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90_SB1472
205 ILCS 305/25.1 new
205 ILCS 305/34.1 new
Amends the Illinois Credit Union Act. Provides that
credit unions are not liable for acts done or omitted in good
faith in conformity with the rules of the Director of
Financial Institutions. Provides that documents prepared for
compliance review on behalf of a credit union are
confidential and not subject to discovery. Effective
immediately.
LRB9010987JSgc
LRB9010987JSgc
1 AN ACT to amend the Illinois Credit Union Act by adding
2 Sections 25.1 and 34.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Credit Union Act is amended by
6 adding Sections 25.1 and 34.1 as follows:
7 (205 ILCS 305/25.1 new)
8 Sec. 25.1. Reliance on Director. No credit union or
9 other person shall be liable under this Act for any act done
10 or omitted in good faith in conformity with any rule, written
11 interpretation, or written opinion issued by the Director of
12 Financial Institutions, notwithstanding that after the act or
13 omission has occurred, the rule, opinion, or interpretation
14 upon which reliance is placed is amended, rescinded, or
15 determined by judicial or other authority to be invalid for
16 any reason.
17 (205 ILCS 305/34.1 new)
18 Sec. 34.1. Compliance Review.
19 (a) As used in this Section:
20 "Affiliate" means an organization established to serve
21 the needs of credit unions, the business of which relates to
22 the daily operations of credit unions.
23 "Compliance review committee" means:
24 (1) one or more persons appointed by the board of
25 directors or supervisory committee of a credit union for
26 the purposes set forth in subsection (b); or
27 (2) any other person to the extent the person acts
28 in an investigatory capacity at the direction of a
29 compliance review committee, however, a compliance review
30 committee shall not include a person who has management
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1 responsibility for the operations, records, employees, or
2 activities being examined or evaluated by the compliance
3 review committee.
4 "Compliance review documents" means documents prepared in
5 connection with a review or evaluation conducted by or for a
6 compliance review committee.
7 "Person" means an individual, a group of individuals, a
8 board committee, a partnership, a firm, an association, a
9 corporation, or any other entity.
10 (b) This Section applies to compliance review committees
11 whose functions are to evaluate and seek to improve any of
12 the following:
13 (1) loan policies or underwriting standards;
14 (2) assets quality;
15 (3) financial reporting to federal or State
16 governmental or regulatory agencies; or
17 (4) compliance with federal or State statutory or
18 regulatory requirements.
19 (c) Compliance review documents and the deliberations of
20 the compliance review committee are privileged and
21 confidential and are non-discoverable and non-admissible,
22 except as set forth in this subsection:
23 (1) Compliance review documents are confidential
24 and are not subject to discovery or admissible in
25 evidence in any civil action of any kind in any court or
26 before any tribunal.
27 (2) Individuals serving on compliance review
28 committees or acting under the direction of a compliance
29 review committee shall not be required to testify in any
30 civil action about the contents of any compliance review
31 document or conclusions of any compliance review
32 committee or about the actions taken by a compliance
33 review committee.
34 (3) Delivery of compliance review documents to an
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1 affiliate or pursuant to the requirements of a credit
2 union regulatory agency or an insurer of credit union
3 share accounts does not constitute a waiver of the
4 privilege granted in this Section, and the documents
5 shall remain confidential and are not subject to
6 discovery from such entity.
7 (4) This Section does not apply to any civil action
8 initiated by a credit union regulatory agency or an
9 insurer of credit union share accounts.
10 (d) This Section shall not be construed to limit the
11 discovery or admissibility in any civil action of any
12 documents other than compliance review documents or to
13 require the appointment of a compliance review committee.
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.