Bill Text: IL HB1155 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Vehicle Code. Adds provision for a vehicle title application for an abandoned vehicle acquired under the Labor and Storage Lien (Small Amount) Act by filing with the Secretary of State a copy of the notice and affidavit of abandonment sent to the owner. Adds, in the provisions for the transfer of title by operation of law, a provision that allows for the transfer of title for an abandoned vehicle. Amends the Labor and Storage Lien (Small Amount) Act. Provides that if an automotive collision and body repair facility or an automotive repair facility has a lien for storage or repairs against a vehicle that has been in its possession for 30 days or more and the vehicle is an abandoned junk vehicle or a hazardous dilapidated motor vehicle the facility may sell the vehicle after mailing, with return receipt requested, a Notice and Affidavit of Abandonment to the reported owner, any assignee, other lienor, or other person with a duly recorded security interest in the vehicle. Provides that the notice shall state the amount of the storage lien and state that if the vehicle is not redeemed by payment of the lien amount within 14 days after the notice is sent the vehicle will be sold to a licensed scrap processor to satisfy this and any other liens. Upon the sale of the vehicle to a scrap processor and after satisfying the lien under the Act, any excess proceeds shall be paid to any others with an interest in the vehicle with the balance to be held by the lienor for 6 months. If the owner fails to claim the proceeds within 6 months, the lienor shall deposit the excess proceeds with the county treasurer for the county in which the vehicle was stored for deposit in the county's general revenue fund, subject to the right of the owner to claim the excess proceeds within 3 years after the date of the deposit with the treasurer.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2013-01-08 - Session Sine Die [HB1155 Detail]

Download: Illinois-2011-HB1155-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB1155 Introduced , by Rep. Thomas Holbrook SYNOPSIS AS INTRODUCED:
625 ILCS 5/3-104 from Ch. 95 1/2, par. 3-104
625 ILCS 5/3-114 from Ch. 95 1/2, par. 3-114
625 ILCS 5/3-117.1 from Ch. 95 1/2, par. 3-117.1
625 ILCS 5/4-202 from Ch. 95 1/2, par. 4-202
770 ILCS 50/4.5 new
Amends the Illinois Vehicle Code. Adds provision for a vehicle title application for an abandoned vehicle acquired under the Labor and Storage Lien (Small Amount) Act by filing with the Secretary of State a copy of the notice and affidavit of abandonment sent to the owner. Adds, in the provisions for the transfer of title by operation of law, a provision that allows for the transfer of title for an abandoned vehicle. Amends the Labor and Storage Lien (Small Amount) Act. Provides that if an automotive collision and body repair facility or an automotive repair facility has a lien for storage or repairs against a vehicle that has been in its possession for 30 days or more and the vehicle is an abandoned junk vehicle or a hazardous dilapidated motor vehicle the facility may sell the vehicle after mailing, with return receipt requested, a Notice and Affidavit of Abandonment to the reported owner, any assignee, other lienor, or other person with a duly recorded security interest in the vehicle. Provides that the notice shall state the amount of the storage lien and state that if the vehicle is not redeemed by payment of the lien amount within 14 days after the notice is sent the vehicle will be sold to a licensed scrap processor to satisfy this and any other liens. Upon the sale of the vehicle to a scrap processor and after satisfying the lien under the Act, any excess proceeds shall be paid to any others with an interest in the vehicle with the balance to be held by the lienor for 6 months. If the owner fails to claim the proceeds within 6 months, the lienor shall deposit the excess proceeds with the county treasurer for the county in which the vehicle was stored for deposit in the county's general revenue fund, subject to the right of the owner to claim the excess proceeds within 3 years after the date of the deposit with the treasurer.
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A BILL FOR
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AN ACT concerning abandoned vehicles.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Vehicle Code is amended by changing
Sections 3-104, 3-114, 3-117.1, and 4-202 as follows:
(625 ILCS 5/3-104) (from Ch. 95 1/2, par. 3-104)
Sec. 3-104. Application for certificate of title.
(a) The application for a certificate of title for a
vehicle in this State must be made by the owner to the
Secretary of State on the form prescribed and must contain:
1. The name, Illinois residence and mail address of the
owner;
2. A description of the vehicle including, so far as
the following data exists: Its make, year-model,
identifying number, type of body, whether new or used, as
to house trailers as defined in Section 1-128 of this Code,
the square footage of the house trailer based upon the
outside dimensions of the house trailer excluding the
length of the tongue and hitch, and, as to vehicles of the
second division, whether for-hire, not-for-hire, or both
for-hire and not-for-hire;
3. The date of purchase by applicant and, if
applicable, the name and address of the person from whom

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the vehicle was acquired and the names and addresses of any
lienholders in the order of their priority and signatures
of owners;
4. The current odometer reading at the time of transfer
and that the stated odometer reading is one of the
following: actual mileage, not the actual mileage or
mileage is in excess of its mechanical limits; and
5. Any further information the Secretary of State
reasonably requires to identify the vehicle and to enable
him to determine whether the owner is entitled to a
certificate of title and the existence or nonexistence of
security interests in the vehicle.
(a-5) The Secretary of State shall designate on the
prescribed application form a space where the owner of a
vehicle may designate a beneficiary, to whom ownership of the
vehicle shall pass in the event of the owner's death.
(b) If the application refers to a vehicle purchased from a
dealer, it must also be signed by the dealer as well as the
owner, and the dealer must promptly mail or deliver the
application and required documents to the Secretary of State.
(c) If the application refers to a vehicle last previously
registered in another State or country, the application must
contain or be accompanied by:
1. Any certified document of ownership so recognized
and issued by the other State or country and acceptable to
the Secretary of State, and

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2. Any other information and documents the Secretary of
State reasonably requires to establish the ownership of the
vehicle and the existence or nonexistence of security
interests in it.
(d) If the application refers to a new vehicle it must be
accompanied by the Manufacturer's Statement of Origin, or other
documents as required and acceptable by the Secretary of State,
with such assignments as may be necessary to show title in the
applicant.
(e) If an application refers to a vehicle rebuilt from a
vehicle previously salvaged, that application shall comply
with the provisions set forth in Sections 3-302 through 3-304
of this Code.
(f) An application for a certificate of title for any
vehicle, whether purchased in Illinois or outside Illinois, and
even if previously registered in another State, must be
accompanied by either an exemption determination from the
Department of Revenue showing that no tax imposed pursuant to
the Use Tax Act or the vehicle use tax imposed by Section
3-1001 of the Illinois Vehicle Code is owed by anyone with
respect to that vehicle, or a receipt from the Department of
Revenue showing that any tax so imposed has been paid. An
application for a certificate of title for any vehicle
purchased outside Illinois, even if previously registered in
another state, must be accompanied by either an exemption
determination from the Department of Revenue showing that no

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tax imposed pursuant to the Municipal Use Tax Act or the County
Use Tax Act is owed by anyone with respect to that vehicle, or
a receipt from the Department of Revenue showing that any tax
so imposed has been paid. In the absence of such a receipt for
payment or determination of exemption from the Department, no
certificate of title shall be issued to the applicant.
If the proof of payment of the tax or of nonliability
therefor is, after the issuance of the certificate of title and
display certificate of title, found to be invalid, the
Secretary of State shall revoke the certificate and require
that the certificate of title and, when applicable, the display
certificate of title be returned to him.
(g) If the application refers to a vehicle not manufactured
in accordance with federal safety and emission standards, the
application must be accompanied by all documents required by
federal governmental agencies to meet their standards before a
vehicle is allowed to be issued title and registration.
(h) If the application refers to a vehicle sold at public
sale by a sheriff, it must be accompanied by the required fee
and a bill of sale issued and signed by a sheriff. The bill of
sale must identify the new owner's name and address, the year
model, make and vehicle identification number of the vehicle,
court order document number authorizing such sale, if
applicable, and the name and address of any lienholders in
order of priority, if applicable.
(i) If the application refers to a vehicle for which a

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court of law determined the ownership, it must be accompanied
with a certified copy of such court order and the required fee.
The court order must indicate the new owner's name and address,
the complete description of the vehicle, if known, the name and
address of the lienholder, if any, and must be signed and dated
by the judge issuing such order.
(j) If the application refers to a vehicle sold at public
auction pursuant to the Labor and Storage Lien (Small Amount)
Act, it must be accompanied by an affidavit or affirmation
furnished by the Secretary of State along with the documents
described in the affidavit or affirmation and the required fee.
(k) The Secretary may provide an expedited process for the
issuance of vehicle titles. Expedited title applications must
be delivered to the Secretary of State's Vehicle Services
Department in Springfield by express mail service or hand
delivery. Applications must be complete, including necessary
forms, fees, and taxes. Applications received before noon on a
business day will be processed and shipped that same day.
Applications received after noon on a business day will be
processed and shipped the next business day. The Secretary
shall charge an additional fee of $30 for this service, and
that fee shall cover the cost of return shipping via an express
mail service. All fees collected by the Secretary of State for
expedited services shall be deposited into the Motor Vehicle
License Plate Fund. In the event the Vehicle Services
Department determines that the volume of expedited title

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requests received on a given day exceeds the ability of the
Vehicle Services Department to process those requests in an
expedited manner, the Vehicle Services Department may decline
to provide expedited services, and the additional fee for the
expedited service shall be refunded to the applicant.
(l) If the application refers to a homemade trailer, (i) it
must be accompanied by the appropriate documentation regarding
the source of materials used in the construction of the
trailer, as required by the Secretary of State, (ii) the
trailer must be inspected by a Secretary of State investigator,
as described in Section 2-115 of this Code, prior to the
issuance of the title, and (iii) upon approval of the Secretary
of State, the trailer must have a vehicle identification
number, as provided by the Secretary of State, stamped or
riveted to the frame.
(m) If the application refers to an abandoned vehicle
acquired pursuant to Section 4.5 of the Labor and Storage Lien
(Small Amount) Act, it must be accompanied by a copy of the
Notice and Affidavit of Abandonment that certifies that the
applicant has complied with the requirements of the Labor and
Storage Lien (Small Amount) Act and other documents required by
and acceptable to the Secretary of State.
(Source: P.A. 95-784, eff. 1-1-09; 96-519, eff. 1-1-10; 96-554,
eff. 1-1-10; 96-1000, eff. 7-2-10.)
(625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)

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Sec. 3-114. Transfer by operation of law.
(a) If the interest of an owner in a vehicle passes to
another other than by voluntary transfer, the transferee shall,
except as provided in paragraph (b), promptly mail or deliver
within 20 days to the Secretary of State the last certificate
of title, if available, proof of the transfer, and his
application for a new certificate in the form the Secretary of
State prescribes. It shall be unlawful for any person having
possession of a certificate of title for a motor vehicle,
semi-trailer, or house car by reason of his having a lien or
encumbrance on such vehicle, to fail or refuse to deliver such
certificate to the owner, upon the satisfaction or discharge of
the lien or encumbrance, indicated upon such certificate of
title.
(b) If the interest of an owner in a vehicle passes to
another under the provisions of the Small Estates provisions of
the Probate Act of 1975 the transferee shall promptly mail or
deliver to the Secretary of State, within 120 days, the last
certificate of title, if available, the documentation required
under the provisions of the Probate Act of 1975, and an
application for certificate of title. The Small Estate
Affidavit form shall be furnished by the Secretary of State.
The transfer may be to the transferee or to the nominee of the
transferee.
(c) If the interest of an owner in a vehicle passes to
another under other provisions of the Probate Act of 1975, as

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amended, and the transfer is made by a representative or
guardian, such transferee shall promptly mail or deliver to the
Secretary of State, the last certificate of title, if
available, and a certified copy of the letters of office or
guardianship, and an application for certificate of title. Such
application shall be made before the estate is closed. The
transfer may be to the transferee or to the nominee of the
transferee.
(d) If the interest of an owner in joint tenancy passes to
the other joint tenant with survivorship rights as provided by
law, the transferee shall promptly mail or deliver to the
Secretary of State, the last certificate of title, if
available, proof of death of the one joint tenant and
survivorship of the surviving joint tenant, and an application
for certificate of title. Such application shall be made within
120 days after the death of the joint tenant. The transfer may
be to the transferee or to the nominee of the transferee.
(e) The Secretary of State shall transfer a decedent's
vehicle title to any legatee, representative or heir of the
decedent who submits to the Secretary a death certificate and
an affidavit by an attorney at law on the letterhead stationery
of the attorney at law stating the facts of the transfer.
(f) Repossession with assignment of title. In all cases
wherein a lienholder has repossessed a vehicle by other than
judicial process and holds it for resale under a security
agreement, and the owner of record has executed an assignment

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of the existing certificate of title after default, the
lienholder may proceed to sell or otherwise dispose of the
vehicle as authorized under the Uniform Commercial Code. Upon
selling the vehicle to another person, the lienholder need not
send the certificate of title to the Secretary of State, but
shall promptly and within 20 days mail or deliver to the
purchaser as transferee the existing certificate of title for
the repossessed vehicle, reflecting the release of the
lienholder's security interest in the vehicle. The application
for a certificate of title made by the purchaser shall comply
with subsection (a) of Section 3-104 and be accompanied by the
existing certificate of title for the repossessed vehicle. The
lienholder shall execute the assignment and warranty of title
showing the name and address of the purchaser in the spaces
provided therefor on the certificate of title or as the
Secretary of State prescribes. The lienholder shall complete
the assignment of title in the certificate of title to reflect
the transfer of the vehicle to the lienholder and also a
reassignment to reflect the transfer from the lienholder to the
purchaser. For this purpose, the lienholder is specifically
authorized to complete and execute the space reserved in the
certificate of title for a dealer reassignment,
notwithstanding that the lienholder is not a licensed dealer.
Nothing herein shall be construed to mean that the lienholder
is taking title to the repossessed vehicle for purposes of
liability for retailer occupation, vehicle use, or other tax

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with respect to the proceeds from the repossession sale.
Delivery of the existing certificate of title to the purchaser
shall be deemed disclosure to the purchaser of the owner of the
vehicle.
(f-5) Repossession without assignment of title. Subject to
subsection (f-30), in all cases wherein a lienholder has
repossessed a vehicle by other than judicial process and holds
it for resale under a security agreement, and the owner of
record has not executed an assignment of the existing
certificate of title, the lienholder shall comply with the
following provisions:
(1) Prior to sale, the lienholder shall deliver or mail
to the owner at the owner's last known address and to any
other lienholder of record, a notice of redemption setting
forth the following information: (i) the name of the owner
of record and in bold type at or near the top of the notice
a statement that the owner's vehicle was repossessed on a
specified date for failure to make payments on the loan (or
other reason), (ii) a description of the vehicle subject to
the lien sufficient to identify it, (iii) the right of the
owner to redeem the vehicle, (iv) the lienholder's intent
to sell or otherwise dispose of the vehicle after the
expiration of 21 days from the date of mailing or delivery
of the notice, and (v) the name, address, and telephone
number of the lienholder from whom information may be
obtained concerning the amount due to redeem the vehicle

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and from whom the vehicle may be redeemed under Section
9-623 of the Uniform Commercial Code. At the lienholder's
option, the information required to be set forth in this
notice of redemption may be made a part of or accompany the
notification of sale or other disposition required under
Section 9-611 of the Uniform Commercial Code, but none of
the information required by this notice shall be construed
to impose any requirement under Article 9 of the Uniform
Commercial Code.
(2) With respect to the repossession of a vehicle used
primarily for personal, family, or household purposes, the
lienholder shall also deliver or mail to the owner at the
owner's last known address an affidavit of defense. The
affidavit of defense shall accompany the notice of
redemption required in subdivision (f-5)(1) of this
Section. The affidavit of defense shall (i) identify the
lienholder, owner, and the vehicle; (ii) provide space for
the owner to state the defense claimed by the owner; and
(iii) include an acknowledgment by the owner that the owner
may be liable to the lienholder for fees, charges, and
costs incurred by the lienholder in establishing the
insufficiency or invalidity of the owner's defense. To stop
the transfer of title, the affidavit of defense must be
received by the lienholder no later than 21 days after the
date of mailing or delivery of the notice required in
subdivision (f-5)(1) of this Section. If the lienholder

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receives the affidavit from the owner in a timely manner,
the lienholder must apply to a court of competent
jurisdiction to determine if the lienholder is entitled to
possession of the vehicle.
(3) Upon selling the vehicle to another person, the
lienholder need not send the certificate of title to the
Secretary of State, but shall promptly and within 20 days
mail or deliver to the purchaser as transferee (i) the
existing certificate of title for the repossessed vehicle,
reflecting the release of the lienholder's security
interest in the vehicle; and (ii) an affidavit of
repossession made by or on behalf of the lienholder which
provides the following information: that the vehicle was
repossessed, a description of the vehicle sufficient to
identify it, whether the vehicle has been damaged in excess
of 33 1/3% of its fair market value as required under
subdivision (b)(3) of Section 3-117.1, that the owner and
any other lienholder of record were given the notice
required in subdivision (f-5)(1) of this Section, that the
owner of record was given the affidavit of defense required
in subdivision (f-5)(2) of this Section, that the interest
of the owner was lawfully terminated or sold pursuant to
the terms of the security agreement, and the purchaser's
name and address. If the vehicle is damaged in excess of 33
1/3% of its fair market value, the lienholder shall make
application for a salvage certificate under Section

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3-117.1 and transfer the vehicle to a person eligible to
receive assignments of salvage certificates identified in
Section 3-118.
(4) The application for a certificate of title made by
the purchaser shall comply with subsection (a) of Section
3-104 and be accompanied by the affidavit of repossession
furnished by the lienholder and the existing certificate of
title for the repossessed vehicle. The lienholder shall
execute the assignment and warranty of title showing the
name and address of the purchaser in the spaces provided
therefor on the certificate of title or as the Secretary of
State prescribes. The lienholder shall complete the
assignment of title in the certificate of title to reflect
the transfer of the vehicle to the lienholder and also a
reassignment to reflect the transfer from the lienholder to
the purchaser. For this purpose, the lienholder is
specifically authorized to execute the assignment on
behalf of the owner as seller if the owner has not done so
and to complete and execute the space reserved in the
certificate of title for a dealer reassignment,
notwithstanding that the lienholder is not a licensed
dealer. Nothing herein shall be construed to mean that the
lienholder is taking title to the repossessed vehicle for
purposes of liability for retailer occupation, vehicle
use, or other tax with respect to the proceeds from the
repossession sale. Delivery of the existing certificate of

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title to the purchaser shall be deemed disclosure to the
purchaser of the owner of the vehicle. In the event the
lienholder does not hold the certificate of title for the
repossessed vehicle, the lienholder shall make application
for and may obtain a new certificate of title in the name
of the lienholder upon furnishing information satisfactory
to the Secretary of State. Upon receiving the new
certificate of title, the lienholder may proceed with the
sale described in subdivision (f-5)(3), except that upon
selling the vehicle the lienholder shall promptly and
within 20 days mail or deliver to the purchaser the new
certificate of title reflecting the assignment and
transfer of title to the purchaser.
(5) Neither the lienholder nor the owner shall file
with the Office of the Secretary of State the notice of
redemption or affidavit of defense described in
subdivisions (f-5)(1) and (f-5)(2) of this Section. The
Office of the Secretary of State shall not determine the
merits of an owner's affidavit of defense, nor consider any
allegations or assertions regarding the validity or
invalidity of a lienholder's claim to the vehicle or an
owner's asserted defenses to the repossession action.
(f-7) Notice of reinstatement in certain cases.
(1) Subject to subsection (f-30), if, at the time of
repossession by a lienholder that is seeking to transfer
title pursuant to subsection (f-5), the owner has paid an

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amount equal to 30% or more of the deferred payment price
or total of payments due, the owner may, within 21 days of
the date of repossession, reinstate the contract or loan
agreement and recover the vehicle from the lienholder by
tendering in a lump sum (i) the total of all unpaid
amounts, including any unpaid delinquency or deferral
charges due at the date of reinstatement, without
acceleration; and (ii) performance necessary to cure any
default other than nonpayment of the amounts due; and (iii)
all reasonable costs and fees incurred by the lienholder in
retaking, holding, and preparing the vehicle for
disposition and in arranging for the sale of the vehicle.
Reasonable costs and fees incurred by the lienholder
include without limitation repossession and storage
expenses and, if authorized by the contract or loan
agreement, reasonable attorneys' fees and collection
agency charges.
(2) Tender of payment and performance pursuant to this
limited right of reinstatement restores to the owner his
rights under the contract or loan agreement as though no
default had occurred. The owner has the right to reinstate
the contract or loan agreement and recover the vehicle from
the lienholder only once under this subsection. The
lienholder may, in the lienholder's sole discretion,
extend the period during which the owner may reinstate the
contract or loan agreement and recover the vehicle beyond

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the 21 days allowed under this subsection, and the
extension shall not subject the lienholder to liability to
the owner under the laws of this State.
(3) The lienholder shall deliver or mail written notice
to the owner at the owner's last known address, within 3
business days of the date of repossession, of the owner's
right to reinstate the contract or loan agreement and
recover the vehicle pursuant to the limited right of
reinstatement described in this subsection. At the
lienholder's option, the information required to be set
forth in this notice of reinstatement may be made part of
or accompany the notice of redemption required in
subdivision (f-5)(1) of this Section and the notification
of sale or other disposition required under Section 9-611
of the Uniform Commercial Code, but none of the information
required by this notice of reinstatement shall be construed
to impose any requirement under Article 9 of the Uniform
Commercial Code.
(4) The reinstatement period, if applicable, and the
redemption period described in subdivision (f-5)(1) of
this Section, shall run concurrently if the information
required to be set forth in the notice of reinstatement is
part of or accompanies the notice of redemption. In any
event, the 21 day redemption period described in
subdivision (f-5)(1) of this Section shall commence on the
date of mailing or delivery to the owner of the information

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required to be set forth in the notice of redemption, and
the 21 day reinstatement period described in this
subdivision, if applicable, shall commence on the date of
mailing or delivery to the owner of the information
required to be set forth in the notice of reinstatement.
(5) The Office of the Secretary of State shall not
determine the merits of an owner's claim of right to
reinstatement, nor consider any allegations or assertions
regarding the validity or invalidity of a lienholder's
claim to the vehicle or an owner's asserted right to
reinstatement. Where a lienholder is subject to licensing
and regulatory supervision by the State of Illinois, the
lienholder shall be subject to all of the powers and
authority of the lienholder's primary State regulator to
enforce compliance with the procedures set forth in this
subsection (f-7).
(f-10) Repossession by judicial process. In all cases
wherein a lienholder has repossessed a vehicle by judicial
process and holds it for resale under a security agreement,
order for replevin, or other court order establishing the
lienholder's right to possession of the vehicle, the lienholder
may proceed to sell or otherwise dispose of the vehicle as
authorized under the Uniform Commercial Code or the court
order. Upon selling the vehicle to another person, the
lienholder need not send the certificate of title to the
Secretary of State, but shall promptly and within 20 days mail

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or deliver to the purchaser as transferee (i) the existing
certificate of title for the repossessed vehicle reflecting the
release of the lienholder's security interest in the vehicle;
(ii) a certified copy of the court order; and (iii) a bill of
sale identifying the new owner's name and address and the year,
make, model, and vehicle identification number of the vehicle.
The application for a certificate of title made by the
purchaser shall comply with subsection (a) of Section 3-104 and
be accompanied by the certified copy of the court order
furnished by the lienholder and the existing certificate of
title for the repossessed vehicle. The lienholder shall execute
the assignment and warranty of title showing the name and
address of the purchaser in the spaces provided therefor on the
certificate of title or as the Secretary of State prescribes.
The lienholder shall complete the assignment of title in the
certificate of title to reflect the transfer of the vehicle to
the lienholder and also a reassignment to reflect the transfer
from the lienholder to the purchaser. For this purpose, the
lienholder is specifically authorized to execute the
assignment on behalf of the owner as seller if the owner has
not done so and to complete and execute the space reserved in
the certificate of title for a dealer reassignment,
notwithstanding that the lienholder is not a licensed dealer.
Nothing herein shall be construed to mean that the lienholder
is taking title to the repossessed vehicle for purposes of
liability for retailer occupation, vehicle use, or other tax

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with respect to the proceeds from the repossession sale.
Delivery of the existing certificate of title to the purchaser
shall be deemed disclosure to the purchaser of the owner of the
vehicle. In the event the lienholder does not hold the
certificate of title for the repossessed vehicle, the
lienholder shall make application for and may obtain a new
certificate of title in the name of the lienholder upon
furnishing information satisfactory to the Secretary of State.
Upon receiving the new certificate of title, the lienholder may
proceed with the sale described in this subsection, except that
upon selling the vehicle the lienholder shall promptly and
within 20 days mail or deliver to the purchaser the new
certificate of title reflecting the assignment and transfer of
title to the purchaser.
(f-15) The Secretary of State shall not issue a certificate
of title to a purchaser under subsection (f), (f-5), or (f-10)
of this Section, unless the person from whom the vehicle has
been repossessed by the lienholder is shown to be the last
registered owner of the motor vehicle. The Secretary of State
may provide by rule for the standards to be followed by a
lienholder in assigning and transferring certificates of title
with respect to repossessed vehicles.
(f-20) If applying for a salvage certificate or a junking
certificate, the lienholder shall within 20 days make an
application to the Secretary of State for a salvage certificate
or a junking certificate, as set forth in this Code. The

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Secretary of State shall not issue a salvage certificate or a
junking certificate to such lienholder unless the person from
whom such vehicle has been repossessed is shown to be the last
registered owner of such motor vehicle and such lienholder
establishes to the satisfaction of the Secretary of State that
he is entitled to such salvage certificate or junking
certificate. The Secretary of State may provide by rule for the
standards to be followed by a lienholder in order to obtain a
salvage certificate or junking certificate for a repossessed
vehicle.
(f-25) If the interest of an owner in a mobile home, as
defined in the Mobile Home Local Services Tax Act, passes to
another under the provisions of the Mobile Home Local Services
Tax Enforcement Act, the transferee shall promptly mail or
deliver to the Secretary of State (i) the last certificate of
title, if available, (ii) a certified copy of the court order
ordering the transfer of title, and (iii) an application for
certificate of title.
(f-30) Bankruptcy. If the repossessed vehicle is the
subject of a bankruptcy proceeding or discharge:
(1) the lienholder may proceed to sell or otherwise
dispose of the vehicle as authorized by the Bankruptcy Code
and the Uniform Commercial Code;
(2) the notice of redemption, affidavit of defense, and
notice of reinstatement otherwise required to be sent by
the lienholder to the owner of record or other lienholder

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of record under this Section are not required to be
delivered or mailed;
(3) the requirement to delay disposition of the vehicle
for 21 days, (i) from the mailing or delivery of the notice
of redemption under subdivision (f-5)(1) of this Section,
(ii) from the mailing or delivery of the affidavit of
defense under subdivision (f-5)(2) of this Section, or
(iii) from the date of repossession when the owner is
entitled to a notice of reinstatement under subsection
(f-7) of this Section, does not apply;
(4) the affidavit of repossession that is required
under subdivision (f-5)(3) shall contain a notation of
"bankruptcy" where the affidavit requires the date of the
mailing or delivery of the notice of redemption. The
notation of "bankruptcy" means the lienholder makes no
sworn representations regarding the mailing or delivery of
the notice of redemption or affidavit of defense or
lienholder's compliance with the requirements that
otherwise apply to the notices listed in this subsection
(f-30), and makes no sworn representation that the
lienholder assumes liability or costs for any litigation
that may arise from the issuance of a certificate of title
based on the excluded representations;
(5) the right of redemption, the right to assert a
defense to the transfer of title, and reinstatement rights
under this Section do not apply; and

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(6) references to judicial process and court orders in
subsection (f-10) of this Section do not include bankruptcy
proceedings or orders.
(f-35) When an abandoned junk or hazardous dilapidated
motor vehicle is in the possession of an automotive collision
and body repair facility or automotive repair facility and the
facility, as lienholder, has complied with the requirements of
Section 4.5 of the Labor and Storage Lien (Small Amount) Act
the lienholder shall follow the provisions of subsection
(f-20).
(g) A person holding a certificate of title whose interest
in the vehicle has been extinguished or transferred other than
by voluntary transfer shall mail or deliver the certificate,
within 20 days upon request of the Secretary of State. The
delivery of the certificate pursuant to the request of the
Secretary of State does not affect the rights of the person
surrendering the certificate, and the action of the Secretary
of State in issuing a new certificate of title as provided
herein is not conclusive upon the rights of an owner or
lienholder named in the old certificate.
(h) The Secretary of State may decline to process any
application for a transfer of an interest in a vehicle
hereunder if any fees or taxes due under this Act from the
transferor or the transferee have not been paid upon reasonable
notice and demand.
(i) The Secretary of State shall not be held civilly or

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criminally liable to any person because any purported
transferor may not have had the power or authority to make a
transfer of any interest in any vehicle or because a
certificate of title issued in error is subsequently used to
commit a fraudulent act.
(Source: P.A. 94-411, eff. 1-1-06.)
(625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
Sec. 3-117.1. When junking certificates or salvage
certificates must be obtained.
(a) Except as provided in Chapter 4 of this Code, a person
who possesses a junk vehicle shall within 15 days cause the
certificate of title, salvage certificate, certificate of
purchase, or a similarly acceptable out of state document of
ownership to be surrendered to the Secretary of State along
with an application for a junking certificate, except as
provided in Section 3-117.2, whereupon the Secretary of State
shall issue to such a person a junking certificate, which shall
authorize the holder thereof to possess, transport, or, by an
endorsement, transfer ownership in such junked vehicle, and a
certificate of title shall not again be issued for such
vehicle.
A licensee who possesses a junk vehicle and a Certificate
of Title, Salvage Certificate, Certificate of Purchase, or a
similarly acceptable out-of-state document of ownership for
such junk vehicle, may transport the junk vehicle to another

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licensee prior to applying for or obtaining a junking
certificate, by executing a uniform invoice. The licensee
transferor shall furnish a copy of the uniform invoice to the
licensee transferee at the time of transfer. In any case, the
licensee transferor shall apply for a junking certificate in
conformance with Section 3-117.1 of this Chapter. The following
information shall be contained on a uniform invoice:
(1) The business name, address and dealer license
number of the person disposing of the vehicle, junk vehicle
or vehicle cowl;
(2) The name and address of the person acquiring the
vehicle, junk vehicle or vehicle cowl, and if that person
is a dealer, the Illinois or out-of-state dealer license
number of that dealer;
(3) The date of the disposition of the vehicle, junk
vehicle or vehicle cowl;
(4) The year, make, model, color and description of
each vehicle, junk vehicle or vehicle cowl disposed of by
such person;
(5) The manufacturer's vehicle identification number,
Secretary of State identification number or Illinois
Department of State Police number, for each vehicle, junk
vehicle or vehicle cowl part disposed of by such person;
(6) The printed name and legible signature of the
person or agent disposing of the vehicle, junk vehicle or
vehicle cowl; and

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(7) The printed name and legible signature of the
person accepting delivery of the vehicle, junk vehicle or
vehicle cowl.
The Secretary of State may certify a junking manifest in a
form prescribed by the Secretary of State that reflects those
vehicles for which junking certificates have been applied or
issued. A junking manifest may be issued to any person and it
shall constitute evidence of ownership for the vehicle listed
upon it. A junking manifest may be transferred only to a person
licensed under Section 5-301 of this Code as a scrap processor.
A junking manifest will allow the transportation of those
vehicles to a scrap processor prior to receiving the junk
certificate from the Secretary of State.
(b) An application for a salvage certificate shall be
submitted to the Secretary of State in any of the following
situations:
(1) When an insurance company makes a payment of
damages on a total loss claim for a vehicle, the insurance
company shall be deemed to be the owner of such vehicle and
the vehicle shall be considered to be salvage except that
ownership of (i) a vehicle that has incurred only hail
damage that does not affect the operational safety of the
vehicle or (ii) any vehicle 9 model years of age or older
may, by agreement between the registered owner and the
insurance company, be retained by the registered owner of
such vehicle. The insurance company shall promptly deliver

HB1155 - 26 - LRB097 05096 AJO 45139 b
or mail within 20 days the certificate of title along with
proper application and fee to the Secretary of State, and a
salvage certificate shall be issued in the name of the
insurance company. Notwithstanding the foregoing, an
insurer making payment of damages on a total loss claim for
the theft of a vehicle shall not be required to apply for a
salvage certificate unless the vehicle is recovered and has
incurred damage that initially would have caused the
vehicle to be declared a total loss by the insurer.
(1.1) When a vehicle of a self-insured company is to be
sold in the State of Illinois and has sustained damaged by
collision, fire, theft, rust corrosion, or other means so
that the self-insured company determines the vehicle to be
a total loss, or if the cost of repairing the damage,
including labor, would be greater than 50% of its fair
market value without that damage, the vehicle shall be
considered salvage. The self-insured company shall
promptly deliver the certificate of title along with proper
application and fee to the Secretary of State, and a
salvage certificate shall be issued in the name of the
self-insured company. A self-insured company making
payment of damages on a total loss claim for the theft of a
vehicle may exchange the salvage certificate for a
certificate of title if the vehicle is recovered without
damage. In such a situation, the self-insured shall fill
out and sign a form prescribed by the Secretary of State

HB1155 - 27 - LRB097 05096 AJO 45139 b
which contains an affirmation under penalty of perjury that
the vehicle was recovered without damage and the Secretary
of State may, by rule, require photographs to be submitted.
(2) When a vehicle the ownership of which has been
transferred to any person through a certificate of purchase
from acquisition of the vehicle at an auction, other
dispositions as set forth in Sections 4-208 and 4-209 of
this Code, a lien arising under Section 18a-501 of this
Code, or a public sale under the Abandoned Mobile Home Act
shall be deemed salvage or junk at the option of the
purchaser. The person acquiring such vehicle in such manner
shall promptly deliver or mail, within 20 days after the
acquisition of the vehicle, the certificate of purchase,
the proper application and fee, and, if the vehicle is an
abandoned mobile home under the Abandoned Mobile Home Act,
a certification from a local law enforcement agency that
the vehicle was purchased or acquired at a public sale
under the Abandoned Mobile Home Act to the Secretary of
State and a salvage certificate or junking certificate
shall be issued in the name of that person. The salvage
certificate or junking certificate issued by the Secretary
of State under this Section shall be free of any lien that
existed against the vehicle prior to the time the vehicle
was acquired by the applicant under this Code.
(3) A vehicle which has been repossessed by a
lienholder shall be considered to be salvage only when the

HB1155 - 28 - LRB097 05096 AJO 45139 b
repossessed vehicle, on the date of repossession by the
lienholder, has sustained damage by collision, fire,
theft, rust corrosion, or other means so that the cost of
repairing such damage, including labor, would be greater
than 33 1/3% of its fair market value without such damage.
If the lienholder determines that such vehicle is damaged
in excess of 33 1/3% of such fair market value, the
lienholder shall, before sale, transfer or assignment of
the vehicle, make application for a salvage certificate,
and shall submit with such application the proper fee and
evidence of possession. If the facts required to be shown
in subsection (f) of Section 3-114 are satisfied, the
Secretary of State shall issue a salvage certificate in the
name of the lienholder making the application. In any case
wherein the vehicle repossessed is not damaged in excess of
33 1/3% of its fair market value, the lienholder shall
comply with the requirements of subsections (f), (f-5), and
(f-10) of Section 3-114, except that the affidavit of
repossession made by or on behalf of the lienholder shall
also contain an affirmation under penalty of perjury that
the vehicle on the date of sale is not damaged in excess of
33 1/3% of its fair market value. If the facts required to
be shown in subsection (f) of Section 3-114 are satisfied,
the Secretary of State shall issue a certificate of title
as set forth in Section 3-116 of this Code. The Secretary
of State may by rule or regulation require photographs to

HB1155 - 29 - LRB097 05096 AJO 45139 b
be submitted.
(4) A vehicle which is a part of a fleet of more than 5
commercial vehicles registered in this State or any other
state or registered proportionately among several states
shall be considered to be salvage when such vehicle has
sustained damage by collision, fire, theft, rust,
corrosion or similar means so that the cost of repairing
such damage, including labor, would be greater than 33 1/3%
of the fair market value of the vehicle without such
damage. If the owner of a fleet vehicle desires to sell,
transfer, or assign his interest in such vehicle to a
person within this State other than an insurance company
licensed to do business within this State, and the owner
determines that such vehicle, at the time of the proposed
sale, transfer or assignment is damaged in excess of 33
1/3% of its fair market value, the owner shall, before such
sale, transfer or assignment, make application for a
salvage certificate. The application shall contain with it
evidence of possession of the vehicle. If the fleet vehicle
at the time of its sale, transfer, or assignment is not
damaged in excess of 33 1/3% of its fair market value, the
owner shall so state in a written affirmation on a form
prescribed by the Secretary of State by rule or regulation.
The Secretary of State may by rule or regulation require
photographs to be submitted. Upon sale, transfer or
assignment of the fleet vehicle the owner shall mail the

HB1155 - 30 - LRB097 05096 AJO 45139 b
affirmation to the Secretary of State.
(5) A vehicle that has been submerged in water to the
point that rising water has reached over the door sill and
has entered the passenger or trunk compartment is a "flood
vehicle". A flood vehicle shall be considered to be salvage
only if the vehicle has sustained damage so that the cost
of repairing the damage, including labor, would be greater
than 33 1/3% of the fair market value of the vehicle
without that damage. The salvage certificate issued under
this Section shall indicate the word "flood", and the word
"flood" shall be conspicuously entered on subsequent
titles for the vehicle. A person who possesses or acquires
a flood vehicle that is not damaged in excess of 33 1/3% of
its fair market value shall make application for title in
accordance with Section 3-116 of this Code, designating the
vehicle as "flood" in a manner prescribed by the Secretary
of State. The certificate of title issued shall indicate
the word "flood", and the word "flood" shall be
conspicuously entered on subsequent titles for the
vehicle.
(6) When an abandoned junk or hazardous dilapidated
motor vehicle is in the possession of an automotive
collision and body repair facility or automotive repair
facility and the lienholder has complied with the
requirements of Section 4.5 of the Labor and Storage Lien
(Small Amount) Act.

HB1155 - 31 - LRB097 05096 AJO 45139 b
(c) Any person who without authority acquires, sells,
exchanges, gives away, transfers or destroys or offers to
acquire, sell, exchange, give away, transfer or destroy the
certificate of title to any vehicle which is a junk or salvage
vehicle shall be guilty of a Class 3 felony.
(d) Any person who knowingly fails to surrender to the
Secretary of State a certificate of title, salvage certificate,
certificate of purchase or a similarly acceptable out-of-state
document of ownership as required under the provisions of this
Section is guilty of a Class A misdemeanor for a first offense
and a Class 4 felony for a subsequent offense; except that a
person licensed under this Code who violates paragraph (5) of
subsection (b) of this Section is guilty of a business offense
and shall be fined not less than $1,000 nor more than $5,000
for a first offense and is guilty of a Class 4 felony for a
second or subsequent violation.
(e) Any vehicle which is salvage or junk may not be driven
or operated on roads and highways within this State. A
violation of this subsection is a Class A misdemeanor. A
salvage vehicle displaying valid special plates issued under
Section 3-601(b) of this Code, which is being driven to or from
an inspection conducted under Section 3-308 of this Code, is
exempt from the provisions of this subsection. A salvage
vehicle for which a short term permit has been issued under
Section 3-307 of this Code is exempt from the provisions of
this subsection for the duration of the permit.

HB1155 - 32 - LRB097 05096 AJO 45139 b
(Source: P.A. 95-495, eff. 1-1-08; 95-783, eff. 1-1-09.)
(625 ILCS 5/4-202) (from Ch. 95 1/2, par. 4-202)
Sec. 4-202. Abandoned, lost, stolen or unclaimed vehicle
notification to law enforcement agencies.
When an abandoned, lost, stolen or unclaimed vehicle comes
into the temporary possession or custody of a person in this
State, not the owner of the vehicle, such person shall
immediately notify the municipal police when the vehicle is
within the corporate limits of any city, village or town having
a duly authorized police department, or the State Police or the
county sheriff when the vehicle is outside the corporate limits
of a city, village or town. Upon receipt of such notification,
the municipal police, State Police or county sheriff will
authorize a towing service to remove and take possession of the
abandoned, lost, stolen or unclaimed vehicle. The towing
service will safely keep the towed vehicle and its contents,
maintain a record of the tow as set forth in Section 4-204 for
law enforcement agencies, until the vehicle is claimed by the
owner or any other person legally entitled to possession
thereof or until it is disposed of as provided in this Chapter.
When an abandoned junk or hazardous dilapidated motor vehicle
is in the possession of an automotive collision and body repair
facility or automotive repair facility, the facility may
utilize the procedures set forth in Section 4.5 of the Labor
and Storage Lien (Small Amount) Act.

HB1155 - 33 - LRB097 05096 AJO 45139 b
(Source: P.A. 78-858.)
Section 10. The Labor and Storage Lien (Small Amount) Act
is amended by adding Section 4.5 as follows:
(770 ILCS 50/4.5 new)
Sec. 4.5. Notice and Affidavit of Abandonment. If an
automotive collision and body repair facility or an automotive
repair facility has a lien under this Act upon an abandoned
junk vehicle as defined under Section 1-134.1 of the Vehicle
Code or a hazardous dilapidated motor vehicle as defined in
Section 11-40-3.1 of the Illinois Municipal Code and has had
possession of the vehicle for at least 30 days, the lienor may
sell the vehicle pursuant to this Section after mailing a
Notice and Affidavit of Abandonment, with postage prepaid and
return receipt requested, to the last known address of the
reported owner, any assignee, other lienor, and any other
person who has a duly recorded security interest in the
vehicle. The Notice and Affidavit of Abandonment shall be
substantially in the following form:
NOTICE AND AFFIDAVIT OF ABANDONMENT
Notice is hereby given that Lienor, ......, has a statutory
lien upon a vehicle (describe) for the storage of the vehicle
that the Lienor has furnished; That the name and address of the
owner or reputed owner, is ....... located at ....... ; That
the lienor furnished storage of the vehicle at the lienor's

HB1155 - 34 - LRB097 05096 AJO 45139 b
automotive collision and body repair facility or the lienor's
automotive repair facility between the date of ......,
......... and the date of ......, ........; That the vehicle
has remained unclaimed for a period of no less than 30 days;
That the vehicle is a junk vehicle as defined in Section
1-134.1 of the Vehicle Code or a hazardous dilapidated motor
vehicle as defined in Section 11-40-3.1 of the Illinois
Municipal Code; That the claimant intends to transfer
possession of the vehicle to a licensed scrap processor in this
State; That the claimant demands compensation for the storage
of the vehicle in the amount of $...., and that the remaining
unpaid balance is $......
I,......, being first duly sworn, on oath say that I am the
lienor or the authorized agent of the lienor named in the
foregoing notice, that I have read the notice, know the
contents thereof, and believe the same to be true.
(Signed).......... (Lienor)
Address of Lienor .........
State of Illinois,
County of .........
Subscribed and sworn to me before this ..... day of ........,
.........
If after 14 days following the mailing of the notice as
provided in this Section, the vehicle has not been redeemed,

HB1155 - 35 - LRB097 05096 AJO 45139 b
the lienor may sell the vehicle to a licensed scrap processor
in the State of Illinois. Any proceeds in excess of the amount
due for storage shall be paid to any other lienor, as the
lienor's interest may appear, with any remaining amount to be
held by the lienor for 6 months. If the owner fails to claim
the proceeds within 6 months after the sale, the funds shall be
deposited by the lienor with the county treasurer for the
county in which the vehicle was stored. The treasurer shall
credit the proceeds to the county's general revenue fund,
subject to the right of the owner to claim the excess proceeds
within 3 years after the date of the deposit with the
treasurer.