Bill Text: IL HB1195 | 2009-2010 | 96th General Assembly | Engrossed
Bill Title: Creates the Illinois Vacant and Abandoned Properties Act. Contains only a short title provision.
Spectrum: Partisan Bill (Democrat 29-1)
Status: (Engrossed - Dead) 2009-12-01 - Rule 19(b) / Re-referred to Rules Committee [HB1195 Detail]
Download: Illinois-2009-HB1195-Engrossed.html
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1 | AN ACT concerning vacant and abandoned property.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Illinois Land Banking Act.
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6 | Section 5. Findings. There is a continuing need to | ||||||
7 | strengthen and revitalize the economy of this State. Vacant and | ||||||
8 | abandoned properties threaten communities around the State | ||||||
9 | because those properties diminish property values, enable | ||||||
10 | crime, and create health hazards. Municipalities are often | ||||||
11 | unaware of which properties are at risk of becoming vacant and | ||||||
12 | abandoned. Municipalities have an interest in knowing the | ||||||
13 | status of the housing stock located in their jurisdictions. | ||||||
14 | Local governments should be empowered to acquire, develop, | ||||||
15 | maintain, and dispose of vacant and abandoned properties that | ||||||
16 | present a threat to communities around the State. | ||||||
17 | Municipalities lack many of the tools necessary to ensure | ||||||
18 | adequate property maintenance. Municipalities are unable to | ||||||
19 | recover the reasonable costs of their property maintenance | ||||||
20 | activity.
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21 | Section 10. Definitions. | ||||||
22 | "Authority" means the land bank authority created pursuant |
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1 | to this Act.
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2 | "Intergovernmental agreement" means a contractual | ||||||
3 | agreement between one or more governmental agencies, | ||||||
4 | including, but not limited to, an agreement to jointly exercise | ||||||
5 | any power, privilege, or authority that agencies share in | ||||||
6 | common and that each might exercise separately under this Act.
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7 | Section 15. Authorization. A municipality may create a land | ||||||
8 | bank authority with the powers and restrictions specified in | ||||||
9 | this Act. In creating an authority, the municipality shall | ||||||
10 | provide for all of the following: | ||||||
11 | (1) The incorporation of the authority as a public | ||||||
12 | body, corporate and politic.
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13 | (2) Articles of incorporation for the authority, which | ||||||
14 | must specify a list of permissible purposes for authority | ||||||
15 | activity under this Act.
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16 | (3) The size of the board of directors for the | ||||||
17 | authority, which shall be composed of an odd number of | ||||||
18 | members.
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19 | (4) The qualifications, methods of selection, and | ||||||
20 | terms of office of the board members.
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21 | Section 20. Election of tax remittance. A municipality may | ||||||
22 | authorize the remittance of a portion of taxes collected on | ||||||
23 | real property, pursuant to the Property Tax Code, to the | ||||||
24 | authority that sold or conveyed real property in order to |
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1 | further the purposes of this Act. The municipality may elect to | ||||||
2 | have up to 50% of those taxes remitted to the authority for up | ||||||
3 | to 5 years after the land bank has completed the sale or | ||||||
4 | conveyance of the property.
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5 | Section 25. Board of directors. The board of the authority | ||||||
6 | shall meet from time to time as required, and the presence of a | ||||||
7 | majority of the board of directors shall constitute a quorum. A | ||||||
8 | chairperson shall be elected from among the members, and he or | ||||||
9 | she shall execute all deeds, leases, and contracts of the | ||||||
10 | authority when authorized by the board. The board of the | ||||||
11 | authority shall conduct meetings in accordance with the Open | ||||||
12 | Meetings Act. The board of the authority shall adopt a code of | ||||||
13 | ethics for its directors, officers, and employees. The board of | ||||||
14 | the authority shall establish policies and procedures | ||||||
15 | requiring the disclosure of relationships that may give rise to | ||||||
16 | a conflict of interest. The board of the authority shall | ||||||
17 | require that any member of the board with a direct or indirect | ||||||
18 | interest in any matter disclose the member's interest to the | ||||||
19 | board before the board takes any action on that matter. Members | ||||||
20 | of the board of directors of an authority shall serve without | ||||||
21 | compensation.
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22 | Section 30. Powers. Except as otherwise provided in this | ||||||
23 | Act, an authority may do all things necessary or convenient to | ||||||
24 | implement the purposes, objectives, and provisions of this Act, |
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1 | including but not limited to the following: | ||||||
2 | (a) Acquire property pursuant to Section 35 of this | ||||||
3 | Act.
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4 | (b) Adopt, amend, and repeal bylaws for the regulation | ||||||
5 | of its affairs and the conduct of its business.
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6 | (c) Sue and be sued in its own name and plead and be | ||||||
7 | impleaded, including, but not limited to, defending the | ||||||
8 | authority in an action to clear title to property conveyed | ||||||
9 | by the authority.
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10 | (d) Take any action, provide any notice, or instate any | ||||||
11 | proceeding required to clear or quiet title to property | ||||||
12 | held by the authority in order to establish ownership by | ||||||
13 | and vest title to property in the authority.
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14 | (e) Be made party to and defend any action or | ||||||
15 | proceeding concerning title claims against property held | ||||||
16 | by the authority.
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17 | (f) Borrow money and issue bonds and notes according to | ||||||
18 | the provisions of this Act.
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19 | (g) Enter into contracts and other instruments | ||||||
20 | necessary, incidental, or convenient to the performance of | ||||||
21 | its duties and the exercise of its powers, including, but | ||||||
22 | not limited to, intergovernmental agreements, for the | ||||||
23 | joint exercise of power under this Act. | ||||||
24 | (h) Enter into contracts for the management of, the | ||||||
25 | collection of rent from, and the sale of real property held | ||||||
26 | by an authority. |
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1 | (i) Enter into contracts with other entities, public or | ||||||
2 | private, for the provision of all or a portion of the | ||||||
3 | services necessary for the management and operation of the | ||||||
4 | authority.
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5 | (j) Solicit and accept gifts, grants, labor, loans, and | ||||||
6 | other aid from any person, the federal government, this | ||||||
7 | State, a political subdivision of this State or any agency | ||||||
8 | of the federal government, or an intergovernmental entity | ||||||
9 | created under the laws of this State or participate in any | ||||||
10 | other way in a program of the federal government, this | ||||||
11 | State, a political subdivision of this State, or an | ||||||
12 | intergovernmental entity created under the laws of this | ||||||
13 | State.
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14 | (k) Procure insurance against loss in connection with | ||||||
15 | the property, assets, or activities of the authority.
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16 | (l) Control, hold, manage, maintain, operate, repair, | ||||||
17 | lease as lessor, secure, prevent the waste or deterioration | ||||||
18 | of, demolish, and take all other actions necessary to | ||||||
19 | preserve the value of the property it holds or owns.
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20 | (m) Remediate environmental contamination on any | ||||||
21 | property held by the authority.
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22 | (n) Fix, charge, and collect rents, fees, and charges | ||||||
23 | for use of property under the control of the authority or | ||||||
24 | for services provided by the authority.
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25 | (o) Grant or acquire a license, easement, or option | ||||||
26 | with respect to property as the authority determines is |
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1 | reasonably necessary to achieve the purposes of the Act.
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2 | (p) Pay any tax or special assessment due on property | ||||||
3 | acquired or owned by the authority.
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4 | (q) Invest money of the authority, at the discretion of | ||||||
5 | the board of directors of the authority, in instruments, | ||||||
6 | obligations, securities, or property determined proper by | ||||||
7 | the board of directors of the authority, and name and use | ||||||
8 | depositories for its money. | ||||||
9 | (r)
Employ its own employees or use employees of the | ||||||
10 | authorizing municipality or employees of the parties to | ||||||
11 | intergovernmental agreements.
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12 | (s) Employ legal and technical experts, other | ||||||
13 | officers, agents, or employees and pay them from the funds | ||||||
14 | of the authority and determine the qualifications, duties, | ||||||
15 | and compensation of those it employs.
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16 | (t) The board of directors of an authority may delegate | ||||||
17 | to one or more of its members, officers, agents, or | ||||||
18 | employees any powers or duties it considers proper.
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19 | (u) Reimburse members of the board of directors of the | ||||||
20 | authority for actual and necessary expenses subject to | ||||||
21 | available appropriations.
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22 | (v) Contract for goods and services and engage | ||||||
23 | personnel as necessary and engage the services of private | ||||||
24 | consultants, managers, legal counsel, engineers, accounts, | ||||||
25 | and auditors for rendering professional financial | ||||||
26 | assistance and advice payable out of any money available to |
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1 | the authority.
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2 | (w) Prepare the reports or plans the authority | ||||||
3 | considers necessary to assist it in the exercise of its | ||||||
4 | powers under this Act and to monitor and evaluate progress | ||||||
5 | under this Act.
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6 | (x) Do all other things necessary or convenient to | ||||||
7 | achieve the objectives and purposes of the authority or | ||||||
8 | other laws that relate to the purposes and responsibility | ||||||
9 | of the authority.
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10 | The enumeration of a power in this Act shall not be | ||||||
11 | construed as a limitation upon the general powers of an | ||||||
12 | authority.
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13 | Section 35. Acquisition of property. An authority may | ||||||
14 | acquire by gift, devise, transfer, exchange, foreclosure, | ||||||
15 | purchase, or otherwise on terms and conditions and in a manner | ||||||
16 | the authority considers proper, real property within the | ||||||
17 | authority's jurisdiction, or rights or interests in real | ||||||
18 | property within the authority's jurisdiction. | ||||||
19 | An authority may acquire by gift, devise, transfer, | ||||||
20 | exchange, foreclosure, purchase, or otherwise on terms and | ||||||
21 | conditions and in a manner the authority considers proper, real | ||||||
22 | property outside of the authority's jurisdiction pursuant to an | ||||||
23 | intergovernmental agreement, or rights or interests in real | ||||||
24 | property outside of the authority's jurisdiction pursuant to an | ||||||
25 | intergovernmental agreement. |
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1 | An authority may acquire by gift, devise, transfer, | ||||||
2 | exchange, foreclosure, purchase, or otherwise on terms and | ||||||
3 | conditions and in a manner the authority considers proper, | ||||||
4 | personal property, or rights or interests in personal property. | ||||||
5 | Real property acquired by an authority by purchase may be | ||||||
6 | by purchase contract, lease purchase agreement, installment | ||||||
7 | sales contract, land contract, or otherwise. | ||||||
8 | An authority may hold and own in its name any property | ||||||
9 | acquired by it or conveyed to it by this State, a foreclosing | ||||||
10 | governmental unit, a unit of local government, an | ||||||
11 | intergovernmental entity created under the laws of this State, | ||||||
12 | or any other public or private person, including, but not | ||||||
13 | limited to, property without clear title. | ||||||
14 | All deeds, mortgages, contracts, leases, purchases, or | ||||||
15 | other agreements regarding property of an authority, including | ||||||
16 | agreements to acquire or dispose of real property, shall be | ||||||
17 | approved by and executed in the name of the authority. | ||||||
18 | The authority shall have the right to purchase properties | ||||||
19 | at tax sales conducted in accordance with Division 3.5 of the | ||||||
20 | Property Tax Code. | ||||||
21 | (a) The authority may tender a bid at a tax sale that | ||||||
22 | is a credit bid, consisting of the obligation of the | ||||||
23 | authority to satisfy the component parts of the bid by | ||||||
24 | payments to the respective political subdivisions. | ||||||
25 | (b) A bid by the authority at a tax sale for the | ||||||
26 | minimum amount shall take priority over all other bids for |
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1 | the same property.
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2 | Section 40. Taxes. When a property is acquired by the | ||||||
3 | authority, the authority shall have the power to extinguish all | ||||||
4 | outstanding county and city or consolidated government taxes, | ||||||
5 | including school district taxes, at the time it sells or | ||||||
6 | otherwise disposes of property. | ||||||
7 | Property of an authority is public property devoted to an | ||||||
8 | essential public and governmental function and purpose. Income | ||||||
9 | of the authority is considered to be for a public and | ||||||
10 | governmental purpose. The property of the authority and its | ||||||
11 | income and operation are exempt from all taxes and special | ||||||
12 | assessments of this State and all units of local government. | ||||||
13 | Bonds or notes issued by the authority, and the interest on and | ||||||
14 | income from those bonds and notes, are exempt from all taxation | ||||||
15 | of this State or a unit of local government.
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16 | Section 45. Disposition. The authority may convey, sell, | ||||||
17 | transfer, exchange, lease as lessor, or otherwise dispose of | ||||||
18 | property or rights or interests in property to which the | ||||||
19 | authority holds a legal interest to any public or private | ||||||
20 | person for value determined by the authority.
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21 | Section 50. Receipt of taxes. All moneys received by an | ||||||
22 | authority as payment of taxes, penalties, or interest, or from | ||||||
23 | the redemption or sale of property subject to a tax lien of any |
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1 | taxing unit shall be returned to the appropriate local tax | ||||||
2 | collecting unit in which the property is located.
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3 | Section 55. Proceeds. Except as otherwise provided in this | ||||||
4 | Act, as required by other law, as required under the provisions | ||||||
5 | of a deed, or as an authority otherwise agrees, any proceeds | ||||||
6 | received by the authority may be retained by the authority for | ||||||
7 | the purposes of this Act.
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8 | Section 60. Record maintenance. The authority shall | ||||||
9 | maintain a written inventory of all property held by the | ||||||
10 | authority. The property shall be inventoried and classified by | ||||||
11 | the authority according to title status and suitability for | ||||||
12 | use. The inventory shall be available for public inspection | ||||||
13 | during regular business hours. | ||||||
14 | For each property held, the authority shall establish and | ||||||
15 | maintain itemized records and accounts reflecting all | ||||||
16 | transactions, expenditures, and revenues relating to all | ||||||
17 | property held by the authority.
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18 | Section 65. The Property Tax Code is amended by adding | ||||||
19 | Sections 21-231 and 22-40 as follows:
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20 | (35 ILCS 200/21-231 new) | ||||||
21 | Sec. 21-231. Notice of sales and redemptions. When any | ||||||
22 | property is sold, the county clerk shall send notice of the |
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1 | sale to the municipal clerk of the jurisdiction where the | ||||||
2 | property is located of the name of the purchaser and the amount | ||||||
3 | of the final bid. When any property is redeemed from sale, the | ||||||
4 | county clerk shall send notice to the municipal clerk of the | ||||||
5 | jurisdiction where the property is located of the name of the | ||||||
6 | person redeeming and the redemption date. These notices must be | ||||||
7 | sent by registered or certified mail within 30 days after sale | ||||||
8 | or redemption.
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9 | (35 ILCS 200/22-40)
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10 | Sec. 22-40. Issuance of deed; possession.
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11 | (a) If the redemption period expires
and the property has | ||||||
12 | not been redeemed and all taxes and special assessments
which | ||||||
13 | became due and payable subsequent to the sale have been paid | ||||||
14 | and all
forfeitures and sales which occur subsequent to the | ||||||
15 | sale have been redeemed and
the notices required by law have | ||||||
16 | been given and all advancements of public
funds under the | ||||||
17 | police power made by a city, village or town under Section
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18 | 22-35 have been paid and the petitioner has complied with all | ||||||
19 | the provisions of
law entitling him or her to a deed, the court | ||||||
20 | shall so find and shall enter an
order directing the county | ||||||
21 | clerk on the production of the certificate of
purchase and a | ||||||
22 | certified copy of the order, to issue to the purchaser or his | ||||||
23 | or
her assignee a tax deed. The court shall insist on strict | ||||||
24 | compliance with
Section 22-10 through 22-25. Prior to the entry | ||||||
25 | of an order directing the
issuance of a tax deed, the |
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1 | petitioner shall furnish the court with a report of
proceedings | ||||||
2 | of the evidence received on the application for tax deed and | ||||||
3 | the
report of proceedings shall be filed and made a part of the | ||||||
4 | court record.
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5 | (b) If taxes for years prior to the year or years sold are | ||||||
6 | or become
delinquent subsequent to the date of sale, the court | ||||||
7 | shall find
that the lien of those delinquent taxes has been or | ||||||
8 | will be merged into the tax
deed grantee's title if the court | ||||||
9 | determines that
the tax deed grantee or any prior holder of the | ||||||
10 | certificate of purchase, or
any
person or entity under common | ||||||
11 | ownership or control with any such grantee or
prior holder of | ||||||
12 | the certificate of purchase, was at no time the holder of any
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13 | certificate of purchase for the years sought to be merged.
If | ||||||
14 | delinquent taxes are merged into the tax deed pursuant to this | ||||||
15 | subsection,
the court shall enter an order declaring which | ||||||
16 | specific taxes have been or
will
be merged into the tax deed | ||||||
17 | title and directing the county treasurer and county
clerk to | ||||||
18 | reflect that declaration in the warrant and judgment records;
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19 | provided,
that no such order shall be effective until a tax | ||||||
20 | deed has been issued and
timely recorded. Nothing contained in | ||||||
21 | this Section shall relieve any owner
liable for delinquent | ||||||
22 | property taxes under this Code from the payment of the
taxes | ||||||
23 | that have been merged into the title upon issuance of the tax | ||||||
24 | deed.
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25 | (c) The county clerk is entitled to a fee of $10 in | ||||||
26 | counties of
3,000,000 or more
inhabitants and $5 in counties |
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1 | with less than 3,000,000 inhabitants for the
issuance of the | ||||||
2 | tax deed. The clerk may not include in a tax deed more than
one | ||||||
3 | property as listed, assessed and sold in one description, | ||||||
4 | except in cases
where several properties are owned by one | ||||||
5 | person.
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6 | Upon application the court shall, enter an order to place | ||||||
7 | the tax deed
grantee or the grantee's successor in interest in | ||||||
8 | possession of the property and may enter orders and grant | ||||||
9 | relief as
may be necessary or desirable to maintain the grantee | ||||||
10 | or the grantee's successor in interest in possession.
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11 | (d) The court shall retain jurisdiction to enter orders | ||||||
12 | pursuant to
subsections (b) and (c) of this Section. This | ||||||
13 | amendatory Act of the 92nd
General Assembly and this amendatory | ||||||
14 | Act of the 95th General Assembly shall be construed as being | ||||||
15 | declarative of existing law
and not as a new enactment.
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16 | (e) When the deed is issued, the county clerk shall send | ||||||
17 | notice to the municipal clerk where the property is located of | ||||||
18 | the full name and the true post office address and residence of | ||||||
19 | the grantee. The notice must be sent by registered or certified | ||||||
20 | mail within 30 days after the issuance of the deed. | ||||||
21 | (Source: P.A. 95-477, eff. 6-1-08 .)
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22 | Section 70. The Illinois Municipal Code is amended by | ||||||
23 | changing Sections 11-20-7 and 11-20-13 and by adding Sections | ||||||
24 | 11-20-15, 11-20-16, and 11-20-17 as follows:
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1 | (65 ILCS 5/11-20-7) (from Ch. 24, par. 11-20-7)
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2 | Sec. 11-20-7. Cutting of weeds. The corporate authorities | ||||||
3 | of each municipality may provide
for the cutting of weeds or | ||||||
4 | grass, the trimming of trees or bushes, and the removal of | ||||||
5 | nuisance bushes or trees in the municipality, when the owners | ||||||
6 | of real
estate refuse or neglect to cut, trim, or remove them | ||||||
7 | and to collect from the owners of
private property the | ||||||
8 | reasonable cost thereof. This cost , including any associated | ||||||
9 | fees and other costs related to the enforcement of this | ||||||
10 | Section, is a lien upon the
real estate affected, superior to | ||||||
11 | all other liens and encumbrances, except
tax liens; provided | ||||||
12 | that within 60 days after such cost and expense is
incurred the | ||||||
13 | municipality, or person performing the service by authority of
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14 | the municipality, in his or its own name, files notice of lien | ||||||
15 | in the
office of the recorder in the county in which
such real | ||||||
16 | estate is
located or in the office of the Registrar of Titles | ||||||
17 | of such county if the
real estate affected is registered under | ||||||
18 | the Torrens system. The notice
shall consist of a sworn | ||||||
19 | statement setting out (1) a description of the
real estate | ||||||
20 | sufficient for identification thereof, (2) the amount of money
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21 | representing the cost and expense incurred or payable for the | ||||||
22 | service, and
(3) the date or dates when such cost and expense | ||||||
23 | was incurred by the
municipality. However, the lien of such | ||||||
24 | municipality shall not be valid as
to any purchaser whose | ||||||
25 | rights in and to such real estate have arisen
subsequent to the | ||||||
26 | cutting of weeds or grass, the trimming of trees or bushes, or |
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1 | the removal of nuisance bushes or trees and prior to the filing | ||||||
2 | of such notice , and
the lien of such municipality shall not be | ||||||
3 | valid as to any mortgagee,
judgment creditor or other lienor | ||||||
4 | whose rights in and to such real estate
arise prior to the | ||||||
5 | filing of such notice . Upon payment of the cost and
expense by | ||||||
6 | the owner of or persons interested in such property after | ||||||
7 | notice
of lien has been filed, the lien shall be released by | ||||||
8 | the municipality or
person in whose name the lien has been | ||||||
9 | filed and the release may be filed
of record as in the case of | ||||||
10 | filing notice of lien.
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11 | The cost of the cutting, trimming, or removal of weeds, | ||||||
12 | grass, trees, or bushes shall not be lien on the real estate
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13 | affected unless a notice is personally served on, or sent by | ||||||
14 | certified mail to,
the person to whom was sent the tax bill for | ||||||
15 | the general taxes on the property
for the last preceding year. | ||||||
16 | The notice shall be delivered or sent
after the cutting, | ||||||
17 | trimming, or removal of weeds, grass, trees, or bushes on the | ||||||
18 | property. The notice shall
state the substance of this Section | ||||||
19 | and the substance of any ordinance of the
municipality | ||||||
20 | implementing this Section and shall identify the property, by
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21 | common description, and the location of the weeds to be cut.
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22 | (Source: P.A. 95-183, eff. 8-14-07.)
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23 | (65 ILCS 5/11-20-13) (from Ch. 24, par. 11-20-13)
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24 | Sec. 11-20-13. Removal of garbage, debris, and graffiti. | ||||||
25 | The corporate authorities of each municipality may provide for |
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1 | the
removal of garbage, debris, and graffiti from private | ||||||
2 | property
when the owner of such
property, after reasonable | ||||||
3 | notice, refuses or neglects to remove such
garbage, debris, and | ||||||
4 | graffiti and may collect from such owner
the reasonable cost
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5 | thereof except in the case of graffiti. This cost , including | ||||||
6 | any associated fees and other costs related to the enforcement | ||||||
7 | of this Section, is a lien upon the real
estate affected, | ||||||
8 | superior to all
subsequent liens and encumbrances, except tax | ||||||
9 | liens, if within 60 days
after such cost and expense is | ||||||
10 | incurred the municipality, or person
performing the service by | ||||||
11 | authority of the municipality, in his or its own
name, files | ||||||
12 | notice of lien in the office of the recorder in the
county in | ||||||
13 | which such real estate is located or in the office of the
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14 | Registrar of Titles of such county if the real estate affected | ||||||
15 | is
registered under "An Act concerning land titles", approved | ||||||
16 | May 1, 1897,
as amended. The notice shall consist of a sworn
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17 | statement setting out (1) a description of the real estate | ||||||
18 | sufficient for
identification thereof, (2) the amount of money | ||||||
19 | representing the cost and
expense incurred or payable for the | ||||||
20 | service, and (3) the date or dates when
such cost and expense | ||||||
21 | was incurred by the municipality. However, the lien
of such | ||||||
22 | municipality shall not be valid as to any purchaser whose | ||||||
23 | rights in
and to such real estate have arisen subsequent to | ||||||
24 | removal of the garbage
and debris and prior to the filing of | ||||||
25 | such notice , and the lien of such
municipality shall not be | ||||||
26 | valid as to any mortgagee, judgment creditor or
other lienor |
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1 | whose rights in and to such real estate arise prior to the
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2 | filing of such notice . Upon payment of the cost and expense by | ||||||
3 | the owner of
or persons interested in such property after | ||||||
4 | notice of lien has been filed,
the lien shall be released by | ||||||
5 | the municipality or person in whose name the
lien has been | ||||||
6 | filed and the release may be filed of record as in the case
of | ||||||
7 | filing notice of lien. The lien may be enforced by proceedings | ||||||
8 | to
foreclose as in case of mortgages or mechanics' liens. An | ||||||
9 | action
to foreclose
this lien shall be commenced within 2 years | ||||||
10 | after the date of filing notice
of lien.
| ||||||
11 | This amendatory Act of 1973 does not apply to any | ||||||
12 | municipality which is
a home rule unit.
| ||||||
13 | (Source: P.A. 90-292, eff. 1-1-98.)
| ||||||
14 | (65 ILCS 5/11-20-15 new) | ||||||
15 | Sec. 11-20-15. Vacant and abandoned property ordinances. | ||||||
16 | For the purposes of minimizing the hazards to persons and | ||||||
17 | property resulting from vacant and abandoned property, the | ||||||
18 | corporate authority of each municipality may prescribe rules, | ||||||
19 | regulations, or ordinances for the maintenance of vacant and | ||||||
20 | abandoned property. The corporate authorities of a | ||||||
21 | municipality may impose registration fees for vacant and | ||||||
22 | abandoned property and fines for failure to comply with the | ||||||
23 | rules, regulations, or ordinances enacted pursuant to this | ||||||
24 | Section.
|
| |||||||
| |||||||
1 | (65 ILCS 5/11-20-16 new) | ||||||
2 | Sec. 11-20-16. Mortgage beneficiary responsibility. | ||||||
3 | Municipalities may hold responsible for any failure to comply | ||||||
4 | with rules, regulations, or ordinances for the maintenance of | ||||||
5 | vacant and abandoned property (i) any beneficiary or trustee, | ||||||
6 | who holds a deed of trust on a neglected property located | ||||||
7 | within the municipality, or (ii) any mortgagee who holds a | ||||||
8 | mortgage on a neglected property located within the | ||||||
9 | municipality, and has filed a notice of default under Section | ||||||
10 | 15-1503 of the Code of Civil Procedure. | ||||||
11 | If a beneficiary or trustee, who holds a deed of trust on a | ||||||
12 | neglected property, or a mortgagee who holds a mortgage on a | ||||||
13 | neglected property, is held responsible for any failure to | ||||||
14 | comply with municipal law, that beneficiary, trustee, or | ||||||
15 | mortgagee may enter the property, after proper notice, to | ||||||
16 | remedy any violation of the rules, regulations, or ordinances | ||||||
17 | for the maintenance of vacant and abandoned property. The | ||||||
18 | beneficiary, trustee, or mortgagee may enter the property only | ||||||
19 | if, 15 days after the beneficiary, trustee, or mortgagee sent | ||||||
20 | proper notice, the property owners and occupants have failed to | ||||||
21 | comply with the rules, regulations, or ordinances at issue. | ||||||
22 | For the purpose of this Section, "neglected" means that | ||||||
23 | there has been no occupant in the property for a period of 6 | ||||||
24 | months and 2 or more of the following criteria have been met: | ||||||
25 | (a) Construction was initiated on the property and was | ||||||
26 | discontinued prior to completion, leaving the building |
| |||||||
| |||||||
1 | unsuitable for occupancy, and no construction has taken | ||||||
2 | place for at least 6 months. | ||||||
3 | (b) At least one installment of property tax is unpaid | ||||||
4 | and delinquent. | ||||||
5 | (c) The property has had more than one uncorrected | ||||||
6 | municipal code violation over the past year. | ||||||
7 | (d) Gas, electric, or water service to the premises has | ||||||
8 | been terminated. | ||||||
9 | (e) Windows or entrances to the premises are boarded up | ||||||
10 | or closed off, or multiple window panes are broken and | ||||||
11 | unrepaired. | ||||||
12 | (f) Doors to the premises are smashed through, broken | ||||||
13 | off, unhinged, or continuously unlocked. | ||||||
14 | (g) Rubbish, trash, or debris has accumulated on the | ||||||
15 | premises. | ||||||
16 | (h) The police or sheriff's office has received at | ||||||
17 | least 2 reports of trespassers on the premises, or of | ||||||
18 | vandalism or other illegal acts being committed on the | ||||||
19 | premises in the past 6 months. | ||||||
20 | (i) The property is a nuisance. | ||||||
21 | For the purpose of this Section, "mortgagee" means (i) the | ||||||
22 | holder of an indebtedness, obligee of a non-monetary obligation | ||||||
23 | secured by a mortgage, or any person designated or authorized | ||||||
24 | to act on behalf of such holder and (ii) any person claiming | ||||||
25 | through a mortgagee as successor. | ||||||
26 | For the purpose of this Section, "proper notice" means |
| |||||||
| |||||||
1 | notice to all property owners and occupants by certified or | ||||||
2 | registered mail stating the intent of the beneficiary, trustee, | ||||||
3 | or mortgagee to enter the property; the notice must be sent at | ||||||
4 | least 15 days before the beneficiary, trustee, or mortgagee | ||||||
5 | enters the property. The notice must specify the municipal law | ||||||
6 | violations the beneficiary, trustee, or mortgagee has been held | ||||||
7 | responsible for by a municipality. | ||||||
8 | For the purpose of this Section, "occupant" means a person | ||||||
9 | in lawful physical possession of all or part of the mortgaged | ||||||
10 | real estate. | ||||||
11 | For the purpose of this Section, "nuisance" means any | ||||||
12 | property that because of its physical condition or use is a | ||||||
13 | public nuisance, or any property that constitutes a blight on | ||||||
14 | the surrounding area, or any property that is not fit for human | ||||||
15 | habitation under the applicable fire, building, and housing | ||||||
16 | codes. "Nuisance" also means any property on which any illegal | ||||||
17 | activity involving controlled substances, methamphetamine, or | ||||||
18 | cannabis takes place or any property on which any | ||||||
19 | streetgang-related activity takes place.
| ||||||
20 | (65 ILCS 5/11-20-17 new) | ||||||
21 | Sec. 11-20-17. Care for vacant and abandoned buildings. The | ||||||
22 | corporate authorities of each municipality may (i) provide for | ||||||
23 | property maintenance required to correct violations of | ||||||
24 | municipal vacant and abandoned property rules, regulations, | ||||||
25 | and ordinances that would fall within those rules, regulations, |
| |||||||
| |||||||
1 | and ordinances contemplated by Section 11-20-15, when the | ||||||
2 | owners of real estate refuse or neglect to correct such | ||||||
3 | violations and (ii) collect from the owners of private property | ||||||
4 | the reasonable cost thereof. This cost, including any | ||||||
5 | associated fees and other costs related to the enforcement of | ||||||
6 | this Section, is a lien upon the real estate affected, superior | ||||||
7 | to all subsequent liens and encumbrances, except tax liens; | ||||||
8 | provided that within 60 days after such cost and expense is | ||||||
9 | incurred the municipality, or person performing the service by | ||||||
10 | authority of the municipality, in that person's own name, file | ||||||
11 | notice of lien in the office of the recorder in the county in | ||||||
12 | which the real estate is located or in the office of the | ||||||
13 | Registrar of Titles of the county if the real estate affected | ||||||
14 | is registered under the Torrens system. The notice shall | ||||||
15 | consist of a sworn statement setting out (i) a description of | ||||||
16 | the real estate sufficient for identification thereof, (ii) the | ||||||
17 | amount of money representing the cost and expense incurred or | ||||||
18 | payable for the service, and (iii) the date or dates when the | ||||||
19 | cost and expense was incurred by the municipality. However, the | ||||||
20 | lien of the municipality shall not be valid as to any purchaser | ||||||
21 | whose rights in and to the real estate have arisen subsequent | ||||||
22 | to the property maintenance and prior to the filing of such | ||||||
23 | notice. Upon payment of the cost and expense by the owner of or | ||||||
24 | persons interested in the property after notice of lien has | ||||||
25 | been filed, the lien shall be released by the municipality or | ||||||
26 | person in whose name the lien has been filed and the release |
| |||||||
| |||||||
1 | may be filed of record as in the case of filing notice of lien. | ||||||
2 | The lien may be enforced by proceedings to foreclose as in case | ||||||
3 | of mortgages or mechanics' liens. An action to foreclose this | ||||||
4 | lien shall be commenced within 2 years after the date of filing | ||||||
5 | notice of lien.
| ||||||
6 | Section 75. The Code of Civil Procedure is amended by | ||||||
7 | adding Section 15-1503.5 and by changing Section 15-1508 as | ||||||
8 | follows:
| ||||||
9 | (735 ILCS 5/15-1503.5 new) | ||||||
10 | Sec. 15-1503.5. Notice of foreclosure to municipalities; | ||||||
11 | servicer duties. | ||||||
12 | (a) The municipality within the boundaries of which the | ||||||
13 | property is located shall be provided notice of foreclosure; | ||||||
14 | and all parties shall include the clerk of that municipality in | ||||||
15 | any mailings or notices associated with foreclosure | ||||||
16 | proceedings concerning property within the municipality's | ||||||
17 | boundaries. All notices must be sent by registered or certified | ||||||
18 | mail. The municipality shall not be joined as a party unless | ||||||
19 | the municipality is joined as a party under other provisions of | ||||||
20 | this Section. | ||||||
21 | When notice of foreclosure is sent to a municipality, it | ||||||
22 | shall include (i) the names of all plaintiffs and the case | ||||||
23 | number, (ii) the court in which the action was brought, (iii) | ||||||
24 | the names of title holders of record, (iv) a legal description |
| |||||||
| |||||||
1 | of the real estate sufficient to identify it with reasonable | ||||||
2 | certainty, (v) a common address or description of the location | ||||||
3 | of the real estate, (vi) identification of the mortgage sought | ||||||
4 | to be foreclosed, (vii) the name, address, and phone number of | ||||||
5 | the servicer, servicer's agent, or servicer's representative, | ||||||
6 | and (viii) the name of a natural person, 21 years of age or | ||||||
7 | older, who maintains a permanent residence in Illinois and who | ||||||
8 | can be contacted by the municipality to answer questions | ||||||
9 | relating to the maintenance of the property. The notice must be | ||||||
10 | sent within 10 days after the filing of a notice of foreclosure | ||||||
11 | under Section 15-1503 with the county in which the mortgaged | ||||||
12 | real estate is located. | ||||||
13 | If, before a foreclosure sale is completed, there is a | ||||||
14 | change in any of the relevant required information, such as | ||||||
15 | name, phone number, agent, or local representative, then new | ||||||
16 | notice must be sent to the municipality informing the | ||||||
17 | municipality of the change. The notice must be sent within 30 | ||||||
18 | days of the change. | ||||||
19 | (b) Servicers have the following duties in replying to | ||||||
20 | municipal inquiries: | ||||||
21 | (1) In general. If any servicer of a loan receives a | ||||||
22 | qualified written request from a municipality for | ||||||
23 | information relating to the maintenance of the property | ||||||
24 | covered by the loan, the servicer shall provide a written | ||||||
25 | response acknowledging the receipt of the correspondence | ||||||
26 | within 20 days (excluding public holidays, Saturdays, and |
| |||||||
| |||||||
1 | Sundays) unless the action requested is taken within that | ||||||
2 | period. | ||||||
3 | (2) Qualified written request. For the purposes of this | ||||||
4 | subsection, a qualified written request shall be a written | ||||||
5 | correspondence that includes, or otherwise enables the | ||||||
6 | servicer to identify, the name and account of the borrower. | ||||||
7 | (3) Action with respect to inquiry. Not later than 60 | ||||||
8 | days (excluding legal public holidays, Saturdays, and | ||||||
9 | Sundays) after the receipt from any municipality of any | ||||||
10 | qualified written request the servicer shall provide the | ||||||
11 | information requested. | ||||||
12 | Any person, partnership, association, corporation, or | ||||||
13 | other entity that violates any provision of this subsection | ||||||
14 | commits a business offense and shall be fined an amount not to | ||||||
15 | exceed $25,000 by the Commissioner of Banks and Real Estate or | ||||||
16 | a person authorized by the Commissioner, the Office of Banks | ||||||
17 | and Real Estate Act, or this Act to act in the Commissioner's | ||||||
18 | stead. | ||||||
19 | (c) For the purposes of this Section, the term "servicer" | ||||||
20 | means the person responsible for servicing of a loan. The term | ||||||
21 | includes the person who makes or holds a loan if that person | ||||||
22 | also services the loan. | ||||||
23 | For the purposes of this Section, the term "servicing" | ||||||
24 | means the collection or remittance or the right or obligation | ||||||
25 | to collect or remit for any lender, noteowner, noteholder, or | ||||||
26 | for a licensee's own account, of payments, interest, principal, |
| |||||||
| |||||||
1 | and trust items such as hazard insurance and taxes on a | ||||||
2 | residential mortgage loan in accordance with the terms of the | ||||||
3 | residential mortgage loan; and includes loan payment | ||||||
4 | follow-up, delinquency loan follow-up, loan analysis, and any | ||||||
5 | notifications to the borrower that are necessary to enable the | ||||||
6 | borrower to keep the loan current and in good standing.
| ||||||
7 | (735 ILCS 5/15-1508) (from Ch. 110, par. 15-1508)
| ||||||
8 | Sec. 15-1508. Report of Sale and Confirmation of Sale.
| ||||||
9 | (a) Report. | ||||||
10 | (1) The person conducting the sale shall promptly make | ||||||
11 | a report to
the court, which report shall include a copy of | ||||||
12 | all receipts and, if any,
certificate of sale. | ||||||
13 | (2) The person conducting the sale shall promptly make | ||||||
14 | a report to the municipality, which report shall include | ||||||
15 | the name of the party purchasing the property if the | ||||||
16 | property is sold, or the name of the resulting | ||||||
17 | property-holding entity if there is no sale. Such a report | ||||||
18 | must be sent by registered or certified mail within 30 days | ||||||
19 | after the sale proceeding.
| ||||||
20 | (b) Hearing. Upon motion and notice in accordance with | ||||||
21 | court rules
applicable to motions generally, which motion shall | ||||||
22 | not be made prior to
sale, the court shall conduct a hearing to
| ||||||
23 | confirm the sale. Unless the court finds that (i) a notice | ||||||
24 | required in
accordance with subsection (c) of Section 15-1507 | ||||||
25 | was not given, (ii) the
terms of sale were unconscionable, |
| |||||||
| |||||||
1 | (iii) the sale was conducted
fraudulently or (iv) that justice | ||||||
2 | was otherwise not done, the court shall
then enter an order | ||||||
3 | confirming the sale. The confirmation order may
also:
| ||||||
4 | (1) approve the mortgagee's fees and costs arising | ||||||
5 | between the entry of
the judgment of foreclosure and the | ||||||
6 | confirmation hearing, those costs and
fees to be allowable | ||||||
7 | to the same extent as provided in the note and mortgage
and | ||||||
8 | in Section 15-1504;
| ||||||
9 | (2) provide for a personal judgment against any party | ||||||
10 | for a deficiency;
and
| ||||||
11 | (3) determine the priority of the judgments of parties | ||||||
12 | who deferred proving
the priority pursuant to subsection | ||||||
13 | (h) of Section 15-1506, but
the court shall not
defer | ||||||
14 | confirming the sale pending the determination of such | ||||||
15 | priority.
| ||||||
16 | (b-5) Notice with respect to residential real estate. With | ||||||
17 | respect to residential real estate, the notice required under | ||||||
18 | subsection (b) of this Section shall be sent to the mortgagor | ||||||
19 | even if the mortgagor has previously been held in default. In | ||||||
20 | the event the mortgagor has filed an appearance, the notice | ||||||
21 | shall be sent to the address indicated on the appearance. In | ||||||
22 | all other cases, the notice shall be sent to the mortgagor at | ||||||
23 | the common address of the foreclosed property. The notice shall | ||||||
24 | be sent by first class mail. Unless the right to possession has | ||||||
25 | been previously terminated by the court, the notice shall | ||||||
26 | include the following language in 12-point boldface |
| |||||||
| |||||||
1 | capitalized type: | ||||||
2 | IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO | ||||||
3 | REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF | ||||||
4 | POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE | ||||||
5 | ILLINOIS MORTGAGE FORECLOSURE LAW. | ||||||
6 | (c) Failure to Give Notice. If any sale is held without | ||||||
7 | compliance with
subsection (c) of Section 15-1507 of this | ||||||
8 | Article, any party entitled to
the notice provided for in | ||||||
9 | paragraph (3) of that subsection
(c) who was not so notified | ||||||
10 | may, by motion supported by affidavit
made prior to | ||||||
11 | confirmation of such sale, ask the court which entered the
| ||||||
12 | judgment to set aside the sale, provided that such party shall | ||||||
13 | guarantee or
secure by bond a bid equal to the successful bid | ||||||
14 | at the prior sale. Any
subsequent sale is subject to the same | ||||||
15 | notice requirement as the original sale.
| ||||||
16 | (d) Validity of Sale. Except as provided in subsection (c) | ||||||
17 | of Section
15-1508, no sale under this Article shall be held | ||||||
18 | invalid or be set aside
because of any defect in the notice | ||||||
19 | thereof or in the publication of the
same, or in the | ||||||
20 | proceedings of the officer conducting the sale, except upon
| ||||||
21 | good cause shown in a hearing pursuant to subsection (b) of | ||||||
22 | Section
15-1508. At any time after a sale has occurred, any | ||||||
23 | party entitled to
notice under paragraph (3) of subsection (c) | ||||||
24 | of Section 15-1507 may recover
from the mortgagee any damages | ||||||
25 | caused by the mortgagee's failure to comply
with such paragraph | ||||||
26 | (3). Any party who recovers damages in a judicial
proceeding |
| |||||||
| |||||||
1 | brought under this subsection may also recover from the
| ||||||
2 | mortgagee the reasonable expenses of litigation, including | ||||||
3 | reasonable attorney's fees.
| ||||||
4 | (e) Deficiency Judgment. In any order confirming a sale | ||||||
5 | pursuant to the
judgment of foreclosure, the court shall also | ||||||
6 | enter a personal judgment
for deficiency against any party (i) | ||||||
7 | if otherwise authorized and (ii) to
the extent requested in the | ||||||
8 | complaint and proven upon presentation of the
report of sale in | ||||||
9 | accordance with Section 15-1508. Except as otherwise provided
| ||||||
10 | in this Article, a judgment may be entered for any balance of | ||||||
11 | money that
may be found due to the plaintiff, over and above | ||||||
12 | the proceeds of the sale
or sales, and enforcement may be had | ||||||
13 | for the collection of such balance,
the same as when the | ||||||
14 | judgment is solely for the payment of money. Such
judgment may | ||||||
15 | be entered, or enforcement had,
only in cases where personal | ||||||
16 | service has been had upon the
persons personally liable for the | ||||||
17 | mortgage indebtedness, unless they have
entered their | ||||||
18 | appearance in the foreclosure action.
| ||||||
19 | (f) Satisfaction. Upon confirmation of the sale, the
| ||||||
20 | judgment stands satisfied to the extent of the sale price less | ||||||
21 | expenses and
costs. If the order confirming the sale includes a | ||||||
22 | deficiency judgment, the
judgment shall become a lien in the | ||||||
23 | manner of any other
judgment for the payment of money.
| ||||||
24 | (g) The order confirming the sale shall include, | ||||||
25 | notwithstanding any
previous orders awarding possession during | ||||||
26 | the pendency of the foreclosure, an
award to the purchaser of |
| |||||||
| |||||||
1 | possession of the mortgaged real estate, as of the
date 30 days | ||||||
2 | after the entry of the order, against the
parties to the | ||||||
3 | foreclosure whose interests have been terminated.
| ||||||
4 | An order of possession authorizing the removal of a person | ||||||
5 | from possession
of the mortgaged real estate shall be entered | ||||||
6 | and enforced only against those
persons personally
named as | ||||||
7 | individuals in the complaint or the petition under subsection | ||||||
8 | (h)
of Section 15-1701 and in the order of possession and shall
| ||||||
9 | not be entered and enforced against any person who is only | ||||||
10 | generically
described as an
unknown owner or nonrecord claimant | ||||||
11 | or by another generic designation in the
complaint.
| ||||||
12 | Notwithstanding the preceding paragraph, the failure to | ||||||
13 | personally
name,
include, or seek an award of
possession of the | ||||||
14 | mortgaged real estate against a person in the
confirmation | ||||||
15 | order shall not abrogate any right that the purchaser may have | ||||||
16 | to
possession of the mortgaged real estate and to maintain a | ||||||
17 | proceeding against
that person for
possession under Article 9 | ||||||
18 | of this Code or subsection (h) of Section 15-1701;
and | ||||||
19 | possession against a person
who (1) has not been personally | ||||||
20 | named as a party to the
foreclosure and (2) has not been | ||||||
21 | provided an opportunity to be heard in the
foreclosure | ||||||
22 | proceeding may be sought only by maintaining a
proceeding under | ||||||
23 | Article 9 of this
Code or subsection (h) of Section 15-1701.
| ||||||
24 | (Source: P.A. 95-826, eff. 8-14-08.)
|