[Congressional Record Volume 156, Number 173 (Wednesday, December 22, 2010)]
[House]
[Pages H8975-H8976]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     CLARIFYING THE NATIONAL CREDIT UNION ADMINISTRATION AUTHORITY

  Mr. KLEIN of Florida. Madam Speaker, I ask unanimous consent that the 
Committee on Financial Services be discharged from further 
consideration of the bill (S. 4036) to clarify the National Credit 
Union Administration authority to make stabilization fund expenditures 
without borrowing from the Treasury, and ask for its immediate 
consideration in the House.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  The text of the bill is 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 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,

[[Page H8976]]

     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).

  The bill was ordered to be read a third time, was read the third 
time, and passed, and a motion to reconsider was laid on the table.

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