HB 4462

Abstract

Amends the Illinois Credit Union Act. Sets forth provisions concerning credit unions that serve target markets. In provisions concerning election or appointment of officials, provides that the board of directors may appoint, from among the members of the credit union, a nominating committee of 3 or more persons, and that the nominating committee may recruit, evaluate, and nominate eligible candidates for each position to be filled in the election of directors or to be filled by appointment of the board of directors for the remainder of the unexpired term of a director. Sets forth provisions concerning the nominating committee. In provisions concerning meetings of directors, provides that upon approval by the Secretary of Financial and Professional Regulation of an amendment to the bylaws of the credit union, the board of directors may hold meetings on a quarterly basis. In provisions concerning duties of the supervisory committee, sets forth provisions concerning accounting principles for specified credit unions. In provisions concerning special purpose share accounts and charitable donation accounts, provides that a credit union may establish one or more donor-advised fund accounts. Sets forth provisions concerning transfers from a donor-advised fund account, distributions by a foundation receiving donor-advised funds from a credit union, and transfers by a credit union from its donor-advised fund account to a foundation. In provisions concerning shares in trust, provides that shares may be issued in the name of an individual or corporate representative under the Illinois Probate Act of 1975 for or in respect of a nonmember of a credit union if the representative is an individual who is a member of the credit union. In provisions concerning investment of funds, provides that funds not used in loans to members may be invested in shares, stocks, or units of financial technology companies in a total amount not exceeding 5% of the unimpaired capital and surplus of the credit union, so long as the investment complies with specified documentation and separate corporate existence requirements. Changes references from "secure electronic record" to "electronic record". Defines terms. Makes other changes. House Floor Amendment No. 2 Deletes reference to: 205 ILCS 305/29 In provisions concerning service to target markets, provides that the Secretary of Financial and Professional Regulation may, in his or her sole discretion, approve the written business plan, disapprove the business plan, or require the credit union to modify the business plan to seek approval of the target market as an occupational, community, or associational common bond or common bonds. Provides that the credit union must be advised in writing of the findings of the Secretary in support of the determination and the specific and reasonable time period in which to file a modified plan, and that if the Secretary approves the business plan the credit union shall be required to add the target market to its field of membership. In provisions concerning investment of funds, provides that a credit union may invest in shares, stocks, or member units of financial technology companies in a total amount not exceeding 2.5% of the net worth of the credit union so long as specified conditions are met. Provides that the 2.5% investment limit is increased to 5% of the net worth of the credit union if it has received a management rating of 1 under the CAMELS supervisory rating system at the time a specific investment is made and at all times during the term of the investment. Provides that the maximum interest rate that may be charged by a financial technology company applies to all consumer loans and consumer credit products. Removes provisions concerning meetings of directors. Makes other changes. Provides that the Act is effective immediately, except that specified provisions take effect January 1, 2023.