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Public Act 093-0916
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| SB3021 Enrolled |
LRB093 20607 SAS 46437 b |
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AN ACT concerning financial regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Credit Union Act is amended by |
changing Sections 23, 26, and 30 and by adding Section 16.1 as |
follows:
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(205 ILCS 305/16.1 new) |
Sec. 16.1. Service to the economically disadvantaged.
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(a) Persons who reside in investment areas as defined in |
the Community Development Banking and Financial Institutions |
Act of 1994 (12 U.S.C. 4702) and identified by the U.S. |
Department of the Treasury may be admitted to membership in a |
credit union that serves the area by maintaining a facility in |
the area. For purposes of this Section, a "facility" means a |
credit union owned branch, a shared branch, an office operated |
on a regularly scheduled weekly basis, or a credit union owned |
electronic facility that meets, at a minimum, the requirements |
of accepting shares for members' accounts, accepting loan |
applications and disbursing loans, but does not include an ATM. |
(b) Credit unions desiring to serve the economically |
disadvantaged in accordance with this Section shall do so |
pursuant to a written business plan that shall document the |
fact that the area meets the criteria of this Section, identify |
the credit and depository needs of the area, identify the |
services to be delivered, and describe the manner in which the |
services will be delivered. The credit union shall regularly |
review the business plan to determine whether the area is being |
adequately served and shall provide to the Director periodic |
service status reports that describe how the needs of the area |
are being met.
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(205 ILCS 305/23) (from Ch. 17, par. 4424)
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Sec. 23. Compensation of officials.
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(1) No director or committee member may
receive |
compensation for his service as such.
"Compensation" as used in |
this subsection (1) refers to remuneration expense
to the |
credit union for services provided by a director or committee |
member in
his or her capacity as director or committee member. |
"Compensation" as used in
this subsection (1) does not include |
the expense of providing
reasonable life, health,
accident, and |
similar insurance protection benefits for a director or
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committee member.
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(2) Directors, committee members and
employees, while on |
official business of the credit union, may be reimbursed
for |
reasonable and necessary expenses. Alternatively, the credit |
union may make direct payment to a third party for such |
business expenses. Reasonable and necessary expenses may |
include the payment of travel costs for the foregoing officials |
and one guest per official. All payment of costs shall be made |
in accordance with written policies and procedures established |
by the Board of Directors.
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(3) The Board of Directors may establish
compensation for |
officers of the credit union.
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(Source: P.A. 92-608, eff. 7-1-02.)
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(205 ILCS 305/26) (from Ch. 17, par. 4427)
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Sec. 26. Executive Officers. (1) At their first meeting, |
the Board of
Directors shall elect from among their own number |
a Chairman of the Board
and one or more Vice Chairmen, a |
Secretary and a Treasurer. The Directors
shall appoint a chief |
management official who shall have such title as the Directors |
shall determine. The Directors
President and
may also appoint |
one or more Vice Presidents.
The President shall be the chief |
operating officer of the credit union.
The chief management |
official
President and Vice President may, but need not, be |
Directors. Any two
or more offices may be held by the same |
person, except the Chairman of the Board
President may
not also |
hold the office of Vice Chairman
President or Secretary. |
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(2) The officers shall serve for a term of one year, or |
until their successors
are chosen and have been duly qualified.
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(3) The duties of the officers shall be prescribed in the |
bylaws. Compensation
of officers shall be such as may be |
established by the Directors from time to time.
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(Source: P.A. 81-329.)
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(205 ILCS 305/30) (from Ch. 17, par. 4431)
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Sec. 30. Duties of directors. It shall be the duty of the |
directors to:
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(1) Review actions on applications
for membership. A |
record of the Membership Committee's approval or
denial of |
membership or management's approval or denial of |
membership if no
Membership Committee has been appointed |
shall be available to the Board of
Directors for |
inspection. A person denied membership by the Membership
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Committee or credit union management may appeal the denial |
to the Board;
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(2) Provide adequate fidelity bond coverage for |
officers,
employees, directors and committee members, and |
for losses caused by
persons outside of the credit union, |
subject to rules and regulations
promulgated by the |
Director;
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(3) Determine from time to time the interest rates, not |
in excess of that
allowed under this Act, which shall be |
charged on loans to members and to
authorize interest |
refunds, if any, to members from income earned and received
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in proportion to the interest paid by them on such classes |
of loans and
under such conditions as the Board prescribes. |
The Directors may establish
different interest rates to be |
charged on different classes of loans;
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(4) Within any limitations set forth in the credit |
union's bylaws, fix
the maximum amount which may be loaned |
with and without security to a member;
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(5) Declare dividends on various classes of shares in |
the manner and form
as provided in the bylaws;
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(6) Limit the number of shares which may be owned by a |
member;
such limitations to apply alike to all members;
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(7) Have charge of the investment of funds, except that |
the Board of
Directors may designate an Investment |
Committee or any qualified individual
or entity to have |
charge of making investments under policies established
by |
the Board of Directors;
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(8) Authorize the employment of or contracting with |
such persons or
organizations as may be necessary to carry |
on the
operations of the credit union, provided that prior |
approval is received from
the
Department before delegating |
substantially all managerial duties and
responsibilities |
to a credit union organization, and fix
the compensation, |
if any, of the officers and provide for compensation for
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other employees within
policies established by the Board of |
Directors;
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(9) Authorize the conveyance of property;
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(10) Borrow or lend money consistent with the |
provisions of this Act;
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(11) Designate a depository or depositories for the |
funds of the credit
union and supervise the investment of |
funds;
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(12) Suspend or remove, or both, for cause, any or all |
officers or any
or all members of the Membership, Credit, |
Supervisory or other committees
whenever, in the judgment |
of the Board of Directors, the best interests of the credit |
union will be served thereby; provided that members of the |
Supervisory Committee may not be suspended or removed |
except for failure to perform their duties; and provided |
that removal of any officer shall be without prejudice to |
the contract rights, if any, of the person so removed
for |
failure to perform their duties;
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(13) Appoint any special committees deemed necessary; |
and;
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(14) Perform such other duties as the members may |
direct, and perform
or authorize any action not |