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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2176
Introduced 1/14/2004, by Terry Link SYNOPSIS AS INTRODUCED:
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815 ILCS 120/2 |
from Ch. 17, par. 852 |
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Amends the Illinois Fairness in Lending Act. Makes a technical change in a Section concerning the definitions.
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A BILL FOR
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SB2176 |
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LRB093 15938 RXD 41560 b |
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| AN ACT concerning business transactions.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Fairness in Lending Act is amended |
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| by changing Section 2 as follows:
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| (815 ILCS 120/2) (from Ch. 17, par. 852)
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| Sec. 2. As used in this Act:
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| (a) "Financial Institution" means any bank, credit union, |
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| insurance company,
mortgage banking company, savings bank, |
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| savings and loan
association, or other residential mortgage |
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| lender which operates
or has a place of business in this State.
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| (b) "Person" means any natural person.
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| (c) "Varying the terms of a loan" includes, but is not |
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| limited to the
following practices:
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| (1) Requiring a greater than average down payment than |
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| is usual for the
particular type of a loan involved.
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| (2) Requiring a shorter period of amortization than is |
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| usual for the
particular
type of loan involved.
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| (3) Charging a higher interest rate than is usual for |
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| the particular type
of loan involved.
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| (4) An underappraisal of real estate or other item of |
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| property offered as
security.
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| (d) "Equity stripping" means to assist a person in |
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| obtaining a loan secured
by the person's principal residence |
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| for the primary purpose of receiving fees
related to the |
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| financing when (i) the loan decreased the person's equity in |
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| the
principal residence and (ii) at the time the loan is made, |
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| the financial
institution does not reasonably believe that the |
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| person will be able to make
the scheduled payments to repay the |
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| loan. "Equity
stripping" does not include reverse mortgages as |
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| defined in Section 5a of the
Illinois Banking Act, Section 1-6a |
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| of the Illinois Savings and Loan Act of
1985, or
subsection (3) |
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