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90_HB0733
205 ILCS 5/5d from Ch. 17, par. 312.3
Amends the Illinois Banking Act. Adds a caption to a
Section of the Act relating to revolving credit loans.
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1 AN ACT to amend the Illinois Banking Act by changing
2 Section 5d.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Banking Act is amended by
6 changing Section 5d as follows:
7 (205 ILCS 5/5d) (from Ch. 17, par. 312.3)
8 Sec. 5d. Revolving credit loans. Notwithstanding any
9 other provision of this Act, a bank may engage in making
10 revolving credit loans secured by mortgages or deeds of trust
11 on real property or by security assignments of beneficial
12 interests in land trusts.
13 For purposes of this Section, "revolving credit", has the
14 meaning defined in Section 4.1 of "An Act in relation to the
15 rate of interest and other charges in connection with sales
16 on credit and the lending of money", approved May 24, 1879,
17 as amended.
18 Any mortgage or deed of trust given to secure a revolving
19 credit loan may, and when so expressed therein shall, secure
20 not only the existing indebtedness, but also such future
21 advances, whether such advances are obligatory or to be made
22 at the option of the lender, or otherwise, as are made within
23 twenty years from the date thereof, to the same extent as if
24 such future advances were made on the date of the execution
25 of such mortgage or deed of trust, although there may be no
26 advance made at the time of execution of such mortgage or
27 other instrument, and although there may be no indebtedness
28 outstanding at the time any advance is made. The lien of such
29 mortgage or deed of trust, as to third persons without actual
30 notice thereof, shall be valid as to all such indebtedness
31 and future advances from the time said mortgage or deed of
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1 trust is filed for record in the office of the Recorder of
2 Deeds or the Registrar of Titles of the county where the real
3 property described therein is located. The total amount of
4 indebtedness that may be so secured may increase or decrease
5 from time to time, but the total unpaid balance so secured at
6 any one time shall not exceed a maximum principal amount
7 which must be specified in such mortgage or deed of trust,
8 plus interest thereon, and any disbursements made for the
9 payment of taxes, special assessments, or insurance on said
10 real property, with interest on such disbursements.
11 Any such mortgage or deed of trust shall be valid and
12 have priority over all subsequent liens and encumbrances,
13 including statutory liens, except taxes and assessments
14 levied on said real property.
15 (Source: P.A. 83-1539; 83-1380.)