Supplemental capital bill introduced in House again
March 1, 2017 -- Legislation that would redefine “net worth” for federally insured credit unions to include uninsured non-share capital accounts under certain conditions – and give federal credit unions ready access to supplemental capital – and has again been introduced in the House, and again by long-time credit union supporters.
Reps. Peter King (R-N.Y.) and Brad Sherman (D-Calif.) introduced the “Capital Access for Small Businesses and Jobs Act” (H.R. 1244) which is expected to resemble legislation introduced in the last Congress (H.R. 989). The text of the latest bill is not yet available.
The bill in the 114th Congress (also introduced by King and Sherman) would have allowed federal credit unions to receive payments on certain uninsured non-share accounts, subject to “such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the NCUA Board.”
The bill also required any board-prescribed system of prompt corrective action to take into account that “credit unions rely predominantly (under current law, must rely) upon retained earnings to build net worth” and redefines "net worth" with respect to any insured credit union (other than a low-income credit union) to include uninsured non-share capital accounts that meet certain conditions.
The bill in the last Congress, while introduced, received 32 co-sponsors – but moved no further in the legislative process.