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91_SB0098enr
SB98 Enrolled LRB9101012JSpcA
1 AN ACT to amend the Illinois Credit Union Act by changing
2 Sections 5 and 42.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Credit Union Act is amended by
6 changing Sections 5 and 42 as follows:
7 (205 ILCS 305/5) (from Ch. 17, par. 4406)
8 Sec. 5. Place of business.
9 (1) A credit union may change its principal place of
10 business within this State upon 45 days prior written notice
11 to approval of the Department, provided that a credit union
12 with a neighborhood or community common bond may not relocate
13 its principal place of business outside of its neighborhood
14 or community the Director's approval shall be based upon the
15 same criteria as for the formation of a new credit union.
16 (2) A credit union may share office space with one or
17 more credit unions and contract with any person, firm or
18 corporation, including another credit union, to provide
19 facilities or personnel.
20 (Source: P.A. 81-329.)
21 (205 ILCS 305/42) (from Ch. 17, par. 4443)
22 Sec. 42. Shares in trust.
23 (1) Shares may be issued in trust to a member as trustee
24 or to an individual or corporate trustee. If a corporate
25 trustee is a bank or trust company, shares may be issued to
26 the corporate trustee only if such bank or trust company is
27 organized under the laws of the State of Illinois or is a
28 nationally chartered bank located principally in the State of
29 Illinois. An individual trustee shall be a member of the
30 credit union unless the person establishing the trust in
SB98 Enrolled -2- LRB9101012JSpcA
1 respect to which such shares are issued or each beneficiary
2 of the trust is a member of the credit union and the name of
3 each beneficiary is disclosed to the credit union. Shares
4 may also be issued in the name of an individual or corporate
5 representative under the Illinois Probate Act of 1975 as
6 amended, for or in respect to a member of a credit union.
7 Shares may also be issued in trust under the Illinois Funeral
8 or Burial Funds Act, for or in respect to a member of a
9 credit union, to a trustee licensed under said Act. Any
10 credit union which issues shares in trust as provided in this
11 Section must be insured by the NCUA or another approved
12 insurer. No trustee or beneficiary, unless a member in his
13 own right, shall be permitted to vote, obtain loans, hold
14 office or be required to pay an entrance or membership fee.
15 Payment of part or all of such shares to such trustee or
16 member shall, to the extent of such payment, discharge the
17 liability of the credit union to the member and the
18 beneficiary and the credit union shall be under no obligation
19 to see to the application of such payment.
20 (2) If a credit union's shares are insured as provided
21 for in this Act, such credit union shall have power to act as
22 trustee or custodian under individual retirement accounts or
23 plans established pursuant to Section 401(d) or (f) or
24 Section 408(a) of the Internal Revenue Code and any laws
25 amendatory or supplementary thereto for its members or groups
26 or organizations of its members provided the funds of such
27 accounts or plans are invested solely in (1) share accounts
28 of, or (2) share accounts and obligations issued by such
29 credit union. All funds held in such fiduciary capacity
30 shall be maintained in accordance with applicable statutes
31 and regulations promulgated thereunder by any authority
32 exercising jurisdiction over such trusts or custodial
33 accounts.
34 (3) Notwithstanding any language to the contrary in this
SB98 Enrolled -3- LRB9101012JSpcA
1 Section 42, a credit union may act as trustee or custodian of
2 individual retirement plans of its members established
3 pursuant to the Employee Retirement Income Security Act of
4 1974 or self-employed retirement plans established pursuant
5 to the Self-Employed Individuals Retirement Act of 1962, and
6 any laws amendatory or supplementary to such Acts, provided
7 that:
8 (a) All contributions of funds are initially made to a
9 share account in the credit union;
10 (b) Any subsequent transfer of funds to other assets is
11 solely at the direction of the member and the credit union
12 performs only custodial duties, exercises no investment
13 discretion and provides no investment advice with respect to
14 plan assets;
15 (c) The member is notified of the fact that share
16 insurance coverage is limited to funds held in share
17 accounts; and
18 (d) The credit union complies with all applicable
19 provisions of this Act and applicable laws and regulations as
20 may be promulgated by any authority exercising jurisdiction
21 over such trust or custodial accounts.
22 (Source: P.A. 85-1273.)
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.
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