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Public Act 095-0834


 

Public Act 0834 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0834
 
HB4611 Enrolled LRB095 17891 DRJ 43971 b

    AN ACT concerning housing.
 
    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.
    (b-5) The State Treasurer may, in his or her discretion,
accept a proposal from an eligible institution that provides
for a reduced rate of interest, provided that such institution
agrees to expend an amount of money equal to the amount of the
reduction for the preservation of Cahokia Mounds.
    (b-10) The State Treasurer may, in his or her discretion,
accept a proposal from an eligible institution that provides
for a reduced rate of interest, provided that the institution
agrees to expend an amount of money equal to the amount of the
reduction for senior centers.
    (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 or refinancing 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, (ii) existing
home loans of Illinois citizens who have failed to make
payments on a 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.
    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 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; 92-531, eff. 2-8-02;
92-625, eff. 7-11-02; 93-246, eff. 7-22-03.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/15/2008