(205 ILCS 305/16.5)
(This Section may contain text from a Public Act with a delayed effective date
Service to target markets.
(a) As used in this Section:
"Target market" means an investment area or a targeted population, or both, as defined in the Community Development Banking and Financial Institutions Act of 1994, 12 U.S.C. 4702, and regulations issued thereunder by the U.S. Department of the Treasury pursuant to 12 CFR 1805.104 et seq.
Terms used in this Section that are not defined in this Section shall have the meanings ascribed to them in the U.S. Department of Treasury regulations identified in this subsection.
(b) Notwithstanding anything to the contrary in Section 15 or 16.1, persons who reside in investment areas and targeted populations consisting of individuals or identifiable groups of individuals who are low-income persons or lack adequate access to financial products or financial services may be admitted to membership in a credit union in accordance with the terms of the credit union's written business plan submitted to the Secretary under subsection (e).
(c) In addition to serving persons who reside in investment areas that become members pursuant to subsection (b), a credit union may indirectly serve investment areas by making loans to or investments in community development financial institutions, minority depository institutions, and other businesses that serve the investment areas, subject to the limits set forth in subsection (5) of Section 51 and paragraph (14) of subsection (a) of Section 59.
(d) In addition to serving targeted populations of individuals that become members pursuant to subsection (b), a credit union may indirectly serve members of a targeted population by making loans to or investments in community development financial institutions, minority depository institutions, and other businesses that serve the targeted population, subject to the limits set forth in subsection (5) of Section 51 and paragraph (14) of subsection (a) of Section 59.
(e) A credit union desiring to serve a target market in accordance with this Section shall do so pursuant to a written business plan that confirms the target market meets the definitional criteria set forth in subsection (a) and identifies the financial product and financial service needs of the target market, the financial products and financial services to be delivered, and the manner of delivery of those financial products and financial services. The credit union must submit the business plan to the Secretary. The Secretary may, in his or her sole discretion, approve the business plan, disapprove the business plan, or require the credit union to modify the business plan to seek approval of the target market as an occupational, community, or associational common bond or common bonds, pursuant to 38 Ill. Adm. Code 190.10. The credit union must be advised in writing of the findings of the Secretary in support of the determination and the specific and reasonable time period in which to file a modified plan. If the Secretary approves the business plan, the credit union shall be required to add the target market to its field of membership.
(Source: P.A. 102-774, eff. 1-1-23.)