Illinois 2023-2024 Regular Session

Illinois House Bill HB2043 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0289
2	1		HB2043 EnrolledLRB103 05826 BMS 50846 b HB2043 Enrolled LRB103 05826 BMS 50846 b
3	2		HB2043 Enrolled LRB103 05826 BMS 50846 b
4		-	AN ACT concerning regulation.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Illinois Credit Union Act is amended by
8		-	changing Sections 16, 20, 29, and 48 as follows:
9		-	(205 ILCS 305/16) (from Ch. 17, par. 4417)
10		-	Sec. 16. Societies and associations. Societies,
11		-	associations, clubs, partnerships, corporations, and limited
12		-	liability companies in which one or more the majority of the
13		-	members, partners, or shareholders are individuals who are
14		-	eligible for credit union membership may be admitted to
15		-	membership in a credit union in the same manner and under the
16		-	same conditions as individuals, subject to such rules as the
17		-	Secretary and the Director may promulgate hereunder. Any
18		-	members, partners, or shareholders who are ineligible for
19		-	membership in the credit union shall not become eligible by
20		-	virtue of the eligibility of the entity in which they hold an
21		-	ownership interest.
22		-	(Source: P.A. 97-133, eff. 1-1-12.)
23		-	(205 ILCS 305/20) (from Ch. 17, par. 4421)
24		-	Sec. 20. Election or appointment of officials.
25		-	(1) The credit union shall be directed by a board of
	3	+	1 AN ACT concerning regulation.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Illinois Credit Union Act is amended by
	7	+	5 changing Sections 16, 20, 29, and 48 as follows:
	8	+	6 (205 ILCS 305/16) (from Ch. 17, par. 4417)
	9	+	7 Sec. 16. Societies and associations. Societies,
	10	+	8 associations, clubs, partnerships, corporations, and limited
	11	+	9 liability companies in which one or more the majority of the
	12	+	10 members, partners, or shareholders are individuals who are
	13	+	11 eligible for credit union membership may be admitted to
	14	+	12 membership in a credit union in the same manner and under the
	15	+	13 same conditions as individuals, subject to such rules as the
	16	+	14 Secretary and the Director may promulgate hereunder. Any
	17	+	15 members, partners, or shareholders who are ineligible for
	18	+	16 membership in the credit union shall not become eligible by
	19	+	17 virtue of the eligibility of the entity in which they hold an
	20	+	18 ownership interest.
	21	+	19 (Source: P.A. 97-133, eff. 1-1-12.)
	22	+	20 (205 ILCS 305/20) (from Ch. 17, par. 4421)
	23	+	21 Sec. 20. Election or appointment of officials.
	24	+	22 (1) The credit union shall be directed by a board of
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32		-	directors consisting of no less than 7 in number, to be elected
33		-	at the annual meeting by and from the members. Directors shall
34		-	hold office until the next annual meeting, unless their terms
35		-	are staggered. Upon amendment of its bylaws, a credit union
36		-	may divide the directors into 2 or 3 classes with each class as
37		-	nearly equal in number as possible. The term of office of the
38		-	directors of the first class shall expire at the first annual
39		-	meeting after their election, that of the second class shall
40		-	expire at the second annual meeting after their election, and
41		-	that of the third class, if any, shall expire at the third
42		-	annual meeting after their election. At each annual meeting
43		-	after the classification, the number of directors equal to the
44		-	number of directors whose terms expire at the time of the
45		-	meeting shall be elected to hold office until the second
46		-	succeeding annual meeting if there are 2 classes or until the
47		-	third succeeding annual meeting if there are 3 classes. A
48		-	director shall hold office for the term for which he or she is
49		-	elected and until his or her successor is elected and
50		-	qualified.
51		-	(1.5) Except as provided in subsection (1.10), in all
52		-	elections for directors, every member has the right to vote,
53		-	in person, by proxy, or by electronic record if approved by the
54		-	board of directors, the number of shares owned by him, or in
55		-	the case of a member other than a natural person, the member's
56		-	one vote, for as many persons as there are directors to be
57		-	elected, or to cumulate such shares, and give one candidate as
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	33	+	1 directors consisting of no less than 7 in number, to be elected
	34	+	2 at the annual meeting by and from the members. Directors shall
	35	+	3 hold office until the next annual meeting, unless their terms
	36	+	4 are staggered. Upon amendment of its bylaws, a credit union
	37	+	5 may divide the directors into 2 or 3 classes with each class as
	38	+	6 nearly equal in number as possible. The term of office of the
	39	+	7 directors of the first class shall expire at the first annual
	40	+	8 meeting after their election, that of the second class shall
	41	+	9 expire at the second annual meeting after their election, and
	42	+	10 that of the third class, if any, shall expire at the third
	43	+	11 annual meeting after their election. At each annual meeting
	44	+	12 after the classification, the number of directors equal to the
	45	+	13 number of directors whose terms expire at the time of the
	46	+	14 meeting shall be elected to hold office until the second
	47	+	15 succeeding annual meeting if there are 2 classes or until the
	48	+	16 third succeeding annual meeting if there are 3 classes. A
	49	+	17 director shall hold office for the term for which he or she is
	50	+	18 elected and until his or her successor is elected and
	51	+	19 qualified.
	52	+	20 (1.5) Except as provided in subsection (1.10), in all
	53	+	21 elections for directors, every member has the right to vote,
	54	+	22 in person, by proxy, or by electronic record if approved by the
	55	+	23 board of directors, the number of shares owned by him, or in
	56	+	24 the case of a member other than a natural person, the member's
	57	+	25 one vote, for as many persons as there are directors to be
	58	+	26 elected, or to cumulate such shares, and give one candidate as
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60		-	many votes as the number of directors multiplied by the number
61		-	of his shares equals, or to distribute them on the same
62		-	principle among as many candidates as he may desire and the
63		-	directors shall not be elected in any other manner. Shares
64		-	held in a joint account owned by more than one member may be
65		-	voted by any one of the members, however, the number of
66		-	cumulative votes cast may not exceed a total equal to the
67		-	number of shares multiplied by the number of directors to be
68		-	elected. A majority of the shares entitled to vote shall be
69		-	represented either in person or by proxy for the election of
70		-	directors. Each director shall wholly take and subscribe to an
71		-	oath that he will diligently and honestly perform his duties
72		-	in administering the affairs of the credit union, that while
73		-	he may delegate to another the performance of those
74		-	administrative duties he is not thereby relieved from his
75		-	responsibility for their performance, that he will not
76		-	knowingly violate or permit to be violated any law applicable
77		-	to the credit union, and that he is the owner of at least one
78		-	share of the credit union.
79		-	(1.10) Upon amendment of a credit union's bylaws, in all
80		-	elections for directors, every member who is a natural person
81		-	shall have the right to cast one vote, regardless of the number
82		-	of his or her shares, in person, by proxy, or by electronic
83		-	record if approved by the board of directors, for as many
84		-	persons as there are directors to be elected.
85		-	(1.15) If the board of directors has adopted a policy
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88		-	addressing age eligibility standards on voting, holding
89		-	office, or petitioning the board, then a credit union may
90		-	require (i) that members be at least 18 years of age by the
91		-	date of the meeting in order to vote at meetings of the
92		-	members, sign nominating petitions, or sign petitions
93		-	requesting special meetings, and (ii) that members be at least
94		-	18 years of age by the date of election or appointment in order
95		-	to hold elective or appointive office.
96		-	(2) The board of directors shall appoint from among the
97		-	members of the credit union, a supervisory committee of not
98		-	less than 3 members at the organization meeting and within 30
99		-	days following each annual meeting of the members for such
100		-	terms as the bylaws provide. Members of the supervisory
101		-	committee may, but need not be, on the board of directors, but
102		-	shall not be officers of the credit union, members of the
103		-	credit committee, or the credit manager if no credit committee
104		-	has been appointed.
105		-	(3) The board of directors may appoint, from among the
106		-	members of the credit union, a credit committee consisting of
107		-	an odd number, not less than 3 for such terms as the bylaws
108		-	provide. Members of the credit committee may, but need not be,
109		-	directors or officers of the credit union, but shall not be
110		-	members of the supervisory committee.
111		-	(4) The board of directors may appoint from among the
112		-	members of the credit union a membership committee of one or
113		-	more persons. If appointed, the committee shall act upon all
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116		-	applications for membership and submit a report of its actions
117		-	to the board of directors at the next regular meeting for
118		-	review. If no membership committee is appointed, credit union
119		-	management shall act upon all applications for membership and
120		-	submit a report of its actions to the board of directors at the
121		-	next regular meeting for review.
122		-	(5) The board of directors may appoint, from among the
123		-	members of the credit union, a nominating committee of 3 or
124		-	more persons. Members of the nominating committee may, but
125		-	need not, be directors or officers of the credit union, but may
126		-	not be members of the supervisory committee. The appointment,
127		-	if made, shall be made in a timely manner to permit the
128		-	nominating committee to recruit, evaluate, and nominate
129		-	eligible candidates for each position to be filled in the
130		-	election of directors or, in the event of a vacancy in office,
131		-	to be filled by appointment of the board of directors for the
132		-	remainder of the unexpired term of the director creating the
133		-	vacancy. Factors the nominating committee may consider in
134		-	evaluating prospective candidates include whether a candidate
135		-	possesses or is willing to acquire through training the
136		-	requisite skills and qualifications to carry out the statutory
137		-	duties of a director. The board of directors may delegate to
138		-	the nominating committee the recruitment, evaluation, and
139		-	nomination of eligible candidates to serve on committees and
140		-	in executive officer positions.
141		-	(6) The board of directors may create one or more other
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	69	+	1 many votes as the number of directors multiplied by the number
	70	+	2 of his shares equals, or to distribute them on the same
	71	+	3 principle among as many candidates as he may desire and the
	72	+	4 directors shall not be elected in any other manner. Shares
	73	+	5 held in a joint account owned by more than one member may be
	74	+	6 voted by any one of the members, however, the number of
	75	+	7 cumulative votes cast may not exceed a total equal to the
	76	+	8 number of shares multiplied by the number of directors to be
	77	+	9 elected. A majority of the shares entitled to vote shall be
	78	+	10 represented either in person or by proxy for the election of
	79	+	11 directors. Each director shall wholly take and subscribe to an
	80	+	12 oath that he will diligently and honestly perform his duties
	81	+	13 in administering the affairs of the credit union, that while
	82	+	14 he may delegate to another the performance of those
	83	+	15 administrative duties he is not thereby relieved from his
	84	+	16 responsibility for their performance, that he will not
	85	+	17 knowingly violate or permit to be violated any law applicable
	86	+	18 to the credit union, and that he is the owner of at least one
	87	+	19 share of the credit union.
	88	+	20 (1.10) Upon amendment of a credit union's bylaws, in all
	89	+	21 elections for directors, every member who is a natural person
	90	+	22 shall have the right to cast one vote, regardless of the number
	91	+	23 of his or her shares, in person, by proxy, or by electronic
	92	+	24 record if approved by the board of directors, for as many
	93	+	25 persons as there are directors to be elected.
	94	+	26 (1.15) If the board of directors has adopted a policy
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144		-	committees in addition to the committees identified in this
145		-	Section and appoint directors or such other persons as the
146		-	board designates to serve on the committee or committees. Any
147		-	such committee shall serve at the pleasure of the board of
148		-	directors and it shall not act on behalf of the credit union or
149		-	bind it to any action, but it may make recommendations to the
150		-	board of directors.
151		-	(7)(a) The board of directors may appoint an individual as
152		-	a registered agent for the credit union. The name of the
153		-	registered agent appointed by the board of directors shall be
154		-	identified in the annual report filed by the credit union on
155		-	the annual report form supplied by the Department. The
156		-	business office of the registered agent shall be the same as
157		-	the principal place of business of the credit union. Any
158		-	process, notice, or demand required or permitted by law to be
159		-	served upon the credit union may be served upon the registered
160		-	agent appointed by the credit union.
161		-	(b) A credit union that has appointed a registered
162		-	agent shall post on its website the name of its registered
163		-	agent, the address of its principal place of business, and
164		-	that the appointment was authorized by action of the board
165		-	of directors.
166		-	(c) A credit union that has appointed a registered
167		-	agent may change its registered agent at any time by
168		-	posting on its website a statement setting forth the
169		-	following:
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172		-	(i) the address of its principal place of
173		-	business,
174		-	(ii) the name of its existing registered agent,
175		-	(iii) the name of its successor registered agent,
176		-	and
177		-	(iv) that the change was authorized by action of
178		-	the board of directors.
179		-	(d) A registered agent may resign at any time by
180		-	submitting written notice thereof to the credit union at
181		-	its principal place of business. The notice shall set
182		-	forth the following:
183		-	(i) the name of the credit union for which the
184		-	registered agent is acting,
185		-	(ii) the address of the principal place of
186		-	business of the credit union,
187		-	(iii) the name of the registered agent,
188		-	(iv) that the registered agent is resigning, and
189		-	(v) the effective date of the resignation, which
190		-	shall not be less than 30 days after the date of filing
191		-	of the notice.
192		-	(8) (6) The use of electronic records for member voting
193		-	pursuant to this Section shall employ a security procedure
194		-	that meets the attribution criteria set forth in Section 9 of
195		-	the Uniform Electronic Transactions Act.
196		-	(9) (7) As used in this Section, "electronic", "electronic
197		-	record", and "security procedure" have the meanings ascribed
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200		-	to those terms in the Uniform Electronic Transactions Act. the
201		-	(Source: P.A. 102-38, eff. 6-25-21; 102-687, eff. 12-17-21;
202		-	102-774, eff. 5-13-22; 102-858, eff. 5-13-22; revised 8-3-22.)
203		-	(205 ILCS 305/29) (from Ch. 17, par. 4430)
204		-	Sec. 29. Meetings of directors.
205		-	(1) The board of directors and the executive committee
206		-	shall meet as often as necessary, but one body must meet at
207		-	least monthly and the other at least quarterly, as prescribed
208		-	in the bylaws. Unless a greater number is required by the
209		-	bylaws, a majority of the whole board of directors shall
210		-	constitute a quorum. The act of a majority of the directors
211		-	present at a meeting at which a quorum is present shall be the
212		-	act of the board of directors unless the act of a greater
213		-	number is required by this Act, the credit union's articles of
214		-	incorporation or the bylaws.
215		-	(1.5) Notwithstanding anything to the contrary in
216		-	subsection (1), the board of directors of a credit union with a
217		-	composite rating of either 1 or 2 under the Uniform Financial
218		-	Institutions Rating System known as the CAMELS supervisory
219		-	rating system (or an equivalent rating under a comparable
220		-	rating system) and a management rating under such composite
221		-	rating of either 1 or 2 may meet not less than 6 times
222		-	annually, with at least one meeting held during each fiscal
223		-	quarter. This meeting frequency schedule shall be available to
224		-	an eligible credit union irrespective of whether it has
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	105	+	1 addressing age eligibility standards on voting, holding
	106	+	2 office, or petitioning the board, then a credit union may
	107	+	3 require (i) that members be at least 18 years of age by the
	108	+	4 date of the meeting in order to vote at meetings of the
	109	+	5 members, sign nominating petitions, or sign petitions
	110	+	6 requesting special meetings, and (ii) that members be at least
	111	+	7 18 years of age by the date of election or appointment in order
	112	+	8 to hold elective or appointive office.
	113	+	9 (2) The board of directors shall appoint from among the
	114	+	10 members of the credit union, a supervisory committee of not
	115	+	11 less than 3 members at the organization meeting and within 30
	116	+	12 days following each annual meeting of the members for such
	117	+	13 terms as the bylaws provide. Members of the supervisory
	118	+	14 committee may, but need not be, on the board of directors, but
	119	+	15 shall not be officers of the credit union, members of the
	120	+	16 credit committee, or the credit manager if no credit committee
	121	+	17 has been appointed.
	122	+	18 (3) The board of directors may appoint, from among the
	123	+	19 members of the credit union, a credit committee consisting of
	124	+	20 an odd number, not less than 3 for such terms as the bylaws
	125	+	21 provide. Members of the credit committee may, but need not be,
	126	+	22 directors or officers of the credit union, but shall not be
	127	+	23 members of the supervisory committee.
	128	+	24 (4) The board of directors may appoint from among the
	129	+	25 members of the credit union a membership committee of one or
	130	+	26 more persons. If appointed, the committee shall act upon all
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227		-	appointed an executive committee pursuant to Section 28.
228		-	(2) Unless specifically prohibited by the articles of
229		-	incorporation or bylaws, directors and committee members may
230		-	participate in and act at any meeting of the board or committee
231		-	through the use of a conference telephone or other
232		-	communications equipment by means of which all persons
233		-	participating in the meeting can communicate with each other.
234		-	Participation in the meeting shall constitute attendance and
235		-	presence in person at the meeting of the person or persons so
236		-	participating.
237		-	(3) Unless specifically prohibited by the articles of
238		-	incorporation or bylaws, any action required by this Act to be
239		-	taken at a meeting of the board of directors or a committee and
240		-	any other action that may be taken at a meeting of the board of
241		-	directors or a committee may be taken without a meeting if a
242		-	consent in writing setting forth the action taken is signed by
243		-	all the directors entitled to vote with respect to the subject
244		-	matter thereof, or by all members of the committee, as the case
245		-	may be. The consent shall be evidenced by one or more written
246		-	approvals, each of which sets forth the action taken and bears
247		-	the signatures of one or more directors or committee members.
248		-	All the approvals evidencing the consent shall be delivered to
249		-	the secretary to be filed in the corporate records of the
250		-	credit union. The action taken shall be effective when all the
251		-	directors or committee members have approved the consent
252		-	unless the consent specifies a different effective date. A
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255		-	consent signed by all the directors or all the members of a
256		-	committee shall have the same effect as a unanimous vote, and
257		-	may be stated as such in any document filed with the director
258		-	under this Act.
259		-	(4)(a) As used in this subsection:
260		-	"Affiliate" means an organization established to serve
261		-	the needs of credit unions, the business of which relates
262		-	to the daily operations of credit unions.
263		-	"Compliance review documents" means reports, meeting
264		-	minutes, and other documents prepared in connection with a
265		-	review or evaluation conducted by or for the board of
266		-	directors.
267		-	(b) This subsection applies to the board of directors
268		-	in relation to its functions to evaluate and seek to
269		-	improve any of the following:
270		-	(i) loan policies or underwriting standards;
271		-	(ii) asset quality;
272		-	(iii) financial reporting to federal or State
273		-	governmental or regulatory agencies; or
274		-	(iv) compliance with federal or State statutory or
275		-	regulatory requirements, including, without
276		-	limitation, the manner in which it performs its duties
277		-	under Section 30.
278		-	(c) Meetings, minutes of meetings, and reports of the
279		-	board of directors shall be subject to the confidentiality
280		-	and redaction standards set forth in this subsection.
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283		-	(d) Except as provided in paragraph (e), compliance
284		-	review documents and the deliberations of the board of
285		-	directors are confidential. An affiliate of a credit
286		-	union, a credit union regulatory agency, and the insurer
287		-	of credit union share accounts shall have access to
288		-	compliance review documents; however, (i) the documents
289		-	remain confidential and (ii) delivery of compliance review
290		-	documents to an affiliate or pursuant to the requirements
291		-	of a credit union regulatory agency or an insurer of
292		-	credit union share accounts do not constitute a waiver of
293		-	the confidentiality granted in this Section.
294		-	(e) This Section does not apply to any civil or
295		-	administrative action initiated by a credit union
296		-	regulatory agency or an insurer of credit union share
297		-	accounts.
298		-	(f) This Section shall not be construed to limit the
299		-	discovery or admissibility in any civil action of any
300		-	documents, including compliance review documents.
301		-	(g) Any report required under this Act to be furnished
302		-	to the board of directors by the membership committee,
303		-	credit committee, or any other committee may be submitted
304		-	in a summary format that redacts personally identifiable
305		-	information as defined under applicable State and federal
306		-	law.
307		-	(h) Compliance review documents may be disclosed by
308		-	the Secretary or a credit union to any person or entity to
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	141	+	1 applications for membership and submit a report of its actions
	142	+	2 to the board of directors at the next regular meeting for
	143	+	3 review. If no membership committee is appointed, credit union
	144	+	4 management shall act upon all applications for membership and
	145	+	5 submit a report of its actions to the board of directors at the
	146	+	6 next regular meeting for review.
	147	+	7 (5) The board of directors may appoint, from among the
	148	+	8 members of the credit union, a nominating committee of 3 or
	149	+	9 more persons. Members of the nominating committee may, but
	150	+	10 need not, be directors or officers of the credit union, but may
	151	+	11 not be members of the supervisory committee. The appointment,
	152	+	12 if made, shall be made in a timely manner to permit the
	153	+	13 nominating committee to recruit, evaluate, and nominate
	154	+	14 eligible candidates for each position to be filled in the
	155	+	15 election of directors or, in the event of a vacancy in office,
	156	+	16 to be filled by appointment of the board of directors for the
	157	+	17 remainder of the unexpired term of the director creating the
	158	+	18 vacancy. Factors the nominating committee may consider in
	159	+	19 evaluating prospective candidates include whether a candidate
	160	+	20 possesses or is willing to acquire through training the
	161	+	21 requisite skills and qualifications to carry out the statutory
	162	+	22 duties of a director. The board of directors may delegate to
	163	+	23 the nominating committee the recruitment, evaluation, and
	164	+	24 nomination of eligible candidates to serve on committees and
	165	+	25 in executive officer positions.
	166	+	26 (6) The board of directors may create one or more other
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311		-	whom confidential supervisory information may be disclosed
312		-	pursuant to subsection (3) of Section 9.1.
313		-	(Source: P.A. 89-603, eff. 8-2-96.)
314		-	(205 ILCS 305/48) (from Ch. 17, par. 4449)
315		-	Sec. 48. Loan limit. Within any limitations set forth in a
316		-	policy adopted by the board of directors, a credit union may
317		-	place a limit upon the aggregate amount to be loaned to or
318		-	cosigned for by any one member provided that no loan shall be
319		-	made to any member in an aggregate amount in excess of 10% of
320		-	the credit union's unimpaired capital and surplus. Such loan
321		-	limits shall not be subject to reduction by rules adopted by
322		-	the Secretary.
323		-	(Source: P.A. 100-361, eff. 8-25-17.)
324		-	Section 99. Effective date. This Act takes effect upon
325		-	becoming law.
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	177	+	1 committees in addition to the committees identified in this
	178	+	2 Section and appoint directors or such other persons as the
	179	+	3 board designates to serve on the committee or committees. Any
	180	+	4 such committee shall serve at the pleasure of the board of
	181	+	5 directors and it shall not act on behalf of the credit union or
	182	+	6 bind it to any action, but it may make recommendations to the
	183	+	7 board of directors.
	184	+	8 (7)(a) The board of directors may appoint an individual as
	185	+	9 a registered agent for the credit union. The name of the
	186	+	10 registered agent appointed by the board of directors shall be
	187	+	11 identified in the annual report filed by the credit union on
	188	+	12 the annual report form supplied by the Department. The
	189	+	13 business office of the registered agent shall be the same as
	190	+	14 the principal place of business of the credit union. Any
	191	+	15 process, notice, or demand required or permitted by law to be
	192	+	16 served upon the credit union may be served upon the registered
	193	+	17 agent appointed by the credit union.
	194	+	18 (b) A credit union that has appointed a registered
	195	+	19 agent shall post on its website the name of its registered
	196	+	20 agent, the address of its principal place of business, and
	197	+	21 that the appointment was authorized by action of the board
	198	+	22 of directors.
	199	+	23 (c) A credit union that has appointed a registered
	200	+	24 agent may change its registered agent at any time by
	201	+	25 posting on its website a statement setting forth the
	202	+	26 following:
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	213	+	1 (i) the address of its principal place of
	214	+	2 business,
	215	+	3 (ii) the name of its existing registered agent,
	216	+	4 (iii) the name of its successor registered agent,
	217	+	5 and
	218	+	6 (iv) that the change was authorized by action of
	219	+	7 the board of directors.
	220	+	8 (d) A registered agent may resign at any time by
	221	+	9 submitting written notice thereof to the credit union at
	222	+	10 its principal place of business. The notice shall set
	223	+	11 forth the following:
	224	+	12 (i) the name of the credit union for which the
	225	+	13 registered agent is acting,
	226	+	14 (ii) the address of the principal place of
	227	+	15 business of the credit union,
	228	+	16 (iii) the name of the registered agent,
	229	+	17 (iv) that the registered agent is resigning, and
	230	+	18 (v) the effective date of the resignation, which
	231	+	19 shall not be less than 30 days after the date of filing
	232	+	20 of the notice.
	233	+	21 (8) (6) The use of electronic records for member voting
	234	+	22 pursuant to this Section shall employ a security procedure
	235	+	23 that meets the attribution criteria set forth in Section 9 of
	236	+	24 the Uniform Electronic Transactions Act.
	237	+	25 (9) (7) As used in this Section, "electronic", "electronic
	238	+	26 record", and "security procedure" have the meanings ascribed
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	249	+	1 to those terms in the Uniform Electronic Transactions Act. the
	250	+	2 (Source: P.A. 102-38, eff. 6-25-21; 102-687, eff. 12-17-21;
	251	+	3 102-774, eff. 5-13-22; 102-858, eff. 5-13-22; revised 8-3-22.)
	252	+	4 (205 ILCS 305/29) (from Ch. 17, par. 4430)
	253	+	5 Sec. 29. Meetings of directors.
	254	+	6 (1) The board of directors and the executive committee
	255	+	7 shall meet as often as necessary, but one body must meet at
	256	+	8 least monthly and the other at least quarterly, as prescribed
	257	+	9 in the bylaws. Unless a greater number is required by the
	258	+	10 bylaws, a majority of the whole board of directors shall
	259	+	11 constitute a quorum. The act of a majority of the directors
	260	+	12 present at a meeting at which a quorum is present shall be the
	261	+	13 act of the board of directors unless the act of a greater
	262	+	14 number is required by this Act, the credit union's articles of
	263	+	15 incorporation or the bylaws.
	264	+	16 (1.5) Notwithstanding anything to the contrary in
	265	+	17 subsection (1), the board of directors of a credit union with a
	266	+	18 composite rating of either 1 or 2 under the Uniform Financial
	267	+	19 Institutions Rating System known as the CAMELS supervisory
	268	+	20 rating system (or an equivalent rating under a comparable
	269	+	21 rating system) and a management rating under such composite
	270	+	22 rating of either 1 or 2 may meet not less than 6 times
	271	+	23 annually, with at least one meeting held during each fiscal
	272	+	24 quarter. This meeting frequency schedule shall be available to
	273	+	25 an eligible credit union irrespective of whether it has
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	284	+	1 appointed an executive committee pursuant to Section 28.
	285	+	2 (2) Unless specifically prohibited by the articles of
	286	+	3 incorporation or bylaws, directors and committee members may
	287	+	4 participate in and act at any meeting of the board or committee
	288	+	5 through the use of a conference telephone or other
	289	+	6 communications equipment by means of which all persons
	290	+	7 participating in the meeting can communicate with each other.
	291	+	8 Participation in the meeting shall constitute attendance and
	292	+	9 presence in person at the meeting of the person or persons so
	293	+	10 participating.
	294	+	11 (3) Unless specifically prohibited by the articles of
	295	+	12 incorporation or bylaws, any action required by this Act to be
	296	+	13 taken at a meeting of the board of directors or a committee and
	297	+	14 any other action that may be taken at a meeting of the board of
	298	+	15 directors or a committee may be taken without a meeting if a
	299	+	16 consent in writing setting forth the action taken is signed by
	300	+	17 all the directors entitled to vote with respect to the subject
	301	+	18 matter thereof, or by all members of the committee, as the case
	302	+	19 may be. The consent shall be evidenced by one or more written
	303	+	20 approvals, each of which sets forth the action taken and bears
	304	+	21 the signatures of one or more directors or committee members.
	305	+	22 All the approvals evidencing the consent shall be delivered to
	306	+	23 the secretary to be filed in the corporate records of the
	307	+	24 credit union. The action taken shall be effective when all the
	308	+	25 directors or committee members have approved the consent
	309	+	26 unless the consent specifies a different effective date. A
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	320	+	1 consent signed by all the directors or all the members of a
	321	+	2 committee shall have the same effect as a unanimous vote, and
	322	+	3 may be stated as such in any document filed with the director
	323	+	4 under this Act.
	324	+	5 (4)(a) As used in this subsection:
	325	+	6 "Affiliate" means an organization established to serve
	326	+	7 the needs of credit unions, the business of which relates
	327	+	8 to the daily operations of credit unions.
	328	+	9 "Compliance review documents" means reports, meeting
	329	+	10 minutes, and other documents prepared in connection with a
	330	+	11 review or evaluation conducted by or for the board of
	331	+	12 directors.
	332	+	13 (b) This subsection applies to the board of directors
	333	+	14 in relation to its functions to evaluate and seek to
	334	+	15 improve any of the following:
	335	+	16 (i) loan policies or underwriting standards;
	336	+	17 (ii) asset quality;
	337	+	18 (iii) financial reporting to federal or State
	338	+	19 governmental or regulatory agencies; or
	339	+	20 (iv) compliance with federal or State statutory or
	340	+	21 regulatory requirements, including, without
	341	+	22 limitation, the manner in which it performs its duties
	342	+	23 under Section 30.
	343	+	24 (c) Meetings, minutes of meetings, and reports of the
	344	+	25 board of directors shall be subject to the confidentiality
	345	+	26 and redaction standards set forth in this subsection.
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	356	+	1 (d) Except as provided in paragraph (e), compliance
	357	+	2 review documents and the deliberations of the board of
	358	+	3 directors are confidential. An affiliate of a credit
	359	+	4 union, a credit union regulatory agency, and the insurer
	360	+	5 of credit union share accounts shall have access to
	361	+	6 compliance review documents; however, (i) the documents
	362	+	7 remain confidential and (ii) delivery of compliance review
	363	+	8 documents to an affiliate or pursuant to the requirements
	364	+	9 of a credit union regulatory agency or an insurer of
	365	+	10 credit union share accounts do not constitute a waiver of
	366	+	11 the confidentiality granted in this Section.
	367	+	12 (e) This Section does not apply to any civil or
	368	+	13 administrative action initiated by a credit union
	369	+	14 regulatory agency or an insurer of credit union share
	370	+	15 accounts.
	371	+	16 (f) This Section shall not be construed to limit the
	372	+	17 discovery or admissibility in any civil action of any
	373	+	18 documents, including compliance review documents.
	374	+	19 (g) Any report required under this Act to be furnished
	375	+	20 to the board of directors by the membership committee,
	376	+	21 credit committee, or any other committee may be submitted
	377	+	22 in a summary format that redacts personally identifiable
	378	+	23 information as defined under applicable State and federal
	379	+	24 law.
	380	+	25 (h) Compliance review documents may be disclosed by
	381	+	26 the Secretary or a credit union to any person or entity to
	382	+
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	392	+	1 whom confidential supervisory information may be disclosed
	393	+	2 pursuant to subsection (3) of Section 9.1.
	394	+	3 (Source: P.A. 89-603, eff. 8-2-96.)
	395	+	4 (205 ILCS 305/48) (from Ch. 17, par. 4449)
	396	+	5 Sec. 48. Loan limit. Within any limitations set forth in a
	397	+	6 policy adopted by the board of directors, a credit union may
	398	+	7 place a limit upon the aggregate amount to be loaned to or
	399	+	8 cosigned for by any one member provided that no loan shall be
	400	+	9 made to any member in an aggregate amount in excess of 10% of
	401	+	10 the credit union's unimpaired capital and surplus. Such loan
	402	+	11 limits shall not be subject to reduction by rules adopted by
	403	+	12 the Secretary.
	404	+	13 (Source: P.A. 100-361, eff. 8-25-17.)
	405	+	14 Section 99. Effective date. This Act takes effect upon
	406	+	15 becoming law.
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