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91_HB3463
LRB9110428JSpcA
1 AN ACT to amend the Illinois Credit Union Act by changing
2 Sections 15, 20, 22, 31, 32, 33, 35, and 52.
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 Sections 15, 20, 22, 31, 32, 33, 35, and 52 as
7 follows:
8 (205 ILCS 305/15) (from Ch. 17, par. 4416)
9 Sec. 15. Membership defined.
10 (1) The membership of a credit union shall be limited to
11 and consist of the subscribers to the articles of
12 incorporation and such other persons within the common bond,
13 as defined in this Act and as set forth in the credit union's
14 articles of incorporation, as have been duly admitted
15 members, have paid the required entrance fee or membership
16 fee, or both, if any, have subscribed for one or more shares,
17 and have paid the initial installment thereon, and have
18 complied with such other requirements as the articles of
19 incorporation or bylaws specify. Two or more persons within
20 the common bond who have jointly subscribed for one or more
21 shares under a joint account and have complied with all
22 membership requirements may each be admitted to membership.
23 The surviving spouse of a credit union member may, within 6
24 months of the member's death, become a member of the credit
25 union by paying the required entrance fee or membership fee
26 or both, if any, by subscribing for one or more shares and
27 paying the initial installment thereon, and by complying with
28 such other requirements as the articles of incorporation or
29 bylaws specify.
30 (2) Any member may withdraw from a credit union at any
31 time upon giving notice of withdrawal as required by the
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1 bylaws.
2 (3) Any member may be expelled by a 2/3 vote of the
3 members present at any regular or special meeting called to
4 consider the matter, but only after an opportunity has been
5 given to the member to be heard.
6 (4) A member who has caused a loss to the credit union
7 or who has engaged in repeated verbally or physically abusive
8 behavior toward credit union officials, staff, agents, or
9 volunteers or who has failed to maintain one or more shares
10 at the credit union may be expelled by a majority vote of a
11 quorum of directors if the board has adopted a policy
12 providing for expulsion under those circumstances. In
13 maintaining and enforcing a this policy based on loss, the
14 board may consider, without limitation, a member's failure to
15 pay amounts due under a loan, failure to provide collected
16 funds to cover withdrawals or personal share drafts or credit
17 union drafts where the member is a remitter, or failure to
18 pay fees or charges due the credit union. If a the policy is
19 adopted by the board pursuant to this subsection (4), written
20 notice of the policy and the effective date of the policy
21 shall be mailed to each member of the credit union at the
22 member's current address appearing on the records of the
23 credit union. The policy shall be mailed to members not
24 fewer than 30 days prior to the effective date of the policy.
25 In addition, new members shall be provided written notice of
26 the policy prior to or upon applying for membership.
27 (5) All or any part of the amount paid on shares of a
28 withdrawing member or expelled member with any declared
29 dividends or interest on the date of withdrawal or expulsion
30 must, after deducting all amounts due from the member to the
31 credit union, be paid to him. The credit union may require
32 not more than 60 days' written notice of intention to
33 withdraw shares, but a notice of withdrawal does not entitle
34 the member to any preferred or prior claim in the event of
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1 liquidation. Withdrawing or expelled members have no further
2 rights in the credit union, but are not, by withdrawal or
3 expulsion, released from any obligation they owe to the
4 credit union.
5 (6) A member who has caused a loss to the credit union
6 or who has engaged in repeated verbally or physically abusive
7 behavior toward credit union officials, staff, agents, or
8 volunteers may be denied any or all credit union services in
9 accordance with board policy, however, members who are denied
10 services shall be allowed to maintain a share account and to
11 vote on all issues put to a vote of the membership.
12 (Source: P.A. 88-235; 89-603, eff. 8-2-96.)
13 (205 ILCS 305/20) (from Ch. 17, par. 4421)
14 Sec. 20. Election or appointment of officials.
15 (1) The credit union shall be directed by a Board of
16 Directors consisting of no less than 7 in number, to be
17 elected at the annual meeting by and from the members.
18 Directors shall hold office until the next annual meeting,
19 unless their terms are staggered. Upon amendment of its
20 bylaws, a credit union may divide the Directors into 2 or 3
21 classes with each class as nearly equal in number as
22 possible. The term of office of the directors of the first
23 class shall expire at the first annual meeting after their
24 election, that of the second class shall expire at the second
25 annual meeting after their election, and that of the third
26 class, if any, shall expire at the third annual meeting after
27 their election. At each annual meeting after the
28 classification, the number of directors equal to the number
29 of directors whose terms expire at the time of the meeting
30 shall be elected to hold office until the second succeeding
31 annual meeting if there are 2 classes or until the third
32 succeeding annual meeting if there are 3 classes. A Director
33 shall hold office for the term for which he or she is elected
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1 and until his or her successor is elected and qualified. In
2 all elections for Directors, every member has the right to
3 vote, in person or by proxy, the number of shares owned by
4 him, or in the case of a member other than a natural person,
5 the member's one vote, for as many persons as there are
6 Directors to be elected, or to cumulate such shares, and give
7 one candidate as many votes as the number of Directors
8 multiplied by the number of his shares equals, or to
9 distribute them on the same principle among as many
10 candidates as he may desire and the Directors shall not be
11 elected in any other manner. Shares held in a joint account
12 owned by more than one member may be voted by any one of the
13 members, however, the number of cumulative votes cast may not
14 exceed a total equal to the number of shares multiplied by
15 the number of directors to be elected. A majority of the
16 shares entitled to vote shall be represented either in person
17 or by proxy for the election of Directors. Each Director
18 shall wholly take and subscribe to an oath that he will
19 diligently and honestly perform his duties in administering
20 the affairs of the credit union, that while he may delegate
21 to another the performance of those administrative duties he
22 is not thereby relieved from his responsibility for their
23 performance, that he will not knowingly violate or willingly
24 permit to be violated any law applicable to the credit union,
25 and that he is the owner of at least one share of the credit
26 union.
27 (2) The Board of Directors shall appoint from among the
28 members of the credit union, a Supervisory Committee of not
29 less than 3 members at the organization meeting and within 30
30 days following each annual meeting of the members for such
31 terms as the bylaws provide. Members of the Supervisory
32 Committee may, but need not be, on the Board of Directors,
33 but shall not be officers of the credit union, or members of
34 the Credit Committee , or the credit manager if no Credit
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1 Committee has been appointed.
2 (3) The Board of Directors may shall appoint, from among
3 the members of the credit union, a Credit Committee
4 consisting of an odd number, not less than 3 for such terms
5 as the bylaws provide. Members of the Credit Committee may,
6 but need not be, Directors or officers of the credit union,
7 but shall not be members of the Supervisory Committee.
8 (4) The Board of Directors shall appoint from among the
9 members of the credit union a Membership Committee of one or
10 more persons. It shall act upon all applications for
11 membership and submit a report of its actions to the Board of
12 Directors at the next monthly meeting for review.
13 (Source: P.A. 88-235; 89-74, eff. 6-30-95.)
14 (205 ILCS 305/22) (from Ch. 17, par. 4423)
15 Sec. 22. Vacancies. The Board of Directors shall, by
16 appointment from among the credit union members, fill any
17 vacancies occurring on the Board for the remainder of the
18 Director's unexpired term or until a successor is elected and
19 qualified. The Board shall, by appointment from among the
20 credit union members, fill vacancies in the Membership
21 Committee, Credit Committee, or credit manager if no Credit
22 Committee has been appointed, and Supervisory Committees.
23 (Source: P.A. 81-329.)
24 (205 ILCS 305/31) (from Ch. 17, par. 4432)
25 Sec. 31. Supervision of loans Authority of Credit
26 Committee. The Credit Committee shall have the general
27 supervision of all loans and lines of credit to members. If
28 no Credit Committee has been appointed, the credit manager
29 shall have the general supervision of all loans and lines of
30 credit to members.
31 (Source: P.A. 81-329.)
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1 (205 ILCS 305/32) (from Ch. 17, par. 4433)
2 Sec. 32. Meetings of Credit Committee. If a Credit
3 Committee has been appointed by the board, the provisions of
4 this Section shall apply. The Credit Committee shall meet as
5 often as the operations of the credit union require and not
6 less frequently than once a month to consider applications
7 for loans and lines of credit. Unless a greater percentage
8 is required in the credit union's bylaws, a majority of the
9 Credit Committee shall constitute a quorum. No loan shall be
10 made unless it is approved, in writing, by a majority of the
11 Committee who are present at a meeting at which a quorum is
12 present and at which the application is considered. The
13 Credit Committee shall report to the Directors at each Board
14 meeting on all meetings held and actions taken since the last
15 Board meeting.
16 (Source: P.A. 81-329.)
17 (205 ILCS 305/33) (from Ch. 17, par. 4434)
18 Sec. 33. Credit manager.
19 (1) The Credit Committee may or, if no Credit Committee
20 has been appointed, the Board of Directors shall appoint a
21 credit manager who shall be empowered to approve or
22 disapprove loans and lines of credit under conditions
23 prescribed by the Board of Directors. The Credit Committee
24 or credit manager may appoint one or more loan officers with
25 the power to approve loans and lines of credit, subject to
26 such limitations or conditions as may be prescribed by the
27 Board of Directors. The credit manager and any loan officers
28 appointed by the Credit Committee or the credit manager shall
29 keep written records of all transactions and shall report, in
30 writing, to the Credit Committee if a Credit Committee has
31 been appointed, otherwise which shall in turn report, in
32 writing, to the Directors at each Board meeting.
33 (2) Applications for loans or lines of credit not
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1 approved by a loan officer shall be reviewed and acted upon
2 by the Credit Committee or credit manager.
3 (3) The loan officers must keep written records of all
4 loans or lines of credit granted or refused and any other
5 transactions and submit a report to the Credit Committee or
6 credit manager at least once each month.
7 (Source: P.A. 81-329.)
8 (205 ILCS 305/35) (from Ch. 17, par. 4436)
9 Sec. 35. Suspension and removal of officials.
10 (1) The Supervisory Committee, by a unanimous vote of
11 the whole committee, may suspend any member of the Credit
12 Committee or the credit manager if no Credit Committee has
13 been appointed and. The Supervisory Committee shall report
14 such action to the Board of Directors for appropriate action.
15 (2) The Supervisory Committee, by a unanimous vote of
16 the whole committee, may suspend any officer or member of the
17 Board of Directors until the next members' meeting, which
18 shall be held not less than 7 nor more than 21 days after
19 such suspension. At such meeting, the suspension shall be
20 acted upon by the members, who shall either confirm or reject
21 it by majority vote.
22 (Source: P.A. 81-329.)
23 (205 ILCS 305/52) (from Ch. 17, par. 4453)
24 Sec. 52. Loans to directors, officers, Credit Committee,
25 credit manager, and Supervisory Committee members. A credit
26 union may make loans to its directors, officers, Credit
27 Committee members, credit manager, and Supervisory Committee
28 members, provided that the loan complies with all lawful
29 requirements under this Act with respect to loans to other
30 borrowers. No loan may be made to or cosigned by any
31 director, officer, Credit Committee member, credit manager if
32 no Credit Committee has been appointed, or Supervisory
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1 Committee member which would cause the aggregate amount of
2 all loans then outstanding to or cosigned by all directors,
3 officers, Credit Committee members, credit manager if no
4 Credit Committee has been appointed, or Supervisory Committee
5 members to exceed 20% of the unimpaired capital and surplus
6 of the credit union.
7 (Source: P.A. 85-1273.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.