WIXLIB

SB3178- 9 -LRB101 20574 BMS 70196 b1violate a law, rule or regulation or any condition imposed2in writing by the Department.3(5) To suspend from office and to prohibit from further4participation in any manner in the conduct of the affairs5of his credit union any director, officer or committee6member who has committed any violation of a law, rule,7regulation or of a cease and desist order or who has8engaged or participated in any unsafe or unsound practice9in connection with the credit union or who has committed or10engaged in any act, omission, or practice which constitutes11a breach of his fiduciary duty as such director, officer or12committee member, when the Secretary has determined that13such action or actions have resulted or will result in14substantial financial loss or other damage that seriously15prejudices the interests of the members.161718(6) To assess a civil penalty against a credit unionprovided that:(A) the Secretary reasonably determines, based on19objective20applicable legal standards, that the credit union has:factsandanaccurateassessmentof21(i) committed a violation of this Act, any rule22adopted in accordance with this Act, or any order23of the Secretary issued pursuant to his or her24authority under this Act; or2526(ii) engaged or participated in any unsafe orunsound practice;

SB3178- 10 -1LRB101 20574 BMS 70196 b(B) before a civil penalty is assessed under this2item3reasonable determination, based on objective facts and4an accurate assessment of applicable legal standards,5that6violation under subparagraph (i) of paragraph (A) of7item8subparagraph (ii) of paragraph (A) of item afe andmakeactionthefurtherconstitutingaunsound practice under9(i) directly resulted in a substantial and10material financial loss or created a reasonable11probability12financial loss will directly result; ialmisconductora14material breach of fiduciary duty of any director,15officer, or committee member of the credit union;16Material financial loss, as referenced in this17paragraph18surrounding circumstances and the relative size and19nature of the financial loss or probable financial20loss. Certain benchmarks shall be used in determining21whether22percentage of total assets or total gross income for23the24compelling and extraordinary circumstances, no civil25penalty shall be assessed, unless the financial loss or26probable financial loss is equal to or greater sent

SB3178- 11 -LRB101 20574 BMS 70196 b1either 1% of the credit union's total assets for the2immediately preceding 12-month period, or 1% of the3credit union's total gross income for the immediately4preceding 12-month period, whichever is less;5(C) before a civil penalty is assessed under this6item (6), the credit union must be expressly advised in7writing of the:89(i) specific violation that could subject itto a penalty under this item (6); and10(ii)specificremedialactiontobetaken11within a specific and reasonable time frame to12avoid imposition of the penalty;13(D) Civil penalties assessed under this item (6)14shall15tailored to ensure future compliance by the credit16union with the provisions of this Act and any rules17adopted pursuant to this ureandtoreasonablytaketimely19remedial action with respect to the specific violation20may result in the issuance of an order assessing a21civil penalty up to the following maximum amount, based22upon the total assets of the credit union:23(i) Credit unions with assets of less than 1024million. 1,00025(ii) Credit unions with assets of at least 1026million and less than 50 million . 2,500

SB3178- 12 -1LRB101 20574 BMS 70196 b(iii) Credit unions with assets of at least 502million and less than 100 million3. 5,000(iv) Credit unions with assets of at least 1004million and less than 500 million5. 10,000(v) Credit unions with assets of at least 5006million and less than 1 billion. 25,0007(vi) Credit unions with assets of 1 billion8and greater . 50,000; and9(F) an order assessing a civil penalty under this10item (6) shall be served by certified mail or email to11the12service of the order, unless the credit union makes a13written request for a hearing under 38 IL. Adm. Code14190.20 of the Department's rules for credit unions15within 90 days after issuance of the order; in that16event,17administrative order is entered. Service by certified18mail shall be deemed completed when the notice is19deposited in the United States mail. Service to the20email address of record shall be deemed completed when21sent.22This item (6) shall not apply to violations separately23addressed in rules as authorized under item (7) of this24Section.emailtheaddress oforderrecord andshallbetakestayedeffect uponuntilafinal25(7) Except for the fees established in this Act, to26prescribe, by rule and regulation, fees and penalties for

SB3178- 13 -LRB101 20574 BMS 70196 scripts;3investigating applications for4merge, or convert; failure to maintain accurate books and5records to enable the Department to conduct an examination;6and taking supervisory actions.filingreportsholdingpermission toandotherhearings;organize,7(8) To destroy, in his discretion, any or all books and8records of any credit union in his possession or under his9control after the expiration of three years from the date10of cancellation of the charter of such credit unions.11(9) To make investigations and to conduct research and12studies and to publish some of the problems of persons in13obtaining credit at reasonable rates of interest and of the14methods and benefits of cooperative saving and lending for15such persons.16(10) To authorize, foster or establish experimental,17developmental, demonstration or pilot projects by public18or private organizations including credit unions which:19(a) promote more effective operation of credit20unions so as to provide members an opportunity to use21and control their own money to improve their economic22and social conditions; or23(b) are in the best interests of credit unions,24their members and the people of the State of heradministrative activities with, but not limited to, the

SB3178- 14 -LRB101 20574 BMS 70196 b1NCUA, other state credit union regulatory agencies and2industry3effective and efficient supervision of Illinois chartered4credit unions.56tradeassociationsinordertopromotemore(12) Notwithstanding the provisions of this Section,the Secretary shall not:7(1) issue an order against a credit union organized8under this Act for unsafe or unsound banking practices9solely because the entity provides or has provided10financial services to a cannabis-related legitimate11business;12(2) prohibit, penalize, or otherwise discourage a13credit union from providing financial services to a14cannabis-related legitimate business solely because15the entity provides or has provided financial services16to a cannabis-related legitimate business;17(3) recommend, incentivize, or encourage a credit18union not to offer financial services to an account19holder or to downgrade or cancel the financial services20offered to an account holder solely because:21(A) the account holder is a manufacturer or22producer, or is the owner, operator, or employee of23a cannabis-related legitimate business;24(B) the account holder later becomes an owner25or26business; oroperatorofacannabis-relatedlegitimate

SB3178- 15 -1LRB101 20574 BMS 70196 b(C) the credit union was not aware that the2account holder is3cannabis-related legitimate business; and4(4) take any adverse or corrective supervisory5theowneroroperator ofaaction on a loan made to an owner or operator operates a cannabis-related legitimate business;9or10becausetheowneroroperatorownsor(B) real estate or equipment that is leased to11a12because the owner or operator of the real estate or13equipment leased the equipment or real estate to a14cannabis-related legitimate y(Source: P.A. 101-27, eff. 6-25-19.)16(205 ILCS 305/21) (from Ch. 17, par. 4422)17Sec. 21. Record of board and committee members. Within 3018days after election or appointment, the names and addresses of19the members of the board of directors, committees and all20officers of the credit union shall be filed with the Department21on forms provided by the Department. The form shall also22include the email address of record of the credit union.23(Source: P.A. 97-133, eff. 1-1-12.)24(205 ILCS 305/61) (from Ch. 17, par. 4462)

SB3178- 16 -LRB101 20574 BMS 70196 b1Sec. 61. Suspension.2(1) If the Secretary determines that any credit union is3bankrupt, insolvent, impaired or that it has violated this Act,4or is operating in an unsafe or unsound manner, he shall issue5an order temporarily suspending the credit union's operations6for not more than 60 days. The board of directors shall be7given notice by registered or certified mail, or by email to8the email address of record, of such suspension, which notice9shall include the reasons for such suspension and a list of10specific violations of the Act. Service by certified mail shall11be deemed completed when the notice is deposited in the United12States mail. Service to the email address of record shall be13deemed completed when sent. The Secretary shall also notify the14members15suspension. The Director may assess to the credit union a16penalty, not to exceed the regulatory fee as set forth in this17Act, to offset costs incurred in determining the condition of18the credit union's books and records.ofthecreditunionboardofadvisorsofany19(2) Upon receipt of such suspension notice, the credit20union shall cease all operations, except those authorized by21the Secretary, or the Secretary may appoint a manager-trustee22to operate the credit union during the suspension period. The23board of directors shall, within 10 days of the receipt of the24suspension notice, file with the Secretary a reply to the25suspension notice by submitting a corrective plan of action or26a request for formal hearing on said action pursuant to the

SB317812- 17 -LRB101 20574 BMS 70196 bDepartment's rules and ionof3evidence that the conditions causing the order of suspension4have been corrected, and after determining that the proposed5corrective plan of action submitted is factual, the Secretary6shall revoke the suspension notice, permit the credit union to7resume normal operations, and notify the board of credit union8advisors of such 10corrective plan of action will not correct such conditions, he11may take possession and control of the credit union. The12Secretary may permit the credit union to operate under his13direction and control and may appoint a manager-trustee to14manage its affairs until such time as the condition requiring15such action has been remedied, or in the case of insolvency or16danger of insolvency where an emergency requiring expeditious17action exists, the Secretary may involuntarily merge the credit18union without the vote of the suspended credit union's board of19directors or members (hereafter involuntary merger) subject to20rules promulgated by the Secretary. No credit union shall be21required22involuntary merger. Upon the request of the Secretary, a credit23union by a vote of a majority of its board of directors may24elect to serve as a surviving credit union in an involuntary25merger. If the Secretary determines that the suspended credit26union should be liquidated, he may appoint a liquidating agenttoserveasasurvivingcreditunioninany

SB3178- 18 -LRB101 20574 BMS 70196 b1and require of that person such bond and security as he2considers proper.3(5) Upon receipt of a request for a formal hearing, the4Secretary shall conduct proceedings pursuant to rules and5regulations of the Department. The credit union may request the6appropriate court to stay execution of such action. Involuntary7liquidation or involuntary merger may not be ordered prior linedinthis10(6) If, within the suspension period, the credit union11fails to answer the suspension notice or fails to request a12formal13involuntarily merge the credit union if the credit union is14insolvent or in danger of insolvency and an emergency requiring15expeditious action exists or (ii) revoke the credit union's16charter, appoint a liquidating agent and liquidate the credit17union.18(Source: P.A. 97-133, eff. ection 10. The Transmitters of Money Act is amended bychanging Sections 5, 25, 40, 80, 90, and 100 as follows:21(205 ILCS 657/5)22Sec. 5. Definitions. As used in this Act, unless the23context otherwise requires, the words and phrases defined in24this Section have the meanings set forth in this Section.

SB3178- 19 -LRB101 20574 BMS 70196 b1"Authorized seller" means a person not an employee of a2licensee who engages in the business regulated by this Act on3behalf of a licensee under a contract between that person and4the licensee.5"Bill payment service" means the business of transmitting6money on behalf of an Illinois resident for the purpose of7paying the resident's bills.8"Controlling person" means a person owning or holding the9power to vote 25% or more of the outstanding voting securities10of a licensee or the power to vote the securities of another11controlling person of the licensee. For purposes of determining12the13person, the14interest15indirectly, by that person or by a spouse, parent, or child of16that person.1718percentage ofalicensee controlled byperson's interest lingcombined andProfessional Regulation Institutions.19"Director" means the Director of Financial Institutions.20"Division of Financial Institutions" means the Division of21Financial Institutions of the Department of Financial and22Professional tedemail24address recorded by the Division of Financial Institutions in25the applicant's applicant file or the licensee's license tions'

SB31781- 20 -LRB101 20574 BMS 70196 blicensure unit.2"Licensee" means a person licensed under this Act.3"Location" means a place of business at which activity4regulated by this Act occurs.5"Material litigation" means any litigation that, according6to7significant to a licensee's financial health and would be8required ingreferenced 's annual auditedshareholders,orsimilar11"Money" means a medium of exchange that is authorized or12adopted by a domestic or foreign government as a part of its13currency and that is customarily used and accepted as a medium14of exchange in the country of issuance.15"Money transmitter" means a person who is located in or16doing business in this State and who directly or through17authorized sellers does any of the following in this State:18(1) Sells or issues payment instruments.19(2) Engages in the business of receiving money for2021transmission or transmitting pensation, money of the United States Government or a23foreign government to or from money of another government.24"Outstanding payment instrument" means, unless otherwise25treated by or accounted for under generally accepted accounting26principles on the books of the licensee, a payment instrument

SB3178- 21 -LRB101 20574 BMS 70196 b1issued by the licensee that has been sold in the United States2directly by the licensee or has been sold in the United States3by an authorized seller of the licensee and reported to the4licensee as having been sold, but has not been paid by or for5the licensee.6"Payment instrument" means a check, draft, money order,7traveler's check, stored value card, or other instrument or8memorandum,9transmission or payment of money sold or issued to one or more10persons whether or not that instrument or order is negotiable.11Payment instrument does not include an instrument that is12redeemable by the issuer in merchandise or service, a credit13card voucher, or a letter of credit. A written order for the14transmission or payment of money that results in the issuance15of a check, draft, money order, traveler's check, or other16instrument or memorandum is not a payment rson" means an individual, partnership, association,18joint stock association, corporation, or any other form of19business organization.20"Stored value card" means any magnetic stripe card or other21electronic payment instrument given in exchange for money and22other similar consideration, including but not limited to23checks, debit payments, money orders, drafts, credit payments,24and traveler's checks, where the card or other electronic25payment instrument represents a dollar value that the consumer26can either use or give to another individual.

SB3178- 22 -LRB101 20574 BMS 70196 b1"Transmitting money" means the transmission of money by any2means, including transmissi

(Source: P.A. 100-361, eff. 8-25-17.) (205 ILCS 305/8) (from Ch. 17, par. 4409) Sec. 8. Secretary's powers and duties. Credit unions are regulated by the Department. The Secretary in executing the powers and discharging the duties vested by law in the Department has the following powers and duties: (1) To exercise the rights, powers and duties .