Illinois Compiled Statutes
35 ILCS 200/21-295 (2026)
Creation of indemnity fund
✓ current as of May 2026
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(35 ILCS 200/21-295)
Sec. 21-295. Creation of indemnity fund.
(a) In counties of less than 3,000,000 inhabitants, each person
purchasing any property at a sale under this Code shall pay
to the County Collector, prior to the issuance of any certificate of purchase,
an indemnity fee set by the county collector of not more than $20 for each item purchased. A like sum shall be paid for each year
that all or a portion of
subsequent taxes are paid by the tax purchaser
and posted to
the tax judgment, sale, redemption and forfeiture record where the underlying
certificate of purchase is recorded.
(a-5) In counties of 3,000,000 or more inhabitants, each person purchasing
property at a
sale under this Code shall pay to the County Collector a
nonrefundable fee of $80
for each item purchased plus an additional sum equal to 5% of the taxes,
interest, and penalties paid
under Section 21-240. In these counties, the certificate holder shall also pay
to the County Collector a fee of $80 for each year that all or a portion of
subsequent taxes are paid by the tax purchaser and posted to the tax judgment,
sale, redemption, and forfeiture record.
The changes to this subsection made by this amendatory Act of the 91st
General Assembly are not a new enactment, but declaratory of existing law.
(b) The amount paid prior to issuance of the certificate of purchase
pursuant to subsection (a) or (a-5) shall be included in the purchase price of
the property in the
certificate of purchase and all amounts paid under this Section shall be
included in the amount
required to redeem under Section 21-355, except for the nonrefundable $80 fee for each item purchased at the tax sale as provided in this Section.
Except as otherwise provided in subsection (b) of Section 21-300, all
money received under subsection (a) or (a-5) shall be paid by the Collector
to the
County Treasurer of the County in which the land is situated, for the purpose
of an indemnity fund. The County Treasurer, as trustee of that fund, shall
invest all of that fund, principal and income, in his or her hands from time to
time, if not immediately required for payments of indemnities under subsection
(a) of Section 21-305, in investments permitted by the Illinois State Board of
Investment under Article 22A of the Illinois Pension Code. The county
collector shall report annually to the county clerk on the condition and
income of the fund. The indemnity fund shall be held to satisfy judgments
obtained against the County Treasurer, as trustee of the fund. No payment shall
be made from the fund, except upon a judgment of the court which ordered the
issuance of a tax deed.
(Source: P.A. 100-1070, eff. 1-1-19; 101-659, eff. 3-23-21.)
Notes of Decisions
Cited in 11
cases (2 in the last 5 years), 1998–2025 · leading case: Demos v. Pappas, 2011 IL App (1st) 100829 (Ill. App. Ct. 2011).
Demos v. Pappas, 2011 IL App (1st) 100829 (Ill. App. Ct. 2011). “MARIA PAPPAS, County Treasurer of Cook County, Illinois, as Trustee of the Indemnity Fund Created by Section 21-295 of the Property Tax Code (35 ILCS 200/21-295), Respondent-Appellant (Bank of America, Illinois, Citation Respondent-Appellee).”
AP Props., Inc. v. Rattner, 960 N.E.2d 618 (Ill. App. Ct. 2011). “The public policy of Illinois is to protect the rights of those who purchase real estate that is sold for delinquent taxes, and the legislature has created an indemnity fund to compensate those who lose their interests in real property that is sold for delinquent taxes (see 35…”
DG Enter. v. Cornelius, 2015 IL 118975 (Ill. 2015). “See 35 ILCS 200/21-295 et seq. (West 2010). The indemnity provisions were enacted by the legislature in 1970 in recognition that taxes may go unpaid and property may be lost to a tax deed, in situations where there are equitable circumstances that favor the former property owner.”
In Re Application of Cnty. Collector, 838 N.E.2d 907 (Ill. 2005). “See 35 ILCS 200/21-295 et seq. (West 1994). The indemnity provisions were enacted by the legislature in 1970 in recognition of the fact that taxes may go unpaid, and property may be lost to a tax deed, because of circumstances such as mental or physical disability that are…”
Greater Pleasant Valley Church in Christ v. Pappas, 2012 IL App (1st) 111853 (Ill. App. Ct. 2012). “MARIA PAPPAS, County Treasurer of Cook County, Illinois, as Trustee of the Indemnity Fund Created By Section 21-295 of the Property Tax Code (35 ILCS 200/21-295), Respondent-Appellee.”
A.P. Props. v. Rattner, 2011 IL App (2d) 110061 (Ill. App. Ct. 2011). “The public policy of Illinois is to protect the rights of those who purchase real estate that is sold for delinquent taxes, and the legislature has created an indemnity fund to compensate those who lose their interests in real property that is sold for delinquent taxes (see 35…”
Demos v. Pappas, 956 N.E.2d 533 (Ill. App. Ct. 2011). “Maria PAPPAS, County Treasurer of Cook County, Illinois, as Trustee of the Indemnity Fund Created by Section 21-295 of the Property Tax Code (35 ILCS 200/21-295), Respondent-Appellant (Bank of America, Illinois, Citation Respondent-Appellee).”
Hedrick v. Bathon (Ill. App. Ct. 2001). “Thereafter, petitioner sought compensation for the loss of her property by filing a petition for indemnity against Fred Bathon (respondent), the Madison County Treasurer, in his capacity as the trustee for the county's indemnity fund (Indemnity Fund), pursuant to section 21-295…”
In re Application of the Cnty. Treasurer & ex officio Cnty. Collector of Cook Cnty., 2025 IL App (1st) 232397-U (Ill. App. Ct. 2025). “” 35 ILCS 200/21-295(a-5) (West 2022). Because Newline failed to pay the requisite indemnity fee, the County Clerk did not post its payment for the 2018 taxes on the Wolcott Property to the judgment record.”
Top Metal Buyers Inc. v. Lopinot (S.D. Ill. 2025). “35 ILCS 200/21-295 et seq. To make such a claim, the former property owner must first file a legal action after the entire foreclosure process is complete.”
McClandon v. Rosewell (Ill. App. Ct. 1998). “Plaintiff, Joeann McClandon, is a professional real estate investor who has attended several of the Cook County Collector's annual scavenger tax sales and has purchased delinquent taxes at those sales on numerous occasions.”
— 35 ILCS 200/21-295(a) — 2 cases
Demos v. Pappas, 2011 IL App (1st) 100829 (Ill. App. Ct. 2011). “MARIA PAPPAS, County Treasurer of Cook County, Illinois, as Trustee of the Indemnity Fund Created by Section 21-295 of the Property Tax Code (35 ILCS 200/21-295), Respondent-Appellant (Bank of America, Illinois, Citation Respondent-Appellee).”
Demos v. Pappas, 956 N.E.2d 533 (Ill. App. Ct. 2011). “Maria PAPPAS, County Treasurer of Cook County, Illinois, as Trustee of the Indemnity Fund Created by Section 21-295 of the Property Tax Code (35 ILCS 200/21-295), Respondent-Appellant (Bank of America, Illinois, Citation Respondent-Appellee).”
— 35 ILCS 200/21-295(b) — 2 cases
Demos v. Pappas, 2011 IL App (1st) 100829 (Ill. App. Ct. 2011). “MARIA PAPPAS, County Treasurer of Cook County, Illinois, as Trustee of the Indemnity Fund Created by Section 21-295 of the Property Tax Code (35 ILCS 200/21-295), Respondent-Appellant (Bank of America, Illinois, Citation Respondent-Appellee).”
Demos v. Pappas, 956 N.E.2d 533 (Ill. App. Ct. 2011). “Maria PAPPAS, County Treasurer of Cook County, Illinois, as Trustee of the Indemnity Fund Created by Section 21-295 of the Property Tax Code (35 ILCS 200/21-295), Respondent-Appellant (Bank of America, Illinois, Citation Respondent-Appellee).”
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