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| | SB3358 Engrossed | | LRB097 18619 HEP 63853 b |
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| 1 | | AN ACT concerning transportation.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Vehicle Code is amended by changing |
| 5 | | Section 3-109 as follows:
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| 6 | | (625 ILCS 5/3-109) (from Ch. 95 1/2, par. 3-109)
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| 7 | | Sec. 3-109. Registration without certificate of title; |
| 8 | | bond. If the Secretary of State is not satisfied as to the |
| 9 | | ownership of the
vehicle or that there are no undisclosed |
| 10 | | security interests in it, the
Secretary of State may register |
| 11 | | the vehicle but shall either:
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| 12 | | (a) Withhold issuance of a certificate of title until the |
| 13 | | applicant
presents documents reasonably sufficient to satisfy |
| 14 | | the Secretary of
State as to the applicant's ownership of the |
| 15 | | vehicle and that there are
no undisclosed security interests in |
| 16 | | it; or
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| 17 | | (b) As a condition of issuing a certificate of title, |
| 18 | | require the
applicant to file with the Secretary of State a |
| 19 | | bond in the form
prescribed by the Secretary of State and |
| 20 | | executed by the applicant, and
either accompanied by the |
| 21 | | deposit of cash with the Secretary of State or
also executed by |
| 22 | | a person authorized to conduct a surety business in
this State. |
| 23 | | The bond shall be in an amount equal to one and one-half
times |
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| 1 | | the value of the vehicle as determined by the Secretary of |
| 2 | | State
and conditioned to indemnify any prior owner and |
| 3 | | lienholder and any
subsequent purchaser of the vehicle or |
| 4 | | person acquiring any security
interest in it, and their |
| 5 | | respective successors in interest, against any
expense, loss or |
| 6 | | damage, including reasonable attorney's fees, by reason
of the |
| 7 | | issuance of the certificate of title of the vehicle or on |
| 8 | | account
of any defect in or undisclosed security interest upon |
| 9 | | the right, title
and interest of the applicant in and to the |
| 10 | | vehicle. Any such interested
person has a right of action to |
| 11 | | recover on the bond for any breach of
its conditions, but the |
| 12 | | aggregate liability of the surety to all persons
shall not |
| 13 | | exceed the amount of the bond. The bond, and any deposit
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| 14 | | accompanying it, shall be returned at the end of three (3) |
| 15 | | years or
prior thereto if the vehicle is no longer registered |
| 16 | | in this State and
the currently valid certificate of title is |
| 17 | | surrendered to the Secretary
of State, unless the Secretary of |
| 18 | | State has been notified of the
pendency of an action to recover |
| 19 | | on the bond. The Secretary shall waive the requirements of this |
| 20 | | subsection (b) for the owner of an antique vehicle manufactured |
| 21 | | more than 50 years before the date the application for a |
| 22 | | certificate of title is made.
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| 23 | | Security deposited as a bond hereunder shall be placed by |
| 24 | | the
Secretary of State in the custody of the State Treasurer.
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| 25 | | (c) During July, annually, the Secretary shall compile a |
| 26 | | list of all bonds
on deposit, pursuant to this Section, for |
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| 1 | | more than 3 years and concerning
which he has received no |
| 2 | | notice as to the pendency of any judicial proceeding
that could |
| 3 | | affect the disposition thereof. Thereupon, he shall promptly
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| 4 | | send a notice by certified mail to the last known address of |
| 5 | | each depositor
advising him that his bond will be subject to |
| 6 | | escheat to the State of Illinois
if not claimed within 30 days |
| 7 | | after the mailing date of such notice. At
the expiration of |
| 8 | | such time, the Secretary of State shall file with the
State |
| 9 | | Treasurer an order directing the transfer of such deposit to |
| 10 | | the Road
Fund in the State Treasury. Upon receipt of such |
| 11 | | order, the State Treasurer
shall make such transfer, after |
| 12 | | converting to cash any other type of security.
Thereafter any |
| 13 | | person having a legal claim against such deposit may enforce
it |
| 14 | | by appropriate proceedings in the Court of Claims subject to |
| 15 | | the limitations
prescribed for such Court. At the expiration of |
| 16 | | such limitation period
such deposit shall escheat to the State |
| 17 | | of Illinois.
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| 18 | | (Source: P.A. 81-1458.)
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| 19 | | Section 99. Effective date. This Act takes effect upon |
| 20 | | becoming law.
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