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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4010
Introduced 1/14/2004, by Thomas Holbrook SYNOPSIS AS INTRODUCED:
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15 ILCS 520/7 |
from Ch. 130, par. 26 |
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Amends the Deposit of State Moneys Act. Provides that the Treasurer may accept a proposal from an eligible institution that provides a reduced rate of interest if the institution agrees to expend an amount equal to the reduction for the delivery of credit union products and services and financial literacy programs to low income persons or economically disadvantaged areas of the State. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB4010 |
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LRB093 17508 RCE 43177 b |
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| AN ACT concerning finance.
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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 Deposit of State Moneys Act is amended by |
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| changing Section 7 as follows:
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| (15 ILCS 520/7) (from Ch. 130, par. 26)
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| Sec. 7. (a) Proposals made may either be approved or |
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| rejected by the
State Treasurer. A bank or savings and loan |
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| association whose proposal
is approved shall be eligible to |
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| become a State depositary for the class or
classes of funds |
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| covered by its proposal. A bank or savings and loan
association |
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| whose proposal is rejected shall not be so eligible.
The State
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| Treasurer shall seek to have at all times a total of not less
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| than 20 banks or savings and loan associations which are |
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| approved as
State depositaries for time deposits.
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| (b) The State Treasurer may, in his
discretion, accept a |
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| proposal from an eligible institution which provides
for a |
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| reduced rate of interest provided that such institution |
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| documents the
use of deposited funds for community development |
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| projects.
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| (b-5) The State Treasurer may, in his or her discretion, |
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| accept a proposal
from an eligible institution that provides |
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| for a reduced rate of interest,
provided that such institution |
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| agrees to expend an amount of money equal to
the amount of the |
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| reduction for the preservation of Cahokia Mounds.
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| (b-10) The State Treasurer may, in his or her discretion, |
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| accept a
proposal
from an
eligible institution that provides |
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| for a reduced rate of interest, provided
that the institution
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| agrees to expend an amount of money equal to the amount of the |
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| reduction for
senior
centers.
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| (b-15) The State Treasurer may, in his or her discretion, |
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| accept a proposal from an eligible institution that provides |
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HB4010 |
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LRB093 17508 RCE 43177 b |
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| for a reduced rate of interest, provided that the institution |
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| agrees to expend an amount of money equal to the amount of the |
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| reduction for the delivery of credit union products and |
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| services and financial literacy programs to low income persons |
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| or economically disadvantaged areas of the State.
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| (c) The State Treasurer may, in his or her discretion, |
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| accept a proposal
from an eligible institution that provides |
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| for interest earnings on deposits
of State moneys to be held by |
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| the institution in a separate account that the
State Treasurer |
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| may use to secure up to 10% of any (i) home loans to Illinois
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| citizens purchasing a home in Illinois in situations where the |
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| participating
financial institution would not offer the |
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| borrower a home loan under the
institution's prevailing credit |
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| standards without the incentive of a reduced
rate of interest |
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| on deposits of State moneys, (ii) existing home loans of
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| Illinois citizens who have failed to make payments on a home |
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| loan as a result
of a financial hardship due to circumstances |
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| beyond the control of the borrower
where there is a reasonable |
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| prospect that the borrower will be able to resume
full mortgage |
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| payments, and (iii) loans in amounts that do not exceed the
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| amount of arrearage on a mortgage and that are extended to |
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| enable a borrower
to become current on his or her mortgage |
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| obligation.
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| The following factors shall be considered by the |
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| participating financial
institution to determine whether the |
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| financial hardship is due to circumstances
beyond the control |
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| of the borrower: (i) loss, reduction, or delay in the
receipt |
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| of income because of the death or disability of a person who
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| contributed to the household income, (ii) expenses actually |
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| incurred related to
the uninsured damage or costly repairs to |
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| the mortgaged premises affecting its
habitability, (iii) |
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| expenses related to the death or illness in the borrower's
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| household or of family members living outside the household |
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| that reduce the
amount of household income, (iv) loss of income |
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| or a substantial increase in
total housing expenses because of |
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| divorce, abandonment, separation from a
spouse, or failure to |
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HB4010 |
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LRB093 17508 RCE 43177 b |
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| support a spouse or child, (v) unemployment or
underemployment, |
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| (vi) loss, reduction, or delay in the receipt of federal,
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| State, or other government benefits, and (vii) participation by |
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| the homeowner
in a recognized labor action such as a strike. In |
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| determining whether there is
a reasonable prospect that the |
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| borrower will be able to resume full mortgage
payments, the
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| participating financial institution shall consider factors |
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| including, but not
necessarily limited to the following: (i) a |
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| favorable work and credit history,
(ii) the borrower's ability |
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| to and history of paying the mortgage when
employed, (iii) the |
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| lack of an impediment or disability that prevents
reemployment, |
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| (iv) new education and training opportunities, (v) non-cash
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| benefits that may reduce household expenses, and (vi) other |
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| debts.
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| For the purposes of this Section, "home loan" means a loan, |
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| other than an
open-end credit plan or a reverse mortgage |
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| transaction, for which (i) the
principal amount of the loan |
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| does not exceed 50% of the conforming loan size
limit for a |
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| single-family dwelling as established from time to time by the
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| Federal National Mortgage Association, (ii) the borrower is a |
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| natural person,
(iii) the debt is incurred by the borrower |
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| primarily for personal, family, or
household purposes, and (iv) |
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| the loan is secured by a mortgage or deed of trust
on real |
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| estate upon which there is located or there is to be located a
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| structure designed principally for the occupancy of no more |
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| than 4
families and that is or
will be occupied by the borrower |
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| as the borrower's principal dwelling.
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| (d) If there is an
agreement between the State Treasurer |
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| and an eligible institution that details
the use of deposited |
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| funds, the agreement may not require the gift of money,
goods, |
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| or services to a third party; this provision does not restrict |
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| the
eligible institution from contracting with third parties in |
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| order to carry out
the intent of the agreement or restrict the |
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| State Treasurer from placing
requirements upon third-party |
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| contracts entered into by the eligible
institution.
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| (Source: P.A. 92-482, eff. 8-23-01; 92-531, eff. 2-8-02; |