Illinois General Assembly - Full Text of Public Act 094-0050
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Public Act 094-0050




Public Act 094-0050
HB1428 Enrolled LRB094 08916 BDD 39136 b

    AN ACT concerning property.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Mortgage Escrow Account Act is amended by
changing Sections 2 and 4 and by adding Section 15 as follows:
    (765 ILCS 910/2)  (from Ch. 17, par. 4902)
    Sec. 2. As used in this Act, unless the context requires
    (a) "Escrow Account" means any account established by the
mortgage lender in conjunction with a mortgage loan on a
residence, into which the borrower is required to make regular
periodic payments and out of which the lender pays the taxes on
the property covered by the mortgage.
    (b) "Borrower" means the person obligated under the
mortgage loan.
    (c) "Mortgage Lender" means any bank, savings bank, savings
and loan association, credit union, mortgage banker, building
and loan association or other institution, association,
partnership, corporation or person who extends the loan of
monies for the purpose of enabling another to purchase a
residence or who services the loan, including successors in
interest of the foregoing.
    (d) "Escrow-like Arrangement" means any arrangement the
intent of which is to serve the same purposes as an escrow
account but which does not require the formal establishment of
an account.
(Source: P.A. 79-625.)
    (765 ILCS 910/4)  (from Ch. 17, par. 4904)
    Sec. 4. On or after the effective date of this Act, each
mortgage lender in conjunction with the granting or servicing
of a mortgage on a single-family owner occupied residential
property, shall comply with the provisions of this Act.
(Source: P.A. 79-625.)
    (765 ILCS 910/15 new)
    Sec. 15. Notice of tax payments.
    (a) When any mortgage lender pays the property tax from an
escrow account, the mortgage lender must give the borrower
written notice of the following, within 45 business days after
the tax payment:
        (1) the date the taxes were paid;
        (2) the amount of taxes paid; and
        (3) the permanent index number, mortgage account
    number, address of the property, or other property
    description that is used for assessment and taxation
    purposes under the Property Tax Code.
    (b) The notice required in subsection (a) may be included
on or with other documents, notices, or statements provided to
the borrower. If more than one borrower is obligated on the
loan, only one borrower who is primarily liable on the loan
need be given notice. Notice may be delivered, mailed, or
transmitted by any usual means of communication.
    (c) Notwithstanding the requirements in subsection (a), a
mortgage lender that provides notice to a borrower in the
manner provided in subsection (b) of a means of communication
for the borrower to access the information set forth in
subsection (a) by telephone, facsimile, e-mail, Internet
access, or other means of communication, is deemed to be in
compliance with subsection (a).

Effective Date: 1/1/2006