State of Illinois
90th General Assembly
Legislation

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90_HB1233

      625 ILCS 5/3-104          from Ch. 95 1/2, par. 3-104
      625 ILCS 5/3-111.1        from Ch. 95 1/2, par. 3-111.1
      625 ILCS 5/3-112          from Ch. 95 1/2, par. 3-112
      625 ILCS 5/3-114          from Ch. 95 1/2, par. 3-114
      625 ILCS 5/3-116          from Ch. 95 1/2, par. 3-116
          Amends the Illinois  Vehicle  Code.   Provides  that  the
      application  for  a  certificate  of title for a vehicle must
      contain the Illinois residence (instead of residence) of  the
      owner.   Provides  that  a corrected certificate of the title
      shall contain the notation "corrected". Provides that when an
      owner transfers  his  or  her  interest  in  a  vehicle,  the
      transferee  shall  promptly  and within 20 days (instead of 5
      business days) after delivery of  the  vehicle  and  assigned
      title  execute the application for a new certificate of title
      and cause the certificate and application  to  be  mailed  or
      delivered  to  the  Secretary of State.  Provides that when a
      leinholder has repossessed a vehicle, after the  original  21
      day  notice  to the debtor has been fulfilled, the lienholder
      shall within 20 (instead of 15) days make an  application  to
      the  Secretary  of  State for a certificate of title, salvage
      certificate, or junking certificate.     Provides  that  upon
      receipt  of  a  certified  copy  of  a  court  order awarding
      ownership to an applicant along with  an  application  for  a
      certificate  of  title and the required fee, the Secretary of
      State shall issue a certificate of title to the applicant.
                                                    LRB9001185NTsbA
                                              LRB9001185NTsbA
 1        AN ACT to amend the Illinois  Vehicle  Code  by  changing
 2    Sections 3-104, 3-111.1, 3-112, 3-114, and 3-116.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Vehicle  Code  is  amended  by
 6    changing  Sections 3-104, 3-111.1, 3-112, 3-114, and 3-116 as
 7    follows:
 8        (625 ILCS 5/3-104) (from Ch. 95 1/2, par. 3-104)
 9        Sec. 3-104. Application for certificate of title.
10        (a)  The application for a certificate  of  title  for  a
11    vehicle  in  this  State  must  be  made  by the owner to the
12    Secretary of State on the form prescribed and must contain:
13             1.  The name, Illinois residence and mail address of
14        the owner;
15             2.  A description of the vehicle including,  so  far
16        as  the  following  data  exists:  Its  make, year-model,
17        identifying number, type of body, whether new or used, as
18        to house trailers as defined in  Section  1-128  of  this
19        Code,  the square footage of the house trailer based upon
20        the outside dimensions of the house trailer excluding the
21        length of the tongue and hitch, and, as  to  vehicles  of
22        the  second  division, whether for-hire, not-for-hire, or
23        both for-hire and not-for-hire;
24             3.  The  date  of  purchase  by  applicant  and,  if
25        applicable, the name and address of the person from  whom
26        the  vehicle  was acquired and the names and addresses of
27        any lienholders  in  the  order  of  their  priority  and
28        signatures of owners;
29             4.  The  current  odometer  reading  at  the time of
30        transfer and that the stated odometer reading is  one  of
31        the  following: actual mileage, not the actual mileage or
                            -2-               LRB9001185NTsbA
 1        mileage is in excess of its mechanical limits; and
 2             5.  Any further information the Secretary  of  State
 3        reasonably requires to identify the vehicle and to enable
 4        him  to  determine  whether  the  owner  is entitled to a
 5        certificate of title and the existence or nonexistence of
 6        security interests in the vehicle.
 7        (b)  If the application refers  to  a  vehicle  purchased
 8    from  a  dealer, it must also be signed by the dealer as well
 9    as the owner, and the dealer must promptly  mail  or  deliver
10    the  application  and  required documents to the Secretary of
11    State.
12        (c)  If  the  application  refers  to  a   vehicle   last
13    previously  registered  in  another  State  or  country,  the
14    application must contain or be accompanied by:
15             1.  Any   certified   document   of   ownership   so
16        recognized  and  issued by the other State or country and
17        acceptable to the Secretary of State, and
18             2.  Any  other   information   and   documents   the
19        Secretary  of  State reasonably requires to establish the
20        ownership  of  the   vehicle   and   the   existence   or
21        nonexistence of security interests in it.
22        (d)  If  the  application refers to a new vehicle it must
23    be accompanied by the Manufacturer's Statement of Origin,  or
24    other  documents  as required and acceptable by the Secretary
25    of State, with such assignments as may be necessary  to  show
26    title in the applicant.
27        (e)  If an application refers to a vehicle rebuilt from a
28    vehicle  previously  salvaged,  that application shall comply
29    with the provisions set forth in Sections 3-302 through 3-304
30    of this Code.
31        (f)  An application for a certificate of  title  for  any
32    vehicle,  whether  purchased in Illinois or outside Illinois,
33    and even if previously registered in another State,  must  be
34    accompanied  by  either  an  exemption determination from the
                            -3-               LRB9001185NTsbA
 1    Department of Revenue showing that no tax imposed pursuant to
 2    the Use Tax Act or the vehicle use  tax  imposed  by  Section
 3    3-1001  of  the  Illinois Vehicle Code is owed by anyone with
 4    respect to that vehicle, or a receipt from the Department  of
 5    Revenue  showing  that  any tax so imposed has been paid.  An
 6    application for  a  certificate  of  title  for  any  vehicle
 7    purchased  outside Illinois, even if previously registered in
 8    another state, must be accompanied  by  either  an  exemption
 9    determination  from the Department of Revenue showing that no
10    tax imposed pursuant to the Municipal  Use  Tax  Act  or  the
11    County  Use  Tax  Act  is owed by anyone with respect to that
12    vehicle, or a receipt from the Department of Revenue  showing
13    that  any  tax  so  imposed has been paid.  In the absence of
14    such a receipt for payment or determination of exemption from
15    the Department, no certificate of title shall  be  issued  to
16    the applicant.
17        If  the  proof  of  payment of the tax or of nonliability
18    therefor is, after the issuance of the certificate  of  title
19    and  display  certificate  of title, found to be invalid, the
20    Secretary of State shall revoke the certificate  and  require
21    that  the  certificate  of  title  and,  when applicable, the
22    display certificate of title be returned to him.
23        (g)  If  the  application  refers  to   a   vehicle   not
24    manufactured  in  accordance with federal safety and emission
25    standards,  the  application  must  be  accompanied  by   all
26    documents  required  by federal governmental agencies to meet
27    their standards before a vehicle  is  allowed  to  be  issued
28    title and registration.
29        (h)  If  the  application  refers  to  a  vehicle sold at
30    public sale by a sheriff,  it  must  be  accompanied  by  the
31    required  fee  and  a  bill  of  sale  issued and signed by a
32    sheriff.  The bill of sale must identify the new owner's name
33    and address, the year model, make and vehicle  identification
34    number   of   the   vehicle,   court  order  document  number
                            -4-               LRB9001185NTsbA
 1    authorizing such  sale,  if  applicable,  and  the  name  and
 2    address   of   any  lienholders  in  order  of  priority,  if
 3    applicable.
 4        (i)  If the application refers to a vehicle for  which  a
 5    court of law determined the ownership, it must be accompanied
 6    with  a  certified  copy of such court order and the required
 7    fee.  The court order must indicate the new owner's name  and
 8    address,  the  complete description of the vehicle, if known,
 9    the name and address of the lienholder, if any, and  must  be
10    signed and dated by the judge issuing such order.
11        (j)  If  the  application  refers  to  a  vehicle sold at
12    public auction pursuant to the Labor and Storage Lien  (Small
13    Amount) Act, it must be accompanied by an affidavit furnished
14    by  the Secretary of State along with the documents described
15    in the affidavit and the required fee.
16    (Source: P.A. 87-206; 88-45.)
17        (625 ILCS 5/3-111.1) (from Ch. 95 1/2, par. 3-111.1)
18        Sec. 3-111.1.  Corrected  certificates.   An  application
19    for  a  corrected certificate of title must state the current
20    vehicle odometer reading at the time of application and  that
21    the  stated odometer reading is one of the following:  actual
22    mileage, not the actual mileage or mileage is  in  excess  of
23    its mechanical limits. The corrected certificate issued under
24    this Section shall contain the notation "corrected".
25    (Source: P.A. 86-444.)
26        (625 ILCS 5/3-112) (from Ch. 95 1/2, par. 3-112)
27        Sec.  3-112.  Transfer.  (a)  If  an  owner transfers his
28    interest in a vehicle,  other  than  by  the  creation  of  a
29    security interest, at the time of the delivery of the vehicle
30    he shall execute to the transferee an assignment and warranty
31    of  title  in the space provided on the certificate of title,
32    or as the  Secretary  of  State  prescribes,  and  cause  the
                            -5-               LRB9001185NTsbA
 1    certificate  and  assignment to be mailed or delivered to the
 2    transferee or to the Secretary of State.
 3        If the vehicle is subject to a tax under the Mobile  Home
 4    Local  Services Tax Act in a county with a population of less
 5    than  3,000,000,  the  owner  shall  also  provide   to   the
 6    transferee  a certification by the treasurer of the county in
 7    which the vehicle is situated that  all  taxes  owed  by  the
 8    owner  for  the  vehicle  have  been paid.  If the owner is a
 9    licensed dealer who has purchased the vehicle and is  holding
10    it  for resale, in lieu of acquiring a certification from the
11    county treasurer he shall forward the certification  received
12    from  the  previous  owner  to the next buyer of the vehicle.
13    The owner shall cause  the  certification  to  be  mailed  or
14    delivered  to  the Secretary of State with the certificate of
15    title and assignment.
16        (b)  Except as provided in Section 3-113, the  transferee
17    shall,  promptly and within 20 5 business days after delivery
18    to him of the vehicle and the  assigned  title,  execute  the
19    application  for  a  new  certificate  of  title in the space
20    provided therefor on the certificate or as the  Secretary  of
21    State  prescribes,  and cause the certificate and application
22    to be mailed or delivered to the Secretary of State.
23        (c)  Upon  request  of  the  owner   or   transferee,   a
24    lienholder  in  possession of the certificate of title shall,
25    unless the transfer was a breach of his  security  agreement,
26    either deliver the certificate to the transferee for delivery
27    to   the  Secretary  of  State  or,  upon  receipt  from  the
28    transferee  of  the  owner's  assignment,  the   transferee's
29    application  for a new certificate and the required fee, mail
30    or deliver them to the Secretary of State.  The  delivery  of
31    the  certificate does not affect the rights of the lienholder
32    under his security agreement.
33        (d)  If a security interest is reserved or created at the
34    time of the transfer,  the  certificate  of  title  shall  be
                            -6-               LRB9001185NTsbA
 1    retained  by  or  delivered  to  the  person  who becomes the
 2    lienholder, and the parties shall comply with the  provisions
 3    of Section 3-203.
 4        (e)  Except  as  provided in Section 3-113 and as between
 5    the parties, a transfer by an owner is  not  effective  until
 6    the  provisions  of  this Section and Section 3-115 have been
 7    complied with; however, an owner who has delivered possession
 8    of the vehicle to the transferee and has  complied  with  the
 9    provisions of this Section and Section 3-115 requiring action
10    by  him  as  not  liable  as owner for any damages thereafter
11    resulting from operation of the vehicle.
12        (f)  The  Secretary  of  State  shall  not  process   any
13    application for a transfer of an interest in a vehicle if any
14    fees  or  taxes due under this Act from the transferor or the
15    transferee have not been  paid  upon  reasonable  notice  and
16    demand.
17        (g)  If  the  Secretary  of State receives an application
18    for transfer of a vehicle subject to a tax  under  the  Mobil
19    Home  Local Services Tax Act in a county with a population of
20    less than 3,000,000, such application must be accompanied  by
21    the  required  certification  by  the county treasurer or tax
22    assessor authorizing the issuance of the title.
23    (Source: P.A. 86-226; 86-460; 86-1028.)
24        (625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)
25        Sec. 3-114.  Transfer by operation of law.
26        (a) If the interest of an owner in a  vehicle  passes  to
27    another  other  than  by  voluntary  transfer, the transferee
28    shall, except as provided in paragraph (b), promptly mail  or
29    deliver  within  20  days  to the Secretary of State the last
30    certificate of title, if available, proof  of  the  transfer,
31    and  his  application  for  a new certificate in the form the
32    Secretary of State prescribes. It shall be unlawful  for  any
33    person  having  possession  of  a  certificate of title for a
                            -7-               LRB9001185NTsbA
 1    motor vehicle, semi-trailer, or house car by  reason  of  his
 2    having  a  lien  or  encumbrance  on such vehicle, to fail or
 3    refuse to deliver such certificate to  the  owner,  upon  the
 4    satisfaction   or  discharge  of  the  lien  or  encumbrance,
 5    indicated upon such certificate of title.
 6        (b)  If the interest of an owner in a vehicle  passes  to
 7    another  under the provisions of the Small Estates provisions
 8    of the Probate Act of 1975 the transferee shall promptly mail
 9    or deliver to the Secretary of State, within  120  days,  the
10    last  certificate  of  title, if available, the documentation
11    required under the provisions of the Probate Act of 1975, and
12    an application for certificate of  title.  The  Small  Estate
13    Affidavit  form shall be furnished by the Secretary of State.
14    The transfer may be to the transferee or to  the  nominee  of
15    the transferee.
16        (c)  If  the  interest of an owner in a vehicle passes to
17    another under other provisions of the Probate Act of 1975, as
18    amended, and the transfer is  made  by  a  representative  or
19    guardian,  such  transferee shall promptly mail or deliver to
20    the Secretary of State, the last  certificate  of  title,  if
21    available,  and  a certified copy of the letters of office or
22    guardianship, and an application for  certificate  of  title.
23    Such  application  shall be made before the estate is closed.
24    The transfer may be to the transferee or to  the  nominee  of
25    the transferee.
26        (d)  If  the interest of an owner in joint tenancy passes
27    to  the  other  joint  tenant  with  survivorship  rights  as
28    provided by  law,  the  transferee  shall  promptly  mail  or
29    deliver  to  the  Secretary of State, the last certificate of
30    title, if available, proof of death of the one  joint  tenant
31    and  survivorship  of  the  surviving  joint  tenant,  and an
32    application for certificate of title. Such application  shall
33    be  made within 120 days after the death of the joint tenant.
34    The transfer may be to the transferee or to  the  nominee  of
                            -8-               LRB9001185NTsbA
 1    the transferee.
 2        (e)  The  Secretary  of State shall transfer a decedent's
 3    vehicle title to any legatee, representative or heir  of  the
 4    decedent who submits to the Secretary a death certificate and
 5    an  affidavit  by  an  attorney  at  law  on  the  letterhead
 6    stationery   of  the attorney at law stating the facts of the
 7    transfer.
 8        (f)  In all cases wherein a lienholder has repossessed  a
 9    vehicle,  after  the original 21 day notice to the debtor has
10    been fulfilled, the lienholder shall within 20 15  days  make
11    an application to the Secretary of State for a certificate of
12    title, a salvage certificate or a junking certificate, as set
13    forth  in  this Code. In all cases, however, the Secretary of
14    State shall not issue  a  certificate  of  title,  a  salvage
15    certificate  or  a  junking  certificate  to  such lienholder
16    unless the person from whom such vehicle has been repossessed
17    is shown to be  the  last  registered  owner  of  such  motor
18    vehicle  and  such lienholder establishes to the satisfaction
19    of the Secretary  of  State  that  he  is  entitled  to  such
20    certificate   of   title,   salvage  certificate  or  junking
21    certificate. The Secretary of State shall provide by rule for
22    the standards to be followed by  a  lienholder  in  order  to
23    obtain a certificate of title for a repossessed vehicle.
24        (g)  A  person  holding  a  certificate  of  title  whose
25    interest  in the vehicle has been extinguished or transferred
26    other than by voluntary transfer shall mail  or  deliver  the
27    certificate,  within 20 days upon request of the Secretary of
28    State. The  delivery  of  the  certificate  pursuant  to  the
29    request  of the Secretary of State does not affect the rights
30    of the person surrendering the certificate, and the action of
31    the Secretary of State in issuing a new certificate of  title
32    as  provided  herein  is not conclusive upon the rights of an
33    owner or lienholder named in the old certificate.
34        (h)  The Secretary of State may decline  to  process  any
                            -9-               LRB9001185NTsbA
 1    application  for  a  transfer  of  an  interest  in a vehicle
 2    hereunder if any fees or taxes due under this  Act  from  the
 3    transferor   or  the  transferee  have  not  been  paid  upon
 4    reasonable notice and demand.
 5        (i)  The Secretary of State shall not be held civilly  or
 6    criminally   liable  to  any  person  because  any  purported
 7    transferor may not have had the power or authority to make  a
 8    transfer  of  any  interest  in  any  vehicle  or  because  a
 9    certificate  of title issued in error is subsequently used to
10    commit a fraudulent act.
11    (Source: P.A. 87-1225.)
12        (625 ILCS 5/3-116) (from Ch. 95 1/2, par. 3-116)
13        Sec.  3-116.  When  Secretary  of  State   to   issue   a
14    certificate  of  title.  (a)  The  Secretary  of  State, upon
15    receipt of a properly assigned certificate of title, with  an
16    application  for a certificate of title, the required fee and
17    any other documents  required  by  law,  shall  issue  a  new
18    certificate  of  title in the name of the transferee as owner
19    and mail it to the first lienholder named in it or, if  none,
20    to the owner or owner's designee.
21        (b)  The   Secretary   of   State,  upon  receipt  of  an
22    application for a new certificate of title  by  a  transferee
23    other than by voluntary transfer, with proof of the transfer,
24    the  required  fee  and  any other documents required by law,
25    shall issue a new certificate of title in  the  name  of  the
26    transferee as owner.
27        (c)  Any person, firm or corporation, who shall knowingly
28    possess,  buy,  sell, exchange or give away, or offer to buy,
29    sell, exchange or give away the certificate of title  to  any
30    motor  vehicle  which is a junk or salvage, or who shall fail
31    to surrender the certificate of title  to  the  Secretary  of
32    State  as  required  under the provisions of this Section and
33    Section 3-117.2, shall be guilty of Class 3 felony.
                            -10-              LRB9001185NTsbA
 1        (d)  The Secretary of State shall  file  and  retain  for
 2    four  (4)  years a record of every surrendered certificate of
 3    title or proof of ownership  accepted  by  the  Secretary  of
 4    State,  the file to be maintained so as to permit the tracing
 5    of title of the vehicle designated therein.
 6        (e)  The  Secretary  of  State,  upon   receipt   of   an
 7    application  for  corrected  certificate  of  title, with the
 8    original title, the  required  fee  and  any  other  required
 9    documents,  shall  issue  a corrected certificate of title in
10    the name of the owner and mail it  to  the  first  lienholder
11    named in it or, if none, to the owner or owner's designee.
12        (f)  The  Secretary of State, upon receipt of a certified
13    copy of a court order  awarding  ownership  to  an  applicant
14    along  with an application for a certificate of title and the
15    required fee, shall issue  a  certificate  of  title  to  the
16    applicant.
17    (Source: P.A. 86-820.)

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