WASHINGTON (7/29/15 UPDATED 1:30 p.m. ET)--In another state legislative victory that CUNA and the Illinois Credit Union League (ICUL) say underscores the value of the CUNA-league structure in advocating for credit unions, Illinois Gov. Bruce Rauner signed HB 2477 into law Tuesday. The bill modernizes the state’s credit union rule on appraisals and allows credit unions and other financial institutions to offer prize-linked savings accounts.
"The Illinois Credit Union League is pleased that Governor Rauner has signed HB 2477 into law," said Ashley Niebur, ICUL’s director of state governmental affairs. "The bill's passage ensures that the Illinois Credit Union Act is in parity with federal law and Illinois credit unions are able to operate in the most efficient manner to serve their members. The passage of the bill underscores the importance of the League's advocacy efforts and their direct benefit to our credit unions and their members."
HB 2477 goes into effect Jan. 1, 2016.
The appraisals section of the bill mirrors recent CUNA-backed changes on appraisals made by the National Credit Union Administration. The NCUA rule and HB 2477 remove a requirement for a new appraisal if it involves an existing extension of credit, under certain conditions.
An appraisal is not required when a renewal, refinancing or restructuring of an existing loan is performed. This is provided no new monies are advanced other than funds necessary to cover reasonable closing costs, or there has been no obvious material change in the market conditions or real estate that threatens the adequacy of the credit union’s collateral protection after the transaction, even with the advancement of new monies.
The Illinois bill also provides that a credit union may act as a representative of and enter into an agreement with credit unions or other organizations for the purposes of providing implementation and administrative support services related to the use of debit cards, payroll debit cards and other prepaid debit cards and credit cards.
Also with the passage of HB 2477, Illinois becomes the 15th state to allow financial institutions to offer prize-linked savings accounts. These accounts encourage members to save by offering them a chance to win cash each time they deposit a set amount of money into their savings.
For related reading see "N.H. is newest success in CU recodification laws."