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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_SB1656eng SB1656 Engrossed LRB9111043JSpcA 1 AN ACT to amend the Illinois Credit Union Act by changing 2 Sections 9 and 12. 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 9 and 12 as follows: 7 (205 ILCS 305/9) (from Ch. 17, par. 4410) 8 Sec. 9. Reports and examinations. 9 (1) Credit unions shall report to the Department 10 annually on or before the first day of February in each year 11 on forms supplied by the Department. A recapitulation of the 12 Annual Reports shall be compiled and published annually by 13 the Department, for the use of the General Assembly, credit 14 unions, various educational institutions and other interested 15 parties. A credit union which fails to file any report when 16 due shall pay to the Department a late filing fee of $5.00 17 for each day the report is overdue. The Director may extend 18 the time for filing a report. 19 (2) The Director may require special examinations of and 20 special financial reports from a credit union or a credit 21 union organization in which a credit union loans, invests, or 22 delegates substantially all managerial duties and 23 responsibilities when he determines that such examinations 24 and reports are necessary to enable the Department to 25 determine the safety of a credit union's operation or its 26 solvency. The cost to the Department of the aforesaid special 27 examinations shall be borne by the credit union being 28 examined. 29 (3) All credit unions incorporated under this Act shall 30 be examined at least bienniallyannuallyby the Department 31 or, at the discretion of the Director, by a public accountant SB1656 Engrossed -2- LRB9111043JSpcA 1 registered by the Department of Professional Regulation. The 2 costs of an examination shall be paid by the credit union. 3 The scope of all examinations by a public accountant shall be 4 at least equal to the examinations made by the Department. 5 The examiners shall have full access to, and may compel the 6 production of, all the books, papers, securities and accounts 7 of any credit union. A special examination shall be made by 8 the Department or by a public accountant approved by the 9 Department upon written request of 5 or more members, who 10 guarantee the expense of the same. Any credit union refusing 11 to submit to an examination when ordered by the Department 12 shall be reported to the Attorney General, who shall 13 institute proceedings to have its charter revoked. If the 14 Director determines that theannualexamination of a credit 15 union is to be conducted by a public accountant registered by 16 the Department of Professional Regulation and thesuch annual17 examination is done in conjunction with the credit union's 18 external independent audit of financial statements, the 19 requirements of this Section and subsection (3) of Section 34 20 shall be deemed met. 21 (4) A copy of the completed report of examination and a 22 review comment letter, if any, citing exceptions revealed 23 during the examination, shall be submitted to the credit 24 union by the Department. A detailed report stating the 25 corrective actions taken by the Board of Directors on each 26 exception set forth in the review comment letter shall be 27 filed with the Department within 40 days after the date of 28 the review comment letter, or as otherwise directed by the 29 Department. Any credit union through its officers, directors, 30 committee members or employees, which willfully provides 31 fraudulent or misleading information regarding the corrective 32 actions taken on exceptions appearing in a review comment 33 letter may have its operations restricted to the collection 34 of principal and interest on loans outstanding and the SB1656 Engrossed -3- LRB9111043JSpcA 1 payment of normal expenses and salaries until all exceptions 2 are corrected and accepted by the Department. 3 (Source: P.A. 86-238.) 4 (205 ILCS 305/12) (from Ch. 17, par. 4413) 5 Sec. 12. Fees for examination and administration. 6 (1) A credit union regulatedunions examinedby the 7 Department shall pay a regulatoryan examinationfee to the 8 Department based upon its total assets as shown by its 9 Year-end Call ReportStatement of Condition on the date of10examinationat the following rates: 11 TOTAL ASSETS REGULATORYEXAMINATIONFEE 12 $25,000 or less .......... $100$25 plus $2 per $1,000 of13assets up to and including14$25,00015 Over $25,000 and not over 16 $100,000 ................. $100$75plus $4 17$1.75per $1,000 of 18 assets in excess of $25,000 19 Over $100,000 and not over 20 $200,000 ................. $400$206.25plus $3 21$1.50per 22 $1,000 of assets in excess of 23 $100,000 24 Over $200,000 and not over 25 $500,000 ................. $700$356.25plus 26 $2$1.25per 27 $1,000 of assets in excess 28 of $200,000 29 Over $500,000 and not over 30 $1,000,000 31$750,000.................. $1,300$731.2532 plus $1.408533centsper $1,000 of assets in SB1656 Engrossed -4- LRB9111043JSpcA 1 excess of $500,000 2 Over $1,000,000 3$750,000and not over 4 $5,000,000 5$1,000,000............... $2,000$943.756 plus $0.50807centsper $1,000 of assets in 8 excess of $1,000,000 9$750,00010 Over $5,000,000 11$1,000,000and not over 12 $30,000,000 13$5,000,000................ $4,000$1,143.7514 plus $0.354015centsper $1,000 assets 16 in excess of 17 $5,000,000$1,000,00018 Over $30,000,000 and not 19 over $100,000,000 20$5,000,000.......... $12,750$2,743.7521 plus $0.302522centsper $1,000 of assets in 23 excess of $30,000,000 24$5,000,00025 Over $100,000,000 and not 26 over $500,000,000............. $33,750 plus $0.15 per 27 $1,000 of assets in excess 28 of $100,000,000 29 Over 30 $500,000,000................ $93,750 plus 31 $0.05 per $1,000 of 32 assets in excess 33 of $500,000,000 34 (2) The Director shall review the regulatory fee SB1656 Engrossed -5- LRB9111043JSpcA 1 schedule in subsection (1) on an annual basis and adjust the 2 fee schedule no more than 5% annually if necessary to defray 3 the estimated administrative and operational expenses of the 4 Department as defined in subsection (5). The Director shall 5 provide credit unions with written notice of any adjustment 6 made in the regulatory fee schedule.In no event shall the7fee be less than $35 or more than $28,000. No examination8fee shall be collected from a credit union until it has been9in operation for one year.10 (3) Not later than MarchFebruary1 of each calendar 11 year, aeachcredit union shall pay to the Department, for 12 the preceding calendar year, a regulatoryan administrative13 fee in accordance with the regulatory fee schedule in 14 subsection (1)scale set forth below, on the basis of assets 15 as of the Year-end Call ReportDecember 31of the preceding 16 year., butThe regulatory fee shallmaynot be less than 17 $100 or more than $125,000, provided that the regulatory fee 18 cap of $125,000 shall be adjusted to incorporate the same 19 percentage increase as the Director makes in the regulatory 20 fee schedule from time to time under subsection (2)$25. No 21 regulatoryadministrativefee shall be collected from a 22 credit union until it has been in operation for one year. 23Scale of Administrative Fees:24If a Credit Union HasThe Administrative25Total Assets of:Fee is:26Under $25,000.................$ 2527At least $25,000 but less28than $50,000..................4529At least $50,000 but less30than $100,000.................8531At least $100,000 but less32than $200,000.................15533At least $200,000 but less34than $350,000.................195SB1656 Engrossed -6- LRB9111043JSpcA 1At least $350,000 but less2than $500,000.................3053At least $500,000 but less4than $1,000,000...............5005At least $1,000,000 but less6than $2,000,000...............6007At least $2,000,000 but less8than $5,000,000...............7759At least $5,000,000 but less10than $10,000,000..............1,00011$10,000,000 or greater........1,500 plus $150 for each12additional $10,000,00013in assets14 (4) The aggregate of all fees collected by the 15 Department under this Act shall be paid promptly after 16 receipt of the same, accompanied by a detailed statement 17 thereof, into the State Treasury and shall be set apart in 18 the Credit Union Fund, a special fund hereby created in the 19 State treasury. The amount from time to time deposited in 20 the Credit Union Fund and shall be used to offset the 21 ordinary administrative and operational expenses of the 22 Department under this Act. 23 (5) The administrative and operational expenses for any 24 calendar year shall mean the ordinary and contingent expenses 25 for that year incidental to making the examinations provided 26 for by, and for administering, this Act, including all 27 salaries and other compensation paid for personal services 28 rendered for the State by officers or employees of the State 29 to enforce this Act; all expenditures for telephone and 30 telegraph charges, postage and postal charges, office 31 supplies and services, furniture and equipment, office space 32 and maintenance thereof, travel expenses and other necessary 33 expenses; all to the extent that such expenditures are 34 directly incidental to such examination or administration. SB1656 Engrossed -7- LRB9111043JSpcA 1 (6) When the aggregate of all fees collected by the 2 Department under this Act for any calendar year exceeds the 3 total administrative and operationaladministration and4examinationexpenses under this Act for that year, such 5 excess shall be credited to credit unions and applied against 6 their regulatory fees for the subsequent year. The amount 7 credited to a credit union shall be in the same proportion as 8 the fee paid by such credit union for the calendar year in 9 which the excess is produced bears to the aggregate of the 10 fees collected by the Department under this Act for the same 11 year. 12 (7) Examination fees for the year 2000 statutory 13 examinations paid pursuant to the examination fee schedule in 14 effect at that time shall be credited toward the regulatory 15 fee to be assessed the credit union in calendar year 2001. 16The Director shall transfer annually, for a 3 year period17beginning July 1, 1988, from the Credit Union Fund to the18General Revenue Fund the sum of 1/3 of the General Revenue19Fund monies expended for the administration of the Credit20Union Division of the Department during fiscal year 1988. No21such transfer shall be made in any year when the average22daily balance during the previous fiscal year in the Credit23Union Fund falls below $300,000.24 (8) Nothing in this Act shall prohibit the General 25 Assembly from appropriating funds to the Department from the 26 General Revenue Fund for the purpose of administering this 27 Act. 28 (Source: P.A. 85-716.) 29 Section 99. Effective date. This Act takes effect 30 January 1, 2001.