Illinois General Assembly - Full Text of HB0188
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Full Text of HB0188  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/22/2021, by Rep. La Shawn K. Ford


205 ILCS 305/9  from Ch. 17, par. 4410

    Amends the Illinois Credit Union Act. Provides that the Director of the Division of Financial Institutions of the Department of Financial and Professional Regulation may accept an examination of a credit union made by the credit union's share insurer as an alternative to the biennial examination of a credit union conducted by the Department of Financial and Professional Regulation or a public accountant registered by the Department.

LRB102 04283 BMS 14301 b





HB0188LRB102 04283 BMS 14301 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Credit Union Act is amended by
5changing Section 9 as follows:
6    (205 ILCS 305/9)  (from Ch. 17, par. 4410)
7    Sec. 9. Reports and examinations.
8    (1) Credit unions shall report to the Department on forms
9supplied by the Department, in accordance with a schedule
10published by the Department. A recapitulation of the annual
11reports shall be compiled and published annually by the
12Department, for the use of the General Assembly, credit
13unions, various educational institutions and other interested
14parties. A credit union which fails to file any report when due
15shall pay to the Department a late filing fee for each day the
16report is overdue as prescribed by rule. The Secretary may
17extend the time for filing a report.
18    (2) The Secretary may require special examinations of and
19special financial reports from a credit union or a credit
20union organization in which a credit union loans, invests, or
21delegates substantially all managerial duties and
22responsibilities when he determines that such examinations and
23reports are necessary to enable the Department to determine



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1the safety of a credit union's operation or its solvency. The
2cost to the Department of the aforesaid special examinations
3shall be borne by the credit union being examined as
4prescribed by rule.
5    (3) All credit unions incorporated under this Act shall be
6examined at least biennially by the Department or, at the
7discretion of the Secretary, by a public accountant registered
8by the Department of Financial and Professional Regulation;
9however, as an alternative to that examination, the Director
10may accept an examination made by the credit union's share
11insurer. The costs of an examination shall be paid by the
12credit union. The scope of all examinations by a public
13accountant shall be at least equal to the examinations made by
14the Department. The examiners shall have full access to, and
15may compel the production of, all the books, papers,
16securities and accounts of any credit union. A special
17examination shall be made by the Department or by a public
18accountant approved by the Department upon written request of
195 or more members, who guarantee the expense of the same. Any
20credit union refusing to submit to an examination when ordered
21by the Department shall be reported to the Attorney General,
22who shall institute proceedings to have its charter revoked.
23If the Secretary determines that the examination of a credit
24union is to be conducted by a public accountant registered by
25the Department of Financial and Professional Regulation and
26the examination is done in conjunction with the credit union's



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1external independent audit of financial statements, the
2requirements of this Section and subsection (3) of Section 34
3shall 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
8process and (ii) clarify examination items to be resolved. The
9rules, formal guidance, interpretive interpretative letters,
10or opinions furnished to credit unions by the Secretary may be
11relied upon by the credit 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; 98-784, eff. 7-24-14;
3revised 8-23-19.)