Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 190 - ILLINOIS CREDIT UNION ACT
Subpart C - PAYDAY LOANS
Section 190.610 - Issuance of Payday Loans by Credit Unions
Universal Citation: 38 IL Admin Code ยง 190.610
Current through Register Vol. 48, No. 12, March 22, 2024
a) A credit union making a payday loan shall satisfactorily address all safety and soundness considerations identified by the Division in its examination and supervision of the credit union. Safety and soundness considerations include, without limitation:
1) Risk-management practices for payday loan
activities, particularly with regard to concentrations of payday
loans;
2) Capital adequacy,
depending on the level and volatility of risk;
3) Allowance for loan losses to ensure the
allowance is adequate to absorb estimated credit losses within the payday loan
portfolio;
4) Classification of
payday loans, given the unsecured nature of the credit and weakness of
repayment capacity inherent in payday loans; and
5) The establishment and maintenance of
extension, deferral, renewal and rewrite standards consistent with the
PLRA.
b) In the event the Division determines the credit union's management of safety and soundness risks relating to its payday loan portfolio is deficient, the Division may initiate informal or formal corrective enforcement action, pursuant to the applicable administrative enforcement provisions set forth in the Illinois Credit Union Act and this Part.
Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
