Public Act 093-0916
 		





SB3021 Enrolled
LRB093 20607 SAS 46437 b






    AN ACT concerning financial 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 23, 26, and 30 and  by adding Section 16.1 as 
follows:
 
    (205 ILCS 305/16.1  new)
    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 Director periodic 
service status reports that describe how the needs of the area 
are being met.

 



    (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.


    (3) The Board of Directors may establish
compensation for 
officers of the credit union.

(Source: P.A. 92-608, eff. 7-1-02.)

 



    (205 ILCS 305/26)  (from Ch. 17, par. 4427)



    Sec. 26. Executive Officers. (1) At their first meeting, 
the Board of
Directors shall elect from among their own number 
a Chairman of the Board
and one or more Vice Chairmen, a 
Secretary and a Treasurer.  The Directors
shall appoint a chief 
management official who shall have such title as the Directors 
shall determine. The Directors
President and
 may also  appoint 
one or more Vice Presidents.
The President shall be the chief 
operating officer of the credit union.
The chief management 
official
President and Vice President may, but need not, be 
Directors.  Any two
or more offices may be held by the same 
person, except the Chairman of the Board
President may
not also 
hold the office of Vice Chairman
President or 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 from time to time.

(Source: P.A. 81-329.)

 



    (205 ILCS 305/30)  (from Ch. 17, par. 4431)



    Sec. 30. Duties of directors. It shall be the duty of the 
directors to:


        (1) Review actions on applications
for membership.  A 
    record of the Membership Committee's approval or
denial of 
    membership or management's approval or denial of 
    membership if no
Membership Committee has been appointed 
    shall be available to the Board of
Directors for 
    inspection.  A person denied membership by the Membership

    Committee or credit union management may appeal the denial 
    to the 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 
    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 prescribes.  
    The 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 may designate an Investment 
    Committee or any qualified individual
or entity to have 
    charge of making investments under policies established
by 
    the 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;


        (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, for cause, any or all 
    officers or any
or all members of the Membership, Credit, 
    Supervisory or other committees
whenever, in the judgment 
    of the Board of Directors, the best interests of the credit 
    union will be served thereby; provided that members of the 
    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
for 
    failure to perform their duties;


        (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.

(Source: P.A. 92-608, eff. 7-1-02; revised 1-20-03.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.






Effective Date:  8/12/2004