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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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