Public Act 90-0212 of the 90th General Assembly

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Public Act 90-0212

HB1233 Enrolled                               LRB9001185NTsbA

    AN ACT to amend the Illinois  Vehicle  Code  by  changing
Sections 3-104, 3-111.1, 3-112, 3-114, and 3-116.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The  Illinois  Vehicle  Code  is  amended  by
changing  Sections 3-104, 3-111.1, 3-112, 3-114, and 3-116 as
follows:

    (625 ILCS 5/3-104) (from Ch. 95 1/2, par. 3-104)
    Sec. 3-104. Application for certificate of title.
    (a)  The application for a certificate  of  title  for  a
vehicle  in  this  State  must  be  made  by the owner to the
Secretary of State on the form prescribed and must contain:
         1.  The name, Illinois residence and mail address of
    the owner;
         2.  A description of the vehicle including,  so  far
    as  the  following  data  exists:  Its  make, year-model,
    identifying number, type of body, whether new or used, as
    to house trailers as defined in  Section  1-128  of  this
    Code,  the square footage of the house trailer based upon
    the outside dimensions of the house trailer excluding the
    length of the tongue and hitch, and, as  to  vehicles  of
    the  second  division, whether for-hire, not-for-hire, or
    both for-hire and not-for-hire;
         3.  The  date  of  purchase  by  applicant  and,  if
    applicable, the name and address of the person from  whom
    the  vehicle  was acquired and the names and addresses of
    any lienholders  in  the  order  of  their  priority  and
    signatures of owners;
         4.  The  current  odometer  reading  at  the time of
    transfer and that the stated odometer reading is  one  of
    the  following: actual mileage, not the actual mileage or
    mileage is in excess of its mechanical limits; and
         5.  Any further information the Secretary  of  State
    reasonably requires to identify the vehicle and to enable
    him  to  determine  whether  the  owner  is entitled to a
    certificate of title and the existence or nonexistence of
    security interests in the vehicle.
    (b)  If the application refers  to  a  vehicle  purchased
from  a  dealer, it must also be signed by the dealer as well
as the owner, and the dealer must promptly  mail  or  deliver
the  application  and  required documents to the Secretary of
State.
    (c)  If  the  application  refers  to  a   vehicle   last
previously  registered  in  another  State  or  country,  the
application must contain or be accompanied by:
         1.  Any   certified   document   of   ownership   so
    recognized  and  issued by the other State or country and
    acceptable to the Secretary of State, and
         2.  Any  other   information   and   documents   the
    Secretary  of  State reasonably requires to establish the
    ownership  of  the   vehicle   and   the   existence   or
    nonexistence of security interests in it.
    (d)  If  the  application refers to a new vehicle it must
be accompanied by the Manufacturer's Statement of Origin,  or
other  documents  as required and acceptable by the Secretary
of State, with such assignments as may be necessary  to  show
title in the applicant.
    (e)  If an application refers to a vehicle rebuilt from a
vehicle  previously  salvaged,  that application shall comply
with the provisions set forth in Sections 3-302 through 3-304
of this Code.
    (f)  An application for a certificate of  title  for  any
vehicle,  whether  purchased in Illinois or outside Illinois,
and even if previously registered in another State,  must  be
accompanied  by  either  an  exemption determination from the
Department of Revenue showing that no tax imposed pursuant to
the Use Tax Act or the vehicle use  tax  imposed  by  Section
3-1001  of  the  Illinois Vehicle Code is owed by anyone with
respect to that vehicle, or a receipt from the Department  of
Revenue  showing  that  any tax so imposed has been paid.  An
application for  a  certificate  of  title  for  any  vehicle
purchased  outside Illinois, even if previously registered in
another state, must be accompanied  by  either  an  exemption
determination  from the Department of Revenue showing that no
tax imposed pursuant to the Municipal  Use  Tax  Act  or  the
County  Use  Tax  Act  is owed by anyone with respect to that
vehicle, or a receipt from the Department of Revenue  showing
that  any  tax  so  imposed has been paid.  In the absence of
such a receipt for payment or determination of exemption from
the Department, no certificate of title shall  be  issued  to
the applicant.
    If  the  proof  of  payment of the tax or of nonliability
therefor is, after the issuance of the certificate  of  title
and  display  certificate  of title, found to be invalid, the
Secretary of State shall revoke the certificate  and  require
that  the  certificate  of  title  and,  when applicable, the
display certificate of title be returned to him.
    (g)  If  the  application  refers  to   a   vehicle   not
manufactured  in  accordance with federal safety and emission
standards,  the  application  must  be  accompanied  by   all
documents  required  by federal governmental agencies to meet
their standards before a vehicle  is  allowed  to  be  issued
title and registration.
    (h)  If  the  application  refers  to  a  vehicle sold at
public sale by a sheriff,  it  must  be  accompanied  by  the
required  fee  and  a  bill  of  sale  issued and signed by a
sheriff.  The bill of sale must identify the new owner's name
and address, the year model, make and vehicle  identification
number   of   the   vehicle,   court  order  document  number
authorizing such  sale,  if  applicable,  and  the  name  and
address   of   any  lienholders  in  order  of  priority,  if
applicable.
    (i)  If the application refers to a vehicle for  which  a
court of law determined the ownership, it must be accompanied
with  a  certified  copy of such court order and the required
fee.  The court order must indicate the new owner's name  and
address,  the  complete description of the vehicle, if known,
the name and address of the lienholder, if any, and  must  be
signed and dated by the judge issuing such order.
    (j)  If  the  application  refers  to  a  vehicle sold at
public auction pursuant to the Labor and Storage Lien  (Small
Amount) Act, it must be accompanied by an affidavit furnished
by  the Secretary of State along with the documents described
in the affidavit and the required fee.
(Source: P.A. 87-206; 88-45.)

    (625 ILCS 5/3-111.1) (from Ch. 95 1/2, par. 3-111.1)
    Sec. 3-111.1.  Corrected  certificates.   An  application
for  a  corrected certificate of title must state the current
vehicle odometer reading at the time of application and  that
the  stated odometer reading is one of the following:  actual
mileage, not the actual mileage or mileage is  in  excess  of
its mechanical limits. The corrected certificate issued under
this Section shall contain the notation "corrected".
(Source: P.A. 86-444.)

    (625 ILCS 5/3-112) (from Ch. 95 1/2, par. 3-112)
    Sec.  3-112.  Transfer.  (a)  If  an  owner transfers his
interest in a vehicle,  other  than  by  the  creation  of  a
security interest, at the time of the delivery of the vehicle
he shall execute to the transferee an assignment and warranty
of  title  in the space provided on the certificate of title,
or as the  Secretary  of  State  prescribes,  and  cause  the

certificate  and  assignment to be mailed or delivered to the
transferee or to the Secretary of State.
    If the vehicle is subject to a tax under the Mobile  Home
Local  Services Tax Act in a county with a population of less
than  3,000,000,  the  owner  shall  also  provide   to   the
transferee  a certification by the treasurer of the county in
which the vehicle is situated that  all  taxes  owed  by  the
owner  for  the  vehicle  have  been paid.  If the owner is a
licensed dealer who has purchased the vehicle and is  holding
it  for resale, in lieu of acquiring a certification from the
county treasurer he shall forward the certification  received
from  the  previous  owner  to the next buyer of the vehicle.
The owner shall cause  the  certification  to  be  mailed  or
delivered  to  the Secretary of State with the certificate of
title and assignment.
    (b)  Except as provided in Section 3-113, the  transferee
shall,  promptly and within 20 5 business days after delivery
to him of the vehicle and the  assigned  title,  execute  the
application  for  a  new  certificate  of  title in the space
provided therefor on the certificate or as the  Secretary  of
State  prescribes,  and cause the certificate and application
to be mailed or delivered to the Secretary of State.
    (c)  Upon  request  of  the  owner   or   transferee,   a
lienholder  in  possession of the certificate of title shall,
unless the transfer was a breach of his  security  agreement,
either deliver the certificate to the transferee for delivery
to   the  Secretary  of  State  or,  upon  receipt  from  the
transferee  of  the  owner's  assignment,  the   transferee's
application  for a new certificate and the required fee, mail
or deliver them to the Secretary of State.  The  delivery  of
the  certificate does not affect the rights of the lienholder
under his security agreement.
    (d)  If a security interest is reserved or created at the
time of the transfer,  the  certificate  of  title  shall  be
retained  by  or  delivered  to  the  person  who becomes the
lienholder, and the parties shall comply with the  provisions
of Section 3-203.
    (e)  Except  as  provided in Section 3-113 and as between
the parties, a transfer by an owner is  not  effective  until
the  provisions  of  this Section and Section 3-115 have been
complied with; however, an owner who has delivered possession
of the vehicle to the transferee and has  complied  with  the
provisions of this Section and Section 3-115 requiring action
by  him  as  not  liable  as owner for any damages thereafter
resulting from operation of the vehicle.
    (f)  The  Secretary  of  State  shall  not  process   any
application for a transfer of an interest in a vehicle if any
fees  or  taxes due under this Act from the transferor or the
transferee have not been  paid  upon  reasonable  notice  and
demand.
    (g)  If  the  Secretary  of State receives an application
for transfer of a vehicle subject to a tax  under  the  Mobil
Home  Local Services Tax Act in a county with a population of
less than 3,000,000, such application must be accompanied  by
the  required  certification  by  the county treasurer or tax
assessor authorizing the issuance of the title.
(Source: P.A. 86-226; 86-460; 86-1028.)

    (625 ILCS 5/3-114) (from Ch. 95 1/2, par. 3-114)
    Sec. 3-114.  Transfer by operation of law.
    (a) If the interest of an owner in a  vehicle  passes  to
another  other  than  by  voluntary  transfer, the transferee
shall, except as provided in paragraph (b), promptly mail  or
deliver  within  20  days  to the Secretary of State the last
certificate of title, if available, proof  of  the  transfer,
and  his  application  for  a new certificate in the form the
Secretary of State prescribes. It shall be unlawful  for  any
person  having  possession  of  a  certificate of title for a
motor vehicle, semi-trailer, or house car by  reason  of  his
having  a  lien  or  encumbrance  on such vehicle, to fail or
refuse to deliver such certificate to  the  owner,  upon  the
satisfaction   or  discharge  of  the  lien  or  encumbrance,
indicated upon such certificate of title.
    (b)  If the interest of an owner in a vehicle  passes  to
another  under the provisions of the Small Estates provisions
of the Probate Act of 1975 the transferee shall promptly mail
or deliver to the Secretary of State, within  120  days,  the
last  certificate  of  title, if available, the documentation
required under the provisions of the Probate Act of 1975, and
an application for certificate of  title.  The  Small  Estate
Affidavit  form shall be furnished by the Secretary of State.
The transfer may be to the transferee or to  the  nominee  of
the transferee.
    (c)  If  the  interest of an owner in a vehicle passes to
another under other provisions of the Probate Act of 1975, as
amended, and the transfer is  made  by  a  representative  or
guardian,  such  transferee shall promptly mail or deliver to
the Secretary of State, the last  certificate  of  title,  if
available,  and  a certified copy of the letters of office or
guardianship, and an application for  certificate  of  title.
Such  application  shall be made before the estate is closed.
The transfer may be to the transferee or to  the  nominee  of
the transferee.
    (d)  If  the interest of an owner in joint tenancy passes
to  the  other  joint  tenant  with  survivorship  rights  as
provided by  law,  the  transferee  shall  promptly  mail  or
deliver  to  the  Secretary of State, the last certificate of
title, if available, proof of death of the one  joint  tenant
and  survivorship  of  the  surviving  joint  tenant,  and an
application for certificate of title. Such application  shall
be  made within 120 days after the death of the joint tenant.
The transfer may be to the transferee or to  the  nominee  of
the transferee.
    (e)  The  Secretary  of State shall transfer a decedent's
vehicle title to any legatee, representative or heir  of  the
decedent who submits to the Secretary a death certificate and
an  affidavit  by  an  attorney  at  law  on  the  letterhead
stationery   of  the attorney at law stating the facts of the
transfer.
    (f)  In all cases wherein a lienholder has repossessed  a
vehicle,  after  the original 21 day notice to the debtor has
been fulfilled, the lienholder shall within 20 15  days  make
an application to the Secretary of State for a certificate of
title, a salvage certificate or a junking certificate, as set
forth  in  this Code. In all cases, however, the Secretary of
State shall not issue  a  certificate  of  title,  a  salvage
certificate  or  a  junking  certificate  to  such lienholder
unless the person from whom such vehicle has been repossessed
is shown to be  the  last  registered  owner  of  such  motor
vehicle  and  such lienholder establishes to the satisfaction
of the Secretary  of  State  that  he  is  entitled  to  such
certificate   of   title,   salvage  certificate  or  junking
certificate. The Secretary of State shall provide by rule for
the standards to be followed by  a  lienholder  in  order  to
obtain a certificate of title for a repossessed vehicle.
    (g)  A  person  holding  a  certificate  of  title  whose
interest  in the vehicle has been extinguished or transferred
other than by voluntary transfer shall mail  or  deliver  the
certificate,  within 20 days upon request of the Secretary of
State. The  delivery  of  the  certificate  pursuant  to  the
request  of the Secretary of State does not affect the rights
of the person surrendering the certificate, and the action of
the Secretary of State in issuing a new certificate of  title
as  provided  herein  is not conclusive upon the rights of an
owner or lienholder named in the old certificate.
    (h)  The Secretary of State may decline  to  process  any
application  for  a  transfer  of  an  interest  in a vehicle
hereunder if any fees or taxes due under this  Act  from  the
transferor   or  the  transferee  have  not  been  paid  upon
reasonable notice and demand.
    (i)  The Secretary of State shall not be held civilly  or
criminally   liable  to  any  person  because  any  purported
transferor may not have had the power or authority to make  a
transfer  of  any  interest  in  any  vehicle  or  because  a
certificate  of title issued in error is subsequently used to
commit a fraudulent act.
(Source: P.A. 87-1225.)

    (625 ILCS 5/3-116) (from Ch. 95 1/2, par. 3-116)
    Sec.  3-116.  When  Secretary  of  State   to   issue   a
certificate  of  title.  (a)  The  Secretary  of  State, upon
receipt of a properly assigned certificate of title, with  an
application  for a certificate of title, the required fee and
any other documents  required  by  law,  shall  issue  a  new
certificate  of  title in the name of the transferee as owner
and mail it to the first lienholder named in it or, if  none,
to the owner or owner's designee.
    (b)  The   Secretary   of   State,  upon  receipt  of  an
application for a new certificate of title  by  a  transferee
other than by voluntary transfer, with proof of the transfer,
the  required  fee  and  any other documents required by law,
shall issue a new certificate of title in  the  name  of  the
transferee as owner.
    (c)  Any person, firm or corporation, who shall knowingly
possess,  buy,  sell, exchange or give away, or offer to buy,
sell, exchange or give away the certificate of title  to  any
motor  vehicle  which is a junk or salvage, or who shall fail
to surrender the certificate of title  to  the  Secretary  of
State  as  required  under the provisions of this Section and
Section 3-117.2, shall be guilty of Class 3 felony.
    (d)  The Secretary of State shall  file  and  retain  for
four  (4)  years a record of every surrendered certificate of
title or proof of ownership  accepted  by  the  Secretary  of
State,  the file to be maintained so as to permit the tracing
of title of the vehicle designated therein.
    (e)  The  Secretary  of  State,  upon   receipt   of   an
application  for  corrected  certificate  of  title, with the
original title, the  required  fee  and  any  other  required
documents,  shall  issue  a corrected certificate of title in
the name of the owner and mail it  to  the  first  lienholder
named in it or, if none, to the owner or owner's designee.
    (f)  The  Secretary of State, 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, shall issue  a  certificate  of  title  to  the
applicant.
(Source: P.A. 86-820.)

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