Sec. 2. Organization procedure.

526 words·~2 min read·/il/chapter-205/act-305/2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Any 9 or more persons of legal age, the majority of whom shall be residents of the State of Illinois, who have a common bond referred to in Section 1.1 may organize a credit union or a central credit union by complying with this Section.

(2)The subscribers shall execute in duplicate Articles of Incorporation and agree to the terms thereof, which Articles shall state:

(a)The name, which shall include the words "credit union" and which shall not be the

same as that of any other existing credit union in this state, and the location where the proposed credit union is to have its principal place of business;

(b)The common bond of the members of the credit union;

(c)The par value of the shares of the credit union, which must be at least $1;

(d)The names, addresses and Social Security numbers of the subscribers to the Articles

of Incorporation, and the number and the value of shares subscribed to by each;

(e)That the credit union may exercise such incidental powers as are necessary or

requisite to enable it to carry on effectively the purposes for which it is incorporated, and those powers which are inherent in the credit union as a legal entity;

(f)That the existence of the credit union shall be perpetual.

(3)The subscribers shall prepare and adopt bylaws for the general governance of the credit union, consistent with this Act, and execute same in duplicate. If there is a conflict, inconsistency, or variation between the terms of this Act and the provisions in the bylaws adopted by the credit union, the terms of this Act shall control. A conflict, inconsistency, or variation may not be deemed to exist if the Act specifically requires that a particular matter shall be adopted in the bylaws.

(4)The subscribers shall forward the articles of incorporation and the bylaws to the Secretary in duplicate, along with the required charter fee. If they conform to the law, and such rules and regulations as the Secretary and the Director may prescribe, if the Secretary determines that a common bond exists, and that it is economically advisable to organize the credit union, he or she shall within 60 days issue a certificate of approval attached to the articles of incorporation and return a copy of the bylaws and the articles of incorporation to the applicants or their representative, which shall be preserved in the permanent files of the credit union. The subscribers shall file the certificate of approval, with the articles of incorporation attached, in the office of the recorder (or, if there is no recorder, in the office of the county clerk) of the county in which the credit union is to locate its principal place of business. The recorder or the county clerk, as the case may be, shall accept and record the documents if they are accompanied by the proper fee. When the documents are so recorded, the credit union is incorporated under this Act.

(5)The subscribers for a credit union charter shall not transact any business until the certificate of approval has been received.