Public Act 095-0124
 		





HB0623 Enrolled
LRB095 04439 MJR 24484 b






    AN ACT concerning regulation.

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


 
    Section 5. The Illinois Credit Union Act is amended  by 
changing Section 59 as follows:
 
    (205 ILCS 305/59)  (from Ch. 17, par. 4460)

    Sec. 59. Investment of Funds. 

    (a) Funds not used in loans to members may be
invested, 
pursuant to subsection (7) of Section 30 of this Act, and

subject to Departmental rules and
regulations:


        (1) In securities, obligations or other instruments of 
    or issued by or
fully guaranteed as to principal and 
    interest by the United States of America
or any agency 
    thereof or in any trust or trusts established for investing

    directly or collectively in the same;


        (2) In obligations of any state of the United States, 
    the District of
Columbia, the Commonwealth of Puerto Rico, 
    and the several
territories organized
by Congress, or any 
    political subdivision thereof; however, a credit union
may

    not invest more than 10% of its unimpaired capital and 
    surplus in the
obligations of one issuer, exclusive of 
    general obligations of the issuer, and
investments in 
    municipal securities must be limited to securities rated in 
    one
of the 4
highest rating categories by a nationally 
    recognized statistical rating
organization;


        (3) In certificates of deposit or passbook type 
    accounts issued by a state
or national bank, mutual savings 
    bank or savings and loan association; provided
that such 
    institutions have their accounts insured by the Federal 
    Deposit
Insurance Corporation or the Federal Savings and 
    Loan Insurance Corporation;
but provided, further, that a 
    credit union's investment in an account in
any one 
    institution may exceed the insured limit on accounts;


        (4) In shares, classes of shares or share certificates 
    of other credit
unions, including, but not limited to 
    corporate credit unions; provided
that such credit unions 
    have their members' accounts insured by the NCUA
or other 
    approved insurers, and that if the members' accounts are so 
    insured,
a credit union's investment may exceed the insured 
    limit on accounts;


        (5) In shares of a cooperative society organized under 
    the laws of this
State or the laws of the United States in 
    the total amount not exceeding
10% of the unimpaired 
    capital and surplus of the credit union; provided
that such 
    investment shall first be approved by the Department;


        (6) In obligations of the State of Israel, or 
    obligations fully guaranteed
by the State of Israel as to 
    payment of principal and interest;


        (7) In shares, stocks or obligations of other financial 
    institutions in
the total amount not exceeding 5% of the 
    unimpaired capital and surplus
of the credit union;


        (8) In federal funds and bankers' acceptances;


        (9) In shares or stocks of Credit Union Service 
    Organizations in the
total amount not exceeding the greater 
    of 3% of the unimpaired
capital and surplus of the
credit 
    union or the amount authorized for federal credit unions.


    (b) As used in this Section, "political subdivision" 
includes, but is not
limited to, counties,
townships, cities, 
villages, incorporated towns, school districts, educational

service regions, special road districts, public water supply 
districts, fire
protection districts, drainage districts, 
levee districts, sewer districts,
housing authorities, park 
districts, and any
agency, corporation, or instrumentality of a 
state or its political
subdivisions, whether now or hereafter 
created and whether herein specifically
mentioned or not.


    (c) A credit union investing to fund an employee benefit 
plan obligation is not subject to the investment limitations of 
this Act and this Section and may purchase an investment that 
would otherwise be impermissible if the investment is directly 
related to the credit union's obligation under the employee 
benefit plan and the credit union holds the investment only for 
so long as it has an actual or potential obligation under the 
employee benefit plan.

(Source: P.A. 92-293, eff. 8-9-01; 93-640, eff. 12-31-03.)

 

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