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91_HB1769sam001
LRB9104011PTpkam
1 AMENDMENT TO HOUSE BILL 1769
2 AMENDMENT NO. . Amend House Bill 1769 by replacing
3 the title with the following:
4 "AN ACT to amend certain Acts in relation to real
5 property."; and
6 by inserting below Section 5 the following:
7 "Section 10. The Illinois Municipal Code is amended by
8 changing Section 11-31-2 as follows:
9 (65 ILCS 5/11-31-2) (from Ch. 24, par. 11-31-2)
10 Sec. 11-31-2. (a) If the appropriate official of any
11 municipality determines, upon due investigation, that any
12 building or structure therein fails to conform to the minimum
13 standards of health and safety as set forth in the applicable
14 ordinances of such municipality, and the owner or owners of
15 such building or structure fails, after due notice, to cause
16 such property so to conform, the municipality may make
17 application to the circuit court for an injunction requiring
18 compliance with such ordinances or for such other order as
19 the court may deem necessary or appropriate to secure such
20 compliance.
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1 If the appropriate official of any municipality
2 determines, upon due investigation, that any building or
3 structure located within the area affected by a conservation
4 plan, adopted by the municipality pursuant to the Urban
5 Community Conservation Act, fails to conform to the standards
6 and provisions of such plan, and the owner or owners of such
7 building or structure fails, after due notice, to cause such
8 property so to conform, the municipality has the power to
9 make application to the circuit court for an injunction
10 requiring compliance with such plan or for such other order
11 as the court may deem necessary or appropriate to secure such
12 compliance.
13 The hearing upon such suit shall be expedited by the
14 court and shall be given precedence over all other actions.
15 If, upon application hereunder, the court orders the
16 appointment of a receiver to cause such building or structure
17 to conform, such receiver may use the rents and issues of
18 such property toward maintenance, repair and rehabilitation
19 of the property prior to and despite any assignment of rents;
20 and the court may further authorize the receiver to recover
21 the cost of such maintenance, repair and rehabilitation by
22 the issuance and sale of notes or receiver's certificates
23 bearing such interest as the court may fix, and such notes or
24 certificates, after their initial issuance and transfer by
25 the receiver, shall be freely transferable and when sold or
26 transferred by the receiver in return for a valuable
27 consideration in money, material, labor or services, shall be
28 a first lien upon the real estate and the rents and issues
29 thereof, and shall be superior to all prior assignments of
30 rents and all prior existing liens and encumbrances, except
31 taxes; provided, that within 90 days of such sale or transfer
32 for value by the receiver of such note or certificate, the
33 holder thereof shall file notice of lien in the office of the
34 recorder in the county in which the real estate is located,
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1 or in the office of the registrar of titles of such county if
2 the real estate affected is registered under the Registered
3 Titles (Torrens) Act. The notice of the lien filed shall set
4 forth (1) a description of the real estate affected
5 sufficient for the identification thereof, (2) the face
6 amount of the receiver's note or certificate, together with
7 the interest payable thereon, and (3) the date when the
8 receiver's note or certificate was sold or transferred for
9 value by the receiver. Upon payment to the holder of the
10 receiver's note or certificate of the face amount thereof
11 together with any interest thereon to such date of payment,
12 and upon the filing of record of a sworn statement of such
13 payment, the lien of such certificate shall be released.
14 Unless the lien is enforced pursuant to subsection (b), the
15 lien may be enforced by proceedings to foreclose as in the
16 case of mortgages or mechanics' liens, and such action to
17 foreclose such lien may be commenced at any time after the
18 date of default. For the purposes of this subsection (a), the
19 date of default shall be deemed to occur 90 days from the
20 date of issuance of the receiver's certificate if at that
21 time the certificate remains unpaid in whole or in part.
22 In the event a receiver appointed under this subsection
23 (a) completes a feasibility study which study finds that the
24 property can not be economically brought into compliance with
25 the minimum standards of health and safety as set forth in
26 the applicable ordinances of the municipality, the receiver
27 may petition the court for reimbursement for the cost of the
28 feasibility study from the receivership feasibility study and
29 fee fund. The court shall review the petition and authorize
30 reimbursement from the fund to the receiver if the court
31 finds that the findings in the feasibility report are
32 reasonable, that the fee for the feasibility report is
33 reasonable, and that the receiver is unable to obtain
34 reimbursement other than by foreclosure of a lien on the
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1 property. If the court grants the petition for reimbursement
2 from the fund and, upon receiving certification from the
3 court of the amount to be paid, the county treasurer shall
4 order that amount paid from the fund to the receiver. If the
5 court grants the petition for reimbursement from the fund,
6 the court shall also authorize and direct the receiver to
7 issue a certificate of lien against title. The recorded lien
8 shall be a first lien upon the real estate and shall be
9 superior to all prior liens and encumbrances except real
10 estate taxes. The court shall also order the receiver to
11 reimburse the fund to the extent that the receiver is
12 reimbursed upon foreclosure of the receiver's lien upon sale
13 of the property.
14 In any proceedings hereunder in which the court orders
15 the appointment of a receiver, the court may further
16 authorize the receiver to enter into such agreements and to
17 do such acts as may be required to obtain first mortgage
18 insurance on the receiver's notes or certificates from an
19 agency of the Federal Government.
20 (b) In any case where a municipality has obtained a lien
21 pursuant to subsection (a), the municipality may enforce such
22 lien pursuant to this subsection (b) in the same proceeding
23 in which the lien is authorized.
24 A municipality desiring to enforce a lien under this
25 subsection (b) shall petition the court to retain
26 jurisdiction for foreclosure proceedings under this
27 subsection. Notice of the petition shall be served, by
28 certified or registered mail, on all persons who were served
29 notice under subsection (a). The court shall conduct a
30 hearing on the petition not less than 15 days after such
31 notice is served. If the court determines that the
32 requirements of this subsection (b) have been satisfied, it
33 shall grant the petition and retain jurisdiction over the
34 matter until the foreclosure proceeding is completed. If the
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1 court denies the petition, the municipality may enforce the
2 lien in a separate action as provided in subsection (a).
3 All persons designated in Section 15-1501 of the Code of
4 Civil Procedure as necessary parties in a mortgage
5 foreclosure action shall be joined as parties prior to
6 issuance of an order of foreclosure. Persons designated in
7 Section 15-1501 of the Code of Civil Procedure as permissible
8 parties may also be joined as parties in the action.
9 The provisions of Article XV of the Code of Civil
10 Procedure applicable to mortgage foreclosures shall apply to
11 the foreclosure of a lien pursuant to this subsection (b),
12 except to the extent that such provisions are inconsistent
13 with this subsection. However, for purposes of foreclosures
14 of liens pursuant to this subsection, the redemption period
15 described in subsection (b) of Section 15-1603 of the Code of
16 Civil Procedure shall end 60 days after the date of entry of
17 the order of foreclosure.
18 (Source: P.A. 88-658, eff. 1-1-95.)
19 Section 15. The Registered Titles (Torrens) Act is
20 amended by changing Sections 100 and 102 and adding Section
21 102.3 as follows:
22 (765 ILCS 35/100) (from Ch. 30, par. 137)
23 Sec. 100. All sums of money received pursuant to Sections
24 40, 99, and 108 of this Act shall be paid by the registrar to
25 the county treasurer of the county in which the land is
26 situated, for the purpose of maintaining an indemnity fund
27 under the terms of this Act, and for the purposes provided
28 for in Sections 102.1, and 102.2, and 102.3. It shall be the
29 duty of the treasurer to invest all of the fund, including
30 both principal and income, from time to time if not
31 immediately required for payments of indemnities in
32 accordance with Division 3-11 and other applicable provisions
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1 of the Counties Code. The county treasurer shall report
2 annually to the county board the condition and income of the
3 fund and forward a copy of the report to the registrar.
4 (Source: P.A. 90-778, eff. 8-14-98.)
5 (765 ILCS 35/102) (from Ch. 30, par. 139)
6 Sec. 102. Except as otherwise provided in Sections 102.1,
7 and 102.2, and 102.3 of this Act, the indemnity fund shall
8 be held to satisfy judgments obtained or claims allowed
9 against the county for losses or damages as aforesaid. Such
10 claims for damages shall be presented to the registrar and
11 county board, and such county board is hereby authorized and
12 empowered to allow or reject the same and to provide for the
13 payment of such claims as may be allowed. No claims for
14 such losses or damages shall be allowed and paid by any such
15 county board unless upon the recommendation of the registrar
16 who shall be in office at the time the claim shall be
17 allowed. The county board shall grant or deny such claims in
18 whole or in part within 60 days from the date of the receipt
19 thereof by the county board. In the event the county board
20 shall fail to grant or deny such claims in whole or in part
21 within 60 days from the date of the receipt thereof, the
22 claims are deemed to be denied. Judicial review may be had
23 in accordance with Administrative Review Law as heretofore or
24 hereafter amended.
25 (Source: P.A. 90-778, eff. 8-14-98.)
26 (765 ILCS 35/102.3 new)
27 Sec. 102.3. Transfer to the receivership feasibility
28 study and fee fund. Within 30 days after the effective date
29 of this amendatory Act of the 91st General Assembly, the
30 county treasurer shall transfer $250,000 from the indemnity
31 fund to the receivership feasibility study and fee fund, a
32 special fund created in the county treasury. Moneys in the
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1 fund shall be used for reimbursements to receivers for whom
2 the county treasurer has received a certification of
3 reimbursement due from the circuit court under Section
4 11-31-2 of the Illinois Municipal Code.
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.".