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| Public Act 095-0124 |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Credit Union Act is amended by | ||||
changing Section 59 as follows: | ||||
(205 ILCS 305/59) (from Ch. 17, par. 4460)
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Sec. 59. Investment of Funds.
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(a) Funds not used in loans to members may be
invested, | ||||
pursuant to subsection (7) of Section 30 of this Act, and
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subject to Departmental rules and
regulations:
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(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
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directly or collectively in the same;
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(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
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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;
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(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;
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(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;
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(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;
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(6) In obligations of the State of Israel, or | ||
obligations fully guaranteed
by the State of Israel as to | ||
payment of principal and interest;
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(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;
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(8) In federal funds and bankers' acceptances;
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(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.
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(b) As used in this Section, "political subdivision" | ||
includes, but is not
limited to, counties,
townships, cities, | ||
villages, incorporated towns, school districts, educational
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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.
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(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.
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(Source: P.A. 92-293, eff. 8-9-01; 93-640, eff. 12-31-03.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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