CHICAGO (AP) _ The American dream wasn't enough for Dan Walker, a federal judge said as he sentenced the former governor of Illinois to seven years in prison for perjury and bank fraud.

Walker was also sentenced Thursday to five years' probation, 500 hours of community service and a $231,609 restitution pament.

Walker, who walked across the state 16 years ago during his gubernatorial campaign, had pleaded guilty to bank fraud, misapplication of funds and perjury stemming in part from improper loans arranged for him from a thrift he and his wife owned before it went broke.

''You were and you lived the American dream, and in this court's view that was not enough for you,'' Judge Ann Williams told Walker. ''You viewed yourself as somehow above the law.''

''It's clear to this court that a pattern was established and that you thought this bank was your own personal piggy bank to bail you out whenever you got into trouble,'' Williams said.

Walker became the second former Illinois governor convicted on federal charges. Former Democratic Gov. Otto Kerner served one year of a three-year sentence handed down in 1973 on bribery, conspiracy, mail fraud, tax evasion and perjury convictions.

Walker, also a Democrat, campaigned as a reform-minded candidate, often clashing with entrenched political powers. He was governor of Illinois from 1973 to 1977.

''He had every advantage America has to offer - that's why this crime is so outrageous,'' said federal prosecutor Thomas Durkin, in urging that Walker be sentenced to ''substantial'' prison time.

After the sentence was handed down, Durkin said he was ''extremely pleased.''

The silver-haired Walker sat impassively in his blue pinstripe suit with a rose breast-pocket handkerchief as he was sentenced. Earlier, during a long day of testimony during the sentencing hearing, his hands had trembled as he reached for a glass of water on the defense table.

He refused to comment after the sentencing.

The government charged that Walker misapplied $280,000 from the savings and loan, lied to U.S. banking officials and filed false financial statements to borrow more than $1.1 million from five banks. He could have been sentenced to a maximum of 15 years in prison and $505,000 in fines.

Defense attorney Thomas Foran pleaded for leniency.

''He came in here and shamed himself and admitted that what he did was wrong,'' Foran said.

Authorities charged that when Walker reached federal limits for personal borrowing from his savings and loan association, he asked his son, Daniel Walker Jr., and a close personal friend, Robert McCarthy, to seek loans from the institution.

The younger Walker and McCarthy were not charged. The restitution that Walker was ordered to make Thursday was to cover the amount outstanding on those loans from First American.

About two-thirds of the money was used to pay personal debts, including payments on Walker's 80-foot yacht, ''Governor's Lady,'' prosecutors said when Walker pleaded guilty in August.

Those transactions led to the misapplication of funds charge.

The perjury charge stemmed from denials the elder Walker made to federal bank board investigators in the spring of 1986 when they sought to learn whether he had received proceeds from a loan made to a family member.

The former governor was charged with bank fraud for filing ''numerous false financial statements'' to obtain $1.1 million in loans for himself or companies in which he held substantial ownership.