Sec. 5. General definitions.
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/il/chapter-765/act-945/5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 5. General definitions. As used in this Act, unless the context otherwise requires:
"Borrower" means a natural person who seeks or obtains a reverse mortgage.
"Business day" means any calendar day except Saturday, Sunday, or a State or federal holiday.
"Homestead property" means the domicile and contiguous real estate owned and occupied by the borrower. "Homestead property" includes a manufactured home as defined in subdivision
(53)of Section 9-102 of the Uniform Commercial Code that is real property under Section 5-35 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
"Lender" means a natural or artificial person who transfers, deals in, offers, or makes a reverse mortgage. "Lender" includes, but is not limited to, creditors and brokers who transfer, deal in, offer, or make reverse mortgages. "Lender" does not include purchasers, assignees, or subsequent holders of reverse mortgages.
"Real property" includes a manufactured home as defined in subdivision
(53)of Section 9-102 of the Uniform Commercial Code that is real property under Section 5-35 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
"Reverse mortgage" means a non-recourse loan, secured by real property or a homestead property, that complies with all of the following:
(1)Provides cash advances to a borrower for the purchase of the home or based on the
equity in a borrower's owner-occupied principal residence, provided that it is a residence with not more than 4 units.
(2)Requires no payment of principal or interest until the entire loan becomes due and
payable.