69, eff. 6-30-95; 90-655, eff. 7-30-98.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.