Page:United States Statutes at Large Volume 112 Part 2.djvu/37

 PUBLIC LAW 105-219—AUG. 7, 1998 112 STAT. 921 "(2) 1.75 times the minimum net worth required under section 216(c)(1)(A) for a credit union to be well capitalized. "(b) EXCEPTIONS. —Subsection (a) does not apply in the case of— "(1) an insured credit union chartered for the purpose of making, or that has a history of primarily making, member business loans to its members, as determined by the Board; or "(2) an insured credit union that— "(A) serves predominsuitly low-income members, as defined by the Board; or "(B) is a community development financial institution, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994. "(c) DEFINITIONS. — As used in this section— "(1) the term 'member business loan'— "(A) means any loan, line of credit, or letter of credit, the proceeds of which will be used for a commercial, corporate or other business investment property or venture, or agricultural purpose; and "(B) does not include an extension of credit— "(i) that is fully secured by a lien on a 1- to 4-family dwelling that is the primary residence of a member; "(ii) that is fully secured by shares in the credit union making the extension of credit or deposits in other financial institutions; "(iii) that is described in subparagraph (A), if it was made to a borrower or an associated member that has a total of all such extensions of credit in an amount equal to less than $50,000; "(iv) the repayment of which is fully insured or fully guaranteed by, or where there is an advance commitment to purchase in full by, any agency of the Federal Government or of a State, or any political subdivision thereof; or "(v) that is granted by a corporate credit union (as that term is defined by the Board) to another credit union. "(2) the term 'net worth'— "(A) with respect to any insured credit union, means the credit union's retained earnings balance, as determined under generally accepted accounting principles; and "(B) with respect to a credit union that serves predominantly low-income members, as defined by the Board, includes secondary capital accounts that are— "(i) uninsured; and "(ii) subordinate to all other claims against the credit union, including the claims of creditors, shareholders, and the Fund; and "(3) the term 'associated member' means any member having a shared ownership, investment, or other pecuniary interest in a business or commercial endeavor with the borrower. "(d) EFFECT ON EXISTING LOANS. —An insured credit union that Deadline. has, on the date of enactment of this section, a total amount of outstanding member business loans that exceeds the amount

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