Plaintiff bank filed mortgage-foreclosure complaint and obtained $1.5 million judgment.Plaintiff, in supplementary proceedings, caused issuance of citation to discover assets and a 3rd-party citation to company, owned by Defendant's wife, that collected rents for Defendant's properties. Three local banks sought to intervene in supplementary proceedings, to assert adverse claims on rents held by that company. Court properly found that Plaintiff bank did not have priority over adverse claimants as to rents. Pursuant to Section 31.5 of Conveyances Act, rental agreements such as the forbearance agreements are beyond the reach of a 3rd party such as Plaintiff bank. Section 31.5 provides that assignment of rents is perfected upon recording. Mere recording does not affect who is entitled to rents until assignee enforces assignment under applicable law unless parties agree otherwise. (McLAREN and BURKE, concurring.)
Illinois Appellate Court
Civil Court
Foreclosure