Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 190 - ILLINOIS CREDIT UNION ACT
Subpart A - GENERAL PROVISIONS
Section 190.90 - Fixed Asset Investments
Current through Register Vol. 48, No. 12, March 22, 2024
a) Definitions
"Fixed assets" means premises and furniture, fixtures and equipment, as those terms are defined in this Section:
"Premises" includes any office, branch office, suboffice, service center, parking lot, other facility, or real estate where the credit union transacts or will transact business.
"Furniture, fixtures and equipment" includes all office furnishings, office machines, computer hardware and software, automated terminals, and heating and cooling equipment.
"Investment in fixed assets" means:
any investment in real property (improved or unimproved) that is being used or is intended to be used as premises, excluding premises leased for five years or less;
any leasehold improvement on premises;
the present value of the aggregate of all capital lease payments pursuant to lease agreements for fixed assets, excluding lease payments for premises leased for five years or less;
any investment in the bonds, stock, debentures, or other obligations of a partnership or corporation or limited liability entity, including a credit union service organization, holding any fixed assets used by the credit union and any loans to that partnership or corporation or limited liability entity; and
any investment in furniture, fixtures and equipment.
"Retained earnings" includes undivided earnings, regular reserve, other reserves, and any other appropriations designated by management or regulatory authorities.
b) Investment in Fixed Assets
c) Credit unions with assets of less than $1,000,000 seeking to invest in premises must submit to the Division an application for approval. The application for approval must contain the following minimum supporting documentation:
d) The Division shall respond to applications for approval of fixed asset investments as follows:
e) A credit union that has received approval for a specific fixed asset transaction from the Division prior to the date of promulgation of amendments to this Section shall continue to be eligible to consummate the transaction after the date of promulgation, without further Division approval.
f) In recording all transactions for fixed assets, GAAP shall be followed.