Sen. John J. Cullerton
Filed: 3/14/2007
 
 

 




 

 		












09500SB0537sam001

LRB095 00150 AJO 33651 a






1

AMENDMENT TO SENATE BILL 537




2
    AMENDMENT NO. ______. Amend Senate Bill 537 by replacing 
3
everything after the enacting clause with the following: 

 
4
    "Section 5. The Mortgage Escrow Account Act is amended  by 
5
changing Sections 6 and 8 as follows:
 



6
    (765 ILCS 910/6)  (from Ch. 17, par. 4906)



7
    Sec. 6. In lieu of the mortgage lender establishing an 
8
escrow account
or an escrow-like arrangement, a borrower may 
9
(i) pledge an interest bearing
time deposit with the mortgage 
10
lender in an
amount sufficient to secure the payment of 
11
anticipated taxes or (ii) establish and maintain a savings 
12
account for the purpose of payment of the taxes when due on the 
13
residence covered by the mortgage.

14
(Source: P.A. 84-232.)

 



15
    (765 ILCS 910/8)  (from Ch. 17, par. 4908)



 


 






09500SB0537sam001
- 2 -
LRB095 00150 AJO 33651 a




1
    Sec. 8. If after terminating an escrow arrangement or 
2
establishing a savings account under the terms
conditions
of 
3
this Act, the borrower does not furnish to the lender 
4
sufficient evidence
of payment of the taxes when due on the 
5
residence covered by the mortgage
with respect to which the 
6
escrow arrangement was established, the lender,
after taking 
7
reasonably good faith steps to verify nonpayment, may, within

8
thirty days after such payment is due, establish or reestablish 
9
an escrow
arrangement notwithstanding the provisions of this 
10
Act.

11
(Source: P.A. 79-625.)".