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Illinois DFI credits CUs 23 on first-quarter fees
NAPERVILLE, Ill. (4/14/11)--A credit of more than 23% is being reflected on Illinois’ state-chartered credit unions’ April regulatory fee invoice for first quarter from the Illinois Division of Financial Institutions (DFI). The credit reflects a partial holiday resulting from a remaining amount due to credit unions after a total holiday on their 2010 fourth-quarter regulatory fee, which would otherwise have been paid in January to the DFI. An aggregate credit of nearly $1.5 million will be received by Illinois-chartered credit unions. The Illinois Credit Union League’s (ICUL) legislation to implement the court-approved settlement of the regulatory fee case it filed against the state in 2004 was signed into law by Gov. Patrick Quinn, effective April 6, 2009. Under the terms of the settlement, state-chartered credit unions received a cash payment from the state in June 2009, in the aggregate amount of $6.2 million. The payment represented a credit for the overpayment in regulatory fees made under former Gov. Rod Blagojevich’s administration fee escalation and transfer (“sweep”) budgetary arrangement adopted by the state in its fiscal years 2004 through 2006. The 2009 legislation implementing the settlement also accomplished two other goals. It codified a rate reduction in regulatory fees going forward, commencing Jan. 1, 2009, and 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 that objective was met, the legislation reduced the margin level to 25% from 50%. 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 to the credit unions that paid the fees. “The environment for Illinois credit unions continues to be challenging,” said Dan Plauda, ICUL president/CEO. “As we enter the second quarter of the year, this credit is a welcome boost to their bottom line, as they continue to serve their members in this highly competitive marketplace.”


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