Full Text of SB3021 93rd General Assembly
SB3021 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB3021
Introduced 2/6/2004, by Kimberly A. Lightford SYNOPSIS AS INTRODUCED: |
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205 ILCS 305/13 |
from Ch. 17, par. 4414 |
205 ILCS 305/16.1 new |
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205 ILCS 305/23 |
from Ch. 17, par. 4424 |
205 ILCS 305/26 |
from Ch. 17, par. 4427 |
205 ILCS 305/30 |
from Ch. 17, par. 4431 |
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Amends the Illinois Credit Union Act. Expands a credit union's general powers to sell to persons eligible for membership, negotiable checks, money orders, and similar money transfer instruments, cash checks and money orders, and receive electronic fund transfers for a fee. Increases access to credit union service to the economically disadvantaged. Provides that individuals earning a stated amount or whose annual household income falls at or below a stated amount may be admitted to membership in a credit union. Requires credit unions desiring to serve the economically disadvantaged to have a written business plan documenting the fact that the area or persons meet certain criteria, identifying the credit and depository needs of the area or persons, identifying the services to be delivered, and describing the manner in which the services will be delivered. Makes changes concerning the reimbursement, titles, qualifications, suspension or removal of a credit union's board of directors and executive officers. Effective immediately.
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A BILL FOR
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SB3021 |
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LRB093 20607 SAS 46437 b |
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| AN ACT concerning financial regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Credit Union Act is amended by | 5 |
| changing Sections 13, 23, 26, and 30 and by adding Section 16.1 | 6 |
| as follows:
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| (205 ILCS 305/13) (from Ch. 17, par. 4414)
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| Sec. 13. General powers. A credit union may:
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| (1) Make contracts; sue and be sued; and adopt and use | 10 |
| a common seal
and alter the same;
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| (2) Acquire, lease (either as lessee or lessor), hold, | 12 |
| pledge, mortgage,
sell and dispose of real property, either | 13 |
| in whole or in part, or any interest
therein, as may be | 14 |
| necessary or incidental to its present or future
operations | 15 |
| and needs, subject to such limitations as may be imposed
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| thereon in rules and regulations promulgated by the | 17 |
| Director; acquire, lease
(either as lessee or lessor), | 18 |
| hold, pledge, mortgage, sell and dispose of
personal | 19 |
| property, either in whole or in part, or any interest | 20 |
| therein,
as may be necessary or incidental to its present | 21 |
| or future operations
and needs;
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| (3) At the discretion of the Board of Directors, | 23 |
| require the payment of
an entrance fee or annual membership | 24 |
| fee, or both, of any person admitted to
membership;
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| (4) Receive savings from its members in the form of | 26 |
| shares of various
classes, or special purpose share | 27 |
| accounts; act as custodian of its members'
accounts; issue | 28 |
| shares in trust as provided in this Act;
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| (5) Lend its funds to its members and otherwise as | 30 |
| hereinafter provided;
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| (6) Borrow from any source in accordance with policy | 32 |
| established by the
Board of Directors to a maximum of 50% |
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| of capital, surplus and reserves;
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| (7) Discount and sell any obligations owed to the | 3 |
| credit union;
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| (8) Honor requests for withdrawals or transfers of all | 5 |
| or any part of
member share accounts, and any classes | 6 |
| thereof, in any manner approved by
the credit union Board | 7 |
| of Directors;
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| (9) Sell all or substantially all of its assets or | 9 |
| purchase all or
substantially all of the assets of another | 10 |
| credit union, subject to the
prior approval of the | 11 |
| Director;
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| (10) Invest surplus funds as provided in this Act;
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| (11) Make deposits in banks, savings banks, savings and | 14 |
| loan associations,
trust companies; and invest in shares, | 15 |
| classes of shares or share certificates
of other credit | 16 |
| unions;
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| (12) Assess charges and fees to members in accordance | 18 |
| with board
resolution;
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| (13) Hold membership in and pay dues to associations | 20 |
| and organizations;
to invest in shares, stocks or | 21 |
| obligations of any credit union organization;
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| (14) Declare dividends and pay interest refunds to | 23 |
| borrowers as provided
in this Act;
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| (15) Collect, receive and disburse monies in | 25 |
| connection with providing
negotiable checks, money orders | 26 |
| and other money-type instruments, and for
such other | 27 |
| purposes as may provide benefit or convenience to its | 28 |
| members,
and charge a reasonable fee for such services;
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| (16) Act as fiscal agent for and receive deposits from | 30 |
| the federal
government, this state or any agency or | 31 |
| political subdivision thereof;
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| (17) Receive savings from nonmembers in the form of | 33 |
| shares or share
accounts in the case of credit unions | 34 |
| serving predominantly low-income
members. The term "low | 35 |
| income
members" shall mean those members who make less than | 36 |
| 80% of the average for
all wage earners as established by |
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| the Bureau of Labor Statistics or those
members whose | 2 |
| annual household income falls at or below 80% of the
median | 3 |
| household income for the nation as established by the | 4 |
| Census Bureau. The
term "predominantly" is defined as a | 5 |
| simple majority;
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| (18) To Establish, maintain, and operate terminals as | 7 |
| authorized by
the Electronic Fund Transfer Act; and
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| (19) Subject to Article XLIV of the Illinois Insurance | 9 |
| Code, to act
as the agent for any fire, life, or other | 10 |
| insurance company authorized by the
State of Illinois, by | 11 |
| soliciting and selling insurance and collecting premiums
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| on policies issued by such company; and may receive for | 13 |
| services so rendered
such fees or commissions as may be | 14 |
| agreed upon between the said credit union
and the insurance | 15 |
| company for which it may act as agent; provided, however,
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| that no such credit union shall in any case assume or | 17 |
| guarantee the payment of
any premium on insurance policies | 18 |
| issued through its agency by its principal;
and provided | 19 |
| further, that the credit union shall not guarantee the | 20 |
| truth of
any statement made by an assured in filing his | 21 |
| application for insurance ; and
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| (20) Sell to any person eligible for membership, | 23 |
| negotiable checks (including travelers checks), money | 24 |
| orders, and similar money transfer instruments (including | 25 |
| electronic fund transfers), cash checks and money orders, | 26 |
| and receive electronic fund transfers for any person | 27 |
| eligible for membership for a fee, on a limited basis for a | 28 |
| period not to exceed 6 months, as a promotional activity to | 29 |
| encourage the eligible person to join the credit union, in | 30 |
| accordance with policy established by the Board of | 31 |
| Directors.
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| (Source: P.A. 92-608, eff. 7-1-02; revised 1-20-03.)
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| (205 ILCS 305/16.1 new) | 34 |
| Sec. 16.1. Service to the economically disadvantaged.
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| (a) Persons who reside, work, worship, or attend school in |
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| investment areas as defined in the Community Development | 2 |
| Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702) | 3 |
| and identified by the U.S. Department of the Treasury may be | 4 |
| admitted to membership in credit unions able to serve the areas | 5 |
| by maintaining a facility in the area, providing a mobile | 6 |
| branch, or providing electronic access to credit union | 7 |
| services, subject to such rules as the Director may promulgate. | 8 |
| (b) Individuals, wherever located, who make less than 80% | 9 |
| of the average for all wage earners as established by the | 10 |
| Bureau of Labor Statistics, or individuals whose annual | 11 |
| household income falls at or below 80% of median household | 12 |
| income for the nation as established by the Census Bureau, may | 13 |
| be admitted to membership in a credit union, subject to such | 14 |
| rules as the Director may promulgate.
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| (c) Credit unions desiring to serve the economically | 16 |
| disadvantaged in accordance with this Section shall do so | 17 |
| pursuant to a written business plan that shall document the | 18 |
| fact that the area or persons meet the criteria of this | 19 |
| Section, identify the credit and depository needs of the area | 20 |
| or persons, identify the services to be delivered, and describe | 21 |
| the manner in which the services will be delivered.
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| (205 ILCS 305/23) (from Ch. 17, par. 4424)
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| Sec. 23. Compensation of officials.
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| (1) No director or committee member may
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| compensation for his service as such.
"Compensation" as used in | 26 |
| this subsection (1) refers to remuneration expense
to the | 27 |
| credit union for services provided by a director or committee | 28 |
| member in
his or her capacity as director or committee member. | 29 |
| "Compensation" as used in
this subsection (1) does not include | 30 |
| the expense of providing
reasonable life, health,
accident, and | 31 |
| similar insurance protection benefits for a director or
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| committee member.
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| (2) Directors, committee members and
employees, while on | 34 |
| official business of the credit union, may be reimbursed
for | 35 |
| reasonable and necessary expenses. Alternatively, the credit |
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| union may make direct payment to a third party for such | 2 |
| business expenses. Reasonable and necessary expenses may | 3 |
| include the payment of travel costs for the foregoing officials | 4 |
| and one guest per official. All payment of costs shall be made | 5 |
| in accordance with written policies and procedures established | 6 |
| by the Board of Directors.
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| (3) The Board of Directors may establish
compensation for | 8 |
| officers of the credit union.
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| (Source: P.A. 92-608, eff. 7-1-02.)
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| (205 ILCS 305/26) (from Ch. 17, par. 4427)
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| Sec. 26. Executive Officers. (1) At their first meeting, | 12 |
| the Board of
Directors shall elect from among their own number | 13 |
| a Chairman of the Board
and one or more Vice Chairmen, a | 14 |
| Secretary and a Treasurer. The Directors
shall appoint a chief | 15 |
| management official who shall have such title as the Directors | 16 |
| shall determine.
The Directors
President and
may also appoint | 17 |
| one or more Vice Presidents.
The President shall be the chief | 18 |
| operating officer of the credit union.
The chief management | 19 |
| official
President and Vice President may, but need not, be | 20 |
| Directors. Any two
or more offices may be held by the same | 21 |
| person, except the Chairman of the Board
President may
not also | 22 |
| hold the office of Vice Chairman
President or Secretary.
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| (2) The officers shall serve for a term of one year, or | 24 |
| until their successors
are chosen and have been duly qualified.
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| (3) The duties of the officers shall be prescribed in the | 26 |
| bylaws. Compensation
of officers shall be such as may be | 27 |
| established by the Directors from time to time.
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| (Source: P.A. 81-329.)
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| (205 ILCS 305/30) (from Ch. 17, par. 4431)
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| Sec. 30. Duties of directors. It shall be the duty of the | 31 |
| directors to:
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| (1) Review actions on applications
for membership. A | 33 |
| record of the Membership Committee's approval or
denial of | 34 |
| membership or management's approval or denial of |
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| membership if no
Membership Committee has been appointed | 2 |
| shall be available to the Board of
Directors for | 3 |
| inspection. A person denied membership by the Membership
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| Committee or credit union management may appeal the denial | 5 |
| to the Board;
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| (2) Provide adequate fidelity bond coverage for | 7 |
| officers,
employees, directors and committee members, and | 8 |
| for losses caused by
persons outside of the credit union, | 9 |
| subject to rules and regulations
promulgated by the | 10 |
| Director;
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| (3) Determine from time to time the interest rates, not | 12 |
| in excess of that
allowed under this Act, which shall be | 13 |
| charged on loans to members and to
authorize interest | 14 |
| refunds, if any, to members from income earned and received
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| in proportion to the interest paid by them on such classes | 16 |
| of loans and
under such conditions as the Board prescribes. | 17 |
| The Directors may establish
different interest rates to be | 18 |
| charged on different classes of loans;
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| (4) Within any limitations set forth in the credit | 20 |
| union's bylaws, fix
the maximum amount which may be loaned | 21 |
| with and without security to a member;
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| (5) Declare dividends on various classes of shares in | 23 |
| the manner and form
as provided in the bylaws;
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| (6) Limit the number of shares which may be owned by a | 25 |
| member;
such limitations to apply alike to all members;
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| (7) Have charge of the investment of funds, except that | 27 |
| the Board of
Directors may designate an Investment | 28 |
| Committee or any qualified individual
or entity to have | 29 |
| charge of making investments under policies established
by | 30 |
| the Board of Directors;
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| (8) Authorize the employment of or contracting with | 32 |
| such persons or
organizations as may be necessary to carry | 33 |
| on the
operations of the credit union, provided that prior | 34 |
| approval is received from
the
Department before delegating | 35 |
| substantially all managerial duties and
responsibilities | 36 |
| to a credit union organization, and fix
the compensation, |
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| if any, of the officers and provide for compensation for
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| other employees within
policies established by the Board of | 3 |
| Directors;
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| (9) Authorize the conveyance of property;
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| (10) Borrow or lend money consistent with the | 6 |
| provisions of this Act;
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| (11) Designate a depository or depositories for the | 8 |
| funds of the credit
union and supervise the investment of | 9 |
| funds;
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| (12) Suspend or remove, or both, for cause, any or all | 11 |
| officers or any
or all members of the Membership, Credit, | 12 |
| Supervisory or other committees
whenever, in the judgment | 13 |
| of the Board of Directors, the best interests of the credit | 14 |
| union will be served thereby; provided that members of the | 15 |
| Supervisory Committee may not be suspended or removed | 16 |
| except for failure to perform their duties; and provided | 17 |
| that removal of any officer shall be without prejudice to | 18 |
| the contract rights, if any, of the person so removed
for | 19 |
| failure to perform their duties ;
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| (13) Appoint any special committees deemed necessary; | 21 |
| and ;
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| (14) Perform such other duties as the members may | 23 |
| direct, and perform
or authorize any action not | 24 |
| inconsistent with this Act and not specifically
reserved by | 25 |
| the bylaws to the members.
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| (Source: P.A. 92-608, eff. 7-1-02; revised 1-20-03.)
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| Section 99. Effective date. This Act takes effect upon | 28 |
| becoming law.
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