(65 ILCS 95/3)
(from Ch. 24, par. 1603)
For the purposes of this Act:
(a) "Bona fide offer" means an offer made in good faith and for a
valuable consideration to purchase a qualified residence at a price that in the opinion of the governing commission is reasonable given current market conditions.
(b) "Certificate of participation" means the duly notarized document of
membership in a program, signed by the qualified applicant and by an
authorized representative of the governing commission, which specifies the
location and description of the guaranteed residence, its guaranteed value,
the registration date, and which has attached a program appraisal for
the guaranteed residence.
(c) "Community organization" means a not-for-profit organization which
has been registered with this State for at least 5 years as a
not-for-profit organization, which qualifies for tax exempt status
under Section 501(c)(3) or 501(c)(4) of the United States Internal Revenue Code of 1986, as now or
hereafter amended, which continuously maintains an office or business
location within the territory of a program together with a current listed
telephone number, and whose members reside within the territory of a program.
(d) "Eligible applicant" means a natural person who is the owner of a
qualified residence within the territory of a program who continuously
occupies or has a family member who occupies such qualified residence as
the principal place of residence.
(e) "Family member" means a spouse, child, stepchild, parent,
grandparent, brother, sister, or any such relations of the
spouse of the member.
(f) "Governing commission" means the 9 member (or 18 member in the
case of a merged program) governing body which is authorized by voter
approval of the creation of a home equity program (or merger of programs) as
provided in this Act and which is appointed by the mayor of the
municipality in which the program has been approved with the approval of
the city council, 7 (or 14 in the case of a merged program) of whom shall be
appointed from a list or lists of nominees submitted by a community
organization or community organizations as defined in this Act.
(g) "Gross selling value" means the total consideration to be paid for
the purchase of a guaranteed residence, and shall include
any amount that the buyer or prospective buyer agrees to assume on behalf
of a member, including broker commissions, points, legal fees,
personal financing, or other items of value involved in the sale.
(h) "Guarantee fund" means the funds collected under the provisions of
this Act for the purpose of guaranteeing the property values of members
within the territory of a program.
(i) "Guaranteed residence" means a qualified residence for which a
certificate of participation has been issued, which is occupied
continuously as the place of legal residence by the member or a family
member, which is described in the certificate of participation, and which
is entitled to coverage under this Act.
(j) "Guaranteed value" means the appraised valuation based upon a
standard of current fair market value as of the registration date on the
qualified residence as determined by a program appraiser pursuant to
accepted professional appraisal standards and which is authorized by the
commission for the registration date. The guaranteed value shall be used
solely by the commission for the purpose of administering the program and
shall remain confidential.
(k) "Member" means the owner of a guaranteed residence.
(l) "Owner" means a natural person who is the legal
titleholder or who is the
beneficiary of a trust which is the legal titleholder.
(m) "Physical perils" means physical occurrences such as, but not limited
to, fire, windstorm, hail, nuclear explosion or seepage, war,
insurrection, wear and tear, cracking, settling, vermin,
rodents, insects, vandalism, pollution or contamination, and all such
related occurrences or acts of God.
(n) "Program" means the guaranteed home equity program governed by a
specific home equity commission.
(o) "Program appraisal" means a real estate appraisal conducted by a
program appraiser for the purpose of establishing the guaranteed value of a
qualified residence under a program and providing a general description of
the qualified residence. The program appraisal shall be used solely by the
governing commission for the purpose of administering the program and shall
(p) "Program appraiser" means a real estate appraiser who meets the
professional standards established by the American Institute of Real
Estate Appraisers (AIREA), the National Association of Independent Fee
Appraisers (NAIFA), the National Society of Real Estate Appraisers (NSREA)
or the American Society of Appraisers (ASA) and
whose name is submitted to the governing
commission by the appraiser to conduct program appraisals
under the provisions of a program.
(q) "Program guidelines" means those policies, rules, regulations, and
bylaws established from time to time by the governing commission to
explain, clarify, or modify the program in order to fulfill its goals
(r) "Qualified residence" means a building: (1) located in the
territory of a program having at least one, but not more than 6, dwelling
units; (2) classified by county ordinance as residential and assessed for
property tax purposes; and (3) with at least one dwelling unit continuously
occupied as the principal legal residence of a member or family member.
(s) "Registration date" means the date of receipt by the governing
commission of the registration fee and a completed
application of a qualified applicant for participation in a program.
(t) "Registration fee" means the fee which is established
by the governing commission to defray the cost of a program appraisal on a
(Source: P.A. 95-1047, eff. 4-6-09