H.R. 2317House109th Congress (2005-2007)In Committee

Credit Union Regulatory Improvements Act of 2005

Legislative Activity

Stay on top of the latest movement without scrolling through every action

2 earlier actions

HouseCommittee Latest Action

Referred to the Subcommittee on Financial Institutions and Consumer Credit.

June 3, 2005

View full timeline

HouseIntro Referral

Introduced in House

May 12, 2005

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

May 12, 2005

HouseCommittee

Referred to the Subcommittee on Financial Institutions and Consumer Credit.

June 3, 2005

Floor Debate

3 members

What members said about H.R. 2317 on the floor

3 Democrats

Rep. Ed CaseD-HI-2 · May 13, 2005

Mr. Speaker, I rise today in strong support of H.R. 2317, the Credit Union Regulatory Improvements Act, commonly known as CURIA, of which I am a proud original cosponsor. As I have noted many times…

Mr. Speaker, I rise today in strong support of H.R. 2317, the Credit Union Regulatory Improvements Act, commonly known as CURIA, of which I am a proud original cosponsor.

As I have noted many times in many ways, our Nation's credit unions provide a truly invaluable service to their approximately 84 million members throughout our country, including over 742,000 members in my Hawai`i alone. Where other financial institutions are unable or unwilling to do business as and when desired by consumers, credit unions have prospered by offering fair, convenient and relevant financing. In doing so, they are one of the key linchpins binding together the economic and social life of so many of our communities, including those of non-urban and rural America.

Let me provide you with just one example from my own district: the southern portion of my home Island of Hawai`i. Small rural and agricultural-based communities are dispersed throughout this low population density region, which thus does not lend itself to traditional urban-focused banking.

Instead, the main branch of Ka`u Federal Credit Union, known as the southernmost credit union in the United States, is located in the small town of Na`alehu and provides its residents with highly personal and tailored services. But Ka`u FCU has taken its service a step further and added two additional branches in nearby communities--one in Ocean View and the other in Pahala--each located in a local grocery store and no bigger than the size of a small car.

Of course, credit unions are prospering in urban and suburban areas of our country and my Hawai`i as well. This is because they all share the characteristics of highly personal, member-invested services. They are thus clearly a great success story throughout our entire country.

Support for our credit unions should thus be one of our key goals. Here in Congress, one of the best ways to do so is to support this bipartisan legislation.

H.R. 2317 contains three major sections, which, as outlined below, will modernize credit union net worth standards, advance credit union efforts to promote economic growth, and make several needed modifications to credit union activities, governance, and oversight.

According to the National Credit Union Administration (NCUA), the independent federal agency that charters and supervises federal credit unions, modifications to the Prompt Correction Action (PCA) system are needed to ensure that the standards are ``aptly robust'' and ``not unduly burdensome or constraining.'' This legislation would revise thresholds for PCA net worth categories for credit unions to new net worth ratio thresholds that are comparable to those used by the Federal Deposit Insurance Corporation (FDIC) for the leverage requirement.

H.R. 2317 would also provide a much-needed update to the definition of net worth in the Federal Credit Union Act for purposes of credit union mergers. The Financial Accounting Standards Board has proposed eliminating the pooling accounting method for mergers and requiring all credit union mergers to apply the purchase method after 2006. Under the purchase method of accounting, only the surviving credit union's retained earnings count as net worth for PCA purposes. This legislation codifies that recommendation.

Finally, CURIA will update and modernize a number of specific outdated regulatory burdens and make other necessary changes to the credit union regulatory system, including improving credit union leasing arrangements on federal land, permitting limited investments in securities, reforming credit union governance, and altering credit union conversion voting requirements.

Mr. Speaker, I commend both the gentleman from California (Mr. Royce) and the gentleman from Pennsylvania (Mr. Kanjorski) for once again spearheading CURIA. I look forward to working with them and my other cosponsors in supporting this vital initiative.

Rep. Mark UdallD-CO-2 · Jul 28, 2006

Mr. Speaker, we all recognize the importance of the financial services industry--including both banks and credit unions--to our economy. I support and applaud the steps both have taken toward better…

However, I think there's a need to change some of the rules involving credit cards and I also think we need to remember the need for diversity in the industry. That's why I am cosponsoring H.R. 2317, to update the regulation of credit unions, and have introduced a bill dealing with credit cards.

The last major changes to the Federal Credit Union Act were in 1998, and since then there has been time to identify unnecessary and outdated provisions and develop legislation that would make common sense improvements.

That is the background for H.R. 2317, the Credit Union Regulatory Improvements Act (or ``CURIA''), introduced by our colleagues, Representatives Ed Royce and Paul E. Kanjorski. It combines a series of regulatory enhancements that will allow credit unions to operate more effectively and efficiently. These changes can help improve productivity and efficiency in a competitive and dynamic marketplace, and will translate into better and lower-cost service to credit union members.

The current bill improves upon similar bipartisan legislation introduced in the 108th Congress, and its broad support is shown by the fact that it has no fewer than 121 cosponsors. That support reflects the reality that credit unions--with 87 million members nationwide and 1.5 million just in Colorado--provide choice in the financial services industry.

My support for credit unions does not mean hostility to banks, because I do not think credit unions represent a threat to the continued success of banks. Credit unions remain member-owned not-for- profit institutions directed by volunteer boards that pool their resources to help each other. And while credit unions have changed and grown, that has not prevented banks from growing as well. In 2005, bank profits reached a record level of $134.2 billion.

Banks have a 94% share of the financial services industry, holding more than $10 trillion in assets. In fact, the net growth in bank assets in 2005--$626 billion--was nearly as much as the combined total assets of all credit unions in the country while one of the biggest banks has assets that exceed the $669 billion in assets held by all the credit unions.

In view of these realities, I am not persuaded that the modest changes in credit-union regulation included in CURIA represent a real threat to the continued success of the banking industry--and there is no doubt they can and will benefit consumers.

Similarly, consumers will benefit from the common-sense changes in the rules governing issuance of credit cards that would be accomplished by enacting H.R. 5383, the Credit Card Accountability Responsibility and Disclosure Act, which I introduced earlier this year.

That bill reflects the reality that Congress needs to do more to promote responsibility by those who provide credit, beginning with credit card companies. Like a similar (but not identical) bill introduced by Senator Dodd, my bill takes some simple, common-sense steps to stop abusive practices, educate cardholders, and stiffen the penalties for violations.

I hope that when we return in September, the House will have an opportunity to consider both H.R. 2317, the Credit Union Regulatory Improvements Act, and H.R. 5383, the Credit Card Accountability Responsibility and Disclosure Act.

Rep. Mark UdallD-CO-2 · Jul 28, 2006

Mr. Speaker, we all recognize the importance of the financial services industry, including both banks and credit unions, to our economy. I support and applaud the steps they have taken toward better…

Rep. Gwen MooreD-WI-4 · Jul 14, 2005

Mr. Speaker, I ask unanimous consent to have my name removed as a cosponsor of H.R. 2317.

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued May 12, 2005

109th CONGRESS

1st Session

H. R. 2317

IN THE HOUSE OF REPRESENTATIVES

May 12, 2005

Mr. Royce (for himself, Mr. Kanjorski, Mr. LaTourette, Mrs. Maloney, Mr. Tancredo, Mr. Sanders, Mr. Boehlert, Mr. Gutierrez, Mr. Burton of Indiana, Mr. Case, Mr. Brown of South Carolina, Ms. Jackson-Lee of Texas, Mr. Paul, Mr. Chabot, Mr. Cannon, Mr. Cunningham, Mr. Kuhl of New York, and Mr. Sherman) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To modernize credit union net worth standards, advance credit union efforts to promote economic growth, and modify and ease credit union regulatory standards and burdens, and for other purposes.

Short title

This Act may be cited as the Credit Union Regulatory Improvements Act of 2005.

Capital Reform

101.

Amendments to net worth categories

Section 216(c)(1) of the Federal Credit Union Act (12 U.S.C. 1790d(c)(1)) is amended as follows:

(1)

Well capitalized

(A)

In subparagraph (A)(i), by striking 7 percent and inserting 5 percent.

(B)

In subparagraph (A)(ii), by striking it meets any applicable risk-based net worth requirement under subsection (d) of this section and inserting it has a risk-based net worth ratio of not less than 8 percent.

(2)

Adequately capitalized

(A)

In subparagraph (B)(i), by striking 6 percent and inserting 4 percent.

(B)

In subparagraph (B)(ii), by striking it meets any applicable risk-based net worth requirement under subsection (d) of this section and inserting it has a risk-based net worth ratio of not less than 8 percent.

(3)

Under capitalized

(A)

In subparagraph (C)(i), by striking 6 percent and inserting 4 percent.

(B)

In subparagraph (C)(ii), by striking it fails to meet any applicable risk-based net worth requirement under subsection (d) and inserting it has a risk-based net worth ratio of less than 8 percent.

(4)

Significantly undercapitalized

(A)

In that portion of subparagraph (D) that precedes clause (i), by inserting if after significantly undercapitalized.

(B)

In subparagraph (D)(i)—

(i)

by striking if;

(ii)

by striking 4 percent and inserting 3 percent; and

(iii)

by striking or after the semicolon.

(C)

By striking clause (ii) of subparagraph (D) and inserting the following new clauses:

(ii)

the insured credit union has a risk-based net worth ratio of less than 6 percent; or

(iii)

the insured credit union has a net worth ratio of less than 4 percent, and—

(I)

fails to submit an acceptable net worth restoration plan within the time allowed under subsection (f); or

(II)

materially fails to implement a net worth restoration plan accepted by the Board.

(5)

Relevant capital measures

Section 216(c)(2) is amended by striking leverage limit and inserting relevant capital measures.

102.

Amendments relating to risk-based net worth requirements

(a)

In general

Section 216(d) of the Federal Credit Union Act (12 U.S.C. 1790d(d)) is amended—

(1)

in paragraph (1)—

(A)

by striking that are complex, as defined by the Board; and

(B)

by inserting , as defined by the Board before the period at the end; and

(2)

by striking paragraph (2) and inserting the following new paragraph:

(2)

Standard

The Board shall design the risk-based net worth requirement in relation to risk assets, as defined by the Board, to take account of any material risks to insured credit unions, based on comparable standards for taking into account material risks to insured depository institutions under the Federal Deposit Insurance Act that are applicable to credit unions.

(b)

Technical and conforming amendment

The heading for subsection (d) of section 216 of the Federal Credit Union Act (12 U.S.C. 1790d(d)) is amended by striking for Complex Credit Unions.

103.

Treatment based on other criteria

Section 216(h)(2) of the Federal Credit Union Act (12 U.S.C. 1790d(h)(2)) is amended by inserting , except to reclassify an insured credit union into the next lower net worth category, based on interest rate risk, to the extent any such reclassification by a delegatee may be reviewed by the Board, after to reclassify an insured credit union into a lower net worth category.

104.

Definitions relating to net worth

(a)

Net worth

Section 216(o)(2) of the Federal Credit Union Act (12 U.S.C. 1790d(o)(2)) is amended—

(1)

in subparagraph (A)—

(A)

by inserting “the” before “retained earnings balance”; and

(B)

by inserting “, together with any amounts that were previously retained earnings of any other credit union with which the credit union has combined” before the semicolon at the end; and

(2)

in subparagraph (B), by inserting , subject to paragraph (6), after includes.

(b)

Secondary capital accounts

Section 216(o) of the Federal Credit Union Act (12 U.S.C. 1790d(o)) is amended by adding at the end the following new paragraph:

(6)

Secondary capital accounts for purposes of determining net worth

The Board may establish, by regulation, the following limitations on the secondary capital accounts that may be included for purposes of determining the net worth of any low-income credit union pursuant to paragraph (2)(B):

(A)

A limitation on the initial maturity of any such account.

(B)

A reduction or limitation on the net worth valuation of any such account based on the remaining period to maturity.

(C)

Any other limitation the Board determines to be appropriate, for safety and soundness purposes, with respect to credit unions that are not defined as small credit unions by the Board.

(c)

Net worth ratio

Paragraph (3) of section 216(o) of the Federal Credit Union Act (12 U.S.C. 1790d(o)(3)) is amended—

(1)

by inserting minus the credit union’s deposit in the Fund after net worth of the credit union; and

(2)

by inserting minus the credit union’s deposit in the Fund after total assets of the credit union.

(d)

Risk-based net worth ratio

Section 216(o) of the Federal Credit Union Act (12 U.S.C. 1790d)(o)) is amended by inserting after paragraph (4) the following new paragraph:

(5)

Risk-based net worth ratio

The term risk-based net worth ratio means, with respect to any credit union, the ratio of—

(A)

the sum of the amount of the net worth of the credit union and the amount of the loan loss reserves held by the credit union (subject to such limits on the extent to which loan loss reserves may be taken into account for purposes of determining such ratio as the Board may prescribe), minus the amount of the credit union’s deposit in the Fund; to

(B)

the amount of the risk assets of the credit union,

as defined by the Board by regulation.

105.

Amendments relating to net worth restoration plans

(a)

Short-term waiver of requirement for net worth restoration plan allowed under certain circumstances

(1)

In general

Subsection (f) of section 216 of the Federal Credit Union Act (12 U.S.C. 1790d(f)) is amended by adding at the end the following new paragraph:

(6)

Short-term waiver for certain marginally undercapitalized credit unions

The Board may, by order on a case-by-case basis, waive the applicability of the requirement for an undercapitalized credit union to submit an acceptable net worth restoration plan to the Board if the Board determines that—

(A)

the loss of adequately capitalized status by the credit union is growth-related;

(B)

the credit union is only marginally undercapitalized; and

(C)

the credit union will only remain undercapitalized for a relatively short period of time.

(2)

Technical and conforming amendment

Paragraph (1) of section 216(f) of the Federal Credit Union Act (12 U.S.C. 1790d(f)(1)) is amended by inserting (other than a credit union for which an order under paragraph (6) is in effect) after credit union that is undercapitalized.

(b)

Treatment of approval of plan

Paragraph (2) of section 216(e) of the Federal Credit Union Act (12 U.S.C. 1790d(e)(2)) is amended by inserting , or approve a net worth restoration plan of such credit union that by its terms provides for such a decrease, after to a credit union.

(c)

Board action may include order to credit union

Subparagraph (B) of section 216(i)(1) of the Federal Credit Union Act (12 U.S.C. 1790d(i)(1)(B)) is amended—

(1)

by inserting , in the discretion of the Board, after as the Board; and

(2)

by inserting including issuing an order to the credit union requiring the credit union to take action that the Board determines would achieve such purpose, after the purpose of this section,.

(d)

Substitution of 3-month period for calendar quarter

Subparagraph (A) of section 216(i)(3) of the Federal Credit Union Act (12 U.S.C. 1790d(i)(3)(A)) is amended—

(1)

by striking calendar quarter and inserting 3-month period; and

(2)

by inserting first after the date on which the credit union.

(e)

Clarification of coordination requirement

Clause (ii) of section 216(l)(3)(A) of the Federal Credit Union Act (12 U.S.C. 1790d(l)(3)(A)) is amended by inserting if the Board determines that such action by the official will carry out the purposes of this section.

Economic Growth

201.

Limits on member business loans

Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 1757a(a)) is amended by striking the lesser of— and all that follows and inserting 20 percent of the total assets of the credit union..

202.

Definition of member business loan

Section 107A(c)(1)(B)(iii) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B)(iii)) is amended by striking $50,000 and inserting an amount, not to exceed $100,000, that the Board shall prescribe by regulation.

203.

Restriction on member business loans

Section 216(g)(2) of the Federal Credit Union Act (12 U.S.C. 1790d(g)(2)) is amended by striking until such time as the credit union becomes adequately capitalized and inserting unless otherwise approved by the Board.

204.

Member business loan exclusion for loans to nonprofit religious organizations

Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 1757a(a)) is amended by inserting , excluding loans made to nonprofit religious organizations, after total amount of such loans.

205.

Credit unions authorized to lease space in buildings in credit union offices in underserved areas

Section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is amended—

(1)

by striking and at the end of paragraph (16);

(2)

by redesignating paragraph (17) as paragraph (18);

(3)

by inserting after paragraph (16) the following new paragraph:

(17)

with regard to any building purchased or constructed by the credit union for a credit union office or credit union operations in an underserved area, to lease office space in such building that is separate and clearly distinct from any office or operation of the credit union to any business enterprise, subject to such regulations the Board may prescribe, taking into account the safety and soundness of the credit union; and

;

(4)

in the matter preceding paragraph (1) by striking A Federal credit union and inserting (a) In General.—Any Federal credit union; and

(5)

adding at the end the following new subsection:

(c)

Underserved area defined

For purposes of subsection (a)(17), the term underserved area means an area consisting of 1 or more census tracts that have—

(1)

a poverty rate of 20 percent or greater, based on the most recent census data; or

(2)

a median family income that does not exceed 80 percent of the greater of—

(A)

the median family income for the metropolitan area in which such census tract or tracts are located; or

(B)

the median family income for the State in which such census tract or tracts are located.

III

Regulatory Modernization

301.

Leases of land on Federal facilities for credit unions

(a)

In general

Section 124 of the Federal Credit Union Act (12 U.S.C. 1770) is amended—

(1)

by striking Upon application by any credit union and inserting Notwithstanding any other provision of law, upon application by any credit union;

(2)

by inserting on lands reserved for the use of, and under the exclusive or concurrent jurisdiction of, the United States or after officer or agency of the United States charged with the allotment of space;

(3)

by inserting lease land or after such officer or agency may in his or its discretion; and

(4)

by inserting or the facility built on the leased land after credit union to be served by the allotment of space.

(b)

Clerical amendment

The heading for section 124 is amended by inserting or on federal land after buildings.

302.

Investments in securities by Federal credit unions

Section 107 of the Federal Credit Union Act (12 U.S.C. 1757) (as amended by section 205 of this Act) is amended by inserting after subsection (a) the following new subsection:

(b)

Investment for the credit union’s own account

(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.

(2)

Percentage limitations

(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.

(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.

(3)

Investment security defined

(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.

(B)

Further definition by Board

The Board may further define the term investment security.

(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.

(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.

303.

Increase in general 12-year limitation of term of Federal credit union loans to 15 years

Section 107(a)(5) of the Federal Credit Union Act (12 U.S.C. 1757(5)) (as so designated by section 205 of this Act) is amended—

(1)

in the matter preceding subparagraph (A), by striking to make loans, the maturities of which shall not exceed twelve years except as otherwise provided herein and inserting to make loans, the maturities of which shall not exceed 15 years or any longer maturity as the Board may allow, in regulations, except as otherwise provided in this Act;

(2)

in subparagraph (A)—

(A)

by striking clause (ii);

(B)

by redesignating clauses (iii) through (x) as clauses (ii) through (ix), respectively; and

(C)

by inserting and after the semicolon at the end of clause (viii) (as so redesignated).

304.

Increase in 1 percent investment limit in credit union service organizations

Section 107(a)(7)(I) of the Federal Credit Union Act (12 U.S.C. 1757(7)(I)) (as so designated by section 205 of this Act) is amended by striking up to 1 per centum of the total paid and inserting up to 3 percent of the total paid.

305.

Check cashing and money transfer services offered within the field of membership

Paragraph (12) of section 107(a) of the Federal Credit Union Act (12 U.S.C. 1757(12)) (as so designated by 205 of this Act) is amended to read as follows:

(12)

in accordance with regulations prescribed by the Board—

(A)

to sell, to persons in the field of membership, negotiable checks (including travelers checks), money orders, and other similar money transfer instruments (including international and domestic electronic fund transfers); and

(B)

to cash checks and money orders and receive international and domestic electronic fund transfers for persons in the field of membership for a fee;

306.

Voluntary mergers involving multiple common-bond credit unions

Section 109(d)(2) of the Federal Credit Union Act (12 U.S.C. 1759(d)(2)) is amended—

(1)

by striking or at the end of clause (ii) of subparagraph (B);

(2)

by striking the period at the end of subparagraph (C) and inserting ; or; and

(3)

by adding at the end the following new subparagraph:

(D)

a merger involving any such Federal credit union approved by the Board on or after August 7, 1998.

307.

Conversions of certain credit unions to a community charter

Section 109(g) of the Federal Credit Union Act (12 U.S.C. 1759(g)) is amended by inserting after paragraph (2) the following new paragraph:

(3)

Criteria for continued membership of certain member groups in community charter conversions

In the case of a voluntary conversion of a 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 permitting new members to be added from such groups.

308.

Credit union governance

(a)

Expulsion of members for just cause

Subsection (b) of section 118 of the Federal Credit Union Act (12 U.S.C. 1764(b)) is amended to read as follows:

(b)

Policy and actions of boards of directors of Federal credit unions

(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.

(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—

(A)

each existing member of the credit union not less than 30 days prior to the effective date of such policy; and

(B)

each new member prior to or upon applying for membership.

(b)

Term limits authorized for Board members of Federal credit unions

Section 111(a) of the Federal Credit Union Act (12 U.S.C. 1761(a)) is amended by adding at the end the following new sentence: The bylaws of a Federal credit union may limit the number of consecutive terms any person may serve on the board of directors of such credit union..

(c)

Reimbursement for lost wages due to service on credit union Board not treated as compensation

Section 111(c) of the Federal Credit Union Act (12 U.S.C. 1761(c)) is amended by inserting , including lost wages, after the reimbursement of reasonable expenses.

309.

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 (12 U.S.C. 1757(5)(A)(vi)(I)) (as so designated and amended by sections 205 and 303 of this Act) is amended by striking six-month period and that prevailing interest rate levels and inserting 6-month period or that prevailing interest rate levels.

310.

Credit union conversion voting requirements

Section 205(b)(2)(B) of the Federal Credit Union Act (12 U.S.C. 1785(b)(2)(B)) is amended by inserting , in a vote in which at least 20 percent of the credit union membership participates before the period at the end.

311.

Exemption from pre-merger notification requirement of the Clayton Act

Section 7A(c)(7) of the Clayton Act (15 U.S.C. 18a(c)(7)) is amended by inserting section 205(b)(3) of the Federal Credit Union Act (12 U.S.C. 1785(b)(3)), before or section 3.

312.

Treatment of credit unions as banks under securities laws

(a)

Definition of bank under the Securities Exchange Act of 1934

Section 3(a)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) is amended—

(1)

by striking this title, and (D) a receiver and inserting this title, (D) an insured credit union (as defined in section 101(7) of the Federal Credit Union Act) but only for purposes of paragraphs (4) and (5) of this subsection and only for activities otherwise authorized by applicable laws to which such credit unions are subject, and (E) a receiver; and

(2)

in subparagraph (E) (as so redesignated by paragraph (1) of this subsection) by striking (A), (B), or (C) and inserting (A), (B), (C), or (D).

(b)

Definition of bank under the Investment Advisers Act of 1940

Section 202(a)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(2)) is amended—

(1)

by striking this title, and (D) a receiver and inserting this title, (D) an insured credit union (as defined in section 101(7) of the Federal Credit Union Act) but only for activities otherwise authorized by applicable laws to which such credit unions are subject, and (E) a receiver; and

(2)

in subparagraph (E) (as so redesignated by paragraph (1) of this subsection) by striking (A), (B), or (C) and inserting (A), (B), (C), or (D).

(c)

Definition of appropriate Federal banking agency under the Securities Exchange Act of 1934

Section 3(a)(34) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)) is amended—

(1)

in subparagraph (A)—

(A)

by striking and at the end of clause (iii);

(B)

by redesignating clause (iv) as clause (v); and

(C)

by inserting the following new clause after clause (iii):

(iv)

the National Credit Union Administration Board, in the case of an insured credit union (as defined in section 101(7) of the Federal Credit Union Act) or a subsidiary or a department or division of any such insured credit union; and

;

(2)

in subparagraph (B)—

(A)

by striking and at the end of clause (iii);

(B)

by redesignating clause (iv) as clause (v); and

(C)

by inserting the following new clause after clause (iii):

(iv)

the National Credit Union Administration Board, in the case of an insured credit union (as defined in section 101(7) of the Federal Credit Union Act) or a subsidiary of any such insured credit union; and

;

(3)

in subparagraph (C)—

(A)

by striking and at the end of clause (iii);

(B)

by redesignating clause (iv) as clause (v); and

(C)

by inserting the following new clause after clause (iii):

(iv)

;

(4)

in subparagraph (D)—

(A)

by striking and at the end of clause (ii);

(B)

by redesignating clause (iii) as clause (iv); and

(C)

by inserting the following new clause after clause (ii):

(iii)

the National Credit Union Administration Board, in the case of an insured credit union (as defined in section 101(7) of the Federal Credit Union Act); and

; and

(5)

in subparagraph (F)—

(A)

by redesignating clauses (ii), (iii), and (iv) as clauses (iii), (iv), and (v), respectively; and

(B)

by inserting the following new clause after clause (i):

(ii)

the National Credit Union Administration Board, in the case of an insured credit union (as defined in section 101(7) of the Federal Credit Union Act);

(d)

Definition of appropriate Federal banking agency under the Investment Advisers Act of 1940

Section 210A(c) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–10a(c)) is amended by inserting and includes the National Credit Union Administration Board, in the case of an insured credit union (as defined in section 101(7) of the Federal Credit Union Act) before the period at the end.