Illinois Administrative Code › Title 92 - TRANSPORTATION › Part 1070 - ILLINOIS SAFETY RESPONSIBILITY LAW › Section 1070.40 - Disposition of Security

Current through Register Vol. 48, No. 28, July 12, 2024
a) For
			 purposes of this Section, the following definitions shall apply:
"Claim" - a demand for something rightfully or allegedly
				due.
"Claimant" - person or persons making claim.
"Default" - failure to make a payment when due.
"Department" - Department of Driver Services within the Office
				of the Secretary of State.
"Discharged in Bankruptcy" - a legal order for release from a
				debt or debts.
"Installment Agreement" - agreement to pay debt in payments
				pursuant to Section 7-208 of the Illinois Safety and Family Financial
				Responsibility Law.
"Judgment Creditor" - person who is owed money due to a court
				judgment in the person's favor.
"Proper Notice" - notice provided by, but not limited to any of
				the following: Petition in Bankruptcy; Notice of Meeting of Creditors; Schedule
				A-3 of Schedule of Creditors; Trustee Report of No Assets; Discharge of
				Bankruptcy; Notice of Automatic Stay; Chapter 13 Wage Earner Plan.
"Release" - to give up or surrender a claim.
"Security" - deposit made to satisfy any potential judgment or
				judgments for money damages following an accident as provided in Section 7-201
				of the Illinois Safety and Family Financial Responsibility
				Law.
b) If a person has
			 security deposited with the Department and the Department subsequently receives
			 proper notice that the person has filed a petition for bankruptcy, then the
			 Department shall forward the posted security directly to the bankruptcy court
			 for disbursement during the normal course of the bankruptcy proceedings, and so
			 provide notification to the debtor.
c) If a person has security deposited with
			 the Department and the claim for which the security was deposited has been
			 discharged in bankruptcy without proper notice having been provided the
			 Department, then upon application by the depositor, the security shall be
			 refunded to the depositor if the Department receives documentation representing
			 that the claim for which the security was deposited has been discharged, or the
			 bankruptcy court's order of discharge listing the discharged parties and
			 claim.
d) A person posting a
			 security who wishes to have the security released to a party or parties other
			 than himself/herself shall provide to the Department a notarized letter
			 directing payment to the claimants. The person who is to receive the deposit
			 shall send to the Department a notarized release for the amount of the deposit
			 before payment will be made.
e) A
			 security deposit shall be released by the Department after the Department
			 receives a court order directing payment as provided in Section 7-214 of the
			 Illinois Safety and Family Financial Responsibility Law [625
			 ILCS 5/7-214 ].
f) If a security deposit is refunded because
			 a person enters into an installment agreement and that person later defaults,
			 the Department shall suspend that person's driving privileges and/or
			 registration until the original amount of security is redeposited or the other
			 requirements set forth in Section 7-208(c) of the Illinois Safety and Family
			 Financial Responsibility Law are met.
g) A security deposit shall be refunded if
			 the Department receives a notice of rescind of certification from the Illinois
			 Department of Transportation, or an order of exoneration from the Secretary of
			 State's Department of Administrative Hearings.
h) A security deposit shall also be refunded
			 if the Department receives a certified court order indicating the security
			 deposit should be refunded because the judgment has been satisfied, the case
			 has been dismissed, or the party posting the security is not liable.
i) A security deposit shall be refunded if no
			 legal action has been taken within 2 years after the date of the suspension or
			 upon the expiration of the applicable statute of limitations, whichever occurs
			 first, and the Department receives a notarized affidavit from the person
			 depositing the security stating that to the best of the person's knowledge, the
			 person has not been or is not being sued. To verify this, the Department shall
			 send the claimant a letter and give the claimant 2 weeks to respond. If the
			 claimant responds that a lawsuit has not been filed or does not respond, the
			 Department shall close the case and refund the security deposit. If the
			 interested party responds with a copy of the summons and complaint indicating
			 court action has been initiated within 2 years from the date of the suspension,
			 the security shall not be refunded to the depositor.
j) Upon application by a judgment creditor
			 seeking to obtain a security deposit, the Department shall notify the party who
			 deposited the security or that party's authorized representative of the receipt
			 of the unsatisfied judgment and that the security deposited shall be used
			 toward satisfying the judgment, unless thence notified within 14 days by the
			 party who deposited the security that the judgment has otherwise been
			 satisfied. If no adequate response is obtained from the person who has
			 deposited security, then the Department shall release the deposit to the
			 judgment creditor or the judgment creditor's authorized representative upon
			 receipt of a certified full or partial satisfaction of judgment.
k) If the security deposit so released
			 pursuant to an unsatisfied judgment received by the Department only comprises a
			 partial satisfaction of judgment, the remainder shall be paid by the driver or
			 party posting the deposit or the driver shall be suspended. The driver's
			 driving privileges and vehicle registration shall not be restored until proof
			 of satisfaction of judgment is submitted to the Department and future proof of
			 financial responsibility is filed for judgments in the amount of $500 or
			 more.
l) A surety bond shall be
			 terminated if no legal action has been taken within 2 years after the date of a
			 suspension, or upon the expiration of the applicable statute of limitations, if
			 the Department receives from a person a letter for termination of a surety bond
			 stating that to the best of that person's knowledge the person has not been or
			 is not being sued. To verify this the Department shall send the claimant a
			 letter and give the claimant 2 weeks to respond. If the claimant responds that
			 a lawsuit has not been filed or does not respond, the Department shall
			 terminate the surety bond. If the interested party responds with a copy of the
			 summons and complaint indicating court action has been initiated within 2 years
			 from the date of the suspension, the surety bond shall not be
			 terminated.
m) If a judgment
			 creditor wishes to obtain a payment from a surety bond to satisfy a judgment,
			 the judgment creditor shall notify the Safety and Financial Responsibility
			 Section of the Department. The Department shall send a letter to the party who
			 purchased the surety bond and the party's authorized representative informing
			 the party that the surety bond shall be used toward satisfying the judgment if
			 the party does not otherwise satisfy the judgment and notify the Department
			 within 14 days after the procedure used to satisfy the judgment. A copy of the
			 letter shall also be sent to the judgment creditor, the judgment creditor's
			 authorized representative, and the surety company. The Department shall
			 thereafter make a demand on the surety company for the bond and send a copy of
			 the letter to the judgment creditor and the judgment creditor's authorized
			 representative. If the surety bond only comprises partial satisfaction of
			 judgment, the remainder shall be paid by the driver or the person who posted
			 the surety bond or the driver's license and/or registration shall be suspended.
			 The driver's driving privileges and/or vehicle registration shall not be
			 restored until proof of satisfaction of judgment is submitted to the Department
			 and future proof of financial responsibility is filed for judgments in the
			 amount of $500 or more.
n)
If, after releasing security to a judgment debtor or claimant, the
			 balance of the security posted with the Secretary is $5 or less, the balance
			 shall be transferred to the General Revenue Fund. The Secretary will compile a
			 list of all security amounts of $5 or less annually in July and will certify
			 that amount to the State Comptroller. As soon as possible after receiving the
			 certification, the State Comptroller shall order transferred, and the State
			 Treasurer shall transfer, the amount certified to the General Revenue
			 Fund.
[625
			 ILCS 5/7-214 ]