Public Act 095-0834
 		





HB4611 Enrolled
LRB095 17891 DRJ 43971 b






    AN ACT concerning housing.

 
    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.

    (b-10) 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 the institution

agrees to expend an amount of money equal to the amount of the 
reduction for
senior
centers.

    (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 or refinancing a home in Illinois in 
situations where the participating
financial 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, (ii) existing 
home loans of
Illinois citizens who have failed to make 
payments on a home loan as a result
of a financial hardship due 
to circumstances beyond the control of the borrower
where there 
is a reasonable prospect that the borrower will be able to 
resume
full mortgage payments, and (iii) loans in amounts that 
do not exceed the
amount of arrearage on a mortgage and that 
are extended to enable a borrower
to become current on his or 
her mortgage obligation.

    The following factors shall be considered by the 
participating financial
institution to determine whether the 
financial hardship is due to circumstances
beyond the control 
of the borrower: (i) loss, reduction, or delay in the
receipt 
of income because of the death or disability of a person who

contributed to the household income, (ii) expenses actually 
incurred related to
the uninsured damage or costly repairs to 
the mortgaged premises affecting its
habitability, (iii) 
expenses related to the death or illness in the borrower's

household or of family members living outside the household 
that reduce the
amount of household income, (iv) loss of income 
or a substantial increase in
total housing expenses because of 
divorce, abandonment, separation from a
spouse, or failure to 
support a spouse or child, (v) unemployment or
underemployment, 
(vi) loss, reduction, or delay in the receipt of federal,

State, or other government benefits, and (vii) participation by 
the homeowner
in a recognized labor action such as a strike.  In 
determining whether there is
a reasonable prospect that the 
borrower will be able to resume full mortgage
payments, the

participating financial institution shall consider factors 
including, but not
necessarily limited to the following: (i) a 
favorable work and credit history,
(ii) the borrower's ability 
to and history of paying the mortgage when
employed, (iii) the 
lack of an impediment or disability that prevents
reemployment, 
(iv) new education and training opportunities, (v) non-cash

benefits that may reduce household expenses, and (vi) other 
debts.

    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 no more 
than 4
families 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; 92-531, eff. 2-8-02; 
92-625, eff.
7-11-02; 93-246, eff. 7-22-03.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.