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 proce-
dures for Federal credit unions to provide credit union 
services to underserved areas, 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 ‘‘Financial Services for 
the Underserved Act of 2016’’. 
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SEC. 2. AMENDMENTS RELATING TO CREDIT UNION SERV-
ICE TO UNDERSERVED AREAS. 
(a) IN GENERAL.—Paragraph (2) of section 109(c) 
of the Federal Credit Union Act (12 U.S.C. 1759(c)(2)) 
is amended to read as follows: 
‘‘(2) EXCEPTION FOR UNDERSERVED AREAS.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (b), the Board may approve an applica-
tion by a Federal credit union to allow the 
membership of such credit union to include any 
person or organization whose principal resi-
dence or place of business is located within a 
local community, neighborhood, or rural district 
if— 
‘‘(i) the Board determines— 
‘‘(I) at any time after August 7, 
1998, that the local community, 
neighborhood, or rural district taken 
into account for purposes of this para-
graph is an underserved area (as de-
fined in section 101(10)); and 
‘‘(II) at the time of such ap-
proval, that the credit union is well 
capitalized or adequately capitalized 
(as defined in section 216(c)(1)); and 
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‘‘(ii) before the end of the 24-month 
period beginning on the date of such ap-
proval, the credit union has established 
and maintains an ongoing method to pro-
vide services in the local community, neigh-
borhood, or rural district. 
‘‘(B) TERMINATION
OF
APPROVAL.—Any 
failure of a Federal credit union to meet the re-
quirement of clause (ii) of subparagraph (A) by 
the end of the 24-month period referred to in 
such clause shall constitute a termination, as a 
matter of law, of any approval of an application 
under this paragraph by the Board with respect 
to the membership of such credit union. 
‘‘(C) ANNUAL CREDIT UNION REPORTING 
REQUIREMENT.—Any 
Federal 
credit 
union 
which has an application approved under this 
paragraph shall submit an annual report to the 
Administration on the number of members of 
the credit union who are members by reason of 
such application and the number of offices or 
facilities maintained by the credit union in the 
local community, neighborhood, or rural district 
taken into account by the Board in approving 
such application. 
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‘‘(D) 
PUBLICATION
BY
ADMINISTRA-
TION.—The Administration shall publish annu-
ally a report containing— 
‘‘(i) a list of all the applications ap-
proved under this paragraph prior to the 
publication of the report; 
‘‘(ii) the number and locations of the 
underserved areas taken into account in 
approving such applications; and 
‘‘(iii) the total number of members of 
credit unions who are members by reason 
of the approval of such applications.’’. 
(b) UNDERSERVED AREA DEFINED.—Section 101 of 
the Federal Credit Union Act (12 U.S.C. 1752) is amend-
ed— 
(1) by striking ‘‘and’’ at the end of paragraph 
(8); 
(2) by striking the period at the end of para-
graph (9) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(10) the term ‘underserved area’— 
‘‘(A) means a geographic area consisting of 
a single census tract or a group of census 
tracts, each of which meets the criteria for— 
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‘‘(i) a low-income community, as de-
fined in section 45D(e) of the Internal 
Revenue Code of 1986; or 
‘‘(ii) is underserved, based on data of 
the Board and the Federal banking agen-
cies (as defined in section 3 of the Federal 
Deposit Insurance Act), by other deposi-
tory institutions (as defined in section 
19(b)(1)(A) of the Federal Reserve Act); 
and 
‘‘(B) notwithstanding subparagraph (A), 
includes, with respect to any Federal credit 
union, any geographic area within which such 
credit union— 
‘‘(i) has received approval to provide 
service before the date of the enactment of 
this paragraph from the National Credit 
Union Administration; and 
‘‘(ii) has established a service facility 
before such date of enactment.’’. 
(c) CONFORMING AMENDMENT.—Section 109(e)(2) 
of the Federal Credit Union Act (12 U.S.C. 1759(e)(2)) 
is amended by inserting ‘‘subsection (c)(2) and’’ after 
‘‘provided in’’. 
Æ 
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