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Public Act 097-0133 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Credit Union Act is amended by | ||||
changing Sections 1.1, 2, 3, 4, 7, 8, 9, 9.1, 10, 10.1, 11, 12, | ||||
13, 14, 15, 16, 16.1, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, | ||||
30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 43.1, 44, 45, | ||||
46, 47, 48, 49, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, | ||||
63, 64, 65, 66, 67, 68, 69, 69.1, 70, and 71 as follows:
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(205 ILCS 305/1.1) (from Ch. 17, par. 4402)
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Sec. 1.1. Definitions.
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Credit Union - The term "credit union" means
a cooperative, | ||||
non-profit association, incorporated under this Act,
under the | ||||
laws of the United States of America or under the laws
of | ||||
another state, for the purposes of encouraging thrift among
its | ||||
members, creating a source of credit at a reasonable rate of
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interest, and providing an opportunity for its members to use
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and control their own money in order to improve their economic | ||||
and
social conditions. The membership of a credit union shall | ||||
consist
of a group or groups each having a common
bond as set | ||||
forth in this Act.
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Common Bond - The term "common bond" refers to groups of | ||||
people
who meet one of the following qualifications:
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(1) Persons belonging to a specific association, group | ||
or organization,
such as a church, labor union, club or | ||
society and members of their immediate
families which shall | ||
include any relative by blood or marriage or foster
and | ||
adopted children.
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(2) Persons who reside in a reasonably compact and well | ||
defined
neighborhood or community, and
members of their | ||
immediate families which shall include any relative
by | ||
blood or marriage or foster and adopted children.
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(3) Persons who have a common employer or who are | ||
members of an
organized labor union or an organized | ||
occupational or professional
group within a defined | ||
geographical area, and members of their
immediate families | ||
which shall include any relative by blood or
marriage or | ||
foster and adopted children.
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Shares - The term "shares" or "share accounts" means any | ||
form of shares
issued by a credit union and established by a | ||
member in accordance with
standards specified by a credit | ||
union, including but not limited to common
shares, share draft | ||
accounts, classes of shares, share certificates,
special | ||
purpose share accounts, shares issued in trust, custodial | ||
accounts,
and individual retirement accounts or other plans | ||
established pursuant to
Section 401(d) or (f) or Section 408(a) | ||
of the Internal Revenue Code, as now
or hereafter amended, or | ||
similar provisions of any tax laws of the United
States that | ||
may hereafter exist.
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Credit Union Organization - The term "credit union | ||
organization" means
any organization established to serve the | ||
needs of credit unions, the business
of which relates to the | ||
daily operations of credit unions.
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Department - The term "Department" means the Illinois | ||
Department of Financial and Professional Regulation
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Institutions .
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Secretary Director - The term " Secretary Director " means | ||
the Secretary Director of the Illinois Department
of Financial | ||
and Professional Regulation or a person authorized by the | ||
Secretary or this Act to act in the Secretary's stead | ||
Institutions, except that beginning on the effective date of | ||
this amendatory Act of the 95th General Assembly, all | ||
references in this Act to the Director of the Department of | ||
Financial Institutions are deemed, in appropriate contexts, to | ||
be references to the Secretary of Financial and Professional | ||
Regulation .
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Division of Financial Institutions - The term "Division of | ||
Financial Institutions" means the Division of Financial | ||
Institutions of the Department of Financial and Professional | ||
Regulation. | ||
Director - The term "Director of Financial Institutions" | ||
means the Director of the Division of Financial Institutions of | ||
the Department of Financial and Professional Regulation. | ||
Office - The term "office" means the Division of Financial | ||
Institutions of the Department of Financial and Professional |
Regulation. | ||
NCUA - The term "NCUA" means the National Credit Union | ||
Administration, an
agency of the United States Government | ||
charged with the supervision of
credit unions chartered under | ||
the laws of the United States of America.
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Central Credit Union - The term "central credit union" | ||
means a credit union
incorporated primarily to receive shares | ||
from and make loans to credit unions
and directors Directors , | ||
officers Officers , committee members and employees of credit | ||
unions.
A central credit union may also accept as members | ||
persons who were members
of credit unions which were liquidated | ||
and persons from occupational groups
not otherwise served by | ||
another credit union.
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Corporate Credit Union - The term "corporate credit union" | ||
means a credit
union which is a cooperative, non-profit | ||
association, the membership of
which is limited primarily to | ||
other credit unions.
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Insolvent - "Insolvent" means the condition that results | ||
when
the total of all liabilities and shares exceeds net assets | ||
of the credit union.
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Danger of insolvency - For purposes of Section 61, a credit | ||
union is in
"danger of insolvency" if its net worth to
asset | ||
ratio falls below 2%. In calculating the danger of insolvency | ||
ratio,
secondary
capital shall be excluded. For purposes of | ||
Section 61, a credit union is also
in "danger of
insolvency" if | ||
the Department is unable to
ascertain, upon examination, the |
true financial
condition of the credit union.
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Net Worth - "Net worth" means the retained earnings balance | ||
of the credit
union, as determined under generally accepted | ||
accounting principles, and forms
of secondary capital approved | ||
by the Secretary and the Director pursuant to rulemaking.
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Secretary - The term "Secretary" means the Secretary of the | ||
Department of Financial and Professional Regulation, or a | ||
person authorized by the Secretary or this Act to act in the | ||
Secretary's stead. | ||
(Source: P.A. 95-1047, eff. 4-6-09.)
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(205 ILCS 305/2) (from Ch. 17, par. 4403)
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Sec. 2. Organization Procedure. | ||
(1) Any 9 or more persons of legal age,
the majority of | ||
whom shall be residents of the State of Illinois, who have
a | ||
common bond referred to in Section 1.1 may organize a credit | ||
union or
a central credit union by complying with this Section.
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(2) The subscribers shall execute in duplicate Articles of | ||
Incorporation
and agree to the terms thereof, which Articles | ||
shall state:
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(a) The name, which shall include the words "credit | ||
union" and which shall
not be the same as that of any other | ||
existing credit union in this state,
and the location where | ||
the proposed credit union is to have its principal
place of | ||
business;
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(b) The common bond of the members of the credit union;
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(c) The par value of the shares of the credit union, | ||
which must be at least $5.00;
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(d) The names, addresses and Social Security numbers of | ||
the subscribers to
the Articles of Incorporation, and the | ||
number and the value of shares subscribed
to by each;
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(e) That the credit union may exercise such incidental | ||
powers as are necessary
or requisite to enable it to carry | ||
on effectively the purposes for which
it is incorporated, | ||
and those powers which are inherent in the credit union
as | ||
a legal entity;
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(f) That the existence of the credit union shall be | ||
perpetual.
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(3) The subscribers shall prepare and adopt bylaws for the | ||
general government
of the credit union, consistent with this | ||
Act, and execute same in duplicate.
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(4) The subscribers shall forward the articles Articles of | ||
incorporation Incorporation, and the
bylaws to the Secretary | ||
Director in duplicate, along with the required charter Charter | ||
fee.
If they conform to the law, and such rules and regulations | ||
as the Secretary and the Director
may prescribe, if the | ||
Secretary Director determines that a common bond exists, and
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that it is economically advisable to organize the credit union, | ||
he or she shall
within 60 days issue a certificate Certificate | ||
of approval Approval attached to the articles of incorporation | ||
Articles
and return a copy of the bylaws
and the articles of | ||
incorporation Articles to the applicants or their |
representative, which shall
be preserved in the permanent files | ||
of the credit union. The subscribers
shall file the certificate | ||
Certificate of approval Approval , with the articles Articles of | ||
incorporation Incorporation
attached, in the office of the | ||
recorder (or, if
there is no recorder, in the office of the | ||
county
clerk County
Clerk ) of the county County in which the
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credit union is to locate its principal place of business. The
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recorder or the county
clerk County Clerk , as the case may be, | ||
shall accept
and record the documents if they are accompanied | ||
by the proper fee. When the documents
are so recorded, the | ||
credit union is incorporated under this Act.
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(5) The subscribers for a credit union charter shall not | ||
transact any
business until the certificate Certificate of | ||
approval Approval has been received.
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(Source: P.A. 83-358.)
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(205 ILCS 305/3) (from Ch. 17, par. 4404)
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Sec. 3. Form of articles Articles and bylaws Bylaws . The | ||
Secretary Director shall provide, at no
charge, a form of | ||
articles Articles of incorporation Incorporation and a form of | ||
bylaws which may
be used by credit union incorporators for | ||
their guidance.
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(Source: P.A. 81-329.)
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(205 ILCS 305/4) (from Ch. 17, par. 4405)
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Sec. 4. Amendments to articles Articles of incorporation |
Incorporation and bylaws Bylaws . Amendments
to the articles | ||
Articles of incorporation Incorporation may be made by the | ||
members at any regular
or special meeting, if the proposed | ||
amendment is set forth in the call of
the meeting and is | ||
approved by at least two thirds of the members present
at a | ||
meeting at
which a quorum is present. Amendments to the bylaws | ||
may be made by the members
at any regular or special meeting, | ||
if the proposed amendment is set forth
in the call for the | ||
meeting and is approved by a majority of the members
present at | ||
a meeting at which a quorum is present. Amendments to the | ||
bylaws
may also be made by the board of directors Board of | ||
Directors at any regular or special meeting,
if the proposed | ||
amendment is set forth in the call of the meeting and approved
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by at least two thirds of the directors Directors present at a | ||
meeting at which a
quorum is present. A report shall be made to | ||
the members at the next annual
meeting of any amendments to the | ||
bylaws adopted by the board of directors Board of Directors .
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Any amendment to the articles Articles of incorporation | ||
Incorporation or bylaws of a credit union
shall be approved by | ||
the Secretary Director before the amendment is effective. The | ||
Secretary
Director shall approve or disapprove of any | ||
amendments within 60 days after
submission to him or her .
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(Source: P.A. 81-329.)
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(205 ILCS 305/7) (from Ch. 17, par. 4408)
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Sec. 7. Reciprocity - out of state credit unions.
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(1) A credit union organized
and duly chartered as a credit | ||
union in another state shall be permitted
to conduct business | ||
as a credit union in this state if and so long as a credit union | ||
chartered
under the laws of this state is permitted to do | ||
business in such other state,
provided that:
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(a) The credit union shall register with the office | ||
Director prior to
operating in this State, on a form | ||
specified by the Secretary Director .
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(b) The credit union may be required to pay a | ||
registration fee in
accordance with rules promulgated by | ||
the Secretary and the Director.
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(c) The credit union shall comply
with rules | ||
promulgated by the Secretary Director concerning the | ||
operation of out of state
credit unions in this State.
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(d) The credit union shall not conduct business in | ||
Illinois on terms that are less restrictive than the | ||
standards applicable to its operation in its home | ||
chartering state. In every instance with respect to its | ||
activities and operations in Illinois, the credit union | ||
shall comply with applicable Illinois law. | ||
(e) Permission to operate in the State may be revoked | ||
by the Secretary or the Director if the credit union | ||
engages in any activity in the State that would constitute | ||
(i) a violation of this Act or other applicable law, (ii) a | ||
violation of any rule adopted in accordance with this Act | ||
or other applicable law, (iii) a violation of any order of |
the Secretary or Director issued under his or her authority | ||
under this Act, or (iv) an unsafe or unsound practice in | ||
the discretion of the Secretary or Director. | ||
(2) It is intended that the legal existence of credit | ||
unions chartered
under this Act be recognized beyond the limits
| ||
of this State and that, subject to any reasonable registration | ||
requirements,
any credit union transacting business outside of | ||
this State be granted the
protection of full faith and credit | ||
under Section 1 of Article IV of the
Constitution of the United | ||
States.
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(Source: P.A. 92-608, eff. 7-1-02.)
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(205 ILCS 305/8) (from Ch. 17, par. 4409)
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Sec. 8. Secretary's Director's powers and duties. Credit | ||
unions are regulated by the
Department. The Secretary Director, | ||
in executing the powers and discharging the duties
vested by | ||
law in the Department has the following powers and duties:
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(1) To exercise the rights, powers and duties set forth | ||
in this Act or
any related Act. The Director shall oversee | ||
the functions of the Division and report to the Secretary, | ||
with respect to the Director's exercise of any of the | ||
rights, powers, and duties vested by law in the Secretary | ||
under this Act. All references in this Act to the Secretary | ||
shall be deemed to include the Director, as a person | ||
authorized by the Secretary or this Act to assume | ||
responsibility for the oversight of the functions of the |
Department relating to the regulatory supervision of | ||
credit unions under this Act.
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(2) To prescribe rules and regulations for the | ||
administration of this
Act. The provisions of the Illinois | ||
Administrative Procedure Act are hereby
expressly adopted | ||
and incorporated herein
as though a part of this Act, and | ||
shall apply to all administrative rules
and procedures of | ||
the Department under this Act.
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(3) To direct and supervise all the administrative and | ||
technical
activities
of the Department including the | ||
employment of a Credit Union Supervisor
who shall have | ||
knowledge in the theory and practice of, or experience in, | ||
the
operations or supervision of financial institutions, | ||
preferably credit unions,
and such other persons as are | ||
necessary to carry out his functions. The Secretary | ||
Director shall ensure that all examiners appointed or | ||
assigned to examine the affairs of State-chartered credit | ||
unions possess the necessary training and continuing | ||
education to effectively execute their jobs.
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(4) To issue cease and desist orders when in the | ||
opinion of the Secretary Director ,
a credit union is | ||
engaged or has engaged, or the Secretary Director has | ||
reasonable
cause to believe the credit union is about to | ||
engage, in an unsafe or unsound
practice, or is violating | ||
or has violated or the Secretary Director has reasonable
| ||
cause to believe is about to violate a law, rule or |
regulation or any condition
imposed in writing by the | ||
Department.
| ||
(5) To suspend from office and to prohibit from further | ||
participation
in any manner in the conduct of the affairs | ||
of his credit union any director,
officer or committee | ||
member who has committed any violation of a law, rule,
| ||
regulation or of a cease and desist order or who has | ||
engaged or participated
in any unsafe or unsound practice | ||
in connection with the credit union or
who has committed or | ||
engaged in any act, omission, or practice which
constitutes | ||
a breach of his fiduciary duty as such director, officer or
| ||
committee member, when the Secretary Director has | ||
determined that such action or actions
have resulted or | ||
will result in substantial financial loss or other damage | ||
that
seriously prejudices the interests of the members.
| ||
(6) To assess a civil penalty against a credit union | ||
for a violation of this Act, any rule adopted in accordance | ||
with this Act, any order of the Secretary issued under his | ||
or her authority under this Act, or any other action that | ||
in the Secretary's discretion is an unsafe or unsound | ||
practice provided that: | ||
(A) before a civil penalty is assessed under this | ||
item (6), the credit union must be expressly advised in | ||
writing of the: | ||
(i) specific violation that could subject it | ||
to a penalty under this item (6); and |
(ii) the specific remedial action to be taken | ||
within a specific and reasonable time frame to | ||
avoid imposition of the penalty. | ||
(B) a credit union's failure to take timely | ||
remedial action with respect to the specific violation | ||
may result in the issuance of an order assessing a | ||
civil penalty up to the following maximum amount, based | ||
upon the total assets of the credit union: | ||
(i) Credit unions with assets of less than $10 | ||
million ................................................$1,000 | ||
(ii) Credit unions with assets of at least $10 | ||
million and less than $50 million ......................$2,500 | ||
(iii) Credit unions with assets of at least $50 | ||
million and less than $100 million .....................$5,000 | ||
(iv) Credit unions with assets of at least $100 | ||
million and less than $500 million ....................$10,000 | ||
(v) Credit unions with assets of at least $500 | ||
million and less than $1 billion ......................$25,000 | ||
(vi) Credit unions with assets of $1 billion | ||
and greater ..........................................$50,000; | ||
(C) an order assessing a civil penalty under this | ||
item (6) shall take effect upon service of the order, | ||
unless the credit union makes a written request for a | ||
hearing under 38 IL. Adm. Code 190.20 of the | ||
Department's rules for credit unions within 90 days | ||
after issuance of the order. In that event, the order |
shall be stayed until a final administrative order is | ||
entered; and | ||
(D) in the event a credit union commits a | ||
subsequent violation that is substantially similar to | ||
the initial violation for which a cure period under | ||
paragraph (A) of this item (6) was provided the credit | ||
union, no additional cure period shall be required | ||
before another order is issued assessing a civil | ||
penalty for the subsequent violation. Any such order | ||
shall take effect upon service of the order, subject to | ||
the credit union's right to request a hearing as | ||
described in paragraph (C) of this item (6). If a | ||
hearing is requested, the order shall be stayed until a | ||
final administrative order is entered. | ||
This item (6) shall not apply to violations separately | ||
addressed in rules as authorized under item (7) of this | ||
Section.
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(7) (6) Except for the fees established in this Act, to | ||
prescribe, by rule
and regulation, fees and penalties for | ||
preparing, approving, and filing
reports and other | ||
documents; furnishing
transcripts; holding hearings; | ||
investigating applications
for permission to
organize, | ||
merge, or convert; failure to maintain accurate books and | ||
records
to enable the Department to conduct an examination; | ||
and taking supervisory
actions.
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(8) (7) To destroy, in his discretion, any or all books |
and records of any
credit union in his possession or under | ||
his control after the expiration
of three years from the | ||
date of cancellation of the charter of such credit
unions.
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(9) (8) To make investigations and to conduct research | ||
and studies and to
publish some of the problems of persons | ||
in obtaining credit at reasonable
rates of interest and of | ||
the methods and benefits of cooperative saving
and lending | ||
for such persons.
| ||
(10) (9) To authorize, foster or establish | ||
experimental, developmental,
demonstration or pilot | ||
projects by public or private organizations including
| ||
credit unions which:
| ||
(a) promote more effective operation of credit | ||
unions so as to provide
members an opportunity to use | ||
and control their own money to improve their
economic | ||
and social conditions; or
| ||
(b) are in the best interests of credit unions, | ||
their members and the
people of the State of Illinois.
| ||
(11) (10) To cooperate in studies, training or other | ||
administrative activities
with, but not limited to, the | ||
NCUA, other state credit union regulatory
agencies and | ||
industry trade associations in order to promote more | ||
effective
and efficient supervision of Illinois chartered | ||
credit unions.
| ||
(Source: P.A. 95-98, eff. 8-13-07.)
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(205 ILCS 305/9) (from Ch. 17, par. 4410)
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Sec. 9. Reports and examinations.
| ||
(1) Credit unions shall report to
the Department on forms | ||
supplied by the Department, in accordance with a
schedule | ||
published by the Department. A recapitulation of the annual | ||
reports Annual Reports
shall be compiled and published annually | ||
by the Department, for the use
of the General Assembly, credit | ||
unions, various educational institutions
and other interested | ||
parties. A credit union which fails to file any report
when due | ||
shall pay to the Department a late filing fee for each
day the | ||
report is overdue as prescribed by rule. The Secretary Director | ||
may extend
the time for filing a
report.
| ||
(2) The Secretary Director may require special | ||
examinations of and special
financial reports from a credit | ||
union or a credit
union organization in which a credit union | ||
loans, invests, or delegates
substantially all
managerial | ||
duties and responsibilities when he determines that such
| ||
examinations
and reports are necessary to enable the Department
| ||
to determine the safety of a credit union's operation or its | ||
solvency.
The cost to the Department of the aforesaid special | ||
examinations shall be
borne by the credit union being examined | ||
as prescribed by rule.
| ||
(3) All credit unions incorporated under this Act shall be | ||
examined at
least biennially by the Department or, at the | ||
discretion of
the Secretary Director ,
by a public accountant | ||
registered by the Department of Financial and Professional
|
Regulation. The costs of an examination shall be paid by the
| ||
credit union. The scope of all examinations by a public | ||
accountant shall
be at least equal to the examinations made by | ||
the Department. The examiners
shall have full access to, and | ||
may compel the production of, all the books,
papers, securities | ||
and accounts of any credit union. A special examination
shall | ||
be made by the Department or by a public accountant approved by | ||
the
Department upon written request of 5 or more members, who | ||
guarantee the
expense of the same. Any credit union refusing to | ||
submit to an examination
when ordered by the Department shall | ||
be reported to the Attorney General,
who shall institute | ||
proceedings to have its charter revoked. If the Secretary
| ||
Director determines that the examination of a credit
union is | ||
to be
conducted by a public accountant registered by the | ||
Department of Financial and
Professional Regulation and the | ||
examination is
done in conjunction
with the credit union's | ||
external independent audit of financial
statements, the | ||
requirements of this Section and subsection (3) of Section
34 | ||
shall be deemed met.
| ||
(4) A copy of the completed report of examination and a | ||
review comment
letter, if any, citing exceptions revealed | ||
during the examination, shall
be submitted to the credit union | ||
by the Department. A detailed report stating
the corrective | ||
actions taken by the board of directors Board of Directors on | ||
each exception
set forth in the review comment letter shall be | ||
filed with the Department
within 40 days after the date of the |
review comment letter, or as otherwise
directed by the | ||
Department. Any credit union through its officers, directors,
| ||
committee members or employees, which willfully provides | ||
fraudulent or
misleading information regarding the corrective | ||
actions taken on exceptions
appearing in a review comment | ||
letter may have its operations restricted to
the collection of | ||
principal and interest on loans outstanding and the
payment of | ||
normal expenses and salaries until all exceptions are corrected
| ||
and accepted by the Department.
| ||
(Source: P.A. 91-755, eff. 1-1-01; 92-608, eff. 7-1-02.)
| ||
(205 ILCS 305/9.1)
| ||
Sec. 9.1. Disclosures of reports of examinations and | ||
confidential
supervisory information; limitations. | ||
(1) Any report of examination, visitation, or | ||
investigation
prepared by the Secretary Director under this Act | ||
or by the state
regulatory authority charged with enforcing the | ||
Electronic Fund
Transfer Act or the Corporate Fiduciary Act or | ||
by the state
regulatory authority of another state that | ||
examines an office of
an Illinois credit union in that state, | ||
any document or record
prepared or obtained in connection with | ||
or relating to any
examination, visitation, or investigation, | ||
and any record
prepared or obtained by the Secretary Director | ||
to the extent that the record
summarizes or contains | ||
information derived from any report,
document, or record | ||
described in this subsection shall be deemed
"confidential |
supervisory information". Confidential supervisory
information | ||
shall not include any information or record routinely
prepared | ||
by a credit union and maintained in the ordinary course
of | ||
business or any information or record that is required to be
| ||
made publicly available pursuant to State or federal law or | ||
rule.
| ||
(2) Confidential supervisory information is privileged | ||
from
discovery and shall only be disclosed under the | ||
circumstances and
for the purposes set forth in this Section.
| ||
(3) Relevant confidential supervisory information may be
| ||
disclosed under a statute that by its terms or by rules
| ||
promulgated thereunder requires the disclosure of confidential
| ||
supervisory information other than by subpoena, summons,
| ||
warrant, or court
order; to the appropriate
law enforcement
| ||
authorities when the Secretary Director or the credit union | ||
reasonably believes the
credit union,
which the Secretary | ||
Director has caused to be examined, has been a victim of a | ||
crime;
to other agencies or entities having a
legitimate | ||
regulatory interest; to the credit union's board,
officers, | ||
retained professionals, and insurers; to persons
seeking to | ||
merge with or purchase all or part of the assets of the credit
| ||
union; and where disclosure is otherwise required for the | ||
benefit of
the credit union. Disclosure of confidential | ||
supervisory
information to these persons does not constitute a | ||
waiver
of the legal privilege otherwise available with respect | ||
to the
information.
|
(4) A person to whom confidential supervisory information | ||
is
disclosed shall not further disseminate confidential | ||
supervisory
information.
| ||
(5) (a) Any person upon whom a demand for production of
| ||
confidential supervisory information is made, whether by
| ||
subpoena, order, or other judicial or administrative
process, | ||
must withhold production of the confidential
supervisory | ||
information and must notify the Secretary Director of
the | ||
demand, at which time the Secretary Director is authorized to
| ||
intervene for the purpose of enforcing the limitations of
this | ||
Section or seeking the withdrawal or termination of
the attempt | ||
to compel production of the confidential
supervisory | ||
information.
| ||
(b) Any request for discovery or disclosure of confidential
| ||
supervisory information, whether by subpoena, order, or
other | ||
judicial or administrative process, shall be made to
the | ||
Secretary Director , and the Secretary Director shall determine | ||
within 15
days whether to disclose the information pursuant to
| ||
procedures and standards that the Secretary Director shall
| ||
establish by rule. If the Secretary Director determines that | ||
such
information will not be disclosed, the Secretary's | ||
Director's
decision shall be subject to judicial review under | ||
the
provisions of the Administrative Review Law, and venue
| ||
shall be in either Sangamon County or Cook County.
| ||
(c) Any court order that compels disclosure of confidential
| ||
supervisory information may be immediately appealed by the
|
Secretary Director, and the order shall be automatically stayed
| ||
pending the outcome of the appeal.
| ||
(Source: P.A. 92-608, eff. 7-1-02.)
| ||
(205 ILCS 305/10) (from Ch. 17, par. 4411)
| ||
Sec. 10. Credit union records; member financial records.
| ||
(1) A credit union shall establish and maintain books, | ||
records, accounting
systems and procedures which accurately | ||
reflect its operations and which
enable the Department to | ||
readily ascertain the true financial condition
of the credit | ||
union and whether it is complying with this Act.
| ||
(2) A photostatic or photographic reproduction of any | ||
credit union records
shall be admissible as evidence of | ||
transactions with the credit union.
| ||
(3)(a) For the purpose of this Section, the term "financial | ||
records"
means any original, any copy, or any summary of (1) a | ||
document granting
signature authority over an account, (2) a | ||
statement, ledger card or other
record on any account which | ||
shows each transaction in or with respect to
that account, (3) | ||
a check, draft or money order drawn on a financial
institution | ||
or other entity or issued and payable by or through a financial
| ||
institution or other entity, or (4) any other item containing | ||
information
pertaining to any relationship established in the | ||
ordinary course of
business between a credit union and its | ||
member, including financial
statements or other financial | ||
information provided by the member.
|
(b) This Section does not prohibit:
| ||
(1) The preparation, examination, handling or | ||
maintenance of any
financial records by any officer, | ||
employee or agent of a credit union
having custody of such | ||
records, or the examination of such records by a
certified | ||
public accountant engaged by the credit union to perform an
| ||
independent audit.
| ||
(2) The examination of any financial records by or the | ||
furnishing of
financial records by a credit union to any | ||
officer, employee or agent of
the Department, the National | ||
Credit Union Administration, Federal Reserve
board or any | ||
insurer of share accounts for use solely in the exercise of
| ||
his duties as an officer, employee or agent.
| ||
(3) The publication of data furnished from financial | ||
records relating
to members where the data cannot be | ||
identified to any particular customer
of account.
| ||
(4) The making of reports or returns required under | ||
Chapter 61 of the
Internal Revenue Code of 1954.
| ||
(5) Furnishing information concerning the dishonor of | ||
any negotiable
instrument permitted to be disclosed under | ||
the Uniform Commercial
Code.
| ||
(6) The exchange in the regular course of business
of | ||
(i) credit information
between a credit union and other | ||
credit unions or financial institutions
or commercial | ||
enterprises, directly or through a consumer reporting | ||
agency
or (ii) financial records or information derived |
from financial records
between a credit union and other | ||
credit unions or financial institutions or
commercial | ||
enterprises for
the purpose of conducting due diligence | ||
pursuant to a merger or a purchase or
sale of assets or | ||
liabilities of the credit union.
| ||
(7) The furnishing of information to the appropriate | ||
law enforcement
authorities where the credit union | ||
reasonably believes it has been the victim
of a crime.
| ||
(8) The furnishing of information pursuant to the | ||
Uniform Disposition
of Unclaimed Property Act.
| ||
(9) The furnishing of information pursuant to the | ||
Illinois Income Tax
Act and the Illinois Estate and | ||
Generation-Skipping Transfer Tax Act.
| ||
(10) The furnishing of information pursuant to the | ||
federal "Currency
and Foreign Transactions Reporting Act", | ||
Title 31, United States Code,
Section 1051 et sequentia.
| ||
(11) The furnishing of information pursuant to any | ||
other statute which
by its terms or by regulations | ||
promulgated thereunder requires the disclosure
of | ||
financial records other than by subpoena, summons, warrant | ||
or court order.
| ||
(12) The furnishing of information in accordance with | ||
the federal
Personal Responsibility and Work Opportunity | ||
Reconciliation Act of 1996.
Any credit union governed by | ||
this Act shall enter into an agreement for data
exchanges | ||
with a State agency provided the State agency
pays to the |
credit union a reasonable fee not to exceed its
actual cost | ||
incurred. A credit union
providing
information in | ||
accordance with this item shall not be liable to any | ||
account
holder or other person for any disclosure of | ||
information to a State agency, for
encumbering or | ||
surrendering any assets held by the credit union in | ||
response to
a lien
or order to withhold and deliver issued | ||
by a State agency, or for any other
action taken pursuant | ||
to this item, including individual or mechanical errors,
| ||
provided the action does not constitute gross negligence or | ||
willful misconduct.
A credit union shall have no obligation | ||
to hold, encumber, or surrender
assets until
it has been | ||
served with a subpoena, summons, warrant, court or | ||
administrative
order, lien, or levy.
| ||
(13) The furnishing of information to law enforcement | ||
authorities, the
Illinois Department on
Aging and its | ||
regional administrative and provider agencies, the | ||
Department of
Human Services Office
of Inspector General, | ||
or public guardians: (i) upon subpoena by the investigatory | ||
entity or the guardian, or (ii) if there is suspicion by | ||
the credit union that a
member who is an elderly or
| ||
disabled person has been or may become the victim of | ||
financial exploitation.
For the purposes of this
item (13), | ||
the term: (i) "elderly person" means a person who is 60 or | ||
more
years of age, (ii) "disabled
person" means a person | ||
who has or reasonably appears to the credit union to
have a |
physical or mental
disability that impairs his or her | ||
ability to seek or obtain protection from or
prevent | ||
financial
exploitation, and (iii) "financial exploitation" | ||
means tortious or illegal use
of the assets or resources of
| ||
an elderly or disabled person, and includes, without | ||
limitation,
misappropriation of the elderly or
disabled | ||
person's assets or resources by undue influence, breach of | ||
fiduciary
relationship, intimidation,
fraud, deception, | ||
extortion, or the use of assets or resources in any manner
| ||
contrary to law. A credit
union or person furnishing | ||
information pursuant to this item (13) shall be
entitled to | ||
the same rights and
protections as a person furnishing | ||
information under the Elder Abuse and
Neglect Act, the | ||
Illinois
Domestic Violence Act of 1986, and the Abuse of | ||
Adults with Disabilities Intervention Act.
| ||
(14) The disclosure of financial records or | ||
information as necessary
to
effect, administer, or enforce | ||
a transaction requested or authorized by the
member, or in | ||
connection with:
| ||
(A) servicing or processing a financial product or | ||
service requested
or
authorized by the member;
| ||
(B) maintaining or servicing a member's account | ||
with the credit union;
or
| ||
(C) a proposed or actual securitization or | ||
secondary market sale
(including sales of servicing | ||
rights) related to a
transaction of a member.
|
Nothing in this item (14), however, authorizes the sale | ||
of the financial
records or information of a member without | ||
the consent of the member.
| ||
(15) The disclosure of financial records or | ||
information as necessary to
protect against or prevent | ||
actual or potential fraud, unauthorized
transactions, | ||
claims, or other liability.
| ||
(16)(a) The disclosure of financial records or | ||
information
related to a private label credit program | ||
between a financial
institution and a private label party | ||
in connection
with that private label credit program. Such | ||
information
is limited to outstanding balance, available | ||
credit, payment and
performance and account history, | ||
product references, purchase
information,
and information | ||
related to the identity of the
customer.
| ||
(b)(l) For purposes of this paragraph (16) of | ||
subsection
(b) of Section 10, a "private label credit | ||
program" means a credit
program involving a financial | ||
institution and a private label party
that is used by a | ||
customer of the financial institution and the
private label | ||
party primarily for payment for goods or services
sold, | ||
manufactured, or distributed by a private label party.
| ||
(2) For purposes of this paragraph (16) of subsection | ||
(b)
of Section 10, a "private label party" means, with | ||
respect to a
private label credit program, any of the | ||
following: a
retailer, a merchant, a manufacturer, a trade |
group,
or any such person's affiliate, subsidiary, member,
| ||
agent, or service provider.
| ||
(c) Except as otherwise provided by this Act, a credit | ||
union may not
disclose to any person, except to the member
or | ||
his duly authorized agent, any financial records relating to | ||
that member
of the credit union unless:
| ||
(1) the member has authorized disclosure to the person;
| ||
(2) the financial records are disclosed in response to | ||
a lawful
subpoena,
summons, warrant, citation to discover | ||
assets, or court order that meets the requirements of | ||
subparagraph
(d) of this Section; or
| ||
(3) the credit union is attempting to collect an | ||
obligation owed to
the credit union and the credit union | ||
complies with the provisions of
Section 2I of the Consumer | ||
Fraud and Deceptive Business Practices Act.
| ||
(d) A credit union shall disclose financial records under | ||
subparagraph
(c)(2) of this Section pursuant to a lawful | ||
subpoena, summons, warrant, citation to discover assets, or
| ||
court order only after the credit union mails a copy of the | ||
subpoena, summons,
warrant, citation to discover assets, or | ||
court order to the person establishing the relationship with
| ||
the credit union, if living, and otherwise his personal | ||
representative,
if known, at his last known address by first | ||
class mail, postage prepaid
unless the credit union is | ||
specifically prohibited from notifying the person
by order of | ||
court or by applicable State or federal law. In the case
of a |
grand jury subpoena, a credit union shall not mail a copy of a | ||
subpoena
to any person pursuant to this subsection if the | ||
subpoena was issued by a grand
jury under the Statewide Grand | ||
Jury Act or notifying the
person would constitute a violation | ||
of the federal Right to Financial
Privacy Act of 1978.
| ||
(e)(1) Any officer or employee of a credit union who | ||
knowingly and
wilfully furnishes financial records in | ||
violation of this Section is guilty of
a business offense and | ||
upon conviction thereof shall be fined not more than
$1,000.
| ||
(2) Any person who knowingly and wilfully induces or | ||
attempts to induce
any officer or employee of a credit union to | ||
disclose financial records
in violation of this Section is | ||
guilty of a business offense and upon
conviction thereof shall | ||
be fined not more than $1,000.
| ||
(f) A credit union shall be reimbursed for costs which are | ||
reasonably
necessary and which have been directly incurred in | ||
searching for,
reproducing or transporting books, papers, | ||
records or other data of a
member required or requested to be | ||
produced pursuant to a lawful subpoena,
summons, warrant, | ||
citation to discover assets, or court order. The Secretary and | ||
the Director may determine, by rule, the
rates and
conditions | ||
under which payment shall be made. Delivery of requested | ||
documents
may be delayed until final reimbursement of all costs | ||
is received.
| ||
(Source: P.A. 94-495, eff. 8-8-05; 94-851, eff. 6-13-06; | ||
95-661, eff. 1-1-08.)
|
(205 ILCS 305/10.1)
| ||
Sec. 10.1. Retention of records. Unless a federal law | ||
requires otherwise, the Secretary and the Director may by rule
| ||
prescribe periods of time for which credit unions operating | ||
under
this Act must retain records and after the expiration of | ||
which
the credit union may destroy those records. No liability | ||
shall
accrue against the credit union, the Secretary Director , | ||
or this State for
the destruction of records according to rules | ||
of the Secretary Director
promulgated under the authority of | ||
this Section. In any cause or
proceeding in which any records | ||
may be called in question or be
demanded from any credit union, | ||
a showing of the expiration of the
period so prescribed shall | ||
be sufficient excuse for failure to
produce them.
| ||
(Source: P.A. 92-608, eff. 7-1-02.)
| ||
(205 ILCS 305/11) (from Ch. 17, par. 4412)
| ||
Sec. 11. Board of credit union advisors Credit Union | ||
Advisors . | ||
(1) There shall be a board Board of credit union advisors
| ||
Credit Union Advisors who shall consult with, advise , and make | ||
recommendations
to the Governor and to the Secretary Director | ||
on matters pertaining to credit unions.
The board Board of | ||
credit union advisors may Credit Union Advisors shall also | ||
advise the Governor and Secretary Director
upon appointments | ||
and employment of personnel in connection with the supervision
|
and regulation of credit unions.
| ||
(2) The board Board of credit union advisors Credit Union | ||
Advisors shall consist of 7 persons with
credit union | ||
experience who shall be appointed by the Governor. Appointments
| ||
to the board Board shall be for terms of 3 years each, except | ||
that initial appointments
shall be: 3 members for 3 years each; | ||
3 members for 2 years each and 1 member
for 1 year.
| ||
(3) All members shall serve until their successors have | ||
been appointed
and qualified. In the event a vacancy occurs, | ||
the appointment to fill such
vacancy shall be made in the | ||
manner of original appointment, but only for
the unexpired | ||
term.
| ||
(4) The chairman Chairman of the board Board of credit | ||
union advisors Credit Union Advisors shall be elected
annually | ||
by a majority of the board Board members at the first meeting | ||
of the board Board each
year.
| ||
(5) The initial meeting of the board Board shall be called | ||
by the Secretary Director and
thereafter regular meetings shall | ||
be held at such times and places as shall
be determined by the | ||
Governor, chairman, Chairman or Secretary Director , but at | ||
least once each
6 months. Special meetings may be called either | ||
by the Governor, the Secretary, the Director,
the chairman | ||
Chairman , or by written notice sent by 2 or more members of the | ||
board Board .
A majority of the members of the board Board shall | ||
constitute a quorum.
| ||
(6) The Department shall reimburse the board Board members |
for their actual
and necessary travel and subsistence expenses.
| ||||||||||||||||||||||||
(Source: P.A. 81-329.)
| ||||||||||||||||||||||||
(205 ILCS 305/12) (from Ch. 17, par. 4413) | ||||||||||||||||||||||||
Sec. 12. Regulatory fees.
| ||||||||||||||||||||||||
(1) For the fiscal year beginning July 1, 2007, a credit | ||||||||||||||||||||||||
union regulated by the Department shall pay a regulatory
fee to | ||||||||||||||||||||||||
the Department based upon its total assets as shown by its | ||||||||||||||||||||||||
Year-end
Call Report at the following rates or at a lesser rate | ||||||||||||||||||||||||
established by the Secretary in a manner proportionately | ||||||||||||||||||||||||
consistent with the following rates and sufficient to fund the | ||||||||||||||||||||||||
actual administrative and operational expenses of the | ||||||||||||||||||||||||
Department's Credit Union Section pursuant to subsection (4) of | ||||||||||||||||||||||||
this Section:
| ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||
(2) The Secretary shall review the regulatory fee schedule |
in subsection
(1) and the projected earnings on those fees on | ||
an annual
basis
and adjust the fee schedule no more than 5% | ||
annually
if necessary to defray the estimated administrative | ||
and operational expenses of
the Credit Union Section of the | ||
Department as defined in subsection (5). However, the fee | ||
schedule shall not be increased if the amount remaining in the | ||
Credit Union Fund at the end of any fiscal year is greater than | ||
25% of the total actual and operational expenses incurred by | ||
the State in administering and enforcing the Illinois Credit | ||
Union Act and other laws, rules, and regulations as may apply | ||
to the administration and enforcement of the foregoing laws, | ||
rules, and regulations as amended from time to time for the | ||
preceding fiscal year. The regulatory fee for the next fiscal | ||
year shall be calculated by the Secretary based on the credit | ||
union's total assets as of December 31 of the preceding | ||
calendar year. The Secretary shall provide credit
unions with | ||
written notice of any adjustment made in the regulatory fee
| ||
schedule.
| ||
(3) A Beginning with the calendar quarter commencing on | ||
January 1, 2009, a credit union shall
pay to the Department a | ||
regulatory fee
in quarterly installments equal to one-fourth of | ||
the regulatory fee due in accordance with the regulatory fee | ||
schedule in
subsection (1), on the basis of assets as
of the | ||
Year-end Call Report of the preceding calendar year. The total | ||
annual regulatory fee shall
not be less than
$100 or more than | ||
$141,875, provided that the
regulatory fee cap of $141,875
|
shall be adjusted to incorporate the same percentage increase | ||
as the Secretary
makes in the regulatory fee schedule from time | ||
to time under subsection (2).
No regulatory
fee
shall be | ||
collected
from a credit union until it
has been in operation | ||
for one year. The regulatory fee shall be billed to credit | ||
unions on a quarterly basis commencing with the quarter ending | ||
March 31, 2009, and it shall be payable by credit unions on the | ||
due date for the Call Report for the subject quarter.
| ||
(4) The aggregate of all fees collected by the Department | ||
under this
Act
shall be paid promptly after they are received,
| ||
accompanied by a detailed
statement thereof, into the State | ||
Treasury and shall be set apart in the
Credit Union Fund, a | ||
special fund hereby created in the State treasury.
The amount | ||
from time to time deposited in the Credit Union Fund and shall
| ||
be used to offset the ordinary administrative and operational | ||
expenses of
the Credit Union Section of the Department under
| ||
this Act. All earnings received from investments of funds in | ||
the Credit
Union Fund shall be deposited into the Credit Union | ||
Fund and may be used for
the same purposes as fees deposited | ||
into that fund Fund .
Moneys deposited in the Credit Union Fund | ||
may be transferred to the Professions Indirect Cost Fund, as | ||
authorized under Section 2105-300 of the Department of | ||
Professional Regulation Law of the Civil Administrative Code of | ||
Illinois.
| ||
Notwithstanding provisions in the State Finance Act, as now | ||
or hereafter amended, or any other law to the contrary, the sum |
of $4,404,515 shall be transferred from the Credit Union Fund | ||
to the Financial Institutions Settlement of 2008 Fund as of the | ||
effective date of this amendatory Act of the 95th General | ||
Assembly, or as soon thereafter as practical. | ||
Notwithstanding provisions in the State Finance Act, as now | ||
or hereafter amended, or any other law to the contrary, the | ||
Governor may, during any fiscal year through January 10, 2011, | ||
from time to time direct the State Treasurer and Comptroller to | ||
transfer a specified sum not exceeding 10% of the revenues to | ||
be deposited into the Credit Union Fund during that fiscal year | ||
from that Fund to the General Revenue Fund in order to help | ||
defray the State's operating costs for the fiscal year. | ||
Notwithstanding provisions in the State Finance Act, as now or | ||
hereafter amended, or any other law to the contrary, the total | ||
sum transferred from the Credit Union Fund to the General | ||
Revenue Fund pursuant to this provision shall not exceed during | ||
any fiscal year 10% of the revenues to be deposited into the | ||
Credit Union Fund during that fiscal year. The State Treasurer | ||
and Comptroller shall transfer the amounts designated under | ||
this Section as soon as may be practicable after receiving the | ||
direction to transfer from the Governor.
| ||
(5) The administrative and operational expenses for any | ||
fiscal
year shall mean the ordinary
and contingent expenses for | ||
that year incidental to making the examinations
provided for | ||
by, and for administering, this Act, including all salaries
and | ||
other compensation paid for personal services rendered for the |
State by
officers or employees of the State to enforce this | ||
Act; all expenditures
for telephone and telegraph charges, | ||
postage and postal charges, office
supplies and services, | ||
furniture and equipment, office space and
maintenance thereof, | ||
travel expenses and other necessary expenses; all to
the extent | ||
that such expenditures are directly incidental to such
| ||
examination or administration.
| ||
(6) When the balance in the Credit Union Fund at the end of | ||
a fiscal year exceeds 25% of the
total
administrative and | ||
operational
expenses incurred by the State in administering and | ||
enforcing the Illinois Credit Union Act and other laws, rules, | ||
and regulations as may apply to the administration and | ||
enforcement of the foregoing laws, rules, and regulations as | ||
amended from time to time for that fiscal year, such excess | ||
shall be credited to
credit unions and applied against their | ||
regulatory fees for
the subsequent fiscal year. The amount | ||
credited to each credit union shall be in the
same proportion | ||
as the regulatory fee paid by such credit union for the fiscal
| ||
year in which the excess is produced bears to the aggregate | ||
amount of all
fees collected by the Department
under this Act | ||
for the same fiscal year.
| ||
(7) (Blank).
| ||
(8) Nothing in this Act shall prohibit the General Assembly | ||
from
appropriating funds to the Department from the General | ||
Revenue Fund for the
purpose of administering this Act.
| ||
(9) For purposes of this Section, "fiscal year" means a |
period beginning on July 1 of any calendar year and ending on | ||
June 30 of the next calendar year. | ||
(Source: P.A. 94-91, eff. 7-1-05; 95-1047, eff. 4-6-09.)
| ||
(205 ILCS 305/13) (from Ch. 17, par. 4414)
| ||
Sec. 13. General powers. A credit union may:
| ||
(1) Make contracts; sue and be sued; and adopt and use | ||
a common seal
and alter the same;
| ||
(2) Acquire, lease (either as lessee or lessor), hold, | ||
pledge, mortgage,
sell and dispose of real property, either | ||
in whole or in part, or any interest
therein, as may be | ||
necessary or incidental to its present or future
operations | ||
and needs, subject to such limitations as may be imposed
| ||
thereon in rules and regulations promulgated by the | ||
Secretary Director ; acquire, lease
(either as lessee or | ||
lessor), hold, pledge, mortgage, sell and dispose of
| ||
personal property, either in whole or in part, or any | ||
interest therein,
as may be necessary or incidental to its | ||
present or future operations
and needs;
| ||
(3) At the discretion of the board of directors Board | ||
of Directors , require the payment of
an entrance fee or | ||
annual membership fee, or both, of any person admitted to
| ||
membership;
| ||
(4) Receive savings from its members in the form of | ||
shares of various
classes, or special purpose share | ||
accounts; act as custodian of its members'
accounts; issue |
shares in trust as provided in this Act;
| ||
(5) Lend its funds to its members and otherwise as | ||
hereinafter provided;
| ||
(6) Borrow from any source in accordance with policy | ||
established by the board of directors
Board of Directors to | ||
a maximum of 50% of capital, surplus and reserves;
| ||
(7) Discount and sell any obligations owed to the | ||
credit union;
| ||
(8) Honor requests for withdrawals or transfers of all | ||
or any part of
member share accounts, and any classes | ||
thereof, in any manner approved by
the credit union board | ||
of directors Board of Directors ;
| ||
(9) Sell all or a part substantially all of its assets | ||
or purchase all or
a part substantially all of the assets | ||
of another credit union and assume the liabilities of the | ||
selling credit union , subject to the
prior approval of the | ||
Director , which approval shall not be required in the case | ||
of loan transactions otherwise authorized under applicable | ||
law ;
| ||
(10) Invest surplus funds as provided in this Act;
| ||
(11) Make deposits in banks, savings banks, savings and | ||
loan associations,
trust companies; and invest in shares, | ||
classes of shares or share certificates
of other credit | ||
unions;
| ||
(12) Assess charges and fees to members in accordance | ||
with board
resolution;
|
(13) Hold membership in and pay dues to associations | ||
and organizations;
to invest in shares, stocks or | ||
obligations of any credit union organization;
| ||
(14) Declare dividends and pay interest refunds to | ||
borrowers as provided
in this Act;
| ||
(15) Collect, receive and disburse monies in | ||
connection with providing
negotiable checks, money orders | ||
and other money-type instruments, and for
such other | ||
purposes as may provide benefit or convenience to its | ||
members,
and charge a reasonable fee for such services;
| ||
(16) Act as fiscal agent for and receive deposits from | ||
the federal
government, this state or any agency or | ||
political subdivision thereof;
| ||
(17) Receive savings from nonmembers in the form of | ||
shares or share
accounts in the case of credit unions | ||
serving predominantly low-income
members. The term "low | ||
income
members" shall mean those members who make less than | ||
80% of the average for
all wage earners as established by | ||
the Bureau of Labor Statistics or those
members whose | ||
annual household income falls at or below 80% of the
median | ||
household income for the nation as established by the | ||
Census Bureau. The
term "predominantly" is defined as a | ||
simple majority;
| ||
(18) Establish, maintain, and operate terminals as | ||
authorized by
the Electronic Fund Transfer Act;
| ||
(19) Subject to Article XLIV of the Illinois Insurance |
Code, act
as the agent for any fire, life, or other | ||
insurance company authorized by the
State of Illinois, by | ||
soliciting and selling insurance and collecting premiums
| ||
on policies issued by such company; and may receive for | ||
services so rendered
such fees or commissions as may be | ||
agreed upon between the said credit union
and the insurance | ||
company for which it may act as agent; provided, however,
| ||
that no such credit union shall in any case assume or | ||
guarantee the payment of
any premium on insurance policies | ||
issued through its agency by its principal;
and provided | ||
further, that the credit union shall not guarantee the | ||
truth of
any statement made by an assured in filing his | ||
application for insurance; and
| ||
(20) Make reasonable contributions to civic, | ||
charitable, or service organizations not organized for | ||
profit; religious corporations; and fundraisers benefiting | ||
persons in the credit union's service area.
| ||
(Source: P.A. 94-150, eff. 7-8-05.)
| ||
(205 ILCS 305/14) (from Ch. 17, par. 4415)
| ||
Sec. 14. Incidental powers Powers . A credit union may | ||
exercise such incidental
powers as are granted corporations | ||
organized under the laws of this State
including, to the extent | ||
such powers are not inconsistent with powers and
prohibitions | ||
contained in this Act, such powers as are necessary or | ||
convenient
to enable credit unions to promote and carry on |
their purposes. The provisions
of this Section shall be | ||
interpreted liberally and not restrictively.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/15) (from Ch. 17, par. 4416)
| ||
Sec. 15. Membership defined.
| ||
(1) The membership of a credit union shall
be limited to | ||
and consist of the subscribers to the articles of incorporation
| ||
and such other persons within the common bond, as defined in | ||
this Act and
as set forth in the credit union's articles of | ||
incorporation, as have been
duly admitted members, have paid | ||
the required entrance fee or membership
fee, or both, if any, | ||
have subscribed for one or more shares, and have paid
the | ||
initial installment thereon, and have complied with such other | ||
requirements
as the articles of incorporation or bylaws | ||
specify. Two or more persons
within the common bond who have | ||
jointly subscribed for one or more shares under
a joint account | ||
and have complied with all membership requirements may each be
| ||
admitted to membership. The surviving spouse
of a credit union | ||
member may, within 6 months of the member's death, become
a | ||
member of the credit union by paying the required entrance fee | ||
or membership
fee or both, if any, by subscribing for one or | ||
more shares
and paying the initial installment thereon, and by | ||
complying with such other
requirements as the articles of | ||
incorporation or bylaws specify.
| ||
(2) Any member may withdraw from a credit union at any time |
upon giving
notice of withdrawal as required by the bylaws.
| ||
(3) Any member may be expelled
by a 2/3 vote of the members | ||
present at any regular or special
meeting
called to consider | ||
the matter, but only after an opportunity has been given
to the | ||
member to be heard.
| ||
(4) A member who has caused a loss to the credit union,
| ||
failed
to maintain one or more shares at the credit union, or | ||
violated board Board policy
applicable to members may be | ||
expelled by
a majority vote of a quorum of directors if the | ||
board has adopted a policy
providing for expulsion under those | ||
circumstances. In maintaining and
enforcing a policy based on | ||
loss, the
board may consider, without limitation, a member's | ||
failure to pay amounts due
under a loan, failure to provide | ||
collected funds to cover withdrawals or
personal share drafts | ||
or credit union drafts where the member is a remitter, or
| ||
failure to pay fees or charges due the credit union. If a | ||
policy
is
adopted by the board pursuant to this subsection (4), | ||
written notice of the
policy and the effective date of the | ||
policy
shall be mailed to each member of the credit union at | ||
the member's current
address appearing on the records of the | ||
credit union. The policy shall be
mailed to members not fewer | ||
than 30 days prior to the effective date of the
policy. In | ||
addition, new members shall be provided written notice of the
| ||
policy prior to or upon applying for membership.
| ||
(5) All or any part of the amount paid on shares
of a | ||
withdrawing member
or expelled member with any declared |
dividends or interest on the date of
withdrawal or expulsion | ||
must, after deducting all amounts due from the member
to the | ||
credit union, be paid to him. The credit union may require not | ||
more
than 60 days' written notice of intention to withdraw | ||
shares, but a notice
of withdrawal does not entitle the member | ||
to any preferred or prior claim
in the event of liquidation. | ||
Withdrawing or expelled members have no further
rights in the | ||
credit union, but are not, by withdrawal or expulsion, released
| ||
from any obligation they owe to the credit union.
| ||
(6) A member who has caused a loss to the credit union or | ||
has violated board
Board policy applicable to members may be | ||
denied any
or all credit union services in accordance with | ||
board policy, however, members
who are denied services shall be | ||
allowed to maintain a share account and to
vote on all issues
| ||
put to a vote of the membership.
| ||
(Source: P.A. 93-640, eff. 12-31-03.)
| ||
(205 ILCS 305/16) (from Ch. 17, par. 4417)
| ||
Sec. 16. Societies and , associations. Societies,
| ||
associations, clubs, partnerships, corporations, and limited
| ||
liability companies in which the majority of the members, | ||
partners, or
shareholders
are individuals who are
eligible for | ||
credit union membership may be admitted to membership in a | ||
credit
union in the same
manner and under the same conditions | ||
as individuals, subject to such rules
as the Secretary and the | ||
Director may promulgate hereunder.
|
(Source: P.A. 92-608, eff. 7-1-02.)
| ||
(205 ILCS 305/16.1) | ||
Sec. 16.1. Service to the economically disadvantaged.
| ||
(a) Persons who reside in investment areas as defined in | ||
the Community Development Banking and Financial Institutions | ||
Act of 1994 (12 U.S.C. 4702) and identified by the U.S. | ||
Department of the Treasury may be admitted to membership in a | ||
credit union that serves the area by maintaining a facility in | ||
the area. For purposes of this Section, a "facility" means a | ||
credit union owned branch, a shared branch, an office operated | ||
on a regularly scheduled weekly basis, or a credit union owned | ||
electronic facility that meets, at a minimum, the requirements | ||
of accepting shares for members' accounts, accepting loan | ||
applications and disbursing loans, but does not include an ATM. | ||
(b) Credit unions desiring to serve the economically | ||
disadvantaged in accordance with this Section shall do so | ||
pursuant to a written business plan that shall document the | ||
fact that the area meets the criteria of this Section, identify | ||
the credit and depository needs of the area, identify the | ||
services to be delivered, and describe the manner in which the | ||
services will be delivered. The credit union shall regularly | ||
review the business plan to determine whether the area is being | ||
adequately served and shall provide to the Secretary Director | ||
periodic service status reports that describe how the needs of | ||
the area are being met.
|
(Source: P.A. 93-916, eff. 8-12-04.)
| ||
(205 ILCS 305/19) (from Ch. 17, par. 4420)
| ||
Sec. 19. Meeting of members.
| ||
(1) The annual meeting shall be held each
year during the | ||
months of January, February or March or such other month
as may | ||
be approved by the Department. The meeting shall be held at the
| ||
time, place and in the manner set forth in the bylaws. Any | ||
special
meetings of the members of the credit union shall be | ||
held at the time, place
and in the manner set forth in the | ||
bylaws. Unless otherwise set forth in
this Act, quorum | ||
requirements for meetings of members shall be established
by a | ||
credit union in its bylaws. Notice of all meetings must be | ||
given by
the secretary Secretary of the credit union at least 7 | ||
days before the date of such
meeting, either by handing a | ||
written or printed notice to each
member of the credit union, | ||
by mailing the notice to the member at his address
as listed on | ||
the books and records of the credit union, or by posting a
| ||
notice of the meeting in three conspicuous places, including | ||
the office
of the credit union.
| ||
(2) On all questions and at all elections, except election | ||
of directors,
each member has one vote regardless of the number | ||
of his shares. There
shall be no voting by proxy except on the | ||
election of directors, proposals
for merger or voluntary | ||
dissolution. All voting on the election of directors
shall be | ||
by ballot, but when there is no contest, written ballots need |
not
be cast. The record date to be used for the purpose of | ||
determining which
members are entitled to notice of or to vote | ||
at any meeting of members,
may be fixed in advance by the | ||
directors on a date not more than 90 days
nor less than 10 days | ||
prior to the date of the meeting. If no record date
is fixed by | ||
the directors, the first day on which notice of the meeting
is | ||
given, mailed or posted is the record date.
| ||
(3) Regardless of the number of shares owned by a society, | ||
association,
club, partnership, other credit union or | ||
corporation, having membership
in the credit union, it shall be | ||
entitled to only
one vote and it may be represented and have | ||
its vote cast by its
designated agent acting on its
behalf | ||
pursuant
to a resolution
adopted by the organization's board of | ||
directors or similar governing
authority;
provided that the | ||
credit union shall obtain a certified copy of such resolution
| ||
before such vote may be cast. | ||
(4) A member may revoke a proxy by delivery to the credit | ||
union of a written statement to that effect, by execution of a | ||
subsequently dated proxy, or by attendance at a meeting and | ||
voting in person.
| ||
(Source: P.A. 96-963, eff. 7-2-10.)
| ||
(205 ILCS 305/20) (from Ch. 17, par. 4421)
| ||
Sec. 20. Election or appointment of officials.
| ||
(1) The credit union shall
be directed by a board of | ||
directors Board of Directors consisting of no less than 7 in |
number,
to be elected at the annual meeting by and from the | ||
members. Directors shall
hold office until the next annual | ||
meeting, unless their
terms are staggered. Upon amendment of | ||
its bylaws, a credit union may divide
the directors Directors | ||
into 2 or 3 classes with each class as nearly equal in number | ||
as
possible. The term of office of the directors of the first | ||
class shall expire
at the first annual meeting after their | ||
election, that of the second class
shall
expire at the second | ||
annual meeting after their election, and that of the third
| ||
class, if any, shall expire at the third annual meeting after | ||
their election.
At each annual meeting after the | ||
classification, the number of directors equal
to the number of | ||
directors whose terms expire at the time of the meeting shall
| ||
be elected to hold office until the second succeeding annual | ||
meeting if there
are 2 classes or until the third succeeding | ||
annual meeting if there are 3
classes. A director Director | ||
shall hold office for the term for which he
or she is elected | ||
and until his or her
successor
is elected and qualified. | ||
(1.5) Except as provided in subsection (1.10), in all | ||
elections for directors Directors , every member
has the right | ||
to vote, in person or by proxy, the number of shares owned
by | ||
him, or in the case of a member other than a natural person, | ||
the member's
one vote, for as many persons as there are | ||
directors Directors to be elected, or to
cumulate such shares, | ||
and give one candidate as many votes as the number
of directors | ||
Directors multiplied by the number of his shares equals, or to |
distribute
them on
the same principle among as many candidates | ||
as he may desire and the directors Directors
shall not be | ||
elected in any other manner. Shares held in a joint account
| ||
owned by more than one member may be voted by any one of the | ||
members, however,
the number of cumulative votes cast may not | ||
exceed a total equal to the number
of shares multiplied by the | ||
number of directors to be elected. A majority of
the shares | ||
entitled
to vote shall be represented either in person or by | ||
proxy for the election
of directors Directors . Each director | ||
Director shall wholly take and subscribe to an oath
that he | ||
will diligently and honestly perform his duties in | ||
administering
the affairs of the credit union, that while he | ||
may delegate to another the
performance of those administrative | ||
duties he is not thereby relieved from
his responsibility for | ||
their performance, that he will not knowingly violate
or | ||
willingly permit to be violated any law applicable to the | ||
credit union,
and that he is the owner of at least one share of | ||
the credit union.
| ||
(1.10) Upon amendment of a credit union's bylaws approved | ||
by the members, in all elections for directors Directors , every | ||
member who is a natural person shall have the right to cast one | ||
vote, regardless of the number of his or her shares, in person | ||
or by proxy, for as many persons as there are directors | ||
Directors to be elected.
| ||
(2) The board of directors Board of Directors shall appoint | ||
from among the members of the
credit union, a supervisory |
committee Supervisory Committee of not less than 3 members at | ||
the
organization meeting and within 30 days following each | ||
annual meeting of
the members for such terms as the bylaws | ||
provide. Members of the supervisory committee Supervisory
| ||
Committee may, but need not be, on the board of directors Board | ||
of Directors , but shall not
be officers of the credit union, | ||
members of the credit committee Credit Committee ,
or the
credit | ||
manager if no credit committee Credit Committee has been | ||
appointed.
| ||
(3) The board of directors Board of Directors may appoint, | ||
from among the
members of the
credit union, a credit committee | ||
Credit Committee consisting of an odd number, not less than
3 | ||
for such terms as the bylaws provide. Members of the credit | ||
committee Credit Committee
may, but need not be, directors | ||
Directors or officers of the credit union, but shall
not be | ||
members of the supervisory committee Supervisory Committee .
| ||
(4) The board of directors Board of Directors may appoint | ||
from among the members
of the
credit union a membership | ||
committee Membership Committee of one or more persons. If | ||
appointed,
the committee Committee shall act
upon all | ||
applications for membership and submit a report of its actions
| ||
to the board of directors Board of Directors at the next | ||
regular meeting for
review.
If no membership committee | ||
Membership Committee is appointed, credit union management | ||
shall act
upon all applications for membership and submit a | ||
report of its actions to the board of directors
Board of |
Directors at the next regular meeting for review.
| ||
(Source: P.A. 95-52, eff. 1-1-08.)
| ||
(205 ILCS 305/21) (from Ch. 17, par. 4422)
| ||
Sec. 21. Record of board and committee members. Within 30 | ||
days after
election or appointment, the names and addresses of | ||
the members of the board of directors Board
of Directors , | ||
committees and all officers of the credit union shall be filed
| ||
with the Department on forms provided by the Department.
| ||
(Source: P.A. 86-1216.)
| ||
(205 ILCS 305/22) (from Ch. 17, par. 4423)
| ||
Sec. 22. Vacancies. | ||
(a) The board of directors Board of Directors shall, by | ||
appointment from
among the credit union members, fill any | ||
vacancies occurring on the board Board
for the remainder of the | ||
director's Director's unexpired term or until a successor
is | ||
elected and qualified following completion of the term filled | ||
by the board Board . In the event the vacancy reduces the number | ||
of directors serving on the board to less than the statutory | ||
minimum set forth in subsection (1) of Section 20, then the | ||
board shall fill the vacancy no later than the next annual | ||
meeting of members or 90 days after the vacancy occurred, | ||
whichever occurs first. Upon written application to the | ||
Secretary, the board may request additional time in which to | ||
fill the vacancy. The application may be approved by the |
Secretary in his or her discretion. The board Board shall, by | ||
appointment from among the
credit union members, fill vacancies | ||
in the membership committee Membership Committee , credit
| ||
committee Credit
Committee , or credit manager if no credit
| ||
committee Credit Committee has been appointed, and
supervisory
| ||
committees Supervisory
Committees . | ||
(b) An office may be declared vacant by the board Board | ||
when a director Director or a committee Committee member dies, | ||
resigns from the board Board or committee Committee , is removed | ||
from the board Board or committee Committee , is no longer a | ||
member of the credit union, is the owner of less than one share | ||
of the credit union, or fails to attend three consecutive | ||
regular meetings of the board Board without good cause.
| ||
(Source: P.A. 95-98, eff. 8-13-07.)
| ||
(205 ILCS 305/23) (from Ch. 17, par. 4424)
| ||
Sec. 23. Compensation of officials.
| ||
(1) No director or committee member may
receive | ||
compensation for his service as such.
"Compensation" as used in | ||
this subsection (1) refers to remuneration expense
to the | ||
credit union for services provided by a director or committee | ||
member in
his or her capacity as director or committee member. | ||
"Compensation" as used in
this subsection (1) does not include | ||
the expense of providing
reasonable life, health,
accident, and | ||
similar insurance protection benefits for a director or
| ||
committee member.
|
(2) Directors, committee members and
employees, while on | ||
official business of the credit union, may be reimbursed
for | ||
reasonable and necessary expenses. Alternatively, the credit | ||
union may make direct payment to a third party for such | ||
business expenses. Reasonable and necessary expenses may | ||
include the payment of travel costs for the foregoing officials | ||
and one guest per official. All payment of costs shall be made | ||
in accordance with written policies and procedures established | ||
by the board of directors Board of Directors .
| ||
(3) The board of directors Board of Directors may establish
| ||
compensation for officers of the credit union.
| ||
(Source: P.A. 92-608, eff. 7-1-02; 93-916, eff. 8-12-04.)
| ||
(205 ILCS 305/24) (from Ch. 17, par. 4425)
| ||
Sec. 24. Conflicts of interest Interest . No director | ||
Director , committee member, officer,
agent or employee of the | ||
credit union shall in any manner, directly or indirectly,
| ||
participate in the deliberation upon or the determination of | ||
any question
affecting his pecuniary interest or the pecuniary | ||
interest of any corporation,
partnership, or association | ||
(other than the credit union, other credit unions
or credit | ||
union organizations) in which he is directly or indirectly | ||
interested,
unless such interest is disclosed to the board of | ||
directors Board of Directors prior to such
deliberation or | ||
determination, in which event such person shall be entitled
to | ||
participate and, if otherwise entitled to, shall have the power |
to vote
on such matter.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/25) (from Ch. 17, par. 4426)
| ||
Sec. 25. Indemnification. A credit union may indemnify any | ||
and all of its directors
Directors , committee members, officers | ||
or employees or former directors Directors ,
committee members, | ||
officers or employees against expenses actually and | ||
necessarily
incurred by them in connection with the defense or | ||
settlement of any action,
suit or proceeding in which they, or | ||
any of them, are made a party or parties
by reason of being or | ||
having been a director Director , committee member, officer
or | ||
employee of the credit union, except in relation to matters as | ||
to which
any such director Director , committee member, officer | ||
or employee shall be adjudged
in such action, suit or | ||
proceeding to be liable for willful misconduct in
the | ||
performance of duty and to such matters as shall be settled by | ||
agreement
predicated on the existence of such liability.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/26) (from Ch. 17, par. 4427)
| ||
Sec. 26. Executive officers Officers . | ||
(1) At their first meeting, the board of directors Board of
| ||
Directors shall elect from among their own number a chairman | ||
Chairman of the board Board
and one or more vice chairmen Vice | ||
Chairmen , a secretary Secretary and a treasurer Treasurer . The |
directors Directors
shall appoint a chief management official | ||
who shall have such title as the directors Directors shall | ||
determine. The directors Directors
may also appoint one or more | ||
vice presidents Vice Presidents .
The chief management official | ||
and vice president Vice President may, but need not, be | ||
directors Directors . Any two
or more offices may be held by the | ||
same person, except the chairman Chairman of the board Board | ||
may
not also hold the office of vice chairman Vice Chairman or | ||
secretary Secretary . | ||
(2) The officers shall serve for a term of one year, or | ||
until their successors
are chosen and have been duly qualified.
| ||
(3) The duties of the officers shall be prescribed in the | ||
bylaws. Compensation
of officers shall be such as may be | ||
established by the directors Directors from time to time.
| ||
(Source: P.A. 93-916, eff. 8-12-04.)
| ||
(205 ILCS 305/27) (from Ch. 17, par. 4428)
| ||
Sec. 27. Authority of directors.
| ||
(1) The board of directors Board of Directors shall be | ||
charged
with and have control over the general management of | ||
the operations, funds
and records of the credit union.
| ||
(2) In discharging the duties of their respective | ||
positions, the board
of directors, committees of the board, and | ||
individual directors shall be
entitled to rely on advice, | ||
information, opinions, reports or statements,
including | ||
financial statements and financial data, prepared or presented |
by:
(i) one or more officers or employees of the credit union | ||
whom the director
believes to be reliable and competent in the | ||
matter presented; (ii) one or more
counsel, accountants, or | ||
other consultants as to matters that the director Director
| ||
believes to be within that person's professional or expert | ||
competence; or (iii)
a committee of the board upon which the | ||
director Director does not serve, as to matters
within that | ||
committee's designated authority; provided that the director's | ||
Director's
reliance under this subsection (2)
is placed in good | ||
faith, after reasonable inquiry if the need for such inquiry
is | ||
apparent under the circumstances and without knowledge that | ||
would cause such
reliance to be unreasonable.
| ||
(Source: P.A. 92-608, eff. 7-1-02.)
| ||
(205 ILCS 305/28) (from Ch. 17, par. 4429)
| ||
Sec. 28. Executive committee Committee . From the persons | ||
elected to the board Board , the board
Board may appoint an | ||
executive committee Executive Committee of not less than 3 | ||
directors Directors who
may be authorized to act for the board | ||
Board in all respects, subject to such
conditions and | ||
limitations as are prescribed by the board Board . The executive | ||
committee Executive
Committee shall report to the board Board | ||
at each board Board meeting on any meeting
held and actions | ||
taken by the executive committee Executive Committee between | ||
board Board meetings.
| ||
(Source: P.A. 81-329.)
|
(205 ILCS 305/30) (from Ch. 17, par. 4431)
| ||
Sec. 30. Duties of directors. | ||
(a) It shall be the duty of the directors to:
| ||
(1) Review actions on applications
for membership. A | ||
record of the membership committee's Membership | ||
Committee's approval or
denial of membership or | ||
management's approval or denial of membership if no | ||
membership committee
Membership Committee has been | ||
appointed shall be available to the board of
directors | ||
Board of
Directors for inspection. A person denied | ||
membership by the membership committee Membership
| ||
Committee or credit union management may appeal the denial | ||
to the board Board ;
| ||
(2) Provide adequate fidelity bond coverage for | ||
officers,
employees, directors and committee members, and | ||
for losses caused by
persons outside of the credit union, | ||
subject to rules and regulations
promulgated by the | ||
Secretary Director ;
| ||
(3) Determine from time to time the interest rates, not | ||
in excess of that
allowed under this Act, which shall be | ||
charged on loans to members and to
authorize interest | ||
refunds, if any, to members from income earned and received
| ||
in proportion to the interest paid by them on such classes | ||
of loans and
under such conditions as the board Board | ||
prescribes. The directors Directors may establish
|
different interest rates to be charged on different classes | ||
of loans;
| ||
(4) Within any limitations set forth in the credit | ||
union's bylaws, fix
the maximum amount which may be loaned | ||
with and without security to a member;
| ||
(5) Declare dividends on various classes of shares in | ||
the manner and form
as provided in the bylaws;
| ||
(6) Limit the number of shares which may be owned by a | ||
member;
such limitations to apply alike to all members;
| ||
(7) Have charge of the investment of funds, except that | ||
the board of
directors Board of
Directors may designate an | ||
investment committee Investment Committee or any qualified | ||
individual
or entity to have charge of making investments | ||
under policies established
by the board of directors Board | ||
of Directors ;
| ||
(8) Authorize the employment of or contracting with | ||
such persons or
organizations as may be necessary to carry | ||
on the
operations of the credit union, provided that prior | ||
approval is received from
the
Department before delegating | ||
substantially all managerial duties and
responsibilities | ||
to a credit union organization, and fix
the compensation, | ||
if any, of the officers and provide for compensation for
| ||
other employees within
policies established by the board of
| ||
directors Board of Directors ;
| ||
(9) Authorize the conveyance of property;
| ||
(10) Borrow or lend money consistent with the |
provisions of this Act;
| ||
(11) Designate a depository or depositories for the | ||
funds of the credit
union and supervise the investment of | ||
funds;
| ||
(12) Suspend or remove, or both, any or all officers or | ||
any
or all members of the membership Membership , credit | ||
Credit , or other committees
whenever, in the judgment of | ||
the board of
directors Board of Directors , the best | ||
interests of the credit union will be served thereby; | ||
provided that members of the supervisory committee | ||
Supervisory Committee may not be suspended or removed | ||
except for failure to perform their duties; and provided | ||
that removal of any officer shall be without prejudice to | ||
the contract rights, if any, of the person so removed;
| ||
(13) Appoint any special committees deemed necessary; | ||
and
| ||
(14) Perform such other duties as the members may | ||
direct, and perform
or authorize any action not | ||
inconsistent with this Act and not specifically
reserved by | ||
the bylaws to the members. | ||
(b) The board of
directors Board of Directors may delegate | ||
to the chief management official, according to guidelines | ||
established by the board Board that may include the authority | ||
to further delegate one or more duties, all of the following | ||
duties: | ||
(1) determining the interest rates on loans; |
(2) determining the dividend rates on share accounts;
| ||
and | ||
(3) hiring employees other than the chief management | ||
official and fixing their compensation.
| ||
(Source: P.A. 95-98, eff. 8-13-07.)
| ||
(205 ILCS 305/31) (from Ch. 17, par. 4432)
| ||
Sec. 31. Supervision of loans. The credit committee Credit | ||
Committee shall have
the general supervision of all loans and | ||
lines of credit to members.
If no credit committee Credit | ||
Committee has been appointed, the credit manager shall have the
| ||
general supervision of all loans and lines of credit to | ||
members.
| ||
(Source: P.A. 91-929, eff. 12-15-00.)
| ||
(205 ILCS 305/32) (from Ch. 17, par. 4433)
| ||
Sec. 32. Meetings of credit committee Credit Committee . If | ||
a credit committee Credit Committee has been
appointed by the | ||
board, the provisions of this Section shall apply. The credit | ||
committee
Credit Committee shall meet
as often as the | ||
operations of the credit union require and not less frequently
| ||
than once a month to consider applications for loans and lines | ||
of credit.
Unless a greater percentage is required in the | ||
credit union's bylaws, a
majority of the
credit committee | ||
Credit Committee shall constitute a quorum. No loan shall be | ||
made unless
it is approved, in writing, by a majority of the |
committee Committee who are present
at a meeting at which a | ||
quorum is present and at which the application is
considered. | ||
The credit committee Credit Committee shall report to the | ||
directors Directors at each board
Board meeting on all meetings | ||
held and actions taken since the last board Board
meeting.
| ||
(Source: P.A. 91-929, eff. 12-15-00.)
| ||
(205 ILCS 305/33) (from Ch. 17, par. 4434)
| ||
Sec. 33. Credit manager.
| ||
(1) The credit committee Credit Committee may or, if no | ||
credit committee Credit
Committee has been appointed, the board | ||
of directors Board of Directors shall appoint a credit
manager | ||
who shall be empowered to approve or disapprove loans and lines
| ||
of credit under conditions prescribed by the board of directors | ||
Board of Directors . The credit committee Credit
Committee or | ||
credit manager may appoint one or more loan officers with the
| ||
power to approve loans and lines of credit, subject to such | ||
limitations
or conditions as may be prescribed by the board of | ||
directors Board of Directors . The credit
manager and any loan | ||
officers appointed by the credit committee Credit Committee or | ||
the credit
manager shall keep written records of all | ||
transactions and shall report,
in writing, to the credit | ||
committee Credit Committee if a credit committee Credit | ||
Committee has been appointed,
otherwise
to the directors | ||
Directors at each board Board meeting.
| ||
(2) Applications for loans or lines of credit not approved |
by a loan officer
shall be reviewed and acted upon by the | ||
credit committee Credit Committee or credit manager.
| ||
(3) The loan officers must keep written records of all | ||
loans or lines
of credit granted or refused and any other | ||
transactions and submit a report
to the credit committee Credit | ||
Committee or credit manager at least once each month.
| ||
(Source: P.A. 91-929, eff. 12-15-00.)
| ||
(205 ILCS 305/34) (from Ch. 17, par. 4435)
| ||
Sec. 34. Duties of supervisory committee Supervisory | ||
Committee . | ||
(1) The supervisory committee Supervisory Committee
shall | ||
make or cause to be made an annual internal audit of the books | ||
and
affairs of the credit union to determine that the credit | ||
union's accounting
records and reports are prepared promptly | ||
and accurately reflect operations
and results, that internal | ||
controls are established and effectively
maintained to | ||
safeguard the assets of the credit union, and that the
| ||
policies, procedures and practices established by the board of | ||
directors Board of Directors
and management of the credit union | ||
are being properly administered. The supervisory committee
| ||
Supervisory Committee shall submit a report of that audit to | ||
the board of directors Board
of Directors and a summary of that | ||
report to the members at the next annual
meeting of the credit | ||
union. It shall make or cause to be made such
supplementary | ||
audits as it deems necessary or as are required by the |
Secretary
Director or by the board of directors Board of | ||
Directors , and submit reports of these
supplementary audits to | ||
the Secretary Director or board of directors Board of Directors | ||
as applicable.
If the supervisory committee Supervisory | ||
Committee has not engaged a public accountant registered
by the | ||
Department of Financial and Professional Regulation to make the | ||
internal audit,
the supervisory committee Supervisory | ||
Committee or other officials of the credit union shall not
| ||
indicate or in any manner imply that such audit has been | ||
performed by a
public accountant or that the audit represents | ||
the independent opinion of a
public accountant. The supervisory | ||
committee Committee must retain its tapes and working papers
of | ||
each internal audit for inspection by the Department. The | ||
report of this
audit must be made on a form approved by the | ||
Secretary Director . A copy of the report
must be promptly | ||
mailed to the Secretary Director .
| ||
(2) The supervisory committee Supervisory Committee shall | ||
make or cause to be made at least
once each year a reasonable | ||
percentage verification of members' share and
loan accounts, | ||
consistent with rules promulgated by the Secretary Director .
| ||
(3) The supervisory committee Supervisory Committee of a | ||
credit union with assets of
$5,000,000 or more shall engage a | ||
public accountant registered by the
Department of Financial and | ||
Professional Regulation to perform an annual external
| ||
independent audit of the credit union's financial statements in | ||
accordance
with generally accepted auditing standards. The |
supervisory committee Supervisory Committee of a
credit union | ||
with assets of $3,000,000 or more, but less than $5,000,000,
| ||
shall engage a public accountant registered by the Department | ||
of Financial and
Professional Regulation to perform an external | ||
independent audit of the
credit union's financial statements in | ||
accordance with generally accepted
auditing standards at least | ||
once every 3 years. A copy of an external
independent audit | ||
shall be completed and mailed to the Secretary Director no | ||
later than 90 days after December 31 of each year; provided | ||
that a credit union or group of credit unions may obtain an | ||
extension of the due date upon application to and receipt of | ||
written approval from the Secretary Director . If the
annual | ||
internal audit of such a credit union is conducted by a public
| ||
accountant registered by the Department of Financial and | ||
Professional Regulation and the
annual internal audit is done | ||
in conjunction with the credit union's annual
external audit, | ||
the requirements of subsection (1) of this Section shall
be | ||
deemed met.
| ||
(4) In determining the appropriate balance in the allowance | ||
for loan losses account, a credit union may determine its | ||
historical loss rate using a defined period of time of less | ||
than 5 years, provided that: | ||
(A) the methodology used to determine the defined | ||
period of time is formally documented in the credit union's | ||
policies and procedures and is appropriate to the credit | ||
union's size, business strategy, and loan portfolio |
characteristics and the economic environment of the areas | ||
and employers served by the credit union; | ||
(B) supporting documentation is maintained for the | ||
technique used to develop the credit union loss rates, | ||
including the period of time used to accumulate historical | ||
loss data and the factors considered in establishing the | ||
time frames; and | ||
(C) the external auditor conducting the credit union's | ||
financial statement audit has analyzed the methodology | ||
employed by the credit union and concludes that the | ||
financial statements, including the allowance for loan | ||
losses, are fairly stated in all material respects in | ||
accordance with U.S. Generally Accepted Accounting | ||
Principles, as promulgated by the Financial Accounting | ||
Standards Board. | ||
(5) A majority of the members of the supervisory committee | ||
Supervisory Committee
shall constitute a quorum.
| ||
(Source: P.A. 96-141, eff. 8-7-09; 96-963, eff. 7-2-10.)
| ||
(205 ILCS 305/35) (from Ch. 17, par. 4436)
| ||
Sec. 35. Suspension and removal of officials.
| ||
(1) The supervisory committee Supervisory Committee ,
by a | ||
unanimous vote of the whole committee, may suspend any member | ||
of the credit committee
Credit Committee or the credit manager | ||
if no credit committee Credit Committee has been
appointed. The | ||
supervisory committee Supervisory Committee shall report such |
action to
the board of directors Board of Directors for | ||
appropriate action.
| ||
(2) The supervisory committee Supervisory Committee , by a | ||
unanimous vote of the whole committee,
may suspend any officer | ||
or member of the board of directors Board of Directors until | ||
the next
members' meeting, which shall be held not less than 7 | ||
nor more than 21 days
after such suspension. At such meeting, | ||
the suspension shall be acted upon
by the members, who shall | ||
either confirm or reject it by majority vote.
| ||
(Source: P.A. 91-929, eff. 12-15-00.)
| ||
(205 ILCS 305/36) (from Ch. 17, par. 4437)
| ||
Sec. 36. Calling of special meetings Special Meetings . The | ||
supervisory committee Supervisory Committee , by a
majority | ||
vote, may, after written notice of its intended action is first
| ||
given to the board of directors Board of Directors , and the | ||
Department, call a special meeting
of the members to consider | ||
any violation of this Act, the credit union's articles of | ||
incorporation
Articles of Incorporation or bylaws, or any | ||
practice of the credit union
deemed by the supervisory | ||
committee Supervisory Committee to be unsafe or unauthorized.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/37) (from Ch. 17, par. 4438)
| ||
Sec. 37. Shares and classes of shares Classes of Shares . | ||
(1) The capital of a credit union
shall consist of the |
payments made by members for shares of the credit union.
| ||
(2) Shares may be subscribed to, paid for and transferred | ||
in such manner
as the bylaws prescribe.
| ||
(3) The board of directors Board of Directors may establish | ||
different classes of share accounts
classified in relation to | ||
different rights, restrictions and dividend rates.
| ||
(4) A certificate, passbook, periodic statement of account | ||
or other written
evidence of ownership shall be issued to | ||
denote ownership of shares in a credit union.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/38) (from Ch. 17, par. 4439)
| ||
Sec. 38. Dividends. The board of directors Board of | ||
Directors may declare a dividend to
be paid periodically from | ||
net earnings or undivided earnings and distributed
ratably | ||
among holders of share accounts of the same class as provided | ||
in
the bylaws. Dividends may not be declared or paid at a time | ||
when the credit
union is insolvent or its net assets are less | ||
than its stated capital or
when the payment thereof would | ||
render the credit union insolvent or reduce
its net assets | ||
below its stated capital.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/39) (from Ch. 17, par. 4440)
| ||
Sec. 39. Special purpose share accounts Purpose Share | ||
Accounts . If provided for in and consistent
with the bylaws, |
Christmas clubs, vacation clubs and other special purpose
share | ||
accounts may be established and offered under conditions and | ||
restrictions
established by the board of directors Board of | ||
Directors .
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/40) (from Ch. 17, par. 4441)
| ||
Sec. 40. Shares to minors Minors . Shares may be issued in | ||
the name of a minor
or in the name of a custodian under the | ||
Illinois Uniform Transfers to Minors
Act, as amended. If shares | ||
are issued in the name of a minor, redemption
of any part or | ||
all of the shares by payment to the minor or upon order of the
| ||
minor of the amount of
the shares and any declared dividends | ||
releases the credit union from all
obligations to the minor as | ||
to the shares redeemed. Further, if shares
are issued in the | ||
name of a minor, the minor shall be considered as being
of the | ||
age of majority and having contractual capacity.
| ||
(Source: P.A. 93-640, eff. 12-31-03.)
| ||
(205 ILCS 305/41) (from Ch. 17, par. 4442)
| ||
Sec. 41. Joint accounts Accounts . Shares shall be issued in | ||
the name of the owner
and may be issued in the name of 2 or more | ||
persons in joint tenancy, or
in survivorship, in which case | ||
payment may be made, in whole or in part,
to any of the named | ||
persons whether the others are living or dead, if an
agreement | ||
permitting such payment was signed and dated by all persons |
when
the shares were issued or thereafter. Only one of the | ||
persons must have
the common bond of association, community or | ||
occupation specified in this
Act and only that person may vote | ||
in a meeting of the members, obtain loans,
hold office or be | ||
required to pay an entrance fee.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/43.1)
| ||
Sec. 43.1. Enforcement of child support. | ||
(a) Any credit
union governed by this Act shall encumber or | ||
surrender accounts or assets
held by the credit union on behalf | ||
of any responsible relative who is subject
to
a child support | ||
lien, upon notice of the lien or levy of the Department of | ||
Healthcare and Family Services (formerly Illinois
Department | ||
of Public Aid) or its successor agency pursuant to Section | ||
10-25.5
of the Illinois Public Aid Code, or upon notice of | ||
interstate lien from any
other state's agency responsible for | ||
implementing the child support enforcement
program set forth in | ||
Title IV, Part D of the Social Security Act.
| ||
(b) Within 90 days after receiving notice from the | ||
Department of Healthcare and Family Services (formerly
| ||
Department of Public Aid) that the Department has adopted a | ||
child support enforcement debit authorization form as required | ||
under the Illinois Public Aid Code, each credit union governed | ||
by this Act shall take all appropriate steps to implement the | ||
use of the form in relation to accounts held by the credit |
union. Upon receiving from the Department of Healthcare and | ||
Family Services (formerly Department of Public Aid) a copy of a | ||
child support enforcement debit authorization form signed by an | ||
obligor, a credit union holding an account on behalf of the | ||
obligor shall debit the account and transfer the debited | ||
amounts to the State Disbursement Unit according to the | ||
instructions in the child support enforcement debit | ||
authorization form.
| ||
(Source: P.A. 95-331, eff. 8-21-07.)
| ||
(205 ILCS 305/44) (from Ch. 17, par. 4445)
| ||
Sec. 44. Share accounts Accounts ; garnishment Garnishment . | ||
A credit union may be subject
to garnishment proceedings | ||
concerning the share accounts of its members.
| ||
(Source: P.A. 87-390.)
| ||
(205 ILCS 305/45) (from Ch. 17, par. 4446)
| ||
Sec. 45. Reduction in shares Shares . Whenever the losses of | ||
any credit union,
resulting from a depreciation in value of its | ||
loans or investments or otherwise,
exceed its undivided | ||
earnings and reserve fund so that the estimated value
of its | ||
assets is less than the total amount due the holders of share | ||
accounts,
the credit union, may, by a majority vote of the | ||
entire membership, with
approval by the Department, order a | ||
reduction in the shares of each of its
shareholders to divide | ||
the loss proportionately among the holders of shares
in |
accordance with such terms and conditions as the Department may | ||
prescribe.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/46) (from Ch. 17, par. 4447)
| ||
Sec. 46. Loans and interest rate.
| ||
(1) A credit union may make loans
to its members for such | ||
purpose and upon such security and terms, including
rates of | ||
interest, as the credit committee Credit Committee , credit | ||
manager, or loan officer
approves.
Notwithstanding the | ||
provisions of any other law in connection with extensions
of | ||
credit, a credit union may elect to
contract for and receive | ||
interest and fees and other charges for extensions of
credit | ||
subject only to the provisions of this Act and rules | ||
promulgated under
this Act, except that extensions of credit | ||
secured by residential real estate
shall be subject to the laws | ||
applicable thereto.
The rates of interest to be charged on | ||
loans to members shall be
set by the board of directors Board | ||
of Directors of each individual credit union in accordance with | ||
Section 30 of this Act and such
rates may be less than, but may | ||
not exceed, the maximum rate set forth in
this Section. A | ||
borrower may repay his loan prior to maturity, in whole or
in | ||
part, without penalty. The credit contract may provide for the | ||
payment
by the member and receipt by the credit union of all | ||
costs and
disbursements, including reasonable attorney's fees | ||
and collection agency
charges, incurred by the credit union to |
collect or enforce the debt in the
event of a delinquency by | ||
the member, or in the event of a breach of any
obligation of | ||
the member under the credit contract. A contingency or
hourly | ||
arrangement established under an agreement entered into by a | ||
credit
union with an attorney or collection agency to collect a | ||
loan of a member
in default shall be presumed prima facie | ||
reasonable.
| ||
(2) Credit unions may make loans based upon the security of | ||
any
interest or equity in real estate, subject to rules and | ||
regulations
promulgated by the Secretary Director . In any | ||
contract or loan which
is secured by a mortgage, deed of
trust, | ||
or conveyance in the nature of a mortgage, on residential real
| ||
estate, the interest which is computed, calculated, charged, or | ||
collected
pursuant to such contract or loan, or pursuant to any | ||
regulation or rule
promulgated pursuant to this Act, may not be | ||
computed, calculated, charged
or collected for any period of | ||
time occurring after the date on which the
total indebtedness, | ||
with the exception of late payment penalties, is paid
in full.
| ||
For purposes of this subsection (2) of this Section 46, a | ||
prepayment
shall mean the payment of the total indebtedness, | ||
with the exception of
late payment penalties if incurred or | ||
charged, on any date before the date
specified in the contract | ||
or loan agreement on which the total indebtedness
shall be paid | ||
in full, or before the date on which all payments, if timely
| ||
made, shall have been made. In the event of a prepayment of the
| ||
indebtedness which is made on a date
after the date on which |
interest on the indebtedness was last computed,
calculated, | ||
charged, or collected but before the next date on which | ||
interest
on the indebtedness was to be calculated, computed, | ||
charged, or collected,
the lender may calculate, charge and | ||
collect interest on the indebtedness
for the period which | ||
elapsed between the date on which the prepayment is
made and | ||
the date on which interest on the indebtedness was last | ||
computed,
calculated, charged or collected at a rate equal to | ||
1/360 of the annual
rate for each day which so elapsed, which | ||
rate shall be applied to the
indebtedness outstanding as of the | ||
date of prepayment. The lender shall
refund to the borrower any | ||
interest charged or collected which exceeds that
which the | ||
lender may charge or collect pursuant to the preceding | ||
sentence.
The provisions of this amendatory Act of 1985 shall | ||
apply only to contracts
or loans entered into on or after the | ||
effective date of this amendatory
Act.
| ||
(3) Notwithstanding any other provision of this Act, a | ||
credit union
authorized under this Act to make loans secured by | ||
an interest or equity in
real estate may engage in making | ||
"reverse mortgage" loans to persons for
the purpose of making | ||
home improvements or repairs, paying insurance
premiums or | ||
paying real estate taxes on the homestead properties
of such | ||
persons. If made, such loans shall be made on such terms and
| ||
conditions as the credit union shall determine and as shall be | ||
consistent
with the provisions of this Section and such rules | ||
and regulations as the Secretary
Director shall promulgate |
hereunder. For purposes of this Section, a
"reverse mortgage" | ||
loan shall be a loan extended on the basis of existing
equity | ||
in homestead property and secured by a mortgage on such | ||
property.
Such loans shall be repaid upon the sale of the | ||
property or upon the death
of the owner or, if the property is | ||
in joint tenancy, upon the death of the
last surviving joint | ||
tenant who had such an interest in the property at the
time the | ||
loan was initiated, provided, however, that the credit union | ||
and
its member may by mutual agreement, establish other | ||
repayment terms. A
credit union, in making a "reverse mortgage" | ||
loan, may add deferred
interest to principal or otherwise | ||
provide for the charging of interest or
premiums on such | ||
deferred interest. "Homestead" property, for purposes of
this | ||
Section, means the domicile and contiguous real estate owned | ||
and
occupied by the mortgagor. The Director shall promulgate | ||
rules and
regulations under this Section; provided that such | ||
rules and regulations
need not be promulgated jointly with any | ||
other administrative agency of this State.
| ||
(4) Notwithstanding any other provisions of this Act, a | ||
credit union
authorized under this Act to make loans secured by | ||
an interest or equity
in real property may engage in making | ||
revolving credit loans secured by
mortgages or deeds of trust | ||
on such real property or by security
assignments of beneficial | ||
interests in land trusts.
| ||
For purposes of this Section, "revolving credit" has the | ||
meaning defined
in Section 4.1 of the Interest Act.
|
Any mortgage or deed of trust given to secure a revolving | ||
credit loan may,
and when so expressed therein shall, secure | ||
not only the existing indebtedness
but also such future | ||
advances, whether such advances are obligatory or to
be made at | ||
the option of the lender, or otherwise, as are made within | ||
twenty
years from the date thereof, to the same extent as if | ||
such future advances
were made on the date of the execution of | ||
such mortgage or deed of trust,
although there may be no | ||
advance made at the time of execution of such mortgage
or other | ||
instrument, and although there may be no indebtedness | ||
outstanding
at the time any advance is made. The lien of such | ||
mortgage or deed of trust,
as to third persons
without actual | ||
notice thereof, shall be valid as to all such indebtedness
and | ||
future advances form the time said mortgage or deed of trust is | ||
filed
for record in the office of the recorder Recorder of | ||
deeds Deeds or the registrar Registrar of titles Titles
of the | ||
county where the real property described therein is located. | ||
The
total amount of indebtedness that may be so secured may | ||
increase or decrease
from time to time, but the total unpaid | ||
balance so secured at any one time
shall not exceed a maximum | ||
principal amount which must be specified in such
mortgage or | ||
deed of trust, plus interest thereon, and any disbursements
| ||
made for the payment of taxes, special assessments, or | ||
insurance on said
real property, with interest on such | ||
disbursements.
| ||
Any such mortgage or deed of trust shall be valid and have |
priority over
all subsequent liens and encumbrances, including | ||
statutory liens, except
taxes and assessments levied on said | ||
real property.
| ||
(5) Compliance with federal or Illinois preemptive laws or | ||
regulations
governing loans made by a credit union chartered | ||
under this Act shall
constitute compliance with this Act.
| ||
(6) Credit unions may make residential real estate mortgage | ||
loans on terms and conditions established by the United States | ||
Department of Agriculture through its Rural Development | ||
Housing and Community Facilities Program. The portion of any | ||
loan in excess of the appraised value of the real estate shall | ||
be allocable only to the guarantee fee required under the | ||
program. | ||
(Source: P.A. 95-98, eff. 8-13-07; 96-141, eff. 8-7-09.)
| ||
(205 ILCS 305/47) (from Ch. 17, par. 4448)
| ||
Sec. 47. Loan applications Applications . Every application | ||
for a loan shall be made
in the manner prescribed by the credit | ||
committee Credit Committee , credit manager, or loan
officer. | ||
The application shall state the purpose for which the
loan is | ||
desired, and the security, if any, offered. Each loan shall be | ||
evidenced
by a written document or by a record electronically | ||
stored or generated by any electronic or computer-generated | ||
process that accurately reproduces or records the agreement, | ||
transaction, act, occurrence, or event. The signature of any | ||
party to the loan includes any symbol executed or adopted, or |
any security procedure employed or adopted, using electronic | ||
means or otherwise, by or on behalf of a person with intent to | ||
authenticate a record.
| ||
(Source: P.A. 94-150, eff. 7-8-05.)
| ||
(205 ILCS 305/48) (from Ch. 17, par. 4449)
| ||
Sec. 48. Loan limit Limit . Within any limitations set forth | ||
in the bylaws of
the credit union, the board of directors Board | ||
of Directors may place a limit upon the aggregate
amount to be | ||
loaned to or cosigned for by any one member. Such loan limits
| ||
shall be subject to rules and regulations promulgated by the | ||
Secretary Director . Unless
the credit union's bylaws provide | ||
otherwise, no loan shall be made to any
member in an aggregate | ||
amount in excess of $200, or 10% of the credit union's
| ||
unimpaired capital
and surplus, whichever is greater.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/49) (from Ch. 17, par. 4450)
| ||
Sec. 49. Security. In addition to generally accepted types | ||
of security,
the endorsement of a note by a surety, comaker or | ||
guarantor, or assignment
of shares or wages, in a manner | ||
consistent with the laws of this State,
shall be deemed | ||
security within the meaning of this Act. A credit union
shall | ||
give each surety, guarantor or comaker a copy of the instrument
| ||
evidencing the indebtedness. The adequacy of any security shall | ||
be
determined by the credit committee Credit Committee , credit |
manager or loan officer, subject
to this Act and the bylaws of | ||
the credit union. The surety, guarantor or
comaker may, but | ||
need not, be a member of the credit union making the loan.
| ||
(Source: P.A. 85-1273.)
| ||
(205 ILCS 305/51) (from Ch. 17, par. 4452)
| ||
Sec. 51. Other loan programs Loan Programs .
| ||
(1) Subject to such rules and regulations
as the Secretary | ||
Director may promulgate, a credit union may participate in | ||
loans
to credit union members jointly with other credit unions, | ||
corporations, or
financial institutions. An originating credit | ||
union may originate
loans only to its own members. A | ||
participating credit union that is
not the originating lender | ||
may participate in loans made to its own members or
to members | ||
of another participating credit union.
"Originating lender" | ||
means the participating credit union with which the member
| ||
contracts. A master participation agreement must be properly | ||
executed, and the
agreement must include provisions for | ||
identifying, either through documents
incorporated by | ||
reference or directly in the agreement, the participation loan
| ||
or loans prior to their sale.
| ||
(2) Any credit union with assets of $500,000 or more may | ||
loan to its members
under the State Scholarships Law or other | ||
scholarship programs which are
subject to a federal or state | ||
law providing 100% repayment guarantee.
| ||
(3) A credit union may purchase the conditional sales
|
contracts, notes
and similar instruments which evidence an | ||
indebtedness of its members. In the management of its assets, | ||
liabilities, and liquidity, a credit union may purchase the | ||
conditional sales contracts, notes, and other similar | ||
instruments that evidence the consumer indebtedness of the | ||
members of another credit union. "Consumer indebtedness" means | ||
indebtedness incurred for personal, family, or household | ||
purposes.
| ||
(4) With approval of the board of directors Board of | ||
Directors , a credit union may make loans,
either on its own or | ||
jointly with other credit unions, corporations or
financial
| ||
institutions, to credit union organizations; provided, that | ||
the aggregate
amount of all such loans outstanding shall not at | ||
any time exceed the greater
of 3% of the paid-in and unimpaired | ||
capital and surplus of the credit
union or the amount | ||
authorized for federal credit unions.
| ||
(Source: P.A. 95-98, eff. 8-13-07.)
| ||
(205 ILCS 305/52) (from Ch. 17, par. 4453)
| ||
Sec. 52. Loans to directors, officers, credit committee | ||
Credit Committee , credit manager,
and supervisory
committee | ||
Supervisory
Committee members. A credit union may make loans | ||
to its directors,
officers, credit committee Credit Committee | ||
members, credit manager, and supervisory
committee Supervisory
| ||
Committee members, provided
that the loan complies with all | ||
lawful requirements under this Act with
respect to loans to |
other borrowers. No loan may be made to or cosigned
by any | ||
director, officer, credit committee Credit Committee member, | ||
credit manager if no credit committee
Credit Committee has been | ||
appointed, or supervisory
committee Supervisory Committee
| ||
member which would cause the aggregate amount of all loans then | ||
outstanding
to or cosigned by all directors, officers, credit | ||
committee Credit Committee members, credit
manager if no credit | ||
committee Credit Committee has been appointed, or supervisory
| ||
committee
Supervisory Committee members to exceed 20% of the | ||
unimpaired capital and
surplus of the credit union.
| ||
(Source: P.A. 91-929, eff. 12-15-00.)
| ||
(205 ILCS 305/53) (from Ch. 17, par. 4454)
| ||
Sec. 53. Loans to credit unions Credit Unions . A credit | ||
union may make loans to other
credit unions if so provided and | ||
within the limits set forth in its bylaws Bylaws .
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/54) (from Ch. 17, par. 4455)
| ||
Sec. 54. Loans to associations Associations . A credit union | ||
may make loans to
any credit union association or corporation, | ||
of which the credit union is
a member or shareholder, except | ||
that the aggregate of all such loans shall
not exceed 5% of the | ||
assets of the credit union.
| ||
(Source: P.A. 81-329.)
|
(205 ILCS 305/55) (from Ch. 17, par. 4456)
| ||
Sec. 55. Insurance for members Members .
| ||
(1) A credit union may purchase or make
available insurance | ||
for its members.
| ||
(2) A credit union may enter into cooperative marketing | ||
arrangements to
facilitate its members' voluntary purchase of | ||
insurance including, but not
by way of limitation, life | ||
insurance, disability insurance, accident and
health | ||
insurance, property insurance, liability insurance and legal | ||
expense
insurance.
| ||
(Source: P.A. 90-41, eff. 10-1-97.)
| ||
(205 ILCS 305/56) (from Ch. 17, par. 4457)
| ||
Sec. 56. Liability insurance Insurance for directors | ||
Directors and officers Officers . A credit union
may purchase | ||
and maintain insurance on behalf of any person who is or was
a | ||
director Director , officer Officer , committee member, employee | ||
or agent of the credit union
as a director, officer, committee | ||
member, employee or agent of another corporation,
partnership, | ||
joint venture, trust or other enterprise against any liability
| ||
asserted against such person incurred by such person in any | ||
such capacity
or arising out of such person's status as such, | ||
whether or not the credit
union would have the power to | ||
indemnify such person against such liability.
| ||
(Source: P.A. 81-329.)
|
(205 ILCS 305/57) (from Ch. 17, par. 4458)
| ||
Sec. 57. Group purchasing Purchasing . A credit union may, | ||
consistent with rules
and regulations promulgated by the | ||
Secretary Director , enter into cooperative marketing
| ||
arrangements to facilitate its members' voluntary purchase of | ||
such goods
and services as are in the interest of improving | ||
economic and social conditions
of the members.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/58) (from Ch. 17, par. 4459)
| ||
Sec. 58. Share insurance.
| ||
(1) Each credit union operating in this State shall insure | ||
its share
accounts with the NCUA, under 12 U.S.C. 1781 to 1790 | ||
et seq. (Sec. 201 et
seq. of
the Federal Credit Union Act) or | ||
with such other insurers as may be jointly
approved by the | ||
Secretary Director of Financial and Professional Regulation | ||
Institutions and the Director of
Insurance. Each approved | ||
insurer shall be found to be financially sound and to
employ | ||
approved actuarial practices. The Secretary Director shall | ||
determine that a firm
commitment to insure share accounts has | ||
been issued before a charter may be
granted for a new credit | ||
union. Application for such insurance by credit
unions in | ||
existence on the effective date of this Section shall be made | ||
not
later than December 31, 1981 and such credit unions shall | ||
receive a commitment
to insure share accounts by December 31, | ||
1984.
|
(2) A credit union which has been denied a commitment of | ||
insurance of
accounts shall either dissolve, merge with another | ||
credit union, or apply
in writing, within 30 days of denial, to | ||
the Secretary Director for additional time
to obtain an | ||
insurance commitment. The Secretary Director may grant up to 24 | ||
months
additional time upon satisfactory evidence that the | ||
credit union is making
a substantial effort to achieve the | ||
conditions precedent to issuance of the
commitment.
| ||
(3) The Secretary Director shall cooperate with the NCUA or | ||
other approved insurers
by furnishing copies of financial and | ||
examination reports and other information
bearing on the | ||
financial condition of any credit union.
| ||
(Source: P.A. 90-655, eff. 7-30-98.)
| ||
(205 ILCS 305/59) (from Ch. 17, par. 4460)
| ||
Sec. 59. Investment of funds Funds .
| ||
(a) Funds not used in loans to members may be
invested, | ||
pursuant to subsection (7) of Section 30 of this Act, and
| ||
subject to Departmental rules and
regulations:
| ||
(1) In securities, obligations or other instruments of | ||
or issued by or
fully guaranteed as to principal and | ||
interest by the United States of America
or any agency | ||
thereof or in any trust or trusts established for investing
| ||
directly or collectively in the same;
| ||
(2) In obligations of any state of the United States, | ||
the District of
Columbia, the Commonwealth of Puerto Rico, |
and the several
territories organized
by Congress, or any | ||
political subdivision thereof; however, a credit union
may
| ||
not invest more than 10% of its unimpaired capital and | ||
surplus in the
obligations of one issuer, exclusive of | ||
general obligations of the issuer, and
investments in | ||
municipal securities must be limited to securities rated in | ||
one
of the 4
highest rating categories by a nationally | ||
recognized statistical rating
organization;
| ||
(3) In certificates of deposit or passbook type | ||
accounts issued by a state
or national bank, mutual savings | ||
bank or savings and loan association; provided
that such | ||
institutions have their accounts insured by the Federal | ||
Deposit
Insurance Corporation or the Federal Savings and | ||
Loan Insurance Corporation;
but provided, further, that a | ||
credit union's investment in an account in
any one | ||
institution may exceed the insured limit on accounts;
| ||
(4) In shares, classes of shares or share certificates | ||
of other credit
unions, including, but not limited to | ||
corporate credit unions; provided
that such credit unions | ||
have their members' accounts insured by the NCUA
or other | ||
approved insurers, and that if the members' accounts are so | ||
insured,
a credit union's investment may exceed the insured | ||
limit on accounts;
| ||
(5) In shares of a cooperative society organized under | ||
the laws of this
State or the laws of the United States in | ||
the total amount not exceeding
10% of the unimpaired |
capital and surplus of the credit union; provided
that such | ||
investment shall first be approved by the Department;
| ||
(6) In obligations of the State of Israel, or | ||
obligations fully guaranteed
by the State of Israel as to | ||
payment of principal and interest;
| ||
(7) In shares, stocks or obligations of other financial | ||
institutions in
the total amount not exceeding 5% of the | ||
unimpaired capital and surplus
of the credit union;
| ||
(8) In federal funds and bankers' acceptances;
| ||
(9) In shares or stocks of Credit Union Service | ||
Organizations in the
total amount not exceeding the greater | ||
of 3% of the unimpaired
capital and surplus of the
credit | ||
union or the amount authorized for federal credit unions.
| ||
(b) As used in this Section, "political subdivision" | ||
includes, but is not
limited to, counties,
townships, cities, | ||
villages, incorporated towns, school districts, educational
| ||
service regions, special road districts, public water supply | ||
districts, fire
protection districts, drainage districts, | ||
levee districts, sewer districts,
housing authorities, park | ||
districts, and any
agency, corporation, or instrumentality of a | ||
state or its political
subdivisions, whether now or hereafter | ||
created and whether herein specifically
mentioned or not.
| ||
(c) A credit union investing to fund an employee benefit | ||
plan obligation is not subject to the investment limitations of | ||
this Act and this Section and may purchase an investment that | ||
would otherwise be impermissible if the investment is directly |
related to the credit union's obligation under the employee | ||
benefit plan and the credit union holds the investment only for | ||
so long as it has an actual or potential obligation under the | ||
employee benefit plan.
| ||
(Source: P.A. 95-124, eff. 8-13-07.)
| ||
(205 ILCS 305/60) (from Ch. 17, par. 4461)
| ||
Sec. 60. Reserves. | ||
(A) At the end of each accounting period the gross
income | ||
shall be determined. From this amount, there shall be set | ||
aside,
as a regular reserve against losses on loans and risk | ||
assets sums in accordance
with the following schedule:
| ||
(1) A credit union in operation for more than four | ||
years and having assets
of $500,000 or more shall set aside | ||
(A) 10 per centum of gross income until
the regular reserve | ||
shall equal 4 per centum of the total outstanding loans
and | ||
risk assets, then (B) 5 per centum of gross income until | ||
the regular
reserve shall equal 6 per centum of the total | ||
outstanding loans and risk assets.
| ||
(2) A credit union in operation less than four years or | ||
having assets
of less than $500,000 shall set aside (A) 10 | ||
per centum of gross income
until the regular reserve shall | ||
equal 7 1/2 per centum of the total outstanding
loans and | ||
risk assets, then (B) 5 per centum of gross income until | ||
the regular
reserve shall equal 10 per centum of the total | ||
outstanding loans and risk assets.
|
(3) Whenever the regular reserve falls below the stated | ||
per centum of
the total of outstanding loans and risk | ||
assets, it shall be replenished
by regular contributions in | ||
such amounts as may be needed to maintain the
stated | ||
reserve goals.
| ||
(B) The Secretary Director may decrease the reserve | ||
requirement set forth in
subsection (A) of this Section | ||
when in his or her opinion such a decrease is
necessary or | ||
desirable. The Secretary Director may also require special | ||
reserves to
protect the interest of members.
| ||
(C) For the purpose of establishing the reserves | ||
required by this Section
all assets except the following | ||
are risk assets:
| ||
(1) Cash on hand;
| ||
(2) Real estate;
| ||
(3) Depreciated value of buildings, furnishings | ||
and equipment;
| ||
(4) Loans to students insured under Title IV, part | ||
B of the Higher Education
Act of 1965 or the Higher | ||
Education Student Assistance Law;
| ||
(5) Loans insured under Title 1 of the National | ||
Housing Act by the Federal
Housing Administration;
| ||
(6) Funds invested as authorized under Section 59 | ||
of this Act; and
| ||
(7) Loans fully secured by a pledge of shares in | ||
the lending credit
union equal to and maintained to at |
least the amount of the loan outstanding.
| ||
(Source: P.A. 85-249.)
| ||
(205 ILCS 305/61) (from Ch. 17, par. 4462)
| ||
Sec. 61. Suspension.
| ||
(1) If the Secretary Director determines that any credit
| ||
union is bankrupt, insolvent, impaired or that it has willfully | ||
violated
this Act, or is operating in an unsafe or unsound | ||
manner, he shall issue
an order temporarily suspending the | ||
credit union's operations for not more than
60 days. The board | ||
of directors Board of Directors shall be given notice by
| ||
registered or certified mail of such suspension, which notice | ||
shall include
the reasons for such suspension and a list of | ||
specific violations of the
Act. The Secretary Director shall | ||
also notify
the members of the credit union board Credit Union | ||
Board of advisors Advisors of any suspension. The
Director may | ||
assess to the credit union a penalty, not to exceed the
| ||
regulatory fee as set forth in this Act, to
offset costs | ||
incurred in determining the condition of the credit union's
| ||
books and records.
| ||
(2) Upon receipt of such suspension notice, the credit | ||
union shall cease
all operations, except those authorized by | ||
the Secretary Director , or the Secretary Director may
appoint a | ||
manager-trustee Manager-Trustee to operate the credit union | ||
during the suspension
period. The board of directors Board of | ||
Directors
shall, within 10 days of the receipt of the |
suspension notice,
file with the Secretary Director a
reply to | ||
the suspension notice by
submitting a corrective plan of action | ||
or a
request for formal hearing on said action pursuant to the | ||
Department's
rules and regulations.
| ||
(3) Upon receipt from the suspended credit union of | ||
evidence that the
conditions causing the order of suspension | ||
have been corrected, and after
determining that the proposed | ||
corrective plan of action submitted is
factual, the Secretary | ||
Director shall revoke
the suspension notice, permit the credit | ||
union to resume normal operations,
and notify the board Board | ||
of credit union advisors Credit Union Advisors of such action.
| ||
(4) If the Secretary Director determines that the proposed | ||
corrective plan of action
will
not correct such conditions,
he | ||
may take possession and control of the credit union. The | ||
Secretary
Director may permit the credit union to operate under | ||
his direction and
control and may appoint a manager-trustee | ||
Manager-Trustee to manage its affairs until such
time as the | ||
condition requiring such action has been remedied, or in the | ||
case
of insolvency or danger of insolvency where an emergency | ||
requiring expeditious
action exists, the Secretary Director | ||
may involuntarily merge the credit union without
the
vote of | ||
the suspended credit union's board of directors Board of | ||
Directors or members (hereafter
involuntary merger)
subject
to | ||
rules promulgated by the Secretary
Director . No
credit union | ||
shall be required to serve as a surviving credit union in any
| ||
involuntary merger. Upon the request of the Secretary Director , |
a credit union by a vote
of a majority of its board of | ||
directors Board of Directors may elect to serve as a surviving
| ||
credit union in an involuntary merger. If the Secretary | ||
Director
determines
that
the suspended
credit union should be | ||
liquidated, he may appoint a liquidating
agent Liquidating
| ||
Agent and require of that person such bond and security as he | ||
considers proper.
| ||
(5) Upon receipt of a request for a formal hearing, the | ||
Secretary Director shall
conduct proceedings pursuant to rules | ||
and regulations of the Department. The credit union may request | ||
the appropriate court
to stay execution of such action. | ||
Involuntary liquidation or involuntary
merger may not be | ||
ordered
prior to the conclusion of suspension procedures | ||
outlined in this Section.
| ||
(6) If, within the suspension period, the credit union | ||
fails to answer
the suspension notice or fails to request a | ||
formal hearing, or both,
the Secretary Director may then (i) | ||
involuntarily merge the credit union if the credit
union is | ||
insolvent or in danger of insolvency and an emergency
requiring | ||
expeditious action exists or (ii) revoke
the credit union's | ||
charter, appoint a liquidating
agent Liquidating Agent and | ||
liquidate the
credit union.
| ||
(Source: P.A. 92-608, eff. 7-1-02.)
| ||
(205 ILCS 305/62) (from Ch. 17, par. 4463)
| ||
Sec. 62. Liquidation.
|
(1) A credit union may elect to dissolve voluntarily
and | ||
liquidate its affairs in the manner prescribed in this Section.
| ||
(2) The board of directors Board of Directors shall adopt a | ||
resolution recommending the credit
union be dissolved | ||
voluntarily, and directing that the question of liquidating
be | ||
submitted to the members.
| ||
(3) Within 10 days after the board of directors Board of | ||
Directors decides to submit the
question of liquidation to the | ||
members, the chairman Chairman or president President shall
| ||
notify the Secretary Director thereof, in writing, setting | ||
forth the reasons for the
proposed action. Within 10 days after | ||
the members act on the question of
liquidation, the chairman | ||
Chairman or president President shall notify the Secretary | ||
Director , in writing,
as to whether or not the members approved | ||
the proposed liquidation. The Secretary
Director then must | ||
determine whether this Section has been complied with
and if | ||
his decision is favorable, he shall prepare a certificate to | ||
the
effect that this Section has been complied with, a copy of | ||
which will be
retained by the Department and the other copy | ||
forwarded to the credit union.
The certificate must be filed | ||
with the recorder or if there is
no recorder, in the office of | ||
the county clerk County Clerk of the county County or counties | ||
Counties in
which the credit union is operating, whereupon the | ||
credit union must cease
operations except for the purpose of | ||
its liquidation.
| ||
(4) As soon as the board of directors Board of Directors |
passes a resolution to submit the
question of liquidation to | ||
the members, payment on shares, withdrawal of
shares, making | ||
any transfer of shares to loans and interest, making | ||
investments
of any kind and granting loans shall be suspended | ||
pending action by members.
On approval by the members of such | ||
proposal, all such operations shall be
permanently | ||
discontinued. The necessary expenses of operating shall, | ||
however,
continue to be paid on authorization of the board of | ||
directors Board of Directors or the liquidating agent
| ||
Liquidating Agent during the period of liquidation.
| ||
(5) For a credit union to enter voluntary liquidation, it | ||
must be approved
by affirmative vote of the members owning a | ||
majority of the shares entitled
to vote, in person or by proxy, | ||
at a regular or special meeting of the members.
Notice, in | ||
writing, shall be given to each member, by first class mail,
at | ||
least 10 days prior to such meeting. If liquidation is | ||
approved, the board of directors
Board of Directors shall | ||
appoint a liquidating agent Liquidating Agent for the purpose | ||
of
conserving and collecting the assets, closing the affairs of | ||
the credit
union and distributing the assets as required by | ||
this Act.
| ||
(6) A liquidating credit union shall continue in existence | ||
for the purpose
of discharging its debts, collecting and | ||
distributing its assets, and doing
all acts required in order | ||
to terminate its operations and may sue and be
sued for the | ||
purpose of enforcing such debts and obligations until its |
affairs
are fully adjusted.
| ||
(7) Subject to such rules and regulations as the Secretary | ||
Director may promulgate,
the liquidating agent Liquidating | ||
Agent shall use the assets of the credit union to pay; first,
| ||
expenses incidental to liquidating including any surety bond | ||
that may be
required; then, liabilities of the credit union; | ||
then special classes of
shares. The remaining assets shall then | ||
be distributed to the members
proportionately to the dollar | ||
value of the shares held by each member in
relation to the | ||
total dollar value of all shares outstanding as of the date the
| ||
dissolution was voted.
| ||
(8) As soon as the liquidating agent Liquidating Agent | ||
determines that all assets as to
which there is a reasonable | ||
expectancy of sale or transfer have been liquidated
and | ||
distributed as set forth in this Section, he shall execute a | ||
certificate Certificate
of dissolution Dissolution on a form | ||
prescribed by the Department and file the same,
together with | ||
all pertinent books and records of the liquidating credit
union | ||
with the Department, whereupon such credit union shall be | ||
dissolved.
The liquidating agent Liquidating Agent must, | ||
within 3 years after issuance of a certificate
by the Secretary | ||
Director referred to in Subsection (3) of this Section, | ||
discharge
the debts of the credit union, collect and distribute | ||
its assets and do
all other acts required to wind up its | ||
business.
| ||
(9) If the Secretary Director determines that the |
liquidating agent Liquidating Agent has failed to
make | ||
reasonable progress in the liquidating of the credit union's | ||
affairs
and distribution of its assets or has violated this | ||
Act, the Secretary Director may
take possession and control of | ||
the credit union and remove the liquidating agent Liquidating
| ||
Agent and appoint a liquidating agent Liquidating Agent to | ||
complete the liquidation under
his direction and control. The | ||
Secretary Director shall fill any vacancy caused by
the | ||
resignation, death, illness, removal, desertion or incapacity | ||
to function
of the liquidating agent Liquidating Agent .
| ||
(10) Any funds representing unclaimed dividends and shares | ||
in liquidation
and remaining in the hands of the board of | ||
directors Board of Directors or the liquidating agent | ||
Liquidating
Agent at the end of the liquidation must be | ||
deposited by them, together with
all books and papers of the | ||
credit union, with the State Treasurer in
compliance with the | ||
Uniform Disposition of Unclaimed Property Act, approved
August | ||
17, 1961, as amended.
| ||
(Source: P.A. 91-16, eff. 7-1-99.)
| ||
(205 ILCS 305/63) (from Ch. 17, par. 4464)
| ||
Sec. 63. Merger and consolidation Consolidation . | ||
(1) Any two or more credit unions,
regardless of whether or | ||
not they have the same common bond, may merge or
consolidate | ||
into a single credit union. A merger or consolidation may be
| ||
with a credit union organized under the laws of this State or |
of another
state or of the United States and is subject to the | ||
approval of the Secretary
Director . It must be made on such | ||
terms as have been agreed upon by a vote
of a majority of the | ||
board of directors Board of Directors of each credit union, and | ||
approved
by an affirmative vote of a majority of the members of | ||
the merging credit
union being absorbed present at a meeting, | ||
either in person or by proxy,
duly called for that purpose, | ||
except as hereinafter specified. Notice
of the meeting stating | ||
the purpose must be sent by the
Secretary of each merging | ||
credit union being absorbed to each member by
mail at least 7 | ||
days before the date of the meeting.
| ||
(2) One of the merging credit unions may continue after the | ||
merger or
consolidation either as a surviving credit union | ||
retaining its identity
or as a new credit
union as has been | ||
agreed upon under the terms of the merger. At least
9 members | ||
of the new proposed credit union must apply to the Department
| ||
for permission to organize the new credit union. The same | ||
procedure shall
be followed as provided for the organization of | ||
a new credit union.
| ||
(3) After approval by the members of the credit union which | ||
is to be absorbed
by the merger or consolidation, the chairman | ||
Chairman or president President and the secretary Secretary
of | ||
each credit union shall execute a certificate Certificate of | ||
merger Merger or consolidation Consolidation ,
which shall set | ||
forth all of the following:
| ||
(a) The time and place of the meeting of each board of |
directors Board of Directors at which
the plan was agreed | ||
upon;
| ||
(b) The vote in favor of the adoption of the plan;
| ||
(c) A copy of each resolution or other action by which | ||
the plan was agreed upon;
| ||
(d) The time and place of the meeting of the members of | ||
the absorbed credit
union at which the plan agreed upon was | ||
approved; and,
| ||
(e) The vote by which the plan was approved by the | ||
members of the absorbed
credit union.
| ||
(4) Such certificate and a copy of the plan of merger or | ||
consolidation
agreed upon shall be mailed to the Secretary | ||
Director for review. If the provisions
of this Act have been | ||
complied with, the certificate shall be approved by
him, and | ||
returned to the credit unions which are parties to the merger | ||
or
consolidation within 30 days. When so approved by the | ||
Secretary Director the certificate
shall constitute the | ||
Department's certificate Certificate of approval Approval of | ||
the merger
or consolidation.
| ||
(5) Upon issuance of the certificate Certificate of | ||
approval Approval , each merging credit
union which was absorbed | ||
shall cease operation. Each party to the merger shall file
the | ||
certificate Certificate of approval Approval with the Recorder | ||
or County Clerk of
the county in which the credit union has or | ||
had its principal office.
| ||
(6) Each credit union absorbed by the merger or |
consolidation shall return
to the Secretary Director the | ||
original statement of incorporation Statement of | ||
Incorporation , certificate of
approval of incorporation, | ||
Certificate of
Approval of Incorporation and the bylaws Bylaws | ||
of the credit union. The surviving
credit union shall continue | ||
its operation under its existing certificate of
approval | ||
Certificate
of Approval , articles of incorporation, Articles | ||
of Incorporation and the bylaws Bylaws or if a new credit
union | ||
has been formed, under the new certificate of
approval | ||
Certificate of Approval , articles of incorporation, Articles | ||
of
Incorporation and bylaws Bylaws .
| ||
(7) All rights of membership in and any obligation or | ||
liability of any
member to any credit union which is party to a | ||
consolidation or merger are
continued in the surviving or new | ||
credit union without reservation or diminution.
| ||
(8) A pending action or other judicial proceeding to which | ||
any of the
consolidating or merging credit unions is a party | ||
does not abate by reason
of the consolidation or merger.
| ||
(Source: P.A. 83-1362.)
| ||
(205 ILCS 305/64) (from Ch. 17, par. 4465)
| ||
Sec. 64. Conversion of charter Charter . A credit union | ||
chartered under the laws
of this State may be converted to a | ||
credit union chartered under the laws
of any other state or | ||
under the laws of the United States. A credit union
chartered | ||
under the laws of the United States or of any other state may
|
convert to a credit union chartered under the laws of this | ||
State. To effect
such a conversion, a credit union must comply | ||
with all the requirements
of the jurisdiction under which it is | ||
currently chartered and such rules
and regulations as may be | ||
promulgated by the Secretary Director and file proof of
such | ||
compliance with the Department.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/65) (from Ch. 17, par. 4466)
| ||
Sec. 65. Conformity with With Federal Credit Union Act. | ||
After the effective
date of this Act, any credit union | ||
incorporated under the laws of this State
shall have all of the | ||
rights, privileges and benefits which may be exercised
by a | ||
federal credit union; provided, however, that the exercise of | ||
such
rights, privileges and benefits may not violate any | ||
provision of this Act.
In order to give effect to this | ||
provision, the Secretary Director shall, where necessary,
| ||
promulgate rules and regulations in substantial
conformity | ||
with those promulgated by the NCUA under the Federal Credit | ||
Union Act.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/66) (from Ch. 17, par. 4467)
| ||
Sec. 66. Illegal loans Loans . | ||
(1) Any officer Officer , director Director or member of a | ||
committee
of a credit union who knowingly permits a loan to be |
made or participates
in a loan to a nonmember of the credit | ||
union, is guilty of a Class A Misdemeanor
and is primarily | ||
liable to the credit union for the amount illegally loaned,
and | ||
the illegality of the loan is not a defense in any action by | ||
the credit
union to recover the balance owing on the loan.
| ||
(2) Any officer Officer , director Director , member of a | ||
committee or employee of a credit union
who solicits or accepts | ||
any payment of property or gift as consideration
for | ||
influencing the approval or granting of a loan is guilty of a | ||
Class
A Misdemeanor and is primarily liable to the credit union | ||
for the amount
loaned. The loan is illegal and may be | ||
immediately collected in full by
the credit union. The | ||
illegality of the loan is no defense in any action
by the | ||
credit union to recover the balance owing on the loan.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/67) (from Ch. 17, par. 4468)
| ||
Sec. 67. Use of public property Public Property . Any credit | ||
union, the membership of
which consists primarily of employees | ||
of this State or of any county, city,
village, incorporated | ||
town or school district, or of any department, agency
or | ||
instrumentality of the State and their families, may, upon | ||
application
to the appropriate officer or agency, be allotted | ||
such space as is available
in any public building, for the | ||
purpose of providing an office and meeting
place for the credit | ||
union without charge for rent or services.
|
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/68) (from Ch. 17, par. 4469)
| ||
Sec. 68. Interest, fines Fines , not usurious-shares Not | ||
Usurious-Shares and loans not Loans Not to be taxed Taxed .
| ||
Reasonable fines may be levied as provided in the bylaws Bylaws | ||
of each credit
union and may be deducted from the share balance | ||
or added to the loan balance
of a member upon whom a fine is | ||
levied. Interest or fines that may accrue
to a credit union are | ||
not usurious and they may be collected under the law
of this | ||
State. The shares and loans provided for in this Act are not | ||
subject
to taxation.
| ||
(Source: P.A. 81-329.)
| ||
(205 ILCS 305/69) (from Ch. 17, par. 4470)
| ||
Sec. 69. Effect of invalidity Invalidity of part Part of | ||
this Act. If a court of competent
jurisdiction shall adjudge to | ||
be invalid or unconstitutional any clause,
sentence, | ||
paragraph, section or part of this Act, such judgment
shall not | ||
affect, impair, invalidate or nullify the remainder of this | ||
Act,
but the effect thereof shall be confined to the clause, | ||
sentence, paragraph,
Section or part of this Act so adjudged to | ||
be invalid or unconstitutional.
| ||
(Source: P.A. 84-545.)
| ||
(205 ILCS 305/69.1) (from Ch. 17, par. 4470.1)
|
Sec. 69.1. Review under Under Administrative Review Law. | ||
The provisions of
the Administrative Review Law, and all | ||
amendments and modifications thereof
and the rules adopted | ||
pursuant thereto, shall apply to and govern all
proceedings for | ||
the judicial review of final administrative decisions of
the | ||
Secretary Director provided for under this Act. The term | ||
"administrative
decision" is defined as in Section 3-101 of the | ||
Code of Civil Procedure.
| ||
(Source: P.A. 85-1273.)
| ||
(205 ILCS 305/70) (from Ch. 17, par. 4471)
| ||
Sec. 70. Use of name, sentence. | ||
(a) No individual, firm, association,
or body politic and | ||
corporate, including, without limitation, any corporation, | ||
limited liability company, general partnership, limited | ||
partnership, or joint venture that is not an authorized user | ||
may use any
name or title which contains the words
"credit | ||
union" or any abbreviation thereof, and such use is a Class A
| ||
Misdemeanor. For purposes of this Section, "authorized user" | ||
means a corporation organized under this Act, the credit union | ||
act of another state, or the Federal Credit Union Act, any | ||
association of such a corporation, and subsidiaries and | ||
affiliates of such an association.
| ||
(b) If the Secretary Director of the Division of Financial | ||
Institutions of the Department of Financial and Professional | ||
Regulation finds that an individual or entity that is not an |
authorized user has transacted or intends to transact business | ||
in this State in a manner that has a substantial likelihood of | ||
misleading the public by: (i) implying that the business is a | ||
credit union or (ii) using or intending to use the words | ||
"credit union", or any abbreviation thereof, in connection with | ||
its business, then the Secretary Director of the Division of | ||
Financial Institutions may direct the individual or entity to | ||
cease and desist from transacting its business or using the | ||
words "credit union", or any abbreviation thereof. If the | ||
individual or entity persists in transacting its business or | ||
using the words "credit union", or any abbreviation thereof, | ||
then the Secretary Director of the Division of Financial | ||
Institutions may impose a civil penalty of up to $10,000 for | ||
each violation. Each day that the individual or entity | ||
continues transacting business or using the words "credit | ||
union", or any abbreviation thereof, in connection with its | ||
business shall constitute a separate violation of these | ||
provisions.
| ||
(c) Except as otherwise expressly permitted by law or with | ||
the written consent of the credit union, no person or group of | ||
persons other than an authorized user may use the name of or a | ||
name similar to the name of an existing credit union when | ||
marketing or soliciting business from members or prospective | ||
members if the name or similar name is used in a manner that | ||
would cause a reasonable person to believe that the marketing | ||
material or solicitation originated from or is endorsed by the |
existing credit union or that the existing credit union is in | ||
any other way responsible for the marketing material or | ||
solicitation. The following remedies shall apply: | ||
(1) Any person who violates subsection (c) of this | ||
Section commits a business offense and shall be fined in an | ||
amount not to exceed $5,000. | ||
(2) In addition to any other available remedies, any | ||
existing credit union may report an alleged violation of | ||
any provision of this Section to the Secretary Director of | ||
the Division of Financial Institutions . If the Secretary | ||
Director finds that any person or group of persons is in | ||
violation of any provision of this Section, then the | ||
Secretary Director may direct that person or group of | ||
persons to cease and desist from that violation. If the | ||
Secretary Director issues a cease and desist order against | ||
any person or group of persons for violation of subsection | ||
(c), then the order must require that person or group of | ||
persons to cease and desist from using the offending | ||
marketing material or solicitation in Illinois. | ||
(3) If a person or group of persons against whom the | ||
Secretary Director issued the cease and desist order | ||
persists in the violation, then the Secretary Director may | ||
impose a civil penalty of up to $10,000 for each violation. | ||
Each day that a person or group of persons is in violation | ||
of this Section constitutes a separate violation of this | ||
Section and each instance in which marketing material or a |
solicitation is sent in violation of this subsection (c) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
constitutes a separate violation of this Section. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(d) The Secretary and the Director of the Division of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Institutions may adopt rules to administer the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
provisions of this Section.
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(Source: P.A. 94-150, eff. 7-8-05; 95-98, eff. 8-13-07.)
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(205 ILCS 305/71) (from Ch. 17, par. 4472)
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Sec. 71. False statements Statements . Any person who | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
knowingly makes any false statement
or report upon any | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
application, advance, discount, purchase, purchase agreement,
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repurchase agreement, commitment or loan or any change or | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
extension
of the same to a credit union chartered by this State | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
shall be fined not
more than $5000 or imprisoned for not more | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
than 5 years, or both.
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(Source: P.A. 81-329.)
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Section 99. Effective date. This Act takes effect January | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1, 2012.
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