HB0217 Enrolled LRB095 04358 DRH 24401 b

1     AN ACT concerning transportation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Vehicle Code is amended by changing
5 Sections 3-113 and 3-202 as follows:
 
6     (625 ILCS 5/3-113)  (from Ch. 95 1/2, par. 3-113)
7     Sec. 3-113. Transfer to or from dealer; records.
8     (a) After a dealer buys a vehicle and holds it for resale,
9 the dealer must procure the certificate of title from the owner
10 or the lienholder. The dealer may hold the certificate until he
11 or she transfers the vehicle to another person. Upon
12 transferring the vehicle to another person, the dealer shall
13 promptly and within 20 days execute the assignment and warranty
14 of title by a dealer, showing the names and addresses of the
15 transferee and of any lienholder holding a security interest
16 created or reserved at the time of the resale, in the spaces
17 provided therefor on the certificate or as the Secretary of
18 State prescribes, and mail or deliver the certificate to the
19 Secretary of State with the transferee's application for a new
20 certificate, except as provided in Section 3-117.2. A dealer
21 has complied with this Section if the date of the mailing of
22 the certificate, as indicated by the postmark, is within 20
23 days of the date on which the vehicle was transferred to

 

 

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1 another person.
2     (b) The Secretary of State may decline to process any
3 application for a transfer of an interest in a vehicle if any
4 fees or taxes due under this Code from the transferor or the
5 transferee have not been paid upon reasonable notice and
6 demand.
7     (c) Any person who violates this Section shall be guilty of
8 a petty offense.
9 (Source: P.A. 94-239, eff. 1-1-06.)
 
10     (625 ILCS 5/3-202)  (from Ch. 95 1/2, par. 3-202)
11     Sec. 3-202. Perfection of security interest.
12     (a) Unless excepted by Section 3-201, a security interest
13 in a vehicle of a type for which a certificate of title is
14 required is not valid against subsequent transferees or
15 lienholders of the vehicle unless perfected as provided in this
16 Act.
17     (b) A security interest is perfected by the delivery to the
18 Secretary of State of the existing certificate of title, if
19 any, an application for a certificate of title containing the
20 name and address of the lienholder and the required fee. The
21 security interest is perfected as of the time of its creation
22 if the delivery to the Secretary of State is completed within
23 30 21 days after the creation of the security interest or
24 receipt by the new lienholder of the existing certificate of
25 title from a prior lienholder or licensed dealer, otherwise as

 

 

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1 of the time of the delivery.
2     (c) If a vehicle is subject to a security interest when
3 brought into this State, the validity of the security interest
4 is determined by the law of the jurisdiction where the vehicle
5 was when the security interest attached, subject to the
6 following:
7         1. If the parties understood at the time the security
8     interest attached that the vehicle would be kept in this
9     State and it was brought into this State within 30 days
10     thereafter for purposes other than transportation through
11     this State, the validity of the security interest in this
12     State is determined by the law of this State.
13         2. If the security interest was perfected under the law
14     of the jurisdiction where the vehicle was when the security
15     interest attached, the following rules apply:
16             (A) If the name of the lienholder is shown on an
17         existing certificate of title issued by that
18         jurisdiction, his security interest continues
19         perfected in this State.
20             (B) If the name of the lienholder is not shown on
21         an existing certificate of title issued by that
22         jurisdiction, a security interest may be perfected by
23         the lienholder delivering to the Secretary of State the
24         prescribed notice and by payment of the required fee.
25         Such security interest is perfected as of the time of
26         delivery of the prescribed notice and payment of the

 

 

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1         required fee.
2         3. If the security interest was not perfected under the
3     law of the jurisdiction where the vehicle was when the
4     security interest attached, it may be perfected in this
5     State; in that case perfection dates from the time of
6     perfection in this State.
7         4. A security interest may be perfected under paragraph
8     3 of this subsection either as provided in subsection (b)
9     or by the lienholder delivering to the Secretary of State a
10     notice of security interest in the form the Secretary of
11     State prescribes and the required fee.
12 (Source: P.A. 91-893, eff. 7-6-00.)