Capital Access for Small Businesses and Jobs Act

Bill: 114-hr-989
Sponsor: full_name: Rep. King, Peter T. [R-NY-2]
Introduced: 2015-02-13
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Bank accounts, deposits, capital

Banking and financial institutions regulation

National Credit Union Administration
Latest action: action_date: 2015-02-13
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2015-02-13
action_desc: Introduced in House
text: <p><b>Capital Access for Small Businesses and Jobs Act </b></p> <p> Amends the Federal Credit Union Act to empower federal credit unions to receive payments on certain uninsured non-share accounts, subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the National Credit Union Administration Board (Board).</p> <p>Requires any Board-prescribed system of prompt corrective action to take into account that credit unions rely predominantly (under current law, must rely) upon retained earnings to build net worth.</p> <p>Redefines &quot;net worth&quot; with respect to any insured credit union (other than a low-income credit union) to include uninsured non-share capital accounts that:</p> <ul> <li>do not alter the cooperative nature of the credit union;</li> <li>are subordinate to all other claims against the credit union, including the claims of creditors, shareholders, and the National Credit Union Share Insurance Fund;</li> <li>are available to cover operating losses in excess of retained earnings and, to the extent so applied, will not be replenished;</li> <li>if they have a stated maturity, have an initial maturity of at least five years, and their net worth may be discounted at the Board's discretion when the remaining maturity is less than five years;</li> <li>are subject to disclosure and consumer protection requirements as determined by the Board;</li> <li>are offered by a credit union that is sufficiently capitalized and well-managed; and</li> <li>are subject to such rules and regulations as the Board may establish.<br> </li> </ul>

tv_txt: I 114th CONGRESS 1st Session H. R. 989 IN THE HOUSE OF REPRESENTATIVES February 13, 2015 Mr. King of New York (for himself, Mr. Sherman , Mr. Hanna , Mr. Blumenauer , Mr. Heck of Washington , Mr. Israel , Mr. Jones , Mrs. Napolitano , Ms. Pingree , Ms. Norton , Mr. Collins of New York , Mr. Posey , Mr. Schiff , Mr. Takano , Mr. Huffman , and Mr. Meeks ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To clarify the National Credit Union Administration authority to improve credit union safety and soundness.

1. Short title This Act may be cited as the Capital Access for Small Businesses and Jobs Act . 2. Improving credit union safety and soundness The Federal Credit Union Act ( 12 U.S.C. 1751 et seq. ) is amended— (1) in section 107— (A) in paragraph (16), by striking and at the end; (B) in paragraph (17), by striking the period and inserting ; and ; and (C) by adding at the end the following: (18) to receive payments on uninsured non-share accounts described under section 216(o)(2)(D), subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Board. ; and (2) in section 216— (A) in subsection (b)(1)(B)(ii), by striking must rely and inserting rely predominantly ; and (B) in subsection (o)(2)— (i) in subparagraph (B), by striking and at the end; (ii) in subparagraph (C)(ii), by striking the period and inserting ; and ; and (iii) by adding at the end the following: (D) with respect to any insured credit union other than a low-income credit union, includes uninsured non-share accounts as authorized by the Board, that— (i) do not alter the cooperative nature of the credit union; (ii) are subordinate to all other claims against the credit union, including the claims of creditors, shareholders, and the Fund; (iii) are available to be applied to cover operating losses of the credit union in excess of its retained earnings and, to the extent so applied, will not be replenished; (iv) if they have a stated maturity, have an initial maturity of at least 5 years; (v) if they have a stated maturity, the net worth value of such accounts may be discounted at the discretion of the Board when the remaining maturity is less than 5 years; (vi) are subject to disclosure and consumer protection requirements as determined by the Board; (vii) are offered by a credit union that is determined by the Board to be sufficiently capitalized and well-managed; and (viii) are subject to such rules and regulations as the Board may establish. .