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91_HB1890
LRB9103554PTmb
1 AN ACT to amend the Code of Civil Procedure by changing
2 Section 15-1501.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Code of Civil Procedure is amended by
6 changing Section 15-1501 as follows:
7 (735 ILCS 5/15-1501) (from Ch. 110, par. 15-1501)
8 Sec. 15-1501. Parties.
9 (a) Necessary Parties. For the purposes of Section
10 2-405 of the Code of Civil Procedure, only (i) the mortgagor
11 and (ii) other persons (but not guarantors) who owe payment
12 of indebtedness or the performance of other obligations
13 secured by the mortgage and against whom personal liability
14 is asserted shall be necessary parties defendant in a
15 foreclosure. The court may proceed to adjudicate their
16 respective interests, but any disposition of the mortgaged
17 real estate shall be subject to (i) the interests of all
18 other persons not made a party or (ii) interests in the
19 mortgaged real estate not otherwise barred or terminated in
20 the foreclosure.
21 (b) Permissible Parties. Any party may join as a party
22 any other person, although such person is not a necessary
23 party, including, without limitation, the following:
24 (1) All persons having a possessory interest in the
25 mortgaged real estate;
26 (2) A mortgagor's spouse who has waived the right
27 of homestead;
28 (3) A trustee holding an interest in the mortgaged
29 real estate or a beneficiary of such trust;
30 (4) The owner or holder of a note secured by a
31 trust deed;
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1 (5) Guarantors, provided that in a foreclosure any
2 such guarantor also may be joined as a party in a
3 separate count in an action on such guarantor's guaranty;
4 (6) The State of Illinois or any political
5 subdivision thereof, where a foreclosure involves real
6 estate upon which the State or such subdivision has an
7 interest or claim for lien, in which case "An Act in
8 relation to immunity for the State of Illinois", approved
9 December 10, 1971, as amended, shall not be effective;
10 (7) The United States of America or any agency or
11 department thereof where a foreclosure involves real
12 estate upon which the United States of America or such
13 agency or department has an interest or a claim for lien;
14 (8) Any assignee of leases or rents relating to the
15 mortgaged real estate;
16 (9) Any person who may have a lien under the
17 Mechanic's Lien Act; and
18 (10) Any other mortgagee or claimant, provided that
19 no person shall be joined as a party solely by reason of
20 the acquisition of any lien of taxes or any tax sale
21 certificate of purchase issued pursuant to the provisions
22 of the Property Tax Code.
23 (c) Unknown Owners. Any unknown owner may be made a
24 party in accordance with Section 2-413 of the Code of Civil
25 Procedure.
26 (d) Right to Become Party. Any person who has or claims
27 an interest in real estate which is the subject of a
28 foreclosure or an interest in any debt secured by the
29 mortgage shall have an unconditional right to appear and
30 become a party in such foreclosure in accordance with
31 subsection (e) of Section 15-1501, provided, that neither
32 such appearance by a lessee whose interest in the real estate
33 is subordinate to the interest being foreclosed, nor the act
34 of making such lessee a party, shall result in the
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1 termination of the lessee's lease unless the termination of
2 the lease or lessee's interest in the mortgaged real estate
3 is specifically ordered by the court in the judgment of
4 foreclosure.
5 (e) Time of Intervention.
6 (1) Of Right. A person not a party, other than a
7 nonrecord claimant given notice in accordance with
8 paragraph (2) of subsection (c) of Section 15-1502, who
9 has or claims an interest in the mortgaged real estate
10 may appear and become a party at any time prior to the
11 entry of judgment of foreclosure. A nonrecord claimant
12 given such notice may appear and become a party at any
13 time prior to the earlier of (i) the entry of a judgment
14 of foreclosure or (ii) 30 days after such notice is
15 given.
16 (2) In Court's Discretion. After the right to
17 intervene expires and prior to the sale in accordance
18 with the judgment, the court may permit a person who has
19 or claims an interest in the mortgaged real estate to
20 appear and become a party on such terms as the court may
21 deem just.
22 (3) Later Right. After the sale of the mortgaged
23 real estate in accordance with a judgment of foreclosure
24 and prior to the entry of an order confirming the sale, a
25 person who has or claims an interest in the mortgaged
26 real estate, may appear and become a party, on such terms
27 as the court may deem just, for the sole purpose of
28 claiming an interest in the proceeds of sale. Any such
29 party shall be deemed a party from the commencement of
30 the foreclosure, and the interest of such party in the
31 real estate shall be subject to all orders and judgments
32 entered in the foreclosure.
33 (4) Termination of Interest. Except as provided in
34 Section 15-1501(d), the interest of any person who is
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1 allowed to appear and become a party shall be terminated,
2 and the interest of such party in the real estate shall
3 attach to the proceeds of sale.
4 (f) Separate Actions. Any mortgagee or claimant, other
5 than the mortgagee who commences a foreclosure, whose
6 interest in the mortgaged real estate is recorded prior to
7 the filing of a notice of foreclosure in accordance with this
8 Article but who is not made a party to such foreclosure,
9 shall not be barred from filing a separate foreclosure (i) as
10 an intervening defendant or counterclaimant in accordance
11 with subsections (d) and (e) of Section 15-1501 if a judgment
12 of foreclosure has not been entered in the original
13 foreclosure or (ii) in a new foreclosure subsequent to the
14 entry of a judgment of foreclosure in the original
15 foreclosure.
16 (g) Service on the State of Illinois. When making the
17 State of Illinois a party to a foreclosure, summons may be
18 served by sending, by registered or certified mail, a copy of
19 the summons and the complaint to the Attorney General. The
20 complaint shall set forth with particularity the nature of
21 the interest or lien of the State of Illinois. If such
22 interest or lien appears in a recorded instrument, the
23 complaint must state the document number of the instrument
24 and the office wherein it was recorded.
25 (Source: P.A. 88-265.)