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 exam-
ination cycle of the National Credit Union Administra-
tion to 18 months for certain credit unions, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Credit Union Exam-
ination Reform Act of 2016’’. 
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SEC. 2. EXTENSION OF EXAMINATION CYCLE OF THE NA-
TIONAL CREDIT UNION ADMINISTRATION TO 
18 MONTHS. 
(a) FEDERAL CREDIT UNION EXAMINATIONS.—Sec-
tion 106 of the Federal Credit Union Act (12 U.S.C. 
1756) is amended— 
(1) by striking ‘‘Federal credit unions’’ and in-
serting the following: 
‘‘(a) IN GENERAL.—Federal credit unions’’; and 
(2) by adding at the end the following: 
‘‘(b) 18-MONTH EXAMINATION CYCLE FOR CERTAIN 
CREDIT UNIONS.— 
‘‘(1) IN GENERAL.—An examination of a Fed-
eral credit union described under subsection (a) may 
only be carried out once during each 18-month pe-
riod with respect to a Federal credit union that— 
‘‘(A) has total assets of less than 
$1,000,000,000; 
‘‘(B) is well capitalized, as such term is de-
fined under section 216(c)(1); 
‘‘(C) was found in its most recent exam-
ination to be well managed, and its composite 
rating (under the Uniform Financial Institu-
tions Rating System or an equivalent rating 
under a comparable rating system)— 
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‘‘(i) was a 1, in the case of a Federal 
credit union that has total assets of more 
than $200,000,000; or 
‘‘(ii) was a 1 or a 2, in the case of a 
Federal credit union that has total assets 
of not more than $200,000,000; and 
‘‘(D) is not currently subject to a formal 
enforcement proceeding or order by the Admin-
istration. 
‘‘(2) SAFETY AND SOUNDNESS EXCEPTION.— 
Paragraph (1) shall not apply to a Federal credit 
union if the Administration determines— 
‘‘(A) that such credit union should be ex-
amined more often than every 18 months be-
cause of safety and soundness concerns; or 
‘‘(B) that such credit union has violated 
the law.’’. 
(b) INSURED CREDIT UNION EXAMINATIONS.—Sec-
tion 204 of the Federal Credit Union Act (12 U.S.C. 
1784) is amended by adding at the end the following: 
‘‘(h) 18-MONTH EXAMINATION CYCLE FOR CERTAIN 
CREDIT UNIONS.— 
‘‘(1) IN GENERAL.—An examination of an in-
sured credit union described under subsection (a) 
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may only be carried out once during each 18-month 
period with respect to an insured credit union that— 
‘‘(A) has total assets of less than 
$1,000,000,000; 
‘‘(B) is well capitalized or adequately cap-
italized, as such terms are defined, respectively, 
under section 216(c)(1); 
‘‘(C) was found in its most recent exam-
ination to be well managed, and its composite 
rating (under the Uniform Financial Institu-
tions Rating System or an equivalent rating 
under a comparable rating system)— 
‘‘(i) was a 1, in the case of an insured 
credit union that has total assets of more 
than $200,000,000; or 
‘‘(ii) was a 1 or a 2, in the case of an 
insured credit union that has total assets 
of not more than $200,000,000; and 
‘‘(D) is not currently subject to a formal 
enforcement proceeding or order by the Admin-
istration. 
‘‘(2) SAFETY AND SOUNDNESS EXCEPTION.— 
Paragraph (1) shall not apply to an insured credit 
union if the Administration determines— 
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‘‘(A) that such credit union should be ex-
amined more often than every 18 months be-
cause of safety and soundness concerns; or 
‘‘(B) that such credit union has violated 
the law.’’. 
(c) BUDGET SAVINGS REPORT.—Not later than the 
end of the 180-day period beginning on the date of the 
enactment of this Act, the National Credit Union Adminis-
tration shall issue a report to the Congress analyzing how 
the amendments made by this section affect the budget 
of the Administration. 
(d) RULEMAKING.—Not later than the end of the 
100-day period beginning on the date of the enactment 
of this Act, the National Credit Union Administration 
shall issue regulations to carry out the amendments made 
by this Act. 
Æ 
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