Sen. Jacqueline Y. Collins

Filed: 5/4/2009

 

 


 

 


 
09600HB3863sam001 LRB096 08541 AJO 26068 a

1
AMENDMENT TO HOUSE BILL 3863

2     AMENDMENT NO. ______. Amend House Bill 3863 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Code of Civil Procedure is amended by
5 changing Sections 15-1701, 15-1703, and 15-1704 and by adding
6 Sections 15-1202.5 and 15-1508.5 as follows:
 
7     (735 ILCS 5/15-1202.5 new)
8     Sec. 15-1202.5. Dwelling unit. For the purposes of Sections
9 15-1508.5, 15-1703, and 15-1704 only, "dwelling unit" means a
10 room or suite of rooms providing complete, independent living
11 facilities for at least one person, including permanent
12 provisions for sanitation, cooking, eating, sleeping, and
13 other activities routinely associated with daily life.
 
14     (735 ILCS 5/15-1508.5 new)
15     Sec. 15-1508.5. Notice by holder or purchaser to known

 

 

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1 occupants of dwelling units of mortgaged real estate.
2     (a) The holder of the certificate of sale or deed issued
3 pursuant to that certificate or, if no certificate or deed was
4 issued, the purchaser, shall:
5         (1) following the judicial sale under Section 15-1507,
6     but no later than 21 days after the confirmation of sale
7     under Section 15-1508, make a good faith effort to
8     ascertain the identities and addresses of all occupants of
9     dwelling units of the mortgaged real estate; and
10         (2) following the order confirming sale under Section
11     15-1508, but no later than 21 days after the order
12     confirming sale, notify all known occupants of dwelling
13     units of the mortgaged real estate that the holder or
14     purchaser has acquired the mortgaged real estate. The
15     notice shall be in writing and shall:
16             (i) identify the occupant being served by the name
17         known to the holder or purchaser;
18             (ii) inform the occupant that the mortgaged real
19         estate at which the dwelling unit is located is the
20         subject of a foreclosure and that control of the
21         mortgaged real estate has changed;
22             (iii) provide the name, address, and telephone
23         number of an individual or entity whom the occupants
24         may contact with concerns about the mortgaged real
25         estate or to request repairs of that property;
26             (iv) include the following language, or language

 

 

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1         that is substantially similar: "This is NOT a notice to
2         vacate the premises. You may wish to contact a lawyer
3         or your local legal aid or housing counseling agency to
4         discuss any rights that you may have."; and
5             (v) include the name of the case, the case number,
6         and the court where the order confirming the sale has
7         been entered.
8     (b) The written notice required by subsection (a) of this
9 Section shall be served by delivering a copy thereof to the
10 known occupant, or by leaving the same with some person of the
11 age of 13 years or upwards who is residing on or in possession
12 of the premises, or by sending a copy of the notice to the
13 known occupant by first-class mail, addressed to the occupant
14 by the name known to the holder or purchaser.
15     (c) In the event that the holder or purchaser ascertains
16 the identity and address of an occupant of a dwelling unit of
17 the mortgaged real estate more than 21 days after the
18 confirmation of sale under Section 15-1508, the holder or
19 purchaser shall provide the notice required by subparagraph (2)
20 of subsection (a) within 7 days of ascertaining the identity
21 and address of the occupant.
22     (d)(i) A holder or purchaser who fails to comply with
23 subsections (a), (b), and (c) may not collect any rent due and
24 owing from a known occupant, or terminate a known occupant's
25 tenancy for non-payment of such rent, until the holder or
26 purchaser has served the notice described in paragraph (2) of

 

 

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1 subsection (a) of this Section upon the known occupant. After
2 providing such notice, the holder or purchaser may collect any
3 and all rent otherwise due and owing the holder or purchaser
4 from the known occupant and may terminate the known occupant's
5 tenancy for non-payment of such rent if the holder or purchaser
6 otherwise has such right to terminate.
7     (ii) An occupant who previously paid rent for the current
8 rental period to the mortgagor, or other entity with the
9 authority to operate, manage, and conserve the mortgaged real
10 estate at the time of payment, shall not be held liable for
11 that rent by the holder or purchaser, and the occupant's
12 tenancy shall not be terminated for non-payment of rent for
13 that rental period.
14     (e) Within 21 days of the confirmation of sale under
15 Section 15-1508, the holder or purchaser shall post a written
16 notice on the primary entrance of each dwelling unit subject to
17 the foreclosure action. This notice shall:
18         (i) inform occupant that the dwelling unit is the
19     subject of a foreclosure action and that control of the
20     mortgaged real estate has changed;
21         (ii) include the following language: "This is NOT a
22     notice to vacate the premises."; and
23         (iii) provide the name, address, and telephone number
24     of the individual or entity whom occupants may contact with
25     concerns about the mortgaged real estate or to request
26     repairs of the property;

 

 

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1     (f)(i) The provisions of subsection (d) of this Section
2 shall be the exclusive remedy for the failure of a holder or
3 purchaser to provide notice to a known occupant under this
4 Section.
5     (ii) This Section shall not abrogate any right that a
6 holder or purchaser may have to possession of the mortgaged
7 real estate and to maintain a proceeding against an occupant of
8 a dwelling unit for possession under Article 9 of this Code or
9 subsection (h) of Section 15-1701.
10     (iii) In the event that the holder or purchaser is a
11 mortgagee in possession of the mortgaged real estate pursuant
12 to Section 15-1703 at the time of the confirmation of sale and
13 has complied with requirements of subsection (a-5) of Section
14 15-1703, the holder or purchaser is excused from the
15 requirements of subsections (a) and (e) of this Section.
16     (iv) A holder or purchaser is not required to provide the
17 notice required by this Section to a mortgagor or party against
18 whom an order of possession has been entered authorizing the
19 removal of the mortgagor or party pursuant to subsection (g) of
20 Section 15-1508.
 
21     (735 ILCS 5/15-1701)  (from Ch. 110, par. 15-1701)
22     Sec. 15-1701. Right to possession.
23     (a) General. The provisions of this Article shall govern
24 the right to possession of the mortgaged real estate during
25 foreclosure. Possession under this Article includes physical

 

 

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1 possession of the mortgaged real estate to the same extent to
2 which the mortgagor, absent the foreclosure, would have been
3 entitled to physical possession. For the purposes of Part 17,
4 real estate is residential real estate only if it is
5 residential real estate at the time the foreclosure is
6 commenced.
7     (b) Pre-Judgment. Prior to the entry of a judgment of
8 foreclosure:
9         (1) In the case of residential real estate, the
10     mortgagor shall be entitled to possession of the real
11     estate except if (i) the mortgagee shall object and show
12     good cause, (ii) the mortgagee is so authorized by the
13     terms of the mortgage or other written instrument, and
14     (iii) the court is satisfied that there is a reasonable
15     probability that the mortgagee will prevail on a final
16     hearing of the cause, the court shall upon request place
17     the mortgagee in possession. If the residential real estate
18     consists of more than one dwelling unit, then for the
19     purpose of this Part residential real estate shall mean
20     only that dwelling unit or units occupied by persons
21     described in clauses (i), (ii) and (iii) of Section
22     15-1219.
23         (2) In all other cases, if (i) the mortgagee is so
24     authorized by the terms of the mortgage or other written
25     instrument, and (ii) the court is satisfied that there is a
26     reasonable probability that the mortgagee will prevail on a

 

 

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

 

 

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1     paid by the mortgagor pursuant to this subsection shall be
2     credited against the amounts due from the mortgagor.
3     (d) After 30 Days After Sale Confirmation. The holder of
4 the certificate of sale or deed issued pursuant to that
5 certificate or, if no certificate or deed was issued, the
6 purchaser, except to the extent the holder or purchaser may
7 consent otherwise, shall be entitled to possession of the
8 mortgaged real estate, as of the date 30 days after the order
9 confirming the sale is entered, against those parties to the
10 foreclosure whose interests the court has ordered terminated,
11 without further notice to any party, further order of the
12 court, or resort to proceedings under any other statute other
13 than this Article. This right to possession shall be limited by
14 the provisions governing entering and enforcing orders of
15 possession under subsection (g) of Section 15-1508. If the
16 holder or purchaser determines that there are occupants of the
17 mortgaged real estate who have not been made parties to the
18 foreclosure and had their interests terminated therein, the
19 holder or purchaser may bring a proceeding under subsection (h)
20 of this Section or under Article 9 of this Code to terminate
21 the rights of possession of any such occupants. The holder or
22 purchaser shall not be entitled to proceed against any such
23 occupant under Article 9 of this Code until after 30 days after
24 the order confirming the sale is entered.
25     (e) Termination of Leases. A lease of all or any part of
26 the mortgaged real estate shall not be terminated automatically

 

 

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

 

 

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1     Section 15-1704, a holder of the certificate of sale or
2     deed, or the purchaser may, at any time during the pendency
3     of the foreclosure and up to 90 days after the date of the
4     order confirming the sale, file a supplemental petition for
5     possession against a person not personally named as a party
6     to the foreclosure. The supplemental petition for
7     possession shall name each such occupant against whom
8     possession is sought and state the facts upon which the
9     claim for relief is premised.
10         (2) The petitioner shall serve upon each named occupant
11     the petition, a notice of hearing on the petition, and, if
12     any, a copy of the certificate of sale or deed. The
13     proceeding for the termination of such occupant's
14     possessory interest, including service of the notice of the
15     hearing and the petition, shall in all respects comport
16     with the requirements of Article 9 of this Code, except as
17     otherwise specified in this Section. The hearing shall be
18     no less than 21 days from the date of service of the
19     notice.
20         (3) The supplemental petition shall be heard as part of
21     the foreclosure proceeding and without the payment of
22     additional filing fees. An order for possession obtained
23     under this Section shall name each occupant whose interest
24     has been terminated, shall recite that it is only effective
25     as to the occupant so named and those holding under them,
26     and shall be enforceable for no more than 90 days after its

 

 

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1     entry, except that the 90-day period may be extended to the
2     extent and in the manner provided in Section 9-117 of
3     Article 9 and except as provided in item (4) of this
4     subsection (h).
5         (4) In a case of foreclosure where the occupant tenant
6     is current on his or her rent, or where timely written
7     notice of to whom and where the rent is to be paid has not
8     been provided to the occupant tenant, or where the occupant
9     tenant has made good-faith efforts to make rental payments
10     in order to keep current, any order of possession must
11     allow the occupant tenant to retain possession of the
12     property covered in his or her rental agreement (i) for 120
13     days following the notice of the hearing on the
14     supplemental petition that has been properly served upon
15     the occupant tenant, or (ii) through the duration of his or
16     her lease, whichever is shorter, provided that if the
17     duration of his or her lease is less than 30 days from the
18     date of the order, the order shall allow the occupant to
19     retain possession for 30 days from the date of the order. A
20     mortgagee in possession, receiver, holder of a certificate
21     of sale or deed, or purchaser at the judicial sale, who
22     asserts that the occupant is not current in rent, shall
23     file an affidavit to that effect in the supplemental
24     petition proceeding. If the occupant tenant has been given
25     timely written notice of to whom and where the rent is to
26     be paid, this item (4) shall only apply if the occupant

 

 

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1     tenant continues to pay his or her rent in full during the
2     120-day period or has made good-faith efforts to pay the
3     rent in full during that period. No
4     mortgagee-in-possession, receiver or holder of a
5     certificate of sale or deed, or purchaser who fails to file
6     a supplemental petition under this subsection during the
7     pendency of a mortgage foreclosure shall file a forcible
8     entry and detainer action against an occupant a tenant of
9     the mortgaged real estate until 90 days after a notice of
10     intent to file such action has been properly served upon
11     the occupant tenant.
12         (5) The court records relating to a supplemental
13     petition for possession filed under this subsection (h)
14     against an occupant a tenant who is entitled to notice
15     under item (4) of this subsection (h), or relating to a
16     forcible entry and detainer action brought against an
17     occupant a tenant who would have lawful possession of the
18     premises but for the foreclosure of a mortgage on the
19     property, shall be ordered sealed and shall not be
20     disclosed to any person, other than a law enforcement
21     officer or any other representative of a governmental
22     entity, except upon further order of the court.
23 (Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08.)
 
24     (735 ILCS 5/15-1703)  (from Ch. 110, par. 15-1703)
25     Sec. 15-1703. Mortgagee in Possession. (a) Powers and

 

 

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1 Duties. A mortgagee placed in possession of the real estate
2 pursuant to Section 15-1701 or Section 15-1702 shall have:
3         (1) such power and authority with respect to the real
4     estate and other property subject to the mortgage,
5     including the right to receive the rents, issues and
6     profits thereof, as may have been conferred upon the
7     mortgagee by the terms of the mortgage or other written
8     instrument authorizing the taking of possession;
9         (2) all other rights and privileges of a mortgagee in
10     possession under law not inconsistent herewith; and
11         (3) the same powers, duties and liabilities as a
12     receiver appointed for the real estate in accordance with
13     this Article. If an order placing a mortgagee in possession
14     is modified, revoked or set aside, the mortgagee shall not
15     be liable for any damages to the extent such damages arise
16     solely out of the fact that the mortgagor was removed from
17     possession or that the mortgagee was placed in possession.
18     (a-5) Notice to occupants.
19         (1) Following the order placing the mortgagee in
20     possession of the mortgaged real estate, but no later than
21     21 days after the entry of such order, the mortgagee in
22     possession shall make a good faith effort to ascertain the
23     identities and addresses of all occupants of dwelling units
24     of the mortgaged real estate.
25         (2) Following the order placing the mortgagee in
26     possession of the mortgaged real estate, but no later than

 

 

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1     21 days after the entry of such order, the mortgagee in
2     possession shall notify all known occupants of dwelling
3     units of the mortgaged real estate that the mortgagee has
4     taken possession of the mortgaged real estate. The notice
5     shall be in writing and shall:
6             (i) identify the occupant being served by the name
7         known to the mortgagee in possession;
8             (ii) inform the occupant that the mortgaged real
9         estate at which the dwelling unit is located is the
10         subject of a foreclosure action and that control of the
11         mortgaged real estate has changed;
12             (iii) provide the name, address, and telephone
13         number of the individual or entity whom occupants may
14         contact with concerns about the mortgaged real estate
15         or to request repairs of that property;
16             (iv) include the following language, or language
17         that is substantially similar: "This is NOT a notice to
18         vacate the premises. You may wish to contact a lawyer
19         or your local legal aid or housing counseling agency to
20         discuss any rights that you may have."; and
21             (v) include the name of the case, the case number,
22         and the court where the foreclosure action is pending.
23         (3) The written notice required by item (2) of this
24     subsection (a-5) shall be served by delivering a copy
25     thereof to the known occupant, or by leaving the same with
26     some person of the age of 13 years or upwards, who is

 

 

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1     residing on or in possession of the premises; or by sending
2     a copy of the notice to the known occupant by first-class
3     mail, addressed to the occupant by the name known to the
4     mortgagee in possession.
5         (4) In the event that a mortgagee in possession
6     ascertains the identity and address of an occupant of a
7     dwelling unit of the mortgaged real estate more than 21
8     days after being placed in possession of the mortgaged real
9     estate pursuant to Section 15-1703, the mortgagee in
10     possession shall provide the notice required by item (2) of
11     this subsection (a-5) within 7 days of ascertaining the
12     identity and address of the occupant.
13         (5)(i) A mortgagee in possession who fails to comply
14     with items (1), (2), (3), and (4) of this subsection (a-5)
15     may not collect any rent due and owing from a known
16     occupant, or terminate a known occupant's tenancy for
17     non-payment of such rent, until the mortgagee in possession
18     has served the notice described in item (2) of this
19     subsection (a-5) upon the known occupant. After providing
20     such notice, the mortgagee in possession may collect any
21     and all rent otherwise due and owing the mortgagee in
22     possession from the known occupant and may terminate the
23     known occupant's tenancy for non-payment of such rent if
24     the mortgagee in possession otherwise has such right to
25     terminate.
26         (ii) An occupant who previously paid rent for the

 

 

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1     current rental period to the mortgagor, or other entity
2     with the authority to operate, manage, and conserve the
3     mortgaged real estate at the time of payment, shall not be
4     held liable for that rent by the mortgagee in possession,
5     and the occupant's tenancy shall not be terminated for
6     non-payment of rent for that rental period.
7         (6) Within 21 days of the order placing the mortgagee
8     in possession of the mortgaged real estate, the mortgagee
9     in possession shall post a written notice on the primary
10     entrance of each dwelling unit subject to the foreclosure
11     action that informs the occupants that the mortgagee in
12     possession is now operating and managing the mortgaged real
13     estate. This notice shall:
14             (i) inform occupant that the dwelling unit is the
15         subject of a foreclosure action and that control of the
16         mortgaged real estate has changed;
17             (ii) include the following language: "This is NOT a
18         notice to vacate the premises;" and
19             (iii) provide the name, address, and telephone
20         number of the individual or entity whom occupants may
21         contact with concerns about the mortgaged real estate
22         or to request repairs of the property.
23         (7)(i) The provisions of item (5) of this subsection
24     (a-5) shall be the exclusive remedy for the failure of a
25     mortgagee in possession to provide notice to a known
26     occupant under this Section.

 

 

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1         (ii) This Section shall not abrogate any right that a
2     mortgagee in possession may have to possession of the
3     mortgaged real estate and to maintain a proceeding against
4     an occupant of a dwelling unit for possession under Article
5     9 of this Code or subsection (h) of Section 15-1701.
6     (b) Fees and Expenses. A mortgagee in possession shall not
7 be entitled to any fees for so acting, but shall be entitled to
8 reimbursement for reasonable costs, expenses and third party
9 management fees incurred in connection with such possession.
10 (Source: P.A. 84-1462.)
 
11     (735 ILCS 5/15-1704)  (from Ch. 110, par. 15-1704)
12     Sec. 15-1704. Receivers. (a) Receiver. Notwithstanding the
13 provisions of subsections (b), (c) and (d) of Section 15-1701,
14 and except as provided in Section 15-1702, upon request of any
15 party and a showing of good cause, the court shall appoint a
16 receiver for the mortgaged real estate.
17     (b) Powers. A receiver appointed pursuant to this Article
18 shall have possession of the mortgaged real estate and other
19 property subject to the mortgage during the foreclosure, shall
20 have full power and authority to operate, manage and conserve
21 such property, and shall have all the usual powers of receivers
22 in like cases. Without limiting the foregoing, a receiver shall
23 have the power and authority to:
24         (1) secure tenants and execute leases for the real
25     estate, the duration and terms of which are reasonable and

 

 

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1     customary for the type of use involved, and such leases
2     shall have the same priority as if made by the owner of the
3     real estate; but, unless approved by the Court, the
4     receiver shall not execute oil, gas or other mineral
5     leases, or (even if otherwise allowed by law) leases
6     extending beyond the time of the receiver's possession;
7     provided, however, with respect to residential real estate
8     leased by the receiver, nothing in this Section shall
9     affect the legal rights of any lessee with respect to the
10     safety and habitability of the residential real estate;
11         (2) collect the rents, issues and profits from the
12     mortgaged real estate;
13         (3) insure the mortgaged real estate against loss by
14     fire or other casualty;
15         (4) employ counsel, custodians, janitors and other
16     help; and
17         (5) pay taxes which may have been or may be levied
18     against the mortgaged real estate.
19     (c) Duties. A receiver appointed pursuant to this Article
20 must manage the mortgaged real estate as would a prudent
21 person, taking into account the effect of the receiver's
22 management on the interest of the mortgagor. A receiver may,
23 without an order of the court, delegate managerial functions to
24 a person in the business of managing real estate of the kind
25 involved who is financially responsible, not related to the
26 mortgagee or receiver and prudently selected. However, the

 

 

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1 receiver shall remain responsible to the mortgagor or other
2 persons for the acts or omissions of such management agent.
3 When fees are paid to such a management agent, the receiver's
4 fees may be adjusted to the extent the court deems appropriate.
5 In managing the mortgaged real estate and other property
6 subject to the mortgage, a receiver or receiver's delegate, to
7 the extent the receiver receives sufficient receipts from the
8 mortgaged real estate, such other property or other sources,
9 except to the extent ordered otherwise by the court:
10         (1) shall maintain the existing casualty and liability
11     insurance required in accordance with the mortgage or
12     applicable to the real estate and other property subject to
13     the mortgage at the time the receiver took possession;
14         (2) shall use reasonable efforts to maintain the real
15     estate and other property subject to the mortgage in at
16     least as good condition as existed at the time the receiver
17     took possession, excepting reasonable wear and tear and
18     damage by any casualty;
19         (2.5) shall accept all rental payments from an occupant
20     of the mortgaged property, and any payments from a third
21     party or any rental assistance program in support of an
22     occupant's housing;
23         (3) shall apply receipts to payment of ordinary
24     operating expenses, including royalties, rents and other
25     expenses of management;
26         (4) shall pay any shared or common expense assessments

 

 

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1     due to any association of owners of interests in real
2     estate to the extent that such assessments are or may
3     become a lien against the mortgaged real estate;
4         (5) may pay the amounts due under any mortgage if the
5     mortgagee thereof is not a party in the foreclosure;
6         (6) may carry such additional casualty and liability
7     insurance as is reasonably available and reasonable as to
8     amounts and risks covered;
9         (7) may make other repairs and improvements necessary
10     to comply with building, housing, and other similar codes
11     or with existing contractual obligations affecting the
12     mortgaged real estate;
13         (8) may hold receipts as reserves reasonably required
14     for the foregoing purposes; and
15         (9) may take such other actions as may be reasonably
16     necessary to conserve the mortgaged real estate and other
17     property subject to the mortgage, or as otherwise
18     authorized by the court.
19     (d) Allocation of Receipts. Receipts received from
20 operation of the real estate and other property subject to the
21 mortgage by the receiver shall be applied in the following
22 order of priority.
23         (1) to reimbursement of the receiver for all reasonable
24     costs and expenses incurred by the receiver or the
25     receiver's delegates;
26         (2) to payment of insurance premiums authorized in

 

 

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1     paragraph (1) of subsection (c) of Section 15-1704;
2         (3) to payment of the receiver's delegates of any
3     reasonable management fees for managing real estate of the
4     type involved;
5         (4) to payment of receiver's fees allowed by the court;
6         (5) to payment of expenses authorized in paragraphs
7     (2), (3) and (4) of subsection (c) of Section 15-1704;
8         (6) to payment of amounts authorized in paragraph (5)
9     of subsection (c) of Section 15-1704;
10         (7) to payment of expenses authorized in paragraphs (6)
11     and (7) of subsection (c) of Section 15-1704; and
12         (8) the balance, if any, shall be held or disbursed as
13     ordered by the court.
14     (e) Non-Liability for Allocations. A receiver shall in no
15 event be liable to any person for the allocation of, or failure
16 to allocate, receipts to possible expenditures within the same
17 priority category.
18     (f) Notice to occupants.
19         (1) Following an order appointing a receiver pursuant
20     to Section 15-1704, but no later than 21 days after the
21     entry of such order, the appointed receiver shall make a
22     good faith effort to ascertain the identities and addresses
23     of all occupants of dwelling units of the mortgaged real
24     estate.
25         (2) Following an order appointing a receiver pursuant
26     to Section 15-1704, but no later than 21 days after the

 

 

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1     entry of such order, the appointed receiver shall notify
2     all known occupants of dwelling units of the mortgaged real
3     estate that the receiver has been appointed receiver of the
4     mortgaged real estate. Such notice shall be in writing and
5     shall:
6             (i) identify the occupant being served by the name
7         known to the receiver;
8             (ii) inform the occupant that the mortgaged real
9         estate at which the dwelling unit is located is the
10         subject of a foreclosure action and that control of the
11         mortgaged real estate has changed;
12             (iii) provide the name, address, and telephone
13         number of the individual or entity whom occupants may
14         contact with concerns about the mortgaged real estate
15         or to request repairs of that property;
16             (iv) include the following language, or language
17         that is substantially similar: "This is NOT a notice to
18         vacate the premises. You may wish to contact a lawyer
19         or your local legal aid or housing counseling agency to
20         discuss any rights that you may have."; and
21             (v) include the name of the case, the case number,
22         and the court where the foreclosure action is pending;
23         (3) The written notice required by item (2) of this
24     subsection (f) shall be served by delivering a copy thereof
25     to the known occupant, or by leaving the same with some
26     person of the age of 13 years or upwards, who is residing

 

 

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1     on or in possession of the premises; or by sending a copy
2     of the notice to the known occupant by first-class mail,
3     addressed to the occupant by the name known to the
4     receiver.
5         (4) In the event that a receiver ascertains the
6     identity and address of an occupant of a dwelling unit of
7     the mortgaged real estate more than 21 days after
8     appointment pursuant to Section 15-1704, the receiver
9     shall provide the notice required by item (2) of this
10     subsection (f) within 7 days of ascertaining the identity
11     and address of the occupant.
12         (5)(i) A receiver who fails to comply with items (1),
13     (2), (3), and (4) of this subsection (f) may not collect
14     any rent due and owing from a known occupant, or terminate
15     a known occupant's tenancy for non-payment of such rent,
16     until the receiver has served the notice described in item
17     (2) of this subsection (f) upon the known occupant. After
18     providing such notice, the receiver may collect any and all
19     rent otherwise due and owing the receiver from the known
20     occupant and may terminate the known occupant's tenancy for
21     non-payment of such rent if the receiver otherwise has such
22     right to terminate.
23         (ii) An occupant who previously paid rent for the
24     current rental period to the mortgagor, or other entity
25     with the authority to operate, manage, and conserve the
26     mortgaged real estate at the time of payment, shall not be

 

 

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1     held liable for that rent by the receiver, and the
2     occupant's tenancy shall not be terminated for non-payment
3     of rent for that rental period.
4         (6) Within 21 days of appointment, the receiver shall
5     post a written notice on the primary entrance of each
6     dwelling unit subject to the foreclosure action that
7     informs occupants that the receiver has been appointed to
8     operate and manage the property. This notice shall:
9             (i) inform occupant that the dwelling unit is the
10         subject of a foreclosure action and that control of the
11         mortgaged real estate has changed;
12             (ii) include the following language: "This is NOT a
13         notice to vacate the premises;" and
14             (iii) provide the name, address, and telephone
15         number of the individual or entity whom occupants may
16         contact with concerns about the mortgaged real estate
17         or to request repairs of the property.
18         (7)(i) The provisions of item (5) of this subsection
19     (f) shall be the exclusive remedy for the failure of a
20     receiver to provide notice to a known occupant under this
21     Section.
22         (ii) This Section shall not abrogate any right that a
23     receiver may have to possession of the mortgaged real
24     estate and to maintain a proceeding against an occupant of
25     a dwelling unit for possession under Article 9 of this Code
26     or subsection (h) of Section 15-1701.

 

 

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1     (g) Increase of rents. Notwithstanding any other provision
2 of this Article, a receiver shall not charge an occupant of the
3 mortgaged real estate a rental amount above that which the
4 occupant had been paying for use and occupancy of the mortgaged
5 real estate prior the appointment of a receiver without leave
6 of court. The court may allow an increase of rent if, upon
7 motion by the receiver, the court finds by a preponderance of
8 the evidence, that the increase of rent is necessary to
9 operate, manage, and conserve the mortgaged real estate
10 pursuant to this Section. A list of the current rents for each
11 unit in the mortgaged real estate, and a list of the proposed
12 rent increase for each of those units, must be attached to a
13 motion for a rent increase under this subsection (g). All
14 occupants of the mortgaged real estate who may be affected by
15 the motion for a rent increase, if not otherwise entitled to
16 notice, shall be notified in writing of the nature of the
17 motion, the date and time of the motion, and the court where
18 the motion will be heard. Such notice shall be by personal
19 service or first-class mail. In the event that the receiver and
20 an occupant of a dwelling unit agree to a rent increase for
21 that dwelling unit, the receiver is excused from the
22 requirements of this subsection (g) as to that dwelling unit.
23 Nothing in this subsection (g) shall alter the terms of any
24 lease agreement.
25     (h) (f) Removal. The court may remove a receiver upon a
26 showing of good cause, in which case a new receiver may be

 

 

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1 appointed in accordance with subsection (b) of Section 15-1702
2 and subsection (a) of Section 15-1704.
3 (Source: P.A. 84-1462.)
 
4     Section 98. Compliance. In a foreclosure action filed on or
5 before the effective date of this Act, a holder or purchaser,
6 receiver, or mortgagee in possession required to serve notice
7 or otherwise comply with Section 15-1508.5, subsection (a-5) of
8 Section 15-1703, and subsection (f) of 15-1704 shall have an
9 additional 60 days to comply with the provisions of this Act.
 
10     Section 99. Effective date. This Act takes effect 90 days
11 after becoming law.".