A bill to clarify the National Credit Union Administration authority to make stabilization fund expenditures without borrowing from the Treasury.

Summary: Amends the Federal Credit Union Act regarding repayment to the Treasury of advances to the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) for payments connected to the conservatorship, liquidation, or threatened conservatorship or liquidation, of a corporate credit union.

Revises requirements for assessments on federally insured credit unions by the National Credit Union Administration Board to ensure that the Stabilization Fund will have sufficient funds to make scheduled repayments to the Treasury. Authorizes the Board to assess a special premium on each insured credit union in an aggregate amount reasonably calculated to make any pending or future expenditure from the Stabilization Fund. Makes the premium due and payable by 60 days after the assessment date. Requires the Board, in setting the amount of any such assessment, to take into consideration any potential impact on credit union earnings that such an assessment may have.

Requires calculation of the equity ratio of the National Credit Union Share Insurance Fund (Insurance Fund), for timing and assessment of premium charges, to use the financial statements of the Insurance Fund alone, without any consolidation or combination with the financial statements of any other fund or entity.

Revises the definition of net worth with respect to any insured credit union to include, at Board discretion, and subject to Board rules and regulations, special assistance to an insured credit union to avoid liquidation that is provided to facilitate a least-cost resolution consistent with the best interests of the credit union system.

Directs the Comptroller General to study and report to Congress and the Financial Stability Oversight Council on the supervision of corporate credit unions and implementation of prompt corrective action by the National Credit Union Administration (NCUA). Requires the Council to report to Congress within six months after receiving the Comptroller General's report on any actions taken in response to it, including any recommendations issued to NCUA under the Dodd-Frank Wall Street Reform and Consumer Protection Act to apply new or heightened standards and safeguards to insured credit unions for financial stability purposes.

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).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.