State of Illinois
91st General Assembly

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 1        AN ACT to amend the Illinois Credit Union Act by changing
 2    Section 8.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The Illinois Credit Union Act is amended by
 6    changing Section 8 as follows:

 7        (205 ILCS 305/8) (from Ch. 17, par. 4409)
 8        Sec. 8. Director's powers and duties. Credit unions shall
 9    be  are  regulated  by  the  Department.  The  Director,   in
10    executing the powers and discharging the duties vested by law
11    in the Department has the following powers and duties:
12        (1)  To  exercise the rights, powers and duties set forth
13    in this Act or any related Act.;
14        (2)  To  prescribe  rules   and   regulations   for   the
15    administration  of  this Act. The provisions of "the Illinois
16    Administrative Procedure Act", as now or  hereafter  amended,
17    are  hereby  expressly  adopted  and  incorporated  herein as
18    though  a  part  of  this  Act,  and  shall  apply   to   all
19    administrative  rules  and procedures of the Department under
20    this Act.;
21        (3)  To direct and supervise all the  administrative  and
22    technical   activities   of   the  Department  including  the
23    employment of  a  Credit  Union  Supervisor  who  shall  have
24    knowledge  in  the  theory and practice of, or experience in,
25    the operations  or  supervision  of  financial  institutions,
26    preferably  credit  unions,  and  such  other  persons as are
27    necessary to carry out his functions.;
28        (4)  To issue cease and desist orders when in the opinion
29    of the Director, a credit union is engaged or has engaged, or
30    the Director has reasonable cause to believe the credit union
31    is about to engage, in an unsafe or unsound practice,  or  is
                            -2-                LRB9103308JSpr
 1    violating  or  has  violated  or  the Director has reasonable
 2    cause  to  believe  is  about  to  violate  a  law,  rule  or
 3    regulation  or  any  condition  imposed  in  writing  by  the
 4    Department.;
 5        (5)  To suspend from office and to prohibit from  further
 6    participation  in any manner in the conduct of the affairs of
 7    his credit union any director, officer  or  committee  member
 8    who has committed any violation of a law, rule, regulation or
 9    of   a   cease  and  desist  order  or  who  has  engaged  or
10    participated in any unsafe or unsound practice in  connection
11    with  the credit union or who has committed or engaged in any
12    act, omission, or practice which constitutes a breach of  his
13    fiduciary duty as such director, officer or committee member,
14    when  the Director has determined that such action or actions
15    have resulted or will result in substantial financial loss or
16    other damage that seriously prejudices the interests  of  the
17    members.;
18        (6)  Except  for  the  fees  established  in this Act, to
19    prescribe, by rule and regulation, fees  for  filing  reports
20    and other documents, furnishing transcripts, holding hearings
21    and investigating applications for permission to organize.;
22        (7)  To  destroy, in his discretion, any or all books and
23    records of any credit union in his possession  or  under  his
24    control  after the expiration of three years from the date of
25    cancellation of the charter of such credit unions.;
26        (8)  To make investigations and to conduct  research  and
27    studies  and  to  publish  some of the problems of persons in
28    obtaining credit at reasonable rates of interest and  of  the
29    methods  and  benefits  of cooperative saving and lending for
30    such persons.;
31        (9)  To  authorize,  foster  or  establish  experimental,
32    developmental, demonstration or pilot projects by  public  or
33    private organizations including credit unions which:
34             (a)  promote  more  effective  operation  of  credit
                            -3-                LRB9103308JSpr
 1        unions so as to provide members an opportunity to use and
 2        control  their  own  money  to improve their economic and
 3        social conditions; or
 4             (b)  are in the best  interests  of  credit  unions,
 5        their members and the people of the State of Illinois.
 6        (10)  To   cooperate   in   studies,  training  or  other
 7    administrative activities with, but not limited to, the NCUA,
 8    other state credit union  regulatory  agencies  and  industry
 9    trade  associations  in  order  to promote more effective and
10    efficient supervision of Illinois chartered credit unions.
11    (Source: P.A. 88-570, eff. 8-5-94; revised 10-31-98.)

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