Friday, January 25, 2013

Illinois CU Fined for Violating MBL Rules

Gas and Electric Credit Union of Rock Island was fined by the Illinois Department of Financial and Professional Regulation Division for Financial Institutions for violating the state's member business loan regulations.

The state regulator found that the credit union had improperly granted two business loans to a member of the credit union, in an aggregate amount of $120,125, without having a member business loan policy or experienced member business lending personnel as required by the state's rules.

The credit union was hit with a Document of Resolution requiring the credit union to divest the two business loans.

A special examination found that the credit union had failed to divest the loans as required by the remedial order and the credit union was assessed a fine of $5,000 for each violation.

Read the order.

1 comment:

  1. Does NCUA have the authority to fine a credit union for breaking the rules? Maybe I have a selective memory but I can't recall that ever happening.



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