Bill Text: IL SB1534 | 2021-2022 | 102nd General Assembly | Engrossed
Bill Title: Provides that the Act may be referred to as the Patient and Provider Protection Act. Creates the Public Higher Education Emergency Health Act. Requires each public institution of higher education to make emergency contraception available for purchase through at least one vending machine located on each campus. Amends the Illinois Insurance Code. Requires abortion care coverage to include medications prescribed for the purpose of producing an abortion. Requires health insurance to provide coverage for all abortifacients, gender-affirming health care medication, human immunodeficiency virus pre-exposure prophylaxis and post-exposure prophylaxis drugs. Amends the Birth Center Licensing Act. Changes the definition of "birth center". Defines "reproductive health care services". Amends the Pharmacy Practice Act. Allows a pharmacist to dispense hormonal contraceptives. Amends the Criminal Identification Act. Provides that nothing shall be construed to permit or require the reporting of lawful health care activity. Amends the Wrongful Death Act. Prohibits a cause of action against any person (rather than only a physician or a medical institution) for the wrongful death of a fetus caused by an abortion where the abortion was permitted by law and the requisite consent was lawfully given. Amends the Illinois Parentage Act of 2015. Provides that the terms of the most recent informed consent govern if the intended parent or parents no longer wish to use any remaining cryopreserved fertilized ovum. Amends the Reproductive Health Act. Includes assisted reproduction in the definition of "reproductive health care". Requires a lawsuit brought under the Act to be commenced within 2 years after the cause of action was discovered. Allows an advanced practice registered nurse or physician assistant to perform aspiration abortion procedures. Amends the Medical Practice Act of 1987, the Nurse Practice Act, the Physician Assistant Practice Act of 1987, the Clinical Social Work and Social Work Practice Act, the Pharmacy Practice Act, the Genetic Counselor Licensing Act, the Clinical Psychologist Licensing Act, the Marriage and Family Therapy Licensing Act, the Licensed Certified Professional Midwife Practice Act, the Professional Counselor and Clinical Professional Counselor Licensing and Practice Act, and the Registered Surgical Assistant and Registered Surgical Technologist Title Protection Act. Provides that the Department of Financial and Professional Regulation shall not take action against a license or permit issued under those Acts based solely upon the license of the person being revoked or the person otherwise being disciplined by any other state or territory for actions related to any health care, medical service, or procedure if the revocation or disciplinary action was based solely on a violation of the other state's law prohibiting such action performed in any state for any person and such conduct is permissible under State law. Amends the Medical Practice Act of 1987, the Nurse Practice Act, and the Physician Assistant Practice Act. Allows the Department of Financial and Professional Regulation to issue temporary permits for reproductive health care to a person who is licensed to practice under Acts equivalent to those in another state. Creates the Lawful Health Care Activity Act. Provides that the laws of the State govern in any case or controversy heard in the State related to lawful health care activity. Amends the Uniform Interstate Depositions and Discovery Act. Contains provisions regarding unenforceable foreign subpoenas. Amends the Uniform Act to Secure the Attendance of Witnesses from Within or Without a State in Criminal Proceedings. Restricts a subpoena, summons, or order from being issued for a witness to provide information or testimony in relation to any proceeding if the charge is based on conduct that involves lawful health care activity that is not unlawful in the State. Amends the Uniform Criminal Extradition Act. Provides that the Governor shall not surrender a person if the charge is based on conduct that involves seeking, providing, receiving, assisting in seeking, providing, or receiving, providing material support for, or traveling to obtain lawful health care that is not unlawful under the laws of the State. Amends the Counties Code, the Medical Practice Act of 1987, and the Consent by Minors to Health Care Services Act to remove references to the Parental Notice of Abortion Act of 1983 and the Parental Notice of Abortion Act of 1995. Makes other and conforming changes to various Acts. Effective immediately, except that Article 2 is effective on January 1, 2024.
Spectrum: Partisan Bill (Democrat 43-0)
Status: (Engrossed - Dead) 2023-01-06 - Placed on Calendar Order of Concurrence House Amendment(s) 2, 3, 4, 1 - January 8, 2023 [SB1534 Detail]
Download: Illinois-2021-SB1534-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 19, 23, 34, 51, 57, 59, and 64.7 and by | ||||||
6 | adding Section 20.5 as follows:
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7 | (205 ILCS 305/19) (from Ch. 17, par. 4420)
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8 | Sec. 19. Meeting of members.
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9 | (1) (a) The annual meeting shall be held each
year during | ||||||
10 | the months of January, February or March or such other month
as | ||||||
11 | may be approved by the Department. The meeting shall be held at | ||||||
12 | the
time, place and in the manner set forth in the bylaws. Any | ||||||
13 | special
meetings of the members of the credit union shall be | ||||||
14 | held at the time, place
and in the manner set forth in the | ||||||
15 | bylaws. Unless otherwise set forth in
this Act, quorum | ||||||
16 | requirements for meetings of members shall be established
by a | ||||||
17 | credit union in its bylaws. Notice of all meetings must be | ||||||
18 | given by
the secretary of the credit union at least 7 days | ||||||
19 | before the date of such
meeting, either by handing a written or | ||||||
20 | printed notice to each
member of the credit union, by mailing | ||||||
21 | the notice to the member at his address
as listed on the books | ||||||
22 | and records of the credit union, or by posting a
notice of the | ||||||
23 | meeting in three conspicuous places, including the office
of |
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1 | the credit union , by posting the notice of the meeting on the | ||||||
2 | credit union's website, or by disclosing the notice of the | ||||||
3 | meeting in membership newsletters or account statements .
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4 | (b) Unless expressly prohibited by the articles of | ||||||
5 | incorporation or bylaws and subject to applicable requirements | ||||||
6 | of this Act, the board of directors may provide by resolution | ||||||
7 | that members may attend, participate in, act in, and vote at | ||||||
8 | any annual meeting or special meeting through the use of a | ||||||
9 | conference telephone or interactive technology, including, but | ||||||
10 | not limited to, electronic transmission, internet usage, or | ||||||
11 | remote communication, by means of which all persons | ||||||
12 | participating in the meeting can communicate with each other. | ||||||
13 | Participation through the use of a conference telephone or | ||||||
14 | interactive technology shall constitute attendance, presence, | ||||||
15 | and representation in person at the annual meeting or special | ||||||
16 | meeting of the person or persons so participating and count | ||||||
17 | towards the quorum required to conduct business at the | ||||||
18 | meeting. The following conditions shall apply to any virtual | ||||||
19 | meeting of the members: | ||||||
20 | (i) the credit union must internally possess or retain | ||||||
21 | the technological capacity to facilitate virtual meeting | ||||||
22 | attendance, participation, communication, and voting; and | ||||||
23 | (ii) the members must receive notice of the use of a | ||||||
24 | virtual meeting format and appropriate instructions for | ||||||
25 | joining, participating, and voting during the virtual | ||||||
26 | meeting at least 7 days before the virtual meeting. |
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1 | (2) On all questions and at all elections, except election | ||||||
2 | of directors,
each member has one vote regardless of the | ||||||
3 | number of his shares. There
shall be no voting by proxy except | ||||||
4 | on the election of directors, proposals
for merger or | ||||||
5 | voluntary dissolution. Members may vote on questions , | ||||||
6 | including, without limitation, the approval of mergers and | ||||||
7 | voluntary dissolutions under this Act, and in elections by | ||||||
8 | secure electronic record if approved by the board of | ||||||
9 | directors. All voting on the election of directors
shall be by | ||||||
10 | ballot, but when there is no contest, written or electronic | ||||||
11 | ballots need not
be cast. The record date to be used for the | ||||||
12 | purpose of determining which
members are entitled to notice of | ||||||
13 | or to vote at any meeting of members,
may be fixed in advance | ||||||
14 | by the directors on a date not more than 90 days
nor less than | ||||||
15 | 10 days prior to the date of the meeting. If no record date
is | ||||||
16 | fixed by the directors, the first day on which notice of the | ||||||
17 | meeting
is given, mailed or posted is the record date.
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18 | (3) Regardless of the number of shares owned by a society, | ||||||
19 | association,
club, partnership, other credit union or | ||||||
20 | corporation, having membership
in the credit union, it shall | ||||||
21 | be entitled to only
one vote and it may be represented and have | ||||||
22 | its vote cast by its
designated agent acting on its
behalf | ||||||
23 | pursuant
to a resolution
adopted by the organization's board | ||||||
24 | of directors or similar governing
authority;
provided that the | ||||||
25 | credit union shall obtain a certified copy of such resolution
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26 | before such vote may be cast. |
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1 | (4) A member may revoke a proxy by delivery to the credit | ||||||
2 | union of a written statement to that effect, by execution of a | ||||||
3 | subsequently dated proxy, by execution of a secure electronic | ||||||
4 | record, or by attendance at a meeting and voting in person.
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5 | (5) As used in this Section, "electronic" and "electronic | ||||||
6 | record" have the meanings ascribed to those terms in the | ||||||
7 | Electronic Commerce Security Act. As used in this Section, | ||||||
8 | "secured electronic record" means an electronic record that | ||||||
9 | meets the criteria set forth in Section 10-105 of the | ||||||
10 | Electronic Commerce Security Act. | ||||||
11 | (Source: P.A. 100-361, eff. 8-25-17.)
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12 | (205 ILCS 305/20.5 new) | ||||||
13 | Sec. 20.5. Appointment of associate directors. | ||||||
14 | (a) The board of directors of a credit union may, in its | ||||||
15 | discretion, appoint one or more associate directors to serve | ||||||
16 | in an advisory capacity. The board shall prescribe the duties | ||||||
17 | of an associate director and the manner in which associate | ||||||
18 | directors are appointed and removed. The board shall not | ||||||
19 | delegate to associate directors any of the duties or | ||||||
20 | responsibilities prescribed by this Act or other applicable | ||||||
21 | law to be performed by directors duly elected by their | ||||||
22 | members. An associate director shall not be deemed or | ||||||
23 | considered to be a director for any purpose under this Act. | ||||||
24 | (b) Before appointing an associate director, the board | ||||||
25 | shall confirm that the person meets all of the requirements to |
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1 | serve as a director, including, without limitation, a working | ||||||
2 | familiarity with the financial and accounting practices of the | ||||||
3 | credit union as set forth in subsection (c) of Section 30. | ||||||
4 | (c) An associate director may participate in meetings of | ||||||
5 | the board but may not vote or otherwise act as a director. With | ||||||
6 | respect to any issue that comes before the board for | ||||||
7 | deliberation, the board may request that all associate | ||||||
8 | directors excuse themselves from the meeting of the board and | ||||||
9 | the associate directors shall immediately comply with the | ||||||
10 | request. | ||||||
11 | (d) The board shall require each associate director to | ||||||
12 | sign a confidentiality or non-disclosure agreement to ensure | ||||||
13 | that information concerning the credit union remains | ||||||
14 | confidential.
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15 | (205 ILCS 305/23) (from Ch. 17, par. 4424)
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16 | Sec. 23. Compensation of officials.
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17 | (1) Directors and committee members may
receive reasonable | ||||||
18 | compensation for their service as such, the amount of which | ||||||
19 | shall be set by the board of directors , in accordance with | ||||||
20 | written policies and procedures established by the board of | ||||||
21 | directors. If the Department determines the payment of | ||||||
22 | director or committee member compensation, or both, creates a | ||||||
23 | safety and soundness issue for a credit union, the Department | ||||||
24 | shall utilize the standards set forth in 38 Ill. Adm. Code | ||||||
25 | 190.25 and supplemental guidelines to address and resolve the |
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1 | issue. An enforcement action taken pursuant to 38 Ill. Adm. | ||||||
2 | Code 190.25 and guidelines and specified by the Act shall be | ||||||
3 | used to reduce or suspend the compensation paid to the | ||||||
4 | directors and committee members . The Department shall, by | ||||||
5 | rule, establish maximum rates of reasonable compensation that | ||||||
6 | are generally applicable to credit unions considering factors | ||||||
7 | the Department may establish from time to time, including, but | ||||||
8 | not limited to, total assets, nonprofit cooperative structure, | ||||||
9 | and the best interests of members.
"Compensation" as used in | ||||||
10 | this subsection (1) refers to remuneration expense to the | ||||||
11 | credit union for services provided by a director or committee | ||||||
12 | member in
his or her capacity as director or committee member. | ||||||
13 | The remuneration expense is in the form of monetary payments | ||||||
14 | and shall be disclosed on an annual basis to the membership in | ||||||
15 | the financial statement that is part of the annual membership | ||||||
16 | meeting materials. The disclosure shall contain: (i) the | ||||||
17 | amount paid to each director and (ii) the amount paid to the | ||||||
18 | directors as a group. "Compensation" does not include any of | ||||||
19 | the expenses described in subsections (2) and (3) of this | ||||||
20 | Section. | ||||||
21 | (2) The credit union may incur the expense of providing
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22 | reasonable life, health,
accident, and similar insurance | ||||||
23 | protection benefits for directors and committee members.
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24 | (3) Directors, committee members and
employees, while on | ||||||
25 | official business of the credit union, may be reimbursed
for | ||||||
26 | reasonable and necessary expenses. Alternatively, the credit |
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1 | union may make direct payment to a third party for such | ||||||
2 | business expenses. Reasonable and necessary expenses may | ||||||
3 | include the payment of travel costs for the foregoing | ||||||
4 | officials and one guest per official. All payment of costs | ||||||
5 | shall be made in accordance with written policies and | ||||||
6 | procedures established by the board of directors.
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7 | (4) The board of directors may establish
compensation for | ||||||
8 | officers of the credit union.
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9 | (Source: P.A. 101-567, eff. 8-23-19.)
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10 | (205 ILCS 305/34) (from Ch. 17, par. 4435)
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11 | Sec. 34. Duties of supervisory committee. | ||||||
12 | (1) The supervisory committee
shall make or cause to be | ||||||
13 | made an annual internal audit of the books and
affairs of the | ||||||
14 | credit union to determine that the credit union's accounting
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15 | records and reports are prepared promptly and accurately | ||||||
16 | reflect operations
and results, that internal controls are | ||||||
17 | established and effectively
maintained to safeguard the assets | ||||||
18 | of the credit union, and that the
policies, procedures and | ||||||
19 | practices established by the board of directors
and management | ||||||
20 | of the credit union are being properly administered. The | ||||||
21 | supervisory committee
shall submit a report of that audit to | ||||||
22 | the board of directors and a summary of that report to the | ||||||
23 | members at the next annual
meeting of the credit union. It | ||||||
24 | shall make or cause to be made such
supplementary audits as it | ||||||
25 | deems necessary or as are required by the Secretary
or by the |
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1 | board of directors, and submit reports of these
supplementary | ||||||
2 | audits to the Secretary or board of directors as applicable.
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3 | If the supervisory committee has not engaged a licensed | ||||||
4 | certified public accountant or licensed certified public | ||||||
5 | accounting firm to make the internal audit,
the supervisory | ||||||
6 | committee or other officials of the credit union shall not
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7 | indicate or in any manner imply that such audit has been | ||||||
8 | performed by a licensed certified
public accountant or | ||||||
9 | licensed certified public accounting firm or that the audit | ||||||
10 | represents the independent opinion of a licensed certified
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11 | public accountant or licensed certified public accounting | ||||||
12 | firm. The supervisory committee must retain its tapes and | ||||||
13 | working papers
of each internal audit for inspection by the | ||||||
14 | Department. The report of this
audit must be made on a form | ||||||
15 | approved by the Secretary. A copy of the report
must be | ||||||
16 | promptly delivered to the Secretary as set forth in paragraph | ||||||
17 | (C) of subsection (3) .
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18 | (2) The supervisory committee shall make or cause to be | ||||||
19 | made at least
once each year a reasonable percentage | ||||||
20 | verification of members' share and
loan accounts, consistent | ||||||
21 | with rules promulgated by the Secretary.
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22 | (3) (A) The supervisory committee of a credit union with | ||||||
23 | assets of $10,000,000
or more shall engage a licensed | ||||||
24 | certified public accountant or licensed certified public | ||||||
25 | accounting firm to perform an annual external
independent | ||||||
26 | audit of the credit union's financial statements in accordance
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1 | with generally accepted auditing standards and the financial | ||||||
2 | statements shall be issued in accordance with accounting | ||||||
3 | principles generally accepted in the United States of America. | ||||||
4 | (B) The supervisory committee of a
credit union with | ||||||
5 | assets of $5,000,000 or more, but less than $10,000,000,
shall | ||||||
6 | engage a licensed certified public accountant or licensed | ||||||
7 | certified public accounting firm to perform on an annual | ||||||
8 | basis: (i) an agreed-upon procedures engagement under | ||||||
9 | attestation standards established by the American Institute of | ||||||
10 | Certified Public Accountants to minimally satisfy the | ||||||
11 | supervisory committee internal audit standards set forth in | ||||||
12 | subsection (1); or (ii) an external independent audit of the | ||||||
13 | credit union's financial statements pursuant to the standards | ||||||
14 | set forth in paragraph (A) of subsection (3).
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15 | (C) Notwithstanding anything to the contrary in Section 6, | ||||||
16 | each credit union organized under this Act shall select the | ||||||
17 | annual period it desires to use for purposes of performing the | ||||||
18 | external independent audit, agreed-upon procedures engagement, | ||||||
19 | or internal audit described in this Section. The annual period | ||||||
20 | may end on the final day of any month and shall be construed to | ||||||
21 | mean once every calendar year and not once every 12-month | ||||||
22 | period. Irrespective of the annual period selected, the credit | ||||||
23 | union shall complete its external independent audit report, | ||||||
24 | agreed-upon procedures report, or internal audit report and | ||||||
25 | deliver a copy to the Secretary no later than 120 days after | ||||||
26 | the effective date of the audit or engagement, which shall |
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1 | mean the last day of the selected annual period. The external | ||||||
2 | independent audit report or agreed-upon procedures report | ||||||
3 | shall be completed and a copy thereof delivered to the | ||||||
4 | Secretary no later than 120 days after the end of the calendar | ||||||
5 | or fiscal year under audit or fiscal period for which the | ||||||
6 | agreed-upon procedures are performed. A credit union or group | ||||||
7 | of credit unions may obtain an extension of the due date upon | ||||||
8 | application to and receipt of written approval from the | ||||||
9 | Secretary. | ||||||
10 | (D) If the credit union engages a licensed certified | ||||||
11 | public accountant or licensed certified public accounting firm | ||||||
12 | to perform an annual external independent audit of the credit | ||||||
13 | union's financial statements pursuant to the standards in | ||||||
14 | paragraph (A) of subsection (3) or an annual agreed-upon | ||||||
15 | procedures engagement pursuant to the standards in paragraph | ||||||
16 | (B) of subsection (3), then the annual internal audit | ||||||
17 | requirements of subsection (1) shall be deemed satisfied and | ||||||
18 | met in all respects. | ||||||
19 | (4) In determining the appropriate balance in the | ||||||
20 | allowance for loan losses account, a credit union may | ||||||
21 | determine its historical loss rate using a defined period of | ||||||
22 | time of less than 5 years, provided that: | ||||||
23 | (A) the methodology used to determine the defined | ||||||
24 | period of time is formally documented in the credit | ||||||
25 | union's policies and procedures and is appropriate to the | ||||||
26 | credit union's size, business strategy, and loan portfolio |
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1 | characteristics and the economic environment of the areas | ||||||
2 | and employers served by the credit union; | ||||||
3 | (B) supporting documentation is maintained for the | ||||||
4 | technique used to develop the credit union loss rates, | ||||||
5 | including the period of time used to accumulate historical | ||||||
6 | loss data and the factors considered in establishing the | ||||||
7 | time frames; and | ||||||
8 | (C) the external auditor conducting the credit union's | ||||||
9 | financial statement audit has analyzed the methodology | ||||||
10 | employed by the credit union and concludes that the | ||||||
11 | financial statements, including the allowance for loan | ||||||
12 | losses, are fairly stated in all material respects in | ||||||
13 | accordance with U.S. Generally Accepted Accounting | ||||||
14 | Principles, as promulgated by the Financial Accounting | ||||||
15 | Standards Board. | ||||||
16 | (5) A majority of the members of the supervisory committee
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17 | shall constitute a quorum.
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18 | (6) On an annual basis commencing January 1, 2015, the | ||||||
19 | members of the supervisory committee shall receive training | ||||||
20 | related to their statutory duties. Supervisory committee | ||||||
21 | members may receive the training through internal credit union | ||||||
22 | training, external training offered by the credit union's | ||||||
23 | retained auditors, trade associations, vendors, regulatory | ||||||
24 | agencies, or any other sources or on-the-job experience, or a | ||||||
25 | combination of those activities. The training may be received | ||||||
26 | through any medium, including, but not limited to, |
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1 | conferences, workshops, audit closing meetings, seminars, | ||||||
2 | teleconferences, webinars, and other Internet-based delivery | ||||||
3 | channels. | ||||||
4 | (Source: P.A. 100-778, eff. 8-10-18; 101-81, eff. 7-12-19.)
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5 | (205 ILCS 305/51) (from Ch. 17, par. 4452)
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6 | Sec. 51. Other loan programs.
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7 | (1) Subject to such rules and regulations
as the Secretary | ||||||
8 | may promulgate, a credit union may participate in loans
to | ||||||
9 | credit union members jointly with other credit unions, | ||||||
10 | corporations, or
financial institutions. An originating credit | ||||||
11 | union may originate
loans only to its own members. A | ||||||
12 | participating credit union that is
not the originating lender | ||||||
13 | may participate in loans made to its own members or
to members | ||||||
14 | of another participating credit union.
"Originating lender" | ||||||
15 | means the participating credit union with which the member
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16 | contracts. A master participation agreement must be properly | ||||||
17 | executed, and the
agreement must include provisions for | ||||||
18 | identifying, either through documents
incorporated by | ||||||
19 | reference or directly in the agreement, the participation loan
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20 | or loans prior to their sale.
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21 | (2) Any credit union with assets of $500,000 or more may | ||||||
22 | loan to its members
under scholarship programs which are
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23 | subject to a federal or state law providing 100% repayment | ||||||
24 | guarantee.
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25 | (3) A credit union may purchase the conditional sales
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1 | contracts, notes
and similar instruments which evidence an | ||||||
2 | indebtedness of its members. In the management of its assets, | ||||||
3 | liabilities, and liquidity, a credit union may purchase the | ||||||
4 | conditional sales contracts, notes, and other similar | ||||||
5 | instruments that evidence the consumer indebtedness of the | ||||||
6 | members of another credit union. "Consumer indebtedness" means | ||||||
7 | indebtedness incurred for personal, family, or household | ||||||
8 | purposes.
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9 | (4) With approval of the board of directors, a credit | ||||||
10 | union may make loans,
either on its own or jointly with other | ||||||
11 | credit unions, corporations or
financial
institutions, to | ||||||
12 | credit union organizations; provided, that the aggregate
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13 | amount of all such loans outstanding shall not at any time | ||||||
14 | exceed the greater
of 6% 3% of the paid-in and unimpaired | ||||||
15 | capital and surplus of the credit
union or the amount | ||||||
16 | authorized for federal credit unions.
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17 | (5) With the approval of the board of directors, a credit | ||||||
18 | union may make loans, either on its own or jointly with other | ||||||
19 | credit unions, corporations, or financial institutions, to | ||||||
20 | community development financial institutions as defined in | ||||||
21 | regulations issued by the U.S. Department of the Treasury and | ||||||
22 | minority depository institutions as defined by the National | ||||||
23 | Credit Union Administration. The aggregate amount of all such | ||||||
24 | loans outstanding shall not at any time exceed 5% of the | ||||||
25 | paid-in and unimpaired capital and surplus of the credit | ||||||
26 | union. |
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1 | (Source: P.A. 97-133, eff. 1-1-12.)
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2 | (205 ILCS 305/57) (from Ch. 17, par. 4458)
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3 | Sec. 57. Group purchasing and marketing. | ||||||
4 | (a) A credit union may, consistent with rules
and | ||||||
5 | regulations promulgated by the Secretary, enter into | ||||||
6 | cooperative marketing
arrangements to facilitate its members' | ||||||
7 | voluntary purchase of such goods
and services as are in the | ||||||
8 | interest of improving economic and social conditions
of the | ||||||
9 | members.
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10 | (b) A credit union may create and use descriptive and | ||||||
11 | brand references to promote and market its identity, services, | ||||||
12 | and products to its members. In the case of a merger pursuant | ||||||
13 | to Section 63, the surviving credit union may identify the | ||||||
14 | merging credit union as a division, branch, unit, or other | ||||||
15 | descriptive reference that ensures the members understand they | ||||||
16 | are dealing with one credit union rather than multiple credit | ||||||
17 | unions, as of the effective date of the merger. | ||||||
18 | (Source: P.A. 100-361, eff. 8-25-17.)
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19 | (205 ILCS 305/59) (from Ch. 17, par. 4460)
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20 | Sec. 59. Investment of funds.
| ||||||
21 | (a) Funds not used in loans to members may be
invested, | ||||||
22 | pursuant to subsection (7) of Section 30 of this Act, and
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23 | subject to Departmental rules and
regulations:
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24 | (1) In securities, obligations or other instruments of |
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1 | or issued by or
fully guaranteed as to principal and | ||||||
2 | interest by the United States of America
or any agency | ||||||
3 | thereof or in any trust or trusts established for | ||||||
4 | investing
directly or collectively in the same;
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5 | (2) In obligations of any state of the United States, | ||||||
6 | the District of
Columbia, the Commonwealth of Puerto Rico, | ||||||
7 | and the several
territories organized
by Congress, or any | ||||||
8 | political subdivision thereof; however, a credit union
may
| ||||||
9 | not invest more than 10% of its unimpaired capital and | ||||||
10 | surplus in the
obligations of one issuer, exclusive of | ||||||
11 | general obligations of the issuer, and
investments in | ||||||
12 | municipal securities must be limited to securities rated | ||||||
13 | in one
of the 4
highest rating categories by a nationally | ||||||
14 | recognized statistical rating
organization;
| ||||||
15 | (3) In certificates of deposit or passbook type | ||||||
16 | accounts issued by a state
or national bank, mutual | ||||||
17 | savings bank or savings and loan association; provided
| ||||||
18 | that such institutions have their accounts insured by the | ||||||
19 | Federal Deposit
Insurance Corporation or the Federal | ||||||
20 | Savings and Loan Insurance Corporation;
but provided, | ||||||
21 | further, that a credit union's investment in an account in
| ||||||
22 | any one institution may exceed the insured limit on | ||||||
23 | accounts;
| ||||||
24 | (4) In shares, classes of shares or share certificates | ||||||
25 | of other credit
unions, including, but not limited to | ||||||
26 | corporate credit unions; provided
that such credit unions |
| |||||||
| |||||||
1 | have their members' accounts insured by the NCUA
or other | ||||||
2 | approved insurers, and that if the members' accounts are | ||||||
3 | so insured,
a credit union's investment may exceed the | ||||||
4 | insured limit on accounts;
| ||||||
5 | (5) In shares of a cooperative society organized under | ||||||
6 | the laws of this
State or the laws of the United States in | ||||||
7 | the total amount not exceeding
10% of the unimpaired | ||||||
8 | capital and surplus of the credit union; provided
that | ||||||
9 | such investment shall first be approved by the Department;
| ||||||
10 | (6) In obligations of the State of Israel, or | ||||||
11 | obligations fully guaranteed
by the State of Israel as to | ||||||
12 | payment of principal and interest;
| ||||||
13 | (7) In shares, stocks or obligations of other | ||||||
14 | financial institutions in
the total amount not exceeding | ||||||
15 | 5% of the unimpaired capital and surplus
of the credit | ||||||
16 | union;
| ||||||
17 | (8) In federal funds and bankers' acceptances;
| ||||||
18 | (9) In shares or stocks of Credit Union Service | ||||||
19 | Organizations in the
total amount not exceeding the | ||||||
20 | greater of 6% 3% of the unimpaired
capital and surplus of | ||||||
21 | the
credit union or the amount authorized for federal | ||||||
22 | credit unions;
| ||||||
23 | (10) In corporate bonds identified as investment grade | ||||||
24 | by at least one nationally recognized statistical rating | ||||||
25 | organization, provided that: | ||||||
26 | (i) the board of directors has established a |
| |||||||
| |||||||
1 | written policy that addresses corporate bond | ||||||
2 | investment procedures and how the credit union will | ||||||
3 | manage credit risk, interest rate risk, liquidity | ||||||
4 | risk, and concentration risk; and | ||||||
5 | (ii) the credit union has documented in its | ||||||
6 | records that a credit analysis of a particular | ||||||
7 | investment and the issuing entity was conducted by the | ||||||
8 | credit union, a third party on behalf of the credit | ||||||
9 | union qualified by education or experience to assess | ||||||
10 | the risk characteristics of corporate bonds, or a | ||||||
11 | nationally recognized statistical rating agency before | ||||||
12 | purchasing the investment and the analysis is updated | ||||||
13 | at least annually for as long as it holds the | ||||||
14 | investment; | ||||||
15 | (11) To aid in the credit union's management of its | ||||||
16 | assets, liabilities, and liquidity in the purchase of an | ||||||
17 | investment interest in a pool of loans, in whole or in part | ||||||
18 | and without regard to the membership of the borrowers, | ||||||
19 | from other depository institutions and financial type | ||||||
20 | institutions, including mortgage banks, finance companies, | ||||||
21 | insurance companies, and other loan sellers, subject to | ||||||
22 | such safety and soundness standards, limitations, and | ||||||
23 | qualifications as the Department may establish by rule or | ||||||
24 | guidance from time to time; | ||||||
25 | (12) To aid in the credit union's management of its | ||||||
26 | assets, liabilities, and liquidity by receiving funds from |
| |||||||
| |||||||
1 | another financial institution as evidenced by certificates | ||||||
2 | of deposit, share certificates, or other classes of shares | ||||||
3 | issued by the credit union to the financial institution; | ||||||
4 | and | ||||||
5 | (13) In the purchase and assumption of assets held by | ||||||
6 | other financial institutions, with approval of the | ||||||
7 | Secretary and subject to any safety and soundness | ||||||
8 | standards, limitations, and qualifications as the | ||||||
9 | Department may establish by rule or guidance from time to | ||||||
10 | time ; and . | ||||||
11 | (14) In the shares, stocks, or obligations of | ||||||
12 | community development financial institutions as defined in | ||||||
13 | regulations issued by the U.S. Department of the Treasury | ||||||
14 | and minority depository institutions as defined by the | ||||||
15 | National Credit Union Administration; however, the | ||||||
16 | aggregate amount of all such investments shall not at any | ||||||
17 | time exceed 5% of the paid-in and unimpaired capital and | ||||||
18 | surplus of the credit union. | ||||||
19 | (b) As used in this Section: | ||||||
20 | "Political subdivision" includes, but is not
limited to, | ||||||
21 | counties,
townships, cities, villages, incorporated towns, | ||||||
22 | school districts, educational
service regions, special road | ||||||
23 | districts, public water supply districts, fire
protection | ||||||
24 | districts, drainage districts, levee districts, sewer | ||||||
25 | districts,
housing authorities, park districts, and any
| ||||||
26 | agency, corporation, or instrumentality of a state or its |
| |||||||
| |||||||
1 | political
subdivisions, whether now or hereafter created and | ||||||
2 | whether herein specifically
mentioned or not.
| ||||||
3 | "Financial institution" includes any bank, savings bank, | ||||||
4 | savings and loan association, or credit union established | ||||||
5 | under the laws of the United States, this State, or any other | ||||||
6 | state. | ||||||
7 | (c) A credit union investing to fund an employee benefit | ||||||
8 | plan obligation is not subject to the investment limitations | ||||||
9 | of this Act and this Section and may purchase an investment | ||||||
10 | that would otherwise be impermissible if the investment is | ||||||
11 | directly related to the credit union's obligation under the | ||||||
12 | employee benefit plan and the credit union holds the | ||||||
13 | investment only for so long as it has an actual or potential | ||||||
14 | obligation under the employee benefit plan.
| ||||||
15 | (d) If a credit union acquires loans from another | ||||||
16 | financial institution or financial-type institution pursuant | ||||||
17 | to this Section, the credit union shall be authorized to | ||||||
18 | provide loan servicing and collection services in connection | ||||||
19 | with those loans. | ||||||
20 | (Source: P.A. 100-361, eff. 8-25-17; 100-778, eff. 8-10-18; | ||||||
21 | 101-567, eff. 8-23-19.)
| ||||||
22 | (205 ILCS 305/64.7) | ||||||
23 | Sec. 64.7. Network credit unions. | ||||||
24 | (a) Two or more credit unions merging pursuant to Section | ||||||
25 | 63 of this Act may elect to request a network credit union |
| |||||||
| |||||||
1 | designation for the surviving credit union from the Secretary. | ||||||
2 | The request shall be set forth in the plan of merger and | ||||||
3 | certificate of merger executed by the credit unions and | ||||||
4 | submitted to the Secretary pursuant to subsection (4) of | ||||||
5 | Section 63. The Secretary's approval of a certificate of | ||||||
6 | merger containing a network credit union designation request | ||||||
7 | shall constitute approval of the use of the network | ||||||
8 | designation as a brand or other identifier of the surviving | ||||||
9 | credit union. If the surviving credit union desires to include | ||||||
10 | the network designation in its legal name, make any other | ||||||
11 | change to its legal name, or both, it shall proceed with an | ||||||
12 | amendment to the articles of incorporation and bylaws of the | ||||||
13 | surviving credit union pursuant to Section 4 of this Act. | ||||||
14 | (b) A network credit union is a cooperative business | ||||||
15 | structure comprised of 2 or more merging credit unions with a | ||||||
16 | collective goal of efficiently serving their combined | ||||||
17 | membership and gaining economies of scale through common | ||||||
18 | vision, strategy and initiative. The merging credit unions | ||||||
19 | shall be identified as divisional credit unions, branches, or | ||||||
20 | units of the network credit union or by other descriptive | ||||||
21 | references that ensure the members understand they are dealing | ||||||
22 | with one credit union rather than multiple credit unions. | ||||||
23 | Descriptive and brand references may also be created and used | ||||||
24 | to promote the identity, services, and products of the network | ||||||
25 | credit union to its members. | ||||||
26 | (c) Each divisional credit union may have an advisory |
| |||||||
| |||||||
1 | board of directors and a chief management official to assist | ||||||
2 | in maintaining and leveraging its respective local identity | ||||||
3 | for the benefit of the surviving credit union. The divisional | ||||||
4 | credit union advisory boards shall be appointed by the network | ||||||
5 | credit union board of directors. Each divisional credit | ||||||
6 | union's advisory board of directors may appoint a divisional | ||||||
7 | credit union chief management official and may also appoint | ||||||
8 | one of its directors to serve on the network credit union's | ||||||
9 | nominating committee. A divisional credit union may determine | ||||||
10 | to identify its advisory board as a committee and its | ||||||
11 | divisional chief management official with a title it deems | ||||||
12 | reasonable and appropriate. The network credit union board of | ||||||
13 | directors shall require each advisory board member to sign a | ||||||
14 | confidentiality or non-disclosure agreement to ensure that | ||||||
15 | information concerning the credit union remains confidential. | ||||||
16 | (d) The network credit union is the surviving legal entity | ||||||
17 | in the merger and supervision, examination, audit, reporting, | ||||||
18 | governance, and management shall be conducted or performed at | ||||||
19 | the network credit union level. All share insurance, safety | ||||||
20 | and soundness, and statutory and regulatory requirements and | ||||||
21 | limitations shall be evaluated at the network credit union | ||||||
22 | level.
| ||||||
23 | (Source: P.A. 99-614, eff. 7-22-16; 100-361, eff. 8-25-17.)
| ||||||
24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
|