Less than 24 hours after it was passed President Obama today signed a measure that creates a stabilization fund for corporate credit unions.
The bill, which includes provisions relating to financial services and housing, passed both chambers by lopsided margins.
The fund, to be financed by a line of credit from the Treasury Department, would 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.
The measure gives the NCUA $6 billion in borrowing authority (up from the current level of $100 million) and $30 billion in emergency borrowing authority. The bill gave the NCUA eight years to replenish the NCUSIF if its equity ratio falls below 1.2%. It also extends insurance coverage of accounts up to $250,000 through 2013.
Despite the wide margins in both houses, the road to passage was not smooth. The biggest obstacle was an effort to allow bankruptcy judges to rest the terms of the mortgages. The provision-which was opposed by financial services lobbyists-was included in the House version but was defeated during Senate consideration.
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