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1 | AN ACT concerning financial regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Credit Union Act is amended by | ||||||
5 | changing Sections 23, 26, and 30 and by adding Section 16.1 as | ||||||
6 | follows: | ||||||
7 | (205 ILCS 305/16.1 new) | ||||||
8 | Sec. 16.1. Service to the economically disadvantaged.
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9 | (a) Persons who reside in investment areas as defined in | ||||||
10 | the Community Development Banking and Financial Institutions | ||||||
11 | Act of 1994 (12 U.S.C. 4702) and identified by the U.S. | ||||||
12 | Department of the Treasury may be admitted to membership in a | ||||||
13 | credit union that serves the area by maintaining a facility in | ||||||
14 | the area. For purposes of this Section, a "facility" means a | ||||||
15 | credit union owned branch, a shared branch, an office operated | ||||||
16 | on a regularly scheduled weekly basis, or a credit union owned | ||||||
17 | electronic facility that meets, at a minimum, the requirements | ||||||
18 | of accepting shares for members' accounts, accepting loan | ||||||
19 | applications and disbursing loans, but does not include an ATM. | ||||||
20 | (b) Credit unions desiring to serve the economically | ||||||
21 | disadvantaged in accordance with this Section shall do so | ||||||
22 | pursuant to a written business plan that shall document the | ||||||
23 | fact that the area meets the criteria of this Section, identify | ||||||
24 | the credit and depository needs of the area, identify the | ||||||
25 | services to be delivered, and describe the manner in which the | ||||||
26 | services will be delivered. The credit union shall regularly | ||||||
27 | review the business plan to determine whether the area is being | ||||||
28 | adequately served and shall provide to the Director periodic | ||||||
29 | service status reports that describe how the needs of the area | ||||||
30 | are being met.
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31 | (205 ILCS 305/23) (from Ch. 17, par. 4424)
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1 | Sec. 23. Compensation of officials.
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2 | (1) No director or committee member may
receive | ||||||
3 | compensation for his service as such.
"Compensation" as used in | ||||||
4 | this subsection (1) refers to remuneration expense
to the | ||||||
5 | credit union for services provided by a director or committee | ||||||
6 | member in
his or her capacity as director or committee member. | ||||||
7 | "Compensation" as used in
this subsection (1) does not include | ||||||
8 | the expense of providing
reasonable life, health,
accident, and | ||||||
9 | similar insurance protection benefits for a director or
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10 | committee member.
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11 | (2) Directors, committee members and
employees, while on | ||||||
12 | official business of the credit union, may be reimbursed
for | ||||||
13 | reasonable and necessary expenses. Alternatively, the credit | ||||||
14 | union may make direct payment to a third party for such | ||||||
15 | business expenses. Reasonable and necessary expenses may | ||||||
16 | include the payment of travel costs for the foregoing officials | ||||||
17 | and one guest per official. All payment of costs shall be made | ||||||
18 | in accordance with written policies and procedures established | ||||||
19 | by the Board of Directors.
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20 | (3) The Board of Directors may establish
compensation for | ||||||
21 | officers of the credit union.
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22 | (Source: P.A. 92-608, eff. 7-1-02.)
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23 | (205 ILCS 305/26) (from Ch. 17, par. 4427)
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24 | Sec. 26. Executive Officers. (1) At their first meeting, | ||||||
25 | the Board of
Directors shall elect from among their own number | ||||||
26 | a Chairman of the Board
and one or more Vice Chairmen, a | ||||||
27 | Secretary and a Treasurer. The Directors
shall appoint a chief | ||||||
28 | management official who shall have such title as the Directors | ||||||
29 | shall determine. The Directors
President and
may also appoint | ||||||
30 | one or more Vice Presidents.
The President shall be the chief | ||||||
31 | operating officer of the credit union.
The chief management | ||||||
32 | official
President and Vice President may, but need not, be | ||||||
33 | Directors. Any two
or more offices may be held by the same | ||||||
34 | person, except the Chairman of the Board
President may
not also | ||||||
35 | hold the office of Vice Chairman
President or Secretary. |
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1 | (2) The officers shall serve for a term of one year, or | ||||||
2 | until their successors
are chosen and have been duly qualified.
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3 | (3) The duties of the officers shall be prescribed in the | ||||||
4 | bylaws. Compensation
of officers shall be such as may be | ||||||
5 | established by the Directors from time to time.
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6 | (Source: P.A. 81-329.)
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7 | (205 ILCS 305/30) (from Ch. 17, par. 4431)
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8 | Sec. 30. Duties of directors. It shall be the duty of the | ||||||
9 | directors to:
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10 | (1) Review actions on applications
for membership. A | ||||||
11 | record of the Membership Committee's approval or
denial of | ||||||
12 | membership or management's approval or denial of | ||||||
13 | membership if no
Membership Committee has been appointed | ||||||
14 | shall be available to the Board of
Directors for | ||||||
15 | inspection. A person denied membership by the Membership
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16 | Committee or credit union management may appeal the denial | ||||||
17 | to the Board;
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18 | (2) Provide adequate fidelity bond coverage for | ||||||
19 | officers,
employees, directors and committee members, and | ||||||
20 | for losses caused by
persons outside of the credit union, | ||||||
21 | subject to rules and regulations
promulgated by the | ||||||
22 | Director;
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23 | (3) Determine from time to time the interest rates, not | ||||||
24 | in excess of that
allowed under this Act, which shall be | ||||||
25 | charged on loans to members and to
authorize interest | ||||||
26 | refunds, if any, to members from income earned and received
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27 | in proportion to the interest paid by them on such classes | ||||||
28 | of loans and
under such conditions as the Board prescribes. | ||||||
29 | The Directors may establish
different interest rates to be | ||||||
30 | charged on different classes of loans;
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31 | (4) Within any limitations set forth in the credit | ||||||
32 | union's bylaws, fix
the maximum amount which may be loaned | ||||||
33 | with and without security to a member;
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34 | (5) Declare dividends on various classes of shares in | ||||||
35 | the manner and form
as provided in the bylaws;
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1 | (6) Limit the number of shares which may be owned by a | ||||||
2 | member;
such limitations to apply alike to all members;
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3 | (7) Have charge of the investment of funds, except that | ||||||
4 | the Board of
Directors may designate an Investment | ||||||
5 | Committee or any qualified individual
or entity to have | ||||||
6 | charge of making investments under policies established
by | ||||||
7 | the Board of Directors;
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8 | (8) Authorize the employment of or contracting with | ||||||
9 | such persons or
organizations as may be necessary to carry | ||||||
10 | on the
operations of the credit union, provided that prior | ||||||
11 | approval is received from
the
Department before delegating | ||||||
12 | substantially all managerial duties and
responsibilities | ||||||
13 | to a credit union organization, and fix
the compensation, | ||||||
14 | if any, of the officers and provide for compensation for
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15 | other employees within
policies established by the Board of | ||||||
16 | Directors;
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17 | (9) Authorize the conveyance of property;
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18 | (10) Borrow or lend money consistent with the | ||||||
19 | provisions of this Act;
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20 | (11) Designate a depository or depositories for the | ||||||
21 | funds of the credit
union and supervise the investment of | ||||||
22 | funds;
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23 | (12) Suspend or remove, or both, for cause, any or all | ||||||
24 | officers or any
or all members of the Membership, Credit, | ||||||
25 | Supervisory or other committees
whenever, in the judgment | ||||||
26 | of the Board of Directors, the best interests of the credit | ||||||
27 | union will be served thereby; provided that members of the | ||||||
28 | Supervisory Committee may not be suspended or removed | ||||||
29 | except for failure to perform their duties; and provided | ||||||
30 | that removal of any officer shall be without prejudice to | ||||||
31 | the contract rights, if any, of the person so removed
for | ||||||
32 | failure to perform their duties ;
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33 | (13) Appoint any special committees deemed necessary; | ||||||
34 | and ;
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35 | (14) Perform such other duties as the members may | ||||||
36 | direct, and perform
or authorize any action not |
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1 | inconsistent with this Act and not specifically
reserved by | ||||||
2 | the bylaws to the members.
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3 | (Source: P.A. 92-608, eff. 7-1-02; revised 1-20-03.)
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4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.
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