Illinois General Assembly - Full Text of HB0468
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Full Text of HB0468  94th General Assembly

HB0468 94TH GENERAL ASSEMBLY


 


 
94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0468

 

Introduced 1/26/2005, by Rep. Edward J. Acevedo

 

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

    Amends the Deposit of State Moneys Act. Provides that the Treasurer may accept a proposal from an eligible institution that provides a reduced rate of interest if the institution agrees to expend an amount equal to the reduction for the delivery of credit union products and services and financial literacy programs to low income members of certain credit unions. Provides that the proposal and acceptance shall be contained in an agreement between the State Treasurer, the institution, and a third party, if applicable, and the agreement shall restrict the use of the funds to the prospective delivery of the foregoing products, services, and programs. Effective immediately.


LRB094 06717 RSP 36816 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0468 LRB094 06717 RSP 36816 b

1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Deposit of State Moneys Act is amended by
5 changing 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
8 rejected by the State Treasurer. A bank or savings and loan
9 association whose proposal is approved shall be eligible to
10 become a State depositary for the class or classes of funds
11 covered by its proposal. A bank or savings and loan association
12 whose proposal is rejected shall not be so eligible. The State
13 Treasurer shall seek to have at all times a total of not less
14 than 20 banks or savings and loan associations which are
15 approved as State depositaries for time deposits.
16     (b) The State Treasurer may, in his discretion, accept a
17 proposal from an eligible institution which provides for a
18 reduced rate of interest provided that such institution
19 documents the use of deposited funds for community development
20 projects.
21     (b-5) The State Treasurer may, in his or her discretion,
22 accept a proposal from an eligible institution that provides
23 for a reduced rate of interest, provided that such institution
24 agrees to expend an amount of money equal to the amount of the
25 reduction for the preservation of Cahokia Mounds.
26     (b-10) The State Treasurer may, in his or her discretion,
27 accept a proposal from an eligible institution that provides
28 for a reduced rate of interest, provided that the institution
29 agrees to expend an amount of money equal to the amount of the
30 reduction for senior centers.
31     (b-15) The State Treasurer may, in his or her discretion,
32 accept a proposal from an eligible institution that provides

 

 

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1 for a reduced rate of interest, provided that the institution
2 agrees to expend an amount of money equal to the amount of the
3 reduction for the delivery of credit union products and
4 services and financial literacy programs to low income members
5 of a credit union, as defined in Section 13(17) of the Illinois
6 Credit Union Act, or members of a credit union residing in
7 investment areas of the State, as defined in Section 16.1 of
8 the Illinois Credit Union Act. The proposal and acceptance
9 shall be contained in an agreement between the State Treasurer,
10 the institution, and a third party, if applicable, and the
11 agreement shall restrict the use of the funds to the
12 prospective delivery of the foregoing products, services, and
13 programs.
14     (c) The State Treasurer may, in his or her discretion,
15 accept a proposal from an eligible institution that provides
16 for interest earnings on deposits of State moneys to be held by
17 the institution in a separate account that the State Treasurer
18 may use to secure up to 10% of any (i) home loans to Illinois
19 citizens purchasing a home in Illinois in situations where the
20 participating financial institution would not offer the
21 borrower a home loan under the institution's prevailing credit
22 standards without the incentive of a reduced rate of interest
23 on deposits of State moneys, (ii) existing home loans of
24 Illinois citizens who have failed to make payments on a home
25 loan as a result of a financial hardship due to circumstances
26 beyond the control of the borrower where there is a reasonable
27 prospect that the borrower will be able to resume full mortgage
28 payments, and (iii) loans in amounts that do not exceed the
29 amount of arrearage on a mortgage and that are extended to
30 enable a borrower to become current on his or her mortgage
31 obligation.
32     The following factors shall be considered by the
33 participating financial institution to determine whether the
34 financial hardship is due to circumstances beyond the control
35 of the borrower: (i) loss, reduction, or delay in the receipt
36 of income because of the death or disability of a person who

 

 

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1 contributed to the household income, (ii) expenses actually
2 incurred related to the uninsured damage or costly repairs to
3 the mortgaged premises affecting its habitability, (iii)
4 expenses related to the death or illness in the borrower's
5 household or of family members living outside the household
6 that reduce the amount of household income, (iv) loss of income
7 or a substantial increase in total housing expenses because of
8 divorce, abandonment, separation from a spouse, or failure to
9 support a spouse or child, (v) unemployment or underemployment,
10 (vi) loss, reduction, or delay in the receipt of federal,
11 State, or other government benefits, and (vii) participation by
12 the homeowner in a recognized labor action such as a strike. In
13 determining whether there is a reasonable prospect that the
14 borrower will be able to resume full mortgage payments, the
15 participating financial institution shall consider factors
16 including, but not necessarily limited to the following: (i) a
17 favorable work and credit history, (ii) the borrower's ability
18 to and history of paying the mortgage when employed, (iii) the
19 lack of an impediment or disability that prevents reemployment,
20 (iv) new education and training opportunities, (v) non-cash
21 benefits that may reduce household expenses, and (vi) other
22 debts.
23     For the purposes of this Section, "home loan" means a loan,
24 other than an open-end credit plan or a reverse mortgage
25 transaction, for which (i) the principal amount of the loan
26 does not exceed 50% of the conforming loan size limit for a
27 single-family dwelling as established from time to time by the
28 Federal National Mortgage Association, (ii) the borrower is a
29 natural person, (iii) the debt is incurred by the borrower
30 primarily for personal, family, or household purposes, and (iv)
31 the loan is secured by a mortgage or deed of trust on real
32 estate upon which there is located or there is to be located a
33 structure designed principally for the occupancy of no more
34 than 4 families and that is or will be occupied by the borrower
35 as the borrower's principal dwelling.
36     (d) If there is an agreement between the State Treasurer

 

 

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1 and an eligible institution that details the use of deposited
2 funds, the agreement may not require the gift of money, goods,
3 or services to a third party; this provision does not restrict
4 the eligible institution from contracting with third parties in
5 order to carry out the intent of the agreement or restrict the
6 State Treasurer from placing requirements upon third-party
7 contracts entered into by the eligible institution.
8 (Source: P.A. 92-482, eff. 8-23-01; 92-531, eff. 2-8-02;
9 92-625, eff. 7-11-02; 93-246, eff. 7-22-03.)
 
10     Section 99. Effective date. This Act takes effect upon
11 becoming law.