[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
| [ Senate Amendment 001 ] | [ Senate Amendment 002 ] |
92_HB2439enr HB2439 Enrolled LRB9205889REpc 1 AN ACT concerning the use of State funds. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Deposit of State Moneys Act is amended by 5 changing Section 7 as follows: 6 (15 ILCS 520/7) (from Ch. 130, par. 26) 7 Sec. 7. (a) Proposals made may either be approved or 8 rejected by the State Treasurer. A bank or savings and loan 9 association whose proposal is approved shall be eligible to 10 become a State depositary for the class or classes of funds 11 covered by its proposal. A bank or savings and loan 12 association whose proposal is rejected shall not be so 13 eligible. The State Treasurer shall seek to have at all times 14 a total of not less than 20 banks or savings and loan 15 associations which are approved as State depositaries for 16 time deposits. 17 (b) The State Treasurer may, in his discretion, accept a 18 proposal from an eligible institution which provides for a 19 reduced rate of interest provided that such institution 20 documents the use of deposited funds for community 21 development projects. 22 (c) The State Treasurer may, in his or her discretion, 23 accept a proposal from an eligible institution that provides 24 for interest earnings on deposits of State moneys to be held 25 by the institution in a separate account that the State 26 Treasurer may use to secure up to 10% of any (i) home loans 27 to Illinois citizens purchasing a home in Illinois in 28 situations where the institution would not offer the borrower 29 a home loan under the institution's prevailing credit 30 standards without the incentive of a reduced rate of interest 31 on deposits of State moneys and (ii) existing home loans of HB2439 Enrolled -2- LRB9205889REpc 1 Illinois citizens who have failed to make payments on the 2 home loan as a result of a temporary layoff or disability, 3 but who have resumed making payments on the home loan and 4 have made at least 2 consecutive payments, when under the 5 institution's prevailing policies it would commence or pursue 6 foreclosure proceedings if it were not for the incentive of a 7 reduced rate of interest on deposits of State moneys. 8 For the purposes of this Section, "home loan" means a 9 loan, other than an open-end credit plan or a reverse 10 mortgage transaction, for which (i) the principal amount of 11 the loan does not exceed 50% of the conforming loan size 12 limit for a single-family dwelling as established from time 13 to time by the Federal National Mortgage Association, (ii) 14 the borrower is a natural person, (iii) the debt is incurred 15 by the borrower primarily for personal, family, or household 16 purposes, and (iv) the loan is secured by a mortgage or deed 17 of trust on real estate upon which there is located or there 18 is to be located a structure designed principally for the 19 occupancy of one family and that is or will be occupied by 20 the borrower as the borrower's principal dwelling. 21 (d) If there is an agreement between the State Treasurer 22 and an eligible institution that details the use of deposited 23 funds, the agreement may not require the gift of money, 24 goods, or services to a third party; this provision does not 25 restrict the eligible institution from contracting with third 26 parties in order to carry out the intent of the agreement or 27 restrict the State Treasurer from placing requirements upon 28 third-party contracts entered into by the eligible 29 institution. 30 (Source: P.A. 89-350, eff. 8-17-95.) 31 Section 99. Effective date. This Act takes effect upon 32 becoming law.