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