Sunday, December 6, 2015

Privately Insured CUs Can Become Members of FHLBs

Privately insured credit unions can now become members of the Federal Home Loan Banks (FHLBs).

President Obama on December 4 signed into law the Highway Bill (H.R. 22).

Section 82001 of the bill allows privately insured credit unions to join the Federal Home Loan Banks "only if the appropriate supervisor of the State in which the credit union is chartered has determined that the credit union meets all the eligibility requirements for Federal deposit insurance as of the date of the application for membership."

Also, the bill protects FHLB advances from loss by giving FHLBs priority to collateral backing FHLB advances.

This section of the bill also authorizes the GAO to conduct an audit on the adequacy of insurance reserves held by a private
deposit insurer and on the level of compliance with Federal regulations relating to the disclosure of a lack of Federal deposit insurance.

American Share Insurance is the only private insurer of credit unions.

Read the bill.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.