,,ii #aadth ,,congress #ast ,session ,s4 #acfg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ah1 #bjae ,mr4 ,donnelly 7for himself and ,mr4 ,portman7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,federal ,home ,loan ,bank ,act with respect to membership eligibility of certain institutions4 #a4 ,privately insured credit unions authorized to become members of a ,federal home loan bank 7a7 ,in general ,section #d7;a7 of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adbd7;a77 is amended by adding at the end the following3 7#e7 ,certain privately insured credit unions 7,a7 ,in general ,subject to the requirements of subparagraph 7,b71 a credit union that lacks insurance of its member accounts under ,federal law shall be treated as an insured depository institution for purposes of this ,act4 7,b7 ,certification by appropriate ,state supervisor ,for purposes of this paragraph1 a credit union that lacks insurance of its member accounts under ,federal law and that has applied for membership in a ,federal home loan bank shall be treated as an insured depository institution if the following has occurred3 7i7 ,determination by ,state supervisor of the credit union 7,i7 ,in general ,subject to subclause 7,,ii71 the appropriate supervisor of the ,state in which the credit union is chartered has determined that the credit union meets all the eligibility requirements under section #bja7;a7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agha7;a77 to apply for insurance of its member accounts as of the date of the application for membership4 7,,ii7 ,certification deemed valid ,in the case of any credit union to which subclause 7,i7 applies1 if the appropriate supervisor of the ,state in which such credit union is chartered fails to make the determination required pursuant to such subclause by the end of the #ab-month period beginning on the date on which the application is submitted to the supervisor1 the credit union shall be deemed to have met the requirements of subclause 7,i74 7ii7 ,determination by ,state supervisor of the private deposit insurer ,the licensing entity of the private deposit insurer that is insuring the member accounts of the credit union-- 7,i7 receives1 on an annual basis1 an independent actuarial opinion that the private insurer has set aside sufficient reserves for losses2 and 7,,ii7 obtains1 as frequently as appropriate1 but not less frequently than every #cf months1 an independent actuary's study of the capital adequacy of the private insurer4 7iii7 ,submission of financial information ,the credit union or the appropriate supervisor of the ,state in which such credit union is chartered makes available1 and continues to make available for such time as the credit union is a member of a ,federal home loan bank1 to the ,federal ,housing ,finance ,agency or to the ,federal home loan bank all reports1 records1 and other information related to any examinations or inquiries performed by the supervisor concerning the financial condition of the credit union1 as soon as is practicable4 7,c7 ,security interests of federal home loan bank not avoidable ,notwithstanding any provision of ,state law authorizing a conservator or liquidating agent of a credit union to repudiate contracts1 no such provision shall apply with respect to-- 7i7 any extension of credit from any ,federal home loan bank to any credit union that is a member of any such bank pursuant to this paragraph2 or 7ii7 any security interest in the assets of such a credit union securing any such extension of credit4 7,d7 ,protection for certain ,federal home loan bank advances ,notwithstanding any ,state law to the contrary1 if a ,bank makes an advance under section #aj to a ,state-chartered credit union that is not federally insured-- 7i7 the ,bank's interest in any collateral securing the advance has the same priority and is afforded the same standing and rights that the security interest would have had if the advance had been made to a federally insured credit union2 and 7ii7 the ,bank has the same right to access such collateral that the ,bank would have had if the advance had been made to a federally insured credit union4 4 7b7 ,copies of audits of private insurers of certain depository institutions required ,to be provided to supervisory agencies ,section #dc7;a77#b77;,a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcat7a77#b77;,a77 is amended-- 7#a7 in clause 7i71 by striking and at the end2 7#b7 in clause 7ii71 by striking the period at the end and inserting a semicolon2 and 7#c7 by inserting at the end the following3 7iii7 in the case of depository institutions described in subsection 7e77#b77;,a71 the member accounts of which are insured by the private deposit insurer1 which are members of a ,federal home loan bank1 to the ,federal ,housing ,finance ,agency1 not later than #g days after the audit is completed4 4 7c7 ,,gao ,report ,not later than #ah months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study and submit a report to ,congress-- 7#a7 on the adequacy of insurance reserves held by a private deposit insurer that insures the member accounts of an entity described in section #dc7;e77#b77;,a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcat7e77#b77;,a772 and 7#b7 for an entity described in paragraph 7#a71 the member accounts of which are insured by a private deposit insurer1 information on the level of compliance with ,federal regulations relating to the disclosure of a lack of ,federal deposit insurance4