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Public Act 91-0131
SB98 Enrolled LRB9101012JSpcA
AN ACT to amend the Illinois Credit Union Act by changing
Sections 5 and 42.
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 5 and 42 as follows:
(205 ILCS 305/5) (from Ch. 17, par. 4406)
Sec. 5. Place of business.
(1) A credit union may change its principal place of
business within this State upon 45 days prior written notice
to approval of the Department, provided that a credit union
with a neighborhood or community common bond may not relocate
its principal place of business outside of its neighborhood
or community the Director's approval shall be based upon the
same criteria as for the formation of a new credit union.
(2) A credit union may share office space with one or
more credit unions and contract with any person, firm or
corporation, including another credit union, to provide
facilities or personnel.
(Source: P.A. 81-329.)
(205 ILCS 305/42) (from Ch. 17, par. 4443)
Sec. 42. Shares in trust.
(1) Shares may be issued in trust to a member as trustee
or to an individual or corporate trustee. If a corporate
trustee is a bank or trust company, shares may be issued to
the corporate trustee only if such bank or trust company is
organized under the laws of the State of Illinois or is a
nationally chartered bank located principally in the State of
Illinois. An individual trustee shall be a member of the
credit union unless the person establishing the trust in
respect to which such shares are issued or each beneficiary
of the trust is a member of the credit union and the name of
each beneficiary is disclosed to the credit union. Shares
may also be issued in the name of an individual or corporate
representative under the Illinois Probate Act of 1975 as
amended, for or in respect to a member of a credit union.
Shares may also be issued in trust under the Illinois Funeral
or Burial Funds Act, for or in respect to a member of a
credit union, to a trustee licensed under said Act. Any
credit union which issues shares in trust as provided in this
Section must be insured by the NCUA or another approved
insurer. No trustee or beneficiary, unless a member in his
own right, shall be permitted to vote, obtain loans, hold
office or be required to pay an entrance or membership fee.
Payment of part or all of such shares to such trustee or
member shall, to the extent of such payment, discharge the
liability of the credit union to the member and the
beneficiary and the credit union shall be under no obligation
to see to the application of such payment.
(2) If a credit union's shares are insured as provided
for in this Act, such credit union shall have power to act as
trustee or custodian under individual retirement accounts or
plans established pursuant to Section 401(d) or (f) or
Section 408(a) of the Internal Revenue Code and any laws
amendatory or supplementary thereto for its members or groups
or organizations of its members provided the funds of such
accounts or plans are invested solely in (1) share accounts
of, or (2) share accounts and obligations issued by such
credit union. All funds held in such fiduciary capacity
shall be maintained in accordance with applicable statutes
and regulations promulgated thereunder by any authority
exercising jurisdiction over such trusts or custodial
accounts.
(3) Notwithstanding any language to the contrary in this
Section 42, a credit union may act as trustee or custodian of
individual retirement plans of its members established
pursuant to the Employee Retirement Income Security Act of
1974 or self-employed retirement plans established pursuant
to the Self-Employed Individuals Retirement Act of 1962, and
any laws amendatory or supplementary to such Acts, provided
that:
(a) All contributions of funds are initially made to a
share account in the credit union;
(b) Any subsequent transfer of funds to other assets is
solely at the direction of the member and the credit union
performs only custodial duties, exercises no investment
discretion and provides no investment advice with respect to
plan assets;
(c) The member is notified of the fact that share
insurance coverage is limited to funds held in share
accounts; and
(d) The credit union complies with all applicable
provisions of this Act and applicable laws and regulations as
may be promulgated by any authority exercising jurisdiction
over such trust or custodial accounts.
(Source: P.A. 85-1273.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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