102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1784

 

Introduced 2/17/2021, by Rep. Jehan Gordon-Booth

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 520/7  from Ch. 130, par. 26

    Amends the Deposit of State Moneys Act. Provides that the State Treasurer may accept a proposal from an eligible institution which provides for a reduced rate of interest provided that such institution documents the use of deposited funds for community development projects, with preference given to eligible institutions located in high unemployment communities. Defines "high unemployment communities".


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A BILL FOR

 

HB1784LRB102 13078 RJF 18421 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Deposit of State Moneys Act is amended by
5changing Section 7 as follows:
 
6    (15 ILCS 520/7)  (from Ch. 130, par. 26)
7    Sec. 7. (a) Proposals made may either be approved or
8rejected by the State Treasurer. A bank or savings and loan
9association whose proposal is approved shall be eligible to
10become a State depositary for the class or classes of funds
11covered by its proposal. A bank or savings and loan
12association whose proposal is rejected shall not be so
13eligible. The State Treasurer shall seek to have at all times a
14total of not less than 20 banks or savings and loan
15associations which are approved as State depositaries for time
16deposits.
17    (b) The State Treasurer may, in his discretion, accept a
18proposal from an eligible institution which provides for a
19reduced rate of interest provided that such institution
20documents the use of deposited funds for community development
21projects, with preference given to eligible institutions
22located in high unemployment communities. For the purposes of
23this subsection (b), "high unemployment communities" means

 

 

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1municipalities located in this State whose unemployment rate
2is higher than the State's average unemployment rate.
3    (b-5) The State Treasurer may, in his or her discretion,
4accept a proposal from an eligible institution that provides
5for a reduced rate of interest, provided that such institution
6agrees to expend an amount of money equal to the amount of the
7reduction for the preservation of Cahokia Mounds.
8    (b-10) The State Treasurer may, in his or her discretion,
9accept a proposal from an eligible institution that provides
10for a reduced rate of interest, provided that the institution
11agrees to expend an amount of money equal to the amount of the
12reduction for senior centers.
13    (c) The State Treasurer may, in his or her discretion,
14accept a proposal from an eligible institution that provides
15for interest earnings on deposits of State moneys to be held by
16the institution in a separate account that the State Treasurer
17may use to secure up to 10% of any (i) home loans to Illinois
18citizens purchasing or refinancing a home in Illinois in
19situations where the participating financial institution would
20not offer the borrower a home loan under the institution's
21prevailing credit standards without the incentive of a reduced
22rate of interest on deposits of State moneys, (ii) existing
23home loans of Illinois citizens who have failed to make
24payments on a home loan as a result of a financial hardship due
25to circumstances beyond the control of the borrower where
26there is a reasonable prospect that the borrower will be able

 

 

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1to resume full mortgage payments, and (iii) loans in amounts
2that do not exceed the amount of arrearage on a mortgage and
3that are extended to enable a borrower to become current on his
4or her mortgage obligation.
5    The following factors shall be considered by the
6participating financial institution to determine whether the
7financial hardship is due to circumstances beyond the control
8of the borrower: (i) loss, reduction, or delay in the receipt
9of income because of the death or disability of a person who
10contributed to the household income, (ii) expenses actually
11incurred related to the uninsured damage or costly repairs to
12the mortgaged premises affecting its habitability, (iii)
13expenses related to the death or illness in the borrower's
14household or of family members living outside the household
15that reduce the amount of household income, (iv) loss of
16income or a substantial increase in total housing expenses
17because of divorce, abandonment, separation from a spouse, or
18failure to support a spouse or child, (v) unemployment or
19underemployment, (vi) loss, reduction, or delay in the receipt
20of federal, State, or other government benefits, and (vii)
21participation by the homeowner in a recognized labor action
22such as a strike. In determining whether there is a reasonable
23prospect that the borrower will be able to resume full
24mortgage payments, the participating financial institution
25shall consider factors including, but not necessarily limited
26to the following: (i) a favorable work and credit history,

 

 

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1(ii) the borrower's ability to and history of paying the
2mortgage when employed, (iii) the lack of an impediment or
3disability that prevents reemployment, (iv) new education and
4training opportunities, (v) non-cash benefits that may reduce
5household expenses, and (vi) other debts.
6    For the purposes of this Section, "home loan" means a
7loan, other than an open-end credit plan or a reverse mortgage
8transaction, for which (i) the principal amount of the loan
9does not exceed the conforming loan size limit as established
10from time to time by the Federal National Mortgage
11Association, (ii) the borrower is a natural person, (iii) the
12debt is incurred by the borrower primarily for personal,
13family, or household purposes, and (iv) the loan is secured by
14a mortgage or deed of trust on real estate upon which there is
15located or there is to be located a structure designed
16principally for the occupancy of no more than 4 families and
17that is or will be occupied by the borrower as the borrower's
18principal dwelling.
19    (d) If there is an agreement between the State Treasurer
20and an eligible institution that details the use of deposited
21funds, the agreement may not require the gift of money, goods,
22or services to a third party; this provision does not restrict
23the eligible institution from contracting with third parties
24in order to carry out the intent of the agreement or restrict
25the State Treasurer from placing requirements upon third-party
26contracts entered into by the eligible institution.

 

 

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1(Source: P.A. 95-834, eff. 8-15-08.)