Capital Access for Small Community Financial Institutions Act of 2014

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Capital Access for Small Community 
Financial Institutions Act of 2014''.

SEC. 2. PRIVATELY INSURED CREDIT UNIONS AUTHORIZED TO BECOME MEMBERS OF 
              A FEDERAL HOME LOAN BANK.

    (a) In General.--Section 4(a) of the Federal Home Loan Bank Act (12 
U.S.C. 1424(a)) is amended by adding at the end the following new 
paragraph:
            ``(5) Certain privately insured credit unions.--
                    ``(A) In general.--Subject to the requirements of 
                subparagraph (B), a credit union shall be treated as an 
                insured depository institution for purposes of 
                determining the eligibility of such credit union for 
                membership in a Federal home loan bank under paragraphs 
                (1), (2), and (3).
                    ``(B) Certification by appropriate supervisor.--
                            ``(i) In general.--For purposes of this 
                        paragraph and subject to clause (ii), a credit 
                        union which lacks Federal deposit insurance and 
                        which has applied for membership in a Federal 
                        home loan bank may be treated as meeting all 
                        the eligibility requirements for Federal 
                        deposit insurance only if the appropriate 
                        supervisor of the State in which the credit 
                        union is chartered has determined that the 
                        credit union meets all the eligibility 
                        requirements for Federal deposit insurance as 
                        of the date of the application for membership.
                            ``(ii) Certification deemed valid.--If, in 
                        the case of any credit union to which clause 
                        (i) applies, the appropriate supervisor of the 
                        State in which such credit union is chartered 
                        fails to make a determination pursuant to such 
                        clause by the end of the 6-month period 
                        beginning on the date of the application, the 
                        credit union shall be deemed to have met the 
                        requirements of clause (i).
                    ``(C) Security interests of federal home loan bank 
                not avoidable.--Notwithstanding any provision of State 
                law authorizing a conservator or liquidating agent of a 
                credit union to repudiate contracts, no such provision 
                shall apply with respect to--
                            ``(i) any extension of credit from any 
                        Federal home loan bank to any credit union 
                        which is a member of any such bank pursuant to 
                        this paragraph; or
                            ``(ii) any security interest in the assets 
                        of such credit union securing any such 
                        extension of credit.
                    ``(D) Protection for certain federal home loan bank 
                advances.--Notwithstanding any State law to the 
                contrary, if a Bank makes an advance under section 10 
                to a State-chartered credit union that is not federally 
                insured--
                            ``(i) the Bank's interest in any collateral 
                        securing such advance has the same priority and 
                        is afforded the same standing and rights that 
                        the security interest would have had if the 
                        advance had been made to a federally-insured 
                        credit union; and
                            ``(ii) the Bank has the same right to 
                        access such collateral that the Bank would have 
                        had if the advance had been made to a 
                        federally-insured credit union.''.
    (b) Copies of Audits of Private Insurers of Certain Depository 
Institutions Required To Be Provided to Supervisory Agencies.--Section 
43(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1831t(a)(2)(A)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting a semicolon; and
            (3) by inserting at the end the following new clause:
                            ``(iii) in the case of depository 
                        institutions described in subsection (e)(2)(A) 
                        the deposits of which are insured by the 
                        private insurer which are members of a Federal 
                        home loan bank, to the Federal Housing Finance 
                        Agency, not later than 7 days after the audit 
                        is completed.''.

SEC. 3. GAO REPORT.

    Not later than 18 months after the date of enactment of this Act, 
the Comptroller General of the United States shall conduct a study and 
submit a report to Congress--
            (1) on the adequacy of insurance reserves held by a private 
        deposit insurer that insures deposits in an entity described in 
        section 43(e)(2)(A) of the Federal Deposit Insurance Act (12 
        U.S.C. 1831t(e)(2)(A)); and
            (2) for an entity described in paragraph (1) the deposits 
        of which are insured by a private deposit insurer, information 
        on the level of compliance with Federal regulations relating to 
        the disclosure of a lack of Federal deposit insurance.

            Passed the House of Representatives May 6, 2014.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Capital Access for Small Community Financial Institutions Act of 2014 - Amends the Federal Home Loan Bank Act to treat certain privately insured credit unions as insured depository institutions for purposes of determining eligibility for membership in a federal home loan bank. Permits a credit union which lacks federal deposit insurance and has applied for membership in a federal home loan bank to be treated as meeting all the eligibility requirements for federal deposit insurance if the supervisor of the chartering state has determined that it meets all federal deposit insurance eligibility requirements. Deems such a credit union to have met the eligibility criteria for federal home loan bank membership if, six months after its application date, the state supervisor has failed to act upon the application. Prohibits the application of a state law authorizing a conservator or liquidating agent of a credit union to repudiate contracts to any: (1) extension of credit from a federal home loan bank to a credit union which is a member of that bank, or (2) security interest in the assets of the credit union securing such extension of credit. Declares that if a federal home loan bank makes an advance to a state-chartered credit union that is not federally insured: (i) the bank's interest in any collateral securing such advance has the same priority and is afforded the same standing and rights that the security interest would have had if the advance had been made to a federally-insured credit union, and (2) the bank has the same right to access such collateral that it would have had if the advance had been made to a federally-insured credit union. Amends the Federal Deposit Insurance Act to require private deposit insurers of credit unions that are members of a federal home loan bank to submit copies of their audit reports within seven days to the Federal Housing Finance Agency. Directs the Comptroller General (GAO) to study: (1) the adequacy of insurance reserves held by a private deposit insurer that insures deposits in an insured credit union or any credit union eligible to apply to become one, and (2) such credit unions' compliance with federal regulations governing disclosure of a lack of federal deposit insurance.