Public Act 098-0784
HB5342 EnrolledLRB098 19293 ZMM 55277 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Illinois Banking Act is amended by changing
Section 48 as follows:
(205 ILCS 5/48)
Sec. 48. Secretary's powers; duties. The Secretary shall
have the powers and authority, and is charged with the duties
and responsibilities designated in this Act, and a State bank
shall not be subject to any other visitorial power other than
as authorized by this Act, except those vested in the courts,
or upon prior consultation with the Secretary, a foreign bank
regulator with an appropriate supervisory interest in the
parent or affiliate of a state bank. In the performance of the
Secretary's duties:
(1) The Commissioner shall call for statements from all
State banks as provided in Section 47 at least one time during
each calendar quarter.
(2) (a) The Commissioner, as often as the Commissioner
shall deem necessary or proper, and no less frequently than 18
months following the preceding examination, shall appoint a
suitable person or persons to make an examination of the
affairs of every State bank, except that for every eligible
State bank, as defined by regulation, the Commissioner in lieu
of the examination may accept on an alternating basis the
examination made by the eligible State bank's appropriate
federal banking agency pursuant to Section 111 of the Federal
Deposit Insurance Corporation Improvement Act of 1991,
provided the appropriate federal banking agency has made such
an examination. A person so appointed shall not be a
stockholder or officer or employee of any bank which that
person may be directed to examine, and shall have powers to
make a thorough examination into all the affairs of the bank
and in so doing to examine any of the officers or agents or
employees thereof on oath and shall make a full and detailed
report of the condition of the bank to the Commissioner. In
making the examination the examiners shall include an
examination of the affairs of all the affiliates of the bank,
as defined in subsection (b) of Section 35.2 of this Act, or
subsidiaries of the bank as shall be necessary to disclose
fully the conditions of the subsidiaries or affiliates, the
relations between the bank and the subsidiaries or affiliates
and the effect of those relations upon the affairs of the bank,
and in connection therewith shall have power to examine any of
the officers, directors, agents, or employees of the
subsidiaries or affiliates on oath. After May 31, 1997, the
Commissioner may enter into cooperative agreements with state
regulatory authorities of other states to provide for
examination of State bank branches in those states, and the
Commissioner may accept reports of examinations of State bank
branches from those state regulatory authorities. These
cooperative agreements may set forth the manner in which the
other state regulatory authorities may be compensated for
examinations prepared for and submitted to the Commissioner.
(b) After May 31, 1997, the Commissioner is authorized to
examine, as often as the Commissioner shall deem necessary or
proper, branches of out-of-state banks. The Commissioner may
establish and may assess fees to be paid to the Commissioner
for examinations under this subsection (b). The fees shall be
borne by the out-of-state bank, unless the fees are borne by
the state regulatory authority that chartered the out-of-state
bank, as determined by a cooperative agreement between the
Commissioner and the state regulatory authority that chartered
the out-of-state bank.
(2.1) Pursuant to paragraph (a) of subsection (6) of this
Section, the Secretary shall adopt rules that ensure
consistency and due process in the examination process. The
Secretary may also establish guidelines that (i) define the
scope of the examination process and (ii) clarify examination
items to be resolved. The rules, formal guidance, interpretive
letters, or opinions furnished to State banks by the Secretary
may be relied upon by the State banks.
(2.5) Whenever any State bank, any subsidiary or affiliate
of a State bank, or after May 31, 1997, any branch of an
out-of-state bank causes to be performed, by contract or
otherwise, any bank services for itself, whether on or off its
premises:
(a) that performance shall be subject to examination by
the Commissioner to the same extent as if services were
being performed by the bank or, after May 31, 1997, branch
of the out-of-state bank itself on its own premises; and
(b) the bank or, after May 31, 1997, branch of the
out-of-state bank shall notify the Commissioner of the
existence of a service relationship. The notification
shall be submitted with the first statement of condition
(as required by Section 47 of this Act) due after the
making of the service contract or the performance of the
service, whichever occurs first. The Commissioner shall be
notified of each subsequent contract in the same manner.
For purposes of this subsection (2.5), the term "bank
services" means services such as sorting and posting of checks
and deposits, computation and posting of interest and other
credits and charges, preparation and mailing of checks,
statements, notices, and similar items, or any other clerical,
bookkeeping, accounting, statistical, or similar functions
performed for a State bank, including but not limited to
electronic data processing related to those bank services.
(3) The expense of administering this Act, including the
expense of the examinations of State banks as provided in this
Act, shall to the extent of the amounts resulting from the fees
provided for in paragraphs (a), (a-2), and (b) of this
subsection (3) be assessed against and borne by the State
banks:
(a) Each bank shall pay to the Secretary a Call Report
Fee which shall be paid in quarterly installments equal to
one-fourth of the sum of the annual fixed fee of $800, plus
a variable fee based on the assets shown on the quarterly
statement of condition delivered to the Secretary in
accordance with Section 47 for the preceding quarter
according to the following schedule: 16¢ per $1,000 of the
first $5,000,000 of total assets, 15¢ per $1,000 of the
next $20,000,000 of total assets, 13¢ per $1,000 of the
next $75,000,000 of total assets, 9¢ per $1,000 of the next
$400,000,000 of total assets, 7¢ per $1,000 of the next
$500,000,000 of total assets, and 5¢ per $1,000 of all
assets in excess of $1,000,000,000, of the State bank. The
Call Report Fee shall be calculated by the Secretary and
billed to the banks for remittance at the time of the
quarterly statements of condition provided for in Section
47. The Secretary may require payment of the fees provided
in this Section by an electronic transfer of funds or an
automatic debit of an account of each of the State banks.
In case more than one examination of any bank is deemed by
the Secretary to be necessary in any examination frequency
cycle specified in subsection 2(a) of this Section, and is
performed at his direction, the Secretary may assess a
reasonable additional fee to recover the cost of the
additional examination; provided, however, that an
examination conducted at the request of the State Treasurer
pursuant to the Uniform Disposition of Unclaimed Property
Act shall not be deemed to be an additional examination
under this Section. In lieu of the method and amounts set
forth in this paragraph (a) for the calculation of the Call
Report Fee, the Secretary may specify by rule that the Call
Report Fees provided by this Section may be assessed
semiannually or some other period and may provide in the
rule the formula to be used for calculating and assessing
the periodic Call Report Fees to be paid by State banks.
(a-1) If in the opinion of the Commissioner an
emergency exists or appears likely, the Commissioner may
assign an examiner or examiners to monitor the affairs of a
State bank with whatever frequency he deems appropriate,
including but not limited to a daily basis. The reasonable
and necessary expenses of the Commissioner during the
period of the monitoring shall be borne by the subject
bank. The Commissioner shall furnish the State bank a
statement of time and expenses if requested to do so within
30 days of the conclusion of the monitoring period.
(a-2) On and after January 1, 1990, the reasonable and
necessary expenses of the Commissioner during examination
of the performance of electronic data processing services
under subsection (2.5) shall be borne by the banks for
which the services are provided. An amount, based upon a
fee structure prescribed by the Commissioner, shall be paid
by the banks or, after May 31, 1997, branches of
out-of-state banks receiving the electronic data
processing services along with the Call Report Fee assessed
under paragraph (a) of this subsection (3).
(a-3) After May 31, 1997, the reasonable and necessary
expenses of the Commissioner during examination of the
performance of electronic data processing services under
subsection (2.5) at or on behalf of branches of
out-of-state banks shall be borne by the out-of-state
banks, unless those expenses are borne by the state
regulatory authorities that chartered the out-of-state
banks, as determined by cooperative agreements between the
Commissioner and the state regulatory authorities that
chartered the out-of-state banks.
(b) "Fiscal year" for purposes of this Section 48 is
defined as a period beginning July 1 of any year and ending
June 30 of the next year. The Commissioner shall receive
for each fiscal year, commencing with the fiscal year
ending June 30, 1987, a contingent fee equal to the lesser
of the aggregate of the fees paid by all State banks under
paragraph (a) of subsection (3) for that year, or the
amount, if any, whereby the aggregate of the administration
expenses, as defined in paragraph (c), for that fiscal year
exceeds the sum of the aggregate of the fees payable by all
State banks for that year under paragraph (a) of subsection
(3), plus any amounts transferred into the Bank and Trust
Company Fund from the State Pensions Fund for that year,
plus all other amounts collected by the Commissioner for
that year under any other provision of this Act, plus the
aggregate of all fees collected for that year by the
Commissioner under the Corporate Fiduciary Act, excluding
the receivership fees provided for in Section 5-10 of the
Corporate Fiduciary Act, and the Foreign Banking Office
Act. The aggregate amount of the contingent fee thus
arrived at for any fiscal year shall be apportioned
amongst, assessed upon, and paid by the State banks and
foreign banking corporations, respectively, in the same
proportion that the fee of each under paragraph (a) of
subsection (3), respectively, for that year bears to the
aggregate for that year of the fees collected under
paragraph (a) of subsection (3). The aggregate amount of
the contingent fee, and the portion thereof to be assessed
upon each State bank and foreign banking corporation,
respectively, shall be determined by the Commissioner and
shall be paid by each, respectively, within 120 days of the
close of the period for which the contingent fee is
computed and is payable, and the Commissioner shall give 20
days advance notice of the amount of the contingent fee
payable by the State bank and of the date fixed by the
Commissioner for payment of the fee.
(c) The "administration expenses" for any fiscal year
shall mean the ordinary and contingent expenses for that
year incident to making the examinations provided for by,
and for otherwise administering, this Act, the Corporate
Fiduciary Act, excluding the expenses paid from the
Corporate Fiduciary Receivership account in the Bank and
Trust Company Fund, the Foreign Banking Office Act, the
Electronic Fund Transfer Act, and the Illinois Bank
Examiners' Education Foundation Act, including all
salaries and other compensation paid for personal services
rendered for the State by officers or employees of the
State, including the Commissioner and the Deputy
Commissioners, communication equipment and services,
office furnishings, surety bond premiums, and travel
expenses of those officers and employees, employees,
expenditures or charges for the acquisition, enlargement
or improvement of, or for the use of, any office space,
building, or structure, or expenditures for the
maintenance thereof or for furnishing heat, light, or power
with respect thereto, all to the extent that those
expenditures are directly incidental to such examinations
or administration. The Commissioner shall not be required
by paragraphs (c) or (d-1) of this subsection (3) to
maintain in any fiscal year's budget appropriated reserves
for accrued vacation and accrued sick leave that is
required to be paid to employees of the Commissioner upon
termination of their service with the Commissioner in an
amount that is more than is reasonably anticipated to be
necessary for any anticipated turnover in employees,
whether due to normal attrition or due to layoffs,
terminations, or resignations.
(d) The aggregate of all fees collected by the
Secretary under this Act, the Corporate Fiduciary Act, or
the Foreign Banking Office Act on and after July 1, 1979,
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 a special fund to be
known as the "Bank and Trust Company Fund", except as
provided in paragraph (c) of subsection (11) of this
Section. All earnings received from investments of funds in
the Bank and Trust Company Fund shall be deposited in the
Bank and Trust Company Fund and may be used for the same
purposes as fees deposited in that Fund. The amount from
time to time deposited into the Bank and Trust Company Fund
shall be used: (i) to offset the ordinary administrative
expenses of the Secretary as defined in this Section or
(ii) as a credit against fees under paragraph (d-1) of this
subsection (3). Nothing in this amendatory Act of 1979
shall prevent continuing the practice of paying expenses
involving salaries, retirement, social security, and
State-paid insurance premiums of State officers by
appropriations from the General Revenue Fund. However, the
General Revenue Fund shall be reimbursed for those payments
made on and after July 1, 1979, by an annual transfer of
funds from the Bank and Trust Company Fund. Moneys in the
Bank and Trust Company Fund may be transferred to the
Professions Indirect Cost Fund, as authorized under
Section 2105-300 of the Department of Professional
Regulation Law of the Civil Administrative Code of
Illinois.
Notwithstanding provisions in the State Finance Act,
as now or hereafter amended, or any other law to the
contrary, the sum of $18,788,847 shall be transferred from
the Bank and Trust Company Fund to the Financial
Institutions Settlement of 2008 Fund on the effective date
of this amendatory Act of the 95th General Assembly, or as
soon thereafter as practical.
Notwithstanding provisions in the State Finance Act,
as now or hereafter amended, or any other law to the
contrary, the Governor may, during any fiscal year through
January 10, 2011, from time to time direct the State
Treasurer and Comptroller to transfer a specified sum not
exceeding 10% of the revenues to be deposited into the Bank
and Trust Company Fund during that fiscal year from that
Fund to the General Revenue Fund in order to help defray
the State's operating costs for the fiscal year.
Notwithstanding provisions in the State Finance Act, as now
or hereafter amended, or any other law to the contrary, the
total sum transferred during any fiscal year through
January 10, 2011, from the Bank and Trust Company Fund to
the General Revenue Fund pursuant to this provision shall
not exceed during any fiscal year 10% of the revenues to be
deposited into the Bank and Trust Company Fund during that
fiscal year. The State Treasurer and Comptroller shall
transfer the amounts designated under this Section as soon
as may be practicable after receiving the direction to
transfer from the Governor.
(d-1) Adequate funds shall be available in the Bank and
Trust Company Fund to permit the timely payment of
administration expenses. In each fiscal year the total
administration expenses shall be deducted from the total
fees collected by the Commissioner and the remainder
transferred into the Cash Flow Reserve Account, unless the
balance of the Cash Flow Reserve Account prior to the
transfer equals or exceeds one-fourth of the total initial
appropriations from the Bank and Trust Company Fund for the
subsequent year, in which case the remainder shall be
credited to State banks and foreign banking corporations
and applied against their fees for the subsequent year. The
amount credited to each State bank and foreign banking
corporation shall be in the same proportion as the Call
Report Fees paid by each for the year bear to the total
Call Report Fees collected for the year. If, after a
transfer to the Cash Flow Reserve Account is made or if no
remainder is available for transfer, the balance of the
Cash Flow Reserve Account is less than one-fourth of the
total initial appropriations for the subsequent year and
the amount transferred is less than 5% of the total Call
Report Fees for the year, additional amounts needed to make
the transfer equal to 5% of the total Call Report Fees for
the year shall be apportioned amongst, assessed upon, and
paid by the State banks and foreign banking corporations in
the same proportion that the Call Report Fees of each,
respectively, for the year bear to the total Call Report
Fees collected for the year. The additional amounts
assessed shall be transferred into the Cash Flow Reserve
Account. For purposes of this paragraph (d-1), the
calculation of the fees collected by the Commissioner shall
exclude the receivership fees provided for in Section 5-10
of the Corporate Fiduciary Act.
(e) The Commissioner may upon request certify to any
public record in his keeping and shall have authority to
levy a reasonable charge for issuing certifications of any
public record in his keeping.
(f) In addition to fees authorized elsewhere in this
Act, the Commissioner may, in connection with a review,
approval, or provision of a service, levy a reasonable
charge to recover the cost of the review, approval, or
service.
(4) Nothing contained in this Act shall be construed to
limit the obligation relative to examinations and reports of
any State bank, deposits in which are to any extent insured by
the United States or any agency thereof, nor to limit in any
way the powers of the Commissioner with reference to
examinations and reports of that bank.
(5) The nature and condition of the assets in or investment
of any bonus, pension, or profit sharing plan for officers or
employees of every State bank or, after May 31, 1997, branch of
an out-of-state bank shall be deemed to be included in the
affairs of that State bank or branch of an out-of-state bank
subject to examination by the Commissioner under the provisions
of subsection (2) of this Section, and if the Commissioner
shall find from an examination that the condition of or
operation of the investments or assets of the plan is unlawful,
fraudulent, or unsafe, or that any trustee has abused his
trust, the Commissioner shall, if the situation so found by the
Commissioner shall not be corrected to his satisfaction within
60 days after the Commissioner has given notice to the board of
directors of the State bank or out-of-state bank of his
findings, report the facts to the Attorney General who shall
thereupon institute proceedings against the State bank or
out-of-state bank, the board of directors thereof, or the
trustees under such plan as the nature of the case may require.
(6) The Commissioner shall have the power:
(a) To promulgate reasonable rules for the purpose of
administering the provisions of this Act.
(a-5) To impose conditions on any approval issued by
the Commissioner if he determines that the conditions are
necessary or appropriate. These conditions shall be
imposed in writing and shall continue in effect for the
period prescribed by the Commissioner.
(b) To issue orders against any person, if the
Commissioner has reasonable cause to believe that an unsafe
or unsound banking practice has occurred, is occurring, or
is about to occur, if any person has violated, is
violating, or is about to violate any law, rule, or written
agreement with the Commissioner, or for the purpose of
administering the provisions of this Act and any rule
promulgated in accordance with this Act.
(b-1) To enter into agreements with a bank establishing
a program to correct the condition of the bank or its
practices.
(c) To appoint hearing officers to execute any of the
powers granted to the Commissioner under this Section for
the purpose of administering this Act and any rule
promulgated in accordance with this Act and otherwise to
authorize, in writing, an officer or employee of the Office
of Banks and Real Estate to exercise his powers under this
Act.
(d) To subpoena witnesses, to compel their attendance,
to administer an oath, to examine any person under oath,
and to require the production of any relevant books,
papers, accounts, and documents in the course of and
pursuant to any investigation being conducted, or any
action being taken, by the Commissioner in respect of any
matter relating to the duties imposed upon, or the powers
vested in, the Commissioner under the provisions of this
Act or any rule promulgated in accordance with this Act.
(e) To conduct hearings.
(7) Whenever, in the opinion of the Secretary, any
director, officer, employee, or agent of a State bank or any
subsidiary or bank holding company of the bank or, after May
31, 1997, of any branch of an out-of-state bank or any
subsidiary or bank holding company of the bank shall have
violated any law, rule, or order relating to that bank or any
subsidiary or bank holding company of the bank, shall have
obstructed or impeded any examination or investigation by the
Secretary, shall have engaged in an unsafe or unsound practice
in conducting the business of that bank or any subsidiary or
bank holding company of the bank, or shall have violated any
law or engaged or participated in any unsafe or unsound
practice in connection with any financial institution or other
business entity such that the character and fitness of the
director, officer, employee, or agent does not assure
reasonable promise of safe and sound operation of the State
bank, the Secretary may issue an order of removal. If, in the
opinion of the Secretary, any former director, officer,
employee, or agent of a State bank or any subsidiary or bank
holding company of the bank, prior to the termination of his or
her service with that bank or any subsidiary or bank holding
company of the bank, violated any law, rule, or order relating
to that State bank or any subsidiary or bank holding company of
the bank, obstructed or impeded any examination or
investigation by the Secretary, engaged in an unsafe or unsound
practice in conducting the business of that bank or any
subsidiary or bank holding company of the bank, or violated any
law or engaged or participated in any unsafe or unsound
practice in connection with any financial institution or other
business entity such that the character and fitness of the
director, officer, employee, or agent would not have assured
reasonable promise of safe and sound operation of the State
bank, the Secretary may issue an order prohibiting that person
from further service with a bank or any subsidiary or bank
holding company of the bank as a director, officer, employee,
or agent. An order issued pursuant to this subsection shall be
served upon the director, officer, employee, or agent. A copy
of the order shall be sent to each director of the bank
affected by registered mail. A copy of the order shall also be
served upon the bank of which he is a director, officer,
employee, or agent, whereupon he shall cease to be a director,
officer, employee, or agent of that bank. The Secretary may
institute a civil action against the director, officer, or
agent of the State bank or, after May 31, 1997, of the branch
of the out-of-state bank against whom any order provided for by
this subsection (7) of this Section 48 has been issued, and
against the State bank or, after May 31, 1997, out-of-state
bank, to enforce compliance with or to enjoin any violation of
the terms of the order. Any person who has been the subject of
an order of removal or an order of prohibition issued by the
Secretary under this subsection or Section 5-6 of the Corporate
Fiduciary Act may not thereafter serve as director, officer,
employee, or agent of any State bank or of any branch of any
out-of-state bank, or of any corporate fiduciary, as defined in
Section 1-5.05 of the Corporate Fiduciary Act, or of any other
entity that is subject to licensure or regulation by the
Division of Banking unless the Secretary has granted prior
approval in writing.
For purposes of this paragraph (7), "bank holding company"
has the meaning prescribed in Section 2 of the Illinois Bank
Holding Company Act of 1957.
(8) The Commissioner may impose civil penalties of up to
$100,000 against any person for each violation of any provision
of this Act, any rule promulgated in accordance with this Act,
any order of the Commissioner, or any other action which in the
Commissioner's discretion is an unsafe or unsound banking
practice.
(9) The Commissioner may impose civil penalties of up to
$100 against any person for the first failure to comply with
reporting requirements set forth in the report of examination
of the bank and up to $200 for the second and subsequent
failures to comply with those reporting requirements.
(10) All final administrative decisions of the
Commissioner hereunder shall be subject to judicial review
pursuant to the provisions of the Administrative Review Law.
For matters involving administrative review, venue shall be in
either Sangamon County or Cook County.
(11) The endowment fund for the Illinois Bank Examiners'
Education Foundation shall be administered as follows:
(a) (Blank).
(b) The Foundation is empowered to receive voluntary
contributions, gifts, grants, bequests, and donations on
behalf of the Illinois Bank Examiners' Education
Foundation from national banks and other persons for the
purpose of funding the endowment of the Illinois Bank
Examiners' Education Foundation.
(c) The aggregate of all special educational fees
collected by the Secretary and property received by the
Secretary on behalf of the Illinois Bank Examiners'
Education Foundation under this subsection (11) on or after
June 30, 1986, shall be either (i) promptly paid after
receipt of the same, accompanied by a detailed statement
thereof, into the State Treasury and shall be set apart in
a special fund to be known as "The Illinois Bank Examiners'
Education Fund" to be invested by either the Treasurer of
the State of Illinois in the Public Treasurers' Investment
Pool or in any other investment he is authorized to make or
by the Illinois State Board of Investment as the State
Banking Board of Illinois may direct or (ii) deposited into
an account maintained in a commercial bank or corporate
fiduciary in the name of the Illinois Bank Examiners'
Education Foundation pursuant to the order and direction of
the Board of Trustees of the Illinois Bank Examiners'
Education Foundation.
(12) (Blank).
(13) The Secretary may borrow funds from the General
Revenue Fund on behalf of the Bank and Trust Company Fund if
the Director of Banking certifies to the Governor that there is
an economic emergency affecting banking that requires a
borrowing to provide additional funds to the Bank and Trust
Company Fund. The borrowed funds shall be paid back within 3
years and shall not exceed the total funding appropriated to
the Agency in the previous year.
(Source: P.A. 96-1163, eff. 1-1-11; 96-1365, eff. 7-28-10;
97-333, eff. 8-12-11.)
Section 4. The Savings Bank Act is amended by changing
Section 9004 as follows:
(205 ILCS 205/9004) (from Ch. 17, par. 7309-4)
Sec. 9004. Examination.
(a) At least once every 18 months or more often if it is
deemed necessary or expedient, the Secretary shall examine the
books, records, operations, and affairs of each savings bank
operating under this Act. In the course of the examination, the
Secretary may also examine in the same manner all entities,
companies, and individuals which or whom the Secretary
determines may have a relationship with the savings bank or any
subsidiary or entity affiliated with it, if the relationship
may adversely affect the affairs, activities, and safety and
soundness of the savings bank, including: (i) companies
controlled by the savings bank; (ii) entities, including
companies controlled by the company, individual, or
individuals that control the savings bank; and (iii) the
company or other entity which controls or owns the savings
bank. Notwithstanding any other provision of this Act, every
savings bank, as defined by rule, or, if not defined, to the
same extent as would be permitted in the case of a State bank,
the Secretary, in lieu of the examination, may accept on an
alternating basis the examination made by the eligible savings
bank's appropriate federal banking agency pursuant to Section
111 of the Federal Deposit Insurance Corporation Improvement
Act of 1991, provided the appropriate federal banking agency
has made an examination.
(b) The Secretary shall examine to determine:
(1) Quality of financial condition, including safety
and soundness and investment and loan quality.
(2) Compliance with this Act and other applicable
statutes and regulations.
(3) Quality of management policies.
(4) Overall safety and soundness of the savings bank,
its parent, subsidiaries, and affiliates.
(5) Remedial actions required to correct and to restore
compliance with applicable statutes, regulations, and
proper business policies.
(c) The Secretary may promulgate regulations to implement
and administer this Section.
(d) If a savings bank, its holding company, or any of its
corporate subsidiaries has not been audited at least once in
the 12 months prior to the Secretary's examination, the
Secretary may cause an audit of the savings bank's books and
records to be made by an independent licensed public
accountant. The cost of the audit shall be paid for by the
entity being audited.
(e) The Secretary or his or her examiners or other formally
designated agents are authorized to administer oaths and to
examine and to take and preserve testimony under oath as to
anything in the affairs or ownership of any savings bank or
institution or affiliate thereof.
(f) Pursuant to subsection (c) of this Section, the
Secretary shall adopt rules that ensure consistency and due
process in the examination process. The Secretary may also
establish guidelines that (i) define the scope of the
examination process and (ii) clarify examination items to be
resolved. The rules, formal guidance, interpretive letters, or
opinions furnished to savings banks by the Secretary may be
relied upon by the savings banks.
(Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)
Section 5. The Illinois Credit Union Act is amended by
changing Sections 1.1, 9, 30, 34, 39, and 46 and by adding
Section 57.1 as follows:
(205 ILCS 305/1.1) (from Ch. 17, par. 4402)
Sec. 1.1. Definitions.
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, secondary 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.)
(205 ILCS 305/9) (from Ch. 17, par. 4410)
Sec. 9. Reports and examinations.
(1) Credit unions shall report to the Department on forms
supplied by the Department, in accordance with a schedule
published 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 for each day the report
is overdue as prescribed by rule. The Secretary may extend the
time for filing a report.
(2) The Secretary 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 as prescribed by
rule.
(3) All credit unions incorporated under this Act shall be
examined at least biennially by the Department or, at the
discretion of the Secretary, by a public accountant registered
by the Department of Financial and 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 Secretary determines that the
examination of a credit union is to be conducted by a public
accountant registered by the Department of Financial and
Professional Regulation and the 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.
(3.5) Pursuant to Section 8, the Secretary shall adopt
rules that ensure consistency and due process in the
examination process. The Secretary may also establish
guidelines that (i) define the scope of the examination process
and (ii) clarify examination items to be resolved. The rules,
formal guidance, interpretative letters, or opinions furnished
to credit unions by the Secretary may be relied upon by the
credit unions.
(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. 97-133, eff. 1-1-12.)
(205 ILCS 305/30) (from Ch. 17, par. 4431)
Sec. 30. Duties of directors.
(a) It shall be the duty of the directors to:
(1) Review actions on applications for membership. A
record of the membership committee's approval or denial of
membership or management's approval or denial of
membership if no membership committee has been appointed
shall be available to the board of directors for
inspection. A person denied membership by the membership
committee or credit union management may appeal the denial
to the board;
(2) Provide adequate fidelity bond coverage for
officers, employees, directors and committee members, and
for losses caused by persons outside of the credit union,
subject to rules and regulations promulgated by the
Secretary;
(3) Determine from time to time the interest rates, not
in excess of that allowed under this Act, which shall be
charged on loans to members and to authorize interest
refunds, if any, to members from income earned and received
in proportion to the interest paid by them on such classes
of loans and under such conditions as the board prescribes.
The directors may establish different interest rates to be
charged on different classes of loans;
(4) Within any limitations set forth in the credit
union's bylaws, fix the maximum amount which may be loaned
with and without security to a member;
(5) Declare dividends on various classes of shares in
the manner and form as provided in the bylaws;
(6) Limit the number of shares which may be owned by a
member; such limitations to apply alike to all members;
(7) Have charge of the investment of funds, except that
the board of directors may designate an investment
committee or any qualified individual or entity to have
charge of making investments under policies established by
the board of directors;
(8) Authorize the employment of or contracting with
such persons or organizations as may be necessary to carry
on the operations of the credit union, provided that prior
approval is received from the Department before delegating
substantially all managerial duties and responsibilities
to a credit union organization, and fix the compensation,
if any, of the officers and provide for compensation for
other employees within policies established by the board of
directors;
(9) Authorize the conveyance of property;
(10) Borrow or lend money consistent with the
provisions of this Act;
(11) Designate a depository or depositories for the
funds of the credit union and supervise the investment of
funds;
(12) Suspend or remove, or both, any or all officers or
any or all members of the membership, credit, or other
committees whenever, in the judgment of the board of
directors, the best interests of the credit union will be
served thereby; provided that members of the supervisory
committee may not be suspended or removed except for
failure to perform their duties; and provided that removal
of any officer shall be without prejudice to the contract
rights, if any, of the person so removed;
(13) Appoint any special committees deemed necessary;
and
(14) Perform such other duties as the members may
direct, and perform or authorize any action not
inconsistent with this Act and not specifically reserved by
the bylaws to the members.
(b) The board of directors may delegate to the chief
management official, according to guidelines established by
the board that may include the authority to further delegate
one or more duties, all of the following duties:
(1) determining the interest rates on loans;
(2) determining the dividend rates on share accounts;
and
(3) hiring employees other than the chief management
official and fixing their compensation.
(c) Each director shall have a working familiarity with
basic finance and accounting practices consistent with the size
and complexity of the credit union operation they serve,
including the ability to read and understand the credit union's
balance sheet and income and expense statements and the ability
to ask, when appropriate, substantive questions of management
and auditors. For the purposes of this subsection (c),
substantive questions include queries concerning financial
services and products offered to the membership; how those
activities generate revenue for the credit union; the credit,
liquidity, interest rate, compliance, strategic, transaction,
and reputation risks associated with those activities; and the
internal control structures maintained by the credit union that
limit and manage those risks.
A director who was elected or appointed on or after January
1, 2015 and who comes to the position without the requisite
financial skills shall have until 6 months after the date of
election or appointment to acquire the enumerated skills.
An incumbent director who was elected or appointed before
January 1, 2015 and does not possess the requisite financial
skills shall have until July 1, 2015 to acquire the enumerated
skills.
An incumbent director or a director who is elected or
appointed on or after January 1, 2015 who already understands
his or her credit union's financial statements shall not be
required to do anything further to satisfy the financial skills
requirement set forth in subsection (c).
It is the intent of the Department that all credit union
directors possess a basic understanding of their credit union's
financial condition. It is not the intent of the Department to
subject credit union directors to examiner scrutiny of their
financial skills. Rather, the Department shall evaluate
whether the credit union has in place a policy to make
available to their directors appropriate training to enhance
their financial knowledge of the credit union. Directors may
receive the training through internal credit union training,
external training offered by the credit union's retained
auditors, trade associations, vendors, regulatory agencies, or
any other sources or on-the-job experience, or a combination of
those activities. The training may be received through any
medium, including, but not limited to, conferences, workshops,
audit closing meetings, seminars, teleconferences, webinars,
and other internet based delivery channels.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/34) (from Ch. 17, par. 4435)
Sec. 34. Duties of supervisory committee.
(1) The supervisory committee shall make or cause to be
made an annual internal audit of the books and affairs of the
credit union to determine that the credit union's accounting
records and reports are prepared promptly and accurately
reflect operations and results, that internal controls are
established and effectively maintained to safeguard the assets
of the credit union, and that the policies, procedures and
practices established by the board of directors and management
of the credit union are being properly administered. The
supervisory committee shall submit a report of that audit to
the board of directors and a summary of that report to the
members at the next annual meeting of the credit union. It
shall make or cause to be made such supplementary audits as it
deems necessary or as are required by the Secretary or by the
board of directors, and submit reports of these supplementary
audits to the Secretary or board of directors as applicable. If
the supervisory committee has not engaged a public accountant
registered by the Department of Financial and Professional
Regulation to make the internal audit, the supervisory
committee or other officials of the credit union shall not
indicate or in any manner imply that such audit has been
performed by a public accountant or that the audit represents
the independent opinion of a public accountant. The supervisory
committee must retain its tapes and working papers of each
internal audit for inspection by the Department. The report of
this audit must be made on a form approved by the Secretary. A
copy of the report must be promptly mailed to the Secretary.
(2) The supervisory committee shall make or cause to be
made at least once each year a reasonable percentage
verification of members' share and loan accounts, consistent
with rules promulgated by the Secretary.
(3) The supervisory committee of a credit union with assets
of $5,000,000 or more shall engage a public accountant
registered by the Department of Financial and Professional
Regulation to perform an annual external independent audit of
the credit union's financial statements in accordance with
generally accepted auditing standards. The supervisory
committee of a credit union with assets of $3,000,000 or more,
but less than $5,000,000, shall engage a public accountant
registered by the Department of Financial and Professional
Regulation to perform an external independent audit of the
credit union's financial statements in accordance with
generally accepted auditing standards at least once every 3
years. A copy of an external independent audit shall be
completed and mailed to the Secretary no later than 90 days
after December 31 of each year; provided that a credit union or
group of credit unions may obtain an extension of the due date
upon application to and receipt of written approval from the
Secretary. If the annual internal audit of such a credit union
is conducted by a public accountant registered by the
Department of Financial and Professional Regulation and the
annual internal audit is done in conjunction with the credit
union's annual external audit, the requirements of subsection
(1) of this Section shall be deemed met.
(4) In determining the appropriate balance in the allowance
for loan losses account, a credit union may determine its
historical loss rate using a defined period of time of less
than 5 years, provided that:
(A) the methodology used to determine the defined
period of time is formally documented in the credit union's
policies and procedures and is appropriate to the credit
union's size, business strategy, and loan portfolio
characteristics and the economic environment of the areas
and employers served by the credit union;
(B) supporting documentation is maintained for the
technique used to develop the credit union loss rates,
including the period of time used to accumulate historical
loss data and the factors considered in establishing the
time frames; and
(C) the external auditor conducting the credit union's
financial statement audit has analyzed the methodology
employed by the credit union and concludes that the
financial statements, including the allowance for loan
losses, are fairly stated in all material respects in
accordance with U.S. Generally Accepted Accounting
Principles, as promulgated by the Financial Accounting
Standards Board.
(5) A majority of the members of the supervisory committee
shall constitute a quorum.
(6) On an annual basis commencing January 1, 2015, the
members of the supervisory committee shall receive training
related to their statutory duties. Supervisory committee
members may receive the training through internal credit union
training, external training offered by the credit union's
retained auditors, trade associations, vendors, regulatory
agencies, or any other sources or on-the-job experience, or a
combination of those activities. The training may be received
through any medium, including, but not limited to, conferences,
workshops, audit closing meetings, seminars, teleconferences,
webinars, and other Internet-based delivery channels.
(Source: P.A. 96-141, eff. 8-7-09; 96-963, eff. 7-2-10; 97-133,
eff. 1-1-12.)
(205 ILCS 305/39) (from Ch. 17, par. 4440)
Sec. 39. Special purpose share accounts; charitable
donation accounts.
(1) If provided for in and consistent with the bylaws,
Christmas clubs, vacation clubs and other special purpose share
accounts may be established and offered under conditions and
restrictions established by the board of directors.
(2) Pursuant to a policy adopted by the board of directors,
which may be amended from time to time, a credit union may
establish one or more charitable donation accounts. The
investments and purchases to fund a charitable donation account
are not subject to the investment limitations of this Act,
provided the charitable donation account is structured in
accordance with this Act. At their time of purchase, the book
value of the investments in all charitable donation accounts,
in the aggregate, shall not exceed 5% of the credit union's net
worth.
(a) If a credit union chooses to establish a charitable
donation account using a trust vehicle, the trustee must be
an entity regulated by the Office of the Comptroller of the
Currency, the U.S. Securities and Exchange Commission,
another federal regulatory agency, or a State financial
regulatory agency. A regulated trustee or other person who
is authorized to make investment decisions for a charitable
donation account, other than the credit union itself, shall
either be registered with the U.S. Securities and Exchange
Commission as an investment advisor or regulated by the
Office of the Comptroller of the Currency.
(b) The parties to the charitable donation account must
document the terms and conditions controlling the account
in a written operating agreement, trust agreement, or
similar instrument. The terms of the agreement shall be
consistent with the requirements and conditions set forth
in this Section. The agreement, if applicable, and policies
must document the investment strategies of the charitable
donation account trustee or other manager in administering
the charitable donation account and provide for the
accounting of all aspects of the account, including its
distributions and liquidation, in accordance with
generally accepted accounting principles.
(c) A credit union's charitable donation account
agreement, if applicable, and policies shall provide that
the charitable organization or non-profit entity
recipients of any charitable donation account funds must be
identified in the policy and be exempt from taxation under
Section 501(c)(3) of the Internal Revenue Code.
(d) Upon termination of a charitable donation account,
the credit union may receive a distribution of the
remaining assets in cash, or a distribution in kind of the
remaining assets, but only if those assets are permissible
investments for credit unions pursuant to this Act.
(Source: P.A. 97-133, eff. 1-1-12.)
(205 ILCS 305/46) (from Ch. 17, par. 4447)
Sec. 46. Loans and interest rate.
(1) A credit union may make loans to its members for such
purpose and upon such security and terms, including rates of
interest, as the credit committee, credit manager, or loan
officer approves. Notwithstanding the provisions of any other
law in connection with extensions of credit, a credit union may
elect to contract for and receive interest and fees and other
charges for extensions of credit subject only to the provisions
of this Act and rules promulgated under this Act, except that
extensions of credit secured by residential real estate shall
be subject to the laws applicable thereto. The rates of
interest to be charged on loans to members shall be set by the
board of directors of each individual credit union in
accordance with Section 30 of this Act and such rates may be
less than, but may not exceed, the maximum rate set forth in
this Section. A borrower may repay his loan prior to maturity,
in whole or in part, without penalty. The credit contract may
provide for the payment by the member and receipt by the credit
union of all costs and disbursements, including reasonable
attorney's fees and collection agency charges, incurred by the
credit union to collect or enforce the debt in the event of a
delinquency by the member, or in the event of a breach of any
obligation of the member under the credit contract. A
contingency or hourly arrangement established under an
agreement entered into by a credit union with an attorney or
collection agency to collect a loan of a member in default
shall be presumed prima facie reasonable.
(2) Credit unions may make loans based upon the security of
any interest or equity in real estate, subject to rules and
regulations promulgated by the Secretary. In any contract or
loan which is secured by a mortgage, deed of trust, or
conveyance in the nature of a mortgage, on residential real
estate, the interest which is computed, calculated, charged, or
collected pursuant to such contract or loan, or pursuant to any
regulation or rule promulgated pursuant to this Act, may not be
computed, calculated, charged or collected for any period of
time occurring after the date on which the total indebtedness,
with the exception of late payment penalties, is paid in full.
For purposes of this subsection (2) of this Section 46, a
prepayment shall mean the payment of the total indebtedness,
with the exception of late payment penalties if incurred or
charged, on any date before the date specified in the contract
or loan agreement on which the total indebtedness shall be paid
in full, or before the date on which all payments, if timely
made, shall have been made. In the event of a prepayment of the
indebtedness which is made on a date after the date on which
interest on the indebtedness was last computed, calculated,
charged, or collected but before the next date on which
interest on the indebtedness was to be calculated, computed,
charged, or collected, the lender may calculate, charge and
collect interest on the indebtedness for the period which
elapsed between the date on which the prepayment is made and
the date on which interest on the indebtedness was last
computed, calculated, charged or collected at a rate equal to
1/360 of the annual rate for each day which so elapsed, which
rate shall be applied to the indebtedness outstanding as of the
date of prepayment. The lender shall refund to the borrower any
interest charged or collected which exceeds that which the
lender may charge or collect pursuant to the preceding
sentence. The provisions of this amendatory Act of 1985 shall
apply only to contracts or loans entered into on or after the
effective date of this amendatory Act.
(3) Notwithstanding any other provision of this Act, a
credit union authorized under this Act to make loans secured by
an interest or equity in real estate may engage in making
"reverse mortgage" loans to persons for the purpose of making
home improvements or repairs, paying insurance premiums or
paying real estate taxes on the homestead properties of such
persons. If made, such loans shall be made on such terms and
conditions as the credit union shall determine and as shall be
consistent with the provisions of this Section and such rules
and regulations as the Secretary shall promulgate hereunder.
For purposes of this Section, a "reverse mortgage" loan shall
be a loan extended on the basis of existing equity in homestead
property and secured by a mortgage on such property. Such loans
shall be repaid upon the sale of the property or upon the death
of the owner or, if the property is in joint tenancy, upon the
death of the last surviving joint tenant who had such an
interest in the property at the time the loan was initiated,
provided, however, that the credit union and its member may by
mutual agreement, establish other repayment terms. A credit
union, in making a "reverse mortgage" loan, may add deferred
interest to principal or otherwise provide for the charging of
interest or premiums on such deferred interest. "Homestead"
property, for purposes of this Section, means the domicile and
contiguous real estate owned and occupied by the mortgagor.
(4) Notwithstanding any other provisions of this Act, a
credit union authorized under this Act to make loans secured by
an interest or equity in real property may engage in making
revolving credit loans secured by mortgages or deeds of trust
on such real property or by security assignments of beneficial
interests in land trusts.
For purposes of this Section, "revolving credit" has the
meaning defined in Section 4.1 of the Interest Act.
Any mortgage or deed of trust given to secure a revolving
credit loan may, and when so expressed therein shall, secure
not only the existing indebtedness but also such future
advances, whether such advances are obligatory or to be made at
the option of the lender, or otherwise, as are made within
twenty years from the date thereof, to the same extent as if
such future advances were made on the date of the execution of
such mortgage or deed of trust, although there may be no
advance made at the time of execution of such mortgage or other
instrument, and although there may be no indebtedness
outstanding at the time any advance is made. The lien of such
mortgage or deed of trust, as to third persons without actual
notice thereof, shall be valid as to all such indebtedness and
future advances form the time said mortgage or deed of trust is
filed for record in the office of the recorder of deeds or the
registrar of titles of the county where the real property
described therein is located. The total amount of indebtedness
that may be so secured may increase or decrease from time to
time, but the total unpaid balance so secured at any one time
shall not exceed a maximum principal amount which must be
specified in such mortgage or deed of trust, plus interest
thereon, and any disbursements made for the payment of taxes,
special assessments, or insurance on said real property, with
interest on such disbursements.
Any such mortgage or deed of trust shall be valid and have
priority over all subsequent liens and encumbrances, including
statutory liens, except taxes and assessments levied on said
real property.
(5) Compliance with federal or Illinois preemptive laws or
regulations governing loans made by a credit union chartered
under this Act shall constitute compliance with this Act.
(6) Credit unions may make residential real estate mortgage
loans on terms and conditions established by the United States
Department of Agriculture through its Rural Development
Housing and Community Facilities Program. The portion of any
loan in excess of the appraised value of the real estate shall
be allocable only to the guarantee fee required under the
program.
(7) For a renewal, refinancing, or restructuring of an
existing loan that is secured by an interest or equity in real
estate, a new appraisal of the collateral shall not be required
when the transaction involves an existing extension of credit
at the credit union, no new moneys are advanced other than
funds necessary to cover reasonable closing costs, and there
has been no obvious or material change in market conditions or
physical aspects of the real estate that threatens the adequacy
of the credit union's real estate collateral protection after
the transaction.
(Source: P.A. 96-141, eff. 8-7-09; 97-133, eff. 1-1-12.)
(205 ILCS 305/57.1 new)
Sec. 57.1. Services to other credit unions.
(a) A credit union may act as a representative of and enter
into an agreement with credit unions or other organizations for
the purpose of:
(1) sharing, utilizing, renting, leasing, purchasing,
selling, and joint ownership of fixed assets or engaging in
activities and services that relate to the daily operations
of credit unions; and
(2) providing correspondent services to other credit
unions that the service provider credit union is authorized
to perform for its own members or as part of its
operations, including, but not limited to, loan
processing, loan servicing, member check cashing services,
disbursing share withdrawals and loan proceeds, cashing
and selling money orders, ACH and wire transfer services,
coin and currency services, performing internal audits,
and automated teller machine deposit services.