Bill Text: IL SB3787 | 2021-2022 | 102nd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Illinois Credit Union Act. In provisions concerning reports and examinations, provides that one or more credit unions may be examined less frequently than biennially upon the Secretary of Financial and Professional Regulation's written statement. Provides that the Secretary's written statement shall include a finding that good cause exists; a finding that there is no reasonable expectation that harm to members will result; and, to the extent reasonable under the circumstances, identification of the affected credit unions and the expected frequency of examination. Provides that a written statement made pursuant to the provisions may be superseded by a subsequent statement. Provides that the Secretary is not required to conduct examinations that the Secretary would have been required to conduct but for a written statement. Provides that the written statement shall not be confidential supervisory information except to the extent it names or permits the identification of specific credit unions. Provides that the Secretary may accept an examination from the National Credit Union Administration or a private insurer instead of an examination conducted by the Department of Financial and Professional Regulation or by a public accountant registered by the Department. Provides that upon amendment of a credit union's bylaws (rather than 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 in person, by proxy, or by secure electronic record if approved by the board of directors, for as many persons as there are directors to be elected. Changes a reference from "categories" to "investment grades". Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2022-05-13 - Public Act . . . . . . . . . 102-0858 [SB3787 Detail]

Download: Illinois-2021-SB3787-Introduced.html

---

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB3787 Introduced 1/21/2022, by Sen. John Connor SYNOPSIS AS INTRODUCED:
205 ILCS 305/8 from Ch. 17, par. 4409
205 ILCS 305/9 from Ch. 17, par. 4410
205 ILCS 305/20 from Ch. 17, par. 4421
205 ILCS 305/59 from Ch. 17, par. 4460
Amends the Illinois Credit Union Act. In provisions concerning reports and examinations, provides that one or more credit unions may be examined less frequently than biennially upon the Secretary of Financial and Professional Regulation's written statement. Provides that the Secretary's written statement shall include a finding that good cause exists; a finding that there is no reasonable expectation that harm to members will result; and, to the extent reasonable under the circumstances, identification of the affected credit unions and the expected frequency of examination. Provides that a written statement made pursuant to the provisions may be superseded by a subsequent statement. Provides that the Secretary is not required to conduct examinations that the Secretary would have been required to conduct but for a written statement. Provides that the written statement shall not be confidential supervisory information except to the extent it names or permits the identification of specific credit unions. Provides that the Secretary may accept an examination from the National Credit Union Administration or a private insurer instead of an examination conducted by the Department of Financial and Professional Regulation or by a public accountant registered by the Department. Provides that upon amendment of a credit union's bylaws (rather than 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 in person, by proxy, or by secure electronic record if approved by the board of directors, for as many persons as there are directors to be elected. Changes a reference from "categories" to "investment grades". Makes other changes. Effective immediately.
LRB102 21295 BMS 30406 b
A BILL FOR
SB3787 LRB102 21295 BMS 30406 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 8, 9, 20 and 59 as follows:
(205 ILCS 305/8) (from Ch. 17, par. 4409)
Sec. 8. Secretary's powers and duties. Credit unions are
regulated by the Department. The Secretary in executing the
powers and discharging the duties vested by law in the
Department has the following powers and duties:
(1) To exercise the rights, powers and duties set
forth in this Act or any related Act. The Director shall
oversee the functions of the Division and report to the
Secretary, with respect to the Director's exercise of any
of the rights, powers, and duties vested by law in the
Secretary under this Act. All references in this Act to
the Secretary shall be deemed to include the Director, as
a person authorized by the Secretary or this Act to assume
responsibility for the oversight of the functions of the
Department relating to the regulatory supervision of
credit unions under this Act.
(2) To prescribe rules and regulations for the
administration of this Act. The provisions of the Illinois

SB3787 - 2 - LRB102 21295 BMS 30406 b
Administrative Procedure Act are hereby expressly adopted
and incorporated herein as though a part of this Act, and
shall apply to all administrative rules and procedures of
the Department under this Act.
(3) To direct and supervise all the administrative and
technical activities of the Department including the
employment of a Credit Union Supervisor who shall have
knowledge in the theory and practice of, or experience in,
the operations or supervision of financial institutions,
preferably credit unions, and such other persons as are
necessary to carry out his functions. The Secretary shall
ensure that all examiners appointed or assigned to examine
the affairs of State-chartered credit unions possess the
necessary training and continuing education to effectively
execute their jobs.
(4) To issue cease and desist orders when in the
opinion of the Secretary, a credit union is engaged or has
engaged, or the Secretary has reasonable cause to believe
the credit union is about to engage, in an unsafe or
unsound practice, or is violating or has violated or the
Secretary has reasonable cause to believe is about to
violate a law, rule or regulation or any condition imposed
in writing by the Department.
(5) To suspend from office and to prohibit from
further participation in any manner in the conduct of the
affairs of any his credit union any director, officer or

SB3787 - 3 - LRB102 21295 BMS 30406 b
committee member who has committed any violation of a law,
rule, regulation or of a cease and desist order or who has
engaged or participated in any unsafe or unsound practice
in connection with the credit union or who has committed
or engaged in any act, omission, or practice which
constitutes a breach of his fiduciary duty as such
director, officer or committee member, when the Secretary
has determined that such action or actions have resulted
or will result in substantial financial loss or other
damage that seriously prejudices the interests of the
members.
(6) To assess a civil penalty against a credit union
provided that:
(A) the Secretary reasonably determines, based on
objective facts and an accurate assessment of
applicable legal standards, that the credit union has:
(i) committed a violation of this Act, any
rule adopted in accordance with this Act, or any
order of the Secretary issued pursuant to his or
her authority under this Act; or
(ii) engaged or participated in any unsafe or
unsound practice;
(B) before a civil penalty is assessed under this
item (6), the Secretary must make the further
reasonable determination, based on objective facts and
an accurate assessment of applicable legal standards,

SB3787 - 4 - LRB102 21295 BMS 30406 b
that the credit union's action constituting a
violation under subparagraph (i) of paragraph (A) of
item (6) or an unsafe and unsound practice under
subparagraph (ii) of paragraph (A) of item (6):
(i) directly resulted in a substantial and
material financial loss or created a reasonable
probability that a substantial and material
financial loss will directly result; or
(ii) constituted willful misconduct or a
material breach of fiduciary duty of any director,
officer, or committee member of the credit union;
Material financial loss, as referenced in this
paragraph (B), shall be assessed in light of
surrounding circumstances and the relative size and
nature of the financial loss or probable financial
loss. Certain benchmarks shall be used in determining
whether financial loss is material, such as a
percentage of total assets or total gross income for
the immediately preceding 12-month period. Absent
compelling and extraordinary circumstances, no civil
penalty shall be assessed, unless the financial loss
or probable financial loss is equal to or greater than
either 1% of the credit union's total assets for the
immediately preceding 12-month period, or 1% of the
credit union's total gross income for the immediately
preceding 12-month period, whichever is less;

SB3787 - 5 - LRB102 21295 BMS 30406 b
(C) before a civil penalty is assessed under this
item (6), the credit union must be expressly advised
in writing of the:
(i) specific violation that could subject it
to a penalty under this item (6); and
(ii) specific remedial action to be taken
within a specific and reasonable time frame to
avoid imposition of the penalty;
(D) Civil penalties assessed under this item (6)
shall be remedial, not punitive, and reasonably
tailored to ensure future compliance by the credit
union with the provisions of this Act and any rules
adopted pursuant to this Act;
(E) a credit union's failure to take timely
remedial action with respect to the specific violation
may result in the issuance of an order assessing a
civil penalty up to the following maximum amount,
based upon the total assets of the credit union:
(i) Credit unions with assets of less than $10
million................................................$1,000
(ii) Credit unions with assets of at least $10
million and less than $50 million......................$2,500
(iii) Credit unions with assets of at least
$50 million and less than $100 million.................$5,000
(iv) Credit unions with assets of at least
$100 million and less than $500 million...............$10,000

SB3787 - 6 - LRB102 21295 BMS 30406 b
(v) Credit unions with assets of at least $500
million and less than $1 billion......................$25,000
(vi) Credit unions with assets of $1 billion
and greater.....................................$50,000; and
(F) an order assessing a civil penalty under this
item (6) shall take effect upon service of the order,
unless the credit union makes a written request for a
hearing under 38 IL. Adm. Code 190.20 of the
Department's rules for credit unions within 90 days
after issuance of the order; in that event, the order
shall be stayed until a final administrative order is
entered.
This item (6) shall not apply to violations separately
addressed in rules as authorized under item (7) of this
Section.
(7) Except for the fees established in this Act, to
prescribe, by rule and regulation, fees and penalties for
preparing, approving, and filing reports and other
documents; furnishing transcripts; holding hearings;
investigating applications for permission to organize,
merge, or convert; failure to maintain accurate books and
records to enable the Department to conduct an
examination; and taking supervisory actions.
(8) To destroy, in his discretion, any or all books
and records of any credit union in his possession or under
his control after the expiration of three years from the

SB3787 - 7 - LRB102 21295 BMS 30406 b
date of cancellation of the charter of such credit unions.
(9) To make investigations and to conduct research and
studies and to publish some of the problems of persons in
obtaining credit at reasonable rates of interest and of
the methods and benefits of cooperative saving and lending
for such persons.
(10) To authorize, foster or establish experimental,
developmental, demonstration or pilot projects by public
or private organizations including credit unions which:
(a) promote more effective operation of credit
unions so as to provide members an opportunity to use
and control their own money to improve their economic
and social conditions; or
(b) are in the best interests of credit unions,
their members and the people of the State of Illinois.
(11) To cooperate in studies, training or other
administrative activities with, but not limited to, the
NCUA, other state credit union regulatory agencies and
industry trade associations in order to promote more
effective and efficient supervision of Illinois chartered
credit unions.
(12) Notwithstanding the provisions of this Section,
the Secretary shall not:
(1) issue an order against a credit union
organized under this Act for unsafe or unsound banking
practices solely because the entity provides or has

SB3787 - 8 - LRB102 21295 BMS 30406 b
provided financial services to a cannabis-related
legitimate business;
(2) prohibit, penalize, or otherwise discourage a
credit union from providing financial services to a
cannabis-related legitimate business solely because
the entity provides or has provided financial services
to a cannabis-related legitimate business;
(3) recommend, incentivize, or encourage a credit
union not to offer financial services to an account
holder or to downgrade or cancel the financial
services offered to an account holder solely because:
(A) the account holder is a manufacturer or
producer, or is the owner, operator, or employee
of a cannabis-related legitimate business;
(B) the account holder later becomes an owner
or operator of a cannabis-related legitimate
business; or
(C) the credit union was not aware that the
account holder is the owner or operator of a
cannabis-related legitimate business; and
(4) take any adverse or corrective supervisory
action on a loan made to an owner or operator of:
(A) a cannabis-related legitimate business
solely because the owner or operator owns or
operates a cannabis-related legitimate business;
or

SB3787 - 9 - LRB102 21295 BMS 30406 b
(B) real estate or equipment that is leased to
a cannabis-related legitimate business solely
because the owner or operator of the real estate
or equipment leased the equipment or real estate
to a cannabis-related legitimate business.
(Source: P.A. 101-27, eff. 6-25-19.)
(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

SB3787 - 10 - LRB102 21295 BMS 30406 b
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.

SB3787 - 11 - LRB102 21295 BMS 30406 b
(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, interpretive 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.
(5) Notwithstanding the biennial examination requirement
of subsection (3), one or more credit unions may be examined

SB3787 - 12 - LRB102 21295 BMS 30406 b
less frequently upon the Secretary's written statement. The
Secretary's statement shall include the following:
(a) a finding that good cause exists;
(b) a finding that there is no reasonable expectation
that harm to members will result; and
(c) to the extent reasonable under the circumstances,
identification of the affected credit unions and the
expected frequency of examination.
A written statement made pursuant to this subsection may
be superseded by a subsequent statement made pursuant to this
subsection. The Secretary is not required to conduct
examinations that the Secretary would have been required to
conduct but for a written statement made pursuant to this
subsection. Nothing in this subsection shall be construed to
limit the Secretary's authority under this Act. The written
statement shall not be confidential supervisory information
except to the extent it names or permits the identification of
specific credit unions.
(6) The Secretary may accept an examination from the
National Credit Union Administration or a private insurer
instead of an examination conducted by the Department or by a
public accountant registered by the Department pursuant to
subsection (3).
(Source: P.A. 102-558, eff. 8-20-21.)
(205 ILCS 305/20) (from Ch. 17, par. 4421)

SB3787 - 13 - LRB102 21295 BMS 30406 b
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, by proxy, or by secure electronic record if
approved by the board of directors, the number of shares owned
by him, or in the case of a member other than a natural person,

SB3787 - 14 - LRB102 21295 BMS 30406 b
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, by
proxy, or by secure electronic record if approved by the board

SB3787 - 15 - LRB102 21295 BMS 30406 b
of directors, 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.

SB3787 - 16 - LRB102 21295 BMS 30406 b
(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.
(5) As used in this Section, "electronic" and "electronic
record" have the meanings ascribed to those terms in the
Uniform Electronic Transactions Act. As used in this Section,
"secured electronic record" means an electronic record that
meets the criteria set forth in the Uniform Electronic
Transactions Act.
(Source: P.A. 102-38, eff. 6-25-21; revised 8-3-21.)
(205 ILCS 305/59) (from Ch. 17, par. 4460)
Sec. 59. Investment of funds.
(a) Funds not used in loans to members may be invested,
pursuant to subsection (7) of Section 30 of this Act, and
subject to Departmental rules and regulations:
(1) In securities, obligations or other instruments of
or issued by or fully guaranteed as to principal and
interest by the United States of America or any agency
thereof or in any trust or trusts established for

SB3787 - 17 - LRB102 21295 BMS 30406 b
investing directly or collectively in the same;
(2) In obligations of any state of the United States,
the District of Columbia, the Commonwealth of Puerto Rico,
and the several territories organized by Congress, or any
political subdivision thereof; however, a credit union may
not invest more than 10% of its unimpaired capital and
surplus in the obligations of one issuer, exclusive of
general obligations of the issuer, and investments in
municipal securities must be limited to securities rated
in one of the 4 highest rating investment grades
categories by a nationally recognized statistical rating
organization;
(3) In certificates of deposit or passbook type
accounts issued by a state or national bank, mutual
savings bank or savings and loan association; provided
that such institutions have their accounts insured by the
Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation; but provided,
further, that a credit union's investment in an account in
any one institution may exceed the insured limit on
accounts;
(4) In shares, classes of shares or share certificates
of other credit unions, including, but not limited to
corporate credit unions; provided that such credit unions
have their members' accounts insured by the NCUA or other
approved insurers, and that if the members' accounts are

SB3787 - 18 - LRB102 21295 BMS 30406 b
so insured, a credit union's investment may exceed the
insured limit on accounts;
(5) In shares of a cooperative society organized under
the laws of this State or the laws of the United States in
the total amount not exceeding 10% of the unimpaired
capital and surplus of the credit union; provided that
such investment shall first be approved by the Department;
(6) In obligations of the State of Israel, or
obligations fully guaranteed by the State of Israel as to
payment of principal and interest;
(7) In shares, stocks or obligations of other
financial institutions in the total amount not exceeding
5% of the unimpaired capital and surplus of the credit
union;
(8) In federal funds and bankers' acceptances;
(9) In shares or stocks of Credit Union Service
Organizations in the total amount not exceeding the
greater of 6% of the unimpaired capital and surplus of the
credit union or the amount authorized for federal credit
unions;
(10) In corporate bonds identified as investment grade
by at least one nationally recognized statistical rating
organization, provided that:
(i) the board of directors has established a
written policy that addresses corporate bond
investment procedures and how the credit union will

SB3787 - 19 - LRB102 21295 BMS 30406 b
manage credit risk, interest rate risk, liquidity
risk, and concentration risk; and
(ii) the credit union has documented in its
records that a credit analysis of a particular
investment and the issuing entity was conducted by the
credit union, a third party on behalf of the credit
union qualified by education or experience to assess
the risk characteristics of corporate bonds, or a
nationally recognized statistical rating agency before
purchasing the investment and the analysis is updated
at least annually for as long as it holds the
investment;
(11) To aid in the credit union's management of its
assets, liabilities, and liquidity in the purchase of an
investment interest in a pool of loans, in whole or in part
and without regard to the membership of the borrowers,
from other depository institutions and financial type
institutions, including mortgage banks, finance companies,
insurance companies, and other loan sellers, subject to
such safety and soundness standards, limitations, and
qualifications as the Department may establish by rule or
guidance from time to time;
(12) To aid in the credit union's management of its
assets, liabilities, and liquidity by receiving funds from
another financial institution as evidenced by certificates
of deposit, share certificates, or other classes of shares

SB3787 - 20 - LRB102 21295 BMS 30406 b
issued by the credit union to the financial institution;
(13) In the purchase and assumption of assets held by
other financial institutions, with approval of the
Secretary and subject to any safety and soundness
standards, limitations, and qualifications as the
Department may establish by rule or guidance from time to
time; and
(14) In the shares, stocks, or obligations of
community development financial institutions as defined in
regulations issued by the U.S. Department of the Treasury
and minority depository institutions as defined by the
National Credit Union Administration; however the
aggregate amount of all such investments shall not at any
time exceed 5% of the paid-in and unimpaired capital and
surplus of the credit union.
(b) As used in this Section:
"Political subdivision" includes, but is not limited to,
counties, townships, cities, villages, incorporated towns,
school districts, educational service regions, special road
districts, public water supply districts, fire protection
districts, drainage districts, levee districts, sewer
districts, housing authorities, park districts, and any
agency, corporation, or instrumentality of a state or its
political subdivisions, whether now or hereafter created and
whether herein specifically mentioned or not.
"Financial institution" includes any bank, savings bank,

SB3787 - 21 - LRB102 21295 BMS 30406 b
savings and loan association, or credit union established
under the laws of the United States, this State, or any other
state.
(c) A credit union investing to fund an employee benefit
plan obligation is not subject to the investment limitations
of this Act and this Section and may purchase an investment
that would otherwise be impermissible if the investment is
directly related to the credit union's obligation under the
employee benefit plan and the credit union holds the
investment only for so long as it has an actual or potential
obligation under the employee benefit plan.
(d) If a credit union acquires loans from another
financial institution or financial-type institution pursuant
to this Section, the credit union shall be authorized to
provide loan servicing and collection services in connection
with those loans.
(Source: P.A. 101-567, eff. 8-23-19; 102-496, eff. 8-20-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.