Removing Barriers Blog

CU Appraisal, Prize-Linked Savings Legislation Enacted in Illinois
Posted July 29, 2015 by CUNA Advocacy

Yesterday, Illinois became the 15th state to permit credit unions to conduct prize linked savings raffles when Governor Bruce Rauner signed H 2477, which amends the state gaming laws to make clear that savings promotion raffles are not considered gambling. The Illinois Credit Union League-championed measure also amends the state rule to mirror changes that the NCUA recently made providing that no appraisal is required when a renewal, refinancing, or restructuring of an existing loan is performed, provided that no new monies are advanced other than funds necessary to cover reasonable closing costs, or there has been no obvious material change in the market conditions or physical aspect of the real estate that threatens the adequacy of the credit union’s real estate collateral protection after the transaction, even with the advancement of new monies.