Public Act 92-0751
HB4407 Enrolled                                LRB9215293JSpc
    AN ACT relating to motor vehicles.
    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:
    Section  5.  The  Illinois  Vehicle  Code  is  amended by
changing Section 3-117.1 as follows:
    (625 ILCS 5/3-117.1) (from Ch. 95 1/2, par. 3-117.1)
    Sec.  3-117.1.  When  junking  certificates  or   salvage
certificates must be obtained.
    (a)  Except  as  provided  in  Chapter  4 of this Code, a
person who possesses a junk  vehicle  shall  within  15  days
cause   the   certificate   of  title,  salvage  certificate,
certificate of purchase, or a  similarly  acceptable  out  of
state   document  of  ownership  to  be  surrendered  to  the
Secretary of State along with an application  for  a  junking
certificate, except as provided in Section 3-117.2, whereupon
the Secretary of State shall issue to such a person a junking
certificate,  which  shall  authorize  the  holder thereof to
possess, transport, or, by an endorsement, transfer ownership
in such junked vehicle, and a certificate of title shall  not
again be issued for such vehicle.
    A licensee who possesses a junk vehicle and a Certificate
of  Title, Salvage Certificate, Certificate of Purchase, or a
similarly acceptable out-of-state document of  ownership  for
such  junk vehicle, may transport the junk vehicle to another
licensee  prior  to  applying  for  or  obtaining  a  junking
certificate, by executing a  uniform  invoice.  The  licensee
transferor shall furnish a copy of the uniform invoice to the
licensee  transferee  at  the time of transfer.  In any case,
the licensee transferor shall apply for a junking certificate
in conformance with Section 3-117.1  of  this  Chapter.   The
following   information  shall  be  contained  on  a  uniform
         (1)  The business name, address and  dealer  license
    number  of  the  person  disposing  of  the vehicle, junk
    vehicle or vehicle cowl;
         (2)  The name and address of  the  person  acquiring
    the  vehicle,  junk  vehicle or vehicle cowl, and if that
    person is a dealer, the Illinois or  out-of-state  dealer
    license number of that dealer;
         (3)  The  date  of  the  disposition of the vehicle,
    junk vehicle or vehicle cowl;
         (4)  The year, make, model, color and description of
    each vehicle, junk vehicle or vehicle cowl disposed of by
    such person;
         (5)  The   manufacturer's   vehicle   identification
    number,  Secretary  of  State  identification  number  or
    Illinois Department of  State  Police  number,  for  each
    vehicle, junk vehicle or vehicle cowl part disposed of by
    such person;
         (6)  The  printed  name and legible signature of the
    person or agent disposing of the vehicle, junk vehicle or
    vehicle cowl; and
         (7)  The printed name and legible signature  of  the
    person accepting delivery of the vehicle, junk vehicle or
    vehicle cowl.
    The  Secretary of State may certify a junking manifest in
a form prescribed by the Secretary  of  State  that  reflects
those  vehicles  for  which  junking  certificates  have been
applied or issued.  A junking manifest may be issued  to  any
person  and it shall constitute evidence of ownership for the
vehicle  listed  upon  it.   A  junking   manifest   may   be
transferred  only to a person licensed under Section 5-301 of
this Code as a scrap processor.    A  junking  manifest  will
allow  the  transportation  of  those  vehicles  to  a  scrap
processor  prior  to  receiving the junk certificate from the
Secretary of State.
    (b)  An application for a salvage  certificate  shall  be
submitted  to  the Secretary of State in any of the following
         (1)  When an insurance company makes  a  payment  of
    damages  on  a  total  loss  claim  for  a  vehicle,  the
    insurance company shall be deemed to be the owner of such
    vehicle and the vehicle shall be considered to be salvage
    except  that ownership of (i) a vehicle that has incurred
    only hail damage that does  not  affect  the  operational
    safety  of  the vehicle or (ii) any vehicle 9 model years
    of age or older may, by agreement between the  registered
    owner  and  the  insurance  company,  be  retained by the
    registered owner of such vehicle.  The insurance  company
    shall  promptly  deliver  or  mail  within  20  days  the
    certificate of title along with  proper  application  and
    fee  to the Secretary of State, and a salvage certificate
    shall be issued in the name of the insurance company.  An
    insurer making payment of damages on a total  loss  claim
    for  the  theft  of  a  vehicle  may exchange the salvage
    certificate for a certificate of title if the vehicle  is
    recovered  without  damage.   In  such  a  situation, the
    insurer shall fill out and sign a form prescribed by  the
    Secretary  of  State  which contains an affirmation under
    penalty of perjury that the vehicle was recovered without
    damage and  the  Secretary  of  State  may,  by  rule  or
    regulation, require photographs to be submitted.
         (2)  When  a vehicle the ownership of which has been
    transferred  to  any  person  through  a  certificate  of
    purchase from acquisition of the vehicle at  an  auction,
    other  dispositions  as  set  forth in Sections 4-208 and
    4-209 of this Code, a lien arising under Section  18a-501
    of this Code, or a public sale under the Abandoned Mobile
    Home Act shall be deemed salvage or junk at the option of
    the purchaser.  The person acquiring such vehicle in such
    manner  shall  promptly  deliver  or mail, within 20 days
    after the acquisition of the vehicle, the certificate  of
    purchase,  the  proper  application  and fee, and, if the
    vehicle is an abandoned mobile home under  the  Abandoned
    Mobile  Home  Act,  a  certification  from  a  local  law
    enforcement  agency  that  the  vehicle  was purchased or
    acquired at a public sale under the Abandoned Mobile Home
    Act to the Secretary of State and a  salvage  certificate
    or  junking  certificate  shall  be issued in the name of
    that  person.    The  salvage  certificate   or   junking
    certificate  issued  by the Secretary of State under this
    Section shall be free of any lien  that  existed  against
    the vehicle prior to the time the vehicle was acquired by
    the applicant under this Code.
         (3)  A  vehicle  which  has  been  repossessed  by a
    lienholder shall be considered to be  salvage  only  when
    the  repossessed  vehicle, on the date of repossession by
    the lienholder, has sustained damage by collision,  fire,
    theft, rust corrosion, or other means so that the cost of
    repairing  such damage, including labor, would be greater
    than 33 1/3%  of  its  fair  market  value  without  such
    damage.   If  the lienholder determines that such vehicle
    is damaged in excess of  33  1/3%  of  such  fair  market
    value,  the  lienholder  shall,  before sale, transfer or
    assignment of the vehicle, make application for a salvage
    certificate, and shall submit with such  application  the
    proper  fee  and  evidence  of  possession.  If the facts
    required to be shown in subsection (f) of  Section  3-114
    are  satisfied,  the  Secretary  of  State  shall issue a
    salvage certificate in the name of the lienholder  making
    the   application.   In  any  case  wherein  the  vehicle
    repossessed is not damaged in excess of 33  1/3%  of  its
    fair  market  value, the lienholder shall comply with the
    requirements of subsections (f),  (f-5),  and  (f-10)  of
    Section  3-114, except that the affidavit of repossession
    made by or on behalf of the lienholder shall also contain
    an affirmation under penalty of perjury that the  vehicle
    on  the  date of sale is not damaged in excess of 33 1/3%
    of its fair market value.  If the facts  required  to  be
    shown  in  subsection (f) of Section 3-114 are satisfied,
    the Secretary of State shall issue a certificate of title
    as set forth in Section 3-116 of this Code. The Secretary
    of State may by rule or regulation require photographs to
    be submitted.
         (4)  A vehicle which is a part of a  fleet  of  more
    than  5  commercial  vehicles registered in this State or
    any  other  state  or  registered  proportionately  among
    several states shall be considered  to  be  salvage  when
    such  vehicle  has  sustained  damage by collision, fire,
    theft, rust, corrosion or similar means so that the  cost
    of  repairing  such  damage,  including  labor,  would be
    greater than 33 1/3% of the  fair  market  value  of  the
    vehicle  without  such  damage.   If the owner of a fleet
    vehicle desires to sell, transfer, or assign his interest
    in such vehicle to a person within this State other  than
    an  insurance company licensed to do business within this
    State, and the owner determines that such vehicle, at the
    time of the proposed  sale,  transfer  or  assignment  is
    damaged  in  excess  of 33 1/3% of its fair market value,
    the  owner  shall,  before   such   sale,   transfer   or
    assignment,  make  application for a salvage certificate.
    The  application  shall  contain  with  it  evidence   of
    possession  of  the vehicle.  If the fleet vehicle at the
    time of its sale, transfer, or assignment is not  damaged
    in  excess of 33 1/3% of its fair market value, the owner
    shall so  state  in  a  written  affirmation  on  a  form
    prescribed   by   the  Secretary  of  State  by  rule  or
    regulation.  The  Secretary  of  State  may  by  rule  or
    regulation  require  photographs  to  be submitted.  Upon
    sale, transfer or assignment of  the  fleet  vehicle  the
    owner  shall  mail  the  affirmation  to the Secretary of
         (5)  A vehicle that has been submerged in  water  to
    the  point  that  rising  water has reached over the door
    sill and has entered the passenger or  trunk  compartment
    is   a   "flood  vehicle".   A  flood  vehicle  shall  be
    considered  to  be  salvage  only  if  the  vehicle   has
    sustained  damage  so  that  the  cost  of  repairing the
    damage, including labor, would be greater than 33 1/3% of
    the fair market value of the vehicle without that damage.
    The salvage certificate issued under this  Section  shall
    indicate  the word "flood", and the word "flood" shall be
    conspicuously  entered  on  subsequent  titles  for   the
    vehicle.   A  person  who  possesses  or acquires a flood
    vehicle that is not damaged in excess of 33 1/3%  of  its
    fair  market  value  shall  make application for title in
    accordance with Section 3-116 of this  Code,  designating
    the  vehicle  as  "flood"  in  a manner prescribed by the
    Secretary of State.   The  certificate  of  title  issued
    shall  indicate  the  word  "flood", and the word "flood"
    shall be conspicuously entered on subsequent  titles  for
    the vehicle.
    (c)  Any  person  who  without authority acquires, sells,
exchanges, gives away, transfers or  destroys  or  offers  to
acquire,  sell,  exchange, give away, transfer or destroy the
certificate of title to  any  vehicle  which  is  a  junk  or
salvage vehicle shall be guilty of a Class 3 felony.
    (d)  Any  person  who knowingly fails to surrender to the
Secretary  of  State  a   certificate   of   title,   salvage
certificate,   certificate   of   purchase   or  a  similarly
acceptable out-of-state document  of  ownership  as  required
under  the  provisions of this Section is guilty of a Class A
misdemeanor for a first offense and a Class 4  felony  for  a
subsequent  offense; except that a person licensed under this
Code who violates paragraph (5) of  subsection  (b)  of  this
Section  is  guilty  of a business offense and shall be fined
not less than $1,000 nor more than $5,000 for a first offense
and is guilty of a Class 4 felony for a second or  subsequent
    (e)  Any  vehicle  which  is  salvage  or junk may not be
driven or operated on roads and highways within  this  State.
A  violation  of this subsection is a Class A misdemeanor.  A
salvage vehicle displaying valid special plates issued  under
Section  3-601(b)  of  this Code, which is being driven to or
from an inspection conducted  under  Section  3-308  of  this
Code,  is  exempt  from the provisions of this subsection.  A
salvage vehicle for which a short term permit has been issued
under  Section  3-307  of  this  Code  is  exempt  from   the
provisions of this subsection for the duration of the permit.
(Source: P.A. 89-669, eff. 1-1-97; 90-665, eff. 1-1-99.)
    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly May 15, 2002.
    Approved August 02, 2002.