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Illinois Senate Bill SB3687

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3687 Compare Versions

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1-Public Act 103-1034
21 SB3687 EnrolledLRB103 38108 RTM 68240 b SB3687 Enrolled LRB103 38108 RTM 68240 b
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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 10. The Illinois Credit Union Act is amended by
8-changing Sections 2, 8, 12, 13, 39, and 59 as follows:
9-(205 ILCS 305/2) (from Ch. 17, par. 4403)
10-Sec. 2. Organization procedure.
11-(1) Any 9 or more persons of legal age, the majority of
12-whom shall be residents of the State of Illinois, who have a
13-common bond referred to in Section 1.1 may organize a credit
14-union or a central credit union by complying with this
15-Section.
16-(2) The subscribers shall execute in duplicate Articles of
17-Incorporation and agree to the terms thereof, which Articles
18-shall state:
19-(a) The name, which shall include the words "credit
20-union" and which shall not be the same as that of any other
21-existing credit union in this state, and the location
22-where the proposed credit union is to have its principal
23-place of business;
24-(b) The common bond of the members of the credit
25-union;
26-(c) The par value of the shares of the credit union,
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 10. The Illinois Credit Union Act is amended by
7+5 changing Sections 2, 8, 12, 13, 39, and 59 as follows:
8+6 (205 ILCS 305/2) (from Ch. 17, par. 4403)
9+7 Sec. 2. Organization procedure.
10+8 (1) Any 9 or more persons of legal age, the majority of
11+9 whom shall be residents of the State of Illinois, who have a
12+10 common bond referred to in Section 1.1 may organize a credit
13+11 union or a central credit union by complying with this
14+12 Section.
15+13 (2) The subscribers shall execute in duplicate Articles of
16+14 Incorporation and agree to the terms thereof, which Articles
17+15 shall state:
18+16 (a) The name, which shall include the words "credit
19+17 union" and which shall not be the same as that of any other
20+18 existing credit union in this state, and the location
21+19 where the proposed credit union is to have its principal
22+20 place of business;
23+21 (b) The common bond of the members of the credit
24+22 union;
25+23 (c) The par value of the shares of the credit union,
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33-which must be at least $1;
34-(d) The names, addresses and Social Security numbers
35-of the subscribers to the Articles of Incorporation, and
36-the number and the value of shares subscribed to by each;
37-(e) That the credit union may exercise such incidental
38-powers as are necessary or requisite to enable it to carry
39-on effectively the purposes for which it is incorporated,
40-and those powers which are inherent in the credit union as
41-a legal entity;
42-(f) That the existence of the credit union shall be
43-perpetual.
44-(3) The subscribers shall prepare and adopt bylaws for the
45-general governance government of the credit union, consistent
46-with this Act, and execute same in duplicate. If there is a
47-conflict, inconsistency, or variation between the terms of
48-this Act and the provisions in the bylaws adopted by the credit
49-union, the terms of this Act shall control. A conflict,
50-inconsistency, or variation may not be deemed to exist if the
51-Act specifically requires that a particular matter shall be
52-adopted in the bylaws.
53-(4) The subscribers shall forward the articles of
54-incorporation and the bylaws to the Secretary in duplicate,
55-along with the required charter fee. If they conform to the
56-law, and such rules and regulations as the Secretary and the
57-Director may prescribe, if the Secretary determines that a
58-common bond exists, and that it is economically advisable to
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34+1 which must be at least $1;
35+2 (d) The names, addresses and Social Security numbers
36+3 of the subscribers to the Articles of Incorporation, and
37+4 the number and the value of shares subscribed to by each;
38+5 (e) That the credit union may exercise such incidental
39+6 powers as are necessary or requisite to enable it to carry
40+7 on effectively the purposes for which it is incorporated,
41+8 and those powers which are inherent in the credit union as
42+9 a legal entity;
43+10 (f) That the existence of the credit union shall be
44+11 perpetual.
45+12 (3) The subscribers shall prepare and adopt bylaws for the
46+13 general governance government of the credit union, consistent
47+14 with this Act, and execute same in duplicate. If there is a
48+15 conflict, inconsistency, or variation between the terms of
49+16 this Act and the provisions in the bylaws adopted by the credit
50+17 union, the terms of this Act shall control. A conflict,
51+18 inconsistency, or variation may not be deemed to exist if the
52+19 Act specifically requires that a particular matter shall be
53+20 adopted in the bylaws.
54+21 (4) The subscribers shall forward the articles of
55+22 incorporation and the bylaws to the Secretary in duplicate,
56+23 along with the required charter fee. If they conform to the
57+24 law, and such rules and regulations as the Secretary and the
58+25 Director may prescribe, if the Secretary determines that a
59+26 common bond exists, and that it is economically advisable to
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61-organize the credit union, he or she shall within 60 days issue
62-a certificate of approval attached to the articles of
63-incorporation and return a copy of the bylaws and the articles
64-of incorporation to the applicants or their representative,
65-which shall be preserved in the permanent files of the credit
66-union. The subscribers shall file the certificate of approval,
67-with the articles of incorporation attached, in the office of
68-the recorder (or, if there is no recorder, in the office of the
69-county clerk) of the county in which the credit union is to
70-locate its principal place of business. The recorder or the
71-county clerk, as the case may be, shall accept and record the
72-documents if they are accompanied by the proper fee. When the
73-documents are so recorded, the credit union is incorporated
74-under this Act.
75-(5) The subscribers for a credit union charter shall not
76-transact any business until the certificate of approval has
77-been received.
78-(Source: P.A. 100-361, eff. 8-25-17.)
79-(205 ILCS 305/8) (from Ch. 17, par. 4409)
80-Sec. 8. Secretary's powers and duties. Credit unions are
81-regulated by the Department. The Secretary in executing the
82-powers and discharging the duties vested by law in the
83-Department has the following powers and duties:
84-(1) To exercise the rights, powers, and duties set
85-forth in this Act or any related Act. The Director shall
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88-oversee the functions of the Division and report to the
89-Secretary, with respect to the Director's exercise of any
90-of the rights, powers, and duties vested by law in the
91-Secretary under this Act. All references in this Act to
92-the Secretary shall be deemed to include the Director, as
93-a person authorized by the Secretary or this Act to assume
94-responsibility for the oversight of the functions of the
95-Department relating to the regulatory supervision of
96-credit unions under this Act.
97-(2) To adopt prescribe rules and regulations for the
98-administration of this Act. The provisions of the Illinois
99-Administrative Procedure Act are hereby expressly adopted
100-and incorporated herein as though a part of this Act, and
101-shall apply to all administrative rules and procedures of
102-the Department under this Act. Rules adopted by the
103-Secretary shall be within the statutory authority upon
104-which they are based. If there is a conflict,
105-inconsistency, or variation between the terms of this Act
106-and the provisions in a rule adopted by the Secretary, the
107-terms of this Act shall control. A conflict,
108-inconsistency, or variation may not be deemed to exist if
109-the Act specifically delegates authority to the Secretary
110-to adopt by rule standards or limitations on a particular
111-matter, provided the rule is within the statutory
112-authority upon which it is based.
113-(3) To direct and supervise all the administrative and
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116-technical activities of the Department including the
117-employment of a Credit Union Supervisor who shall have
118-knowledge in the theory and practice of, or experience in,
119-the operations or supervision of financial institutions,
120-preferably credit unions, and such other persons as are
121-necessary to carry out his functions. The Secretary shall
122-ensure that all examiners appointed or assigned to examine
123-the affairs of State-chartered credit unions possess the
124-necessary training and continuing education to effectively
125-execute their jobs.
126-(4) To issue cease and desist orders when in the
127-opinion of the Secretary, a credit union is engaged or has
128-engaged, or the Secretary has reasonable cause to believe
129-the credit union is about to engage, in an unsafe or
130-unsound practice, or is violating or has violated or the
131-Secretary has reasonable cause to believe is about to
132-violate a law, rule, or regulation or any condition
133-imposed in writing by the Department.
134-(5) To suspend from office and to prohibit from
135-further participation in any manner in the conduct of the
136-affairs of any credit union any director, officer, or
137-committee member who has committed any violation of a law,
138-rule, or regulation or of a cease and desist order or who
139-has engaged or participated in any unsafe or unsound
140-practice in connection with the credit union or who has
141-committed or engaged in any act, omission, or practice
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70+1 organize the credit union, he or she shall within 60 days issue
71+2 a certificate of approval attached to the articles of
72+3 incorporation and return a copy of the bylaws and the articles
73+4 of incorporation to the applicants or their representative,
74+5 which shall be preserved in the permanent files of the credit
75+6 union. The subscribers shall file the certificate of approval,
76+7 with the articles of incorporation attached, in the office of
77+8 the recorder (or, if there is no recorder, in the office of the
78+9 county clerk) of the county in which the credit union is to
79+10 locate its principal place of business. The recorder or the
80+11 county clerk, as the case may be, shall accept and record the
81+12 documents if they are accompanied by the proper fee. When the
82+13 documents are so recorded, the credit union is incorporated
83+14 under this Act.
84+15 (5) The subscribers for a credit union charter shall not
85+16 transact any business until the certificate of approval has
86+17 been received.
87+18 (Source: P.A. 100-361, eff. 8-25-17.)
88+19 (205 ILCS 305/8) (from Ch. 17, par. 4409)
89+20 Sec. 8. Secretary's powers and duties. Credit unions are
90+21 regulated by the Department. The Secretary in executing the
91+22 powers and discharging the duties vested by law in the
92+23 Department has the following powers and duties:
93+24 (1) To exercise the rights, powers, and duties set
94+25 forth in this Act or any related Act. The Director shall
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144-which constitutes a breach of his fiduciary duty as such
145-director, officer, or committee member, when the Secretary
146-has determined that such action or actions have resulted
147-or will result in substantial financial loss or other
148-damage that seriously prejudices the interests of the
149-members.
150-(6) To assess a civil penalty against a credit union
151-provided that:
152-(A) the Secretary reasonably determines, based on
153-objective facts and an accurate assessment of
154-applicable legal standards, that the credit union has:
155-(i) committed a violation of this Act, any
156-rule adopted in accordance with this Act, or any
157-order of the Secretary issued pursuant to his or
158-her authority under this Act; or
159-(ii) engaged or participated in any unsafe or
160-unsound practice;
161-(B) before a civil penalty is assessed under this
162-item (6), the Secretary must make the further
163-reasonable determination, based on objective facts and
164-an accurate assessment of applicable legal standards,
165-that the credit union's action constituting a
166-violation under subparagraph (i) of paragraph (A) of
167-this item (6) or an unsafe and unsound practice under
168-subparagraph (ii) of paragraph (A) of this item (6):
169-(i) directly resulted in a substantial and
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172-material financial loss or created a reasonable
173-probability that a substantial and material
174-financial loss will directly result; or
175-(ii) constituted willful misconduct or a
176-material breach of fiduciary duty of any director,
177-officer, or committee member of the credit union;
178-Material financial loss, as referenced in this
179-paragraph (B), shall be assessed in light of
180-surrounding circumstances and the relative size and
181-nature of the financial loss or probable financial
182-loss. Certain benchmarks shall be used in determining
183-whether financial loss is material, such as a
184-percentage of total assets or total gross income for
185-the immediately preceding 12-month period. Absent
186-compelling and extraordinary circumstances, no civil
187-penalty shall be assessed, unless the financial loss
188-or probable financial loss is equal to or greater than
189-either 1% of the credit union's total assets for the
190-immediately preceding 12-month period, or 1% of the
191-credit union's total gross income for the immediately
192-preceding 12-month period, whichever is less;
193-(C) before a civil penalty is assessed under this
194-item (6), the credit union must be expressly advised
195-in writing of the:
196-(i) specific violation that could subject it
197-to a penalty under this item (6); and
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200-(ii) specific remedial action to be taken
201-within a specific and reasonable time frame to
202-avoid imposition of the penalty;
203-(D) civil penalties assessed under this item (6)
204-shall be remedial, not punitive, and reasonably
205-tailored to ensure future compliance by the credit
206-union with the provisions of this Act and any rules
207-adopted pursuant to this Act;
208-(E) a credit union's failure to take timely
209-remedial action with respect to the specific violation
210-may result in the issuance of an order assessing a
211-civil penalty up to the following maximum amount,
212-based upon the total assets of the credit union:
213-(i) Credit unions with assets of less than $10
214-million................................................$1,000
215-(ii) Credit unions with assets of at least $10
216-million and less than $50 million......................$2,500
217-(iii) Credit unions with assets of at least
218-$50 million and less than $100 million.................$5,000
219-(iv) Credit unions with assets of at least
220-$100 million and less than $500 million...............$10,000
221-(v) Credit unions with assets of at least $500
222-million and less than $1 billion......................$25,000
223-(vi) Credit unions with assets of $1 billion
224-and greater.....................................$50,000; and
225-(F) an order assessing a civil penalty under this
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105+1 oversee the functions of the Division and report to the
106+2 Secretary, with respect to the Director's exercise of any
107+3 of the rights, powers, and duties vested by law in the
108+4 Secretary under this Act. All references in this Act to
109+5 the Secretary shall be deemed to include the Director, as
110+6 a person authorized by the Secretary or this Act to assume
111+7 responsibility for the oversight of the functions of the
112+8 Department relating to the regulatory supervision of
113+9 credit unions under this Act.
114+10 (2) To adopt prescribe rules and regulations for the
115+11 administration of this Act. The provisions of the Illinois
116+12 Administrative Procedure Act are hereby expressly adopted
117+13 and incorporated herein as though a part of this Act, and
118+14 shall apply to all administrative rules and procedures of
119+15 the Department under this Act. Rules adopted by the
120+16 Secretary shall be within the statutory authority upon
121+17 which they are based. If there is a conflict,
122+18 inconsistency, or variation between the terms of this Act
123+19 and the provisions in a rule adopted by the Secretary, the
124+20 terms of this Act shall control. A conflict,
125+21 inconsistency, or variation may not be deemed to exist if
126+22 the Act specifically delegates authority to the Secretary
127+23 to adopt by rule standards or limitations on a particular
128+24 matter, provided the rule is within the statutory
129+25 authority upon which it is based.
130+26 (3) To direct and supervise all the administrative and
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228-item (6) shall take effect upon service of the order,
229-unless the credit union makes a written request for a
230-hearing under 38 Ill. Adm. Code 190.20 of the
231-Department's rules for credit unions within 90 days
232-after issuance of the order; in that event, the order
233-shall be stayed until a final administrative order is
234-entered.
235-This item (6) shall not apply to violations separately
236-addressed in rules as authorized under item (7) of this
237-Section.
238-(7) Except for the fees established in this Act, to
239-prescribe, by rule and regulation, fees and penalties for
240-preparing, approving, and filing reports and other
241-documents; furnishing transcripts; holding hearings;
242-investigating applications for permission to organize,
243-merge, or convert; failure to maintain accurate books and
244-records to enable the Department to conduct an
245-examination; and taking supervisory actions.
246-(8) To destroy, in his discretion, any or all books
247-and records of any credit union in his possession or under
248-his control after the expiration of three years from the
249-date of cancellation of the charter of such credit unions.
250-(9) To make investigations and to conduct research and
251-studies and to publish some of the problems of persons in
252-obtaining credit at reasonable rates of interest and of
253-the methods and benefits of cooperative saving and lending
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256-for such persons.
257-(10) To authorize, foster, or establish experimental,
258-developmental, demonstration, or pilot projects by public
259-or private organizations including credit unions which:
260-(a) promote more effective operation of credit
261-unions so as to provide members an opportunity to use
262-and control their own money to improve their economic
263-and social conditions; or
264-(b) are in the best interests of credit unions,
265-their members and the people of the State of Illinois.
266-(11) To cooperate in studies, training, or other
267-administrative activities with, but not limited to, the
268-NCUA, other state credit union regulatory agencies and
269-industry trade associations in order to promote more
270-effective and efficient supervision of Illinois chartered
271-credit unions.
272-(12) Notwithstanding the provisions of this Section,
273-the Secretary shall not:
274-(1) issue an order against a credit union
275-organized under this Act for unsafe or unsound banking
276-practices solely because the entity provides or has
277-provided financial services to a cannabis-related
278-legitimate business;
279-(2) prohibit, penalize, or otherwise discourage a
280-credit union from providing financial services to a
281-cannabis-related legitimate business solely because
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284-the entity provides or has provided financial services
285-to a cannabis-related legitimate business;
286-(3) recommend, incentivize, or encourage a credit
287-union not to offer financial services to an account
288-holder or to downgrade or cancel the financial
289-services offered to an account holder solely because:
290-(A) the account holder is a manufacturer or
291-producer, or is the owner, operator, or employee
292-of a cannabis-related legitimate business;
293-(B) the account holder later becomes an owner
294-or operator of a cannabis-related legitimate
295-business; or
296-(C) the credit union was not aware that the
297-account holder is the owner or operator of a
298-cannabis-related legitimate business; and
299-(4) take any adverse or corrective supervisory
300-action on a loan made to an owner or operator of:
301-(A) a cannabis-related legitimate business
302-solely because the owner or operator owns or
303-operates a cannabis-related legitimate business;
304-or
305-(B) real estate or equipment that is leased to
306-a cannabis-related legitimate business solely
307-because the owner or operator of the real estate
308-or equipment leased the equipment or real estate
309-to a cannabis-related legitimate business.
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141+1 technical activities of the Department including the
142+2 employment of a Credit Union Supervisor who shall have
143+3 knowledge in the theory and practice of, or experience in,
144+4 the operations or supervision of financial institutions,
145+5 preferably credit unions, and such other persons as are
146+6 necessary to carry out his functions. The Secretary shall
147+7 ensure that all examiners appointed or assigned to examine
148+8 the affairs of State-chartered credit unions possess the
149+9 necessary training and continuing education to effectively
150+10 execute their jobs.
151+11 (4) To issue cease and desist orders when in the
152+12 opinion of the Secretary, a credit union is engaged or has
153+13 engaged, or the Secretary has reasonable cause to believe
154+14 the credit union is about to engage, in an unsafe or
155+15 unsound practice, or is violating or has violated or the
156+16 Secretary has reasonable cause to believe is about to
157+17 violate a law, rule, or regulation or any condition
158+18 imposed in writing by the Department.
159+19 (5) To suspend from office and to prohibit from
160+20 further participation in any manner in the conduct of the
161+21 affairs of any credit union any director, officer, or
162+22 committee member who has committed any violation of a law,
163+23 rule, or regulation or of a cease and desist order or who
164+24 has engaged or participated in any unsafe or unsound
165+25 practice in connection with the credit union or who has
166+26 committed or engaged in any act, omission, or practice
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312-(Source: P.A. 102-858, eff. 5-13-22; 103-154, eff. 6-30-23.)
313-(205 ILCS 305/12) (from Ch. 17, par. 4413)
314-Sec. 12. Regulatory fees.
315-(1) For the fiscal year beginning July 1, 2007, a credit
316-union regulated by the Department shall pay a regulatory fee
317-to the Department based upon its total assets as shown by its
318-Year-end Call Report at the following rates or at a lesser rate
319-established by the Secretary in a manner proportionately
320-consistent with the following rates and sufficient to fund the
321-actual administrative and operational expenses of the
322-Department's Credit Union Section pursuant to subsection (4)
323-of this Section:
324-TOTAL ASSETSREGULATORY FEE$25,000 or less ................$100Over $25,000 and not over $100,000 .......................$100 plus $4 per $1,000 of assets in excess of $25,000Over $100,000 and not over $200,000 .......................$400 plus $3 per $1,000 of assets in excess of $100,000Over $200,000 and not over $500,000 .......................$700 plus $2 per $1,000 of assets in excess of TOTAL ASSETS REGULATORY FEE $25,000 or less ................ $100 Over $25,000 and not over $100,000 ....................... $100 plus $4 per $1,000 of assets in excess of $25,000 Over $100,000 and not over $200,000 ....................... $400 plus $3 per $1,000 of assets in excess of $100,000 Over $200,000 and not over $500,000 ....................... $700 plus $2 per $1,000 of assets in excess of
325-TOTAL ASSETS REGULATORY FEE
326-$25,000 or less ................ $100
327-Over $25,000 and not over
328-$100,000 ....................... $100 plus $4 per
329- $1,000 of assets in excess of
330-$25,000
331-Over $100,000 and not over
332-$200,000 ....................... $400 plus $3 per
333- $1,000 of assets in excess of
334-$100,000
335-Over $200,000 and not over
336-$500,000 ....................... $700 plus $2 per
337- $1,000 of assets in excess of
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340-TOTAL ASSETS REGULATORY FEE
341-$25,000 or less ................ $100
342-Over $25,000 and not over
343-$100,000 ....................... $100 plus $4 per
344- $1,000 of assets in excess of
345-$25,000
346-Over $100,000 and not over
347-$200,000 ....................... $400 plus $3 per
348- $1,000 of assets in excess of
349-$100,000
350-Over $200,000 and not over
351-$500,000 ....................... $700 plus $2 per
352- $1,000 of assets in excess of
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355-$200,000Over $500,000 and not over $1,000,000 .....................$1,300 plus $1.40 per $1,000 of assets in excess of $500,000Over $1,000,000 and not over $5,000,000.................$2,000 plus $0.50 per $1,000 of assets in excess of $1,000,000Over $5,000,000 and not over $30,000,000 ............... $4,540 plus $0.397 per $1,000 of assets in excess of $5,000,000Over $30,000,000 and not over $100,000,000....................$14,471 plus $0.34 per $1,000 of assets in excess of $30,000,000Over $100,000,000 and not over $500,000,000 ..............$38,306 plus $0.17 per $1,000 of assets in excess of $100,000,000Over $500,000,000 ..............$106,406 plus $0.056 per $1,000 of assets in excess of $500,000,000 $200,000 Over $500,000 and not over $1,000,000 ..................... $1,300 plus $1.40 per $1,000 of assets in excess of $500,000 Over $1,000,000 and not over $5,000,000................. $2,000 plus $0.50 per $1,000 of assets in excess of $1,000,000 Over $5,000,000 and not over $30,000,000 ............... $4,540 plus $0.397 per $1,000 of assets in excess of $5,000,000 Over $30,000,000 and not over $100,000,000.................... $14,471 plus $0.34 per $1,000 of assets in excess of $30,000,000 Over $100,000,000 and not over $500,000,000 .............. $38,306 plus $0.17 per $1,000 of assets in excess of $100,000,000 Over $500,000,000 .............. $106,406 plus $0.056 per $1,000 of assets in excess of $500,000,000
356-$200,000
357-Over $500,000 and not over
358-$1,000,000 ..................... $1,300 plus $1.40
359- per $1,000 of assets in excess
360-of $500,000
361-Over $1,000,000 and not
362-over $5,000,000................. $2,000 plus $0.50
363-per $1,000 of assets in
364-excess of $1,000,000
365-Over $5,000,000 and not
366-over $30,000,000 ............... $4,540 plus $0.397
367-per $1,000 of assets
368-in excess of $5,000,000
369-Over $30,000,000 and not over
370-$100,000,000.................... $14,471 plus $0.34
371- per $1,000 of assets
372-in excess of $30,000,000
373-Over $100,000,000 and not
374-over $500,000,000 .............. $38,306 plus $0.17
375- per $1,000 of assets
376-in excess of $100,000,000
377-Over $500,000,000 .............. $106,406 plus $0.056
378- per $1,000 of assets
379-in excess of $500,000,000
380-(2) The Secretary shall review the regulatory fee schedule
381-in subsection (1) and the projected earnings on those fees on
382-
383-$200,000
384-Over $500,000 and not over
385-$1,000,000 ..................... $1,300 plus $1.40
386- per $1,000 of assets in excess
387-of $500,000
388-Over $1,000,000 and not
389-over $5,000,000................. $2,000 plus $0.50
390-per $1,000 of assets in
391-excess of $1,000,000
392-Over $5,000,000 and not
393-over $30,000,000 ............... $4,540 plus $0.397
394-per $1,000 of assets
395-in excess of $5,000,000
396-Over $30,000,000 and not over
397-$100,000,000.................... $14,471 plus $0.34
398- per $1,000 of assets
399-in excess of $30,000,000
400-Over $100,000,000 and not
401-over $500,000,000 .............. $38,306 plus $0.17
402- per $1,000 of assets
403-in excess of $100,000,000
404-Over $500,000,000 .............. $106,406 plus $0.056
405- per $1,000 of assets
406-in excess of $500,000,000
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176+ SB3687 Enrolled - 6 - LRB103 38108 RTM 68240 b
177+1 which constitutes a breach of his fiduciary duty as such
178+2 director, officer, or committee member, when the Secretary
179+3 has determined that such action or actions have resulted
180+4 or will result in substantial financial loss or other
181+5 damage that seriously prejudices the interests of the
182+6 members.
183+7 (6) To assess a civil penalty against a credit union
184+8 provided that:
185+9 (A) the Secretary reasonably determines, based on
186+10 objective facts and an accurate assessment of
187+11 applicable legal standards, that the credit union has:
188+12 (i) committed a violation of this Act, any
189+13 rule adopted in accordance with this Act, or any
190+14 order of the Secretary issued pursuant to his or
191+15 her authority under this Act; or
192+16 (ii) engaged or participated in any unsafe or
193+17 unsound practice;
194+18 (B) before a civil penalty is assessed under this
195+19 item (6), the Secretary must make the further
196+20 reasonable determination, based on objective facts and
197+21 an accurate assessment of applicable legal standards,
198+22 that the credit union's action constituting a
199+23 violation under subparagraph (i) of paragraph (A) of
200+24 this item (6) or an unsafe and unsound practice under
201+25 subparagraph (ii) of paragraph (A) of this item (6):
202+26 (i) directly resulted in a substantial and
407203
408204
409-an annual basis and adjust the fee schedule no more than 5%
410-annually if necessary to defray the estimated administrative
411-and operational expenses of the Credit Union Section of the
412-Department as defined in subsection (5). However, the fee
413-schedule shall not be increased if the amount remaining in the
414-Credit Union Fund at the end of any fiscal year is greater than
415-25% of the total actual and operational expenses incurred by
416-the State in administering and enforcing the Illinois Credit
417-Union Act and other laws, rules, and regulations as may apply
418-to the administration and enforcement of the foregoing laws,
419-rules, and regulations as amended from time to time for the
420-preceding fiscal year. The regulatory fee for the next fiscal
421-year shall be calculated by the Secretary based on the credit
422-union's total assets as of December 31 of the preceding
423-calendar year. The Secretary shall provide credit unions with
424-written notice of any adjustment made in the regulatory fee
425-schedule.
426-(3) A credit union shall pay to the Department a
427-regulatory fee in quarterly installments equal to one-fourth
428-of the regulatory fee due in accordance with the regulatory
429-fee schedule in subsection (1), on the basis of assets as of
430-the Year-end Call Report of the preceding calendar year. The
431-total annual regulatory fee shall not be less than $100 or more
432-than $210,000, provided that the regulatory fee cap of
433-$210,000 shall be adjusted to incorporate the same percentage
434-increase as the Secretary makes in the regulatory fee schedule
435205
436206
437-from time to time under subsection (2). No regulatory fee
438-shall be collected from a credit union until it has been in
439-operation for one year. The regulatory fee shall be billed to
440-credit unions on a quarterly basis and it shall be payable by
441-credit unions on the due date for the Call Report for the
442-subject quarter.
443-(4)(a) The aggregate of all fees collected by the
444-Department under this Act and from credit unions pursuant to
445-the Illinois Community Reinvestment Act shall be paid promptly
446-after they are received, accompanied by a detailed statement
447-thereof, into the State treasury Treasury and shall be set
448-apart in the Credit Union Fund, a special fund hereby created
449-in the State treasury. The amount from time to time deposited
450-in the Credit Union Fund and shall be used to offset the
451-ordinary administrative and operational expenses of the Credit
452-Union Section of the Department under this Act. All earnings
453-received from investments of funds in the Credit Union Fund
454-shall be deposited into the Credit Union Fund and may be used
455-for the same purposes as fees deposited into that fund. Moneys
456-deposited in the Credit Union Fund may be transferred to the
457-Professions Indirect Cost Fund, as authorized under Section
458-2105-300 of the Department of Professional Regulation Law of
459-the Civil Administrative Code of Illinois.
460-(b) At the conclusion of each fiscal year, beginning in
461-fiscal year 2025, the Department shall separately identify the
462-direct administrative and operational expenses and allocable
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464210
465-indirect costs of the Credit Union Section of the Department
466-incidental to conducting the examinations required or
467-authorized by the Illinois Community Reinvestment Act and
468-implementing rules adopted by the Department. Pursuant to
469-Section 2105-300 of the Department of Professional Regulation
470-Law of the Civil Administrative Code of Illinois, the
471-Department shall make copies of the analyses available to the
472-credit union industry in a timely manner. The administrative
473-and operational expenses of the Credit Union Section of the
474-Department in conducting examinations required or authorized
475-by the Illinois Community Reinvestment Act shall have the same
476-meaning and scope as the administrative and operational
477-expenses of the Credit Union Section of the Department, as
478-defined in subsection (5) of this Section.
479-(c) Notwithstanding provisions in the State Finance Act,
480-as now or hereafter amended, or any other law to the contrary,
481-the Governor may, during any fiscal year through January 10,
482-2011, from time to time direct the State Treasurer and
483-Comptroller to transfer a specified sum not exceeding 10% of
484-the revenues to be deposited into the Credit Union Fund during
485-that fiscal year from that Fund to the General Revenue Fund in
486-order to help defray the State's operating costs for the
487-fiscal year. Notwithstanding provisions in the State Finance
488-Act, as now or hereafter amended, or any other law to the
489-contrary, the total sum transferred from the Credit Union Fund
490-to the General Revenue Fund pursuant to this provision shall
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213+1 material financial loss or created a reasonable
214+2 probability that a substantial and material
215+3 financial loss will directly result; or
216+4 (ii) constituted willful misconduct or a
217+5 material breach of fiduciary duty of any director,
218+6 officer, or committee member of the credit union;
219+7 Material financial loss, as referenced in this
220+8 paragraph (B), shall be assessed in light of
221+9 surrounding circumstances and the relative size and
222+10 nature of the financial loss or probable financial
223+11 loss. Certain benchmarks shall be used in determining
224+12 whether financial loss is material, such as a
225+13 percentage of total assets or total gross income for
226+14 the immediately preceding 12-month period. Absent
227+15 compelling and extraordinary circumstances, no civil
228+16 penalty shall be assessed, unless the financial loss
229+17 or probable financial loss is equal to or greater than
230+18 either 1% of the credit union's total assets for the
231+19 immediately preceding 12-month period, or 1% of the
232+20 credit union's total gross income for the immediately
233+21 preceding 12-month period, whichever is less;
234+22 (C) before a civil penalty is assessed under this
235+23 item (6), the credit union must be expressly advised
236+24 in writing of the:
237+25 (i) specific violation that could subject it
238+26 to a penalty under this item (6); and
491239
492240
493-not exceed during any fiscal year 10% of the revenues to be
494-deposited into the Credit Union Fund during that fiscal year.
495-The State Treasurer and Comptroller shall transfer the amounts
496-designated under this Section as soon as may be practicable
497-after receiving the direction to transfer from the Governor.
498-(5) The administrative and operational expenses for any
499-fiscal year shall mean the ordinary and contingent expenses
500-for that year incidental to making the examinations provided
501-for by, and for administering, this Act, including all
502-salaries and other compensation paid for personal services
503-rendered for the State by officers or employees of the State to
504-enforce this Act; all expenditures for telephone and telegraph
505-charges, postage and postal charges, office supplies and
506-services, furniture and equipment, office space and
507-maintenance thereof, travel expenses and other necessary
508-expenses; all to the extent that such expenditures are
509-directly incidental to such examination or administration.
510-(6) When the balance in the Credit Union Fund at the end of
511-a fiscal year exceeds 25% of the total administrative and
512-operational expenses incurred by the State in administering
513-and enforcing the Illinois Credit Union Act and other laws,
514-rules, and regulations as may apply to the administration and
515-enforcement of the foregoing laws, rules, and regulations as
516-amended from time to time for that fiscal year, such excess
517-shall be credited to credit unions and applied against their
518-regulatory fees for the subsequent fiscal year. The amount
519241
520242
521-credited to each credit union shall be in the same proportion
522-as the regulatory fee paid by such credit union for the fiscal
523-year in which the excess is produced bears to the aggregate
524-amount of all fees collected by the Department under this Act
525-for the same fiscal year.
526-(7) (Blank).
527-(8) Nothing in this Act shall prohibit the General
528-Assembly from appropriating funds to the Department from the
529-General Revenue Fund for the purpose of administering this
530-Act.
531-(9) For purposes of this Section, "fiscal year" means a
532-period beginning on July 1 of any calendar year and ending on
533-June 30 of the next calendar year.
534-(Source: P.A. 103-107, eff. 6-27-23.)
535-(205 ILCS 305/13) (from Ch. 17, par. 4414)
536-Sec. 13. General powers. A credit union may:
537-(1) Make contracts; sue and be sued; and adopt and use
538-a common seal and alter the same;
539-(2) Acquire, lease (either as lessee or lessor), hold,
540-pledge, mortgage, sell and dispose of real property,
541-either in whole or in part, or any interest therein, as may
542-be necessary or incidental to its present or future
543-operations and needs, subject to such limitations as may
544-be imposed thereon in rules and regulations promulgated by
545-the Secretary; acquire, lease (either as lessee or
243+
244+ SB3687 Enrolled - 7 - LRB103 38108 RTM 68240 b
546245
547246
548-lessor), hold, pledge, mortgage, sell and dispose of
549-personal property, either in whole or in part, or any
550-interest therein, as may be necessary or incidental to its
551-present or future operations and needs;
552-(3) At the discretion of the board of directors,
553-require the payment of an entrance fee or annual
554-membership fee, or both, of any person admitted to
555-membership;
556-(4) Receive savings from its members in the form of
557-shares of various classes, or special purpose share
558-accounts; act as custodian of its members' accounts; issue
559-shares in trust as provided in this Act;
560-(5) Lend its funds to its members and otherwise as
561-hereinafter provided;
562-(6) Borrow from any source in accordance with policy
563-established by the board of directors to a maximum of 50%
564-of capital, surplus and reserves;
565-(7) Discount and sell any obligations owed to the
566-credit union;
567-(8) Honor requests for withdrawals or transfers of all
568-or any part of member share accounts, and any classes
569-thereof, in any manner approved by the credit union board
570-of directors;
571-(9) Sell all or a part of its assets or purchase all or
572-a part of the assets of another credit union and assume the
573-liabilities of the selling credit union, subject to the
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249+1 (ii) specific remedial action to be taken
250+2 within a specific and reasonable time frame to
251+3 avoid imposition of the penalty;
252+4 (D) civil penalties assessed under this item (6)
253+5 shall be remedial, not punitive, and reasonably
254+6 tailored to ensure future compliance by the credit
255+7 union with the provisions of this Act and any rules
256+8 adopted pursuant to this Act;
257+9 (E) a credit union's failure to take timely
258+10 remedial action with respect to the specific violation
259+11 may result in the issuance of an order assessing a
260+12 civil penalty up to the following maximum amount,
261+13 based upon the total assets of the credit union:
262+14 (i) Credit unions with assets of less than $10
263+15 million................................................$1,000
264+16 (ii) Credit unions with assets of at least $10
265+17 million and less than $50 million......................$2,500
266+18 (iii) Credit unions with assets of at least
267+19 $50 million and less than $100 million.................$5,000
268+20 (iv) Credit unions with assets of at least
269+21 $100 million and less than $500 million...............$10,000
270+22 (v) Credit unions with assets of at least $500
271+23 million and less than $1 billion......................$25,000
272+24 (vi) Credit unions with assets of $1 billion
273+25 and greater.....................................$50,000; and
274+26 (F) an order assessing a civil penalty under this
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575276
576-prior approval of the Director, which approval shall not
577-be required in the case of loan transactions otherwise
578-authorized under applicable law;
579-(10) Invest surplus funds as provided in this Act;
580-(11) Make deposits in banks, savings banks, savings
581-and loan associations, trust companies; and invest in
582-shares, classes of shares or share certificates of other
583-credit unions;
584-(12) Assess charges and fees to members in accordance
585-with board resolution;
586-(13) Hold membership in and pay dues to associations
587-and organizations; to invest in shares, stocks or
588-obligations of any credit union organization;
589-(14) Declare dividends and pay interest refunds to
590-borrowers as provided in this Act;
591-(15) Collect, receive and disburse monies in
592-connection with providing negotiable checks, money orders
593-and other money-type instruments, and for such other
594-purposes as may provide benefit or convenience to its
595-members, and charge a reasonable fee for such services;
596-(16) Act as fiscal agent for and receive deposits from
597-the federal government, this State, or any other state,
598-state or any agency or political subdivision thereof,
599-including, but not limited to, political subdivisions as
600-defined in subsection (b) of Section 59. The receipt of
601-deposits from any state other than Illinois, or any agency
602277
603278
604-or political subdivision thereof, shall not exceed the
605-total limit of the greater of 50% of paid-in and
606-unimpaired capital and surplus or $3,000,000 as described
607-in 12 CFR 701.32 and shall otherwise comply with the
608-requirements of 12 CFR 701.32;
609-(17) Receive savings from nonmembers in the form of
610-shares or share accounts in the case of credit unions
611-serving predominantly low-income members. The term "low
612-income members" shall mean those members who make less
613-than 80% of the average for all wage earners as
614-established by the Bureau of Labor Statistics or those
615-members whose annual household income falls at or below
616-80% of the median household income for the nation as
617-established by the Census Bureau. The term "predominantly"
618-is defined as a simple majority;
619-(18) Establish, maintain, and operate terminals as
620-authorized by the Electronic Fund Transfer Act;
621-(19) Subject to Article XLIV of the Illinois Insurance
622-Code, act as the agent for any fire, life, or other
623-insurance company authorized by the State of Illinois, by
624-soliciting and selling insurance and collecting premiums
625-on policies issued by such company; and may receive for
626-services so rendered such fees or commissions as may be
627-agreed upon between the said credit union and the
628-insurance company for which it may act as agent; provided,
629-however, that no such credit union shall in any case
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631282
632-assume or guarantee the payment of any premium on
633-insurance policies issued through its agency by its
634-principal; and provided further, that the credit union
635-shall not guarantee the truth of any statement made by an
636-assured in filing his application for insurance; and
637-(20) Make reasonable contributions to civic,
638-charitable, or service organizations not organized for
639-profit; religious corporations; and fundraisers benefiting
640-persons in the credit union's service area.
641-(Source: P.A. 97-133, eff. 1-1-12.)
642-(205 ILCS 305/39) (from Ch. 17, par. 4440)
643-Sec. 39. Special purpose share accounts; charitable
644-donation accounts.
645-(1) If provided for in and consistent with the bylaws,
646-Christmas clubs, vacation clubs and other special purpose
647-share accounts may be established and offered under conditions
648-and restrictions established by the board of directors.
649-(2) Pursuant to a policy adopted by the board of
650-directors, which may be amended from time to time, a credit
651-union may establish one or more charitable donation accounts.
652-The investments and purchases to fund a charitable donation
653-account are not subject to the investment limitations of this
654-Act, provided the charitable donation account is structured in
655-accordance with this Act. At their time of purchase, the book
656-value of the investments in all charitable donation accounts,
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285+1 item (6) shall take effect upon service of the order,
286+2 unless the credit union makes a written request for a
287+3 hearing under 38 Ill. Adm. Code 190.20 of the
288+4 Department's rules for credit unions within 90 days
289+5 after issuance of the order; in that event, the order
290+6 shall be stayed until a final administrative order is
291+7 entered.
292+8 This item (6) shall not apply to violations separately
293+9 addressed in rules as authorized under item (7) of this
294+10 Section.
295+11 (7) Except for the fees established in this Act, to
296+12 prescribe, by rule and regulation, fees and penalties for
297+13 preparing, approving, and filing reports and other
298+14 documents; furnishing transcripts; holding hearings;
299+15 investigating applications for permission to organize,
300+16 merge, or convert; failure to maintain accurate books and
301+17 records to enable the Department to conduct an
302+18 examination; and taking supervisory actions.
303+19 (8) To destroy, in his discretion, any or all books
304+20 and records of any credit union in his possession or under
305+21 his control after the expiration of three years from the
306+22 date of cancellation of the charter of such credit unions.
307+23 (9) To make investigations and to conduct research and
308+24 studies and to publish some of the problems of persons in
309+25 obtaining credit at reasonable rates of interest and of
310+26 the methods and benefits of cooperative saving and lending
657311
658312
659-in the aggregate, shall not exceed 5% of the credit union's net
660-worth.
661-(a) If a credit union chooses to establish a
662-charitable donation account using a trust vehicle, the
663-trustee must be an entity regulated by the Office of the
664-Comptroller of the Currency, the U.S. Securities and
665-Exchange Commission, another federal regulatory agency, or
666-a State financial regulatory agency. A regulated trustee
667-or other person who is authorized to make investment
668-decisions for a charitable donation account, other than
669-the credit union itself, shall either be registered with
670-the U.S. Securities and Exchange Commission as an
671-investment advisor or regulated by the Office of the
672-Comptroller of the Currency.
673-(b) The parties to the charitable donation account
674-must document the terms and conditions controlling the
675-account in a written operating agreement, trust agreement,
676-or similar instrument. The terms of the agreement shall be
677-consistent with the requirements and conditions set forth
678-in this Section. The agreement, if applicable, and
679-policies must document the investment strategies of the
680-charitable donation account trustee or other manager in
681-administering the charitable donation account and provide
682-for the accounting of all aspects of the account,
683-including its distributions and liquidation, in accordance
684-with generally accepted accounting principles.
685313
686314
687-(c) A credit union's charitable donation account
688-agreement, if applicable, and policies shall provide that
689-the charitable organization or non-profit entity
690-recipients of any charitable donation account funds must
691-be identified in the policy and be exempt from taxation
692-under Section 501(c)(3) or Section 501(c)(19) of the
693-Internal Revenue Code.
694-(d) Upon termination of a charitable donation account,
695-the credit union may receive a distribution of the
696-remaining assets in cash, or a distribution in kind of the
697-remaining assets, but only if those assets are permissible
698-investments for credit unions pursuant to this Act.
699-(3) Pursuant to subsection (20) of Section 13 authorizing
700-a credit union to make reasonable contributions to civic,
701-charitable, service, or religious corporations and to avoid
702-the cost, administrative expenses, and reporting requirements
703-associated with establishing its own private foundation, a
704-credit union may establish one or more donor-advised fund
705-accounts. The credit union shall maintain the account on its
706-books and records under a name it selects, which may identify
707-the account as a charitable or grant fund or other name that
708-reflects the charitable nature of the account. The account
709-shall be subject to the terms and restrictions set forth in
710-this subsection.
711-(a) Transfers from a donor-advised fund account shall
712-be limited to foundations exempt from taxation under
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715-Section 501(c)(3) of the Internal Revenue Code.
716-(b) Distributions by a foundation receiving
717-donor-advised funds from the credit union shall be:
718-(i) based upon specific grant recommendations of
719-the credit union; and
720-(ii) limited to public charities exempt from
721-taxation under Section 501(c)(3) of the Internal
722-Revenue Code.
723-(c) Transfers by a credit union from its donor-advised
724-fund account to a foundation irrevocably conveys all
725-right, title, and interest in the funds to the foundation,
726-subject only to the continuing right of the credit union
727-to designate the entity or entities that will receive the
728-grant funds. Grants may not be used to satisfy any
729-obligation of the credit union and no goods or services
730-may be received by the credit union from the recipient
731-organization in consideration of the grant.
732-(Source: P.A. 102-774, eff. 5-13-22.)
733-(205 ILCS 305/59) (from Ch. 17, par. 4460)
734-Sec. 59. Investment of funds.
735-(a) Funds not used in loans to members may be invested,
736-pursuant to subsection (7) of Section 30 of this Act, and
737-subject to Departmental rules and regulations:
738-(1) In securities, obligations or other instruments of
739-or issued by or fully guaranteed as to principal and
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321+1 for such persons.
322+2 (10) To authorize, foster, or establish experimental,
323+3 developmental, demonstration, or pilot projects by public
324+4 or private organizations including credit unions which:
325+5 (a) promote more effective operation of credit
326+6 unions so as to provide members an opportunity to use
327+7 and control their own money to improve their economic
328+8 and social conditions; or
329+9 (b) are in the best interests of credit unions,
330+10 their members and the people of the State of Illinois.
331+11 (11) To cooperate in studies, training, or other
332+12 administrative activities with, but not limited to, the
333+13 NCUA, other state credit union regulatory agencies and
334+14 industry trade associations in order to promote more
335+15 effective and efficient supervision of Illinois chartered
336+16 credit unions.
337+17 (12) Notwithstanding the provisions of this Section,
338+18 the Secretary shall not:
339+19 (1) issue an order against a credit union
340+20 organized under this Act for unsafe or unsound banking
341+21 practices solely because the entity provides or has
342+22 provided financial services to a cannabis-related
343+23 legitimate business;
344+24 (2) prohibit, penalize, or otherwise discourage a
345+25 credit union from providing financial services to a
346+26 cannabis-related legitimate business solely because
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741348
742-interest by the United States of America or any agency
743-thereof or in any trust or trusts established for
744-investing directly or collectively in the same;
745-(2) In obligations of any state of the United States,
746-the District of Columbia, the Commonwealth of Puerto Rico,
747-and the several territories organized by Congress, or any
748-political subdivision thereof; however, a credit union may
749-not invest more than 10% of its unimpaired capital and
750-surplus in the obligations of one issuer, exclusive of
751-general obligations of the issuer, and investments in
752-municipal securities must be limited to securities rated
753-in one of the 4 highest rating investment grades by a
754-nationally recognized statistical rating organization;
755-(3) In certificates of deposit or passbook type
756-accounts issued by a state or national bank, mutual
757-savings bank or savings and loan association; provided
758-that such institutions have their accounts insured by the
759-Federal Deposit Insurance Corporation or the Federal
760-Savings and Loan Insurance Corporation; but provided,
761-further, that a credit union's investment in an account in
762-any one institution may exceed the insured limit on
763-accounts;
764-(4) In shares, classes of shares or share certificates
765-of other credit unions, including, but not limited to,
766-corporate credit unions; provided that such credit unions
767-have their members' accounts insured by the NCUA or other
768349
769350
770-approved insurers, and that if the members' accounts are
771-so insured, a credit union's investment may exceed the
772-insured limit on accounts;
773-(5) In shares of a cooperative society organized under
774-the laws of this State or the laws of the United States in
775-the total amount not exceeding 10% of the unimpaired
776-capital and surplus of the credit union; provided that
777-such investment shall first be approved by the Department;
778-(6) In obligations of the State of Israel, or
779-obligations fully guaranteed by the State of Israel as to
780-payment of principal and interest;
781-(7) In shares, stocks or obligations of other
782-financial institutions in the total amount not exceeding
783-5% of the unimpaired capital and surplus of the credit
784-union;
785-(8) In federal funds and bankers' acceptances;
786-(9) In shares or stocks of Credit Union Service
787-Organizations in the total amount not exceeding the
788-greater of 6% of the unimpaired capital and surplus of the
789-credit union or the amount authorized for federal credit
790-unions;
791-(10) In corporate bonds identified as investment grade
792-by at least one nationally recognized statistical rating
793-organization, provided that:
794-(i) the board of directors has established a
795-written policy that addresses corporate bond
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798-investment procedures and how the credit union will
799-manage credit risk, interest rate risk, liquidity
800-risk, and concentration risk; and
801-(ii) the credit union has documented in its
802-records that a credit analysis of a particular
803-investment and the issuing entity was conducted by the
804-credit union, a third party on behalf of the credit
805-union qualified by education or experience to assess
806-the risk characteristics of corporate bonds, or a
807-nationally recognized statistical rating agency before
808-purchasing the investment and the analysis is updated
809-at least annually for as long as it holds the
810-investment;
811-(11) To aid in the credit union's management of its
812-assets, liabilities, and liquidity in the purchase of an
813-investment interest in a pool of loans, in whole or in part
814-and without regard to the membership of the borrowers,
815-from other depository institutions and financial type
816-institutions, including mortgage banks, finance companies,
817-insurance companies, and other loan sellers, subject to
818-such safety and soundness standards, limitations, and
819-qualifications as the Department may establish by rule or
820-guidance from time to time;
821-(12) To aid in the credit union's management of its
822-assets, liabilities, and liquidity by receiving funds from
823-another financial institution as evidenced by certificates
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356+ SB3687 Enrolled - 11 - LRB103 38108 RTM 68240 b
357+1 the entity provides or has provided financial services
358+2 to a cannabis-related legitimate business;
359+3 (3) recommend, incentivize, or encourage a credit
360+4 union not to offer financial services to an account
361+5 holder or to downgrade or cancel the financial
362+6 services offered to an account holder solely because:
363+7 (A) the account holder is a manufacturer or
364+8 producer, or is the owner, operator, or employee
365+9 of a cannabis-related legitimate business;
366+10 (B) the account holder later becomes an owner
367+11 or operator of a cannabis-related legitimate
368+12 business; or
369+13 (C) the credit union was not aware that the
370+14 account holder is the owner or operator of a
371+15 cannabis-related legitimate business; and
372+16 (4) take any adverse or corrective supervisory
373+17 action on a loan made to an owner or operator of:
374+18 (A) a cannabis-related legitimate business
375+19 solely because the owner or operator owns or
376+20 operates a cannabis-related legitimate business;
377+21 or
378+22 (B) real estate or equipment that is leased to
379+23 a cannabis-related legitimate business solely
380+24 because the owner or operator of the real estate
381+25 or equipment leased the equipment or real estate
382+26 to a cannabis-related legitimate business.
824383
825384
826-of deposit, share certificates, or other classes of shares
827-issued by the credit union to the financial institution;
828-(13) In the purchase and assumption of assets held by
829-other financial institutions, with approval of the
830-Secretary and subject to any safety and soundness
831-standards, limitations, and qualifications as the
832-Department may establish by rule or guidance from time to
833-time;
834-(14) In the shares, stocks, or obligations of
835-community development financial institutions as defined in
836-regulations issued by the U.S. Department of the Treasury
837-and minority depository institutions as defined by the
838-National Credit Union Administration; however the
839-aggregate amount of all such investments shall not at any
840-time exceed 5% of the paid-in and unimpaired capital and
841-surplus of the credit union; and
842-(15)(A) In shares, stocks, or member units of
843-financial technology companies in the total amount not
844-exceeding 2.5% of the net worth of the credit union, so
845-long as:
846-(i) the credit union would remain well capitalized
847-as defined by 12 CFR 702.102 if the credit union
848-reduced its net worth by the full investment amount at
849-the time the investment is made or at any point during
850-the time the investment is held by the credit union;
851-(ii) the credit union and the financial technology
852385
853386
854-company are operated in a manner that demonstrates to
855-the public the separate corporate existence of the
856-credit union and financial technology company; and
857-(iii) the credit union has received a composite
858-rating of 1 or 2 under the CAMELS supervisory rating
859-system.
860-(B) The investment limit in subparagraph (A) of this
861-paragraph (15) is increased to 5% of the net worth of the
862-credit union if it has received a management rating of 1
863-under the CAMELS supervisory rating system at the time a
864-specific investment is made and at all times during the
865-term of the investment. A credit union that satisfies the
866-criteria in subparagraph (A) of this paragraph (15) and
867-this subparagraph may request approval from the Secretary
868-for an exception to the 5% limit up to a limit of 10% of
869-the net worth of the credit union, subject to such safety
870-and soundness standards, limitations, and qualifications
871-as the Department may establish by rule or guidance from
872-time to time. The request shall be in writing and
873-substantiate the need for the higher limit, describe the
874-credit union's record of investment activity, and include
875-financial statements reflecting a sound fiscal history.
876-(C) Before investing in a financial technology
877-company, the credit union shall obtain a written legal
878-opinion as to whether the financial technology company is
879-established in a manner that will limit potential exposure
387+
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881390
882-of the credit union to no more than the loss of funds
883-invested in the financial technology company and the legal
884-opinion shall:
885-(i) address factors that have led courts to
886-"pierce the corporate veil", such as inadequate
887-capitalization, lack of separate corporate identity,
888-common boards of directors and employees, control of
889-one entity over another, and lack of separate books
890-and records; and
891-(ii) be provided by independent legal counsel of
892-the credit union.
893-(D) Before investing in the financial technology
894-company, the credit union shall enter into a written
895-investment agreement with the financial technology company
896-and the agreement shall contain the following clauses:
897-(i) the financial technology company will: (I)
898-provide the Department with access to the books and
899-records of the financial technology company relating
900-to the investment made by the credit union, with the
901-costs of examining those records borne by the credit
902-union in accordance with the per diem rate established
903-by the Department by rule; (II) follow generally
904-accepted accounting principles; and (III) provide the
905-credit union with its financial statements on at least
906-a quarterly basis and certified public accountant
907-audited financial statements on an annual basis; and
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392+ SB3687 Enrolled - 12 - LRB103 38108 RTM 68240 b
393+1 (Source: P.A. 102-858, eff. 5-13-22; 103-154, eff. 6-30-23.)
394+2 (205 ILCS 305/12) (from Ch. 17, par. 4413)
395+3 Sec. 12. Regulatory fees.
396+4 (1) For the fiscal year beginning July 1, 2007, a credit
397+5 union regulated by the Department shall pay a regulatory fee
398+6 to the Department based upon its total assets as shown by its
399+7 Year-end Call Report at the following rates or at a lesser rate
400+8 established by the Secretary in a manner proportionately
401+9 consistent with the following rates and sufficient to fund the
402+10 actual administrative and operational expenses of the
403+11 Department's Credit Union Section pursuant to subsection (4)
404+12 of this Section:
405+13TOTAL ASSETSREGULATORY FEE14$25,000 or less ................$10015Over $25,000 and not over 16$100,000 .......................$100 plus $4 per 17$1,000 of assets in excess of 18$25,00019Over $100,000 and not over 20$200,000 .......................$400 plus $3 per 21$1,000 of assets in excess of 22$100,00023Over $200,000 and not over 24$500,000 .......................$700 plus $2 per 25$1,000 of assets in excess of 13 TOTAL ASSETS REGULATORY FEE 14 $25,000 or less ................ $100 15 Over $25,000 and not over 16 $100,000 ....................... $100 plus $4 per 17 $1,000 of assets in excess of 18 $25,000 19 Over $100,000 and not over 20 $200,000 ....................... $400 plus $3 per 21 $1,000 of assets in excess of 22 $100,000 23 Over $200,000 and not over 24 $500,000 ....................... $700 plus $2 per 25 $1,000 of assets in excess of
406+13 TOTAL ASSETS REGULATORY FEE
407+14 $25,000 or less ................ $100
408+15 Over $25,000 and not over
409+16 $100,000 ....................... $100 plus $4 per
410+17 $1,000 of assets in excess of
411+18 $25,000
412+19 Over $100,000 and not over
413+20 $200,000 ....................... $400 plus $3 per
414+21 $1,000 of assets in excess of
415+22 $100,000
416+23 Over $200,000 and not over
417+24 $500,000 ....................... $700 plus $2 per
418+25 $1,000 of assets in excess of
908419
909420
910-(ii) the financial technology company and credit
911-union agree to terminate their contractual
912-relationship: (I) upon 90 days' written notice to the
913-parties by the Secretary that the safety and soundness
914-of the credit union is threatened pursuant to the
915-Department's cease and desist and suspension authority
916-in Sections 8 and 61; (II) upon 30 days' written notice
917-to the parties if the credit union's net worth ratio
918-falls below the level that classifies it as well
919-capitalized as defined by 12 CFR 702.102; and (III)
920-immediately upon the parties' receipt of written
921-notice from the Secretary when the Secretary
922-reasonably concludes, based upon specific facts set
923-forth in the notice to the parties, that the credit
924-union will suffer immediate, substantial, and
925-irreparable injury or loss if it remains a party to the
926-investment agreement.
927-(E) The termination of the investment agreement
928-between the financial technology company and credit union
929-shall in no way operate to relieve the financial
930-technology company from repaying the investment or other
931-obligation due and owing the credit union at the time of
932-termination.
933-(F) Any financial technology company in which a credit
934-union invests pursuant to this paragraph (15) that
935-directly or indirectly originates, purchases, facilitates,
936421
937422
938-brokers, or services loans to consumers in Illinois shall
939-not charge an interest rate that exceeds the applicable
940-maximum rate established by the Board of the National
941-Credit Union Administration pursuant to 12 CFR
942-701.21(c)(7)(iii)-(iv). The maximum interest rate
943-described in this subparagraph that may be charged by a
944-financial technology company applies to all consumer loans
945-and consumer credit products; and .
946-(16) In derivatives transactions, to aid in the credit
947-union's management of interest rate risk. Before entering
948-into a derivatives transaction, and at all times during
949-its management of a derivatives transactions program, a
950-credit union shall satisfy and comply with all the
951-requirements set forth in 12 CFR 703.101 et seq. All
952-definitional terms and operational standards shall have
953-the meanings given to them in 12 CFR 703.101 et seq.,
954-except references to federal credit unions shall be
955-construed to mean Illinois-chartered credit unions, and
956-references to the National Credit Union Administration and
957-Regional Director shall be respectfully construed to mean
958-the Department and the Secretary. A credit union with
959-assets of at least $500 million and a CAMELS management
960-component rating of 1 or 2 need not obtain prior approval
961-from the Department before engaging in derivative
962-transactions
963-but shall notify the Secretary in writing or
964-by electronic mail within 5 business days after entering
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965425
966426
967-into its first derivatives transaction.
968-(b) As used in this Section:
969-"Political subdivision" includes, but is not limited to,
970-counties, townships, cities, villages, incorporated towns,
971-school districts, educational service regions, special road
972-districts, public water supply districts, fire protection
973-districts, drainage districts, levee districts, sewer
974-districts, housing authorities, park districts, and any
975-agency, corporation, or instrumentality of a state or its
976-political subdivisions, whether now or hereafter created and
977-whether herein specifically mentioned or not.
978-"Financial institution" includes any bank, savings bank,
979-savings and loan association, or credit union established
980-under the laws of the United States, this State, or any other
981-state.
982-"Financial technology company" includes any corporation,
983-partnership, limited liability company, or other entity
984-organized under the laws of Illinois, another state, or the
985-United States of America:
986-(1) that the principal business of which is the
987-provision of financial products or financial services, or
988-both, that:
989-(i) currently relate or may prospectively relate
990-to the daily operations of credit unions;
991-(ii) are of current or prospective benefit to the
992-members of credit unions; or
427+13 TOTAL ASSETS REGULATORY FEE
428+14 $25,000 or less ................ $100
429+15 Over $25,000 and not over
430+16 $100,000 ....................... $100 plus $4 per
431+17 $1,000 of assets in excess of
432+18 $25,000
433+19 Over $100,000 and not over
434+20 $200,000 ....................... $400 plus $3 per
435+21 $1,000 of assets in excess of
436+22 $100,000
437+23 Over $200,000 and not over
438+24 $500,000 ....................... $700 plus $2 per
439+25 $1,000 of assets in excess of
993440
994441
995-(iii) are of current or prospective benefit to
996-consumers eligible for membership in credit unions;
997-and
998-(2) that applies technological interventions,
999-including, without limitation, specialized software or
1000-algorithm processes, products, or solutions, to improve
1001-and automate the delivery and use of those financial
1002-products or financial services.
1003-(c) A credit union investing to fund an employee benefit
1004-plan obligation is not subject to the investment limitations
1005-of this Act and this Section and may purchase an investment
1006-that would otherwise be impermissible if the investment is
1007-directly related to the credit union's obligation under the
1008-employee benefit plan and the credit union holds the
1009-investment only for so long as it has an actual or potential
1010-obligation under the employee benefit plan.
1011-(d) If a credit union acquires loans from another
1012-financial institution or financial-type institution pursuant
1013-to this Section, the credit union shall be authorized to
1014-provide loan servicing and collection services in connection
1015-with those loans.
1016-(Source: P.A. 102-496, eff. 8-20-21; 102-774, eff. 5-13-22;
1017-102-858, eff. 5-13-22; 103-154, eff. 6-30-23.)
442+SB3687 Enrolled- 13 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 13 - LRB103 38108 RTM 68240 b
443+ SB3687 Enrolled - 13 - LRB103 38108 RTM 68240 b
444+1$200,0002Over $500,000 and not over 3$1,000,000 .....................$1,300 plus $1.40 4per $1,000 of assets in excess 5of $500,0006Over $1,000,000 and not 7over $5,000,000.................$2,000 plus $0.50 8per $1,000 of assets in 9excess of $1,000,00010Over $5,000,000 and not 11over $30,000,000 ............... $4,540 plus $0.397 12per $1,000 of assets 13in excess of $5,000,00014Over $30,000,000 and not over 15$100,000,000....................$14,471 plus $0.34 16per $1,000 of assets 17 in excess of $30,000,00018Over $100,000,000 and not 19over $500,000,000 ..............$38,306 plus $0.17 20per $1,000 of assets 21in excess of $100,000,00022Over $500,000,000 ..............$106,406 plus $0.056 23per $1,000 of assets 24in excess of $500,000,000 1 $200,000 2 Over $500,000 and not over 3 $1,000,000 ..................... $1,300 plus $1.40 4 per $1,000 of assets in excess 5 of $500,000 6 Over $1,000,000 and not 7 over $5,000,000................. $2,000 plus $0.50 8 per $1,000 of assets in 9 excess of $1,000,000 10 Over $5,000,000 and not 11 over $30,000,000 ............... $4,540 plus $0.397 12 per $1,000 of assets 13 in excess of $5,000,000 14 Over $30,000,000 and not over 15 $100,000,000.................... $14,471 plus $0.34 16 per $1,000 of assets 17 in excess of $30,000,000 18 Over $100,000,000 and not 19 over $500,000,000 .............. $38,306 plus $0.17 20 per $1,000 of assets 21 in excess of $100,000,000 22 Over $500,000,000 .............. $106,406 plus $0.056 23 per $1,000 of assets 24 in excess of $500,000,000
445+1 $200,000
446+2 Over $500,000 and not over
447+3 $1,000,000 ..................... $1,300 plus $1.40
448+4 per $1,000 of assets in excess
449+5 of $500,000
450+6 Over $1,000,000 and not
451+7 over $5,000,000................. $2,000 plus $0.50
452+8 per $1,000 of assets in
453+9 excess of $1,000,000
454+10 Over $5,000,000 and not
455+11 over $30,000,000 ............... $4,540 plus $0.397
456+12 per $1,000 of assets
457+13 in excess of $5,000,000
458+14 Over $30,000,000 and not over
459+15 $100,000,000.................... $14,471 plus $0.34
460+16 per $1,000 of assets
461+17 in excess of $30,000,000
462+18 Over $100,000,000 and not
463+19 over $500,000,000 .............. $38,306 plus $0.17
464+20 per $1,000 of assets
465+21 in excess of $100,000,000
466+22 Over $500,000,000 .............. $106,406 plus $0.056
467+23 per $1,000 of assets
468+24 in excess of $500,000,000
469+25 (2) The Secretary shall review the regulatory fee schedule
470+26 in subsection (1) and the projected earnings on those fees on
471+
472+
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475+
476+ SB3687 Enrolled - 13 - LRB103 38108 RTM 68240 b
477+
478+1 $200,000
479+2 Over $500,000 and not over
480+3 $1,000,000 ..................... $1,300 plus $1.40
481+4 per $1,000 of assets in excess
482+5 of $500,000
483+6 Over $1,000,000 and not
484+7 over $5,000,000................. $2,000 plus $0.50
485+8 per $1,000 of assets in
486+9 excess of $1,000,000
487+10 Over $5,000,000 and not
488+11 over $30,000,000 ............... $4,540 plus $0.397
489+12 per $1,000 of assets
490+13 in excess of $5,000,000
491+14 Over $30,000,000 and not over
492+15 $100,000,000.................... $14,471 plus $0.34
493+16 per $1,000 of assets
494+17 in excess of $30,000,000
495+18 Over $100,000,000 and not
496+19 over $500,000,000 .............. $38,306 plus $0.17
497+20 per $1,000 of assets
498+21 in excess of $100,000,000
499+22 Over $500,000,000 .............. $106,406 plus $0.056
500+23 per $1,000 of assets
501+24 in excess of $500,000,000
502+
503+
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505+ SB3687 Enrolled - 14 - LRB103 38108 RTM 68240 b
506+1 an annual basis and adjust the fee schedule no more than 5%
507+2 annually if necessary to defray the estimated administrative
508+3 and operational expenses of the Credit Union Section of the
509+4 Department as defined in subsection (5). However, the fee
510+5 schedule shall not be increased if the amount remaining in the
511+6 Credit Union Fund at the end of any fiscal year is greater than
512+7 25% of the total actual and operational expenses incurred by
513+8 the State in administering and enforcing the Illinois Credit
514+9 Union Act and other laws, rules, and regulations as may apply
515+10 to the administration and enforcement of the foregoing laws,
516+11 rules, and regulations as amended from time to time for the
517+12 preceding fiscal year. The regulatory fee for the next fiscal
518+13 year shall be calculated by the Secretary based on the credit
519+14 union's total assets as of December 31 of the preceding
520+15 calendar year. The Secretary shall provide credit unions with
521+16 written notice of any adjustment made in the regulatory fee
522+17 schedule.
523+18 (3) A credit union shall pay to the Department a
524+19 regulatory fee in quarterly installments equal to one-fourth
525+20 of the regulatory fee due in accordance with the regulatory
526+21 fee schedule in subsection (1), on the basis of assets as of
527+22 the Year-end Call Report of the preceding calendar year. The
528+23 total annual regulatory fee shall not be less than $100 or more
529+24 than $210,000, provided that the regulatory fee cap of
530+25 $210,000 shall be adjusted to incorporate the same percentage
531+26 increase as the Secretary makes in the regulatory fee schedule
532+
533+
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542+1 from time to time under subsection (2). No regulatory fee
543+2 shall be collected from a credit union until it has been in
544+3 operation for one year. The regulatory fee shall be billed to
545+4 credit unions on a quarterly basis and it shall be payable by
546+5 credit unions on the due date for the Call Report for the
547+6 subject quarter.
548+7 (4)(a) The aggregate of all fees collected by the
549+8 Department under this Act and from credit unions pursuant to
550+9 the Illinois Community Reinvestment Act shall be paid promptly
551+10 after they are received, accompanied by a detailed statement
552+11 thereof, into the State treasury Treasury and shall be set
553+12 apart in the Credit Union Fund, a special fund hereby created
554+13 in the State treasury. The amount from time to time deposited
555+14 in the Credit Union Fund and shall be used to offset the
556+15 ordinary administrative and operational expenses of the Credit
557+16 Union Section of the Department under this Act. All earnings
558+17 received from investments of funds in the Credit Union Fund
559+18 shall be deposited into the Credit Union Fund and may be used
560+19 for the same purposes as fees deposited into that fund. Moneys
561+20 deposited in the Credit Union Fund may be transferred to the
562+21 Professions Indirect Cost Fund, as authorized under Section
563+22 2105-300 of the Department of Professional Regulation Law of
564+23 the Civil Administrative Code of Illinois.
565+24 (b) At the conclusion of each fiscal year, beginning in
566+25 fiscal year 2025, the Department shall separately identify the
567+26 direct administrative and operational expenses and allocable
568+
569+
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571+
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577+ SB3687 Enrolled - 16 - LRB103 38108 RTM 68240 b
578+1 indirect costs of the Credit Union Section of the Department
579+2 incidental to conducting the examinations required or
580+3 authorized by the Illinois Community Reinvestment Act and
581+4 implementing rules adopted by the Department. Pursuant to
582+5 Section 2105-300 of the Department of Professional Regulation
583+6 Law of the Civil Administrative Code of Illinois, the
584+7 Department shall make copies of the analyses available to the
585+8 credit union industry in a timely manner. The administrative
586+9 and operational expenses of the Credit Union Section of the
587+10 Department in conducting examinations required or authorized
588+11 by the Illinois Community Reinvestment Act shall have the same
589+12 meaning and scope as the administrative and operational
590+13 expenses of the Credit Union Section of the Department, as
591+14 defined in subsection (5) of this Section.
592+15 (c) Notwithstanding provisions in the State Finance Act,
593+16 as now or hereafter amended, or any other law to the contrary,
594+17 the Governor may, during any fiscal year through January 10,
595+18 2011, from time to time direct the State Treasurer and
596+19 Comptroller to transfer a specified sum not exceeding 10% of
597+20 the revenues to be deposited into the Credit Union Fund during
598+21 that fiscal year from that Fund to the General Revenue Fund in
599+22 order to help defray the State's operating costs for the
600+23 fiscal year. Notwithstanding provisions in the State Finance
601+24 Act, as now or hereafter amended, or any other law to the
602+25 contrary, the total sum transferred from the Credit Union Fund
603+26 to the General Revenue Fund pursuant to this provision shall
604+
605+
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613+ SB3687 Enrolled - 17 - LRB103 38108 RTM 68240 b
614+1 not exceed during any fiscal year 10% of the revenues to be
615+2 deposited into the Credit Union Fund during that fiscal year.
616+3 The State Treasurer and Comptroller shall transfer the amounts
617+4 designated under this Section as soon as may be practicable
618+5 after receiving the direction to transfer from the Governor.
619+6 (5) The administrative and operational expenses for any
620+7 fiscal year shall mean the ordinary and contingent expenses
621+8 for that year incidental to making the examinations provided
622+9 for by, and for administering, this Act, including all
623+10 salaries and other compensation paid for personal services
624+11 rendered for the State by officers or employees of the State to
625+12 enforce this Act; all expenditures for telephone and telegraph
626+13 charges, postage and postal charges, office supplies and
627+14 services, furniture and equipment, office space and
628+15 maintenance thereof, travel expenses and other necessary
629+16 expenses; all to the extent that such expenditures are
630+17 directly incidental to such examination or administration.
631+18 (6) When the balance in the Credit Union Fund at the end of
632+19 a fiscal year exceeds 25% of the total administrative and
633+20 operational expenses incurred by the State in administering
634+21 and enforcing the Illinois Credit Union Act and other laws,
635+22 rules, and regulations as may apply to the administration and
636+23 enforcement of the foregoing laws, rules, and regulations as
637+24 amended from time to time for that fiscal year, such excess
638+25 shall be credited to credit unions and applied against their
639+26 regulatory fees for the subsequent fiscal year. The amount
640+
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649+ SB3687 Enrolled - 18 - LRB103 38108 RTM 68240 b
650+1 credited to each credit union shall be in the same proportion
651+2 as the regulatory fee paid by such credit union for the fiscal
652+3 year in which the excess is produced bears to the aggregate
653+4 amount of all fees collected by the Department under this Act
654+5 for the same fiscal year.
655+6 (7) (Blank).
656+7 (8) Nothing in this Act shall prohibit the General
657+8 Assembly from appropriating funds to the Department from the
658+9 General Revenue Fund for the purpose of administering this
659+10 Act.
660+11 (9) For purposes of this Section, "fiscal year" means a
661+12 period beginning on July 1 of any calendar year and ending on
662+13 June 30 of the next calendar year.
663+14 (Source: P.A. 103-107, eff. 6-27-23.)
664+15 (205 ILCS 305/13) (from Ch. 17, par. 4414)
665+16 Sec. 13. General powers. A credit union may:
666+17 (1) Make contracts; sue and be sued; and adopt and use
667+18 a common seal and alter the same;
668+19 (2) Acquire, lease (either as lessee or lessor), hold,
669+20 pledge, mortgage, sell and dispose of real property,
670+21 either in whole or in part, or any interest therein, as may
671+22 be necessary or incidental to its present or future
672+23 operations and needs, subject to such limitations as may
673+24 be imposed thereon in rules and regulations promulgated by
674+25 the Secretary; acquire, lease (either as lessee or
675+
676+
677+
678+
679+
680+ SB3687 Enrolled - 18 - LRB103 38108 RTM 68240 b
681+
682+
683+SB3687 Enrolled- 19 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 19 - LRB103 38108 RTM 68240 b
684+ SB3687 Enrolled - 19 - LRB103 38108 RTM 68240 b
685+1 lessor), hold, pledge, mortgage, sell and dispose of
686+2 personal property, either in whole or in part, or any
687+3 interest therein, as may be necessary or incidental to its
688+4 present or future operations and needs;
689+5 (3) At the discretion of the board of directors,
690+6 require the payment of an entrance fee or annual
691+7 membership fee, or both, of any person admitted to
692+8 membership;
693+9 (4) Receive savings from its members in the form of
694+10 shares of various classes, or special purpose share
695+11 accounts; act as custodian of its members' accounts; issue
696+12 shares in trust as provided in this Act;
697+13 (5) Lend its funds to its members and otherwise as
698+14 hereinafter provided;
699+15 (6) Borrow from any source in accordance with policy
700+16 established by the board of directors to a maximum of 50%
701+17 of capital, surplus and reserves;
702+18 (7) Discount and sell any obligations owed to the
703+19 credit union;
704+20 (8) Honor requests for withdrawals or transfers of all
705+21 or any part of member share accounts, and any classes
706+22 thereof, in any manner approved by the credit union board
707+23 of directors;
708+24 (9) Sell all or a part of its assets or purchase all or
709+25 a part of the assets of another credit union and assume the
710+26 liabilities of the selling credit union, subject to the
711+
712+
713+
714+
715+
716+ SB3687 Enrolled - 19 - LRB103 38108 RTM 68240 b
717+
718+
719+SB3687 Enrolled- 20 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 20 - LRB103 38108 RTM 68240 b
720+ SB3687 Enrolled - 20 - LRB103 38108 RTM 68240 b
721+1 prior approval of the Director, which approval shall not
722+2 be required in the case of loan transactions otherwise
723+3 authorized under applicable law;
724+4 (10) Invest surplus funds as provided in this Act;
725+5 (11) Make deposits in banks, savings banks, savings
726+6 and loan associations, trust companies; and invest in
727+7 shares, classes of shares or share certificates of other
728+8 credit unions;
729+9 (12) Assess charges and fees to members in accordance
730+10 with board resolution;
731+11 (13) Hold membership in and pay dues to associations
732+12 and organizations; to invest in shares, stocks or
733+13 obligations of any credit union organization;
734+14 (14) Declare dividends and pay interest refunds to
735+15 borrowers as provided in this Act;
736+16 (15) Collect, receive and disburse monies in
737+17 connection with providing negotiable checks, money orders
738+18 and other money-type instruments, and for such other
739+19 purposes as may provide benefit or convenience to its
740+20 members, and charge a reasonable fee for such services;
741+21 (16) Act as fiscal agent for and receive deposits from
742+22 the federal government, this State, or any other state,
743+23 state or any agency or political subdivision thereof,
744+24 including, but not limited to, political subdivisions as
745+25 defined in subsection (b) of Section 59. The receipt of
746+26 deposits from any state other than Illinois, or any agency
747+
748+
749+
750+
751+
752+ SB3687 Enrolled - 20 - LRB103 38108 RTM 68240 b
753+
754+
755+SB3687 Enrolled- 21 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 21 - LRB103 38108 RTM 68240 b
756+ SB3687 Enrolled - 21 - LRB103 38108 RTM 68240 b
757+1 or political subdivision thereof, shall not exceed the
758+2 total limit of the greater of 50% of paid-in and
759+3 unimpaired capital and surplus or $3,000,000 as described
760+4 in 12 CFR 701.32 and shall otherwise comply with the
761+5 requirements of 12 CFR 701.32;
762+6 (17) Receive savings from nonmembers in the form of
763+7 shares or share accounts in the case of credit unions
764+8 serving predominantly low-income members. The term "low
765+9 income members" shall mean those members who make less
766+10 than 80% of the average for all wage earners as
767+11 established by the Bureau of Labor Statistics or those
768+12 members whose annual household income falls at or below
769+13 80% of the median household income for the nation as
770+14 established by the Census Bureau. The term "predominantly"
771+15 is defined as a simple majority;
772+16 (18) Establish, maintain, and operate terminals as
773+17 authorized by the Electronic Fund Transfer Act;
774+18 (19) Subject to Article XLIV of the Illinois Insurance
775+19 Code, act as the agent for any fire, life, or other
776+20 insurance company authorized by the State of Illinois, by
777+21 soliciting and selling insurance and collecting premiums
778+22 on policies issued by such company; and may receive for
779+23 services so rendered such fees or commissions as may be
780+24 agreed upon between the said credit union and the
781+25 insurance company for which it may act as agent; provided,
782+26 however, that no such credit union shall in any case
783+
784+
785+
786+
787+
788+ SB3687 Enrolled - 21 - LRB103 38108 RTM 68240 b
789+
790+
791+SB3687 Enrolled- 22 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 22 - LRB103 38108 RTM 68240 b
792+ SB3687 Enrolled - 22 - LRB103 38108 RTM 68240 b
793+1 assume or guarantee the payment of any premium on
794+2 insurance policies issued through its agency by its
795+3 principal; and provided further, that the credit union
796+4 shall not guarantee the truth of any statement made by an
797+5 assured in filing his application for insurance; and
798+6 (20) Make reasonable contributions to civic,
799+7 charitable, or service organizations not organized for
800+8 profit; religious corporations; and fundraisers benefiting
801+9 persons in the credit union's service area.
802+10 (Source: P.A. 97-133, eff. 1-1-12.)
803+11 (205 ILCS 305/39) (from Ch. 17, par. 4440)
804+12 Sec. 39. Special purpose share accounts; charitable
805+13 donation accounts.
806+14 (1) If provided for in and consistent with the bylaws,
807+15 Christmas clubs, vacation clubs and other special purpose
808+16 share accounts may be established and offered under conditions
809+17 and restrictions established by the board of directors.
810+18 (2) Pursuant to a policy adopted by the board of
811+19 directors, which may be amended from time to time, a credit
812+20 union may establish one or more charitable donation accounts.
813+21 The investments and purchases to fund a charitable donation
814+22 account are not subject to the investment limitations of this
815+23 Act, provided the charitable donation account is structured in
816+24 accordance with this Act. At their time of purchase, the book
817+25 value of the investments in all charitable donation accounts,
818+
819+
820+
821+
822+
823+ SB3687 Enrolled - 22 - LRB103 38108 RTM 68240 b
824+
825+
826+SB3687 Enrolled- 23 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 23 - LRB103 38108 RTM 68240 b
827+ SB3687 Enrolled - 23 - LRB103 38108 RTM 68240 b
828+1 in the aggregate, shall not exceed 5% of the credit union's net
829+2 worth.
830+3 (a) If a credit union chooses to establish a
831+4 charitable donation account using a trust vehicle, the
832+5 trustee must be an entity regulated by the Office of the
833+6 Comptroller of the Currency, the U.S. Securities and
834+7 Exchange Commission, another federal regulatory agency, or
835+8 a State financial regulatory agency. A regulated trustee
836+9 or other person who is authorized to make investment
837+10 decisions for a charitable donation account, other than
838+11 the credit union itself, shall either be registered with
839+12 the U.S. Securities and Exchange Commission as an
840+13 investment advisor or regulated by the Office of the
841+14 Comptroller of the Currency.
842+15 (b) The parties to the charitable donation account
843+16 must document the terms and conditions controlling the
844+17 account in a written operating agreement, trust agreement,
845+18 or similar instrument. The terms of the agreement shall be
846+19 consistent with the requirements and conditions set forth
847+20 in this Section. The agreement, if applicable, and
848+21 policies must document the investment strategies of the
849+22 charitable donation account trustee or other manager in
850+23 administering the charitable donation account and provide
851+24 for the accounting of all aspects of the account,
852+25 including its distributions and liquidation, in accordance
853+26 with generally accepted accounting principles.
854+
855+
856+
857+
858+
859+ SB3687 Enrolled - 23 - LRB103 38108 RTM 68240 b
860+
861+
862+SB3687 Enrolled- 24 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 24 - LRB103 38108 RTM 68240 b
863+ SB3687 Enrolled - 24 - LRB103 38108 RTM 68240 b
864+1 (c) A credit union's charitable donation account
865+2 agreement, if applicable, and policies shall provide that
866+3 the charitable organization or non-profit entity
867+4 recipients of any charitable donation account funds must
868+5 be identified in the policy and be exempt from taxation
869+6 under Section 501(c)(3) or Section 501(c)(19) of the
870+7 Internal Revenue Code.
871+8 (d) Upon termination of a charitable donation account,
872+9 the credit union may receive a distribution of the
873+10 remaining assets in cash, or a distribution in kind of the
874+11 remaining assets, but only if those assets are permissible
875+12 investments for credit unions pursuant to this Act.
876+13 (3) Pursuant to subsection (20) of Section 13 authorizing
877+14 a credit union to make reasonable contributions to civic,
878+15 charitable, service, or religious corporations and to avoid
879+16 the cost, administrative expenses, and reporting requirements
880+17 associated with establishing its own private foundation, a
881+18 credit union may establish one or more donor-advised fund
882+19 accounts. The credit union shall maintain the account on its
883+20 books and records under a name it selects, which may identify
884+21 the account as a charitable or grant fund or other name that
885+22 reflects the charitable nature of the account. The account
886+23 shall be subject to the terms and restrictions set forth in
887+24 this subsection.
888+25 (a) Transfers from a donor-advised fund account shall
889+26 be limited to foundations exempt from taxation under
890+
891+
892+
893+
894+
895+ SB3687 Enrolled - 24 - LRB103 38108 RTM 68240 b
896+
897+
898+SB3687 Enrolled- 25 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 25 - LRB103 38108 RTM 68240 b
899+ SB3687 Enrolled - 25 - LRB103 38108 RTM 68240 b
900+1 Section 501(c)(3) of the Internal Revenue Code.
901+2 (b) Distributions by a foundation receiving
902+3 donor-advised funds from the credit union shall be:
903+4 (i) based upon specific grant recommendations of
904+5 the credit union; and
905+6 (ii) limited to public charities exempt from
906+7 taxation under Section 501(c)(3) of the Internal
907+8 Revenue Code.
908+9 (c) Transfers by a credit union from its donor-advised
909+10 fund account to a foundation irrevocably conveys all
910+11 right, title, and interest in the funds to the foundation,
911+12 subject only to the continuing right of the credit union
912+13 to designate the entity or entities that will receive the
913+14 grant funds. Grants may not be used to satisfy any
914+15 obligation of the credit union and no goods or services
915+16 may be received by the credit union from the recipient
916+17 organization in consideration of the grant.
917+18 (Source: P.A. 102-774, eff. 5-13-22.)
918+19 (205 ILCS 305/59) (from Ch. 17, par. 4460)
919+20 Sec. 59. Investment of funds.
920+21 (a) Funds not used in loans to members may be invested,
921+22 pursuant to subsection (7) of Section 30 of this Act, and
922+23 subject to Departmental rules and regulations:
923+24 (1) In securities, obligations or other instruments of
924+25 or issued by or fully guaranteed as to principal and
925+
926+
927+
928+
929+
930+ SB3687 Enrolled - 25 - LRB103 38108 RTM 68240 b
931+
932+
933+SB3687 Enrolled- 26 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 26 - LRB103 38108 RTM 68240 b
934+ SB3687 Enrolled - 26 - LRB103 38108 RTM 68240 b
935+1 interest by the United States of America or any agency
936+2 thereof or in any trust or trusts established for
937+3 investing directly or collectively in the same;
938+4 (2) In obligations of any state of the United States,
939+5 the District of Columbia, the Commonwealth of Puerto Rico,
940+6 and the several territories organized by Congress, or any
941+7 political subdivision thereof; however, a credit union may
942+8 not invest more than 10% of its unimpaired capital and
943+9 surplus in the obligations of one issuer, exclusive of
944+10 general obligations of the issuer, and investments in
945+11 municipal securities must be limited to securities rated
946+12 in one of the 4 highest rating investment grades by a
947+13 nationally recognized statistical rating organization;
948+14 (3) In certificates of deposit or passbook type
949+15 accounts issued by a state or national bank, mutual
950+16 savings bank or savings and loan association; provided
951+17 that such institutions have their accounts insured by the
952+18 Federal Deposit Insurance Corporation or the Federal
953+19 Savings and Loan Insurance Corporation; but provided,
954+20 further, that a credit union's investment in an account in
955+21 any one institution may exceed the insured limit on
956+22 accounts;
957+23 (4) In shares, classes of shares or share certificates
958+24 of other credit unions, including, but not limited to,
959+25 corporate credit unions; provided that such credit unions
960+26 have their members' accounts insured by the NCUA or other
961+
962+
963+
964+
965+
966+ SB3687 Enrolled - 26 - LRB103 38108 RTM 68240 b
967+
968+
969+SB3687 Enrolled- 27 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 27 - LRB103 38108 RTM 68240 b
970+ SB3687 Enrolled - 27 - LRB103 38108 RTM 68240 b
971+1 approved insurers, and that if the members' accounts are
972+2 so insured, a credit union's investment may exceed the
973+3 insured limit on accounts;
974+4 (5) In shares of a cooperative society organized under
975+5 the laws of this State or the laws of the United States in
976+6 the total amount not exceeding 10% of the unimpaired
977+7 capital and surplus of the credit union; provided that
978+8 such investment shall first be approved by the Department;
979+9 (6) In obligations of the State of Israel, or
980+10 obligations fully guaranteed by the State of Israel as to
981+11 payment of principal and interest;
982+12 (7) In shares, stocks or obligations of other
983+13 financial institutions in the total amount not exceeding
984+14 5% of the unimpaired capital and surplus of the credit
985+15 union;
986+16 (8) In federal funds and bankers' acceptances;
987+17 (9) In shares or stocks of Credit Union Service
988+18 Organizations in the total amount not exceeding the
989+19 greater of 6% of the unimpaired capital and surplus of the
990+20 credit union or the amount authorized for federal credit
991+21 unions;
992+22 (10) In corporate bonds identified as investment grade
993+23 by at least one nationally recognized statistical rating
994+24 organization, provided that:
995+25 (i) the board of directors has established a
996+26 written policy that addresses corporate bond
997+
998+
999+
1000+
1001+
1002+ SB3687 Enrolled - 27 - LRB103 38108 RTM 68240 b
1003+
1004+
1005+SB3687 Enrolled- 28 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 28 - LRB103 38108 RTM 68240 b
1006+ SB3687 Enrolled - 28 - LRB103 38108 RTM 68240 b
1007+1 investment procedures and how the credit union will
1008+2 manage credit risk, interest rate risk, liquidity
1009+3 risk, and concentration risk; and
1010+4 (ii) the credit union has documented in its
1011+5 records that a credit analysis of a particular
1012+6 investment and the issuing entity was conducted by the
1013+7 credit union, a third party on behalf of the credit
1014+8 union qualified by education or experience to assess
1015+9 the risk characteristics of corporate bonds, or a
1016+10 nationally recognized statistical rating agency before
1017+11 purchasing the investment and the analysis is updated
1018+12 at least annually for as long as it holds the
1019+13 investment;
1020+14 (11) To aid in the credit union's management of its
1021+15 assets, liabilities, and liquidity in the purchase of an
1022+16 investment interest in a pool of loans, in whole or in part
1023+17 and without regard to the membership of the borrowers,
1024+18 from other depository institutions and financial type
1025+19 institutions, including mortgage banks, finance companies,
1026+20 insurance companies, and other loan sellers, subject to
1027+21 such safety and soundness standards, limitations, and
1028+22 qualifications as the Department may establish by rule or
1029+23 guidance from time to time;
1030+24 (12) To aid in the credit union's management of its
1031+25 assets, liabilities, and liquidity by receiving funds from
1032+26 another financial institution as evidenced by certificates
1033+
1034+
1035+
1036+
1037+
1038+ SB3687 Enrolled - 28 - LRB103 38108 RTM 68240 b
1039+
1040+
1041+SB3687 Enrolled- 29 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 29 - LRB103 38108 RTM 68240 b
1042+ SB3687 Enrolled - 29 - LRB103 38108 RTM 68240 b
1043+1 of deposit, share certificates, or other classes of shares
1044+2 issued by the credit union to the financial institution;
1045+3 (13) In the purchase and assumption of assets held by
1046+4 other financial institutions, with approval of the
1047+5 Secretary and subject to any safety and soundness
1048+6 standards, limitations, and qualifications as the
1049+7 Department may establish by rule or guidance from time to
1050+8 time;
1051+9 (14) In the shares, stocks, or obligations of
1052+10 community development financial institutions as defined in
1053+11 regulations issued by the U.S. Department of the Treasury
1054+12 and minority depository institutions as defined by the
1055+13 National Credit Union Administration; however the
1056+14 aggregate amount of all such investments shall not at any
1057+15 time exceed 5% of the paid-in and unimpaired capital and
1058+16 surplus of the credit union; and
1059+17 (15)(A) In shares, stocks, or member units of
1060+18 financial technology companies in the total amount not
1061+19 exceeding 2.5% of the net worth of the credit union, so
1062+20 long as:
1063+21 (i) the credit union would remain well capitalized
1064+22 as defined by 12 CFR 702.102 if the credit union
1065+23 reduced its net worth by the full investment amount at
1066+24 the time the investment is made or at any point during
1067+25 the time the investment is held by the credit union;
1068+26 (ii) the credit union and the financial technology
1069+
1070+
1071+
1072+
1073+
1074+ SB3687 Enrolled - 29 - LRB103 38108 RTM 68240 b
1075+
1076+
1077+SB3687 Enrolled- 30 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 30 - LRB103 38108 RTM 68240 b
1078+ SB3687 Enrolled - 30 - LRB103 38108 RTM 68240 b
1079+1 company are operated in a manner that demonstrates to
1080+2 the public the separate corporate existence of the
1081+3 credit union and financial technology company; and
1082+4 (iii) the credit union has received a composite
1083+5 rating of 1 or 2 under the CAMELS supervisory rating
1084+6 system.
1085+7 (B) The investment limit in subparagraph (A) of this
1086+8 paragraph (15) is increased to 5% of the net worth of the
1087+9 credit union if it has received a management rating of 1
1088+10 under the CAMELS supervisory rating system at the time a
1089+11 specific investment is made and at all times during the
1090+12 term of the investment. A credit union that satisfies the
1091+13 criteria in subparagraph (A) of this paragraph (15) and
1092+14 this subparagraph may request approval from the Secretary
1093+15 for an exception to the 5% limit up to a limit of 10% of
1094+16 the net worth of the credit union, subject to such safety
1095+17 and soundness standards, limitations, and qualifications
1096+18 as the Department may establish by rule or guidance from
1097+19 time to time. The request shall be in writing and
1098+20 substantiate the need for the higher limit, describe the
1099+21 credit union's record of investment activity, and include
1100+22 financial statements reflecting a sound fiscal history.
1101+23 (C) Before investing in a financial technology
1102+24 company, the credit union shall obtain a written legal
1103+25 opinion as to whether the financial technology company is
1104+26 established in a manner that will limit potential exposure
1105+
1106+
1107+
1108+
1109+
1110+ SB3687 Enrolled - 30 - LRB103 38108 RTM 68240 b
1111+
1112+
1113+SB3687 Enrolled- 31 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 31 - LRB103 38108 RTM 68240 b
1114+ SB3687 Enrolled - 31 - LRB103 38108 RTM 68240 b
1115+1 of the credit union to no more than the loss of funds
1116+2 invested in the financial technology company and the legal
1117+3 opinion shall:
1118+4 (i) address factors that have led courts to
1119+5 "pierce the corporate veil", such as inadequate
1120+6 capitalization, lack of separate corporate identity,
1121+7 common boards of directors and employees, control of
1122+8 one entity over another, and lack of separate books
1123+9 and records; and
1124+10 (ii) be provided by independent legal counsel of
1125+11 the credit union.
1126+12 (D) Before investing in the financial technology
1127+13 company, the credit union shall enter into a written
1128+14 investment agreement with the financial technology company
1129+15 and the agreement shall contain the following clauses:
1130+16 (i) the financial technology company will: (I)
1131+17 provide the Department with access to the books and
1132+18 records of the financial technology company relating
1133+19 to the investment made by the credit union, with the
1134+20 costs of examining those records borne by the credit
1135+21 union in accordance with the per diem rate established
1136+22 by the Department by rule; (II) follow generally
1137+23 accepted accounting principles; and (III) provide the
1138+24 credit union with its financial statements on at least
1139+25 a quarterly basis and certified public accountant
1140+26 audited financial statements on an annual basis; and
1141+
1142+
1143+
1144+
1145+
1146+ SB3687 Enrolled - 31 - LRB103 38108 RTM 68240 b
1147+
1148+
1149+SB3687 Enrolled- 32 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 32 - LRB103 38108 RTM 68240 b
1150+ SB3687 Enrolled - 32 - LRB103 38108 RTM 68240 b
1151+1 (ii) the financial technology company and credit
1152+2 union agree to terminate their contractual
1153+3 relationship: (I) upon 90 days' written notice to the
1154+4 parties by the Secretary that the safety and soundness
1155+5 of the credit union is threatened pursuant to the
1156+6 Department's cease and desist and suspension authority
1157+7 in Sections 8 and 61; (II) upon 30 days' written notice
1158+8 to the parties if the credit union's net worth ratio
1159+9 falls below the level that classifies it as well
1160+10 capitalized as defined by 12 CFR 702.102; and (III)
1161+11 immediately upon the parties' receipt of written
1162+12 notice from the Secretary when the Secretary
1163+13 reasonably concludes, based upon specific facts set
1164+14 forth in the notice to the parties, that the credit
1165+15 union will suffer immediate, substantial, and
1166+16 irreparable injury or loss if it remains a party to the
1167+17 investment agreement.
1168+18 (E) The termination of the investment agreement
1169+19 between the financial technology company and credit union
1170+20 shall in no way operate to relieve the financial
1171+21 technology company from repaying the investment or other
1172+22 obligation due and owing the credit union at the time of
1173+23 termination.
1174+24 (F) Any financial technology company in which a credit
1175+25 union invests pursuant to this paragraph (15) that
1176+26 directly or indirectly originates, purchases, facilitates,
1177+
1178+
1179+
1180+
1181+
1182+ SB3687 Enrolled - 32 - LRB103 38108 RTM 68240 b
1183+
1184+
1185+SB3687 Enrolled- 33 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 33 - LRB103 38108 RTM 68240 b
1186+ SB3687 Enrolled - 33 - LRB103 38108 RTM 68240 b
1187+1 brokers, or services loans to consumers in Illinois shall
1188+2 not charge an interest rate that exceeds the applicable
1189+3 maximum rate established by the Board of the National
1190+4 Credit Union Administration pursuant to 12 CFR
1191+5 701.21(c)(7)(iii)-(iv). The maximum interest rate
1192+6 described in this subparagraph that may be charged by a
1193+7 financial technology company applies to all consumer loans
1194+8 and consumer credit products; and .
1195+9 (16) In derivatives transactions, to aid in the credit
1196+10 union's management of interest rate risk. Before entering
1197+11 into a derivatives transaction, and at all times during
1198+12 its management of a derivatives transactions program, a
1199+13 credit union shall satisfy and comply with all the
1200+14 requirements set forth in 12 CFR 703.101 et seq. All
1201+15 definitional terms and operational standards shall have
1202+16 the meanings given to them in 12 CFR 703.101 et seq.,
1203+17 except references to federal credit unions shall be
1204+18 construed to mean Illinois-chartered credit unions, and
1205+19 references to the National Credit Union Administration and
1206+20 Regional Director shall be respectfully construed to mean
1207+21 the Department and the Secretary. A credit union with
1208+22 assets of at least $500 million and a CAMELS management
1209+23 component rating of 1 or 2 need not obtain prior approval
1210+24 from the Department before engaging in derivative
1211+25 transactions
1212+ but shall notify the Secretary in writing or
1213+26 by electronic mail within 5 business days after entering
1214+
1215+
1216+
1217+
1218+
1219+ SB3687 Enrolled - 33 - LRB103 38108 RTM 68240 b
1220+
1221+
1222+SB3687 Enrolled- 34 -LRB103 38108 RTM 68240 b SB3687 Enrolled - 34 - LRB103 38108 RTM 68240 b
1223+ SB3687 Enrolled - 34 - LRB103 38108 RTM 68240 b
1224+1 into its first derivatives transaction.
1225+2 (b) As used in this Section:
1226+3 "Political subdivision" includes, but is not limited to,
1227+4 counties, townships, cities, villages, incorporated towns,
1228+5 school districts, educational service regions, special road
1229+6 districts, public water supply districts, fire protection
1230+7 districts, drainage districts, levee districts, sewer
1231+8 districts, housing authorities, park districts, and any
1232+9 agency, corporation, or instrumentality of a state or its
1233+10 political subdivisions, whether now or hereafter created and
1234+11 whether herein specifically mentioned or not.
1235+12 "Financial institution" includes any bank, savings bank,
1236+13 savings and loan association, or credit union established
1237+14 under the laws of the United States, this State, or any other
1238+15 state.
1239+16 "Financial technology company" includes any corporation,
1240+17 partnership, limited liability company, or other entity
1241+18 organized under the laws of Illinois, another state, or the
1242+19 United States of America:
1243+20 (1) that the principal business of which is the
1244+21 provision of financial products or financial services, or
1245+22 both, that:
1246+23 (i) currently relate or may prospectively relate
1247+24 to the daily operations of credit unions;
1248+25 (ii) are of current or prospective benefit to the
1249+26 members of credit unions; or
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1260+1 (iii) are of current or prospective benefit to
1261+2 consumers eligible for membership in credit unions;
1262+3 and
1263+4 (2) that applies technological interventions,
1264+5 including, without limitation, specialized software or
1265+6 algorithm processes, products, or solutions, to improve
1266+7 and automate the delivery and use of those financial
1267+8 products or financial services.
1268+9 (c) A credit union investing to fund an employee benefit
1269+10 plan obligation is not subject to the investment limitations
1270+11 of this Act and this Section and may purchase an investment
1271+12 that would otherwise be impermissible if the investment is
1272+13 directly related to the credit union's obligation under the
1273+14 employee benefit plan and the credit union holds the
1274+15 investment only for so long as it has an actual or potential
1275+16 obligation under the employee benefit plan.
1276+17 (d) If a credit union acquires loans from another
1277+18 financial institution or financial-type institution pursuant
1278+19 to this Section, the credit union shall be authorized to
1279+20 provide loan servicing and collection services in connection
1280+21 with those loans.
1281+22 (Source: P.A. 102-496, eff. 8-20-21; 102-774, eff. 5-13-22;
1282+23 102-858, eff. 5-13-22; 103-154, eff. 6-30-23.)
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1288+ SB3687 Enrolled - 35 - LRB103 38108 RTM 68240 b