§1790e Temporary Corporate Credit Union Stabilization Fund

Summary

Creates a Temporary Corporate Credit Union Stabilization Fund in the U.S. Treasury. The Board runs the Fund and can spend its money to handle costs tied to conservatorship, liquidation, or the threat of those actions for corporate credit unions, plus administrative costs. Before making any non‑administrative payment, the Board must say that, without this Fund, it would have paid from the National Credit Union Share Insurance Fund and must tell the Senate Banking, Housing, and Urban Affairs Committee and the House Financial Services Committee about that statement. The Fund can borrow from the Treasury up to the combined cap set in section 1783(d)(1). Borrowings must be repaid to the Treasury’s General Fund with interest. The Secretary sets the first interest rate at the first advance and resets it yearly; the rate equals the average market yield on U.S. marketable securities with 12 months to maturity. Repayments are made oldest‑first and must finish within seven years of the first advance unless the Board, with the Secretary’s agreement, extends the date. The Board can charge every insured credit union the same special premium, due within 60 days, to cover Fund costs or upcoming repayments. While any Treasury advance is outstanding, the Insurance Fund must withhold certain distributions and instead transfer the maximum it can without cutting its equity below the normal level or its available assets ratio below 1.0 percent. The Board may ask the Treasury to invest idle Fund money in U.S. debt securities. The Board must report to Congress each year within 30 days after each anniversary of the first advance and must close and send remaining assets to the Insurance Fund within 90 days after the seventh anniversary (or earlier), with the closing date extended if the repayment date is extended.