[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1367 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1367

  To amend the Federal Home Loan Bank Act with respect to membership 
                  eligibility of certain institutions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2015

  Mr. Donnelly (for himself and Mr. Portman) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Home Loan Bank Act with respect to membership 
                  eligibility of certain institutions.

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

SECTION 1. PRIVATELY INSURED CREDIT UNIONS AUTHORIZED TO BECOME MEMBERS 
              OF A FEDERAL HOME LOAN BANK.

    (a) In General.--Section 4(a) of the Federal Home Loan Bank Act (12 
U.S.C. 1424(a)) is amended by adding at the end the following:
            ``(5) Certain privately insured credit unions.--
                    ``(A) In general.--Subject to the requirements of 
                subparagraph (B), a credit union that lacks insurance 
                of its member accounts under Federal law shall be 
                treated as an insured depository institution for 
                purposes of this Act.
                    ``(B) Certification by appropriate state 
                supervisor.--For purposes of this paragraph, a credit 
                union that lacks insurance of its member accounts under 
                Federal law and that has applied for membership in a 
                Federal home loan bank shall be treated as an insured 
                depository institution if the following has occurred:
                            ``(i) Determination by state supervisor of 
                        the credit union.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the appropriate 
                                supervisor of the State in which the 
                                credit union is chartered has 
                                determined that the credit union meets 
                                all the eligibility requirements under 
                                section 201(a) of the Federal Credit 
                                Union Act (12 U.S.C. 1781(a)) to apply 
                                for insurance of its member accounts as 
                                of the date of the application for 
                                membership.
                                    ``(II) Certification deemed 
                                valid.--In the case of any credit union 
                                to which subclause (I) applies, if the 
                                appropriate supervisor of the State in 
                                which such credit union is chartered 
                                fails to make the determination 
                                required pursuant to such subclause by 
                                the end of the 12-month period 
                                beginning on the date on which the 
                                application is submitted to the 
                                supervisor, the credit union shall be 
                                deemed to have met the requirements of 
                                subclause (I).
                            ``(ii) Determination by state supervisor of 
                        the private deposit insurer.--The licensing 
                        entity of the private deposit insurer that is 
                        insuring the member accounts of the credit 
                        union--
                                    ``(I) receives, on an annual basis, 
                                an independent actuarial opinion that 
                                the private insurer has set aside 
                                sufficient reserves for losses; and
                                    ``(II) obtains, as frequently as 
                                appropriate, but not less frequently 
                                than every 36 months, an independent 
                                actuary's study of the capital adequacy 
                                of the private insurer.
                            ``(iii) Submission of financial 
                        information.--The credit union or the 
                        appropriate supervisor of the State in which 
                        such credit union is chartered makes available, 
                        and continues to make available for such time 
                        as the credit union is a member of a Federal 
                        home loan bank, to the Federal Housing Finance 
                        Agency or to the Federal home loan bank all 
                        reports, records, and other information related 
                        to any examinations or inquiries performed by 
                        the supervisor concerning the financial 
                        condition of the credit union, as soon as is 
                        practicable.
                    ``(C) Security interests of federal home loan bank 
                not avoidable.--Notwithstanding any provision of State 
                law authorizing a conservator or liquidating agent of a 
                credit union to repudiate contracts, no such provision 
                shall apply with respect to--
                            ``(i) any extension of credit from any 
                        Federal home loan bank to any credit union that 
                        is a member of any such bank pursuant to this 
                        paragraph; or
                            ``(ii) any security interest in the assets 
                        of such a credit union securing any such 
                        extension of credit.
                    ``(D) Protection for certain federal home loan bank 
                advances.--Notwithstanding any State law to the 
                contrary, if a Bank makes an advance under section 10 
                to a State-chartered credit union that is not federally 
                insured--
                            ``(i) the Bank's interest in any collateral 
                        securing the advance has the same priority and 
                        is afforded the same standing and rights that 
                        the security interest would have had if the 
                        advance had been made to a federally insured 
                        credit union; and
                            ``(ii) the Bank has the same right to 
                        access such collateral that the Bank would have 
                        had if the advance had been made to a federally 
                        insured credit union.''.
    (b) Copies of Audits of Private Insurers of Certain Depository 
Institutions Required To Be Provided to Supervisory Agencies.--Section 
43(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1831t(a)(2)(A)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting a semicolon; and
            (3) by inserting at the end the following:
                            ``(iii) in the case of depository 
                        institutions described in subsection (e)(2)(A), 
                        the member accounts of which are insured by the 
                        private deposit insurer, which are members of a 
                        Federal home loan bank, to the Federal Housing 
                        Finance Agency, not later than 7 days after the 
                        audit is completed.''.
    (c) GAO Report.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall conduct a study and submit a report to Congress--
            (1) on the adequacy of insurance reserves held by a private 
        deposit insurer that insures the member accounts of an entity 
        described in section 43(e)(2)(A) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1831t(e)(2)(A)); and
            (2) for an entity described in paragraph (1), the member 
        accounts of which are insured by a private deposit insurer, 
        information on the level of compliance with Federal regulations 
        relating to the disclosure of a lack of Federal deposit 
        insurance.
                                 <all>