HB2717 EnrolledLRB103 30866 LNS 57379 b


  
1    AN ACT concerning civil law.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Mortgage Escrow Account Act is amended  by 
5changing Sections 5 and 7 as follows:
 



6    (765 ILCS 910/5)  (from Ch. 17, par. 4905)



7    Sec. 5. 
(a) When the mortgage is reduced to 65% of its 
8original amount by
payments of the borrower, timely made 
9according to the provisions of the
loan agreement secured by 
10the mortgage, and the borrower is otherwise not
in default on 
11the loan agreement, the mortgage lender must notify the 
12borrower
that he may terminate such escrow account or that he 
13may elect to continue
it until he requests a termination 
14thereof, or until the mortgage is paid
in full, whichever 
15occurs first.
16    (b) Notwithstanding the requirements in subsection (a), a 
17mortgage lender that complies with the escrow account 
18requirements in Title 12 CFR Part 1026, as amended, for a 
19mortgage loan that is a higher-priced mortgage loan, as 
20defined in Title 12 CFR Part 1026, as amended, is deemed to be 
21in compliance with subsection (a). 

22(Source: P.A. 79-625.)

 



 
 
HB2717 Enrolled- 2 -LRB103 30866 LNS 57379 b

1    (765 ILCS 910/7)  (from Ch. 17, par. 4907)



2    Sec. 7. 
The borrower shall not have the right to terminate 
3any such arrangement
under Section 5 in conjunction with 
4mortgages insured, guaranteed, supplemented,
or assisted by 
5the State of Illinois or the federal government that require

6an escrow arrangement for their continuation. The borrower 
7shall not have the right to terminate any such arrangement 
8under Section 5 in conjunction with a mortgage loan that is a 
9higher-priced mortgage loan as defined in Title 12 CFR Part 
101026, as amended, unless the borrower has met all of the 
11conditions for cancellation of an escrow account for a 
12higher-priced mortgage loan in Title 12 CFR Part 1026, as 
13amended. 

14(Source: P.A. 79-625.)

 
 
15    Section 99. Effective date. This Act takes effect upon 
16becoming law.