Bill Text: IL SB1657 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the Mortgage Act. Adds a person authorized by the mortgagor, grantor, heir, legal representative, or assign to the list of those who may request that the mortgagee of real property shall make, execute, and deliver an instrument in writing releasing a mortgage or deed of trust. Provides that if any mortgagee or trustee shall not, within 30 days (rather than "one month") after the payment of the debt secured by the mortgage or trust deed complies with specific requirements, then he or she shall be liable for the sum of $200 to the aggrieved party. Provides that the successor in interest to the mortgagee or trustee shall not be liable for the $200 penalty if he or she complies with specific requirements within 30 days (rather than "one month") after succeeding to the interest.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed) 2019-06-28 - Rule 19(a) / Re-referred to Rules Committee [SB1657 Detail]

Download: Illinois-2019-SB1657-Engrossed.html



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1 AN ACT concerning civil law.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Mortgage Act is amended by changing Sections
52 and 4 as follows:
6 (765 ILCS 905/2) (from Ch. 95, par. 52)
7 Sec. 2. Every mortgagee of real property, his or her
8assignee of record, or other legal representative, having
9received full satisfaction and payment of all such sum or sums
10of money as are really due to him or her from the mortgagor,
11and every trustee, or his or her successor in trust, in a deed
12of trust in the nature of a mortgage, the notes, bonds or other
13indebtedness secured thereby having been fully paid before
14September 7, 1973, shall, at the request of the mortgagor, or
15grantor in a deed of trust in the nature of a mortgage, his or
16her heirs, legal representatives or assigns, or a person
17authorized by such mortgagor, grantor, heir, legal
18representative, or assign, in case such mortgage or trust deed
19has been recorded or registered, make, execute and deliver to
20the mortgagor or grantor in a deed of trust in the nature of a
21mortgage, his or her heirs, legal representatives or assigns,
22or a person authorized by the mortgagor, grantor, heir, legal
23representative, or assign, an instrument in writing executed in

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1conformity with the provisions of this Section section
2releasing such mortgage or deed of trust in the nature of a
3mortgage, which release shall be entitled to be recorded or
4registered and the recorder or registrar upon receipt of such a
5release and the payment of the recording fee therefor shall
6record or register the same.
7 Mortgages of real property and deeds of trust in the nature
8of a mortgage shall be released of record only in the manner
9provided herein or as provided in the Mortgage Certificate of
10Release Act; however, nothing contained in this Act shall in
11any manner affect the validity of any release of a mortgage or
12deed of trust made prior to January 1, 1952 on the margin of
13the record.
14 Except in the case of a mortgage that is required to be
15released under the Mortgage Certificate of Release Act, every
16mortgagee of real property, his or her assignee of record, or
17other legal representative, having received full satisfaction
18and payment of all such sum or sums of money as are really due
19to him or her from the mortgagor, and every trustee, or his or
20her successor in trust, in a deed of trust in the nature of a
21mortgage, the notes, bonds or other indebtedness secured
22thereby having been fully paid after September 7, 1973, shall
23make, execute and deliver to the mortgagor or grantor in a deed
24of trust in the nature of a mortgage, his or her heirs, legal
25representatives or assigns, or person authorized by such
26mortgagor, grantor, heir, legal representative, or assign, an

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1instrument in writing releasing such mortgage or deed of trust
2in the nature of a mortgage or shall deliver that release to
3the recorder or registrar for recording or registering. If the
4release is delivered to the mortgagor or grantor, it must have
5imprinted on its face in bold letters at least 1/4 inch in
6height the following: "FOR THE PROTECTION OF THE OWNER, THIS
7RELEASE SHALL BE FILED WITH THE RECORDER OR THE REGISTRAR OF
8TITLES IN WHOSE OFFICE THE MORTGAGE OR DEED OF TRUST WAS
9FILED". The recorder, or registrar, upon receipt of such a
10release and the payment of the recording or registration fee,
11shall record or register the release. A certificate of release
12issued and recorded by a title insurance company or its duly
13appointed agent pursuant to the Mortgage Certificate of Release
14Act shall satisfy the requirements of this Section 2.
15(Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)
16 (765 ILCS 905/4) (from Ch. 95, par. 54)
17 Sec. 4. If any mortgagee or trustee, in a deed in the
18nature of a mortgage, of real property, or his or her executor
19or administrator, heirs or assigns, knowing the same to be
20paid, shall not, within 30 days one month after the payment of
21the debt secured by such mortgage or trust deed, comply with
22the requirements of Section 2 of this Act, he or she shall, for
23every such offense, be liable for and pay to the party
24aggrieved the sum of $200 which may be recovered by the party
25aggrieved in a civil action, together with reasonable

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1attorney's fees. In any such action, introduction of a loan
2payment book or receipt which indicates that the obligation has
3been paid shall be sufficient evidence to raise a presumption
4that the obligation has been paid. Upon a finding for the party
5aggrieved, the court shall order the mortgagee or trustee, or
6his or her executor or administrator, heirs or assigns, to
7make, execute and deliver the release as provided in Section 2
8of this Act. The successor in interest to the mortgagee or
9trustee in a deed in the nature of a mortgage shall not be
10liable for the penalty prescribed in this Section if he or she
11complies with the requirements of Section 2 of this Act within
1230 days one month after succeeding to the interest.
13(Source: P.A. 78-587.)
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