HB3749eng 98TH GENERAL ASSEMBLY

HB3749 Engrossed LRB098 14652 NHT 49564 b

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Higher Education Employee Loan Act.

Section 5. Definitions. In this Act:

"Foundation" means the official fundraising and private gift-receiving organization for an institution.

"Institution" means a not-for-profit higher education institution, whether public or private, located in this State.

"Prevailing loan interest rate" means the prevailing rate of interest on loans as from time to time is publicly announced by the largest commercial banking institution located in this State.

Section 10. Limitations on loan making.

(a) If an institution or its foundation makes a loan to an employee or contractor of either the institution or the foundation, then the annual rate of interest must be equal to the prevailing loan interest rate in effect at the time the institution or foundation approves the loan. However, an institution or its foundation may not make a loan to an employee or contractor of either the institution or the foundation for the purpose of purchasing a non-primary residence.

(b) An institution or its foundation may not forgive a loan made to an employee or contractor of either the institution or the foundation.

Section 90. Enforcement. The Board of Higher Education shall adopt rules to enforce this Act, which may include the imposition of a civil penalty.

Section 99. Effective date. This Act takes effect upon becoming law.