Commercial Banking, Collections, and Bankruptcy

(Barickman, R-Bloomington) redefines “omitted subordinate interest” to include a person who was a named party in the foreclosure action over which the court lacked personal jurisdiction due to defective service of process.

The foreclosure proceeding may be reopened as to the defendant only if the defendant: (1) was a named party in the foreclosure action over which the court lacked personal jurisdiction due to defective service of process; and (2) has a meritorious defense to the foreclosure action. After the foreclosure proceeding is reopened, if the defendant is unsuccessful in defeating the foreclosure action, then the defendant shall have the option to redeem pursuant to subsection (e) of this Section. Nothing contained in this Section affects any existing right that the holder of the certificate of sale or any person who acquired title under Section 15-1509 or any subsequent successor, assignee, transferee, or grantee of that person may have against the defendant or the real estate.

The redemption period shall extend 30 days after the entry of the order if the defendant has not been in possession of the real estate for a period of six months before entry of the order.

If an omitted subordinate interest asserts a challenge to the jurisdiction of the trial court following confirmation of the sale and transfer of title to the mortgaged real estate to a non-party to the underlying foreclosure action who acquired title for value, the trial court shall permit the non-party to retain possession of the mortgaged real estate pending entry of a final order relative to the jurisdiction challenge and any subsequent proceedings in the foreclosure action if the non-party provides adequate security for any loss of use or occupancy by the person who has the omitted subordinate interest. For purposes of this Section, a bond presented to, approved by, and filed with the court shall be deemed to provide adequate security.

Senate Amendment No. 1 was filed last week. 

(Barickman, R-Bloomington) redefines “omitted subordinate interest” to include a person who was a named party in the foreclosure action over which the court lacked personal jurisdiction due to defective service of process.

The foreclosure proceeding may be reopened as to the defendant only if the defendant: (1) was a named party in the foreclosure action over which the court lacked personal jurisdiction due to defective service of process; and (2) has a meritorious defense to the foreclosure action. After the foreclosure proceeding is reopened, if the defendant is unsuccessful in defeating the foreclosure action, then the defendant shall have the option to redeem pursuant to subsection (e) of this Section. Nothing contained in this Section affects any existing right that the holder of the certificate of sale or any person who acquired title under Section 15-1509 or any subsequent successor, assignee, transferee, or grantee of that person may have against the defendant or the real estate.

The redemption period shall extend 30 days after the entry of the order if the defendant has not been in possession of the real estate for a period of six months before entry of the order.

If an omitted subordinate interest asserts a challenge to the jurisdiction of the trial court following confirmation of the sale and transfer of title to the mortgaged real estate to a non-party to the underlying foreclosure action who acquired title for value, the trial court shall permit the non-party to retain possession of the mortgaged real estate pending entry of a final order relative to the jurisdiction challenge and any subsequent proceedings in the foreclosure action if the non-party provides adequate security for any loss of use or occupancy by the person who has the omitted subordinate interest. For purposes of this Section, a bond presented to, approved by, and filed with the court shall be deemed to provide adequate security.

Senate Amendment No. 1 was filed last week. 

(Welch, D-Westchester) replaces references to the term “transfer instrument” with “transfer.” Changes the definitions of “family member” and “transfer.” Provides that if the court determines the transferor lacked the requisite capacity to convey, the entire transfer instrument shall be deemed void. Provides that if the property in question is an interest in real property, a purchaser or mortgagee for value and without notice, before the recordation of a lis pendens for an action, shall take free and clear of the action. Provides that a holder of property shall not be liable for distributing or releasing the property to the transferee if the distribution or release occurs before the holder becomes a party to an action challenging the transfer. Scheduled for hearing in House Judiciary Committee March 8.

(Wheeler, Keith; R-North Aurora) provides upon signing and dating the disclosure report, the prospective buyer accepts and acknowledges that the prospective buyer has received the residential real property disclosure report form in its entirety, including the disclosure report and a copy of the Act. Scheduled for hearing in House Judiciary Committee March 8. 

(Thapedi, D-Chicago) adds to the definition of “health care provider” ambulatory surgical treatment facilities accredited by one of the following organizations: the American Association for the Accreditation of Ambulatory Surgical Facilities; the Joint Commission (formerly the Joint Commission on Accreditation of Healthcare Organizations); the Healthcare Facilities Accreditation Program; or the Accreditation Association for Ambulatory Health Care. Scheduled for hearing in House Judiciary Committee March 8

(McDermed, R-Frankfort) provides an owner, contractor, or subcontractor may not, by contract or otherwise, waive, affect, or impair any other claimant’s rights unless the claimant executes and delivers a waiver and release under specified conditions and in conformance with a statutory form. Includes some exceptions. Scheduled for hearing in House Judiciary Committee March 8. 

(Hutchinson, D-Chicago Heights) provides that no person who is qualified and able to serve as a juror may be excluded from jury service in any court of this State on the basis of race, color, religion, national origin, ancestry, age, sex, marital status, order of protection status, disability, military status, sexual orientation, pregnancy, or unfavorable discharge from military service. It does not affect any current statutory exemptions. It has just been introduced.