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1 | AN ACT concerning housing.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Deposit of State Moneys Act is amended by | ||||||
5 | changing Section 7 as follows:
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6 | (15 ILCS 520/7) (from Ch. 130, par. 26)
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7 | Sec. 7. (a) Proposals made may either be approved or | ||||||
8 | rejected by the
State Treasurer. A bank or savings and loan | ||||||
9 | association whose proposal
is approved shall be eligible to | ||||||
10 | become a State depositary for the class or
classes of funds | ||||||
11 | covered by its proposal. A bank or savings and loan
association | ||||||
12 | whose proposal is rejected shall not be so eligible.
The State
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13 | Treasurer shall seek to have at all times a total of not less
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14 | than 20 banks or savings and loan associations which are | ||||||
15 | approved as
State depositaries for time deposits.
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16 | (b) The State Treasurer may, in his
discretion, accept a | ||||||
17 | proposal from an eligible institution which provides
for a | ||||||
18 | reduced rate of interest provided that such institution | ||||||
19 | documents the
use of deposited funds for community development | ||||||
20 | projects.
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21 | (b-5) The State Treasurer may, in his or her discretion, | ||||||
22 | accept a proposal
from an eligible institution that provides | ||||||
23 | for a reduced rate of interest,
provided that such institution |
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1 | agrees to expend an amount of money equal to
the amount of the | ||||||
2 | reduction for the preservation of Cahokia Mounds.
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3 | (b-10) The State Treasurer may, in his or her discretion, | ||||||
4 | accept a
proposal
from an
eligible institution that provides | ||||||
5 | for a reduced rate of interest, provided
that the institution
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6 | agrees to expend an amount of money equal to the amount of the | ||||||
7 | reduction for
senior
centers.
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8 | (c) The State Treasurer may, in his or her discretion, | ||||||
9 | accept a proposal
from an eligible institution that provides | ||||||
10 | for interest earnings on deposits
of State moneys to be held by | ||||||
11 | the institution in a separate account that the
State Treasurer | ||||||
12 | may use to secure up to 10% of any (i) home loans to Illinois
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13 | citizens purchasing or refinancing a home in Illinois in | ||||||
14 | situations where the participating
financial institution would | ||||||
15 | not offer the borrower a home loan under the
institution's | ||||||
16 | prevailing credit standards without the incentive of a reduced
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17 | rate of interest on deposits of State moneys, (ii) existing | ||||||
18 | home loans of
Illinois citizens who have failed to make | ||||||
19 | payments on a home loan as a result
of a financial hardship due | ||||||
20 | to circumstances beyond the control of the borrower
where there | ||||||
21 | is a reasonable prospect that the borrower will be able to | ||||||
22 | resume
full mortgage payments, and (iii) loans in amounts that | ||||||
23 | do not exceed the
amount of arrearage on a mortgage and that | ||||||
24 | are extended to enable a borrower
to become current on his or | ||||||
25 | her mortgage obligation.
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26 | The following factors shall be considered by the |
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1 | participating financial
institution to determine whether the | ||||||
2 | financial hardship is due to circumstances
beyond the control | ||||||
3 | of the borrower: (i) loss, reduction, or delay in the
receipt | ||||||
4 | of income because of the death or disability of a person who
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5 | contributed to the household income, (ii) expenses actually | ||||||
6 | incurred related to
the uninsured damage or costly repairs to | ||||||
7 | the mortgaged premises affecting its
habitability, (iii) | ||||||
8 | expenses related to the death or illness in the borrower's
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9 | household or of family members living outside the household | ||||||
10 | that reduce the
amount of household income, (iv) loss of income | ||||||
11 | or a substantial increase in
total housing expenses because of | ||||||
12 | divorce, abandonment, separation from a
spouse, or failure to | ||||||
13 | support a spouse or child, (v) unemployment or
underemployment, | ||||||
14 | (vi) loss, reduction, or delay in the receipt of federal,
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15 | State, or other government benefits, and (vii) participation by | ||||||
16 | the homeowner
in a recognized labor action such as a strike. In | ||||||
17 | determining whether there is
a reasonable prospect that the | ||||||
18 | borrower will be able to resume full mortgage
payments, the
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19 | participating financial institution shall consider factors | ||||||
20 | including, but not
necessarily limited to the following: (i) a | ||||||
21 | favorable work and credit history,
(ii) the borrower's ability | ||||||
22 | to and history of paying the mortgage when
employed, (iii) the | ||||||
23 | lack of an impediment or disability that prevents
reemployment, | ||||||
24 | (iv) new education and training opportunities, (v) non-cash
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25 | benefits that may reduce household expenses, and (vi) other | ||||||
26 | debts.
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1 | For the purposes of this Section, "home loan" means a loan, | ||||||
2 | other than an
open-end credit plan or a reverse mortgage | ||||||
3 | transaction, for which (i) the
principal amount of the loan | ||||||
4 | does not exceed 50% of the conforming loan size
limit for a | ||||||
5 | single-family dwelling as established from time to time by the
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6 | Federal National Mortgage Association, (ii) the borrower is a | ||||||
7 | natural person,
(iii) the debt is incurred by the borrower | ||||||
8 | primarily for personal, family, or
household purposes, and (iv) | ||||||
9 | the loan is secured by a mortgage or deed of trust
on real | ||||||
10 | estate upon which there is located or there is to be located a
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11 | structure designed principally for the occupancy of no more | ||||||
12 | than 4
families and that is or
will be occupied by the borrower | ||||||
13 | as the borrower's principal dwelling.
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14 | (d) If there is an
agreement between the State Treasurer | ||||||
15 | and an eligible institution that details
the use of deposited | ||||||
16 | funds, the agreement may not require the gift of money,
goods, | ||||||
17 | or services to a third party; this provision does not restrict | ||||||
18 | the
eligible institution from contracting with third parties in | ||||||
19 | order to carry out
the intent of the agreement or restrict the | ||||||
20 | State Treasurer from placing
requirements upon third-party | ||||||
21 | contracts entered into by the eligible
institution.
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22 | (Source: P.A. 92-482, eff. 8-23-01; 92-531, eff. 2-8-02; | ||||||
23 | 92-625, eff.
7-11-02; 93-246, eff. 7-22-03.)
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
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