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HB0623 Engrossed |
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LRB095 04439 MJR 24484 b |
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| AN ACT concerning 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 |
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| changing Section 59 as follows:
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| (205 ILCS 305/59) (from Ch. 17, par. 4460)
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| Sec. 59. Investment of Funds.
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| (a) Funds not used in loans to members may be
invested, |
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| pursuant to subsection (7) of Section 30 of this Act, and
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| subject to Departmental rules and
regulations:
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| (1) In securities, obligations or other instruments of |
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| or issued by or
fully guaranteed as to principal and |
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| interest by the United States of America
or any agency |
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| thereof or in any trust or trusts established for investing
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| directly or collectively in the same;
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| (2) In obligations of any state of the United States, |
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| the District of
Columbia, the Commonwealth of Puerto Rico, |
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| and the several
territories organized
by Congress, or any |
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| political subdivision thereof; however, a credit union
may
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| not invest more than 10% of its unimpaired capital and |
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| surplus in the
obligations of one issuer, exclusive of |
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| general obligations of the issuer, and
investments in |
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| municipal securities must be limited to securities rated in |
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HB0623 Engrossed |
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LRB095 04439 MJR 24484 b |
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| one
of the 4
highest rating categories by a nationally |
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| recognized statistical rating
organization;
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| (3) In certificates of deposit or passbook type |
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| accounts issued by a state
or national bank, mutual savings |
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| bank or savings and loan association; provided
that such |
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| institutions have their accounts insured by the Federal |
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| Deposit
Insurance Corporation or the Federal Savings and |
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| Loan Insurance Corporation;
but provided, further, that a |
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| credit union's investment in an account in
any one |
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| institution may exceed the insured limit on accounts;
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| (4) In shares, classes of shares or share certificates |
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| of other credit
unions, including, but not limited to |
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| corporate credit unions; provided
that such credit unions |
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| have their members' accounts insured by the NCUA
or other |
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| approved insurers, and that if the members' accounts are so |
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| insured,
a credit union's investment may exceed the insured |
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| limit on accounts;
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| (5) In shares of a cooperative society organized under |
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| the laws of this
State or the laws of the United States in |
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| the total amount not exceeding
10% of the unimpaired |
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| capital and surplus of the credit union; provided
that such |
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| investment shall first be approved by the Department;
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| (6) In obligations of the State of Israel, or |
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| obligations fully guaranteed
by the State of Israel as to |
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| payment of principal and interest;
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| (7) In shares, stocks or obligations of other financial |
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HB0623 Engrossed |
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LRB095 04439 MJR 24484 b |
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| institutions in
the total amount not exceeding 5% of the |
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| unimpaired capital and surplus
of the credit union;
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| (8) In federal funds and bankers' acceptances;
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| (9) In shares or stocks of Credit Union Service |
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| Organizations in the
total amount not exceeding the greater |
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| of 3% of the unimpaired
capital and surplus of the
credit |
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| union or the amount authorized for federal credit unions.
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| (b) As used in this Section, "political subdivision" |
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| includes, but is not
limited to, counties,
townships, cities, |
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| villages, incorporated towns, school districts, educational
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| service regions, special road districts, public water supply |
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| districts, fire
protection districts, drainage districts, |
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| levee districts, sewer districts,
housing authorities, park |
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| districts, and any
agency, corporation, or instrumentality of a |
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| state or its political
subdivisions, whether now or hereafter |
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| created and whether herein specifically
mentioned or not.
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| (c) A credit union investing to fund an employee benefit |
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| plan obligation is not subject to the investment limitations of |
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| this Act and this Section and may purchase an investment that |
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| would otherwise be impermissible if the investment is directly |
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| related to the credit union's obligation under the employee |
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| benefit plan and the credit union holds the investment only for |
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| so long as it has an actual or potential obligation under the |
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| employee benefit plan.
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| (Source: P.A. 92-293, eff. 8-9-01; 93-640, eff. 12-31-03.)
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| Section 99. Effective date. This Act takes effect upon |