101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4403

 

Introduced 1/29/2020, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 305/9  from Ch. 17, par. 4410

    Amends the Illinois Credit Union Act. Provides that the Director of the Division of Financial Institutions of the Department of Financial and Professional Regulation may accept an examination of a credit union made by the credit union's share insurer as an alternative to the biennial examination of a credit union conducted by the Department of Financial and Professional Regulation or a public accountant registered by the Department.


LRB101 16225 BMS 65598 b

 

 

A BILL FOR

 

HB4403LRB101 16225 BMS 65598 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Credit Union Act is amended by
5changing Section 9 as follows:
 
6    (205 ILCS 305/9)  (from Ch. 17, par. 4410)
7    Sec. 9. Reports and examinations.
8    (1) Credit unions shall report to the Department on forms
9supplied by the Department, in accordance with a schedule
10published by the Department. A recapitulation of the annual
11reports shall be compiled and published annually by the
12Department, for the use of the General Assembly, credit unions,
13various educational institutions and other interested parties.
14A credit union which fails to file any report when due shall
15pay to the Department a late filing fee for each day the report
16is overdue as prescribed by rule. The Secretary may extend the
17time for filing a report.
18    (2) The Secretary may require special examinations of and
19special financial reports from a credit union or a credit union
20organization in which a credit union loans, invests, or
21delegates substantially all managerial duties and
22responsibilities when he determines that such examinations and
23reports are necessary to enable the Department to determine the

 

 

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1safety of a credit union's operation or its solvency. The cost
2to the Department of the aforesaid special examinations shall
3be borne by the credit union being examined as prescribed by
4rule.
5    (3) All credit unions incorporated under this Act shall be
6examined at least biennially by the Department or, at the
7discretion of the Secretary, by a public accountant registered
8by the Department of Financial and Professional Regulation;
9however, as an alternative to that examination, the Director
10may accept an examination made by the credit union's share
11insurer. The costs of an examination shall be paid by the
12credit union. The scope of all examinations by a public
13accountant shall be at least equal to the examinations made by
14the Department. The examiners shall have full access to, and
15may compel the production of, all the books, papers, securities
16and accounts of any credit union. A special examination shall
17be made by the Department or by a public accountant approved by
18the Department upon written request of 5 or more members, who
19guarantee the expense of the same. Any credit union refusing to
20submit to an examination when ordered by the Department shall
21be reported to the Attorney General, who shall institute
22proceedings to have its charter revoked. If the Secretary
23determines that the examination of a credit union is to be
24conducted by a public accountant registered by the Department
25of Financial and Professional Regulation and the examination is
26done in conjunction with the credit union's external

 

 

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1independent audit of financial statements, the requirements of
2this Section and subsection (3) of Section 34 shall be deemed
3met.
4    (3.5) Pursuant to Section 8, the Secretary shall adopt
5rules that ensure consistency and due process in the
6examination process. The Secretary may also establish
7guidelines that (i) define the scope of the examination process
8and (ii) clarify examination items to be resolved. The rules,
9formal guidance, interpretive interpretative letters, or
10opinions furnished to credit unions by the Secretary may be
11relied upon by the credit unions.
12    (4) A copy of the completed report of examination and a
13review comment letter, if any, citing exceptions revealed
14during the examination, shall be submitted to the credit union
15by the Department. A detailed report stating the corrective
16actions taken by the board of directors on each exception set
17forth in the review comment letter shall be filed with the
18Department within 40 days after the date of the review comment
19letter, or as otherwise directed by the Department. Any credit
20union through its officers, directors, committee members or
21employees, which willfully provides fraudulent or misleading
22information regarding the corrective actions taken on
23exceptions appearing in a review comment letter may have its
24operations restricted to the collection of principal and
25interest on loans outstanding and the payment of normal
26expenses and salaries until all exceptions are corrected and

 

 

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1accepted by the Department.
2(Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14;
3revised 8-23-19.)