I 

114TH CONGRESS 

2D SESSION H. R. 5419 

To amend the Federal Credit Union Act to extend the examination cycle 

of the National Credit Union Administration to 18 months for certain 

credit unions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 9, 2016 

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

Committee on Financial Services 

A BILL 

To amend the Federal Credit Union Act to extend the examination cycle of the National Credit Union Administration to 18 months for certain credit unions, 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 ‘‘Credit Union Exam5 ination Reform Act of 2016’’. 


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1 SEC. 2. EXTENSION OF EXAMINATION CYCLE OF THE NA2 TIONAL CREDIT UNION ADMINISTRATION TO 

3 18 MONTHS. 

4 (a) FEDERAL CREDIT UNION EXAMINATIONS.—Sec5 tion 106 of the Federal Credit Union Act (12 U.S.C. 

6 1756) is amended— 

7 (1) by striking ‘‘Federal credit unions’’ and in8 serting the following: 

9 ‘‘(a) IN GENERAL.—Federal credit unions’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(b) 18-MONTH EXAMINATION CYCLE FOR CERTAIN

12 CREDIT UNIONS.— 

13 ‘‘(1) IN GENERAL.—An examination of a Fed14 eral credit union described under subsection (a) may 

15 only be carried out once during each 18-month pe16 riod with respect to a Federal credit union that— 

17 ‘‘(A) has total assets of less than 

18 $1,000,000,000; 

19 ‘‘(B) is well capitalized, as such term is de20 fined under section 216(c)(1); 

21 ‘‘(C) was found in its most recent exam22 ination to be well managed, and its composite 

23 rating (under the Uniform Financial Institu24 tions Rating System or an equivalent rating 

25 under a comparable rating system)— 


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1 ‘‘(i) was a 1, in the case of a Federal 

2 credit union that has total assets of more 

3 than $200,000,000; or 

4 ‘‘(ii) was a 1 or a 2, in the case of a 

5 Federal credit union that has total assets 

6 of not more than $200,000,000; and 

7 ‘‘(D) is not currently subject to a formal 

8 enforcement proceeding or order by the Admin9 istration. 

10 ‘‘(2) SAFETY AND SOUNDNESS EXCEPTION.— 

11 Paragraph (1) shall not apply to a Federal credit 

12 union if the Administration determines— 

13 ‘‘(A) that such credit union should be ex14 amined more often than every 18 months be15 cause of safety and soundness concerns; or 

16 ‘‘(B) that such credit union has violated 

17 the law.’’. 

18 (b) INSURED CREDIT UNION EXAMINATIONS.—Sec19 tion 204 of the Federal Credit Union Act (12 U.S.C. 

20 1784) is amended by adding at the end the following: 

21 ‘‘(h) 18-MONTH EXAMINATION CYCLE FOR CERTAIN

22 CREDIT UNIONS.— 

23 ‘‘(1) IN GENERAL.—An examination of an in24 sured credit union described under subsection (a) 


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1 may only be carried out once during each 18-month 

2 period with respect to an insured credit union that— 

3 ‘‘(A) has total assets of less than 

4 $1,000,000,000; 

5 ‘‘(B) is well capitalized or adequately cap6 italized, as such terms are defined, respectively, 

7 under section 216(c)(1); 

8 ‘‘(C) was found in its most recent exam9 ination to be well managed, and its composite 

10 rating (under the Uniform Financial Institu11 tions Rating System or an equivalent rating 

12 under a comparable rating system)— 

13 ‘‘(i) was a 1, in the case of an insured 

14 credit union that has total assets of more 

15 than $200,000,000; or 

16 ‘‘(ii) was a 1 or a 2, in the case of an 

17 insured credit union that has total assets 

18 of not more than $200,000,000; and 

19 ‘‘(D) is not currently subject to a formal 

20 enforcement proceeding or order by the Admin21 istration. 

22 ‘‘(2) SAFETY AND SOUNDNESS EXCEPTION.— 

23 Paragraph (1) shall not apply to an insured credit 

24 union if the Administration determines— 


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1 ‘‘(A) that such credit union should be ex2 amined more often than every 18 months be3 cause of safety and soundness concerns; or 

4 ‘‘(B) that such credit union has violated 

5 the law.’’. 

6 (c) BUDGET SAVINGS REPORT.—Not later than the 

7 end of the 180-day period beginning on the date of the 

8 enactment of this Act, the National Credit Union Adminis9 tration shall issue a report to the Congress analyzing how 

10 the amendments made by this section affect the budget 

11 of the Administration. 

12 (d) RULEMAKING.—Not later than the end of the 

13 100-day period beginning on the date of the enactment 

14 of this Act, the National Credit Union Administration 

15 shall issue regulations to carry out the amendments made 

16 by this Act. 

Æ 


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