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| Public Act 097-0855
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| SB3217 Enrolled | LRB097 18462 PJG 63692 b |
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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 Sections 15 and 20 and adding Section 64.5 as follows:
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(205 ILCS 305/15) (from Ch. 17, par. 4416)
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Sec. 15. Membership defined.
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(1) The membership of a credit union shall
be limited to |
and consist of the subscribers to the articles of incorporation
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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
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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 |
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more shares
and paying the initial installment thereon, and by |
complying with such other
requirements as the articles of |
incorporation or bylaws specify.
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(2) Any member may withdraw from a credit union at any time |
upon giving
notice of withdrawal as required by the bylaws.
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(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.
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(4) A member who has caused a loss to the credit union,
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failed
to maintain one or more shares at the credit union, or |
violated board policy
applicable to members may be expelled by
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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
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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 |
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addition, new members shall be provided written notice of the
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policy prior to or upon applying for membership.
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(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
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from any obligation they owe to the credit union.
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(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
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put to a vote of the membership.
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(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 |
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shall be automatically expelled from the credit union and |
treated as an expelled member under subsection (5) of this |
Section 15.
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(Source: P.A. 97-133, eff. 1-1-12.)
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(205 ILCS 305/20) (from Ch. 17, par. 4421)
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Sec. 20. Election or appointment of officials.
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(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
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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
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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 |
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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
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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.
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(1.10) Upon amendment of a credit union's bylaws approved |
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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.
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(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.
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(3) The board of directors may appoint, from among the
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members of the
credit union, a credit committee consisting of |
an odd number, not less than
3 for such terms as the bylaws |
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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.
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(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
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to the board of directors at the next regular meeting for
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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.
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(Source: P.A. 97-133, eff. 1-1-12.)
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(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 |
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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 |
