(305 ILCS 5/11-3) (from Ch. 23, par. 11-3)
Sec. 11-3. Assignment and attachment of aid prohibited. Except as provided
below in this
Section and in Section 11-3.3, all financial aid given under
Articles III, IV, V, and VI and money payments for child care
services
provided by a child care provider under Articles
IX
and IXA shall not be subject to
assignment,
sale,
attachment, garnishment, or otherwise. Provided, however, that a medical
vendor may use his right to receive vendor payments as collateral for loans
from financial institutions so long as such arrangements do not constitute
any activity prohibited under Section 1902(a)(32) of the Social Security
Act and regulations promulgated thereunder, or any other applicable laws or
regulations. Provided further, however, that a medical or other vendor or a
service provider may assign, reassign, sell, pledge or grant a security
interest in any such financial aid, vendor payments or money payments or
grants which he has a right to receive to the Illinois
Finance Authority, in connection with any financing program undertaken by
the Illinois Finance Authority. Each Authority may utilize a
trustee or agent to accept, accomplish, effectuate or realize upon any such
assignment, reassignment, sale, pledge or grant on that Authority's behalf.
Provided further, however, that nothing herein shall prevent the Illinois
Department from collecting any assessment, fee, interest or penalty due under
Article V-A, V-B, V-C, or V-E by withholding financial aid as payment of such
assessment, fee, interest, or penalty. Any alienation in contravention of this
statute does not diminish and does not affect the validity, legality or
enforceability of any underlying obligations for which such alienation may
have been made as collateral between the parties to the alienation. This
amendatory Act shall be retroactive in application and shall pertain to
obligations existing prior to its enactment.
(Source: P.A. 95-331, eff. 8-21-07.)
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