Sec. 15. Foreclosure of lien or security interest on a timeshare use.
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/il/chapter-770/act-103/15A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 15. Foreclosure of lien or security interest on a timeshare use.
(a)Notwithstanding anything in the Illinois Mortgage Foreclosure Law or the Uniform Commercial Code to the contrary, the holder of a managing entity lien created by Section 5 on a timeshare use, in the case of the failure to pay assessments when due, or a security interest against a timeshare use, in the case of a breach of the security agreement, may do either of the following:
(1)enforce the security interest pursuant to Part 6 of Article 9 of the Uniform
Commercial Code, including (without limitation) accepting the timeshare use in full or partial satisfaction of the timeshare use owner's obligation pursuant to Section 9-620 of the Uniform Commercial Code; or
(2)nonjudicially foreclose in the same manner as authorized by Section 10 for holders
of a mortgage or managing entity lien against a timeshare estate.
(b)All rights of redemption of a timeshare use owner are extinguished upon sale of a timeshare use as authorized by subsection
(a)of Section 10.
(c)The holder of the security interest or managing entity lien, the developer, the managing entity, and the timeshare use owner are not precluded from bidding at the sale of the timeshare use pursuant to this Section and may enter into agreements for the purchase of one or more timeshare uses following the completion of the sale proceedings.
(d)The purchaser at the public auction takes title to the timeshare use free and clear of any outstanding assessments owed by the prior timeshare use owner to the managing entity.