[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.


_______________________________________________________________________


                   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

_______________________________________________________________________

                                 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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