State of Illinois
91st General Assembly
Legislation

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91_SB0357

 
                                               LRB9103206JSpc

 1        AN ACT concerning financial institutions.

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

 4        Section  5.   The  Illinois  Banking  Act  is  amended by
 5    changing Section 5d as follows:

 6        (205 ILCS 5/5d) (from Ch. 17, par. 312.3)
 7        Sec. 5d.  Revolving credit  loans.   Notwithstanding  any
 8    other  provision  of  this  Act,  a bank may engage in making
 9    revolving credit loans secured by mortgages or deeds of trust
10    on real property or by  security  assignments  of  beneficial
11    interests in land trusts.
12        For purposes of this Section, "revolving credit", has the
13    meaning  defined in Section 4.1 of "An Act in relation to the
14    rate of interest and other charges in connection  with  sales
15    on  credit  and the lending of money", approved May 24, 1879,
16    as amended.
17        Any mortgage or deed of trust given to secure a revolving
18    credit loan may, and when so expressed therein shall,  secure
19    not  only  the  existing  indebtedness,  but also such future
20    advances, whether such advances are obligatory or to be  made
21    at the option of the lender, or otherwise, as are made within
22    twenty  years from the date thereof, to the same extent as if
23    such future advances were made on the date of  the  execution
24    of  such  mortgage or deed of trust, although there may be no
25    advance made at the time of execution  of  such  mortgage  or
26    other  instrument,  and although there may be no indebtedness
27    outstanding at the time any advance is made. The lien of such
28    mortgage or deed of trust, as to third persons without actual
29    notice thereof, shall be valid as to  all  such  indebtedness
30    and  future  advances  from the time said mortgage or deed of
31    trust is filed for record in the office of  the  Recorder  of
 
                            -2-                LRB9103206JSpc
 1    Deeds or the Registrar of Titles of the county where the real
 2    property  described  therein is located.  The total amount of
 3    indebtedness that may be so secured may increase or  decrease
 4    from time to time, but the total unpaid balance so secured at
 5    any  one  time  shall  not  exceed a maximum principal amount
 6    which must be specified in such mortgage or  deed  of  trust,
 7    plus  interest  thereon,  and  any disbursements made for the
 8    payment of taxes, special assessments, or insurance  on  said
 9    real property, with interest on such disbursements.
10        Any  such  mortgage  or  deed of trust shall be valid and
11    have priority over all  subsequent  liens  and  encumbrances,
12    including  statutory  liens,  except  taxes  and  assessments
13    levied on said real property.
14    (Source: P.A. 83-1539; 83-1380.)

15        Section 10.  The Illinois Savings and Loan Act of 1985 is
16    amended by changing Section 1-1 as follows:

17        (205 ILCS 105/1-1) (from Ch. 17, par. 3301-1)
18        Sec.  1-1.   Short title. This Act shall be known and may
19    be cited as the "Illinois Savings and Loan Act of 1985".
20    (Source: P.A. 84-543.)

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