(a) Subject to the regulations of the Commissioner, a savings bank may loan funds as follows:
         (1) On the security of deposit accounts, but no such
    
loan shall exceed the withdrawal value of the pledged account.
        (2) On the security of real estate:
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Illinois Compiled Statutes 205 ILCS 205/6002

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
  • Trustee: A person or institution holding and administering property in trust.
  • United States: may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14

             (A) of a value, determined in accordance with
        
this Act, sufficient to provide good and ample security for the loan;
            (B) with a fee simple title or a leasehold title;
             (C) with the title established by evidence of
        
title as is consistent with sound lending practices in the locality;
            (D) with the security interest in the real estate
        
evidenced by an appropriate written instrument and the loan evidenced by a note, bond, or similar written instrument; a loan on the security of the whole of the beneficial interest in a land trust satisfies the requirements of this paragraph if the title to the land is held by a corporate trustee and if the real estate held in the land trust meets the other requirements of this subsection;
            (E) with a mortgage loan not to exceed 40 years.
         (3) For the purpose of repair, improvement,
    
rehabilitation, furnishing, or equipment of real estate.
        (4) For the purpose of financing or refinancing an
    
existing ownership interest in certificates of stock, certificates of beneficial interest, other evidence of an ownership interest in, or a proprietary lease from a corporation, trust, or partnership formed for the purpose of the cooperative ownership of real estate, secured by the assignment or transfer of certificates or other evidence of ownership of the borrower.
        (5) Through the purchase of loans that, at the time
    
of purchase, the savings bank could make in accordance with this Section and the bylaws.
        (6) Through the purchase of installment contracts for
    
the sale of real estate and title thereto that is subject to the contracts, but in each instance only if the savings bank, at the time of purchase, could make a mortgage loan of the same amount and for the same length of time on the security of the real estate.
        (7) Through loans guaranteed or insured, wholly or in
    
part, by the United States or any of its instrumentalities.
        (8) Subject to regulations adopted by the
    
Commissioner, through secured or unsecured loans for business, corporate, commercial, or agricultural purposes; provided that the total of all loans granted under this paragraph shall not exceed 15% of the savings bank’s total assets unless a greater amount is authorized in writing by the Commissioner.
        (9) For the purpose of manufactured home financing
    
subject, however, to the regulation of the Commissioner. As used in this Section, “manufactured home” means a manufactured home as defined in subdivision (53) of § 9-102 of the Uniform Commercial Code.
        (10) Through loans secured by the cash surrender
    
value of any life insurance policy or any collateral that would be a legal investment under the terms of this Act if made by the savings bank.
        (11) Any provision of this Act or any other law,
    
except for paragraph (18) of Section 6003, to the contrary notwithstanding, but subject to the Financial Institutions Insurance Sales Law and subject to the Commissioner’s regulations, any savings bank may make any loan or investment or engage in any activity that it could make or engage in if it were organized under State law as a savings and loan association or under federal law as a federal savings and loan association or federal savings bank.
        (12) A savings bank may issue letters of credit or
    
other similar arrangements only as provided for by regulation of the Commissioner with regard to aggregate amounts permitted, take out commitments for stand-by letters of credit, underlying documentation and underwriting, legal limitations on loans of the savings bank, control and subsidiary records, and other procedures deemed necessary by the Commissioner.
        (13) For the purpose of automobile financing, subject
    
to the regulation of the Commissioner.
        (14) For the purpose of financing primary, secondary,
    
undergraduate, or postgraduate education.
        (15) Through revolving lines of credit on the
    
security of a first or junior lien on the borrower’s personal residence, based primarily on the borrower’s equity, the proceeds of which may be used for any purpose; those loans being commonly referred to as home equity loans.
        (16) As secured or unsecured credit to cover the
    
payment of checks, drafts, or other funds transfer orders in excess of the available balance of an account on which they are drawn, subject to the regulations of the Commissioner.
    (b) For purposes of this Section, “real estate” includes a manufactured home as defined in subdivision (53) of § 9-102 of the Uniform Commercial Code which is real property as defined in Section 5-35 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
  Previous section
Next section  
 Article 6 Contents