SPRINGFIELD, Ill.–Illinois Gov. J.B. Pritzker has signed into law HB 4462, which amends the Illinois Credit Union Act by authorizing new powers for credit unions of all asset sizes, providing regulatory relief to small credit unions, and clarifying existing provisions of the law governing credit union operations, according to the Illinois Credit Union League.
The league said it initiated the legislation.
According to the ICUL, the majority of the bill’s provisions became effective immediately upon receiving the governor’s signature, including
- Relief to credit unions less than $10 million in assets with the new current expected credit losses (CECL) accounting rule.
- Expansion of a credit union’s authority to make charitable contributions by establishing donor advised fund accounts.
- Authority for credit unions to invest up to 10% of net worth in fintech companies that provide financial products or services to credit unions and members.
Additional Provision
An additional provision of the Act will go into effect on Jan. 1, 2023 to provide credit unions the authority to serve “target markets” consisting of low income and minority groups and distressed geographic areas, the league reported.
“We appreciate the input and grass-roots support we received from Illinois credit unions to help get these significant amendments passed,” said Tom Kane, ICUL president/CEO. “Our staff did a tremendous job getting the changes over the finish line during a shortened legislative session, meeting our goal to update the Illinois Credit Union Act every year and making it one of the best in the nation.”