Illinois § 34.1

§ 34.1.

Compliance review. (a) As used in this Section: "Affiliate" means an organization established to serve the needs of credit unions, the business of which relates to the daily operations of credit unions. "Compliance review committee" means: (1) one or more persons appointed by the management, board of directors, or supervisory committee of a credit union for the purposes set forth in subsection (b); or (2) any other person to the extent the person acts in an investigatory capacity at the direction of a compliance review committee. "Compliance review documents" means documents prepared in connection with a review or evaluation conducted by or for a compliance review committee. "Person" means an individual, a group of individuals, a board committee, a partnership, a firm, an association, a corporation, or any other entity. (b) This Section applies to compliance review committees whose functions are to evaluate and seek to improve any of the following: (1) loan policies or underwriting standards; (2) asset quality; (3) financial reporting to federal or State governmental or regulatory agencies; or (4) compliance with federal or State statutory or regulatory requirements. (c) Except as provided in subsection (d), compliance review documents and the deliberations of the compliance review committee are privileged and confidential and are nondiscoverable and nonadmissible. (1) Compliance review documents are privileged and confidential and are not subject to discovery or admissible in evidence in any civil action. (2) Individuals serving on compliance review committees or acting under the direction of a compliance review committee shall not be required to testify in any civil action about the contents of any compliance review document or conclusions of any compliance review committee or about the actions taken by a compliance review committee. (3) An affiliate of a credit union, a credit union regulatory agency, and the insurer of credit union share accounts shall have access to compliance review documents, provided that (i) the documents shall remain confidential and are not subject to discovery from such entity and (ii) delivery of compliance review documents to an affiliate or pursuant to the requirements of a credit union regulatory agency or an insurer of credit union share accounts shall not constitute a waiver of the privilege granted in this Section. (d) This Section does not apply to: (1) compliance review committees on which individuals serving on or at the direction of the compliance review committee have management responsibility for the operations, records, employees, or activities being examined or evaluated by the compliance review committee and (2) any civil or administrative action initiated by a credit union regulatory agency or an insurer of credit union share accounts. (e) This Section shall not be construed to limit the discovery or admissibility in any civil action of any documents other than compliance review documents or to require the appointment of a compliance review committee. (Source: P.A. 100-201, eff. 8-18-17; 100-361, eff. 8-25-17.)