| ||||
Public Act 097-0855 | ||||
| ||||
| ||||
AN ACT concerning regulation.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Illinois Credit Union Act is amended by | ||||
changing Sections 15 and 20 and adding Section 64.5 as follows: | ||||
(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 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
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.
| ||
(7) If a member fails to maintain one fully paid share, the | ||
credit union, at its option, may permit the member to | ||
re-subscribe and pay for one or more shares within 30 days | ||
after the date the member failed to maintain one fully paid | ||
share, without affecting the member's status or rights as a | ||
member during that period. A member that fails to re-subscribe | ||
for at least one fully paid share within the 30-day period |
shall be automatically expelled from the credit union and | ||
treated as an expelled member under subsection (5) of this | ||
Section 15.
| ||
(Source: P.A. 97-133, eff. 1-1-12.)
| ||
(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 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 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 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, 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 to be | ||
elected, or to
cumulate such shares, and give one candidate as | ||
many votes as the number
of 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
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. Each 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 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, 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 to be | ||
elected.
| ||
(1.15) If the board of directors has adopted a policy | ||
addressing age eligibility standards on voting, holding | ||
office, or petitioning the board, then a credit union may | ||
require (i) that members be at least 18 years of age by the | ||
date of the meeting in order to vote at meetings of the | ||
members, sign nominating petitions, or sign petitions | ||
requesting special meetings, and (ii) that members be at least | ||
18 years of age by the date of election or appointment in order | ||
to hold elective or appointive office. | ||
(2) The board of directors shall appoint from among the | ||
members of the
credit union, a 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 may, but need not be, on the board of directors, but | ||
shall not
be officers of the credit union, members of the | ||
credit committee,
or the
credit manager if no credit committee | ||
has been appointed.
| ||
(3) The board of directors may appoint, from among the
| ||
members of the
credit union, a credit committee consisting of | ||
an odd number, not less than
3 for such terms as the bylaws |
provide. Members of the credit committee
may, but need not be, | ||
directors or officers of the credit union, but shall
not be | ||
members of the supervisory committee.
| ||
(4) The board of directors may appoint from among the | ||
members
of the
credit union a membership committee of one or | ||
more persons. If appointed,
the committee shall act
upon all | ||
applications for membership and submit a report of its actions
| ||
to the board of directors at the next regular meeting for
| ||
review.
If no 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
at the | ||
next regular meeting for review.
| ||
(Source: P.A. 97-133, eff. 1-1-12.)
| ||
(205 ILCS 305/64.5 new) | ||
Sec. 64.5. Continuation of corporate entity. | ||
(a) For purposes of this Section, a "resulting credit | ||
union" means an Illinois-chartered credit union that is the | ||
surviving credit union in a merger of 2 or more credit unions, | ||
a new credit union resulting from a consolidation of 2 or more | ||
credit unions, or a credit union that has effected a conversion | ||
from a credit union chartered under the laws of any other state | ||
or under the laws of the United States. | ||
(b) A resulting credit union shall be considered the same | ||
business and corporate entity as each merging or consolidating | ||
credit union or as the converting credit union, with all the |
property, rights, powers, duties, and obligations of each | ||
merging or consolidating credit union or of the converting | ||
credit union, except as affected by the charter and bylaws of | ||
the resulting credit union. A resulting credit union shall be | ||
liable for all liabilities of the merging or consolidating | ||
credit union or converting credit union. All the rights, | ||
franchises, and interests of the merging or consolidating | ||
credit union or converting credit union in and to every species | ||
of property, real, personal, and mixed, and choses in action | ||
thereunto belonging, shall be deemed to be automatically | ||
transferred to and vested in the resulting credit union as a | ||
successor-in-interest without any deed or other transfer, and | ||
the resulting credit union, without any order or other action | ||
on the part of any court or otherwise, shall hold and enjoy the | ||
same and all rights of property, franchises, and interests, | ||
including appointments, designations, and nominations, and all | ||
other rights and interests as trustee, executor, | ||
administrator, registrar or transfer agent of stocks and bonds, | ||
guardian, assignee, receiver, and in every other fiduciary | ||
capacity, in the same manner and to the same extent as was held | ||
and enjoyed by the merging or consolidating credit union or the | ||
converting credit union. Any reference to a merging, | ||
consolidating, or converting credit union in any writing, | ||
whether executed or taking effect before or after the merger, | ||
consolidation, or conversion, shall be deemed a reference to | ||
the resulting credit union if not inconsistent with the other |
provisions of the writing.
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|