HB3749 EngrossedLRB098 14652 NHT 49564 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Higher
5Education Employee Loan Act.
 
6    Section 5. Definitions. In this Act:
7    "Foundation" means the official fundraising and private
8gift-receiving organization for an institution.
9    "Institution" means a not-for-profit higher education
10institution, whether public or private, located in this State.
11    "Prevailing loan interest rate" means the prevailing rate
12of interest on loans as from time to time is publicly announced
13by the largest commercial banking institution located in this
14State.
 
15    Section 10. Limitations on loan making.
16    (a) If an institution or its foundation makes a loan to an
17employee or contractor of either the institution or the
18foundation, then the annual rate of interest must be equal to
19the prevailing loan interest rate in effect at the time the
20institution or foundation approves the loan. However, an
21institution or its foundation may not make a loan to an
22employee or contractor of either the institution or the

 

 

HB3749 Engrossed- 2 -LRB098 14652 NHT 49564 b

1foundation for the purpose of purchasing a non-primary
2residence.
3    (b) An institution or its foundation may not forgive a loan
4made to an employee or contractor of either the institution or
5the foundation.
 
6    Section 90. Enforcement. The Board of Higher Education
7shall adopt rules to enforce this Act, which may include the
8imposition of a civil penalty.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.