Public Act 097-0855
 
SB3217 EnrolledLRB097 18462 PJG 63692 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Credit Union Act is amended by
changing Sections 15 and 20 and adding Section 64.5 as follows:
 
    (205 ILCS 305/15)  (from Ch. 17, par. 4416)
    Sec. 15. Membership defined.
    (1) The membership of a credit union shall be limited to
and consist of the subscribers to the articles of incorporation
and such other persons within the common bond, as defined in
this Act and as set forth in the credit union's articles of
incorporation, as have been duly admitted members, have paid
the required entrance fee or membership fee, or both, if any,
have subscribed for one or more shares, and have paid the
initial installment thereon, and have complied with such other
requirements as the articles of incorporation or bylaws
specify. Two or more persons within the common bond who have
jointly subscribed for one or more shares under a joint account
and have complied with all membership requirements may each be
admitted to membership. The surviving spouse of a credit union
member may, within 6 months of the member's death, become a
member of the credit union by paying the required entrance fee
or membership fee or both, if any, by subscribing for one or
more shares and paying the initial installment thereon, and by
complying with such other requirements as the articles of
incorporation or bylaws specify.
    (2) Any member may withdraw from a credit union at any time
upon giving notice of withdrawal as required by the bylaws.
    (3) Any member may be expelled by a 2/3 vote of the members
present at any regular or special meeting called to consider
the matter, but only after an opportunity has been given to the
member to be heard.
    (4) A member who has caused a loss to the credit union,
failed to maintain one or more shares at the credit union, or
violated board policy applicable to members may be expelled by
a majority vote of a quorum of directors if the board has
adopted a policy providing for expulsion under those
circumstances. In maintaining and enforcing a policy based on
loss, the board may consider, without limitation, a member's
failure to pay amounts due under a loan, failure to provide
collected funds to cover withdrawals or personal share drafts
or credit union drafts where the member is a remitter, or
failure to pay fees or charges due the credit union. If a
policy is adopted by the board pursuant to this subsection (4),
written notice of the policy and the effective date of the
policy shall be mailed to each member of the credit union at
the member's current address appearing on the records of the
credit union. The policy shall be mailed to members not fewer
than 30 days prior to the effective date of the policy. In
addition, new members shall be provided written notice of the
policy prior to or upon applying for membership.
    (5) All or any part of the amount paid on shares of a
withdrawing member or expelled member with any declared
dividends or interest on the date of withdrawal or expulsion
must, after deducting all amounts due from the member to the
credit union, be paid to him. The credit union may require not
more than 60 days' written notice of intention to withdraw
shares, but a notice of withdrawal does not entitle the member
to any preferred or prior claim in the event of liquidation.
Withdrawing or expelled members have no further rights in the
credit union, but are not, by withdrawal or expulsion, released
from any obligation they owe to the credit union.
    (6) A member who has caused a loss to the credit union or
has violated board policy applicable to members may be denied
any or all credit union services in accordance with board
policy, however, members who are denied services shall be
allowed to maintain a share account and to vote on all issues
put to a vote of the membership.
    (7) If a member fails to maintain one fully paid share, the
credit union, at its option, may permit the member to
re-subscribe and pay for one or more shares within 30 days
after the date the member failed to maintain one fully paid
share, without affecting the member's status or rights as a
member during that period. A member that fails to re-subscribe
for at least one fully paid share within the 30-day period
shall be automatically expelled from the credit union and
treated as an expelled member under subsection (5) of this
Section 15.
(Source: P.A. 97-133, eff. 1-1-12.)
 
    (205 ILCS 305/20)  (from Ch. 17, par. 4421)
    Sec. 20. Election or appointment of officials.
    (1) The credit union shall be directed by a board of
directors consisting of no less than 7 in number, to be elected
at the annual meeting by and from the members. Directors shall
hold office until the next annual meeting, unless their terms
are staggered. Upon amendment of its bylaws, a credit union may
divide the directors into 2 or 3 classes with each class as
nearly equal in number as possible. The term of office of the
directors of the first class shall expire at the first annual
meeting after their election, that of the second class shall
expire at the second annual meeting after their election, and
that of the third class, if any, shall expire at the third
annual meeting after their election. At each annual meeting
after the classification, the number of directors equal to the
number of directors whose terms expire at the time of the
meeting shall be elected to hold office until the second
succeeding annual meeting if there are 2 classes or until the
third succeeding annual meeting if there are 3 classes. A
director shall hold office for the term for which he or she is
elected and until his or her successor is elected and
qualified.
    (1.5) Except as provided in subsection (1.10), in all
elections for directors, every member has the right to vote, in
person or by proxy, the number of shares owned by him, or in
the case of a member other than a natural person, the member's
one vote, for as many persons as there are directors to be
elected, or to cumulate such shares, and give one candidate as
many votes as the number of directors multiplied by the number
of his shares equals, or to distribute them on the same
principle among as many candidates as he may desire and the
directors shall not be elected in any other manner. Shares held
in a joint account owned by more than one member may be voted
by any one of the members, however, the number of cumulative
votes cast may not exceed a total equal to the number of shares
multiplied by the number of directors to be elected. A majority
of the shares entitled to vote shall be represented either in
person or by proxy for the election of directors. Each director
shall wholly take and subscribe to an oath that he will
diligently and honestly perform his duties in administering the
affairs of the credit union, that while he may delegate to
another the performance of those administrative duties he is
not thereby relieved from his responsibility for their
performance, that he will not knowingly violate or permit to be
violated any law applicable to the credit union, and that he is
the owner of at least one share of the credit union.
    (1.10) Upon amendment of a credit union's bylaws approved
by the members, in all elections for directors, every member
who is a natural person shall have the right to cast one vote,
regardless of the number of his or her shares, in person or by
proxy, for as many persons as there are directors to be
elected.
    (1.15) If the board of directors has adopted a policy
addressing age eligibility standards on voting, holding
office, or petitioning the board, then a credit union may
require (i) that members be at least 18 years of age by the
date of the meeting in order to vote at meetings of the
members, sign nominating petitions, or sign petitions
requesting special meetings, and (ii) that members be at least
18 years of age by the date of election or appointment in order
to hold elective or appointive office.
    (2) The board of directors shall appoint from among the
members of the credit union, a supervisory committee of not
less than 3 members at the organization meeting and within 30
days following each annual meeting of the members for such
terms as the bylaws provide. Members of the supervisory
committee may, but need not be, on the board of directors, but
shall not be officers of the credit union, members of the
credit committee, or the credit manager if no credit committee
has been appointed.
    (3) The board of directors may appoint, from among the
members of the credit union, a credit committee consisting of
an odd number, not less than 3 for such terms as the bylaws
provide. Members of the credit committee may, but need not be,
directors or officers of the credit union, but shall not be
members of the supervisory committee.
    (4) The board of directors may appoint from among the
members of the credit union a membership committee of one or
more persons. If appointed, the committee shall act upon all
applications for membership and submit a report of its actions
to the board of directors at the next regular meeting for
review. If no membership committee is appointed, credit union
management shall act upon all applications for membership and
submit a report of its actions to the board of directors at the
next regular meeting for review.
(Source: P.A. 97-133, eff. 1-1-12.)
 
    (205 ILCS 305/64.5 new)
    Sec. 64.5. Continuation of corporate entity.
    (a) For purposes of this Section, a "resulting credit
union" means an Illinois-chartered credit union that is the
surviving credit union in a merger of 2 or more credit unions,
a new credit union resulting from a consolidation of 2 or more
credit unions, or a credit union that has effected a conversion
from a credit union chartered under the laws of any other state
or under the laws of the United States.
    (b) A resulting credit union shall be considered the same
business and corporate entity as each merging or consolidating
credit union or as the converting credit union, with all the
property, rights, powers, duties, and obligations of each
merging or consolidating credit union or of the converting
credit union, except as affected by the charter and bylaws of
the resulting credit union. A resulting credit union shall be
liable for all liabilities of the merging or consolidating
credit union or converting credit union. All the rights,
franchises, and interests of the merging or consolidating
credit union or converting credit union in and to every species
of property, real, personal, and mixed, and choses in action
thereunto belonging, shall be deemed to be automatically
transferred to and vested in the resulting credit union as a
successor-in-interest without any deed or other transfer, and
the resulting credit union, without any order or other action
on the part of any court or otherwise, shall hold and enjoy the
same and all rights of property, franchises, and interests,
including appointments, designations, and nominations, and all
other rights and interests as trustee, executor,
administrator, registrar or transfer agent of stocks and bonds,
guardian, assignee, receiver, and in every other fiduciary
capacity, in the same manner and to the same extent as was held
and enjoyed by the merging or consolidating credit union or the
converting credit union. Any reference to a merging,
consolidating, or converting credit union in any writing,
whether executed or taking effect before or after the merger,
consolidation, or conversion, shall be deemed a reference to
the resulting credit union if not inconsistent with the other
provisions of the writing.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/27/2012