Full Text of HB1792 100th General Assembly
HB1792enr 100TH 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 2, 11, 19, 20, 34.1, 48, 53, 57, 59, and 64.7 | 6 | | as follows:
| 7 | | (205 ILCS 305/2) (from Ch. 17, par. 4403)
| 8 | | Sec. 2. Organization Procedure. | 9 | | (1) Any 9 or more persons of legal age,
the majority of | 10 | | whom shall be residents of the State of Illinois, who have
a | 11 | | common bond referred to in Section 1.1 may organize a credit | 12 | | union or
a central credit union by complying with this Section.
| 13 | | (2) The subscribers shall execute in duplicate Articles of | 14 | | Incorporation
and agree to the terms thereof, which Articles | 15 | | shall state:
| 16 | | (a) The name, which shall include the words "credit | 17 | | union" and which shall
not be the same as that of any other | 18 | | existing credit union in this state,
and the location where | 19 | | the proposed credit union is to have its principal
place of | 20 | | business;
| 21 | | (b) The common bond of the members of the credit union;
| 22 | | (c) The par value of the shares of the credit union, | 23 | | which must be at least $1 $5.00 ;
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| 1 | | (d) The names, addresses and Social Security numbers of | 2 | | the subscribers to
the Articles of Incorporation, and the | 3 | | number and the value of shares subscribed
to by each;
| 4 | | (e) That the credit union may exercise such incidental | 5 | | powers as are necessary
or requisite to enable it to carry | 6 | | on effectively the purposes for which
it is incorporated, | 7 | | and those powers which are inherent in the credit union
as | 8 | | a legal entity;
| 9 | | (f) That the existence of the credit union shall be | 10 | | perpetual.
| 11 | | (3) The subscribers shall prepare and adopt bylaws for the | 12 | | general government
of the credit union, consistent with this | 13 | | Act, and execute same in duplicate.
| 14 | | (4) The subscribers shall forward the articles of | 15 | | incorporation and the
bylaws to the Secretary in duplicate, | 16 | | along with the required charter fee.
If they conform to the | 17 | | law, and such rules and regulations as the Secretary and the | 18 | | Director
may prescribe, if the Secretary determines that a | 19 | | common bond exists, and
that it is economically advisable to | 20 | | organize the credit union, he or she shall
within 60 days issue | 21 | | a certificate of approval attached to the articles of | 22 | | incorporation
and return a copy of the bylaws
and the articles | 23 | | of incorporation to the applicants or their representative, | 24 | | which shall
be preserved in the permanent files of the credit | 25 | | union. The subscribers
shall file the certificate of approval, | 26 | | with the articles of incorporation
attached, in the office of |
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| 1 | | the recorder (or, if
there is no recorder, in the office of the | 2 | | county
clerk) of the county in which the
credit union is to | 3 | | locate its principal place of business. The
recorder or the | 4 | | county
clerk, as the case may be, shall accept
and record the | 5 | | documents if they are accompanied by the proper fee. When the | 6 | | documents
are so recorded, the credit union is incorporated | 7 | | under this Act.
| 8 | | (5) The subscribers for a credit union charter shall not | 9 | | transact any
business until the certificate of approval has | 10 | | been received.
| 11 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 12 | | (205 ILCS 305/11) (from Ch. 17, par. 4412)
| 13 | | Sec. 11. Board of credit union advisors. | 14 | | (1) There shall be a board of credit union advisors
who | 15 | | shall consult with, advise, and make recommendations
to the | 16 | | Governor and to the Secretary on matters pertaining to credit | 17 | | unions.
The board of credit union advisors may also advise the | 18 | | Governor and Secretary
upon appointments and employment of | 19 | | personnel in connection with the supervision
and regulation of | 20 | | credit unions.
| 21 | | (2) The board of credit union advisors shall consist of 7 | 22 | | persons with
credit union experience who shall be appointed by | 23 | | the Governor. Appointments
to the board shall be for terms of 3 | 24 | | years each, except that initial appointments
shall be: 3 | 25 | | members for 3 years each; 3 members for 2 years each and 1 |
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| 1 | | member
for 1 year.
| 2 | | (3) All members shall serve until their successors have | 3 | | been appointed
and qualified. In the event a vacancy occurs, | 4 | | the appointment to fill such
vacancy shall be made in the | 5 | | manner of original appointment, but only for
the unexpired | 6 | | term.
| 7 | | (4) The chairman of the board of credit union advisors | 8 | | shall be elected
annually by a majority of the board members at | 9 | | the first meeting of the board each
year.
| 10 | | (5) The initial meeting of the board shall be called by the | 11 | | Secretary and
thereafter regular meetings shall be held at such | 12 | | times and places as shall
be determined by the Governor, | 13 | | chairman, or Secretary, but at least once each
calendar year 6 | 14 | | months . Special meetings may be called either by the Governor, | 15 | | the Secretary, the Director,
the chairman, or by written notice | 16 | | sent by 2 or more members of the board.
A majority of the | 17 | | members of the board shall constitute a quorum.
| 18 | | (6) The Department shall reimburse the board members for | 19 | | their actual
and necessary travel and subsistence expenses.
| 20 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 21 | | (205 ILCS 305/19) (from Ch. 17, par. 4420)
| 22 | | Sec. 19. Meeting of members.
| 23 | | (1) The annual meeting shall be held each
year during the | 24 | | months of January, February or March or such other month
as may | 25 | | be approved by the Department. The meeting shall be held at the
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| 1 | | time, place and in the manner set forth in the bylaws. Any | 2 | | special
meetings of the members of the credit union shall be | 3 | | held at the time, place
and in the manner set forth in the | 4 | | bylaws. Unless otherwise set forth in
this Act, quorum | 5 | | requirements for meetings of members shall be established
by a | 6 | | credit union in its bylaws. Notice of all meetings must be | 7 | | given by
the secretary of the credit union at least 7 days | 8 | | before the date of such
meeting, either by handing a written or | 9 | | printed notice to each
member of the credit union, by mailing | 10 | | the notice to the member at his address
as listed on the books | 11 | | and records of the credit union, or by posting a
notice of the | 12 | | meeting in three conspicuous places, including the office
of | 13 | | the credit union.
| 14 | | (2) On all questions and at all elections, except election | 15 | | of directors,
each member has one vote regardless of the number | 16 | | of his shares. There
shall be no voting by proxy except on the | 17 | | election of directors, proposals
for merger or voluntary | 18 | | dissolution. Members may vote on questions and in elections by | 19 | | secure electronic record if approved by the board of directors. | 20 | | All voting on the election of directors
shall be by ballot, but | 21 | | when there is no contest, written or electronic ballots need | 22 | | not
be cast. The record date to be used for the purpose of | 23 | | determining which
members are entitled to notice of or to vote | 24 | | at any meeting of members,
may be fixed in advance by the | 25 | | directors on a date not more than 90 days
nor less than 10 days | 26 | | prior to the date of the meeting. If no record date
is fixed by |
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| 1 | | the directors, the first day on which notice of the meeting
is | 2 | | given, mailed or posted is the record date.
| 3 | | (3) Regardless of the number of shares owned by a society, | 4 | | association,
club, partnership, other credit union or | 5 | | corporation, having membership
in the credit union, it shall be | 6 | | entitled to only
one vote and it may be represented and have | 7 | | its vote cast by its
designated agent acting on its
behalf | 8 | | pursuant
to a resolution
adopted by the organization's board of | 9 | | directors or similar governing
authority;
provided that the | 10 | | credit union shall obtain a certified copy of such resolution
| 11 | | before such vote may be cast. | 12 | | (4) A member may revoke a proxy by delivery to the credit | 13 | | union of a written statement to that effect, by execution of a | 14 | | subsequently dated proxy, by execution of a secure electronic | 15 | | record, or by attendance at a meeting and voting in person.
| 16 | | (5) As used in this Section, "electronic" and "electronic | 17 | | record" have the meanings ascribed to those terms in the | 18 | | Electronic Commerce Security Act. As used in this Section, | 19 | | "secured electronic record" means an electronic record that | 20 | | meets the criteria set forth in Section 10-105 of the | 21 | | Electronic Commerce Security Act. | 22 | | (Source: P.A. 96-963, eff. 7-2-10; 97-133, eff. 1-1-12.)
| 23 | | (205 ILCS 305/20) (from Ch. 17, par. 4421)
| 24 | | Sec. 20. Election or appointment of officials.
| 25 | | (1) The credit union shall
be directed by a board of |
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| 1 | | directors consisting of no less than 7 in number,
to be elected | 2 | | at the annual meeting by and from the members. Directors shall
| 3 | | hold office until the next annual meeting, unless their
terms | 4 | | are staggered. Upon amendment of its bylaws, a credit union may | 5 | | divide
the directors into 2 or 3 classes with each class as | 6 | | nearly equal in number as
possible. The term of office of the | 7 | | directors of the first class shall expire
at the first annual | 8 | | meeting after their election, that of the second class
shall
| 9 | | expire at the second annual meeting after their election, and | 10 | | that of the third
class, if any, shall expire at the third | 11 | | annual meeting after their election.
At each annual meeting | 12 | | after the classification, the number of directors equal
to the | 13 | | number of directors whose terms expire at the time of the | 14 | | meeting shall
be elected to hold office until the second | 15 | | succeeding annual meeting if there
are 2 classes or until the | 16 | | third succeeding annual meeting if there are 3
classes. A | 17 | | director shall hold office for the term for which he
or she is | 18 | | elected and until his or her
successor
is elected and | 19 | | qualified. | 20 | | (1.5) Except as provided in subsection (1.10), in all | 21 | | elections for directors, every member
has the right to vote, in | 22 | | person , or by proxy , or by secure electronic record if approved | 23 | | by the board of directors , the number of shares owned
by him, | 24 | | or in the case of a member other than a natural person, the | 25 | | member's
one vote, for as many persons as there are directors | 26 | | to be elected, or to
cumulate such shares, and give one |
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| 1 | | candidate as many votes as the number
of directors multiplied | 2 | | by the number of his shares equals, or to distribute
them on
| 3 | | the same principle among as many candidates as he may desire | 4 | | and the directors
shall not be elected in any other manner. | 5 | | Shares held in a joint account
owned by more than one member | 6 | | may be voted by any one of the members, however,
the number of | 7 | | cumulative votes cast may not exceed a total equal to the | 8 | | number
of shares multiplied by the number of directors to be | 9 | | elected. A majority of
the shares entitled
to vote shall be | 10 | | represented either in person or by proxy for the election
of | 11 | | directors. Each director shall wholly take and subscribe to an | 12 | | oath
that he will diligently and honestly perform his duties in | 13 | | administering
the affairs of the credit union, that while he | 14 | | may delegate to another the
performance of those administrative | 15 | | duties he is not thereby relieved from
his responsibility for | 16 | | their performance, that he will not knowingly violate
or permit | 17 | | to be violated any law applicable to the credit union,
and that | 18 | | he is the owner of at least one share of the credit union.
| 19 | | (1.10) Upon amendment of a credit union's bylaws approved | 20 | | by the members, in all elections for directors, every member | 21 | | who is a natural person shall have the right to cast one vote, | 22 | | regardless of the number of his or her shares, in person , or by | 23 | | proxy , or by secure electronic record if approved by the board | 24 | | of directors , for as many persons as there are directors to be | 25 | | elected.
| 26 | | (1.15) If the board of directors has adopted a policy |
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| 1 | | addressing age eligibility standards on voting, holding | 2 | | office, or petitioning the board, then a credit union may | 3 | | require (i) that members be at least 18 years of age by the | 4 | | date of the meeting in order to vote at meetings of the | 5 | | members, sign nominating petitions, or sign petitions | 6 | | requesting special meetings, and (ii) that members be at least | 7 | | 18 years of age by the date of election or appointment in order | 8 | | to hold elective or appointive office. | 9 | | (2) The board of directors shall appoint from among the | 10 | | members of the
credit union, a supervisory committee of not | 11 | | less than 3 members at the
organization meeting and within 30 | 12 | | days following each annual meeting of
the members for such | 13 | | terms as the bylaws provide. Members of the supervisory | 14 | | committee may, but need not be, on the board of directors, but | 15 | | shall not
be officers of the credit union, members of the | 16 | | credit committee,
or the
credit manager if no credit committee | 17 | | has been appointed.
| 18 | | (3) The board of directors may appoint, from among the
| 19 | | members of the
credit union, a credit committee consisting of | 20 | | an odd number, not less than
3 for such terms as the bylaws | 21 | | provide. Members of the credit committee
may, but need not be, | 22 | | directors or officers of the credit union, but shall
not be | 23 | | members of the supervisory committee.
| 24 | | (4) The board of directors may appoint from among the | 25 | | members
of the
credit union a membership committee of one or | 26 | | more persons. If appointed,
the committee shall act
upon all |
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| 1 | | applications for membership and submit a report of its actions
| 2 | | to the board of directors at the next regular meeting for
| 3 | | review.
If no membership committee is appointed, credit union | 4 | | management shall act
upon all applications for membership and | 5 | | submit a report of its actions to the board of directors
at the | 6 | | next regular meeting for review.
| 7 | | (5) As used in this Section, "electronic" and "electronic | 8 | | record" have the meanings ascribed to those terms in the | 9 | | Electronic Commerce Security Act. As used in this Section, | 10 | | "secured electronic record" means an electronic record that | 11 | | meets the criteria set forth in Section 10-105 of the | 12 | | Electronic Commerce Security Act. | 13 | | (Source: P.A. 97-133, eff. 1-1-12; 97-855, eff. 7-27-12.)
| 14 | | (205 ILCS 305/34.1)
| 15 | | Sec. 34.1. Compliance review.
| 16 | | (a) As used in this Section:
| 17 | | "Affiliate" means an organization established to serve the | 18 | | needs of credit
unions, the business of which relates to the | 19 | | daily operations of credit unions.
| 20 | | "Compliance review committee" means:
| 21 | | (1) one or more persons appointed by the management, | 22 | | board of directors , or supervisory
committee of a credit | 23 | | union for the purposes set forth in subsection (b); or
| 24 | | (2) any other person to the extent the person acts in | 25 | | an investigatory
capacity at the direction of a compliance |
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| 1 | | review committee.
| 2 | | "Compliance review documents" means documents prepared in | 3 | | connection with a
review or evaluation conducted by or for a | 4 | | compliance review committee.
| 5 | | "Person " means an individual, a group of individuals, a | 6 | | board committee, a
partnership, a firm, an association, a | 7 | | corporation, or any other entity.
| 8 | | (b) This Section applies to compliance review committees | 9 | | whose functions are
to evaluate and seek to improve any of the | 10 | | following:
| 11 | | (1) loan policies or underwriting standards;
| 12 | | (2) asset quality;
| 13 | | (3) financial reporting to federal or State | 14 | | governmental or regulatory
agencies; or
| 15 | | (4) compliance with federal or State statutory or | 16 | | regulatory requirements.
| 17 | | (c) Except as provided in subsection (d), compliance review | 18 | | documents and
the deliberations of the compliance
review | 19 | | committee are privileged and confidential and are | 20 | | nondiscoverable
and nonadmissible.
| 21 | | (1) Compliance review documents are privileged and | 22 | | confidential and are
not subject to discovery or admissible | 23 | | in evidence in any civil action.
| 24 | | (2) Individuals serving on compliance review | 25 | | committees or acting under
the direction of a compliance | 26 | | review committee shall not be required to testify
in any |
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| 1 | | civil action about the contents of any compliance review | 2 | | document or
conclusions of any compliance review committee | 3 | | or about the actions taken by a
compliance review | 4 | | committee.
| 5 | | (3) An affiliate of a credit union, a credit union | 6 | | regulatory agency, and
the insurer of credit union share | 7 | | accounts shall have access to compliance
review documents, | 8 | | provided that (i) the documents shall remain confidential | 9 | | and
are not subject to discovery from such entity and (ii) | 10 | | delivery of compliance
review documents to an affiliate or | 11 | | pursuant to the requirements of a credit
union regulatory | 12 | | agency or an insurer of credit union share accounts shall | 13 | | not
constitute a waiver of the privilege granted in this | 14 | | Section.
| 15 | | (d) This Section does not apply to: (1) compliance review | 16 | | committees on
which individuals serving on or at the direction | 17 | | of the compliance review
committee have management | 18 | | responsibility for the operations, records,
employees,
or | 19 | | activities being examined or evaluated by the compliance review | 20 | | committee
and (2) any civil or administrative action initiated | 21 | | by a credit union
regulatory agency or an insurer of credit | 22 | | union share accounts.
| 23 | | (e) This Section shall not be construed to limit the | 24 | | discovery or
admissibility in any civil action of any documents | 25 | | other than compliance review
documents or to require the | 26 | | appointment of a compliance review committee.
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| 1 | | (Source: P.A. 90-665, eff. 7-30-98; revised 9-14-16.)
| 2 | | (205 ILCS 305/48) (from Ch. 17, par. 4449)
| 3 | | Sec. 48. Loan limit. Within any limitations set forth in a | 4 | | policy adopted by the bylaws of
the credit union, the board of | 5 | | directors , a credit union may place a limit upon the aggregate
| 6 | | amount to be loaned to or cosigned for by any one member | 7 | | provided that . Such loan limits
shall be subject to rules and | 8 | | regulations promulgated by the Secretary. Unless
the credit | 9 | | union's bylaws provide otherwise, no loan shall be made to any
| 10 | | member in an aggregate amount in excess of $200, or 10% of the | 11 | | credit union's
unimpaired capital
and surplus , whichever is | 12 | | greater . Such loan limits shall be subject to rules adopted by | 13 | | the Secretary.
| 14 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 15 | | (205 ILCS 305/53) (from Ch. 17, par. 4454)
| 16 | | Sec. 53. Loans to credit unions. A credit union may make | 17 | | loans to other
credit unions if so provided and within the | 18 | | limits set forth in a policy adopted by the board of directors | 19 | | its bylaws .
| 20 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 21 | | (205 ILCS 305/57) (from Ch. 17, par. 4458)
| 22 | | Sec. 57. Group purchasing and marketing . | 23 | | (a) A credit union may, consistent with rules
and |
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| 1 | | regulations promulgated by the Secretary, enter into | 2 | | cooperative marketing
arrangements to facilitate its members' | 3 | | voluntary purchase of such goods
and services as are in the | 4 | | interest of improving economic and social conditions
of the | 5 | | members.
| 6 | | (b) A credit union may create and use descriptive and brand | 7 | | references to promote and market its identity, services, and | 8 | | products to its members. | 9 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 10 | | (205 ILCS 305/59) (from Ch. 17, par. 4460)
| 11 | | Sec. 59. Investment of funds.
| 12 | | (a) Funds not used in loans to members may be
invested, | 13 | | pursuant to subsection (7) of Section 30 of this Act, and
| 14 | | subject to Departmental rules and
regulations:
| 15 | | (1) In securities, obligations or other instruments of | 16 | | or issued by or
fully guaranteed as to principal and | 17 | | interest by the United States of America
or any agency | 18 | | thereof or in any trust or trusts established for investing
| 19 | | directly or collectively in the same;
| 20 | | (2) In obligations of any state of the United States, | 21 | | the District of
Columbia, the Commonwealth of Puerto Rico, | 22 | | and the several
territories organized
by Congress, or any | 23 | | political subdivision thereof; however, a credit union
may
| 24 | | not invest more than 10% of its unimpaired capital and | 25 | | surplus in the
obligations of one issuer, exclusive of |
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| 1 | | general obligations of the issuer, and
investments in | 2 | | municipal securities must be limited to securities rated in | 3 | | one
of the 4
highest rating categories by a nationally | 4 | | recognized statistical rating
organization;
| 5 | | (3) In certificates of deposit or passbook type | 6 | | accounts issued by a state
or national bank, mutual savings | 7 | | bank or savings and loan association; provided
that such | 8 | | institutions have their accounts insured by the Federal | 9 | | Deposit
Insurance Corporation or the Federal Savings and | 10 | | Loan Insurance Corporation;
but provided, further, that a | 11 | | credit union's investment in an account in
any one | 12 | | institution may exceed the insured limit on accounts;
| 13 | | (4) In shares, classes of shares or share certificates | 14 | | of other credit
unions, including, but not limited to | 15 | | corporate credit unions; provided
that such credit unions | 16 | | have their members' accounts insured by the NCUA
or other | 17 | | approved insurers, and that if the members' accounts are so | 18 | | insured,
a credit union's investment may exceed the insured | 19 | | limit on accounts;
| 20 | | (5) In shares of a cooperative society organized under | 21 | | the laws of this
State or the laws of the United States in | 22 | | the total amount not exceeding
10% of the unimpaired | 23 | | capital and surplus of the credit union; provided
that such | 24 | | investment shall first be approved by the Department;
| 25 | | (6) In obligations of the State of Israel, or | 26 | | obligations fully guaranteed
by the State of Israel as to |
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| 1 | | payment of principal and interest;
| 2 | | (7) In shares, stocks or obligations of other financial | 3 | | institutions in
the total amount not exceeding 5% of the | 4 | | unimpaired capital and surplus
of the credit union;
| 5 | | (8) In federal funds and bankers' acceptances;
| 6 | | (9) In shares or stocks of Credit Union Service | 7 | | Organizations in the
total amount not exceeding the greater | 8 | | of 3% of the unimpaired
capital and surplus of the
credit | 9 | | union or the amount authorized for federal credit unions ; .
| 10 | | (10) In corporate bonds identified as investment grade | 11 | | by at least one nationally recognized statistical rating | 12 | | organization, provided that: | 13 | | (i) the board of directors has established a | 14 | | written policy that addresses corporate bond | 15 | | investment procedures and how the credit union will | 16 | | manage credit risk, interest rate risk, liquidity | 17 | | risk, and concentration risk; and | 18 | | (ii) the credit union has documented in its records | 19 | | that a credit analysis of a particular investment and | 20 | | the issuing entity was conducted by the credit union, a | 21 | | third party on behalf of the credit union qualified by | 22 | | education or experience to assess the risk | 23 | | characteristics of corporate bonds, or a nationally | 24 | | recognized statistical rating agency before purchasing | 25 | | the investment and the analysis is updated at least | 26 | | annually for as long as it holds the investment; and |
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| 1 | | (11) To aid in the credit union's management of its | 2 | | assets, liabilities, and liquidity in the purchase of an | 3 | | investment interest in a pool of loans, in whole or in part | 4 | | and without regard to the membership of the borrowers, from | 5 | | other depository institutions and financial type | 6 | | institutions, including mortgage banks, finance companies, | 7 | | insurance companies, and other loan sellers, subject to | 8 | | such safety and soundness standards, limitations, and | 9 | | qualifications as the Department may establish by rule or | 10 | | guidance from time to time. | 11 | | (b) As used in this Section, "political subdivision" | 12 | | includes, but is not
limited to, counties,
townships, cities, | 13 | | villages, incorporated towns, school districts, educational
| 14 | | service regions, special road districts, public water supply | 15 | | districts, fire
protection districts, drainage districts, | 16 | | levee districts, sewer districts,
housing authorities, park | 17 | | districts, and any
agency, corporation, or instrumentality of a | 18 | | state or its political
subdivisions, whether now or hereafter | 19 | | created and whether herein specifically
mentioned or not.
| 20 | | (c) A credit union investing to fund an employee benefit | 21 | | plan obligation is not subject to the investment limitations of | 22 | | this Act and this Section and may purchase an investment that | 23 | | would otherwise be impermissible if the investment is directly | 24 | | related to the credit union's obligation under the employee | 25 | | benefit plan and the credit union holds the investment only for | 26 | | so long as it has an actual or potential obligation under the |
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| 1 | | employee benefit plan.
| 2 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 3 | | (205 ILCS 305/64.7) | 4 | | Sec. 64.7. Network credit unions. | 5 | | (a) Two or more credit unions merging pursuant to Section | 6 | | 63 of this Act may elect to request a network credit union | 7 | | designation for the surviving credit union from the Secretary. | 8 | | The request shall be set forth in the plan of merger and | 9 | | certificate of merger executed by the credit unions and | 10 | | submitted to the Secretary pursuant to subsection (4) of | 11 | | Section 63. The Secretary's approval of a certificate of merger | 12 | | containing a network credit union designation request shall | 13 | | constitute approval of the use of the network designation as a | 14 | | brand or other identifier of the surviving credit union. If the | 15 | | surviving credit union desires to include the network | 16 | | designation in its legal name, make any other change to its | 17 | | legal name, or both, it shall proceed with an amendment to the | 18 | | articles of incorporation and bylaws of the surviving credit | 19 | | union pursuant to Section 4 of this Act. | 20 | | (b) A network credit union is a cooperative business | 21 | | structure comprised of 2 or more merging credit unions with a | 22 | | collective goal of efficiently serving their combined | 23 | | membership and gaining economies of scale through common | 24 | | vision, strategy and initiative. The merging credit unions | 25 | | shall be identified as divisional credit unions, branches, or |
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| 1 | | units of the network credit union or by other descriptive | 2 | | references that ensure the members understand they are dealing | 3 | | with one credit union rather than multiple credit unions. | 4 | | Descriptive and brand references may also be created and used | 5 | | to promote the identity, services, and products of the network | 6 | | credit union to its members. | 7 | | (c) Each divisional credit union may shall have an its own | 8 | | advisory board of directors and a chief management official to | 9 | | assist in maintaining and leveraging its respective local | 10 | | identity for the benefit of the surviving credit union. The | 11 | | divisional credit union advisory boards shall be appointed by | 12 | | the network credit union board of directors. Each divisional | 13 | | credit union's advisory board of directors may shall appoint a | 14 | | its divisional credit union chief management official and may | 15 | | also appoint one of its directors to serve on the network | 16 | | credit union's nominating committee. A divisional credit union | 17 | | may determine to identify its advisory board as a committee and | 18 | | its divisional chief management official with a title it deems | 19 | | reasonable and appropriate. | 20 | | (d) (c) The network credit union is the surviving legal | 21 | | entity in the merger and supervision, examination, audit, | 22 | | reporting, governance, and management shall be conducted or | 23 | | performed at the network credit union level. All share | 24 | | insurance, safety and soundness, and statutory and regulatory | 25 | | requirements and limitations shall be evaluated at the network | 26 | | credit union level.
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| 1 | | (Source: P.A. 99-614, eff. 7-22-16.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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INDEX
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Statutes amended in order of appearance
| | 3 | | 205 ILCS 305/2 | from Ch. 17, par. 4403 | | 4 | | 205 ILCS 305/11 | from Ch. 17, par. 4412 | | 5 | | 205 ILCS 305/19 | from Ch. 17, par. 4420 | | 6 | | 205 ILCS 305/20 | from Ch. 17, par. 4421 | | 7 | | 205 ILCS 305/34.1 | | | 8 | | 205 ILCS 305/48 | from Ch. 17, par. 4449 | | 9 | | 205 ILCS 305/53 | from Ch. 17, par. 4454 | | 10 | | 205 ILCS 305/57 | from Ch. 17, par. 4458 | | 11 | | 205 ILCS 305/59 | from Ch. 17, par. 4460 | | 12 | | 205 ILCS 305/64.7 | |
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