Full Text of HB4887 101st General Assembly
HB4887ham001 101ST GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 3/13/2020
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| 1 | | AMENDMENT TO HOUSE BILL 4887
| 2 | | AMENDMENT NO. ______. Amend House Bill 4887 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 12, 23, 51, 57, 59, and 64.7 and by adding | 6 | | Section 20.5 as follows: | 7 | | (205 ILCS 305/12) (from Ch. 17, par. 4413) | 8 | | Sec. 12. Regulatory fees.
| 9 | | (1) For the fiscal year beginning July 1, 2007, a credit | 10 | | union regulated by the Department shall pay a regulatory
fee to | 11 | | the Department based upon its total assets as shown by its | 12 | | Year-end
Call Report at the following rates or at a lesser rate | 13 | | established by the Secretary in a manner proportionately | 14 | | consistent with the following rates and sufficient to fund the | 15 | | actual administrative and operational expenses of the | 16 | | Department's Credit Union Section pursuant to subsection (4) of |
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| 1 | | this Section:
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2 | | TOTAL ASSETS | REGULATORY FEE |
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3 | | $25,000 or less ................ | $100 |
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4 | | Over $25,000 and not over
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5 | | $100,000 ....................... | $100 plus $4 per |
| 6 | | $1,000 of assets in excess of |
| 7 | | $25,000 |
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8 | | Over $100,000 and not over
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9 | | $200,000 ....................... | $400 plus $3 per |
| 10 | | $1,000 of assets in excess of |
| 11 | | $100,000 |
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12 | | Over $200,000 and not over
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13 | | $500,000 ....................... | $700 plus $2 per |
| 14 | | $1,000 of assets in excess of |
| 15 | | $200,000 |
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16 | | Over $500,000 and not over
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17 | | $1,000,000 ..................... | $1,300 plus $1.40 |
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18 | | | per $1,000 of assets in excess |
| 19 | | of $500,000 |
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20 | | Over $1,000,000 and not
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21 | | over $5,000,000 ................. | $2,000 plus $0.50 |
| 22 | | per $1,000 of assets in |
| 23 | | excess of $1,000,000 |
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24 | | Over $5,000,000 and not
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25 | | over $30,000,000 ............... | $4,540 plus $0.397 |
| 26 | | per $1,000 of assets |
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| 1 | | in excess of $5,000,000 |
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2 | | Over $30,000,000 and not over
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3 | | $100,000,000 .................... | $14,471 plus $0.34 |
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4 | | | per $1,000 of assets |
| 5 | | in excess of $30,000,000 |
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6 | | Over $100,000,000 and not
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7 | | over $500,000,000 .............. | $38,306 plus $0.17 |
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8 | | | per $1,000 of assets |
| 9 | | in excess of $100,000,000 |
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10 | | Over $500,000,000 .............. | $106,406 plus $0.056 |
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11 | | | per $1,000 of assets |
| 12 | | in excess of $500,000,000 |
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13 | | (2) The Secretary shall review the regulatory fee schedule | 14 | | in subsection
(1) and the projected earnings on those fees on | 15 | | an annual
basis
and adjust the fee schedule no more than 5% | 16 | | annually
if necessary to defray the estimated administrative | 17 | | and operational expenses of
the Credit Union Section of the | 18 | | Department as defined in subsection (5). However, the fee | 19 | | schedule shall not be increased if the amount remaining in the | 20 | | Credit Union Fund at the end of any fiscal year is greater than | 21 | | 25% of the total actual and operational expenses incurred by | 22 | | the State in administering and enforcing the Illinois Credit | 23 | | Union Act and other laws, rules, and regulations as may apply | 24 | | to the administration and enforcement of the foregoing laws, | 25 | | rules, and regulations as amended from time to time for the | 26 | | preceding fiscal year. The regulatory fee for the next fiscal |
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| 1 | | year shall be calculated by the Secretary based on the credit | 2 | | union's total assets as of December 31 of the preceding | 3 | | calendar year. The Secretary shall provide credit
unions with | 4 | | written notice of any adjustment made in the regulatory fee
| 5 | | schedule.
| 6 | | (3) A credit union shall
pay to the Department a regulatory | 7 | | fee
in quarterly installments equal to one-fourth of the | 8 | | regulatory fee due in accordance with the regulatory fee | 9 | | schedule in
subsection (1), on the basis of assets as
of the | 10 | | Year-end Call Report of the preceding calendar year. The total | 11 | | annual regulatory fee shall
not be less than
$100 or more than | 12 | | $141,875, provided that the
regulatory fee cap of $141,875
| 13 | | shall be adjusted to incorporate the same percentage increase | 14 | | as the Secretary
makes in the regulatory fee schedule from time | 15 | | to time under subsection (2).
No regulatory
fee
shall be | 16 | | collected
from a credit union until it
has been in operation | 17 | | for one year. The regulatory fee shall be billed to credit | 18 | | unions on a quarterly basis and it shall be payable by credit | 19 | | unions on the due date for the Call Report for the subject | 20 | | quarter.
| 21 | | (4) The aggregate of all fees collected by the Department | 22 | | under this
Act
shall be paid promptly after they are received,
| 23 | | accompanied by a detailed
statement thereof, into the State | 24 | | Treasury and shall be set apart in the
Credit Union Fund, a | 25 | | special fund hereby created in the State treasury.
The amount | 26 | | from time to time deposited in the Credit Union Fund and shall
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| 1 | | be used to offset the ordinary administrative and operational | 2 | | expenses of
the Credit Union Section of the Department under
| 3 | | this Act. All earnings received from investments of funds in | 4 | | the Credit
Union Fund shall be deposited into the Credit Union | 5 | | Fund and may be used for
the same purposes as fees deposited | 6 | | into that fund.
Moneys deposited in the Credit Union Fund may | 7 | | be transferred to the Professions Indirect Cost Fund, as | 8 | | authorized under Section 2105-300 of the Department of | 9 | | Professional Regulation Law of the Civil Administrative Code of | 10 | | Illinois.
| 11 | | Notwithstanding provisions in the State Finance Act, as now | 12 | | or hereafter amended, or any other law to the contrary, the | 13 | | Governor may, during any fiscal year through January 10, 2011, | 14 | | from time to time direct the State Treasurer and Comptroller to | 15 | | transfer a specified sum not exceeding 10% of the revenues to | 16 | | be deposited into the Credit Union Fund during that fiscal year | 17 | | from that Fund to the General Revenue Fund in order to help | 18 | | defray the State's operating costs for the fiscal year. | 19 | | Notwithstanding provisions in the State Finance Act, as now or | 20 | | hereafter amended, or any other law to the contrary, the total | 21 | | sum transferred from the Credit Union Fund to the General | 22 | | Revenue Fund pursuant to this provision shall not exceed during | 23 | | any fiscal year 10% of the revenues to be deposited into the | 24 | | Credit Union Fund during that fiscal year. The State Treasurer | 25 | | and Comptroller shall transfer the amounts designated under | 26 | | this Section as soon as may be practicable after receiving the |
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| 1 | | direction to transfer from the Governor.
| 2 | | (5) The administrative and operational expenses for any | 3 | | fiscal
year shall mean the ordinary
and contingent expenses for | 4 | | that year incidental to making the examinations
provided for | 5 | | by, and for administering, this Act, including all salaries
and | 6 | | other compensation paid for personal services rendered for the | 7 | | State by
officers or employees of the State to enforce this | 8 | | Act; all expenditures
for telephone and telegraph charges, | 9 | | postage and postal charges, office
supplies and services, | 10 | | furniture and equipment, office space and
maintenance thereof, | 11 | | travel expenses and other necessary expenses; all to
the extent | 12 | | that such expenditures are directly incidental to such
| 13 | | examination or administration.
| 14 | | (6) When the balance in the Credit Union Fund at the end of | 15 | | a fiscal year exceeds 25% of the
total
administrative and | 16 | | operational
expenses incurred by the State in administering and | 17 | | enforcing the Illinois Credit Union Act and other laws, rules, | 18 | | and regulations as may apply to the administration and | 19 | | enforcement of the foregoing laws, rules, and regulations as | 20 | | amended from time to time for that fiscal year, such excess | 21 | | shall be credited to
credit unions and applied against their | 22 | | regulatory fees for
the subsequent fiscal year. The amount | 23 | | credited to each credit union shall be in the
same proportion | 24 | | as the regulatory fee paid by such credit union for the fiscal
| 25 | | year in which the excess is produced bears to the aggregate | 26 | | amount of all
fees collected by the Department
under this Act |
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| 1 | | for the same fiscal year.
| 2 | | (6.1) Notwithstanding any provision in subsection (6) of | 3 | | this Section to the contrary, there shall be no issuance of a | 4 | | regulatory fee credit for fiscal years ending June 30, 2020 and | 5 | | June 30, 2021. Notwithstanding any provision in subsection (2) | 6 | | of this Section to the contrary, there shall be no adjustment | 7 | | in the regulatory fee schedule in subsection (1) of this | 8 | | Section for fiscal years ending June 30, 2020 and June 30, | 9 | | 2021. This subsection (6.1) is inoperative on and after June | 10 | | 30, 2021. | 11 | | (7) (Blank).
| 12 | | (8) Nothing in this Act shall prohibit the General Assembly | 13 | | from
appropriating funds to the Department from the General | 14 | | Revenue Fund for the
purpose of administering this Act.
| 15 | | (9) For purposes of this Section, "fiscal year" means a | 16 | | period beginning on July 1 of any calendar year and ending on | 17 | | June 30 of the next calendar year. | 18 | | (Source: P.A. 100-201, eff. 8-18-17.)
| 19 | | (205 ILCS 305/20.5 new) | 20 | | Sec. 20.5. Appointment of associate directors. | 21 | | (a) The board of directors of a credit union may, in its | 22 | | discretion, appoint one or more associate directors to serve in | 23 | | an advisory capacity. The board shall prescribe the duties of | 24 | | an associate director and the manner in which associate | 25 | | directors are appointed and removed. The board shall not |
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| 1 | | delegate to associate directors any of the duties or | 2 | | responsibilities prescribed by this Act or other applicable law | 3 | | to be performed by directors duly elected by their members. An | 4 | | associate director shall not be deemed or considered to be a | 5 | | director for any purpose under this Act. | 6 | | (b) Prior to appointing an associate director, the board | 7 | | shall confirm that the person meets all of the requirements to | 8 | | serve as a director, including, without limitation, a working | 9 | | familiarity with the financial and accounting practices of the | 10 | | credit union as set forth in subsection (c) of Section 30. | 11 | | (c) An associate director may participate in meetings of | 12 | | the board but may not vote or otherwise act as a director. With | 13 | | respect to any issue that comes before the board for | 14 | | deliberation, the board may request that all associate | 15 | | directors excuse themselves from the meeting of the board and | 16 | | the associate directors shall immediately comply with the | 17 | | request. | 18 | | (d) The board shall require each associate director to sign | 19 | | a confidentiality and nondisclosure agreement to ensure that | 20 | | information concerning the credit union remains confidential.
| 21 | | (205 ILCS 305/23) (from Ch. 17, par. 4424)
| 22 | | Sec. 23. Compensation of officials.
| 23 | | (1) Directors and committee members may
receive reasonable | 24 | | compensation for their service as such, the amount of which | 25 | | shall be set by the board of directors , in accordance with |
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| 1 | | written policies and procedures established by the board of | 2 | | directors. If the Department determines the payment of director | 3 | | or committee member compensation, or both, creates a safety and | 4 | | soundness issue for a credit union, the Department shall | 5 | | utilize the standards set forth in its Regulatory Examination | 6 | | Consistency and Due Process Rule, 38 Ill. Adm. Code 190.25, and | 7 | | supplemental guidelines to address and resolve the issue. An | 8 | | enforcement action taken pursuant to the Rule and guidelines | 9 | | and specified by this Act shall be used to reduce or suspend | 10 | | the compensation paid to the directors and committee members . | 11 | | The Department shall, by rule, establish maximum rates of | 12 | | reasonable compensation that are generally applicable to | 13 | | credit unions considering factors the Department may establish | 14 | | from time to time, including, but not limited to, total assets, | 15 | | nonprofit cooperative structure, and the best interests of | 16 | | members.
"Compensation" as used in this subsection (1) refers | 17 | | to remuneration expense
to the credit union for services | 18 | | provided by a director or committee member in
his or her | 19 | | capacity as director or committee member. The remuneration | 20 | | expense is in the form of monetary payments and shall be | 21 | | disclosed on an annual basis to the membership in the financial | 22 | | statement that is part of the annual membership meeting | 23 | | materials. The disclosure shall contain: (i) the amount paid to | 24 | | each director and (ii) the amount paid to the directors as a | 25 | | group. "Compensation" does not include any of the expenses | 26 | | described in subsections (2) and (3). |
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| 1 | | (2) The credit union may incur the expense of providing
| 2 | | reasonable life, health,
accident, and similar insurance | 3 | | protection benefits for directors and committee members.
| 4 | | (3) Directors, committee members and
employees, while on | 5 | | official business of the credit union, may be reimbursed
for | 6 | | reasonable and necessary expenses. Alternatively, the credit | 7 | | union may make direct payment to a third party for such | 8 | | business expenses. Reasonable and necessary expenses may | 9 | | include the payment of travel costs for the foregoing officials | 10 | | and one guest per official. All payment of costs shall be made | 11 | | in accordance with written policies and procedures established | 12 | | by the board of directors.
| 13 | | (4) The board of directors may establish
compensation for | 14 | | officers of the credit union.
| 15 | | (Source: P.A. 101-567, eff. 8-23-19.)
| 16 | | (205 ILCS 305/51) (from Ch. 17, par. 4452)
| 17 | | Sec. 51. Other loan programs.
| 18 | | (1) Subject to such rules and regulations
as the Secretary | 19 | | may promulgate, a credit union may participate in loans
to | 20 | | credit union members jointly with other credit unions, | 21 | | corporations, or
financial institutions. An originating credit | 22 | | union may originate
loans only to its own members. A | 23 | | participating credit union that is
not the originating lender | 24 | | may participate in loans made to its own members or
to members | 25 | | of another participating credit union.
"Originating lender" |
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| 1 | | means the participating credit union with which the member
| 2 | | contracts. A master participation agreement must be properly | 3 | | executed, and the
agreement must include provisions for | 4 | | identifying, either through documents
incorporated by | 5 | | reference or directly in the agreement, the participation loan
| 6 | | or loans prior to their sale.
| 7 | | (2) Any credit union with assets of $500,000 or more may | 8 | | loan to its members
under scholarship programs which are
| 9 | | subject to a federal or state law providing 100% repayment | 10 | | guarantee.
| 11 | | (3) A credit union may purchase the conditional sales
| 12 | | contracts, notes
and similar instruments which evidence an | 13 | | indebtedness of its members. In the management of its assets, | 14 | | liabilities, and liquidity, a credit union may purchase the | 15 | | conditional sales contracts, notes, and other similar | 16 | | instruments that evidence the consumer indebtedness of the | 17 | | members of another credit union. "Consumer indebtedness" means | 18 | | indebtedness incurred for personal, family, or household | 19 | | purposes.
| 20 | | (4) With approval of the board of directors, a credit union | 21 | | may make loans,
either on its own or jointly with other credit | 22 | | unions, corporations or
financial
institutions, to credit | 23 | | union organizations; provided, that the aggregate
amount of all | 24 | | such loans outstanding shall not at any time exceed the greater
| 25 | | of 6% 3% of the paid-in and unimpaired capital and surplus of | 26 | | the credit
union or the amount authorized for federal credit |
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| 1 | | unions.
| 2 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 3 | | (205 ILCS 305/57) (from Ch. 17, par. 4458)
| 4 | | Sec. 57. Group purchasing and marketing. | 5 | | (a) A credit union may, consistent with rules
and | 6 | | regulations promulgated by the Secretary, enter into | 7 | | cooperative marketing
arrangements to facilitate its members' | 8 | | voluntary purchase of such goods
and services as are in the | 9 | | interest of improving economic and social conditions
of the | 10 | | members.
| 11 | | (b) A credit union may create and use descriptive and brand | 12 | | references to promote and market its identity, services, and | 13 | | products to its members. In the case of a merger pursuant to | 14 | | Section 63, the surviving credit union may identify the merging | 15 | | credit union as a division, branch, unit, or other descriptive | 16 | | reference that ensures the members understand they are dealing | 17 | | with one credit union rather than multiple credit unions as of | 18 | | the effective date of the merger. | 19 | | (Source: P.A. 100-361, eff. 8-25-17.)
| 20 | | (205 ILCS 305/59) (from Ch. 17, par. 4460)
| 21 | | Sec. 59. Investment of funds.
| 22 | | (a) Funds not used in loans to members may be
invested, | 23 | | pursuant to subsection (7) of Section 30 of this Act, and
| 24 | | subject to Departmental rules and
regulations:
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| 1 | | (1) In securities, obligations or other instruments of | 2 | | or issued by or
fully guaranteed as to principal and | 3 | | interest by the United States of America
or any agency | 4 | | thereof or in any trust or trusts established for investing
| 5 | | directly or collectively in the same;
| 6 | | (2) In obligations of any state of the United States, | 7 | | the District of
Columbia, the Commonwealth of Puerto Rico, | 8 | | and the several
territories organized
by Congress, or any | 9 | | political subdivision thereof; however, a credit union
may
| 10 | | not invest more than 10% of its unimpaired capital and | 11 | | surplus in the
obligations of one issuer, exclusive of | 12 | | general obligations of the issuer, and
investments in | 13 | | municipal securities must be limited to securities rated in | 14 | | one
of the 4
highest rating categories by a nationally | 15 | | recognized statistical rating
organization;
| 16 | | (3) In certificates of deposit or passbook type | 17 | | accounts issued by a state
or national bank, mutual savings | 18 | | bank or savings and loan association; provided
that such | 19 | | institutions have their accounts insured by the Federal | 20 | | Deposit
Insurance Corporation or the Federal Savings and | 21 | | Loan Insurance Corporation;
but provided, further, that a | 22 | | credit union's investment in an account in
any one | 23 | | institution may exceed the insured limit on accounts;
| 24 | | (4) In shares, classes of shares or share certificates | 25 | | of other credit
unions, including, but not limited to | 26 | | corporate credit unions; provided
that such credit unions |
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| 1 | | have their members' accounts insured by the NCUA
or other | 2 | | approved insurers, and that if the members' accounts are so | 3 | | insured,
a credit union's investment may exceed the insured | 4 | | limit on accounts;
| 5 | | (5) In shares of a cooperative society organized under | 6 | | the laws of this
State or the laws of the United States in | 7 | | the total amount not exceeding
10% of the unimpaired | 8 | | capital and surplus of the credit union; provided
that such | 9 | | investment shall first be approved by the Department;
| 10 | | (6) In obligations of the State of Israel, or | 11 | | obligations fully guaranteed
by the State of Israel as to | 12 | | payment of principal and interest;
| 13 | | (7) In shares, stocks or obligations of other financial | 14 | | institutions in
the total amount not exceeding 5% of the | 15 | | unimpaired capital and surplus
of the credit union;
| 16 | | (8) In federal funds and bankers' acceptances;
| 17 | | (9) In shares or stocks of Credit Union Service | 18 | | Organizations in the
total amount not exceeding the greater | 19 | | of 6% 3% of the unimpaired
capital and surplus of the
| 20 | | credit union or the amount authorized for federal credit | 21 | | unions;
| 22 | | (10) In corporate bonds identified as investment grade | 23 | | by at least one nationally recognized statistical rating | 24 | | organization, provided that: | 25 | | (i) the board of directors has established a | 26 | | written policy that addresses corporate bond |
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| 1 | | investment procedures and how the credit union will | 2 | | manage credit risk, interest rate risk, liquidity | 3 | | risk, and concentration risk; and | 4 | | (ii) the credit union has documented in its records | 5 | | that a credit analysis of a particular investment and | 6 | | the issuing entity was conducted by the credit union, a | 7 | | third party on behalf of the credit union qualified by | 8 | | education or experience to assess the risk | 9 | | characteristics of corporate bonds, or a nationally | 10 | | recognized statistical rating agency before purchasing | 11 | | the investment and the analysis is updated at least | 12 | | annually for as long as it holds the investment; | 13 | | (11) To aid in the credit union's management of its | 14 | | assets, liabilities, and liquidity in the purchase of an | 15 | | investment interest in a pool of loans, in whole or in part | 16 | | and without regard to the membership of the borrowers, from | 17 | | other depository institutions and financial type | 18 | | institutions, including mortgage banks, finance companies, | 19 | | insurance companies, and other loan sellers, subject to | 20 | | such safety and soundness standards, limitations, and | 21 | | qualifications as the Department may establish by rule or | 22 | | guidance from time to time; | 23 | | (12) To aid in the credit union's management of its | 24 | | assets, liabilities, and liquidity by receiving funds from | 25 | | another financial institution as evidenced by certificates | 26 | | of deposit, share certificates, or other classes of shares |
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| 1 | | issued by the credit union to the financial institution; | 2 | | and | 3 | | (13) In the purchase and assumption of assets held by | 4 | | other financial institutions, with approval of the | 5 | | Secretary and subject to any safety and soundness | 6 | | standards, limitations, and qualifications as the | 7 | | Department may establish by rule or guidance from time to | 8 | | time. | 9 | | (b) As used in this Section: | 10 | | "Political subdivision" includes, but is not
limited to, | 11 | | counties,
townships, cities, villages, incorporated towns, | 12 | | school districts, educational
service regions, special road | 13 | | districts, public water supply districts, fire
protection | 14 | | districts, drainage districts, levee districts, sewer | 15 | | districts,
housing authorities, park districts, and any
| 16 | | agency, corporation, or instrumentality of a state or its | 17 | | political
subdivisions, whether now or hereafter created and | 18 | | whether herein specifically
mentioned or not.
| 19 | | "Financial institution" includes any bank, savings bank, | 20 | | savings and loan association, or credit union established under | 21 | | the laws of the United States, this State, or any other state. | 22 | | (c) A credit union investing to fund an employee benefit | 23 | | plan obligation is not subject to the investment limitations of | 24 | | this Act and this Section and may purchase an investment that | 25 | | would otherwise be impermissible if the investment is directly | 26 | | related to the credit union's obligation under the employee |
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| 1 | | benefit plan and the credit union holds the investment only for | 2 | | so long as it has an actual or potential obligation under the | 3 | | employee benefit plan.
| 4 | | (d) If a credit union acquires loans from another financial | 5 | | institution or financial-type institution pursuant to this | 6 | | Section, the credit union shall be authorized to provide loan | 7 | | servicing and collection services in connection with those | 8 | | loans. | 9 | | (Source: P.A. 100-361, eff. 8-25-17; 100-778, eff. 8-10-18; | 10 | | 101-567, eff. 8-23-19.)
| 11 | | (205 ILCS 305/64.7) | 12 | | Sec. 64.7. Network credit unions. | 13 | | (a) Two or more credit unions merging pursuant to Section | 14 | | 63 of this Act may elect to request a network credit union | 15 | | designation for the surviving credit union from the Secretary. | 16 | | The request shall be set forth in the plan of merger and | 17 | | certificate of merger executed by the credit unions and | 18 | | submitted to the Secretary pursuant to subsection (4) of | 19 | | Section 63. The Secretary's approval of a certificate of merger | 20 | | containing a network credit union designation request shall | 21 | | constitute approval of the use of the network designation as a | 22 | | brand or other identifier of the surviving credit union. If the | 23 | | surviving credit union desires to include the network | 24 | | designation in its legal name, make any other change to its | 25 | | legal name, or both, it shall proceed with an amendment to the |
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| 1 | | articles of incorporation and bylaws of the surviving credit | 2 | | union pursuant to Section 4 of this Act. | 3 | | (b) A network credit union is a cooperative business | 4 | | structure comprised of 2 or more merging credit unions with a | 5 | | collective goal of efficiently serving their combined | 6 | | membership and gaining economies of scale through common | 7 | | vision, strategy and initiative. The merging credit unions | 8 | | shall be identified as divisional credit unions, branches, or | 9 | | units of the network credit union or by other descriptive | 10 | | references that ensure the members understand they are dealing | 11 | | with one credit union rather than multiple credit unions. | 12 | | Descriptive and brand references may also be created and used | 13 | | to promote the identity, services, and products of the network | 14 | | credit union to its members. | 15 | | (c) Each divisional credit union may have an advisory board | 16 | | of directors and a chief management official to assist in | 17 | | maintaining and leveraging its respective local identity for | 18 | | the benefit of the surviving credit union. The divisional | 19 | | credit union advisory boards shall be appointed by the network | 20 | | credit union board of directors. Each divisional credit union's | 21 | | advisory board of directors may appoint a divisional credit | 22 | | union chief management official and may also appoint one of its | 23 | | directors to serve on the network credit union's nominating | 24 | | committee. A divisional credit union may determine to identify | 25 | | its advisory board as a committee and its divisional chief | 26 | | management official with a title it deems reasonable and |
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| 1 | | appropriate. The network credit union board of directors shall | 2 | | require each advisory board member to sign a confidentiality | 3 | | and nondisclosure agreement to ensure that information | 4 | | concerning the credit union remains confidential. | 5 | | (d) The network credit union is the surviving legal entity | 6 | | in the merger and supervision, examination, audit, reporting, | 7 | | governance, and management shall be conducted or performed at | 8 | | the network credit union level. All share insurance, safety and | 9 | | soundness, and statutory and regulatory requirements and | 10 | | limitations shall be evaluated at the network credit union | 11 | | level.
| 12 | | (Source: P.A. 99-614, eff. 7-22-16; 100-361, eff. 8-25-17.) | 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.".
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