Full Text of SB2131 095th General Assembly
SB2131 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB2131
Introduced 2/14/2008, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
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735 ILCS 5/15-1106 |
from Ch. 110, par. 15-1106 |
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Amends the Code of Civil Procedure. Provides that a complaint to foreclose on a mortgage shall not be filed prior to January 1, 2010 on residential real estate property if the property is a single family residence or a residential condominium and if the mortgagor is paying the current interest and the current required reserve or escrow payments for real estate taxes and insurance. Effective immediately.
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A BILL FOR
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SB2131 |
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LRB095 19294 AJO 45585 b |
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| AN ACT concerning civil law.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Code of Civil Procedure is amended by | 5 |
| changing Section 15-1106 as follows:
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| (735 ILCS 5/15-1106) (from Ch. 110, par. 15-1106)
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| Sec. 15-1106. Applicability of Article. (a) Exclusive | 8 |
| Procedure. From and after the
effective date of this amendatory | 9 |
| Act of 1986, the following shall be
foreclosed in a foreclosure | 10 |
| pursuant to this Article:
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| (1) any mortgage created prior to, on or after the | 12 |
| effective date of this
amendatory Act of 1986;
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| (2) any real estate installment contract for residential | 14 |
| real estate
entered into on or after the effective date of this | 15 |
| amendatory Act of 1986
and under which (i)
the purchase price | 16 |
| is to be paid in installments over a period in excess of
five | 17 |
| years and (ii) the amount unpaid under the terms of the | 18 |
| contract at
the time of the filing of the foreclosure | 19 |
| complaint, including principal
and due and unpaid interest, at | 20 |
| the rate prior to default, is less than
80% of the original | 21 |
| purchase price of the real estate as
stated in the contract;
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| (3) any collateral assignment of beneficial interest made | 23 |
| on or after the
effective date of this amendatory Act of 1986 |
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SB2131 |
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LRB095 19294 AJO 45585 b |
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| (i) which is made with respect to a land
trust which was | 2 |
| created contemporaneously with the collateral assignment of
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| beneficial interest, (ii) which is made pursuant to a | 4 |
| requirement of the
holder of the obligation to secure the | 5 |
| payment of money or performance of
other obligations and (iii) | 6 |
| as to which the security agreement or other
writing creating | 7 |
| the collateral assignment permits the real estate which is
the | 8 |
| subject of the land trust to be sold to satisfy the | 9 |
| obligations.
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| (b) Uniform Commercial Code. A secured party, as defined in | 11 |
| Article
9 of the Uniform Commercial Code, may at its election | 12 |
| enforce its security interest in a
foreclosure under this | 13 |
| Article if its security interest was created on or after
the | 14 |
| effective date of this amendatory Act of 1986 and is created by | 15 |
| (i) a collateral
assignment of beneficial interest in a land | 16 |
| trust or (ii) an assignment for
security of a buyer's interest | 17 |
| in a real estate installment contract. Such
election shall be | 18 |
| made by filing a complaint stating that it is brought
under | 19 |
| this Article, in which event the provisions of this Article | 20 |
| shall be
exclusive in such foreclosure.
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| (c) Real Estate Installment Contracts. A contract seller | 22 |
| may at its
election enforce in a foreclosure under this Article | 23 |
| any real estate
installment contract entered into on or after | 24 |
| the effective date of this
Amendatory Act of 1986
and not | 25 |
| required to be foreclosed under this Article. Such election | 26 |
| shall
be made by filing a complaint stating that it is brought |
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SB2131 |
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LRB095 19294 AJO 45585 b |
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| under this
Article, in which event the provisions of this | 2 |
| Article shall be exclusive
in such foreclosure. A contract | 3 |
| seller must enforce its contract under
this Article if the real | 4 |
| estate installment contract is one described in
paragraph (2) | 5 |
| of subsection (a) of Section 15-1106.
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| (d) Effect of Election. An election made pursuant to | 7 |
| subsection (b) or
(c) of Section 15-1106 shall be binding only | 8 |
| in the foreclosure and shall be
void if
the foreclosure is | 9 |
| terminated prior to entry of judgment.
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| (e) Supplementary General Principles of Law. General | 11 |
| principles of law
and equity, such as those relating to | 12 |
| capacity to contract, principal and
agent, marshalling of | 13 |
| assets, priority, subrogation, estoppel, fraud,
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| misrepresentations, duress, collusion, mistake, bankruptcy or | 15 |
| other
validating or invalidating cause, supplement this | 16 |
| Article unless displaced
by a particular provision of it.
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| Section 9-110 of the Code of Civil Procedure shall not be | 18 |
| applicable to
any real estate installment contract which is | 19 |
| foreclosed under this Article.
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| (f) Pending Actions. A complaint to foreclose a mortgage | 21 |
| filed before
July 1, 1987, and all proceedings and third party | 22 |
| actions in connection
therewith, shall be adjudicated pursuant | 23 |
| to the Illinois statutes and
applicable law in effect | 24 |
| immediately prior to July 1, 1987. Such statutes
shall remain | 25 |
| in effect with respect to such complaint, proceedings and
third | 26 |
| party actions notwithstanding the amendment or repeal of such
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LRB095 19294 AJO 45585 b |
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| statutes on or after July 1, 1987.
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| (g) Actions before 2010. A complaint to foreclose on a | 3 |
| mortgage shall not be filed before January 1, 2010 if the | 4 |
| subject real estate is residential real estate that is a single | 5 |
| family residence or a residential condominium and if the | 6 |
| mortgagor is paying the current interest on the mortgage note | 7 |
| and the current required reserve or escrow payments for real | 8 |
| estate taxes and insurance. | 9 |
| (Source: P.A. 85-907.)
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| Section 99. Effective date. This Act takes effect upon | 11 |
| becoming law.
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