NAPERVILLE, Ill. (12/18/12)--For the third straight year, Illinois state-chartered credit unions will receive a credit of more than $1.051 million toward regulatory fees paid to the state for the fourth quarter, the Illinois Credit Union League announced Friday.
The credit is expected to be slightly less than the 2012 fourth-quarter billing for credit union regulatory fees.
The credit is the result of legislation that implemented a court-approved settlement of a regulatory fee case filed by the league against then-Gov. Rod Blagojevich in 2004.
The settlement was signed into law by Gov. Patrick Quinn in 2009.
Under the terms of the settlement, Illinois state-chartered credit unions received a $6.2 million cash payment from the state in June 2009. The payment represented a credit for the overpayment in regulatory fees made under the Blagojevich administration's fee escalation and transfer ("sweep") budgetary arrangement adopted by the state in its fiscal years 2004 through 2006.
The 2009 legislation that implemented the settlement also accomplished two other goals, according to Stephen Olson, ICUL executive vice president and general counsel. First, it codified a rate reduction in regulatory fees. Second, it reduced the Credit Union Fund margin that triggers a credit back to Illinois state-chartered credit unions.
Regulatory fees are deposited into the Credit Union Fund to offset the ordinary administrative and operational expenses of the Department of Financial Institutions' Credit Union Section in supervising state-chartered credit unions.