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92nd General Assembly

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Public Act 92-0482

HB2439 Enrolled                                LRB9205889REpc

    AN ACT concerning the use of State funds.

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

    Section 5.  The Deposit of State Moneys Act is amended by
changing Section 7 as follows:

    (15 ILCS 520/7) (from Ch. 130, par. 26)
    Sec. 7. (a) Proposals made  may  either  be  approved  or
rejected  by the State Treasurer.  A bank or savings and loan
association whose proposal is approved shall be  eligible  to
become  a  State depositary for the class or classes of funds
covered  by  its  proposal.  A  bank  or  savings  and   loan
association  whose  proposal  is  rejected  shall  not  be so
eligible. The State Treasurer shall seek to have at all times
a total of not  less  than  20  banks  or  savings  and  loan
associations  which  are  approved  as State depositaries for
time deposits.
    (b)  The State Treasurer may, in his discretion, accept a
proposal from an eligible institution which  provides  for  a
reduced  rate  of  interest  provided  that  such institution
documents  the  use  of   deposited   funds   for   community
development projects.
    (c)  The  State  Treasurer may, in his or her discretion,
accept a proposal from an eligible institution that  provides
for  interest earnings on deposits of State moneys to be held
by the institution in  a  separate  account  that  the  State
Treasurer  may  use to secure up to 10% of any (i) home loans
to  Illinois  citizens  purchasing  a  home  in  Illinois  in
situations where the institution would not offer the borrower
a  home  loan  under  the  institution's  prevailing   credit
standards without the incentive of a reduced rate of interest
on  deposits  of State moneys and (ii) existing home loans of
Illinois citizens who have failed to  make  payments  on  the
home  loan  as  a result of a temporary layoff or disability,
but who have resumed making payments on  the  home  loan  and
have  made  at  least  2 consecutive payments, when under the
institution's prevailing policies it would commence or pursue
foreclosure proceedings if it were not for the incentive of a
reduced rate of interest on deposits of State moneys.
    For the purposes of this Section,  "home  loan"  means  a
loan,  other  than  an  open-end  credit  plan  or  a reverse
mortgage transaction, for which (i) the principal  amount  of
the  loan  does  not  exceed  50% of the conforming loan size
limit for a single-family dwelling as established  from  time
to  time  by  the Federal National Mortgage Association, (ii)
the borrower is a natural person, (iii) the debt is  incurred
by  the borrower primarily for personal, family, or household
purposes, and (iv) the loan is secured by a mortgage or  deed
of  trust on real estate upon which there is located or there
is to be located a structure  designed  principally  for  the
occupancy  of  one  family and that is or will be occupied by
the borrower as the borrower's principal dwelling.
    (d)  If there is an agreement between the State Treasurer
and an eligible institution that details the use of deposited
funds, the agreement may  not  require  the  gift  of  money,
goods,  or services to a third party; this provision does not
restrict the eligible institution from contracting with third
parties in order to carry out the intent of the agreement  or
restrict  the  State Treasurer from placing requirements upon
third-party  contracts   entered   into   by   the   eligible
institution.
(Source: P.A. 89-350, eff. 8-17-95.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly May 30, 2001.
    Approved August 23, 2001.
    Effective August 23, 2001.

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