Bill Text: IL SB1545 | 2021-2022 | 102nd General Assembly | Chaptered

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Bill Title: Amends the Illinois Vehicle Code. Provides that a repossessed vehicle, fleet vehicle, or flood vehicle that has been damaged in excess of 50% (instead of 33 1/3%) of its fair market value shall be considered to be salvage. Provides that a flood vehicle that has sustained damage greater than 50% (rather than 33 1/3%) of its fair market value with that damage shall be required to complete a successful inspection before being issued a new certificate of title.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2021-08-06 - Public Act . . . . . . . . . 102-0319 [SB1545 Detail]

Download: Illinois-2021-SB1545-Chaptered.html

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Public Act 102-0319
SB1545 Enrolled LRB102 15159 RAM 20514 b
AN ACT concerning transportation.
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 3-114, 3-117.1, and 3-301 as follows:
(625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)
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
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.
(d-5) If the interest of an owner passes to the owner's
spouse or if the spouse otherwise acquires ownership of the
vehicle, then the transferee shall promptly mail or deliver to
the Secretary of State, proof of (i) the owner's death; (ii)
the transfer or acquisition of ownership; and (iii) proof of
the marital relationship between the owner and the transferee,
along with the last certificate of title, if available, and an
application for certificate of title along with the
appropriate fees and taxes, if applicable. The application
shall be made within 180 days after the death of the owner.
(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
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 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 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
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 50% 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 50% 33 1/3% of its fair market value,
the lienholder shall make application for a salvage
certificate under Section 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
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
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
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 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
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 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 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 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
(6) references to judicial process and court orders in
subsection (f-10) of this Section do not include
bankruptcy proceedings or orders.
(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
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. 99-260, eff. 1-1-16.)
(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 and Section 3-117.3 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. The owner of a junk vehicle
is not required to surrender the certificate of title under
this subsection if (i) there is no lienholder on the
certificate of title or (ii) the owner of the junk vehicle has
a valid lien release from the lienholder releasing all
interest in the vehicle and the owner applying for the junk
certificate matches the current record on the certificate of
title file for the 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
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
(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
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 70% 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
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, or a lien arising under Section
18a-501 of this Code 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
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 50% 33 1/3% of its fair market value without such
damage. If the lienholder determines that such vehicle is
damaged in excess of 50% 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 50% 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 50% 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 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 50% 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 50%
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 50% 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 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 50% 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 50% 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 any licensed rebuilder, repairer, new or used
vehicle dealer, or remittance agent has submitted an
application for title to a vehicle (other than an
application for title to a rebuilt vehicle) that he or she
knows or reasonably should have known to have sustained
damages in excess of 50% 33 1/3% of the vehicle's fair
market value without that damage; provided, however, that
any application for a salvage certificate for a vehicle

recovered from theft and acquired from an insurance
company shall be made as required by paragraph (1) of this
subsection (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) Except as provided under subsection (a), 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.
(Source: P.A. 100-104, eff. 11-9-17; 100-956, eff. 1-1-19;
100-1083, eff. 1-1-19; 101-81, eff. 7-12-19.)
(625 ILCS 5/3-301) (from Ch. 95 1/2, par. 3-301)
Sec. 3-301. New certificate of title for rebuilt vehicle.
(a) For vehicles 8 model years of age or newer, the
Secretary of State shall issue a new certificate of title to
any rebuilt vehicle or any vehicle which previously had been
titled as salvage in this State or any other jurisdiction upon
the successful inspection of the vehicle in accordance with
Section 3-308 of this Article.
(b) Vehicles more than 8 model years old shall not be
required to complete a successful inspection required under
Section 3-308 of this Code before being issued a new
certificate of title as provided under this Section.
(c) Vehicles designated as flood vehicles that have
sustained damage greater than 50% 33 1/3% of their fair market
value with that damage shall be required to complete a
successful inspection required under Section 3-308 of this
Code before being issued a new certificate of title provided
under paragraph (5), subsection (b) of Section 3-117.1.
(Source: P.A. 88-685, eff. 1-24-95; 89-669, eff. 1-1-97.)