Bill Text: IL HB1792 | 2017-2018 | 100th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Credit Union Act. Provides that the par value of shares of a credit union must be at least $1 (rather than $5). Provides that the board of credit union advisors shall meet at least once each calendar year (rather than once each 6 months). Provides that credit union members may vote on questions and in elections by secure electronic record if approved by the board of directors. Changes the definition of "compliance review committee". Changes the limit on the amount of loans a credit union may make to individual members and how those limitations are set. Provides that a credit union or network credit union may create and use descriptive and brand references to promote and market its identity, services, and products to its members. Provides that corporate bonds identified as investment grade by at least one nationally recognized statistical rating organization may be invested by the credit union with funds not used in loans provided that certain criteria are satisfied. Provides that credit unions may invest funds not used in loans to aid in the credit union's management of its assets, liabilities, and liquidity in the purchase of an investment interest in a pool of loans, in whole or in part and without regard to the membership of the borrowers, from other depository institutions and financial type institutions, including mortgage banks, finance companies, insurance companies, and other loan sellers. Provides that each divisional credit union may (rather than shall) have an advisory board of directors and the advisory board of directors may (rather than the board of directors shall) appoint a divisional credit union chief management official. Provides that a divisional credit union may determine to identify its advisory board as a committee and its divisional chief management official with a title it deems reasonable and appropriate. Makes other changes. Effective immediately.
Spectrum: Slight Partisan Bill (Democrat 6-2)
Status: (Passed) 2017-08-25 - Public Act . . . . . . . . . 100-0361 [HB1792 Detail]
Download: Illinois-2017-HB1792-Engrossed.html
Bill Title: Amends the Illinois Credit Union Act. Provides that the par value of shares of a credit union must be at least $1 (rather than $5). Provides that the board of credit union advisors shall meet at least once each calendar year (rather than once each 6 months). Provides that credit union members may vote on questions and in elections by secure electronic record if approved by the board of directors. Changes the definition of "compliance review committee". Changes the limit on the amount of loans a credit union may make to individual members and how those limitations are set. Provides that a credit union or network credit union may create and use descriptive and brand references to promote and market its identity, services, and products to its members. Provides that corporate bonds identified as investment grade by at least one nationally recognized statistical rating organization may be invested by the credit union with funds not used in loans provided that certain criteria are satisfied. Provides that credit unions may invest funds not used in loans to aid in the credit union's management of its assets, liabilities, and liquidity in the purchase of an investment interest in a pool of loans, in whole or in part and without regard to the membership of the borrowers, from other depository institutions and financial type institutions, including mortgage banks, finance companies, insurance companies, and other loan sellers. Provides that each divisional credit union may (rather than shall) have an advisory board of directors and the advisory board of directors may (rather than the board of directors shall) appoint a divisional credit union chief management official. Provides that a divisional credit union may determine to identify its advisory board as a committee and its divisional chief management official with a title it deems reasonable and appropriate. Makes other changes. Effective immediately.
Spectrum: Slight Partisan Bill (Democrat 6-2)
Status: (Passed) 2017-08-25 - Public Act . . . . . . . . . 100-0361 [HB1792 Detail]
Download: Illinois-2017-HB1792-Engrossed.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Credit Union Act is amended by | ||||||
5 | changing Sections 2, 11, 19, 20, 34.1, 48, 53, 57, 59, and 64.7 | ||||||
6 | as follows:
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7 | (205 ILCS 305/2) (from Ch. 17, par. 4403)
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8 | Sec. 2. Organization Procedure. | ||||||
9 | (1) Any 9 or more persons of legal age,
the majority of | ||||||
10 | whom shall be residents of the State of Illinois, who have
a | ||||||
11 | common bond referred to in Section 1.1 may organize a credit | ||||||
12 | union or
a central credit union by complying with this Section.
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13 | (2) The subscribers shall execute in duplicate Articles of | ||||||
14 | Incorporation
and agree to the terms thereof, which Articles | ||||||
15 | shall state:
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16 | (a) The name, which shall include the words "credit | ||||||
17 | union" and which shall
not be the same as that of any other | ||||||
18 | existing credit union in this state,
and the location where | ||||||
19 | the proposed credit union is to have its principal
place of | ||||||
20 | business;
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21 | (b) The common bond of the members of the credit union;
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22 | (c) The par value of the shares of the credit union, | ||||||
23 | which must be at least $1 $5.00 ;
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1 | (d) The names, addresses and Social Security numbers of | ||||||
2 | the subscribers to
the Articles of Incorporation, and the | ||||||
3 | number and the value of shares subscribed
to by each;
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4 | (e) That the credit union may exercise such incidental | ||||||
5 | powers as are necessary
or requisite to enable it to carry | ||||||
6 | on effectively the purposes for which
it is incorporated, | ||||||
7 | and those powers which are inherent in the credit union
as | ||||||
8 | a legal entity;
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9 | (f) That the existence of the credit union shall be | ||||||
10 | perpetual.
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11 | (3) The subscribers shall prepare and adopt bylaws for the | ||||||
12 | general government
of the credit union, consistent with this | ||||||
13 | Act, and execute same in duplicate.
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14 | (4) The subscribers shall forward the articles of | ||||||
15 | incorporation and the
bylaws to the Secretary in duplicate, | ||||||
16 | along with the required charter fee.
If they conform to the | ||||||
17 | law, and such rules and regulations as the Secretary and the | ||||||
18 | Director
may prescribe, if the Secretary determines that a | ||||||
19 | common bond exists, and
that it is economically advisable to | ||||||
20 | organize the credit union, he or she shall
within 60 days issue | ||||||
21 | a certificate of approval attached to the articles of | ||||||
22 | incorporation
and return a copy of the bylaws
and the articles | ||||||
23 | of incorporation to the applicants or their representative, | ||||||
24 | which shall
be preserved in the permanent files of the credit | ||||||
25 | union. The subscribers
shall file the certificate of approval, | ||||||
26 | with the articles of incorporation
attached, in the office of |
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1 | the recorder (or, if
there is no recorder, in the office of the | ||||||
2 | county
clerk) of the county in which the
credit union is to | ||||||
3 | locate its principal place of business. The
recorder or the | ||||||
4 | county
clerk, as the case may be, shall accept
and record the | ||||||
5 | documents if they are accompanied by the proper fee. When the | ||||||
6 | documents
are so recorded, the credit union is incorporated | ||||||
7 | under this Act.
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8 | (5) The subscribers for a credit union charter shall not | ||||||
9 | transact any
business until the certificate of approval has | ||||||
10 | been received.
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11 | (Source: P.A. 97-133, eff. 1-1-12.)
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12 | (205 ILCS 305/11) (from Ch. 17, par. 4412)
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13 | Sec. 11. Board of credit union advisors. | ||||||
14 | (1) There shall be a board of credit union advisors
who | ||||||
15 | shall consult with, advise, and make recommendations
to the | ||||||
16 | Governor and to the Secretary on matters pertaining to credit | ||||||
17 | unions.
The board of credit union advisors may also advise the | ||||||
18 | Governor and Secretary
upon appointments and employment of | ||||||
19 | personnel in connection with the supervision
and regulation of | ||||||
20 | credit unions.
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21 | (2) The board of credit union advisors shall consist of 7 | ||||||
22 | persons with
credit union experience who shall be appointed by | ||||||
23 | the Governor. Appointments
to the board shall be for terms of 3 | ||||||
24 | years each, except that initial appointments
shall be: 3 | ||||||
25 | members for 3 years each; 3 members for 2 years each and 1 |
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1 | member
for 1 year.
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2 | (3) All members shall serve until their successors have | ||||||
3 | been appointed
and qualified. In the event a vacancy occurs, | ||||||
4 | the appointment to fill such
vacancy shall be made in the | ||||||
5 | manner of original appointment, but only for
the unexpired | ||||||
6 | term.
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7 | (4) The chairman of the board of credit union advisors | ||||||
8 | shall be elected
annually by a majority of the board members at | ||||||
9 | the first meeting of the board each
year.
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10 | (5) The initial meeting of the board shall be called by the | ||||||
11 | Secretary and
thereafter regular meetings shall be held at such | ||||||
12 | times and places as shall
be determined by the Governor, | ||||||
13 | chairman, or Secretary, but at least once each
calendar year 6 | ||||||
14 | months . Special meetings may be called either by the Governor, | ||||||
15 | the Secretary, the Director,
the chairman, or by written notice | ||||||
16 | sent by 2 or more members of the board.
A majority of the | ||||||
17 | members of the board shall constitute a quorum.
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18 | (6) The Department shall reimburse the board members for | ||||||
19 | their actual
and necessary travel and subsistence expenses.
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20 | (Source: P.A. 97-133, eff. 1-1-12.)
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21 | (205 ILCS 305/19) (from Ch. 17, par. 4420)
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22 | Sec. 19. Meeting of members.
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23 | (1) The annual meeting shall be held each
year during the | ||||||
24 | months of January, February or March or such other month
as may | ||||||
25 | be approved by the Department. The meeting shall be held at the
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1 | time, place and in the manner set forth in the bylaws. Any | ||||||
2 | special
meetings of the members of the credit union shall be | ||||||
3 | held at the time, place
and in the manner set forth in the | ||||||
4 | bylaws. Unless otherwise set forth in
this Act, quorum | ||||||
5 | requirements for meetings of members shall be established
by a | ||||||
6 | credit union in its bylaws. Notice of all meetings must be | ||||||
7 | given by
the secretary of the credit union at least 7 days | ||||||
8 | before the date of such
meeting, either by handing a written or | ||||||
9 | printed notice to each
member of the credit union, by mailing | ||||||
10 | the notice to the member at his address
as listed on the books | ||||||
11 | and records of the credit union, or by posting a
notice of the | ||||||
12 | meeting in three conspicuous places, including the office
of | ||||||
13 | the credit union.
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14 | (2) On all questions and at all elections, except election | ||||||
15 | of directors,
each member has one vote regardless of the number | ||||||
16 | of his shares. There
shall be no voting by proxy except on the | ||||||
17 | election of directors, proposals
for merger or voluntary | ||||||
18 | dissolution. Members may vote on questions and in elections by | ||||||
19 | secure electronic record if approved by the board of directors. | ||||||
20 | All voting on the election of directors
shall be by ballot, but | ||||||
21 | when there is no contest, written or electronic ballots need | ||||||
22 | not
be cast. The record date to be used for the purpose of | ||||||
23 | determining which
members are entitled to notice of or to vote | ||||||
24 | at any meeting of members,
may be fixed in advance by the | ||||||
25 | directors on a date not more than 90 days
nor less than 10 days | ||||||
26 | prior to the date of the meeting. If no record date
is fixed by |
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1 | the directors, the first day on which notice of the meeting
is | ||||||
2 | given, mailed or posted is the record date.
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3 | (3) Regardless of the number of shares owned by a society, | ||||||
4 | association,
club, partnership, other credit union or | ||||||
5 | corporation, having membership
in the credit union, it shall be | ||||||
6 | entitled to only
one vote and it may be represented and have | ||||||
7 | its vote cast by its
designated agent acting on its
behalf | ||||||
8 | pursuant
to a resolution
adopted by the organization's board of | ||||||
9 | directors or similar governing
authority;
provided that the | ||||||
10 | credit union shall obtain a certified copy of such resolution
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11 | before such vote may be cast. | ||||||
12 | (4) A member may revoke a proxy by delivery to the credit | ||||||
13 | union of a written statement to that effect, by execution of a | ||||||
14 | subsequently dated proxy, by execution of a secure electronic | ||||||
15 | record, or by attendance at a meeting and voting in person.
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16 | (5) As used in this Section, "electronic" and "electronic | ||||||
17 | record" have the meanings ascribed to those terms in the | ||||||
18 | Electronic Commerce Security Act. As used in this Section, | ||||||
19 | "secured electronic record" means an electronic record that | ||||||
20 | meets the criteria set forth in Section 10-105 of the | ||||||
21 | Electronic Commerce Security Act. | ||||||
22 | (Source: P.A. 96-963, eff. 7-2-10; 97-133, eff. 1-1-12.)
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23 | (205 ILCS 305/20) (from Ch. 17, par. 4421)
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24 | Sec. 20. Election or appointment of officials.
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25 | (1) The credit union shall
be directed by a board of |
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1 | directors consisting of no less than 7 in number,
to be elected | ||||||
2 | at the annual meeting by and from the members. Directors shall
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3 | hold office until the next annual meeting, unless their
terms | ||||||
4 | are staggered. Upon amendment of its bylaws, a credit union may | ||||||
5 | divide
the directors into 2 or 3 classes with each class as | ||||||
6 | nearly equal in number as
possible. The term of office of the | ||||||
7 | directors of the first class shall expire
at the first annual | ||||||
8 | meeting after their election, that of the second class
shall
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9 | expire at the second annual meeting after their election, and | ||||||
10 | that of the third
class, if any, shall expire at the third | ||||||
11 | annual meeting after their election.
At each annual meeting | ||||||
12 | after the classification, the number of directors equal
to the | ||||||
13 | number of directors whose terms expire at the time of the | ||||||
14 | meeting shall
be elected to hold office until the second | ||||||
15 | succeeding annual meeting if there
are 2 classes or until the | ||||||
16 | third succeeding annual meeting if there are 3
classes. A | ||||||
17 | director shall hold office for the term for which he
or she is | ||||||
18 | elected and until his or her
successor
is elected and | ||||||
19 | qualified. | ||||||
20 | (1.5) Except as provided in subsection (1.10), in all | ||||||
21 | elections for directors, every member
has the right to vote, in | ||||||
22 | person , or by proxy , or by secure electronic record if approved | ||||||
23 | by the board of directors , the number of shares owned
by him, | ||||||
24 | or in the case of a member other than a natural person, the | ||||||
25 | member's
one vote, for as many persons as there are directors | ||||||
26 | to be elected, or to
cumulate such shares, and give one |
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1 | candidate as many votes as the number
of directors multiplied | ||||||
2 | by the number of his shares equals, or to distribute
them on
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3 | the same principle among as many candidates as he may desire | ||||||
4 | and the directors
shall not be elected in any other manner. | ||||||
5 | Shares held in a joint account
owned by more than one member | ||||||
6 | may be voted by any one of the members, however,
the number of | ||||||
7 | cumulative votes cast may not exceed a total equal to the | ||||||
8 | number
of shares multiplied by the number of directors to be | ||||||
9 | elected. A majority of
the shares entitled
to vote shall be | ||||||
10 | represented either in person or by proxy for the election
of | ||||||
11 | directors. Each director shall wholly take and subscribe to an | ||||||
12 | oath
that he will diligently and honestly perform his duties in | ||||||
13 | administering
the affairs of the credit union, that while he | ||||||
14 | may delegate to another the
performance of those administrative | ||||||
15 | duties he is not thereby relieved from
his responsibility for | ||||||
16 | their performance, that he will not knowingly violate
or permit | ||||||
17 | to be violated any law applicable to the credit union,
and that | ||||||
18 | he is the owner of at least one share of the credit union.
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19 | (1.10) Upon amendment of a credit union's bylaws approved | ||||||
20 | by the members, in all elections for directors, every member | ||||||
21 | who is a natural person shall have the right to cast one vote, | ||||||
22 | regardless of the number of his or her shares, in person , or by | ||||||
23 | proxy , or by secure electronic record if approved by the board | ||||||
24 | of directors , for as many persons as there are directors to be | ||||||
25 | elected.
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26 | (1.15) If the board of directors has adopted a policy |
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1 | addressing age eligibility standards on voting, holding | ||||||
2 | office, or petitioning the board, then a credit union may | ||||||
3 | require (i) that members be at least 18 years of age by the | ||||||
4 | date of the meeting in order to vote at meetings of the | ||||||
5 | members, sign nominating petitions, or sign petitions | ||||||
6 | requesting special meetings, and (ii) that members be at least | ||||||
7 | 18 years of age by the date of election or appointment in order | ||||||
8 | to hold elective or appointive office. | ||||||
9 | (2) The board of directors shall appoint from among the | ||||||
10 | members of the
credit union, a supervisory committee of not | ||||||
11 | less than 3 members at the
organization meeting and within 30 | ||||||
12 | days following each annual meeting of
the members for such | ||||||
13 | terms as the bylaws provide. Members of the supervisory | ||||||
14 | committee may, but need not be, on the board of directors, but | ||||||
15 | shall not
be officers of the credit union, members of the | ||||||
16 | credit committee,
or the
credit manager if no credit committee | ||||||
17 | has been appointed.
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18 | (3) The board of directors may appoint, from among the
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19 | members of the
credit union, a credit committee consisting of | ||||||
20 | an odd number, not less than
3 for such terms as the bylaws | ||||||
21 | provide. Members of the credit committee
may, but need not be, | ||||||
22 | directors or officers of the credit union, but shall
not be | ||||||
23 | members of the supervisory committee.
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24 | (4) The board of directors may appoint from among the | ||||||
25 | members
of the
credit union a membership committee of one or | ||||||
26 | more persons. If appointed,
the committee shall act
upon all |
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1 | applications for membership and submit a report of its actions
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2 | to the board of directors at the next regular meeting for
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3 | review.
If no membership committee is appointed, credit union | ||||||
4 | management shall act
upon all applications for membership and | ||||||
5 | submit a report of its actions to the board of directors
at the | ||||||
6 | next regular meeting for review.
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7 | (5) As used in this Section, "electronic" and "electronic | ||||||
8 | record" have the meanings ascribed to those terms in the | ||||||
9 | Electronic Commerce Security Act. As used in this Section, | ||||||
10 | "secured electronic record" means an electronic record that | ||||||
11 | meets the criteria set forth in Section 10-105 of the | ||||||
12 | Electronic Commerce Security Act. | ||||||
13 | (Source: P.A. 97-133, eff. 1-1-12; 97-855, eff. 7-27-12.)
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14 | (205 ILCS 305/34.1)
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15 | Sec. 34.1. Compliance review.
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16 | (a) As used in this Section:
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17 | "Affiliate" means an organization established to serve the | ||||||
18 | needs of credit
unions, the business of which relates to the | ||||||
19 | daily operations of credit unions.
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20 | "Compliance review committee" means:
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21 | (1) one or more persons appointed by the management, | ||||||
22 | board of directors , or supervisory
committee of a credit | ||||||
23 | union for the purposes set forth in subsection (b); or
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24 | (2) any other person to the extent the person acts in | ||||||
25 | an investigatory
capacity at the direction of a compliance |
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1 | review committee.
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2 | "Compliance review documents" means documents prepared in | ||||||
3 | connection with a
review or evaluation conducted by or for a | ||||||
4 | compliance review committee.
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5 | "Person " means an individual, a group of individuals, a | ||||||
6 | board committee, a
partnership, a firm, an association, a | ||||||
7 | corporation, or any other entity.
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8 | (b) This Section applies to compliance review committees | ||||||
9 | whose functions are
to evaluate and seek to improve any of the | ||||||
10 | following:
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11 | (1) loan policies or underwriting standards;
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12 | (2) asset quality;
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13 | (3) financial reporting to federal or State | ||||||
14 | governmental or regulatory
agencies; or
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15 | (4) compliance with federal or State statutory or | ||||||
16 | regulatory requirements.
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17 | (c) Except as provided in subsection (d), compliance review | ||||||
18 | documents and
the deliberations of the compliance
review | ||||||
19 | committee are privileged and confidential and are | ||||||
20 | nondiscoverable
and nonadmissible.
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21 | (1) Compliance review documents are privileged and | ||||||
22 | confidential and are
not subject to discovery or admissible | ||||||
23 | in evidence in any civil action.
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24 | (2) Individuals serving on compliance review | ||||||
25 | committees or acting under
the direction of a compliance | ||||||
26 | review committee shall not be required to testify
in any |
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1 | civil action about the contents of any compliance review | ||||||
2 | document or
conclusions of any compliance review committee | ||||||
3 | or about the actions taken by a
compliance review | ||||||
4 | committee.
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5 | (3) An affiliate of a credit union, a credit union | ||||||
6 | regulatory agency, and
the insurer of credit union share | ||||||
7 | accounts shall have access to compliance
review documents, | ||||||
8 | provided that (i) the documents shall remain confidential | ||||||
9 | and
are not subject to discovery from such entity and (ii) | ||||||
10 | delivery of compliance
review documents to an affiliate or | ||||||
11 | pursuant to the requirements of a credit
union regulatory | ||||||
12 | agency or an insurer of credit union share accounts shall | ||||||
13 | not
constitute a waiver of the privilege granted in this | ||||||
14 | Section.
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15 | (d) This Section does not apply to: (1) compliance review | ||||||
16 | committees on
which individuals serving on or at the direction | ||||||
17 | of the compliance review
committee have management | ||||||
18 | responsibility for the operations, records,
employees,
or | ||||||
19 | activities being examined or evaluated by the compliance review | ||||||
20 | committee
and (2) any civil or administrative action initiated | ||||||
21 | by a credit union
regulatory agency or an insurer of credit | ||||||
22 | union share accounts.
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23 | (e) This Section shall not be construed to limit the | ||||||
24 | discovery or
admissibility in any civil action of any documents | ||||||
25 | other than compliance review
documents or to require the | ||||||
26 | appointment of a compliance review committee.
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1 | (Source: P.A. 90-665, eff. 7-30-98; revised 9-14-16.)
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2 | (205 ILCS 305/48) (from Ch. 17, par. 4449)
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3 | Sec. 48. Loan limit. Within any limitations set forth in a | ||||||
4 | policy adopted by the bylaws of
the credit union, the board of | ||||||
5 | directors , a credit union may place a limit upon the aggregate
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6 | amount to be loaned to or cosigned for by any one member | ||||||
7 | provided that . Such loan limits
shall be subject to rules and | ||||||
8 | regulations promulgated by the Secretary. Unless
the credit | ||||||
9 | union's bylaws provide otherwise, no loan shall be made to any
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10 | member in an aggregate amount in excess of $200, or 10% of the | ||||||
11 | credit union's
unimpaired capital
and surplus , whichever is | ||||||
12 | greater . Such loan limits shall be subject to rules adopted by | ||||||
13 | the Secretary.
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14 | (Source: P.A. 97-133, eff. 1-1-12.)
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15 | (205 ILCS 305/53) (from Ch. 17, par. 4454)
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16 | Sec. 53. Loans to credit unions. A credit union may make | ||||||
17 | loans to other
credit unions if so provided and within the | ||||||
18 | limits set forth in a policy adopted by the board of directors | ||||||
19 | its bylaws .
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20 | (Source: P.A. 97-133, eff. 1-1-12.)
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21 | (205 ILCS 305/57) (from Ch. 17, par. 4458)
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22 | Sec. 57. Group purchasing and marketing . | ||||||
23 | (a) A credit union may, consistent with rules
and |
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1 | regulations promulgated by the Secretary, enter into | ||||||
2 | cooperative marketing
arrangements to facilitate its members' | ||||||
3 | voluntary purchase of such goods
and services as are in the | ||||||
4 | interest of improving economic and social conditions
of the | ||||||
5 | members.
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6 | (b) A credit union may create and use descriptive and brand | ||||||
7 | references to promote and market its identity, services, and | ||||||
8 | products to its members. | ||||||
9 | (Source: P.A. 97-133, eff. 1-1-12.)
| ||||||
10 | (205 ILCS 305/59) (from Ch. 17, par. 4460)
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11 | Sec. 59. Investment of funds.
| ||||||
12 | (a) Funds not used in loans to members may be
invested, | ||||||
13 | pursuant to subsection (7) of Section 30 of this Act, and
| ||||||
14 | subject to Departmental rules and
regulations:
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15 | (1) In securities, obligations or other instruments of | ||||||
16 | or issued by or
fully guaranteed as to principal and | ||||||
17 | interest by the United States of America
or any agency | ||||||
18 | thereof or in any trust or trusts established for investing
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19 | directly or collectively in the same;
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20 | (2) In obligations of any state of the United States, | ||||||
21 | the District of
Columbia, the Commonwealth of Puerto Rico, | ||||||
22 | and the several
territories organized
by Congress, or any | ||||||
23 | political subdivision thereof; however, a credit union
may
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24 | not invest more than 10% of its unimpaired capital and | ||||||
25 | surplus in the
obligations of one issuer, exclusive of |
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1 | general obligations of the issuer, and
investments in | ||||||
2 | municipal securities must be limited to securities rated in | ||||||
3 | one
of the 4
highest rating categories by a nationally | ||||||
4 | recognized statistical rating
organization;
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5 | (3) In certificates of deposit or passbook type | ||||||
6 | accounts issued by a state
or national bank, mutual savings | ||||||
7 | bank or savings and loan association; provided
that such | ||||||
8 | institutions have their accounts insured by the Federal | ||||||
9 | Deposit
Insurance Corporation or the Federal Savings and | ||||||
10 | Loan Insurance Corporation;
but provided, further, that a | ||||||
11 | credit union's investment in an account in
any one | ||||||
12 | institution may exceed the insured limit on accounts;
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13 | (4) In shares, classes of shares or share certificates | ||||||
14 | of other credit
unions, including, but not limited to | ||||||
15 | corporate credit unions; provided
that such credit unions | ||||||
16 | have their members' accounts insured by the NCUA
or other | ||||||
17 | approved insurers, and that if the members' accounts are so | ||||||
18 | insured,
a credit union's investment may exceed the insured | ||||||
19 | limit on accounts;
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20 | (5) In shares of a cooperative society organized under | ||||||
21 | the laws of this
State or the laws of the United States in | ||||||
22 | the total amount not exceeding
10% of the unimpaired | ||||||
23 | capital and surplus of the credit union; provided
that such | ||||||
24 | investment shall first be approved by the Department;
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25 | (6) In obligations of the State of Israel, or | ||||||
26 | obligations fully guaranteed
by the State of Israel as to |
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1 | payment of principal and interest;
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2 | (7) In shares, stocks or obligations of other financial | ||||||
3 | institutions in
the total amount not exceeding 5% of the | ||||||
4 | unimpaired capital and surplus
of the credit union;
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5 | (8) In federal funds and bankers' acceptances;
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6 | (9) In shares or stocks of Credit Union Service | ||||||
7 | Organizations in the
total amount not exceeding the greater | ||||||
8 | of 3% of the unimpaired
capital and surplus of the
credit | ||||||
9 | union or the amount authorized for federal credit unions ; .
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10 | (10) In corporate bonds identified as investment grade | ||||||
11 | by at least one nationally recognized statistical rating | ||||||
12 | organization, provided that: | ||||||
13 | (i) the board of directors has established a | ||||||
14 | written policy that addresses corporate bond | ||||||
15 | investment procedures and how the credit union will | ||||||
16 | manage credit risk, interest rate risk, liquidity | ||||||
17 | risk, and concentration risk; and | ||||||
18 | (ii) the credit union has documented in its records | ||||||
19 | that a credit analysis of a particular investment and | ||||||
20 | the issuing entity was conducted by the credit union, a | ||||||
21 | third party on behalf of the credit union qualified by | ||||||
22 | education or experience to assess the risk | ||||||
23 | characteristics of corporate bonds, or a nationally | ||||||
24 | recognized statistical rating agency before purchasing | ||||||
25 | the investment and the analysis is updated at least | ||||||
26 | annually for as long as it holds the investment; and |
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1 | (11) To aid in the credit union's management of its | ||||||
2 | assets, liabilities, and liquidity in the purchase of an | ||||||
3 | investment interest in a pool of loans, in whole or in part | ||||||
4 | and without regard to the membership of the borrowers, from | ||||||
5 | other depository institutions and financial type | ||||||
6 | institutions, including mortgage banks, finance companies, | ||||||
7 | insurance companies, and other loan sellers, subject to | ||||||
8 | such safety and soundness standards, limitations, and | ||||||
9 | qualifications as the Department may establish by rule or | ||||||
10 | guidance from time to time. | ||||||
11 | (b) As used in this Section, "political subdivision" | ||||||
12 | includes, but is not
limited to, counties,
townships, cities, | ||||||
13 | villages, incorporated towns, school districts, educational
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14 | service regions, special road districts, public water supply | ||||||
15 | districts, fire
protection districts, drainage districts, | ||||||
16 | levee districts, sewer districts,
housing authorities, park | ||||||
17 | districts, and any
agency, corporation, or instrumentality of a | ||||||
18 | state or its political
subdivisions, whether now or hereafter | ||||||
19 | created and whether herein specifically
mentioned or not.
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20 | (c) A credit union investing to fund an employee benefit | ||||||
21 | plan obligation is not subject to the investment limitations of | ||||||
22 | this Act and this Section and may purchase an investment that | ||||||
23 | would otherwise be impermissible if the investment is directly | ||||||
24 | related to the credit union's obligation under the employee | ||||||
25 | benefit plan and the credit union holds the investment only for | ||||||
26 | so long as it has an actual or potential obligation under the |
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1 | employee benefit plan.
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2 | (Source: P.A. 97-133, eff. 1-1-12.)
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3 | (205 ILCS 305/64.7) | ||||||
4 | Sec. 64.7. Network credit unions. | ||||||
5 | (a) Two or more credit unions merging pursuant to Section | ||||||
6 | 63 of this Act may elect to request a network credit union | ||||||
7 | designation for the surviving credit union from the Secretary. | ||||||
8 | The request shall be set forth in the plan of merger and | ||||||
9 | certificate of merger executed by the credit unions and | ||||||
10 | submitted to the Secretary pursuant to subsection (4) of | ||||||
11 | Section 63. The Secretary's approval of a certificate of merger | ||||||
12 | containing a network credit union designation request shall | ||||||
13 | constitute approval of the use of the network designation as a | ||||||
14 | brand or other identifier of the surviving credit union. If the | ||||||
15 | surviving credit union desires to include the network | ||||||
16 | designation in its legal name, make any other change to its | ||||||
17 | legal name, or both, it shall proceed with an amendment to the | ||||||
18 | articles of incorporation and bylaws of the surviving credit | ||||||
19 | union pursuant to Section 4 of this Act. | ||||||
20 | (b) A network credit union is a cooperative business | ||||||
21 | structure comprised of 2 or more merging credit unions with a | ||||||
22 | collective goal of efficiently serving their combined | ||||||
23 | membership and gaining economies of scale through common | ||||||
24 | vision, strategy and initiative. The merging credit unions | ||||||
25 | shall be identified as divisional credit unions, branches, or |
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1 | units of the network credit union or by other descriptive | ||||||
2 | references that ensure the members understand they are dealing | ||||||
3 | with one credit union rather than multiple credit unions. | ||||||
4 | Descriptive and brand references may also be created and used | ||||||
5 | to promote the identity, services, and products of the network | ||||||
6 | credit union to its members. | ||||||
7 | (c) Each divisional credit union may shall have an its own | ||||||
8 | advisory board of directors and a chief management official to | ||||||
9 | assist in maintaining and leveraging its respective local | ||||||
10 | identity for the benefit of the surviving credit union. The | ||||||
11 | divisional credit union advisory boards shall be appointed by | ||||||
12 | the network credit union board of directors. Each divisional | ||||||
13 | credit union's advisory board of directors may shall appoint a | ||||||
14 | its divisional credit union chief management official and may | ||||||
15 | also appoint one of its directors to serve on the network | ||||||
16 | credit union's nominating committee. A divisional credit union | ||||||
17 | may determine to identify its advisory board as a committee and | ||||||
18 | its divisional chief management official with a title it deems | ||||||
19 | reasonable and appropriate. | ||||||
20 | (d) (c) The network credit union is the surviving legal | ||||||
21 | entity in the merger and supervision, examination, audit, | ||||||
22 | reporting, governance, and management shall be conducted or | ||||||
23 | performed at the network credit union level. All share | ||||||
24 | insurance, safety and soundness, and statutory and regulatory | ||||||
25 | requirements and limitations shall be evaluated at the network | ||||||
26 | credit union level.
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1 | (Source: P.A. 99-614, eff. 7-22-16.)
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2 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||
3 | becoming law.
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