Bill Text: IL SB3114 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Credit Union Act. Provides that the Director of the Division of Financial Institutions of the Department of Financial and Professional Regulation may accept an examination of a credit union made by the credit union's share insurer as an alternative to the biennial examination of a credit union conducted by the Department of Financial and Professional Regulation or a public accountant registered by the Department.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3114 Detail]

Download: Illinois-2019-SB3114-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3114 Introduced 2/5/2020, by Sen. Robert Peters SYNOPSIS AS INTRODUCED:
205 ILCS 305/9 from Ch. 17, par. 4410
Amends the Illinois Credit Union Act. Provides that the Director of the Division of Financial Institutions of the Department of Financial and Professional Regulation may accept an examination of a credit union made by the credit union's share insurer as an alternative to the biennial examination of a credit union conducted by the Department of Financial and Professional Regulation or a public accountant registered by the Department.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Credit Union Act is amended by
changing Section 9 as follows:
(205 ILCS 305/9) (from Ch. 17, par. 4410)
Sec. 9. Reports and examinations.
(1) Credit unions shall report to the Department on forms
supplied by the Department, in accordance with a schedule
published by the Department. A recapitulation of the annual
reports shall be compiled and published annually by the
Department, for the use of the General Assembly, credit unions,
various educational institutions and other interested parties.
A credit union which fails to file any report when due shall
pay to the Department a late filing fee for each day the report
is overdue as prescribed by rule. The Secretary may extend the
time for filing a report.
(2) The Secretary may require special examinations of and
special financial reports from a credit union or a credit union
organization in which a credit union loans, invests, or
delegates substantially all managerial duties and
responsibilities when he determines that such examinations and
reports are necessary to enable the Department to determine the

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safety of a credit union's operation or its solvency. The cost
to the Department of the aforesaid special examinations shall
be borne by the credit union being examined as prescribed by
rule.
(3) All credit unions incorporated under this Act shall be
examined at least biennially by the Department or, at the
discretion of the Secretary, by a public accountant registered
by the Department of Financial and Professional Regulation;
however, as an alternative to that examination, the Director
may accept an examination made by the credit union's share
insurer. The costs of an examination shall be paid by the
credit union. The scope of all examinations by a public
accountant shall be at least equal to the examinations made by
the Department. The examiners shall have full access to, and
may compel the production of, all the books, papers, securities
and accounts of any credit union. A special examination shall
be made by the Department or by a public accountant approved by
the Department upon written request of 5 or more members, who
guarantee the expense of the same. Any credit union refusing to
submit to an examination when ordered by the Department shall
be reported to the Attorney General, who shall institute
proceedings to have its charter revoked. If the Secretary
determines that the examination of a credit union is to be
conducted by a public accountant registered by the Department
of Financial and Professional Regulation and the examination is
done in conjunction with the credit union's external

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independent audit of financial statements, the requirements of
this Section and subsection (3) of Section 34 shall be deemed
met.
(3.5) Pursuant to Section 8, the Secretary shall adopt
rules that ensure consistency and due process in the
examination process. The Secretary may also establish
guidelines that (i) define the scope of the examination process
and (ii) clarify examination items to be resolved. The rules,
formal guidance, interpretive interpretative letters, or
opinions furnished to credit unions by the Secretary may be
relied upon by the credit unions.
(4) A copy of the completed report of examination and a
review comment letter, if any, citing exceptions revealed
during the examination, shall be submitted to the credit union
by the Department. A detailed report stating the corrective
actions taken by the board of directors on each exception set
forth in the review comment letter shall be filed with the
Department within 40 days after the date of the review comment
letter, or as otherwise directed by the Department. Any credit
union through its officers, directors, committee members or
employees, which willfully provides fraudulent or misleading
information regarding the corrective actions taken on
exceptions appearing in a review comment letter may have its
operations restricted to the collection of principal and
interest on loans outstanding and the payment of normal
expenses and salaries until all exceptions are corrected and

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accepted by the Department.
(Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14;
revised 8-23-19.)