Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 190 - ILLINOIS CREDIT UNION ACT › Subpart A - GENERAL PROVISIONS › Section 190.2 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
For purposes of the Illinois Credit Union Act and this Part,
				  the words and phrases defined in this Section shall have the meanings ascribed
				  to them unless the context requires otherwise.
"Act" means the Illinois Credit Union Act [ 205 ILCS 305
				  ].
"Credit union" means a credit union chartered under the
				  Illinois Credit Union Act, or, as the context permits, under the Federal Credit
				  Union Act or the laws of any state.
"Department" means the Illinois Department of Financial and
				  Professional Regulation.
"Director" means the Director of the Department of Financial
				  and Professional Regulation-Division of Financial Institutions. As provided in
				  Section 8(1) of the 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 the
				  Act or this Part.
"Division" means the Department of Financial and Professional
				  Regulation-Division of Financial Institutions.
"GAAP" or "generally accepted accounting principles" means
				  U.S. Generally Accepted Principles promulgated by the Financial Accounting
				  Standards Board (see
http://www.fasb.org
).
"NCUA" means the National Credit Union Administration.
"Net worth" means retained earnings, as defined under GAAP,
				  and secondary capital. Net worth does not include the allowance for loan losses
				  account.
"Retained earnings" includes undivided earnings, regular
				  reserve, other reserves, and any other appropriations designated by management
				  or regulatory authorities.
"Secondary capital" means a secondary capital account or
				  other form of non-share account, including without limitation a debt
				  instrument, subject to the following conditions:
The maturity or the account shall not be less than three
				  years and the account shall not be redeemable prior to maturity or the
				  expiration of a minimum withdrawal notice period of three years.
The account shall not be insured by the National Credit Union
				  Share Insurance Fund or any governmental or private entity.
The account holder's claim against the credit union must be
				  subordinate to all other claims, including shareholders, creditors and the
				  National Credit Union Share Insurance Fund.
Funds in the account, including interest accrued and paid
				  into the account, must be available to cover operating losses realized by the
				  credit union that exceed its net available reserves and undivided earnings. In
				  lieu of being paid into the account, interest may be paid directly to the
				  account holder or into a separate account from which the account holder may
				  make withdrawals. Losses shall be distributed pro-rata among all secondary
				  capital accounts held by the credit union at the time losses are
				  realized.
The account may not be pledged or provided by the account
				  holder as security on a loan or obligation with the credit union or any other
				  party.
In the event of liquidation of the credit union, the accounts
				  will, to the extent they are not needed to cover losses at the time of
				  liquidation, be paid out to the account holder.
"Paid-in and unimpaired capital" or "unimpaired capital"
				  means shares as defined in Section
				  1.1 of the Act.
"Person" or "persons" means individuals and bodies politic
				  and corporate, including without limitation corporations, limited liability
				  companies, general partnerships, limited partnerships and joint ventures;
				  unless, from the context and facts, the intention is plain to apply only to
				  individuals. Persons who reside in or live in a geographical area include
				  non-natural persons located within the geographical area.
"Secretary" means the Secretary of the Department of
				  Financial and Professional Regulation or a person authorized by the Secretary,
				  the Act or this Part to act in the Secretary's stead. As provided in Section
				  8(l) of the Act, all references in the Act or this Part to the Secretary shall
				  be deemed to include the Director, as a person authorized by the Secretary or
				  the Act to assume responsibility for the oversight of the functions of the
				  Department relating to the regulatory supervision of credit unions under the
				  Act and this Part.
"State" means a state of the United States, the District of
				  Columbia, the Commonwealth of Puerto Rico and any of the several territories
				  and possessions of the United States. When capitalized, the term "State"
				  generally means the State of Illinois.
"Surplus" means undivided earnings.
"USPAP" means the Uniform Standards of Professional Appraisal
				  Practice promulgated by the Appraisal Standards Board pursuant to Title XI of
				  the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989
				  ( 12 USC
				  3331 et seq.) published biennially by the
				  Appraisal Standards Board of The Appraisal Foundation, 1155
				  15th Street N.W., Suite 1111, Washington DC 20005
				  (effective January 1, 2016 through December 31, 2017; no later amendments or
				  editions).