Section 190.40  Removal or Suspension Procedures

a)         Under circumstances as described in Section 8(5) of the Illinois Credit Union Act [205 ILCS 305/8(5)], the Director or his agent shall issue and serve upon a director, officer or committee member a written Order of Suspension to remove the named persons from office and/or to prohibit their further participation in any manner in the conduct of the affairs of such credit union.

b)         Such Order, which shall contain a statement of the facts constituting the grounds therefore, shall be sent by certified mail to the Chairman with a copy to each member of the affected credit union's Board of Directors and the President, if not a director and shall become effective upon service and, unless stayed by a court, shall remain in effect pending the completion of administrative procedings as outlined herein.

c)         Within 15 days of the mailing of the Order, the named persons shall respond in writing to request an Administrative review of the Order.  If no response is received or the Order is agreed to in writing, the persons shall be deemed to have consented to the issuance of an Order of Suspension thereby prohibiting the named individuals from further participation in any manner in the conduct of affairs of any credit union chartered under the Act.  Such order shall remain effective until it is terminated by action of the Director or reviewing court.

d)         Within 10 days of receipt of the conclusions of the administrative review by the Director, if the persons named have specific grounds for believing that the evidence upon which the order is based is not factual then the person(s) may request a formal hearing under 38 Ill. Adm. Code 190.20.

e)         In the event that all of the directors of a credit union are suspended or removed, the Director, under authority of Section 61(4) of the Illinois Credit Union Act [205 ILCS 305/61(4)], shall appoint a Manager-Trustee to manage the affairs of the credit union until such time as the Director appoints interim successors to the directors to serve until the next annual members meeting.

(Source:  Amended at 30 Ill. Reg. 18919, effective December 4, 2006)