[Congressional Record Volume 145, Number 155 (Friday, November 5, 1999)]
[Senate]
[Page S14090]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SESSIONS (for himself and Mr. Dodd):
  S. 1872. A bill to amend the Federal Credit Union Act with respect to 
the definition of a member business loan; to the Committee on Banking, 
Housing, and Urban Affairs.


                    faith based lending legislation

  Mr. SESSIONS. Mr. President, I rise today to introduce legislation 
with my colleagues, Senator Chris Dodd, which will support the work of 
over 600 religious organization based credit unions in the U.S. Many of 
these credit unions provide an essential source of financing for 
churches, religious schools, mission agencies, and related community 
projects such as homeless shelters, drug intervention facilities, and 
homes for abused women and children.
  Some of these credit unions rely on other credit unions to fund their 
loans to religious organizations through loan participation agreements. 
these loan participation agreements are classified as business loans 
and are counted against the member business loan caps that credit 
unions must abide by as a result of the Credit Union Membership Access 
Act signed into law last year. Consequently, the exemption for credit 
unions having a history of business lending contained in that act 
though well intended, doesn't solve the problem because religious 
organizations based CUs will not be able to sell loans to other credit 
unions who will have to count these faith based loans toward their 
business lending cap.
  The sale of loan participations is a necessary first step before any 
of these loans can be originated. the legislation I am introducing 
along with Senator Dodd will allow the approximately 600 religious 
organization based credit unions in America to exempt from loan 
participations those loans they originate to religious non-profit 
organizations. In doing so, our bill will assure a steady source of 
capital for these organizations and community based missions.
  Finally, Mr. President, I would like remind my colleagues that 
religious organization based credit unions enjoy a long history of safe 
lending and encourage them join Senator Dodd and me in passing this 
legislation. No other credit union program will do more to help the 
poor, the homeless, the disabled and those otherwise in need.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no object, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1872

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

     SECTION 1. MEMBER BUSINESS LOAN EXCEPTION.

       Section 107a(c)(1)(B) of the Federal Credit Union Act (12 
     U.S.C. 1757a(c)(1)(B)) is amended--
       (1) in clause (iv), by striking ``or'' at the end;
       (2) in clause (v), by striking the period and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(vi) that is made to a nonprofit religious 
     organization.''.
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