Commercial Banking, Collections, and Bankruptcy

(Dillard, R-Westmont; McAsey, D-Lockport) amends this Act to exclude certain kinds of agreements from the Act's regulation. Those excluded would be a financial institution named as an agent for any person if the agreement does not include a durable power of attorney that survives the incapacity of the principal. The amendment clarifies that this kind of agreement is not a "nonstatutory property power" subject to this Act's provisions pertaining to statutory short form powers of attorney for property. Effective July 30, 2012.

(Williams, D-Chicago; Haine, D-Alton) makes three changes to citations and body attachments. (1) It requires a citation to be served by personal service or abode service as provided in Supreme Court Rule 105 attaching a copy of the statutory Income and Asset Form created by this bill. (2) It prohibits a payment order from being issued against a person unless the form was served on the debtor, the debtor has an opportunity to assert exemptions, and the payments are from nonexempt sources. (3) No order of body attachment or other civil order for incarceration may be issued for a respondent on a charge of indirect civil contempt unless the respondent has first had an opportunity to appear in court to answer after personal service or abode service of notice as provided in Section 2-203. It exempts enforcement for a violation of a municipal ordinance. (See the June Illinois Bar Journal article by Adam W. Lasker that discusses this bill in more detail.) Effective July 25, 2012.

(Zalewski, D-Chicago; Harmon, D-Oak Park) amends the Secured Transactions Article of the Uniform Commercial Code. It prohibits a person from filing or cause to be filed a false record that the person knows or reasonably should know is (1) not authorized or permitted under specified provisions; (2) not related to a valid existing or potential commercial or financial transaction, an existing agricultural or other lien, or a judgment of a court of competent jurisdiction; and (3) filed with the intent to harass or defraud the person identified as debtor in the record or any other person. Creates criminal and civil penalties and administrative relief from the Secretary of State. Exempts records filed by a regulated financial institution or its representative. Effective July 20, 2012.

(Silverstein, D-Chicago; Mautino, D-Spring Valley) is a cleanup of the statutes that authorize organizing as a business entity under Illinois law. (1) It provides consistency between the various business entity acts by authorizing filings previously missing from the Acts, particularly the Uniform Partnership Act and Uniform Limited Partnership Act and by standardizing the filing fees. (2) Allows for electronic filing of documents and reports. (3) Establishes procedures for reinstatement of limited liability partnership status. (4) Provides the manner for resignation as agent for service of process and the method of service. (5) Revises the manner by which administrative dissolution, revocation, and reinstatement is accomplished. Effective July 20, 2012.

(Yarbrough, D-Maywood; Althoff, R-Crystal Lake) allows recorders in counties of less than 500,000 inhabitants to electronically store recorded documents. They can do so now only if authorized by the county board. Effective July 6, 2012.

(Haine, D-Alton; Cross, R-Oswego) makes a number of changes to this Act including the following. (1) Prohibits an action to incorporate a common interest community as a municipality until two-thirds of the members sign an incorporation document. (2) Requires elections to the board must be held at least once every 24 months, eliminates voting by proxy, and prohibits a term of office as a board member or officer for more than four years. (3) If the total common expenses exceed the budget, the board must disclose this variance to all members and identify subsequent assessments that will be made to offset this in future budgets. (4) Assessments for additions and alterations to common areas or to association-owned property not in the annual budget must be separately assessed and are subject to approval of a simple majority (instead of two-thirds) of the total members at a meeting called for that purpose. Passed both chambers; effective immediately if the Governor signs it.