WASHINGTON (2/10/09)—A House vote could come as early as this month on legislation to make permanent the $250,000 share and deposit insurance increase enacted as part of the Emergency Economic Stabilization Act of 2008, according to Ryan Donovan of the Credit Union National Association (CUNA). The CUNA vice president of legislative affairs said Monday that H.R. 786 could be considered by the House when it returns from next week’s District Work Period. “The bill is not currently scheduled for a vote this week—but even that can change at the discretion of House leadership,” Donovan noted. During the House Financial Services Committee consideration of the bill last week, the panel approved two amendments that CUNA suggested in a letter to the committee on Feb. 3. They would:
* Extend the amount of time the National Credit Union Administration (NCUA) has to restore its insurance fund to its statutorily required levels to five years from the current one year. * Increase NCUA's borrowing authority from the Treasury Department from $100 million to $6 billion.
The NCUA’s current borrowing level was set 38 years ago. CUNA believes the increased borrowing authority should give the NCUA additional resources to manage the NCUSIF and deal with problems that may arise.