HB6645 95TH GENERAL ASSEMBLY

LRB095 20961 RCE 49968 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB6645

Introduced , by Rep. Brent Hassert - Ronald A. Wait - Renée Kosel - Rosemary Mulligan - Michael Tryon, et al.

SYNOPSIS AS INTRODUCED:

15 ILCS 520/16.4 new

Amends the Deposit of State Moneys Act. Requires the State Treasurer to implement and administer, by rule, a program requiring financial institutions to make mortgage loans on residential property in order for that financial institution to be eligible for investment of State funds in that financial institution. Requires the rules to contain provisions concerning not rejecting residential mortgage loans because of the location of the property, minimum assets to be invested in residential mortgage loans, minimum annual new residential mortgage loans, and reporting and auditing. Requires the Treasurer to report annually to the General Assembly. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Deposit of State Moneys Act is amended by adding Section 16.4 as follows:

(15 ILCS 520/16.4 new)

Sec. 16.4. Deposit of State funds with financial institutions making home loans.

(a) In addition to any other requirements of this Act, the State Treasurer, by rule, shall implement and administer a program requiring financial institutions to make mortgage loans on residential property in order for that financial institution to be eligible for investment of State funds in that financial institution.

(b) The rules shall include, but not be limited to, requiring financial institutions to meet all of the following conditions:

(1) The financial institution must not reject arbitrarily mortgage loans for residential properties because of the location of the property.

(2) At least a minimum percentage, as determined by rule, of the financial institution's total assets, including without limitation assets under management, must be invested in residential mortgage loans. Minimum percentages may vary based on the type of financial institution and its location.

(3) The total amount of new residential loans made by the financial institution in each calendar year must be at least a minimum percentage, as determined by rule, of the financial institution's total assets, including without limitation assets under management. Minimum percentages may vary based on the type of financial institution and its location.

(4) Reporting and auditing requirements that ensure that the financial institutions are complying with the provisions of this Section.

(c) By March 1, 2009 and each year thereafter, the State Treasurer shall report to the General Assembly concerning the Treasurer's administration of this Section during the previous calendar year.

(d) Nothing in this Section shall be construed as authorizing the State Treasurer to conduct an examination or investigation of a financial institution or to receive information that is not publicly available and the disclosure of which is otherwise prohibited by law.

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