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Rep. Karen A. Yarbrough
Filed: 4/7/2005
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09400HB1428ham003 |
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LRB094 08916 BDD 44560 a |
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| AMENDMENT TO HOUSE BILL 1428
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| AMENDMENT NO. ______. Amend House Bill 1428, AS AMENDED, by |
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| replacing the title with the following: |
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| "AN ACT concerning property."; and
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| by replacing everything after the enacting clause with the |
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| following:
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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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09400HB1428ham003 |
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LRB094 08916 BDD 44560 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 |
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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; |
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| (3) the installment that was paid; and
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| (4) 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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09400HB1428ham003 |
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LRB094 08916 BDD 44560 a |
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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).
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.".
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