Bill Amendment: IL HB2723 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: CIV PRO-NAME CHANGE; FELONS
Status: 2018-08-23 - Public Act . . . . . . . . . 100-1038 [HB2723 Detail]
Download: Illinois-2017-HB2723-Senate_Amendment_003.html
Bill Title: CIV PRO-NAME CHANGE; FELONS
Status: 2018-08-23 - Public Act . . . . . . . . . 100-1038 [HB2723 Detail]
Download: Illinois-2017-HB2723-Senate_Amendment_003.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO HOUSE BILL 2723
| ||||||
2 | AMENDMENT NO. ______. Amend House Bill 2723, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
| ||||||
5 | "Section 1. Short title. This Act may be cited as the | ||||||
6 | Timeshare Lien and Security Interest Act.
| ||||||
7 | Section 3. Definitions. As used in this Act: | ||||||
8 | "Accommodation" means any apartment, condominium or | ||||||
9 | cooperative unit,
cabin, lodge, hotel or motel room, or other | ||||||
10 | private or commercial structure
containing
toilet facilities | ||||||
11 | therein that is designed and available, pursuant to
applicable | ||||||
12 | law, for use
and occupancy as a residence by one or more | ||||||
13 | individuals, or any unit or berth
on a
commercial cruise line | ||||||
14 | ship, which is included in the offering of a timeshare
plan.
| ||||||
15 | "Assessment" means the share of funds required for the | ||||||
16 | payment of common
expenses which is assessed from time to time |
| |||||||
| |||||||
1 | against each purchaser by the
managing
entity.
| ||||||
2 | "Developer" means and includes any person or entity, other | ||||||
3 | than a sales
agent,
acquisition agent, or resale agent, who | ||||||
4 | creates a timeshare plan or is in the
business of
selling | ||||||
5 | timeshare interests, or employs agents to do the same, or any | ||||||
6 | person or
entity who
succeeds to the interest of a developer by | ||||||
7 | sale, lease, assignment, mortgage,
or other
transfer, but the | ||||||
8 | term includes only those persons who offer timeshare
interests | ||||||
9 | for
disposition in the ordinary course of business.
| ||||||
10 | "Managing entity" means the person who undertakes the | ||||||
11 | duties,
responsibilities,
and obligations of the management of | ||||||
12 | a timeshare plan.
| ||||||
13 | "Managing entity lien" means a lien created pursuant to | ||||||
14 | Section 5.
| ||||||
15 | "Purchaser" means any person, other than a developer, who | ||||||
16 | by means of a
voluntary transfer acquires a legal or equitable | ||||||
17 | interest in a timeshare plan
other than as
security for an | ||||||
18 | obligation.
| ||||||
19 | "Timeshare instrument" means one or more documents, by | ||||||
20 | whatever name
denominated, creating or governing the operation | ||||||
21 | of a timeshare plan.
| ||||||
22 | "Timeshare interest" means and includes either:
| ||||||
23 | (1) a "timeshare estate", which is the right to occupy | ||||||
24 | a timeshare
property,
coupled with a freehold estate or an | ||||||
25 | estate for years with a future interest in
a
timeshare | ||||||
26 | property or a specified portion thereof; or
|
| |||||||
| |||||||
1 | (2) a "timeshare use", which is the right to occupy a | ||||||
2 | timeshare property,
which right is neither coupled with a | ||||||
3 | freehold interest, nor coupled with an
estate
for years | ||||||
4 | with a future interest, in a timeshare property.
| ||||||
5 | "Timeshare plan" means any arrangement, plan, scheme, or | ||||||
6 | similar device,
other
than an exchange program, whether by | ||||||
7 | membership agreement, sale, lease, deed,
license,
or | ||||||
8 | right-to-use agreement or by any other means, whereby a | ||||||
9 | purchaser, in
exchange for
consideration, receives ownership | ||||||
10 | rights in or the right to use accommodations
for a
period of | ||||||
11 | time less than a full year during any given year, but not | ||||||
12 | necessarily
for
consecutive years. A timeshare plan may be:
| ||||||
13 | (1) a "single-site timeshare plan", which is the right | ||||||
14 | to use
accommodations at a single timeshare property; or
| ||||||
15 | (2) a "multi-site timeshare plan", which includes:
| ||||||
16 | (A) a "specific timeshare interest", which is the | ||||||
17 | right to use
accommodations at a specific timeshare | ||||||
18 | property, together with use rights
in accommodations | ||||||
19 | at one or more other component sites created by or
| ||||||
20 | acquired through the timeshare plan's reservation | ||||||
21 | system; or
| ||||||
22 | (B) a "non-specific timeshare interest", which is | ||||||
23 | the right to use
accommodations at more than one | ||||||
24 | component site created by or acquired
through the | ||||||
25 | timeshare plan's reservation system, but including no | ||||||
26 | specific
right to use any particular accommodations.
|
| |||||||
| |||||||
1 | "Timeshare property" means one or more accommodations | ||||||
2 | subject to the same
timeshare instrument, together with any | ||||||
3 | other property or rights to property
appurtenant
to those | ||||||
4 | accommodations.
| ||||||
5 | Section 5. Managing entity lien created. | ||||||
6 | (a) A managing entity has a lien on a timeshare interest | ||||||
7 | for any of the following respectively levied or imposed against | ||||||
8 | a timeshare interest: | ||||||
9 | (1) assessments, which, unless the timeshare | ||||||
10 | instrument provides otherwise, include fees, charges, late | ||||||
11 | charges, fines, collection costs, and interest charged in | ||||||
12 | accordance with the timeshare instrument; | ||||||
13 | (2) reasonable collection and attorney's fees and | ||||||
14 | costs the managing entity incurs to collect assessments; | ||||||
15 | and | ||||||
16 | (3) taxes, interest, penalties, late payment fees, or | ||||||
17 | fines in accordance with applicable law or the timeshare | ||||||
18 | instrument. | ||||||
19 | (b) Managing entity liens pursuant to this Section are | ||||||
20 | created and attached when the charges described in subsection | ||||||
21 | (a) become due. If such amounts are payable in installments, | ||||||
22 | the full amount of such charges is a managing entity lien from | ||||||
23 | the time that the first installment thereof becomes due. | ||||||
24 | (c) Managing entity liens pursuant to this Section are | ||||||
25 | perfected on the date that the managing entity: |
| |||||||
| |||||||
1 | (1) In the case of a timeshare estate, records a notice | ||||||
2 | of lien against the timeshare estate in the office of the | ||||||
3 | recorder in the county where the timeshare estate is | ||||||
4 | located, which notice of lien must identify each of the | ||||||
5 | following: | ||||||
6 | (A) the name of the timeshare estate owner; | ||||||
7 | (B) the name and address of the managing entity; | ||||||
8 | (C) the description of the timeshare estate in the | ||||||
9 | same manner required for recording a mortgage against a | ||||||
10 | timeshare estate; and | ||||||
11 | (D) the amount of the debt secured by the managing | ||||||
12 | entity lien. | ||||||
13 | (2) In the case of a timeshare use, files a notice of | ||||||
14 | lien against the timeshare use in the filing office of the | ||||||
15 | Illinois Secretary of State pursuant to Article 9 of the | ||||||
16 | Uniform Commercial Code, which notice of lien, in addition | ||||||
17 | to any other filing requirements imposed by Article 9 of | ||||||
18 | the Uniform Commercial Code, must identify each of the | ||||||
19 | following: | ||||||
20 | (A) the name of the timeshare use owner as the | ||||||
21 | debtor; | ||||||
22 | (B) the name of the managing entity as the secured | ||||||
23 | party; | ||||||
24 | (C) the address of the managing entity; | ||||||
25 | (D) the timeshare use as the collateral; and | ||||||
26 | (E) the amount of the debt secured by the managing |
| |||||||
| |||||||
1 | entity lien. | ||||||
2 | (d) The managing entity must send a copy of the recorded or | ||||||
3 | filed notice of lien on the timeshare interest, as the case may | ||||||
4 | be, to the last known address of the timeshare interest owner. | ||||||
5 | (e) A managing entity lien against a timeshare estate, at | ||||||
6 | the managing entity's option, may be foreclosed: | ||||||
7 | (1) as provided in Section 10; or | ||||||
8 | (2) in the same manner as a mortgage under the Illinois | ||||||
9 | Mortgage Foreclosure Law. | ||||||
10 | (f) A managing entity lien against a timeshare use, at the | ||||||
11 | managing entity's option, may: | ||||||
12 | (1) be foreclosed as provided in Section 15; or | ||||||
13 | (2) be enforced in the same manner as a security | ||||||
14 | interest pursuant to Article 9 of the Uniform Commercial | ||||||
15 | Code.
| ||||||
16 | Section 10. Nonjudicial foreclosure against timeshare | ||||||
17 | estates. | ||||||
18 | (a) Notwithstanding anything in the Illinois Mortgage | ||||||
19 | Foreclosure Law or other applicable law to the contrary: | ||||||
20 | (1) the holder of a mortgage against a timeshare estate | ||||||
21 | may foreclose or otherwise enforce a security interest | ||||||
22 | pursuant to this Section; and | ||||||
23 | (2) the holder of a managing entity lien against a | ||||||
24 | timeshare estate may foreclose the managing entity lien | ||||||
25 | pursuant to this Section. |
| |||||||
| |||||||
1 | (b) Upon default, and after all applicable cure periods | ||||||
2 | identified in the mortgage (if the default is under a mortgage) | ||||||
3 | or the timeshare instrument (if the default is under a managing | ||||||
4 | entity lien) have expired, the holder of the mortgage or | ||||||
5 | managing entity lien must: | ||||||
6 | (1) Provide written notice of the default to the | ||||||
7 | timeshare estate owner at the last known address of the | ||||||
8 | timeshare estate owner by: | ||||||
9 | (A) certified mail, return receipt requested; or | ||||||
10 | (B) first class mail. | ||||||
11 | (2) Provide the timeshare estate owner an additional | ||||||
12 | opportunity to cure for a period of 30 days following the | ||||||
13 | later date of the mailing of the notices sent pursuant to | ||||||
14 | paragraph (1) of this subsection. | ||||||
15 | (c) If the timeshare estate owner does not cure the default | ||||||
16 | before the expiration of the additional cure period granted | ||||||
17 | pursuant to paragraph (2) of subsection (b), the holder of the | ||||||
18 | mortgage or managing entity lien may foreclose the mortgage or | ||||||
19 | managing entity lien by conducting a public auction that | ||||||
20 | complies with the following requirements: | ||||||
21 | (1) The holder of the mortgage or managing entity lien | ||||||
22 | must provide notice of the public auction as follows: | ||||||
23 | (A) By publishing notice of the public auction in | ||||||
24 | at least each of 3 successive weeks in a newspaper, | ||||||
25 | whether printed or electronic, of general circulation | ||||||
26 | in the county where the timeshare estate is located. |
| |||||||
| |||||||
1 | The first notice must be published no more than 30 days | ||||||
2 | before the date of the public auction, which 30-day | ||||||
3 | period shall be calculated by excluding the date of | ||||||
4 | publication of the first notice and the date of the | ||||||
5 | public auction. | ||||||
6 | (B) By sending written notice identifying the | ||||||
7 | time, date, and place of the public auction to the last | ||||||
8 | known address of the owner of record of the timeshare | ||||||
9 | estate at least 30 days before the date of the public | ||||||
10 | auction by: (i) certified mail, return receipt | ||||||
11 | requested; or (ii) first class mail. | ||||||
12 | (C) By sending notice by certified mail, return | ||||||
13 | receipt requested, or first class mail, at least 30 | ||||||
14 | days before the date of the public auction, identifying | ||||||
15 | the time, date, and place of the public auction to all | ||||||
16 | persons known to have a lien against the timeshare | ||||||
17 | estate. | ||||||
18 | (2) The notices given pursuant to paragraph (1) of this | ||||||
19 | subsection must also contain: | ||||||
20 | (A) the name of the timeshare estate owner; | ||||||
21 | (B) a general description of the timeshare estate; | ||||||
22 | and | ||||||
23 | (C) the terms of the public auction. | ||||||
24 | (3) If more than one timeshare estate is to be included | ||||||
25 | in the public auction, all such timeshare estates may be | ||||||
26 | combined into one notice of public auction. |
| |||||||
| |||||||
1 | (4) The public notice required by subparagraph (A) of | ||||||
2 | paragraph (1) of this subsection for foreclosing a mortgage | ||||||
3 | against a timeshare estate must be printed in the following | ||||||
4 | or a substantially similar form:
| ||||||
5 | "NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION 10 | ||||||
6 | OF THE TIMESHARE LIEN AND SECURITY INTEREST ACT
| ||||||
7 | By virtue of Section 10 of the Timeshare Lien and Security | ||||||
8 | Interest Act and in execution of a certain mortgage (or | ||||||
9 | mortgages, if more than one) on the timeshare estate (or | ||||||
10 | estates, if more than one) given by the owner of the timeshare | ||||||
11 | estate (or owners, if more than one) set forth below for breach | ||||||
12 | of the conditions of said mortgage (or mortgages, if more than | ||||||
13 | one) and for the purpose of foreclosing, the same will be sold | ||||||
14 | at public auction starting at ........... on ............ 20.. | ||||||
15 | at ........, Illinois, being all and singular the premises | ||||||
16 | described in said mortgage (or mortgages, if more than one). | ||||||
17 | (For each mortgage, list the name and address of the timeshare | ||||||
18 | estate owner, a general description of the timeshare estate, | ||||||
19 | and the book and page number of the mortgage.)
| ||||||
20 | TERMS OF SALE: (State the deposit amount to be paid by the | ||||||
21 | purchaser at the time and place of the sale and the times for | ||||||
22 | payment of the balance or the whole, as the case may be. The | ||||||
23 | timeshare estates, if more than one, must be sold in individual |
| |||||||
| |||||||
1 | lots unless there are no individual bidders, in which case, | ||||||
2 | they may be sold as a group.)
| ||||||
3 | Other terms may be announced at the public auction.
| ||||||
4 | Signed .................................
| ||||||
5 | Holder of mortgage or authorized agent.".
| ||||||
6 | (5) The public notice required by subparagraph (A) of | ||||||
7 | paragraph (1) of this subsection for foreclosing a managing | ||||||
8 | entity lien against a timeshare estate must be printed in | ||||||
9 | the following or a substantially similar form:
| ||||||
10 | "NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION 10 | ||||||
11 | OF THE TIMESHARE LIEN AND SECURITY INTEREST ACT
| ||||||
12 | By virtue of the timeshare instrument of the | ||||||
13 | ................... (name and address of timeshare property) | ||||||
14 | and Section 5 of the Timeshare Lien and Security Interest Act | ||||||
15 | establishing a managing entity lien for failure to pay | ||||||
16 | assessments and other costs on the timeshare estate (or | ||||||
17 | estates, if more than one) held by the owner of the timeshare | ||||||
18 | estate (or owners, if more than one) listed below, the | ||||||
19 | timeshare estate (or estates, if more than one) and for the | ||||||
20 | purpose of foreclosing, the same will be sold at public auction |
| |||||||
| |||||||
1 | starting at ......... on ........ 20.. at ............., | ||||||
2 | Illinois. (For each timeshare estate, list the name and address | ||||||
3 | of the timeshare estate owner, a general description of the | ||||||
4 | timeshare estate, and the book and page number of the deed.)
| ||||||
5 | TERMS OF SALE: (State the deposit amount to be paid by the | ||||||
6 | purchaser at the time and place of the sale and the times for | ||||||
7 | payment of the balance or the whole, as the case may be. The | ||||||
8 | timeshare estates, if more than one, must be sold in individual | ||||||
9 | lots unless there are no individual bidders, in which case, | ||||||
10 | they may be sold as a group.)
| ||||||
11 | Other terms may be announced at the public auction.
| ||||||
12 | Signed ................................
| ||||||
13 | Managing entity lienholder or authorized agent.".
| ||||||
14 | (6) Publishing and sending notices in compliance with | ||||||
15 | this subsection constitutes sufficient public notice of | ||||||
16 | the public auction. | ||||||
17 | (d) Public auctions pursuant to this Section must be | ||||||
18 | conducted as follows: | ||||||
19 | (1) The public auction must take place within the | ||||||
20 | county where the timeshare estate is located. | ||||||
21 | (2) The public auction must be open to the general |
| |||||||
| |||||||
1 | public and conducted by an auctioneer licensed pursuant to | ||||||
2 | the Auction License Act. | ||||||
3 | (3) The auctioneer, in his or her discretion, may waive | ||||||
4 | the reading of the names of the timeshare estate owners, if | ||||||
5 | more than one, the description of the timeshare estates, if | ||||||
6 | more than one, and the recording information of the | ||||||
7 | applicable mortgages or managing entity liens (as the case | ||||||
8 | may be), if more than one. | ||||||
9 | (4) All rights of redemption of the timeshare estate | ||||||
10 | owner are extinguished upon sale of a timeshare estate at | ||||||
11 | the public auction. | ||||||
12 | (5) The holder of the mortgage or managing entity lien, | ||||||
13 | the developer, the managing entity, and the timeshare | ||||||
14 | estate owner are not precluded from bidding at the public | ||||||
15 | auction. | ||||||
16 | (6) The successful purchaser at the public auction is | ||||||
17 | not required to complete the purchase of the timeshare | ||||||
18 | estate if the timeshare estate, at the time the auctioneer | ||||||
19 | accepts the successful bid, is subject to liens or other | ||||||
20 | encumbrances, other than those identified in the notice of | ||||||
21 | public auction and those identified at the auction before | ||||||
22 | the auctioneer opens bidding on the applicable timeshare | ||||||
23 | estate. | ||||||
24 | (7) The purchaser at the public auction takes title to | ||||||
25 | the timeshare estate free and clear of any outstanding | ||||||
26 | assessments owed by the prior timeshare estate owner to the |
| |||||||
| |||||||
1 | managing entity. | ||||||
2 | (e) Upon the sale of a timeshare estate pursuant to this | ||||||
3 | Section, the holder of the mortgage or managing entity lien | ||||||
4 | must provide the purchaser with: | ||||||
5 | (1) a foreclosure deed or other appropriate instrument | ||||||
6 | transferring the mortgage holder's or managing entity's | ||||||
7 | interest in the timeshare estate; and | ||||||
8 | (2) an affidavit affirming that all requirements of the | ||||||
9 | foreclosure pursuant to this Section have been satisfied. | ||||||
10 | (f) The timeshare estate is considered sold and the deed or | ||||||
11 | other instrument transferring the timeshare estate must | ||||||
12 | transfer the timeshare estate, subject to municipal or other | ||||||
13 | taxes and any liens or encumbrances recorded before the | ||||||
14 | recording of the mortgage or the managing entity lien | ||||||
15 | foreclosed pursuant to this Section (as the case may be), but | ||||||
16 | not including such managing entity lien. | ||||||
17 | (g) The purchaser of a timeshare estate at a public auction | ||||||
18 | pursuant to this Section must record the foreclosure deed or | ||||||
19 | other instrument with the appropriate recorder of deeds within | ||||||
20 | 30 days after the date the foreclosing mortgage holder or | ||||||
21 | managing entity (as the case may be) delivers the foreclosure | ||||||
22 | deed or other instrument to the purchaser. | ||||||
23 | (h) If the holder of a mortgage or managing entity lien | ||||||
24 | conducts a nonjudicial foreclosure pursuant to this Section, | ||||||
25 | the holder of the mortgage or managing entity lien forfeits its | ||||||
26 | right to pursue a claim for any deficiency in the payment of |
| |||||||
| |||||||
1 | the obligations of the timeshare estate owner resulting from | ||||||
2 | the application of the proceeds of the sale to such | ||||||
3 | obligations. | ||||||
4 | (i) For purposes of this Section, obligations to pay | ||||||
5 | assessments secured by a lien established pursuant to a | ||||||
6 | timeshare instrument before the effective date of this Act are | ||||||
7 | considered managing entity liens. | ||||||
8 | (j) This Section applies to the foreclosure of mortgages | ||||||
9 | and liens considered to be managing entity liens that arose | ||||||
10 | before or after the effective date of this Act.
| ||||||
11 | Section 15. Foreclosure of lien or security interest on a | ||||||
12 | timeshare use. | ||||||
13 | (a) Notwithstanding anything in the Illinois Mortgage | ||||||
14 | Foreclosure Law or the Uniform Commercial Code to the contrary, | ||||||
15 | the holder of a managing entity lien created by Section 5 on a | ||||||
16 | timeshare use, in the case of the failure to pay assessments | ||||||
17 | when due, or a security interest against a timeshare use, in | ||||||
18 | the case of a breach of the security agreement, may do either | ||||||
19 | of the following: | ||||||
20 | (1) enforce the security interest pursuant to Part 6 of | ||||||
21 | Article 9 of the Uniform Commercial Code, including | ||||||
22 | (without limitation) accepting the timeshare use in full or | ||||||
23 | partial satisfaction of the timeshare use owner's | ||||||
24 | obligation pursuant to Section 9-620 of the Uniform | ||||||
25 | Commercial Code; or |
| |||||||
| |||||||
1 | (2) nonjudicially foreclose in the same manner as | ||||||
2 | authorized by Section 10 for holders of a mortgage or | ||||||
3 | managing entity lien against a timeshare estate. | ||||||
4 | (b) All rights of redemption of a timeshare use owner are | ||||||
5 | extinguished upon sale of a timeshare use as authorized by | ||||||
6 | subsection (a) of Section 10. | ||||||
7 | (c) The holder of the security interest or managing entity | ||||||
8 | lien, the developer, the managing entity, and the timeshare use | ||||||
9 | owner are not precluded from bidding at the sale of the | ||||||
10 | timeshare use pursuant to this Section and may enter into | ||||||
11 | agreements for the purchase of one or more timeshare uses | ||||||
12 | following the completion of the sale proceedings. | ||||||
13 | (d) The purchaser at the public auction takes title to the | ||||||
14 | timeshare use free and clear of any outstanding assessments | ||||||
15 | owed by the prior timeshare use owner to the managing entity.".
|