Sec. 23. Compensation of officials.

348 words·~2 min read·/il/chapter-205/act-305/23

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

(1)Directors and committee members may receive reasonable compensation for their service as such, the amount of which shall be set by the board of directors, in accordance with written policies and procedures established by the board of directors. If the Department determines the payment of director or committee member compensation, or both, creates a safety and soundness issue for a credit union, the Department shall utilize the standards set forth in 38 Ill. Adm. Code 190.25 and supplemental guidelines to address and resolve the issue. An enforcement action taken pursuant to 38 Ill. Adm. Code 190.25 and guidelines and specified by the Act shall be used to reduce or suspend the compensation paid to the directors and committee members. "Compensation" as used in this subsection

(1)refers to remuneration expense to the credit union for services provided by a director or committee member in his or her capacity as director or committee member. The remuneration expense is in the form of monetary payments and shall be disclosed on an annual basis to the membership in the financial statement that is part of the annual membership meeting materials. The disclosure shall contain:

(i)the amount paid to each director and

(ii)the amount paid to the directors as a group. "Compensation" does not include any of the expenses described in subsections

(2)and

(3)of this Section.

(2)The credit union may incur the expense of providing reasonable life, health, accident, and similar insurance protection benefits for directors and committee members.

(3)Directors, committee members and employees, while on official business of the credit union, may be reimbursed for reasonable and necessary expenses. Alternatively, the credit union may make direct payment to a third party for such business expenses. Reasonable and necessary expenses may include the payment of travel costs for the foregoing officials and one guest per official. All payment of costs shall be made in accordance with written policies and procedures established by the board of directors.

(4)The board of directors may establish compensation for officers of the credit union.