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H.R. 3584 — what changed

Capital Access for Small Community Financial Institutions Act of 2014

From Introduced in House to Engrossed in House. 1 section amended and 2 added between Introduced in House and Engrossed in House.

Section 1 Short title

added This Act may be cited as the “Capital Access for Small Community Financial Institutions Act of 2014”.

(a)
removed In general— Section 4(a) of the Federal Home Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding at the end the following new paragraph:

removed “(5) Certain privately insured credit unions

removed “(A) In general—Subject to the requirements of subparagraph (B), a credit union shall be treated as an insured depository institution for purposes of determining the eligibility of such credit union for membership in a Federal home loan bank under paragraphs (1), (2), and (3).

removed “(B) Certification by appropriate supervisor

removed “(i) In general—For purposes of this paragraph and subject to clause (ii), a credit union which lacks Federal deposit insurance and which has applied for membership in a Federal home loan bank may be treated as meeting all the eligibility requirements for Federal deposit insurance only if the appropriate supervisor of the State in which the credit union is chartered has determined that the credit union meets all the eligibility requirements for Federal deposit insurance as of the date of the application for membership.

removed “(ii) Certification deemed valid—If, in the case of any credit union to which clause (i) applies, the appropriate supervisor of the State in which such credit union is chartered fails to make a determination pursuant to such clause by the end of the 6-month period beginning on the date of the application, the credit union shall be deemed to have met the requirements of clause (i).

removed “(C) Security interests of federal home loan bank not avoidable—Notwithstanding any provision of State law authorizing a conservator or liquidating agent of a credit union to repudiate contracts, no such provision shall apply with respect to—

removed “(i) any extension of credit from any Federal home loan bank to any credit union which is a member of any such bank pursuant to this paragraph; or

removed “(ii) any security interest in the assets of such credit union securing any such extension of credit.”

(b)
removed Copies of audits of private insurers of certain depository institutions required To be provided to supervisory agencies— Section 43(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1831t(a)(2)) is amended—
(1)
removed by striking “and” at the end of subparagraph (A)(i);
(2)
removed by striking the period at the end of clause (ii) of subparagraph (A) and inserting a semicolon;
(3)
removed by inserting the following new clauses at the end of subparagraph (A):

removed “(iii) in the case of depository institutions described in subsection (e)(2)(A) the deposits of which are insured by the private insurer, the National Credit Union Administration, not later than 7 days after that audit is completed; and

removed “(iv) in the case of depository institutions described in subsection (e)(2)(A) the deposits of which are insured by the private insurer which are members of a Federal home loan bank, the Federal Housing Finance Agency, not later than 7 days after that audit is completed.”

(4)
removed by adding at the end the following new subparagraph:

removed “(C) Consultation—The appropriate supervisory agency of each State in which a private deposit insurer insures deposits in an institution described in subsection (e)(2)(A) which—

removed “(i) lacks Federal deposit insurance; and

removed “(ii) has become a member of a Federal home loan bank,”

Sec. 2 Privately insured credit unions authorized to become members of a Federal home loan bank

added
(a)
added In general— Section 4(a) of the Federal Home Loan Bank Act (12 U.S.C. 1424(a)) is amended by adding at the end the following new paragraph:

added “(5) Certain privately insured credit unions

added “(A) In general—Subject to the requirements of subparagraph (B), a credit union shall be treated as an insured depository institution for purposes of determining the eligibility of such credit union for membership in a Federal home loan bank under paragraphs (1), (2), and (3).

added “(B) Certification by appropriate supervisor

added “(i) In general—For purposes of this paragraph and subject to clause (ii), a credit union which lacks Federal deposit insurance and which has applied for membership in a Federal home loan bank may be treated as meeting all the eligibility requirements for Federal deposit insurance only if the appropriate supervisor of the State in which the credit union is chartered has determined that the credit union meets all the eligibility requirements for Federal deposit insurance as of the date of the application for membership.

added “(ii) Certification deemed valid—If, in the case of any credit union to which clause (i) applies, the appropriate supervisor of the State in which such credit union is chartered fails to make a determination pursuant to such clause by the end of the 6-month period beginning on the date of the application, the credit union shall be deemed to have met the requirements of clause (i).

added “(C) Security interests of federal home loan bank not avoidable—Notwithstanding any provision of State law authorizing a conservator or liquidating agent of a credit union to repudiate contracts, no such provision shall apply with respect to—

added “(i) any extension of credit from any Federal home loan bank to any credit union which is a member of any such bank pursuant to this paragraph; or

added “(ii) any security interest in the assets of such credit union securing any such extension of credit.

added “(D) Protection for certain Federal home loan bank advances—Notwithstanding any State law to the contrary, if a Bank makes an advance under section 10 to a State-chartered credit union that is not federally insured—

added “(i) the Bank’s interest in any collateral securing such advance has the same priority and is afforded the same standing and rights that the security interest would have had if the advance had been made to a federally-insured credit union; and

added “(ii) the Bank has the same right to access such collateral that the Bank would have had if the advance had been made to a federally-insured credit union.”

(b)
added Copies of audits of private insurers of certain depository institutions required To be provided to supervisory agencies— Section 43(a)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1831t(a)(2)(A)) is amended—
(1)
added in clause (i), by striking “and” at the end;
(2)
added in clause (ii), by striking the period at the end and inserting a semicolon; and
(3)
added by inserting at the end the following new clause:

added “(iii) in the case of depository institutions described in subsection (e)(2)(A) the deposits of which are insured by the private insurer which are members of a Federal home loan bank, to the Federal Housing Finance Agency, not later than 7 days after the audit is completed.”

Sec. 3 GAO Report

added

added Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and submit a report to Congress—

(1)
added on the adequacy of insurance reserves held by a private deposit insurer that insures deposits in an entity described in section 43(e)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1831t(e)(2)(A)); and
(2)
added for an entity described in paragraph (1) the deposits of which are insured by a private deposit insurer, information on the level of compliance with Federal regulations relating to the disclosure of a lack of Federal deposit insurance.