|
May 6, 2009 - The Senate passed S. 896 on May 6, a bill that includes several provisions affecting credit unions.
The bill extends the increase in credit union share and federal deposit insurance to $250,000 for at least four years and expands the National Credit Union Administration’s (NCUA) borrowing authority from $100 million to $6 billion.
Further, this legislation provides NCUA with the authority to establish a fund to absorb losses from the corporate credit union system, thereby allowing credit unions more time to recapitalize the National Credit Union Share Insurance Fund (NCUSIF). S. 896 states that the NCUSIF would need to return to its designated equity ratio before the end of a five-year period, or such longer as the NCUA Board may determine necessary due to extraordinary circumstances.
S. 896 allows the Federal Deposit Insurance Fund (FDIC) eight years to restore its fund, extended from five years. The FDIC would also be granted $100 billion in borrowing authority through this bill.
NASCUS will report developments on this bill as it is considered by the House. Check www.nascus.org for updates.
|
 |
|
|
NASCUS News Story Archive
Pressroom |
