Illinois 2025-2026 Regular Session

Illinois House Bill HB2785 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	HB2785 EngrossedLRB104 07806 BAB 17852 b HB2785 Engrossed LRB104 07806 BAB 17852 b
2		-	HB2785 Engrossed LRB104 07806 BAB 17852 b
	1	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2785 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 205 ILCS 305/10 from Ch. 17, par. 4411205 ILCS 305/29 from Ch. 17, par. 4430205 ILCS 305/34 from Ch. 17, par. 4435205 ILCS 305/63 from Ch. 17, par. 4464 Amends the Illinois Credit Union Act. Authorizes a credit union to furnish information to any person on a list submitted and periodically updated by a member who is an elderly person or person with a disability or to specified other persons, if there is suspicion by the credit union that the member has been or may become a victim of financial exploitation. Provides that the board of directors of a credit union with a composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System known as the CAMELS supervisory rating system and a management rating under such composite rating of either 1 or 2 may meet not less than 4 (instead of 6) times annually. Provides that the supervisory committee of a credit union with assets of less than $10,000,000 may, at its option, engage (instead of a credit union with assets of $5,000,000 or more, but less than $10,000,000 shall engage) a licensed certified public accountant or licensed certified public accounting firm to perform specified auditing and other services. Permits the merger of credit unions, without meeting certain voting and notice requirements, where supervisory concerns exist and upon agreement of the boards of directors of the merging and continuing credit unions, as confirmed by a majority vote of the directors present at a meeting of each board at which a quorum is present. Makes other changes. LRB104 07806 BAB 17852 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2785 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 205 ILCS 305/10 from Ch. 17, par. 4411205 ILCS 305/29 from Ch. 17, par. 4430205 ILCS 305/34 from Ch. 17, par. 4435205 ILCS 305/63 from Ch. 17, par. 4464 205 ILCS 305/10 from Ch. 17, par. 4411 205 ILCS 305/29 from Ch. 17, par. 4430 205 ILCS 305/34 from Ch. 17, par. 4435 205 ILCS 305/63 from Ch. 17, par. 4464 Amends the Illinois Credit Union Act. Authorizes a credit union to furnish information to any person on a list submitted and periodically updated by a member who is an elderly person or person with a disability or to specified other persons, if there is suspicion by the credit union that the member has been or may become a victim of financial exploitation. Provides that the board of directors of a credit union with a composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System known as the CAMELS supervisory rating system and a management rating under such composite rating of either 1 or 2 may meet not less than 4 (instead of 6) times annually. Provides that the supervisory committee of a credit union with assets of less than $10,000,000 may, at its option, engage (instead of a credit union with assets of $5,000,000 or more, but less than $10,000,000 shall engage) a licensed certified public accountant or licensed certified public accounting firm to perform specified auditing and other services. Permits the merger of credit unions, without meeting certain voting and notice requirements, where supervisory concerns exist and upon agreement of the boards of directors of the merging and continuing credit unions, as confirmed by a majority vote of the directors present at a meeting of each board at which a quorum is present. Makes other changes. LRB104 07806 BAB 17852 b LRB104 07806 BAB 17852 b A BILL FOR
	2	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2785 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
	3	+	205 ILCS 305/10 from Ch. 17, par. 4411205 ILCS 305/29 from Ch. 17, par. 4430205 ILCS 305/34 from Ch. 17, par. 4435205 ILCS 305/63 from Ch. 17, par. 4464 205 ILCS 305/10 from Ch. 17, par. 4411 205 ILCS 305/29 from Ch. 17, par. 4430 205 ILCS 305/34 from Ch. 17, par. 4435 205 ILCS 305/63 from Ch. 17, par. 4464
	4	+	205 ILCS 305/10 from Ch. 17, par. 4411
	5	+	205 ILCS 305/29 from Ch. 17, par. 4430
	6	+	205 ILCS 305/34 from Ch. 17, par. 4435
	7	+	205 ILCS 305/63 from Ch. 17, par. 4464
	8	+	Amends the Illinois Credit Union Act. Authorizes a credit union to furnish information to any person on a list submitted and periodically updated by a member who is an elderly person or person with a disability or to specified other persons, if there is suspicion by the credit union that the member has been or may become a victim of financial exploitation. Provides that the board of directors of a credit union with a composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System known as the CAMELS supervisory rating system and a management rating under such composite rating of either 1 or 2 may meet not less than 4 (instead of 6) times annually. Provides that the supervisory committee of a credit union with assets of less than $10,000,000 may, at its option, engage (instead of a credit union with assets of $5,000,000 or more, but less than $10,000,000 shall engage) a licensed certified public accountant or licensed certified public accounting firm to perform specified auditing and other services. Permits the merger of credit unions, without meeting certain voting and notice requirements, where supervisory concerns exist and upon agreement of the boards of directors of the merging and continuing credit unions, as confirmed by a majority vote of the directors present at a meeting of each board at which a quorum is present. Makes other changes.
	9	+	LRB104 07806 BAB 17852 b LRB104 07806 BAB 17852 b
	10	+	LRB104 07806 BAB 17852 b
	11	+	A BILL FOR
	12	+	HB2785LRB104 07806 BAB 17852 b HB2785 LRB104 07806 BAB 17852 b
	13	+	HB2785 LRB104 07806 BAB 17852 b
3	14		1 AN ACT concerning regulation.
4	15		2 Be it enacted by the People of the State of Illinois,
5	16		3 represented in the General Assembly:
6	17		4 Section 5. The Illinois Credit Union Act is amended by
7		-	5 changing Sections 10~~, 19~~, 29, 34, and 63 as follows:
	18	+	5 changing Sections 10, 29, 34, and 63 as follows:
8	19		6 (205 ILCS 305/10) (from Ch. 17, par. 4411)
9	20		7 Sec. 10. Credit union records; member financial records.
10	21		8 (1) A credit union shall establish and maintain books,
11	22		9 records, accounting systems and procedures which accurately
12	23		10 reflect its operations and which enable the Department to
13	24		11 readily ascertain the true financial condition of the credit
14	25		12 union and whether it is complying with this Act.
15	26		13 (2) A photostatic or photographic reproduction of any
16	27		14 credit union records shall be admissible as evidence of
17	28		15 transactions with the credit union.
18	29		16 (3)(a) For the purpose of this Section, the term
19	30		17 "financial records" means any original, any copy, or any
20	31		18 summary of (1) a document granting signature authority over an
21	32		19 account, (2) a statement, ledger card or other record on any
22	33		20 account which shows each transaction in or with respect to
23	34		21 that account, (3) a check, draft or money order drawn on a
24	35		22 financial institution or other entity or issued and payable by
25	36		23 or through a financial institution or other entity, or (4) any
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29		-	HB2785 Engrossed LRB104 07806 BAB 17852 b
	40	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2785 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
	41	+	205 ILCS 305/10 from Ch. 17, par. 4411205 ILCS 305/29 from Ch. 17, par. 4430205 ILCS 305/34 from Ch. 17, par. 4435205 ILCS 305/63 from Ch. 17, par. 4464 205 ILCS 305/10 from Ch. 17, par. 4411 205 ILCS 305/29 from Ch. 17, par. 4430 205 ILCS 305/34 from Ch. 17, par. 4435 205 ILCS 305/63 from Ch. 17, par. 4464
	42	+	205 ILCS 305/10 from Ch. 17, par. 4411
	43	+	205 ILCS 305/29 from Ch. 17, par. 4430
	44	+	205 ILCS 305/34 from Ch. 17, par. 4435
	45	+	205 ILCS 305/63 from Ch. 17, par. 4464
	46	+	Amends the Illinois Credit Union Act. Authorizes a credit union to furnish information to any person on a list submitted and periodically updated by a member who is an elderly person or person with a disability or to specified other persons, if there is suspicion by the credit union that the member has been or may become a victim of financial exploitation. Provides that the board of directors of a credit union with a composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System known as the CAMELS supervisory rating system and a management rating under such composite rating of either 1 or 2 may meet not less than 4 (instead of 6) times annually. Provides that the supervisory committee of a credit union with assets of less than $10,000,000 may, at its option, engage (instead of a credit union with assets of $5,000,000 or more, but less than $10,000,000 shall engage) a licensed certified public accountant or licensed certified public accounting firm to perform specified auditing and other services. Permits the merger of credit unions, without meeting certain voting and notice requirements, where supervisory concerns exist and upon agreement of the boards of directors of the merging and continuing credit unions, as confirmed by a majority vote of the directors present at a meeting of each board at which a quorum is present. Makes other changes.
	47	+	LRB104 07806 BAB 17852 b LRB104 07806 BAB 17852 b
	48	+	LRB104 07806 BAB 17852 b
	49	+	A BILL FOR
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33		-	HB2785 Engrossed - 2 - LRB104 07806 BAB 17852 b
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	55	+	205 ILCS 305/10 from Ch. 17, par. 4411
	56	+	205 ILCS 305/29 from Ch. 17, par. 4430
	57	+	205 ILCS 305/34 from Ch. 17, par. 4435
	58	+	205 ILCS 305/63 from Ch. 17, par. 4464
	59	+
	60	+
	61	+
	62	+	LRB104 07806 BAB 17852 b
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	76	+	HB2785 - 2 - LRB104 07806 BAB 17852 b
34	77		1 other item containing information pertaining to any
35	78		2 relationship established in the ordinary course of business
36	79		3 between a credit union and its member, including financial
37	80		4 statements or other financial information provided by the
38	81		5 member.
39	82		6 (b) This Section does not prohibit:
40	83		7 (1) The preparation, examination, handling or
41	84		8 maintenance of any financial records by any officer,
42	85		9 employee or agent of a credit union having custody of such
43	86		10 records, or the examination of such records by a certified
44	87		11 public accountant engaged by the credit union to perform
45	88		12 an independent audit.
46	89		13 (2) The examination of any financial records by or the
47	90		14 furnishing of financial records by a credit union to any
48	91		15 officer, employee or agent of the Department, the National
49	92		16 Credit Union Administration, Federal Reserve board or any
50	93		17 insurer of share accounts for use solely in the exercise
51	94		18 of his duties as an officer, employee or agent.
52	95		19 (3) The publication of data furnished from financial
53	96		20 records relating to members where the data cannot be
54	97		21 identified to any particular customer of account.
55	98		22 (4) The making of reports or returns required under
56	99		23 Chapter 61 of the Internal Revenue Code of 1954.
57	100		24 (5) Furnishing information concerning the dishonor of
58	101		25 any negotiable instrument permitted to be disclosed under
59	102		26 the Uniform Commercial Code.
60	103
61	104
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64	107
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	112	+	HB2785 - 3 - LRB104 07806 BAB 17852 b
70	113		1 (6) The exchange in the regular course of business of
71	114		2 (i) credit information between a credit union and other
72	115		3 credit unions or financial institutions or commercial
73	116		4 enterprises, directly or through a consumer reporting
74	117		5 agency or (ii) financial records or information derived
75	118		6 from financial records between a credit union and other
76	119		7 credit unions or financial institutions or commercial
77	120		8 enterprises for the purpose of conducting due diligence
78	121		9 pursuant to a merger or a purchase or sale of assets or
79	122		10 liabilities of the credit union.
80	123		11 (7) The furnishing of information to the appropriate
81	124		12 law enforcement authorities where the credit union
82	125		13 reasonably believes it has been the victim of a crime.
83	126		14 (8) The furnishing of information pursuant to the
84	127		15 Revised Uniform Unclaimed Property Act.
85	128		16 (9) The furnishing of information pursuant to the
86	129		17 Illinois Income Tax Act and the Illinois Estate and
87	130		18 Generation-Skipping Transfer Tax Act.
88	131		19 (10) The furnishing of information pursuant to the
89	132		20 federal Currency and Foreign Transactions Reporting Act,
90	133		21 Title 31, United States Code, Section 1051 et sequentia.
91	134		22 (11) The furnishing of information pursuant to any
92	135		23 other statute which by its terms or by regulations
93	136		24 promulgated thereunder requires the disclosure of
94	137		25 financial records other than by subpoena, summons, warrant
95	138		26 or court order.
96	139
97	140
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99	142
100	143
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	144	+	HB2785 - 3 - LRB104 07806 BAB 17852 b
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103	146
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106	149		1 (12) The furnishing of information in accordance with
107	150		2 the federal Personal Responsibility and Work Opportunity
108	151		3 Reconciliation Act of 1996. Any credit union governed by
109	152		4 this Act shall enter into an agreement for data exchanges
110	153		5 with a State agency provided the State agency pays to the
111	154		6 credit union a reasonable fee not to exceed its actual
112	155		7 cost incurred. A credit union providing information in
113	156		8 accordance with this item shall not be liable to any
114	157		9 account holder or other person for any disclosure of
115	158		10 information to a State agency, for encumbering or
116	159		11 surrendering any assets held by the credit union in
117	160		12 response to a lien or order to withhold and deliver issued
118	161		13 by a State agency, or for any other action taken pursuant
119	162		14 to this item, including individual or mechanical errors,
120	163		15 provided the action does not constitute gross negligence
121	164		16 or willful misconduct. A credit union shall have no
122	165		17 obligation to hold, encumber, or surrender assets until it
123	166		18 has been served with a subpoena, summons, warrant, court
124	167		19 or administrative order, lien, or levy.
125	168		20 (13) The furnishing of information to law enforcement
126	169		21 authorities, the Illinois Department on Aging and its
127	170		22 regional administrative and provider agencies, the
128	171		23 Department of Human Services Office of Inspector General,
129	172		24 or public guardians: (i) upon subpoena by the
130	173		25 investigatory entity or the guardian, or (ii) if there is
131	174		26 suspicion by the credit union that a member who is an
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	183	+	HB2785- 5 -LRB104 07806 BAB 17852 b HB2785 - 5 - LRB104 07806 BAB 17852 b
	184	+	HB2785 - 5 - LRB104 07806 BAB 17852 b
142	185		1 elderly person or person with a disability has been or may
143	186		2 become the victim of financial exploitation. For the
144	187		3 purposes of this item (13), the term: (i) "elderly person"
145	188		4 means a person who is 60 or more years of age, (ii) "person
146	189		5 with a disability" means a person who has or reasonably
147	190		6 appears to the credit union to have a physical or mental
148	191		7 disability that impairs his or her ability to seek or
149	192		8 obtain protection from or prevent financial exploitation,
150	193		9 and (iii) "financial exploitation" means tortious or
151	194		10 illegal use of the assets or resources of an elderly
152	195		11 person or person with a disability, and includes, without
153	196		12 limitation, misappropriation of the elderly or disabled
154	197		13 person's assets or resources by undue influence, breach of
155	198		14 fiduciary relationship, intimidation, fraud, deception,
156	199		15 extortion, or the use of assets or resources in any manner
157	200		16 contrary to law. A credit union or person furnishing
158	201		17 information pursuant to this item (13) shall be entitled
159	202		18 to the same rights and protections as a person furnishing
160	203		19 information under the Adult Protective Services Act and
161	204		20 the Illinois Domestic Violence Act of 1986.
162	205		21 (13.5) The furnishing of information to any person on
163	206		22 a list submitted and periodically updated by a member who
164	207		23 is an elderly person or person with a disability, if there
165	208		24 is suspicion by the credit union that the member has been
166	209		25 or may become a victim of financial exploitation. For
167	210		26 purposes of this item (13.5), the terms "elderly person",
168	211
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178	221		1 "person with a disability", and "financial exploitation"
179	222		2 have the meanings given to those terms in item (13). The
180	223		3 credit union may convey the suspicion to any of the
181	224		4 following persons, if the person is not the suspected
182	225		5 perpetrator: (i) any person on the list; (ii) any
183	226		6 co-owner, additional authorized signatory, or beneficiary
184	227		7 on the account of the member; or (iii) any person known by
185	228		8 the credit union to be a family member, including a
186	229		9 parent, spouse, adult child, or sibling. When providing
187		-	10 information under this item (13.5), the credit union ~~shall~~
	230	+	10 information under this item (13.5), the credit union may
188	231		11 limit the information and only disclose that the credit
189	232		12 union has cause to suspect that the member may be a victim
190		-	13 or target of financial exploitation ~~and the basis or bases~~
191		-	14 ~~of the credit union's reasonable suspicion,~~ ~~without~~
192		-	15 ~~disclosing any other details or confidential information~~
193		-	16 ~~regarding the financial affairs of~~ the member~~. Any~~
194		-	17 ~~disclosure made pursuant to this subsection shall comply~~
195		-	18 ~~with all other privacy laws and legal prohibitions,~~
196		-	19 ~~including confidentiality requirements for suspicious~~
197		-	20 ~~activity reports.~~ ~~The credit union may rely on information~~
198		-	21 ~~provided by the member in compiling the list of contact~~
199		-	22 ~~persons. The credit union and any employee~~ of the ~~credit~~
200		-	23 ~~union acting in good faith is immune from all criminal,~~
201		-	24 ~~civil, and administrative liability for contacting a~~
202		-	25 ~~person~~ or ~~electing not to contact a person under this item~~
203		-	26 ~~(13.5) and for actions taken~~ in ~~furtherance of that~~
	233	+	13 or target of financial exploitation, without disclosing
	234	+	14 any other details or confidential information regarding
	235	+	15 the financial affairs of the member. The credit union may
	236	+	16 rely on information provided by the member in compiling
	237	+	17 the list of contact persons. The credit union and any
	238	+	18 employee of the credit union acting in good faith is
	239	+	19 immune from all criminal, civil, and administrative
	240	+	20 liability for contacting a person or electing not to
	241	+	21 contact a person under this item (13.5) and for actions
	242	+	22 taken in furtherance of that determination, if the
	243	+	23 determination was made based on a reasonable suspicion.
	244	+	24 (14) The disclosure of financial records or
	245	+	25 information as necessary to effect, administer, or enforce
	246	+	26 a transaction requested or authorized by the member, or in
204	247
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214		-	1 ~~determination, if the determination was made based on a~~
215		-	2 ~~reasonable suspicion.~~
216		-	3 ~~(14)~~ The ~~disclosure of financial records or~~
217		-	4 ~~information as necessary to effect, administer,~~ or ~~enforce~~
218		-	5 ~~a transaction requested or authorized by~~ the ~~member,~~ or in
219		-	6 ~~connection with:~~
220		-	7 (A) servicing ~~or processing a financial product or~~
221		-	8 ~~service requested or authorized by the~~ member;
222		-	9 (B) ~~maintaining or servicing a member's account~~
223		-	10 ~~with~~ the ~~credit union;~~ or
224		-	11 ~~(C) a proposed or actual securitization or~~
225		-	12 ~~secondary market sale (including sales~~ of ~~servicing~~
226		-	13 ~~rights) related~~ to ~~a transaction of a member.~~
227		-	14 ~~Nothing in this item (14)~~, ~~however~~, ~~authorizes the~~
228		-	15 ~~sale of the financial records~~ or ~~information of a member~~
229		-	16 ~~without~~ the ~~consent~~ of ~~the member.~~
230		-	17 ~~(15) The disclosure of financial records or~~
231		-	18 ~~information as necessary to protect against or prevent~~
232		-	19 ~~actual or potential fraud,~~ ~~unauthorized transactions,~~
233		-	20 ~~claims~~, ~~or other liability.~~
234		-	21 ~~(16)(a) The disclosure of financial records or~~
235		-	22 information ~~related to a private label credit program~~
236		-	23 ~~between a financial institution and a private label party~~
237		-	24 ~~in connection with that~~ private label ~~credit program. Such~~
238		-	25 ~~information is limited to outstanding balance,~~ ~~available~~
239		-	26 ~~credit, payment~~ and ~~performance and account history,~~
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	257	+	1 connection with:
	258	+	2 (A) servicing or processing a financial product or
	259	+	3 service requested or authorized by the member;
	260	+	4 (B) maintaining or servicing a member's account
	261	+	5 with the credit union; or
	262	+	6 (C) a proposed or actual securitization or
	263	+	7 secondary market sale (including sales of servicing
	264	+	8 rights) related to a transaction of a member.
	265	+	9 Nothing in this item (14), however, authorizes the
	266	+	10 sale of the financial records or information of a member
	267	+	11 without the consent of the member.
	268	+	12 (15) The disclosure of financial records or
	269	+	13 information as necessary to protect against or prevent
	270	+	14 actual or potential fraud, unauthorized transactions,
	271	+	15 claims, or other liability.
	272	+	16 (16)(a) The disclosure of financial records or
	273	+	17 information related to a private label credit program
	274	+	18 between a financial institution and a private label party
	275	+	19 in connection with that private label credit program. Such
	276	+	20 information is limited to outstanding balance, available
	277	+	21 credit, payment and performance and account history,
	278	+	22 product references, purchase information, and information
	279	+	23 related to the identity of the customer.
	280	+	24 (b)(1) For purposes of this item (16), "private label
	281	+	25 credit program" means a credit program involving a
	282	+	26 financial institution and a private label party that is
240	283
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250		-	1 ~~product references,~~ ~~purchase information,~~ and ~~information~~
251		-	2 ~~related to the identity of the customer.~~
252		-	3 ~~(b)(1) For purposes of this item (16)~~, "private ~~label~~
253		-	4 ~~credit program" means a credit program involving a~~
254		-	5 ~~financial institution and a~~ private label ~~party that is~~
255		-	6 ~~used by~~ a ~~customer of the financial institution and the~~
256		-	7 ~~private label party primarily for payment for goods or~~
257		-	8 ~~services sold~~, ~~manufactured~~, or ~~distributed by a private~~
258		-	9 ~~label party~~.
259		-	10 (2) ~~For purposes~~ of ~~this item (16), "private label~~
260		-	11 ~~party" means, with respect~~ to ~~a private label credit~~
261		-	12 ~~program, any~~ of the ~~following: a retailer, a merchant, a~~
262		-	13 ~~manufacturer, a trade group, or any such person~~'s
263		-	14 ~~affiliate~~, ~~subsidiary, member, agent, or service provider.~~
264		-	15 ~~(17)(a)~~ The ~~furnishing of financial records of a~~
265		-	16 ~~member to~~ the ~~Department to aid the Department's initial~~
266		-	17 ~~determination or subsequent re-determination of~~ the
267		-	18 ~~member's eligibility for Medicaid and Medicaid long-term~~
268		-	19 ~~care benefits for long-term care services, provided~~ that
269		-	20 ~~the credit union receives the written consent~~ and
270		-	21 ~~authorization of~~ the ~~member, which shall:~~
271		-	22 ~~(1) have the member's signature notarized;~~
272		-	23 ~~(2) be signed by at least one witness who~~
273		-	24 ~~certifies that he or she believes~~ the ~~member to be~~ of
274		-	25 ~~sound mind~~ and ~~memory;~~
275		-	26 (3) be ~~tendered to~~ the ~~credit union at the~~
	291	+	HB2785- 8 -LRB104 07806 BAB 17852 b HB2785 - 8 - LRB104 07806 BAB 17852 b
	292	+	HB2785 - 8 - LRB104 07806 BAB 17852 b
	293	+	1 used by a customer of the financial institution and the
	294	+	2 private label party primarily for payment for goods or
	295	+	3 services sold, manufactured, or distributed by a private
	296	+	4 label party.
	297	+	5 (2) For purposes of this item (16), "private label
	298	+	6 party" means, with respect to a private label credit
	299	+	7 program, any of the following: a retailer, a merchant, a
	300	+	8 manufacturer, a trade group, or any such person's
	301	+	9 affiliate, subsidiary, member, agent, or service provider.
	302	+	10 (17)(a) The furnishing of financial records of a
	303	+	11 member to the Department to aid the Department's initial
	304	+	12 determination or subsequent re-determination of the
	305	+	13 member's eligibility for Medicaid and Medicaid long-term
	306	+	14 care benefits for long-term care services, provided that
	307	+	15 the credit union receives the written consent and
	308	+	16 authorization of the member, which shall:
	309	+	17 (1) have the member's signature notarized;
	310	+	18 (2) be signed by at least one witness who
	311	+	19 certifies that he or she believes the member to be of
	312	+	20 sound mind and memory;
	313	+	21 (3) be tendered to the credit union at the
	314	+	22 earliest practicable time following its execution,
	315	+	23 certification, and notarization;
	316	+	24 (4) specifically limit the disclosure of the
	317	+	25 member's financial records to the Department; and
	318	+	26 (5) be in substantially the following form:
276	319
277	320
278	321
279	322
280	323
281		-	HB2785 ~~Engrossed~~ - 8 - LRB104 07806 BAB 17852 b
	324	+	HB2785 - 8 - LRB104 07806 BAB 17852 b
282	325
283	326
284		-	HB2785 Engrossed- 9 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 9 - LRB104 07806 BAB 17852 b
285		-	HB2785 Engrossed - 9 - LRB104 07806 BAB 17852 b
286		-	1 earliest practicable time following its execution,
287		-	2 certification, and notarization;
288		-	3 (4) specifically limit the disclosure of the
289		-	4 member's financial records to the Department; and
290		-	5 (5) be in substantially the following form:
291		-	6 CUSTOMER CONSENT AND AUTHORIZATION
292		-	7 FOR RELEASE OF FINANCIAL RECORDS
293		-	8 I, ......................................., hereby authorize
294		-	9 (Name of Customer)
295		-	10 .............................................................
296		-	11 (Name of Financial Institution)
297		-	12 .............................................................
298		-	13 (Address of Financial Institution)
299		-	14 to disclose the following financial records:
300		-	15 any and all information concerning my deposit, savings, money
301		-	16 market, certificate of deposit, individual retirement,
302		-	17 retirement plan, 401(k) plan, incentive plan, employee benefit
303		-	18 plan, mutual fund and loan accounts (including, but not
304		-	19 limited to, any indebtedness or obligation for which I am a
305		-	20 co-borrower, co-obligor, guarantor, or surety), and any and
	327	+	HB2785- 9 -LRB104 07806 BAB 17852 b HB2785 - 9 - LRB104 07806 BAB 17852 b
	328	+	HB2785 - 9 - LRB104 07806 BAB 17852 b
	329	+	1 CUSTOMER CONSENT AND AUTHORIZATION
	330	+	2 FOR RELEASE OF FINANCIAL RECORDS
	331	+	3 I, ......................................., hereby authorize
	332	+	4 (Name of Customer)
	333	+	5 .............................................................
	334	+	6 (Name of Financial Institution)
	335	+	7 .............................................................
	336	+	8 (Address of Financial Institution)
	337	+	9 to disclose the following financial records:
	338	+	10 any and all information concerning my deposit, savings, money
	339	+	11 market, certificate of deposit, individual retirement,
	340	+	12 retirement plan, 401(k) plan, incentive plan, employee benefit
	341	+	13 plan, mutual fund and loan accounts (including, but not
	342	+	14 limited to, any indebtedness or obligation for which I am a
	343	+	15 co-borrower, co-obligor, guarantor, or surety), and any and
	344	+	16 all other accounts in which I have an interest and any other
	345	+	17 information regarding me in the possession of the Financial
	346	+	18 Institution,
	347	+	19 to the Illinois Department of Human Services or the Illinois
306	348
307	349
308	350
309	351
310	352
311		-	HB2785 ~~Engrossed~~ - 9 - LRB104 07806 BAB 17852 b
	353	+	HB2785 - 9 - LRB104 07806 BAB 17852 b
312	354
313	355
314		-	HB2785 Engrossed- 10 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 10 - LRB104 07806 BAB 17852 b
315		-	HB2785 Engrossed - 10 - LRB104 07806 BAB 17852 b
316		-	1 all other accounts in which I have an interest and any other
317		-	2 information regarding me in the possession of the Financial
318		-	3 Institution,
319		-	4 to the Illinois Department of Human Services or the Illinois
320		-	5 Department of Healthcare and Family Services, or both ("the
321		-	6 Department"), for the following purpose(s):
322		-	7 to aid in the initial determination or re-determination by the
323		-	8 State of Illinois of my eligibility for Medicaid long-term
324		-	9 care benefits, pursuant to applicable law.
325		-	10 I understand that this Consent and Authorization may be
326		-	11 revoked by me in writing at any time before my financial
327		-	12 records, as described above, are disclosed, and that this
328		-	13 Consent and Authorization is valid until the Financial
329		-	14 Institution receives my written revocation. This Consent and
330		-	15 Authorization shall constitute valid authorization for the
331		-	16 Department identified above to inspect all such financial
332		-	17 records set forth above, and to request and receive copies of
333		-	18 such financial records from the Financial Institution (subject
334		-	19 to such records search and reproduction reimbursement policies
335		-	20 as the Financial Institution may have in place). An executed
336		-	21 copy of this Consent and Authorization shall be sufficient and
337		-	22 as good as the original and permission is hereby granted to
338		-	23 honor a photostatic or electronic copy of this Consent and
	356	+	HB2785- 10 -LRB104 07806 BAB 17852 b HB2785 - 10 - LRB104 07806 BAB 17852 b
	357	+	HB2785 - 10 - LRB104 07806 BAB 17852 b
	358	+	1 Department of Healthcare and Family Services, or both ("the
	359	+	2 Department"), for the following purpose(s):
	360	+	3 to aid in the initial determination or re-determination by the
	361	+	4 State of Illinois of my eligibility for Medicaid long-term
	362	+	5 care benefits, pursuant to applicable law.
	363	+	6 I understand that this Consent and Authorization may be
	364	+	7 revoked by me in writing at any time before my financial
	365	+	8 records, as described above, are disclosed, and that this
	366	+	9 Consent and Authorization is valid until the Financial
	367	+	10 Institution receives my written revocation. This Consent and
	368	+	11 Authorization shall constitute valid authorization for the
	369	+	12 Department identified above to inspect all such financial
	370	+	13 records set forth above, and to request and receive copies of
	371	+	14 such financial records from the Financial Institution (subject
	372	+	15 to such records search and reproduction reimbursement policies
	373	+	16 as the Financial Institution may have in place). An executed
	374	+	17 copy of this Consent and Authorization shall be sufficient and
	375	+	18 as good as the original and permission is hereby granted to
	376	+	19 honor a photostatic or electronic copy of this Consent and
	377	+	20 Authorization. Disclosure is strictly limited to the
	378	+	21 Department identified above and no other person or entity
	379	+	22 shall receive my financial records pursuant to this Consent
	380	+	23 and Authorization. By signing this form, I agree to indemnify
	381	+	24 and hold the Financial Institution harmless from any and all
339	382
340	383
341	384
342	385
343	386
344		-	HB2785 ~~Engrossed~~ - 10 - LRB104 07806 BAB 17852 b
	387	+	HB2785 - 10 - LRB104 07806 BAB 17852 b
345	388
346	389
347		-	HB2785 ~~Engrossed~~- 11 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 11 - LRB104 07806 BAB 17852 b
348		-	HB2785 ~~Engrossed~~ - 11 - LRB104 07806 BAB 17852 b
349		-	1 ~~Authorization. Disclosure is strictly limited to the~~
350		-	2 ~~Department identified above~~ and ~~no other person~~ or ~~entity~~
351		-	3 ~~shall receive my financial records pursuant to~~ this Consent
352		-	4 ~~and Authorization.~~ ~~By signing this form,~~ ~~I agree to indemnify~~
353		-	5 ~~and hold the Financial Institution harmless from any and all~~
354		-	6 ~~claims, demands, and losses, including reasonable attorneys~~
355		-	7 ~~fees and expenses,~~ ~~arising from or incurred in its reliance on~~
356		-	8 ~~this Consent and Authorization~~. ~~As used herein, "Customer"~~
357		-	9 ~~shall mean "Member" if the Financial Institution is a credit~~
358		-	10 ~~union.~~
359		-	11 ......................~~. ......................~~
360		-	12 (Date) ~~(Signature of Customer)~~
361		-	13 ~~......................~~
362		-	14 .................~~.....~~
363		-	15 ~~(Address of Customer)~~
364		-	16 ~~......................~~
365		-	17 ~~(Customer's birth date)~~
366		-	18 ~~(month/day/year)~~
367		-	19 The ~~undersigned witness certifies that~~ .~~................,~~
368		-	20 ~~known to me~~ to be the ~~same person whose name is subscribed as~~
369		-	21 ~~the customer to~~ the ~~foregoing Consent and Authorization,~~
370		-	22 ~~appeared before me and the notary public and acknowledged~~
	390	+	HB2785- 11 -LRB104 07806 BAB 17852 b HB2785 - 11 - LRB104 07806 BAB 17852 b
	391	+	HB2785 - 11 - LRB104 07806 BAB 17852 b
	392	+	1 claims, demands, and losses, including reasonable attorneys
	393	+	2 fees and expenses, arising from or incurred in its reliance on
	394	+	3 this Consent and Authorization. As used herein, "Customer"
	395	+	4 shall mean "Member" if the Financial Institution is a credit
	396	+	5 union.
	397	+	6 ....................... ......................
	398	+	7 (Date) (Signature of Customer)
	399	+	8 ......................
	400	+	9 ......................
	401	+	10 (Address of Customer)
	402	+	11 ......................
	403	+	12 (Customer's birth date)
	404	+	13 (month/day/year)
	405	+	14 The undersigned witness certifies that .................,
	406	+	15 known to me to be the same person whose name is subscribed as
	407	+	16 the customer to the foregoing Consent and Authorization,
	408	+	17 appeared before me and the notary public and acknowledged
	409	+	18 signing and delivering the instrument as his or her free and
	410	+	19 voluntary act for the uses and purposes therein set forth. I
	411	+	20 believe him or her to be of sound mind and memory. The
	412	+	21 undersigned witness also certifies that the witness is not an
	413	+	22 owner, operator, or relative of an owner or operator of a
371	414
372	415
373	416
374	417
375	418
376		-	HB2785 ~~Engrossed~~ - 11 - LRB104 07806 BAB 17852 b
	419	+	HB2785 - 11 - LRB104 07806 BAB 17852 b
377	420
378	421
379		-	HB2785 Engrossed- 12 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 12 - LRB104 07806 BAB 17852 b
380		-	HB2785 Engrossed - 12 - LRB104 07806 BAB 17852 b
381		-	1 signing and delivering the instrument as his or her free and
382		-	2 voluntary act for the uses and purposes therein set forth. I
383		-	3 believe him or her to be of sound mind and memory. The
384		-	4 undersigned witness also certifies that the witness is not an
385		-	5 owner, operator, or relative of an owner or operator of a
386		-	6 long-term care facility in which the customer is a patient or
387		-	7 resident.
388		-	8 Dated: ................. ......................
389		-	9 (Signature of Witness)
390		-	10 ......................
391		-	11 (Print Name of Witness)
392		-	12 ......................
393		-	13 ......................
394		-	14 (Address of Witness)
395		-	15 State of Illinois)
396		-	16 ) ss.
397		-	17 County of .......)
398		-	18 The undersigned, a notary public in and for the above county
399		-	19 and state, certifies that .........., known to me to be the
400		-	20 same person whose name is subscribed as the customer to the
401		-	21 foregoing Consent and Authorization, appeared before me
	422	+	HB2785- 12 -LRB104 07806 BAB 17852 b HB2785 - 12 - LRB104 07806 BAB 17852 b
	423	+	HB2785 - 12 - LRB104 07806 BAB 17852 b
	424	+	1 long-term care facility in which the customer is a patient or
	425	+	2 resident.
	426	+	3 Dated: ................. ......................
	427	+	4 (Signature of Witness)
	428	+	5 ......................
	429	+	6 (Print Name of Witness)
	430	+	7 ......................
	431	+	8 ......................
	432	+	9 (Address of Witness)
	433	+	10 State of Illinois)
	434	+	11 ) ss.
	435	+	12 County of .......)
	436	+	13 The undersigned, a notary public in and for the above county
	437	+	14 and state, certifies that .........., known to me to be the
	438	+	15 same person whose name is subscribed as the customer to the
	439	+	16 foregoing Consent and Authorization, appeared before me
	440	+	17 together with the witness, .........., in person and
	441	+	18 acknowledged signing and delivering the instrument as the free
	442	+	19 and voluntary act of the customer for the uses and purposes
	443	+	20 therein set forth.
402	444
403	445
404	446
405	447
406	448
407		-	HB2785 ~~Engrossed~~ - 12 - LRB104 07806 BAB 17852 b
	449	+	HB2785 - 12 - LRB104 07806 BAB 17852 b
408	450
409	451
410		-	HB2785 Engrossed- 13 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 13 - LRB104 07806 BAB 17852 b
411		-	HB2785 Engrossed - 13 - LRB104 07806 BAB 17852 b
412		-	1 together with the witness, .........., in person and
413		-	2 acknowledged signing and delivering the instrument as the free
414		-	3 and voluntary act of the customer for the uses and purposes
415		-	4 therein set forth.
416		-	5 Dated:.......................................................
417		-	6 Notary Public:...............................................
418		-	7 My commission expires:.......................................
419		-	8 (b) In no event shall the credit union distribute the
420		-	9 member's financial records to the long-term care facility
421		-	10 from which the member seeks initial or continuing
422		-	11 residency or long-term care services.
423		-	12 (c) A credit union providing financial records of a
424		-	13 member in good faith relying on a consent and
425		-	14 authorization executed and tendered in accordance with
426		-	15 this item (17) shall not be liable to the member or any
427		-	16 other person in relation to the credit union's disclosure
428		-	17 of the member's financial records to the Department. The
429		-	18 member signing the consent and authorization shall
430		-	19 indemnify and hold the credit union harmless that relies
431		-	20 in good faith upon the consent and authorization and
432		-	21 incurs a loss because of such reliance. The credit union
433		-	22 recovering under this indemnification provision shall also
434		-	23 be entitled to reasonable attorney's fees and the expenses
435		-	24 of recovery.
	452	+	HB2785- 13 -LRB104 07806 BAB 17852 b HB2785 - 13 - LRB104 07806 BAB 17852 b
	453	+	HB2785 - 13 - LRB104 07806 BAB 17852 b
	454	+	1 Dated:.......................................................
	455	+	2 Notary Public:...............................................
	456	+	3 My commission expires:.......................................
	457	+	4 (b) In no event shall the credit union distribute the
	458	+	5 member's financial records to the long-term care facility
	459	+	6 from which the member seeks initial or continuing
	460	+	7 residency or long-term care services.
	461	+	8 (c) A credit union providing financial records of a
	462	+	9 member in good faith relying on a consent and
	463	+	10 authorization executed and tendered in accordance with
	464	+	11 this item (17) shall not be liable to the member or any
	465	+	12 other person in relation to the credit union's disclosure
	466	+	13 of the member's financial records to the Department. The
	467	+	14 member signing the consent and authorization shall
	468	+	15 indemnify and hold the credit union harmless that relies
	469	+	16 in good faith upon the consent and authorization and
	470	+	17 incurs a loss because of such reliance. The credit union
	471	+	18 recovering under this indemnification provision shall also
	472	+	19 be entitled to reasonable attorney's fees and the expenses
	473	+	20 of recovery.
	474	+	21 (d) A credit union shall be reimbursed by the member
	475	+	22 for all costs reasonably necessary and directly incurred
	476	+	23 in searching for, reproducing, and disclosing a member's
	477	+	24 financial records required or requested to be produced
	478	+	25 pursuant to any consent and authorization executed under
436	479
437	480
438	481
439	482
440	483
441		-	HB2785 ~~Engrossed~~ - 13 - LRB104 07806 BAB 17852 b
	484	+	HB2785 - 13 - LRB104 07806 BAB 17852 b
442	485
443	486
444		-	HB2785 ~~Engrossed~~- 14 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 14 - LRB104 07806 BAB 17852 b
445		-	HB2785 ~~Engrossed~~ - 14 - LRB104 07806 BAB 17852 b
446		-	1 (d) ~~A credit union~~ shall be ~~reimbursed by the member~~
447		-	2 ~~for all costs reasonably necessary and directly incurred~~
448		-	3 ~~in searching for,~~ ~~reproducing,~~ and ~~disclosing a member's~~
449		-	4 ~~financial records required or~~ requested ~~to be produced~~
450		-	5 ~~pursuant to any consent and authorization executed under~~
451		-	6 ~~this item (17).~~ The ~~requested financial records shall be~~
452		-	7 ~~delivered to~~ the ~~Department within 10 days after receiving~~
453		-	8 a properly ~~executed consent and authorization or at the~~
454		-	9 ~~earliest practicable time thereafter if the requested~~
455		-	10 ~~records cannot be delivered within 10 days~~, ~~but delivery~~
456		-	11 ~~may be delayed until~~ the ~~final reimbursement~~ of ~~all costs~~
457		-	12 ~~is received by the credit union.~~ ~~The credit union may~~
458		-	13 ~~honor a photostatic~~ or ~~electronic copy of a properly~~
459		-	14 ~~executed consent and authorization.~~
460		-	15 ~~(e) Nothing in this item (17) shall impair, abridge,~~
461		-	16 ~~or abrogate the right of a member to:~~
462		-	17 ~~(1) directly disclose his or her financial records~~
463		-	18 ~~to the~~ Department ~~or any other person; or~~
464		-	19 ~~(2) authorize his or her attorney or duly~~
465		-	20 ~~appointed agent to request~~ and ~~obtain the member's~~
466		-	21 ~~financial records and disclose those financial records~~
467		-	22 to the ~~Department.~~
468		-	23 ~~(f) For purposes of this item (17)~~, ~~"Department" means~~
469		-	24 ~~the Department~~ of ~~Human Services and~~ the ~~Department of~~
470		-	25 ~~Healthcare and Family Services or any successor~~
471		-	26 ~~administrative agency~~ of ~~either agency.~~
	487	+	HB2785- 14 -LRB104 07806 BAB 17852 b HB2785 - 14 - LRB104 07806 BAB 17852 b
	488	+	HB2785 - 14 - LRB104 07806 BAB 17852 b
	489	+	1 this item (17). The requested financial records shall be
	490	+	2 delivered to the Department within 10 days after receiving
	491	+	3 a properly executed consent and authorization or at the
	492	+	4 earliest practicable time thereafter if the requested
	493	+	5 records cannot be delivered within 10 days, but delivery
	494	+	6 may be delayed until the final reimbursement of all costs
	495	+	7 is received by the credit union. The credit union may
	496	+	8 honor a photostatic or electronic copy of a properly
	497	+	9 executed consent and authorization.
	498	+	10 (e) Nothing in this item (17) shall impair, abridge,
	499	+	11 or abrogate the right of a member to:
	500	+	12 (1) directly disclose his or her financial records
	501	+	13 to the Department or any other person; or
	502	+	14 (2) authorize his or her attorney or duly
	503	+	15 appointed agent to request and obtain the member's
	504	+	16 financial records and disclose those financial records
	505	+	17 to the Department.
	506	+	18 (f) For purposes of this item (17), "Department" means
	507	+	19 the Department of Human Services and the Department of
	508	+	20 Healthcare and Family Services or any successor
	509	+	21 administrative agency of either agency.
	510	+	22 (18) The furnishing of the financial records of a
	511	+	23 member to an appropriate law enforcement authority,
	512	+	24 without prior notice to or consent of the member, upon
	513	+	25 written request of the law enforcement authority, when
	514	+	26 reasonable suspicion of an imminent threat to the personal
472	515
473	516
474	517
475	518
476	519
477		-	HB2785 ~~Engrossed~~ - 14 - LRB104 07806 BAB 17852 b
	520	+	HB2785 - 14 - LRB104 07806 BAB 17852 b
478	521
479	522
480		-	HB2785 ~~Engrossed~~- 15 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 15 - LRB104 07806 BAB 17852 b
481		-	HB2785 ~~Engrossed~~ - 15 - LRB104 07806 BAB 17852 b
482		-	1 ~~(18) The furnishing~~ of the ~~financial records of a~~
483		-	2 ~~member to~~ an ~~appropriate law enforcement authority~~,
484		-	3 ~~without prior notice to or consent of~~ the ~~member, upon~~
485		-	4 ~~written request of the law~~ enforcement authority~~, when~~
486		-	5 ~~reasonable suspicion of an~~ imminent threat to the ~~personal~~
487		-	6 ~~security and safety of~~ the ~~member exists that necessitates~~
488		-	7 ~~an expedited release of the member's financial records,~~ as
489		-	8 ~~determined by~~ the law enforcement authority. The ~~law~~
490		-	9 ~~enforcement authority shall include~~ a ~~brief explanation of~~
491		-	10 ~~the imminent threat to the member in its written request~~
492		-	11 to the credit union. ~~The written request shall reflect~~
493		-	12 ~~that it has been authorized by a supervisory or managerial~~
494		-	13 ~~official of~~ the ~~law enforcement authority.~~ ~~The decision to~~
495		-	14 ~~furnish~~ the ~~financial records of a member~~ to a law
496		-	15 ~~enforcement~~ authority ~~shall be made by a supervisory or~~
497		-	16 ~~managerial official of the credit union.~~ A credit ~~union~~
498		-	17 ~~providing information in accordance with this item (18)~~
499		-	18 ~~shall not be liable to the member or~~ any ~~other person for~~
500		-	19 ~~the disclosure~~ of the ~~information to the law enforcement~~
501		-	20 ~~authority.~~
502		-	21 ~~(c) Except as otherwise provided by this Act, a credit~~
503		-	22 ~~union may not disclose to any person, except to~~ the ~~member or~~
504		-	23 ~~his duly authorized agent~~, ~~any financial records relating~~ to
505		-	24 that ~~member of~~ the ~~credit union unless:~~
506		-	25 (1) ~~the member has authorized disclosure to the~~
507		-	26 ~~person;~~
	523	+	HB2785- 15 -LRB104 07806 BAB 17852 b HB2785 - 15 - LRB104 07806 BAB 17852 b
	524	+	HB2785 - 15 - LRB104 07806 BAB 17852 b
	525	+	1 security and safety of the member exists that necessitates
	526	+	2 an expedited release of the member's financial records, as
	527	+	3 determined by the law enforcement authority. The law
	528	+	4 enforcement authority shall include a brief explanation of
	529	+	5 the imminent threat to the member in its written request
	530	+	6 to the credit union. The written request shall reflect
	531	+	7 that it has been authorized by a supervisory or managerial
	532	+	8 official of the law enforcement authority. The decision to
	533	+	9 furnish the financial records of a member to a law
	534	+	10 enforcement authority shall be made by a supervisory or
	535	+	11 managerial official of the credit union. A credit union
	536	+	12 providing information in accordance with this item (18)
	537	+	13 shall not be liable to the member or any other person for
	538	+	14 the disclosure of the information to the law enforcement
	539	+	15 authority.
	540	+	16 (c) Except as otherwise provided by this Act, a credit
	541	+	17 union may not disclose to any person, except to the member or
	542	+	18 his duly authorized agent, any financial records relating to
	543	+	19 that member of the credit union unless:
	544	+	20 (1) the member has authorized disclosure to the
	545	+	21 person;
	546	+	22 (2) the financial records are disclosed in response to
	547	+	23 a lawful subpoena, summons, warrant, citation to discover
	548	+	24 assets, or court order that meets the requirements of
	549	+	25 subparagraph (3)(d) of this Section; or
	550	+	26 (3) the credit union is attempting to collect an
508	551
509	552
510	553
511	554
512	555
513		-	HB2785 ~~Engrossed~~ - 15 - LRB104 07806 BAB 17852 b
	556	+	HB2785 - 15 - LRB104 07806 BAB 17852 b
514	557
515	558
516		-	HB2785 ~~Engrossed~~- 16 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 16 - LRB104 07806 BAB 17852 b
517		-	HB2785 ~~Engrossed~~ - 16 - LRB104 07806 BAB 17852 b
518		-	1 ~~(2)~~ the ~~financial records are disclosed in response to~~
519		-	2 ~~a lawful subpoena,~~ ~~summons, warrant,~~ ~~citation to discover~~
520		-	3 ~~assets, or court order that meets the requirements of~~
521		-	4 ~~subparagraph (3)~~(d) ~~of this Section;~~ or
522		-	5 (3) ~~the credit union is attempting~~ to ~~collect an~~
523		-	6 ~~obligation owed~~ to ~~the credit union and the credit union~~
524		-	7 ~~complies with~~ the ~~provisions of Section 2I~~ of the ~~Consumer~~
525		-	8 ~~Fraud and Deceptive Business Practices Act.~~
526		-	9 ~~(d) A~~ credit ~~union shall disclose financial records under~~
527		-	10 ~~item (3)(c)(2) of this Section pursuant to a lawful subpoena,~~
528		-	11 ~~summons~~, ~~warrant~~, ~~citation to discover assets,~~ ~~or court order~~
529		-	12 ~~only after the credit union sends~~ a ~~copy of the subpoena,~~
530		-	13 ~~summons, warrant, citation to discover assets,~~ or ~~court order~~
531		-	14 ~~to the person establishing the relationship with the credit~~
532		-	15 union, if ~~living, and otherwise~~ the person~~'s personal~~
533		-	16 ~~representative, if known, at~~ the ~~person's last known address~~
534		-	17 ~~by first class mail~~, ~~postage prepaid,~~ ~~through a third-party~~
535		-	18 ~~commercial carrier or courier~~ with ~~delivery charge fully~~
536		-	19 ~~prepaid~~, ~~by hand delivery,~~ ~~or by electronic delivery at an~~
537		-	20 ~~email address on file with~~ the ~~credit union (if the person~~
538		-	21 ~~establishing the relationship with~~ the credit union ~~has~~
539		-	22 ~~consented to receive electronic delivery and, if~~ the person
540		-	23 ~~establishing~~ the ~~relationship with the credit union is~~ a
541		-	24 ~~consumer~~, ~~the person has consented under the consumer consent~~
542		-	25 ~~provisions set forth in Section 7001 of Title 15 of~~ the ~~United~~
543		-	26 ~~States Code), unless~~ the ~~credit union is specifically~~
	559	+	HB2785- 16 -LRB104 07806 BAB 17852 b HB2785 - 16 - LRB104 07806 BAB 17852 b
	560	+	HB2785 - 16 - LRB104 07806 BAB 17852 b
	561	+	1 obligation owed to the credit union and the credit union
	562	+	2 complies with the provisions of Section 2I of the Consumer
	563	+	3 Fraud and Deceptive Business Practices Act.
	564	+	4 (d) A credit union shall disclose financial records under
	565	+	5 item (3)(c)(2) of this Section pursuant to a lawful subpoena,
	566	+	6 summons, warrant, citation to discover assets, or court order
	567	+	7 only after the credit union sends a copy of the subpoena,
	568	+	8 summons, warrant, citation to discover assets, or court order
	569	+	9 to the person establishing the relationship with the credit
	570	+	10 union, if living, and otherwise the person's personal
	571	+	11 representative, if known, at the person's last known address
	572	+	12 by first class mail, postage prepaid, through a third-party
	573	+	13 commercial carrier or courier with delivery charge fully
	574	+	14 prepaid, by hand delivery, or by electronic delivery at an
	575	+	15 email address on file with the credit union (if the person
	576	+	16 establishing the relationship with the credit union has
	577	+	17 consented to receive electronic delivery and, if the person
	578	+	18 establishing the relationship with the credit union is a
	579	+	19 consumer, the person has consented under the consumer consent
	580	+	20 provisions set forth in Section 7001 of Title 15 of the United
	581	+	21 States Code), unless the credit union is specifically
	582	+	22 prohibited from notifying the person by order of court or by
	583	+	23 applicable State or federal law. In the case of a grand jury
	584	+	24 subpoena, a credit union shall not mail a copy of a subpoena to
	585	+	25 any person pursuant to this subsection if the subpoena was
	586	+	26 issued by a grand jury under the Statewide Grand Jury Act or
544	587
545	588
546	589
547	590
548	591
549		-	HB2785 ~~Engrossed~~ - 16 - LRB104 07806 BAB 17852 b
	592	+	HB2785 - 16 - LRB104 07806 BAB 17852 b
550	593
551	594
552		-	HB2785 Engrossed- 17 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 17 - LRB104 07806 BAB 17852 b
553		-	HB2785 Engrossed - 17 - LRB104 07806 BAB 17852 b
554		-	1 prohibited from notifying the person by order of court or by
555		-	2 applicable State or federal law. In the case of a grand jury
556		-	3 subpoena, a credit union shall not mail a copy of a subpoena to
557		-	4 any person pursuant to this subsection if the subpoena was
558		-	5 issued by a grand jury under the Statewide Grand Jury Act or
559		-	6 notifying the person would constitute a violation of the
560		-	7 federal Right to Financial Privacy Act of 1978.
561		-	8 (e)(1) Any officer or employee of a credit union who
562		-	9 knowingly and willfully furnishes financial records in
563		-	10 violation of this Section is guilty of a business offense and
564		-	11 upon conviction thereof shall be fined not more than $1,000.
565		-	12 (2) Any person who knowingly and willfully induces or
566		-	13 attempts to induce any officer or employee of a credit union to
567		-	14 disclose financial records in violation of this Section is
568		-	15 guilty of a business offense and upon conviction thereof shall
569		-	16 be fined not more than $1,000.
570		-	17 (f) A credit union shall be reimbursed for costs which are
571		-	18 reasonably necessary and which have been directly incurred in
572		-	19 searching for, reproducing or transporting books, papers,
573		-	20 records or other data of a member required or requested to be
574		-	21 produced pursuant to a lawful subpoena, summons, warrant,
575		-	22 citation to discover assets, or court order. The Secretary and
576		-	23 the Director may determine, by rule, the rates and conditions
577		-	24 under which payment shall be made. Delivery of requested
578		-	25 documents may be delayed until final reimbursement of all
579		-	26 costs is received.
	595	+	HB2785- 17 -LRB104 07806 BAB 17852 b HB2785 - 17 - LRB104 07806 BAB 17852 b
	596	+	HB2785 - 17 - LRB104 07806 BAB 17852 b
	597	+	1 notifying the person would constitute a violation of the
	598	+	2 federal Right to Financial Privacy Act of 1978.
	599	+	3 (e)(1) Any officer or employee of a credit union who
	600	+	4 knowingly and willfully furnishes financial records in
	601	+	5 violation of this Section is guilty of a business offense and
	602	+	6 upon conviction thereof shall be fined not more than $1,000.
	603	+	7 (2) Any person who knowingly and willfully induces or
	604	+	8 attempts to induce any officer or employee of a credit union to
	605	+	9 disclose financial records in violation of this Section is
	606	+	10 guilty of a business offense and upon conviction thereof shall
	607	+	11 be fined not more than $1,000.
	608	+	12 (f) A credit union shall be reimbursed for costs which are
	609	+	13 reasonably necessary and which have been directly incurred in
	610	+	14 searching for, reproducing or transporting books, papers,
	611	+	15 records or other data of a member required or requested to be
	612	+	16 produced pursuant to a lawful subpoena, summons, warrant,
	613	+	17 citation to discover assets, or court order. The Secretary and
	614	+	18 the Director may determine, by rule, the rates and conditions
	615	+	19 under which payment shall be made. Delivery of requested
	616	+	20 documents may be delayed until final reimbursement of all
	617	+	21 costs is received.
	618	+	22 (Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)
	619	+	23 (205 ILCS 305/29) (from Ch. 17, par. 4430)
	620	+	24 Sec. 29. Meetings of directors.
	621	+	25 (1) The board of directors and the executive committee
580	622
581	623
582	624
583	625
584	626
585		-	HB2785 ~~Engrossed~~ - 17 - LRB104 07806 BAB 17852 b
	627	+	HB2785 - 17 - LRB104 07806 BAB 17852 b
586	628
587	629
588		-	HB2785 Engrossed- 18 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 18 - LRB104 07806 BAB 17852 b
589		-	HB2785 Engrossed - 18 - LRB104 07806 BAB 17852 b
590		-	1 (Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)
591		-	2 (205 ILCS 305/19) (from Ch. 17, par. 4420)
592		-	3 Sec. 19. Meeting of members.
593		-	4 (1)(a) The annual meeting shall be held each year during
594		-	5 the months of January, February or March or such other month as
595		-	6 may be approved by the Department. The meeting shall be held at
596		-	7 the time, place and in the manner set forth in the bylaws. Any
597		-	8 special meetings of the members of the credit union shall be
598		-	9 held at the time, place and in the manner set forth in the
599		-	10 bylaws. Unless otherwise set forth in this Act, quorum
600		-	11 requirements for meetings of members shall be established by a
601		-	12 credit union in its bylaws. Notice of all meetings must be
602		-	13 given by the secretary of the credit union at least 7 days
603		-	14 before the date of such meeting, either by handing a written or
604		-	15 printed notice to each member of the credit union, by mailing
605		-	16 the notice to the member at his address as listed on the books
606		-	17 and records of the credit union, by posting a notice of the
607		-	18 meeting in three conspicuous places, including the office of
608		-	19 the credit union, by posting the notice of the meeting on the
609		-	20 credit union's website, or by disclosing the notice of the
610		-	21 meeting in membership newsletters or account statements.
611		-	22 (b) Unless expressly prohibited by the articles of
612		-	23 incorporation or bylaws and subject to applicable requirements
613		-	24 of this Act, the board of directors may provide by resolution
614		-	25 that members may attend, participate in, act in, and vote at
	630	+	HB2785- 18 -LRB104 07806 BAB 17852 b HB2785 - 18 - LRB104 07806 BAB 17852 b
	631	+	HB2785 - 18 - LRB104 07806 BAB 17852 b
	632	+	1 shall meet as often as necessary, but one body must meet at
	633	+	2 least monthly and the other at least quarterly, as prescribed
	634	+	3 in the bylaws. Unless a greater number is required by the
	635	+	4 bylaws, a majority of the whole board of directors shall
	636	+	5 constitute a quorum. The act of a majority of the directors
	637	+	6 present at a meeting at which a quorum is present shall be the
	638	+	7 act of the board of directors unless the act of a greater
	639	+	8 number is required by this Act, the credit union's articles of
	640	+	9 incorporation or the bylaws.
	641	+	10 (1.5) Notwithstanding anything to the contrary in
	642	+	11 subsection (1), the board of directors of a credit union with a
	643	+	12 composite rating of either 1 or 2 under the Uniform Financial
	644	+	13 Institutions Rating System known as the CAMELS supervisory
	645	+	14 rating system (or an equivalent rating under a comparable
	646	+	15 rating system) and a management rating under such composite
	647	+	16 rating of either 1 or 2 may meet not less than 4 6 times
	648	+	17 annually, with at least one meeting held during each fiscal
	649	+	18 quarter. This meeting frequency schedule shall be available to
	650	+	19 an eligible credit union irrespective of whether it has
	651	+	20 appointed an executive committee pursuant to Section 28.
	652	+	21 (2) Unless specifically prohibited by the articles of
	653	+	22 incorporation or bylaws, directors and committee members may
	654	+	23 participate in and act at any meeting of the board or committee
	655	+	24 through the use of a conference telephone or other
	656	+	25 communications equipment by means of which all persons
	657	+	26 participating in the meeting can communicate with each other.
615	658
616	659
617	660
618	661
619	662
620		-	HB2785 ~~Engrossed~~ - 18 - LRB104 07806 BAB 17852 b
	663	+	HB2785 - 18 - LRB104 07806 BAB 17852 b
621	664
622	665
623		-	HB2785 ~~Engrossed~~- 19 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 19 - LRB104 07806 BAB 17852 b
624		-	HB2785 ~~Engrossed~~ - 19 - LRB104 07806 BAB 17852 b
625		-	1 ~~any annual~~ meeting ~~or special meeting through the use of a~~
626		-	2 ~~conference telephone~~ or ~~interactive technology, including, but~~
627		-	3 ~~not limited to, electronic transmission, internet usage, or~~
628		-	4 ~~remote communication,~~ by ~~means~~ of ~~which all persons~~
629		-	5 ~~participating in the meeting can communicate with each other.~~
630		-	6 ~~Participation through~~ the ~~use~~ of a ~~conference telephone or~~
631		-	7 ~~interactive technology shall constitute attendance,~~ ~~presence,~~
632		-	8 ~~and representation in person at the annual~~ meeting ~~or special~~
633		-	9 ~~meeting of~~ the ~~person or persons so participating and count~~
634		-	10 ~~towards~~ the ~~quorum required~~ to ~~conduct business at~~ the
635		-	11 ~~meeting.~~ The ~~following conditions shall apply to any virtual~~
636		-	12 ~~meeting of~~ the ~~members:~~
637		-	13 ~~(i)~~ the ~~credit union must internally possess or retain~~
638		-	14 the ~~technological capacity to facilitate virtual meeting~~
639		-	15 ~~attendance, participation,~~ ~~communication, and voting;~~ ~~and~~
640		-	16 ~~(ii)~~ the ~~members must receive notice~~ of the ~~use of a~~
641		-	17 ~~virtual meeting format and appropriate instructions for~~
642		-	18 ~~joining, participating,~~ ~~and voting during~~ the ~~virtual~~
643		-	19 ~~meeting at least 7 days before~~ the ~~virtual meeting~~.
644		-	20 ~~(2) On~~ all ~~questions and at~~ all ~~elections, except election~~
645		-	21 ~~of directors~~, ~~each member has one vote regardless of the~~
646		-	22 ~~number of his shares. There shall~~ be ~~no voting by proxy except~~
647		-	23 ~~on the election of directors, proposals for merger or~~
648		-	24 ~~voluntary dissolution.~~ ~~Members may vote on questions,~~
649		-	25 ~~including, without limitation,~~ the ~~approval of mergers and~~
650		-	26 ~~voluntary dissolutions under this Act~~, ~~and in elections by~~
	666	+	HB2785- 19 -LRB104 07806 BAB 17852 b HB2785 - 19 - LRB104 07806 BAB 17852 b
	667	+	HB2785 - 19 - LRB104 07806 BAB 17852 b
	668	+	1 Participation in the meeting shall constitute attendance and
	669	+	2 presence in person at the meeting of the person or persons so
	670	+	3 participating.
	671	+	4 (3) Unless specifically prohibited by the articles of
	672	+	5 incorporation or bylaws, any action required by this Act to be
	673	+	6 taken at a meeting of the board of directors or a committee and
	674	+	7 any other action that may be taken at a meeting of the board of
	675	+	8 directors or a committee may be taken without a meeting if a
	676	+	9 consent in writing setting forth the action taken is signed by
	677	+	10 all the directors entitled to vote with respect to the subject
	678	+	11 matter thereof, or by all members of the committee, as the case
	679	+	12 may be. The consent shall be evidenced by one or more written
	680	+	13 approvals, each of which sets forth the action taken and bears
	681	+	14 the signatures of one or more directors or committee members.
	682	+	15 All the approvals evidencing the consent shall be delivered to
	683	+	16 the secretary to be filed in the corporate records of the
	684	+	17 credit union. The action taken shall be effective when all the
	685	+	18 directors or committee members have approved the consent
	686	+	19 unless the consent specifies a different effective date. A
	687	+	20 consent signed by all the directors or all the members of a
	688	+	21 committee shall have the same effect as a unanimous vote, and
	689	+	22 may be stated as such in any document filed with the director
	690	+	23 under this Act.
	691	+	24 (4)(a) As used in this subsection:
	692	+	25 "Affiliate" means an organization established to serve the
	693	+	26 needs of credit unions, the business of which relates to the
651	694
652	695
653	696
654	697
655	698
656		-	HB2785 ~~Engrossed~~ - 19 - LRB104 07806 BAB 17852 b
	699	+	HB2785 - 19 - LRB104 07806 BAB 17852 b
657	700
658	701
659		-	HB2785 ~~Engrossed~~- 20 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 20 - LRB104 07806 BAB 17852 b
660		-	HB2785 ~~Engrossed~~ - 20 - LRB104 07806 BAB 17852 b
661		-	1 ~~electronic record if approved by the board~~ of ~~directors~~.
662		-	2 ~~Members shall have the right to vote on all such questions in~~
663		-	3 ~~person by written ballot.~~ ~~All voting on the election of~~
664		-	4 ~~directors shall be~~ by ~~ballot, but when there is no contest,~~
665		-	5 ~~written or electronic ballots need not be cast~~. ~~The record~~
666		-	6 ~~date~~ to ~~be used for~~ the ~~purpose~~ of ~~determining which members~~
667		-	7 ~~are entitled~~ to ~~notice of or~~ to ~~vote at~~ any ~~meeting of members,~~
668		-	8 ~~may be fixed in advance by~~ the ~~directors on a date not more~~
669		-	9 ~~than 90 days nor less than 10 days prior to the date of the~~
670		-	10 ~~meeting. If no record date is fixed by the directors, the first~~
671		-	11 ~~day on which notice of the meeting is given, mailed~~ or ~~posted~~
672		-	12 ~~is the record date.~~
673		-	13 (3) ~~Regardless of the number of shares owned by a society,~~
674		-	14 ~~association~~, ~~club~~, ~~partnership~~, ~~other credit union or~~
675		-	15 ~~corporation, having membership~~ in ~~the credit union,~~ it ~~shall~~
676		-	16 ~~be entitled to only one vote and it may be represented and have~~
677		-	17 ~~its vote cast by its designated agent acting on its behalf~~
678		-	18 ~~pursuant~~ to ~~a resolution adopted by~~ the ~~organization's board~~
679		-	19 ~~of directors or similar governing authority;~~ ~~provided that the~~
680		-	20 ~~credit union shall obtain a certified copy of such resolution~~
681		-	21 ~~before such vote may be cast.~~
682		-	22 ~~(4)~~ A ~~member may revoke~~ a ~~proxy by delivery to the credit~~
683		-	23 ~~union~~ of ~~a written statement to that effect, by execution of a~~
684		-	24 ~~subsequently dated proxy,~~ ~~by execution of an electronic~~
685		-	25 ~~record~~, ~~or by attendance at a meeting~~ and ~~voting in person.~~
686		-	26 ~~(5) The use~~ of ~~electronic records for member voting~~
	702	+	HB2785- 20 -LRB104 07806 BAB 17852 b HB2785 - 20 - LRB104 07806 BAB 17852 b
	703	+	HB2785 - 20 - LRB104 07806 BAB 17852 b
	704	+	1 daily operations of credit unions.
	705	+	2 "Compliance review documents" means reports, meeting
	706	+	3 minutes, and other documents prepared in connection with a
	707	+	4 review or evaluation conducted by or for the board of
	708	+	5 directors.
	709	+	6 (b) This subsection applies to the board of directors in
	710	+	7 relation to its functions to evaluate and seek to improve any
	711	+	8 of the following:
	712	+	9 (i) loan policies or underwriting standards;
	713	+	10 (ii) asset quality;
	714	+	11 (iii) financial reporting to federal or State
	715	+	12 governmental or regulatory agencies; or
	716	+	13 (iv) compliance with federal or State statutory or
	717	+	14 regulatory requirements, including, without limitation,
	718	+	15 the manner in which it performs its duties under Section
	719	+	16 30.
	720	+	17 (c) Meetings, minutes of meetings, and reports of the
	721	+	18 board of directors shall be subject to the confidentiality and
	722	+	19 redaction standards set forth in this subsection.
	723	+	20 (d) Except as provided in paragraph (e), compliance review
	724	+	21 documents and the deliberations of the board of directors are
	725	+	22 confidential. An affiliate of a credit union, a credit union
	726	+	23 regulatory agency, and the insurer of credit union share
	727	+	24 accounts shall have access to compliance review documents;
	728	+	25 however, (i) the documents remain confidential and (ii)
	729	+	26 delivery of compliance review documents to an affiliate or
687	730
688	731
689	732
690	733
691	734
692		-	HB2785 ~~Engrossed~~ - 20 - LRB104 07806 BAB 17852 b
	735	+	HB2785 - 20 - LRB104 07806 BAB 17852 b
693	736
694	737
695		-	HB2785 ~~Engrossed~~- 21 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 21 - LRB104 07806 BAB 17852 b
696		-	HB2785 ~~Engrossed~~ - 21 - LRB104 07806 BAB 17852 b
697		-	1 pursuant to ~~this Section shall employ~~ a ~~security procedure~~
698		-	2 ~~that meets the attribution criteria set forth in Section 9~~ of
699		-	3 the ~~Uniform Electronic Transactions Act.~~
700		-	4 ~~(6) As used in this~~ Section~~, "electronic", "electronic~~
701		-	5 ~~record", and "security~~ ~~procedure" have the meanings ascribed~~
702		-	6 ~~to those terms in the Uniform Electronic Transactions Act.~~
703		-	7 ~~(Source: P~~.~~A. 102-38, eff. 6-25-21; 102-496, eff. 8-20-21;~~
704		-	8 ~~102-774, eff.~~ ~~5-13-22; 102-813, eff.~~ ~~5-13-22; 103-154, eff.~~
705		-	9 ~~6-30-23.)~~
706		-	10 ~~(205 ILCS 305/29) (from Ch. 17~~, ~~par~~. ~~4430)~~
707		-	11 ~~Sec. 29.~~ ~~Meetings of directors.~~
708		-	12 ~~(1)~~ The board of directors ~~and~~ the ~~executive~~ committee
709		-	13 ~~shall meet as often as necessary~~, ~~but one body must meet at~~
710		-	14 ~~least monthly and the other at least quarterly, as prescribed~~
711		-	15 ~~in the bylaws~~. ~~Unless a greater number is required by the~~
712		-	16 ~~bylaws, a majority of~~ the ~~whole board of directors shall~~
713		-	17 ~~constitute~~ a ~~quorum. The act of a majority of the directors~~
714		-	18 ~~present at a meeting at which a quorum is present shall~~ be ~~the~~
715		-	19 ~~act~~ of ~~the board of directors unless the act of a greater~~
716		-	20 ~~number is required by this Act~~, ~~the credit union's articles of~~
717		-	21 ~~incorporation or the bylaws~~.
718		-	22 (1.~~5) Notwithstanding anything to the contrary in~~
719		-	23 ~~subsection~~ (1), the ~~board of directors of a credit union with a~~
720		-	24 ~~composite rating~~ of ~~either 1 or 2 under~~ the ~~Uniform Financial~~
721		-	25 ~~Institutions Rating System known as~~ the ~~CAMELS supervisory~~
	738	+	HB2785- 21 -LRB104 07806 BAB 17852 b HB2785 - 21 - LRB104 07806 BAB 17852 b
	739	+	HB2785 - 21 - LRB104 07806 BAB 17852 b
	740	+	1 pursuant to the requirements of a credit union regulatory
	741	+	2 agency or an insurer of credit union share accounts do not
	742	+	3 constitute a waiver of the confidentiality granted in this
	743	+	4 Section.
	744	+	5 (e) This Section does not apply to any civil or
	745	+	6 administrative action initiated by a credit union regulatory
	746	+	7 agency or an insurer of credit union share accounts.
	747	+	8 (f) This Section shall not be construed to limit the
	748	+	9 discovery or admissibility in any civil action of any
	749	+	10 documents, including compliance review documents.
	750	+	11 (g) Any report required under this Act to be furnished to
	751	+	12 the board of directors by the membership committee, credit
	752	+	13 committee, or any other committee may be submitted in a
	753	+	14 summary format that redacts personally identifiable
	754	+	15 information as defined under applicable State and federal law.
	755	+	16 (h) Compliance review documents may be disclosed by the
	756	+	17 Secretary or a credit union to any person or entity to whom
	757	+	18 confidential supervisory information may be disclosed pursuant
	758	+	19 to subsection (3) of Section 9.1.
	759	+	20 (Source: P.A. 103-289, eff. 7-28-23.)
	760	+	21 (205 ILCS 305/34) (from Ch. 17, par. 4435)
	761	+	22 Sec. 34. Duties of supervisory committee.
	762	+	23 (1) The supervisory committee shall make or cause to be
	763	+	24 made an annual internal audit of the books and affairs of the
	764	+	25 credit union to determine that the credit union's accounting
722	765
723	766
724	767
725	768
726	769
727		-	HB2785 ~~Engrossed~~ - 21 - LRB104 07806 BAB 17852 b
	770	+	HB2785 - 21 - LRB104 07806 BAB 17852 b
728	771
729	772
730		-	HB2785 ~~Engrossed~~- 22 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 22 - LRB104 07806 BAB 17852 b
731		-	HB2785 ~~Engrossed~~ - 22 - LRB104 07806 BAB 17852 b
732		-	1 ~~rating system (or~~ ~~an equivalent rating under a comparable~~
733		-	2 ~~rating system)~~ and ~~a management rating under such composite~~
734		-	3 ~~rating of either 1 or 2 may meet not less than 6 times~~
735		-	4 ~~annually~~, ~~with at least one meeting held during each fiscal~~
736		-	5 ~~quarter. This meeting frequency schedule shall be available to~~
737		-	6 ~~an eligible~~ credit union ~~irrespective of whether it has~~
738		-	7 ~~appointed an executive~~ committee ~~pursuant~~ to ~~Section 28.~~
739		-	8 ~~(1.7) Notwithstanding subsection (1) or (1.5),~~ the board
740		-	9 ~~of directors~~ of a credit union ~~with $50,000,000 or more in~~
741		-	10 ~~assets, a composite rating of either 1~~ or ~~2 under the Uniform~~
742		-	11 ~~Financial Institutions Rating System known~~ as the ~~CAMELS~~
743		-	12 ~~supervisory rating system (or~~ ~~an equivalent rating under a~~
744		-	13 ~~comparable rating system), and a management rating under~~ the
745		-	14 ~~composite rating of either 1 or 2 may meet no fewer than 4~~
746		-	15 ~~times annually,~~ ~~with at least one meeting held during each~~
747		-	16 ~~fiscal quarter.~~ The ~~board of directors of a credit union with~~
748		-	17 ~~less than $50,000,000 in assets, but with~~ the ~~composite and~~
749		-	18 ~~management ratings referenced~~ in ~~this subsection,~~ ~~may meet no~~
750		-	19 ~~fewer than 4 times annually,~~ ~~with at least one meeting held~~
751		-	20 ~~during each fiscal quarter,~~ ~~upon prior written approval of~~ the
752		-	21 ~~Secretary.~~ The ~~meeting frequency schedule set forth in this~~
753		-	22 ~~subsection shall be available to an eligible credit union,~~
754		-	23 ~~irrespective of whether it has appointed an executive~~
755		-	24 ~~committee pursuant to Section 28.~~
756		-	25 ~~(2) Unless specifically prohibited by~~ the ~~articles~~ of
757		-	26 ~~incorporation or bylaws,~~ ~~directors and committee members may~~
	773	+	HB2785- 22 -LRB104 07806 BAB 17852 b HB2785 - 22 - LRB104 07806 BAB 17852 b
	774	+	HB2785 - 22 - LRB104 07806 BAB 17852 b
	775	+	1 records and reports are prepared promptly and accurately
	776	+	2 reflect operations and results, that internal controls are
	777	+	3 established and effectively maintained to safeguard the assets
	778	+	4 of the credit union, and that the policies, procedures and
	779	+	5 practices established by the board of directors and management
	780	+	6 of the credit union are being properly administered. The
	781	+	7 supervisory committee shall submit a report of that audit to
	782	+	8 the board of directors and a summary of that report to the
	783	+	9 members at the next annual meeting of the credit union. It
	784	+	10 shall make or cause to be made such supplementary audits as it
	785	+	11 deems necessary or as are required by the Secretary or by the
	786	+	12 board of directors, and submit reports of these supplementary
	787	+	13 audits to the Secretary or board of directors as applicable.
	788	+	14 If the supervisory committee has not engaged a licensed
	789	+	15 certified public accountant or licensed certified public
	790	+	16 accounting firm to make the internal audit, the supervisory
	791	+	17 committee or other officials of the credit union shall not
	792	+	18 indicate or in any manner imply that such audit has been
	793	+	19 performed by a licensed certified public accountant or
	794	+	20 licensed certified public accounting firm or that the audit
	795	+	21 represents the independent opinion of a licensed certified
	796	+	22 public accountant or licensed certified public accounting
	797	+	23 firm. The supervisory committee must retain its tapes and
	798	+	24 working papers of each internal audit for inspection by the
	799	+	25 Department. The report of this audit must be made on a form
	800	+	26 approved by the Secretary. A copy of the report must be
758	801
759	802
760	803
761	804
762	805
763		-	HB2785 ~~Engrossed~~ - 22 - LRB104 07806 BAB 17852 b
	806	+	HB2785 - 22 - LRB104 07806 BAB 17852 b
764	807
765	808
766		-	HB2785 ~~Engrossed~~- 23 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 23 - LRB104 07806 BAB 17852 b
767		-	HB2785 ~~Engrossed~~ - 23 - LRB104 07806 BAB 17852 b
768		-	1 ~~participate~~ in ~~and act at any meeting of the board or committee~~
769		-	2 ~~through the use~~ of ~~a conference telephone or other~~
770		-	3 ~~communications equipment by means of which all persons~~
771		-	4 ~~participating in the meeting can communicate with~~ each ~~other.~~
772		-	5 ~~Participation in the meeting shall constitute attendance~~ and
773		-	6 ~~presence in person at~~ the ~~meeting of the person or persons so~~
774		-	7 ~~participating.~~
775		-	8 ~~(3) Unless specifically prohibited by the articles~~ of
776		-	9 ~~incorporation~~ or ~~bylaws, any action required by this Act to be~~
777		-	10 ~~taken at a meeting of the board of directors or a committee and~~
778		-	11 ~~any other action that may be taken at a meeting~~ of the ~~board of~~
779		-	12 ~~directors or a committee may be taken without a meeting if a~~
780		-	13 ~~consent~~ in ~~writing setting forth the action taken is signed by~~
781		-	14 ~~all~~ the ~~directors entitled to vote with respect to the subject~~
782		-	15 ~~matter thereof,~~ ~~or by all members~~ of ~~the committee,~~ ~~as the case~~
783		-	16 ~~may be.~~ ~~The consent shall be evidenced by one~~ or more ~~written~~
784		-	17 ~~approvals~~, ~~each of which sets forth the action taken and bears~~
785		-	18 ~~the signatures of one~~ or ~~more directors or committee members.~~
786		-	19 ~~All the approvals evidencing the consent shall be delivered to~~
787		-	20 ~~the secretary to be filed in~~ the ~~corporate records of the~~
788		-	21 ~~credit union.~~ ~~The action taken shall be effective when all the~~
789		-	22 ~~directors or~~ committee ~~members have approved the consent~~
790		-	23 ~~unless the consent specifies a different effective date.~~ A
791		-	24 ~~consent signed by all~~ the ~~directors or all the members of a~~
792		-	25 ~~committee shall have~~ the ~~same effect as~~ a ~~unanimous vote, and~~
793		-	26 ~~may be stated as such in any document filed with~~ the ~~director~~
	809	+	HB2785- 23 -LRB104 07806 BAB 17852 b HB2785 - 23 - LRB104 07806 BAB 17852 b
	810	+	HB2785 - 23 - LRB104 07806 BAB 17852 b
	811	+	1 promptly delivered to the Secretary as set forth in paragraph
	812	+	2 (C) of subsection (3).
	813	+	3 (2) The supervisory committee shall make or cause to be
	814	+	4 made at least once each year a reasonable percentage
	815	+	5 verification of members' share and loan accounts, consistent
	816	+	6 with rules promulgated by the Secretary.
	817	+	7 (3) (A) The supervisory committee of a credit union with
	818	+	8 assets of $10,000,000 or more shall engage a licensed
	819	+	9 certified public accountant or licensed certified public
	820	+	10 accounting firm to perform an annual external independent
	821	+	11 audit of the credit union's financial statements in accordance
	822	+	12 with generally accepted auditing standards and the financial
	823	+	13 statements shall be issued in accordance with accounting
	824	+	14 principles generally accepted in the United States of America.
	825	+	15 (B) The supervisory committee of a credit union with
	826	+	16 assets of $5,000,000 or more, but less than $10,000,000 may,
	827	+	17 at its option, shall engage a licensed certified public
	828	+	18 accountant or licensed certified public accounting firm to
	829	+	19 perform on an annual basis: (i) an agreed-upon procedures
	830	+	20 engagement under attestation standards established by the
	831	+	21 American Institute of Certified Public Accountants to
	832	+	22 minimally satisfy the supervisory committee internal audit
	833	+	23 standards set forth in subsection (1); (ii) an external
	834	+	24 independent audit of the credit union's financial statements
	835	+	25 pursuant to the standards set forth in paragraph (A) of
	836	+	26 subsection (3); or (iii) an external independent audit of the
794	837
795	838
796	839
797	840
798	841
799		-	HB2785 ~~Engrossed~~ - 23 - LRB104 07806 BAB 17852 b
	842	+	HB2785 - 23 - LRB104 07806 BAB 17852 b
800	843
801	844
802		-	HB2785 ~~Engrossed~~- 24 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 24 - LRB104 07806 BAB 17852 b
803		-	HB2785 ~~Engrossed~~ - 24 - LRB104 07806 BAB 17852 b
804		-	1 ~~under this Act.~~
805		-	2 (4)~~(a) As used in this subsection:~~
806		-	3 ~~"Affiliate" means an organization established~~ to ~~serve the~~
807		-	4 ~~needs of~~ credit ~~unions,~~ the ~~business of which relates to the~~
808		-	5 ~~daily operations~~ of ~~credit unions.~~
809		-	6 ~~"Compliance review documents" means reports~~, ~~meeting~~
810		-	7 ~~minutes, and other documents prepared~~ in ~~connection with a~~
811		-	8 ~~review or evaluation conducted by or for~~ the ~~board~~ of
812		-	9 ~~directors.~~
813		-	10 ~~(b) This subsection applies to~~ the ~~board of directors in~~
814		-	11 ~~relation to~~ its ~~functions to evaluate and seek to improve any~~
815		-	12 ~~of the following:~~
816		-	13 ~~(i) loan policies or underwriting standards;~~
817		-	14 ~~(ii) asset quality;~~
818		-	15 ~~(iii) financial reporting to federal or State~~
819		-	16 ~~governmental~~ or ~~regulatory agencies;~~ or
820		-	17 ~~(iv) compliance with federal or State statutory or~~
821		-	18 ~~regulatory requirements, including, without limitation,~~
822		-	19 the ~~manner in which it performs its duties under Section~~
823		-	20 ~~30.~~
824		-	21 (c) ~~Meetings, minutes of meetings, and reports~~ of the
825		-	22 ~~board of directors shall be subject~~ to the ~~confidentiality and~~
826		-	23 ~~redaction standards set forth~~ in ~~this~~ subsection.
827		-	24 ~~(d) Except as provided~~ in ~~paragraph (e), compliance review~~
828		-	25 ~~documents and the deliberations of the board of directors are~~
829		-	26 ~~confidential. An affiliate~~ of ~~a credit union, a credit union~~
	845	+	HB2785- 24 -LRB104 07806 BAB 17852 b HB2785 - 24 - LRB104 07806 BAB 17852 b
	846	+	HB2785 - 24 - LRB104 07806 BAB 17852 b
	847	+	1 credit union's financial statements in accordance with
	848	+	2 subsection (5).
	849	+	3 (C) Notwithstanding anything to the contrary in Section 6,
	850	+	4 each credit union organized under this Act shall select the
	851	+	5 annual period it desires to use for purposes of performing the
	852	+	6 external independent audit, agreed-upon procedures engagement,
	853	+	7 or internal audit described in this Section. The annual period
	854	+	8 may end on the final day of any month and shall be construed to
	855	+	9 mean once every calendar year and not once every 12-month
	856	+	10 period. Irrespective of the annual period selected, the credit
	857	+	11 union shall complete its external independent audit report,
	858	+	12 agreed-upon procedures report, or internal audit report and
	859	+	13 deliver a copy to the Secretary no later than 120 days after
	860	+	14 the effective date of the audit or engagement, which shall
	861	+	15 mean the last day of the selected annual period. A credit union
	862	+	16 or group of credit unions may obtain an extension of the due
	863	+	17 date upon application to and receipt of written approval from
	864	+	18 the Secretary.
	865	+	19 (D) If the credit union engages a licensed certified
	866	+	20 public accountant or licensed certified public accounting firm
	867	+	21 to perform an annual (i) external independent audit of the
	868	+	22 credit union's financial statements pursuant to the standards
	869	+	23 in paragraph (A) of subsection (3); (ii) regulatory basis
	870	+	24 financial statement audit pursuant to the standards in
	871	+	25 subsection (5); or (iii) or an annual agreed-upon procedures
	872	+	26 engagement pursuant to the standards in paragraph (B) of
830	873
831	874
832	875
833	876
834	877
835		-	HB2785 ~~Engrossed~~ - 24 - LRB104 07806 BAB 17852 b
	878	+	HB2785 - 24 - LRB104 07806 BAB 17852 b
836	879
837	880
838		-	HB2785 Engrossed- 25 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 25 - LRB104 07806 BAB 17852 b
839		-	HB2785 Engrossed - 25 - LRB104 07806 BAB 17852 b
840		-	1 regulatory agency, and the insurer of credit union share
841		-	2 accounts shall have access to compliance review documents;
842		-	3 however, (i) the documents remain confidential and (ii)
843		-	4 delivery of compliance review documents to an affiliate or
844		-	5 pursuant to the requirements of a credit union regulatory
845		-	6 agency or an insurer of credit union share accounts do not
846		-	7 constitute a waiver of the confidentiality granted in this
847		-	8 Section.
848		-	9 (e) This Section does not apply to any civil or
849		-	10 administrative action initiated by a credit union regulatory
850		-	11 agency or an insurer of credit union share accounts.
851		-	12 (f) This Section shall not be construed to limit the
852		-	13 discovery or admissibility in any civil action of any
853		-	14 documents, including compliance review documents.
854		-	15 (g) Any report required under this Act to be furnished to
855		-	16 the board of directors by the membership committee, credit
856		-	17 committee, or any other committee may be submitted in a
857		-	18 summary format that redacts personally identifiable
858		-	19 information as defined under applicable State and federal law.
859		-	20 (h) Compliance review documents may be disclosed by the
860		-	21 Secretary or a credit union to any person or entity to whom
861		-	22 confidential supervisory information may be disclosed pursuant
862		-	23 to subsection (3) of Section 9.1.
863		-	24 (Source: P.A. 103-289, eff. 7-28-23.)
864		-	25 (205 ILCS 305/34) (from Ch. 17, par. 4435)
	881	+	HB2785- 25 -LRB104 07806 BAB 17852 b HB2785 - 25 - LRB104 07806 BAB 17852 b
	882	+	HB2785 - 25 - LRB104 07806 BAB 17852 b
	883	+	1 subsection (3), then the annual internal audit requirements of
	884	+	2 subsection (1) shall be deemed satisfied and met in all
	885	+	3 respects.
	886	+	4 (4) In determining the appropriate balance in the
	887	+	5 allowance for loan losses account, a credit union may
	888	+	6 determine its historical loss rate using a defined period of
	889	+	7 time of less than 5 years, provided that:
	890	+	8 (A) the methodology used to determine the defined
	891	+	9 period of time is formally documented in the credit
	892	+	10 union's policies and procedures and is appropriate to the
	893	+	11 credit union's size, business strategy, and loan portfolio
	894	+	12 characteristics and the economic environment of the areas
	895	+	13 and employers served by the credit union;
	896	+	14 (B) supporting documentation is maintained for the
	897	+	15 technique used to develop the credit union loss rates,
	898	+	16 including the period of time used to accumulate historical
	899	+	17 loss data and the factors considered in establishing the
	900	+	18 time frames; and
	901	+	19 (C) the external auditor conducting the credit union's
	902	+	20 financial statement audit has analyzed the methodology
	903	+	21 employed by the credit union and concludes that the
	904	+	22 financial statements, including the allowance for loan
	905	+	23 losses, are fairly stated in all material respects in
	906	+	24 accordance with U.S. Generally Accepted Accounting
	907	+	25 Principles, as promulgated by the Financial Accounting
	908	+	26 Standards Board, or the regulatory basis of accounting
865	909
866	910
867	911
868	912
869	913
870		-	HB2785 ~~Engrossed~~ - 25 - LRB104 07806 BAB 17852 b
	914	+	HB2785 - 25 - LRB104 07806 BAB 17852 b
871	915
872	916
873		-	HB2785 ~~Engrossed~~- 26 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 26 - LRB104 07806 BAB 17852 b
874		-	HB2785 ~~Engrossed~~ - 26 - LRB104 07806 BAB 17852 b
875		-	1 ~~Sec~~. ~~34. Duties of supervisory committee.~~
876		-	2 (1) ~~The supervisory committee shall make or cause to be~~
877		-	3 ~~made an annual internal audit of the books and affairs of the~~
878		-	4 ~~credit union~~ to ~~determine that the credit union's accounting~~
879		-	5 ~~records and reports are prepared promptly and accurately~~
880		-	6 ~~reflect operations and results,~~ ~~that internal controls are~~
881		-	7 ~~established and effectively maintained~~ to ~~safeguard the assets~~
882		-	8 ~~of the credit union,~~ ~~and that the policies,~~ ~~procedures and~~
883		-	9 ~~practices established by the board of directors and management~~
884		-	10 ~~of the credit union are being properly administered. The~~
885		-	11 ~~supervisory committee shall submit a report of that audit to~~
886		-	12 ~~the board of directors~~ and ~~a summary of that report to~~ the
887		-	13 ~~members at the next annual meeting of the credit union~~. It
888		-	14 shall ~~make or cause to be made such supplementary audits as it~~
889		-	15 ~~deems necessary~~ or ~~as are required by the Secretary or by the~~
890		-	16 ~~board of directors,~~ ~~and submit reports of these supplementary~~
891		-	17 ~~audits to the Secretary or board~~ of ~~directors as applicable.~~
892		-	18 If the ~~supervisory committee has not engaged a licensed~~
893		-	19 ~~certified public accountant or licensed certified public~~
894		-	20 ~~accounting firm to make the internal audit, the supervisory~~
895		-	21 ~~committee or other officials of~~ the ~~credit union shall not~~
896		-	22 ~~indicate or in any manner imply that such audit has been~~
897		-	23 ~~performed by a licensed certified public accountant or~~
898		-	24 ~~licensed certified public accounting firm or that~~ the ~~audit~~
899		-	25 ~~represents~~ the ~~independent opinion of a licensed certified~~
900		-	26 ~~public accountant or licensed certified public accounting~~
	917	+	HB2785- 26 -LRB104 07806 BAB 17852 b HB2785 - 26 - LRB104 07806 BAB 17852 b
	918	+	HB2785 - 26 - LRB104 07806 BAB 17852 b
	919	+	1 identified in subsection (5).
	920	+	2 (5) A credit union with total assets of less than
	921	+	3 $10,000,000 that does not engage a licensed certified public
	922	+	4 accountant or licensed certified public accounting firm to
	923	+	5 perform an annual external independent audit of the credit
	924	+	6 union's financial statements pursuant to the standards in
	925	+	7 paragraph (A) of subsection (3) is not required to determine
	926	+	8 its allowance for loan losses in accordance with generally
	927	+	9 accepted accounting principles. Any such credit union may
	928	+	10 instead use any reasonable reserve methodology, including
	929	+	11 incurred loss, if it adequately covers known and probable loan
	930	+	12 losses and complies with the Department's rule addressing loan
	931	+	13 loss accounting procedures in 38 Ill. Adm. Code 190.70. Any
	932	+	14 such credit union shall also have the option of engaging a
	933	+	15 licensed certified public accountant or licensed certified
	934	+	16 public accounting firm to perform a financial statement audit
	935	+	17 in accordance with this regulatory basis of accounting rather
	936	+	18 than the standards in paragraph (A) of subsection (3).
	937	+	19 (6) A majority of the members of the supervisory committee
	938	+	20 shall constitute a quorum.
	939	+	21 (7) On an annual basis commencing January 1, 2015, the
	940	+	22 members of the supervisory committee shall receive training
	941	+	23 related to their statutory duties. Supervisory committee
	942	+	24 members may receive the training through internal credit union
	943	+	25 training, external training offered by the credit union's
	944	+	26 retained auditors, trade associations, vendors, regulatory
901	945
902	946
903	947
904	948
905	949
906		-	HB2785 ~~Engrossed~~ - 26 - LRB104 07806 BAB 17852 b
	950	+	HB2785 - 26 - LRB104 07806 BAB 17852 b
907	951
908	952
909		-	HB2785 Engrossed- 27 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 27 - LRB104 07806 BAB 17852 b
910		-	HB2785 Engrossed - 27 - LRB104 07806 BAB 17852 b
911		-	1 firm. The supervisory committee must retain its tapes and
912		-	2 working papers of each internal audit for inspection by the
913		-	3 Department. The report of this audit must be made on a form
914		-	4 approved by the Secretary. A copy of the report must be
915		-	5 promptly delivered to the Secretary as set forth in paragraph
916		-	6 (C) of subsection (3).
917		-	7 (2) The supervisory committee shall make or cause to be
918		-	8 made at least once each year a reasonable percentage
919		-	9 verification of members' share and loan accounts, consistent
920		-	10 with rules promulgated by the Secretary.
921		-	11 (3) (A) The supervisory committee of a credit union with
922		-	12 assets of $10,000,000 or more shall engage a licensed
923		-	13 certified public accountant or licensed certified public
924		-	14 accounting firm to perform an annual external independent
925		-	15 audit of the credit union's financial statements in accordance
926		-	16 with generally accepted auditing standards and the financial
927		-	17 statements shall be issued in accordance with accounting
928		-	18 principles generally accepted in the United States of America.
929		-	19 (B) The supervisory committee of a credit union with
930		-	20 assets of $5,000,000 or more, but less than $10,000,000 may,
931		-	21 at its option, shall engage a licensed certified public
932		-	22 accountant or licensed certified public accounting firm to
933		-	23 perform on an annual basis: (i) the an agreed-upon procedures
934		-	24 engagement under attestation standards established by the
935		-	25 American Institute of Certified Public Accountants to
936		-	26 minimally satisfy the supervisory committee internal audit
	953	+	HB2785- 27 -LRB104 07806 BAB 17852 b HB2785 - 27 - LRB104 07806 BAB 17852 b
	954	+	HB2785 - 27 - LRB104 07806 BAB 17852 b
	955	+	1 agencies, or any other sources or on-the-job experience, or a
	956	+	2 combination of those activities. The training may be received
	957	+	3 through any medium, including, but not limited to,
	958	+	4 conferences, workshops, audit closing meetings, seminars,
	959	+	5 teleconferences, webinars, and other Internet-based delivery
	960	+	6 channels.
	961	+	7 (Source: P.A. 101-81, eff. 7-12-19; 102-496, eff. 8-20-21;
	962	+	8 102-774, eff. 5-13-22.)
	963	+	9 (205 ILCS 305/63) (from Ch. 17, par. 4464)
	964	+	10 Sec. 63. Merger and consolidation.
	965	+	11 (1) Any two or more credit unions, regardless of whether
	966	+	12 or not they have the same common bond, may merge or consolidate
	967	+	13 into a single credit union. A merger or consolidation may be
	968	+	14 with a credit union organized under the laws of this State or
	969	+	15 of another state or of the United States and is subject to the
	970	+	16 approval of the Secretary. It must be made on such terms as
	971	+	17 have been agreed upon by a vote of a majority of the directors
	972	+	18 present at a meeting of the board of directors of each credit
	973	+	19 union at which a quorum is present, and approved by an
	974	+	20 affirmative vote of a majority of the members of the merging
	975	+	21 credit union being absorbed present at a meeting, either in
	976	+	22 person or by proxy, duly called for that purpose, except as
	977	+	23 hereinafter specified. Notice of the meeting stating the
	978	+	24 purpose must be sent by the secretary Secretary of each
	979	+	25 merging credit union being absorbed to each member by mail or
937	980
938	981
939	982
940	983
941	984
942		-	HB2785 ~~Engrossed~~ - 27 - LRB104 07806 BAB 17852 b
	985	+	HB2785 - 27 - LRB104 07806 BAB 17852 b
943	986
944	987
945		-	HB2785 ~~Engrossed~~- 28 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 28 - LRB104 07806 BAB 17852 b
946		-	HB2785 ~~Engrossed~~ - 28 - LRB104 07806 BAB 17852 b
947		-	1 ~~standards set forth in subsection (1) within the standards~~
948		-	2 ~~established by~~ the ~~American Institute~~ of ~~Certified Public~~
949		-	3 ~~Accountants; (ii) an external independent audit of the credit~~
950		-	4 ~~union's financial statements pursuant to~~ the ~~standards set~~
951		-	5 ~~forth~~ in ~~paragraph (A)~~ of ~~subsection (3); or (iii) an external~~
952		-	6 ~~independent audit of the credit union's financial statements~~
953		-	7 ~~in accordance with subsection (5).~~
954		-	8 ~~(C) Notwithstanding anything to~~ the ~~contrary in Section 6,~~
955		-	9 each ~~credit union organized under this Act shall select the~~
956		-	10 ~~annual period it desires~~ to ~~use for purposes of performing the~~
957		-	11 ~~external independent audit,~~ ~~agreed-upon procedures engagement,~~
958		-	12 ~~or internal audit described in this Section.~~ The ~~annual period~~
959		-	13 ~~may end on~~ the ~~final day of any month and shall be construed to~~
960		-	14 ~~mean once every calendar year and not once every 12-month~~
961		-	15 ~~period. Irrespective~~ of ~~the annual period selected,~~ the ~~credit~~
962		-	16 ~~union shall complete its external independent audit report,~~
963		-	17 ~~agreed-upon procedures report,~~ ~~or internal audit report and~~
964		-	18 ~~deliver~~ a ~~copy to the Secretary no later~~ than ~~120 days after~~
965		-	19 ~~the effective date~~ of ~~the audit or engagement, which shall~~
966		-	20 ~~mean the last day~~ of the ~~selected annual period. A credit union~~
967		-	21 ~~or group of~~ credit ~~unions may obtain an extension of the due~~
968		-	22 ~~date upon application to and receipt~~ of ~~written approval from~~
969		-	23 the ~~Secretary.~~
970		-	24 ~~(D) If the credit union engages a licensed certified~~
971		-	25 ~~public accountant~~ or ~~licensed certified public accounting firm~~
972		-	26 ~~to perform an annual (i) external independent audit of the~~
	988	+	HB2785- 28 -LRB104 07806 BAB 17852 b HB2785 - 28 - LRB104 07806 BAB 17852 b
	989	+	HB2785 - 28 - LRB104 07806 BAB 17852 b
	990	+	1 electronic record as authorized by Section 10.2 of this Act at
	991	+	2 least 45 but no more than 90 days before the date of the
	992	+	3 meeting, except as specified in this Act.
	993	+	4 (1.5) If the Secretary determines the merging credit union
	994	+	5 is not yet in danger of insolvency but supervisory concerns
	995	+	6 exist as described in this paragraph (1.5), and upon agreement
	996	+	7 of the boards of directors of the merging and continuing
	997	+	8 credit unions as confirmed by a majority vote of the directors
	998	+	9 present at a meeting of each board at which a quorum is
	999	+	10 present, the Secretary may permit the merger to become
	1000	+	11 effective without (i) an affirmative vote of the membership of
	1001	+	12 the merging credit union otherwise required by paragraph (1)
	1002	+	13 of Section 63, (ii) adherence to the merging credit union
	1003	+	14 membership meeting notice requirement set forth in subsection
	1004	+	15 (1) of Section 63, or (iii) both. For the avoidance of doubt,
	1005	+	16 if supervisory concerns exist, the Secretary and both credit
	1006	+	17 unions may agree to conduct the merging credit union
	1007	+	18 membership meeting, but on a timeline shorter than that
	1008	+	19 prescribed in subsection (1) of Section 63. Supervisory
	1009	+	20 concerns supporting such a waiver or adjustment of the merging
	1010	+	21 credit union membership notice and voting process include
	1011	+	22 without limitation, abandonment of management or officials, or
	1012	+	23 both, of the merging credit union and the inability to find
	1013	+	24 suitable replacements; material loss of sponsor support;
	1014	+	25 serious and persistent recordkeeping problems or deficiencies;
	1015	+	26 or sustained material decline in financial condition supported
973	1016
974	1017
975	1018
976	1019
977	1020
978		-	HB2785 ~~Engrossed~~ - 28 - LRB104 07806 BAB 17852 b
	1021	+	HB2785 - 28 - LRB104 07806 BAB 17852 b
979	1022
980	1023
981		-	HB2785 ~~Engrossed~~- 29 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 29 - LRB104 07806 BAB 17852 b
982		-	HB2785 ~~Engrossed~~ - 29 - LRB104 07806 BAB 17852 b
983		-	1 ~~credit union's financial statements pursuant to~~ the ~~standards~~
984		-	2 ~~in paragraph (~~A~~) of subsection (3); (ii) regulatory basis~~
985		-	3 ~~financial statement audit pursuant to the standards in~~
986		-	4 ~~subsection~~ (~~5); or (iii~~) ~~or an annual agreed-upon~~ ~~procedures~~
987		-	5 ~~engagement pursuant to~~ the ~~standards in paragraph (B) of~~
988		-	6 ~~subsection (3), then the annual internal audit requirements of~~
989		-	7 ~~subsection (1) shall be deemed satisfied and met in all~~
990		-	8 ~~respects.~~
991		-	9 ~~(4) In determining~~ the ~~appropriate balance in~~ the
992		-	10 ~~allowance~~ for ~~loan losses account, a credit union may~~
993		-	11 ~~determine its historical loss rate using~~ a ~~defined period of~~
994		-	12 ~~time~~ of ~~less than 5 years, provided that:~~
995		-	13 ~~(A)~~ the ~~methodology used to determine~~ the ~~defined~~
996		-	14 ~~period~~ of ~~time is formally documented in the~~ credit
997		-	15 ~~union's policies and procedures and is appropriate to the~~
998		-	16 ~~credit union's size,~~ ~~business strategy,~~ ~~and loan portfolio~~
999		-	17 ~~characteristics~~ and ~~the economic environment~~ of the ~~areas~~
1000		-	18 ~~and employers served by~~ the ~~credit union~~;
1001		-	19 (B) ~~supporting documentation is maintained for~~ the
1002		-	20 ~~technique used to develop the credit union loss rates,~~
1003		-	21 ~~including~~ the ~~period of time used to accumulate historical~~
1004		-	22 ~~loss data~~ and the ~~factors considered in establishing~~ the
1005		-	23 ~~time frames;~~ ~~and~~
1006		-	24 ~~(C) the external auditor conducting the credit union's~~
1007		-	25 ~~financial statement audit has analyzed~~ the ~~methodology~~
1008		-	26 ~~employed by~~ the credit union ~~and concludes that the~~
	1024	+	HB2785- 29 -LRB104 07806 BAB 17852 b HB2785 - 29 - LRB104 07806 BAB 17852 b
	1025	+	HB2785 - 29 - LRB104 07806 BAB 17852 b
	1026	+	1 by at least 12 months of historical data that reflects the
	1027	+	2 merging credit union's net worth is declining at a rate that
	1028	+	3 will take it under 2% net worth within 18 months.
	1029	+	4 (2) One of the merging credit unions may continue after
	1030	+	5 the merger or consolidation either as a surviving credit union
	1031	+	6 retaining its identity or as a new credit union as has been
	1032	+	7 agreed upon under the terms of the merger. At least 9 members
	1033	+	8 of the new proposed credit union must apply to the Department
	1034	+	9 for permission to organize the new credit union. The same
	1035	+	10 procedure shall be followed as provided for the organization
	1036	+	11 of a new credit union.
	1037	+	12 (3) After approval by the members of the credit union
	1038	+	13 which is to be absorbed by the merger or consolidation, the
	1039	+	14 chairman or president and the secretary of each credit union
	1040	+	15 shall execute a certificate of merger or consolidation, which
	1041	+	16 shall set forth all of the following:
	1042	+	17 (a) The time and place of the meeting of each board of
	1043	+	18 directors at which the plan was agreed upon;
	1044	+	19 (b) The vote in favor of the adoption of the plan;
	1045	+	20 (c) A copy of each resolution or other action by which
	1046	+	21 the plan was agreed upon;
	1047	+	22 (d) The time and place of the meeting of the members of
	1048	+	23 the absorbed credit union at which the plan agreed upon
	1049	+	24 was approved; and,
	1050	+	25 (e) The vote by which the plan was approved by the
	1051	+	26 members of the absorbed credit union.
1009	1052
1010	1053
1011	1054
1012	1055
1013	1056
1014		-	HB2785 ~~Engrossed~~ - 29 - LRB104 07806 BAB 17852 b
	1057	+	HB2785 - 29 - LRB104 07806 BAB 17852 b
1015	1058
1016	1059
1017		-	HB2785 ~~Engrossed~~- 30 -LRB104 07806 BAB 17852 b HB2785 ~~Engrossed~~ - 30 - LRB104 07806 BAB 17852 b
1018		-	HB2785 ~~Engrossed~~ - 30 - LRB104 07806 BAB 17852 b
1019		-	1 ~~financial statements,~~ ~~including~~ the ~~allowance for loan~~
1020		-	2 ~~losses, are fairly stated in all material respects in~~
1021		-	3 ~~accordance~~ with ~~U.S. Generally Accepted Accounting~~
1022		-	4 ~~Principles, as promulgated~~ by the ~~Financial Accounting~~
1023		-	5 ~~Standards Board,~~ or ~~the regulatory basis of accounting~~
1024		-	6 ~~identified in subsection (5).~~
1025		-	7 ~~(5) A credit union with total assets~~ of ~~less than~~
1026		-	8 ~~$10,000,000 that does not engage a licensed certified public~~
1027		-	9 ~~accountant or licensed certified public accounting firm to~~
1028		-	10 ~~perform an annual external independent audit of the~~ credit
1029		-	11 ~~union's financial statements pursuant~~ to the ~~standards in~~
1030		-	12 ~~paragraph (A)~~ of ~~subsection (3) is not required to determine~~
1031		-	13 its ~~allowance for loan losses in accordance with generally~~
1032		-	14 ~~accepted accounting principles. Any such~~ credit union ~~may~~
1033		-	15 ~~instead use any reasonable reserve methodology,~~ ~~including~~
1034		-	16 ~~incurred loss~~, ~~if it adequately covers known and probable loan~~
1035		-	17 ~~losses~~ and ~~complies with~~ the ~~Department's rule addressing loan~~
1036		-	18 ~~loss accounting procedures in 38 Ill.~~ ~~Adm. Code 190.70. Any~~
1037		-	19 ~~such credit union shall also have the option~~ of ~~engaging a~~
1038		-	20 ~~licensed certified public accountant~~ or ~~licensed certified~~
1039		-	21 ~~public accounting firm to perform a financial statement audit~~
1040		-	22 ~~in accordance with this regulatory basis of accounting rather~~
1041		-	23 ~~than the standards~~ in ~~paragraph (A) of subsection (3).~~
1042		-	24 ~~(6) A majority~~ of ~~the members of the supervisory committee~~
1043		-	25 ~~shall constitute a quorum.~~
1044		-	26 ~~(7) On an annual basis commencing January 1, 2015, the~~
	1060	+	HB2785- 30 -LRB104 07806 BAB 17852 b HB2785 - 30 - LRB104 07806 BAB 17852 b
	1061	+	HB2785 - 30 - LRB104 07806 BAB 17852 b
	1062	+	1 (4) Such certificate and a copy of the plan of merger or
	1063	+	2 consolidation agreed upon shall be mailed to the Secretary for
	1064	+	3 review. If the provisions of this Act have been complied with,
	1065	+	4 the certificate shall be approved by him, and returned to the
	1066	+	5 credit unions which are parties to the merger or consolidation
	1067	+	6 within 30 days. When so approved by the Secretary the
	1068	+	7 certificate shall constitute the Department's certificate of
	1069	+	8 approval of the merger or consolidation.
	1070	+	9 (5) Upon issuance of the certificate of approval, each
	1071	+	10 merging credit union which was absorbed shall cease operation.
	1072	+	11 Each party to the merger shall file the certificate of
	1073	+	12 approval with the Recorder or County Clerk of the county in
	1074	+	13 which the credit union has or had its principal office.
	1075	+	14 (6) Each credit union absorbed by the merger or
	1076	+	15 consolidation shall return to the Secretary the original
	1077	+	16 statement of incorporation, certificate of approval of
	1078	+	17 incorporation, and the bylaws of the credit union. The
	1079	+	18 surviving credit union shall continue its operation under its
	1080	+	19 existing certificate of approval, articles of incorporation,
	1081	+	20 and the bylaws or if a new credit union has been formed, under
	1082	+	21 the new certificate of approval, articles of incorporation,
	1083	+	22 and bylaws.
	1084	+	23 (7) All rights of membership in and any obligation or
	1085	+	24 liability of any member to any credit union which is party to a
	1086	+	25 consolidation or merger are continued in the surviving or new
	1087	+	26 credit union without reservation or diminution.
1045	1088
1046	1089
1047	1090
1048	1091
1049	1092
1050		-	HB2785 ~~Engrossed~~ - 30 - LRB104 07806 BAB 17852 b
	1093	+	HB2785 - 30 - LRB104 07806 BAB 17852 b
1051	1094
1052	1095
1053		-	HB2785 Engrossed- 31 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 31 - LRB104 07806 BAB 17852 b
1054		-	HB2785 Engrossed - 31 - LRB104 07806 BAB 17852 b
1055		-	1 members of the supervisory committee shall receive training
1056		-	2 related to their statutory duties. Supervisory committee
1057		-	3 members may receive the training through internal credit union
1058		-	4 training, external training offered by the credit union's
1059		-	5 retained auditors, trade associations, vendors, regulatory
1060		-	6 agencies, or any other sources or on-the-job experience, or a
1061		-	7 combination of those activities. The training may be received
1062		-	8 through any medium, including, but not limited to,
1063		-	9 conferences, workshops, audit closing meetings, seminars,
1064		-	10 teleconferences, webinars, and other Internet-based delivery
1065		-	11 channels.
1066		-	12 (Source: P.A. 101-81, eff. 7-12-19; 102-496, eff. 8-20-21;
1067		-	13 102-774, eff. 5-13-22.)
1068		-	14 (205 ILCS 305/63) (from Ch. 17, par. 4464)
1069		-	15 Sec. 63. Merger and consolidation.
1070		-	16 (1) Any two or more credit unions, regardless of whether
1071		-	17 or not they have the same common bond, may merge or consolidate
1072		-	18 into a single credit union. A merger or consolidation may be
1073		-	19 with a credit union organized under the laws of this State or
1074		-	20 of another state or of the United States and is subject to the
1075		-	21 approval of the Secretary. It must be made on such terms as
1076		-	22 have been agreed upon by a vote of a majority of the directors
1077		-	23 present at a meeting of the board of directors of each credit
1078		-	24 union at which a quorum is present, and approved by an
1079		-	25 affirmative vote of a majority of the members of the merging
	1096	+	HB2785- 31 -LRB104 07806 BAB 17852 b HB2785 - 31 - LRB104 07806 BAB 17852 b
	1097	+	HB2785 - 31 - LRB104 07806 BAB 17852 b
1080	1098
1081	1099
1082	1100
1083	1101
1084	1102
1085		-	HB2785 Engrossed - 31 - LRB104 07806 BAB 17852 b
1086		-
1087		-
1088		-	HB2785 Engrossed- 32 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 32 - LRB104 07806 BAB 17852 b
1089		-	HB2785 Engrossed - 32 - LRB104 07806 BAB 17852 b
1090		-	1 credit union being absorbed present at a meeting, either in
1091		-	2 person or by proxy, duly called for that purpose, except as
1092		-	3 hereinafter specified. Notice of the meeting stating the
1093		-	4 purpose must be sent by the secretary Secretary of each
1094		-	5 merging credit union being absorbed to each member by mail or
1095		-	6 electronic record as authorized by Section 10.2 of this Act at
1096		-	7 least 45 but no more than 90 days before the date of the
1097		-	8 meeting, except as specified in this Act.
1098		-	9 (1.5) If the Secretary determines the merging credit union
1099		-	10 is not yet in danger of insolvency but supervisory concerns
1100		-	11 exist as described in this paragraph (1.5), and upon agreement
1101		-	12 of the boards of directors of the merging and continuing
1102		-	13 credit unions as confirmed by a majority vote of the directors
1103		-	14 present at a meeting of each board at which a quorum is
1104		-	15 present, the Secretary may permit the merger to become
1105		-	16 effective without (i) an affirmative vote of the membership of
1106		-	17 the merging credit union otherwise required by paragraph (1)
1107		-	18 of Section 63, (ii) adherence to the merging credit union
1108		-	19 membership meeting notice requirement set forth in subsection
1109		-	20 (1) of Section 63, or (iii) both. For the avoidance of doubt,
1110		-	21 if supervisory concerns exist, the Secretary and both credit
1111		-	22 unions may agree to conduct the merging credit union
1112		-	23 membership meeting, but on a timeline shorter than that
1113		-	24 prescribed in subsection (1) of Section 63. Supervisory
1114		-	25 concerns supporting such a waiver or adjustment of the merging
1115		-	26 credit union membership notice and voting process include,
1116		-
1117		-
1118		-
1119		-
1120		-
1121		-	HB2785 Engrossed - 32 - LRB104 07806 BAB 17852 b
1122		-
1123		-
1124		-	HB2785 Engrossed- 33 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 33 - LRB104 07806 BAB 17852 b
1125		-	HB2785 Engrossed - 33 - LRB104 07806 BAB 17852 b
1126		-	1 without limitation, abandonment of management or officials, or
1127		-	2 both, of the merging credit union and the inability to find
1128		-	3 suitable replacements; material loss of sponsor support;
1129		-	4 serious and persistent recordkeeping problems or deficiencies;
1130		-	5 or sustained material decline in financial condition supported
1131		-	6 by at least 12 months of historical data that reflects the
1132		-	7 merging credit union's net worth is declining at a rate that
1133		-	8 will take it under 2% net worth within 18 months.
1134		-	9 (2) One of the merging credit unions may continue after
1135		-	10 the merger or consolidation either as a surviving credit union
1136		-	11 retaining its identity or as a new credit union as has been
1137		-	12 agreed upon under the terms of the merger. At least 9 members
1138		-	13 of the new proposed credit union must apply to the Department
1139		-	14 for permission to organize the new credit union. The same
1140		-	15 procedure shall be followed as provided for the organization
1141		-	16 of a new credit union.
1142		-	17 (3) After approval by the members of the credit union
1143		-	18 which is to be absorbed by the merger or consolidation, the
1144		-	19 chairman or president and the secretary of each credit union
1145		-	20 shall execute a certificate of merger or consolidation, which
1146		-	21 shall set forth all of the following:
1147		-	22 (a) The time and place of the meeting of each board of
1148		-	23 directors at which the plan was agreed upon;
1149		-	24 (b) The vote in favor of the adoption of the plan;
1150		-	25 (c) A copy of each resolution or other action by which
1151		-	26 the plan was agreed upon;
1152		-
1153		-
1154		-
1155		-
1156		-
1157		-	HB2785 Engrossed - 33 - LRB104 07806 BAB 17852 b
1158		-
1159		-
1160		-	HB2785 Engrossed- 34 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 34 - LRB104 07806 BAB 17852 b
1161		-	HB2785 Engrossed - 34 - LRB104 07806 BAB 17852 b
1162		-	1 (d) The time and place of the meeting of the members of
1163		-	2 the absorbed credit union at which the plan agreed upon
1164		-	3 was approved; and,
1165		-	4 (e) The vote by which the plan was approved by the
1166		-	5 members of the absorbed credit union.
1167		-	6 (4) Such certificate and a copy of the plan of merger or
1168		-	7 consolidation agreed upon shall be mailed to the Secretary for
1169		-	8 review. If the provisions of this Act have been complied with,
1170		-	9 the certificate shall be approved by him, and returned to the
1171		-	10 credit unions which are parties to the merger or consolidation
1172		-	11 within 30 days. When so approved by the Secretary the
1173		-	12 certificate shall constitute the Department's certificate of
1174		-	13 approval of the merger or consolidation.
1175		-	14 (5) Upon issuance of the certificate of approval, each
1176		-	15 merging credit union which was absorbed shall cease operation.
1177		-	16 Each party to the merger shall file the certificate of
1178		-	17 approval with the Recorder or County Clerk of the county in
1179		-	18 which the credit union has or had its principal office.
1180		-	19 (6) Each credit union absorbed by the merger or
1181		-	20 consolidation shall return to the Secretary the original
1182		-	21 statement of incorporation, certificate of approval of
1183		-	22 incorporation, and the bylaws of the credit union. The
1184		-	23 surviving credit union shall continue its operation under its
1185		-	24 existing certificate of approval, articles of incorporation,
1186		-	25 and the bylaws or if a new credit union has been formed, under
1187		-	26 the new certificate of approval, articles of incorporation,
1188		-
1189		-
1190		-
1191		-
1192		-
1193		-	HB2785 Engrossed - 34 - LRB104 07806 BAB 17852 b
1194		-
1195		-
1196		-	HB2785 Engrossed- 35 -LRB104 07806 BAB 17852 b HB2785 Engrossed - 35 - LRB104 07806 BAB 17852 b
1197		-	HB2785 Engrossed - 35 - LRB104 07806 BAB 17852 b
1198		-	1 and bylaws.
1199		-	2 (7) All rights of membership in and any obligation or
1200		-	3 liability of any member to any credit union which is party to a
1201		-	4 consolidation or merger are continued in the surviving or new
1202		-	5 credit union without reservation or diminution.
1203		-	6 (8) A pending action or other judicial proceeding to which
1204		-	7 any of the consolidating or merging credit unions is a party
1205		-	8 does not abate by reason of the consolidation or merger.
1206		-	9 (Source: P.A. 101-567, eff. 8-23-19.)
1207		-
1208		-
1209		-
1210		-
1211		-
1212		-	HB2785 Engrossed - 35 - LRB104 07806 BAB 17852 b
	1103	+	HB2785 - 31 - LRB104 07806 BAB 17852 b