SB0537 95TH GENERAL ASSEMBLY

LRB095 00150 AJO 20150 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0537

Introduced 2/8/2007, by Sen. John J. Cullerton

SYNOPSIS AS INTRODUCED:

765 ILCS 910/4.5 new

Amends the Mortgage Escrow Account Act. Provides that if any mortgage lender requires that a borrower maintain an escrow account, the mortgage lender must pay the borrower interest on the monies that the borrower paid into the escrow account for property tax purposes. Provides that the mortgage lender shall pay interest at the rate of 3% per annum or the lender's passbook savings account rate, whichever is greater, calculate the interest monthly, and pay the interest at least quarterly.

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning mortgages.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Mortgage Escrow Account Act is amended by adding Section 4.5 as follows:

(765 ILCS 910/4.5 new)

Sec. 4.5. If any mortgage lender requires that a borrower maintain an escrow account, the mortgage lender must pay the borrower interest on the monies that the borrower paid into the escrow account for property tax purposes. The mortgage lender shall pay interest at the rate of 3% per annum or the lender's passbook savings account rate, whichever is greater, calculate the interest monthly, and pay the interest at least quarterly.