[Congressional Record Volume 156, Number 167 (Thursday, December 16, 2010)]
[Senate]
[Pages S10364-S10365]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CLARIFYING THE NATIONAL CREDIT UNION ADMINISTRATION AUTHORITY
Mr. DORGAN. Madam President, I ask unanimous consent that the Senate
proceed to the immediate consideration of S. 4036 introduced earlier
today.
The PRESIDING OFFICER. The clerk will report the bill by title.
The bill clerk read as follows:
A bill (S. 4036) to clarify the National Credit Union
Administration authority to make stabilization funding
expenditures without borrowing from the Treasury.
There being no objection, the Senate proceeded to consider the bill.
Mr. DORGAN. Madam President, I ask unanimous consent that the bill be
read three times and passed, the motion to reconsider be laid upon the
table, with no intervening action or debate, and any statements
relating to the bill be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (S. 4036) was ordered to be engrossed for a third reading,
was read the third time, and passed, as follows:
S. 4036
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
[[Page S10365]]
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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