HB5854 98TH GENERAL ASSEMBLY

LRB098 17878 HLH 53002 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5854

Introduced , by Rep. Ed Sullivan, Jr.

SYNOPSIS AS INTRODUCED:

35 ILCS 200/21-26 new

Amends the Property Tax Code. Provides that certain tax liens are assignable. Provides that such an assignment of a tax lien does not alter the priority of the lien.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Property Tax Code is amended by adding Section 21-26 as follows:

(35 ILCS 200/21-26 new)

Sec. 21-26. Assignment of real property tax lien.

(a) As used in this Section, "assignee" means any individual, firm, partnership, limited liability company, association, corporation, or any group or combination acting as a unit to whom an assignment of a tax lien is authorized pursuant to subsection (b) of this Section.

(b) Notwithstanding any other provision of law, the treasurer of the county in which real property is located shall assign a tax lien against real property that arises pursuant to Section 21-75 to an assignee if the county treasurer receives:

(1) a written authorization to assign the lien to an assignee signed by the owner of the real property;

(2) payment by the assignee in the amount of the taxes, fees, interest, and penalties due and owing on the real property; and

(3) a $25 processing fee made payable to the county treasurer.

(c) The owner of the real property and the assignee may enter into an agreement for payment of all amounts secured by the tax lien, including:

(1) the total amounts paid as consideration for the assignment under paragraph (2) of subsection (b) of this Section;

(2) all transaction costs reasonably and necessarily incurred by the assignee, which shall not exceed $400 for homestead properties, as defined by subsection (f) of Section 15-175;

(3) interest at a rate not to exceed the rate prescribed in Section 21-15 on the total of the amounts provided for in paragraphs (1) and (2) of this subsection; and

(4) any costs reasonably and necessarily incurred by the assignee to enforce, collect on, or release the agreement or the assigned lien; costs described in this paragraph include, but are not limited to, attorney's fees and costs incurred relating to foreclosure if the owner does not redeem the lien or otherwise fails to perform in accordance with the agreement.

(d) Upon receipt of the items listed in subsection (b), the county treasurer shall assign the lien to the assignee by issuing the assignee a document acknowledging the assignment, which shall include the amount paid by the assignee, the legal description and parcel numbers of the property, and the name and mailing address of the assignee.

The assignment of a tax lien pursuant to this Section does not alter the priority of the lien provided in Section 21-75.

(e) The assignee shall, within a reasonable period of time, cause to be recorded with the county recorder of the county in which the property is located a copy of the document acknowledging the assignment issued by the county treasurer pursuant to subsection (d) of this Section. The recordation shall constitute prima facie evidence of the valid assignment and priority of the property tax lien assigned pursuant to this Section.

(f) If additional taxes become delinquent on real property subject to an agreement entered into pursuant to this Section while the assigned tax lien that is the subject of the agreement remains unsatisfied by the owner of the property, the tax collector shall assign the lien for the additional taxes to the assignee if the tax collector receives the items required in subsection (b) of this Section.

(g) If the property owner defaults on the payment agreement, the assignee of the tax lien may foreclose in the same manner as provided in Article 15 of the Illinois Code of Civil Procedure, except that no action to foreclose may be brought prior to the date on which a lien would have been subject to foreclosure under section 21-75(a) had the taxes not been paid by the assignee and remained delinquent. At least 60 days before commencing an action to foreclose the assigned lien, the assignee shall provide notice to the holder of a recorded mortgage lien. The assignee shall not recover a fee in connection with a foreclosure action if the fee is incurred within thirty days of the date of the notice required by this subsection. Upon receipt of the notice, the holder or servicer of the recorded first lien may obtain a release of the lien by paying the assignee the amount due under the payment agreement described in subsection (c) of this Section.

If a foreclosure sale of the property results in proceeds in excess of the amounts owing to an assignee under the payment agreement between the property owner and the assignee, the excess moneys shall be distributed to each person that proves itself entitled to the proceeds, in order of priority, and any remaining balance shall be paid to the former owner. The assignee shall not be entitled to or receive any payment in excess of amounts due under the payment agreement provided for in this Section.

(h) If an assignee receives full satisfaction of the amounts due in connection with the assigned tax lien, the assignee shall record a release of the tax lien with the county recorder of the county in which the property is located. The assignee shall provide written notification of the release of the tax lien to the county treasurer.