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Public Act 92-0751
HB4407 Enrolled LRB9215293JSpc
AN ACT relating to motor vehicles.
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 Section 3-117.1 as follows:
(625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
Sec. 3-117.1. When junking certificates or salvage
certificates must be obtained.
(a) Except as provided in Chapter 4 of this Code, a
person who possesses a junk vehicle shall within 15 days
cause the certificate of title, salvage certificate,
certificate of purchase, or a similarly acceptable out of
state document of ownership to be surrendered to the
Secretary of State along with an application for a junking
certificate, except as provided in Section 3-117.2, whereupon
the Secretary of State shall issue to such a person a junking
certificate, which shall authorize the holder thereof to
possess, transport, or, by an endorsement, transfer ownership
in such junked vehicle, and a certificate of title shall not
again be issued for such vehicle.
A licensee who possesses a junk vehicle and a Certificate
of Title, Salvage Certificate, Certificate of Purchase, or a
similarly acceptable out-of-state document of ownership for
such junk vehicle, may transport the junk vehicle to another
licensee prior to applying for or obtaining a junking
certificate, by executing a uniform invoice. The licensee
transferor shall furnish a copy of the uniform invoice to the
licensee transferee at the time of transfer. In any case,
the licensee transferor shall apply for a junking certificate
in conformance with Section 3-117.1 of this Chapter. The
following information shall be contained on a uniform
invoice:
(1) The business name, address and dealer license
number of the person disposing of the vehicle, junk
vehicle or vehicle cowl;
(2) The name and address of the person acquiring
the vehicle, junk vehicle or vehicle cowl, and if that
person is a dealer, the Illinois or out-of-state dealer
license number of that dealer;
(3) The date of the disposition of the vehicle,
junk vehicle or vehicle cowl;
(4) The year, make, model, color and description of
each vehicle, junk vehicle or vehicle cowl disposed of by
such person;
(5) The manufacturer's vehicle identification
number, Secretary of State identification number or
Illinois Department of State Police number, for each
vehicle, junk vehicle or vehicle cowl part disposed of by
such person;
(6) The printed name and legible signature of the
person or agent disposing of the vehicle, junk vehicle or
vehicle cowl; and
(7) The printed name and legible signature of the
person accepting delivery of the vehicle, junk vehicle or
vehicle cowl.
The Secretary of State may certify a junking manifest in
a form prescribed by the Secretary of State that reflects
those vehicles for which junking certificates have been
applied or issued. A junking manifest may be issued to any
person and it shall constitute evidence of ownership for the
vehicle listed upon it. A junking manifest may be
transferred only to a person licensed under Section 5-301 of
this Code as a scrap processor. A junking manifest will
allow the transportation of those vehicles to a scrap
processor prior to receiving the junk certificate from the
Secretary of State.
(b) An application for a salvage certificate shall be
submitted to the Secretary of State in any of the following
situations:
(1) When an insurance company makes a payment of
damages on a total loss claim for a vehicle, the
insurance company shall be deemed to be the owner of such
vehicle and the vehicle shall be considered to be salvage
except that ownership of (i) a vehicle that has incurred
only hail damage that does not affect the operational
safety of the vehicle or (ii) any vehicle 9 model years
of age or older may, by agreement between the registered
owner and the insurance company, be retained by the
registered owner of such vehicle. The insurance company
shall promptly deliver or mail within 20 days the
certificate of title along with proper application and
fee to the Secretary of State, and a salvage certificate
shall be issued in the name of the insurance company. An
insurer making payment of damages on a total loss claim
for the theft of a vehicle may exchange the salvage
certificate for a certificate of title if the vehicle is
recovered without damage. In such a situation, the
insurer shall fill out and sign a form prescribed by the
Secretary of State which contains an affirmation under
penalty of perjury that the vehicle was recovered without
damage and the Secretary of State may, by rule or
regulation, require photographs to be submitted.
(2) When a vehicle the ownership of which has been
transferred to any person through a certificate of
purchase from acquisition of the vehicle at an auction,
other dispositions as set forth in Sections 4-208 and
4-209 of this Code, a lien arising under Section 18a-501
of this Code, or a public sale under the Abandoned Mobile
Home Act shall be deemed salvage or junk at the option of
the purchaser. The person acquiring such vehicle in such
manner shall promptly deliver or mail, within 20 days
after the acquisition of the vehicle, the certificate of
purchase, the proper application and fee, and, if the
vehicle is an abandoned mobile home under the Abandoned
Mobile Home Act, a certification from a local law
enforcement agency that the vehicle was purchased or
acquired at a public sale under the Abandoned Mobile Home
Act to the Secretary of State and a salvage certificate
or junking certificate shall be issued in the name of
that person. The salvage certificate or junking
certificate issued by the Secretary of State under this
Section shall be free of any lien that existed against
the vehicle prior to the time the vehicle was acquired by
the applicant under this Code.
(3) A vehicle which has been repossessed by a
lienholder shall be considered to be salvage only when
the repossessed vehicle, on the date of repossession by
the lienholder, has sustained damage by collision, fire,
theft, rust corrosion, or other means so that the cost of
repairing such damage, including labor, would be greater
than 33 1/3% of its fair market value without such
damage. If the lienholder determines that such vehicle
is damaged in excess of 33 1/3% of such fair market
value, the lienholder shall, before sale, transfer or
assignment of the vehicle, make application for a salvage
certificate, and shall submit with such application the
proper fee and evidence of possession. If the facts
required to be shown in subsection (f) of Section 3-114
are satisfied, the Secretary of State shall issue a
salvage certificate in the name of the lienholder making
the application. In any case wherein the vehicle
repossessed is not damaged in excess of 33 1/3% of its
fair market value, the lienholder shall comply with the
requirements of subsections (f), (f-5), and (f-10) of
Section 3-114, except that the affidavit of repossession
made by or on behalf of the lienholder shall also contain
an affirmation under penalty of perjury that the vehicle
on the date of sale is not damaged in excess of 33 1/3%
of its fair market value. If the facts required to be
shown in subsection (f) of Section 3-114 are satisfied,
the Secretary of State shall issue a certificate of title
as set forth in Section 3-116 of this Code. The Secretary
of State may by rule or regulation require photographs to
be submitted.
(4) A vehicle which is a part of a fleet of more
than 5 commercial vehicles registered in this State or
any other state or registered proportionately among
several states shall be considered to be salvage when
such vehicle has sustained damage by collision, fire,
theft, rust, corrosion or similar means so that the cost
of repairing such damage, including labor, would be
greater than 33 1/3% of the fair market value of the
vehicle without such damage. If the owner of a fleet
vehicle desires to sell, transfer, or assign his interest
in such vehicle to a person within this State other than
an insurance company licensed to do business within this
State, and the owner determines that such vehicle, at the
time of the proposed sale, transfer or assignment is
damaged in excess of 33 1/3% of its fair market value,
the owner shall, before such sale, transfer or
assignment, make application for a salvage certificate.
The application shall contain with it evidence of
possession of the vehicle. If the fleet vehicle at the
time of its sale, transfer, or assignment is not damaged
in excess of 33 1/3% of its fair market value, the owner
shall so state in a written affirmation on a form
prescribed by the Secretary of State by rule or
regulation. The Secretary of State may by rule or
regulation require photographs to be submitted. Upon
sale, transfer or assignment of the fleet vehicle the
owner shall mail the affirmation to the Secretary of
State.
(5) A vehicle that has been submerged in water to
the point that rising water has reached over the door
sill and has entered the passenger or trunk compartment
is a "flood vehicle". A flood vehicle shall be
considered to be salvage only if the vehicle has
sustained damage so that the cost of repairing the
damage, including labor, would be greater than 33 1/3% of
the fair market value of the vehicle without that damage.
The salvage certificate issued under this Section shall
indicate the word "flood", and the word "flood" shall be
conspicuously entered on subsequent titles for the
vehicle. A person who possesses or acquires a flood
vehicle that is not damaged in excess of 33 1/3% of its
fair market value shall make application for title in
accordance with Section 3-116 of this Code, designating
the vehicle as "flood" in a manner prescribed by the
Secretary of State. The certificate of title issued
shall indicate the word "flood", and the word "flood"
shall be conspicuously entered on subsequent titles for
the vehicle.
(c) Any person who without authority acquires, sells,
exchanges, gives away, transfers or destroys or offers to
acquire, sell, exchange, give away, transfer or destroy the
certificate of title to any vehicle which is a junk or
salvage vehicle shall be guilty of a Class 3 felony.
(d) Any person who knowingly fails to surrender to the
Secretary of State a certificate of title, salvage
certificate, certificate of purchase or a similarly
acceptable out-of-state document of ownership as required
under the provisions of this Section is guilty of a Class A
misdemeanor for a first offense and a Class 4 felony for a
subsequent offense; except that a person licensed under this
Code who violates paragraph (5) of subsection (b) of this
Section is guilty of a business offense and shall be fined
not less than $1,000 nor more than $5,000 for a first offense
and is guilty of a Class 4 felony for a second or subsequent
violation.
(e) Any vehicle which is salvage or junk may not be
driven or operated on roads and highways within this State.
A violation of this subsection is a Class A misdemeanor. A
salvage vehicle displaying valid special plates issued under
Section 3-601(b) of this Code, which is being driven to or
from an inspection conducted under Section 3-308 of this
Code, is exempt from the provisions of this subsection. A
salvage vehicle for which a short term permit has been issued
under Section 3-307 of this Code is exempt from the
provisions of this subsection for the duration of the permit.
(Source: P.A. 89-669, eff. 1-1-97; 90-665, eff. 1-1-99.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 15, 2002.
Approved August 02, 2002.
Effective August 02, 2002.
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