HB1428 Engrossed

LRB094 08916 BDD 39136 b






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    AN ACT concerning property.

 
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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 Mortgage Escrow Account Act is amended  by 
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changing Sections 2 and 4 and  by adding Section 15 as follows:
 



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    (765 ILCS 910/2)  (from Ch. 17, par. 4902)



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    Sec. 2. As used in this Act, unless the context requires 
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otherwise: 

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    (a) "Escrow Account" means any account established by the 
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mortgage lender
in conjunction with a mortgage loan on a 
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residence, into which the borrower
is required to make regular 
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periodic payments and out of which the lender
pays the taxes on 
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the property covered by the mortgage.

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    (b) "Borrower" means the person obligated under the 
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mortgage loan.

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    (c) "Mortgage Lender" means any bank, savings bank, savings 
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and loan association, credit union, mortgage banker,
building

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and loan association or other institution, association, 
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partnership, corporation
or person who extends the loan of 
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monies for the purpose of enabling another
to purchase a 
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residence or who services the loan, including successors in 
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interest of the foregoing.

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    (d) "Escrow-like Arrangement" means any arrangement the 
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intent of which
is to serve the same purposes as an escrow 
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account but which does not require
the formal establishment of 
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an account.

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(Source: P.A. 79-625.)

 



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    (765 ILCS 910/4)  (from Ch. 17, par. 4904)



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    Sec. 4. On or after the effective date of this Act, each 
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mortgage lender
in conjunction with the granting or servicing 
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of a mortgage on a single-family owner
occupied residential 
 


 






HB1428 Engrossed
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LRB094 08916 BDD 39136 b




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property, shall comply with the provisions of this Act.

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(Source: P.A. 79-625.)

 
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    (765 ILCS 910/15  new)
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    Sec. 15. Notice of tax payments.
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    (a) When any mortgage
lender pays the property tax from an 
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escrow account, the mortgage lender must give the borrower 
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written notice of the following, within 45 business days after 
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the tax payment:
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        (1) the date the taxes were paid;
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        (2) the amount of taxes paid; and
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        (3) the permanent index number, mortgage account 
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    number, address of the property, or other property 
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    description that is used for assessment and taxation 
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    purposes under
the Property Tax Code.
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    (b) The notice required in subsection (a) may be included 
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on or with other documents, notices, or statements provided to 
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the borrower. If more than one borrower is obligated on the 
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loan, only one borrower who is primarily liable on the loan 
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need be given notice. Notice may be delivered, mailed, or 
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transmitted by any usual means of communication.
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    (c) Notwithstanding the requirements in subsection (a), a 
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mortgage lender that provides notice to a borrower in the 
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manner provided in subsection (b) of a means of
communication 
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for the borrower to access the
information set forth in 
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subsection (a) by telephone, facsimile, e-mail, Internet 
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access, or other means of communication, is deemed to be in

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compliance with subsection (a).