HB4462 Summary

• Adds Section 16.5 to the Illinois Credit Union Act allowing credit unions to serve target markets (low-income persons and those lacking adequate access to financial services) through written business plans submitted to the Secretary, effective January 1, 2023.

• Modifies Section 19 to permit members to vote electronically using security procedures meeting the Uniform Electronic Transactions Act standards, and allows virtual meeting attendance with 7 days' notice to members.

• Adds Section 20(5) establishing optional nominating committees to recruit and evaluate director candidates, considering skills and qualifications for board positions.

• Amends Section 34 to allow credit unions under $10,000,000 in assets to use reasonable reserve methodologies (including incurred loss) for loan loss allowances instead of requiring generally accepted accounting principles compliance.

• Adds Section 59(15) authorizing credit unions to invest up to 2.5% of net worth (or 5% with management rating of 1) in financial technology company shares, subject to specific capital requirements, legal opinions on corporate veil protection, and written investment agreements with regulatory oversight provisions.