Financial Institutions Committee
Filed: 2/16/2010
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1 | AMENDMENT TO HOUSE BILL 4865
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2 | AMENDMENT NO. ______. Amend House Bill 4865 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Credit Union Act is amended by | ||||||
5 | changing Sections 19 and 34 as follows:
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6 | (205 ILCS 305/19) (from Ch. 17, par. 4420)
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7 | Sec. 19. Meeting of members.
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8 | (1) The annual meeting shall be held each
year during the | ||||||
9 | months of January, February or March or such other month
as may | ||||||
10 | be approved by the Department. The meeting shall be held at the
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11 | time, place and in the manner set forth in the bylaws. Any | ||||||
12 | special
meetings of the members of the credit union shall be | ||||||
13 | held at the time, place
and in the manner set forth in the | ||||||
14 | bylaws. Unless otherwise set forth in
this Act, quorum | ||||||
15 | requirements for meetings of members shall be established
by a | ||||||
16 | credit union in its bylaws. Notice of all meetings must be |
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1 | given by
the Secretary of the credit union at least 7 days | ||||||
2 | before the date of such
meeting, either by handing a written or | ||||||
3 | printed notice to each
member of the credit union, by mailing | ||||||
4 | the notice to the member at his address
as listed on the books | ||||||
5 | and records of the credit union, or by posting a
notice of the | ||||||
6 | meeting in three conspicuous places, including the office
of | ||||||
7 | the credit union.
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8 | (2) On all questions and at all elections, except election | ||||||
9 | of directors,
each member has one vote regardless of the number | ||||||
10 | of his shares. There
shall be no voting by proxy except on the | ||||||
11 | election of directors, proposals
for merger or voluntary | ||||||
12 | dissolution. All voting on the election of directors
shall be | ||||||
13 | by ballot, but when there is no contest, written ballots need | ||||||
14 | not
be cast. The record date to be used for the purpose of | ||||||
15 | determining which
members are entitled to notice of or to vote | ||||||
16 | at any meeting of members,
may be fixed in advance by the | ||||||
17 | directors on a date not more than 90 days
nor less than 10 days | ||||||
18 | prior to the date of the meeting. If no record date
is fixed by | ||||||
19 | the directors, the first day on which notice of the meeting
is | ||||||
20 | given, mailed or posted is the record date.
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21 | (3) Regardless of the number of shares owned by a society, | ||||||
22 | association,
club, partnership, other credit union or | ||||||
23 | corporation, having membership
in the credit union, it shall be | ||||||
24 | entitled to only
one vote and it may be represented and have | ||||||
25 | its vote cast by its
designated agent acting on its
behalf | ||||||
26 | pursuant
to a resolution
adopted by the organization's board of |
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1 | directors or similar governing
authority;
provided that the | ||||||
2 | credit union shall obtain a certified copy of such resolution
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3 | before such vote may be cast. | ||||||
4 | (4) A member may revoke a proxy by delivery to the credit | ||||||
5 | union of a written statement to that effect, by execution of a | ||||||
6 | subsequently dated proxy, or by attendance at a meeting and | ||||||
7 | voting in person.
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8 | (Source: P.A. 89-603, eff. 8-2-96.)
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9 | (205 ILCS 305/34) (from Ch. 17, par. 4435)
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10 | Sec. 34. Duties of Supervisory Committee. | ||||||
11 | (1) The Supervisory Committee
shall make or cause to be | ||||||
12 | made an annual internal audit of the books and
affairs of the | ||||||
13 | credit union to determine that the credit union's accounting
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14 | records and reports are prepared promptly and accurately | ||||||
15 | reflect operations
and results, that internal controls are | ||||||
16 | established and effectively
maintained to safeguard the assets | ||||||
17 | of the credit union, and that the
policies, procedures and | ||||||
18 | practices established by the Board of Directors
and management | ||||||
19 | of the credit union are being properly administered. The
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20 | Supervisory Committee shall submit a report of that audit to | ||||||
21 | the Board
of Directors and a summary of that report to the | ||||||
22 | members at the next annual
meeting of the credit union. It | ||||||
23 | shall make or cause to be made such
supplementary audits as it | ||||||
24 | deems necessary or as are required by the
Director or by the | ||||||
25 | Board of Directors, and submit reports of these
supplementary |
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1 | audits to the Director or Board of Directors as applicable.
If | ||||||
2 | the Supervisory Committee has not engaged a public accountant | ||||||
3 | registered
by the Department of Professional Regulation to make | ||||||
4 | the internal audit,
the Supervisory Committee or other | ||||||
5 | officials of the credit union shall not
indicate or in any | ||||||
6 | manner imply that such audit has been performed by a
public | ||||||
7 | accountant or that the audit represents the independent opinion | ||||||
8 | of a
public accountant. The Committee must retain its tapes and | ||||||
9 | working papers
of each internal audit for inspection by the | ||||||
10 | Department. The report of this
audit must be made on a form | ||||||
11 | approved by the Director. A copy of the report
must be promptly | ||||||
12 | mailed to the Director.
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13 | (2) The Supervisory Committee shall make or cause to be | ||||||
14 | made at least
once each year a reasonable percentage | ||||||
15 | verification of members' share and
loan accounts, consistent | ||||||
16 | with rules promulgated by the Director.
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17 | (3) The Supervisory Committee of a credit union with assets | ||||||
18 | of
$5,000,000 or more shall engage a public accountant | ||||||
19 | registered by the
Department of Professional Regulation to | ||||||
20 | perform an annual external
independent audit of the credit | ||||||
21 | union's financial statements in accordance
with generally | ||||||
22 | accepted auditing standards. The Supervisory Committee of a
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23 | credit union with assets of $3,000,000 or more, but less than | ||||||
24 | $5,000,000,
shall engage a public accountant registered by the | ||||||
25 | Department of
Professional Regulation to perform an external | ||||||
26 | independent audit of the
credit union's financial statements in |
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1 | accordance with generally accepted
auditing standards at least | ||||||
2 | once every 3 years. A copy of an external
independent audit | ||||||
3 | shall be completed and mailed to the Director no later than 90 | ||||||
4 | days after December 31 of each year; provided that a credit | ||||||
5 | union or group of credit unions may obtain an extension of the | ||||||
6 | due date upon application to and receipt of written approval | ||||||
7 | from the Director upon completion . If the
annual internal audit | ||||||
8 | of such a credit union is conducted by a public
accountant | ||||||
9 | registered by the Department of Professional Regulation and the
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10 | annual internal audit is done in conjunction with the credit | ||||||
11 | union's annual
external audit, the requirements of subsection | ||||||
12 | (1) of this Section shall
be deemed met.
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13 | (4) In determining the appropriate balance in the allowance | ||||||
14 | for loan losses account, a credit union may determine its | ||||||
15 | historical loss rate using a defined period of time of less | ||||||
16 | than 5 years, provided that: | ||||||
17 | (A) the methodology used to determine the defined | ||||||
18 | period of time is formally documented in the credit union's | ||||||
19 | policies and procedures and is appropriate to the credit | ||||||
20 | union's size, business strategy, and loan portfolio | ||||||
21 | characteristics and the economic environment of the areas | ||||||
22 | and employers served by the credit union; | ||||||
23 | (B) supporting documentation is maintained for the | ||||||
24 | technique used to develop the credit union loss rates, | ||||||
25 | including the period of time used to accumulate historical | ||||||
26 | loss data and the factors considered in establishing the |
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1 | time frames; and | ||||||
2 | (C) the external auditor conducting the credit union's | ||||||
3 | financial statement audit has analyzed the methodology | ||||||
4 | employed by the credit union and concludes that the | ||||||
5 | financial statements, including the allowance for loan | ||||||
6 | losses, are fairly stated in all material respects in | ||||||
7 | accordance with U.S. Generally Accepted Accounting | ||||||
8 | Principles, as promulgated by the Financial Accounting | ||||||
9 | Standards Board. | ||||||
10 | (5) A majority of the members of the Supervisory Committee
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11 | shall constitute a quorum.
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12 | (Source: P.A. 96-141, eff. 8-7-09.)
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13 | Section 99. Effective date. This Act takes effect upon | ||||||
14 | becoming law.".
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