Illinois Governor JB Pritzker signed into law HB 4462 initiated by the Illinois Credit Union League on May 13, which amends Illinois credit union law. The bill – which was passed unanimously by both houses of the General Assembly – authorizes new powers for credit unions of all asset sizes, provides regulatory relief to small credit unions and clarifies existing provisions of the law governing the operations of credit unions.
“We appreciate the grassroots feedback and support we received from Illinois credit unions to help push through these important changes,” said Tom Kane, president/CEO of the Illinois Credit Union League. “Our staff did a tremendous job of bringing change to the finish line during a shortened legislative session, achieving our goal of updating Illinois credit union law each year and make it one of the best in the country.”
The majority of the bill’s provisions took effect immediately upon receiving the Governor’s signature, including:
- Relief for credit unions with less than $10 million in assets through the current new Expected Credit Loss (ECL) accounting rule.
- Expanding a credit union’s power to make charitable donations by establishing donor-advised fund accounts.
- Permission for credit unions to invest up to 10% of their net worth in fintech companies that provide financial products or services to credit unions and their members.
An additional provision of the law will come into effect on January 1, 2023 to give credit unions the power to serve “target markets” made up of low-income and minority groups and distressed geographic areas.