A bill to clarify the National Credit Union Administration authority to make stabilization fund expenditures without borrowing from the Treasury.
PL 111-382 (S.4036), enacted 01/04/2011

124 STAT. 4134 
PUBLIC LAW 111–382—JAN. 4, 2011 
Public Law 111–382 
111th Congress 
An Act 
To clarify the National Credit Union Administration authority to make stabilization 
fund expenditures without borrowing from the Treasury. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. STABILIZATION FUND. 
(a) ADDITIONAL ADVANCES.—Section 217(c)(3) of the Federal 
Credit Union Act (12 U.S.C. 1790e(c)(3)) is amended by inserting 
before the period at the end the following: ‘‘and any additional 
advances’’. 
(b) ASSESSMENTS.—Section 217 of the Federal Credit Union 
Act (12 U.S.C. 1790e) is amended by striking subsection (d) and 
inserting the following: 
‘‘(d) ASSESSMENT AUTHORITY.— 
‘‘(1) ASSESSMENTS RELATING TO EXPENDITURES UNDER SUB-
SECTION (B).—In order to make expenditures, as described in 
subsection (b), the Board may assess a special premium with 
respect to each insured credit union in an aggregate amount 
that is reasonably calculated to make any pending or future 
expenditure described in subsection (b), which premium shall 
be due and payable not later than 60 days after the date 
of the assessment. In setting the amount of any assessment 
under this subsection, the Board shall take into consideration 
any potential impact on credit union earnings that such an 
assessment may have. 
‘‘(2) SPECIAL PREMIUMS RELATING TO REPAYMENTS UNDER 
SUBSECTION (C)(3).—Not later than 90 days before the scheduled 
date of each repayment described in subsection (c)(3), the Board 
shall set the amount of the upcoming repayment and shall 
determine whether the Stabilization Fund will have sufficient 
funds to make the repayment. If the Stabilization Fund is 
not likely to have sufficient funds to make the repayment, 
the Board shall assess with respect to each insured credit 
union a special premium, which shall be due and payable 
not later than 60 days after the date of the assessment, in 
an aggregate amount calculated to ensure that the Stabilization 
Fund is able to make the required repayment. 
‘‘(3) COMPUTATION.—Any assessment or premium charge 
for an insured credit union under this subsection shall be 
stated as a percentage of its insured shares, as represented 
on the previous call report of that insured credit union. The 
percentage shall be identical for each insured credit union. 
Any insured credit union that fails to make timely payment 
Deadlines. 
Jan. 4, 2011 
[S. 4036] 
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124 STAT. 4135 
PUBLIC LAW 111–382—JAN. 4, 2011 
of the assessment or special premium is subject to the proce-
dures and penalties described under subsections (d), (e), and 
(f) of section 202.’’. 
SEC. 2. EQUITY RATIO. 
Section 202(h)(2) of the Federal Credit Union Act (12 U.S.C. 
1782(h)(2)) is amended by striking ‘‘when applied to the Fund,’’ 
and inserting ‘‘which shall be calculated using the financial state-
ments of the Fund alone, without any consolidation or combination 
with the financial statements of any other fund or entity,’’. 
SEC. 3. NET WORTH DEFINITION. 
Section 216(o)(2) of the Federal Credit Union Act (12 U.S.C. 
1790d(o)(2)) is amended to read as follows: 
‘‘(2) NET WORTH.—The term ‘net worth’— 
‘‘(A) with respect to any insured credit union, means 
the retained earnings balance of the credit union, as deter-
mined under generally accepted accounting principles, 
together with any amounts that were previously retained 
earnings of any other credit union with which the credit 
union has combined; 
‘‘(B) with respect to any insured credit union, includes, 
at the Board’s discretion and subject to rules and regula-
tions established by the Board, assistance provided under 
section 208 to facilitate a least-cost resolution consistent 
with the best interests of the credit union system; and 
‘‘(C) with respect to a low-income credit union, includes 
secondary capital accounts that are— 
‘‘(i) uninsured; and 
‘‘(ii) subordinate to all other claims against the 
credit union, including the claims of creditors, share-
holders, and the Fund.’’. 
SEC. 4. STUDY OF NATIONAL CREDIT UNION ADMINISTRATION. 
(a) STUDY.—The Comptroller General of the United States shall 
conduct a study of the National Credit Union Administration’s 
supervision of corporate credit unions and implementation of prompt 
corrective action. 
(b) ISSUES TO BE STUDIED.—In conducting the study required 
under subsection (a), the Comptroller General shall— 
(1) determine the reasons for the failure of any corporate 
credit union since 2008; 
(2) evaluate the adequacy of the National Credit Union 
Administration’s response to the failures of corporate credit 
unions, including with respect to protecting taxpayers, avoiding 
moral hazard, minimizing the costs of resolving such corporate 
credit unions, and the ability of insured credit unions to bear 
any assessments levied to cover such costs; 
(3) evaluate the effectiveness of implementation of prompt 
corrective action by the National Credit Union Administration 
for both insured credit unions and corporate credit unions; 
and 
(4) examine whether the National Credit Union Adminis-
tration has effectively implemented each of the recommenda-
tions by the Inspector General of the National Credit Union 
Administration in its Material Loss Review Reports, and, if 
not, the adequacy of the National Credit Union Administration’s 
reasons for not implementing such recommendation. 
Evaluation. 
Evaluation. 
Determination. 
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124 STAT. 4136 
PUBLIC LAW 111–382—JAN. 4, 2011 
LEGISLATIVE HISTORY—S. 4036: 
CONGRESSIONAL RECORD, Vol. 156 (2010): 
Dec. 16, considered and passed Senate. 
Dec. 22, considered and passed House. 
(c) REPORT TO COUNCIL.—Not later than 1 year after the date 
of enactment of this Act, the Comptroller General shall submit 
a report on the results of the study required under this section 
to— 
(1) the Committee on Banking, Housing, and Urban Affairs 
of the Senate; 
(2) the Committee on Financial Services of the House of 
Representatives; and 
(3) the Financial Stability Oversight Council. 
(d) COUNCIL REPORT OF ACTION.—Not later than 6 months 
after the date of receipt of the report from the Comptroller General 
under subsection (c), the Financial Stability Oversight Council shall 
submit a report to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services 
of the House of Representatives on actions taken in response to 
the report, including any recommendations issued to the National 
Credit Union Administration under section 120 of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5330). 
Approved January 4, 2011. 
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