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Public Act 92-0531
SB1269 Enrolled LRB9201663TAtm
AN ACT concerning the State Treasurer.
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
changing Section 7 as follows:
(15 ILCS 520/7) (from Ch. 130, par. 26)
Sec. 7. (a) Proposals made may either be approved or
rejected by the State Treasurer. A bank or savings and loan
association whose proposal is approved shall be eligible to
become a State depositary for the class or classes of funds
covered by its proposal. A bank or savings and loan
association whose proposal is rejected shall not be so
eligible. The State Treasurer shall seek to have at all times
a total of not less than 20 banks or savings and loan
associations which are approved as State depositaries for
time deposits.
(b) The State Treasurer may, in his discretion, accept a
proposal from an eligible institution which provides for a
reduced rate of interest provided that such institution
documents the use of deposited funds for community
development projects.
(c) The State Treasurer may, in his or her discretion,
accept a proposal from an eligible institution that provides
for interest earnings on deposits of State moneys to be held
by the institution in a separate account that the State
Treasurer may use to secure up to 10% of any (i) home loans
to Illinois citizens purchasing a home in Illinois in
situations where the participating financial institution
would not offer the borrower a home loan under the
institution's prevailing credit standards without the
incentive of a reduced rate of interest on deposits of State
moneys, and (ii) existing home loans of Illinois citizens who
have failed to make payments on a the home loan as a result
of a financial hardship due to circumstances beyond the
control of the borrower where there is a reasonable prospect
that the borrower will be able to resume full mortgage
payments, and (iii) loans in amounts that do not exceed the
amount of arrearage on a mortgage and that are extended to
enable a borrower to become current on his or her mortgage
obligation.
The following factors shall be considered by the
participating financial institution to determine whether the
financial hardship is due to circumstances beyond the control
of the borrower: (i) loss, reduction, or delay in the receipt
of income because of the death or disability of a person who
contributed to the household income, (ii) expenses actually
incurred related to the uninsured damage or costly repairs to
the mortgaged premises affecting its habitability, (iii)
expenses related to the death or illness in the borrower's
household or of family members living outside the household
that reduce the amount of household income, (iv) loss of
income or a substantial increase in total housing expenses
because of divorce, abandonment, separation from a spouse, or
failure to support a spouse or child, (v) unemployment or
underemployment, (vi) loss, reduction, or delay in the
receipt of federal, State, or other government benefits, and
(vii) participation by the homeowner in a recognized labor
action such as a strike. In determining whether there is a
reasonable prospect that the borrower will be able to resume
full mortgage payments, the participating financial
institution shall consider factors including, but not
necessarily limited to the following: (i) a favorable work
and credit history, (ii) the borrower's ability to and
history of paying the mortgage when employed, (iii) the lack
of an impediment or disability that prevents reemployment,
(iv) new education and training opportunities, (v) non-cash
benefits that may reduce household expenses, and (vi) other
debts. temporary layoff or disability, but who have resumed
making payments on the home loan and have made at least 2
consecutive payments, when under the institution's prevailing
policies it would commence or pursue foreclosure proceedings
if it were not for the incentive of a reduced rate of
interest on deposits of State moneys.
For the purposes of this Section, "home loan" means a
loan, other than an open-end credit plan or a reverse
mortgage transaction, for which (i) the principal amount of
the loan does not exceed 50% of the conforming loan size
limit for a single-family dwelling as established from time
to time by the Federal National Mortgage Association, (ii)
the borrower is a natural person, (iii) the debt is incurred
by the borrower primarily for personal, family, or household
purposes, and (iv) the loan is secured by a mortgage or deed
of trust on real estate upon which there is located or there
is to be located a structure designed principally for the
occupancy of no more than 4 families one family and that is
or will be occupied by the borrower as the borrower's
principal dwelling.
(d) If there is an agreement between the State Treasurer
and an eligible institution that details the use of deposited
funds, the agreement may not require the gift of money,
goods, or services to a third party; this provision does not
restrict the eligible institution from contracting with third
parties in order to carry out the intent of the agreement or
restrict the State Treasurer from placing requirements upon
third-party contracts entered into by the eligible
institution.
(Source: P.A. 92-482, eff. 8-23-01.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly November 29, 2001.
Approved February 08, 2002.
Effective February 08, 2002.
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