I 

116TH CONGRESS 

2D SESSION H. R. 8740 

To amend the Bank Service Company Act to cover credit unions to the 

same extent as such Act covers banks and savings associations, to provide 

the Director of the Federal Housing Finance Agency with the authority 

to regulate the provision of services provided to the Government-sponsored enterprises and Federal Home Loan Banks, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 12, 2020 

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

Committee on Financial Services 

A BILL 

To amend the Bank Service Company Act to cover credit 

unions to the same extent as such Act covers banks 

and savings associations, to provide the Director of the 

Federal Housing Finance Agency with the authority to 

regulate the provision of services provided to the Government-sponsored enterprises and Federal Home Loan 

Banks, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Strengthening Cyber5 security for the Financial Sector Act of 2020’’. 


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1 SEC. 2. INCLUSION OF CREDIT UNIONS UNDER THE BANK 

2 SERVICE COMPANY ACT. 

3 The Bank Service Company Act is amended— 

4 (1) in section 1(b) (12 U.S.C. 1861(b))— 

5 (A) by amending paragraph (1) to read as 

6 follows: 

7 ‘‘(1) the term ‘appropriate Federal banking 

8 agency’— 

9 ‘‘(A) has the meaning given that term 

10 under section 3 of the Federal Deposit Insur11 ance Act (12 U.S.C. 1813); and 

12 ‘‘(B) means the National Credit Union Ad13 ministration, in the case of a credit union;’’; 

14 (B) by amending paragraph (5) to read as 

15 follows: 

16 ‘‘(5) the term ‘insured depository institution’— 

17 ‘‘(A) has the meaning given that term 

18 under section 3 of the Federal Deposit Insur19 ance Act (12 U.S.C. 1813); and 

20 ‘‘(B) means an insured credit union, as de21 fined under section 101 of the Federal Credit 

22 Union Act (12 U.S.C. 1752);’’; 

23 (C) in paragraph (8), by striking ‘‘and’’ at 

24 the end; 

25 (D) in paragraph (9)— 


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1 (i) by inserting before ‘‘and’’ the fol2 lowing: ‘‘, ‘savings association’,’’; and 

3 (ii) by striking the period at the end 

4 and inserting a semicolon; and 

5 (E) by adding at the end the following: 

6 ‘‘(10) the term ‘credit union’ means a Federal 

7 credit union or a State credit union; and 

8 ‘‘(11) the terms ‘insured credit union’, ‘Federal 

9 credit union’, and ‘State credit union’ have the 

10 meaning given those terms, respectively, under sec11 tion 101 of the Federal Credit Union Act (12 U.S.C. 

12 1752).’’; 

13 (2) in section 2 (12 U.S.C. 1862), by striking 

14 ‘‘banks or savings associations’’ and inserting ‘‘de15 pository institutions’’; and 

16 (3) in section 4 (12 U.S.C. 1864)— 

17 (A) in subsection (c), by striking ‘‘State 

18 bank or State savings association’’ each place 

19 such term appears and inserting ‘‘State bank, 

20 State savings association, or State credit 

21 union’’; 

22 (B) in subsection (d), by striking ‘‘national 

23 bank or Federal savings association’’ each place 

24 such term appears and inserting ‘‘national 


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1 bank, Federal savings association, or Federal 

2 credit union’’; and 

3 (C) in subsection (f), by striking ‘‘banks or 

4 savings associations’’ and inserting ‘‘depository 

5 institutions’’. 

6 SEC. 3. REGULATION OF SERVICE PROVIDERS BY FHFA. 

7 Subpart A of part 2 of subtitle A of the Federal 

8 Housing Enterprises Financial Safety and Soundness Act 

9 of 1992 (12 U.S.C. 4541 et seq.) is amended by adding 

10 at the end the following new section: 

11 ‘‘SEC. 1329. REGULATION OF SERVICE PROVIDERS. 

12 ‘‘Whenever a Federal Home Loan Bank or enterprise 

13 (or any subsidiary or affiliate of such a Bank or enter14 prise) causes to be performed for itself, by contract or oth15 erwise, any services, whether on or off its premises— 

16 ‘‘(1) such performance shall be subject to regu17 lation and examination by the Director to the same 

18 extent as if such services were being performed by 

19 such Bank or enterprise itself on its own premises; 

20 and 

21 ‘‘(2) the Bank or enterprise shall notify the Di22 rector of the existence of the service relationship 

23 within thirty days after the making of such service 


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1 contract or the performance of the service, whichever 

2 occurs first.’’. 

Æ 


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