(765 ILCS 415/1) (from Ch. 148, par. 81)
Sec. 1.
(a) The General Assembly finds:
(1) For a number of years, the State of Illinois has recognized a real
estate trust commonly known as a "land trust";
(2) This legislature has recognized the existence of land trusts and provided
for disclosure to appropriate parties of the owners of the beneficial interests
of said land trusts;
(3) Disclosure was required by this legislature in particular instances
because the legislature recognized that the direction and control of the
real estate was in the hands of the beneficiaries because the trustee acted
solely as holder of the legal title and was subject at all times to the
direction and control of the beneficiaries;
(4) Because the beneficiaries of land trusts retain the power of direction
and control of the trust property, such beneficiaries will frequently select
a financial institution as trustee simply because that institution will
be asked by the beneficiaries to extend credit to the trust or to the beneficiaries
secured by their interest in the trust;
(5) Recently, this accepted practice of a creditor lending money to itself
as trustee or to the beneficiaries upon the security of an interest in the
land trust of which it is trustee, has been scrutinized by the Illinois Supreme Court.
(b) It is the purpose of this Act to codify the accepted practice of a
creditor lending to the trustee of a land trust or the beneficiaries thereof
upon the security of trust property or their interest in the trust, even
though the creditor and the trustee are the same, and to foster and encourage
the availability of financing for owners and developers of real estate.
(Source: P.A. 82-891.)
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