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Illinois Compiled Statutes 205 ILCS 105 Illinois Savings and Loan Act of 1985. Section 5-16

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    (205 ILCS 105/5-16) (from Ch. 17, par. 3305-16)

    Sec. 5-16. Limitation on loans to a single borrower. Except for loans to its wholly owned service corporations, an association may not at any one time hold, directly or indirectly, loans to any one corporation or person in a total amount equal to or in excess of 10% of the association's total withdrawable accounts or an amount equal to the total net worth of the association, whichever is less. An association may make loans to a wholly owned service corporation in an amount equal to the association's net worth or in an amount that exceeds an association's net worth if such excess amount is secured by collateral, of a type upon which the association itself could lend, of a value determined in accordance with rules and regulations promulgated by the Commissioner.

    (a) In computing the total mortgage loans made by an association to an individual, there shall be included all mortgage loans made by the association to a partnership or other unincorporated association of which he is a member, the unpaid balance of mortgage loans made either for his benefit or for the benefit of such partnership or other unincorporated association and all mortgage loans to or for the benefit of a corporation of which he owns or controls 25% or more of the capital stock.

    (b) In computing the total mortgage loans made by an association to a partnership or other unincorporated association, there shall be included the unpaid balance of mortgage loans to its individual members, the unpaid balance of mortgage loans made for the benefit of such partnership or other unincorporated association, or of any member thereof, and all mortgage loans to or for the benefit of any corporation of which the partnership or unincorporated association, or any member thereof, owns or controls 25% or more of the capital stock.

    (c) In computing the total mortgage loans made by an association to a corporation, there shall be included the unpaid balance of mortgage loans made for the benefit of the corporation and all mortgage loans to or for the benefit of any individual who owns or controls 25% or more of the capital stock of such corporation.

    (d) This Section does not apply to the obligations as endorser, whether with or without recourse, or as guarantor, whether conditional or unconditional, of negotiable or nonnegotiable installment consumer paper of the person transferring the same if the association's files or the knowledge of its officers of the financial condition of each maker of those obligations is reasonably adequate and if an officer of the association, designated for that purpose by the board of directors of the association, certifies that the responsibility of each maker of the obligations has been evaluated and that the association is relying primarily upon each maker for the payment of the obligations. The certification shall be in writing and shall be retained as part of the records of the association.

(Source: P.A. 92-483, eff. 8-23-01.)

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Last modified: February 20, 2012