101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3058

 

Introduced , by Rep. Sonya M. Harper

 

SYNOPSIS AS INTRODUCED:
 
New Act
735 ILCS 5/15-1701  from Ch. 110, par. 15-1701
735 ILCS 5/15-1702  from Ch. 110, par. 15-1702

    Creates the Abandoned Residential Property Act. Imposes requirements on first lien mortgage holders concerning the inspecting, securing, and maintaining of abandoned residential property. Provides exceptions. Provides that the Department of Financial and Professional Regulation shall maintain a statewide abandoned property registry electronic database. Provides that the Department shall establish and maintain a toll-free hotline that neighbors of residential property that is, or appears to be, abandoned may use to report hazards, blights, or other concerns related to the property. Provides that violations of the provisions may be heard before a hearing officer or a court of competent jurisdiction and that the violations may be enforced by the Secretary of the Department or the municipality where the residential property is located. Provides that if the mortgagee violates the provisions, a civil penalty may be issued in the amount of up to $500 per day per property for each day the violation persisted. Provides rulemaking powers to the Division of Banking of the Department to implement the provisions. Limits home rule powers. Makes conforming changes.


LRB101 10528 LNS 55634 b

HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3058LRB101 10528 LNS 55634 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Abandoned Residential Property Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Abandoned residential property" means property that:
8        (1) has any of the following occur: overgrown or dead
9    vegetation; accumulation of newspapers, circulars, flyers,
10    or mail; past due utility notices, disconnected utilities,
11    or utilities not in use; accumulation of trash, refuse, or
12    other debris; absence of window coverings; one or more
13    boarded, missing, or broken windows; the property is open
14    to casual entry or trespass; or the property has a building
15    or structure that is or appears structurally unsound or has
16    any other condition that presents a potential hazard or
17    danger to the safety of persons;
18        (2) a court or other appropriate State or local
19    governmental entity has formally determined, following due
20    notice to the borrower at the property address and any
21    other known addresses, that such property is vacant and
22    abandoned; or
23        (3) each borrower and owner has separately issued a

 

 

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1    sworn written statement, expressing his or her intent to
2    vacate and abandon the property and an inspection of the
3    property shows no evidence of occupancy to indicate that
4    any person is residing there.
5    "Department" means the Department of Financial and
6Professional Regulation.
7    "Division of Banking" means the Division of Banking of the
8Department of Financial and Professional Regulation.
9    "Secretary" means the Secretary of the Department of
10Financial and Professional Regulation.
 
11    Section 10. Application. Notwithstanding any other
12provision of law to the contrary, any duties and
13responsibilities prescribed by this Act apply only to the first
14lien mortgage holder.
15    This Act does not apply to State or federally chartered
16banks, savings banks, savings and loan associations, or credit
17unions that:
18        (1) originate, own, service, and maintain their
19    mortgages or a portion thereof; and
20        (2) have less than three-tenths of 1% of the total
21    loans in the State that they either originate, own,
22    service, or maintain for the calendar year ending December
23    31 of the calendar year ending 2 years prior to the current
24    calendar year.
25    For any State or federally chartered banks, savings banks,

 

 

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1savings and loan associations, or credit unions that originate,
2own, service, and maintain between three-tenths of 1% and
3five-tenths of 1% of the total loans in the State that they
4either originate, own, service, or maintain for the calendar
5year ending December 31 of the calendar year ending 2 years
6prior to the current calendar year, the application of this Act
7shall be prospective only.
 
8    Section 15. Inspecting, securing, and maintaining
9abandoned residential property.
10    (a) Subject to bankruptcy filings, cease and desist orders,
11threats of violence, or active loss mitigation efforts, within
1290 days of a borrower's delinquency, the lender, assignee, or
13mortgage loan servicer authorized to accept payment of the loan
14shall complete an exterior inspection of the subject property
15to determine occupancy. Thereafter, throughout the delinquency
16of the loan, the lender, assignee, or mortgage loan servicer
17shall conduct an exterior inspection of the property every 25
18to 35 days, at different times of the day.
19    (b) If a borrower is delinquent and subject to property
20inspections pursuant to subsection (a), the lender, assignee,
21or mortgage loan servicer shall secure and maintain the
22residential property pursuant to subsections (c), (d), (e),
23(f), and (g) if the lender, assignee, or mortgage loan servicer
24has a reasonable basis to believe that the residential property
25is abandoned and the lender, assignee, or mortgage loan

 

 

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1servicer is not otherwise restricted from accessing the
2property.
3    (c) Within 7 business days of determining that the property
4is abandoned based on the criteria set forth in subsection (b),
5the lender, assignee, or mortgage loan servicer shall post a
6notice on an easily accessible part of the property that is
7reasonably visible to the borrower, property owner, or
8occupant, and monitor the property (1) for any change in
9occupancy or contact with the borrower, property owner, or
10occupant, and (2) to ensure that the notice remains posted so
11long as the duty to maintain applies. The posted notice shall
12provide the lender's, assignee's, or mortgage loan servicer's
13toll-free number or similar contact information.
14    (d) If the posted notice is not responded to or persists
15for 7 consecutive calendar days without contact with the
16borrower, property owner, or occupant indicating that the
17property is not abandoned, or if an emergent property condition
18that could reasonably damage, destroy, or harm the property
19arises, the lender, assignee, or mortgage loan servicer shall:
20        (1) if the property contains 2 or more points of
21    ingress or egress, replace no more than one door lock to
22    provide subsequent access to the property;
23        (2) secure, replace, or board up broken doors and
24    windows;
25        (3) secure any part of the property that may be deemed
26    an attractive nuisance, including, but not limited to, a

 

 

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1    water feature that could create a drowning risk,
2    refrigerator or freezer units, outbuildings, wells, or
3    septic tanks;
4        (4) respond to government inquiries regarding the
5    condition of the property, subject to restrictions
6    regarding financial privacy; and
7        (5) ensure that the notice required to be posted under
8    subsection (c) remains posted on an easily accessible part
9    of the property that is reasonably visible to the borrower,
10    property owner, or occupant so long as the duty to maintain
11    applies.
12    (e) At no time shall a lender, assignee, or mortgage loan
13servicer remove personal property from the property unless:
14        (1) the personal property poses a significant health
15    and safety issue; or
16        (2) there is an uncontested order to do so by a
17    governmental entity.
18    (f) A lender, assignee, or mortgage loan servicer who has
19determined a property to be abandoned and who has secured the
20same shall take reasonable and necessary actions to maintain
21the property until the earliest of the following events:
22        (1) an occupant of the property has asserted his or her
23    right to occupy the property, or the lender, assignee, or
24    mortgage loan servicer or its agents have received threats
25    of violence;
26        (2) the borrower has filed for bankruptcy;

 

 

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1        (3) a court has ordered the lender, assignee, or
2    mortgage loan servicer to stop any maintenance of the
3    property;
4        (4) a homeowners' association has prevented the
5    lender, assignee, or mortgage loan servicer from gaining
6    access to or maintaining the property;
7        (5) the property has been sold or transferred to a new
8    owner;
9        (6) the lender, assignee, or mortgage loan servicer or
10    investor subject to this Act has released the lien on the
11    property; or
12        (7) the mortgage note has been assigned, transferred,
13    or sold to another lender, assignee, or mortgage loan
14    servicer.
15    (g) Reasonable and necessary actions to maintain the
16property include, but are not limited to:
17        (1) ensuring that the property remains secure pursuant
18    to subsections (d), (e), and (f); and
19        (2) maintaining property in a manner consistent with
20    the standards set forth in Section 15-1200.5 to the extent
21    that the lender, assignee, or mortgage loan servicer is
22    able to obtain necessary or required permits or approvals.
 
23    Section 20. Zip code database; toll-free number.
24    (a) The Department shall maintain a statewide abandoned
25residential property registry electronic database. The

 

 

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1Department may retain a private contractor to administer the
2database for the purposes of satisfying this requirement.
3    The Department, upon written request, shall provide a
4public official of any State district, county, city, town, or
5village with access to information specific to the public
6official's district, county, city, town, or village maintained
7on the database. The Department shall make the database open to
8the public and available on the Department's website.
9    (b) A lender, assignee, or mortgage loan servicer shall
10submit to the Department by December 31, 2020 information
11required by the Secretary about any abandoned residential real
12property that is located in a zip code where there are
13prevalent abandoned residential properties.
14    The information shall, at a minimum, include: (1) the
15current name, address, and contact information for the lender,
16assignee, or mortgage loan servicer responsible for
17maintaining the vacant property; (2) whether a foreclosure
18action has been filed for the property in question, and, if so,
19the date on which the foreclosure action was commenced; and (3)
20the last known address and contact information for the
21mortgagor of record.
22    If any of the information contained in a lender's,
23assignee's, or mortgage loan servicer's initial submission to
24the registry has materially changed since submission, the
25lender, assignee, or mortgage loan servicer shall make an
26amended submission to the registry not later than 30 days after

 

 

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1the lender, assignee, or mortgage loan servicer learns, or
2reasonably should have learned, of the new or changed
3information.
4    (c) The Department shall establish and maintain a toll-free
5hotline that a neighbor of residential property that is, or
6appears to be, abandoned residential property may use to report
7to the Department any hazards, blights, or other concerns
8related to the property. The Department shall include on its
9official public website information about the toll-free
10hotline.
 
11    Section 25. Violations; enforcement.
12    (a) An allegation of a violation of this Act may be heard
13before a hearing officer or a court of competent jurisdiction.
14If the mortgagee or agent of the mortgagee has violated this
15Act, a civil penalty may be imposed by the hearing officer or
16the court in the amount of up to $500 per day per property for
17each day the violation persisted.
18    The Secretary, or his or her designee, may, as appropriate
19and in his or her discretion, pursue any suspected violation of
20this Act. Before taking such action, the Secretary, or his or
21her designee, shall give the lender, assignee, or mortgage loan
22servicer at least 7 days' notice of the violation.
23    The municipality in which the residential property is
24located may file an action to enforce the obligations described
25in this Act in any court of competent jurisdiction after at

 

 

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1least 7 days' notice to the lender, assignee, or mortgage loan
2servicer, unless the property requires emergency repairs to
3address a threat to public health, safety, or welfare, in which
4case the municipality may enter and maintain the property to
5cure the emergency; however, notice shall be provided to the
6lender, assignee, or mortgage loan servicer as soon as
7practicable. Any municipality acting pursuant to this
8subsection may bring an action in any court of competent
9jurisdiction against the lender, assignee, or mortgage loan
10servicer to recover costs incurred as a result of maintaining
11the property. The municipality shall provide the Division of
12Banking with written notice at least 10 days prior to bringing
13an action pursuant to this subsection; however, failure to
14comply with this notice requirement shall not be a defense to
15an allegation in a proceeding brought pursuant to this
16subsection. The authority provided by this subsection is in
17addition to, and is not deemed to diminish or reduce, any
18rights of the parties described in this Act under existing law
19against the mortgagor of the property for failure to maintain
20the property. Any civil penalty imposed pursuant to this
21subsection in an action brought by a municipality shall be
22retained by the municipality.
23    (b) A lender, assignee, or mortgage loan servicer who
24peacefully enters an abandoned property in order to maintain it
25pursuant to this Act shall be immune from liability if the
26lender, assignee, or mortgage loan servicer is making

 

 

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1reasonable efforts to comply with this Act.
2    (c) This Act is subject to federal laws, court orders, and
3investor and insurer guidelines.
4    (d) For all State or federally chartered banks, savings
5banks, savings and loan associations, credit unions, or
6servicers for which the provisions of this Act do not apply,
7any agreement between a State or federally chartered bank,
8savings bank, savings and loan association, credit union, or
9servicer and the Division of Banking that is associated with
10the maintenance and repair of abandoned property shall remain
11in full force and effect for so long as the terms and
12conditions of the agreement remain in effect.
13    (e) The Division of Banking shall adopt any rules necessary
14to implement the terms of this Act, including, but not limited
15to, rules pertaining to the reporting of financial information
16that State or federally chartered banks, savings banks, savings
17and loan associations, or credit unions must provide to
18implement this Act.
 
19    Section 30. Home rule limitations. A home rule unit shall
20not impose a duty to maintain abandoned property in a manner
21inconsistent with the provisions of this Act that are related
22to maintenance as provided under subsections (c), (d), (e),
23(f), and (g) of Section 15, or establish related penalties or
24other monetary obligations, with respect to a State or
25federally chartered bank, savings bank, savings and loan

 

 

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1association, or credit union that originates, owns, services or
2maintains a mortgage related to the property. A home rule unit
3shall not impose a duty to maintain abandoned property upon any
4State or federally chartered bank, savings bank, savings and
5loan association, or credit union that is not subject to this
6Act. This subsection is a limitation under subsection (i) of
7Article VII of the Illinois Constitution on the concurrent
8exercise by home rule units of powers and functions exercised
9by the State.
 
10    Section 35. The Code of Civil Procedure is amended by
11changing Sections 15-1701 and 15-1702 as follows:
 
12    (735 ILCS 5/15-1701)  (from Ch. 110, par. 15-1701)
13    Sec. 15-1701. Right to possession.
14    (a) General. The provisions of this Article shall govern
15the right to possession of the mortgaged real estate during
16foreclosure. Possession under this Article includes physical
17possession of the mortgaged real estate to the same extent to
18which the mortgagor, absent the foreclosure, would have been
19entitled to physical possession. For the purposes of Part 17,
20real estate is residential real estate only if it is
21residential real estate at the time the foreclosure is
22commenced.
23    (b) Pre-Judgment. Prior to the entry of a judgment of
24foreclosure:

 

 

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1        (1) In the case of residential real estate, the
2    mortgagor shall be entitled to possession of the real
3    estate except if (i) the mortgagee shall object and show
4    good cause, (ii) the mortgagee is so authorized by the
5    terms of the mortgage or other written instrument, and
6    (iii) the court is satisfied that there is a reasonable
7    probability that the mortgagee will prevail on a final
8    hearing of the cause, the court shall upon request place
9    the mortgagee in possession. If the residential real estate
10    consists of more than one dwelling unit, then for the
11    purpose of this Part residential real estate shall mean
12    only that dwelling unit or units occupied by persons
13    described in clauses (i), (ii) and (iii) of Section
14    15-1219.
15        (1.5) The mortgagor may take possession of the real
16    estate for the purposes of compliance with the Abandoned
17    Residential Property Act.
18        (2) In all other cases, if (i) the mortgagee is so
19    authorized by the terms of the mortgage or other written
20    instrument, and (ii) the court is satisfied that there is a
21    reasonable probability that the mortgagee will prevail on a
22    final hearing of the cause, the mortgagee shall upon
23    request be placed in possession of the real estate, except
24    that if the mortgagor shall object and show good cause, the
25    court shall allow the mortgagor to remain in possession.
26    (c) Judgment Through 30 Days After Sale Confirmation. After

 

 

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1the entry of a judgment of foreclosure and through the 30th day
2after a foreclosure sale is confirmed:
3        (1) Subsection (b) of Section 15-1701 shall be
4    applicable, regardless of the provisions of the mortgage or
5    other instrument, except that after a sale pursuant to the
6    judgment the holder of the certificate of sale (or, if
7    none, the purchaser at the sale) shall have the mortgagee's
8    right to be placed in possession, with all rights and
9    duties of a mortgagee in possession under this Article.
10        (2) Notwithstanding paragraph (1) of subsection (b)
11    and paragraph (1) of subsection (c) of Section 15-1701,
12    upon request of the mortgagee, a mortgagor of residential
13    real estate shall not be allowed to remain in possession
14    between the expiration of the redemption period and through
15    the 30th day after sale confirmation unless (i) the
16    mortgagor pays to the mortgagee or such holder or
17    purchaser, whichever is applicable, monthly the lesser of
18    the interest due under the mortgage calculated at the
19    mortgage rate of interest applicable as if no default had
20    occurred or the fair rental value of the real estate, or
21    (ii) the mortgagor otherwise shows good cause. Any amounts
22    paid by the mortgagor pursuant to this subsection shall be
23    credited against the amounts due from the mortgagor.
24    (d) After 30 Days After Sale Confirmation. The holder of
25the certificate of sale or deed issued pursuant to that
26certificate or, if no certificate or deed was issued, the

 

 

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1purchaser, except to the extent the holder or purchaser may
2consent otherwise, shall be entitled to possession of the
3mortgaged real estate, as of the date 30 days after the order
4confirming the sale is entered, against those parties to the
5foreclosure whose interests the court has ordered terminated,
6without further notice to any party, further order of the
7court, or resort to proceedings under any other statute other
8than this Article. This right to possession shall be limited by
9the provisions governing entering and enforcing orders of
10possession under subsection (g) of Section 15-1508. If the
11holder or purchaser determines that there are occupants of the
12mortgaged real estate who have not been made parties to the
13foreclosure and had their interests terminated therein, the
14holder or purchaser may bring an eviction proceeding under
15subsection (h) of this Section, if applicable, or under Article
16IX of this Code to terminate the rights of possession of any
17such occupants. The holder or purchaser shall not be entitled
18to proceed against any such occupant under Article IX of this
19Code until after 30 days after the order confirming the sale is
20entered.
21    (e) Termination of Leases. A lease of all or any part of
22the mortgaged real estate shall not be terminated automatically
23solely by virtue of the entry into possession by (i) a
24mortgagee or receiver prior to the entry of an order confirming
25the sale, (ii) the holder of the certificate of sale, (iii) the
26holder of the deed issued pursuant to that certificate, or (iv)

 

 

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1if no certificate or deed was issued, the purchaser at the
2sale.
3    (f) Other Statutes; Instruments. The provisions of this
4Article providing for possession of mortgaged real estate shall
5supersede any other inconsistent statutory provisions. In
6particular, and without limitation, whenever a receiver is
7sought to be appointed in any action in which a foreclosure is
8also pending, a receiver shall be appointed only in accordance
9with this Article. Except as may be authorized by this Article,
10no mortgage or other instrument may modify or supersede the
11provisions of this Article.
12    (g) Certain Leases. Leases of the mortgaged real estate
13entered into by a mortgagee in possession or a receiver and
14approved by the court in a foreclosure shall be binding on all
15parties, including the mortgagor after redemption, the
16purchaser at a sale pursuant to a judgment of foreclosure and
17any person acquiring an interest in the mortgaged real estate
18after entry of a judgment of foreclosure in accordance with
19Sections 15-1402 and 15-1403.
20    (h) Proceedings Against Certain Occupants.
21        (1) The mortgagee-in-possession of the mortgaged real
22    estate under Section 15-1703, a receiver appointed under
23    Section 15-1704, a holder of the certificate of sale or
24    deed, or the purchaser may, at any time during the pendency
25    of the foreclosure and up to 90 days after the date of the
26    order confirming the sale, file a supplemental eviction

 

 

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1    petition against a person not personally named as a party
2    to the foreclosure. This subsection (h) does not apply to
3    any lessee with a bona fide lease of a dwelling unit in
4    residential real estate in foreclosure.
5        (2) The supplemental eviction petition shall name each
6    such occupant against whom an eviction order is sought and
7    state the facts upon which the claim for relief is
8    premised.
9        (3) The petitioner shall serve upon each named occupant
10    the petition, a notice of hearing on the petition, and, if
11    any, a copy of the certificate of sale or deed. The
12    eviction proceeding, including service of the notice of the
13    hearing and the petition, shall in all respects comport
14    with the requirements of Article IX of this Code, except as
15    otherwise specified in this Section. The hearing shall be
16    no less than 21 days from the date of service of the
17    notice.
18        (4) The supplemental petition shall be heard as part of
19    the foreclosure proceeding and without the payment of
20    additional filing fees. An eviction order obtained under
21    this Section shall name each occupant whose interest has
22    been terminated, shall recite that it is only effective as
23    to the occupant so named and those holding under them, and
24    shall be enforceable for no more than 120 days after its
25    entry, except that the 120-day period may be extended to
26    the extent and in the manner provided in Section 9-117 of

 

 

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1    Article IX and except as provided in item (5) of this
2    subsection (h).
3        (5) In a case of foreclosure where the occupant is
4    current on his or her rent, or where timely written notice
5    of to whom and where the rent is to be paid has not been
6    provided to the occupant, or where the occupant has made
7    good-faith efforts to make rental payments in order to keep
8    current, any eviction order must allow the occupant to
9    retain possession of the property covered in his or her
10    rental agreement (i) for 120 days following the notice of
11    the hearing on the supplemental petition that has been
12    properly served upon the occupant, or (ii) through the
13    duration of his or her lease, whichever is shorter,
14    provided that if the duration of his or her lease is less
15    than 30 days from the date of the order, the order shall
16    allow the occupant to retain possession for 30 days from
17    the date of the order. A mortgagee in possession, receiver,
18    holder of a certificate of sale or deed, or purchaser at
19    the judicial sale, who asserts that the occupant is not
20    current in rent, shall file an affidavit to that effect in
21    the supplemental petition proceeding. If the occupant has
22    been given timely written notice of to whom and where the
23    rent is to be paid, this item (5) shall only apply if the
24    occupant continues to pay his or her rent in full during
25    the 120-day period or has made good-faith efforts to pay
26    the rent in full during that period.

 

 

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1        (6) The court records relating to a supplemental
2    eviction petition filed under this subsection (h) against
3    an occupant who is entitled to notice under item (5) of
4    this subsection (h), or relating to an eviction action
5    brought against an occupant who would have lawful
6    possession of the premises but for the foreclosure of a
7    mortgage on the property, shall be ordered sealed and shall
8    not be disclosed to any person, other than a law
9    enforcement officer or any other representative of a
10    governmental entity, except upon further order of the
11    court.
12    (i) Termination of bona fide leases. The holder of the
13certificate of sale, the holder of the deed issued pursuant to
14that certificate, or, if no certificate or deed was issued, the
15purchaser at the sale shall not terminate a bona fide lease of
16a dwelling unit in residential real estate in foreclosure
17except pursuant to Article IX of this Code.
18(Source: P.A. 100-173, eff. 1-1-18.)
 
19    (735 ILCS 5/15-1702)  (from Ch. 110, par. 15-1702)
20    Sec. 15-1702. Specific Rules of Possession. (a)
21Mortgagee's Rights. Except as necessary to comply with the
22Abandoned Residential Property Act, no No mortgagee shall be
23required to take possession of the mortgaged real estate,
24whether upon application made by any other party or otherwise.
25Whenever a mortgagee entitled to possession so requests, the

 

 

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1court shall appoint a receiver. The failure of a mortgagee to
2request possession or appointment of a receiver shall not
3preclude a mortgagee otherwise entitled to possession from
4making such a request at any future time. The appointment of a
5receiver shall not preclude a mortgagee from thereafter seeking
6to exercise such mortgagee's right to be placed in possession.
7    (b) Designation of Receivers. Whenever a receiver is to be
8appointed, the mortgagee shall be entitled to designate the
9receiver. If the mortgagor or any other party to the
10foreclosure objects to any such designation or designations and
11shows good cause, or the court disapproves the designee, the
12mortgagee in such instance shall be entitled to make another
13designation.
14    (c) Rights of Mortgagee Having Priority. If a mortgagee
15having priority objects to the proposed possession by a
16subordinate mortgagee or by a receiver designated by the
17subordinate mortgagee, upon entry of a finding in accordance
18with subsection (d) of Section 15-1702 the court shall instead
19place that objecting mortgagee in possession or, if a receiver
20is to be designated in accordance with subsection (b) of
21Section 15-1702, allow the designation of the receiver to be
22made by that objecting mortgagee.
23    (d) Removal of Mortgagee in Possession. A mortgagee placed
24in possession shall not be removed from possession, and no
25receiver or other mortgagee shall be placed in possession
26except upon (i) the mortgagee's misconduct, death, legal

 

 

HB3058- 20 -LRB101 10528 LNS 55634 b

1disability or other inability to act, (ii) appointment of a
2receiver in accordance with subsection (a) of Section 15-1704
3or (iii) a showing of good cause by a mortgagee having
4priority. A receiver shall not be removed solely on account of
5being designated by a mortgagee later determined not to have
6priority.
7    (e) Determination of Priority. If the court is required to
8determine priority for the purposes of subsection (c) of
9Section 15-1702, a new determination shall be made each time a
10mortgagee is to be placed in possession or a receiver is to be
11appointed and shall be an interim determination which shall not
12preclude the court from making a contrary determination later
13in the foreclosure. If the court subsequently shall make such a
14contrary determination, a mortgagee in possession or acting
15receiver shall not be removed except in accordance with Part 17
16of this Article.
17    (f) Rights to Crops. With respect to any crops growing or
18to be grown on the mortgaged real estate, the rights of a
19holder of any obligation secured by a collateral assignment of
20beneficial interest in a land trust, the rights of a mortgagee
21in possession, or the rights of a receiver, including rights by
22virtue of an equitable lien, shall be subject to a security
23interest properly perfected pursuant to Article 9 of the
24Uniform Commercial Code, where the holder of a collateral
25assignment, mortgagee in possession, or receiver becomes
26entitled to crops by obtaining possession on or after the

 

 

HB3058- 21 -LRB101 10528 LNS 55634 b

1effective date of this Amendatory Act of 1988.
2(Source: P.A. 85-1427.)