HB3749 EngrossedLRB098 14652 NHT 49564 b


  
1    AN ACT concerning education.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 1. Short title. This Act may be cited as the Higher 
5Education Employee Loan Act.
 
6    Section 5. Definitions.   In this Act:
7    "Foundation" means the official fundraising and private 
8gift-receiving organization for an institution.
9    "Institution" means a not-for-profit higher education 
10institution, whether public or private, located in this State.
11    "Prevailing loan interest rate" means the prevailing rate 
12of interest on loans as from time to time is publicly announced 
13by the largest commercial banking institution located in this 
14State.
 
15    Section 10. Limitations on loan making. 
16    (a)   If an institution or its foundation makes a loan to an 
17employee or contractor of either the institution or the 
18foundation, then the annual rate of interest must be equal to 
19the  prevailing loan interest rate in effect at the time the 
20institution or foundation approves the loan.  However, an 
21institution or its foundation may not make a loan to an 
22employee or contractor of either the institution or the 
 
 
HB3749 Engrossed- 2 -LRB098 14652 NHT 49564 b

1foundation for the purpose of purchasing a non-primary 
2residence.
3    (b) An institution or its foundation may not forgive a loan 
4made to an employee or contractor of either the institution or 
5the foundation.
 
6    Section 90. Enforcement.   The Board of Higher Education 
7shall adopt rules to enforce this Act, which may include the 
8imposition of a civil penalty.
  
 
9    Section 99. Effective date. This Act takes effect upon 
10becoming law.