IL SB3687

Amends the Illinois Credit Union Act to change language in Section 2 from "government" to "governance" of credit unions and establishes that Act provisions control over conflicting bylaw provisions.

Modifies Section 8 to change "prescribe rules and regulations" to "adopt rules" and establishes that Act terms control over conflicting departmental rules, with exceptions only when the Act specifically delegates rulemaking authority.

Adds Section 12(4)(b) requiring the Department to separately identify direct and allocable indirect costs of Credit Union Section examinations under the Illinois Community Reinvestment Act beginning fiscal year 2025 and make analyses available to the credit union industry.

Expands Section 13(16) to allow credit unions to accept deposits from any state's political subdivisions, capping non-Illinois deposits at 50% of capital and surplus or $3,000,000, whichever is greater, and complying with federal regulations.

Adds Section 59(16) authorizing Illinois credit unions to enter into derivatives transactions for interest rate management under the same requirements as federal credit unions, with larger well-capitalized credit unions able to proceed without prior departmental approval.