(765 ILCS 435/1)
Sec. 1.
Short title.
This Act may be cited as the Land Trust Fiduciary Duties Act.
(Source: P.A. 91-433, eff. 8-6-99.)
(765 ILCS 435/5)
Sec. 5.
Legislative finding; purpose.
(a) The General Assembly finds that the Illinois judiciary system and the
federal judiciary system have unclear court decisions as to whether the holders
of the power of direction have fiduciary duties to the holders of the
beneficial interest in
land
trusts. The terms “land trust” and “beneficial interest” have the same
meanings as defined in
Section 2 of the Land Trustee as Creditor Act.
(b) It is the purpose of this Act to clarify that
holders of the power of direction are accountable to the holders of the
beneficial
interest
in land trusts as declaratory of existing law.
(Source: P.A. 91-433, eff. 8-6-99.)
(765 ILCS 435/10)
Sec. 10.
Holders of the power of direction; definition.
“Holders of the power of direction” means the persons or entities having
the authority to direct
the trustee to
convey, execute a mortgage, distribute proceeds of sale or financing, and
execute documents incidental to the execution
of a land trust.
(Source: P.A. 91-433, eff. 8-6-99.)
(765 ILCS 435/15)
Sec. 15.
Fiduciary duties of holders of the power of direction.
The
power
of direction, unless provided otherwise in the land trust agreement, is
conferred upon the holders thereof for the use and benefit of all of the
holders of the
beneficial interest in the land trust. In exercising the power of
direction, the holders are presumed to act in a fiduciary capacity for the
benefit of all
holders of the
beneficial interest in the trust, unless otherwise provided in the land trust
agreement. The beneficial
interest shall be indefeasible and the power of direction shall not be so
exercised to alter, amend, revoke, terminate, defeat, or otherwise affect or
change the enjoyment of any
beneficial interest.
(Source: P.A. 91-433, eff. 8-6-99.)
(765 ILCS 435/20)
Sec. 20.
Application of Act.
This Act
is declaratory of existing law and is intended to remove any possible conflicts
or ambiguities, thereby confirming the existing law pertinent to land trusts
and shall apply to all land trusts
in
effect before, on, or after the effective date of this Act.
(Source: P.A. 91-433, eff. 8-6-99.)
(765 ILCS 435/99)
Sec. 99.
Effective date.
This Act takes effect upon becoming law.
(Source: P.A. 91-433, eff. 8-6-99.)