insurance and which has applied for mem-
bership in a Federal home loan bank may 
be treated as meeting all the eligibility re-
quirements for Federal deposit insurance 
only if the appropriate supervisor of the 
State in which the credit union is char-
tered has determined that the credit union 
meets all the eligibility requirements for 
Federal deposit insurance as of the date of 
the application for membership. 
‘‘(ii) 
CERTIFICATION
DEEMED 
VALID.—If, in the case of any credit union 
to which clause (i) applies, the appropriate 
supervisor of the State in which such cred-
it union is chartered fails to make a deter-
mination pursuant to such clause by the 
end of the 6-month period beginning on 
the date of the application, the credit 
union shall be deemed to have met the re-
quirements of clause (i). 
‘‘(C) SECURITY INTERESTS OF FEDERAL 
HOME LOAN BANK NOT AVOIDABLE.—Notwith-
standing any provision of State law authorizing 
a conservator or liquidating agent of a credit
union to repudiate contracts, no such provision 
shall apply with respect to—
‘‘(i) any extension of credit from any 
Federal home loan bank to any credit 
union which is a member of any such bank 
pursuant to this paragraph; or 
‘‘(ii) any security interest in the as-
sets of such credit union securing any such 
extension of credit.’’. 
(b) COPIES OF AUDITS OF PRIVATE INSURERS OF 
CERTAIN DEPOSITORY INSTITUTIONS REQUIRED TO BE 
PROVIDED
TO
SUPERVISORY
AGENCIES.—Section 
43(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1831t(a)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A)(i); 
(2) by striking the period at the end of clause 
(ii) of subparagraph (A) and inserting a semicolon; 
(3) by inserting the following new clauses at the 
end of subparagraph (A): 
‘‘(iii) in the case of depository institu-
tions described in subsection (f)(2)(A) the 
deposits of which are insured by the pri-
vate insurer, the National Credit Union
Administration, not later than 7 days after 
that audit is completed; and 
‘‘(iv) in the case of depository institu-
tions described in subsection (f)(2)(A) the 
deposits of which are insured by the pri-
vate insurer which are members of a Fed-
eral home loan bank, the Federal Housing 
Finance Board, not later than 7 days after 
that audit is completed.’’; and 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(C) CONSULTATION.—The appropriate 
supervisory agency of each State in which a pri-
vate deposit insurer insures deposits in an insti-
tution described in subsection (f)(2)(A) which—
‘‘(i) lacks Federal deposit insurance; 
and 
‘‘(ii) has become a member of a Fed-
eral home loan bank, 
shall provide the National Credit Union Admin-
istration, upon request, with the results of any 
examination and reports related thereto con-
cerning the private deposit insurer to which 
such agency may have in its possession.’’.
SEC. 302. LEASES OF LAND ON FEDERAL FACILITIES FOR 
CREDIT UNIONS. 
(a) IN GENERAL.—Section 124 of the Federal Credit 
Union Act (12 U.S.C. 1770) is amended—
(1) by striking ‘‘Upon application by any credit 
union’’ and inserting ‘‘Notwithstanding any other 
provision of law, upon application by any credit 
union’’; 
(2) by inserting ‘‘on lands reserved for the use 
of, and under the exclusive or concurrent jurisdiction 
of, the United States or’’ after ‘‘officer or agency of 
the United States charged with the allotment of 
space’’; 
(3) by inserting ‘‘lease land or’’ after ‘‘such of-
ficer or agency may in his or its discretion’’; and 
(4) by inserting ‘‘or the facility built on the 
lease land’’ after ‘‘credit union to be served by the 
allotment of space’’. 
(b) CLERICAL AMENDMENT.—The heading for sec-
tion 124 is amended by inserting ‘‘OR FEDERAL LAND’’ 
after ‘‘BUILDINGS’’. 
SEC. 303. INVESTMENTS IN SECURITIES BY FEDERAL CRED-
IT UNIONS. 
Section 107 of the Federal Credit Union Act (12 
U.S.C. 1757) is amended—
(1) in the matter preceding paragraph (1) by 
striking ‘‘A Federal credit union’’ and inserting ‘‘(a) 
IN GENERAL.—Any Federal credit union’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) ADDITIONAL INVESTMENT AUTHORITY.—
‘‘(1) IN GENERAL.—In addition to any invest-
ments otherwise authorized, a Federal credit union 
may purchase and hold for its own account such in-
vestment securities of investment grade as the 
Board may authorize by regulation, subject to such 
limitations and restrictions as the Board may pre-
scribe in the regulations. 
‘‘(2) PERCENTAGE LIMITATIONS.—
‘‘(A) SINGLE OBLIGOR.—In no event may 
the total amount of investment securities of any 
single obligor or maker held by a Federal credit 
union for the credit union’s own account exceed 
at any time an amount equal to 10 percent of 
the net worth of the credit union. 
‘‘(B) AGGREGATE
INVESTMENTS.—In no 
event may the aggregate amount of investment 
securities held by a Federal credit union for the 
credit union’s own account exceed at any time
an amount equal to 10 percent of the assets of 
the credit union. 
‘‘(3) INVESTMENT SECURITY DEFINED.—
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘investment security’ 
means marketable obligations evidencing the in-
debtedness of any person in the form of bonds, 
notes, or debentures and other instruments 
commonly referred to as investment securities. 
‘‘(B) FURTHER DEFINITION BY BOARD.—
The Board may further define the term ‘invest-
ment security’. 
‘‘(4) INVESTMENT GRADE DEFINED.—The term 
‘investment grade’ means with respect to an invest-
ment security purchased by a credit union for its 
own account, an investment security that at the time 
of such purchase is rated in one of the 4 highest rat-
ing categories by at least 1 nationally recognized 
statistical rating organization. 
‘‘(5) CLARIFICATION
OF
PROHIBITION
ON 
STOCK OWNERSHIP.—No provision of this subsection 
shall be construed as authorizing a Federal credit 
union to purchase shares of stock of any corporation 
for the credit union’s own account, except as other-
wise permitted by law.’’.
SEC. 304. INCREASE IN GENERAL 12-YEAR LIMITATION OF 
TERM OF FEDERAL CREDIT UNION LOANS TO 
15 YEARS. 
Section 107(a)(5) of the Federal Credit Union Act 
(12 U.S.C. 1757(5)) (as so designated by section 303 of 
this title) is amended—
(1) in the matter preceding subparagraph (A), 
by striking ‘‘to make loans, the maturities of which 
shall not exceed twelve years except as otherwise 
provided herein’’ and inserting ‘‘to make loans, the 
maturities of which shall not exceed 15 years or any 
longer maturity as the Board may allow, in regula-
tions, except as otherwise provided in this Act’’; 
(2) in subparagraph (A)—
(A) by striking clause (ii); 
(B) by redesignating clauses (iii) through 
(x) as clauses (ii) through (ix), respectively; and 
(C) by inserting ‘‘and’’ after the semicolon 
at the end of clause (viii) (as so redesignated). 
SEC. 305. INCREASE IN 1 PERCENT INVESTMENT LIMIT IN 
CREDIT UNION SERVICE ORGANIZATIONS. 
Section 107(a)(7)(I) of the Federal Credit Union Act 
(12 U.S.C. 1757(7)(I)) (as so designated by section 303 
of this title) is amended by striking ‘‘up to 1 per centum 
of the total paid’’ and inserting ‘‘up to 3 percent of the 
total paid’’.
SEC. 306. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS 
TO NONPROFIT RELIGIOUS ORGANIZATIONS. 
Section 107A(a) of the Federal Credit Union Act (12 
U.S.C. 1757a(a)) is amended by inserting ‘‘, excluding 
loans made to nonprofit religious organizations,’’ after 
‘‘total amount of such loans’’. 
SEC. 307. CHECK CASHING AND MONEY TRANSFER SERV-
ICES OFFERED WITHIN THE FIELD OF MEM-
BERSHIP. 
Paragraph (12) of section 107(a) of the Federal 
Credit Union Act (12 U.S.C. 1757(12)) (as so designated 
by section 303 of this title) is amended to read as follows: 
‘‘(12) in accordance with regulations prescribed 
by the Board—
‘‘(A) to sell, to persons in the field of 
membership, negotiable checks (including trav-
elers checks), money orders, and other similar 
money transfer instruments (including inter-
national and domestic electronic fund trans-
fers); and 
‘‘(B) to cash checks and money orders and 
receive international and domestic electronic 
fund transfers for persons in the field of mem-
bership for a fee;’’.
SEC. 308. VOLUNTARY MERGERS INVOLVING MULTIPLE 
COMMON-BOND CREDIT UNIONS. 
Section 109(d)(2) of the Federal Credit Union Act 
(12 U.S.C. 1759(d)(2)) is amended—
(1) by striking ‘‘or’’ at the end of clause (ii) of 
subparagraph (B); 
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) a merger involving any such Federal 
credit union approved by the Board on or after 
August 7, 1998.’’. 
SEC. 309. CONVERSIONS INVOLVING COMMON-BOND CRED-
IT UNIONS. 
Section 109(g) of the Federal Credit Union Act (12 
U.S.C. 1759(g)) is amended by inserting after paragraph 
(2) the following new paragraph: 
‘‘(3) CRITERIA FOR CONTINUED MEMBERSHIP 
OF CERTAIN MEMBER GROUPS IN COMMUNITY CHAR-
TER CONVERSIONS.—In the case of a voluntary con-
version of a common-bond credit union described in 
paragraph (1) or (2) of subsection (b) into a com-
munity credit union described in subsection (b)(3), 
the Board shall prescribe, by regulation, the criteria 
under which the Board may determine that a mem-
ber group or other portion of a credit union’s exist-
ing membership, that is located outside the well-de-
fined local community, neighborhood, or rural dis-
trict that shall constitute the community charter, 
can be satisfactorily served by the credit union and 
remain within the community credit union’s field of 
membership.’’. 
SEC. 310. CREDIT UNION GOVERNANCE. 
(a) EXPULSION OF MEMBERS FOR JUST CAUSE.—
Subsection (b) of section 118 of the Federal Credit Union 
Act (12 U.S.C. 1764(b)) is amended to read as follows: 
‘‘(b) POLICY AND ACTIONS OF BOARDS OF DIREC-
TORS OF FEDERAL CREDIT UNIONS.—
‘‘(1) EXPULSION
OF
MEMBERS
FOR
NON-
PARTICIPATION OR FOR JUST CAUSE.—The board of 
directors of a Federal credit union may, by majority 
vote of a quorum of directors, adopt and enforce a 
policy with respect to expulsion from membership, 
by a majority vote of such board of directors, based 
on just cause, including disruption of credit union 
operations, or on nonparticipation by a member in 
the affairs of the credit union. 
‘‘(2) WRITTEN
NOTICE
OF
POLICY
TO
MEM-
BERS.—If a policy described in paragraph (1) is 
adopted, written notice of the policy as adopted and
the effective date of such policy shall be provided 
to—
‘‘(A) each existing member of the credit 
union not less than 30 days prior to the effec-
tive date of such policy; and 
‘‘(B) each new member prior to or upon 
applying for membership.’’. 
(b) TERM LIMITS AUTHORIZED FOR BOARD MEM-
BERS OF FEDERAL CREDIT UNIONS.—Section 111(a) of 
the Federal Credit Union Act (12 U.S.C. 1761(a)) is 
amended by adding at the end the following new sentence: 
‘‘The bylaws of a Federal credit union may limit the num-
ber of consecutive terms any person may serve on the 
board of directors of such credit union.’’. 
(c) REIMBURSEMENT
FOR LOST WAGES DUE
TO 
SERVICE ON CREDIT UNION BOARD NOT TREATED AS 
COMPENSATION.—Section 111(c) of the Federal Credit 
Union Act (12 U.S.C. 1761(c)) is amended by inserting 
‘‘, including lost wages,’’ after ‘‘the reimbursement of rea-
sonable expenses’’. 
SEC. 311. PROVIDING THE NATIONAL CREDIT UNION AD-
MINISTRATION WITH GREATER FLEXIBILITY 
IN RESPONDING TO MARKET CONDITIONS. 
Section 107(a)(5)(A)(vi)(I) of the Federal Credit 
Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated