Article I - Certificates of Title


      (625 ILCS 5/Ch. 3 Art. I heading)
ARTICLE I. CERTIFICATES OF TITLE

    (625 ILCS 5/3‑100) (from Ch. 95 1/2, par. 3‑100)
    Sec. 3‑100. Definitions. For the purposes of this Chapter, the following words shall have the meanings ascribed to them:
    "Electronic" includes electrical, digital, magnetic, optical, electromagnetic, or any other form of technology that entails capabilities similar to these technologies.
    "Electronic record" means a record generated, communicated, received, or stored by electronic means for use in an information system or for transmission from one information system to another.
    "Electronic signature" means a signature in electronic form attached to or logically associated with an electronic record.
    "Owner" means a person who holds legal document of ownership of a vehicle, limited to a certificate of origin, certificate of title, salvage certificate, or junking certificate. However, in the event a vehicle is the subject of an agreement for the conditional sale or lease thereof with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or in the event a mortgagor of such vehicle is entitled to possession, then such conditional vendee or lessee or mortgagor shall be deemed the owner for the purpose of this Chapter, except as provided under paragraph (c) of Section 3‑118.
    "Record" means information that is inscribed, stored, or otherwise fixed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
    "Signature" or "signed" includes any symbol executed or adopted, or any security procedure employed or adopted, using electronic means or otherwise, by or on behalf of a person with intent to authenticate a record.
(Source: P.A. 91‑79, eff. 1‑1‑00; 91‑357, eff. 7‑29‑99; 91‑772, eff. 1‑1‑01.)

    (625 ILCS 5/3‑100.1)
    Sec. 3‑100.1. Use of electronic records.
    (a) To the extent authorized by the Secretary of State and in accordance with standards and procedures prescribed by the Secretary of State:
        (1) Certificates, certifications, affidavits,
     applications, assignments, statements, notices, documents, and other records required under this Chapter may be created, distributed, and received in electronic form.
        (2) Signatures required under this Chapter may be
     made as electronic signatures or may be waived.
        (3) Delivery of records required under this Chapter
     may be made by any means, including electronic delivery.
        (4) Fees and taxes required to be paid under this
     Chapter may be made by electronic means; provided that any forms, records, electronic records, and methods of electronic payment relating to the filing and payment of taxes shall be prescribed by the Department of Revenue.
    (b) Electronic records accepted by the Secretary of State have the same force and effect as records created on paper by writing, typing, printing, or similar means. The procedures established by the Secretary of State concerning the acceptance of electronic filings and electronic records shall ensure that the electronic filings and electronic records are received and stored accurately and that they are readily available to satisfy any statutory requirements that call for a written record.
    (c) Electronic signatures accepted by the Secretary of State shall have the same force and effect as manual signatures.
    (d) Electronic delivery of records accepted by the Secretary of State shall have the same force and effect as physical delivery of records.
    (e) Electronic records and electronic signatures accepted by the Secretary of State shall be admissible in all administrative, quasi‑judicial, and judicial proceedings. In any such proceeding, nothing in the application of the rules of evidence shall apply so as to deny the admissibility of an electronic record or electronic signature into evidence on the sole ground that it is an electronic record or electronic signature, or on the grounds that it is not in its original form or is not an original. Information in the form of an electronic record shall be given due evidentiary weight by the trier of fact.
(Source: P.A. 91‑772, eff. 1‑1‑01.)

    (625 ILCS 5/3‑100.2)
    Sec. 3‑100.2. Electronic access; agreements with submitters.
    (a) The Secretary of State may allow, but not require, a person to submit any record required to be submitted to the Secretary of State by using electronic media deemed feasible by the Secretary of State, instead of requiring the actual submittal of the original paper record. The Secretary of State may also allow, but not require, a person to receive any record to be provided by the Secretary of State by using electronic media deemed feasible by the Secretary of State, instead of providing the original paper record.
    (b) Electronic submittal, receipt, and delivery of records and electronic signatures may be authorized or accepted by the Secretary of State, when supported by a signed agreement between the Secretary of State and the submitter. The agreement shall require, at a minimum, each record to include all information necessary to complete a transaction, certification by the submitter upon its best knowledge as to the truthfulness of the data to be submitted to the Secretary of State, and retention by the submitter of supporting records.
    (c) The Secretary of State may establish minimum transaction volume levels, audit and security standards, technological requirements, and other terms and conditions he or she deems necessary for approval of the electronic delivery process.
    (d) When an agreement is made to accept electronic records, the Secretary of State shall not be required to produce a written record for the submitter with whom the Secretary of State has the agreement until requested to do so by the submitter.
    (e) Upon the request of a lienholder submitter, the Secretary of State shall provide electronic notification to the lienholder submitter to verify the notation and perfection of the lienholder's security interest in a vehicle for which the certificate of title is an electronic record. Upon receipt of an electronic message from a lienholder submitter with a security interest in a vehicle for which the certificate of title is an electronic record that the lien should be released, the Secretary of State shall enter the appropriate electronic record of the release of lien and print and mail a paper certificate of title to the owner or lienholder at no expense. The Secretary of State may also mail the certificate to any other person that delivers to the Secretary of State an authorization from the owner to receive the certificate. If another lienholder holds a properly perfected security interest in the vehicle as reflected in the records of the Secretary of State, the certificate shall be delivered to that lienholder instead of the owner.
(Source: P.A. 91‑772, eff. 1‑1‑01.)

    (625 ILCS 5/3‑100.3)
    Sec. 3‑100.3. Rules. The Secretary of State may adopt rules to implement this Article.
(Source: P.A. 91‑772, eff. 1‑1‑01.)

    (625 ILCS 5/3‑101)(from Ch. 95 1/2, par. 3‑101)
    Sec. 3‑101. Certificate of title required.
    (a) Except as provided in Section 3‑102, every owner of a vehicle which is in this State and for which no certificate of title has been issued by the Secretary of State shall make application to the Secretary of State for a certificate of title of the vehicle.
    (b) Every owner of a motorcycle or motor driven cycle purchased new on and after January 1, 1980 shall make application to the Secretary of State for a certificate of title. However, if such cycle is not properly manufactured or equipped for general highway use pursuant to the provisions of this Act, it shall not be eligible for license registration, but shall be issued a distinctive certificate of title except as provided in Sections 3‑102 and 3‑110 of this Act.
    (c) The Secretary of State shall not register or renew the registration of a vehicle unless a certificate of title has been issued by the Secretary of State to the owner or an application therefor has been delivered by the owner to the Secretary of State.
    (d) Every owner of an all‑terrain vehicle or off‑highway motorcycle purchased on or after January 1, 1998 shall make application to the Secretary of State for a certificate of title.
    (e) Every owner of a low‑speed vehicle shall make application to the Secretary of State for a certificate of title.
(Source: P.A. 96‑653, eff. 1‑1‑10.)

    (625 ILCS 5/3‑102) (from Ch. 95 1/2, par. 3‑102)
    Sec. 3‑102. Exclusions.
    No certificate of title need be obtained for:
    1. A vehicle owned by the State of Illinois; or a vehicle owned by the United States unless it is registered in this State;
    2. A vehicle owned by a manufacturer or dealer and held for sale, even though incidentally moved on the highway or used for purposes of testing or demonstration, provided a dealer reassignment area is still available on the manufacturer's certificate of origin or the Illinois title; or a vehicle used by a manufacturer solely for testing;
    3. A vehicle owned by a non‑resident of this State and not required by law to be registered in this State;
    4. A motor vehicle regularly engaged in the interstate transportation of persons or property for which a currently effective certificate of title has been issued in another State;
    5. A vehicle moved solely by animal power;
    6. An implement of husbandry;
    7. Special mobile equipment;
    8. An apportionable trailer or an apportionable semitrailer registered in the State prior to April 1, 1998.
(Source: P.A. 91‑441, eff. 1‑1‑00.)

    (625 ILCS 5/3‑103) (from Ch. 95 1/2, par. 3‑103)
    Sec. 3‑103. Optional certificate of title.
    The owner of an implement of husbandry or special mobile equipment may apply for and obtain a certificate of title on it. All of the provisions of this chapter, except part (e) of Section 3‑104, are applicable to a certificate of title so issued, except that a person who receives a transfer of an interest in the vehicle without knowledge of the certificate of title is not prejudiced by reason of the existence of the certificate, and the perfection of a security interest under this act is not effective until the lienholder has complied with the provisions of applicable law which otherwise relate to the perfection of security interests in personal property.
    An application for an optional certificate of title must be accompanied by either an exemption determination from the Department of Revenue showing that no tax imposed under the "Use Tax Act" or the "Retailers' Occupation Tax Act" is owed by anyone with respect to that vehicle or by a receipt from the Department of Revenue showing that any tax so imposed has been paid. No optional certificate of title shall be issued in the absence of such a receipt or exemption determination.
    If the proof of payment or of nonliability is, after the issuance of the optional certificate of title, found to be invalid, the Secretary of State shall revoke the optional certificate of title and require that it be returned to him.
(Source: P. A. 78‑1165.)

    (625 ILCS 5/3‑104)(from Ch. 95 1/2, par. 3‑104)
    Sec. 3‑104. Application for certificate of title.
    (a) The application for a certificate of title for a vehicle in this State must be made by the owner to the Secretary of State on the form prescribed and must contain:
        1. The name, Illinois residence and mail address of
    the owner;
        2. A description of the vehicle including, so far as
    the following data exists: Its make, year‑model, identifying number, type of body, whether new or used, as to house trailers as defined in Section 1‑128 of this Code, the square footage of the house trailer based upon the outside dimensions of the house trailer excluding the length of the tongue and hitch, and, as to vehicles of the second division, whether for‑hire, not‑for‑hire, or both for‑hire and not‑for‑hire;
        3. The date of purchase by applicant and, if
    applicable, the name and address of the person from whom the vehicle was acquired and the names and addresses of any lienholders in the order of their priority and signatures of owners;
        4. The current odometer reading at the time of
    transfer and that the stated odometer reading is one of the following: actual mileage, not the actual mileage or mileage is in excess of its mechanical limits; and
        5. Any further information the Secretary of State
    reasonably requires to identify the vehicle and to enable him to determine whether the owner is entitled to a certificate of title and the existence or nonexistence of security interests in the vehicle.
    (a‑5) The Secretary of State shall designate on the
    prescribed application form a space where the owner of a vehicle may designate a beneficiary, to whom ownership of the vehicle shall pass in the event of the owner's death.
    (b) If the application refers to a vehicle purchased from a dealer, it must also be signed by the dealer as well as the owner, and the dealer must promptly mail or deliver the application and required documents to the Secretary of State.
    (c) If the application refers to a vehicle last previously registered in another State or country, the application must contain or be accompanied by:
        1. Any certified document of ownership so recognized
    and issued by the other State or country and acceptable to the Secretary of State, and
        2. Any other information and documents the Secretary
    of State reasonably requires to establish the ownership of the vehicle and the existence or nonexistence of security interests in it.
    (d) If the application refers to a new vehicle it must be accompanied by the Manufacturer's Statement of Origin, or other documents as required and acceptable by the Secretary of State, with such assignments as may be necessary to show title in the applicant.
    (e) If an application refers to a vehicle rebuilt from a vehicle previously salvaged, that application shall comply with the provisions set forth in Sections 3‑302 through 3‑304 of this Code.
    (f) An application for a certificate of title for any vehicle, whether purchased in Illinois or outside Illinois, and even if previously registered in another State, must be accompanied by either an exemption determination from the Department of Revenue showing that no tax imposed pursuant to the Use Tax Act or the vehicle use tax imposed by Section 3‑1001 of the Illinois Vehicle Code is owed by anyone with respect to that vehicle, or a receipt from the Department of Revenue showing that any tax so imposed has been paid. An application for a certificate of title for any vehicle purchased outside Illinois, even if previously registered in another state, must be accompanied by either an exemption determination from the Department of Revenue showing that no tax imposed pursuant to the Municipal Use Tax Act or the County Use Tax Act is owed by anyone with respect to that vehicle, or a receipt from the Department of Revenue showing that any tax so imposed has been paid. In the absence of such a receipt for payment or determination of exemption from the Department, no certificate of title shall be issued to the applicant.
    If the proof of payment of the tax or of nonliability therefor is, after the issuance of the certificate of title and display certificate of title, found to be invalid, the Secretary of State shall revoke the certificate and require that the certificate of title and, when applicable, the display certificate of title be returned to him.
    (g) If the application refers to a vehicle not manufactured in accordance with federal safety and emission standards, the application must be accompanied by all documents required by federal governmental agencies to meet their standards before a vehicle is allowed to be issued title and registration.
    (h) If the application refers to a vehicle sold at public sale by a sheriff, it must be accompanied by the required fee and a bill of sale issued and signed by a sheriff. The bill of sale must identify the new owner's name and address, the year model, make and vehicle identification number of the vehicle, court order document number authorizing such sale, if applicable, and the name and address of any lienholders in order of priority, if applicable.
    (i) If the application refers to a vehicle for which a court of law determined the ownership, it must be accompanied with a certified copy of such court order and the required fee. The court order must indicate the new owner's name and address, the complete description of the vehicle, if known, the name and address of the lienholder, if any, and must be signed and dated by the judge issuing such order.
    (j) If the application refers to a vehicle sold at public auction pursuant to the Labor and Storage Lien (Small Amount) Act, it must be accompanied by an affidavit or affirmation furnished by the Secretary of State along with the documents described in the affidavit or affirmation and the required fee.
    (k) The Secretary may provide an expedited process for the issuance of vehicle titles. Expedited title applications must be delivered to the Secretary of State's Vehicle Services Department in Springfield by express mail service or hand delivery. Applications must be complete, including necessary forms, fees, and taxes. Applications received before noon on a business day will be processed and shipped that same day. Applications received after noon on a business day will be processed and shipped the next business day. The Secretary shall charge an additional fee of $30 for this service, and that fee shall cover the cost of return shipping via an express mail service. All fees collected by the Secretary of State for expedited services shall be deposited into the Motor Vehicle License Plate Fund. In the event the Vehicle Services Department determines that the volume of expedited title requests received on a given day exceeds the ability of the Vehicle Services Department to process those requests in an expedited manner, the Vehicle Services Department may decline to provide expedited services, and the additional fee for the expedited service shall be refunded to the applicant.
    (l) If the application refers to a homemade trailer, (i) it must be accompanied by the appropriate documentation regarding the source of materials used in the construction of the trailer, as required by the Secretary of State, (ii) the trailer must be inspected by a Secretary of State investigator, as described in Section 2‑115 of this Code, prior to the issuance of the title, and (iii) upon approval of the Secretary of State, the trailer must have a vehicle identification number, as provided by the Secretary of State, stamped or riveted to the frame.
(Source: P.A. 95‑784, eff. 1‑1‑09; 96‑519, eff. 1‑1‑10; 96‑554, eff. 1‑1‑10; 96‑1000, eff. 7‑2‑10.)

    (625 ILCS 5/3‑104.1) (from Ch. 95 1/2, par. 3‑104.1)
    Sec. 3‑104.1. (Repealed).
(Source: P.A. 83‑449. Repealed by P.A. 90‑665, eff. 1‑1‑99.)

    (625 ILCS 5/3‑105) (from Ch. 95 1/2, par. 3‑105)
    Sec. 3‑105. Examination of records.
    The Secretary of State, upon receiving application for a first certificate of title, shall check the identifying number of the vehicle shown in the application against the records of vehicles required to be maintained by Section 3‑107 and against the record of stolen and converted vehicles required to be maintained by Section 4‑107.
(Source: P.A. 76‑1586.)

    (625 ILCS 5/3‑106) (from Ch. 95 1/2, par. 3‑106)
    Sec. 3‑106. Certificate of title ‑ Issuance ‑ Records. (a) The Secretary of State shall file each application received and, when satisfied as to its genuineness and regularity, and that no tax imposed by the "Use Tax Act" or the vehicle use tax, as imposed by Section 3‑1001 of "The Illinois Vehicle Code", or pursuant to the "Municipal Use Tax Act" or pursuant to the "County Use Tax Act" is owed as evidenced by the receipt for payment or determination of exemption from the Department of Revenue provided for in Section 3‑104 of this Act, and that the applicant is entitled to the issuance of a certificate of title, shall issue a certificate of title of the vehicle.
    (b) The Secretary of State shall maintain a record of all certificates of title issued by him under a distinctive title number assigned to the vehicle; and, in the discretion of the Secretary of State, in any other method determined.
(Source: P.A. 86‑444.)

    (625 ILCS 5/3‑107)(from Ch. 95 1/2, par. 3‑107)
    Sec. 3‑107. Contents and effect.
    (a) Each certificate of title issued by the Secretary of State shall contain:
        1. the date issued;
        2. the name and address of the owner;
        3. the names and addresses of any lienholders, in
     the order of priority as shown on the application or, if the application is based on a certificate of title, as shown on the certificate;
        4. the title number assigned to the vehicle;
        5. a description of the vehicle including, so far
     as the following data exists: its make, year‑model, identifying number, type of body, whether new or used, as to house trailers as defined in Section 1‑128 of this Code, the square footage of the vehicle based upon the outside dimensions of the house trailer excluding the length of the tongue and hitch, and, if a new vehicle, the date of the first sale of the vehicle for use;
        6. an odometer certification as provided for in this
     Code; and
        7. any other data the Secretary of State prescribes.
    (a‑5) In the event the applicant seeks to have the vehicle titled as a custom vehicle or street rod, that fact must be stated in the application. The custom vehicle or street rod must be inspected as required by Section 3‑406 of this Code prior to issuance of the title. Upon successful completion of the inspection, the vehicle may be titled in the following manner. The make of the vehicle shall be listed as the make of the actual vehicle or the make it is designed to resemble (e.g., Ford or Chevrolet); the model of the vehicle shall be listed as custom vehicle or street rod; and the year of the vehicle shall be listed as the year the actual vehicle was manufactured or the year it is designed to resemble. A vehicle previously titled as other than a custom vehicle or street rod may be issued a corrected title reflecting the custom vehicle or street rod model if it otherwise meets the requirements for the designation.
    (b) The certificate of title shall contain forms for assignment and warranty of title by the owner, and for assignment and warranty of title by a dealer, and may contain forms for applications for a certificate of title by a transferee, the naming of a lienholder and the assignment or release of the security interest of a lienholder.
    (b‑5) The Secretary of State shall designate on a certificate of title a space where the owner of a vehicle may designate a beneficiary, to whom ownership of the vehicle shall pass in the event of the owner's death.
    (c) A certificate of title issued by the Secretary of State is prima facie evidence of the facts appearing on it.
    (d) A certificate of title for a vehicle is not subject to garnishment, attachment, execution or other judicial process, but this subsection does not prevent a lawful levy upon the vehicle.
    (e) Any certificate of title issued by the Secretary of State is subject to a lien in favor of the State of Illinois for any fees or taxes required to be paid under this Act and as have not been paid, as provided for in this Code.
(Source: P.A. 95‑784, eff. 1‑1‑09; 96‑487, eff. 1‑1‑10.)

    (625 ILCS 5/3‑107.1) (from Ch. 95 1/2, par. 3‑107.1)
    Sec. 3‑107.1. Presumption of tenancy. When a certificate of title is made out to 2 or more persons, it shall be presumed that the title is held as joint tenants with right of survivorship.
(Source: P.A. 79‑482; 79‑512; 79‑1454.)

    (625 ILCS 5/3‑108) (from Ch. 95 1/2, par. 3‑108)
    Sec. 3‑108. Delivery. The certificate of title shall be mailed or delivered to the first lienholder named in it or, if none, to the owner.
(Source: P.A. 91‑78, eff. 7‑9‑99.)

    (625 ILCS 5/3‑109) (from Ch. 95 1/2, par. 3‑109)
    Sec. 3‑109. Registration without certificate of title; bond. If the Secretary of State is not satisfied as to the ownership of the vehicle or that there are no undisclosed security interests in it, the Secretary of State may register the vehicle but shall either:
    (a) Withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the Secretary of State as to the applicant's ownership of the vehicle and that there are no undisclosed security interests in it; or
    (b) As a condition of issuing a certificate of title, require the applicant to file with the Secretary of State a bond in the form prescribed by the Secretary of State and executed by the applicant, and either accompanied by the deposit of cash with the Secretary of State or also executed by a person authorized to conduct a surety business in this State. The bond shall be in an amount equal to one and one‑half times the value of the vehicle as determined by the Secretary of State and conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the vehicle or person acquiring any security interest in it, and their respective successors in interest, against any expense, loss or damage, including reasonable attorney's fees, by reason of the issuance of the certificate of title of the vehicle or on account of any defect in or undisclosed security interest upon the right, title and interest of the applicant in and to the vehicle. Any such interested person has a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond, and any deposit accompanying it, shall be returned at the end of three (3) years or prior thereto if the vehicle is no longer registered in this State and the currently valid certificate of title is surrendered to the Secretary of State, unless the Secretary of State has been notified of the pendency of an action to recover on the bond.
    Security deposited as a bond hereunder shall be placed by the Secretary of State in the custody of the State Treasurer.
    (c) During July, annually, the Secretary shall compile a list of all bonds on deposit, pursuant to this Section, for more than 3 years and concerning which he has received no notice as to the pendency of any judicial proceeding that could affect the disposition thereof. Thereupon, he shall promptly send a notice by certified mail to the last known address of each depositor advising him that his bond will be subject to escheat to the State of Illinois if not claimed within 30 days after the mailing date of such notice. At the expiration of such time, the Secretary of State shall file with the State Treasurer an order directing the transfer of such deposit to the Road Fund in the State Treasury. Upon receipt of such order, the State Treasurer shall make such transfer, after converting to cash any other type of security. Thereafter any person having a legal claim against such deposit may enforce it by appropriate proceedings in the Court of Claims subject to the limitations prescribed for such Court. At the expiration of such limitation period such deposit shall escheat to the State of Illinois.
(Source: P.A. 81‑1458.)

    (625 ILCS 5/3‑110) (from Ch. 95 1/2, par. 3‑110)
    Sec. 3‑110. Refusing certificate of title.
    The Secretary of State shall refuse issuance of a certificate of title if any required fee is not paid or if he has reasonable grounds to believe that:
    (a) The applicant is not the owner of the vehicle;
    (b) The application contains a false or fraudulent statement; or
    (c) The applicant fails to furnish required information or documents or any additional information the Secretary of State reasonably requires;
    (d) The applicant has not paid to the Secretary of State any fees or taxes due under this Act and have not been paid upon reasonable notice and demand.
(Source: P. A. 77‑641.)

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