ILCS » Chapter 765 · Act 905
Illinois Compiled Statutes

765 ILCS 905/4 (2026)

If any mortgagee or trustee, in a deed in the nature of a mortgage, of real property, or his or her executor or administrator, heirs or assigns, knowing the same to be paid, shall not, within 30 days after the payment of the debt secured by such mortgage or trust deed, comply with the requirements of Section 2 of this Act, he or she shall, for every such offense, be liable for and pay to the party aggrieved the sum of $200 which may be recovered by the party aggrieved in a civil action, together with reasonable attorney's fees

✓ current as of May 2026
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(765 ILCS 905/4) (from Ch. 95, par. 54)
    Sec. 4. If any mortgagee or trustee, in a deed in the nature of a mortgage, of real property, or his or her executor or administrator, heirs or assigns, knowing the same to be paid, shall not, within 30 days after the payment of the debt secured by such mortgage or trust deed, comply with the requirements of Section 2 of this Act, he or she shall, for every such offense, be liable for and pay to the party aggrieved the sum of $200 which may be recovered by the party aggrieved in a civil action, together with reasonable attorney's fees. In any such action, introduction of a loan payment book or receipt which indicates that the obligation has been paid shall be sufficient evidence to raise a presumption that the obligation has been paid. Upon a finding for the party aggrieved, the court shall order the mortgagee or trustee, or his or her executor or administrator, heirs or assigns, to make, execute and deliver the release as provided in Section 2 of this Act. The successor in interest to the mortgagee or trustee in a deed in the nature of a mortgage shall not be liable for the penalty prescribed in this Section if he or she complies with the requirements of Section 2 of this Act within 30 days after succeeding to the interest.
(Source: P.A. 101-97, eff. 1-1-20.)

    
Notes of Decisions
Cited in 9 cases (1 in the last 5 years), 1997–2022 · leading case: Franz v. Calaco Dev. Corp., 818 N.E.2d 357 (Ill. App. Ct. 2004).
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Franz v. Calaco Dev. Corp., 818 N.E.2d 357 (Ill. App. Ct. 2004). · cites it 2× “” 765 ILCS 905/4 (West 2002). Questions of law, such as the interpretation of statutes, are reviewed de novo.”
Ardt v. State, 687 N.E.2d 126 (Ill. App. Ct. 1997). · cites it 2× “Illinois courts have adopted a similar analysis in cases involving the statutory attorney fee provisions of the Nursing Home Care Reform Act (210 ILCS 45/3 — 602 (West 1994)), the Mortgage Act (765 ILCS 905/4 (West 1994)), and the Consumer Fraud and Deceptive Business Practices…”
North Shore Cmty. Bank & Trust Co. v. Sheffield Wellington, LLC, 2014 IL App (1st) 123784 (Ill. App. Ct. 2014). “See 765 ILCS 905/4 (West 2008). Again, under section 4, full payment triggers only the obligation of a mortgagee to release a mortgage.”
North Shore Cmty. Bank & Trust Co. v. Sheffield Wellington, LLC, 2014 IL App (1st) 123784 (Ill. App. Ct. 2014). “See 765 ILCS 905/4 (West 2008). Again, under section 4, full payment triggers only the obligation of a mortgagee to release a mortgage.”
Rosenbach v. Six Flags Ent. Corp., 2017 IL App (2d) 170317 (Ill. App. Ct. 2020). · cites it 2× “¶ 24 Plaintiff cites the Uniform Commercial Code (UCC) (810 ILCS 5/2A-402(c) (West 2016)) and the Mortgage Act (765 ILCS 905/4 (West 2016)), asserting that they allow an “aggrieved” party a right of action without an actual injury.”
Rosenbach v. Six Flags Ent. Corp., 2017 IL App (2d) 170317 (Ill. App. Ct. 2017). · cites it 2× “¶ 24 Plaintiff cites the Uniform Commercial Code (UCC) (810 ILCS 5/2A-402(c) (West 2016)) and the Mortgage Act (765 ILCS 905/4 (West 2016)), asserting that they allow an “aggrieved” party a right of action without an actual injury.”
Franz v. Calaco Dev. Corp. (Ill. App. Ct. 2004). · cites it 2× “The Mortgage Act further states: "If any mortgagee *** knowing the same to be paid, shall not, within one month after the payment of the debt secured by such mortgage *** comply with the requirements of Section 2 of this Act, he shall, for every such offense, be liable for and…”
In re Est. of Schroeder, 2022 IL App (5th) 210663-U (Ill. App. Ct. 2022). “The bank further argued that the estate’s requested attorney fees were “not ‘reasonable’ as required by 765 ILCS 905/4, and said statute contains no provision for an aggrieved party to recover costs.”
Ardt v. State of Illinois (Ill. App. Ct. 1997). · cites it 2× “Illinois courts have adopted a similar analysis in cases involving the statutory attorney fee provisions of the Nursing Home Care Reform Act (210 ILCS 45/3-602 (West 1994)), the Mortgage Act (765 ILCS 905/4 (West 1994)), and the Consumer Fraud and Deceptive Business Practices…”
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