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| | HB1792 Engrossed | | LRB100 08504 SMS 18627 b |
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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.)
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10 | | (205 ILCS 305/59) (from Ch. 17, par. 4460)
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11 | | Sec. 59. Investment of funds.
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12 | | (a) Funds not used in loans to members may be
invested, |
13 | | pursuant to subsection (7) of Section 30 of this Act, and
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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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