HB0107 - Community Bank of Illinois Act

• Establishes the Community Bank of Illinois as a state-owned, state-controlled banking system operated by the Department of Financial and Professional Regulation to promote agriculture, commerce, and industry.

• Grants the Community Bank broad lending powers including loans to farmers (up to 80% of real estate value), financial institutions, certificate holders, educational borrowers, and other entities, with specific authority to purchase mortgage loans and participate in agricultural credit programs.

• Creates a 7-member advisory board appointed by the Governor, with at least 2 members from Illinois-based banks and at least 1 from state or federally chartered financial institutions, to review operations and make recommendations to the Department.

• Requires all state funds and penal/educational institution funds to be deposited in the Community Bank, guarantees all deposits by the State, and exempts deposits from state, county, and municipal taxes.

• Establishes a revolving loan fund for beginning farmers with interest rates fixed at 1% below the bank's base rate (maximum 6%) for the first 5 years, maximum loan term of 25 years for real estate and 7 years for equipment/livestock, and mandates annual audits by an independent certified public accounting firm.