A bill to clarify the National Credit Union Administration authority to make stabilization fund expenditures without borrowing from the Treasury.

Bill: 111-s-4036
Sponsor: Sen. Dodd, Christopher J. [D-CT]
Introduced: 2010-12-16 in the Senate
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital
Banking and financial institutions regulation
Congressional oversight
Government trust funds

Summary:
action_date: 2010-12-16
text: 
Amends the Federal Credit Union Act regarding repayment to the Treasury of advances to the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) for payments connected to the conservatorship, liquidation, or threatened conservatorship or liquidation, of a corporate credit union.
 
 
Revises requirements for assessments on federally insured credit unions by the National Credit Union Administration Board to ensure that the Stabilization Fund will have sufficient funds to make scheduled repayments to the Treasury. Authorizes the Board to assess a special premium on each insured credit union in an aggregate amount reasonably calculated to make any pending or future expenditure from the Stabilization Fund.
 
Requires calculation of the equity ratio of the National Credit Union Share Insurance Fund (Insurance Fund), for timing and assessment of premium charges, to use the financial statements of the Insurance Fund alone, without any consolidation or combination with the financial statements of any other fund or entity.
 
Revises the definition of net worth with respect to any insured credit union to include, at Board discretion, special assistance to the insured credit union to avoid liquidation that is provided to facilitate a least-cost resolution consistent with the best interests of the credit union system.
 
Directs the Comptroller General to study and report to Congress and the Financial Stability Oversight Council on the supervision of corporate credit unions and implementation of prompt corrective action by the National Credit Union Administration (NCUA). Requires the Council to report to Congress within six months after receiving the Comptroller General's report on any actions taken in response to it.

action_date: 2010-12-22
text: 

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

 
Amends the Federal Credit Union Act regarding repayment to the Treasury of advances to the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) for payments connected to the conservatorship, liquidation, or threatened conservatorship or liquidation, of a corporate credit union.
 
 
Revises requirements for assessments on federally insured credit unions by the National Credit Union Administration Board to ensure that the Stabilization Fund will have sufficient funds to make scheduled repayments to the Treasury. Authorizes the Board to assess a special premium on each insured credit union in an aggregate amount reasonably calculated to make any pending or future expenditure from the Stabilization Fund. Makes the premium due and payable by 60 days after the assessment date. Requires the Board, in setting the amount of any such assessment, to take into consideration any potential impact on credit union earnings that such an assessment may have.
 
 
Requires calculation of the equity ratio of the National Credit Union Share Insurance Fund (Insurance Fund), for timing and assessment of premium charges, to use the financial statements of the Insurance Fund alone, without any consolidation or combination with the financial statements of any other fund or entity.
 
Revises the definition of net worth with respect to any insured credit union to include, at Board discretion, and subject to Board rules and regulations, special assistance to an insured credit union to avoid liquidation that is provided to facilitate a least-cost resolution consistent with the best interests of the credit union system.
 
Directs the Comptroller General to study and report to Congress and the Financial Stability Oversight Council on the supervision of corporate credit unions and implementation of prompt corrective action by the National Credit Union Administration (NCUA). Requires the Council to report to Congress within six months after receiving the Comptroller General's report on any actions taken in response to it, including any recommendations issued to NCUA under the Dodd-Frank Wall Street Reform and Consumer Protection Act to apply new or heightened standards and safeguards to insured credit unions for financial stability purposes.

action_date: 2011-01-04
text: 

(This measure has not been amended since it was introduced. The expanded summary of the House passed version is repeated here.)

 
Amends the Federal Credit Union Act regarding repayment to the Treasury of advances to the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) for payments connected to the conservatorship, liquidation, or threatened conservatorship or liquidation, of a corporate credit union.
 
 
Revises requirements for assessments on federally insured credit unions by the National Credit Union Administration Board to ensure that the Stabilization Fund will have sufficient funds to make scheduled repayments to the Treasury. Authorizes the Board to assess a special premium on each insured credit union in an aggregate amount reasonably calculated to make any pending or future expenditure from the Stabilization Fund. Makes the premium due and payable by 60 days after the assessment date. Requires the Board, in setting the amount of any such assessment, to take into consideration any potential impact on credit union earnings that such an assessment may have.
 
 
Requires calculation of the equity ratio of the National Credit Union Share Insurance Fund (Insurance Fund), for timing and assessment of premium charges, to use the financial statements of the Insurance Fund alone, without any consolidation or combination with the financial statements of any other fund or entity.
 
Revises the definition of net worth with respect to any insured credit union to include, at Board discretion, and subject to Board rules and regulations, special assistance to an insured credit union to avoid liquidation that is provided to facilitate a least-cost resolution consistent with the best interests of the credit union system.
 
Directs the Comptroller General to study and report to Congress and the Financial Stability Oversight Council on the supervision of corporate credit unions and implementation of prompt corrective action by the National Credit Union Administration (NCUA). Requires the Council to report to Congress within six months after receiving the Comptroller General's report on any actions taken in response to it, including any recommendations issued to NCUA under the Dodd-Frank Wall Street Reform and Consumer Protection Act to apply new or heightened standards and safeguards to insured credit unions for financial stability purposes.


Legislative actions:
action_date: 2011-01-04
text: Became Public Law No: 111-382.
action_date: 2011-01-04
text: Became Public Law No: 111-382.
action_date: 2011-01-04
text: Signed by President.
action_date: 2011-01-04
text: Signed by President.
action_date: 2010-12-28
text: Presented to President.
action_date: 2010-12-28
text: Presented to President.
action_date: 2010-12-22
text: Cleared for White House.
action_date: 2010-12-22
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2010-12-22
text: On passage Passed without objection. (text: CR H8975-8976)
action_date: 2010-12-22
text: Passed/agreed to in House: On passage Passed without objection.(text: CR H8975-8976)
action_date: 2010-12-22
text: Considered by unanimous consent. (consideration: CR H8975-8976)
action_date: 2010-12-22
text: Committee on Financial Services discharged.
action_date: 2010-12-22
text: Committee on Financial Services discharged.
action_date: 2010-12-22
text: Mr. Klein (FL) asked unanimous consent to discharge from committee and consider.
action_date: 2010-12-17
text: Referred to the House Committee on Financial Services.
action_date: 2010-12-17
text: Message on Senate action sent to the House.
action_date: 2010-12-17
text: Received in the House.
action_date: 2010-12-16
text: Introduced in the Senate, read twice, considered, read the third time, and passed without amendment by Unanimous Consent. (consideration: CR S10364-10365; text as passed Senate: CR S10364-10365)
action_date: 2010-12-16
text: Passed/agreed to in Senate: Introduced in the Senate, read twice, considered, read the third time, and passed without amendment by Unanimous Consent.(consideration: CR S10364-10365; text as passed Senate: CR S10364-10365)
action_date: 2010-12-16
text: Introduced in Senate

Enacted as: number: 111-382