CUNA Executive Vice President of Governmental Affairs JohnMagill said S. 3637, a new bill that would extend the Transactional AccountGuarantee for both banks and credit unions, isn't a legislativedefeat for credit unions anxious to see a vote on member businesslending legislation.

While Magill stressed he doesn't speak for Senate MajorityLeader Harry Reid, who introduced the bill last night, Magill didsay he thinks Reid wants to keep his options open.

“He's introduced a bill that could perhaps lead to marrying thetwo together,” Magill said of S. 3637 and S.2231, a bill that wouldraise the member business lending cap for credit unions.

However, as a standalone bill, S. 3637 would require 60 votes topass in the Senate, just as S. 2231 would. Magill said he doesn'tthink the TAG extension has that kind of support.

“They aren't close to 60 votes unless they were to be part of alarger package,” he said.

Independent Community Bankers of America's Paul Merski, executive vice president for congressionalrelations, wouldn't say how many votes he thinks the ICBA haslocked up in support of TAG, but instead also characterized thebill as an option.

“TAG extension could still move in many different fashions, asan amendment, or as a stand-alone bill,” he said. “The good newsabout this is that it shows support at the highest levels in theSenate. The language is out there and that's how we view it.”

Credit union lobbyist John McKechnie said a package deal may bethe best chance both sides have to get their bills passed.

“The object here is not simply to get the bill through theSenate; it's to get the bill through the House, to the president'sdesk and signed into law. That means we need to make thelegislation as politically palatable as possible, and one way to dothat is to balance it with something that the banking industryneeds, like TAG,” he said.

Merski said that credit unions should be pleased with S. 3637,because it not only includes an NCUA TAG extension, but also theability for credit unions to offer interest on lawyer's trustaccounts, also known as IOLTAs.

NAFCU President/CEO Fred Becker wrote in a July 9 letter toHouse Financial Services Committee leaders that many IOLTAs exceedthe standard $250,000 share insurance limit.

Magill said his Capitol Hill contacts are telling him CUNA'sHike the Hill event this week in support of S. 2231 is greattiming, and the biggest hurdle to passing the bill is “othermust-pass legislation” like the fiscal cliff, tax extensions, thedebt ceiling, and filibuster rules.

More than 500 credit union and small business representativesare visiting members of Congress on Tuesday and Wednesday insupport of expanding credit union business lending authority.

Tuesday evening, CUNA will host a reception and rally in theSenate Russell Office Building that will be attended by Sen. MarkUdall (D-Colo.), the primary sponsor of S. 2231, as well as U.S.Reps. Brad Sherman (D-Calif.) and Steve Stivers (R-Ohio).