PUBLIC LAW 105-219—AUG. 7, 1998 112 STAT. 923 regulation, or financial policy, are especially qualified to serve on the Board. " (B) LIMIT ON APPOINTMENT OF CREDIT UNION OFFICERS. —Not more than one member of the Board may be appointed to the Board from among individuals who, at the time of the appointment, are, or have recently been, involved with any insured credit union as a committee member, director, officer, employee, or other institutionaffiliated party.". SEC. 205. REPORT AND CONGRESSIONAL REVIEW REQUIREMENT FOR 12 USC 1759 CERTAIN REGULATIONS. note. A regulation prescribed by the Board shall be treated as a major rule for purposes of chapter 8 of title 5, United States Code, if the regulation defines, or amends the definition of— (1) the term "immediate family or household" for purposes of section 109(e)(1) of the Federal Credit Union Act (as added by section 101 of this Act); or (2) the term "well-defined local community, neighborhood, or rural district" for purposes of section 109(g) of the Federal Credit Union Act (as added by section 103 of this Act). TITLE III—CAPITALIZATION AND NET WORTH OF CREDIT UNIONS SEC. 301. PROMPT CORRECTIVE ACTION. (a) IN GENERAL.— Title II of the Federal Credit Union Act (12 U.S.C. 1781 et seq.) is amended by adding at the end the following new section: " SEC. 216. PROMPT CORRECTIVE ACTION. 12 USC 1790d. " (a) RESOLVING PROBLEMS TO PROTECT FUND. — "(1) PURPOSE. —The purpose of this section is to resolve the problems of insured credit unions at the least possible long-term loss to the Fund. "(2) PROMPT CORRECTIVE ACTION REQUIRED.—The Board shall carry out the purpose of this section by taking prompt corrective action to resolve the problems of insured credit unions. " (b) REGULATIONS REQUIRED.— " (1) INSURED CREDIT UNIONS.— "(A) IN GENERAL.— The Board shall, by regulation, prescribe a system of prompt corrective action for insured credit unions that is— "(i) consistent with this section; and "(ii) comparable to section 38 of the Federal Deposit Insurance Act. " (B) COOPERATIVE CHARACTER OF CREDIT UNIONS.— The Board shall design the system required under subparagraph (A) to take into account that credit unions are notfor-profit cooperatives that— "(i) do not issue capital stock; "(ii) must rely on retained earnings to build net worth; and "(iii) have boards of directors that consist primarily of volunteers.
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