Illinois Credit Union Act Modernized: Governor Signs ICUL-backed Bill into Law

Libby Calderone

The Illinois Credit Union League (ICUL) is proud to announce that its proposed amendments to the Illinois Credit Union Act (Senate Bill 1994 have been signed into law by Governor Pritzker, enacting important, member-focused updates that will strengthen the operating environment for credit unions across Illinois.

The enactment of SB 1994 follows extensive advocacy by ICUL’s team in Springfield, working in close collaboration with state legislators and regulatory partners to ensure the Act evolves alongside the needs of today’s credit unions and the communities they serve.

“These changes reflect our ongoing commitment to modernizing the statutory framework under which Illinois credit unions operate,” said Libby Calderone, President/CEO of the Illinois Credit Union League. “By proactively updating the Illinois Credit Union Act, we ensure our credit unions—regardless of size—have the tools they need to thrive while continuing to uphold the highest standards of service and member protection.”

Highlights of SB 1994 include:

• Protecting Vulnerable Members: Authorizes the sharing of information with trusted advisors designated on member accounts to help prevent financial exploitation.
• Regulatory Relief for Small Credit Unions: Provides audit relief for credit unions with assets under $10 million.
• Flexible Governance: Allows highly rated credit unions to opt for a quarterly meeting
• schedule, provided specified qualifications are met.
• Election Clarity: Clarifies members' ability to vote in person by ballot.
• Improved Merger Efficiency: Enables an accelerated merger process in cases involving safety and soundness concerns, with agreement by the involved credit unions and the Department of Financial and Professional Regulation (IDFPR).

“This enactment underscores the power of collective advocacy,” said Ashley Sharp, SVP State Advocacy and Legislative Counsel. “We are proud that Illinois regularly updates its Credit Union Act to reflect the realities of today’s financial environment, and we thank the General Assembly, Governor, and our regulatory partners for their support in making these improvements a reality.”

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