Public Act 097-0855
 
SB3217 EnrolledLRB097 18462 PJG 63692 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 Sections 15 and 20 and adding Section 64.5  as follows:
 
    (205 ILCS 305/15)  (from Ch. 17, par. 4416)

    Sec. 15. Membership defined.


    (1) The membership of a credit union shall
be limited to 
and consist of the subscribers to the articles of incorporation

and such other persons within the common bond, as defined in 
this Act and
as set forth in the credit union's articles of 
incorporation, as have been
duly admitted members, have paid 
the required entrance fee or membership
fee, or both, if any, 
have subscribed for one or more shares, and have paid
the 
initial installment thereon, and have complied with such other 
requirements
as the articles of incorporation or bylaws 
specify.  Two or more persons
within the common bond who have 
jointly subscribed for one or more shares under
a joint account 
and have complied with all membership requirements may each be

admitted to membership.  The surviving spouse
of a credit union 
member may, within 6 months of the member's death, become
a 
member of the credit union by paying the required entrance fee 
or membership
fee or both, if any, by subscribing for one or 
more shares
and paying the initial installment thereon, and by 
complying with such other
requirements as the articles of 
incorporation or bylaws specify.


    (2) Any member may withdraw from a credit union at any time 
upon giving
notice of withdrawal as required by the bylaws.


    (3) Any member may be expelled
by a 2/3 vote of the members 
present at any regular or special
meeting
called to consider 
the matter, but only after an opportunity has been given
to the 
member to be heard.


    (4) A member who has caused a loss to the credit union,


failed
to maintain one or more shares at the credit union, or 
violated board policy
applicable to members may be expelled by

a majority vote of a quorum of directors if the board has 
adopted a policy
providing for expulsion under those 
circumstances.  In maintaining and
enforcing a policy based on 
loss, the
board may consider, without limitation, a member's 
failure to pay amounts due
under a loan, failure to provide 
collected funds to cover withdrawals or
personal share drafts 
or credit union drafts where the member is a remitter, or

failure to pay fees or charges due the credit union.  If a 
policy
is
adopted by the board pursuant to this subsection (4), 
written notice of the
policy and the effective date of the 
policy
shall be mailed to each member of the credit union at 
the member's current
address appearing on the records of the 
credit union.  The policy shall be
mailed to members not fewer 
than 30 days prior to the effective date of the
policy.  In 
addition, new members shall be provided written notice of the

policy prior to or upon applying for membership.


    (5) All or any part of the amount paid on shares
of a 
withdrawing member
or expelled member with any declared 
dividends or interest on the date of
withdrawal or expulsion 
must, after deducting all amounts due from the member
to the 
credit union, be paid to him.  The credit union may require not 
more
than 60 days' written notice of intention to withdraw 
shares, but a notice
of withdrawal does not entitle the member 
to any preferred or prior claim
in the event of liquidation.  
Withdrawing or expelled members have no further
rights in the 
credit union, but are not, by withdrawal or expulsion, released

from any obligation they owe to the credit union.


    (6) A member who has caused a loss to the credit union or 
has violated board
 policy applicable to members may be denied 
any
or all credit union services in accordance with board 
policy, however, members
who are denied services shall be 
allowed to maintain a share account and to
vote on all issues

put to a vote of the membership.

    (7) If a member fails to maintain one fully paid share, the 
credit union, at its option, may permit the member to 
re-subscribe and pay for one or more shares within 30 days 
after the date the member failed to maintain one fully paid 
share, without affecting the member's status or rights as a 
member during that period.  A member that fails to re-subscribe 
for at least one fully paid share within the 30-day period 
shall be automatically expelled from the credit union and 
treated as an expelled member under subsection (5) of this 
Section 15. 

(Source: P.A. 97-133, eff. 1-1-12.)

 



    (205 ILCS 305/20)  (from Ch. 17, par. 4421)



    Sec. 20. Election or appointment of officials. 

    (1) The credit union shall
be directed by a board of 
directors consisting of no less than 7 in number,
to be elected 
at the annual meeting by and from the members.  Directors shall

hold office until the next annual meeting, unless their
terms 
are staggered.  Upon amendment of its bylaws, a credit union may 
divide
the directors into 2 or 3 classes with each class as 
nearly equal in number as
possible.  The term of office of the 
directors of the first class shall expire
at the first annual 
meeting after their election, that of the second class
shall

expire at the second annual meeting after their election, and 
that of the third
class, if any, shall expire at the third 
annual meeting after their election.
At each annual meeting 
after the classification, the number of directors equal
to the 
number of directors whose terms expire at the time of the 
meeting shall
be elected to hold office until the second 
succeeding annual meeting if there
are 2 classes or until the 
third succeeding annual meeting if there are 3
classes.  A 
director shall hold office for the term for which he
or she is 
elected and until his or her
successor
is elected and 
qualified.  
    (1.5) Except as provided in subsection (1.10), in all 
elections for directors, every member
has the right to vote, in 
person or by proxy, the number of shares owned
by him, or in 
the case of a member other than a natural person, the member's

one vote, for as many persons as there are directors to be 
elected, or to
cumulate such shares, and give one candidate as 
many votes as the number
of directors multiplied by the number 
of his shares equals, or to distribute
them on
the same 
principle among as many candidates as he may desire and the 
directors
shall not be elected in any other manner.  Shares held 
in a joint account
owned by more than one member may be voted 
by any one of the members, however,
the number of cumulative 
votes cast may not exceed a total equal to the number
of shares 
multiplied by the number of directors to be elected.  A majority 
of
the shares entitled
to vote shall be represented either in 
person or by proxy for the election
of directors.  Each director 
shall wholly take and subscribe to an oath
that he will 
diligently and honestly perform his duties in administering
the 
affairs of the credit union, that while he may delegate to 
another the
performance of those administrative duties he is 
not thereby relieved from
his responsibility for their 
performance, that he will not knowingly violate
or permit to be 
violated any law applicable to the credit union,
and that he is 
the owner of at least one share of the credit union.

    (1.10) Upon amendment of a credit union's bylaws approved 
by the members, in all elections for directors, every member 
who is  a natural person shall have the right to cast one vote, 
regardless of the number of his or her shares, in person or by 
proxy, for as many persons as there are directors to be 
elected.

    (1.15) If the board of directors has adopted a policy 
addressing age eligibility standards on voting, holding 
office, or petitioning the board, then  a credit union may 
require (i) that members be at least 18 years of age by the 
date of the meeting in order to vote at meetings of the 
members, sign nominating petitions, or sign petitions 
requesting special meetings, and (ii) that members be at least 
18 years of age by the date of election or appointment in order 
to hold elective or appointive office. 
    (2) The board of directors shall appoint from among the 
members of the
credit union, a supervisory committee of not 
less than 3 members at the
organization meeting and within 30 
days following each annual meeting of
the members for such 
terms as the bylaws provide.  Members of the supervisory 
committee may, but need not be, on the board of directors, but 
shall not
be officers of the credit union, members of the 
credit committee,
or the
credit manager if no credit committee 
has been appointed.

    (3) The board of directors may appoint, from among the

members of the
credit union, a credit committee consisting of 
an odd number, not less than
3 for such terms as the bylaws 
provide. Members of the credit committee
may, but need not be, 
directors or officers of the credit union, but shall
not be 
members of the supervisory committee.

    (4) The board of directors may appoint from among the 
members
of the
credit union a membership committee of one or 
more persons.  If appointed,
the committee shall act
upon all 
applications for membership and submit a report of its actions

to the board of directors at the next regular meeting for

review.
If no membership committee is appointed, credit union 
management shall act
upon all applications for membership and 
submit a report of its actions to the board of directors
 at the 
next regular meeting for review.

(Source: P.A. 97-133, eff. 1-1-12.)

 
    (205 ILCS 305/64.5 new)
    Sec. 64.5. Continuation of corporate entity.
    (a) For purposes of this Section, a "resulting credit 
union" means an Illinois-chartered credit union that is the 
surviving credit union in a merger of 2 or more credit unions, 
a new credit union resulting from a consolidation of 2 or more 
credit unions, or a credit union that has effected a conversion 
from a credit union chartered under the laws of any other state 
or under the laws of the United States.
    (b) A resulting credit union shall be considered the same 
business and corporate entity as each merging or consolidating 
credit union or as the converting credit union, with all the 
property, rights, powers, duties, and obligations of each 
merging or consolidating credit union or of the converting 
credit union, except as affected by the charter and bylaws of 
the resulting credit union.  A resulting credit union shall be 
liable for all liabilities of the merging or consolidating 
credit union or converting credit union.  All the rights, 
franchises, and interests of the merging or consolidating 
credit union or converting credit union in and to every species 
of property, real, personal, and mixed, and choses in action 
thereunto belonging, shall be deemed to be automatically 
transferred to and vested in the resulting credit union as a 
successor-in-interest without any deed or other transfer, and 
the resulting credit union, without any order or other action 
on the part of any court or otherwise, shall hold and enjoy the 
same and all rights of property, franchises, and interests, 
including appointments, designations, and nominations, and all 
other rights and interests as trustee, executor, 
administrator, registrar or transfer agent of stocks and bonds, 
guardian, assignee, receiver, and in every other fiduciary 
capacity, in the same manner and to the same extent as was held 
and enjoyed by the merging or consolidating credit union or the 
converting credit union. Any reference to a merging, 
consolidating, or converting credit union in any writing, 
whether executed or taking effect before or after the merger, 
consolidation, or conversion, shall be deemed a reference to 
the resulting credit union if not inconsistent with the other 
provisions of the writing.
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law. 
  


Effective Date:  7/27/2012