[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 4036 Considered and Passed Senate (CPS)]
111th CONGRESS
2d Session
S. 4036
To clarify the National Credit Union Administration authority to make
stabilization fund expenditures without borrowing from the Treasury.
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IN THE SENATE OF THE UNITED STATES
December 16, 2010
Mr. Dodd introduced the following bill; which was read twice,
considered, read the third time, and passed
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A BILL
To clarify the National Credit Union Administration authority to make
stabilization fund expenditures without borrowing from the Treasury.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. STABILIZATION FUND.
(a) Additional Advances.--Section 217(c)(3) of the Federal Credit
Union Act (12 U.S.C. 1790e(c)(3)) is amended by inserting before the
period at the end the following: ``and any additional advances''.
(b) Assessments.--Section 217 of the Federal Credit Union Act (12
U.S.C. 1790e) is amended by striking subsection (d) and inserting the
following:
``(d) Assessment Authority.--
``(1) Assessments relating to expenditures under subsection
(b).--In order to make expenditures, as described in subsection
(b), the Board may assess a special premium with respect to
each insured credit union in an aggregate amount that is
reasonably calculated to make any pending or future expenditure
described in subsection (b), which premium shall be due and
payable not later than 60 days after the date of the
assessment. In setting the amount of any assessment under this
subsection, the Board shall take into consideration any
potential impact on credit union earnings that such an
assessment may have.
``(2) Special premiums relating to repayments under
subsection (c)(3).--Not later than 90 days before the scheduled
date of each repayment described in subsection (c)(3), the
Board shall set the amount of the upcoming repayment and shall
determine whether the Stabilization Fund will have sufficient
funds to make the repayment. If the Stabilization Fund is not
likely to have sufficient funds to make the repayment, the
Board shall assess with respect to each insured credit union a
special premium, which shall be due and payable not later than
60 days after the date of the assessment, in an aggregate
amount calculated to ensure that the Stabilization Fund is able
to make the required repayment.
``(3) Computation.--Any assessment or premium charge for an
insured credit union under this subsection shall be stated as a
percentage of its insured shares, as represented on the
previous call report of that insured credit union. The
percentage shall be identical for each insured credit union.
Any insured credit union that fails to make timely payment of
the assessment or special premium is subject to the procedures
and penalties described under subsections (d), (e), and (f) of
section 202.''.
SEC. 2. EQUITY RATIO.
Section 202(h)(2) of the Federal Credit Union Act (12 U.S.C.
1782(h)(2)) is amended by striking ``when applied to the Fund,'' and
inserting ``which shall be calculated using the financial statements of
the Fund alone, without any consolidation or combination with the
financial statements of any other fund or entity,''.
SEC. 3. NET WORTH DEFINITION.
Section 216(o)(2) of the Federal Credit Union Act (12 U.S.C.
1790d(o)(2)) is amended to read as follows:
``(2) Net worth.--The term `net worth'--
``(A) with respect to any insured credit union,
means the retained earnings balance of the credit
union, as determined under generally accepted
accounting principles, together with any amounts that
were previously retained earnings of any other credit
union with which the credit union has combined;
``(B) with respect to any insured credit union,
includes, at the Board's discretion and subject to
rules and regulations established by the Board,
assistance provided under section 208 to facilitate a
least-cost resolution consistent with the best
interests of the credit union system; and
``(C) with respect to a low-income credit union,
includes secondary capital accounts that are--
``(i) uninsured; and
``(ii) subordinate to all other claims
against the credit union, including the claims
of creditors, shareholders, and the Fund.''.
SEC. 4. STUDY OF NATIONAL CREDIT UNION ADMINISTRATION.
(a) Study.--The Comptroller General of the United States shall
conduct a study of the National Credit Union Administration's
supervision of corporate credit unions and implementation of prompt
corrective action.
(b) Issues to Be Studied.--In conducting the study required under
subsection (a), the Comptroller General shall-
(1) determine the reasons for the failure of any corporate
credit union since 2008;
(2) evaluate the adequacy of the National Credit Union
Administration's response to the failures of corporate credit
unions, including with respect to protecting taxpayers,
avoiding moral hazard, minimizing the costs of resolving such
corporate credit unions, and the ability of insured credit
unions to bear any assessments levied to cover such costs;
(3) evaluate the effectiveness of implementation of prompt
corrective action by the National Credit Union Administration
for both insured credit unions and corporate credit unions; and
(4) examine whether the National Credit Union
Administration has effectively implemented each of the
recommendations by the Inspector General of the National Credit
Union Administration in its Material Loss Review Reports, and,
if not, the adequacy of the National Credit Union
Administration's reasons for not implementing such
recommendation.
(c) Report to Council.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall submit a report on
the results of the study required under this section to--
(1) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(2) the Committee on Financial Services of the House of
Representatives; and
(3) the Financial Stability Oversight Council.
(d) Council Report of Action.--Not later than 6 months after the
date of receipt of the report from the Comptroller General under
subsection (c), the Financial Stability Oversight Council shall submit
a report to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives on actions taken in response to the report, including
any recommendations issued to the National Credit Union Administration
under section 120 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5330).
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