Rep. Paul Kanjorski (D-Pa.) today introduced a measure to create the Temporary Corporate Stabilization Fund and consolidates other previously passed provisions concerning the NCUSIF.
The measure came less than a week after the Senate passed a similar that contains those credit union-related provisions. The fund would be financed by a line of credit from the Treasury Department, pay back the Treasury Department over seven years, and natural person credit unions would pay the additional premium to the NCUSIF over that time period.
In addition, the measure increases the NCUA's borrowing authority from the Treasury Department from $100 million to $6 billion and provides $30 billion of emergency borrowing authority through the end of the year. It would also allow the NCUA eight years to replenish the NCUSIF if its equity ratio falls below 1.2%.
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"The swift enactment of my bipartisan legislation will allow credit union managers to focus on their most important mission-providing credit to their members-rather than worrying about how they will pay for an excessive one-time charge and paring back lending during these difficult economic times," Kanjorski said in a statement.
The measure will be discussed at a hearing on problems facing corporate credit unions next Wednesday at 2:00 p.m. by a subcommittee of the House Financial Services Committee.
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