113TH CONGRESS 

2D SESSION H. R. 3584 

AN ACT 

To amend the Federal Home Loan Bank Act to authorize 

privately insured credit unions to become members of 

a Federal home loan bank, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Capital Access for 

3 Small Community Financial Institutions Act of 2014’’. 

4 SEC. 2. PRIVATELY INSURED CREDIT UNIONS AUTHORIZED 

5 TO BECOME MEMBERS OF A FEDERAL HOME 

6 LOAN BANK. 

7 (a) IN GENERAL.—Section 4(a) of the Federal Home 

8 Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding 

9 at the end the following new paragraph: 

10 ‘‘(5) CERTAIN PRIVATELY INSURED CREDIT

11 UNIONS.— 

12 ‘‘(A) IN GENERAL.—Subject to the re13 quirements of subparagraph (B), a credit union 

14 shall be treated as an insured depository insti15 tution for purposes of determining the eligibility 

16 of such credit union for membership in a Fed17 eral home loan bank under paragraphs (1), (2), 

18 and (3). 

19 ‘‘(B) CERTIFICATION BY APPROPRIATE SU20 PERVISOR.— 

21 ‘‘(i) IN GENERAL.—For purposes of 

22 this paragraph and subject to clause (ii), a 

23 credit union which lacks Federal deposit 

24 insurance and which has applied for mem25 bership in a Federal home loan bank may 

26 be treated as meeting all the eligibility re-
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1 quirements for Federal deposit insurance 

2 only if the appropriate supervisor of the 

3 State in which the credit union is char4 tered has determined that the credit union 

5 meets all the eligibility requirements for 

6 Federal deposit insurance as of the date of 

7 the application for membership. 

8 ‘‘(ii) CERTIFICATION DEEMED

9 VALID.—If, in the case of any credit union 

10 to which clause (i) applies, the appropriate 

11 supervisor of the State in which such cred12 it union is chartered fails to make a deter13 mination pursuant to such clause by the 

14 end of the 6-month period beginning on 

15 the date of the application, the credit 

16 union shall be deemed to have met the re17 quirements of clause (i). 

18 ‘‘(C) SECURITY INTERESTS OF FEDERAL

19 HOME LOAN BANK NOT AVOIDABLE.—Notwith20 standing any provision of State law authorizing 

21 a conservator or liquidating agent of a credit 

22 union to repudiate contracts, no such provision 

23 shall apply with respect to— 

24 ‘‘(i) any extension of credit from any 

25 Federal home loan bank to any credit 
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1 union which is a member of any such bank 

2 pursuant to this paragraph; or 

3 ‘‘(ii) any security interest in the as4 sets of such credit union securing any such 

5 extension of credit. 

6 ‘‘(D) PROTECTION FOR CERTAIN FEDERAL

7 HOME LOAN BANK ADVANCES.—Notwith8 standing any State law to the contrary, if a 

9 Bank makes an advance under section 10 to a 

10 State-chartered credit union that is not feder11 ally insured— 

12 ‘‘(i) the Bank’s interest in any collat13 eral securing such advance has the same 

14 priority and is afforded the same standing 

15 and rights that the security interest would 

16 have had if the advance had been made to 

17 a federally-insured credit union; and 

18 ‘‘(ii) the Bank has the same right to 

19 access such collateral that the Bank would 

20 have had if the advance had been made to 

21 a federally-insured credit union.’’. 

22 (b) COPIES OF AUDITS OF PRIVATE INSURERS OF

23 CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE

24 PROVIDED TO SUPERVISORY AGENCIES.—Section 
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1 43(a)(2)(A) of the Federal Deposit Insurance Act (12 

2 U.S.C. 1831t(a)(2)(A)) is amended— 

3 (1) in clause (i), by striking ‘‘and’’ at the end; 

4 (2) in clause (ii), by striking the period at the 

5 end and inserting a semicolon; and 

6 (3) by inserting at the end the following new 

7 clause: 

8 ‘‘(iii) in the case of depository institu9 tions described in subsection (e)(2)(A) the 

10 deposits of which are insured by the pri11 vate insurer which are members of a Fed12 eral home loan bank, to the Federal Hous13 ing Finance Agency, not later than 7 days 

14 after the audit is completed.’’. 

15 SEC. 3. GAO REPORT. 

16 Not later than 18 months after the date of enactment 

17 of this Act, the Comptroller General of the United States 

18 shall conduct a study and submit a report to Congress— 

19 (1) on the adequacy of insurance reserves held 

20 by a private deposit insurer that insures deposits in 

21 an entity described in section 43(e)(2)(A) of the 

22 Federal Deposit Insurance Act (12 U.S.C. 

23 1831t(e)(2)(A)); and 

24 (2) for an entity described in paragraph (1) the 

25 deposits of which are insured by a private deposit in-
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1 surer, information on the level of compliance with 

2 Federal regulations relating to the disclosure of a 

3 lack of Federal deposit insurance. 

Passed the House of Representatives May 6, 2014. 

Attest: 

Clerk. 

113TH CONGRESS 

2D SESSION H. R. 3584 

AN ACT 

To amend the Federal Home Loan Bank Act to auother purposes. members of a Federal home loan bank, and for thorize privately insured credit unions to become