| 4 | | - | AN ACT concerning civil law. |
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| 5 | | - | Be it enacted by the People of the State of Illinois, |
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| 6 | | - | represented in the General Assembly: |
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| 7 | | - | Section 5. The Mortgage Escrow Account Act is amended by |
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| 8 | | - | changing Sections 5 and 7 as follows: |
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| 9 | | - | (765 ILCS 910/5) (from Ch. 17, par. 4905) |
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| 10 | | - | Sec. 5. (a) When the mortgage is reduced to 65% of its |
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| 11 | | - | original amount by payments of the borrower, timely made |
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| 12 | | - | according to the provisions of the loan agreement secured by |
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| 13 | | - | the mortgage, and the borrower is otherwise not in default on |
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| 14 | | - | the loan agreement, the mortgage lender must notify the |
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| 15 | | - | borrower that he may terminate such escrow account or that he |
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| 16 | | - | may elect to continue it until he requests a termination |
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| 17 | | - | thereof, or until the mortgage is paid in full, whichever |
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| 18 | | - | occurs first. |
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| 19 | | - | (b) Notwithstanding the requirements in subsection (a), a |
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| 20 | | - | mortgage lender that complies with the escrow account |
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| 21 | | - | requirements in Title 12 CFR Part 1026, as amended, for a |
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| 22 | | - | mortgage loan that is a higher-priced mortgage loan, as |
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| 23 | | - | defined in Title 12 CFR Part 1026, as amended, is deemed to be |
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| 24 | | - | in compliance with subsection (a). |
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| 25 | | - | (Source: P.A. 79-625.) |
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| 3 | + | 1 AN ACT concerning civil law. |
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| 4 | + | 2 Be it enacted by the People of the State of Illinois, |
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| 5 | + | 3 represented in the General Assembly: |
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| 6 | + | 4 Section 5. The Mortgage Escrow Account Act is amended by |
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| 7 | + | 5 changing Sections 5 and 7 as follows: |
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| 8 | + | 6 (765 ILCS 910/5) (from Ch. 17, par. 4905) |
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| 9 | + | 7 Sec. 5. (a) When the mortgage is reduced to 65% of its |
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| 10 | + | 8 original amount by payments of the borrower, timely made |
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| 11 | + | 9 according to the provisions of the loan agreement secured by |
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| 12 | + | 10 the mortgage, and the borrower is otherwise not in default on |
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| 13 | + | 11 the loan agreement, the mortgage lender must notify the |
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| 14 | + | 12 borrower that he may terminate such escrow account or that he |
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| 15 | + | 13 may elect to continue it until he requests a termination |
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| 16 | + | 14 thereof, or until the mortgage is paid in full, whichever |
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| 17 | + | 15 occurs first. |
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| 18 | + | 16 (b) Notwithstanding the requirements in subsection (a), a |
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| 19 | + | 17 mortgage lender that complies with the escrow account |
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| 20 | + | 18 requirements in Title 12 CFR Part 1026, as amended, for a |
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| 21 | + | 19 mortgage loan that is a higher-priced mortgage loan, as |
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| 22 | + | 20 defined in Title 12 CFR Part 1026, as amended, is deemed to be |
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| 23 | + | 21 in compliance with subsection (a). |
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| 24 | + | 22 (Source: P.A. 79-625.) |
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| 32 | | - | (765 ILCS 910/7) (from Ch. 17, par. 4907) |
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| 33 | | - | Sec. 7. The borrower shall not have the right to terminate |
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| 34 | | - | any such arrangement under Section 5 in conjunction with |
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| 35 | | - | mortgages insured, guaranteed, supplemented, or assisted by |
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| 36 | | - | the State of Illinois or the federal government that require |
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| 37 | | - | an escrow arrangement for their continuation. The borrower |
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| 38 | | - | shall not have the right to terminate any such arrangement |
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| 39 | | - | under Section 5 in conjunction with a mortgage loan that is a |
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| 40 | | - | higher-priced mortgage loan as defined in Title 12 CFR Part |
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| 41 | | - | 1026, as amended, unless the borrower has met all of the |
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| 42 | | - | conditions for cancellation of an escrow account for a |
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| 43 | | - | higher-priced mortgage loan in Title 12 CFR Part 1026, as |
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| 44 | | - | amended. |
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| 45 | | - | (Source: P.A. 79-625.) |
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| 46 | | - | Section 99. Effective date. This Act takes effect upon |
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| 47 | | - | becoming law. |
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| 31 | + | HB2717 Enrolled- 2 -LRB103 30866 LNS 57379 b HB2717 Enrolled - 2 - LRB103 30866 LNS 57379 b |
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| 32 | + | HB2717 Enrolled - 2 - LRB103 30866 LNS 57379 b |
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| 33 | + | 1 (765 ILCS 910/7) (from Ch. 17, par. 4907) |
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| 34 | + | 2 Sec. 7. The borrower shall not have the right to terminate |
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| 35 | + | 3 any such arrangement under Section 5 in conjunction with |
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| 36 | + | 4 mortgages insured, guaranteed, supplemented, or assisted by |
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| 37 | + | 5 the State of Illinois or the federal government that require |
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| 38 | + | 6 an escrow arrangement for their continuation. The borrower |
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| 39 | + | 7 shall not have the right to terminate any such arrangement |
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| 40 | + | 8 under Section 5 in conjunction with a mortgage loan that is a |
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| 41 | + | 9 higher-priced mortgage loan as defined in Title 12 CFR Part |
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| 42 | + | 10 1026, as amended, unless the borrower has met all of the |
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| 43 | + | 11 conditions for cancellation of an escrow account for a |
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| 44 | + | 12 higher-priced mortgage loan in Title 12 CFR Part 1026, as |
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| 45 | + | 13 amended. |
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| 46 | + | 14 (Source: P.A. 79-625.) |
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| 47 | + | 15 Section 99. Effective date. This Act takes effect upon |
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| 48 | + | 16 becoming law. |
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| 49 | + | |
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| 50 | + | |
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| 51 | + | |
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| 52 | + | |
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| 53 | + | |
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| 54 | + | HB2717 Enrolled - 2 - LRB103 30866 LNS 57379 b |
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