SB 3687 — CREDIT UNIONS-EXAMINATION FEES

SB3687 EngrossedEnrolled LRB103 38108 RTM 68240 b AN ACT concerning regulation.

(c) The par value of the shares of the credit union, SB3687 EngrossedEnrolled - 2 - LRB103 38108 RTM 68240 b which must be at least $1;

If they conform to the law, and such rules and regulations as the Secretary and the Director may prescribe, if the Secretary determines that a common bond exists, and that it is economically advisable to SB3687 EngrossedEnrolled - 3 - LRB103 38108 RTM 68240 b organize the credit union, he or she shall within 60 days issue a certificate of approval attached to the articles of incorporation and return a copy of the bylaws and the articles of incorporation to the applicants or their representative, which shall be preserved in the permanent files of the credit union.

The Director shall SB3687 EngrossedEnrolled - 4 - LRB103 38108 RTM 68240 b 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.

(3) To direct and supervise all the administrative and SB3687 EngrossedEnrolled - 5 - LRB103 38108 RTM 68240 b 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.

(5) To suspend from office and to prohibit from further participation in any manner in the conduct of the affairs of any credit union any director, officer, or committee member who has committed any violation of a law, rule, or 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 SB3687 EngrossedEnrolled - 6 - LRB103 38108 RTM 68240 b 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.

(i) directly resulted in a substantial and SB3687 EngrossedEnrolled - 7 - LRB103 38108 RTM 68240 b material financial loss or created a reasonable probability that a substantial and material financial loss will directly result;

and SB3687 EngrossedEnrolled - 8 - LRB103 38108 RTM 68240 b (ii) specific remedial action to be taken within a specific and reasonable time frame to avoid imposition of the penalty;

and (F) an order assessing a civil penalty under this SB3687 EngrossedEnrolled - 9 - LRB103 38108 RTM 68240 b item (6) shall take effect upon service of the order, unless the credit union makes a written request for a hearing under 38 Ill.

(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 SB3687 EngrossedEnrolled - 10 - LRB103 38108 RTM 68240 b for such persons.

(2) prohibit, penalize, or otherwise discourage a credit union from providing financial services to a cannabis-related legitimate business solely because SB3687 EngrossedEnrolled - 11 - LRB103 38108 RTM 68240 b the entity provides or has provided financial services to a cannabis-related legitimate business;

SB3687 EngrossedEnrolled - 12 - LRB103 38108 RTM 68240 b (Source:

TOTAL ASSETS REGULATORY FEE $25,000 or less ................$100 Over $25,000 and not over $100,000 ......................$100 plus $4 per $1,000 of assets in excess of $25,000 Over $100,000 and not over $200,000 ......................$400 plus $3 per $1,000 of assets in excess of $100,000 Over $200,000 and not over $500,000 ......................$700 plus $2 per $1,000 of assets in excess of SB3687 EngrossedEnrolled - 13 - LRB103 38108 RTM 68240 b $200,000 Over $500,000 and not over $1,000,000 ....................$1,300 plus $1.40 per $1,000 of assets in excess of $500,000 Over $1,000,000 and not over $5,000,000................$2,000 plus $0.50 per $1,000 of assets in excess of $1,000,000 Over $5,000,000 and not over $30,000,000 ..............$4,540 plus $0.397 per $1,000 of assets in excess of $5,000,000 Over $30,000,000 and not over $100,000,000 ..................$14,471 plus $0.34 per $1,000 of assets in excess of $30,000,000 Over $100,000,000 and not over $500,000,000..............$38,306 plus $0.17 per $1,000 of assets in excess of $100,000,000 Over $500,000,000..............$106,406 plus $0.056 per $1,000 of assets in excess of $500,000,000 (2) The Secretary shall review the regulatory fee schedule in subsection (1) and the projected earnings on those fees on SB3687 EngrossedEnrolled - 14 - LRB103 38108 RTM 68240 b an annual basis and adjust the fee schedule no more than 5% annually if necessary to defray the estimated administrative and operational expenses of the Credit Union Section of the Department as defined in subsection (5).

The total annual regulatory fee shall not be less than $100 or more than $210,000, provided that the regulatory fee cap of $210,000 shall be adjusted to incorporate the same percentage increase as the Secretary makes in the regulatory fee schedule SB3687 EngrossedEnrolled - 15 - LRB103 38108 RTM 68240 b from time to time under subsection (2).

(b) At the conclusion of each fiscal year, beginning in fiscal year 2025, the Department shall separately identify the direct administrative and operational expenses and allocable SB3687 EngrossedEnrolled - 16 - LRB103 38108 RTM 68240 b indirect costs of the Credit Union Section of the Department incidental to conducting the examinations required or authorized by the Illinois Community Reinvestment Act and implementing rules adopted by the Department.

Notwithstanding provisions in the State Finance Act, as now or hereafter amended, or any other law to the contrary, the total sum transferred from the Credit Union Fund to the General Revenue Fund pursuant to this provision shall SB3687 EngrossedEnrolled - 17 - LRB103 38108 RTM 68240 b not exceed during any fiscal year 10% of the revenues to be deposited into the Credit Union Fund during that fiscal year.

The amount SB3687 EngrossedEnrolled - 18 - LRB103 38108 RTM 68240 b credited to each credit union shall be in the same proportion as the regulatory fee paid by such credit union for the fiscal year in which the excess is produced bears to the aggregate amount of all fees collected by the Department under this Act for the same fiscal year.

acquire, lease (either as lessee or SB3687 EngrossedEnrolled - 19 - LRB103 38108 RTM 68240 b lessor), hold, pledge, mortgage, sell and dispose of personal property, either in whole or in part, or any interest therein, as may be necessary or incidental to its present or future operations and needs;

(9) Sell all or a part of its assets or purchase all or a part of the assets of another credit union and assume the liabilities of the selling credit union, subject to the SB3687 EngrossedEnrolled - 20 - LRB103 38108 RTM 68240 b prior approval of the Director, which approval shall not be required in the case of loan transactions otherwise authorized under applicable law;

The receipt of deposits from any state other than Illinois, or any agency SB3687 EngrossedEnrolled - 21 - LRB103 38108 RTM 68240 b or political subdivision thereof, shall not exceed the total limit of the greater of 50% of paid-in and unimpaired capital and surplus or $3,000,000 as described in 12 CFR 701.32 and shall otherwise comply with the requirements of 12 CFR 701.32;

provided, however, that no such credit union shall in any case SB3687 EngrossedEnrolled - 22 - LRB103 38108 RTM 68240 b assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal;

At their time of purchase, the book value of the investments in all charitable donation accounts, SB3687 EngrossedEnrolled - 23 - LRB103 38108 RTM 68240 b in the aggregate, shall not exceed 5% of the credit union's net worth.

SB3687 EngrossedEnrolled - 24 - LRB103 38108 RTM 68240 b (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) or Section 501(c)(19) of the Internal Revenue Code.

(a) Transfers from a donor-advised fund account shall be limited to foundations exempt from taxation under SB3687 EngrossedEnrolled - 25 - LRB103 38108 RTM 68240 b Section 501(c)(3) of the Internal Revenue Code.

(1) In securities, obligations or other instruments of or issued by or fully guaranteed as to principal and SB3687 EngrossedEnrolled - 26 - LRB103 38108 RTM 68240 b interest by the United States of America or any agency thereof or in any trust or trusts established for investing directly or collectively in the same;

provided that such credit unions have their members' accounts insured by the NCUA or other SB3687 EngrossedEnrolled - 27 - LRB103 38108 RTM 68240 b approved insurers, and that if the members' accounts are so insured, a credit union's investment may exceed the insured limit on accounts;

(i) the board of directors has established a written policy that addresses corporate bond SB3687 EngrossedEnrolled - 28 - LRB103 38108 RTM 68240 b investment procedures and how the credit union will manage credit risk, interest rate risk, liquidity risk, and concentration risk;

(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 SB3687 EngrossedEnrolled - 29 - LRB103 38108 RTM 68240 b of deposit, share certificates, or other classes of shares issued by the credit union to the financial institution;

(ii) the credit union and the financial technology SB3687 EngrossedEnrolled - 30 - LRB103 38108 RTM 68240 b company are operated in a manner that demonstrates to the public the separate corporate existence of the credit union and financial technology company;

(C) Before investing in a financial technology company, the credit union shall obtain a written legal opinion as to whether the financial technology company is established in a manner that will limit potential exposure SB3687 EngrossedEnrolled - 31 - LRB103 38108 RTM 68240 b of the credit union to no more than the loss of funds invested in the financial technology company and the legal opinion shall:

and SB3687 EngrossedEnrolled - 32 - LRB103 38108 RTM 68240 b (ii) the financial technology company and credit union agree to terminate their contractual relationship:

(F) Any financial technology company in which a credit union invests pursuant to this paragraph (15) that directly or indirectly originates, purchases, facilitates, SB3687 EngrossedEnrolled - 33 - LRB103 38108 RTM 68240 b brokers, or services loans to consumers in Illinois shall not charge an interest rate that exceeds the applicable maximum rate established by the Board of the National Credit Union Administration pursuant to 12 CFR 701.21(c)(7)(iii)-(iv).

A credit union with assets of at least $500 million and a CAMELS management component rating of 1 or 2 need not obtain prior approval from the Department before engaging in derivative transactions but shall notify the Secretary in writing or by electronic mail within 5 business days after entering SB3687 EngrossedEnrolled - 34 - LRB103 38108 RTM 68240 b into its first derivatives transaction.

or SB3687 EngrossedEnrolled - 35 - LRB103 38108 RTM 68240 b (iii) are of current or prospective benefit to consumers eligible for membership in credit unions;