2023 Illinois Compiled Statutes › Chapter 205 - FINANCIAL REGULATION › 205 ILCS 305/ - Illinois Credit Union Act.

(205 ILCS 305/1) (from Ch. 17, par. 4401)
Sec. 1. 
		
		This Act may be cited as the
Illinois Credit Union Act.
(Source: P.A. 86-1475.)
(205 ILCS 305/1.1) (from Ch. 17, par. 4402)
Sec. 1.1. Definitions.
Credit Union - The term "credit union" means
a cooperative, non-profit association, incorporated under this Act,
under the laws of the United States of America or under the laws
of another state, for the purposes of encouraging thrift among
its members, creating a source of credit at a reasonable rate of
interest, and providing an opportunity for its members to use
and control their own money in order to improve their economic and
social conditions. The membership of a credit union shall consist
of a group or groups each having a common
 bond as set forth in this Act.
Common Bond - The term "common bond" refers to groups of people
who meet one of the following qualifications:
(1) Persons belonging to a specific association,     group or organization, such as a church, labor union, club or society and members of their immediate families which shall include any relative by blood or marriage or foster and adopted children.
(2) Persons who reside in a reasonably compact and     well defined neighborhood or community, and members of their immediate families which shall include any relative by blood or marriage or foster and adopted children.
(3) Persons who have a common employer or who are     members of an organized labor union or an organized occupational or professional group within a defined geographical area, and members of their immediate families which shall include any relative by blood or marriage or foster and adopted children.
Shares - The term "shares" or "share accounts" means any form of shares
issued by a credit union and established by a member in accordance with
standards specified by a credit union, including but not limited to common
shares, share draft accounts, classes of shares, share certificates,
special purpose share accounts, shares issued in trust, custodial accounts,
and individual retirement accounts or other plans established pursuant to
Section 401(d) or (f) or Section 408(a) of the Internal Revenue Code, as now
or hereafter amended, or similar provisions of any tax laws of the United
States that may hereafter exist.
Credit Union Organization - The term "credit union organization" means
any organization established to serve the needs of credit unions, the business
of which relates to the daily operations of credit unions.
Department - The term "Department" means the Illinois Department of Financial and Professional Regulation.
Secretary - The term "Secretary" means the Secretary
of Financial and Professional Regulation or a person authorized by the Secretary or this Act to act in the Secretary's stead.
Division of Financial Institutions - The term "Division of Financial Institutions" means the Division of Financial Institutions of the Department of Financial and Professional Regulation.
Director - The term "Director of Financial Institutions" means the Director of the Division of Financial Institutions of the Department of Financial and Professional Regulation.
Office - The term "office" means the Division of Financial Institutions of the Department of Financial and Professional Regulation.
NCUA - The term "NCUA" means the National Credit Union Administration, an
agency of the United States Government charged with the supervision of
credit unions chartered under the laws of the United States of America.
Central Credit Union - The term "central credit union" means a credit union
incorporated primarily to receive shares from and make loans to credit unions
and directors, officers, committee members and employees of credit unions.
A central credit union may also accept as members persons who were members
of credit unions which were liquidated and persons from occupational groups
not otherwise served by another credit union.
Corporate Credit Union - The term "corporate credit union" means a credit
union which is a cooperative, non-profit association, the membership of
which is limited primarily to other credit unions.
Insolvent - "Insolvent" means the condition that results when
the total of all liabilities and shares exceeds net assets of the credit union.
Danger of insolvency - For purposes of Section 61, a credit union is in
"danger of insolvency" if its net worth to
asset ratio falls below 2%. In calculating the danger of insolvency ratio,
secondary
capital shall be excluded. For purposes of Section 61, a credit union is also
in "danger of
insolvency" if the Department is unable to
ascertain, upon examination, the true financial
condition of the credit union.
Net Worth - "Net worth" means the retained earnings balance of the credit
union, as determined under generally accepted accounting principles, and forms
of secondary capital approved by the Secretary and the Director pursuant to rulemaking.
Charitable Donation Account - The term "charitable donation account" means an account owned by a credit union that is held in a segregated custodial account or special purpose entity and specifically identified as a charitable donation account whereby, no less frequently than every 5 years and upon termination of the account, at least 51% of the total return on assets in the account is distributed to one or more charitable organizations or non-profit entities.
(Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14.)
(205 ILCS 305/2) (from Ch. 17, par. 4403)
Sec. 2. Organization procedure.
(1) Any 9 or more persons of legal age,
the majority of whom shall be residents of the State of Illinois, who have
a common bond referred to in Section 1.1 may organize a credit union or
a central credit union by complying with this Section.
(2) The subscribers shall execute in duplicate Articles of Incorporation
and agree to the terms thereof, which Articles shall state:
(a) The name, which shall include the words "credit     union" and which shall not be the same as that of any other existing credit union in this state, and the location where the proposed credit union is to have its principal place of business;
(b) The common bond of the members of the credit     union;
(c) The par value of the shares of the credit union,     which must be at least $1;
(d) The names, addresses and Social Security numbers     of the subscribers to the Articles of Incorporation, and the number and the value of shares subscribed to by each;
(e) That the credit union may exercise such     incidental powers as are necessary or requisite to enable it to carry on effectively the purposes for which it is incorporated, and those powers which are inherent in the credit union as a legal entity;
(f) That the existence of the credit union shall be     perpetual.
(3) The subscribers shall prepare and adopt bylaws for the general government
of the credit union, consistent with this Act, and execute same in duplicate.
(4) The subscribers shall forward the articles of incorporation and the
bylaws to the Secretary in duplicate, along with the required charter fee.
If they conform to the law, and such rules and regulations as the Secretary and the Director
may prescribe, if the Secretary determines that a common bond exists, and
that it is economically advisable to organize the credit union, he or she shall
within 60 days issue a certificate of approval attached to the articles of incorporation
and return a copy of the bylaws
and the articles of incorporation to the applicants or their representative, which shall
be preserved in the permanent files of the credit union. The subscribers
shall file the certificate of approval, with the articles of incorporation
attached, in the office of the recorder (or, if
there is no recorder, in the office of the county
clerk) of the county in which the
credit union is to locate its principal place of business. The
recorder or the county
clerk, as the case may be, shall accept
and record the documents if they are accompanied by the proper fee. When the documents
are so recorded, the credit union is incorporated under this Act.
(5) The subscribers for a credit union charter shall not transact any
business until the certificate of approval has been received.
(Source: P.A. 100-361, eff. 8-25-17.)
(205 ILCS 305/3) (from Ch. 17, par. 4404)
Sec. 3. Form of articles and bylaws. The Secretary shall provide, at no
charge, a form of articles of incorporation and a form of bylaws which may
be used by credit union incorporators for their guidance.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/4) (from Ch. 17, par. 4405)
Sec. 4. Amendments to articles of incorporation and bylaws. Amendments
to the articles of incorporation or bylaws may be made by the members
at any regular or special meeting, if the proposed amendment is set forth
in the call for the meeting and is approved by a majority of the members
present at a meeting at which a quorum is present. Amendments to the articles of incorporation or bylaws
may also be made by the board of directors at any regular or special meeting,
if the proposed amendment is set forth in the call of the meeting and approved
by at least two thirds of the directors present at a meeting at which a
quorum is present. A report shall be made to the members at the next annual
meeting of any amendments to the articles of incorporation or bylaws adopted by the board of directors.
Any amendment to the articles of incorporation or bylaws of a credit union
shall be approved by the Secretary before the amendment is effective. The Secretary
 shall approve or disapprove of any amendments within 60 days after
submission to him or her.
(Source: P.A. 99-614, eff. 7-22-16.)
(205 ILCS 305/5) (from Ch. 17, par. 4406)
Sec. 5. 
		Place of business.
(1) A credit union may change its principal
place of business within this State upon 45 days prior written notice
to the
Department, provided that a
credit union with a neighborhood or community common bond may not relocate its
principal place of business outside of its neighborhood or community.
(2) A credit union may share office space with one or more credit unions
and contract with any person, firm or corporation, including another credit
union, to provide facilities or personnel.
(Source: P.A. 81-329; 91-131, eff. 7-16-99.)
(205 ILCS 305/6) (from Ch. 17, par. 4407)
Sec. 6. 
		Fiscal Year. 
		The fiscal year of each credit union organized under
this Act shall end on December 31 of each year.
(Source: P.A. 81-329.)
(205 ILCS 305/7) (from Ch. 17, par. 4408)
Sec. 7. Reciprocity; out-of-state credit unions.
(1) A credit union organized
and duly chartered as a credit union in another state shall be permitted
to conduct business as a credit union in this State if and so long as a credit union chartered
under the laws of this State is permitted to do business in such other state,
provided that:
(a) The credit union shall register with the office     prior to operating in this State, on a form specified by the Secretary.
(b) The credit union may be required to pay a     registration fee in accordance with rules promulgated by the Secretary and the Director.
(c) The credit union shall comply with rules     promulgated by the Secretary concerning the operation of out-of-state  credit unions in this State.
(d) The credit union shall not conduct business in     Illinois on terms that are less restrictive than the standards applicable to its operation in its home chartering state. In every instance with respect to its activities and operations in Illinois, the credit union shall comply with applicable Illinois law.
(e) Permission to operate in the State may be revoked     by the Secretary or the Director if the credit union engages in any activity in the State that would constitute (i) a violation of this Act or other applicable law, (ii) a violation of any rule adopted in accordance with this Act or other applicable law, (iii) a violation of any order of the Secretary or Director issued under his or her authority under this Act, or (iv) an unsafe or unsound practice in the discretion of the Secretary or Director.
(1.5)    The failure of a credit union chartered in another state to register with the Secretary shall not impair the collectability of  a loan made to a resident of this State.
(2) It is intended that the legal existence of credit unions chartered
under this Act be recognized beyond the limits
of this State and that, subject to any reasonable registration requirements,
any credit union transacting business outside of this State be granted the
protection of full faith and credit under Section 1 of Article IV of the
Constitution of the United States.
(Source: P.A. 99-149, eff. 1-1-16.)
(205 ILCS 305/8) (from Ch. 17, par. 4409)
Sec. 8. Secretary's powers and duties. Credit unions are regulated by the
Department. The Secretary in executing the powers and discharging the duties
vested by law in the Department has the following powers and duties:
(1) To exercise the rights, powers, and duties set     forth in this Act or any related Act. The Director shall oversee the functions of the Division and report to the Secretary, with respect to the Director's exercise of any of the rights, powers, and duties vested by law in the Secretary under this Act. All references in this Act to the Secretary shall be deemed to include the Director, as a person authorized by the Secretary or this Act to assume responsibility for the oversight of the functions of the Department relating to the regulatory supervision of credit unions under this Act.
(2) To prescribe rules and regulations for the     administration of this Act. The provisions of the Illinois Administrative Procedure Act are hereby expressly adopted and incorporated herein as though a part of this Act, and shall apply to all administrative rules and procedures of the Department under this Act.
(3) To direct and supervise all the administrative     and technical activities of the Department including the employment of a Credit Union Supervisor who shall have knowledge in the theory and practice of, or experience in, the operations or supervision of financial institutions, preferably credit unions, and such other persons as are necessary to carry out his functions. The Secretary shall ensure that all examiners appointed or assigned to examine the affairs of State-chartered credit unions possess the necessary training and continuing education to effectively execute their jobs.
(4) To issue cease and desist orders when in the     opinion of the Secretary, a credit union is engaged or has engaged, or the Secretary has reasonable cause to believe the credit union is about to engage, in an unsafe or unsound practice, or is violating or has violated or the Secretary has reasonable cause to believe is about to violate a law, rule, or regulation or any condition imposed in writing by the Department.
(5) To suspend from office and to prohibit from     further participation in any manner in the conduct of the affairs of any credit union any director, officer, or committee member who has committed any violation of a law, rule, or regulation or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty as such director, officer, or committee member, when the Secretary has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members.
(6) To assess a civil penalty against a credit union     provided that:
(A) the Secretary reasonably determines, based on         objective facts and an accurate assessment of applicable legal standards, that the credit union has:
(i) committed a violation of this Act, any             rule adopted in accordance with this Act, or any order of the Secretary issued pursuant to his or her authority under this Act; or
(ii) engaged or participated in any unsafe or             unsound practice;
(B)  before a civil penalty is assessed under         this item (6), the Secretary must make the further reasonable determination, based on objective facts and an accurate assessment of applicable legal standards, that the credit union's action constituting a violation under subparagraph (i) of paragraph (A) of this item (6) or an unsafe and unsound practice under subparagraph (ii) of paragraph (A) of this item (6):
(i)  directly resulted in a substantial and             material financial loss or created a reasonable probability that a substantial and material financial loss will directly result; or
(ii)  constituted willful misconduct or a             material breach of fiduciary duty of any director, officer, or committee member of the credit union;
Material financial loss, as referenced in this         paragraph (B), shall be assessed in light of surrounding circumstances and the relative size and nature of the financial loss or probable financial loss.  Certain benchmarks shall be used in determining whether financial loss is material, such as a percentage of total assets or total gross income for the immediately preceding 12-month period.  Absent compelling and extraordinary circumstances, no civil penalty shall be assessed, unless the financial loss or probable financial loss is equal to or greater than either 1% of the credit union's total assets for the immediately preceding 12-month period, or 1% of the credit union's total gross income for the immediately preceding 12-month period, whichever is less;
(C)  before a civil penalty is assessed under         this item (6), the credit union must be expressly advised in writing of the:
(i) specific violation that could subject it             to a penalty under this item (6); and
(ii) specific remedial action to be taken             within a specific and reasonable time frame to avoid imposition of the penalty;
(D) civil penalties assessed under this item (6)         shall be remedial, not punitive, and reasonably tailored to ensure future compliance by the credit union with the provisions of this Act and any rules adopted pursuant to this Act;
(E) a credit union's failure to take timely         remedial action with respect to the specific violation may result in the issuance of an order assessing a civil penalty up to the following maximum amount, based upon the total assets of the credit union:
(i)   Credit unions with assets of less than             $10 million.............................................$1,000
(ii)  Credit unions with assets of at least             $10 million and less than $50 million...................$2,500
(iii) Credit unions with assets of at least             $50 million and less than $100 million..................$5,000
(iv) Credit unions with assets of at least             $100 million and less than $500 million................$10,000
(v)  Credit unions with assets of at least             $500 million and less than $1 billion..................$25,000
(vi) Credit unions with assets of $1 billion             and greater......................................$50,000; and
(F) an order assessing a civil penalty under this         item (6) shall take effect upon service of the order, unless the credit union makes a written request for a hearing under 38 Ill. Adm. Code 190.20 of the Department's rules for credit unions within 90 days after issuance of the order; in that event, the order shall be stayed until a final administrative order is entered.
This item (6) shall not apply to violations     separately addressed in rules as authorized under item (7) of this Section.
(7) Except for the fees established in this Act, to     prescribe, by rule and regulation, fees and penalties for preparing, approving, and filing reports and other documents; furnishing transcripts; holding hearings; investigating applications for permission to organize, merge, or convert; failure to maintain accurate books and records to enable the Department to conduct an examination; and taking supervisory actions.
(8) To destroy, in his discretion, any or all books     and records of any credit union in his possession or under his control after the expiration of three years from the date of cancellation of the charter of such credit unions.
(9) To make investigations and to conduct research     and studies and to publish some of the problems of persons in obtaining credit at reasonable rates of interest and of the methods and benefits of cooperative saving and lending for such persons.
(10) To authorize, foster, or establish experimental,     developmental, demonstration, or pilot projects by public or private organizations including credit unions which:
(a) promote more effective operation of credit         unions so as to provide members an opportunity to use and control their own money to improve their economic and social conditions; or
(b) are in the best interests of credit unions,         their members and the people of the State of Illinois.
(11) To cooperate in studies, training, or other     administrative activities with, but not limited to, the NCUA, other state credit union regulatory agencies and industry trade associations in order to promote more effective and efficient supervision of Illinois chartered credit unions.
(12)  Notwithstanding the provisions of this Section,     the      Secretary shall not:
(1) issue an order against a credit union         organized under this Act for unsafe or unsound banking practices solely because the entity provides or has provided financial services to a cannabis-related legitimate business;
(2) prohibit, penalize, or otherwise discourage a         credit union from providing financial services to a cannabis-related legitimate business solely because the entity provides or has provided financial services to a cannabis-related legitimate business;
(3) recommend, incentivize, or encourage a credit         union not to offer financial services to an account holder or to downgrade or cancel the financial services offered to an account holder solely because:
(A) the account holder is a manufacturer or             producer, or is the owner, operator, or employee of a cannabis-related legitimate business;
(B) the account holder later becomes an owner             or operator of a cannabis-related legitimate business; or
(C) the credit union was not aware that the             account holder is the owner or operator of a cannabis-related legitimate business; and
(4) take any adverse or corrective supervisory         action on a loan made to an owner or operator of:
(A) a cannabis-related legitimate business             solely because the owner or operator owns or operates a cannabis-related legitimate business; or
(B) real estate or equipment that is leased             to a cannabis-related legitimate business solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related legitimate business. (Source: P.A. 102-858, eff. 5-13-22; 103-154, eff. 6-30-23.)
(205 ILCS 305/9) (from Ch. 17, par. 4410)
Sec. 9. Reports and examinations.
(1) Credit unions shall report to
the Department on forms supplied by the Department, in accordance with a
schedule published by the Department. A recapitulation of the annual reports
shall be compiled and published annually by the Department, for the use
of the General Assembly, credit unions, various educational institutions
and other interested parties. A credit union which fails to file any report
when due shall pay to the Department a late filing fee for each
day the report is overdue as prescribed by rule. The Secretary may extend
the time for filing a
report.
(2) The Secretary may require special examinations of and special
financial reports from a credit union or a credit
union organization in which a credit union loans, invests, or delegates
substantially all
managerial duties and responsibilities when he determines that such
examinations
and reports are necessary to enable the Department
to determine the safety of a credit union's operation or its solvency.
The cost to the Department of the aforesaid special examinations shall be
borne by the credit union being examined as prescribed by rule.
(3) All credit unions incorporated under this Act shall be examined at
least biennially by the Department or, at the discretion of
the Secretary,
by a public accountant registered by the Department of Financial and Professional
Regulation. The costs of an examination shall be paid by the
credit union. The scope of all examinations by a public accountant shall
be at least equal to the examinations made by the Department. The examiners
shall have full access to, and may compel the production of, all the books,
papers, securities and accounts of any credit union. A special examination
shall be made by the Department or by a public accountant approved by the
Department upon written request of 5 or more members, who guarantee the
expense of the same. Any credit union refusing to submit to an examination
when ordered by the Department shall be reported to the Attorney General,
who shall institute proceedings to have its charter revoked.  If the Secretary
 determines that the examination of a credit
union is to be
conducted by a public accountant registered by the Department of Financial and
Professional Regulation and the examination is
done in conjunction
with the credit union's external independent audit of financial
statements, the requirements of this Section and subsection (3) of Section
34 shall be deemed met.
(3.5) Pursuant to Section 8, the Secretary shall adopt rules that ensure consistency and due process in the examination process. The Secretary may also establish guidelines that (i) define the scope of the examination process and (ii) clarify examination items to be resolved. The rules, formal guidance, interpretive letters, or opinions furnished to credit unions by the Secretary may be relied upon by the credit unions.
(4) A copy of the completed report of examination and a review comment
letter, if any, citing exceptions revealed during the examination, shall
be submitted to the credit union by the Department. A detailed report stating
the corrective actions taken by the board of directors on each exception
set forth in the review comment letter shall be filed with the Department
within 40 days after the date of the review comment letter, or as otherwise
directed by the Department. Any credit union through its officers, directors,
committee members or employees, which willfully provides fraudulent or
misleading information regarding the corrective actions taken on exceptions
appearing in a review comment letter may have its operations restricted to
the collection of principal and interest on loans outstanding and the
payment of normal expenses and salaries until all exceptions are corrected
and accepted by the Department.
(5) The Secretary may accept an examination from the National Credit Union Administration or a private insurer of share deposits approved by the Secretary instead of an examination conducted by the Department or by a public accountant registered by the Department pursuant to subsection (3). Acceptance of an examination from the National Credit Union Administration or an approved private insurer of share deposits shall only be permitted on an alternating basis with examinations that the Department or a registered public accountant conducts.
(Source: P.A. 102-558, eff. 8-20-21; 102-858, eff. 5-13-22.)
(205 ILCS 305/9.1)
Sec. 9.1. Disclosures of reports of examinations and confidential
supervisory information; limitations.
(1) Any report of examination, visitation, or investigation
prepared by the Secretary under this Act or by the state
regulatory authority charged with enforcing the Electronic Fund
Transfer Act or the Corporate Fiduciary Act or by the state
regulatory authority of another state that examines an office of
an Illinois credit union in that state, any document or record
prepared or obtained in connection with or relating to any
examination, visitation, or investigation, and any record
prepared or obtained by the Secretary to the extent that the record
summarizes or contains information derived from any report,
document, or record described in this subsection shall be deemed
"confidential supervisory information". Confidential supervisory
information shall not include any information or record routinely
prepared by a credit union and maintained in the ordinary course
of business or any information or record that is required to be
made publicly available pursuant to State or federal law or rule.
(2) Confidential supervisory information is privileged from
discovery and shall only be disclosed under the circumstances and
for the purposes set forth in this Section.
(3) Relevant confidential supervisory information may be
disclosed under a statute that by its terms or by rules
promulgated thereunder requires the disclosure of confidential
supervisory information other than by subpoena, summons,
warrant, or court
order; to the appropriate
law enforcement
authorities when the Secretary or the credit union reasonably believes the
credit union,
which the Secretary has caused to be examined, has been a victim of a crime;
to other agencies or entities having a
legitimate regulatory interest, including, but not limited to, a Federal Home Loan Bank; to the credit union's board,
officers, retained professionals, and insurers; to persons
seeking to merge with or purchase all or part of the assets of the credit
union; and where disclosure is otherwise required for the benefit of
the credit union. Disclosure of confidential supervisory
information to these persons does not constitute a waiver
of the legal privilege otherwise available with respect to the
information.
(4) A person to whom confidential supervisory information is
disclosed shall not further disseminate confidential supervisory
information.
(5) (a) Any person upon whom a demand for production of
confidential supervisory information is made, whether by
subpoena, order, or other judicial or administrative
process, must withhold production of the confidential
supervisory information and must notify the Secretary of
the demand, at which time the Secretary is authorized to
intervene for the purpose of enforcing the limitations of
this Section or seeking the withdrawal or termination of
the attempt to compel production of the confidential
supervisory information.
(b) Any request for discovery or disclosure of confidential
supervisory information, whether by subpoena, order, or
other judicial or administrative process, shall be made to
the Secretary, and the Secretary shall determine within 15
days whether to disclose the information pursuant to
procedures and standards that the Secretary shall
establish by rule. If the Secretary determines that such
information will not be disclosed, the Secretary's
decision shall be subject to judicial review under the
provisions of the Administrative Review Law, and venue
shall be in either Sangamon County or Cook County.
(c) Any court order that compels disclosure of confidential
supervisory information may be immediately appealed by the
Secretary and the order shall be automatically stayed
pending the outcome of the appeal.
(Source: P.A. 100-64, eff. 8-11-17.)
(205 ILCS 305/10) (from Ch. 17, par. 4411)
Sec. 10. Credit union records; member financial records.
(1) A credit union shall establish and maintain books, records, accounting
systems and procedures which accurately reflect its operations and which
enable the Department to readily ascertain the true financial condition
of the credit union and whether it is complying with this Act.
(2) A photostatic or photographic reproduction of any credit union records
shall be admissible as evidence of transactions with the credit union.
(3)(a) For the purpose of this Section, the term "financial records"
means any original, any copy, or any summary of (1) a document granting
signature authority over an account, (2) a statement, ledger card or other
record on any account which shows each transaction in or with respect to
that account, (3) a check, draft or money order drawn on a financial
institution or other entity or issued and payable by or through a financial
institution or other entity, or (4) any other item containing information
pertaining to any relationship established in the ordinary course of
business between a credit union and its member, including financial
statements or other financial information provided by the member.
(b) This Section does not prohibit:
(1) The preparation, examination, handling or     maintenance of any financial records by any officer, employee or agent of a credit union having custody of such records, or the examination of such records by a certified public accountant  engaged by the credit union to perform an independent audit.
(2) The examination of any financial records by or     the furnishing of financial records by a credit union to any officer, employee or agent of the Department, the National Credit Union Administration, Federal Reserve board or any insurer of share accounts for use solely in the exercise of his duties as an officer, employee or agent.
(3) The publication of data furnished from financial     records relating to members where the data cannot be identified to any particular customer of account.
(4) The making of reports or returns required under     Chapter 61 of the Internal Revenue Code of 1954.
(5) Furnishing information concerning the dishonor of     any negotiable instrument permitted to be disclosed under the Uniform Commercial Code.
(6) The exchange in the regular course of business of     (i) credit information between a credit union and other credit unions or financial institutions or commercial enterprises, directly or through a consumer reporting agency or (ii) financial records or information derived from financial records between a credit union and other credit unions or financial institutions or commercial enterprises for the purpose of conducting due diligence pursuant to a merger or a purchase or sale of assets or liabilities of the credit union.
(7) The furnishing of information to the appropriate     law enforcement authorities where the credit union reasonably believes it has been the victim of a crime.
(8) The furnishing of information pursuant to the     Revised Uniform Unclaimed Property Act.
(9) The furnishing of information pursuant to the     Illinois Income Tax Act and the Illinois Estate and Generation-Skipping Transfer Tax Act.
(10) The furnishing of information pursuant to the     federal Currency and Foreign Transactions Reporting Act, Title 31, United States Code, Section 1051 et sequentia.
(11) The furnishing of information pursuant to any     other statute which by its terms or by regulations promulgated thereunder requires the disclosure of financial records other than by subpoena, summons, warrant or court order.
(12) The furnishing of information in accordance with     the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Any credit union governed by this Act shall enter into an agreement for data exchanges with a State agency provided the State agency pays to the credit union a reasonable fee not to exceed its actual cost incurred.  A credit union providing information in accordance with this item shall not be liable to any account holder or other person for any disclosure of information to a State agency, for encumbering or surrendering any assets held by the credit union in response to a lien or order to withhold and deliver issued by a State agency, or for any other action taken pursuant to this item, including individual or mechanical errors, provided the action does not constitute gross negligence or willful misconduct. A credit union shall have no obligation to hold, encumber, or surrender assets until it has been served with a subpoena, summons, warrant, court or administrative order, lien, or levy.
(13) The furnishing of information to law enforcement     authorities, the Illinois Department on Aging and its regional administrative and provider agencies, the Department of Human Services Office of Inspector General, or public guardians: (i) upon subpoena by the investigatory entity or the guardian, or (ii) if there is suspicion by the credit union that a member who is an elderly person or person with a disability has been or may become the victim of financial exploitation. For the purposes of this item (13), the term: (i) "elderly person" means a person who is 60 or more years of age, (ii) "person with a disability" means a person who has or reasonably appears to the credit union to have a physical or mental disability that impairs his or her ability to seek or obtain protection from or prevent financial exploitation, and (iii) "financial exploitation" means tortious or illegal use of the assets or resources of an elderly person or person with a disability, and includes, without limitation, misappropriation of the elderly or disabled person's assets or resources by undue influence, breach of fiduciary relationship, intimidation, fraud, deception, extortion, or the use of assets or resources in any manner contrary to law. A credit union or person furnishing information pursuant to this item (13) shall be entitled to the same rights and protections as a person furnishing information under the Adult Protective Services Act and the Illinois Domestic Violence Act of 1986.
(14) The disclosure of financial records or     information as necessary to effect, administer, or enforce a transaction requested or authorized by the member, or in connection with:
(A) servicing or processing a financial product         or service requested or authorized by the member;
(B) maintaining or servicing a member's account         with the credit union; or
(C) a proposed or actual securitization or         secondary market sale (including sales of servicing rights) related to a transaction of a member.
Nothing in this item (14), however, authorizes the     sale of the financial records or information of a member without the consent of the member.
(15) The disclosure of financial records or     information as necessary to protect against or prevent actual or potential fraud, unauthorized transactions, claims, or other liability.
(16)(a) The disclosure of financial records or     information related to a private label credit program between a financial institution and a private label party in connection with that private label credit program. Such information is limited to outstanding balance, available credit, payment and performance and account history, product references, purchase information, and information related to the identity of the customer.
(b)(1) For purposes of this item (16), "private label     credit program" means a credit program involving a financial institution and a private label party that is used by a customer of the financial institution and the private label party primarily for payment for goods or services sold, manufactured, or distributed by a private label party.
(2) For purposes of this item (16), "private label     party" means, with respect to a private label credit program, any of the following: a retailer, a merchant, a manufacturer, a trade group, or any such person's affiliate, subsidiary, member, agent, or service provider.
(17)(a)   The furnishing of financial records of a     member to the Department to aid the Department's initial determination or subsequent re-determination of the member's eligibility for Medicaid and Medicaid long-term care benefits for long-term care services, provided that the credit union receives the written consent and authorization of the member, which shall:
(1)     have the member's signature notarized;
(2)    be signed by at least one witness who         certifies that he or she believes the member to be of sound mind and memory;
(3)    be tendered to the credit union at the         earliest practicable time following its execution, certification, and notarization;
(4)    specifically limit the disclosure of the         member's financial records to the Department; and
(5)    be in substantially the following form:
CUSTOMER CONSENT AND AUTHORIZATION
FOR RELEASE OF FINANCIAL RECORDS
I, ........................................, hereby authorize
(Name of Customer)
.............................................................
(Name of Financial Institution)
.............................................................
(Address of Financial Institution)
to disclose the following financial records:
any and all information concerning my deposit, savings, money market, certificate of deposit, individual retirement, retirement plan, 401(k) plan, incentive plan, employee benefit plan, mutual fund and loan accounts (including, but not limited to, any indebtedness or obligation for which I am a co-borrower, co-obligor, guarantor, or surety), and any and all other accounts in which I have an interest and any other information regarding me in the possession of the Financial Institution,
to the Illinois Department of Human Services or the Illinois Department of Healthcare and Family Services, or both ("the Department"), for the following purpose(s):
to aid in the initial determination or re-determination by the State of Illinois of my eligibility for Medicaid long-term care benefits, pursuant to applicable law.
I understand that this Consent and Authorization may be revoked by me in writing at any time before my financial records, as described above, are disclosed, and that this Consent and Authorization is valid until the Financial Institution receives my written revocation.  This Consent and Authorization shall constitute valid authorization for the Department identified above to inspect all such financial records set forth above, and to request and receive copies of such financial records from the Financial Institution (subject to such records search and reproduction reimbursement policies as the Financial Institution may have in place).  An executed copy of this Consent and Authorization shall be sufficient and as good as the original and permission is hereby granted to honor a photostatic or electronic copy of this Consent and Authorization.  Disclosure is strictly limited to the Department identified above and no other person or entity shall receive my financial records pursuant to this Consent and Authorization.  By signing this form, I agree to indemnify and hold the Financial Institution harmless from any and all claims, demands, and losses, including reasonable attorneys fees and expenses, arising from or incurred in its reliance on this Consent and Authorization. As used herein, "Customer" shall mean "Member" if the Financial Institution is a credit union.
....................... ......................
(Date)                  (Signature of Customer)
......................
......................
(Address of Customer)
......................
(Customer's birth date)
(month/day/year)
The undersigned witness certifies that ................., known to me to be the same person whose name is subscribed as the customer to the foregoing Consent and Authorization, appeared before me and the notary public and acknowledged signing and delivering the instrument as his or her free and voluntary act for the uses and purposes therein set forth.  I believe him or her to be of sound mind and memory.  The undersigned witness also certifies that the witness is not an owner, operator, or relative of an owner or operator of a long-term care facility in which the customer is a patient or resident.
Dated: ................. ......................
(Signature of Witness)
......................
(Print Name of Witness)
......................
......................
(Address of Witness)
State of Illinois)
) ss.
County of .......)
The undersigned, a notary public in and for the above county and state, certifies that .........., known to me to be the same person whose name is subscribed as the customer to the foregoing Consent and Authorization, appeared before me together with the witness, .........., in person and acknowledged signing and delivering the instrument as the free and voluntary act of the customer for the uses and purposes therein set forth.
Dated:........................................................
Notary Public:................................................
My commission expires:........................................
(b)   In no event shall the credit union distribute     the member's financial records to the long-term care facility from which the member seeks initial or continuing residency or long-term care services.
(c)   A credit union providing financial records of a     member in good faith relying on a consent and authorization executed and tendered in accordance with this item (17) shall not be liable to the member or any other person in relation to the credit union's disclosure of the member's financial records to the Department.  The member signing the consent and authorization shall indemnify and hold the credit union harmless that relies in good faith upon the consent and authorization and incurs a loss because of such reliance. The credit union recovering under this indemnification provision shall also be entitled to reasonable attorney's fees and the expenses of recovery.
(d)   A credit union shall be reimbursed by the     member for all costs reasonably necessary and directly incurred in searching for, reproducing, and disclosing a member's financial records required or requested to be produced pursuant to any consent and authorization executed under this item (17). The requested financial records shall be delivered to the Department within 10 days after receiving a properly executed consent and authorization or at the earliest practicable time thereafter if the requested records cannot be delivered within 10 days, but delivery may be delayed until the final reimbursement of all costs is received by the credit union. The credit union may honor a photostatic or electronic copy of a properly executed consent and authorization.
(e)   Nothing in this item  (17) shall impair,     abridge, or abrogate the right of a member to:
(1)   directly disclose his or her financial         records to the Department or any other person; or
(2)   authorize his or her attorney or duly         appointed agent to request and obtain the member's financial records and disclose those financial records to the Department.
(f)   For purposes of this item (17), "Department"     means the Department of Human Services and the Department of Healthcare and Family Services or any successor administrative agency of either agency.
(18) The furnishing of the financial records of a     member to an appropriate law enforcement authority, without prior notice to or consent of the member, upon written request of the law enforcement authority, when reasonable suspicion of an imminent threat to the personal security and safety of the member exists that necessitates an expedited release of the member's financial records, as determined by the law enforcement authority. The law enforcement authority shall include a brief explanation of the imminent threat to the member in its written request to the credit union. The written request shall reflect that it has been authorized by a supervisory or managerial official of the law enforcement authority.  The decision to furnish the financial records of a member to a law enforcement authority shall be made by a supervisory or managerial official of the credit union. A credit union providing information in accordance with this item (18) shall not be liable to the member or any other person for the disclosure of the information to the law enforcement authority.
(c) Except as otherwise provided by this Act, a credit union may not
disclose to any person, except to the member
or his duly authorized agent, any financial records relating to that member
of the credit union unless:
(1) the member has authorized disclosure to the     person;
(2) the financial records are disclosed in response     to a lawful subpoena, summons, warrant, citation to discover assets, or court order that meets the requirements of subparagraph (3)(d)  of this Section; or
(3) the credit union is attempting to collect an     obligation owed to the credit union and the credit union complies with the provisions of Section 2I of the Consumer Fraud and Deceptive Business Practices Act.
(d) A credit union shall disclose financial records under item (3)(c)(2) of this Section pursuant to a lawful subpoena, summons, warrant, citation to discover assets, or
court order only after the credit union sends a copy of the subpoena, summons,
warrant, citation to discover assets, or court order to the person establishing the relationship with
the credit union, if living, and otherwise the person's personal representative,
if known, at the person's last known address by first class mail, postage prepaid, through a third-party commercial carrier or courier with delivery charge fully prepaid, by hand delivery, or by electronic delivery at an email address on file with the credit union (if the person establishing the relationship with the credit union has consented to receive electronic delivery and, if the person establishing the relationship with the credit union is a consumer, the person has consented under the consumer consent provisions set forth in Section 7001 of Title 15 of the United States Code),
unless the credit union is specifically prohibited from notifying the person
by order of court or by applicable State or federal law. In the case
of a grand jury subpoena, a credit union shall not mail a copy of a subpoena
to any person pursuant to this subsection if the subpoena was issued by a grand
jury under the Statewide Grand Jury Act or notifying the
person would constitute a violation of the federal Right to Financial
Privacy Act of 1978.
(e)(1) Any officer or employee of a credit union who knowingly and willfully
 furnishes financial records in violation of this Section is guilty of
a business offense and upon conviction thereof shall be fined not more than
$1,000.
(2) Any person who knowingly and willfully induces or attempts to induce
any officer or employee of a credit union to disclose financial records
in violation of this Section is guilty of a business offense and upon
conviction thereof shall be fined not more than $1,000.
(f) A credit union shall be reimbursed for costs which are reasonably
necessary and which have been directly incurred in searching for,
reproducing or transporting books, papers, records or other data of a
member required or requested to be produced pursuant to a lawful subpoena,
summons, warrant, citation to discover assets, or court order.  The Secretary and the Director may determine, by rule, the
rates and
conditions under which payment shall be made.  Delivery of requested documents
may be delayed until final reimbursement of all costs is received.
(Source: P.A. 101-81, eff. 7-12-19; 102-873, eff. 5-13-22.)
(205 ILCS 305/10.1)
Sec. 10.1. Retention of records.
(a) Each credit union shall retain its records in a manner consistent with prudent business practices and in accordance with this Act and applicable State or federal laws, rules, and regulations. The record retention system utilized must be able to accurately produce such records.
(b) Except where a retention period is required by State or federal laws, rules, or regulations, a credit union may destroy its records subject to the considerations set forth in subsection (a). In the destruction of records, the credit union shall take reasonable precautions to ensure the confidentiality of information in the records.
(c) No liability shall
accrue against the credit union, the Secretary, or this State for
the destruction of records under the authority of this Section.
(Source: P.A. 102-873, eff. 5-13-22.)
(205 ILCS 305/10.2)
Sec. 10.2. Electronic records.
(a)  As used in this Section, "electronic" and "electronic record" have the meanings given to those terms in the Uniform Electronic Transactions Act.
(b) If a provision of this Act requires information to be written or delivered in writing, or provides for certain consequences if it is not, an electronic record or electronic delivery satisfies that rule of law.
(c) If a provision of this Act requires a policy, record, notice or other document or information to be mailed or otherwise furnished, posted, or disclosed by a credit union, electronic delivery or distribution satisfies that rule of law. Policies and notifications of general interest to or impact on the membership may be posted on a credit union's website or disclosed in membership newsletters or account statements, in addition to, or in lieu of, any other methods of notification or distribution specified in this Act.
(Source: P.A. 101-567, eff. 8-23-19; 102-38, eff. 6-25-21.)
(205 ILCS 305/11) (from Ch. 17, par. 4412)
Sec. 11. Board of credit union advisors.
(1) There shall be a board of credit union advisors
 who shall consult with, advise, and make recommendations
to the Governor and to the Secretary on matters pertaining to credit unions.
The board of credit union advisors may also advise the Governor and Secretary
upon appointments and employment of personnel in connection with the supervision
and regulation of credit unions.
(2) The board of credit union advisors shall consist of 7 persons with
credit union experience who shall be appointed by the Governor. Appointments
to the board shall be for terms of 3 years each, except that initial appointments
shall be: 3 members for 3 years each; 3 members for 2 years each and 1 member
for 1 year.
(3) All members shall serve until their successors have been appointed
and qualified. In the event a vacancy occurs, the appointment to fill such
vacancy shall be made in the manner of original appointment, but only for
the unexpired term.
(4) The chairman of the board of credit union advisors shall be elected
annually by a majority of the board members at the first meeting of the board each
year.
(5) The initial meeting of the board shall be called by the Secretary and
thereafter regular meetings shall be held at such times and places as shall
be determined by the Governor, chairman, or Secretary, but at least once each
calendar year. Special meetings may be called either by the Governor, the Secretary, the Director,
the chairman, or by written notice sent by 2 or more members of the board.
A majority of the members of the board shall constitute a quorum.
(6) The Department shall reimburse the board members for their actual
and necessary travel and subsistence expenses.
(Source: P.A. 100-361, eff. 8-25-17.)
(205 ILCS 305/12) (from Ch. 17, par. 4413)
Sec. 12. Regulatory fees.
(1) For the fiscal year beginning July 1, 2007, a credit union regulated by the Department shall pay a regulatory
fee to the Department based upon its total assets as shown by its Year-end
Call Report at the following rates or at a lesser rate established by the Secretary in a manner proportionately consistent with the following rates and sufficient to fund the actual administrative and operational expenses of the Department's Credit Union Section pursuant to subsection (4) of this Section:
TOTAL ASSETS
REGULATORY FEE
$25,000 or less ..........
$100
Over $25,000 and not over
$100,000 ...............
$100 plus $4 per
$1,000 of assets in excess of
$25,000
Over $100,000 and not over
$200,000 ...............
$400 plus $3 per
$1,000 of assets in excess of
$100,000
Over $200,000 and not over
$500,000 ...............
$700 plus $2 per
$1,000 of assets in excess of
$200,000
Over $500,000 and not over
$1,000,000 ..............
$1,300 plus $1.40
per $1,000 of assets in excess
of $500,000
Over $1,000,000 and not
over $5,000,000...........
$2,000 plus $0.50
per $1,000 of assets in
excess of $1,000,000
Over $5,000,000 and not
over $30,000,000 ..........
$4,540 plus $0.397
per $1,000 of assets
in excess of $5,000,000
Over $30,000,000 and not over
$100,000,000.............
$14,471 plus $0.34
per $1,000 of assets
in excess of $30,000,000
Over $100,000,000 and not
over $500,000,000 .........
$38,306 plus $0.17
per $1,000 of assets
in excess of  $100,000,000
Over $500,000,000 .........
$106,406 plus $0.056
per $1,000 of assets
in excess of $500,000,000
(2) The Secretary shall review the regulatory fee schedule in subsection
(1) and the projected earnings on those fees on an annual
basis
and adjust the fee schedule no more than 5% annually
if necessary to defray the estimated administrative and operational expenses of
the Credit Union Section of the Department as defined in subsection (5).  However, the fee schedule shall not be increased if the amount remaining in the Credit Union Fund at the end of any fiscal year is greater than 25% of the total actual and operational expenses incurred by the State in administering and enforcing the Illinois Credit Union Act and other laws, rules, and regulations as may apply to the administration and enforcement of the foregoing laws, rules, and regulations as amended from time to time for the preceding fiscal year.  The regulatory fee for the next fiscal year shall be calculated by the Secretary based on the credit union's total assets as of December 31 of the preceding calendar year. The Secretary shall provide credit
unions with written notice of any adjustment made in the regulatory fee
schedule.
(3) A credit union shall
pay to the Department a regulatory fee
in quarterly installments equal to one-fourth of the regulatory fee due in accordance with the regulatory fee schedule in
subsection (1), on the basis of assets as
of the Year-end Call Report of the preceding calendar year.  The total annual regulatory fee shall
not be less than
$100 or more than $210,000, provided that the
regulatory fee cap of $210,000 
shall be adjusted to incorporate the same percentage increase as the Secretary
makes in the regulatory fee schedule from time to time under subsection (2).
No regulatory
fee
shall be collected
from a credit union until it
has been in operation for one year. The regulatory fee shall be billed to credit unions on a quarterly basis and it shall be payable by credit unions on the due date for the Call Report for the subject quarter.
(4) The aggregate of all fees collected by the Department under this
Act
shall be paid promptly after they are received,
accompanied by a detailed
statement thereof, into the State Treasury and shall be set apart in the
Credit Union Fund, a special fund hereby created in the State treasury.
The amount from time to time deposited in the Credit Union Fund and shall
be used to offset the ordinary administrative and operational expenses of
the Credit Union Section of the Department under
this Act.  All earnings received from investments of funds in the Credit
Union Fund shall be deposited into the Credit Union Fund and may be used for
the same purposes as fees deposited into that fund.
Moneys deposited in the Credit Union Fund may be transferred to the Professions Indirect Cost Fund, as authorized under Section 2105-300 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.
Notwithstanding provisions in the State Finance Act, as now or hereafter amended, or any other law to the contrary, the Governor may, during any fiscal year through January 10, 2011, from time to time direct the State Treasurer and Comptroller to transfer a specified sum not exceeding 10% of the revenues to be deposited into the Credit Union Fund during that fiscal year from that Fund to the General Revenue Fund in order to help defray the State's operating costs for the fiscal year. Notwithstanding provisions in the State Finance Act, as now or hereafter amended, or any other law to the contrary, the total sum transferred from the Credit Union Fund to the General Revenue Fund pursuant to this provision shall not exceed during any fiscal year 10% of the revenues to be deposited into the Credit Union Fund during that fiscal year. The State Treasurer and Comptroller shall transfer the amounts designated under this Section as soon as may be practicable after receiving the direction to transfer from the Governor.
(5) The administrative and operational expenses for any fiscal
year shall mean the ordinary
and contingent expenses for that year incidental to making the examinations
provided for by, and for administering, this Act, including all salaries
and other compensation paid for personal services rendered for the State by
officers or employees of the State to enforce this Act; all expenditures
for telephone and telegraph charges, postage and postal charges, office
supplies and services, furniture and equipment, office space and
maintenance thereof, travel expenses and other necessary expenses; all to
the extent that such expenditures are directly incidental to such
examination or administration.
(6) When the balance in the Credit Union Fund at the end of a fiscal year exceeds 25% of the
total
administrative and operational
expenses incurred by the State in administering and enforcing the Illinois Credit Union Act and other laws, rules, and regulations as may apply to the administration and enforcement of the foregoing laws, rules, and regulations as amended from time to time for that fiscal year, such excess shall be credited to
credit unions and applied against their regulatory fees for
the subsequent fiscal year.  The amount credited to each credit union shall be in the
same proportion as the regulatory fee paid by such credit union for the fiscal
 year in which the excess is produced bears to the aggregate amount of all
fees collected by the Department
under this Act for the same fiscal year.
(7) (Blank).
(8) Nothing in this Act shall prohibit the General Assembly from
appropriating funds to the Department from the General Revenue Fund for the
purpose of administering this Act.
(9) For purposes of this Section, "fiscal year" means a period beginning on July 1 of any calendar year and ending on June 30 of the next calendar year.
(Source: P.A. 103-107, eff. 6-27-23.)
(205 ILCS 305/13) (from Ch. 17, par. 4414)
Sec. 13. General powers. A credit union may:
(1) Make contracts; sue and be sued; and adopt and     use a common seal and alter the same;
(2) Acquire, lease (either as lessee or lessor),     hold, pledge, mortgage, sell and dispose of real property, either in whole or in part, or any interest therein, as may be necessary or incidental to its present or future operations and needs, subject to such limitations as may be imposed thereon in rules and regulations promulgated by the Secretary; acquire, lease (either as lessee or lessor), hold, pledge, mortgage, sell and dispose of personal property, either in whole or in part, or any interest therein, as may be necessary or incidental to its present or future operations and needs;
(3) At the discretion of the board of directors,     require the payment of an entrance fee or annual membership fee, or both, of any person admitted to membership;
(4) Receive savings from its members in the form of     shares of various classes, or special purpose share accounts; act as custodian of its members' accounts; issue shares in trust as provided in this Act;
(5) Lend its funds to its members and otherwise as     hereinafter provided;
(6) Borrow from any source in accordance with policy     established by the board of directors  to a maximum of 50% of capital, surplus and reserves;
(7) Discount and sell any obligations owed to the     credit union;
(8) Honor requests for withdrawals or transfers of     all or any part of member share accounts, and any classes thereof, in any manner approved by the credit union board of directors;
(9) Sell all or a part of its assets or purchase all     or a part of the assets of another credit union and assume the liabilities of the selling credit union, subject to the prior approval of the Director, which approval shall not be required in the case of loan transactions otherwise authorized under applicable law;
(10) Invest surplus funds as provided in this Act;
(11) Make deposits in banks, savings banks, savings     and loan associations, trust companies; and invest in shares, classes of shares or share certificates of other credit unions;
(12) Assess charges and fees to members in accordance     with board resolution;
(13) Hold membership in and pay dues to associations     and organizations; to invest in shares, stocks or obligations of any credit union organization;
(14) Declare dividends and pay interest refunds to     borrowers as provided in this Act;
(15) Collect, receive and disburse monies in     connection with providing negotiable checks, money orders and other money-type instruments, and for such other purposes as may provide benefit or convenience to its members, and charge a reasonable fee for such services;
(16) Act as fiscal agent for and receive deposits     from the federal government, this state or any agency or political subdivision thereof;
(17) Receive savings from nonmembers in the form of     shares or share accounts in the case of credit unions serving predominantly low-income members.  The term "low income members" shall mean those members who make less than 80% of the average for all wage earners as established by the Bureau of Labor Statistics or those members whose annual household income falls at or below 80% of the median household income for the nation as established by the Census Bureau. The term "predominantly" is defined as a simple majority;
(18) Establish, maintain, and operate terminals as     authorized by the Electronic Fund Transfer Act;
(19) Subject to Article XLIV of the Illinois     Insurance Code, act as the agent for any fire, life, or other insurance company authorized by the State of Illinois, by soliciting and selling insurance and collecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said credit union and the insurance company for which it may act as agent; provided, however, that no such credit union shall in any case assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal; and provided further, that the credit union shall not guarantee the truth of any statement made by an assured in filing his application for insurance; and
(20) Make reasonable contributions to civic,     charitable, or service organizations not organized for profit; religious corporations; and fundraisers benefiting persons in the credit union's service area. (Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/13a)
Sec. 13a. 
		Non-English language transactions. 
		A credit union may conduct
transactions in a language other than English through an employee or agent
acting as interpreter or through an interpreter provided by the customer.
(Source: P.A. 92-578, eff. 6-26-02.)
(205 ILCS 305/14) (from Ch. 17, par. 4415)
Sec. 14. Incidental powers. A credit union may exercise such incidental
powers as are granted corporations organized under the laws of this State
including, to the extent such powers are not inconsistent with powers and
prohibitions contained in this Act, such powers as are necessary or convenient
to enable credit unions to promote and carry on their purposes.  The provisions
of this Section shall be interpreted liberally and not restrictively.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/15) (from Ch. 17, par. 4416)
Sec. 15. Membership defined.
(1) The membership of a credit union shall
be limited to and consist of the subscribers to the articles of incorporation
and such other persons within the common bond, as defined in this Act and
as set forth in the credit union's articles of incorporation, as have been
duly admitted members, have paid the required entrance fee or membership
fee, or both, if any, have subscribed for one or more shares, and have paid
the initial installment thereon, and have complied with such other requirements
as the articles of incorporation or bylaws specify.  Two or more persons
within the common bond who have jointly subscribed for one or more shares under
a joint account and have complied with all membership requirements may each be
admitted to membership.  The surviving spouse
of a credit union member may, within 6 months of the member's death, become
a member of the credit union by paying the required entrance fee or membership
fee or both, if any, by subscribing for one or more shares
and paying the initial installment thereon, and by complying with such other
requirements as the articles of incorporation or bylaws specify.
(2) Any member may withdraw from a credit union at any time upon giving
notice of withdrawal as required by the bylaws.
(3) Any member may be expelled
by a 2/3 vote of the members present at any regular or special
meeting
called to consider the matter, but only after an opportunity has been given
to the member to be heard.
(4) A member may be expelled by
a majority vote of a quorum of directors if the board has adopted a policy
providing for expulsion for any of the following acts committed by the member:
(i) causing a loss to the credit union;
(ii) failing to maintain one or more shares at the     credit union;
(iii) committing fraud or any similar misdeed against     the credit union;
(iv) engaging in inappropriate behavior involving     another person, such as physical or verbal abuse of another member or an employee of the credit union, while transacting business with the credit union; or
(v) otherwise violating board policy applicable to     members.
In maintaining and
enforcing a policy based on loss, the
board may consider, without limitation, a member's failure to pay amounts due
under a loan, failure to provide collected funds to cover withdrawals or
personal share drafts or credit union drafts where the member is a remitter, or
failure to pay fees or charges due the credit union.
The policy may delegate the expulsion authority to the senior management officials of the credit union. If a member is expelled by a senior management official of the credit union, the member may, within 30 days after the expulsion, seek reinstatement by appealing the action in writing to the board of directors of the credit union. The board may affirm, disaffirm, or modify the action, and the board's decision is final. As used in this subsection (4), "senior management official" includes the chief management officer of the credit union (including the person holding the title of President or Chief Executive Officer, or both, or Treasurer/Manager) and other management officers of the credit union (including the persons holding the title of Chief Operating Officer, Chief Financial Officer, Chief Administrative Officer, Chief Information Officer, Chief Security Officer, Executive Vice President, Senior Vice President, or Vice President).
If a policy
is
adopted by the board pursuant to this subsection (4), the
policy shall be distributed not fewer than 30 days before the effective date of the policy by: (i) mailing it to each member of the credit union at the member's current
address appearing on the records of the credit union; (ii) electronically delivering it to all members by posting it on the credit union's website; or (iii) disclosing it to all members in membership newsletters or account statements.  In addition, new members shall be provided written notice of the
policy prior to or upon applying for membership by using one of the distribution methods described in this subsection (4).
(5) All or any part of the amount paid on shares
of a withdrawing member
or expelled member with any declared dividends or interest on the date of
withdrawal or expulsion must, after deducting all amounts due from the member
to the credit union, be paid to him.  The credit union may require not more
than 60 days' written notice of intention to withdraw shares, but a notice
of withdrawal does not entitle the member to any preferred or prior claim
in the event of liquidation.  Withdrawing or expelled members have no further
rights in the credit union, but are not, by withdrawal or expulsion, released
from any obligation they owe to the credit union.
(6) A member who has caused a loss to the credit union or has violated board
 policy applicable to members may be denied any
or all credit union services in accordance with board policy, however, members
who are denied services shall be allowed to maintain a share account and to
vote on all issues
put to a vote of the membership.
(7) If a member fails to maintain one fully paid share, the credit union, at its option, may permit the member to re-subscribe and pay for one or more shares within 30 days after the date the member failed to maintain one fully paid share, without affecting the member's status or rights as a member during that period.  A member that fails to re-subscribe for at least one fully paid share within the 30-day period shall be automatically expelled from the credit union and treated as an expelled member under subsection (5) of this Section 15.
(Source: P.A. 101-567, eff. 8-23-19.)
(205 ILCS 305/16) (from Ch. 17, par. 4417)
Sec. 16. Societies and associations. Societies,
associations, clubs, partnerships, corporations, and limited
liability companies in which one or more of the members, partners, or
shareholders
are individuals who are
eligible for credit union membership may be admitted to membership in a credit
union in the same
manner and under the same conditions as individuals, subject to such rules
as the Secretary and the Director may promulgate hereunder. Any members, partners, or shareholders who are ineligible for membership in the credit union shall not become eligible by virtue of the eligibility of the entity in which they hold an ownership interest.
(Source: P.A. 103-289, eff. 7-28-23.)
(205 ILCS 305/16.1)
Sec. 16.1. Service to the economically disadvantaged.
(a) Persons who reside in investment areas as defined in the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702) and identified by the U.S. Department of the Treasury may be admitted to membership in a credit union that serves the area by maintaining a facility in the area.  For purposes of this Section, a "facility" means a credit union owned branch, a shared branch, an office operated on a regularly scheduled weekly basis, or a credit union owned electronic facility that meets, at a minimum, the requirements of accepting shares for members' accounts, accepting loan applications and disbursing loans, but does not include an ATM.
(b) Credit unions desiring to serve the economically disadvantaged in accordance with this Section shall do so pursuant to a written business plan that shall document the fact that the area meets the criteria of this Section, identify the credit and depository needs of the area, identify the services to be delivered, and describe the manner in which the services will be delivered.  The credit union shall regularly review the business plan to determine whether the area is being adequately served and shall provide to the Secretary periodic service status reports that describe how the needs of the area are being met.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/16.5)
Sec. 16.5. Service to target markets.
(a) As used in this Section:
"Target market" means an investment area or a targeted population, or both, as defined in the Community Development Banking and Financial Institutions Act of 1994, 12 U.S.C. 4702, and regulations issued thereunder by the U.S. Department of the Treasury pursuant to 12 CFR 1805.104 et seq.
Terms used in this Section that are not defined in this Section shall have the meanings ascribed to them in the U.S. Department of Treasury regulations identified in this subsection.
(b) Notwithstanding anything to the contrary in Section 15 or 16.1, persons who reside in investment areas and targeted populations consisting of individuals or identifiable groups of individuals who are low-income persons or lack adequate access to financial products or financial services may be admitted to membership in a credit union in accordance with the terms of the credit union's written business plan submitted to the Secretary under subsection (e).
(c) In addition to serving persons who reside in investment areas that become members pursuant to subsection (b), a credit union may indirectly serve investment areas by making loans to or investments in community development financial institutions, minority depository institutions, and other businesses that serve the investment areas, subject to the limits set forth in subsection (5) of Section 51 and paragraph (14) of subsection (a) of Section 59.
(d) In addition to serving targeted populations of individuals that become members pursuant to subsection (b), a credit union may indirectly serve members of a targeted population by making loans to or investments in community development financial institutions, minority depository institutions, and other businesses that serve the targeted population, subject to the limits set forth in subsection (5) of Section 51 and paragraph (14) of subsection (a) of Section 59.
(e) A credit union desiring to serve a target market in accordance with this Section shall do so pursuant to a written business plan that confirms the target market meets the definitional criteria set forth in subsection (a) and identifies the financial product and financial service needs of the target market, the financial products and financial services to be delivered, and the manner of delivery of those financial products and financial services. The credit union must submit the business plan to the Secretary. The Secretary may, in his or her sole discretion, approve the business plan, disapprove the business plan, or require the credit union to modify the business plan to seek approval of the target market as an occupational, community, or associational common bond or common bonds, pursuant to 38 Ill. Adm. Code 190.10. The credit union must be advised in writing of the findings of the Secretary in support of the determination and the specific and reasonable time period in which to file a modified plan. If the Secretary approves the business plan, the credit union shall be required to add the target market to its field of membership.
(Source: P.A. 102-774, eff. 1-1-23.)
(205 ILCS 305/17) (from Ch. 17, par. 4418)
Sec. 17. 
		Members who leave field. 
		Nothing in this Act shall be construed
to impair the charter of an existing credit union, prevent the merger of
credit unions as otherwise provided for in this
 Act or prevent a credit union from retaining as a member a person who subsequent
to becoming a member, leaves the credit union's common bond or undergoes
a change in marital status.
(Source: P.A. 81-329.)
(205 ILCS 305/18) (from Ch. 17, par. 4419)
Sec. 18. 
		Liability of members. 
		The members of the credit union shall
not be personally or individually liable for the payment of its debts.
A reduction in shares as provided for in Section 45 of this Act shall not
be considered as imposing such individual or personal liability upon the
members of the credit union.
(Source: P.A. 81-329.)
(205 ILCS 305/19) (from Ch. 17, par. 4420)
Sec. 19. Meeting of members.
(1)(a) The annual meeting shall be held each
year during the months of January, February or March or such other month
as may be approved by the Department.  The meeting shall be held at the
time, place and in the manner set forth in the bylaws.  Any special
meetings of the members of the credit union shall be held at the time, place
and in the manner set forth in the bylaws.  Unless otherwise set forth in
this Act, quorum requirements for meetings of members shall be established
by a credit union in its bylaws. Notice of all meetings must be given by
the secretary of the credit union at least 7 days before the date of such
meeting, either by handing a written or printed notice to each
member of the credit union, by mailing the notice to the member at his address
as listed on the books and records of the credit union, by posting a
notice of the meeting in three conspicuous places, including the office
of the credit union, by posting the notice of the meeting on the credit union's website, or by disclosing the notice of the meeting in membership newsletters or account statements.
(b)   Unless expressly prohibited by the articles of incorporation or bylaws and subject to applicable requirements of this Act, the board of directors may provide by resolution that members may attend, participate in, act in, and vote at any annual meeting or special meeting through the use of a conference telephone or interactive technology, including, but not limited to, electronic transmission, internet usage, or remote communication, by means of which all persons participating in the meeting can communicate with each other. Participation through the use of a conference telephone or interactive technology shall constitute attendance, presence, and representation in person at the annual meeting or special meeting of the person or persons so participating and count towards the quorum required to conduct business at the meeting. The following conditions shall apply to any virtual meeting of the members:
(i)  the credit union must internally possess or     retain the technological capacity to facilitate virtual meeting attendance, participation, communication, and voting; and
(ii)  the members must receive notice of the use of a     virtual meeting format and appropriate instructions for joining, participating, and voting during the virtual meeting at least 7 days before the virtual meeting.
(2) On all questions and at all elections, except election of directors,
each member has one vote regardless of the number of his shares.  There
shall be no voting by proxy except on the election of directors, proposals
for merger or voluntary dissolution. Members may vote on questions, including, without limitation, the approval of mergers and voluntary dissolutions under this Act, and in elections by electronic record if approved by the board of directors.  All voting on the election of directors
shall be by ballot, but when there is no contest, written or electronic ballots need not
be cast.  The record date to be used for the purpose of determining which
members are entitled to notice of or to vote at any meeting of members,
may be fixed in advance by the directors on a date not more than 90 days
nor less than 10 days prior to the date of the meeting.  If no record date
is fixed by the directors, the first day on which notice of the meeting
is given, mailed or posted is the record date.
(3) Regardless of the number of shares owned by a society, association,
club, partnership, other credit union or corporation, having membership
in the credit union, it shall be entitled to only
one vote and it may be represented and have its vote cast by its
designated agent acting on its
behalf pursuant
to a resolution
adopted by the organization's board of directors or similar governing
authority;
provided that the credit union shall obtain a certified copy of such resolution
before such vote may be cast.
(4) A member may revoke a proxy by delivery to the credit union of a written statement to that effect, by execution of a subsequently dated proxy, by execution of an electronic record, or by attendance at a meeting and voting in person.
(5) The use of electronic records for member voting pursuant to this Section shall employ a security procedure that meets the attribution criteria set forth in Section 9 of the Uniform Electronic Transactions Act.
(6) As used in this Section, "electronic", "electronic record", and "security procedure" have the meanings ascribed to those terms in the Uniform Electronic Transactions Act.
(Source: P.A. 102-38, eff. 6-25-21; 102-496, eff. 8-20-21; 102-774, eff. 5-13-22; 102-813, eff. 5-13-22; 103-154, eff. 6-30-23.)
(205 ILCS 305/20) (from Ch. 17, par. 4421)
Sec. 20. Election or appointment of officials.
(1) The credit union shall
be directed by a board of directors consisting of no less than 7 in number,
to be elected at the annual meeting by and from the members.  Directors shall
hold office until the next annual meeting, unless their
terms are staggered.  Upon amendment of its bylaws, a credit union may divide
the directors into 2 or 3 classes with each class as nearly equal in number as
possible.  The term of office of the directors of the first class shall expire
at the first annual meeting after their election, that of the second class
shall
expire at the second annual meeting after their election, and that of the third
class, if any, shall expire at the third annual meeting after their election.
At each annual meeting after the classification, the number of directors equal
to the number of directors whose terms expire at the time of the meeting shall
be elected to hold office until the second succeeding annual meeting if there
are 2 classes or until the third succeeding annual meeting if there are 3
classes.  A director shall hold office for the term for which he
or she is elected and until his or her
successor
is elected and qualified.
(1.5) Except as provided in subsection (1.10), in all elections for directors, every member
has the right to vote, in person, by proxy, or by   electronic record if approved by the board of directors, the number of shares owned
by him, or in the case of a member other than a natural person, the member's
one vote, for as many persons as there are directors to be elected, or to
cumulate such shares, and give one candidate as many votes as the number
of directors multiplied by the number of his shares equals, or to distribute
them on
the same principle among as many candidates as he may desire and the directors
shall not be elected in any other manner.  Shares held in a joint account
owned by more than one member may be voted by any one of the members, however,
the number of cumulative votes cast may not exceed a total equal to the number
of shares multiplied by the number of directors to be elected.  A majority of
the shares entitled
to vote shall be represented either in person or by proxy for the election
of directors.  Each director shall wholly take and subscribe to an oath
that he will diligently and honestly perform his duties in administering
the affairs of the credit union, that while he may delegate to another the
performance of those administrative duties he is not thereby relieved from
his responsibility for their performance, that he will not knowingly violate
or permit to be violated any law applicable to the credit union,
and that he is the owner of at least one share of the credit union.
(1.10) Upon amendment of a credit union's bylaws, in all elections for directors, every member who is  a natural person shall have the right to cast one vote, regardless of the number of his or her shares, in person, by proxy, or by electronic record if approved by the board of directors, for as many persons as there are directors to be elected.
(1.15) If the board of directors has adopted a policy addressing age eligibility standards on voting, holding office, or petitioning the board, then  a credit union may require (i) that members be at least 18 years of age by the date of the meeting in order to vote at meetings of the members, sign nominating petitions, or sign petitions requesting special meetings, and (ii) that members be at least 18 years of age by the date of election or appointment in order to hold elective or appointive office.
(2) The board of directors shall appoint from among the members of the
credit union, a supervisory committee of not less than 3 members at the
organization meeting and within 30 days following each annual meeting of
the members for such terms as the bylaws provide.  Members of the supervisory committee may, but need not be, on the board of directors, but shall not
be officers of the credit union.
(3) The board of directors may appoint, from among the
members of the
credit union, a credit committee consisting of an odd number, not less than
3 for such terms as the bylaws provide. Members of the credit committee
may, but need not be, directors or officers of the credit union.
(4) The board of directors may appoint from among the members
of the
credit union a membership committee of one or more persons.  If appointed,
the committee shall act
upon all applications for membership and submit a report of its actions
to the board of directors at the next regular meeting for
review.
If no membership committee is appointed, credit union management shall act
upon all applications for membership and submit a report of its actions to the board of directors
 at the next regular meeting for review.
(5) The board of directors may appoint, from among the members of the credit union, a nominating committee of 3 or more persons. Members of the nominating committee may, but need not, be directors or officers of the credit union, but may not be members of the supervisory committee. The appointment, if made, shall be made in a timely manner to permit the nominating committee to recruit, evaluate, and nominate eligible candidates for each position to be filled in the election of directors or, in the event of a vacancy in office, to be filled by appointment of the board of directors for the remainder of the unexpired term of the director creating the vacancy. Factors the nominating committee may consider in evaluating prospective candidates include whether a candidate possesses or is willing to acquire through training the requisite skills and qualifications to carry out the statutory duties of a director. The board of directors may delegate to the nominating committee the recruitment, evaluation, and nomination of eligible candidates to serve on committees and in executive officer positions.
(6) The board of directors may create one or more other committees in addition to the committees identified in this Section and appoint directors or such other persons as the board designates to serve on the committee or committees. Any such committee shall serve at the pleasure of the board of directors and it shall not act on behalf of the credit union or bind it to any action, but it may make recommendations to the board of directors.
(7)(a) The board of directors may appoint an individual as a registered agent for the credit union. The name of the registered agent appointed by the board of directors shall be identified in the annual report filed by the credit union on the annual report form supplied by the Department. The business office of the registered agent shall be the same as the principal place of business of the credit union. Any process, notice, or demand required or permitted by law to be served upon the credit union may be served upon the registered agent appointed by the credit union.
(b) A credit union that has appointed a registered agent shall post on its website the name of its registered agent, the address of its principal place of business, and that the appointment was authorized by action of the board of directors.
(c) A credit union that has appointed a registered agent may change its registered agent at any time by posting on its website a statement setting forth the following:
(i) the address of its principal place of business,
(ii) the name of its existing registered agent,
(iii) the name of its successor registered agent, and
(iv) that the change was authorized by action of the     board of directors.
(d) A registered agent may resign at any time by submitting written notice thereof to the credit union at its principal place of business. The notice shall set forth the following:
(i) the name of the credit union for which the     registered agent is acting,
(ii) the address of the principal place of business     of the credit union,
(iii) the name of the registered agent,
(iv) that the registered agent is resigning, and
(v) the effective date of the resignation, which     shall not be less than 30 days after the date of filing of the notice.
(8) The use of electronic records for member voting pursuant to this Section shall employ a security procedure that meets the attribution criteria set forth in Section 9 of the Uniform Electronic Transactions Act.
(9) As used in this Section, "electronic", "electronic record", and "security procedure" have the meanings ascribed to those terms in the Uniform Electronic Transactions Act.
(Source: P.A. 102-38, eff. 6-25-21; 102-687, eff. 12-17-21; 102-774, eff. 5-13-22; 102-858, eff. 5-13-22; 103-154, eff. 6-30-23; 103-289, eff. 7-28-23.)
(205 ILCS 305/20.5)
Sec. 20.5. Appointment of associate directors.
(a)   The board of directors of a credit union may, in its discretion, appoint one or more associate directors to serve in an advisory capacity. The board shall prescribe the duties of an associate director and the manner in which associate directors are appointed and removed. The board shall not delegate to associate directors any of the duties or responsibilities prescribed by this Act or other applicable law to be performed by directors duly elected by their members. An associate director shall not be deemed or considered to be a director for any purpose under this Act.
(b)    Before appointing an associate director, the board shall confirm that the person meets all of the requirements to serve as a director, including, without limitation, a working familiarity with the financial and accounting practices of the credit union as set forth in subsection (c) of Section 30.
(c)    An associate director may participate in meetings of the board but may not vote or otherwise act as a director. With respect to any issue that comes before the board for deliberation, the board may request that all associate directors excuse themselves from the meeting of the board and the associate directors shall immediately comply with the request.
(d)    The board shall require each associate director to sign a confidentiality or non-disclosure agreement to ensure that information concerning the credit union remains confidential.
(Source: P.A. 102-496, eff. 8-20-21.)
(205 ILCS 305/21) (from Ch. 17, par. 4422)
Sec. 21. Record of board and committee members. Within 30 days after
election or appointment, the names and addresses of the members of the board of directors, committees and all officers of the credit union shall be filed
with the Department on forms provided by the Department.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/22) (from Ch. 17, par. 4423)
Sec. 22. Vacancies.
(a) The board of directors shall, by appointment from
among the credit union members, fill any vacancies occurring on the board
for the remainder of the director's unexpired term or until a successor
is elected and qualified following completion of the term filled by the board. In the event the vacancy reduces the number of directors serving on the board to less than the statutory minimum set forth in subsection (1) of Section 20, then the board shall fill the vacancy no later than the next annual meeting of members or 90 days after the vacancy occurred, whichever occurs first.  Upon written application to the Secretary, the board may request additional time in which to fill the vacancy.  The application may be approved by the Secretary in his or her discretion.  The board shall, by appointment from among the
credit union members, fill vacancies in the membership committee, credit
committee, and
supervisory
committees.
(b) An office may be declared vacant by the board when a director or a committee member dies, resigns from the board or committee, is removed from the board or committee, is no longer a member of the credit union, is the owner of less than one share of the credit union, or fails to attend three consecutive regular meetings of the board without good cause.
(Source: P.A. 99-614, eff. 7-22-16.)
(205 ILCS 305/23) (from Ch. 17, par. 4424)
Sec. 23. Compensation of officials.
(1) Directors and committee members may
receive reasonable compensation for their service as such, the amount of which shall be set by the board of directors, in accordance with written policies and procedures established by the board of directors. If the Department determines the payment of director or committee member compensation, or both, creates a safety and soundness issue for a credit union, the Department shall utilize the standards set forth in 38 Ill. Adm. Code 190.25 and supplemental guidelines to address and resolve the issue. An enforcement action taken pursuant to 38 Ill. Adm. Code 190.25 and guidelines and specified by the Act shall be used to reduce or suspend the compensation paid to the directors and committee members.
"Compensation" as used in this subsection (1) refers to remuneration expense to the credit union for services provided by a director or committee member in
his or her capacity as director or committee member.  The remuneration expense is in the form of monetary payments and shall be disclosed on an annual basis to the membership in the financial statement that is part of the annual membership meeting materials. The disclosure shall contain: (i) the amount paid to each director and (ii) the amount paid to the directors as a group. "Compensation" does not include any of the expenses described in subsections (2) and (3) of this Section.
(2) The credit union may incur the expense of providing
reasonable life, health,
accident, and similar insurance protection benefits for directors and committee members.
(3) Directors, committee members and
employees, while on official business of the credit union, may be reimbursed
for reasonable and necessary expenses. Alternatively, the credit union may make direct payment to a third party for such business expenses. Reasonable and necessary expenses may include the payment of travel costs for the foregoing officials and one guest per official. All payment of costs shall be made in accordance with written policies and procedures established by the board of directors.
(4) The board of directors may establish
compensation for officers of the credit union.
(Source: P.A. 101-567, eff. 8-23-19; 102-496, eff. 8-20-21.)
(205 ILCS 305/24) (from Ch. 17, par. 4425)
Sec. 24. Conflicts of interest. No director, committee member, officer,
agent or employee of the credit union shall in any manner, directly or indirectly,
participate in the deliberation upon or the determination of any question
affecting his pecuniary interest or the pecuniary interest of any corporation,
partnership, or association (other than the credit union, other credit unions
or credit union organizations) in which he is directly or indirectly interested,
unless such interest is disclosed to the board of directors prior to such
deliberation or determination, in which event such person shall be entitled
to participate and, if otherwise entitled to, shall have the power to vote
on such matter.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/25) (from Ch. 17, par. 4426)
Sec. 25. Indemnification. A credit union may indemnify any and all of its directors, committee members, officers or employees or former directors,
committee members, officers or employees against expenses actually and necessarily
incurred by them in connection with the defense or settlement of any action,
suit or proceeding in which they, or any of them, are made a party or parties
by reason of being or having been a director, committee member, officer
or employee of the credit union, except in relation to matters as to which
any such director, committee member, officer or employee shall be adjudged
in such action, suit or proceeding to be liable for willful misconduct in
the performance of duty and to such matters as shall be settled by agreement
predicated on the existence of such liability.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/26) (from Ch. 17, par. 4427)
Sec. 26. Executive officers.
(1) At their first meeting, the board of directors shall elect from among their own number a chairman of the board 
and one or more vice chairmen, a secretary and a treasurer.  The directors 
shall appoint a chief management official who shall have such title as the directors shall determine. The directors
 may also  appoint one or more vice presidents.

The chief management official and vice president may, but need not, be directors.  Any two
or more offices may be held by the same person, except the chairman of the board may
not also hold the office of vice chairman or secretary.
(2) The officers shall serve for a term of one year, or until their successors
are chosen and have been duly qualified.
(3) The duties of the officers shall be prescribed in the bylaws.  Compensation
of officers shall be such as may be established by the directors from time to time.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/27) (from Ch. 17, par. 4428)
Sec. 27. Authority of directors.
(1) The board of directors shall be charged
with and have control over the general management of the operations, funds
and records of the credit union.
(2) In discharging the duties of their respective positions, the board
of directors, committees of the board, and individual directors shall be
entitled to rely on advice, information, opinions, reports or statements,
including financial statements and financial data, prepared or presented by:
(i) one or more officers or employees of the credit union whom the director
believes to be reliable and competent in the matter presented; (ii) one or more
counsel, accountants, or other consultants as to matters that the director 
believes to be within that person's professional or expert competence; or (iii)
a committee of the board upon which the director does not serve, as to matters
within that committee's designated authority; provided that the director's 
reliance under this subsection (2)
is placed in good faith, after reasonable inquiry if the need for such inquiry
is apparent under the circumstances and without knowledge that would cause such
reliance to be unreasonable.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/28) (from Ch. 17, par. 4429)
Sec. 28. Executive committee. From the persons elected to the board, the board
 may appoint an executive committee of not less than 3 directors who
may be authorized to act for the board in all respects, subject to such
conditions and limitations as are prescribed by the board.  The executive committee shall report to the board at each board meeting on any meeting
held and actions taken by the executive committee between board meetings.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/29) (from Ch. 17, par. 4430)
Sec. 29. Meetings of directors.
(1) The board of directors and the executive committee shall meet as often as necessary, but one body must meet at least monthly and the other at least quarterly, as prescribed in the bylaws. Unless a greater number is required by the bylaws, a majority of the whole board of directors shall constitute a quorum. The act of a majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors unless the act of a greater number is required by this Act, the credit union's articles of incorporation or the bylaws.
(1.5) Notwithstanding anything to the contrary in subsection (1), 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 (or an equivalent rating under a comparable rating system) and a management rating under such composite rating of either 1 or 2 may meet not less than 6 times annually, with at least one meeting held during each fiscal quarter. This meeting frequency schedule shall be available to an eligible credit union irrespective of whether it has appointed an executive committee pursuant to Section 28.
(2) Unless specifically prohibited by the articles of incorporation or bylaws, directors and committee members may participate in and act at any meeting of the board or committee through the use of a conference telephone or other communications equipment by means of which all persons participating in the meeting can communicate with each other. Participation in the meeting shall constitute attendance and presence in person at the meeting of the person or persons so participating.
(3) Unless specifically prohibited by the articles of incorporation or bylaws, any action required by this Act to be taken at a meeting of the board of directors or a committee and any other action that may be taken at a meeting of the board of directors or a committee may be taken without a meeting if a consent in writing setting forth the action taken is signed by all the directors entitled to vote with respect to the subject matter thereof, or by all members of the committee, as the case may be. The consent shall be evidenced by one or more written approvals, each of which sets forth the action taken and bears the signatures of one or more directors or committee members. All the approvals evidencing the consent shall be delivered to the secretary to be filed in the corporate records of the credit union. The action taken shall be effective when all the directors or committee members have approved the consent unless the consent specifies a different effective date. A consent signed by all the directors or all the members of a committee shall have the same effect as a unanimous vote, and may be stated as such in any document filed with the director under this Act.
(4)(a) As used in this subsection:
"Affiliate" means an organization established to serve the needs of credit unions, the business of which relates to the daily operations of credit unions.
"Compliance review documents" means reports, meeting minutes, and other documents prepared in connection with a review or evaluation conducted by or for the board of directors.
(b) This subsection applies to the board of directors in relation to its functions to evaluate and seek to improve any of the following:
(i) loan policies or underwriting standards;
(ii) asset quality;
(iii) financial reporting to federal or State     governmental or regulatory agencies; or
(iv) compliance with federal or State statutory or     regulatory requirements, including, without limitation, the manner in which it performs its duties under Section 30.
(c) Meetings, minutes of meetings, and reports of the board of directors shall be subject to the confidentiality and redaction standards set forth in this subsection.
(d) Except as provided in paragraph (e), compliance review documents and the deliberations of the board of directors are confidential. An affiliate of a credit union, a credit union regulatory agency, and the insurer of credit union share accounts shall have access to compliance review documents; however, (i) the documents remain confidential and (ii) delivery of compliance review documents to an affiliate or pursuant to the requirements of a credit union regulatory agency or an insurer of credit union share accounts do not constitute a waiver of the confidentiality granted in this Section.
(e) This Section does not apply to any civil or administrative action initiated by a credit union regulatory agency or an insurer of credit union share accounts.
(f) This Section shall not be construed to limit the discovery or admissibility in any civil action of any documents, including compliance review documents.
(g) Any report required under this Act to be furnished to the board of directors by the membership committee, credit committee, or any other committee may be submitted in a summary format that redacts personally identifiable information as defined under applicable State and federal law.
(h) Compliance review documents may be disclosed by the Secretary or a credit union to any person or entity to whom confidential supervisory information may be disclosed pursuant to subsection (3) of Section 9.1.
(Source: P.A. 103-289, eff. 7-28-23.)
(205 ILCS 305/30) (from Ch. 17, par. 4431)
Sec. 30. Duties of directors.
(a) It shall be the duty of the directors to:
(1) Review actions on applications for membership.  A     record of the membership committee's approval or denial of membership or management's approval or denial of membership if no membership committee  has been appointed shall be available to the board of directors for inspection.  A person denied membership by the membership committee or credit union management may appeal the denial to the board;
(2) Provide adequate fidelity bond coverage for     officers, employees, directors and committee members, and for losses caused by persons outside of the credit union, subject to rules and regulations promulgated by the Secretary;
(3) Determine from time to time the interest rates,     not in excess of that allowed under this Act, which shall be charged on loans to members and to authorize interest refunds, if any, to members from income earned and received in proportion to the interest paid by them on such classes of loans and under such conditions as the board prescribes.  The directors may establish different interest rates to be charged on different classes of loans;
(4) Within any limitations set forth in the credit     union's bylaws, fix the maximum amount which may be loaned with and without security to a member;
(5) Declare dividends on various classes of shares in     the manner and form as provided in the bylaws;
(6) Limit the number of shares which may be owned by     a member; such limitations to apply alike to all members;
(7) Have charge of the investment of funds, except     that the board of directors may designate an investment committee or any qualified individual or entity to have charge of making investments under policies established by the board of directors;
(8) Authorize the employment of or contracting with     such persons or organizations as may be necessary to carry on the operations of the credit union, provided that prior approval is received from the Department before delegating substantially all managerial duties and responsibilities to a credit union organization, and fix the compensation, if any, of the officers and provide for compensation for other employees within policies established by the board of directors;
(9) Authorize the conveyance of property;
(10) Borrow or lend money consistent with the     provisions of this Act;
(11) Designate a depository or depositories for the     funds of the credit union and supervise the investment of funds;
(12) Suspend or remove, or both, any or all officers     or any or all members of the membership, credit, or other committees whenever, in the judgment of the board of directors, the best interests of the credit union will be served thereby; provided that members of the supervisory committee may not be suspended or removed except for failure to perform their duties; and provided that removal of any officer shall be without prejudice to the contract rights, if any, of the person so removed;
(13) Appoint any special committees deemed necessary;     and
(14) Perform such other duties as the members may     direct, and perform or authorize any action not inconsistent with this Act and not specifically reserved by the bylaws to the members.
(b) The board of
directors may delegate to the chief management official, according to guidelines established by the board that may include the authority to further delegate one or more duties, all of the following duties:
(1) determining the interest rates on loans;
(2) determining the dividend rates on share accounts;      and
(3) hiring employees other than the chief management     official and fixing their compensation.
(c)  Each director shall have a working familiarity with basic finance and accounting practices consistent with the size and complexity of the credit union operation they serve, including the ability to read and understand the credit union's balance sheet and income and expense statements and the ability to ask, when appropriate, substantive questions of management and auditors.  For the purposes of this subsection (c), substantive questions include queries concerning financial services and products offered to the membership; how those activities generate revenue for the credit union; the credit, liquidity, interest rate, compliance, strategic, transaction, and reputation risks associated with those activities; and the internal control structures maintained by the credit union that limit and manage those risks.
A director who was elected or appointed on or after January 1, 2015 and who comes to the position without the requisite financial skills shall have until 6 months after the date of election or appointment to acquire the enumerated skills.
An incumbent director who was elected or appointed before January 1, 2015 and does not possess the requisite financial skills shall have until July 1, 2015 to acquire the enumerated skills.
An incumbent director or a director who is elected or appointed on or after January 1, 2015 who already understands his or her credit union's financial statements shall not be required to do anything further to satisfy the financial skills requirement set forth in subsection (c).
It is the intent of the Department that all credit union directors possess a basic understanding of their credit union's financial condition.  It is not the intent of the Department to subject credit union directors to examiner scrutiny of their financial skills.  Rather, the Department shall evaluate whether the credit union has in place a policy to make available to their directors appropriate training to enhance their financial knowledge of the credit union.  Directors may receive the training through internal credit union training, external training offered by the credit union's retained auditors, trade associations, vendors, regulatory agencies, or any other sources or on-the-job experience, or a combination of those activities. The training may be received through any medium, including, but not limited to, conferences, workshops, audit closing meetings, seminars, teleconferences, webinars, and other internet based delivery channels.
(Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14.)
(205 ILCS 305/31) (from Ch. 17, par. 4432)
Sec. 31. Supervision of loans. The credit committee shall have
the general supervision of all loans and lines of credit to members.
If no credit committee has been appointed, the credit manager shall have the
general supervision of all loans and lines of credit to members.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/32) (from Ch. 17, par. 4433)
Sec. 32. Meetings of credit committee. If a credit committee has been
appointed by the board, the provisions of this Section shall apply.  The credit committee
 shall meet
as often as the operations of the credit union require and not less frequently
than once a month to consider applications for loans and lines of credit.
Unless a greater percentage is required in the credit union's bylaws, a
majority of the
 credit committee shall constitute a quorum.  No loan shall be made unless
it is approved, in writing, by a majority of the committee who are present
at a meeting at which a quorum is present and at which the application is
considered.  The credit committee shall report to the directors at each board
 meeting on all meetings held and actions taken since the last board 
meeting.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/33) (from Ch. 17, par. 4434)
Sec. 33. Credit manager.
(1) The credit committee, board of directors, or chief management official may or, if no credit committee has been appointed, the board of directors or chief management official shall appoint a credit
manager who shall be empowered to approve or disapprove loans and lines
of credit under conditions prescribed by the board of directors.  The credit committee or credit manager may appoint one or more loan officers with the
power to approve loans and lines of credit, subject to such limitations
or conditions as may be prescribed by the board of directors.  The credit
manager and any loan officers appointed by the credit committee or the credit
manager shall keep written records of all transactions and shall report,
in writing, to the credit committee if a credit committee has been appointed,
otherwise
to the directors at each board meeting.
(2) Applications for loans or lines of credit not approved by a loan officer
shall be reviewed and acted upon by the credit committee or credit manager.
(3) The loan officers must keep written records of all loans or lines
of credit granted or refused and any other transactions and submit a report
to the credit committee or credit manager at least once each month.
(Source: P.A. 99-614, eff. 7-22-16.)
(205 ILCS 305/34) (from Ch. 17, par. 4435)
Sec. 34. Duties of supervisory committee.
(1) The supervisory committee
shall make or cause to be made an annual internal audit of the books and
affairs of the credit union to determine that the credit union's accounting
records and reports are prepared promptly and accurately reflect operations
and results, that internal controls are established and effectively
maintained to safeguard the assets of the credit union, and that the
policies, procedures and practices established by the board of directors
and management of the credit union are being properly administered.  The supervisory committee
 shall submit a report of that audit to the board of directors and a summary of that report to the members at the next annual
meeting of the credit union.  It shall make or cause to be made such
supplementary audits as it deems necessary or as are required by the Secretary
 or by the board of directors, and submit reports of these
supplementary audits to the Secretary or board of directors as applicable.
If the supervisory committee has not engaged a licensed certified public accountant or licensed certified public accounting firm to make the internal audit,
the supervisory committee or other officials of the credit union shall not
indicate or in any manner imply that such audit has been performed by a licensed certified
public accountant or licensed certified public accounting firm or that the audit represents the independent opinion of a licensed certified
public accountant or licensed certified public accounting firm.  The supervisory committee must retain its tapes and working papers
of each internal audit for inspection by the Department. The report of this
audit must be made on a form approved by the Secretary. A copy of the report
must be promptly delivered to the Secretary as set forth in paragraph (C) of subsection (3).
(2) The supervisory committee shall make or cause to be made at least
once each year a reasonable percentage verification of members' share and
loan accounts, consistent with rules promulgated by the Secretary.
(3) (A) The supervisory committee of a credit union with assets of $10,000,000
 or more shall engage a licensed certified public accountant or licensed certified public accounting firm to perform an annual external
independent audit of the credit union's financial statements in accordance
with generally accepted auditing standards and the financial statements shall be issued in accordance with accounting principles generally accepted in the United States of America.
(B) The supervisory committee 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 on an annual basis: (i) an agreed-upon procedures engagement under attestation standards established by the American Institute of Certified Public Accountants to minimally satisfy the supervisory committee internal audit standards set forth in subsection (1); (ii) an external independent audit of the credit union's financial statements pursuant to the standards set forth in paragraph (A) of subsection (3); or (iii) an external independent audit of the credit union's financial statements in accordance with subsection (5).
(C) Notwithstanding anything to the contrary in Section 6, each credit union organized under this Act shall select the annual period it desires to use for purposes of performing the external independent audit, agreed-upon procedures engagement, or internal audit described in this Section. The annual period may end on the final day of any month and shall be construed to mean once every calendar year and not once every 12-month period. Irrespective of the annual period selected, the credit union shall complete its external independent audit report, agreed-upon procedures report, or internal audit report and deliver a copy to the Secretary no later than 120 days after the effective date of the audit or engagement, which shall mean the last day of the selected annual period. A credit union or group of credit unions may obtain an extension of the due date upon application to and receipt of written approval from the Secretary.
(D)   If the credit union engages a licensed certified public accountant or licensed certified public accounting firm to perform an annual external independent audit of the credit union's financial statements pursuant to the standards in paragraph (A) of subsection (3) or an annual agreed-upon procedures engagement pursuant to the standards in paragraph (B) of subsection (3), then the annual internal audit requirements of subsection (1) shall be deemed satisfied and met in all respects.
(4) In determining the appropriate balance in the allowance for loan losses account, a credit union may determine its historical loss rate using a defined period of time of less than 5 years, provided that:
(A) the methodology used to determine the defined     period of time is formally documented in the credit union's policies and procedures and is appropriate to the credit union's size, business strategy, and loan portfolio characteristics and the economic environment of the areas and employers served by the credit union;
(B) supporting documentation is maintained for the     technique used to develop the credit union loss rates, including the period of time used to accumulate historical loss data and the factors considered in establishing the time frames; and
(C) the external auditor conducting the credit     union's financial statement audit has analyzed the methodology employed by the credit union and concludes that the financial statements, including the allowance for loan losses, are fairly stated in all material respects in accordance with U.S. Generally Accepted Accounting Principles, as promulgated by the Financial Accounting Standards Board, or the regulatory basis of accounting identified in subsection (5).
(5) A credit union with total assets of less than $10,000,000 that does not engage a licensed certified public accountant or licensed certified public accounting firm to perform an annual external independent audit of the credit union's financial statements pursuant to the standards in paragraph (A) of subsection (3) is not required to determine its allowance for loan losses in accordance with generally accepted accounting principles. Any such credit union may instead use any reasonable reserve methodology, including incurred loss, if it adequately covers known and probable loan losses and complies with the Department's rule addressing loan loss accounting procedures in 38 Ill. Adm.  Code 190.70. Any such credit union shall also have the option of engaging a licensed certified public accountant or licensed certified public accounting firm to perform a financial statement audit in accordance with this regulatory basis of accounting rather than the standards in paragraph (A) of subsection (3).
(6) A majority of the members of the supervisory committee
shall constitute a quorum.
(7) On an annual basis commencing January 1, 2015, the members of the supervisory committee shall receive training related to their statutory duties.  Supervisory committee members may receive the training through internal credit union training, external training offered by the credit union's retained auditors, trade associations, vendors, regulatory agencies, or any other sources or on-the-job experience, or a combination of those activities.  The training may be received through any medium, including, but not limited to, conferences, workshops, audit closing meetings, seminars, teleconferences, webinars, and other Internet-based delivery channels.
(Source: P.A. 101-81, eff. 7-12-19; 102-496, eff. 8-20-21; 102-774, eff. 5-13-22.)
(205 ILCS 305/34.1)
Sec. 34.1. Compliance review.
(a) As used in this Section:
"Affiliate" means an organization established to serve the needs of credit
unions, the business of which relates to the daily operations of credit unions.
"Compliance review committee" means:
(1) one or more persons appointed by the management,     board of directors, or supervisory committee of a credit union for the purposes set forth in subsection (b); or
(2) any other person to the extent the person acts in     an investigatory capacity at the direction of a compliance review committee.
"Compliance review documents" means documents prepared in connection with a
review or evaluation conducted by or for a compliance review committee.
"Person" means an individual, a group of individuals, a board committee, a
partnership, a firm, an association, a corporation, or any other entity.
(b) This Section applies to compliance review committees whose functions are
to evaluate and seek to improve any of the following:
(1) loan policies or underwriting standards;
(2) asset quality;
(3) financial reporting to federal or State     governmental or regulatory agencies; or
(4) compliance with federal or State statutory or     regulatory requirements.
(c) Except as provided in subsection (d), compliance review documents and
the deliberations of the compliance
review committee are privileged and confidential and are nondiscoverable
and nonadmissible.
(1) Compliance review documents are privileged and     confidential and are not subject to discovery or admissible in evidence in any civil action.
(2) Individuals serving on compliance review     committees or acting under the direction of a compliance review committee shall not be required to testify in any civil action about the contents of any compliance review document or conclusions of any compliance review committee or about the actions taken by a compliance review committee.
(3) An affiliate of a credit union, a credit union     regulatory agency, and the insurer of credit union share accounts shall have access to compliance review documents, provided that (i) the documents shall remain confidential and are not subject to discovery from such entity and (ii) delivery of compliance review documents to an affiliate or pursuant to the requirements of a credit union regulatory agency or an insurer of credit union share accounts shall not constitute a waiver of the privilege granted in this Section.
(d) This Section does not apply to: (1) compliance review committees on
which individuals serving on or at the direction of the compliance review
committee have management responsibility for the operations, records,
employees,
or activities being examined or evaluated by the compliance review committee
and (2) any civil or administrative action initiated by a credit union
regulatory agency or an insurer of credit union share accounts.
(e) This Section shall not be construed to limit the discovery or
admissibility in any civil action of any documents other than compliance review
documents or to require the appointment of a compliance review committee.
(Source: P.A. 100-201, eff. 8-18-17; 100-361, eff. 8-25-17.)
(205 ILCS 305/35) (from Ch. 17, par. 4436)
Sec. 35. Suspension and removal of officials.
(1) The supervisory committee,
by a unanimous vote of the whole committee, may suspend any member of the credit committee
 or the credit manager if no credit committee has been
appointed.  The supervisory committee shall report such action to
the board of directors for appropriate action.
(2) The supervisory committee, by a unanimous vote of the whole committee,
may suspend any officer or member of the board of directors until the next
members' meeting, which shall be held not less than 7 nor more than 21 days
after such suspension.  At such meeting, the suspension shall be acted upon
by the members, who shall either confirm or reject it by majority vote.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/36) (from Ch. 17, par. 4437)
Sec. 36. Calling of special meetings. The supervisory committee, by a
majority vote, may, after written notice of its intended action is first
given to the board of directors, and the Department, call a special meeting
of the members to consider any violation of this Act, the credit union's articles of incorporation
 or bylaws, or any practice of the credit union
deemed by the supervisory committee to be unsafe or unauthorized.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/37) (from Ch. 17, par. 4438)
Sec. 37. Shares and classes of shares.
(1) The capital of a credit union
shall consist of the payments made by members for shares of the credit union.
(2) Shares may be subscribed to, paid for and transferred in such manner
as the bylaws prescribe.
(3) The board of directors may establish different classes of share accounts
classified in relation to different rights, restrictions and dividend rates.
(4) A certificate, passbook, periodic statement of account or other written
evidence of ownership shall be issued to denote ownership of shares in a credit union.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/38) (from Ch. 17, par. 4439)
Sec. 38. Dividends. The board of directors may declare a dividend to
be paid periodically from net earnings or undivided earnings and distributed
ratably among holders of share accounts of the same class as provided in
the bylaws.  Dividends may not be declared or paid at a time when the credit
union is insolvent or its net assets are less than its stated capital or
when the payment thereof would render the credit union insolvent or reduce
its net assets below its stated capital.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/39) (from Ch. 17, par. 4440)
Sec. 39. Special purpose share accounts; charitable donation accounts.
(1) If provided for in and consistent
with the bylaws, Christmas clubs, vacation clubs and other special purpose
share accounts may be established and offered under conditions and restrictions
established by the board of directors.
(2) Pursuant to a policy adopted by the board of directors, which may be amended from time to time, a credit union may establish one or more charitable donation accounts.  The investments and purchases to fund a charitable donation account are not subject to the investment limitations of this Act, provided the charitable donation account is structured in accordance with this Act.  At their time of purchase, the book value of the investments in all charitable donation accounts, in the aggregate, shall not exceed 5% of the credit union's net worth.
(a) If a credit union chooses to establish a     charitable donation account using a trust vehicle, the trustee must be an entity regulated by the Office of the Comptroller of the Currency, the U.S. Securities and Exchange Commission, another federal regulatory agency, or a State financial regulatory agency.  A regulated trustee or other person who is authorized to make investment decisions for a charitable donation account, other than the credit union itself, shall either be registered with the U.S. Securities and Exchange Commission as an investment advisor or regulated by the Office of the Comptroller of the Currency.
(b) The parties to  the charitable donation account     must document the terms and conditions controlling the account in a written operating agreement, trust agreement, or similar instrument.  The terms of the agreement shall be consistent with the requirements and conditions set forth in this Section.  The agreement, if applicable, and policies must document the investment strategies of the charitable donation account trustee or other manager in administering the charitable donation account and provide for the accounting of all aspects of the account, including its distributions and liquidation, in accordance with generally accepted accounting principles.
(c) A credit union's charitable donation account     agreement, if applicable, and policies shall provide that the charitable organization or non-profit entity recipients of any charitable donation account funds must be identified in the policy and be exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.
(d) Upon termination of a charitable donation     account, the credit union may receive a distribution of the remaining assets in cash, or a distribution in kind of the remaining assets, but only if those assets are permissible investments for credit unions pursuant to this Act.
(3) Pursuant to subsection (20) of Section 13 authorizing a credit union to make reasonable contributions to civic, charitable, service, or religious corporations and to avoid the cost, administrative expenses, and reporting requirements associated with establishing its own private foundation, a credit union may establish one or more donor-advised fund accounts. The credit union shall maintain the account on its books and records under a name it selects, which may identify the account as a charitable or grant fund or other name that reflects the charitable nature of the account. The account shall be subject to the terms and restrictions set forth in this subsection.
(a) Transfers from a donor-advised fund account shall     be limited to foundations exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.
(b) Distributions by a foundation receiving     donor-advised funds from the credit union shall be:
(i) based upon specific grant recommendations of         the credit union; and
(ii) limited to public charities exempt from         taxation under Section 501(c)(3) of the Internal Revenue Code.
(c) Transfers by a credit union from its     donor-advised fund account to a foundation irrevocably conveys all right, title, and interest in the funds to the foundation, subject only to the continuing right of the credit union to designate the entity or entities that will receive the grant funds. Grants may not be used to satisfy any obligation of the credit union and no goods or services may be received by the credit union from the recipient organization in consideration of the grant. (Source: P.A. 102-774, eff. 5-13-22.)
(205 ILCS 305/40) (from Ch. 17, par. 4441)
Sec. 40. Shares to minors.   Shares may be issued in the name of a minor
or in the name of a custodian under the Illinois Uniform Transfers to Minors
Act, as amended.  If shares are issued in the name of a minor, redemption
of any part or all of the shares by payment to the minor or upon order of the
minor of the amount of
the shares and any declared dividends releases the credit union from all
obligations to the minor as to the shares redeemed.  Further, if shares
are issued in the name of a minor, the minor shall be considered as being
of the age of majority and having contractual capacity.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/41) (from Ch. 17, par. 4442)
Sec. 41. Joint accounts. Shares shall be issued in the name of the owner
and may be issued in the name of 2 or more persons in joint tenancy, or
in survivorship, in which case payment may be made, in whole or in part,
to any of the named persons whether the others are living or dead, if an
agreement permitting such payment was signed and dated by all persons when
the shares were issued or thereafter.  Only one of the persons must have
the common bond of association, community or occupation specified in this
Act and only that person may vote in a meeting of the members, obtain loans,
hold office or be required to pay an entrance fee.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/42) (from Ch. 17, par. 4443)
Sec. 42. Shares in trust.
(1) Shares may be issued in trust to a member
as trustee or to an individual or corporate trustee.  If a corporate trustee
is a bank or trust company, shares may be issued to the corporate trustee
only if such bank or trust company is organized under the laws of
the State of Illinois or is a nationally chartered bank located principally
in the State of Illinois.  An individual trustee shall be a member of the
credit union unless the person establishing the trust in respect to which
such shares are issued or each beneficiary of the trust is a member of the
credit union and the name of each beneficiary is disclosed to the credit
union.  Shares may also be issued in the name of an individual or corporate
representative under the Illinois Probate Act of 1975 (i) for or
in respect to a member of a credit union; or (ii) for or in respect of a nonmember of a credit union, if the representative is an individual who is a member of the credit union.  Shares may also be issued in
trust under the Illinois Funeral or Burial Funds Act, for or in respect
to a member of a credit union, to a trustee licensed under said Act.
Any credit union which issues shares in trust as provided in this Section
must be insured by the NCUA or another approved insurer.   Payment of part or all of such shares to such trustee or member
shall, to the extent of such payment, discharge the liability of the credit
union to the member and the beneficiary and the credit union shall be under
no obligation to see to the application of such payment.
(2) If a credit union's shares are insured as provided for in this Act,
such credit union shall have power to act as trustee or custodian under
individual retirement accounts or plans, health savings accounts, and similar tax-advantaged savings plans established pursuant to the Internal Revenue Code for its members or groups or
organizations
of its members provided the funds of such accounts or plans are invested
solely in (1) share accounts of, or (2) share accounts and obligations issued
by such credit union.  All funds held in such fiduciary capacity shall be
maintained in accordance with applicable statutes and regulations promulgated
thereunder by any authority exercising jurisdiction over such trusts or
custodial accounts.
(3) Notwithstanding any language to the contrary in this Section 42, a
credit union may act as trustee or custodian of individual retirement plans
of its members established pursuant to the Employee Retirement Income
Security Act of 1974 or self-employed retirement plans established pursuant
to the Self-Employed Individuals Retirement Act of 1962, and any laws
amendatory or supplementary to such Acts, provided that:
(a) All contributions of funds are initially made to     a share account in the credit union;
(b) Any subsequent transfer of funds to other assets     is solely at the direction of the member and the credit union performs only custodial duties, exercises no investment discretion and provides no investment advice with respect to plan assets;
(c) The member is notified of the fact that share     insurance coverage is limited to funds held in share accounts; and
(d) The credit union complies with all applicable     provisions of this Act and applicable laws and regulations as may be promulgated by any authority exercising jurisdiction over such trust or custodial accounts.
(Source: P.A. 102-774, eff. 5-13-22.)
(205 ILCS 305/42.5)
Sec. 42.5. Marketing of services.  For purposes of promoting its services to persons eligible for membership, a credit union may sell to persons within its field of membership negotiable checks, including travelers checks, money orders, and similar money transfer instruments (including international and domestic electronic fund transfers) and may cash checks and money orders, and may receive international and domestic electronic fund transfers for such persons for a fee.
(Source: P.A. 96-141, eff. 8-7-09.)
(205 ILCS 305/42.7)
Sec. 42.7. Savings promotion raffle.
(a) As used in this Section, "savings promotion raffle" means a raffle conducted by a credit union where the sole consideration required for a chance of winning designated prizes is the deposit of at least a specified amount of money in a savings account or other savings program offered by the credit union.
(b) If authorized by its board of directors, a credit union may conduct a savings promotion raffle. The savings promotion raffle shall be conducted so that each token or ticket representing an entry in the savings promotion raffle has an equal chance of being drawn. A credit union shall not conduct a savings promotion raffle in a manner that jeopardizes the credit union's safety and soundness or mislead its members.
(c) The Secretary may examine the conduct of a savings promotion raffle and may issue a cease and desist order for a violation of this Section.
(d) A credit union shall maintain records sufficient to facilitate an audit of the savings promotion raffle.
(Source: P.A. 99-149, eff. 1-1-16.)
(205 ILCS 305/43) (from Ch. 17, par. 4444)
Sec. 43. 
		Liens. 
		Without being required to take any action to perfect
the same, a credit union shall have a lien on the shares, accumulated dividends
or interest of a member in his individual, joint or trust account, for any
sum due the credit union from said member or for any loan cosigned or guaranteed
by him; provided, however, that a credit union shall not have a lien upon
the funds in an Individual Retirement Account or an account established
pursuant to Section 401(d) or (f) or Section 408(a) of the Internal Revenue
Code or similar provisions of any future internal revenue law of the United
States.  A credit union may refuse to allow the withdrawal of a member's
shares while the member has any outstanding obligation to the credit union.
A member's shares may be offset against any sum due to the credit union.
The enforcing of such lien shall be governed by this Act and by the terms
of any written agreement between a credit union and its members and not
by the provisions of any other statute.
(Source: P.A. 81-329.)
(205 ILCS 305/43.1)
Sec. 43.1. Enforcement of child support.
(a) Any credit
union governed by this Act shall encumber or surrender accounts or assets
held by the credit union on behalf of any responsible relative who is subject
to
a child support lien, upon notice of the lien or levy of the Department of Healthcare and Family Services or its successor agency pursuant to Section 10-25.5
of the Illinois Public Aid Code, or upon notice of interstate lien from any
other state's agency responsible for implementing the child support enforcement
program set forth in Title IV, Part D of the Social Security Act.
(b) Within 90 days after receiving notice from the Department of Healthcare and Family Services that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each credit union governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the credit union.  Upon receiving from the Department of Healthcare and Family Services a copy of a child support enforcement debit authorization form signed by an obligor, a credit union holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/44) (from Ch. 17, par. 4445)
Sec. 44. Share accounts; garnishment. A credit union may be subject
to garnishment proceedings concerning the share accounts of its members.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/44.1)
Sec. 44.1. Unclaimed property; dormancy or escheat fee. A credit union may deduct a dormancy charge or an escheat fee from property required to be paid or delivered to the administrator under the Revised Uniform Unclaimed Property Act, provided the amount of the deduction is consistent with the standards set forth in subsection (b) of Section 15-602 of that Act. In making the deduction, a credit union may allocate, classify, and record all or a portion of the deduction, as applicable, as the minimum share amount required to preserve the member's status as a member of the credit union.
(Source: P.A. 101-567, eff. 8-23-19.)
(205 ILCS 305/45) (from Ch. 17, par. 4446)
Sec. 45. Reduction in shares. Whenever the losses of any credit union,
resulting from a depreciation in value of its loans or investments or otherwise,
exceed its undivided earnings and reserve fund so that the estimated value
of its assets is less than the total amount due the holders of share accounts,
the credit union, may, by a majority vote of the entire membership, with
approval by the Department, order a reduction in the shares of each of its
shareholders to divide the loss proportionately among the holders of shares
in accordance with such terms and conditions as the Department may prescribe.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/46) (from Ch. 17, par. 4447)
Sec. 46. Loans and interest rate.
(1) A credit union may make loans
to its members for such purpose and upon such security and terms, including
rates of interest, as the credit committee, credit manager, or loan officer
approves.
Notwithstanding the provisions of any other law in connection with extensions
of credit, a credit union may elect to
contract for and receive interest and fees and other charges for extensions of
credit subject only to the provisions of this Act and rules promulgated under
this Act, except that extensions of credit secured by residential real estate
shall be subject to the laws applicable thereto.
The rates of interest to be charged on loans to members shall be
set by the board of directors of each individual credit union in accordance with Section 30 of this Act and such
rates may be less than, but may not exceed, the maximum rate set forth in
this Section.  A borrower may repay his loan prior to maturity, in whole or
in part, without penalty. A prepayment penalty does not include a waived, bona fide third-party charge that the credit union imposes if the borrower prepays all of the transaction's principal sooner than 36 months after consummation of a closed-end credit transaction, a waived, bona fide third-party charge that the credit union imposes if the borrower terminates an open-end credit plan sooner than 36 months after account opening, or a yield maintenance fee imposed on a business loan transaction. The credit contract may provide for the payment
by the member and receipt by the credit union of all costs and
disbursements, including reasonable attorney's fees and collection agency
charges, incurred by the credit union to collect or enforce the debt in the
event of a delinquency by the member, or in the event of a breach of any
obligation of the member under the credit contract.  A contingency or
hourly arrangement established under an agreement entered into by a credit
union with an attorney or collection agency to collect a loan of a member
in default shall be presumed prima facie reasonable.
(2) Credit unions may make loans based upon the security of any
interest or equity in real estate, subject to rules and regulations
promulgated by the Secretary. In any contract or loan which
is secured by a mortgage, deed of
trust, or conveyance in the nature of a mortgage, on residential real
estate, the interest which is computed, calculated, charged, or collected
pursuant to such contract or loan, or pursuant to any regulation or rule
promulgated pursuant to this Act, may not be computed, calculated, charged
or collected for any period of time occurring after the date on which the
total indebtedness, with the exception of late payment penalties, is paid
in full.
For purposes of this subsection (2) of this Section 46, a prepayment
shall mean the payment of the total indebtedness, with the exception of
late payment penalties if incurred or charged, on any date before the date
specified in the contract or loan agreement on which the total indebtedness
shall be paid in full, or before the date on which all payments, if timely
made, shall have been made.  In the event of a prepayment of the
indebtedness which is made on a date
after the date on which interest on the indebtedness was last computed,
calculated, charged, or collected but before the next date on which interest
on the indebtedness was to be calculated, computed, charged, or collected,
the lender may calculate, charge and collect interest on the indebtedness
for the period which elapsed between the date on which the prepayment is
made and the date on which interest on the indebtedness was last computed,
calculated, charged or collected at a rate equal to 1/360 of the annual
rate for each day which so elapsed, which rate shall be applied to the
indebtedness outstanding as of the date of prepayment.  The lender shall
refund to the borrower any interest charged or collected which exceeds that
which the lender may charge or collect pursuant to the preceding sentence.
(3) (Blank).
(4) Notwithstanding any other provisions of this Act, a credit union
authorized under this Act to make loans secured by an interest or equity
in real property may engage in making revolving credit loans secured by
mortgages or deeds of trust on such real property or by security
assignments of  beneficial interests in land trusts.
For purposes of this Section, "revolving credit" has the meaning defined
in Section 4.1 of the Interest Act.
Any mortgage or deed of trust given to secure a revolving credit loan may,
and when so expressed therein shall, secure not only the existing indebtedness
but also such future advances, whether such advances are obligatory or to
be made at the option of the lender, or otherwise, as are made within 20 
years from the date thereof, to the same extent as if such future advances
were made on the date of the execution of such mortgage or deed of trust,
although there may be no advance made at the time of execution of such mortgage
or other instrument, and although there may be no indebtedness outstanding
at the time any advance is made.  The lien of such mortgage or deed of trust,
as to third persons
without actual notice thereof, shall be valid as to all such indebtedness
and future advances from the time said mortgage or deed of trust is filed
for record in the office of the recorder of deeds or the registrar of titles
of the county where the real property described therein is located.  The
total amount of indebtedness that may be so secured may increase or decrease
from time to time, but the total unpaid balance so secured at any one time
shall not exceed a maximum principal amount which must be specified in such
mortgage or deed of trust, plus interest thereon, and any disbursements
made for the payment of taxes, special assessments, or insurance on said
real property, with interest on such disbursements.
Any such mortgage or deed of trust shall be valid and have priority over
all subsequent liens and encumbrances, including statutory liens, except
taxes and assessments levied on said real property.
(4-5)  For purposes of this  Section, "real estate" and "real property" include a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code which is real property as defined in Section 5-35 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
(5) Compliance with federal or Illinois preemptive laws or regulations
governing loans made by a credit union chartered under this Act shall
constitute compliance with this Act.
(6) Credit unions may make residential real estate mortgage loans on terms and conditions established by the United States Department of Agriculture through its Rural Development Housing and Community Facilities Program. The portion of any loan in excess of the appraised value of the real estate shall be allocable only to the guarantee fee required under the program.
(7) For a renewal, refinancing, or restructuring of an existing loan at the credit union that is secured by an interest or equity in real estate, a new appraisal of the collateral shall not be required when (i) no new moneys are advanced other than funds necessary to cover reasonable closing costs, or (ii) there has been no obvious or material change in market conditions or physical aspects of the real estate that threatens the adequacy of the credit union's real estate collateral protection after the transaction, even with the advancement of new moneys. The Department reserves the right to require an appraisal under this subsection (7) whenever the Department believes it is necessary to address safety and soundness concerns.
(Source: P.A. 102-558, eff. 8-20-21.)
(205 ILCS 305/46.1) (from Ch. 17, par. 4447.1)
Sec. 46.1. (Repealed).
(Source: P.A. 98-749, eff. 7-16-14. Repealed by P.A. 99-331, eff. 1-1-16.)
(205 ILCS 305/46.2)
Sec. 46.2. 
		(Repealed).
(Source: P.A. 92-577, eff. 6-26-02. Repealed by P.A. 99-331, eff. 1-1-16.)
(205 ILCS 305/47) (from Ch. 17, par. 4448)
Sec. 47. Loan applications. Every application for a loan shall be made
in the manner prescribed by the credit committee, credit manager, or loan
officer. The application shall state the purpose for which the
loan is desired, and the security, if any, offered. Each loan shall be evidenced
by a written document or by a record electronically stored or generated by any electronic or computer-generated process that accurately reproduces or records the agreement, transaction, act, occurrence, or event. The signature of any party to the loan includes any symbol executed or adopted, or any security procedure employed or adopted, using electronic means or otherwise, by or on behalf of a person with intent to authenticate a record.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/48) (from Ch. 17, par. 4449)
Sec. 48. Loan limit. Within any limitations set forth in a policy adopted by the board of directors, a credit union may place a limit upon the aggregate
amount to be loaned to or cosigned for by any one member provided that no loan shall be made to any
member in an aggregate amount in excess of 10% of the credit union's
unimpaired capital
and surplus. Such loan limits shall not be subject to reduction by rules adopted by the Secretary.
(Source: P.A. 103-289, eff. 7-28-23.)
(205 ILCS 305/49) (from Ch. 17, par. 4450)
Sec. 49. Security. In addition to generally accepted types of security,
the endorsement of a note by a surety, comaker or guarantor, or assignment
of shares or wages, in a manner consistent with the laws of this State,
shall be deemed security within the meaning of this Act.  A credit union
shall give each surety, guarantor or comaker a copy of the instrument
evidencing the indebtedness.  The adequacy of any security shall be
determined by the credit committee, credit manager or loan officer, subject
to this Act and the bylaws of the credit union. The surety, guarantor or
comaker may, but need not, be a member of the credit union making the loan.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/50) (from Ch. 17, par. 4451)
Sec. 50. 
		Line of credit.
(1) A credit union may grant a self-replenishing
line of credit to a member up to a stated maximum amount.  The terms and
conditions upon which a line of credit is extended to any member may be
different from the terms and conditions established for another member.
Where a line of credit has been approved, no additional loan applications
are required as long as the total outstanding advances under the line of
credit do not exceed the maximum amount as stated in the line of credit
agreement.
(2) The term "line of credit" means a type of credit agreement including,
without limitation, a credit card agreement.  Each line of credit advance
constitutes a loan, and provisions in this Act regarding loans are equally
applicable to lines of credit.
(Source: P.A. 90-222, eff. 7-25-97.)
(205 ILCS 305/51) (from Ch. 17, par. 4452)
Sec. 51. Other loan programs.
(1) Subject to such rules and regulations
as the Secretary may promulgate, a credit union may participate in loans
to credit union members jointly with other credit unions, corporations, or
financial institutions.  An originating credit union may originate
loans only to its own members.  A participating credit union that is
not the originating lender may participate in loans made to its own members or
to members of another participating credit union.
"Originating lender" means the participating credit union with which the member
contracts.  A master participation agreement must be properly executed, and the
agreement must include provisions for identifying, either through documents
incorporated by reference or directly in the agreement, the participation loan
or loans prior to their sale.
(2) Any credit union with assets of $500,000 or more may loan to its members
under scholarship programs which are
subject to a federal or state law providing 100% repayment guarantee.
(3) A credit union may purchase the conditional sales
contracts, notes
and similar instruments which evidence an indebtedness of its members. In the management of its assets, liabilities, and liquidity, a credit union may purchase the conditional sales contracts, notes, and other similar instruments that evidence the consumer indebtedness of the members of another credit union. "Consumer indebtedness" means indebtedness incurred for personal, family, or household purposes.
(4) With approval of the board of directors, a credit union may make loans,
either on its own or jointly with other credit unions, corporations or
financial
institutions, to credit union organizations; provided, that the aggregate
amount of all such loans outstanding shall not at any time exceed the greater
of 6% of the paid-in and unimpaired capital and surplus of the credit
union or the amount authorized for federal credit unions.
(5)   With the approval of the board of directors, a credit union may make loans, either on its own or jointly with other credit unions, corporations, or financial institutions, to community development financial institutions as defined in regulations issued by the U.S. Department of the Treasury and minority depository institutions as defined by the National Credit Union Administration. The aggregate amount of all such loans outstanding shall not at any time exceed 5% of the paid-in and unimpaired capital and surplus of the credit union.
(Source: P.A. 102-496, eff. 8-20-21.)
(205 ILCS 305/52) (from Ch. 17, par. 4453)
Sec. 52. Loans to directors, officers, credit committee, 
and supervisory
committee members.    A credit union may make loans to its directors,
officers, credit committee members, and supervisory
committee members, provided
that the loan complies with all lawful requirements under this Act with
respect to loans to other borrowers.  No loan may be made to or cosigned
by any director, officer, credit committee member, or supervisory
committee
member which would cause the aggregate amount of all loans then outstanding
to or cosigned by all directors, officers, credit committee members, or supervisory
committee
 members to exceed 20% of the unimpaired capital and
surplus of the credit union.
(Source: P.A. 99-614, eff. 7-22-16.)
(205 ILCS 305/53) (from Ch. 17, par. 4454)
Sec. 53. Loans to credit unions. A credit union may make loans to other
credit unions if so provided and within the limits set forth in a policy adopted by the board of directors.
(Source: P.A. 100-361, eff. 8-25-17.)
(205 ILCS 305/54) (from Ch. 17, par. 4455)
Sec. 54. Loans to associations. A credit union may make loans to
any credit union association or corporation, of which the credit union is
a member or shareholder, except that the aggregate of all such loans shall
not exceed 5% of the assets of the credit union.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/55) (from Ch. 17, par. 4456)
Sec. 55. Insurance for members.
(1) A credit union may purchase or make
available insurance for its members.
(2) A credit union may enter into cooperative marketing arrangements to
facilitate its members' voluntary purchase of insurance including, but not
by way of limitation, life insurance, disability insurance, accident and
health insurance, property insurance, liability insurance and legal expense
insurance.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/56) (from Ch. 17, par. 4457)
Sec. 56. Liability insurance for directors and officers. A credit union
may purchase and maintain insurance on behalf of any person who is or was
a director, officer, committee member, employee or agent of the credit union
as a director, officer, committee member, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise against any liability
asserted against such person incurred by such person in any such capacity
or arising out of such person's status as such, whether or not the credit
union would have the power to indemnify such person against such liability.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/57) (from Ch. 17, par. 4458)
Sec. 57. Group purchasing and marketing.
(a) A credit union may, consistent with rules
and regulations promulgated by the Secretary, enter into cooperative marketing
arrangements to facilitate its members' voluntary purchase of such goods
and services as are in the interest of improving economic and social conditions
of the members.
(b) A credit union may create and use descriptive and brand references to promote and market its identity, services, and products to its members. In the case of a merger pursuant to Section 63, the surviving credit union may identify the merging credit union as a division, branch, unit, or other descriptive reference that ensures the members understand they are dealing with one credit union rather than multiple credit unions, as of the effective date of the merger.
(Source: P.A. 102-496, eff. 8-20-21.)
(205 ILCS 305/57.1)
Sec. 57.1. Services to other credit unions. A credit union may act as a representative of and enter into an agreement with credit unions or other organizations for the purposes of:
(1) sharing, utilizing, renting, leasing, purchasing,     selling, and joint ownership of fixed assets or engaging in activities and services that relate to the daily operations of credit unions; and
(2) providing correspondent services to other credit     unions or other organizations that the service provider credit union is authorized to perform for its own members or as part of its operations, including, but not limited to, loan processing, loan servicing, member check cashing services, disbursing share withdrawals and loan proceeds, cashing and selling money orders, ACH and wire transfer services, implementation and  administrative support services related to the use of debit cards, payroll debit  cards, and other prepaid debit cards and  credit cards, coin and currency services, performing internal audits, and automated teller machine deposit services.
(Source: P.A. 100-201, eff. 8-18-17; 101-567, eff. 8-23-19.)
(205 ILCS 305/58) (from Ch. 17, par. 4459)
Sec. 58. Share insurance.
(1) Each credit union operating in this State shall insure its share
accounts with the NCUA, under 12 U.S.C. 1781 to 1790 or with such other insurers as may be jointly
approved by the Secretary of Financial and Professional Regulation and the Director of
Insurance.  Each approved insurer shall be found to be financially sound and to
employ approved actuarial practices.  The Secretary shall determine that a firm
commitment to insure share accounts has been issued before a charter may be
granted for a new credit union.
(2) A credit union which has been denied a commitment of insurance of
accounts shall either dissolve, merge with another credit union, or apply
in writing, within 30 days of denial, to the Secretary for additional time
to obtain an insurance commitment.  The Secretary may grant up to 24 months
additional time upon satisfactory evidence that the credit union is making
a substantial effort to achieve the conditions precedent to issuance of the
commitment.
(3) The Secretary shall cooperate with the NCUA  or other approved insurers
by furnishing copies of financial and examination reports and other information
bearing on the financial condition of any credit union.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/59) (from Ch. 17, par. 4460)
Sec. 59. Investment of funds.
(a) Funds not used in loans to members may be
invested, pursuant to subsection (7) of Section 30 of this Act, and
subject to Departmental rules and
regulations:
(1) In securities, obligations or other instruments     of or issued by or fully guaranteed as to principal and interest by the United States of America or any agency thereof or in any trust or trusts established for investing directly or collectively in the same;
(2) In obligations of any state of the United States,     the District of Columbia, the Commonwealth of Puerto Rico, and the several territories organized by Congress, or any political subdivision thereof; however, a credit union may not invest more than 10% of its unimpaired capital and surplus in the obligations of one issuer, exclusive of general obligations of the issuer, and investments in municipal securities must be limited to securities rated in one of the 4 highest rating investment grades by a nationally recognized statistical rating organization;
(3) In certificates of deposit or passbook type     accounts issued by a state or national bank, mutual savings bank or savings and loan association; provided that such institutions have their accounts insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation; but provided, further, that a credit union's investment in an account in any one institution may exceed the insured limit on accounts;
(4) In shares, classes of shares or share     certificates of other credit unions, including, but not limited to, corporate credit unions; provided that such credit unions have their members' accounts insured by the NCUA or other approved insurers, and that if the members' accounts are so insured, a credit union's investment may exceed the insured limit on accounts;
(5) In shares of a cooperative society organized     under the laws of this State or the laws of the United States in the total amount not exceeding 10% of the unimpaired capital and surplus of the credit union; provided that such investment shall first be approved by the Department;
(6) In obligations of the State of Israel, or     obligations fully guaranteed by the State of Israel as to payment of principal and interest;
(7) In shares, stocks or obligations of other     financial institutions in the total amount not exceeding 5% of the unimpaired capital and surplus of the credit union;
(8) In federal funds and bankers' acceptances;
(9) In shares or stocks of Credit Union Service     Organizations in the total amount not exceeding the greater of 6% of the unimpaired capital and surplus of the credit union or the amount authorized for federal credit unions;
(10) In corporate bonds identified as investment     grade by at least one nationally recognized statistical rating organization, provided that:
(i) the board of directors has established a         written policy that addresses corporate bond investment procedures and how the credit union will manage credit risk, interest rate risk, liquidity risk, and concentration risk; and
(ii) the credit union has documented in its         records that a credit analysis of a particular investment and the issuing entity was conducted by the credit union, a third party on behalf of the credit union qualified by education or experience to assess the risk characteristics of corporate bonds, or a nationally recognized statistical rating agency before purchasing the investment and the analysis is updated at least annually for as long as it holds the investment;
(11) To aid in the credit union's management of its     assets, liabilities, and liquidity in the purchase of an investment interest in a pool of loans, in whole or in part and without regard to the membership of the borrowers, from other depository institutions and financial type institutions, including mortgage banks, finance companies, insurance companies, and other loan sellers, subject to such safety and soundness standards, limitations, and qualifications as the Department may establish by rule or guidance from time to time;
(12)   To aid in the credit union's management of its     assets, liabilities, and liquidity by receiving funds from another financial institution as evidenced by certificates of deposit, share certificates, or other classes of shares issued by the credit union to the financial institution;
(13)   In the purchase and assumption of assets held     by other financial institutions, with approval of the Secretary and subject to any safety and soundness standards, limitations, and qualifications as the Department may establish by rule or guidance from time to time;
(14)   In the shares, stocks, or obligations of     community development financial institutions as defined in regulations issued by the U.S. Department of the Treasury and minority depository institutions as defined by the National Credit Union Administration; however the aggregate amount of all such investments shall not at any time exceed 5% of the paid-in and unimpaired capital and surplus of the credit union; and
(15)(A)   In shares, stocks, or member units of     financial technology companies in the total amount not exceeding 2.5% of the net worth of the credit union, so long as:
(i)   the credit union would remain well         capitalized as defined by 12 CFR 702.102 if the credit union reduced its net worth by the full investment amount at the time the investment is made or at any point during the time the investment is held by the credit union;
(ii)   the credit union and the financial         technology company are operated in a manner that demonstrates to the public the separate corporate existence of the credit union and financial technology company; and
(iii)   the credit union has received a composite         rating of 1 or 2 under the CAMELS supervisory rating system.
(B)   The investment limit in subparagraph (A) of     this paragraph (15) is increased to 5% of the net worth of the credit union if it has received a management rating of 1 under the CAMELS supervisory rating system at the time a specific investment is made and at all times during the term of the investment. A credit union that satisfies the criteria in subparagraph (A) of this paragraph (15) and this subparagraph may request approval from the Secretary for an exception to the 5% limit up to a limit of 10% of the net worth of the credit union, subject to such safety and soundness standards, limitations, and qualifications as the Department may establish by rule or guidance from time to time. The request shall be in writing and substantiate the need for the higher limit, describe the credit union's record of investment activity, and include financial statements reflecting a sound fiscal history.
(C)   Before investing in a financial technology     company, the credit union shall obtain a written legal opinion as to whether the financial technology company is established in a manner that will limit potential exposure of the credit union to no more than the loss of funds invested in the financial technology company and the legal opinion shall:
(i)   address factors that have led courts to         "pierce the corporate veil", such as inadequate capitalization, lack of separate corporate identity, common boards of directors and employees, control of one entity over another, and lack of separate books and records; and
(ii)   be provided by independent legal counsel         of the credit union.
(D)   Before investing in the financial technology     company, the credit union shall enter into a written investment agreement with the financial technology company and the agreement shall contain the following clauses:
(i)   the financial technology company will: (I)         provide the Department with access to the books and records of the financial technology company relating to the investment made by the credit union, with the costs of examining those records borne by the credit union in accordance with the per diem rate established by the Department by rule; (II) follow generally accepted accounting principles; and (III) provide the credit union with its financial statements on at least a quarterly basis and certified public accountant audited financial statements on an annual basis; and
(ii)   the financial technology company and         credit union agree to terminate their contractual relationship: (I) upon 90 days' written notice to the parties by the Secretary that the safety and soundness of the credit union is threatened pursuant to the Department's cease and desist and suspension authority in Sections 8 and 61; (II) upon 30 days' written notice to the parties if the credit union's net worth ratio falls below the level that classifies it as well capitalized as defined by 12 CFR 702.102; and (III) immediately upon the parties' receipt of written notice from the Secretary when the Secretary reasonably concludes, based upon specific facts set forth in the notice to the parties, that the credit union will suffer immediate, substantial, and irreparable injury or loss if it remains a party to the investment agreement.
(E)   The termination of the investment agreement     between the financial technology company and credit union shall in no way operate to relieve the financial technology company from repaying the investment or other obligation due and owing the credit union at the time of termination.
(F)   Any financial technology company in which a     credit union invests pursuant to this paragraph (15) that directly or indirectly originates, purchases, facilitates, brokers, or services loans to consumers in Illinois shall not charge an interest rate that exceeds the applicable maximum rate established by the Board of the National Credit Union Administration pursuant to 12 CFR 701.21(c)(7)(iii)-(iv). The maximum interest rate described in this subparagraph that may be charged by a financial technology company applies to all consumer loans and consumer credit products.
(b) As used in this Section:
"Political subdivision" includes, but is not
limited to, counties,
townships, cities, villages, incorporated towns, school districts, educational
service regions, special road districts, public water supply districts, fire
protection districts, drainage districts, levee districts, sewer districts,
housing authorities, park districts, and any
agency, corporation, or instrumentality of a state or its political
subdivisions, whether now or hereafter created and whether herein specifically
mentioned or not.
"Financial institution" includes any bank, savings bank, savings and loan association, or credit union established under the laws of the United States, this State, or any other state.
"Financial technology company" includes any corporation, partnership, limited liability company, or other entity organized under the laws of Illinois, another state, or the United States of America:
(1) that the principal business of which is the     provision of financial products or financial services, or both, that:
(i) currently relate or may prospectively relate         to the daily operations of credit unions;
(ii) are of current or prospective benefit to the         members of credit unions; or
(iii) are of current or prospective benefit to         consumers eligible for membership in credit unions; and
(2) that applies technological interventions,     including, without limitation, specialized software or algorithm processes, products, or solutions, to improve and automate the delivery and use of those financial products or financial services.
(c) A credit union investing to fund an employee benefit plan obligation is not subject to the investment limitations of this Act and this Section and may purchase an investment that would otherwise be impermissible if the investment is directly related to the credit union's obligation under the employee benefit plan and the credit union holds the investment only for so long as it has an actual or potential obligation under the employee benefit plan.
(d) If a credit union acquires loans from another financial institution or financial-type institution pursuant to this Section, the credit union shall be authorized to provide loan servicing and collection services in connection with those loans.
(Source: P.A. 102-496, eff. 8-20-21; 102-774, eff. 5-13-22; 102-858, eff. 5-13-22; 103-154, eff. 6-30-23.)
(205 ILCS 305/60) (from Ch. 17, par. 4461)
Sec. 60. Reserves.
(A)  At the end of each accounting period the gross
income shall be determined. From this amount, there shall be set aside,
as a regular reserve against losses on loans and risk assets sums in accordance
with the following schedule:
(1) A credit union in operation for more than four     years and having assets of $500,000 or more shall set aside (A) 10 per centum of gross income until the regular reserve shall equal 4 per centum of the total outstanding loans and risk assets, then (B) 5 per centum of gross income until the regular reserve shall equal 6 per centum of the total outstanding loans and risk assets.
(2) A credit union in operation less than four years     or having assets of less than $500,000 shall set aside (A) 10 per centum of gross income until the regular reserve shall equal 7 1/2 per centum of the total outstanding loans and risk assets, then (B) 5 per centum of gross income until the regular reserve shall equal 10 per centum of the total outstanding loans and risk assets.
(3) Whenever the regular reserve falls below the     stated per centum of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the stated reserve goals.
(B) The Secretary may decrease the reserve requirement set forth in
subsection (A) of this Section when in his or her opinion such a decrease is
necessary or desirable. The Secretary may also require special reserves to
protect the interest of members.
(C) For the purpose of establishing the reserves required by this Section
all assets except the following are risk assets:
(1) Cash on hand;
(2) Real estate;
(3) Depreciated value of buildings, furnishings and     equipment;
(4) Loans to students insured under Title IV, part B     of the Higher Education Act of 1965 or the Higher Education Student Assistance Law;
(5) Loans insured under Title 1 of the National     Housing Act by the Federal Housing Administration;
(6) Funds invested as authorized under Section 59 of     this Act; and
(7) Loans fully secured by a pledge of shares in the     lending credit union equal to and maintained to at least the amount of the loan outstanding.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/61) (from Ch. 17, par. 4462)
Sec. 61. Suspension.
(1) If the Secretary determines that any credit
union is bankrupt, insolvent, impaired or that it has violated
this Act, or is operating in an unsafe or unsound manner, he shall issue
an order temporarily suspending the credit union's operations for not more than
60 days.  The board of directors shall be given notice by
registered or certified mail of such suspension, which notice shall include
the reasons for such suspension and a list of specific violations of the
Act. The Secretary shall also notify
the members of the credit union board of advisors of any suspension.  The
 Director may assess to the credit union a penalty, not to exceed the
regulatory fee as set forth in this Act, to
offset costs incurred in determining the condition of the credit union's
books and records.
(2) Upon receipt of such suspension notice, the credit union shall cease
all operations, except those authorized by the Secretary, or the Secretary may
appoint a manager-trustee to operate the credit union during the suspension
period.  The board of directors 
shall, within 10 days of the receipt of the suspension notice,
file with the Secretary a
reply to the suspension notice by
submitting  a corrective plan of action or a
request for formal hearing on said action pursuant to the Department's
rules and regulations.
(3) Upon receipt from the suspended credit union of evidence that the
conditions causing the order of suspension have been corrected, and after
determining that the proposed corrective plan of action submitted is
factual, the Secretary shall revoke
the suspension notice, permit the credit union to resume normal operations,
and notify the board of credit union advisors of such action.
(4) If the Secretary determines that the proposed corrective plan of action
will
not correct such conditions,
he may take possession and control of the credit union.  The Secretary
 may permit the credit union to operate under his direction and
control and may appoint a manager-trustee to manage its affairs until such
time as the condition requiring such action has been remedied, or in the case
of insolvency or danger of insolvency where an emergency requiring expeditious
action exists, the Secretary may involuntarily merge the credit union without
the
vote of the suspended credit union's board of directors or members (hereafter
involuntary merger)
subject
to rules promulgated by the Secretary.  No
credit union shall be required to serve as a surviving credit union in any
involuntary merger.  Upon the request of the Secretary, a credit union by a vote
of a majority of its board of directors may elect to serve as a surviving
credit union in an involuntary merger.  If the Secretary 
determines
that
the suspended
credit union should be liquidated, he may appoint a liquidating
agent and require of that person such bond and security as he considers proper.
(5) Upon receipt of a request for a formal hearing, the Secretary shall
conduct proceedings pursuant to rules and regulations of the Department.  The credit union may request the appropriate court
to stay execution of such action.  Involuntary liquidation or involuntary
merger may not be ordered
prior to the conclusion of suspension procedures outlined in this Section.
(6) If, within the suspension period, the credit union fails to answer
the suspension notice or fails to request a formal hearing, or both,
the Secretary may then (i) involuntarily merge the credit union if the credit
union is insolvent or in danger of insolvency and an emergency
requiring expeditious action exists or (ii) revoke
the credit union's charter, appoint a liquidating
agent and liquidate the
credit union.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/62) (from Ch. 17, par. 4463)
Sec. 62. Liquidation.
(1) A credit union may elect to dissolve voluntarily
and liquidate its affairs in the manner prescribed in this Section.
(2) The board of directors shall adopt a resolution recommending the credit
union be dissolved voluntarily, and directing that the question of liquidating
be submitted to the members.
(3) Within 10 days after the board of directors decides to submit the
question of liquidation to the members, the chairman or president shall
notify the Secretary thereof, in writing, setting forth the reasons for the
proposed action.  Within 10 days after the members act on the question of
liquidation, the chairman or president shall notify the Secretary, in writing,
as to whether or not  the members approved the proposed liquidation.  The Secretary
 then must determine whether this Section has been complied with
and if his decision is favorable, he shall prepare a certificate to the
effect that this Section has been complied with, a copy of which will be
retained by the Department and the other copy forwarded to the credit union.
The certificate must be filed with the recorder or if there is
no recorder, in the office of the county clerk of the county or counties in
which the credit union is operating, whereupon the credit union must cease
operations except for the purpose of its liquidation.
(4) As soon as the board of directors passes a resolution to submit the
question of liquidation to the members, payment on shares, withdrawal of
shares, making any transfer of shares to loans and interest, making investments
of any kind and granting loans shall be suspended pending action by members.
On approval by the members of such proposal, all such operations shall be
permanently discontinued.  The necessary expenses of operating shall, however,
continue to be paid on authorization of the board of directors or the liquidating agent
 during the period of liquidation.
(5) For a credit union to enter voluntary liquidation, it must be approved
by affirmative vote of the members owning a majority of the shares entitled
to vote, in person or by proxy, at a regular or special meeting of the members.
Notice, in writing, shall be given to each member, by first class mail,
at least 10 days prior to such meeting.  If liquidation is approved, the board of directors
 shall appoint a liquidating agent for the purpose of
conserving and collecting the assets, closing the affairs of the credit
union and distributing the assets as required by this Act.
(6) A liquidating credit union shall continue in existence for the purpose
of discharging its debts, collecting and distributing its assets, and doing
all acts required in order to terminate its operations and may sue and be
sued for the purpose of enforcing such debts and obligations until its affairs
are fully adjusted.
(7) Subject to such rules and regulations as the Secretary may promulgate,
the liquidating agent shall use the assets of the credit union to pay; first,
expenses incidental to liquidating including any surety bond that may be
required; then, liabilities of the credit union; then special classes of
shares.  The remaining assets shall then be distributed to the members
proportionately to the dollar value of the shares held by each member in
relation to the total dollar value of all shares outstanding as of the date the
dissolution was voted.
(8) As soon as the liquidating agent determines that all assets as to
which there is a reasonable expectancy of sale or transfer have been liquidated
and distributed as set forth in this Section, he shall execute a certificate
of dissolution on a form prescribed by the Department and file the same,
together with all pertinent books and records of the liquidating credit
union with the Department, whereupon such credit union shall be dissolved.
The liquidating agent must, within 3 years after issuance of a certificate
by the Secretary referred to in Subsection (3) of this Section, discharge
the debts of the credit union, collect and distribute its assets and do
all other acts required to wind up its business.
(9) If the Secretary determines that the liquidating agent has failed to
make reasonable progress in the liquidating of the credit union's affairs
and distribution of its assets or has violated this Act, the Secretary may
take possession and control of the credit union and remove the liquidating agent and appoint a liquidating agent to complete the liquidation under
his direction and control.  The Secretary shall fill any vacancy caused by
the resignation, death, illness, removal, desertion or incapacity to function
of the liquidating agent.
(10) Any funds representing unclaimed dividends and shares in liquidation
and remaining in the hands of the board of directors or the liquidating agent at the end of the liquidation must be deposited by them, together with
all books and papers of the credit union, with the State Treasurer in
compliance with the Revised Uniform Unclaimed Property Act.
(Source: P.A. 100-22, eff. 1-1-18.)
(205 ILCS 305/63) (from Ch. 17, par. 4464)
Sec. 63. Merger and consolidation.
(1) Any two or more credit unions,
regardless of whether or not they have the same common bond, may merge or
consolidate into a single credit union.  A merger or consolidation may be
with a credit union organized under the laws of this State or of another
state or of the United States and is subject to the approval of the Secretary. It must be made on such terms as have been agreed upon by a vote
of a majority of the board of directors of each credit union, and approved
by an affirmative vote of a majority of the members of the merging credit
union being absorbed present at a meeting, either in person or by proxy,
duly called for that purpose, except as hereinafter specified.  Notice
of the meeting stating the purpose must be sent by the
Secretary of each merging credit union being absorbed to each member by
mail at least 45 but no more than 90 days before the date of the meeting.
(2) One of the merging credit unions may continue after the merger or
consolidation either as a surviving credit union retaining its identity
or as a new credit
union as has been agreed upon under the terms of the merger.  At least
9 members of the new proposed credit union must apply to the Department
for permission to organize the new credit union.  The same procedure shall
be followed as provided for the organization of a new credit union.
(3) After approval by the members of the credit union which is to be absorbed
by the merger or consolidation, the chairman or president and the secretary
of each credit union shall execute a certificate of merger or consolidation,
which shall set forth all of the following:
(a) The time and place of the meeting of each board     of directors at which the plan was agreed upon;
(b) The vote in favor of the adoption of the plan;
(c) A copy of each resolution or other action by     which the plan was agreed upon;
(d) The time and place of the meeting of the members     of the absorbed credit union at which the plan agreed upon was approved; and,
(e) The vote by which the plan was approved by the     members of the absorbed credit union.
(4) Such certificate and a copy of the plan of merger or consolidation
agreed upon shall be mailed to the Secretary for review.  If the provisions
of this Act have been complied with, the certificate shall be approved by
him, and returned to the credit unions which are parties to the merger or
consolidation within 30 days.  When so approved by the Secretary the certificate
shall constitute the Department's certificate of approval of the merger
or consolidation.
(5) Upon issuance of the certificate of approval, each merging credit
union which was absorbed shall cease operation. Each party to the merger shall file
the certificate of approval with the Recorder or County Clerk of
the county in which the credit union has or had its principal office.
(6) Each credit union absorbed by the merger or consolidation shall return
to the Secretary the original statement of incorporation, certificate of
approval of incorporation, and the bylaws of the credit union.  The surviving
credit union shall continue its operation under its existing certificate of
approval, articles of incorporation, and the bylaws or if a new credit
union has been formed, under the new certificate of
approval, articles of incorporation, and bylaws.
(7) All rights of membership in and any obligation or liability of any
member to any credit union which is party to a consolidation or merger are
continued in the surviving or new credit union without reservation or diminution.
(8) A pending action or other judicial proceeding to which any of the
consolidating or merging credit unions is a party does not abate by reason
of the consolidation or merger.
(Source: P.A. 101-567, eff. 8-23-19.)
(205 ILCS 305/64) (from Ch. 17, par. 4465)
Sec. 64. Conversion of charter. A credit union chartered under the laws
of this State may be converted to a credit union chartered under the laws
of any other state or under the laws of the United States. A credit union
chartered under the laws of the United States or of any other state may
convert to a credit union chartered under the laws of this State.  To effect
such a conversion, a credit union must comply with all the requirements
of the jurisdiction under which it is currently chartered and such rules
and regulations as may be promulgated by the Secretary and file proof of
such compliance with the Department.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/64.5)
Sec. 64.5. Continuation of corporate entity.
(a) For purposes of this Section, a "resulting credit union" means an Illinois-chartered credit union that is the surviving credit union in a merger of 2 or more credit unions, a new credit union resulting from a consolidation of 2 or more credit unions, or a credit union that has effected a conversion from a credit union chartered under the laws of any other state or under the laws of the United States.
(b) A resulting credit union shall be considered the same business and corporate entity as each merging or consolidating credit union or as the converting credit union, with all the property, rights, powers, duties, and obligations of each merging or consolidating credit union or of the converting credit union, except as affected by the charter and bylaws of the resulting credit union.  A resulting credit union shall be liable for all liabilities of the merging or consolidating credit union or converting credit union.  All the rights, franchises, and interests of the merging or consolidating credit union or converting credit union in and to every species of property, real, personal, and mixed, and choses in action thereunto belonging, shall be deemed to be automatically transferred to and vested in the resulting credit union as a successor-in-interest without any deed or other transfer, and the resulting credit union, without any order or other action on the part of any court or otherwise, shall hold and enjoy the same and all rights of property, franchises, and interests, including appointments, designations, and nominations, and all other rights and interests as trustee, executor, administrator, registrar or transfer agent of stocks and bonds, guardian, assignee, receiver, and in every other fiduciary capacity, in the same manner and to the same extent as was held and enjoyed by the merging or consolidating credit union or the converting credit union. Any reference to a merging, consolidating, or converting credit union in any writing, whether executed or taking effect before or after the merger, consolidation, or conversion, shall be deemed a reference to the resulting credit union if not inconsistent with the other provisions of the writing.
(Source: P.A. 97-855, eff. 7-27-12.)
(205 ILCS 305/64.7)
Sec. 64.7. Network credit unions.
(a) Two or more credit unions merging pursuant to Section 63 of this Act may elect to request a network credit union designation for the surviving credit union from the Secretary. The request shall be set forth in the plan of merger and certificate of merger executed by the credit unions and submitted to the Secretary pursuant to subsection (4) of Section 63. The Secretary's approval of a certificate of merger containing a network credit union designation request shall constitute approval of the use of the network designation as a brand or other identifier of the surviving credit union. If the surviving credit union desires to include the network designation in its legal name, make any other change to its legal name, or both, it shall proceed with an amendment to the articles of incorporation and bylaws of the surviving credit union pursuant to Section 4 of this Act.
(b) A network credit union is a cooperative business structure comprised of 2 or more merging credit unions with a collective goal of efficiently serving their combined membership and gaining economies of scale through common vision, strategy and initiative. The merging credit unions shall be identified as divisional credit unions,  branches, or units of the network credit union or by other descriptive references that ensure the members understand they are dealing with one credit union rather than multiple credit unions. Descriptive and brand references may also be created and used to promote the identity, services, and products of the network credit union to its members.
(c) Each divisional credit union may have an advisory board of directors and a chief management official to assist in maintaining and leveraging its respective local identity for the benefit of the surviving credit union. The divisional credit union advisory boards shall be appointed by the network credit union board of directors. Each divisional credit union's advisory board of directors may appoint a divisional credit union chief management official and may also appoint one of its directors to serve on the network credit union's nominating committee. A divisional credit union may determine to identify its advisory board as a committee and its divisional chief management official with a title it deems reasonable and appropriate. The network credit union board of directors shall require each advisory board member to sign a confidentiality or non-disclosure agreement to ensure that information concerning the credit union remains confidential.
(d) The network credit union is the surviving legal entity in the merger and supervision, examination, audit, reporting, governance, and management shall be conducted or performed at the network credit union level. All share insurance, safety and soundness, and statutory and regulatory requirements and limitations shall be evaluated at the network credit union level.
(Source: P.A. 102-496, eff. 8-20-21.)
(205 ILCS 305/65) (from Ch. 17, par. 4466)
Sec. 65. Conformity with Federal Credit Union Act. After the effective
date of this Act, any credit union incorporated under the laws of this State
shall have all of the rights, privileges and benefits which may be exercised
by a federal credit union; provided, however, that the exercise of such
rights, privileges and benefits may not violate any provision of this Act.
In order to give effect to this provision, the Secretary shall, where necessary,
promulgate rules and regulations in substantial
conformity with those promulgated by the NCUA under the Federal Credit Union Act.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/66) (from Ch. 17, par. 4467)
Sec. 66. Illegal loans.
(1) Any officer, director or member of a committee
of a credit union who knowingly permits a loan to be made or participates
in a loan to a nonmember of the credit union, is guilty of a Class A Misdemeanor
and is primarily liable to the credit union for the amount illegally loaned,
and the illegality of the loan is not a defense in any action by the credit
union to recover the balance owing on the loan.
(2) Any officer, director, member of a committee or employee of a credit union
who solicits or accepts any payment of property or gift as consideration
for influencing the approval or granting of a loan is guilty of a Class
A Misdemeanor and is primarily liable to the credit union for the amount
loaned.  The loan is illegal and may be immediately collected in full by
the credit union.  The illegality of the loan is no defense in any action
by the credit union to recover the balance owing on the loan.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/67) (from Ch. 17, par. 4468)
Sec. 67. Use of public property. Any credit union, the membership of
which consists primarily of employees of this State or of any county, city,
village, incorporated town or school district, or of any department, agency
or instrumentality of the State and their families, may, upon application
to the appropriate officer or agency, be allotted such space as is available
in any public building, for the purpose of providing an office and meeting
place for the credit union without charge for rent or services.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/68) (from Ch. 17, par. 4469)
Sec. 68. Interest, fines, not usurious-shares and loans not to be taxed. 
Reasonable fines may be levied as provided in the bylaws of each credit
union and may be deducted from the share balance or added to the loan balance
of a member upon whom a fine is levied.  Interest or fines that may accrue
to a credit union are not usurious and they may be collected under the law
of this State.  The shares and loans provided for in this Act are not subject
to taxation.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/69) (from Ch. 17, par. 4470)
Sec. 69. Effect of invalidity of part of this Act. If a court of competent
jurisdiction shall adjudge to be invalid or unconstitutional any clause,
sentence, paragraph, section or part of this Act, such judgment
shall not affect, impair, invalidate or nullify the remainder of this Act,
but the effect thereof shall be confined to the clause, sentence, paragraph,
Section or part of this Act so adjudged to be invalid or unconstitutional.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/69.1) (from Ch. 17, par. 4470.1)
Sec. 69.1. Review under Administrative Review Law. The provisions of
the Administrative Review Law, and all amendments and modifications thereof
and the rules adopted pursuant thereto, shall apply to and govern all
proceedings for the judicial review of final administrative decisions of
the Secretary provided for under this Act.  The term "administrative
decision" is defined as in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/70) (from Ch. 17, par. 4471)
Sec. 70. Use of name, sentence.
(a) No individual, firm, association,
or body politic and corporate, including, without limitation, any corporation, limited liability company, general partnership, limited partnership, or joint venture that is not an authorized user may use any
name or title which contains the words
"credit union" or any abbreviation thereof, and such use is a Class A
Misdemeanor. For purposes of this Section, "authorized user" means a corporation organized under this Act, the credit union act of another state, or the Federal Credit Union Act, any association of such a corporation, and subsidiaries and affiliates of such an association.
(b) If the Secretary finds that an individual or entity that is not an authorized user has transacted or intends to transact business in this State in a manner that has a substantial likelihood of misleading the public by: (i) implying that the business is a credit union or (ii) using or intending to use the words "credit union", or any abbreviation thereof, in connection with its business, then the Secretary may direct the individual or entity to cease and desist from transacting its business or using the words "credit union", or any abbreviation thereof. If the individual or entity persists in transacting its business or using the words "credit union", or any abbreviation thereof, then the Secretary may impose a civil penalty of up to $10,000 for each violation. Each day that the individual or entity continues transacting business or using the words "credit union", or any abbreviation thereof, in connection with its business shall constitute a separate violation of these provisions.
(c) Except as otherwise expressly permitted by law or with the written consent of the credit union, no person or group of persons other than an authorized user may use the name of or a name similar to the name of an existing credit union when marketing or soliciting business from members or prospective members if the name or similar name is used in a manner that would cause a reasonable person to believe that the marketing material or solicitation originated from or is endorsed by the existing credit union or that the existing credit union is in any other way responsible for the marketing material or solicitation.   The following remedies shall apply:
(1) Any person who violates subsection (c) of this     Section commits a business offense and shall be fined in an amount not to exceed $5,000.
(2) In addition to any other available remedies, any     existing credit union may report an alleged violation of any provision of this Section to the Secretary. If the Secretary finds that any person or group of persons is in violation of any provision of this Section, then the Secretary  may direct that person or group of persons to cease and desist from that violation. If the Secretary issues a cease and desist order against any person or group of persons for violation of subsection (c), then the order must require that person or group of persons to cease and desist from using the offending marketing material or solicitation in Illinois.
(3) If a person or group of persons against whom the     Secretary issued the cease and desist order persists in the violation, then the Secretary may impose a civil penalty of up to $10,000 for each violation. Each day that a person or group of persons is in violation of this Section constitutes a separate violation of this Section and each instance in which marketing material or a solicitation is sent in violation of this subsection (c) constitutes a separate violation of this Section.
(d) The Secretary and the Director of the Division of Financial Institutions may adopt rules to administer the provisions of this Section.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/71) (from Ch. 17, par. 4472)
Sec. 71. False statements. Any person who knowingly makes any false statement
or report upon any application, advance, discount, purchase, purchase agreement,
repurchase agreement, commitment or loan or any change or extension
of the same to a credit union chartered by this State shall be fined not
more than $5000 or imprisoned for not more than 5 years, or both.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/72) (from Ch. 17, par. 4473)
Sec. 72. 
		Repeal. 
		"An Act to revise the law in relation to credit unions
and to repeal a certain act therein named", approved June 16, 1953, as amended,
is repealed. The repeal of this Act or any parts of any act in relation
to credit unions does not affect any right accrued or established or any
liability or penalty incurred prior to the repeal thereof.
(Source: P.A. 81-329.)