reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 185 - CREDIT UNION COMMUNITY REINVESTMENT › Subpart C - RECORDS, REPORTING, AND DISCLOSURE REQUIREMENTS; EXAMINATIONS; ENFORCEMENT › Appendix C - Examples of Community Development

Current through Register Vol. 48, No. 28, July 12, 2024
Examples of services, programs, sponsorships, donations,
				  lawful investments, deposits, memberships shares, grants, other activities
				  which may be deemed to have the primary purpose of community development
				  include, but are not limited to the following:
a) Establishment of or material support of
				  charitable donation accounts and donor advised funds that benefit charitable
				  organization which help meet the financial services needs of low-income and
				  moderate-income neighborhoods or individuals within the credit union's
				  assessment field;
b) Establishment of or material support of
				  foundations and other affiliated companies that provide programs and services
				  to meet the credit needs of low-income to moderate-income neighborhoods;
c) Material support of small credit unions as
				  defined in Section 185.20 that provide programs, products and services to meet
				  the credit needs of low-income to moderate-income individuals or
				  families;
d) Offering products and services targeted to
				  expand access to safe and affordable banking services;
e) Provision or support of community development
				  services that directly and tangibly benefit the assessment field;
f) Offering products and services and/or provision
				  of investments targeted to directly and tangibly increase climate resilience in
				  low-income to moderate-income neighborhoods;
g) Offering products and services and or provision
				  of investments targeted to directly and tangibly mitigate environmental harm in
				  low-income to moderate-income neighborhoods;
h) Offering products and services and/or the
				  provision of investments targeted to directly and tangibly mitigate the digital
				  divide in low-income and moderate-income neighborhoods.
i) Participating in Invest in Illinois or other
				  similar state or federal programs which have the primary purpose of community
				  development; and
j) Participating in an activity listed on the
				  Office of the Comptroller of the Currency's CRA Illustrative List of Qualifying
				  Activities found on the Office's website. The Secretary shall post a link to
				  the Office of the Comptroller of the Currency's CRA Illustrative List of
				  Qualifying Activities on the Department's website.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 185 - CREDIT UNION COMMUNITY REINVESTMENT › Subpart C - RECORDS, REPORTING, AND DISCLOSURE REQUIREMENTS; EXAMINATIONS; ENFORCEMENT › Appendix D - Very Small Credit Union Examination Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) Describe your activities to ascertain the financial
				  services needs of your assessment field, if any, and provide supporting
				  documentation.
b) Describe the extent of marketing, if any, to your
				  assessment field aware of the financial services offered and provide supporting
				  documentation.
c) Describe efforts and successes, if any, to assist existing
				  low-income and moderate-income residents in your assessment field to be able to
				  remain in affordable housing in their neighborhoods including, but not limited
				  to, origination of mortgage loans including and home improvement and
				  rehabilitation loans. At the discretion of the Secretary, a credit union shall
				  also be required to submit to the Department:
1) HMDA-LAR Quarterly Reports; or
2) The following applicant information:
A) Application date;
B) Loan Type;
C) Property Type;
D) Purpose;
E) Owner Occupancy;
F) Pre-approval;
G) Loan Action Taken (details and date);
H) Property Address;
I) Applicant's Ethnicity;
J) Applicant's Race;
K) Applicant's Sex; and
L) Gross Annual Income.
d) For small business lenders, the application and loan
				  details regarding origination of loans to businesses in your assessment field
				  with gross annual revenues of $1,000,000.00 or less, particularly those in
				  low-income and moderate-income neighborhoods in your assessment field.
e) Describe your participation, if any, including
				  investments, in community development and redevelopment programs, small
				  business technical assistance programs, minority-owned depository institutions,
				  community development financial institutions, and mutually-owned financial
				  institutions, if any, and provide supporting documentation.
f) Describe your efforts and successes working with
				  delinquent members in your assessment field to facilitate a resolution of the
				  delinquency and provide supporting documentation. At the discretion of the
				  Secretary, a credit union shall also be required submit to the
				  Department:
1) A delinquency report for the last six
				  months;
2) Collection notes for loans delinquent for sixty
				  or more days; and
3) Current loan status.
g) Describe your efforts and successes, if any, to offer
				  retail banking services to unbanked and underbanked persons in your assessment
				  field and provide supporting documentation.
h) Provide a written response to any public comments, if any,
				  received since your last ILCRA examination.
i) Provide any other information you believe is relevant to
				  assessing whether you are meeting the financial services needs of your
				  assessment field.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.5 - Credit Union Service Organizations

Current through Register Vol. 48, No. 28, July 12, 2024
a) The provisions of this Section apply to
				credit unions investing in or lending to a Credit Union Service Organization
				(CUSO), which is a credit union organization as defined in Section
				1.1 of the Act.
b) Prior to the initial investment in or loan
				to a CUSO, the records of the credit union shall contain the following
				information:
1) The name and location of the
				CUSO.
2) Services provided by the
				CUSO.
3) The names of the officers,
				employees and agents of the CUSO and their relationship to the credit union and
				the credit union's directors, officers, staff and members.
4) The form of organization under which the
				CUSO operates, including but not limited to corporation, limited partnership,
				general partnership, joint venture, limited liability company, or limited
				partnership.
5) The most recent
				financial statements of the credit union and the CUSO.
6) The customer base served by the
				CUSO.
7) The credit union's
				investments in or loans to other CUSOs.
8) The credit union's indebtedness to any
				other credit unions, corporations, financial institutions, credit union
				organizations, or other organizations.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.10 - Field of Membership Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) All requests to amend the field of
				membership of a credit union must be in writing and provide sufficient detail
				to establish conformance with a definition of common bond as specified in
				Section
				1.1 of the Illinois Credit
				Union Act (the Act) [205 ILCS 305 ]. At a minimum this detail must include a
				definition of the common bond, number of individuals and demographics of
				potential members, and a letter of support from a sponsor organization,
				association, or employer if applicable.
b) To change field of membership a credit
				union must amend its by-laws and articles of incorporation on forms provided by
				the Division. These amendments require the Director's approval prior to
				becoming effective.
c) The
				Division, in administering the common bond requirement of the Act, will
				evaluate changes to existing or establishment of new fields of membership
				caused by new charters, conversion, or changes in existing by-laws in
				accordance with the following criteria:
1)
				Each credit union must have a field of membership consisting of one or more of
				the following common bonds: association, occupation or community. A central
				credit union or a corporate credit union may serve only those groups or persons
				specified in the Act and its by-laws and Statement of Incorporation.
2) The common bond must conform to the Act
				and include some unifying factor which links and distinguishes a field of
				membership from the general public. A generalized common belief, philosophy, or
				agreement, is not in itself a sufficient basis for a common bond.
3) In determining whether a change in a field
				of membership is appropriate, the Division also shall consider:
A) the specific circumstances which govern
				each request;
B) the original
				assumptions and circumstances of the common bond when the charter was
				granted;
C) the sponsoring
				organization's knowledge of and support for the request;
D) the credit union's demonstrated ability to
				fully serve its existing field in a safe and sound manner.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.15 - Civil Penalty

Current through Register Vol. 48, No. 28, July 12, 2024
As provided in Section 8(6) of the Act, the amount of time
				  specified by the Department, at the Secretary's or his or her designee's
				  discretion, within which the credit union must remediate the specific
				  violations shall depend on the nature and extent of the remedial action to be
				  taken. All remedial actions must be performed to the satisfaction of the
				  Secretary or his or her designee. Additional time for remediation may be
				  granted at the Secretary's or his or her designee's discretion for good cause
				  upon written request made in good faith by the credit union.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.19 - Service of Orders

Current through Register Vol. 48, No. 28, July 12, 2024
a) Unless
				otherwise provided for in the Act, the Department may serve orders,
				administrative actions, or regulatory decisions by personal delivery, certified
				mail or email.
b) Proof of service
				by email, mail or personal delivery will be attached to the original of any
				document served. Proof of service by email shall be the email notice to which
				the document is attached. Service by email is deemed complete on the day of
				transmission. Proof of service may be verified by certification as provided for
				in Section 1-109 of the Code of Civil Procedure [735 ILCS 5 ].
c) If service is by email, the Department
				shall maintain a copy of the sent email and shall verify within one business
				day that the transmission of the email has not failed or been rejected. In the
				event of rejection or failure, absent correction of an erroneous email address,
				service shall be made by certified mail or personal delivery.
d) Each credit union shall designate and file
				an email address of record with the Department. A credit union shall notify the
				Department prior to updating its designated email address and shall annually
				verify the email address of record with the Department. A credit union may
				designate up to two secondary email addresses of record, and if so designated,
				the Department shall be required to email both the email address of record and
				the secondary email addresses of record.
e) Documents containing information that
				could reasonably be deemed personal, proprietary, confidential, or trade secret
				information or containing other information listed under
				5 ILCS
				100/10-75(b) should be served by mail
				or personal delivery.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.20 - Petition for Hearings

Current through Register Vol. 48, No. 28, July 12, 2024
When a credit union or applicant has the right to request a
				  hearing under the Act or other applicable law, a credit union shall have 90
				  days, unless otherwise specified in the Act or other applicable law, after
				  service of any order, administrative action, or regulatory decision to file a
				  Petition for Hearing pursuant to the requirements set forth in 38 Ill. Adm.
				  Code
				  100.30.
				  All administrative hearings shall be conducted in accordance with 38 Ill. Adm.
				  Code 100.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.25 - Regulatory Examination Consistency and Due Process

Current through Register Vol. 48, No. 28, July 12, 2024
To ensure consistency and due process, the Department shall
				  make every reasonable effort to adhere to the following standards of
				  performance in conducting its regulatory examinations of credit unions. To
				  supplement this Part, the Department may establish guidelines that define the
				  scope of the examination process and clarify the manner in which examination
				  items shall be resolved. The scope of the guidelines shall include, but are not
				  limited to: protocol in identifying and addressing examination findings;
				  preparation of examination reports; delivery of examination reports; and
				  procedures for enforcement actions and determining compliance with enforcement
				  actions. The guidelines furnished to credit unions by the Department may be
				  relied upon by the credit unions. The Department reserves the right to change
				  these guidelines. The Department will provide reasonable notice when any change
				  to the guidelines occurs.
a Reasonable
				Notification
1 Prior to commencement of the
				examination, the Department shall mail or email a pre-examination memorandum to
				management and the board of directors (Board) of the credit union giving
				notification of the commencement date of the examination and the information
				the Department deems necessary to conduct the examination. Prior notification
				is not required if the Department suspects criminal activity or unsafe and
				unsound activity for which advance notice may compromise or otherwise interfere
				with the examination. Prior to and during the exam, the credit union shall
				provide timely information in response to requests by the Department for
				information.
2 During each stage of
				the examination, the Department shall make a reasonable effort to provide prior
				notification to management of the credit union of all joint conferences and the
				exit meeting. It shall be the responsibility of management to contact the Board
				and applicable committees of all joint conferences and the exit
				meeting.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.30 - Cease and Desist Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				If the Secretary issues a Cease and Desist Order pursuant to Section 8(4) of
				the Act, that Cease and Desist Order will be served on the credit union in the
				manner set forth in Section 190.19, with a copy sent to each member of the
				board of directors.
b) Within 90
				days after service the Cease and Desist Order, the credit union may file a
				Petition for a Hearing pursuant to 38 Ill. Adm. Code
				100.30.
				If no Petition for Hearing is filed, or the Cease and Desist Order is agreed to
				in writing, the credit union shall be deemed to have consented to the issuance
				of the Cease and Desist Order.
c) A
				cease and desist order shall become effective upon service and shall remain
				effective until it is terminated by action of the Secretary or a reviewing
				court.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.40 - Removal or Suspension Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) Under circumstances described in Section
				8(5) of the Act, the Secretary or the Secretary's agent shall issue and serve
				upon a director, officer or committee member a written Order of Suspension to
				remove the named persons from office and/or to prohibit their further
				participation in any manner in the conduct of the affairs of the credit
				union.
b) The Order, which shall
				contain a statement of the facts constituting the grounds for the Order, shall
				be served on the credit union in the manner set forth in Section 190.19 and on
				the named persons by personal delivery or certified mail, with a copy to each
				member of the affected credit union's board of directors and the President, if
				not a director. The Order shall become effective upon service and, unless
				stayed by a court, shall remain in effect pending the completion of
				administrative proceedings as outlined in this Part.
c) Within 90 days after the service of the
				Order, the named persons may file a Petition for a Hearing pursuant to 38 Ill.
				Adm. Code
				100.30
				to request an administrative review of the Order. If no response is received or
				the Order is agreed to in writing, the persons shall be deemed to have
				consented to the issuance of an Order of Suspension, thereby prohibiting the
				named individuals from further participation in any manner in the conduct of
				affairs of any credit union chartered under the Act. The Order shall remain
				effective until it is terminated by action of the Secretary or reviewing
				court.
d) In the event that all of
				the directors of a credit union are suspended or removed, the Secretary, under
				authority of Section 61(4) of the Act, shall appoint a Manager-Trustee to
				manage the affairs of the credit union until the Secretary appoints interim
				successors to the directors to serve until the next annual members'
				meeting.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.50 - Fees

Current through Register Vol. 48, No. 28, July 12, 2024
The schedule of annual regulatory fees is contained in
				  Section 12 of the Act. In addition, pursuant to Sections 8 and 9 of the Act,
				  the Secretary prescribes the following fees:
a) Service Fee Charges:
1)........ Investigation of application for
				permission to organize a new credit
				union............................................................................
				$250
2)........ Preparation and/or
				approval of an amendment to the Articles of Incorporation or to the By-Laws:
Other than to add or convert to a community common
				  bond:
Credit unions with assets less
than $5
							 million.......................................................................
$10
Credit unions with assets of $5 million
and less than $30
							 million.......................................................
$15
Credit unions with assets of $30
million and
							 greater.................................................................
$25
To add or convert to a community common bond (irrespective of
				  credit union asset
				  size).............................................................. $250
3) Preparation and/or approval of
				standard revised set of By-Laws....... $50
4) Preparation and/or approval of
				non-standard revised set of By-Laws (excluding individual or minor
				revisions).......................................... $250
5) Photocopy of any documents per
				page.................................................. $1
6) Late filing of any report for each day
				late (excluding 5300 Reports):
Credit unions with assets less than $5
							 million......
$15
Credit unions with assets of $5 million and less than
							 $30 million....................................................
$25
Credit unions with assets of $30 million and
							 greater...................................................................
$50
7)
				Late filing of any 5300 Report for any credit union for each day late:
Credit unions with assets less than $5
							 million........................
$25
Credit unions with assets of $5 million and
							 greater.................
$50
Credit unions with assets of $50 million and
							 greater...............
$100
8)........ Preparation of a list of credit
				unions by name and address............ $100
9)........ Credit Union Act, Rules &
				Regulations and standard By-Laws in hardback
				binder..............................................................................
				$200
Credit Union Act (no
							 binder)...................................................
$50
Rules & Regulations (no
							 binder)..............................................
$50
Standard By-Laws (no
							 binder)................................................
$50
Hardback
							 Binder......................................................................
$50
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.60 - General Accounting Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) All credit unions will maintain their
				books and records in accordance with GAAP, and in such a manner as to provide
				an accurate report of financial condition, with the exception of the selection
				of the accounting method to be used or when otherwise directed by statutory
				requirements. In the event that a credit union is using the modified cash basis
				of accounting, and the Secretary determines that method causes a material
				misstatement of the financial condition of the credit union, the Secretary
				shall require that the credit union convert to the full accrual method of
				accounting, except when factors such as prohibitive cost or lack of expertise
				are evident. The Division will notify in writing any credit union required to
				convert to the full accrual method and provide 60 days to review and
				respond.
b) If the credit union
				does not concur with the Division's requirement, it may request a formal
				hearing under Section
				190.20. The order to
				change accounting procedures is stayed pending the final outcome of the
				hearing.
c) Regardless of the
				method of accounting in use, the following items must be accrued or amortized:
1) Dividends on Classes of Shares;
2) Premiums and Discounts on purchased
				investments;
3) Depreciation of
				Fixed Assets; and
4) Interest on
				investments when paid less frequently than once a year.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.70 - Loan Loss Accounting Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a) For the purpose of absorbing and reporting
				loan losses, all credit unions must establish, at a minimum, the following
				accounts in the general ledger:
1) Allowance
				for Loan Losses (ALL) - A portion of the statutory Regular Reserve segregated
				and reported as a direct reduction of loans. The ALL shall fairly present the
				value of loans and probable losses for all categories of loans. Adjustments to
				the ALL shall be made prior to the distribution or posting of any dividend to
				the accounts of members.
2)
				Provision for Loan Losses (PLL) - An expense account, immediately preceding
				dividend expense, used to reflect the cost of losses on loans. Replenishment of
				the allowance for loan losses must be expensed using the PLL account.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.80 - Use of Electronic Data Processing

Current through Register Vol. 48, No. 28, July 12, 2024
a) A credit union whose records or accounting
				system is maintained using electronic data processing (EDP) equipment must have
				such accounts and EDP programs to enable the credit union to complete in an
				accurate and timely manner all required reports and to maintain its books,
				records, all subsidiary accounts and management reports, as appropriate, in
				accordance with the Illinois Credit Union Act and Rules and Regulations
				promulgated thereunder. Delinquency listings should be completed in accordance
				with 38 Ill. Adm. Code
				190.70.
b) A credit union must notify the Division in
				writing 45 days prior to implementation of data processing system or conversion
				to a different system. This notification must include the name of the system
				and the date of conversion.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.90 - Fixed Asset Investments

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Definitions
"Fixed assets" means premises and furniture, fixtures and
				  equipment, as those terms are defined in this Section:
"Premises" includes any office, branch office, suboffice,
				  service center, parking lot, other facility, or real estate where the credit
				  union transacts or will transact business.
"Furniture, fixtures and equipment" includes all office
				  furnishings, office machines, computer hardware and software, automated
				  terminals, and heating and cooling equipment.
"Investment in fixed assets" means:
any investment in real property (improved or unimproved) that
				  is being used or is intended to be used as premises, excluding premises leased
				  for five years or less;
any leasehold improvement on premises;
the present value of the aggregate of all capital lease
				  payments pursuant to lease agreements for fixed assets, excluding lease
				  payments for premises leased for five years or less;
any investment in the bonds, stock, debentures, or other
				  obligations of a partnership or corporation or limited liability entity,
				  including a credit union service organization, holding any fixed assets used by
				  the credit union and any loans to that partnership or corporation or limited
				  liability entity; and
any investment in furniture, fixtures and equipment.
"Retained earnings" includes undivided earnings, regular
				  reserve, other reserves, and any other appropriations designated by management
				  or regulatory authorities.
b) Investment in Fixed Assets
1) Credit unions with assets of less than
				$1,000,000 that choose to invest in premises must apply to the Division for
				approval.
2) Credit unions with
				assets of $1,000,000 or more may invest in fixed assets, without the prior
				approval of the Division.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.100 - Classes of Share and Special Purpose Share Accounts

Current through Register Vol. 48, No. 28, July 12, 2024
a) Any account which is not a common share
				account shall be considered as a class of share or special purpose share
				account as applicable. Section 38 of the Illinois Credit Union Act
				[205 ILCS 305/38 ]
				requires dividends to be declared and distributed ratably among holders of
				share accounts of the same class. Variable rate dividends can be declared on
				common shares with the dividend rates determined by share balance during the
				dividend period.
b) A credit union
				may offer class(es) of shares and special purpose share account programs to its
				members provided that:
1) All specific
				offerings shall be approved by a resolution of the Board of
				Directors.
2) Class of share and
				special purpose share accounts may be issued in the same forms of ownership as
				common share accounts.
3) The par
				value of all such classes and special purpose accounts shall be the same as
				common shares.
4) All such programs
				are described in writing and prominently displayed in the office(s) of the
				credit union. Classes shall be designated as Class ONE, TWO etc. All accounts
				must be made available to members on an equal basis.
5) The terms and conditions of each class or
				special account must be fully described in writing to the member upon opening
				an account. Such description shall include how ownership of the share(s) is
				evidenced, the basis for the calculation and payment of dividends, any
				applicable penalties, any renewal options and the alternatives for receipt of
				dividend payments.
6) The credit
				union's accounting records shall give detailed information on each class, which
				shall include general ledger accounts for each share account balance, the
				dividend expense and accrued dividends payable thereon. Consolidation of
				account detail on classes of shares for reporting on the financial statement is
				permitted.
7) If a credit union's
				financial condition prevents payment of dividends on common share accounts,
				dividends may not be credited or paid on classes or special purpose shares for
				the same period. In this event, members with class of share accounts may
				withdraw shares without penalty or loss of dividends which have been paid or
				credited.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.110 - Share Drafts

Current through Register Vol. 48, No. 28, July 12, 2024
a) A credit
				union with total assets of $1 million or less may, upon resolution of the Board
				of Directors, request permission of the Division to offer share drafts to their
				members provided that:
1) the total assets of
				the credit union are at a sufficient level to support the additional costs of
				the program;
2) shares are insured
				by NCUA or other approved insurance programs;
3) the credit union has full time management
				or is serviced by a center with full time management;
4) has automated record keeping or is
				serviced by a center with such equipment; and
5) the financial trends of the credit union,
				including, but not limited to, the loan delinquency, liquidity, reserves,
				expense and growth ratios, demonstrate the credit union's ability to manage
				safely a Share Draft Program.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.120 - Bond and Insurance Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Bond:
1)
				The board of directors or liquidating agent of each credit union shall provide
				a fidelity bond in a form determined by the Secretary to meet the requirements
				of this Section and issued by a corporate surety authorized to do business in
				this State. The bond must provide coverage for the fraud and dishonesty of all
				employees, directors, officers and committee members (see Sections 20(2), (3)
				and (4) and 30(13) of the Act) and for losses caused by persons outside of the
				credit union due to theft, holdup, vandalism and other criminal acts. Coverage
				for the faithful performance of duty is an option the board of directors may
				provide for all or selected employees, directors, officers and committee
				members.
2) Each bond shall require
				the surety to give a minimum of 30 days written notice to the Credit Union
				Division of the Division prior to cancellation of any or all coverages set out
				in the bond.
3) Any form of rider
				or exclusion added to the bond must have prior approval from the Secretary, to
				insure that at least the minimum bond is in effect and not
				compromised.
4) A copy of the
				Declaration Page describing the coverage of the bond and any riders or
				exclusions are to be forwarded 10 days prior to the anniversary date or a
				change in coverage to the Division by the surety. The Declaration Page must
				show at least the following: the form number of the bond, the number of the
				bond, the name of the credit union, the rating period, or anniversary date, the
				term of the bond and the maximum limits of liability under the insuring
				clauses.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.130 - Verification of Share and Loan Accounts

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Supervisory Committee must make or
				cause to be made at least once each year a reasonable percentage verification
				of members' share and loan accounts. Except when prior written permission is
				given by the Division, for good cause shown, the verification results are to be
				reported in the Supervisory Committee Report filed with the Division. The
				verification shall be conducted by the Committee, or by a registered public
				accountant, under the supervision of the Committee.
b) Verifications Conducted by the Supervisory
				Committee
1) The Committee must test 100% of
				the accounts at least once every two years; however, the Committee may submit a
				modified program using generally accepted auditing standards for approval by
				the Division. When conducting the verification, the Committee must establish
				the following controls:
A) The commencement of
				the verification must be on a surprise basis, including taking possession and
				control of books and records, or copies thereof, necessary for the
				audit.
B) All work is to be done by
				the Supervisory Committee or its designated agents; all credit union staff,
				employees and other directors shall not be involved, other than to explain
				exceptions.
C) General notice of
				the verification is to be publicized to the membership in the credit union
				offices and by other appropriate means.
D) Separate records of members' share and
				loan account trial balances are to be maintained by the Committee; the
				Committee must also maintain a separate list of members that is to be updated
				from the Board minutes for new and terminated members.
E) All responses and communications to the
				verifications by members must be to the Supervisory Committee or its
				agents.
F) All records supporting
				the verification are to be retained by the Supervisory Committee.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.160 - Lending Limits - Consumer Loans

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				board of directors of a credit union shall, for loans other than loans secured
				by an interest in real estate, establish the maximum lending limits that shall
				not exceed the limits in the following schedule. A credit union may request
				approval from the Secretary for an exception to these limits, which shall be in
				writing substantiating the need for higher limits, shall detail the credit
				union's record of lending activity, and shall include financial statements
				reflecting sound fiscal history. In no event shall all loans to any member
				exceed, in the aggregate, 10% of the credit union's unimpaired capital and
				surplus as defined in Section
				190.2.
Total Credit
Union Assets
Maximum Unsecured Limit, Including Unsecured Credit
							 Cards
Maximum
Secured Limit
$0
-
500,000
$4,000*$
$30,000*
$500,000
-
1 million
$8,000
$38,000
$1
-
5 million
$15,000
$60,000
$5
-
10 million
$18,000
$75,000
10
-
30 million
$24,000
$98,000
$30
-
100 million
$30,000
$120,000
Over
$100 million
$48,000
$180,000
* The aggregate loans to one member may not exceed the
				  aggregate limit referenced in subsection (a).
b) The unsecured loan limits, including
				unsecured credit cards, and secured loan limits are separate limits for each
				member. Subject to the member aggregate loan limit referenced in subsection (a)
				and provided a member is credit worthy, the credit union may lend a total
				amount equal to the secured and unsecured loan limit in a single loan to any
				one member.
c) The above limits may
				be extended by the amount of the member's unencumbered share accounts, which
				must be pledged and frozen for the loan amount in excess of the
				limits.
d) All loans are to be
				granted based upon prudent lending practice and procedures and in accordance
				with written lending policies and procedures prescribed by the board of
				directors.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.165 - Business Loans

Current through Register Vol. 48, No. 28, July 12, 2024
a) Purpose and
				Scope
1) This Section is intended to
				accomplish two broad objectives. First, it sets out policy and program
				responsibilities that an Illinois chartered credit union must adopt and
				implement as part of a safe and sound commercial lending program. Second, it
				incorporates the statutory limit on the aggregate amount of member business
				loans that a federally insured credit union may make pursuant to Section 107A
				of the Federal Credit Union Act (
				12 USC
				1757a ). This Section distinguishes between
				these two distinct objectives.
2)
				Credit Unions and Loans Covered by this Section
A) This Section applies to Illinois chartered
				natural person credit unions. However, an Illinois chartered natural person
				credit union is not subject to subsections (c) and (d) if it meets all of the
				following conditions:
i) The credit union's
				total assets are less than $250 million.
ii) The credit union's aggregate amount of
				outstanding commercial loan balances and unfunded commitments, plus any
				outstanding commercial loan balances and unfunded commitments of participations
				sold, plus any outstanding commercial loan balances and unfunded commitments
				sold and serviced by the credit union total less than 15% of the credit union's
				net worth.
iii) In a given calendar
				year the amount of originated and sold commercial loans the credit union does
				not continue to service total less than 15% of the credit union's net
				worth.
B) This Section
				does not apply to loans:
i) Made by a
				corporate credit union, as defined in Section
				1.1 of the Act;
ii) Made by a federally insured credit union
				to another federally insured credit union;
iii) Made by a credit union to a credit union
				service organization, as defined in Section
				190.5;
				or
iv) Fully secured by a lien on a
				1 to 4 family residential property that is a member's primary
				residence.
3)
				Other Regulations that Apply
A) As required
				by section 741.203 of the NCUA regulations (
				12 CFR
				741.203 ), a federally insured, State
				chartered credit union must comply with sections 701.21(c)(8) (prohibited fees)
				and (d)(5) (non-preferential loans) (
				12 CFR
				701.21(c)(8) and (d)(5)
				).
B) When a credit union makes a
				commercial loan as part of a loan program in which a federal or state agency
				(or its political subdivision) insures repayment, guarantees repayment, or
				provides an advance commitment to purchase the loan in full and that program
				has requirements that are less restrictive than those required by this Section,
				the credit union may follow the loan requirements of the relevant guaranteed
				loan program.
C) The requirements
				of section 701.22 of the NCUA regulations (
				12 CFR 701.22
				) apply to a federally insured credit union's purchase of a participation
				interest in a commercial loan.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.170 - Group Purchasing

Current through Register Vol. 48, No. 28, July 12, 2024
A credit union may enter into cooperative marketing
				  arrangements that are related to the promotion of thrift and to improve the
				  economic and social conditions of its members under the following
				  conditions:
a) that participation
				whether directly or indirectly, such as supplying a list of members for mail
				soliciting, has been approved by a Board resolution and that the terms of the
				activity are in writing between the credit union and the suppliers. Before
				approving any program to be available to the membership, the Board of Directors
				must satisfy itself as to the economic merits of the program and should make
				every effort to safeguard its membership against misrepresentation or deception
				by any program sponsor.
b) the
				participation in the program must be strictly voluntary by the
				member.
c) participation in the
				program shall not be directly or indirectly a condition of a loan, nor for the
				purchase of additional shares in the credit union.
d) in operating a cooperative program, the
				credit union may not at any time carry as inventory or as any other asset,
				merchandise, services or other form of product except to the extent that such
				product or service has already been ordered or purchased by a member.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.180 - Investments

Current through Register Vol. 48, No. 28, July 12, 2024
The board of directors of a credit union shall use the
				  following procedures in managing and investing funds not being used for loans
				  to members.
a) The board must develop
				a written investment policy that includes, at a minimum:
1) persons authorized to take investment
				actions and the kinds of investments permitted the designated person or
				committee;
2) limits by amount and
				term of the investments;
3)
				procedure for approval of all broker or advisor relationships;
4) procedure for safekeeping of
				securities.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.185 - Investment in "Other Financial Institutions"

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of Section 59(a)(7) of the Act, the term "other
				  financial institution" means a bank established under the laws of this or any
				  other state or established under the laws of the United States, a savings and
				  loan association or savings bank established under the laws of this or any
				  other state or established under the laws of the United States, a credit union
				  established under the laws of this or any other state or established under the
				  laws of the United States, a licensee under the Sales Finance Agency Act [205
				  ILCS 660 ] or an insurance company.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.190 - Liquidation

Current through Register Vol. 48, No. 28, July 12, 2024
A credit union may enter liquidation through actions
				  initiated by its board of directors to voluntarily dissolve or by actions
				  initiated by the Secretary of the Department to involuntarily dissolve and be
				  liquidated by a Liquidating Agent of one person or a committee under the
				  following procedures:
a) Voluntary
				Liquidation:
1) After completing the
				requirements in Section 62 of the Act, the Liquidating Agent must furnish a
				fidelity bond in compliance with section
				190.120.
2) Upon receipt and approval of the fidelity
				bond, the Secretary shall issue a Certificate of Voluntary Dissolution
				attesting to compliance with Section 62 of the Act, stating the names of the
				Liquidating Agent and authorizing the taking of possession and control of the
				books, records and assets of the credit union for the purpose of conserving and
				collecting the assets, paying all indebtedness and distributing the remaining
				assets to the membership. Certified copies of the Certificate of Voluntary
				Dissolution shall be furnished to the Liquidating Agent for use in securing
				access to the credit union's funds in depositories, withdrawal of investments
				or for any other purpose to carry out the liquidation.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.210 - Reimbursement for Financial Records

Current through Register Vol. 48, No. 28, July 12, 2024
a) A credit union shall be reimbursed for
				costs that are reasonably necessary (including but not limited to personnel
				costs, reproduction costs and transportation costs) and that have been incurred
				in searching for, reproducing and transporting books, papers, records or other
				data of a member required or requested to be produced by a credit union
				pursuant to a lawful subpoena, summons, warrant or court order.
b) Reimbursement shall be made in accordance
				with the following rates:
1) Personnel costs
				incurred in locating, retrieving, reproducing and preparing financial records
				shall be reimbursed at the rate of $20 per hours per person.
2) Reproduction costs incurred in making
				photocopies of documents shall be reimbursed at 30 cents per exposure.
				Reproductions of microfilm, microfiche, photographs, films and other materials
				shall be reimbursed at actual cost.
3) Transportation costs incurred in
				transporting credit union personnel to locate and retrieve material, and to
				convey the material to the place of examination, shall be reimbursed at the
				standard mileage rate allowed by the Internal Revenue Service for vehicle
				expense deductions or, if a mail or courier service is used, at the actual
				costs of the service.
4) All other
				costs, including but not limited to telephone calls, telegrams and shipping
				costs, incurred in searching for, reproducing and transporting data pursuant to
				a request for financial records, shall be reimbursed at actual costs.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.220 - Registration of Out of State Credit Unions

Current through Register Vol. 48, No. 28, July 12, 2024
A credit union organized and duly chartered as a credit union
				  in another state shall:
a) Register
				with the Secretary prior to operating in this State, on a form specified by the
				Secretary, which shall include or be accompanied by the following information:
1) the name of the credit union and the
				county or state under which it is organized;
2) the common bond or field of membership the
				credit union is authorized to serve;
3) the proposed location of any branch or
				service center within this State; and
4) the credit union's most recent examination
				report and audited financial statement.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.230 - Remote Meetings

Current through Register Vol. 48, No. 28, July 12, 2024
Unless expressly prohibited by the articles of incorporation
				  or bylaws and subject to requirements of the Illinois Credit Union Act, the
				  Board of Directors of a Credit Union may provide by resolution that members may
				  attend, participate in, act, and vote at any annual meetings or special
				  meetings 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 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 quorum.