Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Ill. league obtains 1.4M reg. fee holiday for CUs
NAPERVILLE, Ill. (1/13/11)--All 290 Illinois state-chartered credit unions are seeing a boost to their bottom lines in 2011. That is because they received a holiday on their 2010 fourth-quarter regulatory fee, which would otherwise be due in January to the Illinois Division of Financial Institutions (DFI). They will also receive a partial holiday on their 2011 first quarter fees to be paid to the regulatory agency in April. In total, an aggregate credit of $1,452,256 will be received by Illinois state-chartered credit unions. The fee holiday was a result of legislation initiated by the Illinois Credit Union League (ICUL) to implement the court-approved settlement of a regulatory fee case filed against the state in 2004. Under the terms of the settlement, state-chartered credit unions, banks, savings banks and savings and loan associations received a cash payment from the state in June 2009. The represents a credit for the overpayment in regulatory fees made under former Gov. Rod Blagojevich’s fee escalation and transfer (“sweep”) budgetary arrangement adopted by the state in its fiscal years 2004 through 2006. The settlement was signed into law by Governor Patrick Quinn, effective April 6, 2009. The 2009 legislation implementing the settlement accomplished two other goals. It codified a rate reduction in regulatory fees on a permanent basis commencing Jan. 1, 2009. It also reduced the credit union fund margin that triggers a credit back to credit unions. The credit union fund is the dedicated fund into which regulatory fees are deposited to offset the ordinary administrative and operational expenses of the DFI Credit Union Section in supervising state-chartered credit unions. It is structured as an operating account, not a savings account. To ensure adherence to that objective, the league’s legislation reduced the margin level from 50% to 25%. When the balance in the credit union fund at the end of a state fiscal year exceeds 25% of the expenses incurred by the state in administering the Illinois Credit Union Act and related laws, the excess must be credited back to the credit unions that paid the fees. “We are happy to report that the margin threshold has been surpassed for the state’s fiscal year ending June 30, 2010, which means that state-chartered credit unions are entitled to a credit,” said Stephen Olson, ICUL executive vice president, general counsel and chief operating officer. Olson added that the amount of the credit is determined on a proportionate basis, by taking into account the regulatory fee paid by a particular credit union versus the aggregate amount of all fees collected by DFI from state-chartered credit unions.


RSS





print
News Now LiveWire
#NewsNow: @CUNA-CFA survey results suggest 3-3.5% increase in holiday spending. http://t.co/GjcDvvwfzy
9 hours ago
.@WOCCU promoted financial inclusion as a sustainable development goal at two separate @UN events this month.
10 hours ago
Colo. authorities OK first-ever #marijuana-focused CU #NewsNow http://t.co/77qj6O3bcu
10 hours ago
.@Vancity busts some Black Friday retail myths http://t.co/q8Wht3CcRc
10 hours ago
Things get hairy at #creditunions during #Movember http://t.co/Hc6tYRMSY8
12 hours ago