Senate Bill No. 218, also known as Public Act No. 26-79, introduces significant amendments to laws governing community banks and credit unions, mortgage payments, and rental security deposit regulations. The bill empowers the State Treasurer to create a program for investing up to $300 million in eligible community banks and credit unions, with eligibility based on asset limits and loan growth metrics. It revises the competitive bidding process for investment services, allowing banks and credit unions to apply rather than compete, and grants the State Treasurer authority to establish capital standards for participating institutions. Additionally, the bill mandates that mortgagees accept various payment methods and clarifies definitions related to mortgage loans, while also enhancing the process for investigating landlord complaints regarding rental security deposits by allowing the commissioner to impose civil penalties.

Furthermore, the bill amends community reinvestment performance evaluations for banking entities, requiring those rated "needs to improve" or "substantial noncompliance" to submit a plan to the commissioner to address the banking needs of all community residents, including low- and moderate-income individuals. The commissioner will make these plans available for public inspection and comment, and transaction approvals will depend on the adequacy of these plans. The approval timeline for applications from eligible entities is shortened from the twelfth to the fifth business day after the comment period, and the criteria for assessing a bank's performance are expanded to include the provision of loan or deposit products aimed at improving local residents' credit history. The bill also repeals certain existing provisions and replaces them with updated language to ensure that community credit needs are met while maintaining the safe operation of banks.

Statutes affected:
Public Act No. 26-79: 3-24k, 49-8a