December 12, 2012

Senate invokes cloture to proceed to TAG bill

The Senate on Tuesday voted to invoke cloture to proceed to a bill that would extend the transaction account guarantee program for community banks and non-interest bearing transaction accounts for credit unions through 2014.

With the Senate's procedural action, the bill now becomes the pending business in the Senate and, with action already taken to limit amendments, could pass the Senate within the next few days. After that, the bill would head to the House where its future is less certain. If Congress fails to pass an extension, coverage would revert back to $250,000 at year's end.

NAFCU had been pressing for action on measures that would expand member business lending and insurance coverage of lawyer's trust accounts for credit unions. The association will continue to push for action on those items.

NAFCU will also be paying close attention to a scheduled House vote today on H.R. 5817, a bill that would reduce the requirements for when annual privacy notices must be sent to members. If approved by the House, the bill will then head to the Senate where NAFCU will push for action during the lame-duck session.

The association is also following developments related to defense authorization. The Senate passed its version of the National Defense Authorization Act last week and the legislation is currently awaiting a conference committee with the House, which passed its version earlier this year.NAFCU is watching this legislation for the possible inclusion of amendments that would make changes to the Military Lending Act and the Servicemembers Civil Relief Act. The bill has the potential of impacting any credit union that has a member in the Armed Forces.