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| Public Act 096-0963 |
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AN ACT concerning financial regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Credit Union Act is amended by | ||||
changing Sections 19 and 34 as follows:
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(205 ILCS 305/19) (from Ch. 17, par. 4420)
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Sec. 19. Meeting of members.
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(1) 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
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time, place and in the manner set forth in the bylaws. Any | ||||
special
meetings of the members of the credit union shall be | ||||
held at the time, place
and in the manner set forth in the | ||||
bylaws. Unless otherwise set forth in
this Act, quorum | ||||
requirements for meetings of members shall be established
by a | ||||
credit union in its bylaws. Notice of all meetings must be | ||||
given by
the Secretary of the credit union at least 7 days | ||||
before the date of such
meeting, either by handing a written or | ||||
printed notice to each
member of the credit union, by mailing | ||||
the notice to the member at his address
as listed on the books | ||||
and records of the credit union, or by posting a
notice of the | ||||
meeting in three conspicuous places, including the office
of | ||||
the credit union.
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(2) On all questions and at all elections, except election | ||
of directors,
each member has one vote regardless of the number | ||
of his shares. There
shall be no voting by proxy except on the | ||
election of directors, proposals
for merger or voluntary | ||
dissolution. All voting on the election of directors
shall be | ||
by ballot, but when there is no contest, written ballots need | ||
not
be cast. The record date to be used for the purpose of | ||
determining which
members are entitled to notice of or to vote | ||
at any meeting of members,
may be fixed in advance by the | ||
directors on a date not more than 90 days
nor less than 10 days | ||
prior to the date of the meeting. If no record date
is fixed by | ||
the directors, the first day on which notice of the meeting
is | ||
given, mailed or posted is the record date.
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(3) Regardless of the number of shares owned by a society, | ||
association,
club, partnership, other credit union or | ||
corporation, having membership
in the credit union, it shall be | ||
entitled to only
one vote and it may be represented and have | ||
its vote cast by its
designated agent acting on its
behalf | ||
pursuant
to a resolution
adopted by the organization's board of | ||
directors or similar governing
authority;
provided that the | ||
credit union shall obtain a certified copy of such resolution
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before such vote may be cast. | ||
(4) A member may revoke a proxy by delivery to the credit | ||
union of a written statement to that effect, by execution of a | ||
subsequently dated proxy, or by attendance at a meeting and | ||
voting in person.
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(Source: P.A. 89-603, eff. 8-2-96.)
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(205 ILCS 305/34) (from Ch. 17, par. 4435)
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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
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records and reports are prepared promptly and accurately | ||
reflect operations
and results, that internal controls are | ||
established and effectively
maintained to safeguard the assets | ||
of the credit union, and that the
policies, procedures and | ||
practices established by the Board of Directors
and management | ||
of the credit union are being properly administered. The
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Supervisory Committee shall submit a report of that audit to | ||
the Board
of Directors and a summary of that report to the | ||
members at the next annual
meeting of the credit union. It | ||
shall make or cause to be made such
supplementary audits as it | ||
deems necessary or as are required by the
Director or by the | ||
Board of Directors, and submit reports of these
supplementary | ||
audits to the Director or Board of Directors as applicable.
If | ||
the Supervisory Committee has not engaged a public accountant | ||
registered
by the Department of Professional Regulation to make | ||
the internal audit,
the Supervisory Committee or other | ||
officials of the credit union shall not
indicate or in any | ||
manner imply that such audit has been performed by a
public | ||
accountant or that the audit represents the independent opinion | ||
of a
public accountant. The Committee must retain its tapes and | ||
working papers
of each internal audit for inspection by the | ||
Department. The report of this
audit must be made on a form | ||
approved by the Director. A copy of the report
must be promptly | ||
mailed to the Director.
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(2) The Supervisory Committee shall make or cause to be | ||
made at least
once each year a reasonable percentage | ||
verification of members' share and
loan accounts, consistent | ||
with rules promulgated by the Director.
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(3) The Supervisory Committee of a credit union with assets | ||
of
$5,000,000 or more shall engage a public accountant | ||
registered by the
Department of Professional Regulation to | ||
perform an annual external
independent audit of the credit | ||
union's financial statements in accordance
with generally | ||
accepted auditing standards. The Supervisory Committee of a
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credit union with assets of $3,000,000 or more, but less than | ||
$5,000,000,
shall engage a public accountant registered by the | ||
Department of
Professional Regulation to perform an external | ||
independent audit of the
credit union's financial statements in | ||
accordance with generally accepted
auditing standards at least | ||
once every 3 years. A copy of an external
independent audit | ||
shall be completed and mailed to the Director no later than 90 | ||
days after December 31 of each year; provided that a credit | ||
union or group of credit unions may obtain an extension of the | ||
due date upon application to and receipt of written approval | ||
from the Director upon completion. If the
annual internal audit | ||
of such a credit union is conducted by a public
accountant | ||
registered by the Department of Professional Regulation and the
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annual internal audit is done in conjunction with the credit | ||
union's annual
external audit, the requirements of subsection | ||
(1) of this Section shall
be deemed met.
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(4) In determining the appropriate balance in the allowance | ||
for loan losses account, a credit union may determine its | ||
historical loss rate using a defined period of time of less | ||
than 5 years, provided that: | ||
(A) the methodology used to determine the defined | ||
period of time is formally documented in the credit union's | ||
policies and procedures and is appropriate to the credit | ||
union's size, business strategy, and loan portfolio | ||
characteristics and the economic environment of the areas | ||
and employers served by the credit union; | ||
(B) supporting documentation is maintained for the | ||
technique used to develop the credit union loss rates, | ||
including the period of time used to accumulate historical | ||
loss data and the factors considered in establishing the | ||
time frames; and | ||
(C) the external auditor conducting the credit union's | ||
financial statement audit has analyzed the methodology | ||
employed by the credit union and concludes that the | ||
financial statements, including the allowance for loan | ||
losses, are fairly stated in all material respects in | ||
accordance with U.S. Generally Accepted Accounting | ||
Principles, as promulgated by the Financial Accounting | ||
Standards Board. | ||
(5) A majority of the members of the Supervisory Committee
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shall constitute a quorum.
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(Source: P.A. 96-141, eff. 8-7-09.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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