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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 59 as follows: | |||||||||||||||||||
6 | (205 ILCS 305/59) (from Ch. 17, par. 4460)
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7 | Sec. 59. Investment of Funds.
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8 | (a) Funds not used in loans to members may be
invested, | |||||||||||||||||||
9 | pursuant to subsection (7) of Section 30 of this Act, and
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10 | subject to Departmental rules and
regulations:
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11 | (1) In securities, obligations or other instruments of | |||||||||||||||||||
12 | or issued by or
fully guaranteed as to principal and | |||||||||||||||||||
13 | interest by the United States of America
or any agency | |||||||||||||||||||
14 | thereof or in any trust or trusts established for investing
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15 | directly or collectively in the same;
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16 | (2) In obligations of any state of the United States, | |||||||||||||||||||
17 | the District of
Columbia, the Commonwealth of Puerto Rico, | |||||||||||||||||||
18 | and the several
territories organized
by Congress, or any | |||||||||||||||||||
19 | political subdivision thereof; however, a credit union
may
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20 | not invest more than 10% of its unimpaired capital and | |||||||||||||||||||
21 | surplus in the
obligations of one issuer, exclusive of | |||||||||||||||||||
22 | general obligations of the issuer, and
investments in | |||||||||||||||||||
23 | municipal securities must be limited to securities rated in |
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1 | one
of the 4
highest rating categories by a nationally | ||||||
2 | recognized statistical rating
organization;
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3 | (3) In certificates of deposit or passbook type | ||||||
4 | accounts issued by a state
or national bank, mutual savings | ||||||
5 | bank or savings and loan association; provided
that such | ||||||
6 | institutions have their accounts insured by the Federal | ||||||
7 | Deposit
Insurance Corporation or the Federal Savings and | ||||||
8 | Loan Insurance Corporation;
but provided, further, that a | ||||||
9 | credit union's investment in an account in
any one | ||||||
10 | institution may exceed the insured limit on accounts;
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11 | (4) In shares, classes of shares or share certificates | ||||||
12 | of other credit
unions, including, but not limited to | ||||||
13 | corporate credit unions; provided
that such credit unions | ||||||
14 | have their members' accounts insured by the NCUA
or other | ||||||
15 | approved insurers, and that if the members' accounts are so | ||||||
16 | insured,
a credit union's investment may exceed the insured | ||||||
17 | limit on accounts;
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18 | (5) In shares of a cooperative society organized under | ||||||
19 | the laws of this
State or the laws of the United States in | ||||||
20 | the total amount not exceeding
10% of the unimpaired | ||||||
21 | capital and surplus of the credit union; provided
that such | ||||||
22 | investment shall first be approved by the Department;
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23 | (6) In obligations of the State of Israel, or | ||||||
24 | obligations fully guaranteed
by the State of Israel as to | ||||||
25 | payment of principal and interest;
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26 | (7) In shares, stocks or obligations of other financial |
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1 | institutions in
the total amount not exceeding 5% of the | ||||||
2 | unimpaired capital and surplus
of the credit union;
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3 | (8) In federal funds and bankers' acceptances;
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4 | (9) In shares or stocks of Credit Union Service | ||||||
5 | Organizations in the
total amount not exceeding the greater | ||||||
6 | of 3% of the unimpaired
capital and surplus of the
credit | ||||||
7 | union or the amount authorized for federal credit unions.
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8 | (b) As used in this Section, "political subdivision" | ||||||
9 | includes, but is not
limited to, counties,
townships, cities, | ||||||
10 | villages, incorporated towns, school districts, educational
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11 | service regions, special road districts, public water supply | ||||||
12 | districts, fire
protection districts, drainage districts, | ||||||
13 | levee districts, sewer districts,
housing authorities, park | ||||||
14 | districts, and any
agency, corporation, or instrumentality of a | ||||||
15 | state or its political
subdivisions, whether now or hereafter | ||||||
16 | created and whether herein specifically
mentioned or not.
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17 | (c) A credit union investing to fund an employee benefit | ||||||
18 | plan obligation is not subject to the investment limitations of | ||||||
19 | this Act and this Section and may purchase an investment that | ||||||
20 | would otherwise be impermissible if the investment is directly | ||||||
21 | related to the credit union's obligation under the employee | ||||||
22 | benefit plan and the credit union holds the investment only for | ||||||
23 | so long as it has an actual or potential obligation under the | ||||||
24 | employee benefit plan.
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25 | (Source: P.A. 92-293, eff. 8-9-01; 93-640, eff. 12-31-03.)
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26 | Section 99. Effective date. This Act takes effect upon |
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1 | becoming law.
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