Capital Access for Small Businesses and Jobs Act

Capital Access for Small Businesses and Jobs Act - Amends the Federal Credit Union Act to empower federal credit unions to receive payments, representing equity, on certain uninsured non-share capital accounts, subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the National Credit Union Administration Board (Board).

Requires 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.

Redefines "net worth" with respect to any insured credit union (other than a low-income credit union) to include non-share capital accounts, as authorized by the Board, that: (1) do not alter the cooperative nature of the credit union; (2) are uninsured; (3) are subordinate to all other claims against the credit union, including the claims of creditors, shareholders, and the National Credit Union Share Insurance Fund; (4) are available to be applied to cover operating losses of the credit union in excess of its retained earnings and, to the extent so applied, will not be replenished; (5) are subject to maturity limits as determined by the Board; and (6) are offered by a credit union that is sufficiently capitalized and well-managed.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3993 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 3993

   To clarify the National Credit Union Administration authority to 
               improve credit union safety and soundness.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2012

 Mr. King of New York (for himself, Mr. Sherman, Mr. Paul, Mr. Meeks, 
 Mr. Kissell, and Mr. Filner) introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To clarify the National Credit Union Administration authority to 
               improve credit union safety and soundness.

    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 ``Capital Access for Small Businesses 
and Jobs Act''.

SEC. 2. IMPROVING CREDIT UNION SAFETY AND SOUNDNESS.

    The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended--
            (1) in section 107--
                    (A) in paragraph (16), by striking ``and'' at the 
                end;
                    (B) in paragraph (17), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(18) to receive payments, representing equity, on 
        uninsured non-share capital accounts described under section 
        216(o)(2)(D), subject to such terms, rates, and conditions as 
        may be established by the board of directors, within 
        limitations prescribed by the Board.''; and
            (2) in section 216--
                    (A) in subsection (b)(1)(B)(ii), by striking ``must 
                rely'' and inserting ``rely predominantly''; and
                    (B) in subsection (o)(2)--
                            (i) in subparagraph (B), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (C)(ii), by striking 
                        the period and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) with respect to any insured credit union 
                other than a low-income credit union, includes non-
                share capital accounts as authorized by the Board, 
                that--
                            ``(i) do not alter the cooperative nature 
                        of the credit union;
                            ``(ii) are uninsured;
                            ``(iii) are subordinate to all other claims 
                        against the credit union, including the claims 
                        of creditors, shareholders, and the Fund;
                            ``(iv) are available to be applied to cover 
                        operating losses of the credit union in excess 
                        of its retained earnings and, to the extent so 
                        applied, will not be replenished;
                            ``(v) are subject to maturity limits as 
                        determined by the Board; and
                            ``(vi) are offered by a credit union that 
                        is determined by the Board to be sufficiently 
                        capitalized and well-managed.''.
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