Section 715.400  Participating Financial Institution Eligibility and Responsibilities

a)         The Treasurer will determine the eligibility of financial institutions to participate in the Program. In determining the eligibility of the financial institution to participate, the Treasurer will consider the financial institution's commitment to low-income communities…and the financial institution's commitment to communities considered disproportionately impacted areas, depressed areas, or enterprise zones as determined, designated, or certified by the Department of Commerce and Economic Opportunity in accordance with any applicable federal law or program. [15 ILCS 516/30-20]

b)         In order to participate in the Program, financial institutions must meet the following criteria:

1)         have a CRA rating of satisfactory or outstanding or be a credit union that does not have a CRA rating at the time of application;

2)         have an IDC rating of at least 75;

3)         be an FDIC-insured financial institution, or a credit union insured by the NCUA or other approved share insurer pursuant to the Illinois Credit Union Act [205 ILCS 305/58];

4)         be an Illinois or national financial institution that is authorized to do business in Illinois, and be in good standing with the financial institution's regulators;

5)         have a presence in Illinois; and

6)         comply with all Program requirements.

c)         Participating financial institutions are responsible for the following:

1)         understanding and complying with the Program requirements found in Section 715.420;

2)         ensuring that the business meets the eligibility requirements for the Program found in Section 715.500;

3)         the day-to-day management of the loans guaranteed by the Program in accordance with the participating financial institution's established internal loan processes; and

4)         submitting annual reports to the Treasurer that include the following information for each business loan guaranteed through the Program:

A)        the percentage of the loan that is guaranteed by the Program;

B)        the dollar amount of the guarantee;

C)        the type of loan (e.g., fixed or variable rate);

D)        the terms of the loan;

E)        the interest rates being charged to the business for the loan;

F)         the frequency of interest rate changes, if applicable;

G)        the highest interest rate possible over the life of the loan;

H)        any pre-payment penalties that may apply on the loan;

I)         the payment history for loans that have been guaranteed through the Program; and

J)         any other information that is relevant to a full, fair, and effective disclosure of the operations of the Program.