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SB 1443

Income tax, state; establishes car tax credit.

2025 Regular Session Introduced by Tara Durant

Public Act 104-0101 confirms a mortgage lien is extinguished when the loan is paid in full under an authorized payoff statement, effective Aug 1, 2025.

Passed by indefinitely in Finance and Appropriations (10-Y 4-N)
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Bill Summary · SB 1443

SB 1443 — Mortgage Debt-Release (Public Act 104‑0101)

Status: Enacted as Public Act 104‑0101 — Effective August 1, 2025
Citation added: 765 ILCS 905/17 (new)

Main purpose

To confirm and preserve Illinois common‑law rule that full payment of a debt secured by a mortgage extinguishes the mortgage lien, and to specify that payment made pursuant to an authorized “payoff statement” extinguishes the lien.

Key provisions

  • Adds new Section 17 to the Illinois Mortgage Act (765 ILCS 905) stating:
    1. The Mortgage Act does not abrogate the Illinois common law that a mortgage lien is extinguished upon payment in full of the indebtedness it secures.
    2. Payment in full made pursuant to a “payoff statement” (as defined in Section 5 of the Mortgage Certificate of Release Act), issued by or on behalf of the holder of the indebtedness, extinguishes the mortgage lien.
  • Cross‑references the Mortgage Certificate of Release Act for the definition and form/requirements of a payoff statement.
  • Does not specify additional recording procedures or administrative steps beyond recognizing the effect of payment per an authorized payoff statement.

Who is affected

  • Borrowers/homeowners who pay off mortgage loans — clarifies their legal right to have the mortgage lien extinguished upon proper payoff.
  • Mortgage lenders, servicers, and holders — confirms that issuing an authorized payoff statement and accepting/acknowledging payoff will extinguish the lien.
  • Title companies, closing agents, county recorders, and attorneys — impacts how releases and title clearances are treated after payoff.
  • Secondary market participants and lien claimants — reduces ambiguity about lien status after payoff under an authorized payoff statement.

Practical impact and implications

  • Reinforces and clarifies the legal effect of full payoff so payoffs made under an authorized payoff statement will extinguish the lien even if formal recorded release is delayed.
  • May reduce disputes where lenders later assert liens remain despite borrower payment made according to a payoff statement.
  • Does not itself create new procedural recording rules; parties may still need to record a formal release or mortgage satisfaction to clear title in practice.
  • Relies on the existing Mortgage Certificate of Release Act for the technical definition and acceptable form of payoff statements.

Procedural/timeline notes

  • Enacted by the 104th General Assembly and published as Public Act 104‑0101.
  • Official effective date listed as August 1, 2025 (text of enrolled bill also states it takes effect upon becoming law; the public act record gives Aug 1, 2025).
  • Statutory location: new 765 ILCS 905/17.

Compiled from official sources — confirm details with the bill’s official record.

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