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)(v)(I) of the Federal Credit 
Union Act (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated 
by section 303 and redesignated by section 304(2)(B) of 
this title) is amended by striking ‘‘six-month period and 
that prevailing interest rate levels’’ and inserting ‘‘6-
month period or that prevailing interest rate levels’’. 
SEC. 312. EXEMPTION FROM PRE-MERGER NOTIFICATION 
REQUIREMENT OF THE CLAYTON ACT. 
Section 7A(c)(7) of the Clayton Act (15 U.S.C. 
18a(c)(7)) is amended by inserting ‘‘section 205(b)(3) of 
the Federal Credit Union Act (12 U.S.C. 1785(b)(3)),’’ 
before ‘‘or section 3’’.
SEC. 313. TREATMENT OF CREDIT UNIONS AS DEPOSITORY 
INSTITUTIONS UNDER SECURITIES LAWS. 
(a) DEFINITION OF BANK UNDER THE SECURITIES 
EXCHANGE ACT OF 1934.—Section 3(a)(6) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) (as 
amended by section 201(a)(1) of this Act) is amended—
(1) by striking ‘‘this title, and (D) a receiver’’ 
and inserting ‘‘this title, (D) an insured credit union 
(as defined in section 101(7) of the Federal Credit 
Union Act) but only for purposes of paragraphs (4) 
and (5) of this subsection and only for activities oth-
erwise authorized by applicable laws to which such 
credit unions are subject, and (E) a receiver’’; and 
(2) in subparagraph (E) (as so redesignated by 
paragraph (1) of this subsection) by striking ‘‘(A), 
(B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’. 
(b) DEFINITION OF BANK UNDER THE INVESTMENT 
ADVISERS ACT OF 1940.—Section 202(a)(2) of the In-
vestment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2)) 
(as amended by section 201(b)(1) of this Act) is amend-
ed—
(1) by striking ‘‘this title, and (D) a receiver’’ 
and inserting ‘‘this title, (D) an insured credit union 
(as defined in section 101(7) of the Federal Credit 
Union Act) but only for activities otherwise author-
ized by applicable laws to which such credit unions 
are subject, and (E) a receiver’’; and 
(2) in subparagraph (E) (as so redesignated by 
paragraph (1) of this subsection) by striking ‘‘(A), 
(B), or (C)’’ and inserting ‘‘(A), (B), (C), or (D)’’. 
(c) DEFINITION OF APPROPRIATE FEDERAL BANK-
ING AGENCY.—Section 210A(c) of the Investment Advis-
ers Act of 1940 (15 U.S.C. 80b–10a(c)) is amended by 
inserting ‘‘and includes the National Credit Union Admin-
istration Board, in the case of an insured credit union (as 
defined in section 101(7) of the Federal Credit Union 
Act)’’ before the period at the end. 
SEC. 314. CLARIFICATION OF DEFINITION OF NET WORTH 
UNDER CERTAIN CIRCUMSTANCES FOR PUR-
POSES OF PROMPT CORRECTIVE ACTION. 
Subparagraph (A) of section 216(o)(2) of the Federal 
Credit Union Act (12 U.S.C. 1790d(o)(2)(A)) is amend-
ed—
(1) by inserting ‘‘the’’ before ‘‘retained earnings 
balance’’; and 
(2) by inserting ‘‘, together with any amounts 
that were previously retained earnings of any other 
credit union with which the credit union has com-
bined’’ before the semicolon at the end.
SEC. 315. AMENDMENTS RELATING TO NONFEDERALLY IN-
SURED CREDIT UNIONS. 
(a) IN GENERAL.—Subsection (a) of section 43 of the 
Federal Deposit Insurance Act (12 U.S.C. 1831t(a)) is 
amended by adding at the end the following new para-
graph: 
‘‘(3) ENFORCEMENT
BY
APPROPRIATE
STATE 
SUPERVISOR.—Any appropriate State supervisor of a 
private deposit insurer, and any appropriate State 
supervisor of a depository institution which receives 
deposits that are insured by a private deposit in-
surer, may examine and enforce compliance with this 
subsection under the applicable regulatory authority 
of such supervisor.’’. 
(b) AMENDMENT RELATING TO DISCLOSURES RE-
QUIRED, 
PERIODIC
STATEMENTS
AND
ACCOUNT 
RECORDS.—Section 43(b)(1) of the Federal Deposit In-
surance Act (12 U.S.C. 1831t(b)(1)) is amended by strik-
ing ‘‘or similar instrument evidencing a deposit’’ and in-
serting ‘‘or share certificate’’. 
(c) AMENDMENTS RELATING TO DISCLOSURES RE-
QUIRED, ADVERTISING, PREMISES.— Section 43(b)(2) of 
the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1831t(b)(2)) is amended to read as follows: 
‘‘(2) ADVERTISING; PREMISES.—
‘‘(A) IN
GENERAL.—Include clearly and 
conspicuously in all advertising, except as pro-
vided in subparagraph (B); and at each station 
or window where deposits are normally received, 
its principal place of business and all its 
branches where it accepts deposits or opens ac-
counts (excluding automated teller machines or 
point of sale terminals), and on its main Inter-
net page, a notice that the institution is not 
federally insured. 
‘‘(B) EXCEPTIONS.—The following need 
not include a notice that the institution is not 
federally insured: 
‘‘(i) Statements or reports of financial 
condition of the depository institution that 
are required to be published or posted by 
State or Federal law or regulation. 
‘‘(ii) Any sign, document, or other 
item that contains the name of the deposi-
tory institution, its logo, or its contact in-
formation, but only if the sign, document, 
or item does not include any information 
about the institution’s products or services 
or information otherwise promoting the in-
stitution.
‘‘(iii) Small utilitarian items that do 
not mention deposit products or insurance 
if inclusion of the notice would be imprac-
tical.’’. 
(d) AMENDMENTS RELATING TO ACKNOWLEDGMENT 
OF DISCLOSURE.—Section 43(b)(3) of the Federal De-
posit Insurance Act (12 U.S.C. 1831t(b)(3)) is amended 
to read as follows: 
‘‘(3) ACKNOWLEDGMENT OF DISCLOSURE.—
‘‘(A) NEW DEPOSITORS OBTAINED OTHER 
THAN THROUGH A CONVERSION OR MERGER.—
With respect to any depositor who was not a 
depositor at the depository institution before 
the effective date of the Financial Services Re-
lief Act of 2005, and who is not a depositor as 
described in subparagraph (B), receive any de-
posit for the account of such depositor only if 
the depositor has signed a written acknowledge-
ment that—
‘‘(i) the institution is not federally in-
sured; and 
‘‘(ii) if the institution fails, the Fed-
eral Government does not guarantee that 
the depositor will get back the depositor’s 
money.
‘‘(B) 
NEW
DEPOSITORS
OBTAINED 
THROUGH A CONVERSION OR MERGER.—With 
respect to a depositor at a federally insured de-
pository institution that converts to, or merges 
into, a depository institution lacking federal in-
surance after the effective date of the Financial 
Services Regulatory Relief Act of 2005, receive 
any deposit for the account of such depositor 
only if—
‘‘(i) the depositor has signed a written 
acknowledgement described in subpara-
graph (A); or 
‘‘(ii) the institution makes an attempt, 
as described in subparagraph (D) and sent 
by mail no later than 45 days after the ef-
fective date of the conversion or merger, to 
obtain the acknowledgment. 
‘‘(C) CURRENT DEPOSITORS.—Receive any 
deposit after the effective date of the Financial 
Services Regulatory Relief Act of 2005 for the 
account of any depositor who was a depositor 
on that date only if—
‘‘(i) the depositor has signed a written 
acknowledgement described in subpara-
graph (A); or
‘‘(ii) the institution makes an attempt, 
as described in subparagraph (D) and sent 
by mail no later than 45 days after the ef-
fective date of the Financial Services Reg-
ulatory Relief Act of 2005, to obtain the 
acknowledgment. 
‘‘(D) ALTERNATIVE PROVISION OF NOTICE 
TO CURRENT DEPOSITORS AND NEW DEPOSI-
TORS OBTAINED THROUGH A CONVERSION OR 
MERGER.—
‘‘(i) IN GENERAL.—Transmit to each 
depositor who has not signed a written ac-
knowledgement described in subparagraph 
(A)—
‘‘(I) a conspicuous card con-
taining the information described in 
clauses (i) and (ii) of subparagraph 
(A), and a line for the signature of 
the depositor; and 
‘‘(II) accompanying materials re-
questing the depositor to sign the 
card, and return the signed card to 
the institution.’’. 
(e) REPEAL
OF
PROVISION
PROHIBITING
NON-
DEPOSITORY INSTITUTIONS FROM ACCEPTING DEPOS-
ITS.—Section 43 of the Federal Deposit Insurance Act (12 
U.S.C. 1831t) is amended—
(1) by striking subsection (e); and 
(2) by redesignating subsections (f) and (g) as 
subsections (e) and (f), respectively. 
(f) REPEAL
OF
PROVISION
CONCERNING
NON-
DEPOSITORY INSTITUTIONS MASQUERADING AS DEPOSI-
TORY INSTITUTIONS AND CLARIFICATION OF DEPOSITORY 
INSTITUTIONS COVERED BY THE STATUTE.—Subsection 
(e)(2) (as so redesignated by subsection (e) of this section) 
of section 43 of the Federal Deposit Insurance Act (12 
U.S.C. 1831t) is amended to read as follows: 
‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’—
‘‘(A) includes any entity described in sec-
tion 19(b)(1)(A)(iv) of the Federal Reserve Act; 
and 
‘‘(B) does not include any national bank, 
State member bank, or Federal branch.’’. 
(g) REPEAL OF FTC AUTHORITY TO ENFORCE INDE-
PENDENT AUDIT REQUIREMENT; CONCURRENT STATE 
ENFORCEMENT.—Subsection (f) (as so redesignated by 
subsection (e) of this section) of section 43 of the Federal 
Deposit Insurance Act (12 U.S.C. 1831t) is amended to 
read as follows: