HB4611 Engrossed LRB095 17891 DRJ 43971 b

1     AN ACT concerning housing.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Deposit of State Moneys Act is amended by
5 changing Section 7 as follows:
 
6     (15 ILCS 520/7)  (from Ch. 130, par. 26)
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
13 Treasurer shall seek to have at all times a total of not less
14 than 20 banks or savings and loan associations which are
15 approved as State depositaries for time deposits.
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.
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.
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
6 agrees to expend an amount of money equal to the amount of the
7 reduction for senior centers.
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
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
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.
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
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
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,
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
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
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
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
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.
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.
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.)
 
24     Section 99. Effective date. This Act takes effect upon
25 becoming law.