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(205 ILCS 205/6002) (from Ch. 17, par. 7306-2)
Sec. 6002. Investment in loans. (a) Subject to the regulations of the
Commissioner, a savings bank may loan funds as follows:
(1) On the security of deposit accounts, but no such |
| loan shall exceed the withdrawal value of the pledged account.
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(2) On the security of real estate:
(A) of a value, determined in accordance with
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| this Act, sufficient to provide good and ample security for the loan;
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(B) with a fee simple title or a leasehold title;
(C) with the title established by evidence of
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| title as is consistent with sound lending practices in the locality;
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(D) with the security interest in the real estate
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| evidenced by an appropriate written instrument and the loan evidenced by a note, bond, or similar written instrument; a loan on the security of the whole of the beneficial interest in a land trust satisfies the requirements of this paragraph if the title to the land is held by a corporate trustee and if the real estate held in the land trust meets the other requirements of this subsection;
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(E) with a mortgage loan not to exceed 40 years.
(3) For the purpose of repair, improvement,
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| rehabilitation, furnishing, or equipment of real estate.
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(4) For the purpose of financing or refinancing an
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| existing ownership interest in certificates of stock, certificates of beneficial interest, other evidence of an ownership interest in, or a proprietary lease from a corporation, trust, or partnership formed for the purpose of the cooperative ownership of real estate, secured by the assignment or transfer of certificates or other evidence of ownership of the borrower.
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(5) Through the purchase of loans that, at the time
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| of purchase, the savings bank could make in accordance with this Section and the bylaws.
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(6) Through the purchase of installment contracts for
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| the sale of real estate and title thereto that is subject to the contracts, but in each instance only if the savings bank, at the time of purchase, could make a mortgage loan of the same amount and for the same length of time on the security of the real estate.
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(7) Through loans guaranteed or insured, wholly or in
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| part, by the United States or any of its instrumentalities.
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(8) Subject to regulations adopted by the
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| Commissioner, through secured or unsecured loans for business, corporate, commercial, or agricultural purposes; provided that the total of all loans granted under this paragraph shall not exceed 15% of the savings bank's total assets unless a greater amount is authorized in writing by the Commissioner.
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(9) For the purpose of manufactured home financing
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| subject, however, to the regulation of the Commissioner. As used in this Section, "manufactured home" means a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code.
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(10) Through loans secured by the cash surrender
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| value of any life insurance policy or any collateral that would be a legal investment under the terms of this Act if made by the savings bank.
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(11) Any provision of this Act or any other law,
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| except for paragraph (18) of Section 6003, to the contrary notwithstanding, but subject to the Financial Institutions Insurance Sales Law and subject to the Commissioner's regulations, any savings bank may make any loan or investment or engage in any activity that it could make or engage in if it were organized under State law as a savings and loan association or under federal law as a federal savings and loan association or federal savings bank.
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(12) A savings bank may issue letters of credit or
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| other similar arrangements only as provided for by regulation of the Commissioner with regard to aggregate amounts permitted, take out commitments for stand-by letters of credit, underlying documentation and underwriting, legal limitations on loans of the savings bank, control and subsidiary records, and other procedures deemed necessary by the Commissioner.
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(13) For the purpose of automobile financing, subject
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| to the regulation of the Commissioner.
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(14) For the purpose of financing primary, secondary,
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| undergraduate, or postgraduate education.
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(15) Through revolving lines of credit on the
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| security of a first or junior lien on the borrower's personal residence, based primarily on the borrower's equity, the proceeds of which may be used for any purpose; those loans being commonly referred to as home equity loans.
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(16) As secured or unsecured credit to cover the
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| payment of checks, drafts, or other funds transfer orders in excess of the available balance of an account on which they are drawn, subject to the regulations of the Commissioner.
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(b) For purposes of this Section, "real estate" includes a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code which is real property as defined in Section 5-35 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
(Source: P.A. 98-749, eff. 7-16-14.)
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