I
105TH CONGRESS
2D SESSION
H. R. 3439
To amend the Community Reinvestment Act of 1977 to require insured
credit unions to meet the credit needs of the community served by
the credit union.
IN THE HOUSE OF REPRESENTATIVES
MARCH 11, 1998
Mr. KENNEDY of Massachusetts introduced the following bill; which was
referred to the Committee on Banking and Financial Services
A BILL
To amend the Community Reinvestment Act of 1977 to
require insured credit unions to meet the credit needs
of the community served by the credit union.
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 Commu-
nity Reinvestment Act’’.
SEC. 2. COMMUNITY REINVESTMENT OBLIGATIONS OF IN-
SURED CREDIT UNIONS.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901) is amended by adding at the end the follow-
ing new section:
‘‘SEC. 809. COMMUNITY REINVESTMENT OBLIGATIONS OF
INSURED CREDIT UNIONS.
‘‘(a) STATEMENT OF PURPOSE.—The purpose of this
section is to establish that—
‘‘(1) the field of membership of an insured
credit union shall be treated as the community
served by the credit union; and
‘‘(2) an insured credit unions has a continuing
and affirmative obligation to help meet the credit
needs of the community served by the credit union.
‘‘(b) APPLICABILITY OF COMMUNITY REINVESTMENT
REQUIREMENTS.—The National Credit Union Adminis-
tration Board (hereafter in this section referred to as the
‘Board’ shall exercise all the authority of the Board under
the Federal Credit Union Act, when examining any in-
sured credit union with total assets of more than
$25,000,000, to encourage such credit union to help meet
the community served by the credit union, consistent with
the safe and sound operation of the credit union.
‘‘(c) EVALUATION REQUIRED.—
‘‘(1) IN GENERAL.—In connection with any ex-
amination under the Federal Credit Union Act of a
credit union with total assets of more than
$25,000,000, the Board shall—
‘‘(A) assess the record of the credit union
in meeting the credit needs of the community
served by the credit union, including low- and
moderate-income individuals, consistent with
the safe and sound operation of the credit
union; and
‘‘(B) take such record into account in the
Board’s evaluation of an application to expand
the field of membership of the credit union or
an application to establish a deposit facility.
‘‘(2) DEFERENCE
TO
STATE
CREDIT
UNION
REGULATOR
IN
CERTAIN
CASES.—If the require-
ments under any law of a State with respect to a
State credit union are no less stringent than the re-
quirements of this section, the Board may defer to
the State regulator of such credit union with regard
to the enforcement of such requirements.
‘‘(d) APPLICABILITY OF REGULATIONS.—Before the
end of the 1-year period beginning on the date of the en-
actment of the Credit Union Community Reinvestment
Act, the Board shall prescribed regulations implementing
this section that are consistent with and no less stringent
than the regulations prescribed by appropriate Federal fi-
nancial supervisory agencies under the preceding sections
of this title.
‘‘(e) ANNUAL REPORTS.—With respect to each of the
first 5 years which begin after the date of the enactment
of the Credit Union Community Reinvestment Act, the
Board shall submit an annual report to the Congress on
the progress of the Board in implementing this section.
‘‘(f) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) COMMUNITY SERVED.—The term ‘commu-
nity served’ means, with respect to an insured credit
union, the field of membership of the credit union.
‘‘(2) INSURED CREDIT UNION.—The term ‘in-
sured credit union’ has the meaning given to such
term in section 101(7) of the Federal Credit Union
Act.
‘‘(3) STATE CREDIT UNION.—The term ‘insured
credit union’ has the meaning given to such term in
section 101(6) of the Federal Credit Union Act.’’.
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