Illinois Governor Bruce Rauner has signed two pieces of credit union-friendly legislation this summer amending the Illinois Credit Union Act (ICUA) and the state's Labor and Storage Lien Acts, effective immediately.
Governor Rauner signed HB 2642, now known as Public Act 99-0759, into law on Aug. 12 after the bill was unanimously passed out of both houses of the state legislature unanimously. The law now requires auto repair shops and towing companies to notify, in writing, credit unions with liens on an unclaimed vehicle of any assessments or rates on accrual of fees. The law also gives more payment options for applicable fees.
This allows lienholders the ability to inspect the vehicle and assess the economic viability of retrieving the vehicle.
The governor signed another bill earlier this summer that amends the ICUA to authorize credit union boards to make changes to articles of incorporation upon a two-thirds vote by directors, allowing boards to address issues with field of membership and other topics that require changes to the articles.
In addition to board changes, HR 5755 establishes more guidance for credit unions in the event of a merger. The change will allow CUs affected by a merger the ability to retain their identity as a division of the surviving credit union, "reducing any internal or public perception of 'winner' and 'losers,'" the Illinois Credit Union League (ICUL) said in a statement.
The law also gives credit unions more power when collecting prepayment penalties on member business loans and waived third-party charges on consumer loans that have been prepaid or terminated within 36 months of origination.
"The passage of both measures is a perfect illustration of the great credit union/ICUL collaborative approach that works so well in Illinois," Keith Sias, Senior Vice President of Governmental Affairs for the ICUL said in a statement. "Government relations is a necessary focal point of credit unions, given the ever escalating array of compliance mandates through new statutes and regulations. Our collaborative approach has proven to be very effective advocacy that benefits all credit unions doing business in Illinois."
Illinois is at least the second league to amend its state act this summer. The Michigan CU League celebrated the passage of
