Section 715.600  Use of Loan Guarantee Accounts

The Treasurer may establish one or more Loan Guarantee Accounts at approved financial institutions. The Loan Guarantee Accounts may be used to cover the losses on guaranteed loans at a participating financial institution. [15 ILCS 516/30-15]

a)         These accounts may be used to cover losses on guaranteed loans up to the full amount in the account or the amount of loss, whichever is less. [15 ILCS 516/30-30(a)]

b)         Fees established by the Treasurer in accordance with Section 715.430, will be deposited into the account.

c)         The Treasurer will withdraw the full amount in any loan guarantee account in the event the Program is discontinued.

d)         In the event the participating financial institution leaves the Program, the Treasurer will reallocate the funds in the loan guarantee account.

e)         The Treasurer may withdraw funds from any loan guarantee account for a financial institution's failure to comply with Program requirements. [15 ILCS 516/30-30(d)]