[Congressional Record (Bound Edition), Volume 156 (2010), Part 15]
[Senate]
[Page 22330]
[From the U.S. 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 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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