(205 ILCS 5/5a) (from Ch. 17, par. 312)
Sec. 5a. Reverse mortgage loans. Notwithstanding any other provision of this Act, a bank may engage in making "reverse mortgage" loans.
For purposes of this Section, a "reverse mortgage" loan shall be a loan extended on the basis of existing equity in homestead property. A bank, in making a "reverse mortgage" loan, may add deferred interest to principal or otherwise provide for the charging of interest or premium on the deferred interest.
The loans shall be repaid upon sale of the property or upon the death of the owner or, if the property is in joint tenancy, upon the death of the last surviving joint tenant who had an interest in the property at the time the loan was initiated.
"Homestead" property, for purposes of this Section, means the domicile and contiguous real estate owned and occupied by the mortgagor. For purposes of this Section, "homestead" includes a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code, used as the domicile, that is real property, as defined in Section 5-35 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act, and is owned and occupied by the mortgagor.
The Commissioner of Banks and Real Estate shall prescribe rules governing this Section and Section 1-6a of the Illinois Savings and Loan Act of 1985.
(Source: P.A. 98-749, eff. 7-16-14.)
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Last modified: February 18, 2015