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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Credit Union Act is amended by | ||||||
5 | changing Section 20 as follows:
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6 | (205 ILCS 305/20) (from Ch. 17, par. 4421)
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7 | Sec. 20. Election or appointment of officials.
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8 | (1) The credit union shall
be directed by a Board of | ||||||
9 | Directors consisting of no less than 7 in number,
to be elected | ||||||
10 | at the annual meeting by and from the members. Directors shall
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11 | hold office until the next annual meeting, unless their
terms | ||||||
12 | are staggered. Upon amendment of its bylaws, a credit union may | ||||||
13 | divide
the Directors into 2 or 3 classes with each class as | ||||||
14 | nearly equal in number as
possible. The term of office of the | ||||||
15 | directors of the first class shall expire
at the first annual | ||||||
16 | meeting after their election, that of the second class
shall
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17 | expire at the second annual meeting after their election, and | ||||||
18 | that of the third
class, if any, shall expire at the third | ||||||
19 | annual meeting after their election.
At each annual meeting | ||||||
20 | after the classification, the number of directors equal
to the | ||||||
21 | number of directors whose terms expire at the time of the | ||||||
22 | meeting shall
be elected to hold office until the second | ||||||
23 | succeeding annual meeting if there
are 2 classes or until the |
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1 | third succeeding annual meeting if there are 3
classes. A | ||||||
2 | Director shall hold office for the term for which he
or she is | ||||||
3 | elected and until his or her
successor
is elected and | ||||||
4 | qualified. | ||||||
5 | (1.5) Except as provided in subsection (1.10), in
In all | ||||||
6 | elections for Directors, every member
has the right to vote, in | ||||||
7 | person or by proxy, the number of shares owned
by him, or in | ||||||
8 | the case of a member other than a natural person, the member's
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9 | one vote, for as many persons as there are Directors to be | ||||||
10 | elected, or to
cumulate such shares, and give one candidate as | ||||||
11 | many votes as the number
of Directors multiplied by the number | ||||||
12 | of his shares equals, or to distribute
them on
the same | ||||||
13 | principle among as many candidates as he may desire and the | ||||||
14 | Directors
shall not be elected in any other manner. Shares held | ||||||
15 | in a joint account
owned by more than one member may be voted | ||||||
16 | by any one of the members, however,
the number of cumulative | ||||||
17 | votes cast may not exceed a total equal to the number
of shares | ||||||
18 | multiplied by the number of directors to be elected. A majority | ||||||
19 | of
the shares entitled
to vote shall be represented either in | ||||||
20 | person or by proxy for the election
of Directors. Each Director | ||||||
21 | shall wholly take and subscribe to an oath
that he will | ||||||
22 | diligently and honestly perform his duties in administering
the | ||||||
23 | affairs of the credit union, that while he may delegate to | ||||||
24 | another the
performance of those administrative duties he is | ||||||
25 | not thereby relieved from
his responsibility for their | ||||||
26 | performance, that he will not knowingly violate
or willingly |
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1 | permit to be violated any law applicable to the credit union,
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2 | and that he is the owner of at least one share of the credit | ||||||
3 | union.
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4 | (1.10) Upon amendment of a credit union's bylaws approved | ||||||
5 | by the members, in all elections for Directors, every member | ||||||
6 | who is a natural person shall have the right to cast one vote, | ||||||
7 | regardless of the number of his or her shares, in person or by | ||||||
8 | proxy, for as many persons as there are Directors to be | ||||||
9 | elected.
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10 | (2) The Board of Directors shall appoint from among the | ||||||
11 | members of the
credit union, a Supervisory Committee of not | ||||||
12 | less than 3 members at the
organization meeting and within 30 | ||||||
13 | days following each annual meeting of
the members for such | ||||||
14 | terms as the bylaws provide. Members of the Supervisory
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15 | Committee may, but need not be, on the Board of Directors, but | ||||||
16 | shall not
be officers of the credit union, members of the | ||||||
17 | Credit Committee,
or the
credit manager if no Credit Committee | ||||||
18 | has been appointed.
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19 | (3) The Board of Directors may appoint, from among the
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20 | members of the
credit union, a Credit Committee consisting of | ||||||
21 | an odd number, not less than
3 for such terms as the bylaws | ||||||
22 | provide. Members of the Credit Committee
may, but need not be, | ||||||
23 | Directors or officers of the credit union, but shall
not be | ||||||
24 | members of the Supervisory Committee.
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25 | (4) The Board of Directors may appoint from among the | ||||||
26 | members
of the
credit union a Membership Committee of one or |
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1 | more persons. If appointed,
the Committee shall act
upon all | ||||||
2 | applications for membership and submit a report of its actions
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3 | to the Board of Directors at the next regular meeting for
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4 | review.
If no Membership Committee is appointed, credit union | ||||||
5 | management shall act
upon all applications for membership and | ||||||
6 | submit a report of its actions to the
Board of Directors at the | ||||||
7 | next regular meeting for review.
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8 | (Source: P.A. 91-929, eff. 12-15-00; 92-608, eff. 7-1-02.)
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