Illinois General Assembly - Full Text of Public Act 095-0124
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Public Act 095-0124




Public Act 095-0124
HB0623 Enrolled LRB095 04439 MJR 24484 b

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

Effective Date: 8/13/2007