I 

114TH CONGRESS 

2D SESSION H. R. 5541 

To amend the Federal Credit Union Act to establish procedures for Federal 

credit unions to provide credit union services to underserved areas, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 21, 2016 

Mr. RYAN of Ohio (for himself and Mr. NORCROSS) introduced the following 

bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Federal Credit Union Act to establish procedures for Federal credit unions to provide credit union 

services to underserved areas, 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 ‘‘Financial Services for 

5 the Underserved Act of 2016’’. 

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1 SEC. 2. AMENDMENTS RELATING TO CREDIT UNION SERV2 ICE TO UNDERSERVED AREAS. 

3 (a) IN GENERAL.—Paragraph (2) of section 109(c) 

4 of the Federal Credit Union Act (12 U.S.C. 1759(c)(2)) 

5 is amended to read as follows: 

6 ‘‘(2) EXCEPTION FOR UNDERSERVED AREAS.— 

7 ‘‘(A) IN GENERAL.—Notwithstanding sub8 section (b), the Board may approve an applica9 tion by a Federal credit union to allow the 

10 membership of such credit union to include any 

11 person or organization whose principal resi12 dence or place of business is located within a 

13 local community, neighborhood, or rural district 

14 if— 

15 ‘‘(i) the Board determines— 

16 ‘‘(I) at any time after August 7, 

17 1998, that the local community, 

18 neighborhood, or rural district taken 

19 into account for purposes of this para20 graph is an underserved area (as de21 fined in section 101(10)); and 

22 ‘‘(II) at the time of such ap23 proval, that the credit union is well 

24 capitalized or adequately capitalized 

25 (as defined in section 216(c)(1)); and 

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1 ‘‘(ii) before the end of the 24-month 

2 period beginning on the date of such ap3 proval, the credit union has established 

4 and maintains an ongoing method to pro5 vide services in the local community, neigh6 borhood, or rural district. 

7 ‘‘(B) TERMINATION OF APPROVAL.—Any 

8 failure of a Federal credit union to meet the re9 quirement of clause (ii) of subparagraph (A) by 

10 the end of the 24-month period referred to in 

11 such clause shall constitute a termination, as a 

12 matter of law, of any approval of an application 

13 under this paragraph by the Board with respect 

14 to the membership of such credit union. 

15 ‘‘(C) ANNUAL CREDIT UNION REPORTING

16 REQUIREMENT.—Any Federal credit union 

17 which has an application approved under this 

18 paragraph shall submit an annual report to the 

19 Administration on the number of members of 

20 the credit union who are members by reason of 

21 such application and the number of offices or 

22 facilities maintained by the credit union in the 

23 local community, neighborhood, or rural district 

24 taken into account by the Board in approving 

25 such application. 

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1 ‘‘(D) PUBLICATION BY ADMINISTRA2 TION.—The Administration shall publish annu3 ally a report containing— 

4 ‘‘(i) a list of all the applications ap5 proved under this paragraph prior to the 

6 publication of the report; 

7 ‘‘(ii) the number and locations of the 

8 underserved areas taken into account in 

9 approving such applications; and 

10 ‘‘(iii) the total number of members of 

11 credit unions who are members by reason 

12 of the approval of such applications.’’. 

13 (b) UNDERSERVED AREA DEFINED.—Section 101 of 

14 the Federal Credit Union Act (12 U.S.C. 1752) is amend15 ed— 

16 (1) by striking ‘‘and’’ at the end of paragraph 

17 (8); 

18 (2) by striking the period at the end of para19 graph (9) and inserting ‘‘; and’’; and 

20 (3) by adding at the end the following new 

21 paragraph: 

22 ‘‘(10) the term ‘underserved area’— 

23 ‘‘(A) means a geographic area consisting of 

24 a single census tract or a group of census 

25 tracts, each of which meets the criteria for— 

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1 ‘‘(i) a low-income community, as de2 fined in section 45D(e) of the Internal 

3 Revenue Code of 1986; or 

4 ‘‘(ii) is underserved, based on data of 

5 the Board and the Federal banking agen6 cies (as defined in section 3 of the Federal 

7 Deposit Insurance Act), by other deposi8 tory institutions (as defined in section 

9 19(b)(1)(A) of the Federal Reserve Act); 

10 and 

11 ‘‘(B) notwithstanding subparagraph (A), 

12 includes, with respect to any Federal credit 

13 union, any geographic area within which such 

14 credit union— 

15 ‘‘(i) has received approval to provide 

16 service before the date of the enactment of 

17 this paragraph from the National Credit 

18 Union Administration; and 

19 ‘‘(ii) has established a service facility 

20 before such date of enactment.’’. 

21 (c) CONFORMING AMENDMENT.—Section 109(e)(2) 

22 of the Federal Credit Union Act (12 U.S.C. 1759(e)(2)) 

23 is amended by inserting ‘‘subsection (c)(2) and’’ after 

24 ‘‘provided in’’. 

Æ 

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