Public Act 095-0052
 		





HB0352 Enrolled
LRB095 05308 MJR 25386 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 Section 20 as follows:
 



    (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 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
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

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 willingly 
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 or by 
proxy, for as many persons as there are Directors to be 
elected.

    (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.

    (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.

(Source: P.A. 91-929, eff. 12-15-00; 92-608, eff. 7-1-02.)