PUBLIC LAW 111–382—JAN. 4, 2011 

NATIONAL CREDIT UNION 

AUTHORITY CLARIFICATION 


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124 STAT. 4134 PUBLIC LAW 111–382—JAN. 4, 2011 

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 

Deadlines. 

Jan. 4, 2011 

[S. 4036] 


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PUBLIC LAW 111–382—JAN. 4, 2011 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) 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. 

Evaluation. 

Evaluation. 

Determination. 


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124 STAT. 4136 PUBLIC LAW 111–382—JAN. 4, 2011 

LEGISLATIVE HISTORY—S. 4036: 

CONGRESSIONAL RECORD, Vol. 156 (2010): 

Dec. 16, considered and passed Senate. 

Dec. 22, considered and passed House. 

Æ 

(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. 


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