Full Text of HB4865 96th General Assembly
HB4865ham001 96TH GENERAL ASSEMBLY
|
Financial Institutions Committee
Filed: 2/16/2010
|
|
09600HB4865ham001 |
|
LRB096 16895 MJR 35853 a |
|
| 1 |
| AMENDMENT TO HOUSE BILL 4865
| 2 |
| AMENDMENT NO. ______. Amend House Bill 4865 by replacing | 3 |
| everything after the enacting clause with the following:
| 4 |
| "Section 5. The Illinois Credit Union Act is amended by | 5 |
| changing Sections 19 and 34 as follows:
| 6 |
| (205 ILCS 305/19) (from Ch. 17, par. 4420)
| 7 |
| Sec. 19. Meeting of members.
| 8 |
| (1) The annual meeting shall be held each
year during the | 9 |
| months of January, February or March or such other month
as may | 10 |
| be approved by the Department. The meeting shall be held at the
| 11 |
| time, place and in the manner set forth in the bylaws. Any | 12 |
| special
meetings of the members of the credit union shall be | 13 |
| held at the time, place
and in the manner set forth in the | 14 |
| bylaws. Unless otherwise set forth in
this Act, quorum | 15 |
| requirements for meetings of members shall be established
by a | 16 |
| credit union in its bylaws. Notice of all meetings must be |
|
|
|
09600HB4865ham001 |
- 2 - |
LRB096 16895 MJR 35853 a |
|
| 1 |
| given by
the Secretary of the credit union at least 7 days | 2 |
| before the date of such
meeting, either by handing a written or | 3 |
| printed notice to each
member of the credit union, by mailing | 4 |
| the notice to the member at his address
as listed on the books | 5 |
| and records of the credit union, or by posting a
notice of the | 6 |
| meeting in three conspicuous places, including the office
of | 7 |
| the credit union.
| 8 |
| (2) On all questions and at all elections, except election | 9 |
| of directors,
each member has one vote regardless of the number | 10 |
| of his shares. There
shall be no voting by proxy except on the | 11 |
| election of directors, proposals
for merger or voluntary | 12 |
| dissolution. All voting on the election of directors
shall be | 13 |
| by ballot, but when there is no contest, written ballots need | 14 |
| not
be cast. The record date to be used for the purpose of | 15 |
| determining which
members are entitled to notice of or to vote | 16 |
| at any meeting of members,
may be fixed in advance by the | 17 |
| directors on a date not more than 90 days
nor less than 10 days | 18 |
| prior to the date of the meeting. If no record date
is fixed by | 19 |
| the directors, the first day on which notice of the meeting
is | 20 |
| given, mailed or posted is the record date.
| 21 |
| (3) Regardless of the number of shares owned by a society, | 22 |
| association,
club, partnership, other credit union or | 23 |
| corporation, having membership
in the credit union, it shall be | 24 |
| entitled to only
one vote and it may be represented and have | 25 |
| its vote cast by its
designated agent acting on its
behalf | 26 |
| pursuant
to a resolution
adopted by the organization's board of |
|
|
|
09600HB4865ham001 |
- 3 - |
LRB096 16895 MJR 35853 a |
|
| 1 |
| directors or similar governing
authority;
provided that the | 2 |
| credit union shall obtain a certified copy of such resolution
| 3 |
| before such vote may be cast. | 4 |
| (4) A member may revoke a proxy by delivery to the credit | 5 |
| union of a written statement to that effect, by execution of a | 6 |
| subsequently dated proxy, or by attendance at a meeting and | 7 |
| voting in person.
| 8 |
| (Source: P.A. 89-603, eff. 8-2-96.)
| 9 |
| (205 ILCS 305/34) (from Ch. 17, par. 4435)
| 10 |
| Sec. 34. Duties of Supervisory Committee. | 11 |
| (1) The Supervisory Committee
shall make or cause to be | 12 |
| made an annual internal audit of the books and
affairs of the | 13 |
| credit union to determine that the credit union's accounting
| 14 |
| records and reports are prepared promptly and accurately | 15 |
| reflect operations
and results, that internal controls are | 16 |
| established and effectively
maintained to safeguard the assets | 17 |
| of the credit union, and that the
policies, procedures and | 18 |
| practices established by the Board of Directors
and management | 19 |
| of the credit union are being properly administered. The
| 20 |
| Supervisory Committee shall submit a report of that audit to | 21 |
| the Board
of Directors and a summary of that report to the | 22 |
| members at the next annual
meeting of the credit union. It | 23 |
| shall make or cause to be made such
supplementary audits as it | 24 |
| deems necessary or as are required by the
Director or by the | 25 |
| Board of Directors, and submit reports of these
supplementary |
|
|
|
09600HB4865ham001 |
- 4 - |
LRB096 16895 MJR 35853 a |
|
| 1 |
| audits to the Director or Board of Directors as applicable.
If | 2 |
| the Supervisory Committee has not engaged a public accountant | 3 |
| registered
by the Department of Professional Regulation to make | 4 |
| the internal audit,
the Supervisory Committee or other | 5 |
| officials of the credit union shall not
indicate or in any | 6 |
| manner imply that such audit has been performed by a
public | 7 |
| accountant or that the audit represents the independent opinion | 8 |
| of a
public accountant. The Committee must retain its tapes and | 9 |
| working papers
of each internal audit for inspection by the | 10 |
| Department. The report of this
audit must be made on a form | 11 |
| approved by the Director. A copy of the report
must be promptly | 12 |
| mailed to the Director.
| 13 |
| (2) The Supervisory Committee shall make or cause to be | 14 |
| made at least
once each year a reasonable percentage | 15 |
| verification of members' share and
loan accounts, consistent | 16 |
| with rules promulgated by the Director.
| 17 |
| (3) The Supervisory Committee of a credit union with assets | 18 |
| of
$5,000,000 or more shall engage a public accountant | 19 |
| registered by the
Department of Professional Regulation to | 20 |
| perform an annual external
independent audit of the credit | 21 |
| union's financial statements in accordance
with generally | 22 |
| accepted auditing standards. The Supervisory Committee of a
| 23 |
| credit union with assets of $3,000,000 or more, but less than | 24 |
| $5,000,000,
shall engage a public accountant registered by the | 25 |
| Department of
Professional Regulation to perform an external | 26 |
| independent audit of the
credit union's financial statements in |
|
|
|
09600HB4865ham001 |
- 5 - |
LRB096 16895 MJR 35853 a |
|
| 1 |
| accordance with generally accepted
auditing standards at least | 2 |
| once every 3 years. A copy of an external
independent audit | 3 |
| shall be completed and mailed to the Director no later than 90 | 4 |
| days after December 31 of each year; provided that a credit | 5 |
| union or group of credit unions may obtain an extension of the | 6 |
| due date upon application to and receipt of written approval | 7 |
| from the Director upon completion . If the
annual internal audit | 8 |
| of such a credit union is conducted by a public
accountant | 9 |
| registered by the Department of Professional Regulation and the
| 10 |
| annual internal audit is done in conjunction with the credit | 11 |
| union's annual
external audit, the requirements of subsection | 12 |
| (1) of this Section shall
be deemed met.
| 13 |
| (4) In determining the appropriate balance in the allowance | 14 |
| for loan losses account, a credit union may determine its | 15 |
| historical loss rate using a defined period of time of less | 16 |
| than 5 years, provided that: | 17 |
| (A) the methodology used to determine the defined | 18 |
| period of time is formally documented in the credit union's | 19 |
| policies and procedures and is appropriate to the credit | 20 |
| union's size, business strategy, and loan portfolio | 21 |
| characteristics and the economic environment of the areas | 22 |
| and employers served by the credit union; | 23 |
| (B) supporting documentation is maintained for the | 24 |
| technique used to develop the credit union loss rates, | 25 |
| including the period of time used to accumulate historical | 26 |
| loss data and the factors considered in establishing the |
|
|
|
09600HB4865ham001 |
- 6 - |
LRB096 16895 MJR 35853 a |
|
| 1 |
| time frames; and | 2 |
| (C) the external auditor conducting the credit union's | 3 |
| financial statement audit has analyzed the methodology | 4 |
| employed by the credit union and concludes that the | 5 |
| financial statements, including the allowance for loan | 6 |
| losses, are fairly stated in all material respects in | 7 |
| accordance with U.S. Generally Accepted Accounting | 8 |
| Principles, as promulgated by the Financial Accounting | 9 |
| Standards Board. | 10 |
| (5) A majority of the members of the Supervisory Committee
| 11 |
| shall constitute a quorum.
| 12 |
| (Source: P.A. 96-141, eff. 8-7-09.)
| 13 |
| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.".
|
|