I 

113TH CONGRESS 

1ST SESSION H. R. 3584 

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. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 21, 2013 

Mr. STIVERS introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

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, 

3 SECTION 1. PRIVATELY INSURED CREDIT UNIONS AUTHOR4 IZED TO BECOME MEMBERS OF A FEDERAL 

5 HOME LOAN BANK. 

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

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

8 at the end the following new paragraph: 


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1 ‘‘(5) CERTAIN PRIVATELY INSURED CREDIT

2 UNIONS.— 

3 ‘‘(A) IN GENERAL.—Subject to the re4 quirements of subparagraph (B), a credit union 

5 shall be treated as an insured depository insti6 tution for purposes of determining the eligibility 

7 of such credit union for membership in a Fed8 eral home loan bank under paragraphs (1), (2), 

9 and (3). 

10 ‘‘(B) CERTIFICATION BY APPROPRIATE SU11 PERVISOR.— 

12 ‘‘(i) IN GENERAL.—For purposes of 

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

14 credit union which lacks Federal deposit 

15 insurance and which has applied for mem16 bership in a Federal home loan bank may 

17 be treated as meeting all the eligibility re18 quirements for Federal deposit insurance 

19 only if the appropriate supervisor of the 

20 State in which the credit union is char21 tered has determined that the credit union 

22 meets all the eligibility requirements for 

23 Federal deposit insurance as of the date of 

24 the application for membership. 


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1 ‘‘(ii) CERTIFICATION DEEMED

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

3 to which clause (i) applies, the appropriate 

4 supervisor of the State in which such cred5 it union is chartered fails to make a deter6 mination pursuant to such clause by the 

7 end of the 6-month period beginning on 

8 the date of the application, the credit 

9 union shall be deemed to have met the re10 quirements of clause (i). 

11 ‘‘(C) SECURITY INTERESTS OF FEDERAL

12 HOME LOAN BANK NOT AVOIDABLE.—Notwith13 standing any provision of State law authorizing 

14 a conservator or liquidating agent of a credit 

15 union to repudiate contracts, no such provision 

16 shall apply with respect to— 

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

18 Federal home loan bank to any credit 

19 union which is a member of any such bank 

20 pursuant to this paragraph; or 

21 ‘‘(ii) any security interest in the as22 sets of such credit union securing any such 

23 extension of credit.’’. 

24 (b) COPIES OF AUDITS OF PRIVATE INSURERS OF

25 CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE


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1 PROVIDED TO SUPERVISORY AGENCIES.—Section 

2 43(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 

3 1831t(a)(2)) is amended— 

4 (1) by striking ‘‘and’’ at the end of subpara5 graph (A)(i); 

6 (2) by striking the period at the end of clause 

7 (ii) of subparagraph (A) and inserting a semicolon; 

8 (3) by inserting the following new clauses at the 

9 end of subparagraph (A): 

10 ‘‘(iii) in the case of depository institu11 tions described in subsection (e)(2)(A) the 

12 deposits of which are insured by the pri13 vate insurer, the National Credit Union 

14 Administration, not later than 7 days after 

15 that audit is completed; and 

16 ‘‘(iv) in the case of depository institu17 tions described in subsection (e)(2)(A) the 

18 deposits of which are insured by the pri19 vate insurer which are members of a Fed20 eral home loan bank, the Federal Housing 

21 Finance Agency, not later than 7 days 

22 after that audit is completed.’’; and 

23 (4) by adding at the end the following new sub24 paragraph: 


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1 ‘‘(C) CONSULTATION.—The appropriate 

2 supervisory agency of each State in which a pri3 vate deposit insurer insures deposits in an insti4 tution described in subsection (e)(2)(A) 

5 which— 

6 ‘‘(i) lacks Federal deposit insurance; 

7 and 

8 ‘‘(ii) has become a member of a Fed9 eral home loan bank, 

10 shall provide the National Credit Union Admin11 istration, upon request, with the results of any 

12 examination and reports related thereto con13 cerning the private deposit insurer which such 

14 agency may have in its possession.’’. 

Æ 


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