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92nd General Assembly

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Public Act 92-0625

HB4066 Enrolled                                LRB9213794JMcs

    AN ACT concerning the State Treasurer.

    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.
    (b-5)  The State Treasurer may, in his or her discretion,
accept a proposal from an eligible institution that  provides
for   a   reduced   rate  of  interest,  provided  that  such
institution agrees to expend an amount of money equal to  the
amount  of  the  reduction  for  the  preservation of Cahokia
Mounds.
    (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. 92-482, eff. 8-23-01.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.
    Passed in the General Assembly May 07, 2002.
    Approved July 11, 2002.
    Effective July 11, 2002.

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