Illinois Compiled Statutes
Chapter 765 - PROPERTY
765 ILCS 935/ - Mortgage Certificate of Release Act.

(765 ILCS 935/1)
Sec. 1.
Short Title.
This Act may be cited as the Mortgage Certificate
of Release
Act.

(Source: P.A. 92-765, eff. 8-6-02.)
 
(765 ILCS 935/5)
Sec. 5.
Definitions.
As used in this Act:
"Hold-harmless agreement" means a letter whereby a title insurance company,
as defined in the Title Insurance Act, agrees to indemnify another title
insurance company preparing to insure a present transaction that the
indemnifying title insurance company has previously insured over without
taking an exception to its title insurance policy for matters remaining of
record, such as a previously paid but unreleased mortgage. A model form of a
hold-harmless agreement is set forth in Section 70 of this Act.
"Mortgage" means a mortgage or mortgage lien on an interest in one-to-four
family residential real property
in this State given to secure a loan in the original principal amount of
less than $500,000.
Trust deeds are not included.
"Mortgagee" means either: (i) the grantee of a mortgage; or (ii) if a
mortgage has been assigned of record, the last person to whom the mortgage has
been assigned of record.
"Mortgage servicer" means the last person to whom a mortgagor or the
mortgagor's successor in interest has been instructed by a mortgagee to send
payments on a loan secured by a mortgage. A person
transmitting a payoff
statement is the mortgage servicer for the mortgage described in the payoff
statement.
"Mortgagor" means the grantor of a mortgage.
"Payoff statement" means a statement for the amount of the (i) unpaid balance
of a loan secured by a mortgage, including principal, interest, and any other
charges due under or secured by the mortgage; and (ii) interest on a per day
basis for the unpaid balance.
"Record" means to deliver the certificate of release for recording with the
county recorder.
"Title insurance agent" has the same meaning ascribed to it as in Section 3
of the Title Insurance Act.
"Title insurance company" has the same meaning ascribed to it as in
Section 3 of the Title Insurance Act.

(Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)
 
(765 ILCS 935/10)
Sec. 10.
Mortgage presently being paid off.
Receipt of payment pursuant
to
the lender's
written payoff statement shall constitute authority to record a certificate of
release.
A certificate of release shall be delivered for recording to the
recorder
of each county in which the mortgage is recorded, together with the other
documents from the new transaction, including a deed or new mortgage, or
both by the title insurance company or its duly appointed agent.

(Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)
 
(765 ILCS 935/10.1)
Sec. 10.1.
Previously paid mortgages.
A title insurance company or its
duly appointed title insurance agent may issue a mortgage certificate of
release pursuant to this Act for a mortgage that appears in the chain of title
prior to the mortgage presently being paid. The title insurance company must
have proof of payment from its own prior files that it paid the mortgage or
mortgages pursuant to a payoff statement. Where another
title insurance company has paid off an unreleased mortgage pursuant to a
payoff statement, the title insurance company or its
duly appointed title insurance agent in the current transaction may rely upon
the hold-harmless letter of that prior title insurance company
to issue a mortgage certificate of release. This grant of authority
is subject to the condition that the issuer of the mortgage certificate of
release does not have notice that the lender opposes its release. A single
mortgage certificate of release may include more than one mortgage, including
both presently and previously paid mortgages.

(Source: P.A. 93-428, eff. 12-31-03.)
 
(765 ILCS 935/15)
Sec. 15.
Certificate of release.
An officer or duly appointed agent of a
title insurance company may, on behalf of a mortgagor or a person who has
acquired
from a mortgagor title to all or part of the property described in
the mortgage, execute a certificate of release that complies with the
requirements
of this Act and record the certificate of release with the recorder of
each county in which the mortgage is recorded, provided that payment of
the loan secured by the mortgage was made in accordance with a written
payoff statement
furnished by the mortgagee or the mortgage servicer. The title
insurance
company or its duly appointed agent shall not be
required to search the public record for a possible recorded
satisfaction or release.

(Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)
 
(765 ILCS 935/20)
Sec. 20.
Contents of certificate of release.

A certificate of release executed under this Act must
contain substantially all of the following for each mortgage being
released:
(a) The name of the mortgagor, the name of the original mortgagee, and, if
applicable, the mortgage servicer at the date of the mortgage, the date of
recording, and the volume and page or document number or other official
recording
designation in the real property records where the mortgage is recorded.
(b) A statement that the mortgage was paid in accordance with the
written payoff
statement and there is no
objection from the mortgagee or mortgage servicer or its successor in
interest.
With respect to previously paid mortgages, the hold-harmless letter
from a title insurance
company, as provided in Section 10.1 of this Act, shall satisfy this
requirement.
(c) A statement that the person executing the certificate of release is an
officer or a duly appointed agent of a title insurance company authorized and
licensed to transact the business of insuring titles to interests in real
property in this State pursuant to subsections (2) and (3) of Section 3 of the
Title Insurance Act.
(d) A statement that the certificate of release is made on behalf of the
mortgagor or a person who acquired title from the mortgagor to all or a part of
the property described in the mortgage.
(e) A statement that the mortgagee or mortgage servicer provided a
written payoff
statement. The hold-harmless letter from a title
insurance company, as provided in Section 10.1 of this Act, shall
satisfy this requirement with respect to previously paid mortgages.

(Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)
 
(765 ILCS 935/25)
Sec. 25.
Execution.

A certificate of release authorized by Section 15 must be executed and
acknowledged as required by law, as in the case of a deed, and may be executed
by an officer or a duly appointed agent of a title insurance company. The
agent must be a
currently registered title insurance agent of the title insurance company.

(Source: P.A. 92-765, eff. 8-6-02.)
 
(765 ILCS 935/30)
Sec. 30.
Appointment of title insurance agent.
(a) The appointment of a title insurance agent must be
executed and acknowledged as required by law, as in the
case of a deed, and must state all of the following:
(b) The delegation to a title insurance agent by a title
insurance company shall not relieve the title insurance
company of any liability for actual damages as provided in
Section 40.
(c) A title insurance company may create an instrument, executed by an
officer of
that company and acknowledged in the same manner as a deed, appointing one or
more title insurance agents authorized to issue certificates of release under
this Act. This instrument shall designate the county or counties in which it
is to be effective and shall be recorded with the recorder in each
of those counties, either as an original instrument or by recording a copy
certified by the recorder of one of the counties.
A separate appointment of title insurance agent
shall not be necessary for each certificate of release. The
appointment of an
agent may be re-recorded where necessary to establish authority of the agent,
but the authority shall continue until a revocation of appointment is recorded
in the office of the recorder where the appointment of
title insurance
agent was
recorded or on the date, if any, in the recorded appointment document.

(Source: P.A. 92-765, eff. 8-6-02.)
 
(765 ILCS 935/35)
Sec. 35.
Effect of recording certificate of release.
For purposes of releasing the lien of the mortgage, a certificate
of release containing the information and statements provided for in Section 20
and executed as provided in Section 25 is prima facie evidence of the facts
contained therein, and upon being recorded with the
recorder, shall constitute
a release of
the lien of
the mortgage described in the certificate of release.
The title insurance company or title insurance agent recording the certificate
of release may use the recording fee it may have collected for the
recording of a release or satisfaction of the mortgage to effect the recording
of
the certificate of release.

(Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)
 
(765 ILCS 935/40)
Sec. 40.
Wrongful or erroneous certificate of release.

Recording of a wrongful or erroneous certificate of release by a
title insurance company or its
title insurance
agent shall not relieve the mortgagor or the
mortgagor's successors or assignees from any personal liability on the loan or
other obligations secured by the mortgage. In addition to any other remedy
provided by law, a title insurance company
executing or
recording a certificate of release
under this Act is liable to the
mortgagee for actual damages sustained due to the recording of the certificate
of release.
The prevailing party
in any action or proceeding seeking actual damages due to
the recording of a certificate of release shall be entitled
to the recovery of reasonable attorneys fees and costs
incurred in that action or proceeding.

(Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)
 
(765 ILCS 935/45)
Sec. 45.
Recording.
If a mortgage is recorded in more than one county
and a certificate of release is recorded in one of them, a certified copy of
the certificate of release may be recorded in another county with the same
effect as the original. In all cases, the certificate of release shall be
entered and indexed where satisfactions or releases of mortgage are entered and
indexed.

(Source: P.A. 92-765, eff. 8-6-02.)
 
(765 ILCS 935/50)
Sec. 50.
Form of certificate of release.
A certificate of release, in
substantially the following form, allowing for alterations to permit the
inclusion of multiple mortgages, both presently and previously paid, complies
with this Act.



1. Name of mortgagor(s): .....
2. Name of original mortgagee: .....
3. Name of mortgage servicer (if any):.....
4. Mortgage recording: Vol.: .... Page: .....
or Document No.: .....
5. The above referenced mortgage has been paid in accordance with the
payoff statement and there is no objection from the mortgagee or mortgage
servicer or its successor in interest to the recording of this certificate
of release.
6. The person executing this certificate of release is an
officer or duly appointed agent of a title insurance
company authorized and licensed to transact the business of
insuring titles to interests in real property in this State
pursuant to Section 30 of this Act.
7. This certificate of release is made on behalf of the
mortgagor or a person who acquired title from the mortgagor
to all or part of the property described in the mortgage.
8. The mortgagee or mortgage servicer provided a payoff
statement.
9. The property described in the mortgage is as follows:
Permanent Index Number: .....
Common Address: .....
(Name of title insurance company)
By: .....
(Name of officer and title or name of agent and
name of officer / representative thereof)
Address: .....
Telephone No.: .....

State of Illinois)
)
County of )
This instrument was acknowledged before me on .....(date)
by .....(name of person) as .....(officer for / agent of)
.....(title insurance company).
.....
Notary Public

My commission expires on .....

(Source: P.A. 92-765, eff. 8-6-02; 93-428, eff. 12-31-03.)
 
(765 ILCS 935/55)
Sec. 55.

Form of appointment of title insurance agent
for issuance of certificates of release. A title insurance
company shall use the following form for the appointment of
its title insurance agents for the purpose of executing
certificates of release pursuant to this Act.


(name of title insurance agent or agents) to act as its agent or agents
for the
purpose of executing and delivering for recording
certificates of release as provided by the Mortgage
Certificate of Release Act. This appointment shall commence
on ..... (date) and (select one) continue until revoked as
provided by that Act / terminate on ..... (date). The agent or agents
appointed has/have consented to and accept the terms of this appointment.

Dated this ..... (date).

By:
..... (title insurance company)
..... (signature)
..... (typed / printed name & title)
..... (address)
..... (telephone number)
State of Illinois)
)
County of )
This instrument was acknowledged before me on .....(date)
by .....(name of person) as .....(officer for / agent of)
.....(title insurance company).
.....
Notary Public

My commission expires on.....

(Source: P.A. 92-765, eff. 8-6-02.)
 
(765 ILCS 935/60)
Sec. 60.

Form of revocation of appointment of title
insurance agent or agents for issuance of certificates of release. A
title insurance company shall use the following form for
the purpose of revoking the appointment of its title
insurance agent's authorization for executing certificates
of release pursuant to this Act.



.....(name of title insurance agent)
.....(address)
Dated this ..... (date).
By:
..... (title insurance company)
..... (signature)
..... (typed / printed name & title)
..... (address)
..... (telephone number)
State of Illinois)
)
County of )
This instrument was acknowledged before me on .....(date)
by .....(name of person) as .....(officer for / agent of)
.....(title insurance company).
.....
Notary Public

My commission expires on.....

(Source: P.A. 92-765, eff. 8-6-02.)
 
(765 ILCS 935/65)
Sec. 65.
(Repealed).

(Source: P.A. 92-765, eff. 8-6-02. Repealed by P.A. 93-428, eff. 12-31-03.)
 
(765 ILCS 935/70)
Sec. 70.
Form of hold-harmless agreement.
A hold-harmless agreement in
substantially the following form, allowing for alterations to reflect the facts
of the transaction and identity of the title insurance companies, complies with
this Act.



TO: .................... (Presently insuring title insurance company)

Re: Policy No.: ...... (Previously insuring title insurance company)

Policy amount: $..............

Policy/Commitment No.: ............... (Presently insuring title
insurance company)

You show as exception number(s) .................. in your above referenced
commitment for title
insurance dated .........., the following exception(s):

Mortgage dated ........., recorded as Document No. .......
made by
................................. (borrow) to
................................. (lender) to secure
an indebtedness in the amount of $.........

For and in consideration of your deleting said exception(s), we agree to
indemnify you against loss that you may sustain as a result of said deletion.
In no event may said indemnity exceed the face amount of our policy as noted
above.

In the event any claim is made against you as a result of your deletion, you
agree to notify us within 30 days of the date the claim is made.

Any action you take with respect to the claim will not obligate us under this
letter unless the aforesaid notice has been furnished us and we have adequate
time to consider our approval or disapproval of the action.

..........................................

Title Insurance Company (Previously insuring)

(Source: P.A. 93-428, eff. 12-31-03.)
 
(765 ILCS 935/90)
Sec. 90.
(Repealed).

(Source: P.A. 92-765, eff. 8-6-02. Repealed by P.A. 93-428, eff. 12-31-03.)
 
(765 ILCS 935/95)
Sec. 95.
(Amendatory provisions; text omitted).

(Source: P.A. 92-765, eff. 8-6-02; text omitted.)
 
(765 ILCS 935/99)
Sec. 99.
Effective date.
This Act takes effect upon becoming law.

(Source: P.A. 92-765, eff. 8-6-02.)

Structure Illinois Compiled Statutes