Bill Text: IL HB1337 | 2011-2012 | 97th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Conveyances Act. Provides that notwithstanding any other provision of the Act that concerns the form of a mortgage, no person may challenge the validity of or the priority of an otherwise lawfully executed and recorded mortgage solely on the basis that the rate of interest was not expressed in the mortgage.

Spectrum: Bipartisan Bill

Status: (Failed) 2013-01-08 - Session Sine Die [HB1337 Detail]

Download: Illinois-2011-HB1337-Introduced.html

---

97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB1337 Introduced , by Rep. Brandon W. Phelps SYNOPSIS AS INTRODUCED:
765 ILCS 5/11 from Ch. 30, par. 10
Amends the Conveyances Act. Provides that notwithstanding any other provision of the Act that concerns the form of a mortgage, no person may challenge the validity of or the priority of an otherwise lawfully executed and recorded mortgage solely on the basis that the rate of interest was not expressed in the mortgage.
LRB097 05449 AJO 45507 b
A BILL FOR
HB1337 LRB097 05449 AJO 45507 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Conveyances Act is amended by changing
Section 11 as follows:
(765 ILCS 5/11) (from Ch. 30, par. 10)
Sec. 11. (a) Mortgages of lands may be substantially in the
following form:
The Mortgagor (here insert name or names), mortgages and
warrants to (here insert name or names of mortgagee or
mortgagees), to secure the payment of (here recite the nature
and amount of indebtedness, showing when due and the rate of
interest, and whether secured by note or otherwise), the
following described real estate (here insert description
thereof), situated in the County of ...., in the State of
Illinois.
Dated (insert date).
(signature of mortgagor or mortgagors)
The names of the parties shall be typed or printed below
the signatures. Such form shall have a blank space of 3 1/2
inches by 3 1/2 inches for use by the recorder. However, the
failure to comply with the requirement that the names of the

HB1337 - 2 - LRB097 05449 AJO 45507 b
parties be typed or printed below the signatures and that the
form have a blank space of 3 1/2 inches by 3 1/2 inches for use
by the recorder shall not affect the validity and effect of
such form.
Such mortgage, when otherwise properly executed, shall be
deemed and held a good and sufficient mortgage in fee to secure
the payment of the moneys therein specified; and if the same
contains the words "and warrants," the same shall be construed
the same as if full covenants of ownership, good right to
convey against incumbrances of quiet enjoyment and general
warranty, as expressed in Section 9 of this Act were fully
written therein; but if the words "and warrants" are omitted,
no such covenants shall be implied. When the grantor or
grantors in such deed or mortgage for the conveyance of any
real estate desires to release or waive his, her or their
homestead rights therein, they or either of them may release or
waive the same by inserting in the form of deed or mortgage (as
the case may be), provided in Sections 9, 10 and 11, after the
words "State of Illinois," in substance the following words,
"hereby releasing and waiving all rights under and by virtue of
the homestead exemption laws of this State."
Mortgages securing "reverse mortgage" loans shall be
subject to this Section except where requirements concerning
the definiteness of the term and amount of indebtedness
provisions of a mortgage would be inconsistent with the Acts
authorizing "reverse mortgage" loans, or rules and regulations

HB1337 - 3 - LRB097 05449 AJO 45507 b
promulgated under those Acts.
Mortgages securing "revolving credit" loans shall be
subject to this Section.
(b) Notwithstanding any provision of subsection (a) of this
Section, no person may challenge the validity or priority of an
otherwise lawfully executed and recorded mortgage solely on the
basis that the rate of interest was not expressed in the
recorded mortgage instrument.
(Source: P.A. 91-357, eff. 7-29-99.)