[111th Congress Public Law 382]
[From the U.S. Government Printing Office]
[[Page 4133]]
NATIONAL CREDIT UNION
AUTHORITY CLARIFICATION
[[Page 124 STAT. 4134]]
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. <<NOTE: Jan. 4, 2011 - [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) <<NOTE: Deadlines.>> 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
[[Page 124 STAT. 4135]]
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) <<NOTE: Determination.>> determine the reasons for the
failure of any corporate credit union since 2008;
(2) <<NOTE: Evaluation.>> 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) <<NOTE: Evaluation.>> 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 124 STAT. 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.
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