PublicAct0930640HB1516ReEnrolledLRB09305054JLS07768bresidentialrealestateshallbesubjecttothelawsapplicabletheretoTheratesofinteresttobechargedonloanstomembersshallbesetbytheBoardofDirectorsofeachind ID: 893941
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1 PublicAct093-0640HB1516Re-EnrolledLRB093
PublicAct093-0640HB1516Re-EnrolledLRB09305054JLS07768bmemberspresentatanyregularorspecialmeetingcalledtoconsiderthematter,butonlyafteranopportunityhasbeengiventothemembertobeheard.(4)Amemberwhohascausedalosstothecreditunion,_orwhohasfailedtomaintainoneormoresharesatthe----------creditunion,orviolatedBoardpolicyapplicabletomembers________________________________________________maybeexpelledbyamajorityvoteofaquorumofdirectorsiftheboardhasadoptedapolicyprovidingforexpulsionunderthosecircumstances.Inmaintainingandenforcingapolicybasedonloss,theboardmayconsider,withoutlimitation,amember'sfailuretopayamountsdueunderaloan,failuretoprovidecollectedfundstocoverwithdrawalsorpersonalsharedraftsorcredituniondraftswherethememberisaremitter,orfailuretopayfeesor
2 chargesduethecreditunion.Ifapolicyisadop
chargesduethecreditunion.Ifapolicyisadoptedbytheboardpursuanttothissubsection(4),writtennoticeofthepolicyandtheeffectivedateofthepolicyshallbemailedtoeachmemberofthecreditunionatthemember'scurrentaddressappearingontherecordsofthecreditunion.Thepolicyshallbemailedtomembersnotfewerthan30dayspriortotheeffectivedateofthepolicy.Inaddition,newmembersshallbeprovidedwrittennoticeofthepolicypriortooruponapplyingformembership.(5)Alloranypartoftheamountpaidonsharesofawithdrawingmemberorexpelledmemberwithanydeclareddividendsorinterestonthedateofwithdrawalorexpulsionmust,afterdeductingallamountsduefromthemembertothecreditunion,bepaidtohim.Thecreditunionmayrequirenotmorethan60days'writtennoticeofintentiontowithdrawshares,butanoticeofwithdrawaldoesnotentitlethem
3 embertoanypreferredorpriorclaimintheeven
embertoanypreferredorpriorclaimintheeventofliquidation.Withdrawingorexpelledmembershavenofurtherrightsinthecreditunion,butarenot,bywithdrawalorexpulsion,releasedfromanyobligationtheyowetothe PublicAct093-0640HB1516Re-EnrolledLRB09305054JLS07768bresidentialrealestateshallbesubjecttothelawsapplicablethereto.TheratesofinteresttobechargedonloanstomembersshallbesetbytheBoardofDirectorsofeachindividualcreditunionandsuchratesmaybelessthan,butmaynotexceed,themaximumratesetforthinthisSection.Aborrowermayrepayhisloanpriortomaturity,inwholeorinpart,withoutpenalty.Thecreditcontractmayprovideforthepaymentbythememberandreceiptbythecreditunionofallcostsanddisbursements,includingreasonableattorney'sfeesandcollectionagencycharges,incurredbythecredituniontocollecto
4 renforcethedebtintheeventofadelinquencyb
renforcethedebtintheeventofadelinquencybythemember,orintheeventofabreachofanyobligationofthememberunderthecreditcontract.Acontingencyorhourlyarrangementestablishedunderanagreemententeredintobyacreditunionwithanattorneyorcollectionagencytocollectaloanofamemberindefaultshallbepresumedprimafaciereasonable.(2)Creditunionsmaymakeloansbaseduponthesecurityofanyinterestorequityinrealestate,subjecttorulesandregulationspromulgatedbytheDirector.Inanycontractorloanwhichissecuredbyamortgage,deedoftrust,orconveyanceinthenatureofamortgage,onresidentialrealestate,theinterestwhichiscomputed,calculated,charged,orcollectedpursuanttosuchcontractorloan,orpursuanttoanyregulationorrulepromulgatedpursuanttothisAct,maynotbecomputed,calculated,chargedorcollectedforanyperio
5 doftimeoccurringafterthedateonwhichtheto
doftimeoccurringafterthedateonwhichthetotalindebtedness,withtheexceptionoflatepaymentpenalties,ispaidinfull.Forpurposesofthissubsection(2)ofthisSection46,aprepaymentshallmeanthepaymentofthetotalindebtedness,withtheexceptionoflatepaymentpenaltiesifincurredorcharged,onanydatebeforethedatespecifiedinthecontractorloanagreementonwhichthetotalindebtedness PublicAct093-0640HB1516Re-EnrolledLRB09305054JLS07768bthesaleofthepropertyoruponthedeathoftheowneror,ifthepropertyisinjointtenancy,uponthedeathofthelastsurvivingjointtenantwhohadsuchaninterestinthepropertyatthetimetheloanwasinitiated,provided,however,thatthecreditunionanditsmembermaybymutualagreement,establishotherrepaymentterms.Acreditunion,inmakinga"reversemortgage"loan,mayadddeferredinteresttoprinci
6 palorotherwiseprovideforthechargingofint
palorotherwiseprovideforthechargingofinterestorpremiumsonsuchdeferredinterest."Homestead"property,forpurposesofthisSection,meansthedomicileandcontiguousrealestateownedandoccupiedbythemortgagor.TheDirectorshallpromulgaterulesandregulationsunderthisSection;providedthatsuchrulesandregulationsneednotbepromulgatedjointlywithanyotheradministrativeagencyofthisState.(4)NotwithstandinganyotherprovisionsofthisAct,acreditunionauthorizedunderthisActtomakeloanssecuredbyaninterestorequityinrealpropertymayengageinmakingrevolvingcreditloanssecuredbymortgagesordeedsoftrustonsuchrealpropertyorbysecurityassignmentsofbeneficialinterestsinlandtrusts.ForpurposesofthisSection,"revolvingcredit"hasthemeaningdefinedinSection4.1oftheInterestAct.Anymortgageordeedoftrustgiven
7 tosecurearevolvingcreditloanmay,andwhens
tosecurearevolvingcreditloanmay,andwhensoexpressedthereinshall,securenotonlytheexistingindebtednessbutalsosuchfutureadvances,whethersuchadvancesareobligatoryortobemadeattheoptionofthelender,orotherwise,asaremadewithintwentyyearsfromthedatethereof,tothesameextentasifsuchfutureadvancesweremadeonthedateoftheexecutionofsuchmortgageordeedoftrust,althoughtheremaybenoadvancemadeatthetimeofexecutionofsuchmortgageorotherinstrument,andalthoughtheremaybenoindebtednessoutstandingatthetimeanyadvanceismade.Thelienof PublicAct093-0640HB1516Re-EnrolledLRB09305054JLS07768b"Originatinglender"meanstheparticipatingcreditunionwithwhichthemembercontracts.Amasterparticipationagreementmustbeproperlyexecuted,andtheagreementmustincludeprovisionsforidentifying,eitherthrough
8 documentsincorporatedbyreferenceordirect
documentsincorporatedbyreferenceordirectlyintheagreement,theparticipationloanorloanspriortotheirsale.(2)Anycreditunionwithassetsof$500,000ormoremayloantoitsmembersundertheStateScholarshipsLaworotherscholarshipprogramswhicharesubjecttoafederalorstatelawproviding100%repaymentguarantee.(3)Acreditunionmaypurchasetheconditionalsalescontracts,notesandsimilarinstrumentswhichevidenceanindebtednessofitsmembers.(4)WithapprovaloftheBoardofDirectors,acreditunionmaymakeloans,eitheronitsownorjointlywithothercreditunions,corporationsorfinancialinstitutions,tocreditunionorganizations;provided,thattheaggregateamountofallsuchloansoutstandingshallnotatanytimeexceedthegreaterof3%1%ofthepaid-inandunimpaired_________________--capitalandsurplusofthecreditunionortheamoun
9 t______________authorizedforfederalcredi
t______________authorizedforfederalcreditunions.____________________________________(Source:P.A.92-293,eff.8-9-01.)(205ILCS305/59)(fromCh.17,par.4460)Sec.59.InvestmentofFunds.Fundsnotusedinloanstomembersmaybeinvested,pursuanttosubsection(7)ofSection30ofthisAct,andsubjecttoDepartmentalrulesandregulations:(1)Insecurities,obligationsorotherinstrumentsoforissuedbyorfullyguaranteedastoprincipalandinterestbytheUnitedStatesofAmericaoranyagencythereoforinanytrustortrustsestablishedforinvestingdirectlyorcollectivelyinthesame;(2)InobligationsofanystateoftheUnitedStates, PublicAct093-0640HB1516Re-EnrolledLRB09305054JLS07768bunimpairedcapitalandsurplusofthecreditunion;(8)Infederalfundsandbankers'acceptances;(9)InsharesorstocksofCreditUnionServiceOrganizations
10 inthetotalamountnotexceedingthegreater__
inthetotalamountnotexceedingthegreater____________of3%1%oftheunimpairedcapitalandsurplusofthecredit______--unionortheamountauthorizedforfederalcreditunions.__________________________________________________AsusedinthisSection,"politicalsubdivision"includes,butisnotlimitedto,counties,townships,cities,villages,incorporatedtowns,schooldistricts,educationalserviceregions,specialroaddistricts,publicwatersupplydistricts,fireprotectiondistricts,drainagedistricts,leveedistricts,sewerdistricts,housingauthorities,parkdistricts,andanyagency,corporation,orinstrumentalityofastateoritspoliticalsubdivisions,whethernoworhereaftercreatedandwhetherhereinspecificallymentionedornot.(Source:P.A.92-293,eff.8-9-01.)Section99.Effectivedate.ThisActtakeseffectuponbecomingl