Public Law 90–375

Section 8(5) is amended by changing “loans with maturities not exceeding five years” to read “unsecured loans with maturities not exceeding five years, and secured loans with maturities not exceeding ten years,”.

Section 8(8) is amended by striking “or” immediately before “(F) ” and by adding at the end thereof: “(G) in shares or deposits of any central credit union in which such investments are specifically authorized by the board of directors of the Federal credit union making the investment;”.

Section 8 is amended by redesignating paragraph (14) as paragraph (15), by striking out “and” at the end of paragraph (13), and by inserting immediately after paragraph (13):

“(14)“(14)

in accordance with rules and regulations prescribed by the Director, to purchase from any liquidating credit union notes made by individual members of the liquidating credit union at such prices as may be agreed upon by the board of directors of the liquidating credit union and the board of directors of the purchasing Credit union, but no purchase may be made under authority of this paragraph if, upon the making of that purchase, the aggregate of the unpaid balances of notes purchased under authority of this paragraph would exceed 5 per centum of the unimpaired capital and surplus of the credit union; and”.

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The fourth sentence of section 14 is amended by changing “the purchase and sale of securities or the making of loans to other credit unions, or both” to read “the purchase and sale of securities, the borrowing of funds, and the making of loans to other credit unions”.

Section 15 is amended by striking the next to last sentence and inserting the following new sentences: “No loan which is not adequately secured may be made to any member, if, upon the making of that loan, the member would be indebted to the Federal credit union upon loans made to him in an aggregate amount which, in the case of a credit union whose unimpaired capital and surplus is less than $8,000, would exceed $200, or which, m the case of any other credit union, would exceed $2,500 or 2½ per centum of its unimpaired capital and surplus, whichever is less. No loan may be made to any member if, upon the making of that loan, the member would be indebted to the Federal credit union upon loans made to him in an aggregate amount which would exceed $200 or 10 per centum of the credit union’s unimpaired capital and surplus, whichever is greater.”

The first sentence of section 16 is amended to read as follows: “The supervisory committee shall make or cause to be made a semiannual audit and shall submit a report of that audit to the board of directors and a summary of the report to the members at the next annual meeting of the credit union; shall make or cause to be made such supplementary audits as it deems necessary or as may be ordered by the Director, and submit reports of the supplementary audits to the board of directors; may by a unanimous vote suspend any officer of the credit union or any member of the credit committee or of the board of directors, until the next members’ meeting, which shall be held not less than seven nor more than fourteen days after any such suspension, at which meeting any such suspension shall be acted upon by the members; and may call by a majority vote a special meeting of the members to consider any violation of this Act, the charter, or the bylaws, or any practice of the credit union deemed by the supervisory committee to be unsafe or unauthorized.”

The second sentence of section 16 is amended by inserting “a

73 Stat. 634.

12 USC 17614.

majority vote of” immediately before “the board of directors”.

Section 21(f) of the Federal Credit Union Act

Consumer counseling.

(12 U.S.C. 1766(f)) is amended by inserting “(1)” after “(f)”, and by adding at the end thereof the following:

“(2)“(2)

(A)(A)

The Director is authorized to conduct directly, or to make grants to or contracts with colleges or universities, State or local educational agencies, or other appropriate public or private nonprofit organizations to conduct, programs for the training of persons engaged, or preparing to engage, in the operation of credit unions, and in related consumer counseling programs, serving the poor. He is authorized to establish a program of experimental, developmental, demonstration, and pilot projects, either directly or by grants to public or private nonprofit organizations, including credit unions, or by contracts with such organizations or other private organizations, designed to promote more effective operation of credit unions, and related consumer counseling programs, serving the poor.

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“(B)“(B)

In carrying out his authority under this paragraph, the Director shall consult with officials of the Office of Economic Opportunity and other appropriate Federal agencies responsible for the administration of projects or programs concerned with problems of the poor. The development and operation of programs and projects under this paragraph shall involve maximum feasible participation of residents of the areas and members of the groups served by such programs and projects, with community action agencies established under the provisions of the Economic Opportunity Act of 1964 serving, to the extent

78 Stat. 508.

42 USC 2701 note.

Appropriations.

12 USC 1755, 1756.

feasible, as the means through which such participation is achieved.

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“(C)“(C)

In order to carry out the purposes of this paragraph, there is authorized to be appropriated, as a supplement to any funds that may be expended by the Director pursuant to sections 6 and 7 for such purposes, not to exceed $300,000 for the fiscal year ending June 30, 1970, and not to exceed $1,000,000 for the fiscal year ending June 30, 1971.”

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The amendments made by subsection (a) shall become effective

Effective date.

July 1, 1968.