    [United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 111-382
    111th Congress

    An Act

    To clarify the National Credit Union Administration authority to make
    stabilization fund expenditures without borrowing from the
    Treasury. <>

    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

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    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.

    [[Page 4136]]

    (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).

    Approved January 4, 2011.

    LEGISLATIVE HISTORY--S. 4036:
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    CONGRESSIONAL RECORD, Vol. 156 (2010):
    Dec. 16, considered and passed Senate.
    Dec. 22, considered and passed House.