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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 205 businessdays 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 2015days 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.)