Illinois General Assembly - Bill Status for SB1784

Amends the Deposit of State Moneys Act, the Public Funds Deposit Act, the State Officers and Employees Money Disposition Act, and the Public Funds Investment Act. Provides that a treasurer or custodian of public funds may accept, as security for public funds deposited into a bank (i) certain securities authorized by certain provisions of the Deposit of State Moneys Act, the Public Funds Investment Act, or the Public Funds Deposit Act, and (ii) certificates issued by a financial institution with assets of $15,000,000 (instead of $30,000,000) or more. Authorizes a public agency, when depositing public funds, to enter into an agreement with financial institutions requiring that any non-insured funds be collateralized by certain classes of securities. Makes other changes. Effective immediately.

Deletes everything. Creates the High Risk Home Loan Act to protect borrowers who enter into high risk home loans from abuses that occur in the credit marketplace. Provides guidelines for lenders in the transferring, dealing in, offering, or making of a high risk home loan. Provides for enforcement by the Department of Financial Institutions and the Office of Banks and Real Estate. Preempts home rule. Amends the Deposit of State Moneys Act, the Public Funds Deposit Act, the State Officers and Employees Money Disposition Act, and the Public Funds Investment Act. Provides that a treasurer or custodian of public funds may accept, as security for public funds deposited into a bank (i) certain securities and (ii) certificates issued by a financial institution with assets of $15,000,000 (instead of $30,000,000) or more. Authorizes a public agency, when depositing public funds, to enter into an agreement with financial institutions requiring that any non-insured funds be collateralized by certain classes of securities. Makes other changes. Amends the Illinois Banking Act, the Savings Bank Act, and the Limited Liability Company Act to allow banks and savings banks to operate as limited liability companies. In the Illinois Banking Act, provides that a State bank may amend its charter for the purpose of authorizing its board of directors to issue preferred stock; to increase, decrease, or change the par value of shares of its preferred stock; to increase, decrease, or change the preferences, qualifications, limitations, restrictions, or special or relative rights of its preferred stock, provided that the bank's capital is not diminished to the prejudice of the bank's creditors. Amends the Residential Mortgage License Act of 1987. Provides penalties for licensees who violate the averments accompanying a license or license-renewal application. Provides that applications for a renewal of a license must be received by the Commissioner of Banks and Real Estate 60 (instead of 45) days before the renewal date. Requires that annual audit reports be filed with the Commissioner within 90 days of the end of a licensee's fiscal year (instead of filed at the time of the annual renewal payment). Increases the net-worth requirement of licensees. Increases the maximum fine that may be imposed against a licensee for a violation of certain Sections of the Act from $10,000 to $25,000 for each violation. Requires loan originators to register with the Commissioner. Amends the Illinois Fairness in Lending Act. Prohibits equity stripping and loan flipping. Effective January 1, 2004.

In the High Risk Home Loan Act, provides that the term "lender" does not include purchasers, assignees, or holders of high risk home loans. Sets forth restrictions on prepayment penalties for high risk home loans. Provides that borrowers may waive participation in the Mortgage Awareness Program. Makes changes concerning the liability of subsequent holders of high risk home loans. Deletes the home rule preemption. Makes other changes. In the Residential Mortgage License Act of 1987, deletes certain persons or entities as "exempt person or entity" that have a physical presence in Illinois. In the Illinois Fairness in Lending Act, makes a change in the definition of "equity stripping". Deletes the effective date.

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