Bill Text: IL SB1281 | 2015-2016 | 99th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Act on the Aging. Provides that the Department on Aging has the power and duty to develop the content and format of a statement regarding non-recourse reverse mortgage loans under a specified provision of the Illinois Banking Act. Provides that the statement shall provide independent consumer information regarding the potential benefits and risks associated with non-recourse reverse mortgages, potential alternatives to non-recourse reverse mortgages, and the availability of independent counseling services, including services provided by nonprofit agencies certified by the federal government to provide required counseling for non-recourse reverse mortgages insured by the federal government. Amends the Illinois Banking Act. Provides that a reverse mortgage may be subject to any additional terms and conditions imposed by a lender that are required under the provisions of the federal Housing and Community Development Act of 1987 to enable the lender to obtain federal government insurance on mortgage borrowers 62 years of age or older if the loans are to be insured under that Act. Makes changes to provisions concerning the definition of a "reverse mortgage" and other definitions, repayment obligations under a reverse mortgage, disclosure requirements, restrictions on cross-selling, and certification requirements. Repeals a provision that regulated reverse mortgages. Amends the Savings Bank Act. Repeals a provision concerning reverse mortgage disclosures. Amends the Illinois Credit Union Act. Removes a provision concerning credit unions making reverse mortgages. Removes the definition of "real estate". Amends the Residential Mortgage License Act of 1987. Makes corresponding changes requiring licensees to follow the requirements of the Illinois Banking Act.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Vetoed) 2016-11-30 - Bill Dead - Amendatory Veto [SB1281 Detail]
Download: Illinois-2015-SB1281-Engrossed.html
Bill Title: Amends the Illinois Act on the Aging. Provides that the Department on Aging has the power and duty to develop the content and format of a statement regarding non-recourse reverse mortgage loans under a specified provision of the Illinois Banking Act. Provides that the statement shall provide independent consumer information regarding the potential benefits and risks associated with non-recourse reverse mortgages, potential alternatives to non-recourse reverse mortgages, and the availability of independent counseling services, including services provided by nonprofit agencies certified by the federal government to provide required counseling for non-recourse reverse mortgages insured by the federal government. Amends the Illinois Banking Act. Provides that a reverse mortgage may be subject to any additional terms and conditions imposed by a lender that are required under the provisions of the federal Housing and Community Development Act of 1987 to enable the lender to obtain federal government insurance on mortgage borrowers 62 years of age or older if the loans are to be insured under that Act. Makes changes to provisions concerning the definition of a "reverse mortgage" and other definitions, repayment obligations under a reverse mortgage, disclosure requirements, restrictions on cross-selling, and certification requirements. Repeals a provision that regulated reverse mortgages. Amends the Savings Bank Act. Repeals a provision concerning reverse mortgage disclosures. Amends the Illinois Credit Union Act. Removes a provision concerning credit unions making reverse mortgages. Removes the definition of "real estate". Amends the Residential Mortgage License Act of 1987. Makes corresponding changes requiring licensees to follow the requirements of the Illinois Banking Act.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Vetoed) 2016-11-30 - Bill Dead - Amendatory Veto [SB1281 Detail]
Download: Illinois-2015-SB1281-Engrossed.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Reverse Mortgage Act.
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6 | Section 5. General definitions. As used in this Act, unless | ||||||
7 | the context otherwise requires:
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8 | "Borrower" means a natural person who seeks or obtains a | ||||||
9 | reverse mortgage.
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10 | "Homestead property" means the domicile and contiguous | ||||||
11 | real estate owned and occupied by the borrower. "Homestead | ||||||
12 | property" includes a manufactured home as defined in | ||||||
13 | subdivision (53) of Section 9-102 of the Uniform Commercial | ||||||
14 | Code that is real property under Section 5-35 of the Conveyance | ||||||
15 | and Encumbrance of Manufactured Homes as Real Property and | ||||||
16 | Severance Act.
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17 | "Lender" means a natural or artificial person who | ||||||
18 | transfers, deals in, offers, or makes a reverse mortgage. | ||||||
19 | "Lender" includes, but is not limited to, creditors and brokers | ||||||
20 | who transfer, deal in, offer, or make reverse mortgages. | ||||||
21 | "Lender" does not include purchasers, assignees, or subsequent | ||||||
22 | holders of reverse mortgages.
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23 | "Real property" includes a manufactured home as defined in |
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1 | subdivision (53) of Section 9-102 of the Uniform Commercial | ||||||
2 | Code that is real property under Section 5-35 of the Conveyance | ||||||
3 | and Encumbrance of Manufactured Homes as Real Property and | ||||||
4 | Severance Act.
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5 | "Reverse mortgage" means a non-recourse loan, secured by | ||||||
6 | real property or a homestead property, that complies with all | ||||||
7 | of the following:
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8 | (1) Provides cash advances to a borrower for the | ||||||
9 | purchase of the home or based on the equity in a borrower's | ||||||
10 | owner-occupied principal residence, provided that it is a | ||||||
11 | residence with not more than 4 units.
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12 | (2) Requires no payment of principal or interest until | ||||||
13 | the entire loan becomes due and payable.
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14 | Section 10. Reverse mortgages.
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15 | (a) Reverse mortgage loans shall be subject to all of the | ||||||
16 | following provisions:
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17 | (1) Payment, in whole or in part, shall be permitted | ||||||
18 | without penalty at any time during the term of the | ||||||
19 | mortgage.
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20 | (2) A reverse mortgage may provide for an interest rate | ||||||
21 | that is fixed or adjustable and may provide for interest | ||||||
22 | that is contingent on appreciation in the value of the | ||||||
23 | property.
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24 | (3) If a reverse mortgage provides for periodic | ||||||
25 | advances to a borrower, the advances may not be reduced in |
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1 | amount or number based on any adjustment in the interest | ||||||
2 | rate.
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3 | (4) A reverse mortgage may be subject to any additional | ||||||
4 | terms and conditions imposed by a lender that are required | ||||||
5 | under the provisions of the federal Housing and Community | ||||||
6 | Development Act of 1987 to enable the lender to obtain | ||||||
7 | federal government insurance on the mortgage if a loan is | ||||||
8 | to be insured under that Act.
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9 | (b) The repayment obligation under a reverse mortgage is | ||||||
10 | subject to all of the following:
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11 | (1) Temporary absences from the home not exceeding 60 | ||||||
12 | consecutive days shall not cause the mortgage to become due | ||||||
13 | and payable.
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14 | (2) Temporary absences from the home exceeding 60 days, | ||||||
15 | but not exceeding one year, shall not cause the mortgage to | ||||||
16 | become due and payable, provided that the borrower has | ||||||
17 | taken action that secures the home in a manner satisfactory | ||||||
18 | to the lender.
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19 | (c) A reverse mortgage shall become due and payable upon | ||||||
20 | the occurrence of any of the following events, unless the | ||||||
21 | maturity date has been deferred under the Federal Housing | ||||||
22 | Administration's Home Equity Conversion Mortgage Program:
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23 | (1) The property securing the loan is sold.
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24 | (2) All borrowers cease to occupy the home as a | ||||||
25 | principal residence.
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26 | (3) A fixed maturity date agreed to by the lender and |
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1 | the borrower is reached.
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2 | (4) Default by the borrower in the performance of its | ||||||
3 | obligations under the loan agreement.
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4 | (5) The death of the borrower or, for homestead | ||||||
5 | properties in joint tenancy, the death of the last | ||||||
6 | surviving joint tenant who had an interest in the property | ||||||
7 | at the time the loan was initiated.
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8 | Section 15. Reverse mortgage disclosures. | ||||||
9 | (a) The Office of the Attorney General shall develop the | ||||||
10 | content and format of the following 2 documents regarding | ||||||
11 | reverse mortgage loans for the purpose of consumer education: | ||||||
12 | (1) An educational document providing independent | ||||||
13 | consumer information regarding reverse mortgages, | ||||||
14 | potential alternatives to reverse mortgages, and the | ||||||
15 | availability of independent counseling services, including | ||||||
16 | services provided by nonprofit agencies certified by the | ||||||
17 | federal government to provide required counseling for | ||||||
18 | reverse mortgages insured by the U.S. Federal Government. | ||||||
19 | The document shall also include a statement that the terms | ||||||
20 | of a reverse mortgage may adversely affect the applicant's | ||||||
21 | eligibility to obtain a tax deferral under the Senior | ||||||
22 | Citizens Real Estate Tax Deferral Act. | ||||||
23 | (2) A document regarding the availability of | ||||||
24 | counseling services that shall be in at least 12-point | ||||||
25 | font, containing contact information (including agency |
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1 | name, address, telephone number, and website) for all | ||||||
2 | agencies with an office in Illinois that are approved by | ||||||
3 | the U.S. Department of Housing and Urban Development (HUD) | ||||||
4 | to conduct reverse mortgage counseling. This document | ||||||
5 | shall contain the following statement: | ||||||
6 | "IMPORTANT NOTICE: Under Illinois law, reverse mortgages | ||||||
7 | are non-recourse loans secured by real or homestead property. | ||||||
8 | Reverse mortgages insured by the U.S. Federal Government, known | ||||||
9 | as Home Equity Conversion Mortgages or HECM loans, require | ||||||
10 | people considering reverse mortgages to get counseling from a | ||||||
11 | federally approved counselor working for a HECM counseling | ||||||
12 | agency prior to applying for the loan. The purpose of the | ||||||
13 | counseling is to help the prospective borrower understand the | ||||||
14 | financial implications, alternatives to securing a reverse | ||||||
15 | mortgage, borrower obligations, costs of obtaining the loan, | ||||||
16 | repayment conditions and other issues. Counseling can also be a | ||||||
17 | benefit to people considering reverse mortgages not insured by | ||||||
18 | the federal government. | ||||||
19 | There are advantages to receiving this counseling in | ||||||
20 | person, but it can also be conducted over the telephone. | ||||||
21 | Illinois State law requires reverse mortgage lenders to provide | ||||||
22 | potential reverse mortgage borrowers with a list including | ||||||
23 | contact information for all agencies with an office in Illinois | ||||||
24 | that are approved by the U.S. Department of Housing and Urban | ||||||
25 | Development (HUD) to conduct reverse mortgage counseling. | ||||||
26 | Contact information for approved counseling agencies located |
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1 | outside of Illinois is available from HUD.". | ||||||
2 | (b) The documents shall be updated and revised as often as | ||||||
3 | deemed necessary by the Office of the Attorney General. | ||||||
4 | (c) At the time of the initial inquiry regarding a reverse | ||||||
5 | mortgage or, if not practically feasible, at the time the | ||||||
6 | lender provides additional written information about reverse | ||||||
7 | mortgages, a lender shall provide to the borrower the documents | ||||||
8 | prepared by the Office of the Attorney General under this | ||||||
9 | Section.
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10 | Section 20. Reverse mortgages cooling-off period.
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11 | (a) Any written commitment provided by the lender to the | ||||||
12 | borrower must contain the material terms and conditions of the | ||||||
13 | reverse mortgage. That commitment may be subject to a | ||||||
14 | satisfactory appraisal and the borrower meeting standard | ||||||
15 | closing conditions.
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16 | (b) A borrower shall not be bound for 3 full business days | ||||||
17 | after the borrower's acceptance, in writing, of a lender's | ||||||
18 | written commitment to make a reverse mortgage loan and may not | ||||||
19 | be required to close or proceed with the loan during that time | ||||||
20 | period. A borrower may not waive the provisions of this | ||||||
21 | subsection (b).
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22 | (c) At the time of making a written commitment, the lender | ||||||
23 | shall provide the borrower a separate document in at least | ||||||
24 | 12-point font that contains the following statement: | ||||||
25 | "IMPORTANT NOTICE REGARDING THE COOLING-OFF PERIOD: Illinois |
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1 | State law requires a 3-day cooling-off period for reverse | ||||||
2 | mortgage loans, during which time a potential borrower cannot | ||||||
3 | be required to close or proceed with the loan. The purpose of | ||||||
4 | this requirement is to provide potential borrowers with 3 | ||||||
5 | business days to consider their decision whether to secure a | ||||||
6 | reverse mortgage or not. Potential borrowers may want to seek | ||||||
7 | additional information and an analysis of the commitment from a | ||||||
8 | reverse mortgage counselor during this 3-day period. The 3-day | ||||||
9 | cooling-off period cannot be waived.".
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10 | Section 25. Reverse mortgages; restriction on | ||||||
11 | cross-selling. No lender may:
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12 | (1) require the purchase of an annuity, investment, | ||||||
13 | life insurance, or long-term care insurance product as a | ||||||
14 | condition of obtaining a reverse mortgage loan; however, | ||||||
15 | nothing in this paragraph precludes a lender from requiring | ||||||
16 | the borrower to purchase property and casualty insurance, | ||||||
17 | title insurance, flood insurance, or other products meant | ||||||
18 | to insure or protect the value of the home and that are | ||||||
19 | customary for residential mortgage or reverse mortgage | ||||||
20 | transactions on the borrower's residence securing the | ||||||
21 | reverse mortgage loan;
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22 | (2) enter into any agreement to make a reverse mortgage | ||||||
23 | loan that obligates the borrower to purchase an annuity, | ||||||
24 | investment, life insurance, or long-term care insurance | ||||||
25 | product; or
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1 | (3) receive compensation out of reverse mortgage | ||||||
2 | proceeds for providing the borrower with information | ||||||
3 | relating to an annuity, investment, life insurance, | ||||||
4 | long-term care insurance, or property insurance product.
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5 | Section 30. Reverse mortgages; restriction on distribution | ||||||
6 | of loan proceeds. No person, other than a borrower's spouse or | ||||||
7 | partner, who directly or indirectly facilitates, processes, | ||||||
8 | negotiates, assists, encourages, arranges, or otherwise | ||||||
9 | induces consumers to take out a reverse mortgage with a lender | ||||||
10 | may receive any portion of the loan proceeds for any service or | ||||||
11 | product, including for services that fall under the Home Repair | ||||||
12 | and Remodeling Act, other than that for bona fide fees for | ||||||
13 | origination of the loan. This Section shall not prohibit | ||||||
14 | disbursements of loan proceeds in compliance with guidelines, | ||||||
15 | including uses defined as mandatory obligations, under the | ||||||
16 | Federal Housing Administration's Home Equity Conversion | ||||||
17 | Mortgage Program.
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18 | Section 35. Reverse mortgages; certification requirements.
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19 | (a) No reverse mortgage commitment may be made unless all | ||||||
20 | lenders involved in brokering and making the reverse mortgage | ||||||
21 | loan certify, in writing, that:
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22 | (1) the borrower has received from the lender the | ||||||
23 | document prepared by the Office of the Attorney General | ||||||
24 | required in Section 15 regarding the advisability and |
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1 | availability of independent information and counseling | ||||||
2 | services on reverse mortgages;
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3 | (2) the borrower has received from the lender, at the | ||||||
4 | time a written commitment was made to the applicant to | ||||||
5 | provide a reverse mortgage loan, the disclosure document | ||||||
6 | required in Section 20 regarding the 3-day cooling-off | ||||||
7 | period and that at least 3 business days have passed since | ||||||
8 | the document was provided; the certification shall also | ||||||
9 | include the date the cooling-off period disclosure was | ||||||
10 | provided;
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11 | (3) the reverse mortgage loan does not include any | ||||||
12 | current or future requirement for the applicant to purchase | ||||||
13 | an annuity, investment, life insurance, or long-term care | ||||||
14 | insurance product;
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15 | (4) no compensation has or will be provided to the | ||||||
16 | lender out of reverse mortgage proceeds for providing the | ||||||
17 | borrower with information relating to an annuity, | ||||||
18 | investment, life insurance, long-term care insurance, or | ||||||
19 | property insurance product; and
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20 | (5) to their knowledge, no person, other than a | ||||||
21 | borrower's spouse or partner, who directly or indirectly | ||||||
22 | facilitates, processes, negotiates, assists, encourages, | ||||||
23 | arranges, or otherwise induces consumers to take out a | ||||||
24 | reverse mortgage with a lender has received or will receive | ||||||
25 | any portion of the loan proceeds for any service or | ||||||
26 | product, including for services that fall under the Home |
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1 | Repair and Remodeling Act, other than that for bona fide | ||||||
2 | fees for origination of the loan.
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3 | This Section shall not prohibit disbursements of loan | ||||||
4 | proceeds in compliance with guidelines under the Federal | ||||||
5 | Housing Administration's Home Equity Conversion Mortgage | ||||||
6 | Program, including uses defined as mandatory obligations. | ||||||
7 | (b) The certification regarding these requirements shall | ||||||
8 | be in a separate document in at least 12-point font. The lender | ||||||
9 | shall maintain the certification in an accurate, reproducible, | ||||||
10 | and accessible format for the term of the reverse mortgage.
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11 | Section 40. Enforcement.
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12 | (a) Any violation of this Act shall also be considered an | ||||||
13 | unlawful practice under the Consumer Fraud and Deceptive | ||||||
14 | Business Practices Act. Only the Attorney General may enforce | ||||||
15 | violations of this Act. The Attorney General shall only find a | ||||||
16 | violation of this Act if the conduct constitutes a pattern or | ||||||
17 | practice.
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18 | (b) Any violation of this Act by a licensee or residential | ||||||
19 | mortgage licensee under the Residential Mortgage License Act of | ||||||
20 | 1987 shall also be considered a violation of the Residential | ||||||
21 | Mortgage License Act of 1987.
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22 | Section 900. The Illinois Act on the Aging is amended by | ||||||
23 | changing Section 4.01 as follows:
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1 | (20 ILCS 105/4.01) (from Ch. 23, par. 6104.01)
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2 | Sec. 4.01. Additional powers and duties of the Department. | ||||||
3 | In addition
to powers and duties otherwise provided by law, the | ||||||
4 | Department shall have the
following powers and duties:
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5 | (1) To evaluate all programs, services, and facilities for | ||||||
6 | the aged
and for minority senior citizens within the State and | ||||||
7 | determine the extent
to which present public or private | ||||||
8 | programs, services and facilities meet the
needs of the aged.
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9 | (2) To coordinate and evaluate all programs, services, and | ||||||
10 | facilities
for the Aging and for minority senior citizens | ||||||
11 | presently furnished by State
agencies and make appropriate | ||||||
12 | recommendations regarding such services, programs
and | ||||||
13 | facilities to the Governor and/or the General Assembly.
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14 | (2-a) To request, receive, and share information | ||||||
15 | electronically through the use of data-sharing agreements for | ||||||
16 | the purpose of (i) establishing and verifying the initial and | ||||||
17 | continuing eligibility of older adults to participate in | ||||||
18 | programs administered by the Department; (ii) maximizing | ||||||
19 | federal financial participation in State assistance | ||||||
20 | expenditures; and (iii) investigating allegations of fraud or | ||||||
21 | other abuse of publicly funded benefits. Notwithstanding any | ||||||
22 | other law to the contrary, but only for the limited purposes | ||||||
23 | identified in the preceding sentence, this paragraph (2-a) | ||||||
24 | expressly authorizes the exchanges of income, identification, | ||||||
25 | and other pertinent eligibility information by and among the | ||||||
26 | Department and the Social Security Administration, the |
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1 | Department of Employment Security, the Department of | ||||||
2 | Healthcare and Family Services, the Department of Human | ||||||
3 | Services, the Department of Revenue, the Secretary of State, | ||||||
4 | the U.S. Department of Veterans Affairs, and any other | ||||||
5 | governmental entity. The confidentiality of information | ||||||
6 | otherwise shall be maintained as required by law. In addition, | ||||||
7 | the Department on Aging shall verify employment information at | ||||||
8 | the request of a community care provider for the purpose of | ||||||
9 | ensuring program integrity under the Community Care Program. | ||||||
10 | (3) To function as the sole State agency to develop a | ||||||
11 | comprehensive
plan to meet the needs of the State's senior | ||||||
12 | citizens and the State's
minority senior citizens.
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13 | (4) To receive and disburse State and federal funds made | ||||||
14 | available
directly to the Department including those funds made | ||||||
15 | available under the
Older Americans Act and the Senior | ||||||
16 | Community Service Employment Program for
providing services | ||||||
17 | for senior citizens and minority senior citizens or for
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18 | purposes related thereto, and shall develop and administer any | ||||||
19 | State Plan
for the Aging required by federal law.
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20 | (5) To solicit, accept, hold, and administer in behalf of | ||||||
21 | the State
any grants or legacies of money, securities, or | ||||||
22 | property to the State of
Illinois for services to senior | ||||||
23 | citizens and minority senior citizens or
purposes related | ||||||
24 | thereto.
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25 | (6) To provide consultation and assistance to communities, | ||||||
26 | area agencies
on aging, and groups developing local services |
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1 | for senior citizens and
minority senior citizens.
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2 | (7) To promote community education regarding the problems | ||||||
3 | of senior
citizens and minority senior citizens through | ||||||
4 | institutes, publications,
radio, television and the local | ||||||
5 | press.
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6 | (8) To cooperate with agencies of the federal government in | ||||||
7 | studies
and conferences designed to examine the needs of senior | ||||||
8 | citizens and minority
senior citizens and to prepare programs | ||||||
9 | and facilities to meet those needs.
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10 | (9) To establish and maintain information and referral | ||||||
11 | sources
throughout the State when not provided by other | ||||||
12 | agencies.
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13 | (10) To provide the staff support that may reasonably be | ||||||
14 | required
by the Council.
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15 | (11) To make and enforce rules and regulations necessary | ||||||
16 | and proper
to the performance of its duties.
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17 | (12) To establish and fund programs or projects or | ||||||
18 | experimental facilities
that are specially designed as | ||||||
19 | alternatives to institutional care.
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20 | (13) To develop a training program to train the counselors | ||||||
21 | presently
employed by the Department's aging network to provide | ||||||
22 | Medicare
beneficiaries with counseling and advocacy in | ||||||
23 | Medicare, private health
insurance, and related health care | ||||||
24 | coverage plans. The Department shall
report to the General | ||||||
25 | Assembly on the implementation of the training
program on or | ||||||
26 | before December 1, 1986.
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1 | (14) To make a grant to an institution of higher learning | ||||||
2 | to study the
feasibility of establishing and implementing an | ||||||
3 | affirmative action
employment plan for the recruitment, | ||||||
4 | hiring, training and retraining of
persons 60 or more years old | ||||||
5 | for jobs for which their employment would not
be precluded by | ||||||
6 | law.
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7 | (15) To present one award annually in each of the | ||||||
8 | categories of community
service, education, the performance | ||||||
9 | and graphic arts, and the labor force
to outstanding Illinois | ||||||
10 | senior citizens and minority senior citizens in
recognition of | ||||||
11 | their individual contributions to either community service,
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12 | education, the performance and graphic arts, or the labor | ||||||
13 | force. The awards
shall be presented to 4 senior citizens and | ||||||
14 | minority senior citizens
selected from a list of 44 nominees | ||||||
15 | compiled annually by
the Department. Nominations shall be | ||||||
16 | solicited from senior citizens'
service providers, area | ||||||
17 | agencies on aging, senior citizens'
centers, and senior | ||||||
18 | citizens' organizations. The Department shall establish a | ||||||
19 | central location within
the State to be designated as the | ||||||
20 | Senior Illinoisans Hall of Fame for the
public display of all | ||||||
21 | the annual awards, or replicas thereof.
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22 | (16) To establish multipurpose senior centers through area | ||||||
23 | agencies on
aging and to fund those new and existing | ||||||
24 | multipurpose senior centers
through area agencies on aging, the | ||||||
25 | establishment and funding to begin in
such areas of the State | ||||||
26 | as the Department shall designate by rule and as
specifically |
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1 | appropriated funds become available.
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2 | (17) (Blank). To develop the content and format of the | ||||||
3 | acknowledgment regarding
non-recourse reverse mortgage loans | ||||||
4 | under Section 6.1 of the Illinois
Banking Act; to provide | ||||||
5 | independent consumer information on reverse
mortgages and | ||||||
6 | alternatives; and to refer consumers to independent
counseling | ||||||
7 | services with expertise in reverse mortgages.
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8 | (18) To develop a pamphlet in English and Spanish which may | ||||||
9 | be used by
physicians licensed to practice medicine in all of | ||||||
10 | its branches pursuant
to the Medical Practice Act of 1987, | ||||||
11 | pharmacists licensed pursuant to the
Pharmacy Practice Act, and | ||||||
12 | Illinois residents 65 years of age or
older for the purpose of | ||||||
13 | assisting physicians, pharmacists, and patients in
monitoring | ||||||
14 | prescriptions provided by various physicians and to aid persons
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15 | 65 years of age or older in complying with directions for | ||||||
16 | proper use of
pharmaceutical prescriptions. The pamphlet may | ||||||
17 | provide space for recording
information including but not | ||||||
18 | limited to the following:
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19 | (a) name and telephone number of the patient;
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20 | (b) name and telephone number of the prescribing | ||||||
21 | physician;
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22 | (c) date of prescription;
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23 | (d) name of drug prescribed;
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24 | (e) directions for patient compliance; and
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25 | (f) name and telephone number of dispensing pharmacy.
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26 | In developing the pamphlet, the Department shall consult |
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1 | with the
Illinois State Medical Society, the Center for | ||||||
2 | Minority Health Services,
the Illinois Pharmacists Association | ||||||
3 | and
senior citizens organizations. The Department shall | ||||||
4 | distribute the
pamphlets to physicians, pharmacists and | ||||||
5 | persons 65 years of age or older
or various senior citizen | ||||||
6 | organizations throughout the State.
| ||||||
7 | (19) To conduct a study of the feasibility of
implementing | ||||||
8 | the Senior Companion Program throughout the State.
| ||||||
9 | (20) The reimbursement rates paid through the community | ||||||
10 | care program
for chore housekeeping services and home care | ||||||
11 | aides
shall be the same.
| ||||||
12 | (21) From funds appropriated to the Department from the | ||||||
13 | Meals on Wheels
Fund, a special fund in the State treasury that | ||||||
14 | is hereby created, and in
accordance with State and federal | ||||||
15 | guidelines and the intrastate funding
formula, to make grants | ||||||
16 | to area agencies on aging, designated by the
Department, for | ||||||
17 | the sole purpose of delivering meals to homebound persons 60
| ||||||
18 | years of age and older.
| ||||||
19 | (22) To distribute, through its area agencies on aging, | ||||||
20 | information
alerting seniors on safety issues regarding | ||||||
21 | emergency weather
conditions, including extreme heat and cold, | ||||||
22 | flooding, tornadoes, electrical
storms, and other severe storm | ||||||
23 | weather. The information shall include all
necessary | ||||||
24 | instructions for safety and all emergency telephone numbers of
| ||||||
25 | organizations that will provide additional information and | ||||||
26 | assistance.
|
| |||||||
| |||||||
1 | (23) To develop guidelines for the organization and | ||||||
2 | implementation of
Volunteer Services Credit Programs to be | ||||||
3 | administered by Area Agencies on
Aging or community based | ||||||
4 | senior service organizations. The Department shall
hold public | ||||||
5 | hearings on the proposed guidelines for public comment, | ||||||
6 | suggestion,
and determination of public interest. The | ||||||
7 | guidelines shall be based on the
findings of other states and | ||||||
8 | of community organizations in Illinois that are
currently | ||||||
9 | operating volunteer services credit programs or demonstration
| ||||||
10 | volunteer services credit programs. The Department shall offer | ||||||
11 | guidelines for
all aspects of the programs including, but not | ||||||
12 | limited to, the following:
| ||||||
13 | (a) types of services to be offered by volunteers;
| ||||||
14 | (b) types of services to be received upon the | ||||||
15 | redemption of service
credits;
| ||||||
16 | (c) issues of liability for the volunteers and the | ||||||
17 | administering
organizations;
| ||||||
18 | (d) methods of tracking service credits earned and | ||||||
19 | service credits
redeemed;
| ||||||
20 | (e) issues of time limits for redemption of service | ||||||
21 | credits;
| ||||||
22 | (f) methods of recruitment of volunteers;
| ||||||
23 | (g) utilization of community volunteers, community | ||||||
24 | service groups, and
other resources for delivering | ||||||
25 | services to be received by service credit
program clients;
| ||||||
26 | (h) accountability and assurance that services will be |
| |||||||
| |||||||
1 | available to
individuals who have earned service credits; | ||||||
2 | and
| ||||||
3 | (i) volunteer screening and qualifications.
| ||||||
4 | The Department shall submit a written copy of the guidelines to | ||||||
5 | the General
Assembly by July 1, 1998.
| ||||||
6 | (24) To function as the sole State agency to receive and | ||||||
7 | disburse State and federal funds for providing adult protective | ||||||
8 | services in a domestic living situation in accordance with the | ||||||
9 | Adult Protective Services Act. | ||||||
10 | (25) To hold conferences, trainings, and other programs for | ||||||
11 | which the Department shall determine by rule a reasonable fee | ||||||
12 | to cover related administrative costs. Rules to implement the | ||||||
13 | fee authority granted by this paragraph (25) must be adopted in | ||||||
14 | accordance with all provisions of the Illinois Administrative | ||||||
15 | Procedure Act and all rules and procedures of the Joint | ||||||
16 | Committee on Administrative Rules; any purported rule not so | ||||||
17 | adopted, for whatever reason, is unauthorized. | ||||||
18 | (Source: P.A. 98-8, eff. 5-3-13; 98-49, eff. 7-1-13; 98-380, | ||||||
19 | eff. 8-16-13; 98-756, eff. 7-16-14.)
| ||||||
20 | (205 ILCS 5/5a rep.)
| ||||||
21 | (205 ILCS 5/6.1 rep.)
| ||||||
22 | (205 ILCS 5/6.2 rep.)
| ||||||
23 | Section 905. The Illinois Banking Act is amended by | ||||||
24 | repealing Sections 5a, 6.1, and 6.2.
|
| |||||||
| |||||||
1 | (205 ILCS 205/1010 rep.)
| ||||||
2 | Section 910. The Savings Bank Act is amended by repealing | ||||||
3 | Section 1010.
| ||||||
4 | Section 915. The Illinois Credit Union Act is amended by | ||||||
5 | changing Section 46 as follows:
| ||||||
6 | (205 ILCS 305/46) (from Ch. 17, par. 4447)
| ||||||
7 | Sec. 46. Loans and interest rate.
| ||||||
8 | (1) A credit union may make loans
to its members for such | ||||||
9 | purpose and upon such security and terms, including
rates of | ||||||
10 | interest, as the credit committee, credit manager, or loan | ||||||
11 | officer
approves.
Notwithstanding the provisions of any other | ||||||
12 | law in connection with extensions
of credit, a credit union may | ||||||
13 | elect to
contract for and receive interest and fees and other | ||||||
14 | charges for extensions of
credit subject only to the provisions | ||||||
15 | of this Act and rules promulgated under
this Act, except that | ||||||
16 | extensions of credit secured by residential real estate
shall | ||||||
17 | be subject to the laws applicable thereto.
The rates of | ||||||
18 | interest to be charged on loans to members shall be
set by the | ||||||
19 | board of directors of each individual credit union in | ||||||
20 | accordance with Section 30 of this Act and such
rates may be | ||||||
21 | less than, but may not exceed, the maximum rate set forth in
| ||||||
22 | this Section. A borrower may repay his loan prior to maturity, | ||||||
23 | in whole or
in part, without penalty. The credit contract may | ||||||
24 | provide for the payment
by the member and receipt by the credit |
| |||||||
| |||||||
1 | union of all costs and
disbursements, including reasonable | ||||||
2 | attorney's fees and collection agency
charges, incurred by the | ||||||
3 | credit union to collect or enforce the debt in the
event of a | ||||||
4 | delinquency by the member, or in the event of a breach of any
| ||||||
5 | obligation of the member under the credit contract. A | ||||||
6 | contingency or
hourly arrangement established under an | ||||||
7 | agreement entered into by a credit
union with an attorney or | ||||||
8 | collection agency to collect a loan of a member
in default | ||||||
9 | shall be presumed prima facie reasonable.
| ||||||
10 | (2) Credit unions may make loans based upon the security of | ||||||
11 | any
interest or equity in real estate, subject to rules and | ||||||
12 | regulations
promulgated by the Secretary. In any contract or | ||||||
13 | loan which
is secured by a mortgage, deed of
trust, or | ||||||
14 | conveyance in the nature of a mortgage, on residential real
| ||||||
15 | estate, the interest which is computed, calculated, charged, or | ||||||
16 | collected
pursuant to such contract or loan, or pursuant to any | ||||||
17 | regulation or rule
promulgated pursuant to this Act, may not be | ||||||
18 | computed, calculated, charged
or collected for any period of | ||||||
19 | time occurring after the date on which the
total indebtedness, | ||||||
20 | with the exception of late payment penalties, is paid
in full.
| ||||||
21 | For purposes of this subsection (2) of this Section 46, a | ||||||
22 | prepayment
shall mean the payment of the total indebtedness, | ||||||
23 | with the exception of
late payment penalties if incurred or | ||||||
24 | charged, on any date before the date
specified in the contract | ||||||
25 | or loan agreement on which the total indebtedness
shall be paid | ||||||
26 | in full, or before the date on which all payments, if timely
|
| |||||||
| |||||||
1 | made, shall have been made. In the event of a prepayment of the
| ||||||
2 | indebtedness which is made on a date
after the date on which | ||||||
3 | interest on the indebtedness was last computed,
calculated, | ||||||
4 | charged, or collected but before the next date on which | ||||||
5 | interest
on the indebtedness was to be calculated, computed, | ||||||
6 | charged, or collected,
the lender may calculate, charge and | ||||||
7 | collect interest on the indebtedness
for the period which | ||||||
8 | elapsed between the date on which the prepayment is
made and | ||||||
9 | the date on which interest on the indebtedness was last | ||||||
10 | computed,
calculated, charged or collected at a rate equal to | ||||||
11 | 1/360 of the annual
rate for each day which so elapsed, which | ||||||
12 | rate shall be applied to the
indebtedness outstanding as of the | ||||||
13 | date of prepayment. The lender shall
refund to the borrower any | ||||||
14 | interest charged or collected which exceeds that
which the | ||||||
15 | lender may charge or collect pursuant to the preceding | ||||||
16 | sentence.
The provisions of this amendatory Act of 1985 shall | ||||||
17 | apply only to contracts
or loans entered into on or after the | ||||||
18 | effective date of this amendatory
Act.
| ||||||
19 | (3) (Blank). Notwithstanding any other provision of this | ||||||
20 | Act, a credit union
authorized under this Act to make loans | ||||||
21 | secured by an interest or equity in
real estate may engage in | ||||||
22 | making "reverse mortgage" loans to persons for
the purpose of | ||||||
23 | making home improvements or repairs, paying insurance
premiums | ||||||
24 | or paying real estate taxes on the homestead properties
of such | ||||||
25 | persons. If made, such loans shall be made on such terms and
| ||||||
26 | conditions as the credit union shall determine and as shall be |
| |||||||
| |||||||
1 | consistent
with the provisions of this Section and such rules | ||||||
2 | and regulations as the Secretary
shall promulgate hereunder. | ||||||
3 | For purposes of this Section, a
"reverse mortgage" loan shall | ||||||
4 | be a loan extended on the basis of existing
equity in homestead | ||||||
5 | property and secured by a mortgage on such property.
Such loans | ||||||
6 | shall be repaid upon the sale of the property or upon the death
| ||||||
7 | of the owner or, if the property is in joint tenancy, upon the | ||||||
8 | death of the
last surviving joint tenant who had such an | ||||||
9 | interest in the property at the
time the loan was initiated, | ||||||
10 | provided, however, that the credit union and
its member may by | ||||||
11 | mutual agreement, establish other repayment terms. A
credit | ||||||
12 | union, in making a "reverse mortgage" loan, may add deferred
| ||||||
13 | interest to principal or otherwise provide for the charging of | ||||||
14 | interest or
premiums on such deferred interest. "Homestead" | ||||||
15 | property, for purposes of
this Section, means the domicile and | ||||||
16 | contiguous real estate owned and
occupied by the mortgagor.
| ||||||
17 | (4) Notwithstanding any other provisions of this Act, a | ||||||
18 | credit union
authorized under this Act to make loans secured by | ||||||
19 | an interest or equity
in real property may engage in making | ||||||
20 | revolving credit loans secured by
mortgages or deeds of trust | ||||||
21 | on such real property or by security
assignments of beneficial | ||||||
22 | interests in land trusts.
| ||||||
23 | For purposes of this Section, "revolving credit" has the | ||||||
24 | meaning defined
in Section 4.1 of the Interest Act.
| ||||||
25 | Any mortgage or deed of trust given to secure a revolving | ||||||
26 | credit loan may,
and when so expressed therein shall, secure |
| |||||||
| |||||||
1 | not only the existing indebtedness
but also such future | ||||||
2 | advances, whether such advances are obligatory or to
be made at | ||||||
3 | the option of the lender, or otherwise, as are made within | ||||||
4 | twenty
years from the date thereof, to the same extent as if | ||||||
5 | such future advances
were made on the date of the execution of | ||||||
6 | such mortgage or deed of trust,
although there may be no | ||||||
7 | advance made at the time of execution of such mortgage
or other | ||||||
8 | instrument, and although there may be no indebtedness | ||||||
9 | outstanding
at the time any advance is made. The lien of such | ||||||
10 | mortgage or deed of trust,
as to third persons
without actual | ||||||
11 | notice thereof, shall be valid as to all such indebtedness
and | ||||||
12 | future advances form the time said mortgage or deed of trust is | ||||||
13 | filed
for record in the office of the recorder of deeds or the | ||||||
14 | registrar of titles
of the county where the real property | ||||||
15 | described therein is located. The
total amount of indebtedness | ||||||
16 | that may be so secured may increase or decrease
from time to | ||||||
17 | time, but the total unpaid balance so secured at any one time
| ||||||
18 | shall not exceed a maximum principal amount which must be | ||||||
19 | specified in such
mortgage or deed of trust, plus interest | ||||||
20 | thereon, and any disbursements
made for the payment of taxes, | ||||||
21 | special assessments, or insurance on said
real property, with | ||||||
22 | interest on such disbursements.
| ||||||
23 | Any such mortgage or deed of trust shall be valid and have | ||||||
24 | priority over
all subsequent liens and encumbrances, including | ||||||
25 | statutory liens, except
taxes and assessments levied on said | ||||||
26 | real property.
|
| |||||||
| |||||||
1 | (4-5) For purposes of this Section, "real estate" and "real | ||||||
2 | property" include a manufactured home as defined in subdivision | ||||||
3 | (53) of Section 9-102 of the Uniform Commercial Code which is | ||||||
4 | real property as defined in Section 5-35 of the Conveyance and | ||||||
5 | Encumbrance of Manufactured Homes as Real Property and | ||||||
6 | Severance Act. | ||||||
7 | (5) Compliance with federal or Illinois preemptive laws or | ||||||
8 | regulations
governing loans made by a credit union chartered | ||||||
9 | under this Act shall
constitute compliance with this Act.
| ||||||
10 | (6) Credit unions may make residential real estate mortgage | ||||||
11 | loans on terms and conditions established by the United States | ||||||
12 | Department of Agriculture through its Rural Development | ||||||
13 | Housing and Community Facilities Program. The portion of any | ||||||
14 | loan in excess of the appraised value of the real estate shall | ||||||
15 | be allocable only to the guarantee fee required under the | ||||||
16 | program. | ||||||
17 | (7) For a renewal, refinancing, or restructuring of an | ||||||
18 | existing loan that is secured by an interest or equity in real | ||||||
19 | estate, a new appraisal of the collateral shall not be required | ||||||
20 | when the transaction involves an existing extension of credit | ||||||
21 | at the credit union, no new moneys are advanced other than | ||||||
22 | funds necessary to cover reasonable closing costs, and there | ||||||
23 | has been no obvious or material change in market conditions or | ||||||
24 | physical aspects of the real estate that threatens the adequacy | ||||||
25 | of the credit union's real estate collateral protection after | ||||||
26 | the transaction. |
| |||||||
| |||||||
1 | (Source: P.A. 97-133, eff. 1-1-12; 98-749, eff. 7-16-14; | ||||||
2 | 98-784, eff. 7-24-14; revised 10-2-14.)
| ||||||
3 | (205 ILCS 305/46.1 rep.)
| ||||||
4 | (205 ILCS 305/46.2 rep.)
| ||||||
5 | Section 920. The Illinois Credit Union Act is amended by | ||||||
6 | repealing Sections 46.1 and 46.2.
| ||||||
7 | Section 925. The Residential Mortgage License Act of 1987 | ||||||
8 | is amended by adding Section 5-5A as follows:
| ||||||
9 | (205 ILCS 635/5-5A new) | ||||||
10 | Sec. 5-5A. Violations of the Reverse Mortgage Act. Any | ||||||
11 | violation of the Reverse Mortgage Act by a residential mortgage | ||||||
12 | licensee shall be considered a violation of this Act.
| ||||||
13 | (205 ILCS 635/5-5 rep.)
| ||||||
14 | Section 930. The Residential Mortgage License Act of 1987 | ||||||
15 | is amended by repealing Section 5-5.
| ||||||
16 | Section 935. The Consumer Fraud and Deceptive Business | ||||||
17 | Practices Act is amended by changing Section 2Z as follows:
| ||||||
18 | (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
| ||||||
19 | Sec. 2Z. Violations of other Acts. Any person who knowingly | ||||||
20 | violates
the Automotive Repair Act, the Automotive Collision |
| |||||||
| |||||||
1 | Repair Act,
the Home Repair and Remodeling Act,
the Dance | ||||||
2 | Studio Act,
the Physical Fitness Services Act,
the Hearing | ||||||
3 | Instrument Consumer Protection Act,
the Illinois Union Label | ||||||
4 | Act,
the Job Referral and Job Listing Services Consumer | ||||||
5 | Protection Act,
the Travel Promotion Consumer Protection Act,
| ||||||
6 | the Credit Services Organizations Act,
the Automatic Telephone | ||||||
7 | Dialers Act,
the Pay-Per-Call Services Consumer Protection | ||||||
8 | Act,
the Telephone Solicitations Act,
the Illinois Funeral or | ||||||
9 | Burial Funds Act,
the Cemetery Oversight Act, the Cemetery Care | ||||||
10 | Act,
the Safe and Hygienic Bed Act,
the Pre-Need Cemetery Sales | ||||||
11 | Act,
the High Risk Home Loan Act, the Payday Loan Reform Act, | ||||||
12 | the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section | ||||||
13 | 3-10 of the
Cigarette Tax Act, subsection
(a) or (b) of Section | ||||||
14 | 3-10 of the Cigarette Use Tax Act, the Electronic
Mail Act, the | ||||||
15 | Internet Caller Identification Act, paragraph (6)
of
| ||||||
16 | subsection (k) of Section 6-305 of the Illinois Vehicle Code, | ||||||
17 | Section 11-1431, 18d-115, 18d-120, 18d-125, 18d-135, 18d-150, | ||||||
18 | or 18d-153 of the Illinois Vehicle Code, Article 3 of the | ||||||
19 | Residential Real Property Disclosure Act, the Automatic | ||||||
20 | Contract Renewal Act, the Reverse Mortgage Act, or the Personal | ||||||
21 | Information Protection Act commits an unlawful practice within | ||||||
22 | the meaning of this Act.
|