Full Text of HB5497 100th General Assembly
HB5497 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB5497 Introduced , by Rep. Lou Lang SYNOPSIS AS INTRODUCED: |
| 205 ILCS 305/10 | from Ch. 17, par. 4411 | 205 ILCS 305/34 | from Ch. 17, par. 4435 | 205 ILCS 305/59 | from Ch. 17, par. 4460 |
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Amends the Illinois Credit Union Act. Provides that a credit union may furnish the financial records of a member to an appropriate law enforcement authority upon written request from the law enforcement authority explaining a reasonable suspicion of an imminent threat to the personal security and safety of a member exists. Provides that a supervisory committee of a credit union with assets of $10,000,000 or more shall engage a certified public accountant or certified public accounting firm licensed by the Department of Financial and Professional Regulation to perform an annual external independent audit. Provides that a supervisory committee of a credit union with assets of $5,000,000 or more but less than $10,000,000 shall engage a certified public accountant or certified public accounting firm licensed by the Department to perform an annual external independent audit or an agreed-upon procedures report. Provides that the external independent audit report or agreed upon procedures report shall be delivered to the Secretary of Financial and Professional Regulation no later than 120 days after the end of the calendar or fiscal year. Provides that funds not used in loans to the credit union's members may be invested to aid in the credit union's management or in the purchase and assumption of assets held by other financial institutions. Makes other changes. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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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 10, 34, and 59 as follows:
| 6 | | (205 ILCS 305/10) (from Ch. 17, par. 4411)
| 7 | | Sec. 10. Credit union records; member financial records.
| 8 | | (1) A credit union shall establish and maintain books, | 9 | | records, accounting
systems and procedures which accurately | 10 | | reflect its operations and which
enable the Department to | 11 | | readily ascertain the true financial condition
of the credit | 12 | | union and whether it is complying with this Act.
| 13 | | (2) A photostatic or photographic reproduction of any | 14 | | credit union records
shall be admissible as evidence of | 15 | | transactions with the credit union.
| 16 | | (3)(a) For the purpose of this Section, the term "financial | 17 | | records"
means any original, any copy, or any summary of (1) a | 18 | | document granting
signature authority over an account, (2) a | 19 | | statement, ledger card or other
record on any account which | 20 | | shows each transaction in or with respect to
that account, (3) | 21 | | a check, draft or money order drawn on a financial
institution | 22 | | or other entity or issued and payable by or through a financial
| 23 | | institution or other entity, or (4) any other item containing |
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| 1 | | information
pertaining to any relationship established in the | 2 | | ordinary course of
business between a credit union and its | 3 | | member, including financial
statements or other financial | 4 | | information provided by the member.
| 5 | | (b) This Section does not prohibit:
| 6 | | (1) The preparation, examination, handling or | 7 | | maintenance of any
financial records by any officer, | 8 | | employee or agent of a credit union
having custody of such | 9 | | records, or the examination of such records by a
certified | 10 | | public accountant engaged by the credit union to perform an
| 11 | | independent audit.
| 12 | | (2) The examination of any financial records by or the | 13 | | furnishing of
financial records by a credit union to any | 14 | | officer, employee or agent of
the Department, the National | 15 | | Credit Union Administration, Federal Reserve
board or any | 16 | | insurer of share accounts for use solely in the exercise of
| 17 | | his duties as an officer, employee or agent.
| 18 | | (3) The publication of data furnished from financial | 19 | | records relating
to members where the data cannot be | 20 | | identified to any particular customer
of account.
| 21 | | (4) The making of reports or returns required under | 22 | | Chapter 61 of the
Internal Revenue Code of 1954.
| 23 | | (5) Furnishing information concerning the dishonor of | 24 | | any negotiable
instrument permitted to be disclosed under | 25 | | the Uniform Commercial
Code.
| 26 | | (6) The exchange in the regular course of business
of |
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| 1 | | (i) credit information
between a credit union and other | 2 | | credit unions or financial institutions
or commercial | 3 | | enterprises, directly or through a consumer reporting | 4 | | agency
or (ii) financial records or information derived | 5 | | from financial records
between a credit union and other | 6 | | credit unions or financial institutions or
commercial | 7 | | enterprises for
the purpose of conducting due diligence | 8 | | pursuant to a merger or a purchase or
sale of assets or | 9 | | liabilities of the credit union.
| 10 | | (7) The furnishing of information to the appropriate | 11 | | law enforcement
authorities where the credit union | 12 | | reasonably believes it has been the victim
of a crime.
| 13 | | (8) The furnishing of information pursuant to the | 14 | | Revised Uniform Unclaimed Property Act.
| 15 | | (9) The furnishing of information pursuant to the | 16 | | Illinois Income Tax
Act and the Illinois Estate and | 17 | | Generation-Skipping Transfer Tax Act.
| 18 | | (10) The furnishing of information pursuant to the | 19 | | federal "Currency
and Foreign Transactions Reporting Act", | 20 | | Title 31, United States Code,
Section 1051 et sequentia.
| 21 | | (11) The furnishing of information pursuant to any | 22 | | other statute which
by its terms or by regulations | 23 | | promulgated thereunder requires the disclosure
of | 24 | | financial records other than by subpoena, summons, warrant | 25 | | or court order.
| 26 | | (12) The furnishing of information in accordance with |
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| 1 | | the federal
Personal Responsibility and Work Opportunity | 2 | | Reconciliation Act of 1996.
Any credit union governed by | 3 | | this Act shall enter into an agreement for data
exchanges | 4 | | with a State agency provided the State agency
pays to the | 5 | | credit union a reasonable fee not to exceed its
actual cost | 6 | | incurred. A credit union
providing
information in | 7 | | accordance with this item shall not be liable to any | 8 | | account
holder or other person for any disclosure of | 9 | | information to a State agency, for
encumbering or | 10 | | surrendering any assets held by the credit union in | 11 | | response to
a lien
or order to withhold and deliver issued | 12 | | by a State agency, or for any other
action taken pursuant | 13 | | to this item, including individual or mechanical errors,
| 14 | | provided the action does not constitute gross negligence or | 15 | | willful misconduct.
A credit union shall have no obligation | 16 | | to hold, encumber, or surrender
assets until
it has been | 17 | | served with a subpoena, summons, warrant, court or | 18 | | administrative
order, lien, or levy.
| 19 | | (13) The furnishing of information to law enforcement | 20 | | authorities, the
Illinois Department on
Aging and its | 21 | | regional administrative and provider agencies, the | 22 | | Department of
Human Services Office
of Inspector General, | 23 | | or public guardians: (i) upon subpoena by the investigatory | 24 | | entity or the guardian, or (ii) if there is suspicion by | 25 | | the credit union that a
member who is an elderly person or | 26 | | person with a disability has been or may become the victim |
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| 1 | | of financial exploitation.
For the purposes of this
item | 2 | | (13), the term: (i) "elderly person" means a person who is | 3 | | 60 or more
years of age, (ii) "person with a disability" | 4 | | means a person who has or reasonably appears to the credit | 5 | | union to
have a physical or mental
disability that impairs | 6 | | his or her ability to seek or obtain protection from or
| 7 | | prevent financial
exploitation, and (iii) "financial | 8 | | exploitation" means tortious or illegal use
of the assets | 9 | | or resources of
an elderly person or person with a | 10 | | disability, and includes, without limitation,
| 11 | | misappropriation of the elderly or
disabled person's | 12 | | assets or resources by undue influence, breach of fiduciary
| 13 | | relationship, intimidation,
fraud, deception, extortion, | 14 | | or the use of assets or resources in any manner
contrary to | 15 | | law. A credit
union or person furnishing information | 16 | | pursuant to this item (13) shall be
entitled to the same | 17 | | rights and
protections as a person furnishing information | 18 | | under the Adult Protective Services Act and the Illinois
| 19 | | Domestic Violence Act of 1986.
| 20 | | (14) The disclosure of financial records or | 21 | | information as necessary
to
effect, administer, or enforce | 22 | | a transaction requested or authorized by the
member, or in | 23 | | connection with:
| 24 | | (A) servicing or processing a financial product or | 25 | | service requested
or
authorized by the member;
| 26 | | (B) maintaining or servicing a member's account |
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| 1 | | with the credit union;
or
| 2 | | (C) a proposed or actual securitization or | 3 | | secondary market sale
(including sales of servicing | 4 | | rights) related to a
transaction of a member.
| 5 | | Nothing in this item (14), however, authorizes the sale | 6 | | of the financial
records or information of a member without | 7 | | the consent of the member.
| 8 | | (15) The disclosure of financial records or | 9 | | information as necessary to
protect against or prevent | 10 | | actual or potential fraud, unauthorized
transactions, | 11 | | claims, or other liability.
| 12 | | (16)(a) The disclosure of financial records or | 13 | | information
related to a private label credit program | 14 | | between a financial
institution and a private label party | 15 | | in connection
with that private label credit program. Such | 16 | | information
is limited to outstanding balance, available | 17 | | credit, payment and
performance and account history, | 18 | | product references, purchase
information,
and information | 19 | | related to the identity of the
customer.
| 20 | | (b)(1) For purposes of this paragraph (16) of | 21 | | subsection
(b) of Section 10, a "private label credit | 22 | | program" means a credit
program involving a financial | 23 | | institution and a private label party
that is used by a | 24 | | customer of the financial institution and the
private label | 25 | | party primarily for payment for goods or services
sold, | 26 | | manufactured, or distributed by a private label party.
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| 1 | | (2) For purposes of this paragraph (16) of subsection | 2 | | (b)
of Section 10, a "private label party" means, with | 3 | | respect to a
private label credit program, any of the | 4 | | following: a
retailer, a merchant, a manufacturer, a trade | 5 | | group,
or any such person's affiliate, subsidiary, member,
| 6 | | agent, or service provider.
| 7 | | (17) The furnishing of the financial records of a | 8 | | member to an appropriate law enforcement authority, | 9 | | without prior notice to or consent of the member, upon | 10 | | written request of the law enforcement authority, when | 11 | | reasonable suspicion of an imminent threat to the personal | 12 | | security and safety of the member exists that necessitates | 13 | | an expedited release of the member's financial records, as | 14 | | determined by the law enforcement authority. The law | 15 | | enforcement authority shall include a brief explanation of | 16 | | the imminent threat to the member in its written request to | 17 | | the credit union.
| 18 | | (c) Except as otherwise provided by this Act, a credit | 19 | | union may not
disclose to any person, except to the member
or | 20 | | his duly authorized agent, any financial records relating to | 21 | | that member
of the credit union unless:
| 22 | | (1) the member has authorized disclosure to the person;
| 23 | | (2) the financial records are disclosed in response to | 24 | | a lawful
subpoena,
summons, warrant, citation to discover | 25 | | assets, or court order that meets the requirements of | 26 | | subparagraph
(d) of this Section; or
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| 1 | | (3) the credit union is attempting to collect an | 2 | | obligation owed to
the credit union and the credit union | 3 | | complies with the provisions of
Section 2I of the Consumer | 4 | | Fraud and Deceptive Business Practices Act.
| 5 | | (d) A credit union shall disclose financial records under | 6 | | subparagraph
(c)(2) of this Section pursuant to a lawful | 7 | | subpoena, summons, warrant, citation to discover assets, or
| 8 | | court order only after the credit union mails a copy of the | 9 | | subpoena, summons,
warrant, citation to discover assets, or | 10 | | court order to the person establishing the relationship with
| 11 | | the credit union, if living, and otherwise his personal | 12 | | representative,
if known, at his last known address by first | 13 | | class mail, postage prepaid
unless the credit union is | 14 | | specifically prohibited from notifying the person
by order of | 15 | | court or by applicable State or federal law. In the case
of a | 16 | | grand jury subpoena, a credit union shall not mail a copy of a | 17 | | subpoena
to any person pursuant to this subsection if the | 18 | | subpoena was issued by a grand
jury under the Statewide Grand | 19 | | Jury Act or notifying the
person would constitute a violation | 20 | | of the federal Right to Financial
Privacy Act of 1978.
| 21 | | (e)(1) Any officer or employee of a credit union who | 22 | | knowingly and
wilfully furnishes financial records in | 23 | | violation of this Section is guilty of
a business offense and | 24 | | upon conviction thereof shall be fined not more than
$1,000.
| 25 | | (2) Any person who knowingly and wilfully induces or | 26 | | attempts to induce
any officer or employee of a credit union to |
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| 1 | | disclose financial records
in violation of this Section is | 2 | | guilty of a business offense and upon
conviction thereof shall | 3 | | be fined not more than $1,000.
| 4 | | (f) A credit union shall be reimbursed for costs which are | 5 | | reasonably
necessary and which have been directly incurred in | 6 | | searching for,
reproducing or transporting books, papers, | 7 | | records or other data of a
member required or requested to be | 8 | | produced pursuant to a lawful subpoena,
summons, warrant, | 9 | | citation to discover assets, or court order. The Secretary and | 10 | | the Director may determine, by rule, the
rates and
conditions | 11 | | under which payment shall be made. Delivery of requested | 12 | | documents
may be delayed until final reimbursement of all costs | 13 | | is received.
| 14 | | (Source: P.A. 99-143, eff. 7-27-15; 100-22, eff. 1-1-18 .)
| 15 | | (205 ILCS 305/34) (from Ch. 17, par. 4435)
| 16 | | Sec. 34. Duties of supervisory committee. | 17 | | (1) The supervisory committee
shall make or cause to be | 18 | | made an annual internal audit of the books and
affairs of the | 19 | | credit union to determine that the credit union's accounting
| 20 | | records and reports are prepared promptly and accurately | 21 | | reflect operations
and results, that internal controls are | 22 | | established and effectively
maintained to safeguard the assets | 23 | | of the credit union, and that the
policies, procedures and | 24 | | practices established by the board of directors
and management | 25 | | of the credit union are being properly administered. The |
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| 1 | | supervisory committee
shall submit a report of that audit to | 2 | | the board of directors and a summary of that report to the | 3 | | members at the next annual
meeting of the credit union. It | 4 | | shall make or cause to be made such
supplementary audits as it | 5 | | deems necessary or as are required by the Secretary
or by the | 6 | | board of directors, and submit reports of these
supplementary | 7 | | audits to the Secretary or board of directors as applicable.
If | 8 | | the supervisory committee has not engaged a certified public | 9 | | accountant licensed by the Department or certified public | 10 | | accounting firm licensed registered
by the Department of | 11 | | Financial and Professional Regulation to make the internal | 12 | | audit,
the supervisory committee or other officials of the | 13 | | credit union shall not
indicate or in any manner imply that | 14 | | such audit has been performed by a certified
public accountant | 15 | | licensed by the Department or certified public accounting firm | 16 | | licensed by the Department or that the audit represents the | 17 | | independent opinion of a certified
public accountant licensed | 18 | | by the Department or certified public accounting firm licensed | 19 | | by the Department . The supervisory committee must retain its | 20 | | tapes and working papers
of each internal audit for inspection | 21 | | by the Department. The report of this
audit must be made on a | 22 | | form approved by the Secretary. A copy of the report
must be | 23 | | promptly delivered mailed to the Secretary.
| 24 | | (2) The supervisory committee shall make or cause to be | 25 | | made at least
once each year a reasonable percentage | 26 | | verification of members' share and
loan accounts, consistent |
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| 1 | | with rules promulgated by the Secretary.
| 2 | | (3) (A) The supervisory committee of a credit union with | 3 | | assets of $10,000,000
$5,000,000 or more shall engage a | 4 | | certified public accountant licensed by the Department or | 5 | | certified public accounting firm licensed registered by the
| 6 | | Department of Financial and Professional Regulation to perform | 7 | | an annual external
independent audit of the credit union's | 8 | | financial statements in accordance
with generally accepted | 9 | | auditing standards and the financial statements shall be issued | 10 | | in accordance with accounting principles generally accepted in | 11 | | the United States of America . | 12 | | (B) The supervisory committee of a
credit union with assets | 13 | | of $5,000,000 $3,000,000 or more, but less than $10,000,000 | 14 | | $5,000,000 ,
shall engage a certified public accountant | 15 | | licensed by the Department or certified public accounting firm | 16 | | licensed registered by the Department of Financial and
| 17 | | Professional Regulation to perform on an annual basis: (i) an | 18 | | agreed-upon procedures engagement under attestation standards | 19 | | established by the American Institute of Certified Public | 20 | | Accountants to minimally satisfy the supervisory committee | 21 | | internal audit standards set forth in subsection (1); or (ii) | 22 | | an external independent audit of the credit union's financial | 23 | | statements pursuant to the standards set forth in paragraph (A) | 24 | | of subsection (3) an external independent audit of the
credit | 25 | | union's financial statements in accordance with generally | 26 | | accepted
auditing standards at least once every 3 years. A copy |
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| 1 | | of an external
independent audit shall be completed and mailed | 2 | | to the Secretary no later than 90 days after December 31 of | 3 | | each year; provided that a credit union or group of credit | 4 | | unions may obtain an extension of the due date upon application | 5 | | to and receipt of written approval from the Secretary. If the
| 6 | | annual internal audit of such a credit union is conducted by a | 7 | | public
accountant registered by the Department of Financial and | 8 | | Professional Regulation and the
annual internal audit is done | 9 | | in conjunction with the credit union's annual
external audit, | 10 | | the requirements of subsection (1) of this Section shall
be | 11 | | deemed met .
| 12 | | (C) The external independent audit report or agreed upon | 13 | | procedures report shall be completed and a copy thereof | 14 | | delivered to the Secretary no later than 120 days after the end | 15 | | of the calendar or fiscal year under audit or fiscal period for | 16 | | which the agreed upon procedures are performed. A credit union | 17 | | or group of credit unions may obtain an extension of the due | 18 | | date upon application to and receipt of written approval from | 19 | | the Secretary. | 20 | | (D) If the credit union engages a certified public | 21 | | accountant licensed by the Department or certified public | 22 | | accounting firm licensed by the Department to perform an annual | 23 | | external independent audit of the credit union's financial | 24 | | statements pursuant to the standards in paragraph (A) of | 25 | | subsection (3) or an annual agreed upon procedures engagement | 26 | | pursuant to the standards in paragraph (B) of subsection (3), |
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| 1 | | then the annual internal audit requirements of subsection (1) | 2 | | shall be deemed satisfied and met in all respects. | 3 | | (4) In determining the appropriate balance in the allowance | 4 | | for loan losses account, a credit union may determine its | 5 | | historical loss rate using a defined period of time of less | 6 | | than 5 years, provided that: | 7 | | (A) the methodology used to determine the defined | 8 | | period of time is formally documented in the credit union's | 9 | | policies and procedures and is appropriate to the credit | 10 | | union's size, business strategy, and loan portfolio | 11 | | characteristics and the economic environment of the areas | 12 | | and employers served by the credit union; | 13 | | (B) supporting documentation is maintained for the | 14 | | technique used to develop the credit union loss rates, | 15 | | including the period of time used to accumulate historical | 16 | | loss data and the factors considered in establishing the | 17 | | time frames; and | 18 | | (C) the external auditor conducting the credit union's | 19 | | financial statement audit has analyzed the methodology | 20 | | employed by the credit union and concludes that the | 21 | | financial statements, including the allowance for loan | 22 | | losses, are fairly stated in all material respects in | 23 | | accordance with U.S. Generally Accepted Accounting | 24 | | Principles, as promulgated by the Financial Accounting | 25 | | Standards Board. | 26 | | (5) A majority of the members of the supervisory committee
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| 1 | | shall constitute a quorum.
| 2 | | (6) On an annual basis commencing January 1, 2015, the | 3 | | members of the supervisory committee shall receive training | 4 | | related to their statutory duties. Supervisory committee | 5 | | members may receive the training through internal credit union | 6 | | training, external training offered by the credit union's | 7 | | retained auditors, trade associations, vendors, regulatory | 8 | | agencies, or any other sources or on-the-job experience, or a | 9 | | combination of those activities. The training may be received | 10 | | through any medium, including, but not limited to, conferences, | 11 | | workshops, audit closing meetings, seminars, teleconferences, | 12 | | webinars, and other Internet-based delivery channels. | 13 | | (Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14.)
| 14 | | (205 ILCS 305/59) (from Ch. 17, par. 4460)
| 15 | | Sec. 59. Investment of funds.
| 16 | | (a) Funds not used in loans to members may be
invested, | 17 | | pursuant to subsection (7) of Section 30 of this Act, and
| 18 | | subject to Departmental rules and
regulations:
| 19 | | (1) In securities, obligations or other instruments of | 20 | | or issued by or
fully guaranteed as to principal and | 21 | | interest by the United States of America
or any agency | 22 | | thereof or in any trust or trusts established for investing
| 23 | | directly or collectively in the same;
| 24 | | (2) In obligations of any state of the United States, | 25 | | the District of
Columbia, the Commonwealth of Puerto Rico, |
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| 1 | | and the several
territories organized
by Congress, or any | 2 | | political subdivision thereof; however, a credit union
may
| 3 | | not invest more than 10% of its unimpaired capital and | 4 | | surplus in the
obligations of one issuer, exclusive of | 5 | | general obligations of the issuer, and
investments in | 6 | | municipal securities must be limited to securities rated in | 7 | | one
of the 4
highest rating categories by a nationally | 8 | | recognized statistical rating
organization;
| 9 | | (3) In certificates of deposit or passbook type | 10 | | accounts issued by a state
or national bank, mutual savings | 11 | | bank or savings and loan association; provided
that such | 12 | | institutions have their accounts insured by the Federal | 13 | | Deposit
Insurance Corporation or the Federal Savings and | 14 | | Loan Insurance Corporation;
but provided, further, that a | 15 | | credit union's investment in an account in
any one | 16 | | institution may exceed the insured limit on accounts;
| 17 | | (4) In shares, classes of shares or share certificates | 18 | | of other credit
unions, including, but not limited to | 19 | | corporate credit unions; provided
that such credit unions | 20 | | have their members' accounts insured by the NCUA
or other | 21 | | approved insurers, and that if the members' accounts are so | 22 | | insured,
a credit union's investment may exceed the insured | 23 | | limit on accounts;
| 24 | | (5) In shares of a cooperative society organized under | 25 | | the laws of this
State or the laws of the United States in | 26 | | the total amount not exceeding
10% of the unimpaired |
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| 1 | | capital and surplus of the credit union; provided
that such | 2 | | investment shall first be approved by the Department;
| 3 | | (6) In obligations of the State of Israel, or | 4 | | obligations fully guaranteed
by the State of Israel as to | 5 | | payment of principal and interest;
| 6 | | (7) In shares, stocks or obligations of other financial | 7 | | institutions in
the total amount not exceeding 5% of the | 8 | | unimpaired capital and surplus
of the credit union;
| 9 | | (8) In federal funds and bankers' acceptances;
| 10 | | (9) In shares or stocks of Credit Union Service | 11 | | Organizations in the
total amount not exceeding the greater | 12 | | of 3% of the unimpaired
capital and surplus of the
credit | 13 | | union or the amount authorized for federal credit unions;
| 14 | | (10) In corporate bonds identified as investment grade | 15 | | by at least one nationally recognized statistical rating | 16 | | organization, provided that: | 17 | | (i) the board of directors has established a | 18 | | written policy that addresses corporate bond | 19 | | investment procedures and how the credit union will | 20 | | manage credit risk, interest rate risk, liquidity | 21 | | risk, and concentration risk; and | 22 | | (ii) the credit union has documented in its records | 23 | | that a credit analysis of a particular investment and | 24 | | the issuing entity was conducted by the credit union, a | 25 | | third party on behalf of the credit union qualified by | 26 | | education or experience to assess the risk |
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| 1 | | characteristics of corporate bonds, or a nationally | 2 | | recognized statistical rating agency before purchasing | 3 | | the investment and the analysis is updated at least | 4 | | annually for as long as it holds the investment; and | 5 | | (11) To aid in the credit union's management of its | 6 | | assets, liabilities, and liquidity in the purchase of an | 7 | | investment interest in a pool of loans, in whole or in part | 8 | | and without regard to the membership of the borrowers, from | 9 | | other depository institutions and financial type | 10 | | institutions, including mortgage banks, finance companies, | 11 | | insurance companies, and other loan sellers, subject to | 12 | | such safety and soundness standards, limitations, and | 13 | | qualifications as the Department may establish by rule or | 14 | | guidance from time to time ; . | 15 | | (12) To aid in the credit union's management of its | 16 | | assets, liabilities, and liquidity by receiving funds from | 17 | | another financial institution as evidenced by certificates | 18 | | of deposit, share certificates, or other classes of shares | 19 | | issued by the credit union to the financial institution; | 20 | | and | 21 | | (13) In the purchase and assumption of assets held by | 22 | | other financial institutions, with approval of the | 23 | | Secretary and subject to any safety and soundness | 24 | | standards, limitations, and qualifications as the | 25 | | Department may establish by rule or guidance from time to | 26 | | time. |
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| 1 | | (b) As used in this Section : , | 2 | | " Political political subdivision" includes, but is not
| 3 | | limited to, counties,
townships, cities, villages, | 4 | | incorporated towns, school districts, educational
service | 5 | | regions, special road districts, public water supply | 6 | | districts, fire
protection districts, drainage districts, | 7 | | levee districts, sewer districts,
housing authorities, park | 8 | | districts, and any
agency, corporation, or instrumentality of a | 9 | | state or its political
subdivisions, whether now or hereafter | 10 | | created and whether herein specifically
mentioned or not.
| 11 | | "Financial institution" includes any bank, savings bank, | 12 | | savings and loan association, or credit union established under | 13 | | the laws of the United States, this State, or any other state. | 14 | | (c) A credit union investing to fund an employee benefit | 15 | | plan obligation is not subject to the investment limitations of | 16 | | this Act and this Section and may purchase an investment that | 17 | | would otherwise be impermissible if the investment is directly | 18 | | related to the credit union's obligation under the employee | 19 | | benefit plan and the credit union holds the investment only for | 20 | | so long as it has an actual or potential obligation under the | 21 | | employee benefit plan.
| 22 | | (Source: P.A. 100-361, eff. 8-25-17.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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