Cal. Civ. Code § 2
Receivership; utility service termination
Operative Text
Receivership; utility service termination. (a) Tenants, upon receiving notice of utility service termination pursuant to Section 1, and utility companies may petition the circuit court, or any court having jurisdiction, for appointment of a receiver of rents due for use and occupancy of the building. No one building may be the subject of more than 2 such petitions in any consecutive 12 month period. The petition shall be served upon the landlord at his or her last known address and upon the utility company which has rendered notice of termination of utility service, except when the utility company is the petitioner. Upon a finding that the tenants' utility service is subject to termination or has been terminated as a result of an amount due and owing by the landlord to the utility company, the court shall appoint a receiver who shall be authorized to collect rents due from the tenants for use and occupancy of the building. The court shall also design a payment plan through which the receiver shall be required to remit to the utility company such portion of the funds as are necessary for payment of current utility bills incurred during the term of the receivership, including any security deposit requested by the utility in accordance with the rules and regulations of the Illinois Commerce Commission. The receiver shall remit the remainder of the collected rents as the court shall direct, taking into consideration the ordinary and necessary expenses of the property including, but not limited to, repair, maintenance, other utility bills, property taxes, arrearages which were the subject of the petition, and any capital expenditures deemed necessary by the court. The landlord or his or her agent shall be liable for arrearages due to the utility company which the court in its payment plan determines cannot feasibly be remitted by the receiver from the collected rents within 12 months. (b) Within 10 days of the appointment of the receiver, during which time the utility company shall not discontinue service to the building for reason of nonpayment, such receiver shall make a determination as to whether or not the rents due for the use and occupancy of the building can reasonably be expected to be sufficient to pay current bills and to pay any security deposit which may be requested by the utility. Upon a determination by the court that the rents due for the use and occupancy of the building cannot reasonably be expected to be sufficient to pay current bills and to pay any security deposit which may be requested by the utility, such receivership shall be terminated. (c) In the event that a petition for receivership is filed after utility service has been terminated, service shall be restored as soon as the utility company receives notice that a receiver has been appointed. The receiver shall make all reasonable efforts to provide to the utility access to the building at all times. (d) Any receivership established pursuant to this Section shall be terminated by the court upon its finding that the arrearage which was the subject of the petition has been satisfied or upon its finding that the income from the building has become insufficient to pay current utility bills and retire the arrearages as ordered by the court and shows no reasonable likelihood of becoming sufficient.
Under 765 Ill. Comp. Stat. 735 § 2, when a landlord's unpaid utility bills threaten to cut off service to a residential building, tenants or the utility company may ask a circuit court to appoint a rent receiver. That receiver collects rent from tenants and uses it to pay current utility bills, property expenses, and outstanding arrearages according to a court-designed payment plan. The receivership ends when the debt is resolved, or when collected rents are found insufficient to cover ongoing costs with no reasonable prospect of improvement. No single building may be the subject of more than two such petitions within any consecutive 12-month period.
Plain English — not legal advice.
Under 765 Ill. Comp. Stat. 735 § 2, a landlord whose utility account falls into arrears risks losing direct control of rent collection through a court-appointed receivership. Operators who stay current on utility bills and maintain open communication with utility providers generally avoid the conditions that trigger a petition under this provision. If a receivership is established, the landlord or their agent remains personally liable for any arrearage the court determines cannot feasibly be retired from collected rents within 12 months, making proactive account management a standard part of compliant property operations.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
765 Ill. Comp. Stat. 735 § 2 gives tenants a direct legal tool: upon receiving a utility termination notice under Section 1, tenants may petition the circuit court for appointment of a rent receiver without having to wait for the landlord to act. During the receivership, tenants continue paying rent to the receiver rather than the landlord, and those funds are directed toward keeping utility service active and covering necessary property expenses. Tenants who receive a termination notice may want to consult a tenant-rights organization or legal aid provider to understand how to file a petition and what protections apply during the 10-day window after a receiver is appointed.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.