Credit unions are regulated by the Department. The Secretary in executing the powers and discharging the duties vested by law in the Department has the following powers and duties: (1) To exercise the rights, powers, and duties set forth in this Act or any related Act. The Director shall oversee the functions of the Division and report to the Secretary, with respect to the Director's exercise of any of the rights, powers, and duties vested by law in the Secretary under this Act. All references in this Act to the Secretary shall be deemed to include the Director, as a person authorized by the Secretary or this Act to assume responsibility for the oversight of the functions of the Department relating to the regulatory supervision of credit unions under this Act. (2) To adopt rules for the administration of this Act. The provisions of the Illinois Administrative Procedure Act are hereby expressly adopted and incorporated herein as though a part of this Act, and shall apply to all administrative rules and procedures of the Department under this Act. Rules adopted by the Secretary shall be within the statutory authority upon which they are based. If there is a conflict, inconsistency, or variation between the terms of this Act and the provisions in a rule adopted by the Secretary, the terms of this Act shall control. A conflict, inconsistency, or variation may not be deemed to exist if the Act specifically delegates authority to the Secretary to adopt by rule standards or limitations on a particular matter, provided the rule is within the statutory authority upon which it is based. (3) To direct and supervise all the administrative and technical activities of the Department including the employment of a Credit Union Supervisor who shall have knowledge in the theory and practice of, or experience in, the operations or supervision of financial institutions, preferably credit unions, and such other persons as are necessary to carry out his functions. The Secretary shall ensure that all examiners appointed or assigned to examine the affairs of State-chartered credit unions possess the necessary training and continuing education to effectively execute their jobs. (4) To issue cease and desist orders when in the opinion of the Secretary, a credit union is engaged or has engaged, or the Secretary has reasonable cause to believe the credit union is about to engage, in an unsafe or unsound practice, or is violating or has violated or the Secretary has reasonable cause to believe is about to violate a law, rule, or regulation or any condition imposed in writing by the Department. (5) To suspend from office and to prohibit from further participation in any manner in the conduct of the affairs of any credit union any director, officer, or committee member who has committed any violation of a law, rule, or regulation or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty as such director, officer, or committee member, when the Secretary has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members. (6) To assess a civil penalty against a credit union provided that: (A) the Secretary reasonably determines, based on objective facts and an accurate assessment of applicable legal standards, that the credit union has: (i) committed a violation of this Act, any rule adopted in accordance with this Act, or any order of the Secretary issued pursuant to his or her authority under this Act; or (ii) engaged or participated in any unsafe or unsound practice; (B) before a civil penalty is assessed under this item (6), the Secretary must make the further reasonable determination, based on objective facts and an accurate assessment of applicable legal standards, that the credit union's action constituting a violation under subparagraph (i) of paragraph (A) of this item (6) or an unsafe and unsound practice under subparagraph (ii) of paragraph (A) of this item (6): (i) directly resulted in a substantial and material financial loss or created a reasonable probability that a substantial and material financial loss will directly result; or (ii) constituted willful misconduct or a material breach of fiduciary duty of any director, officer, or committee member of the credit union; Material financial loss, as referenced in this paragraph (B), shall be assessed in light of surrounding circumstances and the relative size and nature of the financial loss or probable financial loss. Certain benchmarks shall be used in determining whether financial loss is material, such as a percentage of total assets or total gross income for the immediately preceding 12-month period. Absent compelling and extraordinary circumstances, no civil penalty shall be assessed, unless the financial loss or probable financial loss is equal to or greater than either 1% of the credit union's total assets for the immediately preceding 12-month period, or 1% of the credit union's total gross income for the immediately preceding 12-month period, whichever is less; (C) before a civil penalty is assessed under this item (6), the credit union must be expressly advised in writing of the: (i) specific violation that could subject it to a penalty under this item (6); and (ii) specific remedial action to be taken within a specific and reasonable time frame to avoid imposition of the penalty; (D) civil penalties assessed under this item (6) shall be remedial, not punitive, and reasonably tailored to ensure future compliance by the credit union with the provisions of this Act and any rules adopted pursuant to this Act; (E) a credit union's failure to take timely remedial action with respect to the specific violation may result in the issuance of an order assessing a civil penalty up to the following maximum amount, based upon the total assets of the credit union: (i) Credit unions with assets of less than $10 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 (ii) Credit unions with assets of at least $10 million and less than $50 million . . . . . . . . . . . . . . . . . . . $2,500 (iii) Credit unions with assets of at least $50 million and less than $100 million . . . . . . . . . . . . . . . . . . $5,000 (iv) Credit unions with assets of at least $100 million and less than $500 million . . . . . . . . . . . . . . . . $10,000 (v) Credit unions with assets of at least $500 million and less than $1 billion . . . . . . . . . . . . . . . . . . $25,000 (vi) Credit unions with assets of $1 billion and greater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000; and (F) an order assessing a civil penalty under this item (6) shall take effect upon service of the order, unless the credit union makes a written request for a hearing under 38 Ill. Adm. Code 190.20 of the Department's rules for credit unions within 90 days after issuance of the order; in that event, the order shall be stayed until a final administrative order is entered. This item (6) shall not apply to violations separately addressed in rules as authorized under item (7) of this Section. (7) Except for the fees established in this Act, to prescribe, by rule and regulation, fees and penalties for preparing, approving, and filing reports and other documents; furnishing transcripts; holding hearings; investigating applications for permission to organize, merge, or convert; failure to maintain accurate books and records to enable the Department to conduct an examination; and taking supervisory actions. (8) To destroy, in his discretion, any or all books and records of any credit union in his possession or under his control after the expiration of three years from the date of cancellation of the charter of such credit unions. (9) To make investigations and to conduct research and studies and to publish some of the problems of persons in obtaining credit at reasonable rates of interest and of the methods and benefits of cooperative saving and lending for such persons. (10) To authorize, foster, or establish experimental, developmental, demonstration, or pilot projects by public or private organizations including credit unions which: (a) promote more effective operation of credit unions so as to provide members an opportunity to use and control their own money to improve their economic and social conditions; or (b) are in the best interests of credit unions, their members and the people of the State of Illinois. (11) To cooperate in studies, training, or other administrative activities with, but not limited to, the NCUA, other state credit union regulatory agencies and industry trade associations in order to promote more effective and efficient supervision of Illinois chartered credit unions. (12) Notwithstanding the provisions of this Section, the Secretary shall not: (1) issue an order against a credit union organized under this Act for unsafe or unsound banking practices solely because the entity provides or has provided financial services to a cannabis-related legitimate business; (2) prohibit, penalize, or otherwise discourage a credit union from providing financial services to a cannabis-related legitimate business solely because the entity provides or has provided financial services to a cannabis-related legitimate business; (3) recommend, incentivize, or encourage a credit union not to offer financial services to an account holder or to downgrade or cancel the financial services offered to an account holder solely because: (A) the account holder is a manufacturer or producer, or is the owner, operator, or employee of a cannabis-related legitimate business; (B) the account holder later becomes an owner or operator of a cannabis-related legitimate business; or (C) the credit union was not aware that the account holder is the owner or operator of a cannabis-related legitimate business; and (4) take any adverse or corrective supervisory action on a loan made to an owner or operator of: (A) a cannabis-related legitimate business solely because the owner or operator owns or operates a cannabis-related legitimate business; or (B) real estate or equipment that is leased to a cannabis-related legitimate business solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related legitimate business. forth in this Act or any related Act. The Director shall oversee the functions of the Division and report to the Secretary, with respect to the Director's exercise of any of the rights, powers, and duties vested by law in the Secretary under this Act. All references in this Act to the Secretary shall be deemed to include the Director, as a person authorized by the Secretary or this Act to assume responsibility for the oversight of the functions of the Department relating to the regulatory supervision of credit unions under this Act. Act. The provisions of the Illinois Administrative Procedure Act are hereby expressly adopted and incorporated herein as though a part of this Act, and shall apply to all administrative rules and procedures of the Department under this Act. Rules adopted by the Secretary shall be within the statutory authority upon which they are based. If there is a conflict, inconsistency, or variation between the terms of this Act and the provisions in a rule adopted by the Secretary, the terms of this Act shall control. A conflict, inconsistency, or variation may not be deemed to exist if the Act specifically delegates authority to the Secretary to adopt by rule standards or limitations on a particular matter, provided the rule is within the statutory authority upon which it is based. and technical activities of the Department including the employment of a Credit Union Supervisor who shall have knowledge in the theory and practice of, or experience in, the operations or supervision of financial institutions, preferably credit unions, and such other persons as are necessary to carry out his functions. The Secretary shall ensure that all examiners appointed or assigned to examine the affairs of State-chartered credit unions possess the necessary training and continuing education to effectively execute their jobs. opinion of the Secretary, a credit union is engaged or has engaged, or the Secretary has reasonable cause to believe the credit union is about to engage, in an unsafe or unsound practice, or is violating or has violated or the Secretary has reasonable cause to believe is about to violate a law, rule, or regulation or any condition imposed in writing by the Department. further participation in any manner in the conduct of the affairs of any credit union any director, officer, or committee member who has committed any violation of a law, rule, or regulation or of a cease and desist order or who has engaged or participated in any unsafe or unsound practice in connection with the credit union or who has committed or engaged in any act, omission, or practice which constitutes a breach of his fiduciary duty as such director, officer, or committee member, when the Secretary has determined that such action or actions have resulted or will result in substantial financial loss or other damage that seriously prejudices the interests of the members. provided that: objective facts and an accurate assessment of applicable legal standards, that the credit union has: rule adopted in accordance with this Act, or any order of the Secretary issued pursuant to his or her authority under this Act; or unsound practice; item (6), the Secretary must make the further reasonable determination, based on objective facts and an accurate assessment of applicable legal standards, that the credit union's action constituting a violation under subparagraph (i) of paragraph (A) of this item (6) or an unsafe and unsound practice under subparagraph (ii) of paragraph (A) of this item (6): material financial loss or created a reasonable probability that a substantial and material financial loss will directly result; or material breach of fiduciary duty of any director, officer, or committee member of the credit union; paragraph (B), shall be assessed in light of surrounding circumstances and the relative size and nature of the financial loss or probable financial loss. Certain benchmarks shall be used in determining whether financial loss is material, such as a percentage of total assets or total gross income for the immediately preceding 12-month period. Absent compelling and extraordinary circumstances, no civil penalty shall be assessed, unless the financial loss or probable financial loss is equal to or greater than either 1% of the credit union's total assets for the immediately preceding 12-month period, or 1% of the credit union's total gross income for the immediately preceding 12-month period, whichever is less; item (6), the credit union must be expressly advised in writing of the: to a penalty under this item (6); and within a specific and reasonable time frame to avoid imposition of the penalty; shall be remedial, not punitive, and reasonably tailored to ensure future compliance by the credit union with the provisions of this Act and any rules adopted pursuant to this Act; remedial action with respect to the specific violation may result in the issuance of an order assessing a civil penalty up to the following maximum amount, based upon the total assets of the credit union: $10 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 $10 million and less than $50 million . . . . . . . . . . . . . . . . . . . $2,500 $50 million and less than $100 million . . . . . . . . . . . . . . . . . . $5,000 $100 million and less than $500 million . . . . . . . . . . . . . . . . $10,000 $500 million and less than $1 billion . . . . . . . . . . . . . . . . . . $25,000 and greater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000; and item (6) shall take effect upon service of the order, unless the credit union makes a written request for a hearing under 38 Ill. Adm. Code 190.20 of the Department's rules for credit unions within 90 days after issuance of the order; in that event, the order shall be stayed until a final administrative order is entered. separately addressed in rules as authorized under item (7) of this Section. prescribe, by rule and regulation, fees and penalties for preparing, approving, and filing reports and other documents; furnishing transcripts; holding hearings; investigating applications for permission to organize, merge, or convert; failure to maintain accurate books and records to enable the Department to conduct an examination; and taking supervisory actions. and records of any credit union in his possession or under his control after the expiration of three years from the date of cancellation of the charter of such credit unions. and studies and to publish some of the problems of persons in obtaining credit at reasonable rates of interest and of the methods and benefits of cooperative saving and lending for such persons. developmental, demonstration, or pilot projects by public or private organizations including credit unions which: unions so as to provide members an opportunity to use and control their own money to improve their economic and social conditions; or their members and the people of the State of Illinois. administrative activities with, but not limited to, the NCUA, other state credit union regulatory agencies and industry trade associations in order to promote more effective and efficient supervision of Illinois chartered credit unions. the Secretary shall not: organized under this Act for unsafe or unsound banking practices solely because the entity provides or has provided financial services to a cannabis-related legitimate business; credit union from providing financial services to a cannabis-related legitimate business solely because the entity provides or has provided financial services to a cannabis-related legitimate business; union not to offer financial services to an account holder or to downgrade or cancel the financial services offered to an account holder solely because: producer, or is the owner, operator, or employee of a cannabis-related legitimate business; or operator of a cannabis-related legitimate business; or account holder is the owner or operator of a cannabis-related legitimate business; and action on a loan made to an owner or operator of: solely because the owner or operator owns or operates a cannabis-related legitimate business; or to a cannabis-related legitimate business solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related legitimate business.
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