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Sen. Antonio Muņoz
Filed: 4/16/2021
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1 | | AMENDMENT TO SENATE BILL 1534
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1534 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The Illinois Credit Union Act is amended by |
5 | | changing Sections 19, 23, 34, 51, 57, 59, and 64.7 and by |
6 | | adding Section 20.5 as follows:
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7 | | (205 ILCS 305/19) (from Ch. 17, par. 4420)
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8 | | Sec. 19. Meeting of members.
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9 | | (1) (a) The annual meeting shall be held each
year during |
10 | | the months of January, February or March or such other month
as |
11 | | may be approved by the Department. The meeting shall be held at |
12 | | the
time, place and in the manner set forth in the bylaws. Any |
13 | | special
meetings of the members of the credit union shall be |
14 | | held at the time, place
and in the manner set forth in the |
15 | | bylaws. Unless otherwise set forth in
this Act, quorum |
16 | | requirements for meetings of members shall be established
by a |
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1 | | credit union in its bylaws. Notice of all meetings must be |
2 | | given by
the secretary of the credit union at least 7 days |
3 | | before the date of such
meeting, either by handing a written or |
4 | | printed notice to each
member of the credit union, by mailing |
5 | | the notice to the member at his address
as listed on the books |
6 | | and records of the credit union, or by posting a
notice of the |
7 | | meeting in three conspicuous places, including the office
of |
8 | | the credit union , by posting the notice of the meeting on the |
9 | | credit union's website, or by disclosing the notice of the |
10 | | meeting in membership newsletters or account statements .
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11 | | (b) Unless expressly prohibited by the articles of |
12 | | incorporation or bylaws and subject to applicable requirements |
13 | | of this Act, the board of directors may provide by resolution |
14 | | that members may attend, participate in, act in, and vote at |
15 | | any annual meeting or special meeting through the use of a |
16 | | conference telephone or interactive technology, including, but |
17 | | not limited to, electronic transmission, internet usage, or |
18 | | remote communication, by means of which all persons |
19 | | participating in the meeting can communicate with each other. |
20 | | Participation through the use of a conference telephone or |
21 | | interactive technology shall constitute attendance, presence, |
22 | | and representation in person at the annual meeting or special |
23 | | meeting of the person or persons so participating and count |
24 | | towards the quorum required to conduct business at the |
25 | | meeting. The following conditions shall apply to any virtual |
26 | | meeting of the members: |
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1 | | (i) the credit union must internally possess or retain |
2 | | the technological capacity to facilitate virtual meeting |
3 | | attendance, participation, communication, and voting; and |
4 | | (ii) the members must receive notice of the use of a |
5 | | virtual meeting format and appropriate instructions for |
6 | | joining, participating, and voting during the virtual |
7 | | meeting at least 7 days before the virtual meeting. |
8 | | (2) On all questions and at all elections, except election |
9 | | of directors,
each member has one vote regardless of the |
10 | | number of his shares. There
shall be no voting by proxy except |
11 | | on the election of directors, proposals
for merger or |
12 | | voluntary dissolution. Members may vote on questions , |
13 | | including, without limitation, the approval of mergers and |
14 | | voluntary dissolutions under this Act, and in elections by |
15 | | secure electronic record if approved by the board of |
16 | | directors. All voting on the election of directors
shall be by |
17 | | ballot, but when there is no contest, written or electronic |
18 | | ballots need not
be cast. The record date to be used for the |
19 | | purpose of determining which
members are entitled to notice of |
20 | | or to vote at any meeting of members,
may be fixed in advance |
21 | | by the directors on a date not more than 90 days
nor less than |
22 | | 10 days prior to the date of the meeting. If no record date
is |
23 | | fixed by the directors, the first day on which notice of the |
24 | | meeting
is given, mailed or posted is the record date.
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25 | | (3) Regardless of the number of shares owned by a society, |
26 | | association,
club, partnership, other credit union or |
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1 | | corporation, having membership
in the credit union, it shall |
2 | | be entitled to only
one vote and it may be represented and have |
3 | | its vote cast by its
designated agent acting on its
behalf |
4 | | pursuant
to a resolution
adopted by the organization's board |
5 | | of directors or similar governing
authority;
provided that the |
6 | | credit union shall obtain a certified copy of such resolution
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7 | | before such vote may be cast. |
8 | | (4) A member may revoke a proxy by delivery to the credit |
9 | | union of a written statement to that effect, by execution of a |
10 | | subsequently dated proxy, by execution of a secure electronic |
11 | | record, or by attendance at a meeting and voting in person.
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12 | | (5) As used in this Section, "electronic" and "electronic |
13 | | record" have the meanings ascribed to those terms in the |
14 | | Electronic Commerce Security Act. As used in this Section, |
15 | | "secured electronic record" means an electronic record that |
16 | | meets the criteria set forth in Section 10-105 of the |
17 | | Electronic Commerce Security Act. |
18 | | (Source: P.A. 100-361, eff. 8-25-17.)
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19 | | (205 ILCS 305/20.5 new) |
20 | | Sec. 20.5. Appointment of associate directors. |
21 | | (a) The board of directors of a credit union may, in its |
22 | | discretion, appoint one or more associate directors to serve |
23 | | in an advisory capacity. The board shall prescribe the duties |
24 | | of an associate director and the manner in which associate |
25 | | directors are appointed and removed. The board shall not |
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1 | | delegate to associate directors any of the duties or |
2 | | responsibilities prescribed by this Act or other applicable |
3 | | law to be performed by directors duly elected by their |
4 | | members. An associate director shall not be deemed or |
5 | | considered to be a director for any purpose under this Act. |
6 | | (b) Before appointing an associate director, the board |
7 | | shall confirm that the person meets all of the requirements to |
8 | | serve as a director, including, without limitation, a working |
9 | | familiarity with the financial and accounting practices of the |
10 | | credit union as set forth in subsection (c) of Section 30. |
11 | | (c) An associate director may participate in meetings of |
12 | | the board but may not vote or otherwise act as a director. With |
13 | | respect to any issue that comes before the board for |
14 | | deliberation, the board may request that all associate |
15 | | directors excuse themselves from the meeting of the board and |
16 | | the associate directors shall immediately comply with the |
17 | | request. |
18 | | (d) The board shall require each associate director to |
19 | | sign a confidentiality or non-disclosure agreement to ensure |
20 | | that information concerning the credit union remains |
21 | | confidential.
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22 | | (205 ILCS 305/23) (from Ch. 17, par. 4424)
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23 | | Sec. 23. Compensation of officials.
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24 | | (1) Directors and committee members may
receive reasonable |
25 | | compensation for their service as such, the amount of which |
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1 | | shall be set by the board of directors , in accordance with |
2 | | written policies and procedures established by the board of |
3 | | directors. If the Department determines the payment of |
4 | | director or committee member compensation, or both, creates a |
5 | | safety and soundness issue for a credit union, the Department |
6 | | shall utilize the standards set forth in 38 Ill. Adm. Code |
7 | | 190.25 and supplemental guidelines to address and resolve the |
8 | | issue. An enforcement action taken pursuant to 38 Ill. Adm. |
9 | | Code 190.25 and guidelines and specified by the Act shall be |
10 | | used to reduce or suspend the compensation paid to the |
11 | | directors and committee members . The Department shall, by |
12 | | rule, establish maximum rates of reasonable compensation that |
13 | | are generally applicable to credit unions considering factors |
14 | | the Department may establish from time to time, including, but |
15 | | not limited to, total assets, nonprofit cooperative structure, |
16 | | and the best interests of members.
"Compensation" as used in |
17 | | this subsection (1) refers to remuneration expense to the |
18 | | credit union for services provided by a director or committee |
19 | | member in
his or her capacity as director or committee member. |
20 | | The remuneration expense is in the form of monetary payments |
21 | | and shall be disclosed on an annual basis to the membership in |
22 | | the financial statement that is part of the annual membership |
23 | | meeting materials. The disclosure shall contain: (i) the |
24 | | amount paid to each director and (ii) the amount paid to the |
25 | | directors as a group. "Compensation" does not include any of |
26 | | the expenses described in subsections (2) and (3) of this |
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1 | | Section. |
2 | | (2) The credit union may incur the expense of providing
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3 | | reasonable life, health,
accident, and similar insurance |
4 | | protection benefits for directors and committee members.
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5 | | (3) Directors, committee members and
employees, while on |
6 | | official business of the credit union, may be reimbursed
for |
7 | | reasonable and necessary expenses. Alternatively, the credit |
8 | | union may make direct payment to a third party for such |
9 | | business expenses. Reasonable and necessary expenses may |
10 | | include the payment of travel costs for the foregoing |
11 | | officials and one guest per official. All payment of costs |
12 | | shall be made in accordance with written policies and |
13 | | procedures established by the board of directors.
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14 | | (4) The board of directors may establish
compensation for |
15 | | officers of the credit union.
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16 | | (Source: P.A. 101-567, eff. 8-23-19.)
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17 | | (205 ILCS 305/34) (from Ch. 17, par. 4435)
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18 | | Sec. 34. Duties of supervisory committee. |
19 | | (1) The supervisory committee
shall make or cause to be |
20 | | made an annual internal audit of the books and
affairs of the |
21 | | credit union to determine that the credit union's accounting
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22 | | records and reports are prepared promptly and accurately |
23 | | reflect operations
and results, that internal controls are |
24 | | established and effectively
maintained to safeguard the assets |
25 | | of the credit union, and that the
policies, procedures and |
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1 | | practices established by the board of directors
and management |
2 | | of the credit union are being properly administered. The |
3 | | supervisory committee
shall submit a report of that audit to |
4 | | the board of directors and a summary of that report to the |
5 | | members at the next annual
meeting of the credit union. It |
6 | | shall make or cause to be made such
supplementary audits as it |
7 | | deems necessary or as are required by the Secretary
or by the |
8 | | board of directors, and submit reports of these
supplementary |
9 | | audits to the Secretary or board of directors as applicable.
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10 | | If the supervisory committee has not engaged a licensed |
11 | | certified public accountant or licensed certified public |
12 | | accounting firm to make the internal audit,
the supervisory |
13 | | committee or other officials of the credit union shall not
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14 | | indicate or in any manner imply that such audit has been |
15 | | performed by a licensed certified
public accountant or |
16 | | licensed certified public accounting firm or that the audit |
17 | | represents the independent opinion of a licensed certified
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18 | | public accountant or licensed certified public accounting |
19 | | firm. The supervisory committee must retain its tapes and |
20 | | working papers
of each internal audit for inspection by the |
21 | | Department. The report of this
audit must be made on a form |
22 | | approved by the Secretary. A copy of the report
must be |
23 | | promptly delivered to the Secretary as set forth in paragraph |
24 | | (C) of subsection (3) .
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25 | | (2) The supervisory committee shall make or cause to be |
26 | | made at least
once each year a reasonable percentage |
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1 | | verification of members' share and
loan accounts, consistent |
2 | | with rules promulgated by the Secretary.
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3 | | (3) (A) The supervisory committee of a credit union with |
4 | | assets of $10,000,000
or more shall engage a licensed |
5 | | certified public accountant or licensed certified public |
6 | | accounting firm to perform an annual external
independent |
7 | | audit of the credit union's financial statements in accordance
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8 | | with generally accepted auditing standards and the financial |
9 | | statements shall be issued in accordance with accounting |
10 | | principles generally accepted in the United States of America. |
11 | | (B) The supervisory committee of a
credit union with |
12 | | assets of $5,000,000 or more, but less than $10,000,000,
shall |
13 | | engage a licensed certified public accountant or licensed |
14 | | certified public accounting firm to perform on an annual |
15 | | basis: (i) an agreed-upon procedures engagement under |
16 | | attestation standards established by the American Institute of |
17 | | Certified Public Accountants to minimally satisfy the |
18 | | supervisory committee internal audit standards set forth in |
19 | | subsection (1); or (ii) an external independent audit of the |
20 | | credit union's financial statements pursuant to the standards |
21 | | set forth in paragraph (A) of subsection (3).
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22 | | (C) Notwithstanding anything to the contrary in Section 6, |
23 | | each credit union organized under this Act shall select the |
24 | | annual period it desires to use for purposes of performing the |
25 | | external independent audit, agreed-upon procedures engagement, |
26 | | or internal audit described in this Section. The annual period |
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1 | | may end on the final day of any month and shall be construed to |
2 | | mean once every calendar year and not once every 12-month |
3 | | period. Irrespective of the annual period selected, the credit |
4 | | union shall complete its external independent audit report, |
5 | | agreed-upon procedures report, or internal audit report and |
6 | | deliver a copy to the Secretary no later than 120 days after |
7 | | the effective date of the audit or engagement, which shall |
8 | | mean the last day of the selected annual period. The external |
9 | | independent audit report or agreed-upon procedures report |
10 | | shall be completed and a copy thereof delivered to the |
11 | | Secretary no later than 120 days after the end of the calendar |
12 | | or fiscal year under audit or fiscal period for which the |
13 | | agreed-upon procedures are performed. A credit union or group |
14 | | of credit unions may obtain an extension of the due date upon |
15 | | application to and receipt of written approval from the |
16 | | Secretary. |
17 | | (D) If the credit union engages a licensed certified |
18 | | public accountant or licensed certified public accounting firm |
19 | | to perform an annual external independent audit of the credit |
20 | | union's financial statements pursuant to the standards in |
21 | | paragraph (A) of subsection (3) or an annual agreed-upon |
22 | | procedures engagement pursuant to the standards in paragraph |
23 | | (B) of subsection (3), then the annual internal audit |
24 | | requirements of subsection (1) shall be deemed satisfied and |
25 | | met in all respects. |
26 | | (4) In determining the appropriate balance in the |
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1 | | allowance for loan losses account, a credit union may |
2 | | determine its historical loss rate using a defined period of |
3 | | time of less than 5 years, provided that: |
4 | | (A) the methodology used to determine the defined |
5 | | period of time is formally documented in the credit |
6 | | union's policies and procedures and is appropriate to the |
7 | | credit union's size, business strategy, and loan portfolio |
8 | | characteristics and the economic environment of the areas |
9 | | and employers served by the credit union; |
10 | | (B) supporting documentation is maintained for the |
11 | | technique used to develop the credit union loss rates, |
12 | | including the period of time used to accumulate historical |
13 | | loss data and the factors considered in establishing the |
14 | | time frames; and |
15 | | (C) the external auditor conducting the credit union's |
16 | | financial statement audit has analyzed the methodology |
17 | | employed by the credit union and concludes that the |
18 | | financial statements, including the allowance for loan |
19 | | losses, are fairly stated in all material respects in |
20 | | accordance with U.S. Generally Accepted Accounting |
21 | | Principles, as promulgated by the Financial Accounting |
22 | | Standards Board. |
23 | | (5) A majority of the members of the supervisory committee
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24 | | shall constitute a quorum.
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25 | | (6) On an annual basis commencing January 1, 2015, the |
26 | | members of the supervisory committee shall receive training |
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1 | | related to their statutory duties. Supervisory committee |
2 | | members may receive the training through internal credit union |
3 | | training, external training offered by the credit union's |
4 | | retained auditors, trade associations, vendors, regulatory |
5 | | agencies, or any other sources or on-the-job experience, or a |
6 | | combination of those activities. The training may be received |
7 | | through any medium, including, but not limited to, |
8 | | conferences, workshops, audit closing meetings, seminars, |
9 | | teleconferences, webinars, and other Internet-based delivery |
10 | | channels. |
11 | | (Source: P.A. 100-778, eff. 8-10-18; 101-81, eff. 7-12-19.)
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12 | | (205 ILCS 305/51) (from Ch. 17, par. 4452)
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13 | | Sec. 51. Other loan programs.
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14 | | (1) Subject to such rules and regulations
as the Secretary |
15 | | may promulgate, a credit union may participate in loans
to |
16 | | credit union members jointly with other credit unions, |
17 | | corporations, or
financial institutions. An originating credit |
18 | | union may originate
loans only to its own members. A |
19 | | participating credit union that is
not the originating lender |
20 | | may participate in loans made to its own members or
to members |
21 | | of another participating credit union.
"Originating lender" |
22 | | means the participating credit union with which the member
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23 | | contracts. A master participation agreement must be properly |
24 | | executed, and the
agreement must include provisions for |
25 | | identifying, either through documents
incorporated by |
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1 | | reference or directly in the agreement, the participation loan
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2 | | or loans prior to their sale.
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3 | | (2) Any credit union with assets of $500,000 or more may |
4 | | loan to its members
under scholarship programs which are
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5 | | subject to a federal or state law providing 100% repayment |
6 | | guarantee.
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7 | | (3) A credit union may purchase the conditional sales
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8 | | contracts, notes
and similar instruments which evidence an |
9 | | indebtedness of its members. In the management of its assets, |
10 | | liabilities, and liquidity, a credit union may purchase the |
11 | | conditional sales contracts, notes, and other similar |
12 | | instruments that evidence the consumer indebtedness of the |
13 | | members of another credit union. "Consumer indebtedness" means |
14 | | indebtedness incurred for personal, family, or household |
15 | | purposes.
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16 | | (4) With approval of the board of directors, a credit |
17 | | union may make loans,
either on its own or jointly with other |
18 | | credit unions, corporations or
financial
institutions, to |
19 | | credit union organizations; provided, that the aggregate
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20 | | amount of all such loans outstanding shall not at any time |
21 | | exceed the greater
of 6% 3% of the paid-in and unimpaired |
22 | | capital and surplus of the credit
union or the amount |
23 | | authorized for federal credit unions.
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24 | | (5) With the approval of the board of directors, a credit |
25 | | union may make loans, either on its own or jointly with other |
26 | | credit unions, corporations, or financial institutions, to |
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1 | | community development financial institutions as defined in |
2 | | regulations issued by the U.S. Department of the Treasury and |
3 | | minority depository institutions as defined by the National |
4 | | Credit Union Administration. The aggregate amount of all such |
5 | | loans outstanding shall not at any time exceed 5% of the |
6 | | paid-in and unimpaired capital and surplus of the credit |
7 | | union. |
8 | | (Source: P.A. 97-133, eff. 1-1-12.)
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9 | | (205 ILCS 305/57) (from Ch. 17, par. 4458)
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10 | | Sec. 57. Group purchasing and marketing. |
11 | | (a) A credit union may, consistent with rules
and |
12 | | regulations promulgated by the Secretary, enter into |
13 | | cooperative marketing
arrangements to facilitate its members' |
14 | | voluntary purchase of such goods
and services as are in the |
15 | | interest of improving economic and social conditions
of the |
16 | | members.
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17 | | (b) A credit union may create and use descriptive and |
18 | | brand references to promote and market its identity, services, |
19 | | and products to its members. In the case of a merger pursuant |
20 | | to Section 63, the surviving credit union may identify the |
21 | | merging credit union as a division, branch, unit, or other |
22 | | descriptive reference that ensures the members understand they |
23 | | are dealing with one credit union rather than multiple credit |
24 | | unions, as of the effective date of the merger. |
25 | | (Source: P.A. 100-361, eff. 8-25-17.)
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1 | | (205 ILCS 305/59) (from Ch. 17, par. 4460)
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2 | | Sec. 59. Investment of funds.
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3 | | (a) Funds not used in loans to members may be
invested, |
4 | | pursuant to subsection (7) of Section 30 of this Act, and
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5 | | subject to Departmental rules and
regulations:
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6 | | (1) In securities, obligations or other instruments of |
7 | | or issued by or
fully guaranteed as to principal and |
8 | | interest by the United States of America
or any agency |
9 | | thereof or in any trust or trusts established for |
10 | | investing
directly or collectively in the same;
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11 | | (2) In obligations of any state of the United States, |
12 | | the District of
Columbia, the Commonwealth of Puerto Rico, |
13 | | and the several
territories organized
by Congress, or any |
14 | | political subdivision thereof; however, a credit union
may
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15 | | not invest more than 10% of its unimpaired capital and |
16 | | surplus in the
obligations of one issuer, exclusive of |
17 | | general obligations of the issuer, and
investments in |
18 | | municipal securities must be limited to securities rated |
19 | | in one
of the 4
highest rating categories by a nationally |
20 | | recognized statistical rating
organization;
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21 | | (3) In certificates of deposit or passbook type |
22 | | accounts issued by a state
or national bank, mutual |
23 | | savings bank or savings and loan association; provided
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24 | | that such institutions have their accounts insured by the |
25 | | Federal Deposit
Insurance Corporation or the Federal |
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1 | | Savings and Loan Insurance Corporation;
but provided, |
2 | | further, that a credit union's investment in an account in
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3 | | any one institution may exceed the insured limit on |
4 | | accounts;
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5 | | (4) In shares, classes of shares or share certificates |
6 | | of other credit
unions, including, but not limited to |
7 | | corporate credit unions; provided
that such credit unions |
8 | | have their members' accounts insured by the NCUA
or other |
9 | | approved insurers, and that if the members' accounts are |
10 | | so insured,
a credit union's investment may exceed the |
11 | | insured limit on accounts;
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12 | | (5) In shares of a cooperative society organized under |
13 | | the laws of this
State or the laws of the United States in |
14 | | the total amount not exceeding
10% of the unimpaired |
15 | | capital and surplus of the credit union; provided
that |
16 | | such investment shall first be approved by the Department;
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17 | | (6) In obligations of the State of Israel, or |
18 | | obligations fully guaranteed
by the State of Israel as to |
19 | | payment of principal and interest;
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20 | | (7) In shares, stocks or obligations of other |
21 | | financial institutions in
the total amount not exceeding |
22 | | 5% of the unimpaired capital and surplus
of the credit |
23 | | union;
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24 | | (8) In federal funds and bankers' acceptances;
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25 | | (9) In shares or stocks of Credit Union Service |
26 | | Organizations in the
total amount not exceeding the |
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1 | | greater of 6% 3% of the unimpaired
capital and surplus of |
2 | | the
credit union or the amount authorized for federal |
3 | | credit unions;
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4 | | (10) In corporate bonds identified as investment grade |
5 | | by at least one nationally recognized statistical rating |
6 | | organization, provided that: |
7 | | (i) the board of directors has established a |
8 | | written policy that addresses corporate bond |
9 | | investment procedures and how the credit union will |
10 | | manage credit risk, interest rate risk, liquidity |
11 | | risk, and concentration risk; and |
12 | | (ii) the credit union has documented in its |
13 | | records that a credit analysis of a particular |
14 | | investment and the issuing entity was conducted by the |
15 | | credit union, a third party on behalf of the credit |
16 | | union qualified by education or experience to assess |
17 | | the risk characteristics of corporate bonds, or a |
18 | | nationally recognized statistical rating agency before |
19 | | purchasing the investment and the analysis is updated |
20 | | at least annually for as long as it holds the |
21 | | investment; |
22 | | (11) To aid in the credit union's management of its |
23 | | assets, liabilities, and liquidity in the purchase of an |
24 | | investment interest in a pool of loans, in whole or in part |
25 | | and without regard to the membership of the borrowers, |
26 | | from other depository institutions and financial type |
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1 | | institutions, including mortgage banks, finance companies, |
2 | | insurance companies, and other loan sellers, subject to |
3 | | such safety and soundness standards, limitations, and |
4 | | qualifications as the Department may establish by rule or |
5 | | guidance from time to time; |
6 | | (12) To aid in the credit union's management of its |
7 | | assets, liabilities, and liquidity by receiving funds from |
8 | | another financial institution as evidenced by certificates |
9 | | of deposit, share certificates, or other classes of shares |
10 | | issued by the credit union to the financial institution; |
11 | | and |
12 | | (13) In the purchase and assumption of assets held by |
13 | | other financial institutions, with approval of the |
14 | | Secretary and subject to any safety and soundness |
15 | | standards, limitations, and qualifications as the |
16 | | Department may establish by rule or guidance from time to |
17 | | time ; and . |
18 | | (14) In the shares, stocks, or obligations of |
19 | | community development financial institutions as defined in |
20 | | regulations issued by the U.S. Department of the Treasury |
21 | | and minority depository institutions as defined by the |
22 | | National Credit Union Administration; however the |
23 | | aggregate amount of all such investments shall not at any |
24 | | time exceed 5% of the paid-in and unimpaired capital and |
25 | | surplus of the credit union. |
26 | | (b) As used in this Section: |
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1 | | "Political subdivision" includes, but is not
limited to, |
2 | | counties,
townships, cities, villages, incorporated towns, |
3 | | school districts, educational
service regions, special road |
4 | | districts, public water supply districts, fire
protection |
5 | | districts, drainage districts, levee districts, sewer |
6 | | districts,
housing authorities, park districts, and any
|
7 | | agency, corporation, or instrumentality of a state or its |
8 | | political
subdivisions, whether now or hereafter created and |
9 | | whether herein specifically
mentioned or not.
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10 | | "Financial institution" includes any bank, savings bank, |
11 | | savings and loan association, or credit union established |
12 | | under the laws of the United States, this State, or any other |
13 | | state. |
14 | | (c) A credit union investing to fund an employee benefit |
15 | | plan obligation is not subject to the investment limitations |
16 | | of this Act and this Section and may purchase an investment |
17 | | that would otherwise be impermissible if the investment is |
18 | | directly related to the credit union's obligation under the |
19 | | employee benefit plan and the credit union holds the |
20 | | investment only for so long as it has an actual or potential |
21 | | obligation under the employee benefit plan.
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22 | | (d) If a credit union acquires loans from another |
23 | | financial institution or financial-type institution pursuant |
24 | | to this Section, the credit union shall be authorized to |
25 | | provide loan servicing and collection services in connection |
26 | | with those loans. |
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1 | | (Source: P.A. 100-361, eff. 8-25-17; 100-778, eff. 8-10-18; |
2 | | 101-567, eff. 8-23-19.)
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3 | | (205 ILCS 305/64.7) |
4 | | Sec. 64.7. Network credit unions. |
5 | | (a) Two or more credit unions merging pursuant to Section |
6 | | 63 of this Act may elect to request a network credit union |
7 | | designation for the surviving credit union from the Secretary. |
8 | | The request shall be set forth in the plan of merger and |
9 | | certificate of merger executed by the credit unions and |
10 | | submitted to the Secretary pursuant to subsection (4) of |
11 | | Section 63. The Secretary's approval of a certificate of |
12 | | merger containing a network credit union designation request |
13 | | shall constitute approval of the use of the network |
14 | | designation as a brand or other identifier of the surviving |
15 | | credit union. If the surviving credit union desires to include |
16 | | the network designation in its legal name, make any other |
17 | | change to its legal name, or both, it shall proceed with an |
18 | | amendment to the articles of incorporation and bylaws of the |
19 | | surviving credit union pursuant to Section 4 of this Act. |
20 | | (b) A network credit union is a cooperative business |
21 | | structure comprised of 2 or more merging credit unions with a |
22 | | collective goal of efficiently serving their combined |
23 | | membership and gaining economies of scale through common |
24 | | vision, strategy and initiative. The merging credit unions |
25 | | shall be identified as divisional credit unions, branches, or |
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1 | | units of the network credit union or by other descriptive |
2 | | references that ensure the members understand they are dealing |
3 | | with one credit union rather than multiple credit unions. |
4 | | Descriptive and brand references may also be created and used |
5 | | to promote the identity, services, and products of the network |
6 | | credit union to its members. |
7 | | (c) Each divisional credit union may have an advisory |
8 | | board of directors and a chief management official to assist |
9 | | in maintaining and leveraging its respective local identity |
10 | | for the benefit of the surviving credit union. The divisional |
11 | | credit union advisory boards shall be appointed by the network |
12 | | credit union board of directors. Each divisional credit |
13 | | union's advisory board of directors may appoint a divisional |
14 | | credit union chief management official and may also appoint |
15 | | one of its directors to serve on the network credit union's |
16 | | nominating committee. A divisional credit union may determine |
17 | | to identify its advisory board as a committee and its |
18 | | divisional chief management official with a title it deems |
19 | | reasonable and appropriate. The network credit union board of |
20 | | directors shall require each advisory board member to sign a |
21 | | confidentiality or non-disclosure agreement to ensure that |
22 | | information concerning the credit union remains confidential. |
23 | | (d) The network credit union is the surviving legal entity |
24 | | in the merger and supervision, examination, audit, reporting, |
25 | | governance, and management shall be conducted or performed at |
26 | | the network credit union level. All share insurance, safety |