Full Text of SB1813 101st General Assembly
SB1813 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1813 Introduced 2/15/2019, by Sen. John G. Mulroe SYNOPSIS AS INTRODUCED: |
| 205 ILCS 305/10.2 new | | 205 ILCS 305/15 | from Ch. 17, par. 4416 | 205 ILCS 305/23 | from Ch. 17, par. 4424 | 205 ILCS 305/44 | from Ch. 17, par. 4445 | 205 ILCS 305/51 | from Ch. 17, par. 4452 | 205 ILCS 305/57.1 | | 205 ILCS 305/59 | from Ch. 17, par. 4460 | 205 ILCS 305/63 | from Ch. 17, par. 4464 |
|
Amends the Illinois Credit Union Act. Provides that if the Act requires information to be written or delivered in writing, an electronic record or delivery satisfies the rule of law. Provides that if the Act requires a policy, record, notice, or other document or information to be mailed or otherwise furnished or disclosed by a credit union, electronic distribution or delivery satisfies the rule of law. Provides that a policy adopted by the board may delegate expulsion authority to senior management officials of the credit union. Provides that a member expelled by a senior management official may seek reinstatement by appealing the action within 30 days of expulsion to the board of directors, and that the board may affirm, disaffirm, or modify the action, and the board's decision is final. Provides that a credit union may invest in securities, obligations, or other instruments of or issued by entities properly registered with or licensed by the Department of Financial and Professional Regulation. Increases a credit union's aggregate loan amount and the total amount of funds not used in loans to members that may be invested in shares and stocks of Credit Union Service Organizations to 10% (instead of 3%) of the paid-in and unimpaired capital and surplus of the credit union. Modifies a credit union's investment limit in shares or stocks of Credit Union Service Organizations to not exceed 10% (instead of 3%) of the paid-in and unimpaired capital and surplus of the credit union or the amount authorized for federal credit unions. Makes other changes. Effective immediately.
|
| |
| | A BILL FOR |
|
| | | SB1813 | | LRB101 10992 HEP 56176 b |
|
| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Credit Union Act is amended by | 5 | | changing Sections 15, 23, 44, 51, 57.1, 59, and 63 and by | 6 | | adding Section 10.2 as follows: | 7 | | (205 ILCS 305/10.2 new) | 8 | | Sec. 10.2. Electronic records. | 9 | | (a) As used in this Section, "electronic" and "electronic | 10 | | record" have the meanings given to those terms in the | 11 | | Electronic Commerce Security Act. | 12 | | (b) If a provision of this Act requires information to be | 13 | | written or delivered in writing, or provides for certain | 14 | | consequences if it is not, an electronic record or electronic | 15 | | delivery satisfies that rule of law. | 16 | | (c) If a provision of this Act requires a policy, record, | 17 | | notice or other document or information to be mailed or | 18 | | otherwise furnished, posted, or disclosed by a credit union, | 19 | | electronic delivery or distribution satisfies that rule of law. | 20 | | Policies and notifications of general interest to or impact on | 21 | | the membership may be posted on a credit union's website or | 22 | | disclosed in membership newsletters or account statements, in | 23 | | addition to, or in lieu of, any other methods of notification |
| | | SB1813 | - 2 - | LRB101 10992 HEP 56176 b |
|
| 1 | | or distribution specified in this Act. | 2 | | (205 ILCS 305/15) (from Ch. 17, par. 4416)
| 3 | | Sec. 15. Membership defined.
| 4 | | (1) The membership of a credit union shall
be limited to | 5 | | and consist of the subscribers to the articles of incorporation
| 6 | | and such other persons within the common bond, as defined in | 7 | | this Act and
as set forth in the credit union's articles of | 8 | | incorporation, as have been
duly admitted members, have paid | 9 | | the required entrance fee or membership
fee, or both, if any, | 10 | | have subscribed for one or more shares, and have paid
the | 11 | | initial installment thereon, and have complied with such other | 12 | | requirements
as the articles of incorporation or bylaws | 13 | | specify. Two or more persons
within the common bond who have | 14 | | jointly subscribed for one or more shares under
a joint account | 15 | | and have complied with all membership requirements may each be
| 16 | | admitted to membership. The surviving spouse
of a credit union | 17 | | member may, within 6 months of the member's death, become
a | 18 | | member of the credit union by paying the required entrance fee | 19 | | or membership
fee or both, if any, by subscribing for one or | 20 | | more shares
and paying the initial installment thereon, and by | 21 | | complying with such other
requirements as the articles of | 22 | | incorporation or bylaws specify.
| 23 | | (2) Any member may withdraw from a credit union at any time | 24 | | upon giving
notice of withdrawal as required by the bylaws.
| 25 | | (3) Any member may be expelled
by a 2/3 vote of the members |
| | | SB1813 | - 3 - | LRB101 10992 HEP 56176 b |
|
| 1 | | present at any regular or special
meeting
called to consider | 2 | | the matter, but only after an opportunity has been given
to the | 3 | | member to be heard.
| 4 | | (4) A member who has caused a loss to the credit union,
| 5 | | failed
to maintain one or more shares at the credit union, or | 6 | | violated board policy
applicable to members may be expelled by
| 7 | | a majority vote of a quorum of directors if the board has | 8 | | adopted a policy
providing for expulsion for any of the | 9 | | following acts committed by the member: under those | 10 | | circumstances. | 11 | | (i) causing a loss to the credit union; | 12 | | (ii) failing to maintain one or more shares at the | 13 | | credit union; | 14 | | (iii) committing fraud or any similar misdeed against | 15 | | the credit union; | 16 | | (iv) engaging in inappropriate behavior involving | 17 | | another person, such as physical or verbal abuse of another | 18 | | member or an employee of the credit union, while | 19 | | transacting business with the credit union; or | 20 | | (v) otherwise violating board policy applicable to | 21 | | members. | 22 | | In maintaining and
enforcing a policy based on loss, the
| 23 | | board may consider, without limitation, a member's failure to | 24 | | pay amounts due
under a loan, failure to provide collected | 25 | | funds to cover withdrawals or
personal share drafts or credit | 26 | | union drafts where the member is a remitter, or
failure to pay |
| | | SB1813 | - 4 - | LRB101 10992 HEP 56176 b |
|
| 1 | | fees or charges due the credit union. | 2 | | The policy may delegate the expulsion authority to the | 3 | | senior management officials of the credit union. If a member is | 4 | | expelled by a senior management official of the credit union, | 5 | | the member may, within 30 days after the expulsion, seek | 6 | | reinstatement by appealing the action in writing to the board | 7 | | of directors of the credit union. The board may affirm, | 8 | | disaffirm, or modify the action, and the board's decision is | 9 | | final. As used in this subsection (4), "senior management | 10 | | official" includes the chief management officer of the credit | 11 | | union (including the person holding the title of President or | 12 | | Chief Executive Officer, or both, or Treasurer/Manager) and | 13 | | other management officers of the credit union (including the | 14 | | persons holding the title of Chief Operating Officer, Chief | 15 | | Financial Officer, Chief Administrative Officer, Chief | 16 | | Information Officer, Chief Security Officer, Executive Vice | 17 | | President, Senior Vice President, or Vice President). | 18 | | If a policy
is
adopted by the board pursuant to this | 19 | | subsection (4), written notice of the
policy shall be | 20 | | distributed not fewer than 30 days before the effective date of | 21 | | the policy by: (i) mailing it and the effective date of the | 22 | | policy
shall be mailed to each member of the credit union at | 23 | | the member's current
address appearing on the records of the | 24 | | credit union ; (ii) electronically delivering it to all members | 25 | | by posting it on the credit union's website; or (iii) | 26 | | disclosing it to all members in membership newsletters or |
| | | SB1813 | - 5 - | LRB101 10992 HEP 56176 b |
|
| 1 | | accounts statements . The policy shall be
mailed to members not | 2 | | fewer than 30 days prior to the effective date of the
policy. | 3 | | In addition, new members shall be provided written notice of | 4 | | the
policy prior to or upon applying for membership by using | 5 | | one of the distribution methods described in this subsection | 6 | | (4) .
| 7 | | (5) All or any part of the amount paid on shares
of a | 8 | | withdrawing member
or expelled member with any declared | 9 | | dividends or interest on the date of
withdrawal or expulsion | 10 | | must, after deducting all amounts due from the member
to the | 11 | | credit union, be paid to him. The credit union may require not | 12 | | more
than 60 days' written notice of intention to withdraw | 13 | | shares, but a notice
of withdrawal does not entitle the member | 14 | | to any preferred or prior claim
in the event of liquidation. | 15 | | Withdrawing or expelled members have no further
rights in the | 16 | | credit union, but are not, by withdrawal or expulsion, released
| 17 | | from any obligation they owe to the credit union.
| 18 | | (6) A member who has caused a loss to the credit union or | 19 | | has violated board
policy applicable to members may be denied | 20 | | any
or all credit union services in accordance with board | 21 | | policy, however, members
who are denied services shall be | 22 | | allowed to maintain a share account and to
vote on all issues
| 23 | | put to a vote of the membership.
| 24 | | (7) If a member fails to maintain one fully paid share, the | 25 | | credit union, at its option, may permit the member to | 26 | | re-subscribe and pay for one or more shares within 30 days |
| | | SB1813 | - 6 - | LRB101 10992 HEP 56176 b |
|
| 1 | | after the date the member failed to maintain one fully paid | 2 | | share, without affecting the member's status or rights as a | 3 | | member during that period. A member that fails to re-subscribe | 4 | | for at least one fully paid share within the 30-day period | 5 | | shall be automatically expelled from the credit union and | 6 | | treated as an expelled member under subsection (5) of this | 7 | | Section 15.
| 8 | | (Source: P.A. 97-133, eff. 1-1-12; 97-855, eff. 7-27-12.)
| 9 | | (205 ILCS 305/23) (from Ch. 17, par. 4424)
| 10 | | Sec. 23. Compensation of officials.
| 11 | | (1) Directors and committee members No director or | 12 | | committee member may
receive reasonable compensation for their | 13 | | his service as such , the amount of which shall be set by the | 14 | | board of directors .
"Compensation" as used in this subsection | 15 | | (1) refers to remuneration expense
to the credit union for | 16 | | services provided by a director or committee member in
his or | 17 | | her capacity as director or committee member. "Compensation" as | 18 | | used in
this subsection (1) does not include | 19 | | (2) The credit union may incur the expense of providing
| 20 | | reasonable life, health,
accident, and similar insurance | 21 | | protection benefits for directors and a director or committee | 22 | | members member .
| 23 | | (3) (2) Directors, committee members and
employees, while | 24 | | on official business of the credit union, may be reimbursed
for | 25 | | reasonable and necessary expenses. Alternatively, the credit |
| | | SB1813 | - 7 - | LRB101 10992 HEP 56176 b |
|
| 1 | | union may make direct payment to a third party for such | 2 | | business expenses. Reasonable and necessary expenses may | 3 | | include the payment of travel costs for the foregoing officials | 4 | | and one guest per official. All payment of costs shall be made | 5 | | in accordance with written policies and procedures established | 6 | | by the board of directors.
| 7 | | (4) (3) The board of directors may establish
compensation | 8 | | for officers of the credit union.
| 9 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 10 | | (205 ILCS 305/44) (from Ch. 17, par. 4445)
| 11 | | Sec. 44. Share accounts; garnishment ; unclaimed property . | 12 | | (1) A credit union may be subject
to garnishment | 13 | | proceedings concerning the share accounts of its members.
| 14 | | (2) A credit union may be subject to the reporting and | 15 | | turnover provisions of the Revised Uniform Unclaimed Property | 16 | | Act concerning the share accounts of its members. | 17 | | Notwithstanding anything to the contrary in the Revised Uniform | 18 | | Unclaimed Property Act, a credit union shall retain the minimum | 19 | | share amount required to preserve a member's status as a member | 20 | | of the credit union. | 21 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 22 | | (205 ILCS 305/51) (from Ch. 17, par. 4452)
| 23 | | Sec. 51. Other loan programs.
| 24 | | (1) Subject to such rules and regulations
as the Secretary |
| | | SB1813 | - 8 - | LRB101 10992 HEP 56176 b |
|
| 1 | | may promulgate, a credit union may participate in loans
to | 2 | | credit union members jointly with other credit unions, | 3 | | corporations, or
financial institutions. An originating credit | 4 | | union may originate
loans only to its own members. A | 5 | | participating credit union that is
not the originating lender | 6 | | may participate in loans made to its own members or
to members | 7 | | of another participating credit union.
"Originating lender" | 8 | | means the participating credit union with which the member
| 9 | | contracts. A master participation agreement must be properly | 10 | | executed, and the
agreement must include provisions for | 11 | | identifying, either through documents
incorporated by | 12 | | reference or directly in the agreement, the participation loan
| 13 | | or loans prior to their sale.
| 14 | | (2) Any credit union with assets of $500,000 or more may | 15 | | loan to its members
under scholarship programs which are
| 16 | | subject to a federal or state law providing 100% repayment | 17 | | guarantee.
| 18 | | (3) A credit union may purchase the conditional sales
| 19 | | contracts, notes
and similar instruments which evidence an | 20 | | indebtedness of its members. In the management of its assets, | 21 | | liabilities, and liquidity, a credit union may purchase the | 22 | | conditional sales contracts, notes, and other similar | 23 | | instruments that evidence the consumer indebtedness of the | 24 | | members of another credit union. "Consumer indebtedness" means | 25 | | indebtedness incurred for personal, family, or household | 26 | | purposes.
|
| | | SB1813 | - 9 - | LRB101 10992 HEP 56176 b |
|
| 1 | | (4) With approval of the board of directors, a credit union | 2 | | may make loans,
either on its own or jointly with other credit | 3 | | unions, corporations or
financial
institutions, to credit | 4 | | union organizations; provided, that the aggregate
amount of all | 5 | | such loans outstanding shall not at any time exceed the greater
| 6 | | of 10% 3% of the paid-in and unimpaired capital and surplus of | 7 | | the credit
union or the amount authorized for federal credit | 8 | | unions.
| 9 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 10 | | (205 ILCS 305/57.1) | 11 | | Sec. 57.1. Services to other credit unions. A credit union | 12 | | may act as a representative of and enter into an agreement with | 13 | | credit unions or other organizations for the purposes of: | 14 | | (1) sharing, utilizing, renting, leasing, purchasing, | 15 | | selling, and joint ownership of fixed assets or engaging in | 16 | | activities and services that relate to the daily operations | 17 | | of credit unions; and | 18 | | (2) providing correspondent services to other credit | 19 | | unions or other organizations that the service provider | 20 | | credit union is authorized to perform for its own members | 21 | | or as part of its operations, including, but not limited | 22 | | to, loan processing, loan servicing, member check cashing | 23 | | services, disbursing share withdrawals and loan proceeds, | 24 | | cashing and selling money orders, ACH and wire transfer | 25 | | services, implementation and
administrative support |
| | | SB1813 | - 10 - | LRB101 10992 HEP 56176 b |
|
| 1 | | services related to the use of debit cards, payroll debit
| 2 | | cards, and other prepaid debit cards and
credit cards, coin | 3 | | and currency services, performing internal audits, and | 4 | | automated teller machine deposit services.
| 5 | | (Source: P.A. 99-78, eff. 7-20-15; 99-149, eff. 1-1-16; | 6 | | 100-201, eff. 8-18-17.) | 7 | | (205 ILCS 305/59) (from Ch. 17, par. 4460)
| 8 | | Sec. 59. Investment of funds.
| 9 | | (a) Funds not used in loans to members may be
invested, | 10 | | pursuant to subsection (7) of Section 30 of this Act, and
| 11 | | subject to Departmental rules and
regulations:
| 12 | | (1) In securities, obligations or other instruments of | 13 | | or issued by or
fully guaranteed as to principal and | 14 | | interest by the United States of America
or any agency | 15 | | thereof or in any trust or trusts established for investing
| 16 | | directly or collectively in the same;
| 17 | | (2) In obligations of any state of the United States, | 18 | | the District of
Columbia, the Commonwealth of Puerto Rico, | 19 | | and the several
territories organized
by Congress, or any | 20 | | political subdivision thereof; however, a credit union
may
| 21 | | not invest more than 10% of its unimpaired capital and | 22 | | surplus in the
obligations of one issuer, exclusive of | 23 | | general obligations of the issuer, and
investments in | 24 | | municipal securities must be limited to securities rated in | 25 | | one
of the 4
highest rating categories by a nationally |
| | | SB1813 | - 11 - | LRB101 10992 HEP 56176 b |
|
| 1 | | recognized statistical rating
organization;
| 2 | | (3) In certificates of deposit or passbook type | 3 | | accounts issued by a state
or national bank, mutual savings | 4 | | bank or savings and loan association; provided
that such | 5 | | institutions have their accounts insured by the Federal | 6 | | Deposit
Insurance Corporation or the Federal Savings and | 7 | | Loan Insurance Corporation;
but provided, further, that a | 8 | | credit union's investment in an account in
any one | 9 | | institution may exceed the insured limit on accounts;
| 10 | | (4) In shares, classes of shares or share certificates | 11 | | of other credit
unions, including, but not limited to | 12 | | corporate credit unions; provided
that such credit unions | 13 | | have their members' accounts insured by the NCUA
or other | 14 | | approved insurers, and that if the members' accounts are so | 15 | | insured,
a credit union's investment may exceed the insured | 16 | | limit on accounts;
| 17 | | (5) In shares of a cooperative society organized under | 18 | | the laws of this
State or the laws of the United States in | 19 | | the total amount not exceeding
10% of the unimpaired | 20 | | capital and surplus of the credit union; provided
that such | 21 | | investment shall first be approved by the Department;
| 22 | | (6) In obligations of the State of Israel, or | 23 | | obligations fully guaranteed
by the State of Israel as to | 24 | | payment of principal and interest;
| 25 | | (7) In shares, stocks or obligations of other financial | 26 | | institutions in
the total amount not exceeding 5% of the |
| | | SB1813 | - 12 - | LRB101 10992 HEP 56176 b |
|
| 1 | | unimpaired capital and surplus
of the credit union;
| 2 | | (8) In federal funds and bankers' acceptances;
| 3 | | (9) In shares or stocks of Credit Union Service | 4 | | Organizations in the
total amount not exceeding the greater | 5 | | of 10% 3% of the unimpaired
capital and surplus of the
| 6 | | credit union or the amount authorized for federal credit | 7 | | unions;
| 8 | | (10) In corporate bonds identified as investment grade | 9 | | by at least one nationally recognized statistical rating | 10 | | organization, provided that: | 11 | | (i) the board of directors has established a | 12 | | written policy that addresses corporate bond | 13 | | investment procedures and how the credit union will | 14 | | manage credit risk, interest rate risk, liquidity | 15 | | risk, and concentration risk; and | 16 | | (ii) the credit union has documented in its records | 17 | | that a credit analysis of a particular investment and | 18 | | the issuing entity was conducted by the credit union, a | 19 | | third party on behalf of the credit union qualified by | 20 | | education or experience to assess the risk | 21 | | characteristics of corporate bonds, or a nationally | 22 | | recognized statistical rating agency before purchasing | 23 | | the investment and the analysis is updated at least | 24 | | annually for as long as it holds the investment; | 25 | | (11) To aid in the credit union's management of its | 26 | | assets, liabilities, and liquidity in the purchase of an |
| | | SB1813 | - 13 - | LRB101 10992 HEP 56176 b |
|
| 1 | | investment interest in a pool of loans, in whole or in part | 2 | | and without regard to the membership of the borrowers, from | 3 | | other depository institutions and financial type | 4 | | institutions, including mortgage banks, finance companies, | 5 | | insurance companies, and other loan sellers, subject to | 6 | | such safety and soundness standards, limitations, and | 7 | | qualifications as the Department may establish by rule or | 8 | | guidance from time to time; | 9 | | (12) To aid in the credit union's management of its | 10 | | assets, liabilities, and liquidity by receiving funds from | 11 | | another financial institution as evidenced by certificates | 12 | | of deposit, share certificates, or other classes of shares | 13 | | issued by the credit union to the financial institution; | 14 | | and | 15 | | (13) In the purchase and assumption of assets held by | 16 | | other financial institutions, with approval of the | 17 | | Secretary and subject to any safety and soundness | 18 | | standards, limitations, and qualifications as the | 19 | | Department may establish by rule or guidance from time to | 20 | | time. | 21 | | (14) In securities, obligations, or other instruments | 22 | | of or issued by entities properly registered with or | 23 | | licensed by the Department, including, without limitation, | 24 | | entities properly registered or licensed under the | 25 | | Residential Mortgage License Act of 1987, the Consumer | 26 | | Installment Loan Act, and the Sales Finance Agency Act. |
| | | SB1813 | - 14 - | LRB101 10992 HEP 56176 b |
|
| 1 | | (b) As used in this Section: | 2 | | "Political subdivision" includes, but is not
limited to, | 3 | | counties,
townships, cities, villages, incorporated towns, | 4 | | school districts, educational
service regions, special road | 5 | | districts, public water supply districts, fire
protection | 6 | | districts, drainage districts, levee districts, sewer | 7 | | districts,
housing authorities, park districts, and any
| 8 | | agency, corporation, or instrumentality of a state or its | 9 | | political
subdivisions, whether now or hereafter created and | 10 | | whether herein specifically
mentioned or not.
| 11 | | "Financial institution" includes any bank, savings bank, | 12 | | savings and loan association, or credit union established under | 13 | | the laws of the United States, this State, or any other state. | 14 | | (c) A credit union investing to fund an employee benefit | 15 | | plan obligation is not subject to the investment limitations of | 16 | | this Act and this Section and may purchase an investment that | 17 | | would otherwise be impermissible if the investment is directly | 18 | | related to the credit union's obligation under the employee | 19 | | benefit plan and the credit union holds the investment only for | 20 | | so long as it has an actual or potential obligation under the | 21 | | employee benefit plan.
| 22 | | (d) If a credit union acquires loans from another financial | 23 | | institution or financial-type institution pursuant to this | 24 | | Section, the credit union shall be authorized to provide loan | 25 | | servicing and collection services in connection with those | 26 | | loans. |
| | | SB1813 | - 15 - | LRB101 10992 HEP 56176 b |
|
| 1 | | (Source: P.A. 100-361, eff. 8-25-17; 100-778, eff. 8-10-18.)
| 2 | | (205 ILCS 305/63) (from Ch. 17, par. 4464)
| 3 | | Sec. 63. Merger and consolidation. | 4 | | (1) Any two or more credit unions,
regardless of whether or | 5 | | not they have the same common bond, may merge or
consolidate | 6 | | into a single credit union. A merger or consolidation may be
| 7 | | with a credit union organized under the laws of this State or | 8 | | of another
state or of the United States and is subject to the | 9 | | approval of the Secretary. It must be made on such terms as | 10 | | have been agreed upon by a vote
of a majority of the board of | 11 | | directors of each credit union, and approved
by an affirmative | 12 | | vote of a majority of the members of the merging credit
union | 13 | | being absorbed present at a meeting, either in person or by | 14 | | proxy,
duly called for that purpose, except as hereinafter | 15 | | specified. Notice
of the meeting stating the purpose must be | 16 | | sent by the
Secretary of each merging credit union being | 17 | | absorbed to each member by
mail at least 45 but no more than 90 | 18 | | 7 days before the date of the meeting.
| 19 | | (2) One of the merging credit unions may continue after the | 20 | | merger or
consolidation either as a surviving credit union | 21 | | retaining its identity
or as a new credit
union as has been | 22 | | agreed upon under the terms of the merger. At least
9 members | 23 | | of the new proposed credit union must apply to the Department
| 24 | | for permission to organize the new credit union. The same | 25 | | procedure shall
be followed as provided for the organization of |
| | | SB1813 | - 16 - | LRB101 10992 HEP 56176 b |
|
| 1 | | a new credit union.
| 2 | | (3) After approval by the members of the credit union which | 3 | | is to be absorbed
by the merger or consolidation, the chairman | 4 | | or president and the secretary
of each credit union shall | 5 | | execute a certificate of merger or consolidation,
which shall | 6 | | set forth all of the following:
| 7 | | (a) The time and place of the meeting of each board of | 8 | | directors at which
the plan was agreed upon;
| 9 | | (b) The vote in favor of the adoption of the plan;
| 10 | | (c) A copy of each resolution or other action by which | 11 | | the plan was agreed upon;
| 12 | | (d) The time and place of the meeting of the members of | 13 | | the absorbed credit
union at which the plan agreed upon was | 14 | | approved; and,
| 15 | | (e) The vote by which the plan was approved by the | 16 | | members of the absorbed
credit union.
| 17 | | (4) Such certificate and a copy of the plan of merger or | 18 | | consolidation
agreed upon shall be mailed to the Secretary for | 19 | | review. If the provisions
of this Act have been complied with, | 20 | | the certificate shall be approved by
him, and returned to the | 21 | | credit unions which are parties to the merger or
consolidation | 22 | | within 30 days. When so approved by the Secretary the | 23 | | certificate
shall constitute the Department's certificate of | 24 | | approval of the merger
or consolidation.
| 25 | | (5) Upon issuance of the certificate of approval, each | 26 | | merging credit
union which was absorbed shall cease operation. |
| | | SB1813 | - 17 - | LRB101 10992 HEP 56176 b |
|
| 1 | | Each party to the merger shall file
the certificate of approval | 2 | | with the Recorder or County Clerk of
the county in which the | 3 | | credit union has or had its principal office.
| 4 | | (6) Each credit union absorbed by the merger or | 5 | | consolidation shall return
to the Secretary the original | 6 | | statement of incorporation, certificate of
approval of | 7 | | incorporation, and the bylaws of the credit union. The | 8 | | surviving
credit union shall continue its operation under its | 9 | | existing certificate of
approval, articles of incorporation, | 10 | | and the bylaws or if a new credit
union has been formed, under | 11 | | the new certificate of
approval, articles of incorporation, and | 12 | | bylaws.
| 13 | | (7) All rights of membership in and any obligation or | 14 | | liability of any
member to any credit union which is party to a | 15 | | consolidation or merger are
continued in the surviving or new | 16 | | credit union without reservation or diminution.
| 17 | | (8) A pending action or other judicial proceeding to which | 18 | | any of the
consolidating or merging credit unions is a party | 19 | | does not abate by reason
of the consolidation or merger.
| 20 | | (Source: P.A. 97-133, eff. 1-1-12.)
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.
|
|