Illinois Compiled Statutes
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205 ILCS 305/1.1
(205 ILCS 305/1.1)
(from Ch. 17, par. 4402)
Credit Union - The term "credit union" means
a cooperative, non-profit association, incorporated under this Act,
under the laws of the United States of America or under the laws
of another state, for the purposes of encouraging thrift among
its members, creating a source of credit at a reasonable rate of
interest, and providing an opportunity for its members to use
and control their own money in order to improve their economic and
social conditions. The membership of a credit union shall consist
of a group or groups each having a common
bond as set forth in this Act.
Common Bond - The term "common bond" refers to groups of people
who meet one of the following qualifications:
(1) Persons belonging to a specific association,
group or organization, such as a church, labor union, club or society and members of their immediate families which shall include any relative by blood or marriage or foster and adopted children.
(2) Persons who reside in a reasonably compact and
well defined neighborhood or community, and members of their immediate families which shall include any relative by blood or marriage or foster and adopted children.
(3) Persons who have a common employer or who are
members of an organized labor union or an organized occupational or professional group within a defined geographical area, and members of their immediate families which shall include any relative by blood or marriage or foster and adopted children.
Shares - The term "shares" or "share accounts" means any form of shares
issued by a credit union and established by a member in accordance with
standards specified by a credit union, including but not limited to common
shares, share draft accounts, classes of shares, share certificates,
special purpose share accounts, shares issued in trust, custodial accounts,
and individual retirement accounts or other plans established pursuant to
Section 401(d) or (f) or Section 408(a) of the Internal Revenue Code, as now
or hereafter amended, or similar provisions of any tax laws of the United
States that may hereafter exist.
Credit Union Organization - The term "credit union organization" means
any organization established to serve the needs of credit unions, the business
of which relates to the daily operations of credit unions.
Department - The term "Department" means the Illinois Department of Financial and Professional Regulation.
Secretary - The term "Secretary" means the Secretary
of Financial and Professional Regulation or a person authorized by the Secretary or this Act to act in the Secretary's stead.
Division of Financial Institutions - The term "Division of Financial Institutions" means the Division of Financial Institutions of the Department of Financial and Professional Regulation.
Director - The term "Director of Financial Institutions" means the Director of the Division of Financial Institutions of the Department of Financial and Professional Regulation.
Office - The term "office" means the Division of Financial Institutions of the Department of Financial and Professional Regulation.
NCUA - The term "NCUA" means the National Credit Union Administration, an
agency of the United States Government charged with the supervision of
credit unions chartered under the laws of the United States of America.
Central Credit Union - The term "central credit union" means a credit union
incorporated primarily to receive shares from and make loans to credit unions
and directors, officers, committee members and employees of credit unions.
A central credit union may also accept as members persons who were members
of credit unions which were liquidated and persons from occupational groups
not otherwise served by another credit union.
Corporate Credit Union - The term "corporate credit union" means a credit
union which is a cooperative, non-profit association, the membership of
which is limited primarily to other credit unions.
Insolvent - "Insolvent" means the condition that results when
the total of all liabilities and shares exceeds net assets of the credit union.
Danger of insolvency - For purposes of Section 61, a credit union is in
"danger of insolvency" if its net worth to
asset ratio falls below 2%. In calculating the danger of insolvency ratio,
capital shall be excluded. For purposes of Section 61, a credit union is also
in "danger of
insolvency" if the Department is unable to
ascertain, upon examination, the true financial
condition of the credit union.
Net Worth - "Net worth" means the retained earnings balance of the credit
union, as determined under generally accepted accounting principles, and forms
of secondary capital approved by the Secretary and the Director pursuant to rulemaking.
Charitable Donation Account - The term "charitable donation account" means an account owned by a credit union that is held in a segregated custodial account or special purpose entity and specifically identified as a charitable donation account whereby, no less frequently than every 5 years and upon termination of the account, at least 51% of the total return on assets in the account is distributed to one or more charitable organizations or non-profit entities.
(Source: P.A. 97-133, eff. 1-1-12; 98-784, eff. 7-24-14.)