Full Text of SB3217 97th General Assembly
SB3217enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 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)
| 7 | | Sec. 15. Membership defined.
| 8 | | (1) The membership of a credit union shall
be limited to | 9 | | and consist of the subscribers to the articles of incorporation
| 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
| 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.
| 4 | | (2) Any member may withdraw from a credit union at any time | 5 | | upon giving
notice of withdrawal as required by the bylaws.
| 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.
| 10 | | (4) A member who has caused a loss to the credit union,
| 11 | | failed
to maintain one or more shares at the credit union, or | 12 | | violated board policy
applicable to members may be expelled by
| 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
| 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
| 2 | | policy prior to or upon applying for membership.
| 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
| 13 | | from any obligation they owe to the credit union.
| 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
| 19 | | put to a vote of the membership.
| 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.
| 4 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 5 | | (205 ILCS 305/20) (from Ch. 17, par. 4421)
| 6 | | Sec. 20. Election or appointment of officials.
| 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
| 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
| 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
| 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.
| 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.
| 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.
| 24 | | (3) The board of directors may appoint, from among the
| 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.
| 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
| 8 | | to the board of directors at the next regular meeting for
| 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.
| 13 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 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.
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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