HB3050 EngrossedLRB097 10833 CEL 51313 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 Sections 1.1, 2, 3, 4, 7, 8, 9, 9.1, 10, 10.1, 11, 12,
613, 14, 15, 16, 16.1, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28,
730, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 43.1, 44, 45,
846, 47, 48, 49, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62,
963, 64, 65, 66, 67, 68, 69, 69.1, 70, and 71 as follows:
 
10    (205 ILCS 305/1.1)  (from Ch. 17, par. 4402)
11    Sec. 1.1. Definitions.
12    Credit Union - The term "credit union" means a cooperative,
13non-profit association, incorporated under this Act, under the
14laws of the United States of America or under the laws of
15another state, for the purposes of encouraging thrift among its
16members, creating a source of credit at a reasonable rate of
17interest, and providing an opportunity for its members to use
18and control their own money in order to improve their economic
19and social conditions. The membership of a credit union shall
20consist of a group or groups each having a common bond as set
21forth in this Act.
22    Common Bond - The term "common bond" refers to groups of
23people who meet one of the following qualifications:

 

 

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1        (1) Persons belonging to a specific association, group
2    or organization, such as a church, labor union, club or
3    society and members of their immediate families which shall
4    include any relative by blood or marriage or foster and
5    adopted children.
6        (2) Persons who reside in a reasonably compact and well
7    defined neighborhood or community, and members of their
8    immediate families which shall include any relative by
9    blood or marriage or foster and adopted children.
10        (3) Persons who have a common employer or who are
11    members of an organized labor union or an organized
12    occupational or professional group within a defined
13    geographical area, and members of their immediate families
14    which shall include any relative by blood or marriage or
15    foster and adopted children.
16    Shares - The term "shares" or "share accounts" means any
17form of shares issued by a credit union and established by a
18member in accordance with standards specified by a credit
19union, including but not limited to common shares, share draft
20accounts, classes of shares, share certificates, special
21purpose share accounts, shares issued in trust, custodial
22accounts, and individual retirement accounts or other plans
23established pursuant to Section 401(d) or (f) or Section 408(a)
24of the Internal Revenue Code, as now or hereafter amended, or
25similar provisions of any tax laws of the United States that
26may hereafter exist.

 

 

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1    Credit Union Organization - The term "credit union
2organization" means any organization established to serve the
3needs of credit unions, the business of which relates to the
4daily operations of credit unions.
5    Department - The term "Department" means the Illinois
6Department of Financial and Professional Regulation
7Institutions.
8    Secretary Director - The term "Secretary Director" means
9the Secretary Director of the Illinois Department of Financial
10and Professional Regulation or a person authorized by the
11Secretary or this Act to act in the Secretary's stead
12Institutions, except that beginning on the effective date of
13this amendatory Act of the 95th General Assembly, all
14references in this Act to the Director of the Department of
15Financial Institutions are deemed, in appropriate contexts, to
16be references to the Secretary of Financial and Professional
17Regulation.
18    Division of Financial Institutions - The term "Division of
19Financial Institutions" means the Division of Financial
20Institutions of the Department of Financial and Professional
21Regulation.
22    Director - The term "Director of Financial Institutions"
23means the Director of the Division of Financial Institutions of
24the Department of Financial and Professional Regulation.
25    Office - The term "office" means the Division of Financial
26Institutions of the Department of Financial and Professional

 

 

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1Regulation.
2    NCUA - The term "NCUA" means the National Credit Union
3Administration, an agency of the United States Government
4charged with the supervision of credit unions chartered under
5the laws of the United States of America.
6    Central Credit Union - The term "central credit union"
7means a credit union incorporated primarily to receive shares
8from and make loans to credit unions and directors Directors,
9officers Officers, committee members and employees of credit
10unions. A central credit union may also accept as members
11persons who were members of credit unions which were liquidated
12and persons from occupational groups not otherwise served by
13another credit union.
14    Corporate Credit Union - The term "corporate credit union"
15means a credit union which is a cooperative, non-profit
16association, the membership of which is limited primarily to
17other credit unions.
18    Insolvent - "Insolvent" means the condition that results
19when the total of all liabilities and shares exceeds net assets
20of the credit union.
21    Danger of insolvency - For purposes of Section 61, a credit
22union is in "danger of insolvency" if its net worth to asset
23ratio falls below 2%. In calculating the danger of insolvency
24ratio, secondary capital shall be excluded. For purposes of
25Section 61, a credit union is also in "danger of insolvency" if
26the Department is unable to ascertain, upon examination, the

 

 

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1true financial condition of the credit union.
2    Net Worth - "Net worth" means the retained earnings balance
3of the credit union, as determined under generally accepted
4accounting principles, and forms of secondary capital approved
5by the Secretary and the Director pursuant to rulemaking.
6    Secretary - The term "Secretary" means the Secretary of the
7Department of Financial and Professional Regulation, or a
8person authorized by the Secretary or this Act to act in the
9Secretary's stead.
10(Source: P.A. 95-1047, eff. 4-6-09.)
 
11    (205 ILCS 305/2)  (from Ch. 17, par. 4403)
12    Sec. 2. Organization Procedure.
13    (1) Any 9 or more persons of legal age, the majority of
14whom shall be residents of the State of Illinois, who have a
15common bond referred to in Section 1.1 may organize a credit
16union or a central credit union by complying with this Section.
17    (2) The subscribers shall execute in duplicate Articles of
18Incorporation and agree to the terms thereof, which Articles
19shall state:
20        (a) The name, which shall include the words "credit
21    union" and which shall not be the same as that of any other
22    existing credit union in this state, and the location where
23    the proposed credit union is to have its principal place of
24    business;
25        (b) The common bond of the members of the credit union;

 

 

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1        (c) The par value of the shares of the credit union,
2    which must be at least $5.00;
3        (d) The names, addresses and Social Security numbers of
4    the subscribers to the Articles of Incorporation, and the
5    number and the value of shares subscribed to by each;
6        (e) That the credit union may exercise such incidental
7    powers as are necessary or requisite to enable it to carry
8    on effectively the purposes for which it is incorporated,
9    and those powers which are inherent in the credit union as
10    a legal entity;
11        (f) That the existence of the credit union shall be
12    perpetual.
13    (3) The subscribers shall prepare and adopt bylaws for the
14general government of the credit union, consistent with this
15Act, and execute same in duplicate.
16    (4) The subscribers shall forward the articles Articles of
17incorporation Incorporation, and the bylaws to the Secretary
18Director in duplicate, along with the required charter Charter
19fee. If they conform to the law, and such rules and regulations
20as the Secretary and the Director may prescribe, if the
21Secretary Director determines that a common bond exists, and
22that it is economically advisable to organize the credit union,
23he or she shall within 60 days issue a certificate Certificate
24of approval Approval attached to the articles of incorporation
25Articles and return a copy of the bylaws and the articles of
26incorporation Articles to the applicants or their

 

 

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1representative, which shall be preserved in the permanent files
2of the credit union. The subscribers shall file the certificate
3Certificate of approval Approval, with the articles Articles of
4incorporation Incorporation attached, in the office of the
5recorder (or, if there is no recorder, in the office of the
6county clerk County Clerk) of the county County in which the
7credit union is to locate its principal place of business. The
8recorder or the county clerk County Clerk, as the case may be,
9shall accept and record the documents if they are accompanied
10by the proper fee. When the documents are so recorded, the
11credit union is incorporated under this Act.
12    (5) The subscribers for a credit union charter shall not
13transact any business until the certificate Certificate of
14approval Approval has been received.
15(Source: P.A. 83-358.)
 
16    (205 ILCS 305/3)  (from Ch. 17, par. 4404)
17    Sec. 3. Form of articles Articles and bylaws Bylaws. The
18Secretary Director shall provide, at no charge, a form of
19articles Articles of incorporation Incorporation and a form of
20bylaws which may be used by credit union incorporators for
21their guidance.
22(Source: P.A. 81-329.)
 
23    (205 ILCS 305/4)  (from Ch. 17, par. 4405)
24    Sec. 4. Amendments to articles Articles of incorporation

 

 

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1Incorporation and bylaws Bylaws. Amendments to the articles
2Articles of incorporation Incorporation may be made by the
3members at any regular or special meeting, if the proposed
4amendment is set forth in the call of the meeting and is
5approved by at least two thirds of the members present at a
6meeting at which a quorum is present. Amendments to the bylaws
7may be made by the members at any regular or special meeting,
8if the proposed amendment is set forth in the call for the
9meeting and is approved by a majority of the members present at
10a meeting at which a quorum is present. Amendments to the
11bylaws may also be made by the board of directors Board of
12Directors at any regular or special meeting, if the proposed
13amendment is set forth in the call of the meeting and approved
14by at least two thirds of the directors Directors present at a
15meeting at which a quorum is present. A report shall be made to
16the members at the next annual meeting of any amendments to the
17bylaws adopted by the board of directors Board of Directors.
18Any amendment to the articles Articles of incorporation
19Incorporation or bylaws of a credit union shall be approved by
20the Secretary Director before the amendment is effective. The
21Secretary Director shall approve or disapprove of any
22amendments within 60 days after submission to him or her.
23(Source: P.A. 81-329.)
 
24    (205 ILCS 305/7)  (from Ch. 17, par. 4408)
25    Sec. 7. Reciprocity - out of state credit unions.

 

 

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1    (1) A credit union organized and duly chartered as a credit
2union in another state shall be permitted to conduct business
3as a credit union in this state if and so long as a credit union
4chartered under the laws of this state is permitted to do
5business in such other state, provided that:
6        (a) The credit union shall register with the office
7    Director prior to operating in this State, on a form
8    specified by the Secretary Director.
9        (b) The credit union may be required to pay a
10    registration fee in accordance with rules promulgated by
11    the Secretary and the Director.
12        (c) The credit union shall comply with rules
13    promulgated by the Secretary Director concerning the
14    operation of out of state credit unions in this State.
15        (d) The credit union shall not conduct business in
16    Illinois on terms that are less restrictive than the
17    standards applicable to its operation in its home
18    chartering state. In every instance with respect to its
19    activities and operations in Illinois, the credit union
20    shall comply with applicable Illinois law.
21        (e) Permission to operate in the State may be revoked
22    by the Secretary or the Director if the credit union
23    engages in any activity in the State that would constitute
24    (i) a violation of this Act or other applicable law, (ii) a
25    violation of any rule adopted in accordance with this Act
26    or other applicable law, (iii) a violation of any order of

 

 

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1    the Secretary or Director issued under his or her authority
2    under this Act, or (iv) an unsafe or unsound practice in
3    the discretion of the Secretary or Director.
4    (2) It is intended that the legal existence of credit
5unions chartered under this Act be recognized beyond the limits
6of this State and that, subject to any reasonable registration
7requirements, any credit union transacting business outside of
8this State be granted the protection of full faith and credit
9under Section 1 of Article IV of the Constitution of the United
10States.
11(Source: P.A. 92-608, eff. 7-1-02.)
 
12    (205 ILCS 305/8)  (from Ch. 17, par. 4409)
13    Sec. 8. Secretary's Director's powers and duties. Credit
14unions are regulated by the Department. The Secretary Director,
15in executing the powers and discharging the duties vested by
16law in the Department has the following powers and duties:
17        (1) To exercise the rights, powers and duties set forth
18    in this Act or any related Act. The Director shall oversee
19    the functions of the Division and report to the Secretary,
20    with respect to the Director's exercise of any of the
21    rights, powers, and duties vested by law in the Secretary
22    under this Act. All references in this Act to the Secretary
23    shall be deemed to include the Director, as a person
24    authorized by the Secretary or this Act to assume
25    responsibility for the oversight of the functions of the

 

 

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1    Department relating to the regulatory supervision of
2    credit unions under this Act.
3        (2) To prescribe rules and regulations for the
4    administration of this Act. The provisions of the Illinois
5    Administrative Procedure Act are hereby expressly adopted
6    and incorporated herein as though a part of this Act, and
7    shall apply to all administrative rules and procedures of
8    the Department under this Act.
9        (3) To direct and supervise all the administrative and
10    technical activities of the Department including the
11    employment of a Credit Union Supervisor who shall have
12    knowledge in the theory and practice of, or experience in,
13    the operations or supervision of financial institutions,
14    preferably credit unions, and such other persons as are
15    necessary to carry out his functions. The Secretary
16    Director shall ensure that all examiners appointed or
17    assigned to examine the affairs of State-chartered credit
18    unions possess the necessary training and continuing
19    education to effectively execute their jobs.
20        (4) To issue cease and desist orders when in the
21    opinion of the Secretary Director, a credit union is
22    engaged or has engaged, or the Secretary Director has
23    reasonable cause to believe the credit union is about to
24    engage, in an unsafe or unsound practice, or is violating
25    or has violated or the Secretary Director has reasonable
26    cause to believe is about to violate a law, rule or

 

 

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1    regulation or any condition imposed in writing by the
2    Department.
3        (5) To suspend from office and to prohibit from further
4    participation in any manner in the conduct of the affairs
5    of his credit union any director, officer or committee
6    member who has committed any violation of a law, rule,
7    regulation or of a cease and desist order or who has
8    engaged or participated in any unsafe or unsound practice
9    in connection with the credit union or who has committed or
10    engaged in any act, omission, or practice which constitutes
11    a breach of his fiduciary duty as such director, officer or
12    committee member, when the Secretary Director has
13    determined that such action or actions have resulted or
14    will result in substantial financial loss or other damage
15    that seriously prejudices the interests of the members.
16        (6) To assess a civil penalty against a credit union
17    for a violation of this Act, any rule adopted in accordance
18    with this Act, any order of the Secretary issued under his
19    or her authority under this Act, or any other action that
20    in the Secretary's discretion is an unsafe or unsound
21    practice provided that:
22            (A) before a civil penalty is assessed under this
23        item (6), the credit union must be expressly advised in
24        writing of the:
25                (i) specific violation that could subject it
26            to a penalty under this item (6); and

 

 

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1                (ii) the specific remedial action to be taken
2            within a specific and reasonable time frame to
3            avoid imposition of the penalty.
4            (B) a credit union's failure to take timely
5        remedial action with respect to the specific violation
6        may result in the issuance of an order assessing a
7        civil penalty up to the following maximum amount, based
8        upon the total assets of the credit union:
9                (i) Credit unions with assets of less than $10
10            million................................................$1,000
11                (ii) Credit unions with assets of at least $10
12            million and less than $50 million......................$2,500
13                (iii) Credit unions with assets of at least $50
14            million and less than $100 million.....................$5,000
15                (iv) Credit unions with assets of at least $100
16            million and less than $500 million....................$10,000
17                (v) Credit unions with assets of at least $500
18            million and less than $1 billion......................$25,000
19                (vi) Credit unions with assets of $1 billion
20            and greater..........................................$50,000;
21            (C) an order assessing a civil penalty under this
22        item (6) shall take effect upon service of the order,
23        unless the credit union makes a written request for a
24        hearing under 38 IL. Adm. Code 190.20 of the
25        Department's rules for credit unions within 90 days
26        after issuance of the order. In that event, the order

 

 

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1        shall be stayed until a final administrative order is
2        entered; and
3            (D) in the event a credit union commits a
4        subsequent violation that is substantially similar to
5        the initial violation for which a cure period under
6        paragraph (A) of this item (6) was provided the credit
7        union, no additional cure period shall be required
8        before another order is issued assessing a civil
9        penalty for the subsequent violation. Any such order
10        shall take effect upon service of the order, subject to
11        the credit union's right to request a hearing as
12        described in paragraph (C) of this item (6). If a
13        hearing is requested, the order shall be stayed until a
14        final administrative order is entered.
15        This item (6) shall not apply to violations separately
16    addressed in rules as authorized under item (7) of this
17    Section.
18        (7) (6) Except for the fees established in this Act, to
19    prescribe, by rule and regulation, fees and penalties for
20    preparing, approving, and filing reports and other
21    documents; furnishing transcripts; holding hearings;
22    investigating applications for permission to organize,
23    merge, or convert; failure to maintain accurate books and
24    records to enable the Department to conduct an examination;
25    and taking supervisory actions.
26        (8) (7) To destroy, in his discretion, any or all books

 

 

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1    and records of any credit union in his possession or under
2    his control after the expiration of three years from the
3    date of cancellation of the charter of such credit unions.
4        (9) (8) To make investigations and to conduct research
5    and studies and to publish some of the problems of persons
6    in obtaining credit at reasonable rates of interest and of
7    the methods and benefits of cooperative saving and lending
8    for such persons.
9        (10) (9) To authorize, foster or establish
10    experimental, developmental, demonstration or pilot
11    projects by public or private organizations including
12    credit unions which:
13            (a) promote more effective operation of credit
14        unions so as to provide members an opportunity to use
15        and control their own money to improve their economic
16        and social conditions; or
17            (b) are in the best interests of credit unions,
18        their members and the people of the State of Illinois.
19        (11) (10) To cooperate in studies, training or other
20    administrative activities with, but not limited to, the
21    NCUA, other state credit union regulatory agencies and
22    industry trade associations in order to promote more
23    effective and efficient supervision of Illinois chartered
24    credit unions.
25(Source: P.A. 95-98, eff. 8-13-07.)
 

 

 

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1    (205 ILCS 305/9)  (from Ch. 17, par. 4410)
2    Sec. 9. Reports and examinations.
3    (1) Credit unions shall report to the Department on forms
4supplied by the Department, in accordance with a schedule
5published by the Department. A recapitulation of the annual
6reports Annual Reports shall be compiled and published annually
7by the Department, for the use of the General Assembly, credit
8unions, various educational institutions and other interested
9parties. A credit union which fails to file any report when due
10shall pay to the Department a late filing fee for each day the
11report is overdue as prescribed by rule. The Secretary Director
12may extend the time for filing a report.
13    (2) The Secretary Director may require special
14examinations of and special financial reports from a credit
15union or a credit union organization in which a credit union
16loans, invests, or delegates substantially all managerial
17duties and responsibilities when he determines that such
18examinations and reports are necessary to enable the Department
19to determine the safety of a credit union's operation or its
20solvency. The cost to the Department of the aforesaid special
21examinations shall be borne by the credit union being examined
22as prescribed by rule.
23    (3) All credit unions incorporated under this Act shall be
24examined at least biennially by the Department or, at the
25discretion of the Secretary Director, by a public accountant
26registered by the Department of Financial and Professional

 

 

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1Regulation. The costs of an examination shall be paid by the
2credit union. The scope of all examinations by a public
3accountant shall be at least equal to the examinations made by
4the Department. The examiners shall have full access to, and
5may compel the production of, all the books, papers, securities
6and accounts of any credit union. A special examination shall
7be made by the Department or by a public accountant approved by
8the Department upon written request of 5 or more members, who
9guarantee the expense of the same. Any credit union refusing to
10submit to an examination when ordered by the Department shall
11be reported to the Attorney General, who shall institute
12proceedings to have its charter revoked. If the Secretary
13Director determines that the examination of a credit union is
14to be conducted by a public accountant registered by the
15Department of Financial and Professional Regulation and the
16examination is done in conjunction with the credit union's
17external independent audit of financial statements, the
18requirements of this Section and subsection (3) of Section 34
19shall be deemed met.
20    (4) A copy of the completed report of examination and a
21review comment letter, if any, citing exceptions revealed
22during the examination, shall be submitted to the credit union
23by the Department. A detailed report stating the corrective
24actions taken by the board of directors Board of Directors on
25each exception set forth in the review comment letter shall be
26filed with the Department within 40 days after the date of the

 

 

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1review comment letter, or as otherwise directed by the
2Department. Any credit union through its officers, directors,
3committee members or employees, which willfully provides
4fraudulent or misleading information regarding the corrective
5actions taken on exceptions appearing in a review comment
6letter may have its operations restricted to the collection of
7principal and interest on loans outstanding and the payment of
8normal expenses and salaries until all exceptions are corrected
9and accepted by the Department.
10(Source: P.A. 91-755, eff. 1-1-01; 92-608, eff. 7-1-02.)
 
11    (205 ILCS 305/9.1)
12    Sec. 9.1. Disclosures of reports of examinations and
13confidential supervisory information; limitations.
14    (1) Any report of examination, visitation, or
15investigation prepared by the Secretary Director under this Act
16or by the state regulatory authority charged with enforcing the
17Electronic Fund Transfer Act or the Corporate Fiduciary Act or
18by the state regulatory authority of another state that
19examines an office of an Illinois credit union in that state,
20any document or record prepared or obtained in connection with
21or relating to any examination, visitation, or investigation,
22and any record prepared or obtained by the Secretary Director
23to the extent that the record summarizes or contains
24information derived from any report, document, or record
25described in this subsection shall be deemed "confidential

 

 

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1supervisory information". Confidential supervisory information
2shall not include any information or record routinely prepared
3by a credit union and maintained in the ordinary course of
4business or any information or record that is required to be
5made publicly available pursuant to State or federal law or
6rule.
7    (2) Confidential supervisory information is privileged
8from discovery and shall only be disclosed under the
9circumstances and for the purposes set forth in this Section.
10    (3) Relevant confidential supervisory information may be
11disclosed under a statute that by its terms or by rules
12promulgated thereunder requires the disclosure of confidential
13supervisory information other than by subpoena, summons,
14warrant, or court order; to the appropriate law enforcement
15authorities when the Secretary Director or the credit union
16reasonably believes the credit union, which the Secretary
17Director has caused to be examined, has been a victim of a
18crime; to other agencies or entities having a legitimate
19regulatory interest; to the credit union's board, officers,
20retained professionals, and insurers; to persons seeking to
21merge with or purchase all or part of the assets of the credit
22union; and where disclosure is otherwise required for the
23benefit of the credit union. Disclosure of confidential
24supervisory information to these persons does not constitute a
25waiver of the legal privilege otherwise available with respect
26to the information.

 

 

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1    (4) A person to whom confidential supervisory information
2is disclosed shall not further disseminate confidential
3supervisory information.
4    (5) (a) Any person upon whom a demand for production of
5confidential supervisory information is made, whether by
6subpoena, order, or other judicial or administrative process,
7must withhold production of the confidential supervisory
8information and must notify the Secretary Director of the
9demand, at which time the Secretary Director is authorized to
10intervene for the purpose of enforcing the limitations of this
11Section or seeking the withdrawal or termination of the attempt
12to compel production of the confidential supervisory
13information.
14    (b) Any request for discovery or disclosure of confidential
15supervisory information, whether by subpoena, order, or other
16judicial or administrative process, shall be made to the
17Secretary Director, and the Secretary Director shall determine
18within 15 days whether to disclose the information pursuant to
19procedures and standards that the Secretary Director shall
20establish by rule. If the Secretary Director determines that
21such information will not be disclosed, the Secretary's
22Director's decision shall be subject to judicial review under
23the provisions of the Administrative Review Law, and venue
24shall be in either Sangamon County or Cook County.
25    (c) Any court order that compels disclosure of confidential
26supervisory information may be immediately appealed by the

 

 

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1Secretary Director, and the order shall be automatically stayed
2pending the outcome of the appeal.
3(Source: P.A. 92-608, eff. 7-1-02.)
 
4    (205 ILCS 305/10)  (from Ch. 17, par. 4411)
5    Sec. 10. Credit union records; member financial records.
6    (1) A credit union shall establish and maintain books,
7records, accounting systems and procedures which accurately
8reflect its operations and which enable the Department to
9readily ascertain the true financial condition of the credit
10union and whether it is complying with this Act.
11    (2) A photostatic or photographic reproduction of any
12credit union records shall be admissible as evidence of
13transactions with the credit union.
14    (3)(a) For the purpose of this Section, the term "financial
15records" means any original, any copy, or any summary of (1) a
16document granting signature authority over an account, (2) a
17statement, ledger card or other record on any account which
18shows each transaction in or with respect to that account, (3)
19a check, draft or money order drawn on a financial institution
20or other entity or issued and payable by or through a financial
21institution or other entity, or (4) any other item containing
22information pertaining to any relationship established in the
23ordinary course of business between a credit union and its
24member, including financial statements or other financial
25information provided by the member.

 

 

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1    (b) This Section does not prohibit:
2        (1) The preparation, examination, handling or
3    maintenance of any financial records by any officer,
4    employee or agent of a credit union having custody of such
5    records, or the examination of such records by a certified
6    public accountant engaged by the credit union to perform an
7    independent audit.
8        (2) The examination of any financial records by or the
9    furnishing of financial records by a credit union to any
10    officer, employee or agent of the Department, the National
11    Credit Union Administration, Federal Reserve board or any
12    insurer of share accounts for use solely in the exercise of
13    his duties as an officer, employee or agent.
14        (3) The publication of data furnished from financial
15    records relating to members where the data cannot be
16    identified to any particular customer of account.
17        (4) The making of reports or returns required under
18    Chapter 61 of the Internal Revenue Code of 1954.
19        (5) Furnishing information concerning the dishonor of
20    any negotiable instrument permitted to be disclosed under
21    the Uniform Commercial Code.
22        (6) The exchange in the regular course of business of
23    (i) credit information between a credit union and other
24    credit unions or financial institutions or commercial
25    enterprises, directly or through a consumer reporting
26    agency or (ii) financial records or information derived

 

 

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1    from financial records between a credit union and other
2    credit unions or financial institutions or commercial
3    enterprises for the purpose of conducting due diligence
4    pursuant to a merger or a purchase or sale of assets or
5    liabilities of the credit union.
6        (7) The furnishing of information to the appropriate
7    law enforcement authorities where the credit union
8    reasonably believes it has been the victim of a crime.
9        (8) The furnishing of information pursuant to the
10    Uniform Disposition of Unclaimed Property Act.
11        (9) The furnishing of information pursuant to the
12    Illinois Income Tax Act and the Illinois Estate and
13    Generation-Skipping Transfer Tax Act.
14        (10) The furnishing of information pursuant to the
15    federal "Currency and Foreign Transactions Reporting Act",
16    Title 31, United States Code, Section 1051 et sequentia.
17        (11) The furnishing of information pursuant to any
18    other statute which by its terms or by regulations
19    promulgated thereunder requires the disclosure of
20    financial records other than by subpoena, summons, warrant
21    or court order.
22        (12) The furnishing of information in accordance with
23    the federal Personal Responsibility and Work Opportunity
24    Reconciliation Act of 1996. Any credit union governed by
25    this Act shall enter into an agreement for data exchanges
26    with a State agency provided the State agency pays to the

 

 

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1    credit union a reasonable fee not to exceed its actual cost
2    incurred. A credit union providing information in
3    accordance with this item shall not be liable to any
4    account holder or other person for any disclosure of
5    information to a State agency, for encumbering or
6    surrendering any assets held by the credit union in
7    response to a lien or order to withhold and deliver issued
8    by a State agency, or for any other action taken pursuant
9    to this item, including individual or mechanical errors,
10    provided the action does not constitute gross negligence or
11    willful misconduct. A credit union shall have no obligation
12    to hold, encumber, or surrender assets until it has been
13    served with a subpoena, summons, warrant, court or
14    administrative order, lien, or levy.
15        (13) The furnishing of information to law enforcement
16    authorities, the Illinois Department on Aging and its
17    regional administrative and provider agencies, the
18    Department of Human Services Office of Inspector General,
19    or public guardians: (i) upon subpoena by the investigatory
20    entity or the guardian, or (ii) if there is suspicion by
21    the credit union that a member who is an elderly or
22    disabled person has been or may become the victim of
23    financial exploitation. For the purposes of this item (13),
24    the term: (i) "elderly person" means a person who is 60 or
25    more years of age, (ii) "disabled person" means a person
26    who has or reasonably appears to the credit union to have a

 

 

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1    physical or mental disability that impairs his or her
2    ability to seek or obtain protection from or prevent
3    financial exploitation, and (iii) "financial exploitation"
4    means tortious or illegal use of the assets or resources of
5    an elderly or disabled person, and includes, without
6    limitation, misappropriation of the elderly or disabled
7    person's assets or resources by undue influence, breach of
8    fiduciary relationship, intimidation, fraud, deception,
9    extortion, or the use of assets or resources in any manner
10    contrary to law. A credit union or person furnishing
11    information pursuant to this item (13) shall be entitled to
12    the same rights and protections as a person furnishing
13    information under the Elder Abuse and Neglect Act, the
14    Illinois Domestic Violence Act of 1986, and the Abuse of
15    Adults with Disabilities Intervention Act.
16        (14) The disclosure of financial records or
17    information as necessary to effect, administer, or enforce
18    a transaction requested or authorized by the member, or in
19    connection with:
20            (A) servicing or processing a financial product or
21        service requested or authorized by the member;
22            (B) maintaining or servicing a member's account
23        with the credit union; or
24            (C) a proposed or actual securitization or
25        secondary market sale (including sales of servicing
26        rights) related to a transaction of a member.

 

 

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1        Nothing in this item (14), however, authorizes the sale
2    of the financial records or information of a member without
3    the consent of the member.
4        (15) The disclosure of financial records or
5    information as necessary to protect against or prevent
6    actual or potential fraud, unauthorized transactions,
7    claims, or other liability.
8        (16)(a) The disclosure of financial records or
9    information related to a private label credit program
10    between a financial institution and a private label party
11    in connection with that private label credit program. Such
12    information is limited to outstanding balance, available
13    credit, payment and performance and account history,
14    product references, purchase information, and information
15    related to the identity of the customer.
16        (b)(l) For purposes of this paragraph (16) of
17    subsection (b) of Section 10, a "private label credit
18    program" means a credit program involving a financial
19    institution and a private label party that is used by a
20    customer of the financial institution and the private label
21    party primarily for payment for goods or services sold,
22    manufactured, or distributed by a private label party.
23        (2) For purposes of this paragraph (16) of subsection
24    (b) of Section 10, a "private label party" means, with
25    respect to a private label credit program, any of the
26    following: a retailer, a merchant, a manufacturer, a trade

 

 

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1    group, or any such person's affiliate, subsidiary, member,
2    agent, or service provider.
3    (c) Except as otherwise provided by this Act, a credit
4union may not disclose to any person, except to the member or
5his duly authorized agent, any financial records relating to
6that member of the credit union unless:
7        (1) the member has authorized disclosure to the person;
8        (2) the financial records are disclosed in response to
9    a lawful subpoena, summons, warrant, citation to discover
10    assets, or court order that meets the requirements of
11    subparagraph (d) of this Section; or
12        (3) the credit union is attempting to collect an
13    obligation owed to the credit union and the credit union
14    complies with the provisions of Section 2I of the Consumer
15    Fraud and Deceptive Business Practices Act.
16    (d) A credit union shall disclose financial records under
17subparagraph (c)(2) of this Section pursuant to a lawful
18subpoena, summons, warrant, citation to discover assets, or
19court order only after the credit union mails a copy of the
20subpoena, summons, warrant, citation to discover assets, or
21court order to the person establishing the relationship with
22the credit union, if living, and otherwise his personal
23representative, if known, at his last known address by first
24class mail, postage prepaid unless the credit union is
25specifically prohibited from notifying the person by order of
26court or by applicable State or federal law. In the case of a

 

 

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1grand jury subpoena, a credit union shall not mail a copy of a
2subpoena to any person pursuant to this subsection if the
3subpoena was issued by a grand jury under the Statewide Grand
4Jury Act or notifying the person would constitute a violation
5of the federal Right to Financial Privacy Act of 1978.
6    (e)(1) Any officer or employee of a credit union who
7knowingly and wilfully furnishes financial records in
8violation of this Section is guilty of a business offense and
9upon conviction thereof shall be fined not more than $1,000.
10    (2) Any person who knowingly and wilfully induces or
11attempts to induce any officer or employee of a credit union to
12disclose financial records in violation of this Section is
13guilty of a business offense and upon conviction thereof shall
14be fined not more than $1,000.
15    (f) A credit union shall be reimbursed for costs which are
16reasonably necessary and which have been directly incurred in
17searching for, reproducing or transporting books, papers,
18records or other data of a member required or requested to be
19produced pursuant to a lawful subpoena, summons, warrant,
20citation to discover assets, or court order. The Secretary and
21the Director may determine, by rule, the rates and conditions
22under which payment shall be made. Delivery of requested
23documents may be delayed until final reimbursement of all costs
24is received.
25(Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06;
2695-661, eff. 1-1-08.)
 

 

 

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1    (205 ILCS 305/10.1)
2    Sec. 10.1. Retention of records. Unless a federal law
3requires otherwise, the Secretary and the Director may by rule
4prescribe periods of time for which credit unions operating
5under this Act must retain records and after the expiration of
6which the credit union may destroy those records. No liability
7shall accrue against the credit union, the Secretary Director,
8or this State for the destruction of records according to rules
9of the Secretary Director promulgated under the authority of
10this Section. In any cause or proceeding in which any records
11may be called in question or be demanded from any credit union,
12a showing of the expiration of the period so prescribed shall
13be sufficient excuse for failure to produce them.
14(Source: P.A. 92-608, eff. 7-1-02.)
 
15    (205 ILCS 305/11)  (from Ch. 17, par. 4412)
16    Sec. 11. Board of credit union advisors Credit Union
17Advisors.
18    (1) There shall be a board Board of credit union advisors
19Credit Union Advisors who shall consult with, advise, and make
20recommendations to the Governor and to the Secretary Director
21on matters pertaining to credit unions. The board Board of
22credit union advisors may Credit Union Advisors shall also
23advise the Governor and Secretary Director upon appointments
24and employment of personnel in connection with the supervision

 

 

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1and regulation of credit unions.
2    (2) The board Board of credit union advisors Credit Union
3Advisors shall consist of 7 persons with credit union
4experience who shall be appointed by the Governor. Appointments
5to the board Board shall be for terms of 3 years each, except
6that initial appointments shall be: 3 members for 3 years each;
73 members for 2 years each and 1 member for 1 year.
8    (3) All members shall serve until their successors have
9been appointed and qualified. In the event a vacancy occurs,
10the appointment to fill such vacancy shall be made in the
11manner of original appointment, but only for the unexpired
12term.
13    (4) The chairman Chairman of the board Board of credit
14union advisors Credit Union Advisors shall be elected annually
15by a majority of the board Board members at the first meeting
16of the board Board each year.
17    (5) The initial meeting of the board Board shall be called
18by the Secretary Director and thereafter regular meetings shall
19be held at such times and places as shall be determined by the
20Governor, chairman, Chairman or Secretary Director, but at
21least once each 6 months. Special meetings may be called either
22by the Governor, the Secretary, the Director, the chairman
23Chairman, or by written notice sent by 2 or more members of the
24board Board. A majority of the members of the board Board shall
25constitute a quorum.
26    (6) The Department shall reimburse the board Board members

 

 

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1for their actual and necessary travel and subsistence expenses.
2(Source: P.A. 81-329.)
 
3    (205 ILCS 305/12)  (from Ch. 17, par. 4413)
4    Sec. 12. Regulatory fees.
5    (1) For the fiscal year beginning July 1, 2007, a credit
6union regulated by the Department shall pay a regulatory fee to
7the Department based upon its total assets as shown by its
8Year-end Call Report at the following rates or at a lesser rate
9established by the Secretary in a manner proportionately
10consistent with the following rates and sufficient to fund the
11actual administrative and operational expenses of the
12Department's Credit Union Section pursuant to subsection (4) of
13this Section:
14TOTAL ASSETSREGULATORY FEE
15$25,000 or less ................$100
16Over $25,000 and not over
17$100,000 .......................$100 plus $4 per
18$1,000 of assets in excess of
19$25,000
20Over $100,000 and not over
21$200,000 .......................$400 plus $3 per
22$1,000 of assets in excess of
23$100,000
24Over $200,000 and not over
25$500,000 .......................$700 plus $2 per

 

 

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1$1,000 of assets in excess of
2$200,000
3Over $500,000 and not over
4$1,000,000 .....................$1,300 plus $1.40
5per $1,000 of assets in excess
6of $500,000
7Over $1,000,000 and not
8over $5,000,000.................$2,000 plus $0.50
9per $1,000 of assets in
10excess of $1,000,000
11Over $5,000,000 and not
12over $30,000,000 ............... $4,540 plus $0.397
13per $1,000 assets
14in excess of $5,000,000
15Over $30,000,000 and not over
16$100,000,000....................$14,471 plus $0.34
17per $1,000 of assets
18 in excess of $30,000,000
19Over $100,000,000 and not
20over $500,000,000 ..............$38,306 plus $0.17
21per $1,000 of assets
22in excess of $100,000,000
23Over $500,000,000 ..............$106,406 plus $0.056
24per $1,000 of assets
25in excess of $500,000,000
26    (2) The Secretary shall review the regulatory fee schedule

 

 

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1in subsection (1) and the projected earnings on those fees on
2an annual basis and adjust the fee schedule no more than 5%
3annually if necessary to defray the estimated administrative
4and operational expenses of the Credit Union Section of the
5Department as defined in subsection (5). However, the fee
6schedule shall not be increased if the amount remaining in the
7Credit Union Fund at the end of any fiscal year is greater than
825% of the total actual and operational expenses incurred by
9the State in administering and enforcing the Illinois Credit
10Union Act and other laws, rules, and regulations as may apply
11to the administration and enforcement of the foregoing laws,
12rules, and regulations as amended from time to time for the
13preceding fiscal year. The regulatory fee for the next fiscal
14year shall be calculated by the Secretary based on the credit
15union's total assets as of December 31 of the preceding
16calendar year. The Secretary shall provide credit unions with
17written notice of any adjustment made in the regulatory fee
18schedule.
19    (3) A Beginning with the calendar quarter commencing on
20January 1, 2009, a credit union shall pay to the Department a
21regulatory fee in quarterly installments equal to one-fourth of
22the regulatory fee due in accordance with the regulatory fee
23schedule in subsection (1), on the basis of assets as of the
24Year-end Call Report of the preceding calendar year. The total
25annual regulatory fee shall not be less than $100 or more than
26$141,875, provided that the regulatory fee cap of $141,875

 

 

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1shall be adjusted to incorporate the same percentage increase
2as the Secretary makes in the regulatory fee schedule from time
3to time under subsection (2). No regulatory fee shall be
4collected from a credit union until it has been in operation
5for one year. The regulatory fee shall be billed to credit
6unions on a quarterly basis commencing with the quarter ending
7March 31, 2009, and it shall be payable by credit unions on the
8due date for the Call Report for the subject quarter.
9    (4) The aggregate of all fees collected by the Department
10under this Act shall be paid promptly after they are received,
11accompanied by a detailed statement thereof, into the State
12Treasury and shall be set apart in the Credit Union Fund, a
13special fund hereby created in the State treasury. The amount
14from time to time deposited in the Credit Union Fund and shall
15be used to offset the ordinary administrative and operational
16expenses of the Credit Union Section of the Department under
17this Act. All earnings received from investments of funds in
18the Credit Union Fund shall be deposited into the Credit Union
19Fund and may be used for the same purposes as fees deposited
20into that fund Fund. Moneys deposited in the Credit Union Fund
21may be transferred to the Professions Indirect Cost Fund, as
22authorized under Section 2105-300 of the Department of
23Professional Regulation Law of the Civil Administrative Code of
24Illinois.
25    Notwithstanding provisions in the State Finance Act, as now
26or hereafter amended, or any other law to the contrary, the sum

 

 

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1of $4,404,515 shall be transferred from the Credit Union Fund
2to the Financial Institutions Settlement of 2008 Fund as of the
3effective date of this amendatory Act of the 95th General
4Assembly, or as soon thereafter as practical.
5    Notwithstanding provisions in the State Finance Act, as now
6or hereafter amended, or any other law to the contrary, the
7Governor may, during any fiscal year through January 10, 2011,
8from time to time direct the State Treasurer and Comptroller to
9transfer a specified sum not exceeding 10% of the revenues to
10be deposited into the Credit Union Fund during that fiscal year
11from that Fund to the General Revenue Fund in order to help
12defray the State's operating costs for the fiscal year.
13Notwithstanding provisions in the State Finance Act, as now or
14hereafter amended, or any other law to the contrary, the total
15sum transferred from the Credit Union Fund to the General
16Revenue Fund pursuant to this provision shall not exceed during
17any fiscal year 10% of the revenues to be deposited into the
18Credit Union Fund during that fiscal year. The State Treasurer
19and Comptroller shall transfer the amounts designated under
20this Section as soon as may be practicable after receiving the
21direction to transfer from the Governor.
22    (5) The administrative and operational expenses for any
23fiscal year shall mean the ordinary and contingent expenses for
24that year incidental to making the examinations provided for
25by, and for administering, this Act, including all salaries and
26other compensation paid for personal services rendered for the

 

 

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1State by officers or employees of the State to enforce this
2Act; all expenditures for telephone and telegraph charges,
3postage and postal charges, office supplies and services,
4furniture and equipment, office space and maintenance thereof,
5travel expenses and other necessary expenses; all to the extent
6that such expenditures are directly incidental to such
7examination or administration.
8    (6) When the balance in the Credit Union Fund at the end of
9a fiscal year exceeds 25% of the total administrative and
10operational expenses incurred by the State in administering and
11enforcing the Illinois Credit Union Act and other laws, rules,
12and regulations as may apply to the administration and
13enforcement of the foregoing laws, rules, and regulations as
14amended from time to time for that fiscal year, such excess
15shall be credited to credit unions and applied against their
16regulatory fees for the subsequent fiscal year. The amount
17credited to each credit union shall be in the same proportion
18as the regulatory fee paid by such credit union for the fiscal
19year in which the excess is produced bears to the aggregate
20amount of all fees collected by the Department under this Act
21for the same fiscal year.
22    (7) (Blank).
23    (8) Nothing in this Act shall prohibit the General Assembly
24from appropriating funds to the Department from the General
25Revenue Fund for the purpose of administering this Act.
26    (9) For purposes of this Section, "fiscal year" means a

 

 

HB3050 Engrossed- 37 -LRB097 10833 CEL 51313 b

1period beginning on July 1 of any calendar year and ending on
2June 30 of the next calendar year.
3(Source: P.A. 94-91, eff. 7-1-05; 95-1047, eff. 4-6-09.)
 
4    (205 ILCS 305/13)  (from Ch. 17, par. 4414)
5    Sec. 13. General powers. A credit union may:
6        (1) Make contracts; sue and be sued; and adopt and use
7    a common seal and alter the same;
8        (2) Acquire, lease (either as lessee or lessor), hold,
9    pledge, mortgage, sell and dispose of real property, either
10    in whole or in part, or any interest therein, as may be
11    necessary or incidental to its present or future operations
12    and needs, subject to such limitations as may be imposed
13    thereon in rules and regulations promulgated by the
14    Secretary Director; acquire, lease (either as lessee or
15    lessor), hold, pledge, mortgage, sell and dispose of
16    personal property, either in whole or in part, or any
17    interest therein, as may be necessary or incidental to its
18    present or future operations and needs;
19        (3) At the discretion of the board of directors Board
20    of Directors, require the payment of an entrance fee or
21    annual membership fee, or both, of any person admitted to
22    membership;
23        (4) Receive savings from its members in the form of
24    shares of various classes, or special purpose share
25    accounts; act as custodian of its members' accounts; issue

 

 

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1    shares in trust as provided in this Act;
2        (5) Lend its funds to its members and otherwise as
3    hereinafter provided;
4        (6) Borrow from any source in accordance with policy
5    established by the board of directors Board of Directors to
6    a maximum of 50% of capital, surplus and reserves;
7        (7) Discount and sell any obligations owed to the
8    credit union;
9        (8) Honor requests for withdrawals or transfers of all
10    or any part of member share accounts, and any classes
11    thereof, in any manner approved by the credit union board
12    of directors Board of Directors;
13        (9) Sell all or a part substantially all of its assets
14    or purchase all or a part substantially all of the assets
15    of another credit union and assume the liabilities of the
16    selling credit union, subject to the prior approval of the
17    Director, which approval shall not be required in the case
18    of loan transactions otherwise authorized under applicable
19    law;
20        (10) Invest surplus funds as provided in this Act;
21        (11) Make deposits in banks, savings banks, savings and
22    loan associations, trust companies; and invest in shares,
23    classes of shares or share certificates of other credit
24    unions;
25        (12) Assess charges and fees to members in accordance
26    with board resolution;

 

 

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1        (13) Hold membership in and pay dues to associations
2    and organizations; to invest in shares, stocks or
3    obligations of any credit union organization;
4        (14) Declare dividends and pay interest refunds to
5    borrowers as provided in this Act;
6        (15) Collect, receive and disburse monies in
7    connection with providing negotiable checks, money orders
8    and other money-type instruments, and for such other
9    purposes as may provide benefit or convenience to its
10    members, and charge a reasonable fee for such services;
11        (16) Act as fiscal agent for and receive deposits from
12    the federal government, this state or any agency or
13    political subdivision thereof;
14        (17) Receive savings from nonmembers in the form of
15    shares or share accounts in the case of credit unions
16    serving predominantly low-income members. The term "low
17    income members" shall mean those members who make less than
18    80% of the average for all wage earners as established by
19    the Bureau of Labor Statistics or those members whose
20    annual household income falls at or below 80% of the median
21    household income for the nation as established by the
22    Census Bureau. The term "predominantly" is defined as a
23    simple majority;
24        (18) Establish, maintain, and operate terminals as
25    authorized by the Electronic Fund Transfer Act;
26        (19) Subject to Article XLIV of the Illinois Insurance

 

 

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1    Code, act as the agent for any fire, life, or other
2    insurance company authorized by the State of Illinois, by
3    soliciting and selling insurance and collecting premiums
4    on policies issued by such company; and may receive for
5    services so rendered such fees or commissions as may be
6    agreed upon between the said credit union and the insurance
7    company for which it may act as agent; provided, however,
8    that no such credit union shall in any case assume or
9    guarantee the payment of any premium on insurance policies
10    issued through its agency by its principal; and provided
11    further, that the credit union shall not guarantee the
12    truth of any statement made by an assured in filing his
13    application for insurance; and
14        (20) Make reasonable contributions to civic,
15    charitable, or service organizations not organized for
16    profit; religious corporations; and fundraisers benefiting
17    persons in the credit union's service area.
18(Source: P.A. 94-150, eff. 7-8-05.)
 
19    (205 ILCS 305/14)  (from Ch. 17, par. 4415)
20    Sec. 14. Incidental powers Powers. A credit union may
21exercise such incidental powers as are granted corporations
22organized under the laws of this State including, to the extent
23such powers are not inconsistent with powers and prohibitions
24contained in this Act, such powers as are necessary or
25convenient to enable credit unions to promote and carry on

 

 

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1their purposes. The provisions of this Section shall be
2interpreted liberally and not restrictively.
3(Source: P.A. 81-329.)
 
4    (205 ILCS 305/15)  (from Ch. 17, par. 4416)
5    Sec. 15. Membership defined.
6    (1) The membership of a credit union shall be limited to
7and consist of the subscribers to the articles of incorporation
8and such other persons within the common bond, as defined in
9this Act and as set forth in the credit union's articles of
10incorporation, as have been duly admitted members, have paid
11the required entrance fee or membership fee, or both, if any,
12have subscribed for one or more shares, and have paid the
13initial installment thereon, and have complied with such other
14requirements as the articles of incorporation or bylaws
15specify. Two or more persons within the common bond who have
16jointly subscribed for one or more shares under a joint account
17and have complied with all membership requirements may each be
18admitted to membership. The surviving spouse of a credit union
19member may, within 6 months of the member's death, become a
20member of the credit union by paying the required entrance fee
21or membership fee or both, if any, by subscribing for one or
22more shares and paying the initial installment thereon, and by
23complying with such other requirements as the articles of
24incorporation or bylaws specify.
25    (2) Any member may withdraw from a credit union at any time

 

 

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1upon giving notice of withdrawal as required by the bylaws.
2    (3) Any member may be expelled by a 2/3 vote of the members
3present at any regular or special meeting called to consider
4the matter, but only after an opportunity has been given to the
5member to be heard.
6    (4) A member who has caused a loss to the credit union,
7failed to maintain one or more shares at the credit union, or
8violated board Board policy applicable to members may be
9expelled by a majority vote of a quorum of directors if the
10board has adopted a policy providing for expulsion under those
11circumstances. In maintaining and enforcing a policy based on
12loss, the board may consider, without limitation, a member's
13failure to pay amounts due under a loan, failure to provide
14collected funds to cover withdrawals or personal share drafts
15or credit union drafts where the member is a remitter, or
16failure to pay fees or charges due the credit union. If a
17policy is adopted by the board pursuant to this subsection (4),
18written notice of the policy and the effective date of the
19policy shall be mailed to each member of the credit union at
20the member's current address appearing on the records of the
21credit union. The policy shall be mailed to members not fewer
22than 30 days prior to the effective date of the policy. In
23addition, new members shall be provided written notice of the
24policy prior to or upon applying for membership.
25    (5) All or any part of the amount paid on shares of a
26withdrawing member or expelled member with any declared

 

 

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1dividends or interest on the date of withdrawal or expulsion
2must, after deducting all amounts due from the member to the
3credit union, be paid to him. The credit union may require not
4more than 60 days' written notice of intention to withdraw
5shares, but a notice of withdrawal does not entitle the member
6to any preferred or prior claim in the event of liquidation.
7Withdrawing or expelled members have no further rights in the
8credit union, but are not, by withdrawal or expulsion, released
9from any obligation they owe to the credit union.
10    (6) A member who has caused a loss to the credit union or
11has violated board Board policy applicable to members may be
12denied any or all credit union services in accordance with
13board policy, however, members who are denied services shall be
14allowed to maintain a share account and to vote on all issues
15put to a vote of the membership.
16(Source: P.A. 93-640, eff. 12-31-03.)
 
17    (205 ILCS 305/16)  (from Ch. 17, par. 4417)
18    Sec. 16. Societies and , associations. Societies,
19associations, clubs, partnerships, corporations, and limited
20liability companies in which the majority of the members,
21partners, or shareholders are individuals who are eligible for
22credit union membership may be admitted to membership in a
23credit union in the same manner and under the same conditions
24as individuals, subject to such rules as the Secretary and the
25Director may promulgate hereunder.

 

 

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1(Source: P.A. 92-608, eff. 7-1-02.)
 
2    (205 ILCS 305/16.1)
3    Sec. 16.1. Service to the economically disadvantaged.
4    (a) Persons who reside in investment areas as defined in
5the Community Development Banking and Financial Institutions
6Act of 1994 (12 U.S.C. 4702) and identified by the U.S.
7Department of the Treasury may be admitted to membership in a
8credit union that serves the area by maintaining a facility in
9the area. For purposes of this Section, a "facility" means a
10credit union owned branch, a shared branch, an office operated
11on a regularly scheduled weekly basis, or a credit union owned
12electronic facility that meets, at a minimum, the requirements
13of accepting shares for members' accounts, accepting loan
14applications and disbursing loans, but does not include an ATM.
15    (b) Credit unions desiring to serve the economically
16disadvantaged in accordance with this Section shall do so
17pursuant to a written business plan that shall document the
18fact that the area meets the criteria of this Section, identify
19the credit and depository needs of the area, identify the
20services to be delivered, and describe the manner in which the
21services will be delivered. The credit union shall regularly
22review the business plan to determine whether the area is being
23adequately served and shall provide to the Secretary Director
24periodic service status reports that describe how the needs of
25the area are being met.

 

 

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1(Source: P.A. 93-916, eff. 8-12-04.)
 
2    (205 ILCS 305/19)  (from Ch. 17, par. 4420)
3    Sec. 19. Meeting of members.
4    (1) The annual meeting shall be held each year during the
5months of January, February or March or such other month as may
6be approved by the Department. The meeting shall be held at the
7time, place and in the manner set forth in the bylaws. Any
8special meetings of the members of the credit union shall be
9held at the time, place and in the manner set forth in the
10bylaws. Unless otherwise set forth in this Act, quorum
11requirements for meetings of members shall be established by a
12credit union in its bylaws. Notice of all meetings must be
13given by the secretary Secretary of the credit union at least 7
14days before the date of such meeting, either by handing a
15written or printed notice to each member of the credit union,
16by mailing the notice to the member at his address as listed on
17the books and records of the credit union, or by posting a
18notice of the meeting in three conspicuous places, including
19the office of the credit union.
20    (2) On all questions and at all elections, except election
21of directors, each member has one vote regardless of the number
22of his shares. There shall be no voting by proxy except on the
23election of directors, proposals for merger or voluntary
24dissolution. All voting on the election of directors shall be
25by ballot, but when there is no contest, written ballots need

 

 

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1not be cast. The record date to be used for the purpose of
2determining which members are entitled to notice of or to vote
3at any meeting of members, may be fixed in advance by the
4directors on a date not more than 90 days nor less than 10 days
5prior to the date of the meeting. If no record date is fixed by
6the directors, the first day on which notice of the meeting is
7given, mailed or posted is the record date.
8    (3) Regardless of the number of shares owned by a society,
9association, club, partnership, other credit union or
10corporation, having membership in the credit union, it shall be
11entitled to only one vote and it may be represented and have
12its vote cast by its designated agent acting on its behalf
13pursuant to a resolution adopted by the organization's board of
14directors or similar governing authority; provided that the
15credit union shall obtain a certified copy of such resolution
16before such vote may be cast.
17    (4) A member may revoke a proxy by delivery to the credit
18union of a written statement to that effect, by execution of a
19subsequently dated proxy, or by attendance at a meeting and
20voting in person.
21(Source: P.A. 96-963, eff. 7-2-10.)
 
22    (205 ILCS 305/20)  (from Ch. 17, par. 4421)
23    Sec. 20. Election or appointment of officials.
24    (1) The credit union shall be directed by a board of
25directors Board of Directors consisting of no less than 7 in

 

 

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1number, to be elected at the annual meeting by and from the
2members. Directors shall hold office until the next annual
3meeting, unless their terms are staggered. Upon amendment of
4its bylaws, a credit union may divide the directors Directors
5into 2 or 3 classes with each class as nearly equal in number
6as possible. The term of office of the directors of the first
7class shall expire at the first annual meeting after their
8election, that of the second class shall expire at the second
9annual meeting after their election, and that of the third
10class, if any, shall expire at the third annual meeting after
11their election. At each annual meeting after the
12classification, the number of directors equal to the number of
13directors whose terms expire at the time of the meeting shall
14be elected to hold office until the second succeeding annual
15meeting if there are 2 classes or until the third succeeding
16annual meeting if there are 3 classes. A director Director
17shall hold office for the term for which he or she is elected
18and until his or her successor is elected and qualified.
19    (1.5) Except as provided in subsection (1.10), in all
20elections for directors Directors, every member has the right
21to vote, in person or by proxy, the number of shares owned by
22him, or in the case of a member other than a natural person,
23the member's one vote, for as many persons as there are
24directors Directors to be elected, or to cumulate such shares,
25and give one candidate as many votes as the number of directors
26Directors multiplied by the number of his shares equals, or to

 

 

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1distribute them on the same principle among as many candidates
2as he may desire and the directors Directors shall not be
3elected in any other manner. Shares held in a joint account
4owned by more than one member may be voted by any one of the
5members, however, the number of cumulative votes cast may not
6exceed a total equal to the number of shares multiplied by the
7number of directors to be elected. A majority of the shares
8entitled to vote shall be represented either in person or by
9proxy for the election of directors Directors. Each director
10Director shall wholly take and subscribe to an oath that he
11will diligently and honestly perform his duties in
12administering the affairs of the credit union, that while he
13may delegate to another the performance of those administrative
14duties he is not thereby relieved from his responsibility for
15their performance, that he will not knowingly violate or
16willingly permit to be violated any law applicable to the
17credit union, and that he is the owner of at least one share of
18the credit union.
19    (1.10) Upon amendment of a credit union's bylaws approved
20by the members, in all elections for directors Directors, every
21member who is a natural person shall have the right to cast one
22vote, regardless of the number of his or her shares, in person
23or by proxy, for as many persons as there are directors
24Directors to be elected.
25    (2) The board of directors Board of Directors shall appoint
26from among the members of the credit union, a supervisory

 

 

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1committee Supervisory Committee of not less than 3 members at
2the organization meeting and within 30 days following each
3annual meeting of the members for such terms as the bylaws
4provide. Members of the supervisory committee Supervisory
5Committee may, but need not be, on the board of directors Board
6of Directors, but shall not be officers of the credit union,
7members of the credit committee Credit Committee, or the credit
8manager if no credit committee Credit Committee has been
9appointed.
10    (3) The board of directors Board of Directors may appoint,
11from among the members of the credit union, a credit committee
12Credit Committee consisting of an odd number, not less than 3
13for such terms as the bylaws provide. Members of the credit
14committee Credit Committee may, but need not be, directors
15Directors or officers of the credit union, but shall not be
16members of the supervisory committee Supervisory Committee.
17    (4) The board of directors Board of Directors may appoint
18from among the members of the credit union a membership
19committee Membership Committee of one or more persons. If
20appointed, the committee Committee shall act upon all
21applications for membership and submit a report of its actions
22to the board of directors Board of Directors at the next
23regular meeting for review. If no membership committee
24Membership Committee is appointed, credit union management
25shall act upon all applications for membership and submit a
26report of its actions to the board of directors Board of

 

 

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1Directors at the next regular meeting for review.
2(Source: P.A. 95-52, eff. 1-1-08.)
 
3    (205 ILCS 305/21)  (from Ch. 17, par. 4422)
4    Sec. 21. Record of board and committee members. Within 30
5days after election or appointment, the names and addresses of
6the members of the board of directors Board of Directors,
7committees and all officers of the credit union shall be filed
8with the Department on forms provided by the Department.
9(Source: P.A. 86-1216.)
 
10    (205 ILCS 305/22)  (from Ch. 17, par. 4423)
11    Sec. 22. Vacancies.
12    (a) The board of directors Board of Directors shall, by
13appointment from among the credit union members, fill any
14vacancies occurring on the board Board for the remainder of the
15director's Director's unexpired term or until a successor is
16elected and qualified following completion of the term filled
17by the board Board. In the event the vacancy reduces the number
18of directors serving on the board to less than the statutory
19minimum set forth in subsection (1) of Section 20, then the
20board shall fill the vacancy no later than the next annual
21meeting of members or 90 days after the vacancy occurred,
22whichever occurs first. Upon written application to the
23Secretary, the board may request additional time in which to
24fill the vacancy. The application may be approved by the

 

 

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1Secretary in his or her discretion. The board Board shall, by
2appointment from among the credit union members, fill vacancies
3in the membership committee Membership Committee, credit
4committee Credit Committee, or credit manager if no credit
5committee Credit Committee has been appointed, and supervisory
6committees Supervisory Committees.
7    (b) An office may be declared vacant by the board Board
8when a director Director or a committee Committee member dies,
9resigns from the board Board or committee Committee, is removed
10from the board Board or committee Committee, is no longer a
11member of the credit union, is the owner of less than one share
12of the credit union, or fails to attend three consecutive
13regular meetings of the board Board without good cause.
14(Source: P.A. 95-98, eff. 8-13-07.)
 
15    (205 ILCS 305/23)  (from Ch. 17, par. 4424)
16    Sec. 23. Compensation of officials.
17    (1) No director or committee member may receive
18compensation for his service as such. "Compensation" as used in
19this subsection (1) refers to remuneration expense to the
20credit union for services provided by a director or committee
21member in his or her capacity as director or committee member.
22"Compensation" as used in this subsection (1) does not include
23the expense of providing reasonable life, health, accident, and
24similar insurance protection benefits for a director or
25committee member.

 

 

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1    (2) Directors, committee members and employees, while on
2official business of the credit union, may be reimbursed for
3reasonable and necessary expenses. Alternatively, the credit
4union may make direct payment to a third party for such
5business expenses. Reasonable and necessary expenses may
6include the payment of travel costs for the foregoing officials
7and one guest per official. All payment of costs shall be made
8in accordance with written policies and procedures established
9by the board of directors Board of Directors.
10    (3) The board of directors Board of Directors may establish
11compensation for officers of the credit union.
12(Source: P.A. 92-608, eff. 7-1-02; 93-916, eff. 8-12-04.)
 
13    (205 ILCS 305/24)  (from Ch. 17, par. 4425)
14    Sec. 24. Conflicts of interest Interest. No director
15Director, committee member, officer, agent or employee of the
16credit union shall in any manner, directly or indirectly,
17participate in the deliberation upon or the determination of
18any question affecting his pecuniary interest or the pecuniary
19interest of any corporation, partnership, or association
20(other than the credit union, other credit unions or credit
21union organizations) in which he is directly or indirectly
22interested, unless such interest is disclosed to the board of
23directors Board of Directors prior to such deliberation or
24determination, in which event such person shall be entitled to
25participate and, if otherwise entitled to, shall have the power

 

 

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1to vote on such matter.
2(Source: P.A. 81-329.)
 
3    (205 ILCS 305/25)  (from Ch. 17, par. 4426)
4    Sec. 25. Indemnification. A credit union may indemnify any
5and all of its directors Directors, committee members, officers
6or employees or former directors Directors, committee members,
7officers or employees against expenses actually and
8necessarily incurred by them in connection with the defense or
9settlement of any action, suit or proceeding in which they, or
10any of them, are made a party or parties by reason of being or
11having been a director Director, committee member, officer or
12employee of the credit union, except in relation to matters as
13to which any such director Director, committee member, officer
14or employee shall be adjudged in such action, suit or
15proceeding to be liable for willful misconduct in the
16performance of duty and to such matters as shall be settled by
17agreement predicated on the existence of such liability.
18(Source: P.A. 81-329.)
 
19    (205 ILCS 305/26)  (from Ch. 17, par. 4427)
20    Sec. 26. Executive officers Officers.
21    (1) At their first meeting, the board of directors Board of
22Directors shall elect from among their own number a chairman
23Chairman of the board Board and one or more vice chairmen Vice
24Chairmen, a secretary Secretary and a treasurer Treasurer. The

 

 

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1directors Directors shall appoint a chief management official
2who shall have such title as the directors Directors shall
3determine. The directors Directors may also appoint one or more
4vice presidents Vice Presidents. The chief management official
5and vice president Vice President may, but need not, be
6directors Directors. Any two or more offices may be held by the
7same person, except the chairman Chairman of the board Board
8may not also hold the office of vice chairman Vice Chairman or
9secretary Secretary.
10    (2) The officers shall serve for a term of one year, or
11until their successors are chosen and have been duly qualified.
12    (3) The duties of the officers shall be prescribed in the
13bylaws. Compensation of officers shall be such as may be
14established by the directors Directors from time to time.
15(Source: P.A. 93-916, eff. 8-12-04.)
 
16    (205 ILCS 305/27)  (from Ch. 17, par. 4428)
17    Sec. 27. Authority of directors.
18    (1) The board of directors Board of Directors shall be
19charged with and have control over the general management of
20the operations, funds and records of the credit union.
21    (2) In discharging the duties of their respective
22positions, the board of directors, committees of the board, and
23individual directors shall be entitled to rely on advice,
24information, opinions, reports or statements, including
25financial statements and financial data, prepared or presented

 

 

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1by: (i) one or more officers or employees of the credit union
2whom the director believes to be reliable and competent in the
3matter presented; (ii) one or more counsel, accountants, or
4other consultants as to matters that the director Director
5believes to be within that person's professional or expert
6competence; or (iii) a committee of the board upon which the
7director Director does not serve, as to matters within that
8committee's designated authority; provided that the director's
9Director's reliance under this subsection (2) is placed in good
10faith, after reasonable inquiry if the need for such inquiry is
11apparent under the circumstances and without knowledge that
12would cause such reliance to be unreasonable.
13(Source: P.A. 92-608, eff. 7-1-02.)
 
14    (205 ILCS 305/28)  (from Ch. 17, par. 4429)
15    Sec. 28. Executive committee Committee. From the persons
16elected to the board Board, the board Board may appoint an
17executive committee Executive Committee of not less than 3
18directors Directors who may be authorized to act for the board
19Board in all respects, subject to such conditions and
20limitations as are prescribed by the board Board. The executive
21committee Executive Committee shall report to the board Board
22at each board Board meeting on any meeting held and actions
23taken by the executive committee Executive Committee between
24board Board meetings.
25(Source: P.A. 81-329.)
 

 

 

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1    (205 ILCS 305/30)  (from Ch. 17, par. 4431)
2    Sec. 30. Duties of directors.
3    (a) It shall be the duty of the directors to:
4        (1) Review actions on applications for membership. A
5    record of the membership committee's Membership
6    Committee's approval or denial of membership or
7    management's approval or denial of membership if no
8    membership committee Membership Committee has been
9    appointed shall be available to the board of directors
10    Board of Directors for inspection. A person denied
11    membership by the membership committee Membership
12    Committee or credit union management may appeal the denial
13    to the board Board;
14        (2) Provide adequate fidelity bond coverage for
15    officers, employees, directors and committee members, and
16    for losses caused by persons outside of the credit union,
17    subject to rules and regulations promulgated by the
18    Secretary Director;
19        (3) Determine from time to time the interest rates, not
20    in excess of that allowed under this Act, which shall be
21    charged on loans to members and to authorize interest
22    refunds, if any, to members from income earned and received
23    in proportion to the interest paid by them on such classes
24    of loans and under such conditions as the board Board
25    prescribes. The directors Directors may establish

 

 

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1    different interest rates to be charged on different classes
2    of loans;
3        (4) Within any limitations set forth in the credit
4    union's bylaws, fix the maximum amount which may be loaned
5    with and without security to a member;
6        (5) Declare dividends on various classes of shares in
7    the manner and form as provided in the bylaws;
8        (6) Limit the number of shares which may be owned by a
9    member; such limitations to apply alike to all members;
10        (7) Have charge of the investment of funds, except that
11    the board of directors Board of Directors may designate an
12    investment committee Investment Committee or any qualified
13    individual or entity to have charge of making investments
14    under policies established by the board of directors Board
15    of Directors;
16        (8) Authorize the employment of or contracting with
17    such persons or organizations as may be necessary to carry
18    on the operations of the credit union, provided that prior
19    approval is received from the Department before delegating
20    substantially all managerial duties and responsibilities
21    to a credit union organization, and fix the compensation,
22    if any, of the officers and provide for compensation for
23    other employees within policies established by the board of
24    directors Board of Directors;
25        (9) Authorize the conveyance of property;
26        (10) Borrow or lend money consistent with the

 

 

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1    provisions of this Act;
2        (11) Designate a depository or depositories for the
3    funds of the credit union and supervise the investment of
4    funds;
5        (12) Suspend or remove, or both, any or all officers or
6    any or all members of the membership Membership, credit
7    Credit, or other committees whenever, in the judgment of
8    the board of directors Board of Directors, the best
9    interests of the credit union will be served thereby;
10    provided that members of the supervisory committee
11    Supervisory Committee may not be suspended or removed
12    except for failure to perform their duties; and provided
13    that removal of any officer shall be without prejudice to
14    the contract rights, if any, of the person so removed;
15        (13) Appoint any special committees deemed necessary;
16    and
17        (14) Perform such other duties as the members may
18    direct, and perform or authorize any action not
19    inconsistent with this Act and not specifically reserved by
20    the bylaws to the members.
21    (b) The board of directors Board of Directors may delegate
22to the chief management official, according to guidelines
23established by the board Board that may include the authority
24to further delegate one or more duties, all of the following
25duties:
26        (1) determining the interest rates on loans;

 

 

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1        (2) determining the dividend rates on share accounts;
2    and
3        (3) hiring employees other than the chief management
4    official and fixing their compensation.
5(Source: P.A. 95-98, eff. 8-13-07.)
 
6    (205 ILCS 305/31)  (from Ch. 17, par. 4432)
7    Sec. 31. Supervision of loans. The credit committee Credit
8Committee shall have the general supervision of all loans and
9lines of credit to members. If no credit committee Credit
10Committee has been appointed, the credit manager shall have the
11general supervision of all loans and lines of credit to
12members.
13(Source: P.A. 91-929, eff. 12-15-00.)
 
14    (205 ILCS 305/32)  (from Ch. 17, par. 4433)
15    Sec. 32. Meetings of credit committee Credit Committee. If
16a credit committee Credit Committee has been appointed by the
17board, the provisions of this Section shall apply. The credit
18committee Credit Committee shall meet as often as the
19operations of the credit union require and not less frequently
20than once a month to consider applications for loans and lines
21of credit. Unless a greater percentage is required in the
22credit union's bylaws, a majority of the credit committee
23Credit Committee shall constitute a quorum. No loan shall be
24made unless it is approved, in writing, by a majority of the

 

 

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1committee Committee who are present at a meeting at which a
2quorum is present and at which the application is considered.
3The credit committee Credit Committee shall report to the
4directors Directors at each board Board meeting on all meetings
5held and actions taken since the last board Board meeting.
6(Source: P.A. 91-929, eff. 12-15-00.)
 
7    (205 ILCS 305/33)  (from Ch. 17, par. 4434)
8    Sec. 33. Credit manager.
9    (1) The credit committee Credit Committee may or, if no
10credit committee Credit Committee has been appointed, the board
11of directors Board of Directors shall appoint a credit manager
12who shall be empowered to approve or disapprove loans and lines
13of credit under conditions prescribed by the board of directors
14Board of Directors. The credit committee Credit Committee or
15credit manager may appoint one or more loan officers with the
16power to approve loans and lines of credit, subject to such
17limitations or conditions as may be prescribed by the board of
18directors Board of Directors. The credit manager and any loan
19officers appointed by the credit committee Credit Committee or
20the credit manager shall keep written records of all
21transactions and shall report, in writing, to the credit
22committee Credit Committee if a credit committee Credit
23Committee has been appointed, otherwise to the directors
24Directors at each board Board meeting.
25    (2) Applications for loans or lines of credit not approved

 

 

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1by a loan officer shall be reviewed and acted upon by the
2credit committee Credit Committee or credit manager.
3    (3) The loan officers must keep written records of all
4loans or lines of credit granted or refused and any other
5transactions and submit a report to the credit committee Credit
6Committee or credit manager at least once each month.
7(Source: P.A. 91-929, eff. 12-15-00.)
 
8    (205 ILCS 305/34)  (from Ch. 17, par. 4435)
9    Sec. 34. Duties of supervisory committee Supervisory
10Committee.
11    (1) The supervisory committee Supervisory Committee shall
12make or cause to be made an annual internal audit of the books
13and affairs of the credit union to determine that the credit
14union's accounting records and reports are prepared promptly
15and accurately reflect operations and results, that internal
16controls are established and effectively maintained to
17safeguard the assets of the credit union, and that the
18policies, procedures and practices established by the board of
19directors Board of Directors and management of the credit union
20are being properly administered. The supervisory committee
21Supervisory Committee shall submit a report of that audit to
22the board of directors Board of Directors and a summary of that
23report to the members at the next annual meeting of the credit
24union. It shall make or cause to be made such supplementary
25audits as it deems necessary or as are required by the

 

 

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1Secretary Director or by the board of directors Board of
2Directors, and submit reports of these supplementary audits to
3the Secretary Director or board of directors Board of Directors
4as applicable. If the supervisory committee Supervisory
5Committee has not engaged a public accountant registered by the
6Department of Financial and Professional Regulation to make the
7internal audit, the supervisory committee Supervisory
8Committee or other officials of the credit union shall not
9indicate or in any manner imply that such audit has been
10performed by a public accountant or that the audit represents
11the independent opinion of a public accountant. The supervisory
12committee Committee must retain its tapes and working papers of
13each internal audit for inspection by the Department. The
14report of this audit must be made on a form approved by the
15Secretary Director. A copy of the report must be promptly
16mailed to the Secretary Director.
17    (2) The supervisory committee Supervisory Committee shall
18make or cause to be made at least once each year a reasonable
19percentage verification of members' share and loan accounts,
20consistent with rules promulgated by the Secretary Director.
21    (3) The supervisory committee Supervisory Committee of a
22credit union with assets of $5,000,000 or more shall engage a
23public accountant registered by the Department of Financial and
24Professional Regulation to perform an annual external
25independent audit of the credit union's financial statements in
26accordance with generally accepted auditing standards. The

 

 

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1supervisory committee Supervisory Committee of a credit union
2with assets of $3,000,000 or more, but less than $5,000,000,
3shall engage a public accountant registered by the Department
4of Financial and Professional Regulation to perform an external
5independent audit of the credit union's financial statements in
6accordance with generally accepted auditing standards at least
7once every 3 years. A copy of an external independent audit
8shall be completed and mailed to the Secretary Director no
9later than 90 days after December 31 of each year; provided
10that a credit union or group of credit unions may obtain an
11extension of the due date upon application to and receipt of
12written approval from the Secretary Director. If the annual
13internal audit of such a credit union is conducted by a public
14accountant registered by the Department of Financial and
15Professional Regulation and the annual internal audit is done
16in conjunction with the credit union's annual external audit,
17the requirements of subsection (1) of this Section shall be
18deemed met.
19    (4) In determining the appropriate balance in the allowance
20for loan losses account, a credit union may determine its
21historical loss rate using a defined period of time of less
22than 5 years, provided that:
23        (A) the methodology used to determine the defined
24    period of time is formally documented in the credit union's
25    policies and procedures and is appropriate to the credit
26    union's size, business strategy, and loan portfolio

 

 

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1    characteristics and the economic environment of the areas
2    and employers served by the credit union;
3        (B) supporting documentation is maintained for the
4    technique used to develop the credit union loss rates,
5    including the period of time used to accumulate historical
6    loss data and the factors considered in establishing the
7    time frames; and
8        (C) the external auditor conducting the credit union's
9    financial statement audit has analyzed the methodology
10    employed by the credit union and concludes that the
11    financial statements, including the allowance for loan
12    losses, are fairly stated in all material respects in
13    accordance with U.S. Generally Accepted Accounting
14    Principles, as promulgated by the Financial Accounting
15    Standards Board.
16    (5) A majority of the members of the supervisory committee
17Supervisory Committee shall constitute a quorum.
18(Source: P.A. 96-141, eff. 8-7-09; 96-963, eff. 7-2-10.)
 
19    (205 ILCS 305/35)  (from Ch. 17, par. 4436)
20    Sec. 35. Suspension and removal of officials.
21    (1) The supervisory committee Supervisory Committee, by a
22unanimous vote of the whole committee, may suspend any member
23of the credit committee Credit Committee or the credit manager
24if no credit committee Credit Committee has been appointed. The
25supervisory committee Supervisory Committee shall report such

 

 

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1action to the board of directors Board of Directors for
2appropriate action.
3    (2) The supervisory committee Supervisory Committee, by a
4unanimous vote of the whole committee, may suspend any officer
5or member of the board of directors Board of Directors until
6the next members' meeting, which shall be held not less than 7
7nor more than 21 days after such suspension. At such meeting,
8the suspension shall be acted upon by the members, who shall
9either confirm or reject it by majority vote.
10(Source: P.A. 91-929, eff. 12-15-00.)
 
11    (205 ILCS 305/36)  (from Ch. 17, par. 4437)
12    Sec. 36. Calling of special meetings Special Meetings. The
13supervisory committee Supervisory Committee, by a majority
14vote, may, after written notice of its intended action is first
15given to the board of directors Board of Directors, and the
16Department, call a special meeting of the members to consider
17any violation of this Act, the credit union's articles of
18incorporation Articles of Incorporation or bylaws, or any
19practice of the credit union deemed by the supervisory
20committee Supervisory Committee to be unsafe or unauthorized.
21(Source: P.A. 81-329.)
 
22    (205 ILCS 305/37)  (from Ch. 17, par. 4438)
23    Sec. 37. Shares and classes of shares Classes of Shares.
24    (1) The capital of a credit union shall consist of the

 

 

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1payments made by members for shares of the credit union.
2    (2) Shares may be subscribed to, paid for and transferred
3in such manner as the bylaws prescribe.
4    (3) The board of directors Board of Directors may establish
5different classes of share accounts classified in relation to
6different rights, restrictions and dividend rates.
7    (4) A certificate, passbook, periodic statement of account
8or other written evidence of ownership shall be issued to
9denote ownership of shares in a credit union.
10(Source: P.A. 81-329.)
 
11    (205 ILCS 305/38)  (from Ch. 17, par. 4439)
12    Sec. 38. Dividends. The board of directors Board of
13Directors may declare a dividend to be paid periodically from
14net earnings or undivided earnings and distributed ratably
15among holders of share accounts of the same class as provided
16in the bylaws. Dividends may not be declared or paid at a time
17when the credit union is insolvent or its net assets are less
18than its stated capital or when the payment thereof would
19render the credit union insolvent or reduce its net assets
20below its stated capital.
21(Source: P.A. 81-329.)
 
22    (205 ILCS 305/39)  (from Ch. 17, par. 4440)
23    Sec. 39. Special purpose share accounts Purpose Share
24Accounts. If provided for in and consistent with the bylaws,

 

 

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1Christmas clubs, vacation clubs and other special purpose share
2accounts may be established and offered under conditions and
3restrictions established by the board of directors Board of
4Directors.
5(Source: P.A. 81-329.)
 
6    (205 ILCS 305/40)  (from Ch. 17, par. 4441)
7    Sec. 40. Shares to minors Minors. Shares may be issued in
8the name of a minor or in the name of a custodian under the
9Illinois Uniform Transfers to Minors Act, as amended. If shares
10are issued in the name of a minor, redemption of any part or
11all of the shares by payment to the minor or upon order of the
12minor of the amount of the shares and any declared dividends
13releases the credit union from all obligations to the minor as
14to the shares redeemed. Further, if shares are issued in the
15name of a minor, the minor shall be considered as being of the
16age of majority and having contractual capacity.
17(Source: P.A. 93-640, eff. 12-31-03.)
 
18    (205 ILCS 305/41)  (from Ch. 17, par. 4442)
19    Sec. 41. Joint accounts Accounts. Shares shall be issued in
20the name of the owner and may be issued in the name of 2 or more
21persons in joint tenancy, or in survivorship, in which case
22payment may be made, in whole or in part, to any of the named
23persons whether the others are living or dead, if an agreement
24permitting such payment was signed and dated by all persons

 

 

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1when the shares were issued or thereafter. Only one of the
2persons must have the common bond of association, community or
3occupation specified in this Act and only that person may vote
4in a meeting of the members, obtain loans, hold office or be
5required to pay an entrance fee.
6(Source: P.A. 81-329.)
 
7    (205 ILCS 305/43.1)
8    Sec. 43.1. Enforcement of child support.
9    (a) Any credit union governed by this Act shall encumber or
10surrender accounts or assets held by the credit union on behalf
11of any responsible relative who is subject to a child support
12lien, upon notice of the lien or levy of the Department of
13Healthcare and Family Services (formerly Illinois Department
14of Public Aid) or its successor agency pursuant to Section
1510-25.5 of the Illinois Public Aid Code, or upon notice of
16interstate lien from any other state's agency responsible for
17implementing the child support enforcement program set forth in
18Title IV, Part D of the Social Security Act.
19    (b) Within 90 days after receiving notice from the
20Department of Healthcare and Family Services (formerly
21Department of Public Aid) that the Department has adopted a
22child support enforcement debit authorization form as required
23under the Illinois Public Aid Code, each credit union governed
24by this Act shall take all appropriate steps to implement the
25use of the form in relation to accounts held by the credit

 

 

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1union. Upon receiving from the Department of Healthcare and
2Family Services (formerly Department of Public Aid) a copy of a
3child support enforcement debit authorization form signed by an
4obligor, a credit union holding an account on behalf of the
5obligor shall debit the account and transfer the debited
6amounts to the State Disbursement Unit according to the
7instructions in the child support enforcement debit
8authorization form.
9(Source: P.A. 95-331, eff. 8-21-07.)
 
10    (205 ILCS 305/44)  (from Ch. 17, par. 4445)
11    Sec. 44. Share accounts Accounts; garnishment Garnishment.
12A credit union may be subject to garnishment proceedings
13concerning the share accounts of its members.
14(Source: P.A. 87-390.)
 
15    (205 ILCS 305/45)  (from Ch. 17, par. 4446)
16    Sec. 45. Reduction in shares Shares. Whenever the losses of
17any credit union, resulting from a depreciation in value of its
18loans or investments or otherwise, exceed its undivided
19earnings and reserve fund so that the estimated value of its
20assets is less than the total amount due the holders of share
21accounts, the credit union, may, by a majority vote of the
22entire membership, with approval by the Department, order a
23reduction in the shares of each of its shareholders to divide
24the loss proportionately among the holders of shares in

 

 

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1accordance with such terms and conditions as the Department may
2prescribe.
3(Source: P.A. 81-329.)
 
4    (205 ILCS 305/46)  (from Ch. 17, par. 4447)
5    Sec. 46. Loans and interest rate.
6    (1) A credit union may make loans to its members for such
7purpose and upon such security and terms, including rates of
8interest, as the credit committee Credit Committee, credit
9manager, or loan officer approves. Notwithstanding the
10provisions of any other law in connection with extensions of
11credit, a credit union may elect to contract for and receive
12interest and fees and other charges for extensions of credit
13subject only to the provisions of this Act and rules
14promulgated under this Act, except that extensions of credit
15secured by residential real estate shall be subject to the laws
16applicable thereto. The rates of interest to be charged on
17loans to members shall be set by the board of directors Board
18of Directors of each individual credit union in accordance with
19Section 30 of this Act and such rates may be less than, but may
20not exceed, the maximum rate set forth in this Section. A
21borrower may repay his loan prior to maturity, in whole or in
22part, without penalty. The credit contract may provide for the
23payment by the member and receipt by the credit union of all
24costs and disbursements, including reasonable attorney's fees
25and collection agency charges, incurred by the credit union to

 

 

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1collect or enforce the debt in the event of a delinquency by
2the member, or in the event of a breach of any obligation of
3the member under the credit contract. A contingency or hourly
4arrangement established under an agreement entered into by a
5credit union with an attorney or collection agency to collect a
6loan of a member in default shall be presumed prima facie
7reasonable.
8    (2) Credit unions may make loans based upon the security of
9any interest or equity in real estate, subject to rules and
10regulations promulgated by the Secretary Director. In any
11contract or loan which is secured by a mortgage, deed of trust,
12or conveyance in the nature of a mortgage, on residential real
13estate, the interest which is computed, calculated, charged, or
14collected pursuant to such contract or loan, or pursuant to any
15regulation or rule promulgated pursuant to this Act, may not be
16computed, calculated, charged or collected for any period of
17time occurring after the date on which the total indebtedness,
18with the exception of late payment penalties, is paid in full.
19    For purposes of this subsection (2) of this Section 46, a
20prepayment shall mean the payment of the total indebtedness,
21with the exception of late payment penalties if incurred or
22charged, on any date before the date specified in the contract
23or loan agreement on which the total indebtedness shall be paid
24in full, or before the date on which all payments, if timely
25made, shall have been made. In the event of a prepayment of the
26indebtedness which is made on a date after the date on which

 

 

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1interest on the indebtedness was last computed, calculated,
2charged, or collected but before the next date on which
3interest on the indebtedness was to be calculated, computed,
4charged, or collected, the lender may calculate, charge and
5collect interest on the indebtedness for the period which
6elapsed between the date on which the prepayment is made and
7the date on which interest on the indebtedness was last
8computed, calculated, charged or collected at a rate equal to
91/360 of the annual rate for each day which so elapsed, which
10rate shall be applied to the indebtedness outstanding as of the
11date of prepayment. The lender shall refund to the borrower any
12interest charged or collected which exceeds that which the
13lender may charge or collect pursuant to the preceding
14sentence. The provisions of this amendatory Act of 1985 shall
15apply only to contracts or loans entered into on or after the
16effective date of this amendatory Act.
17    (3) Notwithstanding any other provision of this Act, a
18credit union authorized under this Act to make loans secured by
19an interest or equity in real estate may engage in making
20"reverse mortgage" loans to persons for the purpose of making
21home improvements or repairs, paying insurance premiums or
22paying real estate taxes on the homestead properties of such
23persons. If made, such loans shall be made on such terms and
24conditions as the credit union shall determine and as shall be
25consistent with the provisions of this Section and such rules
26and regulations as the Secretary Director shall promulgate

 

 

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1hereunder. For purposes of this Section, a "reverse mortgage"
2loan shall be a loan extended on the basis of existing equity
3in homestead property and secured by a mortgage on such
4property. Such loans shall be repaid upon the sale of the
5property or upon the death of the owner or, if the property is
6in joint tenancy, upon the death of the last surviving joint
7tenant who had such an interest in the property at the time the
8loan was initiated, provided, however, that the credit union
9and its member may by mutual agreement, establish other
10repayment terms. A credit union, in making a "reverse mortgage"
11loan, may add deferred interest to principal or otherwise
12provide for the charging of interest or premiums on such
13deferred interest. "Homestead" property, for purposes of this
14Section, means the domicile and contiguous real estate owned
15and occupied by the mortgagor. The Director shall promulgate
16rules and regulations under this Section; provided that such
17rules and regulations need not be promulgated jointly with any
18other administrative agency of this State.
19    (4) Notwithstanding any other provisions of this Act, a
20credit union authorized under this Act to make loans secured by
21an interest or equity in real property may engage in making
22revolving credit loans secured by mortgages or deeds of trust
23on such real property or by security assignments of beneficial
24interests in land trusts.
25    For purposes of this Section, "revolving credit" has the
26meaning defined in Section 4.1 of the Interest Act.

 

 

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1    Any mortgage or deed of trust given to secure a revolving
2credit loan may, and when so expressed therein shall, secure
3not only the existing indebtedness but also such future
4advances, whether such advances are obligatory or to be made at
5the option of the lender, or otherwise, as are made within
6twenty years from the date thereof, to the same extent as if
7such future advances were made on the date of the execution of
8such mortgage or deed of trust, although there may be no
9advance made at the time of execution of such mortgage or other
10instrument, and although there may be no indebtedness
11outstanding at the time any advance is made. The lien of such
12mortgage or deed of trust, as to third persons without actual
13notice thereof, shall be valid as to all such indebtedness and
14future advances form the time said mortgage or deed of trust is
15filed for record in the office of the recorder Recorder of
16deeds Deeds or the registrar Registrar of titles Titles of the
17county where the real property described therein is located.
18The total amount of indebtedness that may be so secured may
19increase or decrease from time to time, but the total unpaid
20balance so secured at any one time shall not exceed a maximum
21principal amount which must be specified in such mortgage or
22deed of trust, plus interest thereon, and any disbursements
23made for the payment of taxes, special assessments, or
24insurance on said real property, with interest on such
25disbursements.
26    Any such mortgage or deed of trust shall be valid and have

 

 

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1priority over all subsequent liens and encumbrances, including
2statutory liens, except taxes and assessments levied on said
3real property.
4    (5) Compliance with federal or Illinois preemptive laws or
5regulations governing loans made by a credit union chartered
6under this Act shall constitute compliance with this Act.
7    (6) Credit unions may make residential real estate mortgage
8loans on terms and conditions established by the United States
9Department of Agriculture through its Rural Development
10Housing and Community Facilities Program. The portion of any
11loan in excess of the appraised value of the real estate shall
12be allocable only to the guarantee fee required under the
13program.
14(Source: P.A. 95-98, eff. 8-13-07; 96-141, eff. 8-7-09.)
 
15    (205 ILCS 305/47)  (from Ch. 17, par. 4448)
16    Sec. 47. Loan applications Applications. Every application
17for a loan shall be made in the manner prescribed by the credit
18committee Credit Committee, credit manager, or loan officer.
19The application shall state the purpose for which the loan is
20desired, and the security, if any, offered. Each loan shall be
21evidenced by a written document or by a record electronically
22stored or generated by any electronic or computer-generated
23process that accurately reproduces or records the agreement,
24transaction, act, occurrence, or event. The signature of any
25party to the loan includes any symbol executed or adopted, or

 

 

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1any security procedure employed or adopted, using electronic
2means or otherwise, by or on behalf of a person with intent to
3authenticate a record.
4(Source: P.A. 94-150, eff. 7-8-05.)
 
5    (205 ILCS 305/48)  (from Ch. 17, par. 4449)
6    Sec. 48. Loan limit Limit. Within any limitations set forth
7in the bylaws of the credit union, the board of directors Board
8of Directors may place a limit upon the aggregate amount to be
9loaned to or cosigned for by any one member. Such loan limits
10shall be subject to rules and regulations promulgated by the
11Secretary Director. Unless the credit union's bylaws provide
12otherwise, no loan shall be made to any member in an aggregate
13amount in excess of $200, or 10% of the credit union's
14unimpaired capital and surplus, whichever is greater.
15(Source: P.A. 81-329.)
 
16    (205 ILCS 305/49)  (from Ch. 17, par. 4450)
17    Sec. 49. Security. In addition to generally accepted types
18of security, the endorsement of a note by a surety, comaker or
19guarantor, or assignment of shares or wages, in a manner
20consistent with the laws of this State, shall be deemed
21security within the meaning of this Act. A credit union shall
22give each surety, guarantor or comaker a copy of the instrument
23evidencing the indebtedness. The adequacy of any security shall
24be determined by the credit committee Credit Committee, credit

 

 

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1manager or loan officer, subject to this Act and the bylaws of
2the credit union. The surety, guarantor or comaker may, but
3need not, be a member of the credit union making the loan.
4(Source: P.A. 85-1273.)
 
5    (205 ILCS 305/51)  (from Ch. 17, par. 4452)
6    Sec. 51. Other loan programs Loan Programs.
7    (1) Subject to such rules and regulations as the Secretary
8Director may promulgate, a credit union may participate in
9loans to credit union members jointly with other credit unions,
10corporations, or financial institutions. An originating credit
11union may originate loans only to its own members. A
12participating credit union that is not the originating lender
13may participate in loans made to its own members or to members
14of another participating credit union. "Originating lender"
15means the participating credit union with which the member
16contracts. A master participation agreement must be properly
17executed, and the agreement must include provisions for
18identifying, either through documents incorporated by
19reference or directly in the agreement, the participation loan
20or loans prior to their sale.
21    (2) Any credit union with assets of $500,000 or more may
22loan to its members under the State Scholarships Law or other
23scholarship programs which are subject to a federal or state
24law providing 100% repayment guarantee.
25    (3) A credit union may purchase the conditional sales

 

 

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1contracts, notes and similar instruments which evidence an
2indebtedness of its members. In the management of its assets,
3liabilities, and liquidity, a credit union may purchase the
4conditional sales contracts, notes, and other similar
5instruments that evidence the consumer indebtedness of the
6members of another credit union. "Consumer indebtedness" means
7indebtedness incurred for personal, family, or household
8purposes.
9    (4) With approval of the board of directors Board of
10Directors, a credit union may make loans, either on its own or
11jointly with other credit unions, corporations or financial
12institutions, to credit union organizations; provided, that
13the aggregate amount of all such loans outstanding shall not at
14any time exceed the greater of 3% of the paid-in and unimpaired
15capital and surplus of the credit union or the amount
16authorized for federal credit unions.
17(Source: P.A. 95-98, eff. 8-13-07.)
 
18    (205 ILCS 305/52)  (from Ch. 17, par. 4453)
19    Sec. 52. Loans to directors, officers, credit committee
20Credit Committee, credit manager, and supervisory committee
21Supervisory Committee members. A credit union may make loans
22to its directors, officers, credit committee Credit Committee
23members, credit manager, and supervisory committee Supervisory
24Committee members, provided that the loan complies with all
25lawful requirements under this Act with respect to loans to

 

 

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1other borrowers. No loan may be made to or cosigned by any
2director, officer, credit committee Credit Committee member,
3credit manager if no credit committee Credit Committee has been
4appointed, or supervisory committee Supervisory Committee
5member which would cause the aggregate amount of all loans then
6outstanding to or cosigned by all directors, officers, credit
7committee Credit Committee members, credit manager if no credit
8committee Credit Committee has been appointed, or supervisory
9committee Supervisory Committee members to exceed 20% of the
10unimpaired capital and surplus of the credit union.
11(Source: P.A. 91-929, eff. 12-15-00.)
 
12    (205 ILCS 305/53)  (from Ch. 17, par. 4454)
13    Sec. 53. Loans to credit unions Credit Unions. A credit
14union may make loans to other credit unions if so provided and
15within the limits set forth in its bylaws Bylaws.
16(Source: P.A. 81-329.)
 
17    (205 ILCS 305/54)  (from Ch. 17, par. 4455)
18    Sec. 54. Loans to associations Associations. A credit union
19may make loans to any credit union association or corporation,
20of which the credit union is a member or shareholder, except
21that the aggregate of all such loans shall not exceed 5% of the
22assets of the credit union.
23(Source: P.A. 81-329.)
 

 

 

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1    (205 ILCS 305/55)  (from Ch. 17, par. 4456)
2    Sec. 55. Insurance for members Members.
3    (1) A credit union may purchase or make available insurance
4for its members.
5    (2) A credit union may enter into cooperative marketing
6arrangements to facilitate its members' voluntary purchase of
7insurance including, but not by way of limitation, life
8insurance, disability insurance, accident and health
9insurance, property insurance, liability insurance and legal
10expense insurance.
11(Source: P.A. 90-41, eff. 10-1-97.)
 
12    (205 ILCS 305/56)  (from Ch. 17, par. 4457)
13    Sec. 56. Liability insurance Insurance for directors
14Directors and officers Officers. A credit union may purchase
15and maintain insurance on behalf of any person who is or was a
16director Director, officer Officer, committee member, employee
17or agent of the credit union as a director, officer, committee
18member, employee or agent of another corporation, partnership,
19joint venture, trust or other enterprise against any liability
20asserted against such person incurred by such person in any
21such capacity or arising out of such person's status as such,
22whether or not the credit union would have the power to
23indemnify such person against such liability.
24(Source: P.A. 81-329.)
 

 

 

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1    (205 ILCS 305/57)  (from Ch. 17, par. 4458)
2    Sec. 57. Group purchasing Purchasing. A credit union may,
3consistent with rules and regulations promulgated by the
4Secretary Director, enter into cooperative marketing
5arrangements to facilitate its members' voluntary purchase of
6such goods and services as are in the interest of improving
7economic and social conditions of the members.
8(Source: P.A. 81-329.)
 
9    (205 ILCS 305/58)  (from Ch. 17, par. 4459)
10    Sec. 58. Share insurance.
11    (1) Each credit union operating in this State shall insure
12its share accounts with the NCUA, under 12 U.S.C. 1781 to 1790
13et seq. (Sec. 201 et seq. of the Federal Credit Union Act) or
14with such other insurers as may be jointly approved by the
15Secretary Director of Financial and Professional Regulation
16Institutions and the Director of Insurance. Each approved
17insurer shall be found to be financially sound and to employ
18approved actuarial practices. The Secretary Director shall
19determine that a firm commitment to insure share accounts has
20been issued before a charter may be granted for a new credit
21union. Application for such insurance by credit unions in
22existence on the effective date of this Section shall be made
23not later than December 31, 1981 and such credit unions shall
24receive a commitment to insure share accounts by December 31,
251984.

 

 

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1    (2) A credit union which has been denied a commitment of
2insurance of accounts shall either dissolve, merge with another
3credit union, or apply in writing, within 30 days of denial, to
4the Secretary Director for additional time to obtain an
5insurance commitment. The Secretary Director may grant up to 24
6months additional time upon satisfactory evidence that the
7credit union is making a substantial effort to achieve the
8conditions precedent to issuance of the commitment.
9    (3) The Secretary Director shall cooperate with the NCUA or
10other approved insurers by furnishing copies of financial and
11examination reports and other information bearing on the
12financial condition of any credit union.
13(Source: P.A. 90-655, eff. 7-30-98.)
 
14    (205 ILCS 305/59)  (from Ch. 17, par. 4460)
15    Sec. 59. Investment of funds Funds.
16    (a) Funds not used in loans to members may be invested,
17pursuant to subsection (7) of Section 30 of this Act, and
18subject to Departmental rules and regulations:
19        (1) In securities, obligations or other instruments of
20    or issued by or fully guaranteed as to principal and
21    interest by the United States of America or any agency
22    thereof or in any trust or trusts established for investing
23    directly or collectively in the same;
24        (2) In obligations of any state of the United States,
25    the District of Columbia, the Commonwealth of Puerto Rico,

 

 

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1    and the several territories organized by Congress, or any
2    political subdivision thereof; however, a credit union may
3    not invest more than 10% of its unimpaired capital and
4    surplus in the obligations of one issuer, exclusive of
5    general obligations of the issuer, and investments in
6    municipal securities must be limited to securities rated in
7    one of the 4 highest rating categories by a nationally
8    recognized statistical rating organization;
9        (3) In certificates of deposit or passbook type
10    accounts issued by a state or national bank, mutual savings
11    bank or savings and loan association; provided that such
12    institutions have their accounts insured by the Federal
13    Deposit Insurance Corporation or the Federal Savings and
14    Loan Insurance Corporation; but provided, further, that a
15    credit union's investment in an account in any one
16    institution may exceed the insured limit on accounts;
17        (4) In shares, classes of shares or share certificates
18    of other credit unions, including, but not limited to
19    corporate credit unions; provided that such credit unions
20    have their members' accounts insured by the NCUA or other
21    approved insurers, and that if the members' accounts are so
22    insured, a credit union's investment may exceed the insured
23    limit on accounts;
24        (5) In shares of a cooperative society organized under
25    the laws of this State or the laws of the United States in
26    the total amount not exceeding 10% of the unimpaired

 

 

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1    capital and surplus of the credit union; provided that such
2    investment shall first be approved by the Department;
3        (6) In obligations of the State of Israel, or
4    obligations fully guaranteed by the State of Israel as to
5    payment of principal and interest;
6        (7) In shares, stocks or obligations of other financial
7    institutions in the total amount not exceeding 5% of the
8    unimpaired capital and surplus of the credit union;
9        (8) In federal funds and bankers' acceptances;
10        (9) In shares or stocks of Credit Union Service
11    Organizations in the total amount not exceeding the greater
12    of 3% of the unimpaired capital and surplus of the credit
13    union or the amount authorized for federal credit unions.
14    (b) As used in this Section, "political subdivision"
15includes, but is not limited to, counties, townships, cities,
16villages, incorporated towns, school districts, educational
17service regions, special road districts, public water supply
18districts, fire protection districts, drainage districts,
19levee districts, sewer districts, housing authorities, park
20districts, and any agency, corporation, or instrumentality of a
21state or its political subdivisions, whether now or hereafter
22created and whether herein specifically mentioned or not.
23    (c) A credit union investing to fund an employee benefit
24plan obligation is not subject to the investment limitations of
25this Act and this Section and may purchase an investment that
26would otherwise be impermissible if the investment is directly

 

 

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1related to the credit union's obligation under the employee
2benefit plan and the credit union holds the investment only for
3so long as it has an actual or potential obligation under the
4employee benefit plan.
5(Source: P.A. 95-124, eff. 8-13-07.)
 
6    (205 ILCS 305/60)  (from Ch. 17, par. 4461)
7    Sec. 60. Reserves.
8    (A) At the end of each accounting period the gross income
9shall be determined. From this amount, there shall be set
10aside, as a regular reserve against losses on loans and risk
11assets sums in accordance with the following schedule:
12        (1) A credit union in operation for more than four
13    years and having assets of $500,000 or more shall set aside
14    (A) 10 per centum of gross income until the regular reserve
15    shall equal 4 per centum of the total outstanding loans and
16    risk assets, then (B) 5 per centum of gross income until
17    the regular reserve shall equal 6 per centum of the total
18    outstanding loans and risk assets.
19        (2) A credit union in operation less than four years or
20    having assets of less than $500,000 shall set aside (A) 10
21    per centum of gross income until the regular reserve shall
22    equal 7 1/2 per centum of the total outstanding loans and
23    risk assets, then (B) 5 per centum of gross income until
24    the regular reserve shall equal 10 per centum of the total
25    outstanding loans and risk assets.

 

 

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1        (3) Whenever the regular reserve falls below the stated
2    per centum of the total of outstanding loans and risk
3    assets, it shall be replenished by regular contributions in
4    such amounts as may be needed to maintain the stated
5    reserve goals.
6        (B) The Secretary Director may decrease the reserve
7    requirement set forth in subsection (A) of this Section
8    when in his or her opinion such a decrease is necessary or
9    desirable. The Secretary Director may also require special
10    reserves to protect the interest of members.
11        (C) For the purpose of establishing the reserves
12    required by this Section all assets except the following
13    are risk assets:
14            (1) Cash on hand;
15            (2) Real estate;
16            (3) Depreciated value of buildings, furnishings
17        and equipment;
18            (4) Loans to students insured under Title IV, part
19        B of the Higher Education Act of 1965 or the Higher
20        Education Student Assistance Law;
21            (5) Loans insured under Title 1 of the National
22        Housing Act by the Federal Housing Administration;
23            (6) Funds invested as authorized under Section 59
24        of this Act; and
25            (7) Loans fully secured by a pledge of shares in
26        the lending credit union equal to and maintained to at

 

 

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1        least the amount of the loan outstanding.
2(Source: P.A. 85-249.)
 
3    (205 ILCS 305/61)  (from Ch. 17, par. 4462)
4    Sec. 61. Suspension.
5    (1) If the Secretary Director determines that any credit
6union is bankrupt, insolvent, impaired or that it has willfully
7violated this Act, or is operating in an unsafe or unsound
8manner, he shall issue an order temporarily suspending the
9credit union's operations for not more than 60 days. The board
10of directors Board of Directors shall be given notice by
11registered or certified mail of such suspension, which notice
12shall include the reasons for such suspension and a list of
13specific violations of the Act. The Secretary Director shall
14also notify the members of the credit union board Credit Union
15Board of advisors Advisors of any suspension. The Director may
16assess to the credit union a penalty, not to exceed the
17regulatory fee as set forth in this Act, to offset costs
18incurred in determining the condition of the credit union's
19books and records.
20    (2) Upon receipt of such suspension notice, the credit
21union shall cease all operations, except those authorized by
22the Secretary Director, or the Secretary Director may appoint a
23manager-trustee Manager-Trustee to operate the credit union
24during the suspension period. The board of directors Board of
25Directors shall, within 10 days of the receipt of the

 

 

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1suspension notice, file with the Secretary Director a reply to
2the suspension notice by submitting a corrective plan of action
3or a request for formal hearing on said action pursuant to the
4Department's rules and regulations.
5    (3) Upon receipt from the suspended credit union of
6evidence that the conditions causing the order of suspension
7have been corrected, and after determining that the proposed
8corrective plan of action submitted is factual, the Secretary
9Director shall revoke the suspension notice, permit the credit
10union to resume normal operations, and notify the board Board
11of credit union advisors Credit Union Advisors of such action.
12    (4) If the Secretary Director determines that the proposed
13corrective plan of action will not correct such conditions, he
14may take possession and control of the credit union. The
15Secretary Director may permit the credit union to operate under
16his direction and control and may appoint a manager-trustee
17Manager-Trustee to manage its affairs until such time as the
18condition requiring such action has been remedied, or in the
19case of insolvency or danger of insolvency where an emergency
20requiring expeditious action exists, the Secretary Director
21may involuntarily merge the credit union without the vote of
22the suspended credit union's board of directors Board of
23Directors or members (hereafter involuntary merger) subject to
24rules promulgated by the Secretary Director. No credit union
25shall be required to serve as a surviving credit union in any
26involuntary merger. Upon the request of the Secretary Director,

 

 

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1a credit union by a vote of a majority of its board of
2directors Board of Directors may elect to serve as a surviving
3credit union in an involuntary merger. If the Secretary
4Director determines that the suspended credit union should be
5liquidated, he may appoint a liquidating agent Liquidating
6Agent and require of that person such bond and security as he
7considers proper.
8    (5) Upon receipt of a request for a formal hearing, the
9Secretary Director shall conduct proceedings pursuant to rules
10and regulations of the Department. The credit union may request
11the appropriate court to stay execution of such action.
12Involuntary liquidation or involuntary merger may not be
13ordered prior to the conclusion of suspension procedures
14outlined in this Section.
15    (6) If, within the suspension period, the credit union
16fails to answer the suspension notice or fails to request a
17formal hearing, or both, the Secretary Director may then (i)
18involuntarily merge the credit union if the credit union is
19insolvent or in danger of insolvency and an emergency requiring
20expeditious action exists or (ii) revoke the credit union's
21charter, appoint a liquidating agent Liquidating Agent and
22liquidate the credit union.
23(Source: P.A. 92-608, eff. 7-1-02.)
 
24    (205 ILCS 305/62)  (from Ch. 17, par. 4463)
25    Sec. 62. Liquidation.

 

 

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1    (1) A credit union may elect to dissolve voluntarily and
2liquidate its affairs in the manner prescribed in this Section.
3    (2) The board of directors Board of Directors shall adopt a
4resolution recommending the credit union be dissolved
5voluntarily, and directing that the question of liquidating be
6submitted to the members.
7    (3) Within 10 days after the board of directors Board of
8Directors decides to submit the question of liquidation to the
9members, the chairman Chairman or president President shall
10notify the Secretary Director thereof, in writing, setting
11forth the reasons for the proposed action. Within 10 days after
12the members act on the question of liquidation, the chairman
13Chairman or president President shall notify the Secretary
14Director, in writing, as to whether or not the members approved
15the proposed liquidation. The Secretary Director then must
16determine whether this Section has been complied with and if
17his decision is favorable, he shall prepare a certificate to
18the effect that this Section has been complied with, a copy of
19which will be retained by the Department and the other copy
20forwarded to the credit union. The certificate must be filed
21with the recorder or if there is no recorder, in the office of
22the county clerk County Clerk of the county County or counties
23Counties in which the credit union is operating, whereupon the
24credit union must cease operations except for the purpose of
25its liquidation.
26    (4) As soon as the board of directors Board of Directors

 

 

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1passes a resolution to submit the question of liquidation to
2the members, payment on shares, withdrawal of shares, making
3any transfer of shares to loans and interest, making
4investments of any kind and granting loans shall be suspended
5pending action by members. On approval by the members of such
6proposal, all such operations shall be permanently
7discontinued. The necessary expenses of operating shall,
8however, continue to be paid on authorization of the board of
9directors Board of Directors or the liquidating agent
10Liquidating Agent during the period of liquidation.
11    (5) For a credit union to enter voluntary liquidation, it
12must be approved by affirmative vote of the members owning a
13majority of the shares entitled to vote, in person or by proxy,
14at a regular or special meeting of the members. Notice, in
15writing, shall be given to each member, by first class mail, at
16least 10 days prior to such meeting. If liquidation is
17approved, the board of directors Board of Directors shall
18appoint a liquidating agent Liquidating Agent for the purpose
19of conserving and collecting the assets, closing the affairs of
20the credit union and distributing the assets as required by
21this Act.
22    (6) A liquidating credit union shall continue in existence
23for the purpose of discharging its debts, collecting and
24distributing its assets, and doing all acts required in order
25to terminate its operations and may sue and be sued for the
26purpose of enforcing such debts and obligations until its

 

 

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1affairs are fully adjusted.
2    (7) Subject to such rules and regulations as the Secretary
3Director may promulgate, the liquidating agent Liquidating
4Agent shall use the assets of the credit union to pay; first,
5expenses incidental to liquidating including any surety bond
6that may be required; then, liabilities of the credit union;
7then special classes of shares. The remaining assets shall then
8be distributed to the members proportionately to the dollar
9value of the shares held by each member in relation to the
10total dollar value of all shares outstanding as of the date the
11dissolution was voted.
12    (8) As soon as the liquidating agent Liquidating Agent
13determines that all assets as to which there is a reasonable
14expectancy of sale or transfer have been liquidated and
15distributed as set forth in this Section, he shall execute a
16certificate Certificate of dissolution Dissolution on a form
17prescribed by the Department and file the same, together with
18all pertinent books and records of the liquidating credit union
19with the Department, whereupon such credit union shall be
20dissolved. The liquidating agent Liquidating Agent must,
21within 3 years after issuance of a certificate by the Secretary
22Director referred to in Subsection (3) of this Section,
23discharge the debts of the credit union, collect and distribute
24its assets and do all other acts required to wind up its
25business.
26    (9) If the Secretary Director determines that the

 

 

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1liquidating agent Liquidating Agent has failed to make
2reasonable progress in the liquidating of the credit union's
3affairs and distribution of its assets or has violated this
4Act, the Secretary Director may take possession and control of
5the credit union and remove the liquidating agent Liquidating
6Agent and appoint a liquidating agent Liquidating Agent to
7complete the liquidation under his direction and control. The
8Secretary Director shall fill any vacancy caused by the
9resignation, death, illness, removal, desertion or incapacity
10to function of the liquidating agent Liquidating Agent.
11    (10) Any funds representing unclaimed dividends and shares
12in liquidation and remaining in the hands of the board of
13directors Board of Directors or the liquidating agent
14Liquidating Agent at the end of the liquidation must be
15deposited by them, together with all books and papers of the
16credit union, with the State Treasurer in compliance with the
17Uniform Disposition of Unclaimed Property Act, approved August
1817, 1961, as amended.
19(Source: P.A. 91-16, eff. 7-1-99.)
 
20    (205 ILCS 305/63)  (from Ch. 17, par. 4464)
21    Sec. 63. Merger and consolidation Consolidation.
22    (1) Any two or more credit unions, regardless of whether or
23not they have the same common bond, may merge or consolidate
24into a single credit union. A merger or consolidation may be
25with a credit union organized under the laws of this State or

 

 

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1of another state or of the United States and is subject to the
2approval of the Secretary Director. It must be made on such
3terms as have been agreed upon by a vote of a majority of the
4board of directors Board of Directors of each credit union, and
5approved by an affirmative vote of a majority of the members of
6the merging credit union being absorbed present at a meeting,
7either in person or by proxy, duly called for that purpose,
8except as hereinafter specified. Notice of the meeting stating
9the purpose must be sent by the Secretary of each merging
10credit union being absorbed to each member by mail at least 7
11days before the date of the meeting.
12    (2) One of the merging credit unions may continue after the
13merger or consolidation either as a surviving credit union
14retaining its identity or as a new credit union as has been
15agreed upon under the terms of the merger. At least 9 members
16of the new proposed credit union must apply to the Department
17for permission to organize the new credit union. The same
18procedure shall be followed as provided for the organization of
19a new credit union.
20    (3) After approval by the members of the credit union which
21is to be absorbed by the merger or consolidation, the chairman
22Chairman or president President and the secretary Secretary of
23each credit union shall execute a certificate Certificate of
24merger Merger or consolidation Consolidation, which shall set
25forth all of the following:
26        (a) The time and place of the meeting of each board of

 

 

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1    directors Board of Directors at which the plan was agreed
2    upon;
3        (b) The vote in favor of the adoption of the plan;
4        (c) A copy of each resolution or other action by which
5    the plan was agreed upon;
6        (d) The time and place of the meeting of the members of
7    the absorbed credit union at which the plan agreed upon was
8    approved; and,
9        (e) The vote by which the plan was approved by the
10    members of the absorbed credit union.
11    (4) Such certificate and a copy of the plan of merger or
12consolidation agreed upon shall be mailed to the Secretary
13Director for review. If the provisions of this Act have been
14complied with, the certificate shall be approved by him, and
15returned to the credit unions which are parties to the merger
16or consolidation within 30 days. When so approved by the
17Secretary Director the certificate shall constitute the
18Department's certificate Certificate of approval Approval of
19the merger or consolidation.
20    (5) Upon issuance of the certificate Certificate of
21approval Approval, each merging credit union which was absorbed
22shall cease operation. Each party to the merger shall file the
23certificate Certificate of approval Approval with the Recorder
24or County Clerk of the county in which the credit union has or
25had its principal office.
26    (6) Each credit union absorbed by the merger or

 

 

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1consolidation shall return to the Secretary Director the
2original statement of incorporation Statement of
3Incorporation, certificate of approval of incorporation,
4Certificate of Approval of Incorporation and the bylaws Bylaws
5of the credit union. The surviving credit union shall continue
6its operation under its existing certificate of approval
7Certificate of Approval, articles of incorporation, Articles
8of Incorporation and the bylaws Bylaws or if a new credit union
9has been formed, under the new certificate of approval
10Certificate of Approval, articles of incorporation, Articles
11of Incorporation and bylaws Bylaws.
12    (7) All rights of membership in and any obligation or
13liability of any member to any credit union which is party to a
14consolidation or merger are continued in the surviving or new
15credit union without reservation or diminution.
16    (8) A pending action or other judicial proceeding to which
17any of the consolidating or merging credit unions is a party
18does not abate by reason of the consolidation or merger.
19(Source: P.A. 83-1362.)
 
20    (205 ILCS 305/64)  (from Ch. 17, par. 4465)
21    Sec. 64. Conversion of charter Charter. A credit union
22chartered under the laws of this State may be converted to a
23credit union chartered under the laws of any other state or
24under the laws of the United States. A credit union chartered
25under the laws of the United States or of any other state may

 

 

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1convert to a credit union chartered under the laws of this
2State. To effect such a conversion, a credit union must comply
3with all the requirements of the jurisdiction under which it is
4currently chartered and such rules and regulations as may be
5promulgated by the Secretary Director and file proof of such
6compliance with the Department.
7(Source: P.A. 81-329.)
 
8    (205 ILCS 305/65)  (from Ch. 17, par. 4466)
9    Sec. 65. Conformity with With Federal Credit Union Act.
10After the effective date of this Act, any credit union
11incorporated under the laws of this State shall have all of the
12rights, privileges and benefits which may be exercised by a
13federal credit union; provided, however, that the exercise of
14such rights, privileges and benefits may not violate any
15provision of this Act. In order to give effect to this
16provision, the Secretary Director shall, where necessary,
17promulgate rules and regulations in substantial conformity
18with those promulgated by the NCUA under the Federal Credit
19Union Act.
20(Source: P.A. 81-329.)
 
21    (205 ILCS 305/66)  (from Ch. 17, par. 4467)
22    Sec. 66. Illegal loans Loans.
23    (1) Any officer Officer, director Director or member of a
24committee of a credit union who knowingly permits a loan to be

 

 

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1made or participates in a loan to a nonmember of the credit
2union, is guilty of a Class A Misdemeanor and is primarily
3liable to the credit union for the amount illegally loaned, and
4the illegality of the loan is not a defense in any action by
5the credit union to recover the balance owing on the loan.
6    (2) Any officer Officer, director Director, member of a
7committee or employee of a credit union who solicits or accepts
8any payment of property or gift as consideration for
9influencing the approval or granting of a loan is guilty of a
10Class A Misdemeanor and is primarily liable to the credit union
11for the amount loaned. The loan is illegal and may be
12immediately collected in full by the credit union. The
13illegality of the loan is no defense in any action by the
14credit union to recover the balance owing on the loan.
15(Source: P.A. 81-329.)
 
16    (205 ILCS 305/67)  (from Ch. 17, par. 4468)
17    Sec. 67. Use of public property Public Property. Any credit
18union, the membership of which consists primarily of employees
19of this State or of any county, city, village, incorporated
20town or school district, or of any department, agency or
21instrumentality of the State and their families, may, upon
22application to the appropriate officer or agency, be allotted
23such space as is available in any public building, for the
24purpose of providing an office and meeting place for the credit
25union without charge for rent or services.

 

 

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1(Source: P.A. 81-329.)
 
2    (205 ILCS 305/68)  (from Ch. 17, par. 4469)
3    Sec. 68. Interest, fines Fines, not usurious-shares Not
4Usurious-Shares and loans not Loans Not to be taxed Taxed.
5Reasonable fines may be levied as provided in the bylaws Bylaws
6of each credit union and may be deducted from the share balance
7or added to the loan balance of a member upon whom a fine is
8levied. Interest or fines that may accrue to a credit union are
9not usurious and they may be collected under the law of this
10State. The shares and loans provided for in this Act are not
11subject to taxation.
12(Source: P.A. 81-329.)
 
13    (205 ILCS 305/69)  (from Ch. 17, par. 4470)
14    Sec. 69. Effect of invalidity Invalidity of part Part of
15this Act. If a court of competent jurisdiction shall adjudge to
16be invalid or unconstitutional any clause, sentence,
17paragraph, section or part of this Act, such judgment shall not
18affect, impair, invalidate or nullify the remainder of this
19Act, but the effect thereof shall be confined to the clause,
20sentence, paragraph, Section or part of this Act so adjudged to
21be invalid or unconstitutional.
22(Source: P.A. 84-545.)
 
23    (205 ILCS 305/69.1)  (from Ch. 17, par. 4470.1)

 

 

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1    Sec. 69.1. Review under Under Administrative Review Law.
2The provisions of the Administrative Review Law, and all
3amendments and modifications thereof and the rules adopted
4pursuant thereto, shall apply to and govern all proceedings for
5the judicial review of final administrative decisions of the
6Secretary Director provided for under this Act. The term
7"administrative decision" is defined as in Section 3-101 of the
8Code of Civil Procedure.
9(Source: P.A. 85-1273.)
 
10    (205 ILCS 305/70)  (from Ch. 17, par. 4471)
11    Sec. 70. Use of name, sentence.
12    (a) No individual, firm, association, or body politic and
13corporate, including, without limitation, any corporation,
14limited liability company, general partnership, limited
15partnership, or joint venture that is not an authorized user
16may use any name or title which contains the words "credit
17union" or any abbreviation thereof, and such use is a Class A
18Misdemeanor. For purposes of this Section, "authorized user"
19means a corporation organized under this Act, the credit union
20act of another state, or the Federal Credit Union Act, any
21association of such a corporation, and subsidiaries and
22affiliates of such an association.
23    (b) If the Secretary Director of the Division of Financial
24Institutions of the Department of Financial and Professional
25Regulation finds that an individual or entity that is not an

 

 

HB3050 Engrossed- 101 -LRB097 10833 CEL 51313 b

1authorized user has transacted or intends to transact business
2in this State in a manner that has a substantial likelihood of
3misleading the public by: (i) implying that the business is a
4credit union or (ii) using or intending to use the words
5"credit union", or any abbreviation thereof, in connection with
6its business, then the Secretary Director of the Division of
7Financial Institutions may direct the individual or entity to
8cease and desist from transacting its business or using the
9words "credit union", or any abbreviation thereof. If the
10individual or entity persists in transacting its business or
11using the words "credit union", or any abbreviation thereof,
12then the Secretary Director of the Division of Financial
13Institutions may impose a civil penalty of up to $10,000 for
14each violation. Each day that the individual or entity
15continues transacting business or using the words "credit
16union", or any abbreviation thereof, in connection with its
17business shall constitute a separate violation of these
18provisions.
19    (c) Except as otherwise expressly permitted by law or with
20the written consent of the credit union, no person or group of
21persons other than an authorized user may use the name of or a
22name similar to the name of an existing credit union when
23marketing or soliciting business from members or prospective
24members if the name or similar name is used in a manner that
25would cause a reasonable person to believe that the marketing
26material or solicitation originated from or is endorsed by the

 

 

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1existing credit union or that the existing credit union is in
2any other way responsible for the marketing material or
3solicitation. The following remedies shall apply:
4        (1) Any person who violates subsection (c) of this
5    Section commits a business offense and shall be fined in an
6    amount not to exceed $5,000.
7        (2) In addition to any other available remedies, any
8    existing credit union may report an alleged violation of
9    any provision of this Section to the Secretary Director of
10    the Division of Financial Institutions. If the Secretary
11    Director finds that any person or group of persons is in
12    violation of any provision of this Section, then the
13    Secretary Director may direct that person or group of
14    persons to cease and desist from that violation. If the
15    Secretary Director issues a cease and desist order against
16    any person or group of persons for violation of subsection
17    (c), then the order must require that person or group of
18    persons to cease and desist from using the offending
19    marketing material or solicitation in Illinois.
20        (3) If a person or group of persons against whom the
21    Secretary Director issued the cease and desist order
22    persists in the violation, then the Secretary Director may
23    impose a civil penalty of up to $10,000 for each violation.
24    Each day that a person or group of persons is in violation
25    of this Section constitutes a separate violation of this
26    Section and each instance in which marketing material or a

 

 

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1    solicitation is sent in violation of this subsection (c)
2    constitutes a separate violation of this Section.
3    (d) The Secretary and the Director of the Division of
4Financial Institutions may adopt rules to administer the
5provisions of this Section.
6(Source: P.A. 94-150, eff. 7-8-05; 95-98, eff. 8-13-07.)
 
7    (205 ILCS 305/71)  (from Ch. 17, par. 4472)
8    Sec. 71. False statements Statements. Any person who
9knowingly makes any false statement or report upon any
10application, advance, discount, purchase, purchase agreement,
11repurchase agreement, commitment or loan or any change or
12extension of the same to a credit union chartered by this State
13shall be fined not more than $5000 or imprisoned for not more
14than 5 years, or both.
15(Source: P.A. 81-329.)
 
16    Section 99. Effective date. This Act takes effect January
171, 2012.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    205 ILCS 305/1.1from Ch. 17, par. 4402
4    205 ILCS 305/2from Ch. 17, par. 4403
5    205 ILCS 305/3from Ch. 17, par. 4404
6    205 ILCS 305/4from Ch. 17, par. 4405
7    205 ILCS 305/7from Ch. 17, par. 4408
8    205 ILCS 305/8from Ch. 17, par. 4409
9    205 ILCS 305/9from Ch. 17, par. 4410
10    205 ILCS 305/9.1
11    205 ILCS 305/11from Ch. 17, par. 4412
12    205 ILCS 305/12from Ch. 17, par. 4413
13    205 ILCS 305/13from Ch. 17, par. 4414
14    205 ILCS 305/14from Ch. 17, par. 4415
15    205 ILCS 305/15from Ch. 17, par. 4416
16    205 ILCS 305/16from Ch. 17, par. 4417
17    205 ILCS 305/16.1
18    205 ILCS 305/19from Ch. 17, par. 4420
19    205 ILCS 305/20from Ch. 17, par. 4421
20    205 ILCS 305/21from Ch. 17, par. 4422
21    205 ILCS 305/22from Ch. 17, par. 4423
22    205 ILCS 305/23from Ch. 17, par. 4424
23    205 ILCS 305/24from Ch. 17, par. 4425
24    205 ILCS 305/25from Ch. 17, par. 4426
25    205 ILCS 305/26from Ch. 17, par. 4427

 

 

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1    205 ILCS 305/27from Ch. 17, par. 4428
2    205 ILCS 305/28from Ch. 17, par. 4429
3    205 ILCS 305/30from Ch. 17, par. 4431
4    205 ILCS 305/31from Ch. 17, par. 4432
5    205 ILCS 305/32from Ch. 17, par. 4433
6    205 ILCS 305/33from Ch. 17, par. 4434
7    205 ILCS 305/34from Ch. 17, par. 4435
8    205 ILCS 305/35from Ch. 17, par. 4436
9    205 ILCS 305/36from Ch. 17, par. 4437
10    205 ILCS 305/37from Ch. 17, par. 4438
11    205 ILCS 305/38from Ch. 17, par. 4439
12    205 ILCS 305/39from Ch. 17, par. 4440
13    205 ILCS 305/40from Ch. 17, par. 4441
14    205 ILCS 305/41from Ch. 17, par. 4442
15    205 ILCS 305/43.1
16    205 ILCS 305/44from Ch. 17, par. 4445
17    205 ILCS 305/45from Ch. 17, par. 4446
18    205 ILCS 305/46from Ch. 17, par. 4447
19    205 ILCS 305/47from Ch. 17, par. 4448
20    205 ILCS 305/48from Ch. 17, par. 4449
21    205 ILCS 305/49from Ch. 17, par. 4450
22    205 ILCS 305/51from Ch. 17, par. 4452
23    205 ILCS 305/52from Ch. 17, par. 4453
24    205 ILCS 305/53from Ch. 17, par. 4454
25    205 ILCS 305/54from Ch. 17, par. 4455
26    205 ILCS 305/55from Ch. 17, par. 4456

 

 

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1    205 ILCS 305/56from Ch. 17, par. 4457
2    205 ILCS 305/57from Ch. 17, par. 4458
3    205 ILCS 305/58from Ch. 17, par. 4459
4    205 ILCS 305/59from Ch. 17, par. 4460
5    205 ILCS 305/60from Ch. 17, par. 4461
6    205 ILCS 305/61from Ch. 17, par. 4462
7    205 ILCS 305/62from Ch. 17, par. 4463
8    205 ILCS 305/63from Ch. 17, par. 4464
9    205 ILCS 305/64from Ch. 17, par. 4465
10    205 ILCS 305/65from Ch. 17, par. 4466
11    205 ILCS 305/66from Ch. 17, par. 4467
12    205 ILCS 305/67from Ch. 17, par. 4468
13    205 ILCS 305/68from Ch. 17, par. 4469
14    205 ILCS 305/69from Ch. 17, par. 4470
15    205 ILCS 305/69.1from Ch. 17, par. 4470.1
16    205 ILCS 305/70from Ch. 17, par. 4471
17    205 ILCS 305/71from Ch. 17, par. 4472