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H.B. 1526 (now SB 1674: Illinois Credit Union Act — Regulatory Fees)
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(Sen. Collins)/ (Rep. Monique Davis)
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Pursuant to the “dual track” strategy of attempting to implement a legislative resolution of the issues presented in the judicial proceeding that was adopted by the League Board in November 2005, the League reintroduced a regulatory fee reduction bill patterned after S.B. 2495 (which passed the Senate last year on a 51-0 vote and received 66 co-sponsors in the House, before being in the House Rules Committee). This measure was filed as H.B. 1526 and it lowers regulatory fees for credit unions over $5 million in assets, by restoring the rate in effect before the 2004 Budget Bill was adopted that precipitated the pending regulatory fee litigation (note: through remedial legislation previously initiated and passed by the League, credit unions under $5 million were excluded from the fee increase enacted in 2004.)
To implement a “package” concept desired by House leadership, S.B. 1674 was identified as an appropriate vehicle (it already addressed the supervision of mortgage brokers by requiring continuing education for loan originators required to register under the Illinois Residential Mortgage License Act). S.B. 1674 was amended to incorporate the “package” on May 30, 2007. At this time, it has not been released from Senate Rules for that chamber to concur with the amendments made in the House. This bill amends the Illinois Banking Act, Illinois Savings and Loan Act of 1985, Savings Bank Act, Illinois Credit Union Act, Residential Mortgage License Act of 1987, State Finance Act, Home Equity Assurance Act, Residential Real Property Disclosure Act, Mortgage Rescue Fraud Act and Interest Act. If enacted, the fees for state-chartered credit unions will be returned, in full or in part, to the 2003 levels.
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Support
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Passed House as Amended 62-52-2; Held in Senate Rules Committee (no further action expected on this bill, although the substantive provisions could be added, in full or in part, to another measure, including a Fiscal Year 2008 budget bill)
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H.B. 352 (Illinois Credit Union Act)
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(Rep. Holbrook)/ (Sen. Link)
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ICUL-initiated measure to authorize state chartered credit unions to utilize the option of electing credit union directors based upon the "one-member-one-vote" method currently employed by federal credit unions.
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Support
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Passed House 117-0; Passed Senate 54-1. Sent to Governor on June 13, 2007.
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H.B. 623 (Illinois Credit Union Act)
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(Rep. Smith)/ (Sen. Koehler)
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ICUL-initiated measure to clarify that credit union investments in employee benefit plans are not subject to the investment limitations contained in Section 59 of the Illinois Credit Union Act.
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Support
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Passed House 114-0; Passed Senate 58-0. Sent to Governor on June 14, 2007.
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H.B. 1288 (Illinois Credit Union Act)
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(Rep. Holbrook)/ (Sen. Haine)
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ICUL-initiated measure to codify several technical enhancements to the Illinois Credit Union Act, as follows:
- An amendment to Section 8, Director’s Powers and Duties, to mandate that DFI ensure its examiners are properly trained and receive necessary continuing education to carry out their duties;
- An amendment to Section 22, Vacancies, to clarify when a board vacancy exists and a successor director’s term commences;
- An amendment to Section 30 and Section 46, Duties of Directors, to authorize each credit union board, at its option, to delegate the authority of setting loan and dividend rates and hiring employees to the credit union’s chief management official (who, in turn, may further delegate);
- An amendment to Section 51, Other Loan Programs, to authorize credit unions to purchase the indebtedness of members of other credit unions for asset and liability management purposes; and
- An amendment to Section 70 to prohibit other persons or foreign credit unions from using the name of an existing Illinois credit union to market and/or solicit business.
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Support
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Passed House 113-0; Passed Senate 57-0. Sent to Governor on June 14, 2007.
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H.B. 217 (Vehicle Code)
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(Rep. Sacia)/ (Sen. Sieben)
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Amends the Illinois Vehicle Code. Dealers must deliver to the Secretary of State, within 20 days after transferring a vehicle to another person, the title documents to that vehicle. The measure affords dealers additional time to meet the 20-day standard, by establishing an “effective upon mailing” standard. A separate section of the Vehicle Code provides that a lender’s security interest in a vehicle is perfected at the time of its creation, if the title documents are delivered to the Secretary of State within 21 days of creation of the lien. The sponsor agreed to an ICUL requested amendment that avoids a potential “gap” in lien perfection by extending the lender relation back timeline from 21 to 30 days (which also corresponds to the new Bankruptcy Code period).
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Support as amended
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Passed House 115-0; Passed Senate 56-0. Sent to Governor on June 21, 2007.
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S.B. 229 (Code of Civil Procedure – Collections)
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(Sen. Silverstein)/ (Rep. Mathias)
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ICUL-initiated measure to clarify post-judgment remedies to aid credit unions in their collection activities. Amends the Illinois Credit Union Act and other financial institution enabling acts to clarify that financial institutions shall disclose financial records under a lawful citation to discover assets. The measure addresses provisions in the Code of Civil Procedure relating to wages subject to collection under a wage deduction order (and fees payable to the employer), service of replevin orders on defendants, registration of foreign judgments, recovery of corporate property from a defendant who is a citation respondent and recovery of expenses in citation proceedings.
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Support
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Passed Senate 55-0; Passed House 112-0-3. Sent to Governor on June 29, 2007.
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S.B. 546 (Notary Act)
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(Sen. Cullerton)
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ICUL in late May successfully concluded negotiations with the Cook County State's Attorney for compromise legislation addressing mortgage fraud that creates virtually no new operational burden for credit unions and other financial institutions. The League has been involved in a mortgage fraud industry working group led by Senator Cullerton that has been meeting regularly throughout the session. The group accepted draft language the League presented that restricts a new notarization thumbprint procedure to documents of conveyance (i.e., deeds). The procedure is intended to create documentary evidence that can be used in prosecuting persons that perpetrate fraud through the execution and recordation of forged deeds. Through a survey conducted by the League, credit unions confirmed the League’s understanding that they rarely, if ever, conduct closings at the credit union where title to residential real estate is transferred. The League is pleased it was able to completely exclude documents of encumbrance (i.e., mortgage instruments), from the bill. Accordingly, the procedure will not apply to second mortgages, refi's, and home equity lines of credit closed at the offices of a credit union.
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Monitor
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Passed Senate 57-0; Placed on House Calendar Order of 3rd Reading - Short Debate on May 3, 2007; Final Action Deadline Extended to August 10, 2007.
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H.B. 1427 (Appraisals)
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(Rep. Saviano)
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HB 1427 is a re-write of the Real Estate Appraisal License Act. As part of the re-write, the appraisal industry is attempting to remove the existing exemption that enables financial institutions to conduct their own market valuations of real property serving as collateral on loans under $250,000 (in lieu of valuations by a certified appraiser). ICUL is involved in ongoing negotiations to preserve the existing exemption.
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Oppose
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Held on House Calendar Order of Second Reading - Short Debate on May 29, 2007; Final Action Deadline Extended to August 10, 2007.
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