HB5372 Summary

• Establishes examination fees for credit unions that are covered financial institutions under the Illinois Community Reinvestment Act, effective beginning fiscal year July 1, 2025, with fees set by Department rules.

• Creates the Credit Union Community Reinvestment Act Fund in the State Treasury to receive and hold all examination fees collected, with excess funds above 25% of annual administrative costs credited back to credit unions proportionally.

• Allows credit unions to invest up to 150% of net worth in loan pools (increased to 175% with management rating of 1, up to 200% with Secretary approval) and authorizes derivatives transactions for interest rate risk management with specified CAMELS rating requirements.

• Clarifies that Act provisions control over bylaws and Department rules in case of conflicts, and provides that conflicts are deemed not to exist if the Act specifically delegates rulemaking authority to the Secretary within statutory limits.

• Modifies provisions regarding credit union powers, including expanded use of Section 501(c)(19) charitable organizations and clarification of political subdivision definitions for deposit and fiscal agent services.