Public Act 103-0322
 
HB2717 EnrolledLRB103 30866 LNS 57379 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Mortgage Escrow Account Act is amended by
changing Sections 5 and 7 as follows:
 
    (765 ILCS 910/5)  (from Ch. 17, par. 4905)
    Sec. 5. (a) When the mortgage is reduced to 65% of its
original amount by payments of the borrower, timely made
according to the provisions of the loan agreement secured by
the mortgage, and the borrower is otherwise not in default on
the loan agreement, the mortgage lender must notify the
borrower that he may terminate such escrow account or that he
may elect to continue it until he requests a termination
thereof, or until the mortgage is paid in full, whichever
occurs first.
    (b) Notwithstanding the requirements in subsection (a), a
mortgage lender that complies with the escrow account
requirements in Title 12 CFR Part 1026, as amended, for a
mortgage loan that is a higher-priced mortgage loan, as
defined in Title 12 CFR Part 1026, as amended, is deemed to be
in compliance with subsection (a).
(Source: P.A. 79-625.)
 
    (765 ILCS 910/7)  (from Ch. 17, par. 4907)
    Sec. 7. The borrower shall not have the right to terminate
any such arrangement under Section 5 in conjunction with
mortgages insured, guaranteed, supplemented, or assisted by
the State of Illinois or the federal government that require
an escrow arrangement for their continuation. The borrower
shall not have the right to terminate any such arrangement
under Section 5 in conjunction with a mortgage loan that is a
higher-priced mortgage loan as defined in Title 12 CFR Part
1026, as amended, unless the borrower has met all of the
conditions for cancellation of an escrow account for a
higher-priced mortgage loan in Title 12 CFR Part 1026, as
amended.
(Source: P.A. 79-625.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.