[Congressional Record Volume 168, Number 188 (Monday, December 5, 2022)]
[Senate]
[Page S6964]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. PADILLA (for himself and Mr. Cramer):
S. 5183. A bill to amend the Federal Credit Union Act to provide a
sunset for certain ways in which credit unions may be Agent members of
the National Credit Union Administration Central Liquidity Facility; to
the Committee on Banking, Housing, and Urban Affairs.
Mr. PADILLA. Mr. President, I rise to speak in support of the bill
that I introduced today to help ensure the financial stability of
smaller credit unions.
Congress created the Central Liquidity Facility in 1978 to improve
the general financial stability of credit unions by serving as a
liquidity lender to credit unions experiencing unusual or unexpected
liquidity shortfalls.
Unfortunately, under current law, smaller credit unions often do not
have access to the critical tool that could help them address liquidity
shortfalls, especially amid higher interest rates.
That is why I am proud to introduce this bipartisan legislation with
Senator Cramer to allow corporate credit unions to buy Central
Liquidity Facility capital stock for a chosen subset of its members
rather than all of its members for the next 5 years. This would provide
greater flexibility for smaller unions to use the Central Liquidity
Facility's services.
I hope my colleagues will join me in support of this bill to meet the
needs of our Nation's 5,000 credit unions and the communities they
serve.
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