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William A. Margalus, 85, who served in the Illinois legislature from 1977 until 1982, died Friday. Mr. Margalus, a resident of the Bridgeport neigborhood, was active in the Republican organization and worked for the Illinois Department of Financial Institutions as an examiner for 25 years. Visitation will be Monday from 2 until 10 p.m. in the Blake-Lamb funeral home, 544 W. 31st St. Mass will be at 9:30 a.m Tuesday in St. Barbara Catholic Church, 2859 S. Throop St. Mr. Margalus is survived by his wife, Agnes; a son, Bill; a daughter, Bonnie Hickey Derwinski; five grandchildren; a sister; and a brother.