State of Illinois
91st General Assembly
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Public Act 91-0755

SB1656 Enrolled                               LRB9111043JSpcA

    AN ACT to amend the Illinois Credit Union Act by changing
Sections 9 and 12.

    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 9 and 12 as follows:

    (205 ILCS 305/9) (from Ch. 17, par. 4410)
    Sec. 9.  Reports and examinations.
    (1)  Credit   unions   shall  report  to  the  Department
annually on or before the first day of February in each  year
on  forms supplied by the Department. A recapitulation of the
Annual Reports shall be compiled and  published  annually  by
the  Department,  for the use of the General Assembly, credit
unions, various educational institutions and other interested
parties. A credit union which fails to file any  report  when
due  shall  pay  to the Department a late filing fee of $5.00
for each day the report is overdue. The Director  may  extend
the time for filing a report.
    (2)  The Director may require special examinations of and
special  financial  reports  from  a credit union or a credit
union organization in which a credit union loans, invests, or
delegates   substantially   all   managerial    duties    and
responsibilities  when  he  determines that such examinations
and  reports  are  necessary  to  enable  the  Department  to
determine the safety of a credit  union's  operation  or  its
solvency. The cost to the Department of the aforesaid special
examinations  shall  be  borne  by  the  credit  union  being
examined.
    (3)  All  credit unions incorporated under this Act shall
be examined at least biennially annually  by  the  Department
or, at the discretion of the Director, by a public accountant
registered  by the Department of Professional Regulation. The
costs of an examination shall be paid by  the  credit  union.
The scope of all examinations by a public accountant shall be
at  least  equal  to the examinations made by the Department.
The examiners shall have full access to, and may  compel  the
production of, all the books, papers, securities and accounts
of  any  credit union. A special examination shall be made by
the Department or by a  public  accountant  approved  by  the
Department  upon  written  request  of 5 or more members, who
guarantee the expense of the same. Any credit union  refusing
to  submit  to  an examination when ordered by the Department
shall  be  reported  to  the  Attorney  General,  who   shall
institute  proceedings  to  have its charter revoked.  If the
Director determines that the annual examination of  a  credit
union is to be conducted by a public accountant registered by
the Department of Professional Regulation and the such annual
examination  is  done  in conjunction with the credit union's
external  independent  audit  of  financial  statements,  the
requirements of this Section and subsection (3) of Section 34
shall be deemed met.
    (4)  A copy of the completed report of examination and  a
review  comment  letter,  if  any, citing exceptions revealed
during the examination, shall  be  submitted  to  the  credit
union  by  the  Department.  A  detailed  report  stating the
corrective actions taken by the Board of  Directors  on  each
exception  set  forth  in  the review comment letter shall be
filed with the Department within 40 days after  the  date  of
the  review  comment  letter, or as otherwise directed by the
Department. Any credit union through its officers, directors,
committee members  or  employees,  which  willfully  provides
fraudulent or misleading information regarding the corrective
actions  taken  on  exceptions  appearing in a review comment
letter may have its operations restricted to  the  collection
of  principal  and  interest  on  loans  outstanding  and the
payment of normal expenses and salaries until all  exceptions
are corrected and accepted by the Department.
(Source: P.A. 86-238.)

    (205 ILCS 305/12) (from Ch. 17, par. 4413)
    Sec. 12. Fees for examination and administration.
    (1)  A  credit  union  regulated  unions  examined by the
Department shall pay a regulatory an examination fee  to  the
Department  based  upon  its  total  assets  as  shown by its
Year-end Call Report Statement of Condition on  the  date  of
examination at the following rates:
TOTAL ASSETS                   REGULATORY EXAMINATION FEE
$25,000 or less ..........     $100 $25 plus $2 per $1,000 of
                               assets up to and including
                               $25,000
Over $25,000 and not over
$100,000 .................     $100 $75 plus $4
                               $1.75 per $1,000 of
                               assets in excess of $25,000
Over $100,000 and not over
$200,000 .................     $400 $206.25 plus $3
                               $1.50 per
                               $1,000 of assets in excess of
                               $100,000
Over $200,000 and not over
$500,000 .................     $700 $356.25 plus
                               $2 $1.25 per
                               $1,000 of assets in excess
                               of $200,000
Over $500,000 and not over
$1,000,000
$750,000..................     $1,300 $731.25
                               plus $1.40 85
                               cents per $1,000 of assets in
                               excess of $500,000
Over $1,000,000
$750,000 and not over
$5,000,000
$1,000,000 ...............     $2,000 $943.75
                               plus $0.50 80
                               cents per $1,000 of assets in
                               excess of $1,000,000
                               $750,000
Over $5,000,000
$1,000,000 and not over
$30,000,000
$5,000,000 ................    $4,000 $1,143.75
                               plus $0.35 40
                               cents per $1,000 assets
                               in excess of
                               $5,000,000 $1,000,000
Over $30,000,000 and not
over $100,000,000
$5,000,000 ..........          $12,750 $2,743.75
                               plus $0.30 25
                               cents per $1,000 of assets in
                               excess of $30,000,000
                               $5,000,000
Over $100,000,000 and not
over $500,000,000............. $33,750 plus $0.15 per
                               $1,000 of assets in excess
                               of  $100,000,000
Over
$500,000,000................   $93,750 plus
                               $0.05 per $1,000 of
                               assets in excess
                               of $500,000,000
    (2)  The   Director   shall  review  the  regulatory  fee
schedule in subsection (1) on an annual basis and adjust  the
fee  schedule no more than 5% annually if necessary to defray
the estimated administrative and operational expenses of  the
Department  as defined in subsection (5).  The Director shall
provide credit unions with written notice of  any  adjustment
made  in  the  regulatory fee schedule. In no event shall the
fee be less than $35 or more than  $28,000.   No  examination
fee  shall be collected from a credit union until it has been
in operation for one year.
    (3)  Not later than March February  1  of  each  calendar
year,  a  each  credit union shall pay to the Department, for
the preceding calendar year, a regulatory  an  administrative
fee  in  accordance  with  the  regulatory  fee  schedule  in
subsection  (1) scale set forth below, on the basis of assets
as of the Year-end Call Report December 31 of  the  preceding
year.,  but   The  regulatory  fee shall may not be less than
$100 or more than $125,000, provided that the regulatory  fee
cap  of  $125,000  shall  be adjusted to incorporate the same
percentage increase as the Director makes in  the  regulatory
fee  schedule from time to time under subsection (2) $25.  No
regulatory administrative  fee  shall  be  collected  from  a
credit union until it has been in operation for one year.
    Scale of Administrative Fees:
If a Credit Union Has                      The Administrative
Total Assets of:                           Fee is:
Under $25,000.................                           $ 25
At least $25,000 but less
than $50,000..................                             45
At least $50,000 but less
than $100,000.................                             85
At least $100,000 but less
than $200,000.................                            155
At least $200,000 but less
than $350,000.................                            195
At least $350,000 but less
than $500,000.................                            305
At least $500,000 but less
than $1,000,000...............                            500
At least $1,000,000 but less
than $2,000,000...............                            600
At least $2,000,000 but less
than $5,000,000...............                            775
At least $5,000,000 but less
than $10,000,000..............                          1,000
$10,000,000 or greater........       1,500 plus $150 for each
                                     additional $10,000,000
                                     in assets
    (4)  The   aggregate   of   all  fees  collected  by  the
Department under  this  Act  shall  be  paid  promptly  after
receipt  of  the  same,  accompanied  by a detailed statement
thereof, into the State Treasury and shall be  set  apart  in
the  Credit  Union Fund, a special fund hereby created in the
State treasury.  The amount from time to  time  deposited  in
the  Credit  Union  Fund  and  shall  be  used  to offset the
ordinary  administrative  and  operational  expenses  of  the
Department under this Act.
    (5)  The administrative and operational expenses for  any
calendar year shall mean the ordinary and contingent expenses
for  that year incidental to making the examinations provided
for by,  and  for  administering,  this  Act,  including  all
salaries  and  other  compensation paid for personal services
rendered for the State by officers or employees of the  State
to  enforce  this  Act;  all  expenditures  for telephone and
telegraph  charges,  postage  and  postal   charges,   office
supplies  and services, furniture and equipment, office space
and maintenance thereof, travel expenses and other  necessary
expenses;  all  to  the  extent  that  such  expenditures are
directly incidental to such examination or administration.
    (6)  When the aggregate of  all  fees  collected  by  the
Department  under  this Act for any calendar year exceeds the
total  administrative  and  operational  administration   and
examination  expenses  under  this  Act  for  that year, such
excess shall be credited to credit unions and applied against
their regulatory fees for the subsequent  year.   The  amount
credited to a credit union shall be in the same proportion as
the  fee  paid  by such credit union for the calendar year in
which the excess is produced bears to the  aggregate  of  the
fees  collected by the Department under this Act for the same
year.
    (7)  Examination  fees  for  the  year   2000   statutory
examinations paid pursuant to the examination fee schedule in
effect  at  that time shall be credited toward the regulatory
fee to be assessed the credit union in calendar year 2001.
    The Director shall transfer annually, for a 3 year period
beginning July 1, 1988, from the Credit  Union  Fund  to  the
General  Revenue  Fund  the sum of 1/3 of the General Revenue
Fund monies expended for the  administration  of  the  Credit
Union Division of the Department during fiscal year 1988.  No
such  transfer  shall  be  made  in any year when the average
daily balance during the previous fiscal year in  the  Credit
Union Fund falls below $300,000.
    (8)  Nothing  in  this  Act  shall  prohibit  the General
Assembly from appropriating funds to the Department from  the
General  Revenue  Fund  for the purpose of administering this
Act.
(Source: P.A. 85-716.)

    Section 99.   Effective  date.   This  Act  takes  effect
January 1, 2001.

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