Rep. Lou Lang

Filed: 2/26/2014





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2    AMENDMENT NO. ______. Amend House Bill 5342 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Credit Union Act is amended by
5changing Sections 1.1, 9, 30, 34, 39, and 46 and by adding
6Section 57.1 as follows:
7    (205 ILCS 305/1.1)  (from Ch. 17, par. 4402)
8    Sec. 1.1. Definitions.
9    Credit Union - The term "credit union" means a cooperative,
10non-profit association, incorporated under this Act, under the
11laws of the United States of America or under the laws of
12another state, for the purposes of encouraging thrift among its
13members, creating a source of credit at a reasonable rate of
14interest, and providing an opportunity for its members to use
15and control their own money in order to improve their economic
16and social conditions. The membership of a credit union shall



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1consist of a group or groups each having a common bond as set
2forth in this Act.
3    Common Bond - The term "common bond" refers to groups of
4people who meet one of the following qualifications:
5        (1) Persons belonging to a specific association, group
6    or organization, such as a church, labor union, club or
7    society and members of their immediate families which shall
8    include any relative by blood or marriage or foster and
9    adopted children.
10        (2) Persons who reside in a reasonably compact and well
11    defined neighborhood or community, and members of their
12    immediate families which shall include any relative by
13    blood or marriage or foster and adopted children.
14        (3) Persons who have a common employer or who are
15    members of an organized labor union or an organized
16    occupational or professional group within a defined
17    geographical area, and members of their immediate families
18    which shall include any relative by blood or marriage or
19    foster and adopted children.
20    Shares - The term "shares" or "share accounts" means any
21form of shares issued by a credit union and established by a
22member in accordance with standards specified by a credit
23union, including but not limited to common shares, share draft
24accounts, classes of shares, share certificates, special
25purpose share accounts, shares issued in trust, custodial
26accounts, and individual retirement accounts or other plans



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1established pursuant to Section 401(d) or (f) or Section 408(a)
2of the Internal Revenue Code, as now or hereafter amended, or
3similar provisions of any tax laws of the United States that
4may hereafter exist.
5    Credit Union Organization - The term "credit union
6organization" means any organization established to serve the
7needs of credit unions, the business of which relates to the
8daily operations of credit unions.
9    Department - The term "Department" means the Illinois
10Department of Financial and Professional Regulation.
11    Secretary - The term "Secretary" means the Secretary of
12Financial and Professional Regulation or a person authorized by
13the Secretary or this Act to act in the Secretary's stead.
14    Division of Financial Institutions - The term "Division of
15Financial Institutions" means the Division of Financial
16Institutions of the Department of Financial and Professional
18    Director - The term "Director of Financial Institutions"
19means the Director of the Division of Financial Institutions of
20the Department of Financial and Professional Regulation.
21    Office - The term "office" means the Division of Financial
22Institutions of the Department of Financial and Professional
24    NCUA - The term "NCUA" means the National Credit Union
25Administration, an agency of the United States Government
26charged with the supervision of credit unions chartered under



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1the laws of the United States of America.
2    Central Credit Union - The term "central credit union"
3means a credit union incorporated primarily to receive shares
4from and make loans to credit unions and directors, officers,
5committee members and employees of credit unions. A central
6credit union may also accept as members persons who were
7members of credit unions which were liquidated and persons from
8occupational groups not otherwise served by another credit
10    Corporate Credit Union - The term "corporate credit union"
11means a credit union which is a cooperative, non-profit
12association, the membership of which is limited primarily to
13other credit unions.
14    Insolvent - "Insolvent" means the condition that results
15when the total of all liabilities and shares exceeds net assets
16of the credit union.
17    Danger of insolvency - For purposes of Section 61, a credit
18union is in "danger of insolvency" if its net worth to asset
19ratio falls below 2%. In calculating the danger of insolvency
20ratio, secondary capital shall be excluded. For purposes of
21Section 61, a credit union is also in "danger of insolvency" if
22the Department is unable to ascertain, upon examination, the
23true financial condition of the credit union.
24    Net Worth - "Net worth" means the retained earnings balance
25of the credit union, as determined under generally accepted
26accounting principles, and forms of secondary capital approved



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1by the Secretary and the Director pursuant to rulemaking.
2    Charitable Donation Account The term "charitable
3donation account" means an account owned by a credit union that
4is held in a segregated custodial account or special purpose
5entity and specifically identified as a charitable donation
6account whereby, no less frequently than every 5 years and upon
7termination of the account, at least 51% of the total return on
8assets in the account is distributed to one or more charitable
9organizations or non-profit entities.
10(Source: P.A. 97-133, eff. 1-1-12.)
11    (205 ILCS 305/9)  (from Ch. 17, par. 4410)
12    Sec. 9. Reports and examinations.
13    (1) Credit unions shall report to the Department on forms
14supplied by the Department, in accordance with a schedule
15published by the Department. A recapitulation of the annual
16reports shall be compiled and published annually by the
17Department, for the use of the General Assembly, credit unions,
18various educational institutions and other interested parties.
19A credit union which fails to file any report when due shall
20pay to the Department a late filing fee for each day the report
21is overdue as prescribed by rule. The Secretary may extend the
22time for filing a report.
23    (2) The Secretary may require special examinations of and
24special financial reports from a credit union or a credit union
25organization in which a credit union loans, invests, or



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1delegates substantially all managerial duties and
2responsibilities when he determines that such examinations and
3reports are necessary to enable the Department to determine the
4safety of a credit union's operation or its solvency. The cost
5to the Department of the aforesaid special examinations shall
6be borne by the credit union being examined as prescribed by
8    (3) All credit unions incorporated under this Act shall be
9examined at least biennially by the Department or, at the
10discretion of the Secretary, by a public accountant registered
11by the Department of Financial and Professional Regulation. The
12costs of an examination shall be paid by the credit union. The
13scope of all examinations by a public accountant shall be at
14least equal to the examinations made by the Department. The
15examiners shall have full access to, and may compel the
16production of, all the books, papers, securities and accounts
17of any credit union. A special examination shall be made by the
18Department or by a public accountant approved by the Department
19upon written request of 5 or more members, who guarantee the
20expense of the same. Any credit union refusing to submit to an
21examination when ordered by the Department shall be reported to
22the Attorney General, who shall institute proceedings to have
23its charter revoked. If the Secretary determines that the
24examination of a credit union is to be conducted by a public
25accountant registered by the Department of Financial and
26Professional Regulation and the examination is done in



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1conjunction with the credit union's external independent audit
2of financial statements, the requirements of this Section and
3subsection (3) of Section 34 shall be deemed met.
4    (3.5) Pursuant to Section 8, the Secretary shall adopt
5rules that ensure consistency and due process in the
6examination process. The Secretary may also establish
7guidelines that (i) define the scope of the examination process
8and (ii) clarify examination items to be resolved. The rules,
9formal guidance, interpretative letters, or opinions furnished
10to credit unions by the Secretary may be relied upon by the
11credit unions.
12    (4) A copy of the completed report of examination and a
13review comment letter, if any, citing exceptions revealed
14during the examination, shall be submitted to the credit union
15by the Department. A detailed report stating the corrective
16actions taken by the board of directors on each exception set
17forth in the review comment letter shall be filed with the
18Department within 40 days after the date of the review comment
19letter, or as otherwise directed by the Department. Any credit
20union through its officers, directors, committee members or
21employees, which willfully provides fraudulent or misleading
22information regarding the corrective actions taken on
23exceptions appearing in a review comment letter may have its
24operations restricted to the collection of principal and
25interest on loans outstanding and the payment of normal
26expenses and salaries until all exceptions are corrected and



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1accepted by the Department.
2(Source: P.A. 97-133, eff. 1-1-12.)
3    (205 ILCS 305/30)  (from Ch. 17, par. 4431)
4    Sec. 30. Duties of directors.
5    (a) It shall be the duty of the directors to:
6        (1) Review actions on applications for membership. A
7    record of the membership committee's approval or denial of
8    membership or management's approval or denial of
9    membership if no membership committee has been appointed
10    shall be available to the board of directors for
11    inspection. A person denied membership by the membership
12    committee or credit union management may appeal the denial
13    to the board;
14        (2) Provide adequate fidelity bond coverage for
15    officers, employees, directors and committee members, and
16    for losses caused by persons outside of the credit union,
17    subject to rules and regulations promulgated by the
18    Secretary;
19        (3) Determine from time to time the interest rates, not
20    in excess of that allowed under this Act, which shall be
21    charged on loans to members and to authorize interest
22    refunds, if any, to members from income earned and received
23    in proportion to the interest paid by them on such classes
24    of loans and under such conditions as the board prescribes.
25    The directors may establish different interest rates to be



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1    charged on different classes of loans;
2        (4) Within any limitations set forth in the credit
3    union's bylaws, fix the maximum amount which may be loaned
4    with and without security to a member;
5        (5) Declare dividends on various classes of shares in
6    the manner and form as provided in the bylaws;
7        (6) Limit the number of shares which may be owned by a
8    member; such limitations to apply alike to all members;
9        (7) Have charge of the investment of funds, except that
10    the board of directors may designate an investment
11    committee or any qualified individual or entity to have
12    charge of making investments under policies established by
13    the board of directors;
14        (8) Authorize the employment of or contracting with
15    such persons or organizations as may be necessary to carry
16    on the operations of the credit union, provided that prior
17    approval is received from the Department before delegating
18    substantially all managerial duties and responsibilities
19    to a credit union organization, and fix the compensation,
20    if any, of the officers and provide for compensation for
21    other employees within policies established by the board of
22    directors;
23        (9) Authorize the conveyance of property;
24        (10) Borrow or lend money consistent with the
25    provisions of this Act;
26        (11) Designate a depository or depositories for the



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1    funds of the credit union and supervise the investment of
2    funds;
3        (12) Suspend or remove, or both, any or all officers or
4    any or all members of the membership, credit, or other
5    committees whenever, in the judgment of the board of
6    directors, the best interests of the credit union will be
7    served thereby; provided that members of the supervisory
8    committee may not be suspended or removed except for
9    failure to perform their duties; and provided that removal
10    of any officer shall be without prejudice to the contract
11    rights, if any, of the person so removed;
12        (13) Appoint any special committees deemed necessary;
13    and
14        (14) Perform such other duties as the members may
15    direct, and perform or authorize any action not
16    inconsistent with this Act and not specifically reserved by
17    the bylaws to the members.
18    (b) The board of directors may delegate to the chief
19management official, according to guidelines established by
20the board that may include the authority to further delegate
21one or more duties, all of the following duties:
22        (1) determining the interest rates on loans;
23        (2) determining the dividend rates on share accounts;
24    and
25        (3) hiring employees other than the chief management
26    official and fixing their compensation.



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1    (c) Each director shall have a working familiarity with
2basic finance and accounting practices consistent with the size
3and complexity of the credit union operation they serve,
4including the ability to read and understand the credit union's
5balance sheet and income and expense statements and the ability
6to ask, when appropriate, substantive questions of management
7and auditors. For the purposes of this subsection (c),
8substantive questions include queries concerning financial
9services and products offered to the membership; how those
10activities generate revenue for the credit union; the credit,
11liquidity, interest rate, compliance, strategic, transaction,
12and reputation risks associated with those activities; and the
13internal control structures maintained by the credit union that
14limit and manage those risks.
15    A director who was elected or appointed on or after January
161, 2015 and who comes to the position without the requisite
17financial skills shall have until 6 months after the date of
18election or appointment to acquire the enumerated skills.
19    An incumbent director who was elected or appointed before
20January 1, 2015 and does not possess the requisite financial
21skills shall have until July 1, 2015 to acquire the enumerated
23    An incumbent director or a director who is elected or
24appointed on or after January 1, 2015 who already understands
25his or her credit union's financial statements shall not be
26required to do anything further to satisfy the financial skills



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1requirement set forth in subsection (c).
2    It is the intent of the Department that all credit union
3directors possess a basic understanding of their credit union's
4financial condition. It is not the intent of the Department to
5subject credit union directors to examiner scrutiny of their
6financial skills. Rather, the Department shall evaluate
7whether the credit union has in place a policy to make
8available to their directors appropriate training to enhance
9their financial knowledge of the credit union. Directors may
10receive the training through internal credit union training,
11external training offered by the credit union's retained
12auditors, trade associations, vendors, regulatory agencies, or
13any other sources or on-the-job experience, or a combination of
14those activities. The training may be received through any
15medium, including, but not limited to, conferences, workshops,
16audit closing meetings, seminars, teleconferences, webinars,
17and other internet based delivery channels.
18(Source: P.A. 97-133, eff. 1-1-12.)
19    (205 ILCS 305/34)  (from Ch. 17, par. 4435)
20    Sec. 34. Duties of supervisory committee.
21    (1) The supervisory committee shall make or cause to be
22made an annual internal audit of the books and affairs of the
23credit union to determine that the credit union's accounting
24records and reports are prepared promptly and accurately
25reflect operations and results, that internal controls are



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1established and effectively maintained to safeguard the assets
2of the credit union, and that the policies, procedures and
3practices established by the board of directors and management
4of the credit union are being properly administered. The
5supervisory committee shall submit a report of that audit to
6the board of directors and a summary of that report to the
7members at the next annual meeting of the credit union. It
8shall make or cause to be made such supplementary audits as it
9deems necessary or as are required by the Secretary or by the
10board of directors, and submit reports of these supplementary
11audits to the Secretary or board of directors as applicable. If
12the supervisory committee has not engaged a public accountant
13registered by the Department of Financial and Professional
14Regulation to make the internal audit, the supervisory
15committee or other officials of the credit union shall not
16indicate or in any manner imply that such audit has been
17performed by a public accountant or that the audit represents
18the independent opinion of a public accountant. The supervisory
19committee must retain its tapes and working papers of each
20internal audit for inspection by the Department. The report of
21this audit must be made on a form approved by the Secretary. A
22copy of the report must be promptly mailed to the Secretary.
23    (2) The supervisory committee shall make or cause to be
24made at least once each year a reasonable percentage
25verification of members' share and loan accounts, consistent
26with rules promulgated by the Secretary.



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1    (3) The supervisory committee of a credit union with assets
2of $5,000,000 or more shall engage a public accountant
3registered by the Department of Financial and Professional
4Regulation to perform an annual external independent audit of
5the credit union's financial statements in accordance with
6generally accepted auditing standards. The supervisory
7committee of a credit union with assets of $3,000,000 or more,
8but less than $5,000,000, shall engage a public accountant
9registered by the Department of Financial and Professional
10Regulation to perform an external independent audit of the
11credit union's financial statements in accordance with
12generally accepted auditing standards at least once every 3
13years. A copy of an external independent audit shall be
14completed and mailed to the Secretary no later than 90 days
15after December 31 of each year; provided that a credit union or
16group of credit unions may obtain an extension of the due date
17upon application to and receipt of written approval from the
18Secretary. If the annual internal audit of such a credit union
19is conducted by a public accountant registered by the
20Department of Financial and Professional Regulation and the
21annual internal audit is done in conjunction with the credit
22union's annual external audit, the requirements of subsection
23(1) of this Section shall be deemed met.
24    (4) In determining the appropriate balance in the allowance
25for loan losses account, a credit union may determine its
26historical loss rate using a defined period of time of less



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1than 5 years, provided that:
2        (A) the methodology used to determine the defined
3    period of time is formally documented in the credit union's
4    policies and procedures and is appropriate to the credit
5    union's size, business strategy, and loan portfolio
6    characteristics and the economic environment of the areas
7    and employers served by the credit union;
8        (B) supporting documentation is maintained for the
9    technique used to develop the credit union loss rates,
10    including the period of time used to accumulate historical
11    loss data and the factors considered in establishing the
12    time frames; and
13        (C) the external auditor conducting the credit union's
14    financial statement audit has analyzed the methodology
15    employed by the credit union and concludes that the
16    financial statements, including the allowance for loan
17    losses, are fairly stated in all material respects in
18    accordance with U.S. Generally Accepted Accounting
19    Principles, as promulgated by the Financial Accounting
20    Standards Board.
21    (5) A majority of the members of the supervisory committee
22shall constitute a quorum.
23    (6) On an annual basis commencing January 1, 2015, the
24members of the supervisory committee shall receive training
25related to their statutory duties. Supervisory committee
26members may receive the training through internal credit union



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1training, external training offered by the credit union's
2retained auditors, trade associations, vendors, regulatory
3agencies, or any other sources or on-the-job experience, or a
4combination of those activities. The training may be received
5through any medium, including, but not limited to, conferences,
6workshops, audit closing meetings, seminars, teleconferences,
7webinars, and other Internet-based delivery channels.
8(Source: P.A. 96-141, eff. 8-7-09; 96-963, eff. 7-2-10; 97-133,
9eff. 1-1-12.)
10    (205 ILCS 305/39)  (from Ch. 17, par. 4440)
11    Sec. 39. Special purpose share accounts; charitable
12donation accounts.
13    (1) If provided for in and consistent with the bylaws,
14Christmas clubs, vacation clubs and other special purpose share
15accounts may be established and offered under conditions and
16restrictions established by the board of directors.
17    (2) Pursuant to a policy adopted by the board of directors,
18which may be amended from time to time, a credit union may
19establish one or more charitable donation accounts. The
20investments and purchases to fund a charitable donation account
21are not subject to the investment limitations of this Act,
22provided the charitable donation account is structured in
23accordance with this Act. At their time of purchase, the book
24value of the investments in all charitable donation accounts,
25in the aggregate, shall not exceed 5% of the credit union's net



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2        (a) If a credit union chooses to establish a charitable
3    donation account using a trust vehicle, the trustee must be
4    an entity regulated by the Office of the Comptroller of the
5    Currency, the U.S. Securities and Exchange Commission,
6    another federal regulatory agency, or a State financial
7    regulatory agency. A regulated trustee or other person who
8    is authorized to make investment decisions for a charitable
9    donation account, other than the credit union itself, shall
10    either be registered with the U.S. Securities and Exchange
11    Commission as an investment advisor or regulated by the
12    Office of the Comptroller of the Currency.
13        (b) The parties to the charitable donation account must
14    document the terms and conditions controlling the account
15    in a written operating agreement, trust agreement, or
16    similar instrument. The terms of the agreement shall be
17    consistent with the requirements and conditions set forth
18    in this Section. The agreement, if applicable, and policies
19    must document the investment strategies of the charitable
20    donation account trustee or other manager in administering
21    the charitable donation account and provide for the
22    accounting of all aspects of the account, including its
23    distributions and liquidation, in accordance with
24    generally accepted accounting principles.
25        (c) A credit union's charitable donation account
26    agreement, if applicable, and policies shall provide that



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1    the charitable organization or non-profit entity
2    recipients of any charitable donation account funds must be
3    identified in the policy and be exempt from taxation under
4    Section 501(c)(3) of the Internal Revenue Code.
5        (d) Upon termination of a charitable donation account,
6    the credit union may receive a distribution of the
7    remaining assets in cash, or a distribution in kind of the
8    remaining assets, but only if those assets are permissible
9    investments for credit unions pursuant to this Act.
10(Source: P.A. 97-133, eff. 1-1-12.)
11    (205 ILCS 305/46)  (from Ch. 17, par. 4447)
12    Sec. 46. Loans and interest rate.
13    (1) A credit union may make loans to its members for such
14purpose and upon such security and terms, including rates of
15interest, as the credit committee, credit manager, or loan
16officer approves. Notwithstanding the provisions of any other
17law in connection with extensions of credit, a credit union may
18elect to contract for and receive interest and fees and other
19charges for extensions of credit subject only to the provisions
20of this Act and rules promulgated under this Act, except that
21extensions of credit secured by residential real estate shall
22be subject to the laws applicable thereto. The rates of
23interest to be charged on loans to members shall be set by the
24board of directors of each individual credit union in
25accordance with Section 30 of this Act and such rates may be



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1less than, but may not exceed, the maximum rate set forth in
2this Section. A borrower may repay his loan prior to maturity,
3in whole or in part, without penalty. The credit contract may
4provide for the payment by the member and receipt by the credit
5union of all costs and disbursements, including reasonable
6attorney's fees and collection agency charges, incurred by the
7credit union to collect or enforce the debt in the event of a
8delinquency by the member, or in the event of a breach of any
9obligation of the member under the credit contract. A
10contingency or hourly arrangement established under an
11agreement entered into by a credit union with an attorney or
12collection agency to collect a loan of a member in default
13shall be presumed prima facie reasonable.
14    (2) Credit unions may make loans based upon the security of
15any interest or equity in real estate, subject to rules and
16regulations promulgated by the Secretary. In any contract or
17loan which is secured by a mortgage, deed of trust, or
18conveyance in the nature of a mortgage, on residential real
19estate, the interest which is computed, calculated, charged, or
20collected pursuant to such contract or loan, or pursuant to any
21regulation or rule promulgated pursuant to this Act, may not be
22computed, calculated, charged or collected for any period of
23time occurring after the date on which the total indebtedness,
24with the exception of late payment penalties, is paid in full.
25    For purposes of this subsection (2) of this Section 46, a
26prepayment shall mean the payment of the total indebtedness,



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1with the exception of late payment penalties if incurred or
2charged, on any date before the date specified in the contract
3or loan agreement on which the total indebtedness shall be paid
4in full, or before the date on which all payments, if timely
5made, shall have been made. In the event of a prepayment of the
6indebtedness which is made on a date after the date on which
7interest on the indebtedness was last computed, calculated,
8charged, or collected but before the next date on which
9interest on the indebtedness was to be calculated, computed,
10charged, or collected, the lender may calculate, charge and
11collect interest on the indebtedness for the period which
12elapsed between the date on which the prepayment is made and
13the date on which interest on the indebtedness was last
14computed, calculated, charged or collected at a rate equal to
151/360 of the annual rate for each day which so elapsed, which
16rate shall be applied to the indebtedness outstanding as of the
17date of prepayment. The lender shall refund to the borrower any
18interest charged or collected which exceeds that which the
19lender may charge or collect pursuant to the preceding
20sentence. The provisions of this amendatory Act of 1985 shall
21apply only to contracts or loans entered into on or after the
22effective date of this amendatory Act.
23    (3) Notwithstanding any other provision of this Act, a
24credit union authorized under this Act to make loans secured by
25an interest or equity in real estate may engage in making
26"reverse mortgage" loans to persons for the purpose of making



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1home improvements or repairs, paying insurance premiums or
2paying real estate taxes on the homestead properties of such
3persons. If made, such loans shall be made on such terms and
4conditions as the credit union shall determine and as shall be
5consistent with the provisions of this Section and such rules
6and regulations as the Secretary shall promulgate hereunder.
7For purposes of this Section, a "reverse mortgage" loan shall
8be a loan extended on the basis of existing equity in homestead
9property and secured by a mortgage on such property. Such loans
10shall be repaid upon the sale of the property or upon the death
11of the owner or, if the property is in joint tenancy, upon the
12death of the last surviving joint tenant who had such an
13interest in the property at the time the loan was initiated,
14provided, however, that the credit union and its member may by
15mutual agreement, establish other repayment terms. A credit
16union, in making a "reverse mortgage" loan, may add deferred
17interest to principal or otherwise provide for the charging of
18interest or premiums on such deferred interest. "Homestead"
19property, for purposes of this Section, means the domicile and
20contiguous real estate owned and occupied by the mortgagor.
21    (4) Notwithstanding any other provisions of this Act, a
22credit union authorized under this Act to make loans secured by
23an interest or equity in real property may engage in making
24revolving credit loans secured by mortgages or deeds of trust
25on such real property or by security assignments of beneficial
26interests in land trusts.



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1    For purposes of this Section, "revolving credit" has the
2meaning defined in Section 4.1 of the Interest Act.
3    Any mortgage or deed of trust given to secure a revolving
4credit loan may, and when so expressed therein shall, secure
5not only the existing indebtedness but also such future
6advances, whether such advances are obligatory or to be made at
7the option of the lender, or otherwise, as are made within
8twenty years from the date thereof, to the same extent as if
9such future advances were made on the date of the execution of
10such mortgage or deed of trust, although there may be no
11advance made at the time of execution of such mortgage or other
12instrument, and although there may be no indebtedness
13outstanding at the time any advance is made. The lien of such
14mortgage or deed of trust, as to third persons without actual
15notice thereof, shall be valid as to all such indebtedness and
16future advances form the time said mortgage or deed of trust is
17filed for record in the office of the recorder of deeds or the
18registrar of titles of the county where the real property
19described therein is located. The total amount of indebtedness
20that may be so secured may increase or decrease from time to
21time, but the total unpaid balance so secured at any one time
22shall not exceed a maximum principal amount which must be
23specified in such mortgage or deed of trust, plus interest
24thereon, and any disbursements made for the payment of taxes,
25special assessments, or insurance on said real property, with
26interest on such disbursements.



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1    Any such mortgage or deed of trust shall be valid and have
2priority over all subsequent liens and encumbrances, including
3statutory liens, except taxes and assessments levied on said
4real property.
5    (5) Compliance with federal or Illinois preemptive laws or
6regulations governing loans made by a credit union chartered
7under this Act shall constitute compliance with this Act.
8    (6) Credit unions may make residential real estate mortgage
9loans on terms and conditions established by the United States
10Department of Agriculture through its Rural Development
11Housing and Community Facilities Program. The portion of any
12loan in excess of the appraised value of the real estate shall
13be allocable only to the guarantee fee required under the
15    (7) For a renewal, refinancing, or restructuring of an
16existing loan that is secured by an interest or equity in real
17estate, a new appraisal of the collateral shall not be required
18when the transaction involves an existing extension of credit
19at the credit union, no new moneys are advanced other than
20funds necessary to cover reasonable closing costs, and there
21has been no obvious or material change in market conditions or
22physical aspects of the real estate that threatens the adequacy
23of the credit union's real estate collateral protection after
24the transaction.
25(Source: P.A. 96-141, eff. 8-7-09; 97-133, eff. 1-1-12.)



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1    (205 ILCS 305/57.1 new)
2    Sec. 57.1. Services to other credit unions.
3    (a) A credit union may act as a representative of and enter
4into an agreement with credit unions or other organizations for
5the purpose of:
6        (1) sharing, utilizing, renting, leasing, purchasing,
7    selling, and joint ownership of fixed assets or engaging in
8    activities and services that relate to the daily operations
9    of credit unions; and
10        (2) providing correspondent services to other credit
11    unions that the service provider credit union is authorized
12    to perform for its own members or as part of its
13    operations, including, but not limited to, loan
14    processing, loan servicing, member check cashing services,
15    disbursing share withdrawals and loan proceeds, cashing
16    and selling money orders, ACH and wire transfer services,
17    coin and currency services, performing internal audits,
18    and automated teller machine deposit services.
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".