(a) Mortgagee in Possession. Upon good cause shown after notice and hearing, the court may require that a mortgagee in possession give bond to other parties to account for what shall come into the mortgagee's possession by virtue of taking possession of the mortgaged real estate and for the acts of such mortgagee. The bond shall be in such reasonable amount, form and with such surety as may be required by the court.
15-1705.Bond.
Article XV. Mortgage Foreclosure · Part 17. Possession During Foreclosure · Not amended since adoption on record · Last verified July 20, 2026
In one sentenceLets a court require a mortgagee in possession or a court-appointed receiver to post bond to guarantee an honest accounting, but exempts a bond-qualified corporate trustee acting in either role from anything beyond an appeal bond.
Full Text of 735 ILCS 5/15-1705
(c) Corporations. Notwithstanding the provisions of subsections (a) and (b) of Section 15-1705, a corporation qualified to administer trusts in this State that is acting as a mortgagee in possession or receiver shall not be required to give bond other than appeal bonds.
Plain-English Summary
After notice and a hearing, and only on a showing of good cause, a court may require a mortgagee in possession to post bond covering what comes into its hands from the property and its conduct while in possession. The court sets the amount, form, and surety it considers reasonable.
For a court-appointed receiver, bond is governed instead by Section 2-415 of this Code. And corporations qualified to administer trusts in Illinois get a specific exemption: when acting as either a mortgagee in possession or a receiver, they don't have to post bond beyond whatever appeal bonds a case may require.
Frequently Asked Questions
Can a court require a mortgagee in possession to post bond?
Yes, but only after notice and a hearing, and only on a showing of good cause, in an amount and form the court sets.
What governs bond for a court-appointed receiver in a foreclosure?
Section 2-415 of the Code of Civil Procedure.
Does a bank or trust company acting as mortgagee in possession have to post bond?
Not beyond appeal bonds, if it's a corporation qualified to administer trusts in Illinois.
What does a mortgagee's bond under this section guarantee?
An accounting for whatever comes into the mortgagee's possession from the property, and for its own conduct while in possession.
Is bond required in every foreclosure where a receiver is appointed?
No — the court requires it under Section 2-415 only when the circumstances call for it, not automatically in every case.
Amendment History
(Source: P.A. 84-1462.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: bond requirement mortgagee in possession illinoisreceiver bond illinois foreclosurecorporate trustee bond exemption foreclosuresection 2-415 receiver bond illinois