a) A credit union with total assets of $1 million or less may, upon resolution of the Board of Directors, request permission of the Division to offer share drafts to their members provided that:
- 1) the total assets of the credit union are at a sufficient level to support the additional costs of the program;
- 2) shares are insured by NCUA or other approved insurance programs;
- 3) the credit union has full time management or is serviced by a center with full time management;
- 4) has automated record keeping or is serviced by a center with such equipment; and
- 5) the financial trends of the credit union, including, but not limited to, the loan delinquency, liquidity, reserves, expense and growth ratios, demonstrate the credit union's ability to manage safely a Share Draft Program.
- b) The Division will respond to all applications within 30 days after receipt. If the application is not approved, the disapproval will identify the financial and/or operation characteristics which must be improved before re-application can be made.
- c) A credit union with total assets greater than $1 million may, upon resolution of the Board of Directors, offer share drafts to its members without permission of the Division.
- d) If dividends on the proposed share draft accounts are to be paid at a different rate or calculated on a basis different from existing common share accounts, then in accordance with Section 37 of the Illinois Credit Union Act [205 ILCS 305/37], the share drafts must be established as a class of share.
(Source: Amended at 30 Ill. Reg. 18919, effective December 4, 2006)