Sec. 3. Implementation
242 words·~1 min read·
/bill/113/s/968/is/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Board shall develop a tiered approval process, under which an insured credit union gradually increases the amount of member business lending in a manner that is consistent with safe and sound operations, subject to the limits established under section 107A(a)(2) of the Federal Credit Union Act ( 12 U.S.C. 1757a(a)(2) ), as amended by this Act. The rate of increase under the process established under this paragraph may not exceed 30 percent per year. The Board shall issue proposed rules, not later than 6 months after the date of enactment of this Act, to establish the tiered approval process required under subsection (a).
The tiered approval process shall establish standards designed to ensure that the new business lending capacity authorized under section 107A(a) of the Federal Credit Union Act (12 U.S.C. 1757a(a)), as amended by this Act, is being used only by insured credit unions that are well-managed and well capitalized, as required under section 107A(a) of the Federal Credit Union Act ( 12 U.S.C. 1757a(a) ), as amended by this Act, and as defined by the rules issued by the Board under this subsection.
In issuing rules required under this section, the Board shall consider— the experience level of the institutions, including a demonstrated history of sound member business lending; the criteria under section 107A(a)(2) of the Federal Credit Union Act (12 U.S.C. 1757a(a)(2)), as amended by this Act; and such other factors as the Board determines necessary or appropriate.
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