State of Illinois
91st General Assembly
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91_HB3838ren

 
HB3838 Re-Enrolled                             LRB9112086JSgc

 1        AN ACT concerning financial institutions.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois  Banking  Act  is  amended  by
 5    changing Section 48.1 and adding Section 48.6 as follows:

 6        (205 ILCS 5/48.1) (from Ch. 17, par. 360)
 7        Sec. 48.1.  Customer financial records; confidentiality.
 8        (a)  For the purpose of this Section, the term "financial
 9    records" means any original, any copy, or any summary of:
10             (1)  a document granting signature authority over  a
11        deposit or account;
12             (2)  a statement, ledger card or other record on any
13        deposit  or  account,  which shows each transaction in or
14        with respect to that account;
15             (3)  a check, draft or money order drawn on  a  bank
16        or issued and payable by a bank; or
17             (4)  any    other    item   containing   information
18        pertaining  to  any  relationship  established   in   the
19        ordinary  course  of a bank's business between a bank and
20        its customer, including  financial  statements  or  other
21        financial information provided by the customer.
22        (b)  This Section does not prohibit:
23             (1)  The   preparation,   examination,  handling  or
24        maintenance of any  financial  records  by  any  officer,
25        employee  or  agent  of  a  bank  having  custody  of the
26        records, or the examination of the records by a certified
27        public accountant engaged  by  the  bank  to  perform  an
28        independent audit.
29             (2)  The examination of any financial records by, or
30        the  furnishing  of  financial  records by a bank to, any
31        officer, employee or agent of  (i)  the  Commissioner  of
 
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 1        Banks  and  Real Estate, (ii) after May 31, 1997, a state
 2        regulatory authority authorized to examine a branch of  a
 3        State   bank   located   in   another  state,  (iii)  the
 4        Comptroller of the Currency,  (iv)  the  Federal  Reserve
 5        Board,  or  (v) the Federal Deposit Insurance Corporation
 6        for use solely in  the  exercise  of  his  duties  as  an
 7        officer, employee, or agent.
 8             (3)  The   publication   of   data   furnished  from
 9        financial records relating to customers  where  the  data
10        cannot  be  identified  to  any  particular  customer  or
11        account.
12             (4)  The making of reports or returns required under
13        Chapter 61 of the Internal Revenue Code of 1986.
14             (5)  Furnishing  information concerning the dishonor
15        of any negotiable instrument permitted  to  be  disclosed
16        under the Uniform Commercial Code.
17             (6)  The  exchange in the regular course of business
18        of (i) credit information between a bank and other  banks
19        or  financial  institutions  or  commercial  enterprises,
20        directly  or  through a consumer reporting agency or (ii)
21        financial records or information derived  from  financial
22        records  between  a  bank  and  other  banks or financial
23        institutions or commercial enterprises for the purpose of
24        conducting due diligence pursuant to a purchase  or  sale
25        involving the bank or assets or liabilities of the bank.
26             (7)  The    furnishing   of   information   to   the
27        appropriate law enforcement authorities  where  the  bank
28        reasonably believes it has been the victim of a crime.
29             (8)  The furnishing of information under the Uniform
30        Disposition of Unclaimed Property Act.
31             (9)  The   furnishing   of   information  under  the
32        Illinois Income Tax  Act  and  the  Illinois  Estate  and
33        Generation-Skipping Transfer Tax Act.
34             (10)  The   furnishing   of  information  under  the
 
HB3838 Re-Enrolled             -3-             LRB9112086JSgc
 1        federal Currency and Foreign Transactions  Reporting  Act
 2        Title 31, United States Code, Section 1051 et seq.
 3             (11)  The  furnishing of information under any other
 4        statute that by its terms or by  regulations  promulgated
 5        thereunder  requires  the disclosure of financial records
 6        other than by subpoena, summons, warrant, or court order.
 7             (12)  The  furnishing  of  information   about   the
 8        existence  of  an  account  of  a  person  to  a judgment
 9        creditor of that person who has made  a  written  request
10        for that information.
11             (13)  The exchange in the regular course of business
12        of information between commonly owned banks in connection
13        with  a  transaction  authorized  under paragraph (23) of
14        Section 5 and conducted at an affiliate facility.
15             (14)  The furnishing of  information  in  accordance
16        with   the   federal  Personal  Responsibility  and  Work
17        Opportunity Reconciliation Act of 1996. Any bank governed
18        by this Act  shall  enter  into  an  agreement  for  data
19        exchanges  with  a State agency provided the State agency
20        pays to the bank a  reasonable  fee  not  to  exceed  its
21        actual  cost  incurred.   A bank providing information in
22        accordance with this item shall  not  be  liable  to  any
23        account  holder  or  other  person  for any disclosure of
24        information  to  a  State  agency,  for  encumbering   or
25        surrendering any assets held by the bank in response to a
26        lien  or  order to withhold and deliver issued by a State
27        agency, or for any other action taken  pursuant  to  this
28        item, including individual or mechanical errors, provided
29        the  action  does  not  constitute  gross  negligence  or
30        willful  misconduct.  A  bank shall have no obligation to
31        hold, encumber, or surrender assets  until  it  has  been
32        served  with  a  subpoena,  summons,  warrant,  court  or
33        administrative order, lien, or levy.
34             (15)  The exchange in the regular course of business
 
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 1        of  information  between  a  bank  and any commonly owned
 2        affiliate of the bank, subject to the provisions  of  the
 3        Financial Institutions Insurance Sales Law.
 4             (16)  The   furnishing   of   information   to   law
 5        enforcement authorities, the Illinois Department on Aging
 6        and  its  regional  administrative and provider agencies,
 7        the Department of  Human  Services  Office  of  Inspector
 8        General, or public guardians, if the bank suspects that a
 9        customer who is an elderly or disabled person has been or
10        may  become the victim of financial exploitation. For the
11        purposes of  this  item  (16),  the  term:  (i)  "elderly
12        person"  means  a  person who is 60 or more years of age,
13        (ii)  "disabled  person"  means  a  person  who  has   or
14        reasonably  appears  to  the  bank  to have a physical or
15        mental disability that impairs his or her ability to seek
16        or  obtain   protection   from   or   prevent   financial
17        exploitation,  and  (iii)  "financial exploitation" means
18        tortious or illegal use of the assets or resources of  an
19        elderly   or   disabled  person,  and  includes,  without
20        limitation, misappropriation of the elderly  or  disabled
21        person's  assets  or resources by undue influence, breach
22        of   fiduciary   relationship,    intimidation,    fraud,
23        deception,  extortion,  or the use of assets or resources
24        in  any  manner  contrary  to  law.  A  bank  or   person
25        furnishing  information  pursuant to this item (16) shall
26        be entitled to the  same  rights  and  protections  as  a
27        person  furnishing  information under the Elder Abuse and
28        Neglect Act and the Illinois  Domestic  Violence  Act  of
29        1986.
30        (c)  Except as otherwise provided by this Act, a bank may
31    not  disclose  to  any  person, except to the customer or his
32    duly authorized agent, any  financial  records  or  financial
33    information  obtained from financial records relating to that
34    customer of that bank unless:
 
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 1             (1)  the customer has authorized disclosure  to  the
 2        person;
 3             (2)  the financial records are disclosed in response
 4        to  a  lawful  subpoena,  summons, warrant or court order
 5        which meets the requirements of subsection  (d)  of  this
 6        Section; or
 7             (3)  the bank is attempting to collect an obligation
 8        owed   to  the  bank  and  the  bank  complies  with  the
 9        provisions of  Section  2I  of  the  Consumer  Fraud  and
10        Deceptive Business Practices Act.
11        (d)  A   bank  shall  disclose  financial  records  under
12    paragraph (2) of subsection  (c)  of  this  Section  under  a
13    lawful  subpoena, summons, warrant, or court order only after
14    the bank mails a copy of the subpoena, summons,  warrant,  or
15    court  order to the person establishing the relationship with
16    the  bank,   if   living,   and,   otherwise   his   personal
17    representative,  if known, at his last known address by first
18    class mail, postage prepaid, unless the bank is  specifically
19    prohibited  from notifying the person by order of court or by
20    applicable State or federal law.  A bank  shall  not  mail  a
21    copy  of a subpoena to any person pursuant to this subsection
22    if the  subpoena  was  issued  by  a  grand  jury  under  the
23    Statewide Grand Jury Act.
24        (e)  Any  officer or employee of a bank who knowingly and
25    willfully furnishes financial records in  violation  of  this
26    Section is guilty of a business offense and, upon conviction,
27    shall be fined not more than $1,000.
28        (f)  Any  person  who  knowingly and willfully induces or
29    attempts to induce any officer  or  employee  of  a  bank  to
30    disclose  financial  records  in violation of this Section is
31    guilty of a business offense and, upon conviction,  shall  be
32    fined not more than $1,000.
33        (g)  A  bank  shall  be  reimbursed  for  costs  that are
34    reasonably necessary and that have been directly incurred  in
 
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 1    searching  for,  reproducing,  or transporting books, papers,
 2    records, or other data of a customer required or requested to
 3    be produced pursuant to a lawful subpoena, summons,  warrant,
 4    or  court  order.  The Commissioner shall determine the rates
 5    and conditions under which payment may be made.
 6    (Source: P.A.  90-18,  eff.  7-1-97;  90-665,  eff.  7-30-98;
 7    91-330, eff. 7-29-99.)

 8        (205 ILCS 5/48.6 new)
 9        Sec.  48.6.   Retention of records.  Unless a federal law
10    requires otherwise, the Commissioner may  by  rule  prescribe
11    periods of time for which banks operating under this Act must
12    retain  records  and  after the expiration of which, the bank
13    may destroy those records.  No liability shall accrue against
14    the bank, the Commissioner, or this State for the destruction
15    of records according to rules of the Commissioner promulgated
16    under  the  authority  of  this  Section.  In  any  cause  or
17    proceeding in which any records may be called in question  or
18    be  demanded  by any bank, a showing of the expiration of the
19    period so prescribed shall be sufficient excuse  for  failure
20    to produce them.

21        Section 10.  The Illinois Savings and Loan Act of 1985 is
22    amended  by  changing  Sections  1-10.14, 1-10.21, and 3-8 as
23    follows:

24        (205 ILCS 105/1-10.14) (from Ch. 17, par. 3301-10.14)
25        Sec. 1-10.14.  "Person": an individual, limited liability
26    company,   partnership,   joint   venture,   trust,   estate,
27    unincorporated association, or corporation.
28    (Source: P.A. 84-543.)

29        (205 ILCS 105/1-10.21) (from Ch. 17, par. 3301-10.21)
30        Sec. 1-10.21.  "Service Corporation": any corporation  or
 
HB3838 Re-Enrolled             -7-             LRB9112086JSgc
 1    limited  liability  company which is 90% or more owned by one
 2    or  more  associations,  whose  purpose   or   purposes   are
 3    reasonably  incident  to  the  accomplishment  of the express
 4    powers  conferred  upon  associations  by  this  Act   or   a
 5    corporation  or  limited  liability company chartered for any
 6    purpose  whatsoever  by  at  least  one  association   or   a
 7    corporation   or   limited  liability  company  in  which  an
 8    association has a controlling interest, and the ownership  of
 9    all  of  whose  stock or ownership interest is subject to the
10    regulations of the Commissioner.
11    (Source: P.A. 84-543.)

12        (205 ILCS 105/3-8) (from Ch. 17, par. 3303-8)
13        Sec. 3-8.  Access to  books  and  records;  communication
14    with members.
15        (a)  Every  member  or  holder  of capital shall have the
16    right to inspect the books and  records  of  the  association
17    that   pertain  to  his  account.  Otherwise,  the  right  of
18    inspection and examination of the books and records shall  be
19    limited  as  provided  in this Act, and no other person shall
20    have access to the books and records or shall be entitled  to
21    a list of the members.
22        (b)  For the purpose of this Section, the term "financial
23    records"  means any original, any copy, or any summary of (i)
24    a document granting signature authority  over  a  deposit  or
25    account;  (ii)  a  statement, ledger card, or other record on
26    any deposit or account that shows each transaction in or with
27    respect to that account; (iii) a check, draft, or money order
28    drawn  on  an  association  or  issued  and  payable  by   an
29    association;  or  (iv)  any other item containing information
30    pertaining to any relationship established  in  the  ordinary
31    course  of  an  association's business between an association
32    and its customer.
33        (c)  This Section does not prohibit:
 
HB3838 Re-Enrolled             -8-             LRB9112086JSgc
 1             (1)  The  preparation,  examination,  handling,   or
 2        maintenance  of  any  financial  records  by any officer,
 3        employee, or agent of an association  having  custody  of
 4        those  records  or  the examination of those records by a
 5        certified public accountant engaged by the association to
 6        perform an independent audit;
 7             (2)  The examination of any financial records by, or
 8        the furnishing of financial records by an association to,
 9        any officer, employee, or agent of  the  Commissioner  of
10        Banks and Real Estate, Federal Savings and Loan Insurance
11        Corporation and its successors, Federal Deposit Insurance
12        Corporation,   Resolution   Trust   Corporation  and  its
13        successors,  Federal  Home  Loan  Bank  Board   and   its
14        successors, Office of Thrift Supervision, Federal Housing
15        Finance  Board, Board of Governors of the Federal Reserve
16        System, any Federal Reserve Bank, or the  Office  of  the
17        Comptroller  of  the  Currency  for  use  solely  in  the
18        exercise of his duties as an officer, employee, or agent;
19             (3)  The   publication   of   data   furnished  from
20        financial records  relating  to  members  or  holders  of
21        capital  where  the  data  cannot  be  identified  to any
22        particular member, holder of capital, or account;
23             (4)  The making of reports or returns required under
24        Chapter 61 of the Internal Revenue Code of 1986;
25             (5)  Furnishing information concerning the  dishonor
26        of  any  negotiable  instrument permitted to be disclosed
27        under the Uniform Commercial Code;
28             (6)  The exchange in the regular course of  business
29        of  credit  information  between an association and other
30        associations  or  financial  institutions  or  commercial
31        enterprises, directly or  through  a  consumer  reporting
32        agency;
33             (7)  The    furnishing   of   information   to   the
34        appropriate  law  enforcement   authorities   where   the
 
HB3838 Re-Enrolled             -9-             LRB9112086JSgc
 1        association reasonably believes it has been the victim of
 2        a crime;
 3             (8)  The  furnishing  of information pursuant to the
 4        Uniform Disposition of Unclaimed Property Act;
 5             (9)  The furnishing of information pursuant  to  the
 6        Illinois  Income  Tax  Act  and  the  Illinois Estate and
 7        Generation-Skipping Transfer Tax Act;
 8             (10)  The furnishing of information pursuant to  the
 9        federal  "Currency  and  Foreign  Transactions  Reporting
10        Act",  (Title  31,  United  States  Code, Section 1051 et
11        seq.);
12             (11)  The furnishing of information pursuant to  any
13        other  statute  that  by  its  terms  or  by  regulations
14        promulgated   thereunder   requires   the  disclosure  of
15        financial  records  other  than  by  subpoena,   summons,
16        warrant, or court order;
17             (12)  The   exchange   of   information  between  an
18        association and an affiliate of the association; as  used
19        in   this   item,   "affiliate"   includes  any  company,
20        partnership, or organization that controls, is controlled
21        by, or is under common control with an association.
22             (13)  The furnishing of  information  in  accordance
23        with   the   federal  Personal  Responsibility  and  Work
24        Opportunity Reconciliation Act of 1996.  Any  association
25        governed  by  this  Act shall enter into an agreement for
26        data exchanges with a State  agency  provided  the  State
27        agency  pays  to  the association a reasonable fee not to
28        exceed  its  actual  cost   incurred.    An   association
29        providing  information in accordance with this item shall
30        not be liable to any account holder or other  person  for
31        any  disclosure  of  information  to  a State agency, for
32        encumbering  or  surrendering  any  assets  held  by  the
33        association in response to a lien or  order  to  withhold
34        and  deliver  issued  by a State agency, or for any other
 
HB3838 Re-Enrolled             -10-            LRB9112086JSgc
 1        action taken pursuant to this item, including  individual
 2        or  mechanical  errors,  provided  the  action  does  not
 3        constitute  gross  negligence  or  willful misconduct. An
 4        association shall have no obligation to  hold,  encumber,
 5        or  surrender  assets  until  it  has  been served with a
 6        subpoena,  summons,  warrant,  court  or   administrative
 7        order, lien, or levy.
 8             (14)  The   furnishing   of   information   to   law
 9        enforcement authorities, the Illinois Department on Aging
10        and  its  regional  administrative and provider agencies,
11        the Department of  Human  Services  Office  of  Inspector
12        General, or public guardians, if the association suspects
13        that  a customer who is an elderly or disabled person has
14        been or may become the victim of financial  exploitation.
15        For  the  purposes  of  this  item  (14),  the  term: (i)
16        "elderly person" means a person who is 60 or  more  years
17        of  age, (ii) "disabled person" means a person who has or
18        reasonably appears to the association to have a  physical
19        or  mental  disability that impairs his or her ability to
20        seek or  obtain  protection  from  or  prevent  financial
21        exploitation,  and  (iii)  "financial exploitation" means
22        tortious or illegal use of the assets or resources of  an
23        elderly   or   disabled  person,  and  includes,  without
24        limitation, misappropriation of the elderly  or  disabled
25        person's  assets  or resources by undue influence, breach
26        of   fiduciary   relationship,    intimidation,    fraud,
27        deception,  extortion,  or the use of assets or resources
28        in any manner contrary to law. An association  or  person
29        furnishing  information  pursuant to this item (14) shall
30        be entitled to the  same  rights  and  protections  as  a
31        person  furnishing  information under the Elder Abuse and
32        Neglect Act and the Illinois  Domestic  Violence  Act  of
33        1986.
34        (d)  An  association  may  not  disclose  to  any person,
 
HB3838 Re-Enrolled             -11-            LRB9112086JSgc
 1    except to the  member  or  holder  of  capital  or  his  duly
 2    authorized  agent,  any  financial  records  relating to that
 3    member or holder of capital of that association unless:
 4             (1)  The member or holder of capital has  authorized
 5        disclosure to the person; or
 6             (2)  The financial records are disclosed in response
 7        to  a  lawful  subpoena, summons, warrant, or court order
 8        that meets the requirements of  subsection  (e)  of  this
 9        Section.
10        (e)  An  association  shall  disclose  financial  records
11    under  subsection  (d)  of  this Section pursuant to a lawful
12    subpoena, summons, warrant, or court  order  only  after  the
13    association  mails  a copy of the subpoena, summons, warrant,
14    or court order to the person  establishing  the  relationship
15    with the association, if living, and, otherwise, his personal
16    representative,  if known, at his last known address by first
17    class  mail,  postage  prepaid,  unless  the  association  is
18    specifically prohibited from notifying that person  by  order
19    of court.
20        (f) (1)  Any  officer  or  employee of an association who
21    knowingly  and  willfully  furnishes  financial  records   in
22    violation  of  this  Section  is guilty of a business offense
23    and, upon conviction, shall be fined not more than $1,000.
24        (2)  Any person who knowingly and  willfully  induces  or
25    attempts  to induce any officer or employee of an association
26    to disclose financial records in violation of this Section is
27    guilty of a business offense and, upon conviction,  shall  be
28    fined not more than $1,000.
29        (g)  However,  if  any member desires to communicate with
30    the other members of the association with  reference  to  any
31    question  pending  or  to  be  presented  at a meeting of the
32    members, the  association  shall  give  him  upon  request  a
33    statement  of  the  approximate number of members entitled to
34    vote at the meeting and an estimate of the cost of  preparing
 
HB3838 Re-Enrolled             -12-            LRB9112086JSgc
 1    and  mailing  the  communication.  The requesting member then
 2    shall submit the communication to the Commissioner who, if he
 3    finds it to be appropriate and truthful, shall direct that it
 4    be prepared and mailed to the  members  upon  the  requesting
 5    member's  payment  or  adequate  provision for payment of the
 6    expenses of preparation and mailing.
 7        (h)  An Association shall be reimbursed  for  costs  that
 8    are  necessary  and  that  have  been  directly  incurred  in
 9    searching  for,  reproducing,  or transporting books, papers,
10    records,  or  other  data  of  a  customer  required  to   be
11    reproduced  pursuant  to a lawful subpoena, warrant, or court
12    order.
13    (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)

14        Section 15.  The Savings Bank Act is amended by  changing
15    Sections 1007.90, 1007.105, and 4013 as follows:

16        (205 ILCS 205/1007.90) (from Ch. 17, par. 7301-7.90)
17        Sec. 1007.90.  "Person" means an individual, corporation,
18    limited liability company, partnership, joint venture, trust,
19    estate, or unincorporated association.
20    (Source: P.A. 86-1213.)

21        (205 ILCS 205/1007.105) (from Ch. 17, par. 7301-7.105)
22        Sec.   1007.105.    "Service   corporation"   means   any
23    corporation  or limited liability company that is 51% or more
24    owned by one or more savings banks, or by savings  banks  and
25    other  depository institutions, whose purposes are reasonably
26    incident to the accomplishment of the powers  conferred  upon
27    savings banks by this Act.
28    (Source: P.A. 91-97, eff. 7-9-99.)

29        (205 ILCS 205/4013) (from Ch. 17, par. 7304-13)
30        Sec.  4013.   Access  to books and records; communication

 
HB3838 Re-Enrolled             -13-            LRB9112086JSgc
 1    with members and shareholders.
 2        (a)  Every member or shareholder shall have the right  to
 3    inspect books and records of the savings bank that pertain to
 4    his   accounts.   Otherwise,  the  right  of  inspection  and
 5    examination of the books and  records  shall  be  limited  as
 6    provided  in  this Act, and no other person shall have access
 7    to the books and records nor shall be entitled to a  list  of
 8    the members or shareholders.
 9        (b)  For the purpose of this Section, the term "financial
10    records"  means any original, any copy, or any summary of (1)
11    a document granting signature authority  over  a  deposit  or
12    account; (2) a statement, ledger card, or other record on any
13    deposit  or  account  that  shows each transaction in or with
14    respect to that account; (3) a check, draft, or  money  order
15    drawn  on  a  savings bank or issued and payable by a savings
16    bank; or (4) any other item containing information pertaining
17    to any relationship established in the ordinary course  of  a
18    savings  bank's  business  between  a  savings  bank  and its
19    customer.
20        (c)  This Section does not prohibit:
21             (1)  The  preparation  examination,   handling,   or
22        maintenance  of  any  financial   records by any officer,
23        employee, or agent of a savings bank  having  custody  of
24        records  or  examination of records by a certified public
25        accountant engaged by the  savings  bank  to  perform  an
26        independent audit.
27             (2)  The examination of any financial records by, or
28        the furnishing of financial records by a savings bank to,
29        any  officer,  employee,  or agent of the Commissioner of
30        Banks and Real Estate or the  Federal  Deposit  Insurance
31        Corporation  for use solely in the exercise of his duties
32        as an officer, employee, or agent.
33             (3)  The  publication   of   data   furnished   from
34        financial  records  relating  to  members  or  holders of
 
HB3838 Re-Enrolled             -14-            LRB9112086JSgc
 1        capital where  the  data  cannot  be  identified  to  any
 2        particular member, shareholder, or account.
 3             (4)  The making of reports or returns required under
 4        Chapter 61 of the Internal Revenue Code of 1986.
 5             (5)  Furnishing  information concerning the dishonor
 6        of any negotiable instrument permitted  to  be  disclosed
 7        under the Uniform Commercial Code.
 8             (6)  The  exchange in the regular course of business
 9        of credit information between a savings  bank  and  other
10        savings  banks  or  financial  institutions or commercial
11        enterprises, directly or  through  a  consumer  reporting
12        agency.
13             (7)  The    furnishing   of   information   to   the
14        appropriate law enforcement authorities where the savings
15        bank reasonably believes it has  been  the  victim  of  a
16        crime.
17             (8)  The  furnishing  of information pursuant to the
18        Uniform Disposition of Unclaimed Property Act.
19             (9)  The furnishing of information pursuant  to  the
20        Illinois  Income  Tax  Act  and  the  Illinois Estate and
21        Generation-Skipping Transfer Tax Act.
22             (10)  The furnishing of information pursuant to  the
23        federal  "Currency  and  Foreign  Transactions  Reporting
24        Act",  (Title  31,  United  States  Code, Section 1051 et
25        seq.).
26             (11)  The furnishing of information pursuant to  any
27        other  statute  which  by  its  terms  or  by regulations
28        promulgated  thereunder  requires   the   disclosure   of
29        financial   records  other  than  by  subpoena,  summons,
30        warrant, or court order.
31             (12)  The furnishing of  information  in  accordance
32        with   the   federal  Personal  Responsibility  and  Work
33        Opportunity Reconciliation Act of 1996. Any savings  bank
34        governed  by  this  Act shall enter into an agreement for
 
HB3838 Re-Enrolled             -15-            LRB9112086JSgc
 1        data exchanges with a State  agency  provided  the  State
 2        agency  pays  to the savings bank a reasonable fee not to
 3        exceed  its  actual  cost  incurred.   A   savings   bank
 4        providing  information in accordance with this item shall
 5        not be liable to any account holder or other  person  for
 6        any  disclosure  of  information  to  a State agency, for
 7        encumbering  or  surrendering  any  assets  held  by  the
 8        savings bank in response to a lien or order  to  withhold
 9        and  deliver  issued  by a State agency, or for any other
10        action taken pursuant to this item, including  individual
11        or  mechanical  errors,  provided  the  action  does  not
12        constitute  gross  negligence  or  willful misconduct.  A
13        savings bank shall have no obligation to hold,  encumber,
14        or  surrender  assets  until  it  has  been served with a
15        subpoena,  summons,  warrant,  court  or   administrative
16        order, lien, or levy.
17             (13)  The   furnishing   of   information   to   law
18        enforcement authorities, the Illinois Department on Aging
19        and  its  regional  administrative and provider agencies,
20        the Department of  Human  Services  Office  of  Inspector
21        General,   or  public  guardians,  if  the  savings  bank
22        suspects that a customer who is an  elderly  or  disabled
23        person  has  been  or  may become the victim of financial
24        exploitation. For the purposes of  this  item  (13),  the
25        term:  (i)  "elderly  person" means a person who is 60 or
26        more years of age, (ii) "disabled person" means a  person
27        who has or reasonably appears to the savings bank to have
28        a  physical  or mental disability that impairs his or her
29        ability to seek or  obtain  protection  from  or  prevent
30        financial     exploitation,    and    (iii)    "financial
31        exploitation" means tortious or illegal use of the assets
32        or resources  of  an  elderly  or  disabled  person,  and
33        includes,  without  limitation,  misappropriation  of the
34        elderly or disabled person's assets or resources by undue
 
HB3838 Re-Enrolled             -16-            LRB9112086JSgc
 1        influence,    breach    of    fiduciary     relationship,
 2        intimidation,  fraud, deception, extortion, or the use of
 3        assets or resources in any  manner  contrary  to  law.  A
 4        savings bank or person furnishing information pursuant to
 5        this  item  (13) shall be entitled to the same rights and
 6        protections as a person furnishing information under  the
 7        Elder  Abuse  and  Neglect  Act and the Illinois Domestic
 8        Violence Act of 1986.
 9        (d)  A savings bank  may  not  disclose  to  any  person,
10    except  to  the  member  or  holder  of  capital  or his duly
11    authorized agent, any  financial  records  relating  to  that
12    member or shareholder of the savings bank unless:
13             (1)  the   member   or  shareholder  has  authorized
14        disclosure to the person; or
15             (2)  the financial records are disclosed in response
16        to a lawful subpoena, summons, warrant,  or  court  order
17        that  meets  the  requirements  of subsection (e) of this
18        Section.
19        (e)  A savings  bank  shall  disclose  financial  records
20    under  subsection  (d)  of  this Section pursuant to a lawful
21    subpoena, summons, warrant, or court  order  only  after  the
22    savings  bank mails a copy of the subpoena, summons, warrant,
23    or court order to the person  establishing  the  relationship
24    with the savings bank, if living, and otherwise, his personal
25    representative,  if known, at his last known address by first
26    class mail, postage  prepaid,  unless  the  savings  bank  is
27    specifically prohibited from notifying the person by order of
28    court.
29        (f)  Any  officer  or  employee  of  a  savings  bank who
30    knowingly  and  willfully  furnishes  financial  records   in
31    violation  of  this  Section  is guilty of a business offense
32    and, upon conviction, shall be fined not more than $1,000.
33        (g)  Any person who knowingly and  willfully  induces  or
34    attempts  to induce any officer or employee of a savings bank
 
HB3838 Re-Enrolled             -17-            LRB9112086JSgc
 1    to disclose financial records in violation of this Section is
 2    guilty of a business offense and, upon conviction,  shall  be
 3    fined not more than $1,000.
 4        (h)  If  any member or shareholder desires to communicate
 5    with the other members or shareholders of  the  savings  bank
 6    with  reference to any question pending or to be presented at
 7    an annual or special meeting, the  savings  bank  shall  give
 8    that  person,  upon  request,  a statement of the approximate
 9    number of members or shareholders entitled  to  vote  at  the
10    meeting  and an estimate of the cost of preparing and mailing
11    the communication.  The requesting member  shall  submit  the
12    communication  to the Commissioner who, upon finding it to be
13    appropriate and truthful, shall direct that  it  be  prepared
14    and  mailed  to  the  members upon the requesting member's or
15    shareholder's payment or adequate provision  for  payment  of
16    the expenses of preparation and mailing.
17        (i)  A  savings  bank  shall be reimbursed for costs that
18    are  necessary  and  that  have  been  directly  incurred  in
19    searching for, reproducing, or  transporting  books,  papers,
20    records,   or  other  data  of  a  customer  required  to  be
21    reproduced pursuant to a lawful subpoena, warrant,  or  court
22    order.
23        (j)  Notwithstanding  the  provisions  of this Section, a
24    savings bank may sell or  otherwise  make  use  of  lists  of
25    customers'   names  and  addresses.   All  other  information
26    regarding a customer's account are subject to the  disclosure
27    provisions  of this Section.  At the request of any customer,
28    that customer's name and address shall be  deleted  from  any
29    list  that  is  to be sold or used in any other manner beyond
30    identification of the customer's accounts.
31    (Source: P.A. 89-508, eff. 7-3-96; 90-18, eff. 7-1-97.)

32        Section 20.  The Illinois Credit Union Act is amended  by
33    changing  Sections  10, 15, 20, 22, 31, 32, 33, 35, and 52 as
 
HB3838 Re-Enrolled             -18-            LRB9112086JSgc
 1    follows:

 2        (205 ILCS 305/10) (from Ch. 17, par. 4411)
 3        Sec. 10.  Credit union records; member financial records.
 4        (1)  A credit union shall establish and  maintain  books,
 5    records,  accounting  systems and procedures which accurately
 6    reflect its operations and which  enable  the  Department  to
 7    readily  ascertain the true financial condition of the credit
 8    union and whether it is complying with this Act.
 9        (2)  A photostatic or photographic  reproduction  of  any
10    credit  union  records  shall  be  admissible  as evidence of
11    transactions with the credit union.
12        (3) (a)  For  the  purpose  of  this  Section,  the  term
13        "financial records" means any original, any copy, or  any
14        summary  of  (1)  a document granting signature authority
15        over an account, (2) a statement, ledger  card  or  other
16        record  on any account which shows each transaction in or
17        with respect to that account, (3) a check, draft or money
18        order drawn on a financial institution or other entity or
19        issued and payable by or through a financial  institution
20        or  other  entity,  or  (4)  any  other  item  containing
21        information pertaining to any relationship established in
22        the  ordinary  course  of business between a credit union
23        and its member.
24             (b)  This Section does not prohibit:
25                  (1)  The preparation, examination, handling  or
26             maintenance of any financial records by any officer,
27             employee  or  agent of a credit union having custody
28             of such records, or the examination of such  records
29             by  a  certified  public  accountant  engaged by the
30             credit union to perform an independent audit;
31                  (2)  The examination of any  financial  records
32             by  or  the  furnishing  of  financial  records by a
33             credit union to any officer, employee  or  agent  of
 
HB3838 Re-Enrolled             -19-            LRB9112086JSgc
 1             the    Department,   the   National   Credit   Union
 2             Administration, Federal Reserve board or any insurer
 3             of share accounts for use solely in the exercise  of
 4             his duties as an officer, employee or agent;
 5                  (3)  The  publication  of  data  furnished from
 6             financial records relating to members where the data
 7             cannot be identified to any particular  customer  of
 8             account;
 9                  (4)  The  making of reports or returns required
10             under Chapter 61 of the  Internal  Revenue  Code  of
11             1954;
12                  (5)  Furnishing   information   concerning  the
13             dishonor of any negotiable instrument  permitted  to
14             be disclosed under the Uniform Commercial Code;
15                  (6)  The  exchange  in  the  regular  course of
16             business of  credit  information  between  a  credit
17             union   and   other   credit   unions  or  financial
18             institutions or commercial enterprises, directly  or
19             through a consumer reporting agency;
20                  (7)  The   furnishing  of  information  to  the
21             appropriate law enforcement  authorities  where  the
22             credit  union  reasonably  believes  it has been the
23             victim of a crime;
24                  (8)  The furnishing of information pursuant  to
25             the Uniform Disposition of Unclaimed Property Act;
26                  (9)  The  furnishing of information pursuant to
27             the Illinois Income Tax Act and the Illinois  Estate
28             and Generation-Skipping Transfer Tax Act;
29                  (10)  The furnishing of information pursuant to
30             the   federal  "Currency  and  Foreign  Transactions
31             Reporting  Act",  Title  31,  United  States   Code,
32             Section 1051 et sequentia; or
33                  (11)  The furnishing of information pursuant to
34             any   other   statute  which  by  its  terms  or  by
 
HB3838 Re-Enrolled             -20-            LRB9112086JSgc
 1             regulations  promulgated  thereunder  requires   the
 2             disclosure   of  financial  records  other  than  by
 3             subpoena, summons, warrant or court order.
 4                  (12)  The   furnishing   of   information    in
 5             accordance  with the federal Personal Responsibility
 6             and Work Opportunity Reconciliation Act of 1996. Any
 7             credit union governed by this Act shall  enter  into
 8             an  agreement for data exchanges with a State agency
 9             provided the State agency pays to the credit union a
10             reasonable  fee  not  to  exceed  its  actual   cost
11             incurred.   A  credit union providing information in
12             accordance with this item shall not be liable to any
13             account holder or other person for any disclosure of
14             information to a State agency,  for  encumbering  or
15             surrendering  any assets held by the credit union in
16             response to a lien or order to withhold and  deliver
17             issued  by  a  State agency, or for any other action
18             taken pursuant to this item, including individual or
19             mechanical errors,  provided  the  action  does  not
20             constitute gross negligence or willful misconduct. A
21             credit  union  shall  have  no  obligation  to hold,
22             encumber, or surrender  assets  until  it  has  been
23             served  with  a subpoena, summons, warrant, court or
24             administrative order, lien, or levy.
25                  (13)  The  furnishing  of  information  to  law
26             enforcement authorities, the Illinois Department  on
27             Aging  and  its regional administrative and provider
28             agencies, the Department of Human Services Office of
29             Inspector  General,  or  public  guardians,  if  the
30             credit union  suspects  that  a  member  who  is  an
31             elderly  or  disabled  person has been or may become
32             the  victim  of  financial  exploitation.  For   the
33             purposes  of  this item (13), the term: (i) "elderly
34             person" means a person who is 60 or  more  years  of
 
HB3838 Re-Enrolled             -21-            LRB9112086JSgc
 1             age,  (ii)  "disabled person" means a person who has
 2             or reasonably appears to the credit union to have  a
 3             physical  or  mental  disability that impairs his or
 4             her ability to seek or  obtain  protection  from  or
 5             prevent financial exploitation, and (iii) "financial
 6             exploitation"  means  tortious or illegal use of the
 7             assets  or  resources  of  an  elderly  or  disabled
 8             person,   and    includes,    without    limitation,
 9             misappropriation of the elderly or disabled person's
10             assets  or  resources  by undue influence, breach of
11             fiduciary   relationship,    intimidation,    fraud,
12             deception,  extortion,  or  the  use  of  assets  or
13             resources  in  any  manner contrary to law. A credit
14             union or person furnishing information  pursuant  to
15             this  item (13) shall be entitled to the same rights
16             and protections as a person  furnishing  information
17             under  the  Elder  Abuse  and  Neglect  Act  and the
18             Illinois Domestic Violence Act of 1986.
19        (c)  A credit union  may  not  disclose  to  any  person,
20    except  to  the  member  or  his  duly  authorized agent, any
21    financial records relating to that member of the credit union
22    unless:
23             (1)  the member has  authorized  disclosure  to  the
24        person;
25             (2)  the financial records are disclosed in response
26        to  a  lawful  subpoena,  summons, warrant or court order
27        that meets the requirements of subparagraph (d)  of  this
28        Section; or
29             (3)  the  credit  union  is attempting to collect an
30        obligation owed to the credit union and the credit  union
31        complies  with  the  provisions  of  Section  2I  of  the
32        Consumer Fraud and Deceptive Business Practices Act.
33        (d)  A  credit  union  shall  disclose  financial records
34    under subparagraph (c)(2)  of  this  Section  pursuant  to  a
 
HB3838 Re-Enrolled             -22-            LRB9112086JSgc
 1    lawful  subpoena,  summons, warrant or court order only after
 2    the credit union mails  a  copy  of  the  subpoena,  summons,
 3    warrant  or  court  order  to  the  person  establishing  the
 4    relationship  with the credit union, if living, and otherwise
 5    his personal representative, if  known,  at  his  last  known
 6    address  by  first  class  mail,  postage  prepaid unless the
 7    credit union is specifically prohibited  from  notifying  the
 8    person  by  order  of court or by applicable State or federal
 9    law. In the case of a grand jury  subpoena,  a  credit  union
10    shall not mail a copy of a subpoena to any person pursuant to
11    this  subsection  if  the subpoena was issued by a grand jury
12    under the Statewide Grand Jury Act or  notifying  the  person
13    would   constitute  a  violation  of  the  federal  Right  to
14    Financial Privacy Act of 1978.
15        (e) (1)  Any officer or employee of a  credit  union  who
16        knowingly  and  wilfully  furnishes  financial records in
17        violation of this Section is guilty of a business offense
18        and upon conviction thereof shall be fined not more  than
19        $1,000.
20             (2)  Any  person  who knowingly and wilfully induces
21        or attempts to induce any officer or employee of a credit
22        union to disclose financial records in violation of  this
23        Section   is  guilty  of  a  business  offense  and  upon
24        conviction thereof shall be fined not more than $1,000.
25        (f)  A credit union shall be reimbursed for  costs  which
26    are   reasonably  necessary  and  which  have  been  directly
27    incurred in searching for, reproducing or transporting books,
28    papers, records  or  other  data  of  a  member  required  or
29    requested  to  be  produced  pursuant  to  a lawful subpoena,
30    summons, warrant or court order.
31    (Source: P.A. 89-603, eff. 8-2-96; 90-18, eff. 7-1-97.)

32        (205 ILCS 305/15) (from Ch. 17, par. 4416)
33        Sec. 15.  Membership defined.
 
HB3838 Re-Enrolled             -23-            LRB9112086JSgc
 1        (1)  The membership of a credit union shall be limited to
 2    and  consist  of  the  subscribers   to   the   articles   of
 3    incorporation  and such other persons within the common bond,
 4    as defined in this Act and as set forth in the credit union's
 5    articles  of  incorporation,  as  have  been  duly   admitted
 6    members,  have  paid  the required entrance fee or membership
 7    fee, or both, if any, have subscribed for one or more shares,
 8    and have paid  the  initial  installment  thereon,  and  have
 9    complied  with  such  other  requirements  as the articles of
10    incorporation or bylaws specify.  Two or more persons  within
11    the  common  bond who have jointly subscribed for one or more
12    shares under a joint  account  and  have  complied  with  all
13    membership  requirements  may each be admitted to membership.
14    The surviving spouse of a credit union member may,  within  6
15    months  of  the member's death, become a member of the credit
16    union by paying the required entrance fee or  membership  fee
17    or  both,  if  any, by subscribing for one or more shares and
18    paying the initial installment thereon, and by complying with
19    such other requirements as the articles of  incorporation  or
20    bylaws specify.
21        (2)  Any  member  may withdraw from a credit union at any
22    time upon giving notice of  withdrawal  as  required  by  the
23    bylaws.
24        (3)  Any  member  may  be  expelled  by a 2/3 vote of the
25    members present at any regular or special meeting  called  to
26    consider  the  matter, but only after an opportunity has been
27    given to the member to be heard.
28        (4)  A member who has caused a loss to the  credit  union
29    or  who  has  failed  to  maintain  one or more shares at the
30    credit union may be expelled by a majority vote of  a  quorum
31    of  directors if the board has adopted a policy providing for
32    expulsion under  those  circumstances.   In  maintaining  and
33    enforcing  a  this  policy  based  on  loss,  the  board  may
34    consider,  without  limitation,  a  member's  failure  to pay
 
HB3838 Re-Enrolled             -24-            LRB9112086JSgc
 1    amounts due under a loan, failure to provide collected  funds
 2    to cover withdrawals or personal share drafts or credit union
 3    drafts where the member is a remitter, or failure to pay fees
 4    or  charges due the credit union.  If a the policy is adopted
 5    by the board pursuant to this subsection (4), written  notice
 6    of  the  policy and the effective date of the policy shall be
 7    mailed to each member of the credit  union  at  the  member's
 8    current address appearing on the records of the credit union.
 9    The  policy shall be mailed to members not fewer than 30 days
10    prior to the effective date of the policy.  In addition,  new
11    members  shall be provided written notice of the policy prior
12    to or upon applying for membership.
13        (5)  All or any part of the amount paid on  shares  of  a
14    withdrawing  member  or  expelled  member  with  any declared
15    dividends or interest on the date of withdrawal or  expulsion
16    must,  after deducting all amounts due from the member to the
17    credit union, be paid to him.  The credit union  may  require
18    not  more  than  60  days'  written  notice  of  intention to
19    withdraw shares, but a notice of withdrawal does not  entitle
20    the  member  to  any preferred or prior claim in the event of
21    liquidation.  Withdrawing or expelled members have no further
22    rights in the credit union, but are  not,  by  withdrawal  or
23    expulsion,  released  from  any  obligation  they  owe to the
24    credit union.
25        (6)  A member who has caused a loss to the  credit  union
26    may  be denied any or all credit union services in accordance
27    with board policy, however, members who are  denied  services
28    shall  be  allowed to maintain a share account and to vote on
29    all issues put to a vote of the membership.
30    (Source: P.A. 88-235; 89-603, eff. 8-2-96.)

31        (205 ILCS 305/20) (from Ch. 17, par. 4421)
32        Sec. 20.  Election or appointment of officials.
33        (1)  The credit union shall be directed  by  a  Board  of
 
HB3838 Re-Enrolled             -25-            LRB9112086JSgc
 1    Directors  consisting  of  no  less  than  7 in number, to be
 2    elected at the  annual  meeting  by  and  from  the  members.
 3    Directors  shall  hold  office until the next annual meeting,
 4    unless their terms are  staggered.   Upon  amendment  of  its
 5    bylaws,  a  credit union may divide the Directors into 2 or 3
 6    classes  with  each  class  as  nearly  equal  in  number  as
 7    possible.  The term of office of the directors of  the  first
 8    class  shall  expire  at the first annual meeting after their
 9    election, that of the second class shall expire at the second
10    annual meeting after their election, and that  of  the  third
11    class, if any, shall expire at the third annual meeting after
12    their   election.      At   each  annual  meeting  after  the
13    classification, the number of directors equal to  the  number
14    of  directors  whose  terms expire at the time of the meeting
15    shall be elected to hold office until the  second  succeeding
16    annual  meeting  if  there  are  2 classes or until the third
17    succeeding annual meeting if there are 3 classes.  A Director
18    shall hold office for the term for which he or she is elected
19    and until his or her successor is elected and qualified.   In
20    all  elections  for  Directors, every member has the right to
21    vote, in person or by proxy, the number of  shares  owned  by
22    him,  or in the case of a member other than a natural person,
23    the member's one vote, for  as  many  persons  as  there  are
24    Directors to be elected, or to cumulate such shares, and give
25    one  candidate  as  many  votes  as  the  number of Directors
26    multiplied  by  the  number  of  his  shares  equals,  or  to
27    distribute  them  on  the  same  principle  among   as   many
28    candidates  as  he  may desire and the Directors shall not be
29    elected in any other manner.  Shares held in a joint  account
30    owned  by more than one member may be voted by any one of the
31    members, however, the number of cumulative votes cast may not
32    exceed a total equal to the number of  shares  multiplied  by
33    the  number  of  directors  to be elected.  A majority of the
34    shares entitled to vote shall be represented either in person
 
HB3838 Re-Enrolled             -26-            LRB9112086JSgc
 1    or by proxy for the election  of  Directors.   Each  Director
 2    shall  wholly  take  and  subscribe  to  an oath that he will
 3    diligently and honestly perform his duties  in  administering
 4    the  affairs  of the credit union, that while he may delegate
 5    to another the performance of those administrative duties  he
 6    is  not  thereby  relieved  from his responsibility for their
 7    performance, that he will not knowingly violate or  willingly
 8    permit to be violated any law applicable to the credit union,
 9    and  that he is the owner of at least one share of the credit
10    union.
11        (2)  The Board of Directors shall appoint from among  the
12    members  of  the credit union, a Supervisory Committee of not
13    less than 3 members at the organization meeting and within 30
14    days following each annual meeting of the  members  for  such
15    terms  as  the  bylaws  provide.   Members of the Supervisory
16    Committee may, but need not be, on the  Board  of  Directors,
17    but  shall not be officers of the credit union, or members of
18    the Credit Committee, or the  credit  manager  if  no  Credit
19    Committee has been appointed.
20        (3)  The Board of Directors may shall appoint, from among
21    the   members   of  the  credit  union,  a  Credit  Committee
22    consisting of an odd number, not less than 3 for  such  terms
23    as  the  bylaws provide. Members of the Credit Committee may,
24    but need not be, Directors or officers of the  credit  union,
25    but shall not be members of the Supervisory Committee.
26        (4)  The  Board of Directors shall appoint from among the
27    members of the credit union a Membership Committee of one  or
28    more  persons.   It  shall  act  upon  all  applications  for
29    membership and submit a report of its actions to the Board of
30    Directors at the next monthly meeting for review.
31    (Source: P.A. 88-235; 89-74, eff. 6-30-95.)

32        (205 ILCS 305/22) (from Ch. 17, par. 4423)
33        Sec.  22.   Vacancies.   The Board of Directors shall, by
 
HB3838 Re-Enrolled             -27-            LRB9112086JSgc
 1    appointment from among the credit  union  members,  fill  any
 2    vacancies  occurring  on  the  Board for the remainder of the
 3    Director's unexpired term or until a successor is elected and
 4    qualified.  The Board shall, by appointment  from  among  the
 5    credit  union  members,  fill  vacancies  in  the  Membership
 6    Committee,  Credit  Committee, or credit manager if no Credit
 7    Committee has been appointed, and Supervisory Committees.
 8    (Source: P.A. 81-329.)

 9        (205 ILCS 305/31) (from Ch. 17, par. 4432)
10        Sec.  31.  Supervision  of  loans  Authority  of   Credit
11    Committee.  The  Credit  Committee  shall  have  the  general
12    supervision  of  all loans and lines of credit to members. If
13    no Credit Committee has been appointed,  the  credit  manager
14    shall  have the general supervision of all loans and lines of
15    credit to members.
16    (Source: P.A. 81-329.)

17        (205 ILCS 305/32) (from Ch. 17, par. 4433)
18        Sec. 32.  Meetings  of  Credit  Committee.  If  a  Credit
19    Committee  has been appointed by the board, the provisions of
20    this Section shall apply.  The Credit Committee shall meet as
21    often as the operations of the credit union require  and  not
22    less  frequently  than  once a month to consider applications
23    for loans and lines of credit.  Unless a  greater  percentage
24    is  required  in the credit union's bylaws, a majority of the
25    Credit Committee shall constitute a quorum.  No loan shall be
26    made unless it is approved, in writing, by a majority of  the
27    Committee  who  are present at a meeting at which a quorum is
28    present and at which  the  application  is  considered.   The
29    Credit  Committee shall report to the Directors at each Board
30    meeting on all meetings held and actions taken since the last
31    Board meeting.
32    (Source: P.A. 81-329.)
 
HB3838 Re-Enrolled             -28-            LRB9112086JSgc
 1        (205 ILCS 305/33) (from Ch. 17, par. 4434)
 2        Sec. 33.  Credit manager.
 3        (1)  The Credit Committee may or, if no Credit  Committee
 4    has  been  appointed,  the Board of Directors shall appoint a
 5    credit  manager  who  shall  be  empowered  to   approve   or
 6    disapprove   loans  and  lines  of  credit  under  conditions
 7    prescribed by the Board of Directors.  The  Credit  Committee
 8    or  credit manager may appoint one or more loan officers with
 9    the power to approve loans and lines of  credit,  subject  to
10    such  limitations  or  conditions as may be prescribed by the
11    Board of Directors.  The credit manager and any loan officers
12    appointed by the Credit Committee or the credit manager shall
13    keep written records of all transactions and shall report, in
14    writing, to the Credit Committee if a  Credit  Committee  has
15    been  appointed,  otherwise  which  shall  in turn report, in
16    writing, to the Directors at each Board meeting.
17        (2)  Applications  for  loans  or  lines  of  credit  not
18    approved by a loan officer shall be reviewed and  acted  upon
19    by the Credit Committee or credit manager.
20        (3)  The  loan  officers must keep written records of all
21    loans or lines of credit granted or  refused  and  any  other
22    transactions  and  submit a report to the Credit Committee or
23    credit manager at least once each month.
24    (Source: P.A. 81-329.)

25        (205 ILCS 305/35) (from Ch. 17, par. 4436)
26        Sec. 35.  Suspension and removal of officials.
27        (1)  The Supervisory Committee, by a  unanimous  vote  of
28    the  whole  committee,  may  suspend any member of the Credit
29    Committee or the credit manager if no  Credit  Committee  has
30    been  appointed  and.  The Supervisory Committee shall report
31    such action to the Board of Directors for appropriate action.
32        (2)  The Supervisory Committee, by a  unanimous  vote  of
33    the whole committee, may suspend any officer or member of the
 
HB3838 Re-Enrolled             -29-            LRB9112086JSgc
 1    Board  of  Directors  until  the next members' meeting, which
 2    shall be held not less than 7 nor more  than  21  days  after
 3    such  suspension.   At  such meeting, the suspension shall be
 4    acted upon by the members, who shall either confirm or reject
 5    it by majority vote.
 6    (Source: P.A. 81-329.)

 7        (205 ILCS 305/52) (from Ch. 17, par. 4453)
 8        Sec. 52.  Loans to directors, officers, Credit Committee,
 9    credit manager, and Supervisory Committee members.   A credit
10    union may make  loans  to  its  directors,  officers,  Credit
11    Committee  members, credit manager, and Supervisory Committee
12    members, provided that the  loan  complies  with  all  lawful
13    requirements  under  this  Act with respect to loans to other
14    borrowers.  No loan  may  be  made  to  or  cosigned  by  any
15    director, officer, Credit Committee member, credit manager if
16    no  Credit  Committee  has  been  appointed,  or  Supervisory
17    Committee  member  which  would cause the aggregate amount of
18    all loans then outstanding to or cosigned by  all  directors,
19    officers,  Credit  Committee  members,  credit  manager if no
20    Credit Committee has been appointed, or Supervisory Committee
21    members to exceed 20% of the unimpaired capital  and  surplus
22    of the credit union.
23    (Source: P.A. 85-1273.)

24        Section  99.  Effective  date. This Act takes effect upon
25    becoming law.

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