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| [ Engrossed ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_SB0098
LRB9101012JSpcA
1 AN ACT to amend the Illinois Credit Union Act by changing
2 Sections 5 and 42.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Credit Union Act is amended by
6 changing Sections 5 and 42 as follows:
7 (205 ILCS 305/5) (from Ch. 17, par. 4406)
8 Sec. 5. Place of business.
9 (1) A credit union may change its principal place of
10 business within this State upon 45 days prior written notice
11 to approval of the Department, provided that the Director's
12 approval shall be based upon the same criteria as for the
13 formation of a new credit union.
14 (2) A credit union may share office space with one or
15 more credit unions and contract with any person, firm or
16 corporation, including another credit union, to provide
17 facilities or personnel.
18 (Source: P.A. 81-329.)
19 (205 ILCS 305/42) (from Ch. 17, par. 4443)
20 Sec. 42. Shares in trust.
21 (1) Shares may be issued in trust to a member as trustee
22 or to an individual or corporate trustee. If a corporate
23 trustee is a bank or trust company, shares may be issued to
24 the corporate trustee only if such bank or trust company is
25 organized under the laws of the State of Illinois or is a
26 nationally chartered bank located principally in the State of
27 Illinois. An individual trustee shall be a member of the
28 credit union unless the person establishing the trust in
29 respect to which such shares are issued or each beneficiary
30 of the trust is a member of the credit union and the name of
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1 each beneficiary is disclosed to the credit union. Shares
2 may also be issued in the name of an individual or corporate
3 representative under the Illinois Probate Act of 1975 as
4 amended, for or in respect to a member of a credit union.
5 Shares may also be issued in trust under the Illinois Funeral
6 or Burial Funds Act, for or in respect to a member of a
7 credit union, to a trustee licensed under said Act. Any
8 credit union which issues shares in trust as provided in this
9 Section must be insured by the NCUA or another approved
10 insurer. No trustee or beneficiary, unless a member in his
11 own right, shall be permitted to vote, obtain loans, hold
12 office or be required to pay an entrance or membership fee.
13 Payment of part or all of such shares to such trustee or
14 member shall, to the extent of such payment, discharge the
15 liability of the credit union to the member and the
16 beneficiary and the credit union shall be under no obligation
17 to see to the application of such payment.
18 (2) If a credit union's shares are insured as provided
19 for in this Act, such credit union shall have power to act as
20 trustee or custodian under individual retirement accounts or
21 plans established pursuant to Section 401(d) or (f) or
22 Section 408(a) of the Internal Revenue Code and any laws
23 amendatory or supplementary thereto for its members or groups
24 or organizations of its members provided the funds of such
25 accounts or plans are invested solely in (1) share accounts
26 of, or (2) share accounts and obligations issued by such
27 credit union. All funds held in such fiduciary capacity
28 shall be maintained in accordance with applicable statutes
29 and regulations promulgated thereunder by any authority
30 exercising jurisdiction over such trusts or custodial
31 accounts.
32 (3) Notwithstanding any language to the contrary in this
33 Section 42, a credit union may act as trustee or custodian of
34 individual retirement plans of its members established
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1 pursuant to the Employee Retirement Income Security Act of
2 1974 or self-employed retirement plans established pursuant
3 to the Self-Employed Individuals Retirement Act of 1962, and
4 any laws amendatory or supplementary to such Acts, provided
5 that:
6 (a) All contributions of funds are initially made to a
7 share account in the credit union;
8 (b) Any subsequent transfer of funds to other assets is
9 solely at the direction of the member and the credit union
10 performs only custodial duties, exercises no investment
11 discretion and provides no investment advice with respect to
12 plan assets;
13 (c) The member is notified of the fact that share
14 insurance coverage is limited to funds held in share
15 accounts; and
16 (d) The credit union complies with all applicable
17 provisions of this Act and applicable laws and regulations as
18 may be promulgated by any authority exercising jurisdiction
19 over such trust or custodial accounts.
20 (Source: P.A. 85-1273.)
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.