Credit Union Community Reinvestment Act

Credit Union Community Reinvestment Act - Amends the Community Reinvestment Act of 1977 to declare that: (1) the field of membership of a credit union shall be treated as the community served by such union; and (2) insured credit unions have a continuing and affirmative obligation to help meet the credit needs of the community served by such unions.

Directs the National Credit Union Administration Board to: (1) exercise its authority under the Federal Credit Union Act to encourage any insured credit union whose total assets exceed $25 million to help meet the credit needs of the community it serves; and (2) take such a credit union's record of meeting those needs into account in its evaluation of any application to expand the credit union's field of membership or to establish a deposit facility.

Authorizes Board deference to the State regulator of a credit union for enforcement of any State law requirements that are no less stringent than those of the Act.

[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3439 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3439

  To amend the Community Reinvestment Act of 1977 to require insured 
 credit unions to meet the credit needs of the community served by the 
                             credit union.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 11, 1998

 Mr. Kennedy of Massachusetts introduced the following bill; which was 
      referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Community Reinvestment Act of 1977 to require insured 
 credit unions to meet the credit needs of the community served by the 
                             credit union.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Credit Union Community Reinvestment 
Act''.

SEC. 2. COMMUNITY REINVESTMENT OBLIGATIONS OF INSURED CREDIT UNIONS.

    The Community Reinvestment Act of 1977 (12 U.S.C. 2901) is amended 
by adding at the end the following new section:

``SEC. 809. COMMUNITY REINVESTMENT OBLIGATIONS OF INSURED CREDIT 
              UNIONS.

    ``(a) Statement of Purpose.--The purpose of this section is to 
establish that--
            ``(1) the field of membership of an insured credit union 
        shall be treated as the community served by the credit union; 
        and
            ``(2) an insured credit unions has a continuing and 
        affirmative obligation to help meet the credit needs of the 
        community served by the credit union.
    ``(b) Applicability of Community Reinvestment Requirements.--The 
National Credit Union Administration Board (hereafter in this section 
referred to as the `Board' shall exercise all the authority of the 
Board under the Federal Credit Union Act, when examining any insured 
credit union with total assets of more than $25,000,000, to encourage 
such credit union to help meet the community served by the credit 
union, consistent with the safe and sound operation of the credit 
union.
    ``(c) Evaluation Required.--
            ``(1) In general.--In connection with any examination under 
        the Federal Credit Union Act of a credit union with total 
        assets of more than $25,000,000, the Board shall--
                    ``(A) assess the record of the credit union in 
                meeting the credit needs of the community served by the 
                credit union, including low- and moderate-income 
                individuals, consistent with the safe and sound 
                operation of the credit union; and
                    ``(B) take such record into account in the Board's 
                evaluation of an application to expand the field of 
                membership of the credit union or an application to 
                establish a deposit facility.
            ``(2) Deference to state credit union regulator in certain 
        cases.--If the requirements under any law of a State with 
        respect to a State credit union are no less stringent than the 
        requirements of this section, the Board may defer to the State 
        regulator of such credit union with regard to the enforcement 
        of such requirements.
    ``(d) Applicability of Regulations.--Before the end of the 1-year 
period beginning on the date of the enactment of the Credit Union 
Community Reinvestment Act, the Board shall prescribed regulations 
implementing this section that are consistent with and no less 
stringent than the regulations prescribed by appropriate Federal 
financial supervisory agencies under the preceding sections of this 
title.
    ``(e) Annual Reports.--With respect to each of the first 5 years 
which begin after the date of the enactment of the Credit Union 
Community Reinvestment Act, the Board shall submit an annual report to 
the Congress on the progress of the Board in implementing this section.
    ``(f) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Community served.--The term `community served' means, 
        with respect to an insured credit union, the field of 
        membership of the credit union.
            ``(2) Insured credit union.--The term `insured credit 
        union' has the meaning given to such term in section 101(7) of 
        the Federal Credit Union Act.
            ``(3) State credit union.--The term `insured credit union' 
        has the meaning given to such term in section 101(6) of the 
        Federal Credit Union Act.''.
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