Text: S.4036 — 111th Congress (2009-2010)All Information (Except Text)

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Public Law No: 111-382 (01/04/2011)

 
[111th Congress Public Law 382]
[From the U.S. Government Printing Office]



[[Page 4133]]

                         NATIONAL CREDIT UNION 
                         AUTHORITY CLARIFICATION

[[Page 124 STAT. 4134]]

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. <<NOTE: Jan. 4, 2011 -  [S. 4036]>> 

    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) <<NOTE: Deadlines.>>  Assessment Authority.--
            ``(1) Assessments relating to expenditures under subsection 
        (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

[[Page 124 STAT. 4135]]

        of the assessment or special premium is subject to the 
        procedures 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 statements 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 determined 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 regulations 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, shareholders, 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) <<NOTE: Determination.>>  determine the reasons for the 
        failure of any corporate credit union since 2008;
            (2) <<NOTE: Evaluation.>>  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) <<NOTE: Evaluation.>>  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 Administration 
        has effectively implemented each of the recommendations 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.

[[Page 124 STAT. 4136]]

    (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.

LEGISLATIVE HISTORY--S. 4036:
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CONGRESSIONAL RECORD, Vol. 156 (2010):
            Dec. 16, considered and passed Senate.
            Dec. 22, considered and passed House.

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