Chapter 205 — FINANCIAL REGULATION

(205 ILCS 305/13) (from Ch. 17, par. 4414) Sec. 13. General powers. A credit union may: (1) Make contracts; sue and be sued; and adopt and use a common seal and alter the same; (2) Acquire, lease (either as lessee or lessor), hold, pledge, mortgage, sell and dispose of real prope…

(205 ILCS 305/13a) Sec. 13a. Non-English language transactions. A credit union may conduct transactions in a language other than English through an employee or agent acting as interpreter or through an interpreter provided by the customer. (Source: P.A. 92-578, eff. 6-26-02.)

(205 ILCS 305/14) (from Ch. 17, par. 4415) Sec. 14. Incidental powers. A credit union may exercise such incidental powers as are granted corporations organized under the laws of this State including, to the extent such powers are not inconsistent with powers and prohibitions cont…

(205 ILCS 305/15) (from Ch. 17, par. 4416) Sec. 15. Membership defined. (1) The membership of a credit union shall be limited to and consist of the subscribers to the articles of incorporation and such other persons within the common bond, as defined in this Act and as set forth …

(205 ILCS 305/16) (from Ch. 17, par. 4417) Sec. 16. Societies and associations. Societies, associations, clubs, partnerships, corporations, and limited liability companies in which one or more of the members, partners, or shareholders are individuals who are eligible for credit u…

(205 ILCS 305/16.1) Sec. 16.1. Service to the economically disadvantaged. (a) Persons who reside in investment areas as defined in the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702) and identified by the U.S. Department of the Treasury may b…

(205 ILCS 305/16.5) Sec. 16.5. Service to target markets. (a) As used in this Section: "Target market" means an investment area or a targeted population, or both, as defined in the Community Development Banking and Financial Institutions Act of 1994, 12 U.S.C. 4702, and regulatio…

(205 ILCS 305/17) (from Ch. 17, par. 4418) Sec. 17. Members who leave field. Nothing in this Act shall be construed to impair the charter of an existing credit union, prevent the merger of credit unions as otherwise provided for in this Act or prevent a credit union from retainin…

(205 ILCS 305/18) (from Ch. 17, par. 4419) Sec. 18. Liability of members. The members of the credit union shall not be personally or individually liable for the payment of its debts. A reduction in shares as provided for in Section 45 of this Act shall not be considered as imposi…

(205 ILCS 305/19) (from Ch. 17, par. 4420) Sec. 19. Meeting of members. (1)(a) The annual meeting shall be held each year during the months of January, February or March or such other month as may be approved by the Department. The meeting shall be held at the time, place and in …

(205 ILCS 305/2) (from Ch. 17, par. 4403) Sec. 2. Organization procedure. (1) Any 9 or more persons of legal age, the majority of whom shall be residents of the State of Illinois, who have a common bond referred to in Section 1.1 may organize a credit union or a central credit un…

(205 ILCS 305/20) (from Ch. 17, par. 4421) 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 offic…

(205 ILCS 305/20.5) Sec. 20.5. Appointment of associate directors. (a) The board of directors of a credit union may, in its discretion, appoint one or more associate directors to serve in an advisory capacity. The board shall prescribe the duties of an associate director and the …

(205 ILCS 305/21) (from Ch. 17, par. 4422) Sec. 21. Record of board and committee members. Within 30 days after election or appointment, the names and addresses of the members of the board of directors, committees and all officers of the credit union shall be filed with the Depar…

(205 ILCS 305/22) (from Ch. 17, par. 4423) Sec. 22. Vacancies. (a) The board of directors shall, by appointment from among the credit union members, fill any vacancies occurring on the board for the remainder of the director's unexpired term or until a successor is elected and qu…

(205 ILCS 305/23) (from Ch. 17, par. 4424) Sec. 23. Compensation of officials. (1) Directors and committee members may receive reasonable compensation for their service as such, the amount of which shall be set by the board of directors, in accordance with written policies and pr…

(205 ILCS 305/24) (from Ch. 17, par. 4425) Sec. 24. Conflicts of interest. No director, committee member, officer, agent or employee of the credit union shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affectin…

(205 ILCS 305/25) (from Ch. 17, par. 4426) Sec. 25. Indemnification. A credit union may indemnify any and all of its directors, committee members, officers or employees or former directors, committee members, officers or employees against expenses actually and necessarily incurre…

(205 ILCS 305/26) (from Ch. 17, par. 4427) Sec. 26. Executive officers. (1) At their first meeting, the board of directors shall elect from among their own number a chairman of the board and one or more vice chairmen, a secretary and a treasurer. The directors shall appoint a chi…

(205 ILCS 305/27) (from Ch. 17, par. 4428) Sec. 27. Authority of directors. (1) The board of directors shall be charged with and have control over the general management of the operations, funds and records of the credit union. (2) In discharging the duties of their respective po…

(205 ILCS 305/28) (from Ch. 17, par. 4429) Sec. 28. Executive committee. From the persons elected to the board, the board may appoint an executive committee of not less than 3 directors who may be authorized to act for the board in all respects, subject to such conditions and lim…

(205 ILCS 305/29) (from Ch. 17, par. 4430) Sec. 29. Meetings of directors. (1) The board of directors and the executive committee shall meet as often as necessary, but one body must meet at least monthly and the other at least quarterly, as prescribed in the bylaws. Unless a grea…

(205 ILCS 305/3) (from Ch. 17, par. 4404) Sec. 3. Form of articles and bylaws. The Secretary shall provide, at no charge, a form of articles of incorporation and a form of bylaws which may be used by credit union incorporators for their guidance. (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 …

(205 ILCS 305/31) (from Ch. 17, par. 4432) Sec. 31. Supervision of loans. The credit committee shall have the general supervision of all loans and lines of credit to members. If no credit committee has been appointed, the credit manager shall have the general supervision of all l…

(205 ILCS 305/32) (from Ch. 17, par. 4433) Sec. 32. Meetings of credit committee. If a credit committee has been appointed by the board, the provisions of this Section shall apply. The credit committee shall meet as often as the operations of the credit union require and not less…

(205 ILCS 305/33) (from Ch. 17, par. 4434) Sec. 33. Credit manager. (1) The credit committee, board of directors, or chief management official may or, if no credit committee has been appointed, the board of directors or chief management official shall appoint a credit manager who…

(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 repo…

(205 ILCS 305/34.1) Sec. 34.1. Compliance review. (a) As used in this Section: "Affiliate" means an organization established to serve the needs of credit unions, the business of which relates to the daily operations of credit unions. "Compliance review committee" means: (1) one o…

(205 ILCS 305/35) (from Ch. 17, par. 4436) Sec. 35. Suspension and removal of officials. (1) The supervisory committee, by a unanimous vote of the whole committee, may suspend any member of the credit committee or the credit manager if no credit committee has been appointed. The …

(205 ILCS 305/36) (from Ch. 17, par. 4437) Sec. 36. Calling of special meetings. The supervisory committee, by a majority vote, may, after written notice of its intended action is first given to the board of directors, and the Department, call a special meeting of the members to …

(205 ILCS 305/37) (from Ch. 17, par. 4438) Sec. 37. Shares and classes of shares. (1) The capital of a credit union shall consist of the payments made by members for shares of the credit union. (2) Shares may be subscribed to, paid for and transferred in such manner as the bylaws…

(205 ILCS 305/38) (from Ch. 17, par. 4439) Sec. 38. Dividends. The board of directors may declare a dividend to be paid periodically from net earnings or undivided earnings and distributed ratably among holders of share accounts of the same class as provided in the bylaws. Divide…

(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 c…

(205 ILCS 305/4) (from Ch. 17, par. 4405) Sec. 4. Amendments to articles of incorporation and bylaws. Amendments to the articles of incorporation or bylaws may be made by the members at any regular or special meeting, if the proposed amendment is set forth in the call for the mee…

(205 ILCS 305/40) (from Ch. 17, par. 4441) Sec. 40. Shares to minors. Shares may be issued in the name of a minor or in the name of a custodian under the Illinois Uniform Transfers to Minors Act, as amended. If shares are issued in the name of a minor, redemption of any part or a…

(205 ILCS 305/41) (from Ch. 17, par. 4442) Sec. 41. Joint accounts. Shares shall be issued in the name of the owner and may be issued in the name of 2 or more persons in joint tenancy, or in survivorship, in which case payment may be made, in whole or in part, to any of the named…

(205 ILCS 305/42) (from Ch. 17, par. 4443) Sec. 42. Shares in trust. (1) Shares may be issued in trust to a member as trustee or to an individual or corporate trustee. If a corporate trustee is a bank or trust company, shares may be issued to the corporate trustee only if such ba…

(205 ILCS 305/42.5) Sec. 42.5. Marketing of services. For purposes of promoting its services to persons eligible for membership, a credit union may sell to persons within its field of membership negotiable checks, including travelers checks, money orders, and similar money transf…

(205 ILCS 305/42.7) Sec. 42.7. Savings promotion raffle. (a) As used in this Section, "savings promotion raffle" means a raffle conducted by a credit union where the sole consideration required for a chance of winning designated prizes is the deposit of at least a specified amoun…

(205 ILCS 305/43) (from Ch. 17, par. 4444) Sec. 43. Liens. Without being required to take any action to perfect the same, a credit union shall have a lien on the shares, accumulated dividends or interest of a member in his individual, joint or trust account, for any sum due the c…

(205 ILCS 305/43.1) Sec. 43.1. Enforcement of child support. (a) Any credit union governed by this Act shall encumber or surrender accounts or assets held by the credit union on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or …

(205 ILCS 305/44) (from Ch. 17, par. 4445) Sec. 44. Share accounts; garnishment. A credit union may be subject to garnishment proceedings concerning the share accounts of its members. (Source: P.A. 97-133, eff. 1-1-12.)

(205 ILCS 305/44.1) Sec. 44.1. Unclaimed property; dormancy or escheat fee. A credit union may deduct a dormancy charge or an escheat fee from property required to be paid or delivered to the administrator under the Revised Uniform Unclaimed Property Act, provided the amount of t…

(205 ILCS 305/45) (from Ch. 17, par. 4446) Sec. 45. Reduction in shares. Whenever the losses of any credit union, resulting from a depreciation in value of its loans or investments or otherwise, exceed its undivided earnings and reserve fund so that the estimated value of its ass…

(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. Notwith…

(205 ILCS 305/46.1) (from Ch. 17, par. 4447.1) Sec. 46.1. (Repealed). (Source: P.A. 98-749, eff. 7-16-14. Repealed by P.A. 99-331, eff. 1-1-16.)

(205 ILCS 305/46.2) Sec. 46.2. (Repealed). (Source: P.A. 92-577, eff. 6-26-02. Repealed by P.A. 99-331, eff. 1-1-16.)

(205 ILCS 305/47) (from Ch. 17, par. 4448) Sec. 47. Loan applications. Every application for a loan shall be made in the manner prescribed by the credit committee, credit manager, or loan officer. The application shall state the purpose for which the loan is desired, and the secu…

(205 ILCS 305/48) (from Ch. 17, par. 4449) Sec. 48. Loan limit. Within any limitations set forth in a policy adopted by the board of directors, a credit union may place a limit upon the aggregate amount to be loaned to or cosigned for by any one member provided that no loan shall…