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Public Act 92-0293
HB3008 Enrolled LRB9203170JSpcA
AN ACT concerning credit unions.
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 10, 12, 51, 59, and 70 as follows:
(205 ILCS 305/10) (from Ch. 17, par. 4411)
Sec. 10. Credit union records; member financial records.
(1) A credit union shall establish and maintain books,
records, accounting systems and procedures which accurately
reflect its operations and which enable the Department to
readily ascertain the true financial condition of the credit
union and whether it is complying with this Act.
(2) A photostatic or photographic reproduction of any
credit union records shall be admissible as evidence of
transactions with the credit union.
(3) (a) For the purpose of this Section, the term
"financial records" means any original, any copy, or any
summary of (1) a document granting signature authority
over an account, (2) a statement, ledger card or other
record on any account which shows each transaction in or
with respect to that account, (3) a check, draft or money
order drawn on a financial institution or other entity or
issued and payable by or through a financial institution
or other entity, or (4) any other item containing
information pertaining to any relationship established in
the ordinary course of business between a credit union
and its member, including financial statements or other
financial information provided by the member.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or
maintenance of any financial records by any officer,
employee or agent of a credit union having custody
of such records, or the examination of such records
by a certified public accountant engaged by the
credit union to perform an independent audit;
(2) The examination of any financial records
by or the furnishing of financial records by a
credit union to any officer, employee or agent of
the Department, the National Credit Union
Administration, Federal Reserve board or any insurer
of share accounts for use solely in the exercise of
his duties as an officer, employee or agent;
(3) The publication of data furnished from
financial records relating to members where the data
cannot be identified to any particular customer of
account;
(4) The making of reports or returns required
under Chapter 61 of the Internal Revenue Code of
1954;
(5) Furnishing information concerning the
dishonor of any negotiable instrument permitted to
be disclosed under the Uniform Commercial Code;
(6) The exchange in the regular course of
business of (i) credit information between a credit
union and other credit unions or financial
institutions or commercial enterprises, directly or
through a consumer reporting agency or (ii)
financial records or information derived from
financial records between a credit union and other
credit unions or financial institutions or
commercial enterprises for the purpose of conducting
due diligence pursuant to a merger or a purchase or
sale of assets or liabilities of the credit union;
(7) The furnishing of information to the
appropriate law enforcement authorities where the
credit union reasonably believes it has been the
victim of a crime;
(8) The furnishing of information pursuant to
the Uniform Disposition of Unclaimed Property Act;
(9) The furnishing of information pursuant to
the Illinois Income Tax Act and the Illinois Estate
and Generation-Skipping Transfer Tax Act;
(10) The furnishing of information pursuant to
the federal "Currency and Foreign Transactions
Reporting Act", Title 31, United States Code,
Section 1051 et sequentia; or
(11) The furnishing of information pursuant to
any other statute which by its terms or by
regulations promulgated thereunder requires the
disclosure of financial records other than by
subpoena, summons, warrant or court order.
(12) The furnishing of information in
accordance with the federal Personal Responsibility
and Work Opportunity Reconciliation Act of 1996. Any
credit union governed by this Act shall enter into
an agreement for data exchanges with a State agency
provided the State agency pays to the credit union a
reasonable fee not to exceed its actual cost
incurred. A credit union providing information in
accordance with this item shall not be liable to any
account holder or other person for any disclosure of
information to a State agency, for encumbering or
surrendering any assets held by the credit union in
response to a lien or order to withhold and deliver
issued by a State agency, or for any other action
taken pursuant to this item, including individual or
mechanical errors, provided the action does not
constitute gross negligence or willful misconduct. A
credit union shall have no obligation to hold,
encumber, or surrender assets until it has been
served with a subpoena, summons, warrant, court or
administrative order, lien, or levy.
(13) The furnishing of information to law
enforcement authorities, the Illinois Department on
Aging and its regional administrative and provider
agencies, the Department of Human Services Office of
Inspector General, or public guardians, if the
credit union suspects that a member who is an
elderly or disabled person has been or may become
the victim of financial exploitation. For the
purposes of this item (13), the term: (i) "elderly
person" means a person who is 60 or more years of
age, (ii) "disabled person" means a person who has
or reasonably appears to the credit union to have a
physical or mental disability that impairs his or
her ability to seek or obtain protection from or
prevent financial exploitation, and (iii) "financial
exploitation" means tortious or illegal use of the
assets or resources of an elderly or disabled
person, and includes, without limitation,
misappropriation of the elderly or disabled person's
assets or resources by undue influence, breach of
fiduciary relationship, intimidation, fraud,
deception, extortion, or the use of assets or
resources in any manner contrary to law. A credit
union or person furnishing information pursuant to
this item (13) shall be entitled to the same rights
and protections as a person furnishing information
under the Elder Abuse and Neglect Act and the
Illinois Domestic Violence Act of 1986.
(14) The disclosure of financial records or
information as necessary to effect, administer, or
enforce a transaction requested or authorized by the
member, or in connection with:
(A) servicing or processing a financial
product or service requested or authorized by
the member;
(B) maintaining or servicing a member's
account with the credit union; or
(C) a proposed or actual securitization
or secondary market sale (including sales of
servicing rights) related to a transaction of a
member.
Nothing in this item (14), however, authorizes the
sale of the financial records or information of a member
without the consent of the member.
(c) Except as otherwise provided by this Act, a credit
union may not disclose to any person, except to the member or
his duly authorized agent, any financial records relating to
that member of the credit union unless:
(1) the member has authorized disclosure to the
person;
(2) the financial records are disclosed in response
to a lawful subpoena, summons, warrant or court order
that meets the requirements of subparagraph (d) of this
Section; or
(3) the credit union is attempting to collect an
obligation owed to the credit union and the credit union
complies with the provisions of Section 2I of the
Consumer Fraud and Deceptive Business Practices Act.
(d) A credit union shall disclose financial records
under subparagraph (c)(2) of this Section pursuant to a
lawful subpoena, summons, warrant or court order only after
the credit union mails a copy of the subpoena, summons,
warrant or court order to the person establishing the
relationship with the credit union, if living, and otherwise
his personal representative, if known, at his last known
address by first class mail, postage prepaid unless the
credit union is specifically prohibited from notifying the
person by order of court or by applicable State or federal
law. In the case of a grand jury subpoena, a credit union
shall not mail a copy of a subpoena to any person pursuant to
this subsection if the subpoena was issued by a grand jury
under the Statewide Grand Jury Act or notifying the person
would constitute a violation of the federal Right to
Financial Privacy Act of 1978.
(e) (1) Any officer or employee of a credit union who
knowingly and wilfully furnishes financial records in
violation of this Section is guilty of a business offense
and upon conviction thereof shall be fined not more than
$1,000.
(2) Any person who knowingly and wilfully induces
or attempts to induce any officer or employee of a credit
union to disclose financial records in violation of this
Section is guilty of a business offense and upon
conviction thereof shall be fined not more than $1,000.
(f) A credit union shall be reimbursed for costs which
are reasonably necessary and which have been directly
incurred in searching for, reproducing or transporting books,
papers, records or other data of a member required or
requested to be produced pursuant to a lawful subpoena,
summons, warrant or court order. The Director may determine,
by rule, the rates and conditions under which payment shall
be made. Delivery of requested documents may be delayed
until final reimbursement of all costs is received.
(Source: P.A. 90-18, eff. 7-1-97; 91-929, eff. 12-15-00.)
(205 ILCS 305/12) (from Ch. 17, par. 4413)
Sec. 12. Regulatory fees for examination and
administration.
(1) A credit union regulated by the Department shall pay
a regulatory fee to the Department based upon its total
assets as shown by its Year-end Call Report at the following
rates:
TOTAL ASSETS REGULATORY FEE
$25,000 or less .............. $100
Over $25,000 and not over
$100,000 ..................... $100 plus $4 per $1,000 of
assets in excess of $25,000
Over $100,000 and not over
$200,000 ..................... $400 plus $3 per $1,000 of
assets in excess of $100,000
Over $200,000 and not over
$500,000 ..................... $700 plus $2 per $1,000 of
assets in excess of $200,000
Over $500,000 and not over
$1,000,000 ................... $1,300 plus $1.40 per $1,000
of assets in excess of
$500,000
Over $1,000,000 and not
over $5,000,000............... $2,000 plus $0.50 per
$1,000 of assets in
excess of $1,000,000
Over $5,000,000 and not
over $30,000,000 ............. $4,000 plus $0.35
per $1,000 assets
in excess of $5,000,000
Over $30,000,000 and not
over $100,000,000 ............ $12,750 plus $0.30
per $1,000 of assets in
excess of $30,000,000
Over $100,000,000 and not
over $500,000,000 ............ $33,750 plus $0.15 per
$1,000 of assets in excess
of $100,000,000
Over $500,000,000 ............ $93,750 plus $0.05 per
$1,000 of assets in excess
of $500,000,000
(2) The Director shall review the regulatory fee
schedule in subsection (1) and the projected earnings on
those fees on an annual basis and adjust the fee schedule no
more than 5% annually if necessary to defray the estimated
administrative and operational expenses of the Department as
defined in subsection (5). The Director shall provide credit
unions with written notice of any adjustment made in the
regulatory fee schedule.
(3) Not later than March 1 of each calendar year, a
credit union shall pay to the Department, for the preceding
calendar year, a regulatory fee for that calendar year in
accordance with the regulatory fee schedule in subsection
(1), on the basis of assets as of the Year-end Call Report of
the preceding year. The regulatory fee shall not be less
than $100 or more than $125,000, provided that the regulatory
fee cap of $125,000 shall be adjusted to incorporate the same
percentage increase as the Director makes in the regulatory
fee schedule from time to time under subsection (2). No
regulatory fee shall be collected from a credit union until
it has been in operation for one year.
(4) The aggregate of all fees collected by the
Department under this Act shall be paid promptly after they
are received receipt of the same, accompanied by a detailed
statement thereof, into the State Treasury and shall be set
apart in the Credit Union Fund, a special fund hereby created
in the State treasury. The amount from time to time
deposited in the Credit Union Fund and shall be used to
offset the ordinary administrative and operational expenses
of the Department under this Act. All earnings received from
investments of funds in the Credit Union Fund shall be
deposited into the Credit Union Fund and may be used for the
same purposes as fees deposited into that Fund.
(5) The administrative and operational expenses for any
calendar year shall mean the ordinary and contingent expenses
for that year incidental to making the examinations provided
for by, and for administering, this Act, including all
salaries and other compensation paid for personal services
rendered for the State by officers or employees of the State
to enforce this Act; all expenditures for telephone and
telegraph charges, postage and postal charges, office
supplies and services, furniture and equipment, office space
and maintenance thereof, travel expenses and other necessary
expenses; all to the extent that such expenditures are
directly incidental to such examination or administration.
(6) When the aggregate of all fees collected by the
Department under this Act and all earnings thereon for any
calendar year exceeds 150% of the total administrative and
operational expenses under this Act for that year, such
excess shall be credited to credit unions and applied against
their regulatory fees for the subsequent year. The amount
credited to a credit union shall be in the same proportion as
the fee paid by such credit union for the calendar year in
which the excess is produced bears to the aggregate of the
fees collected by the Department under this Act for the same
year.
(7) Examination fees for the year 2000 statutory
examinations paid pursuant to the examination fee schedule in
effect at that time shall be credited toward the regulatory
fee to be assessed the credit union in calendar year 2001.
(8) Nothing in this Act shall prohibit the General
Assembly from appropriating funds to the Department from the
General Revenue Fund for the purpose of administering this
Act.
(Source: P.A. 91-755, eff. 1-1-01.)
(205 ILCS 305/51) (from Ch. 17, par. 4452)
Sec. 51. Other Loan Programs.
(1) Subject to such rules and regulations as the
Director may promulgate, a credit union may participate in
loans to credit union members jointly with other credit
unions, corporations, or financial institutions. An
originating credit union may originate loans only to its own
members. A participating credit union that is not the
originating lender may participate in loans made to its own
members or to members of another participating credit union.
"Originating lender" means the participating credit union
with which the member contracts. A master participation
agreement must be properly executed, and the agreement must
include provisions for identifying, either through documents
incorporated by reference or directly in the agreement, the
participation loan or loans prior to their sale.
(2) Any credit union with assets of $500,000 or more may
loan to its members under the State Scholarships Law or other
scholarship programs which are subject to a federal or state
law providing 100% repayment guarantee.
(3) A credit union may purchase the conditional sales
contracts, notes and similar instruments which evidence an
indebtedness of its members.
(4) With approval of the Board of Directors, a credit
union may make loans, either on its own or jointly with other
credit unions, corporations or financial institutions, to
credit union organizations; provided, that the aggregate
amount of all such loans outstanding shall not at any time
exceed 1% of the paid-in and unimpaired capital and surplus
of the credit union.
(Source: P.A. 81-329.)
(205 ILCS 305/59) (from Ch. 17, par. 4460)
Sec. 59. Investment of Funds. Funds not used in loans to
members may be invested, pursuant to subsection (7) of
Section 30 of this Act, and subject to Departmental rules and
regulations:
(1) In securities, obligations or other instruments of
or issued by or fully guaranteed as to principal and interest
by the United States of America or any agency thereof or in
any trust or trusts established for investing directly or
collectively in the same;
(2) In obligations of any state of the United States,
the District of Columbia, the Commonwealth of Puerto Rico,
and the several territories organized by Congress, or any
political subdivision thereof; however, a credit union may
not invest more than 10% of its unimpaired capital and
surplus in the obligations of one issuer, exclusive of
general obligations of the issuer, and investments in
municipal securities must be limited to securities rated in
one of the 4 highest rating categories by a nationally
recognized statistical rating organization;
(3) In certificates of deposit or passbook type accounts
issued by a state or national bank, mutual savings bank or
savings and loan association; provided that such institutions
have their accounts insured by the Federal Deposit Insurance
Corporation or the Federal Savings and Loan Insurance
Corporation; but provided, further, that a credit union's
investment in an account in any one institution may exceed
the insured limit on accounts;
(4) In shares, classes of shares or share certificates
of other credit unions, including, but not limited to
corporate credit unions; provided that such credit unions
have their members' accounts insured by the NCUA or other
approved insurers, and that if the members' accounts are so
insured, a credit union's investment may exceed the insured
limit on accounts;
(5) In shares of a cooperative society organized under
the laws of this State or the laws of the United States in
the total amount not exceeding 10% of the unimpaired capital
and surplus of the credit union; provided that such
investment shall first be approved by the Department;
(6) In obligations of the State of Israel, or
obligations fully guaranteed by the State of Israel as to
payment of principal and interest;
(7) In shares, stocks or obligations of other financial
institutions in the total amount not exceeding 5% of the
unimpaired capital and surplus of the credit union;
(8) In federal funds and bankers' acceptances;
(9) In shares or stocks of Credit Union Service
Organizations in the total amount not exceeding 1% of the
unimpaired capital and surplus of the credit union.
As used in this Section, "political subdivision"
includes, but is not limited to, counties, townships, cities,
villages, incorporated towns, school districts, educational
service regions, special road districts, public water supply
districts, fire protection districts, drainage districts,
levee districts, sewer districts, housing authorities, park
districts, and any agency, corporation, or instrumentality of
a state or its political subdivisions, whether now or
hereafter created and whether herein specifically mentioned
or not.
(Source: P.A. 86-432.)
(205 ILCS 305/70) (from Ch. 17, par. 4471)
Sec. 70. Use of name, sentence. No person, firm,
association, partnership, or corporation, except corporations
organized under this Act, the credit union acts of other
states, or under the Federal Credit Union Act, or
associations of such corporations, or subsidiaries of such
associations, may use any name or title which contains the
words "credit union" or any abbreviation thereof, and such
use is a Class A Misdemeanor.
(Source: P.A. 81-329.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 17, 2001.
Approved August 09, 2001.
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