Full Text of SB3114 101st General Assembly
SB3114 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3114 Introduced 2/6/2020, by Sen. Robert Peters SYNOPSIS AS INTRODUCED: |
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205 ILCS 305/9 | from Ch. 17, par. 4410 |
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Amends the Illinois Credit Union Act. Provides that the Director of the Division of Financial Institutions of the Department of Financial and Professional Regulation may accept an examination of a credit union made by the credit union's share insurer as an alternative to the biennial examination of a credit union conducted by the Department of Financial and Professional Regulation or a public accountant registered by the Department.
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| | A BILL FOR |
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| 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 Section 9 as follows:
| 6 | | (205 ILCS 305/9) (from Ch. 17, par. 4410)
| 7 | | Sec. 9. Reports and examinations.
| 8 | | (1) Credit unions shall report to
the Department on forms | 9 | | supplied by the Department, in accordance with a
schedule | 10 | | published by the Department. A recapitulation of the annual | 11 | | reports
shall be compiled and published annually by the | 12 | | Department, for the use
of the General Assembly, credit unions, | 13 | | various educational institutions
and other interested parties. | 14 | | A credit union which fails to file any report
when due shall | 15 | | pay to the Department a late filing fee for each
day the report | 16 | | is overdue as prescribed by rule. The Secretary may extend
the | 17 | | time for filing a
report.
| 18 | | (2) The Secretary may require special examinations of and | 19 | | special
financial reports from a credit union or a credit
union | 20 | | organization in which a credit union loans, invests, or | 21 | | delegates
substantially all
managerial duties and | 22 | | responsibilities when he determines that such
examinations
and | 23 | | reports are necessary to enable the Department
to determine the |
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| 1 | | safety of a credit union's operation or its solvency.
The cost | 2 | | to the Department of the aforesaid special examinations shall | 3 | | be
borne by the credit union being examined as prescribed by | 4 | | rule.
| 5 | | (3) All credit unions incorporated under this Act shall be | 6 | | examined at
least biennially by the Department or, at the | 7 | | discretion of
the Secretary,
by a public accountant registered | 8 | | by the Department of Financial and Professional
Regulation ; | 9 | | however, as an alternative to that examination, the Director | 10 | | may accept an examination made by the credit union's share | 11 | | insurer . The costs of an examination shall be paid by the
| 12 | | credit union. The scope of all examinations by a public | 13 | | accountant shall
be at least equal to the examinations made by | 14 | | the Department. The examiners
shall have full access to, and | 15 | | may compel the production of, all the books,
papers, securities | 16 | | and accounts of any credit union. A special examination
shall | 17 | | be made by the Department or by a public accountant approved by | 18 | | the
Department upon written request of 5 or more members, who | 19 | | guarantee the
expense of the same. Any credit union refusing to | 20 | | submit to an examination
when ordered by the Department shall | 21 | | be reported to the Attorney General,
who shall institute | 22 | | proceedings to have its charter revoked. If the Secretary
| 23 | | determines that the examination of a credit
union is to be
| 24 | | conducted by a public accountant registered by the Department | 25 | | of Financial and
Professional Regulation and the examination is
| 26 | | done in conjunction
with the credit union's external |
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| 1 | | independent audit of financial
statements, the requirements of | 2 | | this Section and subsection (3) of Section
34 shall be deemed | 3 | | met.
| 4 | | (3.5) Pursuant to Section 8, the Secretary shall adopt | 5 | | rules that ensure consistency and due process in the | 6 | | examination process. The Secretary may also establish | 7 | | guidelines that (i) define the scope of the examination process | 8 | | and (ii) clarify examination items to be resolved. The rules, | 9 | | formal guidance, interpretive interpretative letters, or | 10 | | opinions furnished to credit unions by the Secretary may be | 11 | | relied upon by the credit unions. | 12 | | (4) A copy of the completed report of examination and a | 13 | | review comment
letter, if any, citing exceptions revealed | 14 | | during the examination, shall
be submitted to the credit union | 15 | | by the Department. A detailed report stating
the corrective | 16 | | actions taken by the board of directors on each exception
set | 17 | | forth in the review comment letter shall be filed with the | 18 | | Department
within 40 days after the date of the review comment | 19 | | letter, or as otherwise
directed by the Department. Any credit | 20 | | union through its officers, directors,
committee members or | 21 | | employees, which willfully provides fraudulent or
misleading | 22 | | information regarding the corrective actions taken on | 23 | | exceptions
appearing in a review comment letter may have its | 24 | | operations restricted to
the collection of principal and | 25 | | interest on loans outstanding and the
payment of normal | 26 | | expenses and salaries until all exceptions are corrected
and |
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| 1 | | accepted by the Department.
| 2 | | (Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14; | 3 | | revised 8-23-19.)
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