SB0537sam001 95TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 3/14/2007

09500SB0537sam001 LRB095 00150 AJO 33651 a

AMENDMENT TO SENATE BILL 537

AMENDMENT NO. ______. Amend Senate Bill 537 by replacing everything after the enacting clause with the following:

"Section 5. The Mortgage Escrow Account Act is amended by changing Sections 6 and 8 as follows:

(765 ILCS 910/6) (from Ch. 17, par. 4906)

Sec. 6. In lieu of the mortgage lender establishing an escrow account or an escrow-like arrangement, a borrower may (i) pledge an interest bearing time deposit with the mortgage lender in an amount sufficient to secure the payment of anticipated taxes or (ii) establish and maintain a savings account for the purpose of payment of the taxes when due on the residence covered by the mortgage.

(Source: P.A. 84-232.)

(765 ILCS 910/8) (from Ch. 17, par. 4908)

Sec. 8. If after terminating an escrow arrangement or establishing a savings account under the terms conditions of this Act, the borrower does not furnish to the lender sufficient evidence of payment of the taxes when due on the residence covered by the mortgage with respect to which the escrow arrangement was established, the lender, after taking reasonably good faith steps to verify nonpayment, may, within thirty days after such payment is due, establish or reestablish an escrow arrangement notwithstanding the provisions of this Act.

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