[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2317 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2317

  To modernize credit union net worth standards, advance credit union 
 efforts to promote economic growth, and modify and ease credit union 
       regulatory standards and burdens, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 2005

 Mr. Royce (for himself, Mr. Kanjorski, Mr. LaTourette, Mrs. Maloney, 
 Mr. Tancredo, Mr. Sanders, Mr. Boehlert, Mr. Gutierrez, Mr. Burton of 
  Indiana, Mr. Case, Mr. Brown of South Carolina, Ms. Jackson-Lee of 
 Texas, Mr. Paul, Mr. Chabot, Mr. Cannon, Mr. Cunningham, Mr. Kuhl of 
  New York, and Mr. Sherman) introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To modernize credit union net worth standards, advance credit union 
 efforts to promote economic growth, and modify and ease credit union 
       regulatory standards and burdens, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Credit Union Regulatory Improvements 
Act of 2005''.

                        TITLE I--CAPITAL REFORM

SEC. 101. AMENDMENTS TO NET WORTH CATEGORIES.

    Section 216(c)(1) of the Federal Credit Union Act (12 U.S.C. 
1790d(c)(1)) is amended as follows:
            (1) Well capitalized.--
                    (A) In subparagraph (A)(i), by striking ``7 
                percent'' and inserting ``5 percent''.
                    (B) In subparagraph (A)(ii), by striking ``it meets 
                any applicable risk-based net worth requirement under 
                subsection (d) of this section'' and inserting ``it has 
                a risk-based net worth ratio of not less than 8 
                percent''.
            (2) Adequately capitalized.--
                    (A) In subparagraph (B)(i), by striking ``6 
                percent'' and inserting ``4 percent''.
                    (B) In subparagraph (B)(ii), by striking ``it meets 
                any applicable risk-based net worth requirement under 
                subsection (d) of this section'' and inserting ``it has 
                a risk-based net worth ratio of not less than 8 
                percent''.
            (3) Under capitalized.--
                    (A) In subparagraph (C)(i), by striking ``6 
                percent'' and inserting ``4 percent''.
                    (B) In subparagraph (C)(ii), by striking ``it fails 
                to meet any applicable risk-based net worth requirement 
                under subsection (d)'' and inserting ``it has a risk-
                based net worth ratio of less than 8 percent''.
            (4) Significantly undercapitalized.--
                    (A) In that portion of subparagraph (D) that 
                precedes clause (i), by inserting ``if'' after 
                ```significantly undercapitalized'''.
                    (B) In subparagraph (D)(i)--
                            (i) by striking ``if'';
                            (ii) by striking ``4 percent'' and 
                        inserting ``3 percent''; and
                            (iii) by striking ``or'' after the 
                        semicolon.
                    (C) By striking clause (ii) of subparagraph (D) and 
                inserting the following new clauses:
                            ``(ii) the insured credit union has a risk-
                        based net worth ratio of less than 6 percent; 
                        or
                            ``(iii) the insured credit union has a net 
                        worth ratio of less than 4 percent, and--
                                    ``(I) fails to submit an acceptable 
                                net worth restoration plan within the 
                                time allowed under subsection (f); or
                                    ``(II) materially fails to 
                                implement a net worth restoration plan 
                                accepted by the Board.''.
            (5) Relevant capital measures.--Section 216(c)(2) is 
        amended by striking ``leverage limit'' and inserting ``relevant 
        capital measures''.

SEC. 102. AMENDMENTS RELATING TO RISK-BASED NET WORTH REQUIREMENTS.

    (a) In General.--Section 216(d) of the Federal Credit Union Act (12 
U.S.C. 1790d(d)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``that are complex, as defined by 
                the Board''; and
                    (B) by inserting ``, as defined by the Board'' 
                before the period at the end; and
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) Standard.--The Board shall design the risk-based net 
        worth requirement in relation to risk assets, as defined by the 
        Board, to take account of any material risks to insured credit 
        unions, based on comparable standards for taking into account 
        material risks to insured depository institutions under the 
        Federal Deposit Insurance Act that are applicable to credit 
        unions.''.
    (b) Technical and Conforming Amendment.--The heading for subsection 
(d) of section 216 of the Federal Credit Union Act (12 U.S.C. 1790d(d)) 
is amended by striking ``for Complex Credit Unions''.

SEC. 103. TREATMENT BASED ON OTHER CRITERIA.

    Section 216(h)(2) of the Federal Credit Union Act (12 U.S.C. 
1790d(h)(2)) is amended by inserting ``, except to reclassify an 
insured credit union into the next lower net worth category, based on 
interest rate risk, to the extent any such reclassification by a 
delegatee may be reviewed by the Board,'' after ``to reclassify an 
insured credit union into a lower net worth category''.

SEC. 104. DEFINITIONS RELATING TO NET WORTH.

    (a) Net Worth.--Section 216(o)(2) of the Federal Credit Union Act 
(12 U.S.C. 1790d(o)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``the'' before ``retained earnings 
                balance''; and
                    (B) by inserting ``, together with any amounts that 
                were previously retained earnings of any other credit 
                union with which the credit union has combined'' before 
                the semicolon at the end; and
            (2) in subparagraph (B), by inserting ``, subject to 
        paragraph (6),'' after ``includes''.
    (b) Secondary Capital Accounts.--Section 216(o) of the Federal 
Credit Union Act (12 U.S.C. 1790d(o)) is amended by adding at the end 
the following new paragraph:
            ``(6) Secondary capital accounts for purposes of 
        determining net worth.--The Board may establish, by regulation, 
        the following limitations on the secondary capital accounts 
        that may be included for purposes of determining the net worth 
        of any low-income credit union pursuant to paragraph (2)(B):
                    ``(A) A limitation on the initial maturity of any 
                such account.
                    ``(B) A reduction or limitation on the net worth 
                valuation of any such account based on the remaining 
                period to maturity.
                    ``(C) Any other limitation the Board determines to 
                be appropriate, for safety and soundness purposes, with 
                respect to credit unions that are not defined as small 
                credit unions by the Board.''.
    (c) Net Worth Ratio.--Paragraph (3) of section 216(o) of the 
Federal Credit Union Act (12 U.S.C. 1790d(o)(3)) is amended--
            (1) by inserting ``minus the credit union's deposit in the 
        Fund'' after ``net worth of the credit union''; and
            (2) by inserting ``minus the credit union's deposit in the 
        Fund'' after ``total assets of the credit union''.
    (d) Risk-Based Net Worth Ratio.--Section 216(o) of the Federal 
Credit Union Act (12 U.S.C. 1790d)(o)) is amended by inserting after 
paragraph (4) the following new paragraph:
            ``(5) Risk-based net worth ratio.--The term `risk-based net 
        worth ratio' means, with respect to any credit union, the ratio 
        of--
                    ``(A) the sum of the amount of the net worth of the 
                credit union and the amount of the loan loss reserves 
                held by the credit union (subject to such limits on the 
                extent to which loan loss reserves may be taken into 
                account for purposes of determining such ratio as the 
                Board may prescribe), minus the amount of the credit 
                union's deposit in the Fund; to
                    ``(B) the amount of the risk assets of the credit 
                union,
        as defined by the Board by regulation.''.

SEC. 105. AMENDMENTS RELATING TO NET WORTH RESTORATION PLANS.

    (a) Short-Term Waiver of Requirement for Net Worth Restoration Plan 
Allowed Under Certain Circumstances.--
            (1) In general.--Subsection (f) of section 216 of the 
        Federal Credit Union Act (12 U.S.C. 1790d(f)) is amended by 
        adding at the end the following new paragraph:
            ``(6) Short-term waiver for certain marginally 
        undercapitalized credit unions.--The Board may, by order on a 
        case-by-case basis, waive the applicability of the requirement 
        for an undercapitalized credit union to submit an acceptable 
        net worth restoration plan to the Board if the Board determines 
        that--
                    ``(A) the loss of adequately capitalized status by 
                the credit union is growth-related;
                    ``(B) the credit union is only marginally 
                undercapitalized; and
                    ``(C) the credit union will only remain 
                undercapitalized for a relatively short period of 
                time.''.
            (2) Technical and conforming amendment.--Paragraph (1) of 
        section 216(f) of the Federal Credit Union Act (12 U.S.C. 
        1790d(f)(1)) is amended by inserting ``(other than a credit 
        union for which an order under paragraph (6) is in effect)'' 
        after ``credit union that is undercapitalized''.
    (b) Treatment of Approval of Plan.--Paragraph (2) of section 216(e) 
of the Federal Credit Union Act (12 U.S.C. 1790d(e)(2)) is amended by 
inserting ``, or approve a net worth restoration plan of such credit 
union that by its terms provides for such a decrease,'' after ``to a 
credit union''.
    (c) Board Action May Include Order to Credit Union.--Subparagraph 
(B) of section 216(i)(1) of the Federal Credit Union Act (12 U.S.C. 
1790d(i)(1)(B)) is amended--
            (1) by inserting ``, in the discretion of the Board,'' 
        after ``as the Board''; and
            (2) by inserting ``including issuing an order to the credit 
        union requiring the credit union to take action that the Board 
        determines would achieve such purpose,'' after ``the purpose of 
        this section,''.
    (d) Substitution of 3-Month Period for Calendar Quarter.--
Subparagraph (A) of section 216(i)(3) of the Federal Credit Union Act 
(12 U.S.C. 1790d(i)(3)(A)) is amended--
            (1) by striking ``calendar quarter'' and inserting ``3-
        month period''; and
            (2) by inserting ``first'' after ``the date on which the 
        credit union''.
    (e) Clarification of Coordination Requirement.--Clause (ii) of 
section 216(l)(3)(A) of the Federal Credit Union Act (12 U.S.C. 
1790d(l)(3)(A)) is amended by inserting ``if the Board determines that 
such action by the official will carry out the purposes of this 
section''.

                       TITLE II--ECONOMIC GROWTH

SEC. 201. LIMITS ON MEMBER BUSINESS LOANS.

    Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 
1757a(a)) is amended by striking ``the lesser of--'' and all that 
follows and inserting ``20 percent of the total assets of the credit 
union.''.

SEC. 202. DEFINITION OF MEMBER BUSINESS LOAN.

    Section 107A(c)(1)(B)(iii) of the Federal Credit Union Act (12 
U.S.C. 1757a(c)(1)(B)(iii)) is amended by striking ``$50,000'' and 
inserting ``an amount, not to exceed $100,000, that the Board shall 
prescribe by regulation''.

SEC. 203. RESTRICTION ON MEMBER BUSINESS LOANS.

    Section 216(g)(2) of the Federal Credit Union Act (12 U.S.C. 
1790d(g)(2)) is amended by striking ``until such time as the credit 
union becomes adequately capitalized'' and inserting ``unless otherwise 
approved by the Board''.

SEC. 204. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS TO NONPROFIT 
              RELIGIOUS ORGANIZATIONS.

    Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 
1757a(a)) is amended by inserting ``, excluding loans made to nonprofit 
religious organizations,'' after ``total amount of such loans''.

SEC. 205. CREDIT UNIONS AUTHORIZED TO LEASE SPACE IN BUILDINGS IN 
              CREDIT UNION OFFICES IN UNDERSERVED AREAS.

    Section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is 
amended--
            (1) by striking ``and'' at the end of paragraph (16);
            (2) by redesignating paragraph (17) as paragraph (18);
            (3) by inserting after paragraph (16) the following new 
        paragraph:
            ``(17) with regard to any building purchased or constructed 
        by the credit union for a credit union office or credit union 
        operations in an underserved area, to lease office space in 
        such building that is separate and clearly distinct from any 
        office or operation of the credit union to any business 
        enterprise, subject to such regulations the Board may 
        prescribe, taking into account the safety and soundness of the 
        credit union; and'';
            (4) in the matter preceding paragraph (1) by striking ``A 
        Federal credit union'' and inserting ``(a) In General.--Any 
        Federal credit union''; and
            (5) adding at the end the following new subsection:
    ``(c) Underserved Area Defined.--For purposes of subsection 
(a)(17), the term `underserved area' means an area consisting of 1 or 
more census tracts that have--
            ``(1) a poverty rate of 20 percent or greater, based on the 
        most recent census data; or
            ``(2) a median family income that does not exceed 80 
        percent of the greater of--
                    ``(A) the median family income for the metropolitan 
                area in which such census tract or tracts are located; 
                or
                    ``(B) the median family income for the State in 
                which such census tract or tracts are located.''.

                  TITLE III--REGULATORY MODERNIZATION

SEC. 301. LEASES OF LAND ON FEDERAL FACILITIES FOR CREDIT UNIONS.

    (a) In General.--Section 124 of the Federal Credit Union Act (12 
U.S.C. 1770) is amended--
            (1) by striking ``Upon application by any credit union'' 
        and inserting ``Notwithstanding any other provision of law, 
        upon application by any credit union'';
            (2) by inserting ``on lands reserved for the use of, and 
        under the exclusive or concurrent jurisdiction of, the United 
        States or'' after ``officer or agency of the United States 
        charged with the allotment of space'';
            (3) by inserting ``lease land or'' after ``such officer or 
        agency may in his or its discretion''; and
            (4) by inserting ``or the facility built on the leased 
        land'' after ``credit union to be served by the allotment of 
        space''.
    (b) Clerical Amendment.--The heading for section 124 is amended by 
inserting ``or on federal land'' after ``buildings''.

SEC. 302. INVESTMENTS IN SECURITIES BY FEDERAL CREDIT UNIONS.

    Section 107 of the Federal Credit Union Act (12 U.S.C. 1757) (as 
amended by section 205 of this Act) is amended by inserting after 
subsection (a) the following new subsection:
    ``(b) Investment for the Credit Union's Own Account.--
            ``(1) In general.--In addition to the investments 
        authorized in subsection (a), a Federal credit union may 
        purchase and hold for its own account such investment 
        securities of investment grade as the Board may authorize by 
        regulation, subject to such limitations and restrictions as the 
        Board may prescribe in the regulations.
            ``(2) Percentage limitations.--
                    ``(A) Single obligor.--In no event may the total 
                amount of investment securities of any single obligor 
                or maker held by a Federal credit union for the credit 
                union's own account exceed at any time an amount equal 
                to 10 percent of the net worth of the credit union.
                    ``(B) Aggregate investments.--In no event may the 
                aggregate amount of investment securities held by a 
                Federal credit union for the credit union's own account 
                exceed at any time an amount equal to 10 percent of the 
                assets of the credit union.
            ``(3) Investment security defined.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `investment security' means marketable 
                obligations evidencing the indebtedness of any person 
                in the form of bonds, notes, or debentures and other 
                instruments commonly referred to as investment 
                securities.
                    ``(B) Further definition by board.--The Board may 
                further define the term `investment security'.
            ``(4) Investment grade defined.--The term `investment 
        grade' means with respect to an investment security purchased 
        by a credit union for its own account, an investment security 
        that at the time of such purchase is rated in one of the 4 
        highest rating categories by at least 1 nationally recognized 
        statistical rating organization.
            ``(5) Clarification of prohibition on stock ownership.--No 
        provision of this subsection shall be construed as authorizing 
        a Federal credit union to purchase shares of stock of any 
        corporation for the credit union's own account, except as 
        otherwise permitted by law.''.

SEC. 303. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF FEDERAL 
              CREDIT UNION LOANS TO 15 YEARS.

    Section 107(a)(5) of the Federal Credit Union Act (12 U.S.C. 
1757(5)) (as so designated by section 205 of this Act) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``to make loans, the maturities of which shall not exceed 
        twelve years except as otherwise provided herein'' and 
        inserting ``to make loans, the maturities of which shall not 
        exceed 15 years or any longer maturity as the Board may allow, 
        in regulations, except as otherwise provided in this Act'';
            (2) in subparagraph (A)--
                    (A) by striking clause (ii);
                    (B) by redesignating clauses (iii) through (x) as 
                clauses (ii) through (ix), respectively; and
                    (C) by inserting ``and'' after the semicolon at the 
                end of clause (viii) (as so redesignated).

SEC. 304. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN CREDIT UNION 
              SERVICE ORGANIZATIONS.

    Section 107(a)(7)(I) of the Federal Credit Union Act (12 U.S.C. 
1757(7)(I)) (as so designated by section 205 of this Act) is amended by 
striking ``up to 1 per centum of the total paid'' and inserting ``up to 
3 percent of the total paid''.

SEC. 305. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED WITHIN THE 
              FIELD OF MEMBERSHIP.

    Paragraph (12) of section 107(a) of the Federal Credit Union Act 
(12 U.S.C. 1757(12)) (as so designated by 205 of this Act) is amended 
to read as follows:
            ``(12) in accordance with regulations prescribed by the 
        Board--
                    ``(A) to sell, to persons in the field of 
                membership, negotiable checks (including travelers 
                checks), money orders, and other similar money transfer 
                instruments (including international and domestic 
                electronic fund transfers); and
                    ``(B) to cash checks and money orders and receive 
                international and domestic electronic fund transfers 
                for persons in the field of membership for a fee;''.

SEC. 306. VOLUNTARY MERGERS INVOLVING MULTIPLE COMMON-BOND CREDIT 
              UNIONS.

    Section 109(d)(2) of the Federal Credit Union Act (12 U.S.C. 
1759(d)(2)) is amended--
            (1) by striking ``or'' at the end of clause (ii) of 
        subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) a merger involving any such Federal credit 
                union approved by the Board on or after August 7, 
                1998.''.

SEC. 307. CONVERSIONS OF CERTAIN CREDIT UNIONS TO A COMMUNITY CHARTER.

    Section 109(g) of the Federal Credit Union Act (12 U.S.C. 1759(g)) 
is amended by inserting after paragraph (2) the following new 
paragraph:
            ``(3) Criteria for continued membership of certain member 
        groups in community charter conversions.--In the case of a 
        voluntary conversion of a credit union described in paragraph 
        (1) or (2) of subsection (b) into a community credit union 
        described in subsection (b)(3), the Board shall prescribe, by 
        regulation, the criteria under which the Board may determine 
        that a member group or other portion of a credit union's 
        existing membership, that is located outside the well-defined 
        local community, neighborhood, or rural district that shall 
        constitute the community charter, can be satisfactorily served 
        by the credit union and remain within the community credit 
        union's field of membership permitting new members to be added 
        from such groups.''.

SEC. 308. CREDIT UNION GOVERNANCE.

    (a) Expulsion of Members for Just Cause.--Subsection (b) of section 
118 of the Federal Credit Union Act (12 U.S.C. 1764(b)) is amended to 
read as follows:
    ``(b) Policy and Actions of Boards of Directors of Federal Credit 
Unions.--
            ``(1) Expulsion of members for nonparticipation or for just 
        cause.--The board of directors of a Federal credit union may, 
        by majority vote of a quorum of directors, adopt and enforce a 
        policy with respect to expulsion from membership, by a majority 
        vote of such board of directors, based on just cause, including 
        disruption of credit union operations, or on nonparticipation 
        by a member in the affairs of the credit union.
            ``(2) Written notice of policy to members.--If a policy 
        described in paragraph (1) is adopted, written notice of the 
        policy as adopted and the effective date of such policy shall 
        be provided to--
                    ``(A) each existing member of the credit union not 
                less than 30 days prior to the effective date of such 
                policy; and
                    ``(B) each new member prior to or upon applying for 
                membership.''.
    (b) Term Limits Authorized for Board Members of Federal Credit 
Unions.--Section 111(a) of the Federal Credit Union Act (12 U.S.C. 
1761(a)) is amended by adding at the end the following new sentence: 
``The bylaws of a Federal credit union may limit the number of 
consecutive terms any person may serve on the board of directors of 
such credit union.''.
    (c) Reimbursement for Lost Wages Due to Service on Credit Union 
Board not Treated as Compensation.--Section 111(c) of the Federal 
Credit Union Act (12 U.S.C. 1761(c)) is amended by inserting ``, 
including lost wages,'' after ``the reimbursement of reasonable 
expenses''.

SEC. 309. PROVIDING THE NATIONAL CREDIT UNION ADMINISTRATION WITH 
              GREATER FLEXIBILITY IN RESPONDING TO MARKET CONDITIONS.

    Section 107(a)(5)(A)(vi)(I) of the Federal Credit Union Act (12 
U.S.C. 1757(5)(A)(vi)(I)) (as so designated and amended by sections 205 
and 303 of this Act) is amended by striking ``six-month period and that 
prevailing interest rate levels'' and inserting ``6-month period or 
that prevailing interest rate levels''.

SEC. 310. CREDIT UNION CONVERSION VOTING REQUIREMENTS.

    Section 205(b)(2)(B) of the Federal Credit Union Act (12 U.S.C. 
1785(b)(2)(B)) is amended by inserting ``, in a vote in which at least 
20 percent of the credit union membership participates'' before the 
period at the end.

SEC. 311. EXEMPTION FROM PRE-MERGER NOTIFICATION REQUIREMENT OF THE 
              CLAYTON ACT.

    Section 7A(c)(7) of the Clayton Act (15 U.S.C. 18a(c)(7)) is 
amended by inserting ``section 205(b)(3) of the Federal Credit Union 
Act (12 U.S.C. 1785(b)(3)),'' before ``or section 3''.

SEC. 312. TREATMENT OF CREDIT UNIONS AS BANKS UNDER SECURITIES LAWS.

    (a) Definition of Bank Under the Securities Exchange Act of 1934.--
Section 3(a)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(6)) is amended--
            (1) by striking ``this title, and (D) a receiver'' and 
        inserting ``this title, (D) an insured credit union (as defined 
        in section 101(7) of the Federal Credit Union Act) but only for 
        purposes of paragraphs (4) and (5) of this subsection and only 
        for activities otherwise authorized by applicable laws to which 
        such credit unions are subject, and (E) a receiver''; and
            (2) in subparagraph (E) (as so redesignated by paragraph 
        (1) of this subsection) by striking ``(A), (B), or (C)'' and 
        inserting ``(A), (B), (C), or (D)''.
    (b) Definition of Bank Under the Investment Advisers Act of 1940.--
Section 202(a)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 
80b-2(a)(2)) is amended--
            (1) by striking ``this title, and (D) a receiver'' and 
        inserting ``this title, (D) an insured credit union (as defined 
        in section 101(7) of the Federal Credit Union Act) but only for 
        activities otherwise authorized by applicable laws to which 
        such credit unions are subject, and (E) a receiver''; and
            (2) in subparagraph (E) (as so redesignated by paragraph 
        (1) of this subsection) by striking ``(A), (B), or (C)'' and 
        inserting ``(A), (B), (C), or (D)''.
    (c) Definition of Appropriate Federal Banking Agency Under the 
Securities Exchange Act of 1934.--Section 3(a)(34) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c(a)(34)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``and'' at the end of clause (iii);
                    (B) by redesignating clause (iv) as clause (v); and
                    (C) by inserting the following new clause after 
                clause (iii):
                            ``(iv) the National Credit Union 
                        Administration Board, in the case of an insured 
                        credit union (as defined in section 101(7) of 
                        the Federal Credit Union Act) or a subsidiary 
                        or a department or division of any such insured 
                        credit union; and'';
            (2) in subparagraph (B)--
                    (A) by striking ``and'' at the end of clause (iii);
                    (B) by redesignating clause (iv) as clause (v); and
                    (C) by inserting the following new clause after 
                clause (iii):
                            ``(iv) the National Credit Union 
                        Administration Board, in the case of an insured 
                        credit union (as defined in section 101(7) of 
                        the Federal Credit Union Act) or a subsidiary 
                        of any such insured credit union; and'';
            (3) in subparagraph (C)--
                    (A) by striking ``and'' at the end of clause (iii);
                    (B) by redesignating clause (iv) as clause (v); and
                    (C) by inserting the following new clause after 
                clause (iii):
                            ``(iv) the National Credit Union 
                        Administration Board, in the case of an insured 
                        credit union (as defined in section 101(7) of 
                        the Federal Credit Union Act) or a subsidiary 
                        of any such insured credit union; and'';
            (4) in subparagraph (D)--
                    (A) by striking ``and'' at the end of clause (ii);
                    (B) by redesignating clause (iii) as clause (iv); 
                and
                    (C) by inserting the following new clause after 
                clause (ii):
                            ``(iii) the National Credit Union 
                        Administration Board, in the case of an insured 
                        credit union (as defined in section 101(7) of 
                        the Federal Credit Union Act); and''; and
            (5) in subparagraph (F)--
                    (A) by redesignating clauses (ii), (iii), and (iv) 
                as clauses (iii), (iv), and (v), respectively; and
                    (B) by inserting the following new clause after 
                clause (i):
                            ``(ii) the National Credit Union 
                        Administration Board, in the case of an insured 
                        credit union (as defined in section 101(7) of 
                        the Federal Credit Union Act);''.
    (d)  Definition of Appropriate Federal Banking Agency Under the 
Investment Advisers Act of 1940.--Section 210A(c) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b-10a(c)) is amended by inserting 
``and includes the National Credit Union Administration Board, in the 
case of an insured credit union (as defined in section 101(7) of the 
Federal Credit Union Act)'' before the period at the end.
                                 <all>