NCUA Chairman Debbie Matz expressed her support for H.R. 719, the Capital Access for Small Business and Jobs Act,in a May 2 letter to the bill's sponsor, Rep. Peter King(R-N.Y.).

The bill would allow credit unions to utilize uninsured,non-share accounts to supplement capital.

“Your legislation would provide credit unions with an additionaltool to promote sufficient capital stability – even under adverseeconomic conditions – and ensure that healthy credit unions wouldno longer be forced to turn away deposits in order to protect theirnet worth ratio,” Matz wrote in the letter.

The bill would also reduce “downstream risks” to the NationalCredit Union Share Insurance Fund to absorb losses, the NCUA Boardchair said, adding that protection of the NCUSIF is “the toppriority” of the board.

Matz, who according to the letter met in person with King todiscuss the bill, praised three key components added to the bill'sfinal language that would require proper disclosures, ensure theaccounts are consistent with Basel standards and Federal Home LoanBank standards, and would not affect existing members' rights norconfer such rights on non-members.

“Given the important improvements you have made to your bill, Isupport H.R. 719,” she said. “Should Congress choose to enact thisprudent legislation, NCUA will promptly propose the necessary rulechanges required for implementation.”

CUNA, NAFCU and NASCUS have all gone on record in support of thebill, which was reintroduced Feb. 14 after failing to advancebeyond committee last Congress.

It currently has 27 co-sponsors, consisting of 20 Democrats andseven Republicans. A companion bill has not been introduced in theSenate.