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91_SB0357eng SB357 Engrossed LRB9103206JSpc 1 AN ACT concerning financial institutions. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Banking Act is amended by 5 changing Section 5d as follows: 6 (205 ILCS 5/5d) (from Ch. 17, par. 312.3) 7 Sec. 5d. Revolving credit loans. Notwithstanding any 8 other provision of this Act, a bank may engage in making 9 revolving credit loans secured by mortgages or deeds of trust 10 on real property or by security assignments of beneficial 11 interests in land trusts. 12 For purposes of this Section, "revolving credit", has the 13 meaning defined in Section 4.1 of "An Act in relation to the 14 rate of interest and other charges in connection with sales 15 on credit and the lending of money", approved May 24, 1879, 16 as amended. 17 Any mortgage or deed of trust given to secure a revolving 18 credit loan may, and when so expressed therein shall, secure 19 not only the existing indebtedness, but also such future 20 advances, whether such advances are obligatory or to be made 21 at the option of the lender, or otherwise, as are made within 22 twenty years from the date thereof, to the same extent as if 23 such future advances were made on the date of the execution 24 of such mortgage or deed of trust, although there may be no 25 advance made at the time of execution of such mortgage or 26 other instrument, and although there may be no indebtedness 27 outstanding at the time any advance is made. The lien of such 28 mortgage or deed of trust, as to third persons without actual 29 notice thereof, shall be valid as to all such indebtedness 30 and future advances from the time said mortgage or deed of 31 trust is filed for record in the office of the Recorder of SB357 Engrossed -2- LRB9103206JSpc 1 Deeds or the Registrar of Titles of the county where the real 2 property described therein is located. The total amount of 3 indebtedness that may be so secured may increase or decrease 4 from time to time, but the total unpaid balance so secured at 5 any one time shall not exceed a maximum principal amount 6 which must be specified in such mortgage or deed of trust, 7 plus interest thereon, and any disbursements made for the 8 payment of taxes, special assessments, or insurance on said 9 real property, with interest on such disbursements. 10 Any such mortgage or deed of trust shall be valid and 11 have priority over all subsequent liens and encumbrances, 12 including statutory liens, except taxes and assessments 13 levied on said real property. 14 (Source: P.A. 83-1539; 83-1380.) 15 Section 10. The Illinois Savings and Loan Act of 1985 is 16 amended by changing Section 1-1 as follows: 17 (205 ILCS 105/1-1) (from Ch. 17, par. 3301-1) 18 Sec. 1-1. Short title. This Actshall be known andmay 19 be cited as the"Illinois Savings and Loan Act of 1985". 20 (Source: P.A. 84-543.)