State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

91_SB1656eng

 
SB1656 Engrossed                              LRB9111043JSpcA

 1        AN ACT to amend the Illinois Credit Union Act by changing
 2    Sections 9 and 12.

 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 9 and 12 as follows:

 7        (205 ILCS 305/9) (from Ch. 17, par. 4410)
 8        Sec. 9.  Reports and examinations.
 9        (1)  Credit   unions   shall  report  to  the  Department
10    annually on or before the first day of February in each  year
11    on  forms supplied by the Department. A recapitulation of the
12    Annual Reports shall be compiled and  published  annually  by
13    the  Department,  for the use of the General Assembly, credit
14    unions, various educational institutions and other interested
15    parties. A credit union which fails to file any  report  when
16    due  shall  pay  to the Department a late filing fee of $5.00
17    for each day the report is overdue. The Director  may  extend
18    the time for filing a report.
19        (2)  The Director may require special examinations of and
20    special  financial  reports  from  a credit union or a credit
21    union organization in which a credit union loans, invests, or
22    delegates   substantially   all   managerial    duties    and
23    responsibilities  when  he  determines that such examinations
24    and  reports  are  necessary  to  enable  the  Department  to
25    determine the safety of a credit  union's  operation  or  its
26    solvency. The cost to the Department of the aforesaid special
27    examinations  shall  be  borne  by  the  credit  union  being
28    examined.
29        (3)  All  credit unions incorporated under this Act shall
30    be examined at least biennially annually  by  the  Department
31    or, at the discretion of the Director, by a public accountant
 
SB1656 Engrossed            -2-               LRB9111043JSpcA
 1    registered  by the Department of Professional Regulation. The
 2    costs of an examination shall be paid by  the  credit  union.
 3    The scope of all examinations by a public accountant shall be
 4    at  least  equal  to the examinations made by the Department.
 5    The examiners shall have full access to, and may  compel  the
 6    production of, all the books, papers, securities and accounts
 7    of  any  credit union. A special examination shall be made by
 8    the Department or by a  public  accountant  approved  by  the
 9    Department  upon  written  request  of 5 or more members, who
10    guarantee the expense of the same. Any credit union  refusing
11    to  submit  to  an examination when ordered by the Department
12    shall  be  reported  to  the  Attorney  General,  who   shall
13    institute  proceedings  to  have its charter revoked.  If the
14    Director determines that the annual examination of  a  credit
15    union is to be conducted by a public accountant registered by
16    the Department of Professional Regulation and the such annual
17    examination  is  done  in conjunction with the credit union's
18    external  independent  audit  of  financial  statements,  the
19    requirements of this Section and subsection (3) of Section 34
20    shall be deemed met.
21        (4)  A copy of the completed report of examination and  a
22    review  comment  letter,  if  any, citing exceptions revealed
23    during the examination, shall  be  submitted  to  the  credit
24    union  by  the  Department.  A  detailed  report  stating the
25    corrective actions taken by the Board of  Directors  on  each
26    exception  set  forth  in  the review comment letter shall be
27    filed with the Department within 40 days after  the  date  of
28    the  review  comment  letter, or as otherwise directed by the
29    Department. Any credit union through its officers, directors,
30    committee members  or  employees,  which  willfully  provides
31    fraudulent or misleading information regarding the corrective
32    actions  taken  on  exceptions  appearing in a review comment
33    letter may have its operations restricted to  the  collection
34    of  principal  and  interest  on  loans  outstanding  and the
 
SB1656 Engrossed            -3-               LRB9111043JSpcA
 1    payment of normal expenses and salaries until all  exceptions
 2    are corrected and accepted by the Department.
 3    (Source: P.A. 86-238.)

 4        (205 ILCS 305/12) (from Ch. 17, par. 4413)
 5        Sec. 12. Fees for examination and administration.
 6        (1)  A  credit  union  regulated  unions  examined by the
 7    Department shall pay a regulatory an examination fee  to  the
 8    Department  based  upon  its  total  assets  as  shown by its
 9    Year-end Call Report Statement of Condition on  the  date  of
10    examination at the following rates:
11    TOTAL ASSETS                   REGULATORY EXAMINATION FEE
12    $25,000 or less ..........     $100 $25 plus $2 per $1,000 of
13                                   assets up to and including
14                                   $25,000
15    Over $25,000 and not over
16    $100,000 .................     $100 $75 plus $4
17                                   $1.75 per $1,000 of
18                                   assets in excess of $25,000
19    Over $100,000 and not over
20    $200,000 .................     $400 $206.25 plus $3
21                                   $1.50 per
22                                   $1,000 of assets in excess of
23                                   $100,000
24    Over $200,000 and not over
25    $500,000 .................     $700 $356.25 plus
26                                   $2 $1.25 per
27                                   $1,000 of assets in excess
28                                   of $200,000
29    Over $500,000 and not over
30    $1,000,000
31    $750,000..................     $1,300 $731.25
32                                   plus $1.40 85
33                                   cents per $1,000 of assets in
 
SB1656 Engrossed            -4-               LRB9111043JSpcA
 1                                   excess of $500,000
 2    Over $1,000,000
 3    $750,000 and not over
 4    $5,000,000
 5    $1,000,000 ...............     $2,000 $943.75
 6                                   plus $0.50 80
 7                                   cents per $1,000 of assets in
 8                                   excess of $1,000,000
 9                                   $750,000
10    Over $5,000,000
11    $1,000,000 and not over
12    $30,000,000
13    $5,000,000 ................    $4,000 $1,143.75
14                                   plus $0.35 40
15                                   cents per $1,000 assets
16                                   in excess of
17                                   $5,000,000 $1,000,000
18    Over $30,000,000 and not
19    over $100,000,000
20    $5,000,000 ..........          $12,750 $2,743.75
21                                   plus $0.30 25
22                                   cents per $1,000 of assets in
23                                   excess of $30,000,000
24                                   $5,000,000
25    Over $100,000,000 and not
26    over $500,000,000............. $33,750 plus $0.15 per
27                                   $1,000 of assets in excess
28                                   of  $100,000,000
29    Over
30    $500,000,000................   $93,750 plus
31                                   $0.05 per $1,000 of
32                                   assets in excess
33                                   of $500,000,000
34        (2)  The   Director   shall  review  the  regulatory  fee
 
SB1656 Engrossed            -5-               LRB9111043JSpcA
 1    schedule in subsection (1) on an annual basis and adjust  the
 2    fee  schedule no more than 5% annually if necessary to defray
 3    the estimated administrative and operational expenses of  the
 4    Department  as defined in subsection (5).  The Director shall
 5    provide credit unions with written notice of  any  adjustment
 6    made  in  the  regulatory fee schedule. In no event shall the
 7    fee be less than $35 or more than  $28,000.   No  examination
 8    fee  shall be collected from a credit union until it has been
 9    in operation for one year.
10        (3)  Not later than March February  1  of  each  calendar
11    year,  a  each  credit union shall pay to the Department, for
12    the preceding calendar year, a regulatory  an  administrative
13    fee  in  accordance  with  the  regulatory  fee  schedule  in
14    subsection  (1) scale set forth below, on the basis of assets
15    as of the Year-end Call Report December 31 of  the  preceding
16    year.,  but   The  regulatory  fee shall may not be less than
17    $100 or more than $125,000, provided that the regulatory  fee
18    cap  of  $125,000  shall  be adjusted to incorporate the same
19    percentage increase as the Director makes in  the  regulatory
20    fee  schedule from time to time under subsection (2) $25.  No
21    regulatory administrative  fee  shall  be  collected  from  a
22    credit union until it has been in operation for one year.
23        Scale of Administrative Fees:
24    If a Credit Union Has                      The Administrative
25    Total Assets of:                           Fee is:
26    Under $25,000.................                           $ 25
27    At least $25,000 but less
28    than $50,000..................                             45
29    At least $50,000 but less
30    than $100,000.................                             85
31    At least $100,000 but less
32    than $200,000.................                            155
33    At least $200,000 but less
34    than $350,000.................                            195
 
SB1656 Engrossed            -6-               LRB9111043JSpcA
 1    At least $350,000 but less
 2    than $500,000.................                            305
 3    At least $500,000 but less
 4    than $1,000,000...............                            500
 5    At least $1,000,000 but less
 6    than $2,000,000...............                            600
 7    At least $2,000,000 but less
 8    than $5,000,000...............                            775
 9    At least $5,000,000 but less
10    than $10,000,000..............                          1,000
11    $10,000,000 or greater........       1,500 plus $150 for each
12                                         additional $10,000,000
13                                         in assets
14        (4)  The   aggregate   of   all  fees  collected  by  the
15    Department under  this  Act  shall  be  paid  promptly  after
16    receipt  of  the  same,  accompanied  by a detailed statement
17    thereof, into the State Treasury and shall be  set  apart  in
18    the  Credit  Union Fund, a special fund hereby created in the
19    State treasury.  The amount from time to  time  deposited  in
20    the  Credit  Union  Fund  and  shall  be  used  to offset the
21    ordinary  administrative  and  operational  expenses  of  the
22    Department under this Act.
23        (5)  The administrative and operational expenses for  any
24    calendar year shall mean the ordinary and contingent expenses
25    for  that year incidental to making the examinations provided
26    for by,  and  for  administering,  this  Act,  including  all
27    salaries  and  other  compensation paid for personal services
28    rendered for the State by officers or employees of the  State
29    to  enforce  this  Act;  all  expenditures  for telephone and
30    telegraph  charges,  postage  and  postal   charges,   office
31    supplies  and services, furniture and equipment, office space
32    and maintenance thereof, travel expenses and other  necessary
33    expenses;  all  to  the  extent  that  such  expenditures are
34    directly incidental to such examination or administration.
 
SB1656 Engrossed            -7-               LRB9111043JSpcA
 1        (6)  When the aggregate of  all  fees  collected  by  the
 2    Department  under  this Act for any calendar year exceeds the
 3    total  administrative  and  operational  administration   and
 4    examination  expenses  under  this  Act  for  that year, such
 5    excess shall be credited to credit unions and applied against
 6    their regulatory fees for the subsequent  year.   The  amount
 7    credited to a credit union shall be in the same proportion as
 8    the  fee  paid  by such credit union for the calendar year in
 9    which the excess is produced bears to the  aggregate  of  the
10    fees  collected by the Department under this Act for the same
11    year.
12        (7)  Examination  fees  for  the  year   2000   statutory
13    examinations paid pursuant to the examination fee schedule in
14    effect  at  that time shall be credited toward the regulatory
15    fee to be assessed the credit union in calendar year 2001.
16        The Director shall transfer annually, for a 3 year period
17    beginning July 1, 1988, from the Credit  Union  Fund  to  the
18    General  Revenue  Fund  the sum of 1/3 of the General Revenue
19    Fund monies expended for the  administration  of  the  Credit
20    Union Division of the Department during fiscal year 1988.  No
21    such  transfer  shall  be  made  in any year when the average
22    daily balance during the previous fiscal year in  the  Credit
23    Union Fund falls below $300,000.
24        (8)  Nothing  in  this  Act  shall  prohibit  the General
25    Assembly from appropriating funds to the Department from  the
26    General  Revenue  Fund  for the purpose of administering this
27    Act.
28    (Source: P.A. 85-716.)

29        Section 99.   Effective  date.   This  Act  takes  effect
30    January 1, 2001.

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