HB 947 — VEH CD-TRANSFER-OPERATN LAW

HB0947 EngrossedEnrolled LRB094 06720 DRH 36819 b AN ACT concerning transportation.

(c) If the interest of an owner in a vehicle passes to another under other provisions of the Probate Act of 1975, as HB0947 EngrossedEnrolled - 2 - LRB094 06720 DRH 36819 b 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.

The application for a certificate of title made by the purchaser shall comply HB0947 EngrossedEnrolled - 3 - LRB094 06720 DRH 36819 b with subsection (a) of Section 3-104 and be accompanied by the existing certificate of title for the repossessed vehicle.

(i) the name of the owner of record and in bold type at or near the top of the notice a statement that the owner’s vehicle was repossessed on a specified date for failure to make payments on the loan (or other reason), (ii) a description of the vehicle subject to the lien sufficient to identify it, (iii) the right of the HB0947 EngrossedEnrolled - 4 - LRB094 06720 DRH 36819 b owner to redeem the vehicle, (iv) the lienholder’s intent to sell or otherwise dispose of the vehicle after the expiration of 21 days from the date of mailing or delivery of the notice, and (v) the name, address, and telephone number of the lienholder from whom information may be obtained concerning the amount due to redeem the vehicle and from whom the vehicle may be redeemed under Section 9-623 of the Uniform Commercial Code.

HB0947 EngrossedEnrolled - 5 - LRB094 06720 DRH 36819 b (3) Upon selling the vehicle to another person, the lienholder need not send the certificate of title to the Secretary of State, but shall promptly and within 20 days mail or deliver to the purchaser as transferee (i) the existing certificate of title for the repossessed vehicle, reflecting the release of the lienholder’s security interest in the vehicle;

The lienholder shall complete the assignment of title in the certificate of title to reflect the transfer of the vehicle to the lienholder and also a HB0947 EngrossedEnrolled - 6 - LRB094 06720 DRH 36819 b reassignment to reflect the transfer from the lienholder to the purchaser.

(1) Subject to subsection (f-30), if If, at the time of HB0947 EngrossedEnrolled - 7 - LRB094 06720 DRH 36819 b repossession by a lienholder that is seeking to transfer title pursuant to subsection (f-5), the owner has paid an amount equal to 30% or more of the deferred payment price or total of payments due, the owner may, within 21 days of the date of repossession, reinstate the contract or loan agreement and recover the vehicle from the lienholder by tendering in a lump sum (i) the total of all unpaid amounts, including any unpaid delinquency or deferral charges due at the date of reinstatement, without acceleration;

(3) The lienholder shall deliver or mail written notice to the owner at the owner’s last known address, within 3 business days of the date of repossession, of the owner’s right to reinstate the contract or loan agreement and recover the vehicle pursuant to the limited right of HB0947 EngrossedEnrolled - 8 - LRB094 06720 DRH 36819 b reinstatement described in this subsection.

In all cases wherein a lienholder has repossessed a vehicle by judicial HB0947 EngrossedEnrolled - 9 - LRB094 06720 DRH 36819 b process and holds it for resale under a security agreement, order for replevin, or other court order establishing the lienholder’s right to possession of the vehicle, the lienholder may proceed to sell or otherwise dispose of the vehicle as authorized under the Uniform Commercial Code or the court order.

Delivery of the existing certificate of title to the purchaser HB0947 EngrossedEnrolled - 10 - LRB094 06720 DRH 36819 b shall be deemed disclosure to the purchaser of the owner of the vehicle.

(f-25) If the interest of an owner in a mobile home, as defined in the Mobile Home Local Services Tax Act, passes to HB0947 EngrossedEnrolled - 11 - LRB094 06720 DRH 36819 b another under the provisions of the Mobile Home Local Services Tax Enforcement Act, the transferee shall promptly mail or deliver to the Secretary of State (i) the last certificate of title, if available, (ii) a certified copy of the court order ordering the transfer of title, and (iii) an application for certificate of title.

The notation of "bankruptcy" means the lienholder makes no sworn representations regarding the mailing or delivery of the notice of redemption or affidavit of defense or lienholder’s compliance with the requirements that otherwise apply to the notices listed in this subsection (f-30), and makes no sworn representation that the lienholder assumes liability or costs for any litigation that may arise from the issuance of a certificate of title HB0947 EngrossedEnrolled - 12 - LRB094 06720 DRH 36819 b based on the excluded representations;