Federal

Veterans Member Business Loan Act

Source: Congress.gov · 353 words in original text

What This Bill Does

This bill changes the Federal Credit Union Act to treat loans made to veterans differently than other business loans. The change removes loans to veterans from the definition of "member business loans" so credit unions can treat them under separate rules.

Who It Affects

Credit unions and veterans who borrow money from credit unions.

Key Provisions

• Loans made to veterans are excluded from the definition of a member business loan (Sec. 2(a)(1)(C)) • The definition of "veteran" comes from section 101 of title 38, United States Code (Sec. 2(a)(4))

What Changes

If this bill becomes law, credit unions will no longer classify loans given to veterans as "member business loans." This means different lending rules and limits may apply to veteran borrowers compared to other business borrowers.

Important Definitions

The bill uses the legal definition of "veteran" that already exists in federal law (title 38, section 101, United States Code), but does not define what that is within this bill text.

Effective Date

180 days after the date the bill becomes law (Sec. 2(b))

II 118TH CONGRESS 1ST SESSION S. 539 To amend the Federal Credit Union Act to exclude extensions of credit made to veterans from the definition of a member business loan. IN THE SENATE OF THE UNITED STATES FEBRUARY 28, 2023 Mr. SULLIVAN (for himself and Ms. HIRONO) introduced the following bill; which was read twice and referred to the Committee on Banking, Hous- ing, and Urban Affairs A BILL To amend the Federal Credit Union Act to exclude exten- sions of credit made to veterans from the definition of a member business loan. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Veterans Member 4 Business Loan Act’’. 5 SEC. 2. MEMBER BUSINESS LOAN DEFINITION. 6 (a) IN GENERAL.—Section 107A(c) of the Federal 7 Credit Union Act (12 U.S.C. 1757a(c)) is amended— 8 (1) in paragraph (1)(B)— 9 VerDate Sep 11 2014 06:24 Mar 07, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S539.IS S539 kjohnson on DSK79L0C42PROD with BILLS 2 •S 539 IS (A) in clause (iv), by striking ‘‘or’’ at the 1 end; 2 (B) in clause (v), by striking the period at 3 the end and inserting ‘‘; or’’; and 4 (C) by adding at the end the following: 5 ‘‘(vi) made to a veteran;’’; 6 (2) in paragraph (2)(B)(ii), by striking ‘‘and’’ 7 at the end; 8 (3) in paragraph (3), by striking the period at 9 the end and inserting ‘‘; and’’; and 10 (4) by adding at the end the following: 11 ‘‘(4) the term ‘veteran’ has the meaning given 12 the term in section 101 of title 38, United States 13 Code.’’. 14 (b) EFFECTIVE DATE.—The amendments made by 15 subsection (a) shall take effect on the date that is 180 16 days after the date of enactment of this Act. 17 Æ VerDate Sep 11 2014 06:24 Mar 07, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S539.IS S539 kjohnson on DSK79L0C42PROD with BILLS

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