Bill Text: IL SB3407 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Condominium Property Act. Provides that notwithstanding any provision in any condominium instrument or bylaw, a condominium association must not: impair or restrict a condominium unit owner from securing a reverse mortgage, so long as the reverse mortgage does not adversely affect the rights of an association to collect an assessment; prevent, impair, or restrict a unit owner from borrowing money on the unit by refusing to cooperate with a lender or any federal program; or levy a fee to process or to close on a reverse mortgage or other similar financing transaction.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3407 Detail]

Download: Illinois-2011-SB3407-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB3407 Introduced 2/7/2012, by Sen. Ira I. Silverstein SYNOPSIS AS INTRODUCED:
765 ILCS 605/19.1 new
Amends the Condominium Property Act. Provides that notwithstanding any provision in any condominium instrument or bylaw, a condominium association must not: impair or restrict a condominium unit owner from securing a reverse mortgage, so long as the reverse mortgage does not adversely affect the rights of an association to collect an assessment; prevent, impair, or restrict a unit owner from borrowing money on the unit by refusing to cooperate with a lender or any federal program; or levy a fee to process or to close on a reverse mortgage or other similar financing transaction.
LRB097 19912 AJO 65202 b
A BILL FOR
SB3407 LRB097 19912 AJO 65202 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Condominium Property Act is amended by
adding Section 19.1 as follows:
(765 ILCS 605/19.1 new)
Sec. 19.1. Reverse mortgage availability.
(a) Notwithstanding any provision in the declaration,
bylaws, rules, regulations, agreements, or other instruments
of a condominium association, or any construction of any of
those instruments by an association or by an association's
board, an association must not:
(1) impair or restrict the rights of an owner to secure
a reverse mortgage or other similar financing, so long as
on its face the reverse mortgage or similar financing does
not adversely affect the rights of an association to
collect an assessment;
(2) prevent, impair, or restrict a unit owner from
borrowing money on the unit owner's condominium unit by
refusing to: (i) cooperate with a lender; (ii) comply with
a lender's regulations, procedures, or requirements; (iii)
cooperate with any federal program; or (iv) comply with any
federal program's procedures or regulations that concern

SB3407 - 2 - LRB097 19912 AJO 65202 b
loans, the guarantee of loans, or refinancing; or
(3) refuse to allow the examination or copying of
documents concerning an association's budget, financial
statement, or tax identification number.
(b) Fees must not be levied by an association concerning
paperwork necessary to process or to close on a reverse
mortgage or other similar financing transaction.
(c) As used in this Section, "reverse mortgage" has the
meaning ascribed to that term in Section 6.1 of the Illinois
Banking Act.