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1 | AN ACT concerning 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 15 and 20 and adding Section 64.5 as follows: | ||||||
6 | (205 ILCS 305/15) (from Ch. 17, par. 4416)
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7 | Sec. 15. Membership defined.
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8 | (1) The membership of a credit union shall
be limited to | ||||||
9 | and consist of the subscribers to the articles of incorporation
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10 | and such other persons within the common bond, as defined in | ||||||
11 | this Act and
as set forth in the credit union's articles of | ||||||
12 | incorporation, as have been
duly admitted members, have paid | ||||||
13 | the required entrance fee or membership
fee, or both, if any, | ||||||
14 | have subscribed for one or more shares, and have paid
the | ||||||
15 | initial installment thereon, and have complied with such other | ||||||
16 | requirements
as the articles of incorporation or bylaws | ||||||
17 | specify. Two or more persons
within the common bond who have | ||||||
18 | jointly subscribed for one or more shares under
a joint account | ||||||
19 | and have complied with all membership requirements may each be
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20 | admitted to membership. The surviving spouse
of a credit union | ||||||
21 | member may, within 6 months of the member's death, become
a | ||||||
22 | member of the credit union by paying the required entrance fee | ||||||
23 | or membership
fee or both, if any, by subscribing for one or |
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1 | more shares
and paying the initial installment thereon, and by | ||||||
2 | complying with such other
requirements as the articles of | ||||||
3 | incorporation or bylaws specify.
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4 | (2) Any member may withdraw from a credit union at any time | ||||||
5 | upon giving
notice of withdrawal as required by the bylaws.
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6 | (3) Any member may be expelled
by a 2/3 vote of the members | ||||||
7 | present at any regular or special
meeting
called to consider | ||||||
8 | the matter, but only after an opportunity has been given
to the | ||||||
9 | member to be heard.
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10 | (4) A member who has caused a loss to the credit union,
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11 | failed
to maintain one or more shares at the credit union, or | ||||||
12 | violated board policy
applicable to members may be expelled by
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13 | a majority vote of a quorum of directors if the board has | ||||||
14 | adopted a policy
providing for expulsion under those | ||||||
15 | circumstances. In maintaining and
enforcing a policy based on | ||||||
16 | loss, the
board may consider, without limitation, a member's | ||||||
17 | failure to pay amounts due
under a loan, failure to provide | ||||||
18 | collected funds to cover withdrawals or
personal share drafts | ||||||
19 | or credit union drafts where the member is a remitter, or
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20 | failure to pay fees or charges due the credit union. If a | ||||||
21 | policy
is
adopted by the board pursuant to this subsection (4), | ||||||
22 | written notice of the
policy and the effective date of the | ||||||
23 | policy
shall be mailed to each member of the credit union at | ||||||
24 | the member's current
address appearing on the records of the | ||||||
25 | credit union. The policy shall be
mailed to members not fewer | ||||||
26 | than 30 days prior to the effective date of the
policy. In |
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1 | addition, new members shall be provided written notice of the
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2 | policy prior to or upon applying for membership.
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3 | (5) All or any part of the amount paid on shares
of a | ||||||
4 | withdrawing member
or expelled member with any declared | ||||||
5 | dividends or interest on the date of
withdrawal or expulsion | ||||||
6 | must, after deducting all amounts due from the member
to the | ||||||
7 | credit union, be paid to him. The credit union may require not | ||||||
8 | more
than 60 days' written notice of intention to withdraw | ||||||
9 | shares, but a notice
of withdrawal does not entitle the member | ||||||
10 | to any preferred or prior claim
in the event of liquidation. | ||||||
11 | Withdrawing or expelled members have no further
rights in the | ||||||
12 | credit union, but are not, by withdrawal or expulsion, released
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13 | from any obligation they owe to the credit union.
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14 | (6) A member who has caused a loss to the credit union or | ||||||
15 | has violated board
policy applicable to members may be denied | ||||||
16 | any
or all credit union services in accordance with board | ||||||
17 | policy, however, members
who are denied services shall be | ||||||
18 | allowed to maintain a share account and to
vote on all issues
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19 | put to a vote of the membership.
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20 | (7) If a member fails to maintain one fully paid share, the | ||||||
21 | credit union, at its option, may permit the member to | ||||||
22 | re-subscribe and pay for one or more shares within 30 days | ||||||
23 | after the date the member failed to maintain one fully paid | ||||||
24 | share, without affecting the member's status or rights as a | ||||||
25 | member during that period. A member that fails to re-subscribe | ||||||
26 | for at least one fully paid share within the 30-day period |
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1 | shall be automatically expelled from the credit union and | ||||||
2 | treated as an expelled member under subsection (5) of this | ||||||
3 | Section 15.
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4 | (Source: P.A. 97-133, eff. 1-1-12.)
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5 | (205 ILCS 305/20) (from Ch. 17, par. 4421)
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6 | Sec. 20. Election or appointment of officials.
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7 | (1) The credit union shall
be directed by a board of | ||||||
8 | directors consisting of no less than 7 in number,
to be elected | ||||||
9 | at the annual meeting by and from the members. Directors shall
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10 | hold office until the next annual meeting, unless their
terms | ||||||
11 | are staggered. Upon amendment of its bylaws, a credit union may | ||||||
12 | divide
the directors into 2 or 3 classes with each class as | ||||||
13 | nearly equal in number as
possible. The term of office of the | ||||||
14 | directors of the first class shall expire
at the first annual | ||||||
15 | meeting after their election, that of the second class
shall
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16 | expire at the second annual meeting after their election, and | ||||||
17 | that of the third
class, if any, shall expire at the third | ||||||
18 | annual meeting after their election.
At each annual meeting | ||||||
19 | after the classification, the number of directors equal
to the | ||||||
20 | number of directors whose terms expire at the time of the | ||||||
21 | meeting shall
be elected to hold office until the second | ||||||
22 | succeeding annual meeting if there
are 2 classes or until the | ||||||
23 | third succeeding annual meeting if there are 3
classes. A | ||||||
24 | director shall hold office for the term for which he
or she is | ||||||
25 | elected and until his or her
successor
is elected and |
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1 | qualified. | ||||||
2 | (1.5) Except as provided in subsection (1.10), in all | ||||||
3 | elections for directors, every member
has the right to vote, in | ||||||
4 | person or by proxy, the number of shares owned
by him, or in | ||||||
5 | the case of a member other than a natural person, the member's
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6 | one vote, for as many persons as there are directors to be | ||||||
7 | elected, or to
cumulate such shares, and give one candidate as | ||||||
8 | many votes as the number
of directors multiplied by the number | ||||||
9 | of his shares equals, or to distribute
them on
the same | ||||||
10 | principle among as many candidates as he may desire and the | ||||||
11 | directors
shall not be elected in any other manner. Shares held | ||||||
12 | in a joint account
owned by more than one member may be voted | ||||||
13 | by any one of the members, however,
the number of cumulative | ||||||
14 | votes cast may not exceed a total equal to the number
of shares | ||||||
15 | multiplied by the number of directors to be elected. A majority | ||||||
16 | of
the shares entitled
to vote shall be represented either in | ||||||
17 | person or by proxy for the election
of directors. Each director | ||||||
18 | shall wholly take and subscribe to an oath
that he will | ||||||
19 | diligently and honestly perform his duties in administering
the | ||||||
20 | affairs of the credit union, that while he may delegate to | ||||||
21 | another the
performance of those administrative duties he is | ||||||
22 | not thereby relieved from
his responsibility for their | ||||||
23 | performance, that he will not knowingly violate
or permit to be | ||||||
24 | violated any law applicable to the credit union,
and that he is | ||||||
25 | the owner of at least one share of the credit union.
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26 | (1.10) Upon amendment of a credit union's bylaws approved |
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1 | by the members, in all elections for directors, every member | ||||||
2 | who is a natural person shall have the right to cast one vote, | ||||||
3 | regardless of the number of his or her shares, in person or by | ||||||
4 | proxy, for as many persons as there are directors to be | ||||||
5 | elected.
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6 | (1.15) If the board of directors has adopted a policy | ||||||
7 | addressing age eligibility standards on voting, holding | ||||||
8 | office, or petitioning the board, then a credit union may | ||||||
9 | require (i) that members be at least 18 years of age by the | ||||||
10 | date of the meeting in order to vote at meetings of the | ||||||
11 | members, sign nominating petitions, or sign petitions | ||||||
12 | requesting special meetings, and (ii) that members be at least | ||||||
13 | 18 years of age by the date of election or appointment in order | ||||||
14 | to hold elective or appointive office. | ||||||
15 | (2) The board of directors shall appoint from among the | ||||||
16 | members of the
credit union, a supervisory committee of not | ||||||
17 | less than 3 members at the
organization meeting and within 30 | ||||||
18 | days following each annual meeting of
the members for such | ||||||
19 | terms as the bylaws provide. Members of the supervisory | ||||||
20 | committee may, but need not be, on the board of directors, but | ||||||
21 | shall not
be officers of the credit union, members of the | ||||||
22 | credit committee,
or the
credit manager if no credit committee | ||||||
23 | has been appointed.
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24 | (3) The board of directors may appoint, from among the
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25 | members of the
credit union, a credit committee consisting of | ||||||
26 | an odd number, not less than
3 for such terms as the bylaws |
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1 | provide. Members of the credit committee
may, but need not be, | ||||||
2 | directors or officers of the credit union, but shall
not be | ||||||
3 | members of the supervisory committee.
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4 | (4) The board of directors may appoint from among the | ||||||
5 | members
of the
credit union a membership committee of one or | ||||||
6 | more persons. If appointed,
the committee shall act
upon all | ||||||
7 | applications for membership and submit a report of its actions
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8 | to the board of directors at the next regular meeting for
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9 | review.
If no membership committee is appointed, credit union | ||||||
10 | management shall act
upon all applications for membership and | ||||||
11 | submit a report of its actions to the board of directors
at the | ||||||
12 | next regular meeting for review.
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13 | (Source: P.A. 97-133, eff. 1-1-12.)
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14 | (205 ILCS 305/64.5 new) | ||||||
15 | Sec. 64.5. Continuation of corporate entity. | ||||||
16 | (a) For purposes of this Section, a "resulting credit | ||||||
17 | union" means an Illinois-chartered credit union that is the | ||||||
18 | surviving credit union in a merger of 2 or more credit unions, | ||||||
19 | a new credit union resulting from a consolidation of 2 or more | ||||||
20 | credit unions, or a credit union that has effected a conversion | ||||||
21 | from a credit union chartered under the laws of any other state | ||||||
22 | or under the laws of the United States. | ||||||
23 | (b) A resulting credit union shall be considered the same | ||||||
24 | business and corporate entity as each merging or consolidating | ||||||
25 | credit union or as the converting credit union, with all the |
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1 | property, rights, powers, duties, and obligations of each | ||||||
2 | merging or consolidating credit union or of the converting | ||||||
3 | credit union, except as affected by the charter and bylaws of | ||||||
4 | the resulting credit union. A resulting credit union shall be | ||||||
5 | liable for all liabilities of the merging or consolidating | ||||||
6 | credit union or converting credit union. All the rights, | ||||||
7 | franchises, and interests of the merging or consolidating | ||||||
8 | credit union or converting credit union in and to every species | ||||||
9 | of property, real, personal, and mixed, and choses in action | ||||||
10 | thereunto belonging, shall be deemed to be automatically | ||||||
11 | transferred to and vested in the resulting credit union as a | ||||||
12 | successor-in-interest without any deed or other transfer, and | ||||||
13 | the resulting credit union, without any order or other action | ||||||
14 | on the part of any court or otherwise, shall hold and enjoy the | ||||||
15 | same and all rights of property, franchises, and interests, | ||||||
16 | including appointments, designations, and nominations, and all | ||||||
17 | other rights and interests as trustee, executor, | ||||||
18 | administrator, registrar or transfer agent of stocks and bonds, | ||||||
19 | guardian, assignee, receiver, and in every other fiduciary | ||||||
20 | capacity, in the same manner and to the same extent as was held | ||||||
21 | and enjoyed by the merging or consolidating credit union or the | ||||||
22 | converting credit union. Any reference to a merging, | ||||||
23 | consolidating, or converting credit union in any writing, | ||||||
24 | whether executed or taking effect before or after the merger, | ||||||
25 | consolidation, or conversion, shall be deemed a reference to | ||||||
26 | the resulting credit union if not inconsistent with the other |
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1 | provisions of the writing.
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
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