Bill Text: IL HB3863 | 2009-2010 | 96th General Assembly | Enrolled

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Bill Title: Amends the Code of Civil Procedure. Provides that the homeowner notice attached to the summons in a residential mortgage foreclosure action shall include directions concerning giving written notice to any tenants about the foreclosure and the tenant's right to remain on the premises. Provides that an occupant may file an action for failure to provide notice and recover $200 plus actual damages, attorney's fees, and costs. Provides that a purchaser of property in a foreclosure must give notice to any occupants of the property that he or she has acquired the mortgaged real estate. Provides that a mortgagor in a foreclosure must notify any occupant or potential occupant of the foreclosure action. Provides that the purchaser of property sold at a court foreclosure sale must provide a notice of rights to occupants of the property within 7 days after the confirmation of the sale. Provides that until the rights of possession of all occupants of foreclosed property have been terminated, the purchaser of foreclosed property must maintain the property in a condition that is safe, healthful, and fit for occupancy. Provides that a receiver shall give similar written notices and may not increase the rent without leave of court. Provides that the court may allow a rent increase by a receiver or a mortgagee in possession if it finds that an increase is necessary to operate the property, after notice to all occupants affected by an increase, but nothing in the Act shall alter the lease. Makes other changes. Effective immediately.

Spectrum: Strong Partisan Bill (Democrat 17-1)

Status: (Passed) 2009-07-31 - Public Act . . . . . . . . . 96-0111 [HB3863 Detail]

Download: Illinois-2009-HB3863-Enrolled.html

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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Code of Civil Procedure is amended by
changing Sections 15-1701, 15-1703, and 15-1704 and by adding
Sections 15-1202.5 and 15-1508.5 as follows:
(735 ILCS 5/15-1202.5 new)
Sec. 15-1202.5. Dwelling unit. For the purposes of Sections
15-1508.5, 15-1703, and 15-1704 only, "dwelling unit" means a
room or suite of rooms providing complete, independent living
facilities for at least one person, including permanent
provisions for sanitation, cooking, eating, sleeping, and
other activities routinely associated with daily life.
(735 ILCS 5/15-1508.5 new)
Sec. 15-1508.5. Notice by holder or purchaser to known
occupants of dwelling units of mortgaged real estate.
(a) The holder of the certificate of sale or deed issued
pursuant to that certificate or, if no certificate or deed was
issued, the purchaser, shall:
(1) following the judicial sale under Section 15-1507,
but no later than 21 days after the confirmation of sale
under Section 15-1508, make a good faith effort to

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ascertain the identities and addresses of all occupants of
dwelling units of the mortgaged real estate; and
(2) following the order confirming sale under Section
15-1508, but no later than 21 days after the order
confirming sale, notify all known occupants of dwelling
units of the mortgaged real estate that the holder or
purchaser has acquired the mortgaged real estate. The
notice shall be in writing and shall:
(i) identify the occupant being served by the name
known to the holder or purchaser;
(ii) inform the occupant that the mortgaged real
estate at which the dwelling unit is located is the
subject of a foreclosure and that control of the
mortgaged real estate has changed;
(iii) provide the name, address, and telephone
number of an individual or entity whom the occupants
may contact with concerns about the mortgaged real
estate or to request repairs of that property;
(iv) include the following language, or language
that is substantially similar: "This is NOT a notice to
vacate the premises. You may wish to contact a lawyer
or your local legal aid or housing counseling agency to
discuss any rights that you may have."; and
(v) include the name of the case, the case number,
and the court where the order confirming the sale has
been entered.

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(b) The written notice required by subsection (a) of this
Section shall be served by delivering a copy thereof to the
known occupant, or by leaving the same with some person of the
age of 13 years or upwards who is residing on or in possession
of the premises, or by sending a copy of the notice to the
known occupant by first-class mail, addressed to the occupant
by the name known to the holder or purchaser.
(c) In the event that the holder or purchaser ascertains
the identity and address of an occupant of a dwelling unit of
the mortgaged real estate more than 21 days after the
confirmation of sale under Section 15-1508, the holder or
purchaser shall provide the notice required by subparagraph (2)
of subsection (a) within 7 days of ascertaining the identity
and address of the occupant.
(d)(i) A holder or purchaser who fails to comply with
subsections (a), (b), and (c) may not collect any rent due and
owing from a known occupant, or terminate a known occupant's
tenancy for non-payment of such rent, until the holder or
purchaser has served the notice described in paragraph (2) of
subsection (a) of this Section upon the known occupant. After
providing such notice, the holder or purchaser may collect any
and all rent otherwise due and owing the holder or purchaser
from the known occupant and may terminate the known occupant's
tenancy for non-payment of such rent if the holder or purchaser
otherwise has such right to terminate.
(ii) An occupant who previously paid rent for the current

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rental period to the mortgagor, or other entity with the
authority to operate, manage, and conserve the mortgaged real
estate at the time of payment, shall not be held liable for
that rent by the holder or purchaser, and the occupant's
tenancy shall not be terminated for non-payment of rent for
that rental period.
(e) Within 21 days of the confirmation of sale under
Section 15-1508, the holder or purchaser shall post a written
notice on the primary entrance of each dwelling unit subject to
the foreclosure action. This notice shall:
(i) inform occupant that the dwelling unit is the
subject of a foreclosure action and that control of the
mortgaged real estate has changed;
(ii) include the following language: "This is NOT a
notice to vacate the premises."; and
(iii) provide the name, address, and telephone number
of the individual or entity whom occupants may contact with
concerns about the mortgaged real estate or to request
repairs of the property.
(f)(i) The provisions of subsection (d) of this Section
shall be the exclusive remedy for the failure of a holder or
purchaser to provide notice to a known occupant under this
Section.
(ii) This Section shall not abrogate any right that a
holder or purchaser may have to possession of the mortgaged
real estate and to maintain a proceeding against an occupant of

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a dwelling unit for possession under Article 9 of this Code or
subsection (h) of Section 15-1701.
(iii) In the event that the holder or purchaser is a
mortgagee in possession of the mortgaged real estate pursuant
to Section 15-1703 at the time of the confirmation of sale and
has complied with requirements of subsection (a-5) of Section
15-1703, the holder or purchaser is excused from the
requirements of subsections (a) and (e) of this Section.
(iv) A holder or purchaser is not required to provide the
notice required by this Section to a mortgagor or party against
whom an order of possession has been entered authorizing the
removal of the mortgagor or party pursuant to subsection (g) of
Section 15-1508.
(735 ILCS 5/15-1701) (from Ch. 110, par. 15-1701)
Sec. 15-1701. Right to possession.
(a) General. The provisions of this Article shall govern
the right to possession of the mortgaged real estate during
foreclosure. Possession under this Article includes physical
possession of the mortgaged real estate to the same extent to
which the mortgagor, absent the foreclosure, would have been
entitled to physical possession. For the purposes of Part 17,
real estate is residential real estate only if it is
residential real estate at the time the foreclosure is
commenced.
(b) Pre-Judgment. Prior to the entry of a judgment of

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foreclosure:
(1) In the case of residential real estate, the
mortgagor shall be entitled to possession of the real
estate except if (i) the mortgagee shall object and show
good cause, (ii) the mortgagee is so authorized by the
terms of the mortgage or other written instrument, and
(iii) the court is satisfied that there is a reasonable
probability that the mortgagee will prevail on a final
hearing of the cause, the court shall upon request place
the mortgagee in possession. If the residential real estate
consists of more than one dwelling unit, then for the
purpose of this Part residential real estate shall mean
only that dwelling unit or units occupied by persons
described in clauses (i), (ii) and (iii) of Section
15-1219.
(2) In all other cases, if (i) the mortgagee is so
authorized by the terms of the mortgage or other written
instrument, and (ii) the court is satisfied that there is a
reasonable probability that the mortgagee will prevail on a
final hearing of the cause, the mortgagee shall upon
request be placed in possession of the real estate, except
that if the mortgagor shall object and show good cause, the
court shall allow the mortgagor to remain in possession.
(c) Judgment Through 30 Days After Sale Confirmation. After
the entry of a judgment of foreclosure and through the 30th day
after a foreclosure sale is confirmed:

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(1) Subsection (b) of Section 15-1701 shall be
applicable, regardless of the provisions of the mortgage or
other instrument, except that after a sale pursuant to the
judgment the holder of the certificate of sale (or, if
none, the purchaser at the sale) shall have the mortgagee's
right to be placed in possession, with all rights and
duties of a mortgagee in possession under this Article.
(2) Notwithstanding paragraph (1) of subsection (b)
and paragraph (1) of subsection (c) of Section 15-1701,
upon request of the mortgagee, a mortgagor of residential
real estate shall not be allowed to remain in possession
between the expiration of the redemption period and through
the 30th day after sale confirmation unless (i) the
mortgagor pays to the mortgagee or such holder or
purchaser, whichever is applicable, monthly the lesser of
the interest due under the mortgage calculated at the
mortgage rate of interest applicable as if no default had
occurred or the fair rental value of the real estate, or
(ii) the mortgagor otherwise shows good cause. Any amounts
paid by the mortgagor pursuant to this subsection shall be
credited against the amounts due from the mortgagor.
(d) After 30 Days After Sale Confirmation. The holder of
the certificate of sale or deed issued pursuant to that
certificate or, if no certificate or deed was issued, the
purchaser, except to the extent the holder or purchaser may
consent otherwise, shall be entitled to possession of the

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mortgaged real estate, as of the date 30 days after the order
confirming the sale is entered, against those parties to the
foreclosure whose interests the court has ordered terminated,
without further notice to any party, further order of the
court, or resort to proceedings under any other statute other
than this Article. This right to possession shall be limited by
the provisions governing entering and enforcing orders of
possession under subsection (g) of Section 15-1508. If the
holder or purchaser determines that there are occupants of the
mortgaged real estate who have not been made parties to the
foreclosure and had their interests terminated therein, the
holder or purchaser may bring a proceeding under subsection (h)
of this Section or under Article 9 of this Code to terminate
the rights of possession of any such occupants. The holder or
purchaser shall not be entitled to proceed against any such
occupant under Article 9 of this Code until after 30 days after
the order confirming the sale is entered.
(e) Termination of Leases. A lease of all or any part of
the mortgaged real estate shall not be terminated automatically
solely by virtue of the entry into possession by (i) a
mortgagee or receiver prior to the entry of an order confirming
the sale, (ii) the holder of the certificate of sale, (iii) the
holder of the deed issued pursuant to that certificate, or (iv)
if no certificate or deed was issued, the purchaser at the
sale.
(f) Other Statutes; Instruments. The provisions of this

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Article providing for possession of mortgaged real estate shall
supersede any other inconsistent statutory provisions. In
particular, and without limitation, whenever a receiver is
sought to be appointed in any action in which a foreclosure is
also pending, a receiver shall be appointed only in accordance
with this Article. Except as may be authorized by this Article,
no mortgage or other instrument may modify or supersede the
provisions of this Article.
(g) Certain Leases. Leases of the mortgaged real estate
entered into by a mortgagee in possession or a receiver and
approved by the court in a foreclosure shall be binding on all
parties, including the mortgagor after redemption, the
purchaser at a sale pursuant to a judgment of foreclosure and
any person acquiring an interest in the mortgaged real estate
after entry of a judgment of foreclosure in accordance with
Sections 15-1402 and 15-1403.
(h) Proceedings Against Certain Occupants.
(1) The mortgagee-in-possession of the mortgaged real
estate under Section 15-1703, a receiver appointed under
Section 15-1704, a holder of the certificate of sale or
deed, or the purchaser may, at any time during the pendency
of the foreclosure and up to 90 days after the date of the
order confirming the sale, file a supplemental petition for
possession against a person not personally named as a party
to the foreclosure. The supplemental petition for
possession shall name each such occupant against whom

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possession is sought and state the facts upon which the
claim for relief is premised.
(2) The petitioner shall serve upon each named occupant
the petition, a notice of hearing on the petition, and, if
any, a copy of the certificate of sale or deed. The
proceeding for the termination of such occupant's
possessory interest, including service of the notice of the
hearing and the petition, shall in all respects comport
with the requirements of Article 9 of this Code, except as
otherwise specified in this Section. The hearing shall be
no less than 21 days from the date of service of the
notice.
(3) The supplemental petition shall be heard as part of
the foreclosure proceeding and without the payment of
additional filing fees. An order for possession obtained
under this Section shall name each occupant whose interest
has been terminated, shall recite that it is only effective
as to the occupant so named and those holding under them,
and shall be enforceable for no more than 90 days after its
entry, except that the 90-day period may be extended to the
extent and in the manner provided in Section 9-117 of
Article 9 and except as provided in item (4) of this
subsection (h).
(4) In a case of foreclosure where the occupant tenant
is current on his or her rent, or where timely written
notice of to whom and where the rent is to be paid has not

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been provided to the occupant tenant, or where the occupant
tenant has made good-faith efforts to make rental payments
in order to keep current, any order of possession must
allow the occupant tenant to retain possession of the
property covered in his or her rental agreement (i) for 120
days following the notice of the hearing on the
supplemental petition that has been properly served upon
the occupant tenant, or (ii) through the duration of his or
her lease, whichever is shorter, provided that if the
duration of his or her lease is less than 30 days from the
date of the order, the order shall allow the occupant to
retain possession for 30 days from the date of the order. A
mortgagee in possession, receiver, holder of a certificate
of sale or deed, or purchaser at the judicial sale, who
asserts that the occupant is not current in rent, shall
file an affidavit to that effect in the supplemental
petition proceeding. If the occupant tenant has been given
timely written notice of to whom and where the rent is to
be paid, this item (4) shall only apply if the occupant
tenant continues to pay his or her rent in full during the
120-day period or has made good-faith efforts to pay the
rent in full during that period. No
mortgagee-in-possession, receiver or holder of a
certificate of sale or deed, or purchaser who fails to file
a supplemental petition under this subsection during the
pendency of a mortgage foreclosure shall file a forcible

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entry and detainer action against an occupant a tenant of
the mortgaged real estate until 90 days after a notice of
intent to file such action has been properly served upon
the occupant tenant.
(5) The court records relating to a supplemental
petition for possession filed under this subsection (h)
against an occupant a tenant who is entitled to notice
under item (4) of this subsection (h), or relating to a
forcible entry and detainer action brought against an
occupant a tenant who would have lawful possession of the
premises but for the foreclosure of a mortgage on the
property, shall be ordered sealed and shall not be
disclosed to any person, other than a law enforcement
officer or any other representative of a governmental
entity, except upon further order of the court.
(Source: P.A. 95-262, eff. 1-1-08; 95-933, eff. 8-26-08.)
(735 ILCS 5/15-1703) (from Ch. 110, par. 15-1703)
Sec. 15-1703. Mortgagee in Possession. (a) Powers and
Duties. A mortgagee placed in possession of the real estate
pursuant to Section 15-1701 or Section 15-1702 shall have:
(1) such power and authority with respect to the real
estate and other property subject to the mortgage,
including the right to receive the rents, issues and
profits thereof, as may have been conferred upon the
mortgagee by the terms of the mortgage or other written

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instrument authorizing the taking of possession;
(2) all other rights and privileges of a mortgagee in
possession under law not inconsistent herewith; and
(3) the same powers, duties and liabilities as a
receiver appointed for the real estate in accordance with
this Article. If an order placing a mortgagee in possession
is modified, revoked or set aside, the mortgagee shall not
be liable for any damages to the extent such damages arise
solely out of the fact that the mortgagor was removed from
possession or that the mortgagee was placed in possession.
(a-5) Notice to occupants.
(1) Following the order placing the mortgagee in
possession of the mortgaged real estate, but no later than
21 days after the entry of such order, the mortgagee in
possession shall make a good faith effort to ascertain the
identities and addresses of all occupants of dwelling units
of the mortgaged real estate.
(2) Following the order placing the mortgagee in
possession of the mortgaged real estate, but no later than
21 days after the entry of such order, the mortgagee in
possession shall notify all known occupants of dwelling
units of the mortgaged real estate that the mortgagee has
taken possession of the mortgaged real estate. The notice
shall be in writing and shall:
(i) identify the occupant being served by the name
known to the mortgagee in possession;

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(ii) inform the occupant that the mortgaged real
estate at which the dwelling unit is located is the
subject of a foreclosure action and that control of the
mortgaged real estate has changed;
(iii) provide the name, address, and telephone
number of the individual or entity whom occupants may
contact with concerns about the mortgaged real estate
or to request repairs of that property;
(iv) include the following language, or language
that is substantially similar: "This is NOT a notice to
vacate the premises. You may wish to contact a lawyer
or your local legal aid or housing counseling agency to
discuss any rights that you may have."; and
(v) include the name of the case, the case number,
and the court where the foreclosure action is pending.
(3) The written notice required by item (2) of this
subsection (a-5) shall be served by delivering a copy
thereof to the known occupant, or by leaving the same with
some person of the age of 13 years or upwards, who is
residing on or in possession of the premises; or by sending
a copy of the notice to the known occupant by first-class
mail, addressed to the occupant by the name known to the
mortgagee in possession.
(4) In the event that a mortgagee in possession
ascertains the identity and address of an occupant of a
dwelling unit of the mortgaged real estate more than 21

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days after being placed in possession of the mortgaged real
estate pursuant to Section 15-1703, the mortgagee in
possession shall provide the notice required by item (2) of
this subsection (a-5) within 7 days of ascertaining the
identity and address of the occupant.
(5)(i) A mortgagee in possession who fails to comply
with items (1), (2), (3), and (4) of this subsection (a-5)
may not collect any rent due and owing from a known
occupant, or terminate a known occupant's tenancy for
non-payment of such rent, until the mortgagee in possession
has served the notice described in item (2) of this
subsection (a-5) upon the known occupant. After providing
such notice, the mortgagee in possession may collect any
and all rent otherwise due and owing the mortgagee in
possession from the known occupant and may terminate the
known occupant's tenancy for non-payment of such rent if
the mortgagee in possession otherwise has such right to
terminate.
(ii) An occupant who previously paid rent for the
current rental period to the mortgagor, or other entity
with the authority to operate, manage, and conserve the
mortgaged real estate at the time of payment, shall not be
held liable for that rent by the mortgagee in possession,
and the occupant's tenancy shall not be terminated for
non-payment of rent for that rental period.
(6) Within 21 days of the order placing the mortgagee

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in possession of the mortgaged real estate, the mortgagee
in possession shall post a written notice on the primary
entrance of each dwelling unit subject to the foreclosure
action that informs the occupants that the mortgagee in
possession is now operating and managing the mortgaged real
estate. This notice shall:
(i) inform occupant that the dwelling unit is the
subject of a foreclosure action and that control of the
mortgaged real estate has changed;
(ii) include the following language: "This is NOT a
notice to vacate the premises."; and
(iii) provide the name, address, and telephone
number of the individual or entity whom occupants may
contact with concerns about the mortgaged real estate
or to request repairs of the property.
(7)(i) The provisions of item (5) of this subsection
(a-5) shall be the exclusive remedy for the failure of a
mortgagee in possession to provide notice to a known
occupant under this Section.
(ii) This Section shall not abrogate any right that a
mortgagee in possession may have to possession of the
mortgaged real estate and to maintain a proceeding against
an occupant of a dwelling unit for possession under Article
9 of this Code or subsection (h) of Section 15-1701.
(b) Fees and Expenses. A mortgagee in possession shall not
be entitled to any fees for so acting, but shall be entitled to

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reimbursement for reasonable costs, expenses and third party
management fees incurred in connection with such possession.
(Source: P.A. 84-1462.)
(735 ILCS 5/15-1704) (from Ch. 110, par. 15-1704)
Sec. 15-1704. Receivers. (a) Receiver. Notwithstanding the
provisions of subsections (b), (c) and (d) of Section 15-1701,
and except as provided in Section 15-1702, upon request of any
party and a showing of good cause, the court shall appoint a
receiver for the mortgaged real estate.
(b) Powers. A receiver appointed pursuant to this Article
shall have possession of the mortgaged real estate and other
property subject to the mortgage during the foreclosure, shall
have full power and authority to operate, manage and conserve
such property, and shall have all the usual powers of receivers
in like cases. Without limiting the foregoing, a receiver shall
have the power and authority to:
(1) secure tenants and execute leases for the real
estate, the duration and terms of which are reasonable and
customary for the type of use involved, and such leases
shall have the same priority as if made by the owner of the
real estate; but, unless approved by the Court, the
receiver shall not execute oil, gas or other mineral
leases, or (even if otherwise allowed by law) leases
extending beyond the time of the receiver's possession;
provided, however, with respect to residential real estate

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leased by the receiver, nothing in this Section shall
affect the legal rights of any lessee with respect to the
safety and habitability of the residential real estate;
(2) collect the rents, issues and profits from the
mortgaged real estate;
(3) insure the mortgaged real estate against loss by
fire or other casualty;
(4) employ counsel, custodians, janitors and other
help; and
(5) pay taxes which may have been or may be levied
against the mortgaged real estate.
(c) Duties. A receiver appointed pursuant to this Article
must manage the mortgaged real estate as would a prudent
person, taking into account the effect of the receiver's
management on the interest of the mortgagor. A receiver may,
without an order of the court, delegate managerial functions to
a person in the business of managing real estate of the kind
involved who is financially responsible, not related to the
mortgagee or receiver and prudently selected. However, the
receiver shall remain responsible to the mortgagor or other
persons for the acts or omissions of such management agent.
When fees are paid to such a management agent, the receiver's
fees may be adjusted to the extent the court deems appropriate.
In managing the mortgaged real estate and other property
subject to the mortgage, a receiver or receiver's delegate, to
the extent the receiver receives sufficient receipts from the

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mortgaged real estate, such other property or other sources,
except to the extent ordered otherwise by the court:
(1) shall maintain the existing casualty and liability
insurance required in accordance with the mortgage or
applicable to the real estate and other property subject to
the mortgage at the time the receiver took possession;
(2) shall use reasonable efforts to maintain the real
estate and other property subject to the mortgage in at
least as good condition as existed at the time the receiver
took possession, excepting reasonable wear and tear and
damage by any casualty;
(2.5) shall accept all rental payments from an occupant
of the mortgaged property, and any payments from a third
party or any rental assistance program in support of an
occupant's housing;
(3) shall apply receipts to payment of ordinary
operating expenses, including royalties, rents and other
expenses of management;
(4) shall pay any shared or common expense assessments
due to any association of owners of interests in real
estate to the extent that such assessments are or may
become a lien against the mortgaged real estate;
(5) may pay the amounts due under any mortgage if the
mortgagee thereof is not a party in the foreclosure;
(6) may carry such additional casualty and liability
insurance as is reasonably available and reasonable as to

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amounts and risks covered;
(7) may make other repairs and improvements necessary
to comply with building, housing, and other similar codes
or with existing contractual obligations affecting the
mortgaged real estate;
(8) may hold receipts as reserves reasonably required
for the foregoing purposes; and
(9) may take such other actions as may be reasonably
necessary to conserve the mortgaged real estate and other
property subject to the mortgage, or as otherwise
authorized by the court.
(d) Allocation of Receipts. Receipts received from
operation of the real estate and other property subject to the
mortgage by the receiver shall be applied in the following
order of priority.
(1) to reimbursement of the receiver for all reasonable
costs and expenses incurred by the receiver or the
receiver's delegates;
(2) to payment of insurance premiums authorized in
paragraph (1) of subsection (c) of Section 15-1704;
(3) to payment of the receiver's delegates of any
reasonable management fees for managing real estate of the
type involved;
(4) to payment of receiver's fees allowed by the court;
(5) to payment of expenses authorized in paragraphs
(2), (3) and (4) of subsection (c) of Section 15-1704;

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(6) to payment of amounts authorized in paragraph (5)
of subsection (c) of Section 15-1704;
(7) to payment of expenses authorized in paragraphs (6)
and (7) of subsection (c) of Section 15-1704; and
(8) the balance, if any, shall be held or disbursed as
ordered by the court.
(e) Non-Liability for Allocations. A receiver shall in no
event be liable to any person for the allocation of, or failure
to allocate, receipts to possible expenditures within the same
priority category.
(f) Notice to occupants.
(1) Following an order appointing a receiver pursuant
to Section 15-1704, but no later than 21 days after the
entry of such order, the appointed receiver shall make a
good faith effort to ascertain the identities and addresses
of all occupants of dwelling units of the mortgaged real
estate.
(2) Following an order appointing a receiver pursuant
to Section 15-1704, but no later than 21 days after the
entry of such order, the appointed receiver shall notify
all known occupants of dwelling units of the mortgaged real
estate that the receiver has been appointed receiver of the
mortgaged real estate. Such notice shall be in writing and
shall:
(i) identify the occupant being served by the name
known to the receiver;

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(ii) inform the occupant that the mortgaged real
estate at which the dwelling unit is located is the
subject of a foreclosure action and that control of the
mortgaged real estate has changed;
(iii) provide the name, address, and telephone
number of the individual or entity whom occupants may
contact with concerns about the mortgaged real estate
or to request repairs of that property;
(iv) include the following language, or language
that is substantially similar: "This is NOT a notice to
vacate the premises. You may wish to contact a lawyer
or your local legal aid or housing counseling agency to
discuss any rights that you may have."; and
(v) include the name of the case, the case number,
and the court where the foreclosure action is pending.
(3) The written notice required by item (2) of this
subsection (f) shall be served by delivering a copy thereof
to the known occupant, or by leaving the same with some
person of the age of 13 years or upwards, who is residing
on or in possession of the premises; or by sending a copy
of the notice to the known occupant by first-class mail,
addressed to the occupant by the name known to the
receiver.
(4) In the event that a receiver ascertains the
identity and address of an occupant of a dwelling unit of
the mortgaged real estate more than 21 days after

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appointment pursuant to Section 15-1704, the receiver
shall provide the notice required by item (2) of this
subsection (f) within 7 days of ascertaining the identity
and address of the occupant.
(5)(i) A receiver who fails to comply with items (1),
(2), (3), and (4) of this subsection (f) may not collect
any rent due and owing from a known occupant, or terminate
a known occupant's tenancy for non-payment of such rent,
until the receiver has served the notice described in item
(2) of this subsection (f) upon the known occupant. After
providing such notice, the receiver may collect any and all
rent otherwise due and owing the receiver from the known
occupant and may terminate the known occupant's tenancy for
non-payment of such rent if the receiver otherwise has such
right to terminate.
(ii) An occupant who previously paid rent for the
current rental period to the mortgagor, or other entity
with the authority to operate, manage, and conserve the
mortgaged real estate at the time of payment, shall not be
held liable for that rent by the receiver, and the
occupant's tenancy shall not be terminated for non-payment
of rent for that rental period.
(6) Within 21 days of appointment, the receiver shall
post a written notice on the primary entrance of each
dwelling unit subject to the foreclosure action that
informs occupants that the receiver has been appointed to

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operate and manage the property. This notice shall:
(i) inform occupant that the dwelling unit is the
subject of a foreclosure action and that control of the
mortgaged real estate has changed;
(ii) include the following language: "This is NOT a
notice to vacate the premises."; and
(iii) provide the name, address, and telephone
number of the individual or entity whom occupants may
contact with concerns about the mortgaged real estate
or to request repairs of the property.
(7)(i) The provisions of item (5) of this subsection
(f) shall be the exclusive remedy for the failure of a
receiver to provide notice to a known occupant under this
Section.
(ii) This Section shall not abrogate any right that a
receiver may have to possession of the mortgaged real
estate and to maintain a proceeding against an occupant of
a dwelling unit for possession under Article 9 of this Code
or subsection (h) of Section 15-1701.
(g) Increase of rents. Notwithstanding any other provision
of this Article, a receiver shall not charge an occupant of the
mortgaged real estate a rental amount above that which the
occupant had been paying for use and occupancy of the mortgaged
real estate prior to the appointment of a receiver without
leave of court. The court may allow an increase of rent if,
upon motion by the receiver, the court finds by a preponderance

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of the evidence, that the increase of rent is necessary to
operate, manage, and conserve the mortgaged real estate
pursuant to this Section. A list of the current rents for each
unit in the mortgaged real estate, and a list of the proposed
rent increase for each of those units, must be attached to a
motion for a rent increase under this subsection (g). All
occupants of the mortgaged real estate who may be affected by
the motion for a rent increase, if not otherwise entitled to
notice, shall be notified in writing of the nature of the
motion, the date and time of the motion, and the court where
the motion will be heard. Such notice shall be by personal
service or first-class mail. In the event that the receiver and
an occupant of a dwelling unit agree to a rent increase for
that dwelling unit, the receiver is excused from the
requirements of this subsection (g) as to that dwelling unit.
Nothing in this subsection (g) shall alter the terms of any
lease agreement.
(h) (f) Removal. The court may remove a receiver upon a
showing of good cause, in which case a new receiver may be
appointed in accordance with subsection (b) of Section 15-1702
and subsection (a) of Section 15-1704.
(Source: P.A. 84-1462.)
Section 98. Compliance. In a foreclosure action filed on or
before the effective date of this Act, a holder or purchaser,
receiver, or mortgagee in possession required to serve notice

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or otherwise comply with Section 15-1508.5, subsection (a-5) of
Section 15-1703, and subsection (f) of 15-1704 shall have an
additional 60 days to comply with the provisions of this Act.
Section 99. Effective date. This Act takes effect 90 days
after becoming law.