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H.R.6312 - Credit Union, Bank, and Thrift Regulatory Relief Act of 2008
To advance credit union efforts to promote economic growth, modify credit union regulatory standards and reduce burdens, to provide regulatory relief and improve productivity for insured depository institutions, and for other purposes.
|Version||Word Count||Changes From Previous Version||Percent Change|
|Introduced in House||5,288||n/a||n/a|
|Engrossed in House||5,301||3||2%|
|Referred in Senate||5,262||5 Show Changes Hide Changes||5%|
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June 25, 2008CommentsClose CommentsPermalink
To advance credit union efforts to promote economic growth, modify credit union regulatory standards and reduce burdens, to provide regulatory relief and improve productivity for insured depository institutions, and for other purposes.CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
TITLE I--CREDIT UNIONS
TITLE II--SAVINGS ASSOCIATION PROVISIONS
TITLE III--NOTICE PROVISIONS
TITLE IV--BUSINESS CHECKING
TITLE I--CREDIT UNIONSCommentsClose CommentsPermalink
SEC. 101. INVESTMENTS IN SECURITIES BY FEDERAL CREDIT UNIONS.
‘(1) IN GENERAL- In addition to the investments authorized in subsection (a), a Federal credit union may purchase and hold for its own account such investment securities of investment grade as the Board may authorize by regulation, subject to such limitations and restrictions as the Board may prescribe in the regulations.CommentsClose CommentsPermalink
‘(A) SINGLE OBLIGOR- In no event may the total amount of investment securities of any single obligor or maker held by a Federal credit union for the credit union’s own account exceed at any time an amount equal to 10 percent of the net worth of the credit union.CommentsClose CommentsPermalink
‘(B) AGGREGATE INVESTMENTS- In no event may the aggregate amount of investment securities held by a Federal credit union for the credit union’s own account exceed at any time an amount equal to 10 percent of the assets of the credit union.CommentsClose CommentsPermalink
‘(A) IN GENERAL- For purposes of this subsection, the term ‘investment security’ means marketable obligations evidencing the indebtedness of any person in the form of bonds, notes, or debentures and other instruments commonly referred to as investment securities.CommentsClose CommentsPermalink
‘(4) INVESTMENT GRADE DEFINED- The term ‘investment grade’ means with respect to an investment security purchased by a credit union for its own account, an investment security that at the time of such purchase is rated in one of the 4 highest rating categories by at least 1 nationally recognized statistical rating organization.CommentsClose CommentsPermalink
‘(5) CLARIFICATION OF PROHIBITION ON STOCK OWNERSHIP- No provision of this subsection shall be construed as authorizing a Federal credit union to purchase shares of stock of any corporation for the credit union’s own account, except as otherwise permitted by law.’.CommentsClose CommentsPermalink
SEC. 102. INCREASE IN INVESTMENT LIMIT IN CREDIT UNION SERVICE ORGANIZATIONS.
Section 107(a)(7)(I) of the Federal Credit Union Act (
SEC. 103. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS TO NONPROFIT RELIGIOUS ORGANIZATIONS.
Section 107A(a) of the Federal Credit Union Act (
SEC. 104. AUTHORITY OF NCUA TO ESTABLISH LONGER MATURITIES FOR CERTAIN CREDIT UNION LOANS.
Section 107(a)(5) of the Federal Credit Union Act (
SEC. 105. PROVIDING THE NATIONAL CREDIT UNION ADMINISTRATION WITH GREATER FLEXIBILITY IN RESPONDING TO MARKET CONDITIONS.
Section 107(a)(5)(A)(vi)(I) of the Federal Credit Union Act (
SEC. 106. CONVERSIONS OF CERTAIN CREDIT UNIONS TO A COMMUNITY CHARTER.
‘(3) CRITERIA FOR CONTINUED MEMBERSHIP OF CERTAIN MEMBER GROUPS IN COMMUNITY CHARTER CONVERSIONS- In the case of a voluntary conversion of a common-bond credit union described in paragraph (1) or (2) of subsection (b) into a community credit union described in subsection (b)(3), the Board shall prescribe, by regulation, the criteria under which the Board may determine that a member group or other portion of a credit union’s existing membership, that is located outside the well-defined local community, neighborhood, or rural district that shall constitute the community charter, can be satisfactorily served by the credit union and remain within the community credit union’s field of membership.’.CommentsClose CommentsPermalink
SEC. 107. CREDIT UNION PARTICIPATION IN THE SBA SECTION 504 PROGRAM.
Section 107(a)(5)(A)(iii) of the Federal Credit Union Act (
SEC. 108. AMENDMENTS RELATING TO CREDIT UNION SERVICE TO UNDERSERVED AREAS.
‘(A) IN GENERAL- Notwithstanding subsection (b), the Board may approve an application by a Federal credit union to allow the membership of such credit union to include any person or organization whose principal residence or place of business is located within a local community, neighborhood, or rural district if--CommentsClose CommentsPermalink
‘(I) at any time after August 7, 1998, that all of the local community, neighborhood, or rural district taken into account for purposes of this paragraph is an underserved area (as defined in section 101(10)); andCommentsClose CommentsPermalink
‘(ii) before the end of the 24-month period beginning on the date of such approval, the credit union has established and maintains an office or facility in the local community, neighborhood, or rural district at which credit union services are available.CommentsClose CommentsPermalink
‘(B) TERMINATION OF APPROVAL- Any failure of a Federal credit union to meet the requirement of clause (ii) of subparagraph (A) by the end of the 24-month period referred to in such clause shall constitute a termination, as a matter of law, of any approval of an application under this paragraph by the Board with respect to the membership of such credit union.CommentsClose CommentsPermalink
‘(C) ANNUAL CREDIT UNION REPORTING REQUIREMENT- Any Federal credit union which has an application approved under this paragraph shall submit an annual report to the Administration on the number of members of the credit union who are members by reason of such application and the number of offices or facilities maintained by the credit union in the local community, neighborhood, or rural district taken into account by the Board in approving such application.CommentsClose CommentsPermalink
‘(ii) is not a tract in which 50 percent or more of the resident families have annual incomes in excess of $75,000 (as adjusted periodically by the Board, at the discretion of the Board, to reflect changes in the average Consumer Price Index for all-urban consumers published by the Department of Labor); andCommentsClose CommentsPermalink
‘(i) has received approval to provide service before the date of the enactment of the Credit Union, Bank, and Thrift Regulatory Relief Act of 2008 from the National Credit Union Administration; andCommentsClose CommentsPermalink
SEC. 109. SHORT-TERM PAYDAY LOAN ALTERNATIVES WITHIN FIELD OF MEMBERSHIP.
‘(16) to make short-term unsecured loans as an alternative to payday loans, in amounts not more than $1,000 each and for a term of not more than 90 days, to nonmembers in the field of membership, subject to the same terms and conditions as are applicable under paragraph (5)(A), including the interest rate ceiling, with respect to loans to members, to the extent applicable, and to regulations prescribed by the Board.’.CommentsClose CommentsPermalink
SEC. 110. CREDIT UNION GOVERNANCE.
‘(1) EXPULSION OF MEMBERS FOR NONPARTICIPATION OR FOR JUST CAUSE- The board of directors of a Federal credit union may, by majority vote of a quorum of directors, adopt and enforce a policy with respect to expulsion from membership, by a majority vote of such board of directors, based on just cause, including disruption of credit union operations, or on nonparticipation by a member in the affairs of the credit union.CommentsClose CommentsPermalink
‘(2) WRITTEN NOTICE OF POLICY TO MEMBERS- If a policy described in paragraph (1) is adopted, written notice of the policy as adopted and the effective date of such policy shall be provided to--CommentsClose CommentsPermalink
(b) Term Limits Authorized for Board Members of Federal Credit Unions- Section 111(a) of the Federal Credit Union Act (
SEC. 111. ENCOURAGING SMALL BUSINESS DEVELOPMENT IN UNDERSERVED URBAN AND RURAL COMMUNITIES.
‘(v) that is made to a member, the proceeds of which are to be used for commercial, corporate, business, farm or agricultural purposes in an underserved area if such extension of credit--CommentsClose CommentsPermalink
‘(I) is made to a person or organization whose principal residence or place of business is located within an underserved area (as defined in section 101(10)) served by the credit union, and is not a business, or a local outlet of a business, operating on a nationwide basis (for purposes of the preceding clause, a locally-owned franchise that consists only of local operations shall not be treated as a business operating on a nationwide basis); orCommentsClose CommentsPermalink
TITLE II--SAVINGS ASSOCIATION PROVISIONSCommentsClose CommentsPermalink
SEC. 201. RESTATEMENT OF AUTHORITY FOR FEDERAL SAVINGS ASSOCIATIONS TO INVEST IN SMALL BUSINESS INVESTMENT COMPANIES.
‘(D) SMALL BUSINESS INVESTMENT COMPANIES- Any Federal savings association may invest in 1 or more small business investment companies, or in any entity established to invest solely in small business investment companies formed under the Small Business Investment Act of 1958, except that the total amount of investments under this subparagraph may not at any time exceed the amount equal to 5 percent of capital and surplus of the savings association.’.CommentsClose CommentsPermalink
SEC. 202. REMOVAL OF LIMITATION ON INVESTMENTS IN AUTO LOANS.
(b) Technical and Conforming Amendment Relating to Qualified Thrift Investments- Section 10(m)(4)(C)(ii) of the Home Owners’ Loan Act (
SEC. 203. REPEAL OF QUALIFIED THRIFT LENDER REQUIREMENT WITH RESPECT TO OUT-OF-STATE BRANCHES.
SEC. 204. SMALL BUSINESS AND OTHER COMMERCIAL LOANS.
(a) Elimination of Lending Limit on Small Business Loans- Section 5(c)(1) of the Home Owners’ Loan Act (
(b) Increase in Lending Limit on Other Business Loans- Section 5(c)(2)(A) of the Home Owners’ Loan Act (
SEC. 205. INCREASE IN LIMITS ON COMMERCIAL REAL ESTATE LOANS.
SEC. 206. SAVINGS ASSOCIATION CREDIT CARD BANKS.
Section 10(a)(1)(A) of the Home Owners’ Loan Act (
TITLE III--NOTICE PROVISIONSCommentsClose CommentsPermalink
SEC. 301. EXCEPTION TO ANNUAL PRIVACY NOTICE REQUIREMENT UNDER THE GRAMM-LEACH-BLILEY ACT.
‘(1) provides nonpublic personal information only in accordance with the provisions of subsection (b)(2) or (e) of section 502 or regulations prescribed under section 504(b);CommentsClose CommentsPermalink
‘(3) has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to consumers in accordance with this subsection,CommentsClose CommentsPermalink
shall not be required to provide an annual disclosure under this subsection until such time as the financial institution fails to comply with any criteria described in paragraph (1), (2), or (3).CommentsClose CommentsPermalink
‘(1) the financial institution is licensed by a State and is subject to existing regulation of consumer confidentiality that prohibits disclosure of nonpublic personal information without knowing and expressed consent of the consumer in the form of laws, rules, or regulation of professional conduct or ethics promulgated either by the court of highest appellate authority or by the principal legislative body or regulatory agency or body of any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, or the Northern Mariana Islands; orCommentsClose CommentsPermalink
‘(2) the financial institution is licensed by a State and becomes subject to future regulation of consumer confidentiality that prohibits disclosure of nonpublic personal information without knowing and expressed consent of the consumer in the form of laws, rules, or regulation of professional conduct or ethics promulgated either by the court of highest appellate authority or by the principal legislative body or regulatory agency or body of any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, or the Northern Mariana Islands.’.CommentsClose CommentsPermalink
TITLE IV--BUSINESS CHECKINGCommentsClose CommentsPermalink
SEC. 401. SHORT TITLE.
SEC. 402. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED FOR ALL BUSINESSES.
‘(b) Notwithstanding any other provision of law, any depository institution may permit the owner of any deposit or account which is a deposit or account on which interest or dividends are paid and is not a deposit or account described in subsection (a)(2) to make up to 24 transfers per month (or such greater number as the Board of Governors of the Federal Reserve System may determine by rule or order), for any purpose, to another account of the owner in the same institution. An account offered pursuant to this subsection shall be considered a transaction account for purposes of section 19 of the Federal Reserve Act unless the Board of Governors of the Federal Reserve System determines otherwise.’.CommentsClose CommentsPermalink
SEC. 403. INTEREST-BEARING TRANSACTION ACCOUNTS AUTHORIZED.
(2) HOME OWNERS’ LOAN ACT- The first sentence of section 5(b)(1)(B) of the Home Owners’ Loan Act (
SEC. 404. RULES OF CONSTRUCTION.
(3) any benefit which may accrue to the holder or the beneficiary of such escrow account as a result of an action of the depository institution described in subparagraph (1) or (2) or similar in nature to such action, including any benefits which have been so determined by the appropriate Federal regulator,CommentsClose CommentsPermalink
shall not be treated as the payment or receipt of interest for purposes of this title and any provision of
SEC. 405. CONSUMER BANKING COSTS ASSESSMENT.
‘SEC. 30. SURVEY OF BANK FEES AND SERVICES.
‘(a) Biennial Survey Required- The Board of Governors of the Federal Reserve System shall obtain biennially a sample, which is representative by type and size of the institution (including small institutions) and geographic location, of the following retail banking services and products provided by insured depository institutions and insured credit unions (along with related fees and minimum balances):CommentsClose CommentsPermalink
‘(2) NEGOTIABLE ORDER OF WITHDRAWAL ACCOUNTS AND SAVINGS ACCOUNTS- Data on negotiable order of withdrawal accounts and savings accounts shall include, at a minimum, the following:CommentsClose CommentsPermalink
‘(5) OTHER FEES AND CHARGES- Data on any other fees and charges that the Board of Governors of the Federal Reserve System determines to be appropriate to meet the purposes of this section.CommentsClose CommentsPermalink
‘(6) FEDERAL RESERVE BOARD AUTHORITY- The Board of Governors of the Federal Reserve System may cease the collection of information with regard to any particular fee or charge specified in this subsection if the Board makes a determination that, on the basis of changing practices in the financial services industry, the collection of such information is no longer necessary to accomplish the purposes of this section.CommentsClose CommentsPermalink
‘(1) PREPARATION- The Board of Governors of the Federal Reserve System shall prepare a report of the results of each survey conducted pursuant to subsections (a) and (b) of this section and section 136(b)(1) of the Consumer Credit Protection Act.CommentsClose CommentsPermalink
‘(2) CONTENTS OF THE REPORT- In addition to the data required to be collected pursuant to subsections (a) and (b), each report prepared pursuant to paragraph (1) shall include a description of any discernible trend, in the Nation as a whole, in a representative sample of the 50 States (selected with due regard for regional differences), and in each consolidated metropolitan statistical area (as defined by the Director of the Office of Management and Budget), in the cost and availability of the retail banking services, including those described in subsections (a) and (b) (including related fees and minimum balances), that delineates differences between institutions on the basis of the type of institution and the size of the institution, between large and small institutions of the same type, and any engagement of the institution in multistate activity.CommentsClose CommentsPermalink
‘(3) SUBMISSION TO THE CONGRESS- The Board of Governors of the Federal Reserve System shall submit an biennial report to the Congress not later than June 1, 2009, and before the end of each 2-year period beginning after such date.CommentsClose CommentsPermalink
‘(d) Definitions- For purposes of this section, the term ‘insured depository institution’ has the meaning given such term in section 3 of the Federal Deposit Insurance Act, and the term ‘insured credit union’ has the meaning given such term in section 101 of the Federal Credit Union Act.’.CommentsClose CommentsPermalink
‘(1) COLLECTION REQUIRED- The Board shall collect, on a semiannual basis, from a broad sample of financial institutions which offer credit card services, credit card price and availability information including--CommentsClose CommentsPermalink
(c) Repeal of Other Report Provisions- Section 1002 of Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and section 108 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 are hereby repealed.CommentsClose CommentsPermalink
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