[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1151 Enrolled Bill (ENR)]
H.R.1151
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
eight
An Act
To amend the Federal Credit Union Act to clarify existing law with
regard to the field of membership of Federal credit unions, to preserve
the integrity and purpose of Federal credit unions, to enhance
supervisory oversight of insured credit unions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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(a) Short Title.--This Act may be cited as the ``Credit Union
Membership Access Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

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5344b3192735d677660905c542f28e8a8fa789fe6c0ce49d0a9cd91c7a723436

TITLE I

-CREDIT UNION MEMBERSHIP

0315c09d8ac7e19d6ea4e22064542fa52eae2bd0137c26494914fb19cc2e0d16

TITLE II

-REGULATION OF CREDIT UNIONS

available assets ratio, and standby premium charge.

ea65ebef1aa8ea2d9f94c90f8bcea5a8a6aa85424dc54181db05154d9854f2e8

TITLE III

-CAPITALIZATION AND NET WORTH OF CREDIT UNIONS

8b47f40c2f5e605fe5ddcf54e1dfd7c849b85c1c80bb1dc55ca97d10613a97d8

TITLE IV

-MISCELLANEOUS PROVISIONS

The Congress finds the following:
(1) The American credit union movement began as a cooperative
effort to serve the productive and provident credit needs of
individuals of modest means.
(2) Credit unions continue to fulfill this public purpose, and
current members and membership groups should not face divestiture
from the financial services institution of their choice as a result
of recent court action.
(3) To promote thrift and credit extension, a meaningful
affinity and bond among members, manifested by a commonality of
routine interaction, shared and related work experiences,
interests, or activities, or the maintenance of an otherwise well-
understood sense of cohesion or identity is essential to the
fulfillment of the public mission of credit unions.
(4) Credit unions, unlike many other participants in the
financial services market, are exempt from Federal and most State
taxes because they are member-owned, democratically operated, not-
for-profit organizations generally managed by volunteer boards of
directors and because they have the specified mission of meeting
the credit and savings needs of consumers, especially persons of
modest means.
(5) Improved credit union safety and soundness provisions will
enhance the public benefit that citizens receive from these
cooperative financial services institutions.

440cfb5ac7511e7d29696e4d2db980f43c2520b332aebdf1ebc605d6927ec5d9

As used in this Act--
(1) the term ``Administration'' means the National Credit Union
Administration;
(2) the term ``Board'' means the National Credit Union
Administration Board;
(3) the term ``Federal banking agencies'' has the same meaning
as in section 3 of the Federal Deposit Insurance Act;
(4) the terms ``insured credit union'' and ``State-chartered
insured credit union'' have the same meanings as in section 101 of
the Federal Credit Union Act; and
(5) the term ``Secretary'' means the Secretary of the Treasury.

02c2e98606df17ac770a475e9d3ffbdc4c4de1be3a5da75ad475701c537beff9

Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is
amended--
(1) in the first sentence--
(A) by striking ``Federal credit union membership shall
consist of'' and inserting ``(a) In General.--Subject to
subsection (b), Federal credit union membership shall consist
of''; and
(B) by striking ``, except that'' and all that follows
through ``rural district''; and
(2) by adding at the end the following new subsections:
``(b) Membership Field.--Subject to the other provisions of this
section, the membership of any Federal credit union shall be limited to
the membership described in one of the following categories:
``(1) Single common-bond credit union.--One group that has a
common bond of occupation or association.
``(2) Multiple common-bond credit union.--More than one group--
``(A) each of which has (within the group) a common bond of
occupation or association; and
``(B) the number of members, each of which (at the time the
group is first included within the field of membership of a
credit union described in this paragraph) does not exceed any
numerical limitation applicable under subsection (d).
``(3) Community credit union.--Persons or organizations within
a well-defined local community, neighborhood, or rural district.
``(c) Exceptions.--
``(1) Grandfathered members and groups.--
``(A) In general.--Notwithstanding subsection (b)--
``(i) any person or organization that is a member of
any Federal credit union as of the date of enactment of the
Credit Union Membership Access Act may remain a member of
the credit union after that date of enactment; and
``(ii) a member of any group whose members constituted
a portion of the membership of any Federal credit union as
of that date of enactment shall continue to be eligible to
become a member of that credit union, by virtue of
membership in that group, after that date of enactment.
``(B) Successors.--If the common bond of any group referred
to in subparagraph (A) is defined by any particular
organization or business entity, subparagraph (A) shall
continue to apply with respect to any successor to the
organization or entity.
``(2) Exception for underserved areas.--Notwithstanding
subsection (b), in the case of a Federal credit union, the field of
membership category of which is described in subsection (b)(2), the
Board may allow the membership of the credit union to include any
person or organization within a local community, neighborhood, or
rural district if--
``(A) the Board determines that the local community,
neighborhood, or rural district--
``(i) is an `investment area', as defined in section
103(16) of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4703(16)), and meets
such additional requirements as the Board may impose; and
``(ii) is underserved, based on data of the Board and
the Federal banking agencies (as defined in section 3 of
the Federal Deposit Insurance Act), by other depository
institutions (as defined in section 19(b)(1)(A) of the
Federal Reserve Act); and
``(B) the credit union establishes and maintains an office
or facility in the local community, neighborhood, or rural
district at which credit union services are available.
``(d) Multiple Common-Bond Credit Union Group Requirements.--
``(1) Numerical limitation.--Except as provided in paragraph
(2), only a group with fewer than 3,000 members shall be eligible
to be included in the field of membership category of a credit
union described in subsection (b)(2).
``(2) Exceptions.--In the case of any Federal credit union, the
field of membership category of which is described in subsection
(b)(2), the numerical limitation in paragraph (1) of this
subsection shall not apply with respect to--
``(A) any group that the Board determines, in writing and
in accordance with the guidelines and regulations issued under
paragraph (3), could not feasibly or reasonably establish a new
single common-bond credit union, the field of membership
category of which is described in subsection (b)(1) because--
``(i) the group lacks sufficient volunteer and other
resources to support the efficient and effective operation
of a credit union;
``(ii) the group does not meet the criteria that the
Board has determined to be important for the likelihood of
success in establishing and managing a new credit union,
including demographic characteristics such as geographical
location of members, diversity of ages and income levels,
and other factors that may affect the financial viability
and stability of a credit union; or
``(iii) the group would be unlikely to operate a safe
and sound credit union;
``(B) any group transferred from another credit union--
``(i) in connection with a merger or consolidation
recommended by the Board or any appropriate State credit
union supervisor based on safety and soundness concerns
with respect to that other credit union; or
``(ii) by the Board in the Board's capacity as
conservator or liquidating agent with respect to that other
credit union; or
``(C) any group transferred in connection with a voluntary
merger, having received conditional approval by the
Administration of the merger application prior to October 25,
1996, but not having consummated the merger prior to October
25, 1996, if the merger is consummated not later than 180 days
after the date of enactment of the Credit Union Membership
Access Act.
``(3) Regulations and guidelines.--The Board shall issue
guidelines or regulations, after notice and opportunity for
comment, setting forth the criteria that the Board will apply in
determining under this subsection whether or not an additional
group may be included within the field of membership category of an
existing credit union described in subsection (b)(2).
``(e) Additional Membership Eligibility Provisions.--
``(1) Membership eligibility limited to immediate family or
household members.--No individual shall be eligible for membership
in a credit union on the basis of the relationship of the
individual to another person who is eligible for membership in the
credit union, unless the individual is a member of the immediate
family or household (as those terms are defined by the Board, by
regulation) of the other person.
``(2) Retention of membership.--Except as provided in section
118, once a person becomes a member of a credit union in accordance
with this title, that person or organization may remain a member of
that credit union until the person or organization chooses to
withdraw from the membership of the credit union.''.

714d2818a98814171da7e8704738376375faeb05482691e8fd33ea449cd8872c

COMMON-BOND CREDIT UNIONS.
Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is
amended by adding at the end the following new subsection:
``(f) Criteria for Approval of Expansion of Multiple Common-Bond
Credit Unions.--
``(1) In general.--The Board shall--
``(A) encourage the formation of separately chartered
credit unions instead of approving an application to include an
additional group within the field of membership of an existing
credit union whenever practicable and consistent with
reasonable standards for the safe and sound operation of the
credit union; and
``(B) if the formation of a separate credit union by the
group is not practicable or consistent with the standards
referred to in subparagraph (A), require the inclusion of the
group in the field of membership of a credit union that is
within reasonable proximity to the location of the group
whenever practicable and consistent with reasonable standards
for the safe and sound operation of the credit union.
``(2) Approval criteria.--The Board may not approve any
application by a Federal credit union, the field of membership
category of which is described in subsection (b)(2) to include any
additional group within the field of membership of the credit union
(or an application by a Federal credit union described in
subsection (b)(1) to include an additional group and become a
credit union described in subsection (b)(2)), unless the Board
determines, in writing, that--
``(A) the credit union has not engaged in any unsafe or
unsound practice (as defined in section 206(b)) that is
material during the 1-year period preceding the date of filing
of the application;
``(B) the credit union is adequately capitalized;
``(C) the credit union has the administrative capability to
serve the proposed membership group and the financial resources
to meet the need for additional staff and assets to serve the
new membership group;
``(D) any potential harm that the expansion of the field of
membership of the credit union may have on any other insured
credit union and its members is clearly outweighed in the
public interest by the probable beneficial effect of the
expansion in meeting the convenience and needs of the members
of the group proposed to be included in the field of
membership; and
``(E) the credit union has met such additional requirements
as the Board may prescribe, by regulation.''.

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Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is
amended by adding at the end the following new subsection:
``(g) Regulations Required for Community Credit Unions.--
``(1) Definition of well-defined local community, neighborhood,
or rural district.--The Board shall prescribe, by regulation, a
definition for the term `well-defined local community,
neighborhood, or rural district' for purposes of--
``(A) making any determination with regard to the field of
membership of a credit union described in subsection (b)(3);
and
``(B) establishing the criteria applicable with respect to
any such determination.
``(2) Scope of application.--The definition prescribed by the
Board under paragraph (1) shall apply with respect to any
application to form a new credit union, or to alter or expand the
field of membership of an existing credit union, that is filed with
the Board after the date of enactment of the Credit Union
Membership Access Act.''.

ce223884fde88e880dcad86d7a5e9bd6a6c4376a7cadc4392a031b1f277932a4

(a) In General.--Section 202(a)(6) of the Federal Credit Union Act
(12 U.S.C. 1782(a)(6)) is amended by adding at the end the following
new subparagraphs:
``(C) Accounting principles.--
``(i) In general.--Accounting principles applicable to
reports or statements required to be filed with the Board
by each insured credit union shall be uniform and
consistent with generally accepted accounting principles.
``(ii) Board determination.--If the Board determines
that the application of any generally accepted accounting
principle to any insured credit union is not appropriate,
the Board may prescribe an accounting principle for
application to the credit union that is no less stringent
than generally accepted accounting principles.
``(iii) De minimus exception.--This subparagraph shall
not apply to any insured credit union, the total assets of
which are less than $10,000,000, unless prescribed by the
Board or an appropriate State credit union supervisor.
``(D) Large credit union audit requirement.--
``(i) In general.--Each insured credit union having
total assets of $500,000,000 or more shall have an annual
independent audit of the financial statements of the credit
union, performed in accordance with generally accepted
auditing standards by an independent certified public
accountant or public accountant licensed by the appropriate
State or jurisdiction to perform those services.
``(ii) Voluntary audits.--If a Federal credit union
that is not required to conduct an audit under clause (i),
and that has total assets of more than $10,000,000 conducts
such an audit for any purpose, using an independent auditor
who is compensated for his or her audit services with
respect to that audit, the audit shall be performed
consistent with the accountancy laws of the appropriate
State or jurisdiction, including licensing requirements.''.
(b) Technical and Conforming Amendment.--Section 202(a)(6)(B) of
the Federal Credit Union Act (12 U.S.C. 1782(a)(6)(B)) is amended by
striking ``subparagraph (A)'' and inserting ``subparagraph (A) or
(D)''.

b6b465053282ce13f0f0c445bf11467a3a765b321effa61528c1ff710049a93b

Section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b))
is amended--
(1) in paragraph (1), by striking ``Except with the prior
written approval of the Board, no insured credit union shall'' and
inserting ``Except as provided in paragraph (2), no insured credit
union shall, without the prior approval of the Board'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following new
paragraph:
``(2) Conversion of insured credit unions to mutual savings
banks.--
``(A) In general.--Notwithstanding paragraph (1), an
insured credit union may convert to a mutual savings bank or
savings association (if the savings association is in mutual
form), as those terms are defined in section 3 of the Federal
Deposit Insurance Act, without the prior approval of the Board,
subject to the requirements and procedures set forth in the
laws and regulations governing mutual savings banks and savings
associations.
``(B) Conversion proposal.--A proposal for a conversion
described in subparagraph (A) shall first be approved, and a
date set for a vote thereon by the members (either at a meeting
to be held on that date or by written ballot to be filed on or
before that date), by a majority of the directors of the
insured credit union. Approval of the proposal for conversion
shall be by the affirmative vote of a majority of the members
of the insured credit union who vote on the proposal.
``(C) Notice of proposal to members.--An insured credit
union that proposes to convert to a mutual savings bank or
savings association under subparagraph (A) shall submit notice
to each of its members who is eligible to vote on the matter of
its intent to convert--
``(i) 90 days before the date of the member vote on the
conversion;
``(ii) 60 days before the date of the member vote on
the conversion; and
``(iii) 30 days before the date of the member vote on
the conversion.
``(D) Notice of proposal to board.--The Board may require
an insured credit union that proposes to convert to a mutual
savings bank or savings association under subparagraph (A) to
submit a notice to the Board of its intent to convert during
the 90-day period preceding the date of the completion of the
conversion.
``(E) Inapplicability of act upon conversion.--Upon
completion of a conversion described in subparagraph (A), the
credit union shall no longer be subject to any of the
provisions of this Act.
``(F) Limit on compensation of officials.--
``(i) In general.--No director or senior management
official of an insured credit union may receive any
economic benefit in connection with a conversion of the
credit union as described in subparagraph (A), other than--
``(I) director fees; and
``(II) compensation and other benefits paid to
directors or senior management officials of the
converted institution in the ordinary course of
business.
``(ii) Senior management official.--For purposes of
this subparagraph, the term `senior management official'
means a chief executive officer, an assistant chief
executive officer, a chief financial officer, and any other
senior executive officer (as defined by the appropriate
Federal banking agency pursuant to section 32 (f) of the
Federal Deposit Insurance Act).
``(G) Consistent rules.--
``(i) In general.--Not later than 6 months after the
date of enactment of the Credit Union Membership Access
Act, the Administration shall promulgate final rules
applicable to charter conversions described in this
paragraph that are consistent with rules promulgated by
other financial regulators, including the Office of Thrift
Supervision and the Office of the Comptroller of the
Currency. The rules required by this clause shall provide
that charter conversion by an insured credit union shall be
subject to regulation that is no more or less restrictive
than that applicable to charter conversions by other
financial institutions.
``(ii) Oversight of member vote.--The member vote
concerning charter conversion under this paragraph shall be
administered by the Administration, and shall be verified
by the Federal or State regulatory agency that would have
jurisdiction over the institution after the conversion. If
either the Administration or that regulatory agency
disapproves of the methods by which the member vote was
taken or procedures applicable to the member vote, the
member vote shall be taken again, as directed by the
Administration or the agency.''.

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(a) In General.--The Federal Credit Union Act (12 U.S.C. 1701 et
seq.) is amended by inserting after section 107 the following new
section:
``SEC. 107A. LIMITATION ON MEMBER BUSINESS LOANS.
``(a) In General.--On and after the date of enactment of this
section, no insured credit union may make any member business loan that
would result in a total amount of such loans outstanding at that credit
union at any one time equal to more than the lesser of--
``(1) 1.75 times the actual net worth of the credit union; or
``(2) 1.75 times the minimum net worth required under section
216(c)(1)(A) for a credit union to be well capitalized.
``(b) Exceptions.--Subsection (a) does not apply in the case of--
``(1) an insured credit union chartered for the purpose of
making, or that has a history of primarily making, member business
loans to its members, as determined by the Board; or
``(2) an insured credit union that--
``(A) serves predominantly low-income members, as defined
by the Board; or
``(B) is a community development financial institution, as
defined in section 103 of the Community Development Banking and
Financial Institutions Act of 1994.
``(c) Definitions.--As used in this section--
``(1) the term `member business loan'--
``(A) means any loan, line of credit, or letter of credit,
the proceeds of which will be used for a commercial, corporate
or other business investment property or venture, or
agricultural purpose; and
``(B) does not include an extension of credit--
``(i) that is fully secured by a lien on a 1- to 4-
family dwelling that is the primary residence of a member;
``(ii) that is fully secured by shares in the credit
union making the extension of credit or deposits in other
financial institutions;
``(iii) that is described in subparagraph (A), if it
was made to a borrower or an associated member that has a
total of all such extensions of credit in an amount equal
to less than $50,000;
``(iv) the repayment of which is fully insured or fully
guaranteed by, or where there is an advance commitment to
purchase in full by, any agency of the Federal Government
or of a State, or any political subdivision thereof; or
``(v) that is granted by a corporate credit union (as
that term is defined by the Board) to another credit union.
``(2) the term `net worth'--
``(A) with respect to any insured credit union, means the
credit union's retained earnings balance, as determined under
generally accepted accounting principles; and
``(B) with respect to a credit union that serves
predominantly low-income members, as defined by the Board,
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; and
``(3) the term `associated member' means any member having a
shared ownership, investment, or other pecuniary interest in a
business or commercial endeavor with the borrower.
``(d) Effect on Existing Loans.--An insured credit union that has,
on the date of enactment of this section, a total amount of outstanding
member business loans that exceeds the amount permitted under
subsection (a) shall, not later than 3 years after that date of
enactment, reduce the total amount of outstanding member business loans
to an amount that is not greater than the amount permitted under
subsection (a).
``(e) Consultation and Cooperation With State Credit Union
Supervisors.--In implementing this section, the Board shall consult and
seek to work cooperatively with State officials having jurisdiction
over State-chartered insured credit unions.''.
(b) Study and Report.--
(1) Study.--The Secretary shall conduct a study of member
business lending by insured credit unions, including--
(A) an examination of member business lending over $500,000
and under $50,000, and a breakdown of the types and sizes of
businesses that receive member business loans;
(B) a review of the effectiveness and enforcement of
regulations applicable to insured credit union member business
lending;
(C) whether member business lending by insured credit
unions could affect the safety and soundness of insured credit
unions or the National Credit Union Share Insurance Fund;
(D) the extent to which member business lending by insured
credit unions helps to meet financial services needs of low-
and moderate-income individuals within the field of membership
of insured credit unions;
(E) whether insured credit unions that engage in member
business lending have a competitive advantage over other
insured depository institutions, and if any such advantage
could affect the viability and profitability of such other
insured depository institutions; and
(F) the effect of enactment of this Act on the number of
insured credit unions involved in member business lending and
the overall amount of commercial lending.
(2) NCUA cooperation.--The National Credit Union Administration
shall, upon request, provide such information as the Secretary may
require to conduct the study required under paragraph (1).
(3) Report.--Not later than 12 months after the date of
enactment of this Act, the Secretary shall submit a report to the
Congress on the results of the study conducted under paragraph (1).

7883e62643d80eea2eba7c3c3e13391d26b79daa15b49b7fa7ea3d4a69f3269e

Section 102(b) of the Federal Credit Union Act (12 U.S.C. 1752a(b))
is amended--
(1) by striking ``(b) The Board'' and inserting ``(b)
Membership and Appointment of Board.--
``(1) In general.--The Board''; and
(2) by adding at the end the following new paragraph:
``(2) Appointment criteria.--
``(A) Experience in financial services.--In considering
appointments to the Board under paragraph (1), the President
shall give consideration to individuals who, by virtue of their
education, training, or experience relating to a broad range of
financial services, financial services regulation, or financial
policy, are especially qualified to serve on the Board.
``(B) Limit on appointment of credit union officers.--Not
more than one member of the Board may be appointed to the Board
from among individuals who, at the time of the appointment,
are, or have recently been, involved with any insured credit
union as a committee member, director, officer, employee, or
other institution-affiliated party.''.

fb0671601e7d376480c89a4b9ecdbf85794e45e054a9b7bfea302a3060221380

REGULATIONS.
A regulation prescribed by the Board shall be treated as a major
rule for purposes of chapter 8 of title 5, United States Code, if the
regulation defines, or amends the definition of--
(1) the term ``immediate family or household'' for purposes of
section 109(e)(1) of the Federal Credit Union Act (as added by
section 101 of this Act); or
(2) the term ``well-defined local community, neighborhood, or
rural district'' for purposes of section 109(g) of the Federal
Credit Union Act (as added by section 103 of this Act).

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46947353394c9a8c827730922b75f2fbd8ceff12ceaabc25dbcf4eeb25e3bb1e

AVAILABLE ASSETS RATIO, AND STANDBY PREMIUM CHARGE.
(a) In General.--Section 202 of the Federal Credit Union Act (12
U.S.C. 1782) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Certified Statement.--
``(1) Statement required.--
``(A) In general.--For each calendar year, in the case of
an insured credit union with total assets of not more than
$50,000,000, and for each semi-annual period in the case of an
insured credit union with total assets of $50,000,000 or more,
an insured credit union shall file with the Board, at such time
as the Board prescribes, a certified statement showing the
total amount of insured shares in the credit union at the close
of the relevant period and both the amount of its deposit or
adjustment of deposit and the amount of the insurance charge
due to the Fund for that period, both as computed under
subsection (c).
``(B) Exception for newly insured credit union.--
Subparagraph (A) shall not apply with respect to a credit union
that became insured during the reporting period.
``(2) Form.--The certified statements required to be filed with
the Board pursuant to this subsection shall be in such form and
shall set forth such supporting information as the Board shall
require.
``(3) Certification.--The president of the credit union or any
officer designated by the board of directors shall certify, with
respect to each statement required to be filed with the Board
pursuant to this subsection, that to the best of his or her
knowledge and belief the statement is true, correct, complete, and
in accordance with this title and the regulations issued under this
title.'';
(2) in subsection (c)(1)(A), by striking clause (iii) and
inserting the following:
``(iii) Periodic adjustment.--The amount of each
insured credit union's deposit shall be adjusted as
follows, in accordance with procedures determined by the
Board, to reflect changes in the credit union's insured
shares:
``(I) annually, in the case of an insured credit
union with total assets of not more than $50,000,000;
and
``(II) semi-annually, in the case of an insured
credit union with total assets of $50,000,000 or
more.'';
(3) in subsection (c), by striking paragraphs (2) and (3) and
inserting the following:
``(2) Insurance premium charges.--
``(A) In general.--Each insured credit union shall, at such
times as the Board prescribes (but not more than twice in any
calendar year), pay to the Fund a premium charge for insurance
in an amount stated as a percentage of insured shares (which
shall be the same for all insured credit unions).
``(B) Relation of premium charge to equity ratio of fund.--
The Board may assess a premium charge only if--
``(i) the Fund's equity ratio is less than 1.3 percent;
and
``(ii) the premium charge does not exceed the amount
necessary to restore the equity ratio to 1.3 percent.
``(C) Premium charge required if equity ratio falls below
1.2 percent.--If the Fund's equity ratio is less than 1.2
percent, the Board shall, subject to subparagraph (B), assess a
premium charge in such an amount as the Board determines to be
necessary to restore the equity ratio to, and maintain that
ratio at, 1.2 percent.
``(3) Distributions from fund required.--
``(A) In general.--The Board shall effect a pro rata
distribution to insured credit unions after each calendar year
if, as of the end of that calendar year--
``(i) any loans to the Fund from the Federal
Government, and any interest on those loans, have been
repaid;
``(ii) the Fund's equity ratio exceeds the normal
operating level; and
``(iii) the Fund's available assets ratio exceeds 1.0
percent.
``(B) Amount of distribution.--The Board shall distribute
under subparagraph (A) the maximum possible amount that--
``(i) does not reduce the Fund's equity ratio below the
normal operating level; and
``(ii) does not reduce the Fund's available assets
ratio below 1.0 percent.
``(C) Calculation based on certified statements.--In
calculating the Fund's equity ratio and available assets ratio
for purposes of this paragraph, the Board shall determine the
aggregate amount of the insured shares in all insured credit
unions from insured credit unions certified statements under
subsection (b) for the final reporting period of the calendar
year referred to in subparagraph (A).'';
(4) in subsection (c), by adding at the end the following new
paragraph:
``(4) Timeliness and accuracy of data.--In calculating the
available assets ratio and equity ratio of the Fund, the Board
shall use the most current and accurate data reasonably
available.''; and
(5) by striking subsection (h) and inserting the following:
``(h) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Available assets ratio.--The term `available assets
ratio', when applied to the Fund, means the ratio of--
``(A) the amount determined by subtracting--
``(i) direct liabilities of the Fund and contingent
liabilities for which no provision for losses has been
made, from
``(ii) the sum of cash and the market value of
unencumbered investments authorized under section 203(c),
to
``(B) the aggregate amount of the insured shares in all
insured credit unions.
``(2) Equity ratio.--The term `equity ratio', when applied to
the Fund, means the ratio of--
``(A) the amount of Fund capitalization, including insured
credit unions' 1 percent capitalization deposits and the
retained earnings balance of the Fund (net of direct
liabilities of the Fund and contingent liabilities for which no
provision for losses has been made); to
``(B) the aggregate amount of the insured shares in all
insured credit unions.
``(3) Insured shares.--The term `insured shares', when applied
to this section, includes share, share draft, share certificate,
and other similar accounts as determined by the Board, but does not
include amounts exceeding the insured account limit set forth in
section 207(c)(1).
``(4) Normal operating level.--The term `normal operating
level', when applied to the Fund, means an equity ratio specified
by the Board, which shall be not less than 1.2 percent and not more
than 1.5 percent.''.
(b) Effective Date.--This section and the amendments made by this
section shall become effective on January 1 of the first calendar year
beginning more than 180 days after the date of enactment of this Act.

9e7e8082f36f9da7effefc2b99fe2451c98319ce4de7f4526c6ecdf62d9b1b80

Section 204 of the Federal Credit Union Act (12 U.S.C. 1784) is
amended by adding at the end the following new subsections:
``(f) Access to Liquidity.--The Board shall--
``(1) periodically assess the potential liquidity needs of each
insured credit union, and the options that the credit union has
available for meeting those needs; and
``(2) periodically assess the potential liquidity needs of
insured credit unions as a group, and the options that insured
credit unions have available for meeting those needs.
``(g) Sharing Information With Federal Reserve Banks.--The Board
shall, for the purpose of facilitating insured credit unions' access to
liquidity, make available to the Federal reserve banks (subject to
appropriate assurances of confidentiality) information relevant to
making advances to such credit unions, including the Board's reports of
examination.''.

154d3e042221e9f4e384b80eb1072da2dc73834e33ee9fddd7b2a23490798918

(a) Study.--The Secretary shall conduct a study of--
(1) the differences between credit unions and other federally
insured financial institutions, including regulatory differences
with respect to regulations enforced by the Office of Thrift
Supervision, the Office of the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, and the Administration; and
(2) the potential effects of the application of Federal laws,
including Federal tax laws, on credit unions in the same manner as
those laws are applied to other federally insured financial
institutions.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall submit a report to the Congress on the
results of the study required by subsection (a).

e7687e481279e2f4c9c9c2d81b096522edd0432e9f6f8f1df8b42d92458a310f

Not later than 1 year after the date of enactment of this Act, the
Federal banking agencies shall submit a report to the Congress
detailing their progress in carrying out section 303(a) of the Riegle
Community Development and Regulatory Improvement Act of 1994, since
their submission of the report dated September 23, 1996, as required by
section 303(a)(4) of that Act.

e75e60d1bc0588a77768cfdb4526264d18e2ddc36bbf1d524891945bf9ff6f58

BANKS.
The Secretary shall, not later than 1 year after the date of
enactment of this Act, submit a report to the Congress containing--
(1) recommendations for such legislative and administrative
action as the Secretary deems appropriate, that would reduce and
simplify the tax burden for--
(A) insured depository institutions having less than
$1,000,000,000 in assets; and
(B) banks having total assets of not less than
$1,000,000,000 nor more than $10,000,000,000; and
(2) any other recommendations that the Secretary deems
appropriate that would preserve the viability and growth of small
banking institutions in the United States.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

6de52e6982d91950161f874057db6f1e21f00d24a9bba94dcacee73a5a885525

Credit Union Membership Access Act

Other Sections

TITLE I

TITLE II

TITLE III

TITLE IV

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