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92_HB4066eng HB4066 Engrossed LRB9213794JMcs 1 AN ACT concerning the State Treasurer. 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 (b-5) The State Treasurer may, in his or her discretion, 23 accept a proposal from an eligible institution that provides 24 for a reduced rate of interest, provided that such 25 institution agrees to expend an amount of money equal to the 26 amount of the reduction for the preservation of Cahokia 27 Mounds. 28 (c) The State Treasurer may, in his or her discretion, 29 accept a proposal from an eligible institution that provides 30 for interest earnings on deposits of State moneys to be held 31 by the institution in a separate account that the State HB4066 Engrossed -2- LRB9213794JMcs 1 Treasurer may use to secure up to 10% of any (i) home loans 2 to Illinois citizens purchasing a home in Illinois in 3 situations where the institution would not offer the borrower 4 a home loan under the institution's prevailing credit 5 standards without the incentive of a reduced rate of interest 6 on deposits of State moneys and (ii) existing home loans of 7 Illinois citizens who have failed to make payments on the 8 home loan as a result of a temporary layoff or disability, 9 but who have resumed making payments on the home loan and 10 have made at least 2 consecutive payments, when under the 11 institution's prevailing policies it would commence or pursue 12 foreclosure proceedings if it were not for the incentive of a 13 reduced rate of interest on deposits of State moneys. 14 For the purposes of this Section, "home loan" means a 15 loan, other than an open-end credit plan or a reverse 16 mortgage transaction, for which (i) the principal amount of 17 the loan does not exceed 50% of the conforming loan size 18 limit for a single-family dwelling as established from time 19 to time by the Federal National Mortgage Association, (ii) 20 the borrower is a natural person, (iii) the debt is incurred 21 by the borrower primarily for personal, family, or household 22 purposes, and (iv) the loan is secured by a mortgage or deed 23 of trust on real estate upon which there is located or there 24 is to be located a structure designed principally for the 25 occupancy of one family and that is or will be occupied by 26 the borrower as the borrower's principal dwelling. 27 (d) If there is an agreement between the State Treasurer 28 and an eligible institution that details the use of deposited 29 funds, the agreement may not require the gift of money, 30 goods, or services to a third party; this provision does not 31 restrict the eligible institution from contracting with third 32 parties in order to carry out the intent of the agreement or 33 restrict the State Treasurer from placing requirements upon 34 third-party contracts entered into by the eligible HB4066 Engrossed -3- LRB9213794JMcs 1 institution. 2 (Source: P.A. 92-482, eff. 8-23-01.) 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.