Sec. 204. Amendments relating to credit union service to underserved areas
887 words·~4 min read·
/bill/116/s/787/is/section-204A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Federal Credit Union Act ( 12 U.S.C. 1751 et seq.) is amended— in section 101 ( 12 U.S.C. 1752 )— in paragraph (8), by striking and at the end; in paragraph (9), by striking the period at the end and inserting ; and ; and by adding at the end the following: the term underserved area — means a local community, neighborhood, or rural district that— is an investment area, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 ), that meets such additional requirements that the Board may impose; and is underserved, based on data of the Board and the Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )), by other depository institutions (as defined in section 19(b)(1)(A) of the Federal Reserve Act ( 12 U.S.C. 461(b)(1)(A) ); and notwithstanding subparagraph (A), includes, with respect to any Federal credit union, any geographic area within which the credit union— has received approval to provide service before the date of enactment of this paragraph from the Administration; and has established a service facility before that date of enactment. ; in section 106 ( 12 U.S.C. 1756 ), by adding at the end the following:
The Board shall monitor adherence by a Federal credit union to a significant unmet needs plan submitted under section 109(h) by that Federal credit union that describes how the Federal credit union will serve the deposit and other financial needs of the community. ; and in section 109 ( 12 U.S.C. 1759 )— in subsection (c), by amending paragraph
(2)to read as follows: Notwithstanding subsection (b), the Board may approve an application by a Federal credit union to allow the membership of the 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— the Board determines— at any time after August 7, 1998, that the local community, neighborhood, or rural district taken into account for purposes of this paragraph is an underserved area; and at the time of the approval, that the credit union is well capitalized or adequately capitalized (as defined in section 216(c)(1)); and before the end of the 24-month period beginning on the date of the approval, the credit union has established and maintains an ongoing method to provide services in the local community, neighborhood, or rural district. 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 that 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 the credit union. The Board may terminate the membership of a Federal credit union upon a finding that the credit union is not meeting the terms of the significant unmet needs plan of the credit union submitted under subsection (h)(1). Any Federal credit union that has an application approved under this paragraph shall, as part of the ordinary course of the examination cycle and supervision process, submit a report to the Administration that includes— the number of members of the credit union who are members by reason of the application; 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 the application; and evidence, as specified by the Board by regulation, demonstrating compliance by the credit union with the significant unmet needs plan submitted by the credit union under subsection (h)(1), as specified by the Administration. The Administration shall publish an annual report containing— a list of all the applications approved under this paragraph before the date on which the report is published; the number and locations of the underserved areas taken into account in approving those applications; the total number of members of credit unions who are members by reason of the approval of those applications; and evidence demonstrating compliance by credit unions with significant unmet needs plans submitted by the credit unions under subsection (h)(1), as specified by the Administration. ; in subsection (e)(2), by inserting subsection (c)(2) and after provided in ; and by adding at the end the following: A Federal credit union desiring membership as a credit union described in subsection (b)(3) shall submit to the Board a business plan, which shall include, among other issues, a marketing plan that identifies— the unique needs of the various demographic groups in the proposed community; and how the credit union will market to each group, particularly underserved groups, to address those needs. With respect to a Federal credit union desiring membership as a credit union described in subsection (b)(3) for an area with multiple political jurisdictions with a population of not less than 2,500,000, the Administration shall— publish a notice in the Federal Register seeking comment from interested parties about the proposed community; and conduct a public hearing regarding the application of the Federal credit union. . Not later than 1 year after the date of enactment of this Act, the National Credit Union Administration Board shall issue final regulations to implement the amendments made by subsection (a).
Connectionstraces to 7
Citation graph
cites case law
Sec. 204
Amendments relating to credit union service to underserved areas
Cites 7Cited by 0 across 0 sources