Rep. Karen A. Yarbrough
Filed: 3/23/2005
 
 

 




 

 		












09400HB1428ham002

LRB094 08916 BDD 43944 a






1

AMENDMENT TO HOUSE BILL 1428 




2
    AMENDMENT NO. ______. Amend House Bill 1428, AS AMENDED, by 
3
replacing the title with the following:
4
    "AN ACT concerning property."; and

 
5
by replacing everything after the enacting clause with the 
6
following:
 
7
    "Section 5. The Mortgage Escrow Account Act is amended  by 
8
changing Sections 2 and 4 and  by adding Section 15 as follows:
 



9
    (765 ILCS 910/2)  (from Ch. 17, par. 4902)



10
    Sec. 2. As used in this Act, unless the context requires 
11
otherwise: 

12
    (a) "Escrow Account" means any account established by the 
13
mortgage lender
in conjunction with a mortgage loan on a 
14
residence, into which the borrower
is required to make regular 
15
periodic payments and out of which the lender
pays the taxes on 
16
the property covered by the mortgage.

17
    (b) "Borrower" means the person obligated under the 
18
mortgage loan.

19
    (c) "Mortgage Lender" means any bank, savings bank, savings 
20
and loan association, credit union, mortgage banker,
building

21
and loan association or other institution, association, 
22
partnership, corporation
or person who extends the loan of 
23
monies for the purpose of enabling another
to purchase a 
 


 






09400HB1428ham002
- 2 -
LRB094 08916 BDD 43944 a




1
residence or who services the loan, including successors in 
2
interest of the foregoing.

3
    (d) "Escrow-like Arrangement" means any arrangement the 
4
intent of which
is to serve the same purposes as an escrow 
5
account but which does not require
the formal establishment of 
6
an account.

7
(Source: P.A. 79-625.)

 



8
    (765 ILCS 910/4)  (from Ch. 17, par. 4904)



9
    Sec. 4. On or after the effective date of this Act, each 
10
mortgage lender
in conjunction with the granting or servicing 
11
of a mortgage on a single-family owner
occupied residential 
12
property, shall comply with the provisions of this Act.

13
(Source: P.A. 79-625.)

 
14
    (765 ILCS 910/15  new)
15
    Sec. 15. Notice of tax payments.
16
    (a) When any mortgage
lender pays the property tax from an 
17
escrow account, the mortgage lender must give the borrower 
18
written notice of the following, within 45 business days after 
19
the tax payment:
20
        (1) the date the taxes were paid;
21
        (2) the amount of taxes paid; and
22
        (3) the permanent index number used for assessment and 
23
    taxation purposes under
the Property Tax Code.
24
    (b) The notice required in subsection (a) may be included 
25
on or with other documents, notices, or statements provided to 
26
the borrower. If more than one borrower is obligated on the 
27
loan, only one borrower who is primarily liable on the loan 
28
need be given notice. Notice may be delivered, mailed, or 
29
transmitted by any usual means of communication.
30
    (c) Notwithstanding the requirements in subsection (a), a 
31
mortgage lender that provides notice to a borrower in the 
32
manner provided in subsection (b) of a means of
communication 
 


 






09400HB1428ham002
- 3 -
LRB094 08916 BDD 43944 a




1
for the borrower to access the
information set forth in 
2
subsection (a) by telephone, facsimile, e-mail, Internet 
3
access, or other means of communication, is deemed to be in

4
compliance with subsection (a).
 

5
    Section 99. Effective date. This Act takes effect upon 
6
becoming law.".