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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 Sections 8, 20, 22, 30, 46, 51, and 70 and by adding | |||||||||||||||||||||||||||||||||
6 | Section 4.1 as follows: | |||||||||||||||||||||||||||||||||
7 | (205 ILCS 305/4.1 new) | |||||||||||||||||||||||||||||||||
8 | Sec. 4.1. Assumed corporate name. | |||||||||||||||||||||||||||||||||
9 | (a) A credit union organized under the laws of Illinois may | |||||||||||||||||||||||||||||||||
10 | elect to adopt an assumed name that is not impermissible under | |||||||||||||||||||||||||||||||||
11 | applicable law. | |||||||||||||||||||||||||||||||||
12 | (b) As used in this Act, "assumed name" means any name | |||||||||||||||||||||||||||||||||
13 | other than the true credit union name as stated in its charter, | |||||||||||||||||||||||||||||||||
14 | except that the following shall not constitute the use of an | |||||||||||||||||||||||||||||||||
15 | assumed name under this Act: | |||||||||||||||||||||||||||||||||
16 | (1) the identification by a credit union of the conduct | |||||||||||||||||||||||||||||||||
17 | of its affairs with a trademark or service mark of which it | |||||||||||||||||||||||||||||||||
18 | is the owner or licensed user; or | |||||||||||||||||||||||||||||||||
19 | (2) the use of the name of a division, not separately | |||||||||||||||||||||||||||||||||
20 | chartered under this Act and not containing the word | |||||||||||||||||||||||||||||||||
21 | "credit union" or an abbreviation of one of such words, | |||||||||||||||||||||||||||||||||
22 | provided the credit unions also clearly discloses its true | |||||||||||||||||||||||||||||||||
23 | name. |
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1 | (c) Before conducting any affairs in this State under an | ||||||
2 | assumed name or names, the credit union shall, for each assumed | ||||||
3 | name, pursuant to resolution by its board of directors, execute | ||||||
4 | and file with the Division of Financial Institutions, an | ||||||
5 | application setting forth: | ||||||
6 | (1) the true credit union name; | ||||||
7 | (2) that the credit union intends to conduct affairs | ||||||
8 | under an assumed name; and | ||||||
9 | (3) the assumed name which it proposes to use. | ||||||
10 | (d) The right to use an assumed name shall be effective for | ||||||
11 | a period of 5 years from the date of approval by the Division | ||||||
12 | of Financial Institutions. | ||||||
13 | (e) A credit union shall renew the right to use its assumed | ||||||
14 | name or names, if any, within the 60 days preceding the | ||||||
15 | expiration of such right, for a period of 5 years, by making an | ||||||
16 | election to do so and by paying the renewal fee as prescribed | ||||||
17 | by rule. | ||||||
18 | (f) Once an application for an assumed name has been | ||||||
19 | approved by the Division of Financial Institutions, one copy | ||||||
20 | thereof may be filed for record in the office of the Recorder | ||||||
21 | of the county in which the principal office of the credit | ||||||
22 | union.
| ||||||
23 | (205 ILCS 305/8) (from Ch. 17, par. 4409)
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24 | Sec. 8. Director's powers and duties. Credit unions are | ||||||
25 | regulated by the
Department. The Director, in executing the |
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1 | powers and discharging the duties
vested by law in the | ||||||
2 | Department has the following powers and duties:
| ||||||
3 | (1) To exercise the rights, powers and duties set forth | ||||||
4 | in this Act or
any related Act.
| ||||||
5 | (2) To prescribe rules and regulations for the | ||||||
6 | administration of this
Act. The provisions of the Illinois | ||||||
7 | Administrative Procedure Act are hereby
expressly adopted | ||||||
8 | and incorporated herein
as though a part of this Act, and | ||||||
9 | shall apply to all administrative rules
and procedures of | ||||||
10 | the Department under this Act.
| ||||||
11 | (3) To direct and supervise all the administrative and | ||||||
12 | technical
activities
of the Department including the | ||||||
13 | employment of a Credit Union Supervisor
who shall have | ||||||
14 | knowledge in the theory and practice of, or experience in, | ||||||
15 | the
operations or supervision of financial institutions, | ||||||
16 | preferably credit unions,
and such other persons as are | ||||||
17 | necessary to carry out his functions including examiners | ||||||
18 | meeting certification standards of the National | ||||||
19 | Association of State Credit Union Supervisors (NASCUS) or | ||||||
20 | similar certification standards .
| ||||||
21 | (4) To issue cease and desist orders when in the | ||||||
22 | opinion of the Director,
a credit union is engaged or has | ||||||
23 | engaged, or the Director has reasonable
cause to believe | ||||||
24 | the credit union is about to engage, in an unsafe or | ||||||
25 | unsound
practice, or is violating or has violated or the | ||||||
26 | Director has reasonable
cause to believe is about to |
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1 | violate a law, rule or regulation or any condition
imposed | ||||||
2 | in writing by the Department.
| ||||||
3 | (5) To suspend from office and to prohibit from further | ||||||
4 | participation
in any manner in the conduct of the affairs | ||||||
5 | of his credit union any director,
officer or committee | ||||||
6 | member who has committed any violation of a law, rule,
| ||||||
7 | regulation or of a cease and desist order or who has | ||||||
8 | engaged or participated
in any unsafe or unsound practice | ||||||
9 | in connection with the credit union or
who has committed or | ||||||
10 | engaged in any act, omission, or practice which
constitutes | ||||||
11 | a breach of his fiduciary duty as such director, officer or
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12 | committee member, when the Director has determined that | ||||||
13 | such action or actions
have resulted or will result in | ||||||
14 | substantial financial loss or other damage that
seriously | ||||||
15 | prejudices the interests of the members.
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16 | (6) Except for the fees established in this Act, to | ||||||
17 | prescribe, by rule
and regulation, fees and penalties for | ||||||
18 | preparing, approving, and filing
reports and other | ||||||
19 | documents; furnishing
transcripts; holding hearings; | ||||||
20 | investigating applications
for permission to
organize, | ||||||
21 | merge, or convert; failure to maintain accurate books and | ||||||
22 | records
to enable the Department to conduct an examination; | ||||||
23 | and taking supervisory
actions.
| ||||||
24 | (7) To destroy, in his discretion, any or all books and | ||||||
25 | records of any
credit union in his possession or under his | ||||||
26 | control after the expiration
of three years from the date |
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1 | of cancellation of the charter of such credit
unions.
| ||||||
2 | (8) To make investigations and to conduct research and | ||||||
3 | studies and to
publish some of the problems of persons in | ||||||
4 | obtaining credit at reasonable
rates of interest and of the | ||||||
5 | methods and benefits of cooperative saving
and lending for | ||||||
6 | such persons.
| ||||||
7 | (9) To authorize, foster or establish experimental, | ||||||
8 | developmental,
demonstration or pilot projects by public | ||||||
9 | or private organizations including
credit unions which:
| ||||||
10 | (a) promote more effective operation of credit | ||||||
11 | unions so as to provide
members an opportunity to use | ||||||
12 | and control their own money to improve their
economic | ||||||
13 | and social conditions; or
| ||||||
14 | (b) are in the best interests of credit unions, | ||||||
15 | their members and the
people of the State of Illinois.
| ||||||
16 | (10) To cooperate in studies, training or other | ||||||
17 | administrative activities
with, but not limited to, the | ||||||
18 | NCUA, other state credit union regulatory
agencies and | ||||||
19 | industry trade associations in order to promote more | ||||||
20 | effective
and efficient supervision of Illinois chartered | ||||||
21 | credit unions.
| ||||||
22 | (Source: P.A. 91-357, eff. 7-29-99; 92-608, eff. 7-1-02.)
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23 | (205 ILCS 305/20) (from Ch. 17, par. 4421)
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24 | Sec. 20. Election or appointment of officials.
| ||||||
25 | (1) The credit union shall
be directed by a Board of |
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1 | Directors consisting of no less than 7 in number,
to be elected | ||||||
2 | at the annual meeting by and from the members. Directors shall
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3 | hold office until the next annual meeting, unless their
terms | ||||||
4 | are staggered. Upon amendment of its bylaws, a credit union may | ||||||
5 | divide
the Directors into 2 or 3 classes with each class as | ||||||
6 | nearly equal in number as
possible. The term of office of the | ||||||
7 | directors of the first class shall expire
at the first annual | ||||||
8 | meeting after their election, that of the second class
shall
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9 | expire at the second annual meeting after their election, and | ||||||
10 | that of the third
class, if any, shall expire at the third | ||||||
11 | annual meeting after their election.
At each annual meeting | ||||||
12 | after the classification, the number of directors equal
to the | ||||||
13 | number of directors whose terms expire at the time of the | ||||||
14 | meeting shall
be elected to hold office until the second | ||||||
15 | succeeding annual meeting if there
are 2 classes or until the | ||||||
16 | third succeeding annual meeting if there are 3
classes. A | ||||||
17 | Director shall hold office for the term for which he
or she is | ||||||
18 | elected and until his or her
successor
is elected and | ||||||
19 | qualified. | ||||||
20 | (1.5) Except as provided in subsection (1.10), in
In all | ||||||
21 | elections for Directors, every member
has the right to vote, in | ||||||
22 | person or by proxy, the number of shares owned
by him, or in | ||||||
23 | the case of a member other than a natural person, the member's
| ||||||
24 | one vote, for as many persons as there are Directors to be | ||||||
25 | elected, or to
cumulate such shares, and give one candidate as | ||||||
26 | many votes as the number
of Directors multiplied by the number |
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1 | of his shares equals, or to distribute
them on
the same | ||||||
2 | principle among as many candidates as he may desire and the | ||||||
3 | Directors
shall not be elected in any other manner. Shares held | ||||||
4 | in a joint account
owned by more than one member may be voted | ||||||
5 | by any one of the members, however,
the number of cumulative | ||||||
6 | votes cast may not exceed a total equal to the number
of shares | ||||||
7 | multiplied by the number of directors to be elected. A majority | ||||||
8 | of
the shares entitled
to vote shall be represented either in | ||||||
9 | person or by proxy for the election
of Directors. Each Director | ||||||
10 | shall wholly take and subscribe to an oath
that he will | ||||||
11 | diligently and honestly perform his duties in administering
the | ||||||
12 | affairs of the credit union, that while he may delegate to | ||||||
13 | another the
performance of those administrative duties he is | ||||||
14 | not thereby relieved from
his responsibility for their | ||||||
15 | performance, that he will not knowingly violate
or willingly | ||||||
16 | permit to be violated any law applicable to the credit union,
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17 | and that he is the owner of at least one share of the credit | ||||||
18 | union.
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19 | (1.10) Upon amendment of a credit union's bylaws approved | ||||||
20 | by the members, in all elections for Directors, every member | ||||||
21 | who is a natural person shall have the right to cast one vote, | ||||||
22 | regardless of the number of his or her shares, in person or by | ||||||
23 | proxy, for as many persons as there are Directors to be | ||||||
24 | elected.
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25 | (2) The Board of Directors shall appoint from among the | ||||||
26 | members of the
credit union, a Supervisory Committee of not |
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1 | less than 3 members at the
organization meeting and within 30 | ||||||
2 | days following each annual meeting of
the members for such | ||||||
3 | terms as the bylaws provide. Members of the Supervisory
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4 | Committee may, but need not be, on the Board of Directors, but | ||||||
5 | shall not
be officers of the credit union, members of the | ||||||
6 | Credit Committee,
or the
credit manager if no Credit Committee | ||||||
7 | has been appointed.
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8 | (3) The Board of Directors may appoint, from among the
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9 | members of the
credit union, a Credit Committee consisting of | ||||||
10 | an odd number, not less than
3 for such terms as the bylaws | ||||||
11 | provide. Members of the Credit Committee
may, but need not be, | ||||||
12 | Directors or officers of the credit union, but shall
not be | ||||||
13 | members of the Supervisory Committee.
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14 | (4) The Board of Directors may appoint from among the | ||||||
15 | members
of the
credit union a Membership Committee of one or | ||||||
16 | more persons. If appointed,
the Committee shall act
upon all | ||||||
17 | applications for membership and submit a report of its actions
| ||||||
18 | to the Board of Directors at the next regular meeting for
| ||||||
19 | review.
If no Membership Committee is appointed, credit union | ||||||
20 | management shall act
upon all applications for membership and | ||||||
21 | submit a report of its actions to the
Board of Directors at the | ||||||
22 | next regular meeting for review.
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23 | (Source: P.A. 91-929, eff. 12-15-00; 92-608, eff. 7-1-02.)
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24 | (205 ILCS 305/22) (from Ch. 17, par. 4423)
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25 | Sec. 22. Vacancies. |
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1 | (a) The Board of Directors shall, by appointment from
among | ||||||
2 | the credit union members, fill any vacancies occurring on the | ||||||
3 | Board
for the remainder of the Director's unexpired term or | ||||||
4 | until a successor
is elected and qualified following completion | ||||||
5 | of the term filled by the Board . The Board shall, by | ||||||
6 | appointment from among the
credit union members, fill vacancies | ||||||
7 | in the Membership Committee, Credit
Committee, or credit | ||||||
8 | manager if no Credit Committee has been appointed, and
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9 | Supervisory
Committees. | ||||||
10 | (b) An office may be declared vacant by the Board when a | ||||||
11 | Director or a Committee member dies, resigns from the Board or | ||||||
12 | Committee, is removed from the Board or Committee, is no longer | ||||||
13 | a member of the credit union, is the owner of less than one | ||||||
14 | share of the credit union, or fails to attend three consecutive | ||||||
15 | regular meetings of the Board without good cause.
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16 | (Source: P.A. 91-929, eff. 12-15-00.)
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17 | (205 ILCS 305/30) (from Ch. 17, par. 4431)
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18 | Sec. 30. Duties of directors. | ||||||
19 | (a) It shall be the duty of the directors to:
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20 | (1) Review actions on applications
for membership. A | ||||||
21 | record of the Membership Committee's approval or
denial of | ||||||
22 | membership or management's approval or denial of | ||||||
23 | membership if no
Membership Committee has been appointed | ||||||
24 | shall be available to the Board of
Directors for | ||||||
25 | inspection. A person denied membership by the Membership
|
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1 | Committee or credit union management may appeal the denial | ||||||
2 | to the Board;
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3 | (2) Provide adequate fidelity bond coverage for | ||||||
4 | officers,
employees, directors and committee members, and | ||||||
5 | for losses caused by
persons outside of the credit union, | ||||||
6 | subject to rules and regulations
promulgated by the | ||||||
7 | Director;
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8 | (3) Determine from time to time the interest rates, not | ||||||
9 | in excess of that
allowed under this Act, which shall be | ||||||
10 | charged on loans to members and to
authorize interest | ||||||
11 | refunds, if any, to members from income earned and received
| ||||||
12 | in proportion to the interest paid by them on such classes | ||||||
13 | of loans and
under such conditions as the Board prescribes. | ||||||
14 | The Directors may establish
different interest rates to be | ||||||
15 | charged on different classes of loans;
| ||||||
16 | (4) Within any limitations set forth in the credit | ||||||
17 | union's bylaws, fix
the maximum amount which may be loaned | ||||||
18 | with and without security to a member;
| ||||||
19 | (5) Declare dividends on various classes of shares in | ||||||
20 | the manner and form
as provided in the bylaws;
| ||||||
21 | (6) Limit the number of shares which may be owned by a | ||||||
22 | member;
such limitations to apply alike to all members;
| ||||||
23 | (7) Have charge of the investment of funds, except that | ||||||
24 | the Board of
Directors may designate an Investment | ||||||
25 | Committee or any qualified individual
or entity to have | ||||||
26 | charge of making investments under policies established
by |
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1 | the Board of Directors;
| ||||||
2 | (8) Authorize the employment of or contracting with | ||||||
3 | such persons or
organizations as may be necessary to carry | ||||||
4 | on the
operations of the credit union, provided that prior | ||||||
5 | approval is received from
the
Department before delegating | ||||||
6 | substantially all managerial duties and
responsibilities | ||||||
7 | to a credit union organization, and fix
the compensation, | ||||||
8 | if any, of the officers and provide for compensation for
| ||||||
9 | other employees within
policies established by the Board of | ||||||
10 | Directors;
| ||||||
11 | (9) Authorize the conveyance of property;
| ||||||
12 | (10) Borrow or lend money consistent with the | ||||||
13 | provisions of this Act;
| ||||||
14 | (11) Designate a depository or depositories for the | ||||||
15 | funds of the credit
union and supervise the investment of | ||||||
16 | funds;
| ||||||
17 | (12) Suspend or remove, or both, any or all officers or | ||||||
18 | any
or all members of the Membership, Credit, or other | ||||||
19 | committees
whenever, in the judgment of the Board of | ||||||
20 | Directors, the best interests of the credit union will be | ||||||
21 | served thereby; provided that members of the Supervisory | ||||||
22 | Committee may not be suspended or removed except for | ||||||
23 | failure to perform their duties; and provided that removal | ||||||
24 | of any officer shall be without prejudice to the contract | ||||||
25 | rights, if any, of the person so removed;
| ||||||
26 | (13) Appoint any special committees deemed necessary; |
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| |||||||
1 | and
| ||||||
2 | (14) Perform such other duties as the members may | ||||||
3 | direct, and perform
or authorize any action not | ||||||
4 | inconsistent with this Act and not specifically
reserved by | ||||||
5 | the bylaws to the members. | ||||||
6 | (b) The Board of Directors may delegate to the chief | ||||||
7 | management official, according to guidelines established by | ||||||
8 | the Board that may include the authority to further delegate | ||||||
9 | one or more duties, all of the following duties: | ||||||
10 | (1) determining the interest rates on loans; | ||||||
11 | (2) determining the dividend rates on share accounts;
| ||||||
12 | and | ||||||
13 | (3) hiring employees other than the chief management | ||||||
14 | official and fixing their compensation.
| ||||||
15 | (Source: P.A. 92-608, eff. 7-1-02; 93-916, eff. 8-12-04.)
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16 | (205 ILCS 305/46) (from Ch. 17, par. 4447)
| ||||||
17 | Sec. 46. Loans and interest rate.
| ||||||
18 | (1) A credit union may make loans
to its members for such | ||||||
19 | purpose and upon such security and terms, including
rates of | ||||||
20 | interest, as the Credit Committee, credit manager, or loan | ||||||
21 | officer
approves.
Notwithstanding the provisions of any other | ||||||
22 | law in connection with extensions
of credit, a credit union may | ||||||
23 | elect to
contract for and receive interest and fees and other | ||||||
24 | charges for extensions of
credit subject only to the provisions | ||||||
25 | of this Act and rules promulgated under
this Act, except that |
| |||||||
| |||||||
1 | extensions of credit secured by residential real estate
shall | ||||||
2 | be subject to the laws applicable thereto.
The rates of | ||||||
3 | interest to be charged on loans to members shall be
set by the | ||||||
4 | Board of Directors of each individual credit union in | ||||||
5 | accordance with Section 30 of this Act and such
rates may be | ||||||
6 | less than, but may not exceed, the maximum rate set forth in
| ||||||
7 | this Section. A borrower may repay his loan prior to maturity, | ||||||
8 | in whole or
in part, without penalty. The credit contract may | ||||||
9 | provide for the payment
by the member and receipt by the credit | ||||||
10 | union of all costs and
disbursements, including reasonable | ||||||
11 | attorney's fees and collection agency
charges, incurred by the | ||||||
12 | credit union to collect or enforce the debt in the
event of a | ||||||
13 | delinquency by the member, or in the event of a breach of any
| ||||||
14 | obligation of the member under the credit contract. A | ||||||
15 | contingency or
hourly arrangement established under an | ||||||
16 | agreement entered into by a credit
union with an attorney or | ||||||
17 | collection agency to collect a loan of a member
in default | ||||||
18 | shall be presumed prima facie reasonable.
| ||||||
19 | (2) Credit unions may make loans based upon the security of | ||||||
20 | any
interest or equity in real estate, subject to rules and | ||||||
21 | regulations
promulgated by the Director. In any contract or | ||||||
22 | loan which
is secured by a mortgage, deed of
trust, or | ||||||
23 | conveyance in the nature of a mortgage, on residential real
| ||||||
24 | estate, the interest which is computed, calculated, charged, or | ||||||
25 | collected
pursuant to such contract or loan, or pursuant to any | ||||||
26 | regulation or rule
promulgated pursuant to this Act, may not be |
| |||||||
| |||||||
1 | computed, calculated, charged
or collected for any period of | ||||||
2 | time occurring after the date on which the
total indebtedness, | ||||||
3 | with the exception of late payment penalties, is paid
in full.
| ||||||
4 | For purposes of this subsection (2) of this Section 46, a | ||||||
5 | prepayment
shall mean the payment of the total indebtedness, | ||||||
6 | with the exception of
late payment penalties if incurred or | ||||||
7 | charged, on any date before the date
specified in the contract | ||||||
8 | or loan agreement on which the total indebtedness
shall be paid | ||||||
9 | in full, or before the date on which all payments, if timely
| ||||||
10 | made, shall have been made. In the event of a prepayment of the
| ||||||
11 | indebtedness which is made on a date
after the date on which | ||||||
12 | interest on the indebtedness was last computed,
calculated, | ||||||
13 | charged, or collected but before the next date on which | ||||||
14 | interest
on the indebtedness was to be calculated, computed, | ||||||
15 | charged, or collected,
the lender may calculate, charge and | ||||||
16 | collect interest on the indebtedness
for the period which | ||||||
17 | elapsed between the date on which the prepayment is
made and | ||||||
18 | the date on which interest on the indebtedness was last | ||||||
19 | computed,
calculated, charged or collected at a rate equal to | ||||||
20 | 1/360 of the annual
rate for each day which so elapsed, which | ||||||
21 | rate shall be applied to the
indebtedness outstanding as of the | ||||||
22 | date of prepayment. The lender shall
refund to the borrower any | ||||||
23 | interest charged or collected which exceeds that
which the | ||||||
24 | lender may charge or collect pursuant to the preceding | ||||||
25 | sentence.
The provisions of this amendatory Act of 1985 shall | ||||||
26 | apply only to contracts
or loans entered into on or after the |
| |||||||
| |||||||
1 | effective date of this amendatory
Act.
| ||||||
2 | (3) Notwithstanding any other provision of this Act, a | ||||||
3 | credit union
authorized under this Act to make loans secured by | ||||||
4 | an interest or equity in
real estate may engage in making | ||||||
5 | "reverse mortgage" loans to persons for
the purpose of making | ||||||
6 | home improvements or repairs, paying insurance
premiums or | ||||||
7 | paying real estate taxes on the homestead properties
of such | ||||||
8 | persons. If made, such loans shall be made on such terms and
| ||||||
9 | conditions as the credit union shall determine and as shall be | ||||||
10 | consistent
with the provisions of this Section and such rules | ||||||
11 | and regulations as the
Director shall promulgate hereunder. For | ||||||
12 | purposes of this Section, a
"reverse mortgage" loan shall be a | ||||||
13 | loan extended on the basis of existing
equity in homestead | ||||||
14 | property and secured by a mortgage on such property.
Such loans | ||||||
15 | shall be repaid upon the sale of the property or upon the death
| ||||||
16 | of the owner or, if the property is in joint tenancy, upon the | ||||||
17 | death of the
last surviving joint tenant who had such an | ||||||
18 | interest in the property at the
time the loan was initiated, | ||||||
19 | provided, however, that the credit union and
its member may by | ||||||
20 | mutual agreement, establish other repayment terms. A
credit | ||||||
21 | union, in making a "reverse mortgage" loan, may add deferred
| ||||||
22 | interest to principal or otherwise provide for the charging of | ||||||
23 | interest or
premiums on such deferred interest. "Homestead" | ||||||
24 | property, for purposes of
this Section, means the domicile and | ||||||
25 | contiguous real estate owned and
occupied by the mortgagor. The | ||||||
26 | Director shall promulgate rules and
regulations under this |
| |||||||
| |||||||
1 | Section; provided that such rules and regulations
need not be | ||||||
2 | promulgated jointly with any other administrative agency of | ||||||
3 | this State.
| ||||||
4 | (4) Notwithstanding any other provisions of this Act, a | ||||||
5 | credit union
authorized under this Act to make loans secured by | ||||||
6 | an interest or equity
in real property may engage in making | ||||||
7 | revolving credit loans secured by
mortgages or deeds of trust | ||||||
8 | on such real property or by security
assignments of beneficial | ||||||
9 | interests in land trusts.
| ||||||
10 | For purposes of this Section, "revolving credit" has the | ||||||
11 | meaning defined
in Section 4.1 of the Interest Act.
| ||||||
12 | Any mortgage or deed of trust given to secure a revolving | ||||||
13 | credit loan may,
and when so expressed therein shall, secure | ||||||
14 | not only the existing indebtedness
but also such future | ||||||
15 | advances, whether such advances are obligatory or to
be made at | ||||||
16 | the option of the lender, or otherwise, as are made within | ||||||
17 | twenty
years from the date thereof, to the same extent as if | ||||||
18 | such future advances
were made on the date of the execution of | ||||||
19 | such mortgage or deed of trust,
although there may be no | ||||||
20 | advance made at the time of execution of such mortgage
or other | ||||||
21 | instrument, and although there may be no indebtedness | ||||||
22 | outstanding
at the time any advance is made. The lien of such | ||||||
23 | mortgage or deed of trust,
as to third persons
without actual | ||||||
24 | notice thereof, shall be valid as to all such indebtedness
and | ||||||
25 | future advances form the time said mortgage or deed of trust is | ||||||
26 | filed
for record in the office of the Recorder of Deeds or the |
| |||||||
| |||||||
1 | Registrar of Titles
of the county where the real property | ||||||
2 | described therein is located. The
total amount of indebtedness | ||||||
3 | that may be so secured may increase or decrease
from time to | ||||||
4 | time, but the total unpaid balance so secured at any one time
| ||||||
5 | shall not exceed a maximum principal amount which must be | ||||||
6 | specified in such
mortgage or deed of trust, plus interest | ||||||
7 | thereon, and any disbursements
made for the payment of taxes, | ||||||
8 | special assessments, or insurance on said
real property, with | ||||||
9 | interest on such disbursements.
| ||||||
10 | Any such mortgage or deed of trust shall be valid and have | ||||||
11 | priority over
all subsequent liens and encumbrances, including | ||||||
12 | statutory liens, except
taxes and assessments levied on said | ||||||
13 | real property.
| ||||||
14 | (5) Compliance with federal or Illinois preemptive laws or | ||||||
15 | regulations
governing loans made by a credit union chartered | ||||||
16 | under this Act shall
constitute compliance with this Act.
| ||||||
17 | (Source: P.A. 93-640, eff. 12-31-03.)
| ||||||
18 | (205 ILCS 305/51) (from Ch. 17, par. 4452)
| ||||||
19 | Sec. 51. Other Loan Programs.
| ||||||
20 | (1) Subject to such rules and regulations
as the Director | ||||||
21 | may promulgate, a credit union may participate in loans
to | ||||||
22 | credit union members jointly with other credit unions, | ||||||
23 | corporations, or
financial institutions. An originating credit | ||||||
24 | union may originate
loans only to its own members. A | ||||||
25 | participating credit union that is
not the originating lender |
| |||||||
| |||||||
1 | may participate in loans made to its own members or
to members | ||||||
2 | of another participating credit union.
"Originating lender" | ||||||
3 | means the participating credit union with which the member
| ||||||
4 | contracts. A master participation agreement must be properly | ||||||
5 | executed, and the
agreement must include provisions for | ||||||
6 | identifying, either through documents
incorporated by | ||||||
7 | reference or directly in the agreement, the participation loan
| ||||||
8 | or loans prior to their sale.
| ||||||
9 | (2) Any credit union with assets of $500,000 or more may | ||||||
10 | loan to its members
under the State Scholarships Law or other | ||||||
11 | scholarship programs which are
subject to a federal or state | ||||||
12 | law providing 100% repayment guarantee.
| ||||||
13 | (3) A credit union may purchase the conditional sales
| ||||||
14 | contracts, notes
and similar instruments which evidence an | ||||||
15 | indebtedness of its members or of members of another credit | ||||||
16 | union .
| ||||||
17 | (4) With approval of the Board of Directors, a credit union | ||||||
18 | may make loans,
either on its own or jointly with other credit | ||||||
19 | unions, corporations or
financial
institutions, to credit | ||||||
20 | union organizations; provided, that the aggregate
amount of all | ||||||
21 | such loans outstanding shall not at any time exceed the greater
| ||||||
22 | of 3% of the paid-in and unimpaired capital and surplus of the | ||||||
23 | credit
union or the amount authorized for federal credit | ||||||
24 | unions.
| ||||||
25 | (Source: P.A. 92-293, eff. 8-9-01; 93-640, eff. 12-31-03.)
|
| |||||||
| |||||||
1 | (205 ILCS 305/70) (from Ch. 17, par. 4471)
| ||||||
2 | Sec. 70. Use of name, sentence. | ||||||
3 | (a) No individual, firm, association,
or body politic and | ||||||
4 | corporate, including, without limitation, any corporation, | ||||||
5 | limited liability company, general partnership, limited | ||||||
6 | partnership, or joint venture that is not an authorized user | ||||||
7 | may use any
name or title which contains the words
"credit | ||||||
8 | union" or any abbreviation thereof, and such use is a Class A
| ||||||
9 | Misdemeanor. For purposes of this Section, "authorized user" | ||||||
10 | means a corporation organized under this Act, the credit union | ||||||
11 | act of another state, or the Federal Credit Union Act, any | ||||||
12 | association of such a corporation, and subsidiaries and | ||||||
13 | affiliates of such an association.
| ||||||
14 | (b) If the Director of the Division of Financial | ||||||
15 | Institutions of the Department of Financial and Professional | ||||||
16 | Regulation finds that an individual or entity that is not an | ||||||
17 | authorized user has transacted or intends to transact business | ||||||
18 | in this State in a manner that has a substantial likelihood of | ||||||
19 | misleading the public by: (i) implying that the business is a | ||||||
20 | credit union or (ii) using or intending to use the words | ||||||
21 | "credit union", or any abbreviation thereof, in connection with | ||||||
22 | its business, then the Director of the Division of Financial | ||||||
23 | Institutions may direct the individual or entity to cease and | ||||||
24 | desist from transacting its business or using the words "credit | ||||||
25 | union", or any abbreviation thereof. If the individual or | ||||||
26 | entity persists in transacting its business or using the words |
| |||||||
| |||||||
1 | "credit union", or any abbreviation thereof, then the Director | ||||||
2 | of the Division of Financial Institutions may impose a civil | ||||||
3 | penalty of up to $10,000 for each violation. Each day that the | ||||||
4 | individual or entity continues transacting business or using | ||||||
5 | the words "credit union", or any abbreviation thereof, in | ||||||
6 | connection with its business shall constitute a separate | ||||||
7 | violation of these provisions.
| ||||||
8 | (c) Except as otherwise expressly permitted by law or with | ||||||
9 | the written consent of the credit union, no person or group of | ||||||
10 | persons other than an authorized user may use the name of or a | ||||||
11 | name similar to the name of an existing credit union when | ||||||
12 | marketing or soliciting business from members or prospective | ||||||
13 | members if the name or similar name is used in a manner that | ||||||
14 | would cause a reasonable person to believe that the marketing | ||||||
15 | material or solicitation originated from or is endorsed by the | ||||||
16 | existing credit union or that the existing credit union is in | ||||||
17 | any other way responsible for the marketing material or | ||||||
18 | solicitation. The following remedies shall apply: | ||||||
19 | (1) Any person who violates subsection (c) of this | ||||||
20 | Section commits a business offense and shall be fined in an | ||||||
21 | amount not to exceed $5,000. | ||||||
22 | (2) In addition to any other available remedies, any | ||||||
23 | existing credit union may report an alleged violation of | ||||||
24 | any provision of this Section to the Supervisor of the | ||||||
25 | Credit Union Section of the Division of Financial | ||||||
26 | Institutions. If the Supervisor finds that any person or |
| |||||||
| |||||||
1 | group of persons is in violation of any provision of this | ||||||
2 | Section, then the Supervisor may direct that person or | ||||||
3 | group of persons to cease and desist from that violation. | ||||||
4 | If the Supervisor issues a cease and desist order against | ||||||
5 | any person or group of persons for violation of subsection | ||||||
6 | (c), then the order must require that person or group of | ||||||
7 | persons to cease and desist from using the offending | ||||||
8 | marketing material or solicitation in Illinois. | ||||||
9 | (3) If a person or group of persons against whom the | ||||||
10 | Supervisor issued the cease and desist order persists in | ||||||
11 | the violation, then the Supervisor may impose a civil | ||||||
12 | penalty of up to $10,000 for each violation. Each day that | ||||||
13 | a person or group of persons is in violation of this | ||||||
14 | Section constitutes a separate violation of this Section | ||||||
15 | and each instance in which marketing material or a | ||||||
16 | solicitation is sent in violation of this subsection (c) | ||||||
17 | constitutes a separate violation of this Section. | ||||||
18 | (d) The Supervisor of the Credit Union Section of the | ||||||
19 | Division of Financial Institutions may adopt rules to | ||||||
20 | administer the provisions of this Section.
| ||||||
21 | (Source: P.A. 94-150, eff. 7-8-05.)
| ||||||
22 | Section 99. Effective date. This Act takes effect upon | ||||||
23 | becoming law.
|