Title 12 — Banks and Banking

Chapter 14 — Federal Credit Unions

§ 1757. Powers

Statutory text

A Federal credit union shall have succession in its corporate name during its existence and shall have power—

to make contracts;

to sue and be sued;

to adopt and use a common seal and alter the same at pleasure;

to purchase, hold, and dispose of property necessary or incidental to its operations;

to make loans, the maturities of which shall not exceed 15 years, except as otherwise provided herein, and extend lines of credit to its members, to other credit unions, and to credit union organizations and to participate with other credit unions, credit union organizations, or financial organizations in making loans to credit union members in accordance with the following:

Loans to members shall be made in conformity with criteria established by the board of directors: Provided, That—

a residential real estate loan on a one-to-four-family dwelling, including an individual cooperative unit, that is or will be the principal residence of a credit union member, and which is secured by a first lien upon such dwelling, may have a maturity not exceeding thirty years or such other limits as shall be set by the National Credit Union Administration Board (except that a loan on an individual cooperative unit shall be adequately secured as defined by the Board), subject to the rules and regulations of the Board;

a loan to finance the purchase of a mobile home, which shall be secured by a first lien on such mobile home, to be used by the credit union member as his residence, a loan for the repair, alteration, or improvement of a residential dwelling which is the residence of a credit union member, or a second mortgage loan secured by a residential dwelling which is the residence of a credit union member, shall have a maturity not to exceed 15 years or any longer term which the Board may allow;

a loan secured by the insurance or guarantee of, or with advance commitment to purchase the loan by, the Federal Government, a State government, or any agency of either may be made for the maturity and under the terms and conditions specified in the law under which such insurance, guarantee, or commitment is provided;

a loan or aggregate of loans to a director or member of the supervisory or credit committee of the credit union making the loan which exceeds $20,000 plus pledged shares, be approved by the board of directors;

loans to other members for which directors or members of the supervisory or credit committee act as guarantor or endorser be approved by the board of directors when such loans standing alone or when added to any outstanding loan or loans of the guarantor or endorser exceeds $20,000;

the rate of interest may not exceed 15 per centum per annum on the unpaid balance inclusive of all finance charges, except that the Board may establish—

after consultation with the appropriate committees of the Congress, the Department of Treasury, and the Federal financial institution regulatory agencies, an interest rate ceiling exceeding such 15 per centum per annum rate, for periods not to exceed 18 months, if it determines that money market interest rates have risen over the preceding six-month period and that prevailing interest rate levels threaten the safety and soundness of individual credit unions as evidenced by adverse trends in liquidity, capital, earnings, and growth; and

a higher interest rate ceiling for Agent members of the Central Liquidity Facility in carrying out the provisions of subchapter III for such periods as the Board may authorize;

the taking, receiving, reserving, or charging of a rate of interest greater than is allowed by this paragraph, when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. If such greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover back from the credit union taking or receiving the same, in an action in the nature of an action of debt, the entire amount of interest paid; but such action must be commenced within two years from the time the usurious collection was made;

a borrower may repay his loan, prior to maturity in whole or in part on any business day without penalty, except that on a first or second mortgage loan a Federal credit union may require that any partial prepayments (I) be made on the date monthly installments are due, and (II) be in the amount of that part of one or more monthly installments which would be applicable to principal;

loans shall be paid or amortized in accordance with rules and regulations prescribed by the Board after taking into account the needs or conditions of the borrowers, the amounts and duration of the loans, the interests of the members and the credit unions, and such other factors as the Board deems relevant; 1

loans must be approved by the credit committee or a loan officer, but 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 10 per centum of the credit union’s unimpaired capital and surplus.

A self-replenishing line of credit to a borrower may be established to a stated maximum amount on certain terms and conditions which may be different from the terms and conditions established for another borrower.

Loans to other credit unions shall be approved by the board of directors.

Loans to credit union organizations shall be approved by the board of directors and shall not exceed 1 per centum of the paid-in and unimpaired capital and surplus of the credit union. A credit union organization means any organization as determined by the Board, which is established primarily to serve the needs of its member credit unions, and whose business relates to the daily operations of the credit unions they serve.

Participation loans with other credit unions, credit union organizations, or financial organizations shall be in accordance with written policies of the board of directors: Provided, That a credit union which originates a loan for which participation arrangements are made in accordance with this subsection shall retain an interest of at least 10 per centum of the face amount of the loan;

to receive from its members, from other credit unions, from an officer, employee, or agent of those nonmember units of Federal, Indian tribal, State, or local governments and political subdivisions thereof enumerated in section 1787 of this title and in the manner so prescribed, from the Central Liquidity Facility, and from nonmembers in the case of credit unions serving predominately low-income members (as defined by the Board) payments, representing equity, on—

shares which may be issued at varying dividend rates;

share certificates which may be issued at varying dividend rates and maturities; and

share draft accounts authorized under section 1785(f) of this title;

subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Board;

to invest its funds (A) in loans exclusively to members; (B) in obligations of the United States of America, or securities fully guaranteed as to principal and interest thereby; (C) in accordance with rules and regulations prescribed by the Board, in loans to other credit unions in the total amount not exceeding 25 per centum of its paid-in and unimpaired capital and surplus; (D) in shares or accounts of savings and loan associations or mutual savings banks, the accounts of which are insured by the Federal Deposit Insurance Corporation; (E) in obligations issued by banks for cooperatives, Federal land banks, Federal intermediate credit banks, Federal home loan banks, the Federal Housing Finance Board, or any corporation designated in section 9101(3) of title 31 as a wholly owned Government corporation; or in obligations, participations, or other instruments of or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association or the Government National Mortgage Association; or in mortgages, obligations, or other securities which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of this title; or in obligations or other instruments or securities of the Student Loan Marketing Association; or in obligations, participations, securities, or other instruments of, or issued by, or fully guaranteed as to principal and interest by any other agency of the United States and a Federal credit union may issue and sell securities which are guaranteed pursuant to section 1721(g) of this title; (F) in participation certificates evidencing beneficial interests in obligations, or in the right to receive interest and principal collections therefrom, which obligations have been subjected by one or more Government agencies to a trust or trusts for which any executive department, agency, or instrumentality of the United States (or the head thereof) has been named to act as trustee; (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; (H) in shares, share certificates, or share deposits of federally insured credit unions; (I) in the shares, stocks, or obligations of any other organization, providing services which are associated with the routine operations of credit unions, up to 1 per centum of the total paid in and unimpaired capital and surplus of the credit union with the approval of the Board: Provided, however, That such authority does not include the power to acquire control directly or indirectly, of another financial institution, nor invest in shares, stocks or obligations of an insurance company, trade association, liquidity facility or any other similar organization, corporation, or association, except as otherwise expressly provided by this chapter; (J) in the capital stock of the National Credit Union Central Liquidity Facility; (K) investments in obligations of, or issued by, any State or political subdivision thereof (including any agency, corporation, or instrumentality of a State or political subdivision), except that no credit union may invest more than 10 per centum of its unimpaired capital and surplus in the obligations of any one issuer (exclusive of general obligations of the issuer);

to make deposits in national banks and in State banks, trust companies, and mutual savings banks operating in accordance with the laws of the State in which the Federal credit union does business, or in banks or institutions the accounts of which are insured by the Federal Deposit Insurance Corporation, and for Federal credit unions or credit unions authorized by the Department of Defense operating suboffices on American military installations in foreign countries or trust territories of the United States to maintain demand deposit accounts in banks located in those countries or trust territories, subject to such regulations as may be issued by the Board and provided such banks are correspondents of banks described in this paragraph;

to borrow, in accordance with such rules and regulations as may be prescribed by the Board, from any source, in an aggregate amount not exceeding, except as authorized by the Board in carrying out the provisions of subchapter III, 50 per centum of its paid-in and unimpaired capital and surplus: Provided, That any Federal credit union may discount with or sell to any Federal intermediate credit bank any eligible obligations up to the amount of its paid-in and unimpaired capital;

to levy late charges, in accordance with the bylaws, for failure of members to meet promptly their obligations to the Federal credit union;

to impress and enforce a lien upon the shares and dividends of any member, to the extent of any loan made to him and any dues or charges payable by him;

in accordance with regulations prescribed by the Board—

to sell, to persons in the field of membership, negotiable checks (including travelers checks), money orders, and other similar money transfer instruments (including international and domestic electronic fund transfers and remittance transfers, as defined in section 1693o–1 of title 15); and

to cash checks and money orders for persons in the field of membership for a fee;

in accordance with rules and regulations prescribed by the Board, to purchase, sell, pledge, or discount or otherwise receive or dispose of, in whole or in part, any eligible obligations (as defined by the Board) of its members and 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;

to sell all or a part of its assets to another credit union, to purchase all or part of the assets of another credit union and to assume the liabilities of the selling credit union and those of its members subject to regulations of the Board;

to invest in securities that—

are offered and sold pursuant to section 77d(5) of title 15; 2

are mortgage related securities (as that term is defined in section 78c(a)(41) of title 15), subject to such regulations as the Board may prescribe, including regulations prescribing minimum size of the issue (at the time of initial distribution) or minimum aggregate sales prices, or both; or

are small business related securities (as defined in section 78c(a)(53) of title 15), subject to such regulations as the Board may prescribe, including regulations prescribing the minimum size of the issue (at the time of the initial distribution), the minimum aggregate sales price, or both;

subject to such regulations as the Board may prescribe, to provide technical assistance to credit unions in Poland and Hungary; and

to exercise such incidental powers as shall be necessary or requisite to enable it to carry on effectively the business for which it is incorporated.

Footnotes

1 So in original. Probably should be followed by “and”.
2 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1934
Pub. L. 73–750 · 48 Stat. 1216
Enacted · 12 U.S.C. § 1757
June 26, 1934, ch. 750, title I, § 107, formerly § 7, 48 Stat. 1218
Source evidence
Code source credit
June 26, 1934, ch. 750, title I, § 107, formerly § 7, 48 Stat. 1218
1937
Public Law not identified
Added · 12 U.S.C. § 1757(7)(c); 12 U.S.C. § 1757(7)(d)
Par. (7)(c), (d). Act Dec. 6, 1937, added cls. (c) and (d)
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. (7)(c), (d). Act Dec. 6, 1937, added cls. (c) and (d).
1946
Public Law not identified
Inserted · 12 U.S.C. § 1757(5)
Par. (5). Act July 31, 1946, inserted last two sentences to provide for the forfeiture of the entire amount of interest reserved and for the recovery of the entire amount of interest paid for the violation of the interest limitation
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. (5). Act July 31, 1946, inserted last two sentences to provide for the forfeiture of the entire amount of interest reserved and for the recovery of the entire amount of interest paid for the violation of the interest limitation.
1949
Public Law not identified
Changed · 12 U.S.C. § 1757(5)
Par. (5). Act Oct. 25, 1949, increased from 2 years to 3 years the limit for maturity of loans
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. (5). Act Oct. 25, 1949, increased from 2 years to 3 years the limit for maturity of loans.
1952
Public Law not identified
Changed · 12 U.S.C. § 1757(7)(d)
Par. (7)(d). Act May 13, 1952, authorized investment of funds in shares or accounts of any other institutions whose accounts are insured by the Federal Savings and Loan Insurance Corporation
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. (7)(d). Act May 13, 1952, authorized investment of funds in shares or accounts of any other institutions whose accounts are insured by the Federal Savings and Loan Insurance Corporation.
1959
Pub. L. 86–354 § 1 · 73 Stat. 628
1. Redesignated · 12 U.S.C. § 1757
  Pub. L. 86–354 made numerous capitalization, punctuation and phraseological changes throughout text; increased maturities limits for loans from three to five years, authorized approval of loans by a loan officer and authorized loans in an amount which shall include total unencumbered and unpledged shareholdings in the Federal credit union of any member pledged as security for the obligation of the director or committee member, provided for payment and amortization of loans, redesignated provisions (a) to (d) as (A) to (D) in par. (7)
2. Substituted · 12 U.S.C. § 1757
  Pub. L. 86–354 made numerous capitalization, punctuation and phraseological changes throughout text; increased maturities limits for loans from three to five years, authorized approval of loans by a loan officer and authorized loans in an amount which shall include total unencumbered and unpledged shareholdings in the Federal credit union of any member pledged as security for the obligation of the director or committee member, provided for payment and amortization of loans, substituted “levy late charges” for “fine members”
3. Inserted · 12 U.S.C. § 1757
  Pub. L. 86–354 made numerous capitalization, punctuation and phraseological changes throughout text; increased maturities limits for loans from three to five years, authorized approval of loans by a loan officer and authorized loans in an amount which shall include total unencumbered and unpledged shareholdings in the Federal credit union of any member pledged as security for the obligation of the director or committee member, provided for payment and amortization of loans, inserted “of members” in par. (10)
4. Substituted · 12 U.S.C. § 1757
  Pub. L. 86–354 made numerous capitalization, punctuation and phraseological changes throughout text; increased maturities limits for loans from three to five years, authorized approval of loans by a loan officer and authorized loans in an amount which shall include total unencumbered and unpledged shareholdings in the Federal credit union of any member pledged as security for the obligation of the director or committee member, provided for payment and amortization of loans, substituted “charges” for “fines” in par. (11)
5. Added · 12 U.S.C. § 1757
  Pub. L. 86–354 made numerous capitalization, punctuation and phraseological changes throughout text; increased maturities limits for loans from three to five years, authorized approval of loans by a loan officer and authorized loans in an amount which shall include total unencumbered and unpledged shareholdings in the Federal credit union of any member pledged as security for the obligation of the director or committee member, provided for payment and amortization of loans, added par. (12);
6. Redesignated · 12 U.S.C. § 1757
  Pub. L. 86–354 made numerous capitalization, punctuation and phraseological changes throughout text; increased maturities limits for loans from three to five years, authorized approval of loans by a loan officer and authorized loans in an amount which shall include total unencumbered and unpledged shareholdings in the Federal credit union of any member pledged as security for the obligation of the director or committee member, provided for payment and amortization of loans, redesignated former par. (12) as par. (13)
Source evidence
Code amendment note
Pub. L. 86–354 made numerous capitalization, punctuation and phraseological changes throughout text; increased maturities limits for loans from three to five years, authorized approval of loans by a loan officer and authorized loans in an amount which shall include total unencumbered and unpledged shareholdings in the Federal credit union of any member pledged as security for the obligation of the director or committee member, provided for payment and amortization of loans, redesignated provisions (a) to (d) as (A) to (D) in par. (7), substituted “levy late charges” for “fine members” and inserted “of members” in par. (10), substituted “charges” for “fines” in par. (11), added par. (12); and redesignated former par. (12) as par. (13).
1964
Pub. L. 88–353 § 1 · 78 Stat. 269
Added · 12 U.S.C. § 1757(7)(E)
Pub. L. 88–353 added cl. (E)
Source evidence
Code amendment note
Par. (7)(E). Pub. L. 88–353 added cl. (E).
1966
Participation Sales Act of 1966
Pub. L. 89–429 § 7 · 80 Stat. 164
Changed · 12 U.S.C. § 1757(7)
Pub. L. 89–429 expanded list of possible areas of investment of funds by Federal credit unions to include obligations, participations, or other instruments of or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association and participation certificates evidencing beneficial interests in obligations, or in the right to receive interest and principal collections therefrom, which obligations have been subjected by one or more Government agencies to a trust or trusts for which any executive department, agency, or instrumentality of the United States (or the head thereof) has been named to act as trustee
Source evidence
Code amendment note
Par. (7). Pub. L. 89–429 expanded list of possible areas of investment of funds by Federal credit unions to include obligations, participations, or other instruments of or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association and participation certificates evidencing beneficial interests in obligations, or in the right to receive interest and principal collections therefrom, which obligations have been subjected by one or more Government agencies to a trust or trusts for which any executive department, agency, or instrumentality of the United States (or the head thereof) has been named to act as trustee.
Enacted provision · exact public law section
Sec. 7. Paragraph (7) of section 8 of the Federal Credit Union Act (12 U.S.C. 1757) is amended to read: 73 Stat. 630. “(7) to invest its funds (A) in loans exclusively to members; (B) in obligations of the United States of America, or securities fully guaranteed as to principal and interest thereby; (C) in accordance with rules and regulations prescribed by the Director, in loans to other credit unions in the total amount not exceeding 25 per centum of its paid-in and unimpaired capital and surplus; (D) in shares or accounts of savings and loan associations, the accounts of which are insured by the Federal Savings and Loan Insurance Corporation; (E) in obligations issued by banks for cooperatives, Federal land banks, Federal intermediate credit banks, Federal home loan banks, the Federal Home Loan Bank Board, or any corporation designated in section 101 of the Government Corporation Control Act as a wholly owned Government corporation; or in obligations, participations, or other instruments of or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association; or (F) in participation certificates evidencing beneficial interests in obligations, or in the right to receive interest and principal collections therefrom, which obligations have been subjected by one or more Government agencies to a trust or trusts for which any executive department, agency, or instrumentality of the United States (or the head thereof) has been named to act as trustee;”.
1967
Pub. L. 90–44 § 2(1) · 81 Stat. 108
Substituted · 12 U.S.C. § 1757(5)
Pub. L. 90–44, § 2(1), substituted “may be made except as authorized under paragraph (6) of this section” for “shall exceed the amount of his holdings in the Federal Credit Union as represented by shares thereof plus the total unencumbered and unpledged shareholdings in the Federal Credit Union of any member pledged as security for the obligation of such director or committee member”
Source evidence
Code amendment note
Par. (5). Pub. L. 90–44, § 2(1), substituted “may be made except as authorized under paragraph (6) of this section” for “shall exceed the amount of his holdings in the Federal Credit Union as represented by shares thereof plus the total unencumbered and unpledged shareholdings in the Federal Credit Union of any member pledged as security for the obligation of such director or committee member”.
Enacted provision · exact public law section
(1) by changing, in paragraph (5) thereof, “shall exceed the amount of his holdings in the Federal Credit Union as represented by shares thereof plus the total unencumbered and unpledged shareholdings in the Federal Credit Union of any member pledged as security for the obligation of such director or committee member” to read “may be made except as authorized under paragraph (6) of this section”;
1967
Pub. L. 90–44 § 2(3) · 81 Stat. 108
1. Added · 12 U.S.C. § 1757(6); 12 U.S.C. § 1757(7)
  Pub. L. 90–44, § 2(3), added par. (6)
2. Redesignated · 12 U.S.C. § 1757(6); 12 U.S.C. § 1757(7)
  Pub. L. 90–44, § 2(3), redesignated former pars. (6) and (7) as (7) and (8), respectively
Source evidence
Code amendment note
Pars. (6), (7). Pub. L. 90–44, § 2(3), added par. (6) and redesignated former pars. (6) and (7) as (7) and (8), respectively.
Enacted provision · exact public law section
(3) by inserting, immediately after paragraph (5), the following new paragraph: “(6) to make loans to its own directors and to members of its own supervisory or credit committee, but all such loans shall be reported to the Director at least annually, and such a loan may be made only if— “(A) the loan complies with all lawful requirements under this Act with respect to loans to other borrowers and is not on terms more favorable than those extended to other borrowers; “(B) upon the making of the loan, the aggregate amount of loans outstanding to the borrower will not exceed the total amount of shareholdings in the credit union, not otherwise encumbered or pledged, which are pledged as security for loans to the borrower, or $5,000, whichever is greater; “(C) upon the making of the loan, the aggregate amount of loans outstanding under authority of this paragraph will not exceed 20 per centum of the unimpaired capital and surplus of the credit union; “(D) the loan is approved by the credit committee and by the board of directors after the submission to them of a detailed current financial statement by the borrower; and “(E) the borrower takes no part in the consideration of his application and does not attend any committee or board meeting while his application is under consideration;”.
1967
Pub. L. 90–44 · 81 Stat. 108
1. Redesignated · 12 U.S.C. § 1757(8)(14)
  Pub. L. 90–44, §§ 2(2), (3), redesignated former par. (7) as (8), authorized in cl. (D) investment of funds in shares or accounts of mutual savings banks, the accounts of which are insured by the Federal Deposit Insurance Corporation
2. Redesignated · 12 U.S.C. § 1757(8)(14)
  Pub. L. 90–44, §§ 2(2), (3), redesignated former pars. (8) to (13) as (9) to (14), respectively
Source evidence
Code amendment note
Pars. (8) to (14). Pub. L. 90–44, §§ 2(2), (3), redesignated former par. (7) as (8), authorized in cl. (D) investment of funds in shares or accounts of mutual savings banks, the accounts of which are insured by the Federal Deposit Insurance Corporation, and redesignated former pars. (8) to (13) as (9) to (14), respectively.
1968
Pub. L. 90–375 § 1(1) · 82 Stat. 284
Substituted · 12 U.S.C. § 1757(5)
Pub. L. 90–375, § 1(1), substituted provisions authorizing Federal credit unions to make unsecured loans with maturities not exceeding five years, and secured loans with maturities not exceeding ten years for provisions authorizing federal credit unions to make loans with maturities not exceeding five years
Source evidence
Code amendment note
Par. (5). Pub. L. 90–375, § 1(1), substituted provisions authorizing Federal credit unions to make unsecured loans with maturities not exceeding five years, and secured loans with maturities not exceeding ten years for provisions authorizing federal credit unions to make loans with maturities not exceeding five years.
Enacted provision · exact public law section
(1) 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,”.
1968
Pub. L. 90–375 § 1(2) · 82 Stat. 284
Added · 12 U.S.C. § 1757(8)
Pub. L. 90–375, § 1(2), added cl. (G)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 90–375, § 1(2), added cl. (G).
Enacted provision · exact public law section
(2) 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;”.
1968
Pub. L. 90–375 § 1(3) · 82 Stat. 284
1. Added · 12 U.S.C. § 1757(14); 12 U.S.C. § 1757(15)
  Pub. L. 90–375, § 1(3), added par. (14)
2. Redesignated · 12 U.S.C. § 1757(14); 12 U.S.C. § 1757(15)
  Pub. L. 90–375, § 1(3), redesignated former par. (14) as (15)
Source evidence
Code amendment note
Pars. (14), (15). Pub. L. 90–375, § 1(3), added par. (14) and redesignated former par. (14) as (15).
Enacted provision · exact public law section
(3) 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) 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”.
1968
Housing and Urban Development Act of 1968
Pub. L. 90–448 title VIII § 807(n) · 82 Stat. 476
Changed · 12 U.S.C. § 1757(8)
Pub. L. 90–448 authorized investments in obligations, participations, or other instruments of or issued by, or guaranteed as to principal and interest by, the Government National Mortgage Association
Source evidence
Code amendment note
Par. (8). Pub. L. 90–448 authorized investments in obligations, participations, or other instruments of or issued by, or guaranteed as to principal and interest by, the Government National Mortgage Association.
Enacted provision · exact public law section
(n) Section 8(8) (E) of the Federal Credit Union Act is amended 73 stat. 630; 81 stat. 110. 12 USC 1757. by inserting “or the Government National Mortgage Association” immediately following “Federal National Mortgage Association”.
1970
Pub. L. 91–206 § 2(1) · 84 Stat. 49
Substituted · 12 U.S.C. § 1757(5); 12 U.S.C. § 1757(6); 12 U.S.C. § 1757(8); 12 U.S.C. § 1757(10); 12 U.S.C. § 1757(13); 12 U.S.C. § 1757(14)
Pub. L. 91–206 substituted “Administrator” for “Director” wherever appearing
Source evidence
Code amendment note
Pars. (5), (6), (8), (10), (13), (14), Pub. L. 91–206 substituted “Administrator” for “Director” wherever appearing.
Enacted provision · exact public law section
Sec. 2. The Federal Credit Union Act is further amended (1) by changing “Director” to read “Administrator” each place it appears therein; (2) by changing “Bureau of Federal Credit Unions” to read “National Credit Union Administration” each place it appears therein; and (3) by changing “Bureau”, each remaining place it appears, to read “Administration”.
1970
Pub. L. 91–468 § 10(1) · 84 Stat. 994
Changed · 12 U.S.C. § 1757(7)
Pub. L. 91–468, § 10(1), permitted a Federal credit union to not only receive from members but also from other federally insured credit unions, payments on shares as well as share certificates or share deposits and, in the case of credit unions serving predominantly low-income members, to receive payments on shares, share certificates or share deposits from nonmembers
Source evidence
Code amendment note
Par. (7). Pub. L. 91–468, § 10(1), permitted a Federal credit union to not only receive from members but also from other federally insured credit unions, payments on shares as well as share certificates or share deposits and, in the case of credit unions serving predominantly low-income members, to receive payments on shares, share certificates or share deposits from nonmembers.
Enacted provision · exact public law section
(1) by striking out paragraph (7) and inserting in lieu thereof the following: “(7) to receive from its members or other federally insured credit unions payments on shares, share certificates, or share deposits, and, in the case of credit unions serving predominantly low-income members (as defined by the Administrator), to receive payments on shares, share certificates, or share deposits from nonmembers;” and
1970
Pub. L. 91–468 § 10(2) · 84 Stat. 994
Changed · 12 U.S.C. § 1757(8)
Pub. L. 91–468, § 10(2), authorized a Federal credit union to invest in shares, share certificates or share deposits of federally insured credit unions
Source evidence
Code amendment note
Par. (8). Pub. L. 91–468, § 10(2), authorized a Federal credit union to invest in shares, share certificates or share deposits of federally insured credit unions.
Enacted provision · exact public law section
(2) by adding at the end of paragraph (8) the following: “and (H) in shares, share certificates, or share deposits of federally insured credit unions;”.
1972
Education Amendments of 1972
Pub. L. 92–318 title I § 133(c)(4) · 86 Stat. 235
Changed · 12 U.S.C. § 1757(8)(E)
Pub. L. 92–318 authorized investments in obligations or other instruments or securities of the Student Loan Marketing Association
Source evidence
Code amendment note
Par. (8)(E). Pub. L. 92–318 authorized investments in obligations or other instruments or securities of the Student Loan Marketing Association.
Enacted provision · exact public law section
(4) Section 8(8)(E) of the Federal Credit Union Act, amended (12 80 Stat. 167; 81 Stat. 110; 85 Stat 545. U.S.C. 1757 (8)(E)), is amended by inserting before the semicolon at the end thereof the following: “or in obligations or other instruments or securities of the Student Loan Marketing Association”.
1974
Housing and Community Development Act of 1974
Pub. L. 93–383 § 721(a) · 88 Stat. 634
Substituted · 12 U.S.C. § 1757(6)
Pub. L. 93–383, § 721(a), substituted provisions relating to approval of loans by the board of directors for provisions requiring annual reports to the Administrator with respect to loans and setting forth conditions for the making of loans
Source evidence
Code amendment note
Par. (6). Pub. L. 93–383, § 721(a), substituted provisions relating to approval of loans by the board of directors for provisions requiring annual reports to the Administrator with respect to loans and setting forth conditions for the making of loans.
Enacted provision · exact public law section
(a) Paragraph (6) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757(6)) is amended to read as follows: “(6) to make loans to its own directors and to members of its own supervisory credit committee provided that any such loan or aggregate of loans to one director or committee member which exceeds $2,500 plus pledged shares must be approved by the board of directors, and to permit directors and members of its own supervisory or credit committee to act as guarantor or endorser of loans to other members, except that when such a loan standing alone or when added to any outstanding loan or loans of the guarantor exceeds $2,500, approval by the board of directors is required;”.
1974
Housing and Community Development Act of 1974
Pub. L. 93–383 § 805(c)(5) · 88 Stat. 634
Inserted · 12 U.S.C. § 1757(8)(E)
Pub. L. 93–383, § 805(c)(5), inserted reference to mortgages, obligations, or other securities sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of this title
Source evidence
Code amendment note
Par. (8)(E). Pub. L. 93–383, § 805(c)(5), inserted reference to mortgages, obligations, or other securities sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of this title.
Enacted provision · exact public law section
(5) Section 107(8)(E) of the Federal Credit Union Act is amended 12 USC 1757. by inserting immediately after “Government National Mortgage Association” the following: “; or in mortgages, obligations, or other securities which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to section 305 or section 306 of the Federal Home Loan Mortgage Corporation Act;”.
1974
Housing and Community Development Act of 1974
Pub. L. 93–383 § 721(b) · 88 Stat. 634
Inserted · 12 U.S.C. § 1757(9)
Pub. L. 93–383, § 721(b), inserted provisions relating to Federal credit unions or credit unions authorized by the Department of Defense
Source evidence
Code amendment note
Par. (9). Pub. L. 93–383, § 721(b), inserted provisions relating to Federal credit unions or credit unions authorized by the Department of Defense.
Enacted provision · exact public law section
(b) Paragraph (9) of such section is amended by inserting immediately before the semicolon at the end thereof the following: “, and for Federal credit unions or credit unions authorized by the Department of Defense operating suboffices on American military installations in foreign countries or trust territories of the United States to maintain demand deposit accounts in banks located in those countries or trust territories, subject to such regulations as may be issued by the Administrator and provided such banks are correspondents of banks described in this paragraph”.
1974
Pub. L. 93–495 title I § 101(d) · 88 Stat. 1500
Inserted · 12 U.S.C. § 1757(7)
Pub. L. 93–495 inserted provisions relating to receipt of payments of shares, etc., from officers, employees, or agents of nonmember units of Federal, State, or local governments and political subdivisions enumerated in section 1787 of this title
Source evidence
Code amendment note
Par. (7). Pub. L. 93–495 inserted provisions relating to receipt of payments of shares, etc., from officers, employees, or agents of nonmember units of Federal, State, or local governments and political subdivisions enumerated in section 1787 of this title.
Enacted provision · exact public law section
(d) Section 107(7) of the Federal Credit Union Act (12 U.S.C. 1757(7)) is amended by adding at the end thereof the following: “and to receive from an officer, employee, or agent of those nonmember units of Federal, State, or local governments and political subdivisions thereof enumerated in section 207 of this Act (12 U.S.C. 1787) and in the manner so prescribed payments on shares, share certificates, and share deposits;”.
1974
Pub. L. 93–569 § 6 · 88 Stat. 1863
Inserted · 12 U.S.C. § 1757(5)
Pub. L. 93–569 inserted “except that loans made in accordance with section 1703(b) of this title and section 1819 of title 38, may be for the maturities specified therein,” after “ten years”
Source evidence
Code amendment note
Par. (5). Pub. L. 93–569 inserted “except that loans made in accordance with section 1703(b) of this title and section 1819 of title 38, may be for the maturities specified therein,” after “ten years”.
Enacted provision · exact public law section
Sec. 6. Paragraph (5) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is amended by inserting after the words “ten years,” the words “except that loans made in accordance with section 2(b) of the National Housing Act and section 1819 of title 38, United 42 USC 4021 note. States Code, may be for the maturities specified therein,”.
1977
Pub. L. 95–22 § 302(a) · 91 Stat. 49
Inserted · 12 U.S.C. § 1757(5)
Pub. L. 95–22, § 302(a), among other changes, inserted provisions permitting Federal credit unions to establish lines of credit for their members, to raise the maximum loan maturity for most loans to twelve years, and to make loans secured by a first lien and made for the purchase of a one-to-four-family dwelling for the principal residence of a credit union member
Source evidence
Code amendment note
Par. (5). Pub. L. 95–22, § 302(a), among other changes, inserted provisions permitting Federal credit unions to establish lines of credit for their members, to raise the maximum loan maturity for most loans to twelve years, and to make loans secured by a first lien and made for the purchase of a one-to-four-family dwelling for the principal residence of a credit union member.
Enacted provision · exact public law section
(a) Paragraph (5) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is amended to read as follows: “(5) to make loans, the maturities of which shall not exceed Federal credit unions, powers. twelve year’s except as otherwise provided herein, and extend lines of credit to its members, to other credit unions, and to credit union organizations and to participate with other credit unions, credit union organizations, or financial organizations in making loans to credit union members in accordance with the following: “(A) Loans to members shall be made in conformity with Loans to members. criteria established by the board of directors: Provided,That— “(i) a residential real estate loan which is made to Residential loans. finance the acquisition of a one-to-four-family dwelling for the principal residence of a credit union member, the sales price of which is not more than 150 per centum of the median sales price of residential real property situated in the geographical area (as determined by the board of directors) in which the property is located, and which is secured by a first lien upon such dwelling, may have a maturity not exceeding thirty years, subject to the rules and regulations of the Administrator; “(ii) a loan to finance the purchase of a mobile home, Mobile home loans. which shall be secured by a first lien on such mobile home, to be used by the credit union member as his residence, or for the repair, alteration, or improvement of a residential dwelling which is the residence of a credit union member shall have a maturity not to exceed fifteen years unless such loan is insured or guaranteed as provided in subparagraph (iii); “(iii) a loan secured by the insurance or guarantee of the Federal Government, of a State government, or any agency of either may be made for the maturity and under the terms and conditions specified in the law under which such insurance or guarantee is provided; “(iv) a loan or aggregate of loans to a director or member of the supervisory or credit committee of the credit union making the loan which exceeds $5,000 plus pledged shares, be approved by the board of directors; “(v) loans to other members for which directors or members of the supervisory or credit committee act as guarantor or endorser be approved by the board of directors when such loans standing alone or when added to any outstanding loan or loans of the guarantor or endorser exceeds $5,000; “(vi) the rate of interest not exceed 1 per centum per month on the unpaid balance inclusive of all service charges; “(vii) the taking, receiving, reserving, or charging of a rate of interest greater than is allowed by this paragraph, when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. If such greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover back from the credit union taking or receiving the same, in an action in the nature of an action of debt, the entire amount of interest paid; but such action must be commenced within two years from the time the usurious collection was made; “(viii) a borrower may repay his loan, prior to maturity in whole or in part on any business day without penalty; “(ix) loans shall be paid or amortized in accordance with rules and regulations prescribed by the Administrator after taking into account the needs or conditions of the borrowers, the amounts and duration of the loans, the interests of the members and the credit unions, and such other factors as the Administrator deems relevant. “(B) A self-replenishing line of credit to a borrower may be established to a stated maximum amount on certain terms and conditions which may be different from the terms and conditions established for another borrower. “(C) Loans to other credit unions shall be approved by the board of directors. “(D) Loans to credit union organizations shall be approved by the board of directors and shall not exceed 1 per centum of the paid-in and unimpaired capital and surplus of the credit union. A credit union organization means any organization as determined by the Administrator, which is established primarily to serve the needs of its member credit unions, and whose business relates to the daily operations of the credit unions they serve. “(E) Participation loans with other credit unions, credit union organizations, or financial organizations shall be in accordance with written policies of the board of directors: Provided, That a credit union which originates a Ioan for which participation arrangements are made in accordance with this subsection shall retain an interest of at least 10 per centum of the face amount of the loan.”.
1977
Pub. L. 95–22 title III · 91 Stat. 49
1. Redesignated · 12 U.S.C. § 1757(6)
  Pub. L. 95–22, §§ 302(b), 303(a), redesignated par. (7) as (6)
2. Substituted · 12 U.S.C. § 1757(6)
  Pub. L. 95–22, §§ 302(b), 303(a), substituted reference to payments on shares which may be issued at varying dividend rates and payments on share certificates which may be issued at varying dividend rates and maturities, subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Administrator for reference to payments on shares, share certificates, or share deposits. Former par. (6), relating to the power of Federal credit unions to make loans to its own directors and to its own supervisory credit committee, was struck out
Source evidence
Code amendment note
Par. (6). Pub. L. 95–22, §§ 302(b), 303(a), redesignated par. (7) as (6) and substituted reference to payments on shares which may be issued at varying dividend rates and payments on share certificates which may be issued at varying dividend rates and maturities, subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Administrator for reference to payments on shares, share certificates, or share deposits. Former par. (6), relating to the power of Federal credit unions to make loans to its own directors and to its own supervisory credit committee, was struck out.
Enacted provision · exact public law
TITLE III Sec. 301. Section 201 of the Federal Credit Union Act (12 U.S.C. Repeal. 1781) is amended by repealing subsection (c) (3) thereof. Sec. 302. (a) Paragraph (5) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is amended to read as follows: “(5) to make loans, the maturities of which shall not exceed Federal credit unions, powers. twelve year’s except as otherwise provided herein, and extend lines of credit to its members, to other credit unions, and to credit union organizations and to participate with other credit unions, credit union organizations, or financial organizations in making loans to credit union members in accordance with the following: “(A) Loans to members shall be made in conformity with Loans to members. criteria established by the board of directors: Provided,That— “(i) a residential real estate loan which is made to Residential loans. finance the acquisition of a one-to-four-family dwelling for the principal residence of a credit union member, the sales price of which is not more than 150 per centum of the median sales price of residential real property situated in the geographical area (as determined by the board of directors) in which the property is located, and which is secured by a first lien upon such dwelling, may have a maturity not exceeding thirty years, subject to the rules and regulations of the Administrator; “(ii) a loan to finance the purchase of a mobile home, Mobile home loans. which shall be secured by a first lien on such mobile home, to be used by the credit union member as his residence, or for the repair, alteration, or improvement of a residential dwelling which is the residence of a credit union member shall have a maturity not to exceed fifteen years unless such loan is insured or guaranteed as provided in subparagraph (iii); “(iii) a loan secured by the insurance or guarantee of the Federal Government, of a State government, or any agency of either may be made for the maturity and under the terms and conditions specified in the law under which such insurance or guarantee is provided; “(iv) a loan or aggregate of loans to a director or member of the supervisory or credit committee of the credit union making the loan which exceeds $5,000 plus pledged shares, be approved by the board of directors; “(v) loans to other members for which directors or members of the supervisory or credit committee act as guarantor or endorser be approved by the board of directors when such loans standing alone or when added to any outstanding loan or loans of the guarantor or endorser exceeds $5,000; “(vi) the rate of interest not exceed 1 per centum per month on the unpaid balance inclusive of all service charges; “(vii) the taking, receiving, reserving, or charging of a rate of interest greater than is allowed by this paragraph, when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. If such greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover back from the credit union taking or receiving the same, in an action in the nature of an action of debt, the entire amount of interest paid; but such action must be commenced within two years from the time the usurious collection was made; “(viii) a borrower may repay his loan, prior to maturity in whole or in part on any business day without penalty; “(ix) loans shall be paid or amortized in accordance with rules and regulations prescribed by the Administrator after taking into account the needs or conditions of the borrowers, the amounts and duration of the loans, the interests of the members and the credit unions, and such other factors as the Administrator deems relevant. “(B) A self-replenishing line of credit to a borrower may be established to a stated maximum amount on certain terms and conditions which may be different from the terms and conditions established for another borrower. “(C) Loans to other credit unions shall be approved by the board of directors. “(D) Loans to credit union organizations shall be approved by the board of directors and shall not exceed 1 per centum of the paid-in and unimpaired capital and surplus of the credit union. A credit union organization means any organization as determined by the Administrator, which is established primarily to serve the needs of its member credit unions, and whose business relates to the daily operations of the credit unions they serve. “(E) Participation loans with other credit unions, credit union organizations, or financial organizations shall be in accordance with written policies of the board of directors: Provided, That a credit union which originates a Ioan for which participation arrangements are made in accordance with this subsection shall retain an interest of at least 10 per centum of the face amount of the loan.”. (b) Paragraph (6) of such section is repealed. Sec. 303. (a) Paragraph (7) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is redesignated as paragraph (6) and is amended to read as follows: “(6) to receive from its members, from other credit unions, Payments on shares and share certificates. 12 USC 1787. from an officer, employee, or agent of those nonmember units of Federal, State, or local governments and political subdivisions thereof enumerated in section 207 of this Act and in the manner so prescribed, and from nonmembers in the case of credit unions serving predominately low-income members (as defined by the Administrator) payments on shares which may be issued at varying dividend rates, and payments on share certificates which may be issued at varying dividend rates and maturities, subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Administrator.”. Repeal. (b) Paragraph (8) of such section is redesignated as paragraph (7) and amended by adding the following paragraph: “(I) in the shares, stocks, or obligations of any other organization, providing services which are associated with the routine operations of credit unions, up to 1 per centum of the total paid in and unimpaired capital and surplus of the credit union with the approval of the Administrator: Provided, however, That such authority does not include the power to acquire control directly or indirectly, of another financial institution, nor invest in shares, stocks or obligations of an insurance company, trade association, liquidity facility or any other similar organization, corporation, or association, except as otherwise expressly provided by this Act (c) Paragraphs (9) through (14) of section 107 are redesignated paragraphs (8) through (13). (d) Paragraph (13), as redesignated, of section 107 is amended by inserting after the first comma the following: “to purchase, sell, pledge, or discount or otherwise receive or dispose of, in whole or in part, any eligible obligations (as defined by the Administrator) of its members and”. (e) Section 107 is further amended by adding the following new paragraph after paragraph (13): “(14) to sell all or a part of its assets to another credit union, to purchase all or part of the assets of another credit union and to assume the liabilities of the selling credit union and those of its members subject to regulations of the Administrator;”. Sec. 304. Section 114 of the Federal Credit Union Act (12 U.S.C. Credit committee. 1761c) is amended as follows: (1) by adding “and lines of credit” after “loans” in the first sentence; (2) by striking “No loan shall be made unless it is approved” in the third sentence and inserting in lieu thereof “Except for those loans or lines of credit required to be approved by the board of directors in section 107(5) of this Act, approval of an application shall be” and by adding “and lines of credit” after “the power to approve loans”; (3) by striking “loan” as it appears after “each” and before “approved” in the fourth sentence, and inserting in lieu thereof “application”; (4) by striking “loans” in the fifth sentence and inserting in lieu thereof “applications”; (5) by striking “for any loan which” in the sixth sentence and inserting in lieu thereof “with respect to any loan or line of credit for which the application”; (6) by adding “and lines of credit” after “loans” in the eighth sentence and by striking “the purpose for which the loan is desired”; (7) by striking the ninth sentence; and (8) by striking “$200 or” and “whichever is greater”, in the tenth sentence. Sec. 305. Section 116 of the Federal Credit Union Act (12 U.S.C. 1762) is amended by striking out the first sentence of subsection (a) and inserting in lieu thereof “At the end of each accounting period the gross income shall be determined.” and by striking out all after the colon in subsection (a), by striking out subsection (b), and by inserting in lieu thereof the following: “(1) A credit union in operation for more than four years and having assets of $500,000 or more shall set aside (A) 10 per centum of gross income until the regular reserve shall equal 4 per centum of the total of outstanding loans and risk assets, then (B) 5 per centum of gross income until the regular reserve shall equal 6 per centum of the total of outstanding loans and risk assets. “(2) A credit union in operation less than four years or having assets of less than $500,000 shall set aside (A) 10 per centum of gross income until the regular reserve shall equal 7½ per centum of the total of outstanding loans and risk assets, then (B) 5 per centum of gross income until the regular reserve shall equal 10 per centum of the total of outstanding loans and risk assets. “(3) Whenever the regular reserve falls below the stated per centum of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the stated reserve goals. “(b) The Administrator may decrease the reserve requirement set forth in subsection (a) of this section when in his opinion such a decrease is necessary or desirable. The Administrator may also require special reserves to protect the interests of members either by regulation or for an individual credit union in any special case.”. Sec. 306. Subsection (b) (3) (B) of section 120 of the Federal Credit Union Act (12 U.S.C. 1766) is amended by striking out “shares” and inserting in lieu thereof “member accounts”. Sec. 307. (a) Subsection (g) (1) of section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended by striking out “and that such violation or practice or breach of fiduciary duty is one involving personal dishonesty on the part of such director, officer, or committee member”. (b) Subsection (g) (2) of such section is amended by changing “dishonesty and unfitness” to read “dishonesty or unfitness” each place it appears therein. Sec. 308. Paragraph (4) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752), the second time it appears therein, is amended by inserting immediately before the semicolon at the end thereof the following: “, and such terms mean those accounts of nonmember credit unions and nonmember units of Federal, State, or local governments and political subdivisions thereof in which payments are received by a Ante, p. 51. credit union pursuant to section 107(6) of this Act;”. Sec. 309. The third sentence of section 113 of the Federal Credit Board of directors. Union Act (12 U.S.C. 1761b) is amended by striking out “that may be held by an individual” and inserting in lieu thereof “and share certificates and the classes of shares and share certificates that may be held”, and by striking out “and the maximum amount which may be loaned with or without security to any member” and inserting in lieu thereof “, the security, and the maximum amount which may be loaned or provided in lines of credit”. Sec. 310. Section 117 of the Federal Credit Union Act (12 U.S.C. 1763) is amended to read as follows: “Sec. 117. “Dividends At such intervals as the board of directors may authorize, and after provision for required reserves, the board may declare, pursuant to such regulations as may be issued by the Administrator, a dividend to be paid at different rates on different types of shares and at different rates and maturity dates in the case of share certificates. Dividend credit may be accrued on various types of shares and share certificates as authorized by the board of directors.”.
1977
Pub. L. 95–22 § 303(b) · 91 Stat. 49
1. Redesignated · 12 U.S.C. § 1757(7)
  Pub. L. 95–22, § 303(b), redesignated par. (8) as (7)
2. Redesignated · 12 U.S.C. § 1757(7)
  Pub. L. 95–22, § 303(b), added subpar. (I). Former par. (7) redesignated (6)
Source evidence
Code amendment note
Par. (7). Pub. L. 95–22, § 303(b), redesignated par. (8) as (7) and added subpar. (I). Former par. (7) redesignated (6).
Enacted provision · exact public law section
(b) Paragraph (8) of such section is redesignated as paragraph (7) and amended by adding the following paragraph: “(I) in the shares, stocks, or obligations of any other organization, providing services which are associated with the routine operations of credit unions, up to 1 per centum of the total paid in and unimpaired capital and surplus of the credit union with the approval of the Administrator: Provided, however, That such authority does not include the power to acquire control directly or indirectly, of another financial institution, nor invest in shares, stocks or obligations of an insurance company, trade association, liquidity facility or any other similar organization, corporation, or association, except as otherwise expressly provided by this Act
1977
Pub. L. 95–22 § 303(c) · 91 Stat. 49
Redesignated · 12 U.S.C. § 1757(8)(12)
Pub. L. 95–22, § 303(c), redesignated pars. (9) to (13) as (8) to (12), respectively. Former par. (8) redesignated (7)
Source evidence
Code amendment note
Pars. (8) to (12). Pub. L. 95–22, § 303(c), redesignated pars. (9) to (13) as (8) to (12), respectively. Former par. (8) redesignated (7).
Enacted provision · exact public law section
(c) Paragraphs (9) through (14) of section 107 are redesignated paragraphs (8) through (13).
1977
Pub. L. 95–22 § 303(c) · 91 Stat. 49
1. Redesignated · 12 U.S.C. § 1757(13)
  Pub. L. 95–22, § 303(c), (d), redesignated par. (14) as (13)
2. Redesignated · 12 U.S.C. § 1757(13)
  Pub. L. 95–22, § 303(c), (d), inserted reference to purchase, sell, pledge, or discount or otherwise receive or dispose of, in whole or in part, any eligible obligations (as defined by the Administrator) of its members. Former par. (13) redesignated (12)
Source evidence
Code amendment note
Par. (13). Pub. L. 95–22, § 303(c), (d), redesignated par. (14) as (13) and inserted reference to purchase, sell, pledge, or discount or otherwise receive or dispose of, in whole or in part, any eligible obligations (as defined by the Administrator) of its members. Former par. (13) redesignated (12).
Enacted provision · exact public law section
(c) Paragraphs (9) through (14) of section 107 are redesignated paragraphs (8) through (13).
1977
Pub. L. 95–22 § 303(e) · 91 Stat. 49
Added · 12 U.S.C. § 1757(14)
Pub. L. 95–22, § 303(e), added par. (14)
Source evidence
Code amendment note
Par. (14). Pub. L. 95–22, § 303(e), added par. (14).
Enacted provision · exact public law section
(e) Section 107 is further amended by adding the following new paragraph after paragraph (13): “(14) to sell all or a part of its assets to another credit union, to purchase all or part of the assets of another credit union and to assume the liabilities of the selling credit union and those of its members subject to regulations of the Administrator;”.
1978
Financial Institutions Regulatory and Interest Rate Control Act of 1978
Pub. L. 95–630 § 502(b) · 92 Stat. 3641
Substituted · 12 U.S.C. § 1757(5)
Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing
Source evidence
Code amendment note
Par. (5). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing.
Enacted provision · exact public law section
(b) The Federal Credit Union Act is amended by striking out “Administrator” each place it appears and inserting in lieu thereof “Board”, and by striking out the personal pronouns “he”, “him”, and “his” when referring to the Administrator and inserting in lieu thereof “it”, “them”, and “its” as appropriate wherever such words appear therein.
1978
Financial Institutions Regulatory and Interest Rate Control Act of 1978
Pub. L. 95–630 title V § 502(b) · 92 Stat. 3641
1. Inserted · 12 U.S.C. § 1757(6)
  Pub. L. 95–630, §§ 502(b), 1803(a), inserted “from the Central Liquidity Facility,” after “in the manner so prescribed,”
2. Substituted · 12 U.S.C. § 1757(6)
  Pub. L. 95–630, §§ 502(b), 1803(a), substituted “Board” for “Administrator” in two places
Source evidence
Code amendment note
Par. (6). Pub. L. 95–630, §§ 502(b), 1803(a), inserted “from the Central Liquidity Facility,” after “in the manner so prescribed,” and substituted “Board” for “Administrator” in two places.
Enacted provision · exact public law section
(b) The Federal Credit Union Act is amended by striking out “Administrator” each place it appears and inserting in lieu thereof “Board”, and by striking out the personal pronouns “he”, “him”, and “his” when referring to the Administrator and inserting in lieu thereof “it”, “them”, and “its” as appropriate wherever such words appear therein.
1978
Financial Institutions Regulatory and Interest Rate Control Act of 1978
Pub. L. 95–630 title V § 502(b) · 92 Stat. 3641
1. Substituted · 12 U.S.C. § 1757(7)
  Pub. L. 95–630, §§ 502(b), 1803(b), substituted “Board” for “Administrator” wherever appearing
2. Added · 12 U.S.C. § 1757(7)
  Pub. L. 95–630, §§ 502(b), 1803(b), added cl. (J)
Source evidence
Code amendment note
Par. (7). Pub. L. 95–630, §§ 502(b), 1803(b), substituted “Board” for “Administrator” wherever appearing and added cl. (J).
Enacted provision · exact public law section
(b) The Federal Credit Union Act is amended by striking out “Administrator” each place it appears and inserting in lieu thereof “Board”, and by striking out the personal pronouns “he”, “him”, and “his” when referring to the Administrator and inserting in lieu thereof “it”, “them”, and “its” as appropriate wherever such words appear therein.
1978
Financial Institutions Regulatory and Interest Rate Control Act of 1978
Pub. L. 95–630 § 502(b) · 92 Stat. 3641
Substituted · 12 U.S.C. § 1757(8)
Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator”
Source evidence
Code amendment note
Par. (8). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator”.
Enacted provision · exact public law section
(b) The Federal Credit Union Act is amended by striking out “Administrator” each place it appears and inserting in lieu thereof “Board”, and by striking out the personal pronouns “he”, “him”, and “his” when referring to the Administrator and inserting in lieu thereof “it”, “them”, and “its” as appropriate wherever such words appear therein.
1978
Financial Institutions Regulatory and Interest Rate Control Act of 1978
Pub. L. 95–630 title V § 502(b) · 92 Stat. 3641
1. Substituted · 12 U.S.C. § 1757(9)
  Pub. L. 95–630, §§ 502(b), 1803(c), substituted “Board” for “Administrator”
2. Inserted · 12 U.S.C. § 1757(9)
  Pub. L. 95–630, §§ 502(b), 1803(c), inserted “, except as authorized by the Board in carrying out the provisions of subchapter III,” after “amount not exceeding”
Source evidence
Code amendment note
Par. (9). Pub. L. 95–630, §§ 502(b), 1803(c), substituted “Board” for “Administrator” and inserted “, except as authorized by the Board in carrying out the provisions of subchapter III,” after “amount not exceeding”.
Enacted provision · exact public law section
(b) The Federal Credit Union Act is amended by striking out “Administrator” each place it appears and inserting in lieu thereof “Board”, and by striking out the personal pronouns “he”, “him”, and “his” when referring to the Administrator and inserting in lieu thereof “it”, “them”, and “its” as appropriate wherever such words appear therein.
1978
Financial Institutions Regulatory and Interest Rate Control Act of 1978
Pub. L. 95–630 § 502(b) · 92 Stat. 3641
Substituted · 12 U.S.C. § 1757(12)(14)
Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing
Source evidence
Code amendment note
Pars. (12) to (14). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing.
Enacted provision · exact public law section
(b) The Federal Credit Union Act is amended by striking out “Administrator” each place it appears and inserting in lieu thereof “Board”, and by striking out the personal pronouns “he”, “him”, and “his” when referring to the Administrator and inserting in lieu thereof “it”, “them”, and “its” as appropriate wherever such words appear therein.
1979
Housing and Community Development Amendments of 1979
Pub. L. 96–153 title III § 323(d) · 93 Stat. 1101
Substituted · 12 U.S.C. § 1757(6)
Pub. L. 96–153 substituted “Federal, Indian tribal, State” for “Federal, State”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 96–153 substituted “Federal, Indian tribal, State” for “Federal, State”.
Enacted provision · exact public law section
(d) Section 107(6) of the Federal Credit Union Act is amended by striking out “nonmember units of Federal, State, or local governments and political subdivisions thereof enumerated in section 207 of 12 USC 1787. this Act” and inserting in lieu thereof “nonmember units of Federal, Indian tribal, State, or local governments and political subdivisions thereof enumerated in section 207 of this Act”.
1979
Pub. L. 96–161 title I § 103(b) · 93 Stat. 1233
Inserted · 12 U.S.C. § 1757(6)
Pub. L. 96–161 inserted “, and to issue, deal in, and accept share drafts as orders of withdrawal against shares, subject to such terms, rates, and conditions as may be prescribed by the Board” after “within limitations prescribed by the Board”
Source evidence
Code amendment note
Par. (6). Pub. L. 96–161 inserted “, and to issue, deal in, and accept share drafts as orders of withdrawal against shares, subject to such terms, rates, and conditions as may be prescribed by the Board” after “within limitations prescribed by the Board”.
Enacted provision · exact public law section
(b) Section 107(6) of such Act is amended by inserting before the semicolon at the end thereof the following: “, and to issue, deal in, and accept share drafts as orders of withdrawal against shares, subject to such terms, rates, and conditions as may be prescribed by the Board”.
1980
Depository Institutions Deregulation and Monetary Control Act of 1980
Pub. L. 96–221 § 309(a)(1) · 94 Stat. 131
Inserted · 12 U.S.C. § 1757(5)(A)(i)
Pub. L. 96–221, § 309(a)(1), inserted provisions relating to an individual cooperative unit
Source evidence
Code amendment note
Par. (5)(A)(i). Pub. L. 96–221, § 309(a)(1), inserted provisions relating to an individual cooperative unit.
Enacted provision · exact public law section
(1) in section 107(5)(A)(i)— (A) by inserting “, including an individual cooperative unit,” immediately following “dwelling”; and (B) by inserting “(except that a loan on an individual cooperative unit shall be adequately secured as defined by the Board)” after “thirty years”;
1980
Depository Institutions Deregulation and Monetary Control Act of 1980
Pub. L. 96–221 § 310 · 94 Stat. 131
Substituted · 12 U.S.C. § 1757(5)(A)(vi)
Pub. L. 96–221, § 310, substituted provisions setting forth maximum interest rate of 15 per centum per annum, subject to specified exceptions, for provisions setting forth a maximum interest rate of 1 per centum per month
Source evidence
Code amendment note
Par. (5)(A)(vi). Pub. L. 96–221, § 310, substituted provisions setting forth maximum interest rate of 15 per centum per annum, subject to specified exceptions, for provisions setting forth a maximum interest rate of 1 per centum per month.
Enacted provision · exact public law section
Sec. 310. interest rates on credit union loans Section 107(5)(A)(vi) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(vi)) is amended to read as follows: “(vi) the rate of interest may not exceed 15 per centum per annum on the unpaid balance inclusive of all finance charges, except that the Board may establish— “(I) after consultation with the appropriate committees of the Congress, the Department of Treasury, and the Federal financial institution regulatory agencies, an interest rate ceiling exceeding such 15 per centum per annum rate, for periods not to exceed 18 months, if it determines that money market interest rates have risen over the preceding six-month period and that prevailing interest rate levels threaten the safety and soundness of individual credit unions as evidenced by adverse trends in liquidity, capital, earnings, and growth; and “(II) a higher interest rate ceiling for Agent members of the Central Liquidity Facility in carrying out the provisions of title III for such periods as the Board may 12 USC 1795. authorize;”.
1980
Depository Institutions Deregulation and Monetary Control Act of 1980
Pub. L. 96–221 title III · 94 Stat. 131
1. Added · 12 U.S.C. § 1757(6)
  Pub. L. 96–221, §§ 305(b), 307, revised existing provisions respecting credit unions serving predominately low-income members including provisions added by Pub. L. 96–161
2. Repealed · 12 U.S.C. § 1757(6)
  Pub. L. 96–221, §§ 305(b), 307, revised existing provisions respecting credit unions serving predominately low-income members including provisions repealed the amendment made by Pub. L. 96–161. See Repeals and Effective Date of 1980 Amendment notes below
Source evidence
Code amendment note
Par. (6). Pub. L. 96–221, §§ 305(b), 307, revised existing provisions respecting credit unions serving predominately low-income members including provisions added by Pub. L. 96–161, and repealed the amendment made by Pub. L. 96–161. See Repeals and Effective Date of 1980 Amendment notes below.
Enacted provision · exact public law
TITLE III— CONSUMER CHECKING ACCOUNT EQUITY ACT OF 1980 Sec. 301. short title This title may be cited as the “Consumer Checking 12 USC 226 note. Account Equity Act of 1980”. Sec. 302. automatic transfer accounts (a) Section 19(i) of the Federal Reserve Act (12 U.S.C. 371a) is amended by adding at the end thereof the following new sentence: “Notwithstanding any other provision of this section, a member bank may permit withdrawals to be made automatically from a savings deposit that consists only of funds in which the entire beneficial interest is held by one or more individuals through payment to the bank itself or through transfer of credit to a demand deposit or other account pursuant to written authorization from the depositor to make such payments or transfers in connection with checks or drafts drawn upon the bank, pursuant to terms and conditions prescribed by the Board.”. (b) Section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended by inserting “(1)” after “(g)” and by adding at the end thereof the following new paragraph: “(2) Notwithstanding the provisions of paragraph (1), an insured nonmember bank may permit withdrawals to be made automatically from a savings deposit that consists only of funds in which the entire beneficial interest is held by one or more individuals through payment to the bank itself or through transfer of credit to a demand deposit or other account pursuant to written authorization from the depositor to make such payments or transfers in connection with checks or drafts drawn upon the bank, pursuant to terms and conditions prescribed by the Board of Directors.”. Sec. 303. now accounts Section 2(a) of Public Law 93–100 (12 U.S.C. 1832(a)) is amended to read as follows: “(a) (1) Notwithstanding any other provision of law but subject to paragraph (2), a depository institution is authorized to permit the owner of a deposit or account on which interest or dividends are paid to make withdrawals by negotiable or transferable instruments for the purpose of making transfers to third parties. “(2) Paragraph (1) shall apply only with respect to deposits or accounts which consist solely of funds in which the entire beneficial interest is held by one or more individuals or by an organization which is operated primarily for religious, philanthropic, charitable, educational, or other similar purposes and which is not operated for profit.”. Sec. 304. remote service units Section 5(b)(1) of the Home Owners’ Loan Act of 1933 (12 U.S.C. 1464(b)(1)) is amended by adding at the end thereof the following new sentence: “This section does not prohibit the establishment of remote service units by associations for the purpose of crediting savings accounts, debiting such accounts, crediting payments on loans, and the disposition of related financial transactions, as provided in regulations prescribed by the Board.”. Sec. 305. share drafts (a) Section 101(5) of the Federal Credit Union Act (12 U.S.C. 1752(5)) is amended— (1) by striking out “or share certificate” each place it appears therein and inserting in lieu thereof “, share certificate, or share draft account”; and (2) by striking out “or ‘share certificate’” and inserting in lieu thereof “, ‘share certificate’, or ‘share draft’”. (b) Section 107(6) of the Federal Credit Union Act (12 U.S.C. 1757(6)) is amended by striking out “credit unions serving” and all that follows through the end thereof and inserting in lieu thereof “credit unions serving predominately low-income members (as defined by the Board) payments on— “(A) shares which may be issued at varying dividend rates; “(B) share certificates which may be issued at varying dividend rates and maturities; and “(C) share draft accounts authorized under section 205(f); subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Board.”. (c) Section 117 of the Federal Credit Union Act (12 U.S.C. 1763) is amended— (1) in the first sentence— (A) by striking out “and” the second place it appears therein and inserting in lieu thereof a comma; and (B) by inserting “, and at different rates on different types of share draft accounts” before the period at the end thereof; and (2) in the second sentence, by striking out “and share certificates” and inserting in lieu thereof share certificates, and share draft accounts (d) Section 205 of the Federal Credit Union Act (12 U.S.C. 1785) is amended by adding at the end thereof the following new subsection: “(f) (1) Every insured credit union is authorized to maintain, and make loans with respect to, share draft accounts in accordance with rules and regulations prescribed by the Board. Except as provided in paragraph (2), an insured credit union may pay dividends on share draft accounts and may permit the owners of such share draft accounts to make withdrawals by negotiable or transferable instruments or other orders for the purpose of making transfers to third parties. “(2) Paragraph (1) shall apply only with respect to share draft accounts in which the entire beneficial interest is held by one or more individuals or members or by an organization which is operated primarily for religious, philanthropic, charitable, educational, or other similar purposes and which is not operated for profit.”. Sec. 306. effective dates The amendments made by sections 302, 304, and 305 of 12 USC 371a note. this title shall take effect at the close of March 31, 1980, and the amendments made by section 303 of this title shall take effect on December 31, 1980. Sec. 307. repeal of existing law At the close of March 31, 1980, the amendments made by sections 101 through 103 of Public Law 96–161 are hereby repealed. 12 USC 371a, 1464, 1752, 1757, 1828. Sec. 308. deposit insurance (a) (1) The following provisions of the Federal Deposit Insurance Act are amended by striking out “$40,000” each place it 12 USC 1811 note. appears therein and inserting in lieu thereof “$100,000”: (A) The first sentence of section 3(m) (12 U.S.C. 1813(m)). (B) The first sentence of section 7(i) (12 U.S.C. 1817(i)). (C) The last sentence of section ll(a)(1) (12 U.S.C. 1821(a)(1)). (D) The fifth sentence of section ll(i) (12 U.S.C. 1821(i)). (2) The amendments made by this subsection are not applicable to Exemption. 12 USC 1813 note. any claim arising out of the closing of a bank prior to the effective date of this section. (b) (1) The following provisions of title IV of the National Housing Act are amended by striking out “$40,000” each place it appears 12 USC 1724. therein and inserting in lieu thereof “$100,000”: (A) Section 401(b) (12 U.S.C. 1724(b)). (B) Section 405(a) (12 U.S.C. 1728(a)). (2) The amendments made by this subsection are not applicable to Exemption. 12 USC 1724 note. any claim arising out of a default, as defined in section 401(d) of the National Housing Act (12 U.S.C. 1724(d)), where the appointment of a conservator, receiver, or other legal custodian as set forth in that section became effective prior to the effective date of this section. (c) (1) The second sentence of section 207(c) of the Federal Credit Union Act (12 U.S.C. 1787(c)) is amended by striking out “$40,000” and inserting in lieu thereof “$100,000”. (2) The amendment made by this subsection is not applicable to any claim arising out of the closing of a credit union for liquidation on account of bankruptcy or insolvency pursuant to section 207 of the Federal Credit Union Act (12 U.S.C. 1787) prior to the effective date of this section. (d) Section 7(d) of the Federal Deposit Insurance Act (12 U.S.C. 1817(d)) is amended— (1) in the first sentence— (A) by inserting “(1)” after “(d)”; (B) by striking out “December 31, 1961” and inserting in lieu thereof “December 31, 1980”; and (C) by striking out “33 ¥3 per centum” and inserting in lieu thereof “40 per centum”; and (2) by adding at the end thereof the following new paragraph: “(2) Notwithstanding any other provision of this subsection— “(A) whenever the Board of Directors determines that the ratio of the Corporation’s capital account to the estimated insured deposits is less than 1.10 per centum, the Board of Directors shall increase the per centum of net assessment income to be transferred to the Corporation’s capital account by such an amount, but not to exceed 50 per centum, as it determines will result in maintaining that ratio at not less than 1.10 per centum; “(B) whenever the Board of Directors determines that the ratio of the Corporation’s capital account to the estimated insured deposits exceeds 1.25 per centum, the Board of Directors may reduce the per centum of net assessment income to be transferred to the Corporation’s capital account by such an amount as it determines will result in maintaining such ratio at not less than 1.25 per centum; and “(C) whenever the Board of Directors determines that the ratio of the Corporation’s capital account to the estimated insured deposits exceeds 1.40 per centum, the Board of Directors shall reduce the per centum of net assessment income to be transferred to the Corporation’s capital account by such an amount as it determines will result in maintaining that ratio at not more than 1.40 per centum.”. (e) The amendments made by this section shall take effect on the date of enactment of this Act. Sec. 309. credit union amendments (a) The Federal Credit Union Act is amended— (1) in section 107(5)(A)(i)— (A) by inserting “, including an individual cooperative unit,” immediately following “dwelling”; and (B) by inserting “(except that a loan on an individual cooperative unit shall be adequately secured as defined by the Board)” after “thirty years”; (2) by striking out section 305(b)(3) and inserting in lieu thereof the following: “(3) shall share in dividend distributions at rates determined by the Board. However, rates on the required capital stock shall be without preference; and”; (3) by striking out “, to the extent or in such amounts as are provided in advance in appropriation Acts” in section 307(15); 12 USC 1795f. and (4) in title III, as so redesignated by subsection (b)(1), by 12 USC 1795b–1795g. striking out “Administrator” each place it appears and inserting in lieu thereof “Board”. (b) The Federal Credit Union Act is amended— 12 USC 1751. 12 USC 1795. (1) by striking out the heading of subchapter III of such Act and inserting in lieu thereof “TITLE III—CENTRAL LIQUIDITY FACILITY”; (2) in title III, as so redesignated by paragraph (1), by striking 12 USC 1795a, 1795c, 1795f, 1795g. out “subchapter” each place it appears therein and inserting in lieu thereof “title”; and (3) in section 307(3), by striking out “subchapters I and II of this 12 USC 1795f. chapter” and inserting in lieu thereof “titles I and II of this Act”. Sec. 310. interest rates on credit union loans Section 107(5)(A)(vi) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(vi)) is amended to read as follows: “(vi) the rate of interest may not exceed 15 per centum per annum on the unpaid balance inclusive of all finance charges, except that the Board may establish— “(I) after consultation with the appropriate committees of the Congress, the Department of Treasury, and the Federal financial institution regulatory agencies, an interest rate ceiling exceeding such 15 per centum per annum rate, for periods not to exceed 18 months, if it determines that money market interest rates have risen over the preceding six-month period and that prevailing interest rate levels threaten the safety and soundness of individual credit unions as evidenced by adverse trends in liquidity, capital, earnings, and growth; and “(II) a higher interest rate ceiling for Agent members of the Central Liquidity Facility in carrying out the provisions of title III for such periods as the Board may 12 USC 1795. authorize;”. Sec. 311. federal home loan bank settlement and processing of drafts Section 11(e) of the Federal Home Loan Bank Act (12 U.S.C. 1431(e)) is amended— (1) by inserting “(1)” after “(e)”; and (2) by adding at the end thereof the following new paragraph: “(2) (A) The Board may, subject to such rules and regulations, including definitions of terms used in this paragraph, as the Board shall from time to time prescribe, authorize Federal Home Loan Banks to be drawees of, and to engage in, or be agents or intermediaries for, or otherwise participate or assist in, the collection and settlement of (including presentment, clearing, and payment of, and remitting for), checks, drafts, or any other negotiable or non negotiable items or instruments of payment drawn on or issued by members of any Federal Home Loan Bank or by institutions which are eligible to make application to become members pursuant to section 4, and to 12 USC 1424. have such incidental powers as the Board shall find necessary for the exercise of any such authorization. “(B) A Federal Home Loan Bank shall make charges, to be determined and regulated by the Board consistent with the principles Ante, p. 140. set forth in section HA(c) of the Federal Reserve Act, or utilize the services of, or act as agent for, or be a member of, a Federal Reserve bank, clearinghouse, or any other public or private financial institution or other agency, in the exercise of any powers or functions pursuant to this paragraph. “(C) The Board is authorized, with respect to participation in the collection and settlement of any items by Federal Home Loan Banks, and with respect to the collection and settlement (including payment by the payor institution) of items payable by Federal savings and loan associations and Federal mutual savings banks, to prescribe rules and regulations regarding the rights, powers, responsibilities, duties, and liabilities, including standards relating thereto, of such Banks, associations, or banks and other parties to any such items or their collection and settlement. In prescribing such rules and regulations, the Board may adopt or apply, in whole or in part, general banking usage and practices, and, in instances or respects in which they would otherwise not be applicable, Federal Reserve regulations and operating letters, the Uniform Commercial Code, and clearinghouse rules.”. Sec. 312. central liquidity facility settlement and processing of share drafts Section 307 of the Federal Credit Union Act (12 U.S.C. 17950 is amended— (1) by inserting “(a)” after “Sec. 307.”; and (2) by adding at the end thereof the following: “(b) (1) The Board may authorize the Central Liquidity Facility or its Agent members, subject to such rules and regulations, including definitions of terms used in this subsection, as the Board shall from time to time prescribe, to be drawees of, and to engage in, or be agents or intermediaries for, or otherwise participate or assist in, the collection and settlement of (including presentment, clearing, and payment of, and remitting for), checks, share drafts, or any other negotiable or nonnegotiable items or instruments of payment drawn on or issued by members of the Central Liquidity Facility, any of its Agent members, or any other credit union eligible to become a member of the Central Liquidity Facility, and to have such incidental powers as the Board shall find necessary for the exercise of any such authorization. “(2) The Central Liquidity Facility or its Agent members shall make charges, to be determined and regulated by the Board consistent with the principles set forth in section 11A(c) of the Federal Ante, p. 140. Reserve Act, or utilize the services of, or act as agent for, or be a member of, a Federal Reserve bank, clearinghouse, or any other public or private financial institution or other agency, in the exercise of any powers or functions pursuant to this subsection. “(3) The Board is authorized, with respect to participation in the collection and settlement of any items by the Central Liquidity Facility or by its Agent members, and with respect to the collection and settlement (including payment by the payor institution) of items payable by members of the Central Liquidity Facility or of any of its Agent members, to prescribe rules and regulations regarding the rights, powers, responsibilities, duties, and liabilities, including standards relating thereto, of such entities and other parties to any such items or their collection and settlement. In prescribing such rules and regulations, the Board may adopt or apply, in whole or in part, general banking usage and practices, and, in instances or respects in which they would otherwise not be applicable, Federal Reserve regulations and operating letters, the Uniform Commercial Code, and clearinghouse rules.”. Sec. 313. alaska usa federal credit union Any person who is a member of the Alaska USA Federal Credit Union prior to any termination date which is contained in section 5 of the charter of such credit union and which would otherwise apply to such person may continue to be a member of such credit union on and after such date until the expiration of two years after the date of the enactment of this Act. For purposes of this section, the term “member of the Alaska USA Federal Credit Union” means any person who has an account at such credit union.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 title V · 96 Stat. 1469
1. Substituted · 12 U.S.C. § 1757(5)(A)(i)
  Pub. L. 97–320, §§ 507–509, substituted “on” for “which is made to finance the acquisition of” after “cooperative unit,”
2. Substituted · 12 U.S.C. § 1757(5)(A)(i)
  Pub. L. 97–320, §§ 507–509, substituted “that is or will be” for “for” after “cooperative unit,”
3. Struck · 12 U.S.C. § 1757(5)(A)(i)
  Pub. L. 97–320, §§ 507–509, struck out “the sales price of which is not more than 150 per centum of the median sales price of residential real property situated in the geographical area (as determined by the board of directors) in which the property is located,” after “credit union member”
4. Inserted · 12 U.S.C. § 1757(5)(A)(i)
  Pub. L. 97–320, §§ 507–509, inserted “or such other limits as shall be set by the National Credit Union Association Board” after “not exceeding thirty years”
Source evidence
Code amendment note
Par. (5)(A)(i). Pub. L. 97–320, §§ 507–509, substituted “on” for “which is made to finance the acquisition of” after “real estate loan” and “that is or will be” for “for” after “cooperative unit,”, struck out “the sales price of which is not more than 150 per centum of the median sales price of residential real property situated in the geographical area (as determined by the board of directors) in which the property is located,” after “credit union member”, and inserted “or such other limits as shall be set by the National Credit Union Association Board” after “not exceeding thirty years”.
Enacted provision · exact public law
TITLE V— AMENDMENTS TO THE FEDERAL CREDIT UNION ACT Sec. 501. custodial accounts Section 101(5) of the Federal Credit Union Act (12 U.S.C. 1752(5)) is amended by inserting “, and such terms mean custodial accounts established for loans sold in whole or in part pursuant to section 107(13)” after “section 207 of this Act”. Sec. 502. audit of national credit union am1nistration Section 102(f) of the Federal Credit Union Act (12 U.S.C. 1752a(f)) is amended by striking out “on a calendar year basis”. Sec. 503. organizational process Section 103 of the Federal Credit Union Act (12 U.S.C. 1753) is amended by striking out “subscribe” and inserting in lieu thereof “each subscribe either individually or collectively”. Sec. 504. par value of shares Section 103(4) of the Federal Credit Union Act (12 U.S.C. 1753(4)) is amended by inserting “initial” before “par value” and by striking out “, which shall be $5 each”. Sec. 505. investment of fees Section 105 of the Federal Credit Union Act (12 U.S.C. 1755) is amended by adding at the end thereof the following new subsection: “(e) (1) Upon request of the Board, the Secretary of the Treasury shall invest and reinvest such portions of the annual operating fees deposited under subsection (d) as the Board determines are not needed for current operations. “(2) Such investments may be made only in interest bearing securities of the United States with maturities requested by the Board bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. “(3) All income derived from such investments and reinvestments shall be deposited to the account of the Administration described in subsection (d).”. Sec. 506. technical amendment Section 107(5)(A) of the Federal Credit Union Act (12 U.S.C. 1757(5)) is amended by striking out the period at the end of clause (ix) and inserting in lieu thereof a semicolon and by adding at the end thereof the following: “(x) loans must be approved by the credit committee or a loan officer, but 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 10 per centum of the credit union’s unimpaired capital and surplus.”. Sec. 507. real estate lending; maximum maturity Section 107(5)(A)(i) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(i)) is amended by inserting “or such other limits as shall be set by the National Credit Union Association Board” after “not exceeding thirty years.”. Sec. 508. real estate lending; median price rule Section 107(5)(A)(i) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(i)) is amended by striking out “the sales price of which is not more than 150 per centum of the median sales price of residential real property situated in the geographical area (as determined by the board of directors) in which the property is located,”. Sec. 509. real estate lending; refinancing Section 107(5)(A)(i) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(i)) is amended by striking out “which is made to finance the acquisition of” and inserting in lieu thereof “on” and by striking out “for” the first time it appears and inserting in lieu therof “that is or will be”. Sec. 510. real estate lending; second mortgages Section 107(5)(A)(ii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(ii)) is amended to read as follows: “(ii) a loan to finance the purchase of a mobile home, which shall be secured by a first lein on such mobile home, to be used by the credit union member as his residence, or a second mortgage loan secured by a residential dwelling which is the residence of a credit union member shall have a maturity not to exceed fifteen years unless such loan is insured or guaranteed as provided in subparagraph (iii);”. Sec. 511. terms of guaranteed loans Section 107(5)(A)(iii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(iii)) is amended to read as follows: “(iii) a loan secured by the insurance or guarantee of, or with advance commitment to purchase the loan by, the Federal Government, a State government, or any agency of either may be made for the maturity and under the terms and conditions specified in the law under which such insurance, guarantee, or commitment is provided;”. Sec. 512. loans to directors or committee members Sections 107(5)(A) (iv) and (v) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A) (iv) and (v)) are amended by striking out “$5,000” and inserting in lieu thereof “$10,000”. Sec. 513. real estate lending; partial payments Section 107(5)(A)(viii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(viii)) is amended by inserting before the semicolon at the end thereof the following: “, except that on a first or second mortgage loan a Federal credit union may require that any partial prepayments (I) be made on the date monthly installments are due, and (II) be in the amount of that part of one or more monthly installments which would be applicable to principal”. Sec. 514. investment in state and local government obligations Section 107(7) of the Federal Credit Union Act (12 U.S.C. 1757(7)) is amended by adding at the end thereof the following: “(L) investments in obligations of, or issued by, any State or political subdivision thereof (including any agency, corporation, or instrumentality of a State or political subdivision), except that no credit union may invest more than 10 per centum of its unimpaired capital and surplus in the obligations of any one issuer (exclusive of general obligations of the issuer); and”. Sec. 515. use of space and facilities Section 124 of the Federal Credit Union Act (12 U.S.C. 1770) is amended by adding at the end thereof the following: “For the purpose of this section, the term ‘services’ includes, but is not limited to, the providing of lighting, heating, cooling, electricity, office furniture, office machines and equipment, telephone service (including installation lines and equipment and other expenses associated with telephone service), and security systems (including installation and other expenses associated with security systems). Where there is an agreement for the payment of costs associated with the provision of space or services, nothing in title 31, United States Code, or any other provision of law, shall be construed to prohibit or restrict payment by reimbursement to the miscellaneous receipts or other appropriate account of the Treasury.”. Sec. 516. investment in secondary market instruments Section 107(7)(E) of the Federal Credit Union Act (12 U.S.C. 1757(7)(E)) is amended by inserting after the last semicolon the following: “or in obligations, participations, securities, or other instruments of, or issued by, or fully guaranteed as to principal and interest by any other agency of the United States and a Federal credit union may issue and sell securities which are guaranteed 12 USC 1721. pursuant to section 306(g) of the National Housing Act;”. Sec. 517. deposits in out-of-state insured state banks Section 107(8) of the Federal Credit Union Act (12 U.S.C. 1757(8)) is amended by inserting after “in which the Federal credit union does business,” the following: “or in banks or institutions the accounts of which are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation,”. Sec. 518. money transfer services Section 107(12) of the Federal Credit Union Act (12 U.S.C. 1757(12)) is amended— (1) by striking out “and money orders” and inserting in lieu thereof “, money orders, and other similar money transfer instruments”; and (2) by striking out all after “for a fee” and inserting in lieu thereof a semicolon. Sec. 519. annual meetings Section 110 of the Federal Credit Union Act (12 U.S.C. 1760) is amended to read as follows: “Sec. 110. “members’ meetings The fiscal year of all Federal credit unions shall end December 31. The annual meeting of each Federal credit union shall be held at such place as its bylaws shall prescribe. Special meetings may be held in the manner indicated in the bylaws. No member shall be entitled to vote by proxy, but a member other than a natural person may vote through an agent designated for the purpose. Irrespective of the number of shares held, no member shall have more than one vote.”. Sec. 520. technical wording changes in management authority Section 111 of the Federal Credit Union Act (12 U.S.C. 1761) is amended to read as follows: “Sec. 111. “management (a) The management of a Federal credit union shall be by a board of directors, a supervisory committee, and where the bylaws so provide, a credit committee. The board shall consist of an odd number of directors, at least five in number, to be elected annually by and from the members as the bylaws provide. Any vacancy occurring on the board shall be filled until the next annual election by appointment by the remainder of the directors. “(b) The supervisory committee shall be appointed by the board of directors and shall consist of not less than three members nor more than five members, one of whom may be a director other than the compensated officer of the board. A record of the names and addresses of the executive officers, members of the supervisory committee, credit committee, and loan officers, shall be filed with the Administration within ten days after their election or appointment. “(c) No member of the board or of any other committee shall, as such, be compensated, except that reasonable health, accident, similar insurance protection, and the reimbursement of reasonable expenses incurred in the execution of the duties of the position shall not be considered compensation.”. Sec. 521. elimination of specific reference to the titles of the officers of the board Section 112 of the Federal Credit Union Act (12 U.S.C. 1761(a)) is amended to read as follows: 12 USC 1761a. “Sec. 112. “officers of the board At their first meeting after the annual meeting of the members, the directors shall elect from their number the board officers specified in the bylaws. Only one board officer may be compensated as an officer of the board and the bylaws shall specify such position as well as the specific duties of each of the board officers. The board shall elect from their number a financial officer who shall give bond with good and sufficient surety, in an amount and character to be determined by the board of directors in compliance with regulations prescribed from time to time by the Board conditioned upon the faithful performance of the officer’s trust.”. Sec. 522. clarification of board of director’s duties Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is amended to read as follows: “Sec. 113. “board of directors; meetings; powers and duties; executive committee; membership officers; membership applications The board of directors shall meet at least once a month and shall have the general directions and control of the affairs of the Federal credit union. Minutes of all meetings shall be kept. Among other things, the board of directors shall— “(1) act upon applications for membership or appoint membership officers from among the members of the board of directors, other than the board member paid as an officer, the financial board officer, any assistant to the paid officer of the board or to the financial officer, or any loan officer; “(2) require any officer or employee having custody of or handling funds to give bond with good and sufficient surety in an amount and character in compliance with regulations of the Board, and authorize the payment of the premium or premiums therefor from the funds of the Federal credit unions; “(3) fill vacancies on the board of directors until successors elected at the next annual meeting have qualified; “(4) if the bylaws provide for an elected credit committee, fill vacancies on the credit committee until successors elected at the next annual meeting have qualified; “(5) appoint the members of the supervisory committee and, if the bylaws so provide, appoint the members of the credit committee; “(6) have charge of investments including the right to designate an investment committee of not less than two to act on its behalf; “(7) determine the maximum number of shares, share certificates, and share draft accounts, and the classes of shares, share certificates, and share draft accounts; “(8) subject to any limitations of this subchapter, determine the interest rates on loans, the security, and the maximum amount which may be loaned and provided in lines of credit; “(9) authorize interest refunds to members of record at the close of business on the last day of any dividend period from income earned and received in proportion to the interest paid them during that dividend period; “(10) if the bylaws so provide, appoint one or more loan officers and delegate to these officers the power to approve or disapprove loans, lines of credit, or advances from lines of credit; “(11) establish the par value of the share; “(12) subject to the limitations of this title and the bylaws of the credit union, provide for the hiring and compensation of officers and employees; “(13) if the bylaws so provide, appoint an executive committee of not less than three directors to act on its behalf and any other committees to which it can delegate specific functions; “(14) prescribe conditions and limitations for any committee which it appoints; “(15) review at each monthly meeting a list of approved or pending applications for membership received since the previous monthly meetings together with such other related information as it or the bylaws require; “(16) provide for the furnishing of the written reasons for any denial of a membership application to the applicant upon the written request of the applicant; “(17) in the absence of a credit committee, and upon the written request of a member, review a loan application denied by a loan officer; “(18) declare the dividend rate to be paid on shares, share certificates, and share draft accounts pursuant to the terms and conditions of section 117; Post, p. 1534. “(19) establish and maintain a system of internal controls consistent with the regulations of the Board; “(20) establish lending policies; and “(21) do all other things that are necessary and proper to carry out all the purposes and powers of the Federal credit union, subject to regulations issued by the Board.”. Sec. 523. optional credit committee Section 114 of the Federal Credit Union Act (12 U.S.C. 1761c) is amended to read as follows: “Sec. 114. “credit committee (a) If the bylaws provide for a credit committee, then pursuant to the provisions of the bylaws, the board of directors may appoint or the members may elect a credit committee which shall consist of an odd number of members of the credit union, but which shall not include more than one loan officer. The method used shall be set forth in the bylaws. The credit committee shall hold such meetings as the business of the Federal credit union may require, not less frequently than once a month, to consider applications for loans or lines of credit. Reasonable notice of such meetings shall be given to all members of the committee. Except for those loans or lines of credit required to be approved by the board of directors in section 107(5) of this Act, approval of an application shall be by Ante, pp. 1528, 1529. majority of the committee who are present at the meeting at which it is considered provided that a majority of the full committee is present. The credit committee may appoint and delegate to loan officers the authority to approve applications. “(b) If the bylaws provide for a credit committee, all applications not approved by the loan officer shall be reviewed by the credit committee, and the approval of a majority of the members who are present at the meeting when such review is undertaken shall be required to reverse the loan officer’s decision provided a majority of the full committee is present. If there is not a credit committee, a member shall have the right upon written request of review by the board of directors of a loan application which has been denied. No individual shall have authority to disburse funds of the Federal credit union with respect to any loan or line of credit for which the application has been approved by him in his capacity as a loan officer.”. Sec. 524. requirement that credit union pay on all dollars after purchase of full share Section 117 of the Federal Credit Union Act (12 U.S.C. 1763) is amended to read as follows: “Sec. 117. “dividends At such intervals as the board of directors may authorize, and after provision for required reserves, the board of directors may declare, pursuant to such regulations as may be issued by the Board, a dividend to be paid at different rates on different types of shares, at different rates and maturity dates in the case of share certificates, and at different rates on different types of share draft accounts. Dividends credited may be accrued on various types of shares, share certificates, and share draft accounts as authorized by the board of directors. If the par value of a share exceeds $5, dividends shall be paid on all funds in the regular share account once a full share has been purchased.”. Sec. 525. nonparticipation Section 118 of the Federal Credit Union Act (12 U.S.C. 1764) is amended to read as follows: “Sec. 118. “expulsion and withdrawal (a) Subject to subsection (b) of this section, a member may be expelled by a two-thirds vote of the members of a Federal credit union present at a special meeting called for the purpose, but only after opportunity has been given him to be heard. “(b) The board of directors of a Federal credit union may, by majority vote of a quorum of directors, adopt a policy with respect to expulsion from membership based on nonparticipation by a member in the affairs of the credit union. In establishing its policy, the board should consider a member’s failure to vote in annual credit union elections or failure to purchase shares from, obtain a loan from, or lend to the Federal credit union. If such a policy is adopted, written notice of the policy as adopted and the effective date of such policy shall be mailed to each member of the credit union at the member’s current address appearing on the records of the credit union not less than thirty days prior to the effective date of such policy. In addition, each new member shall be provided written notice of any such policy prior to or upon applying for membership. “(c) Withdrawal or expulsion of a member pursuant to either subsection (a) or (b) of this section shall not operate to relieve him from liability to the Federal credit union. The amount to be paid a withdrawing or expelled member by a Federal credit union shall be determined and paid in a manner specified in the bylaws.”. Sec. 526. national credit union administration board’s regulatory authority Section 120(a) of the Federal Credit Union Act (12 U.S.C. 1766(a)) is amended by adding at the end thereof the following: “Any central credit union chartered by the Board shall be subject to such rules, regulations, and orders as the Board deems appropriate and, except as otherwise specifically provided in such rules, regulations, or orders, shall be vested with or subject to the same rights, privileges, duties, restrictions, penalties, liabilities, conditions, and limitations that would apply to all Federal credit unions under this Act.”. Sec. 527. charter conversion Section 125(a)(1) of the Federal Credit Union Act (12 U.S.C. 1771(a)(1)) is amended by striking out the last sentence and inserting in lieu thereof the following: “Approval of the proposition for conversion shall be by the affirmative vote of a majority of the members of the credit union who vote on the proposal. The written notice of the proposition shall in boldface type state that the issue will be decided by a majority of the members who vote.”. Sec. 528. elimination of discriminatory insurance premium assessment for deposits of state chartered credit unions Section 202(h)(3) of the Federal Credit Union Act (12 “Members accounts.” U.S.C. 1782(h)(3)) is amended to read as follows: “(3) the term ‘members accounts’ when applied to the premium charge for insurance of accounts shall not include amounts received from other credit unions, the accounts of which are federally insured or insured or guaranteed by a fund established under State law or regulation for this purpose, in excess of the insured account limit set forth in section 207(c)(1);”. 12 USC 1787. Sec. 529. elimination of partial insurance premiums and rebates Section 202(c) of the Federal Credit Union Act (12 U.S.C. 1782(c)) is amended by striking out paragraphs (3) and (6) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. Sec. 530. authorization for fund to borrow from clf Section 203 of the Federal Credit Union Act (12 U.S.C. 1783) is amended by adding at the end thereof the following: “(f) In addition to the authority to borrow from the Secretary of the Treasury provided in subsection (d), if in the judgment of the Board, a loan to the fund is required at any time for carrying out the purposes of this title, the fund is authorized to borrow from the National Credit Union Administration Central Liquidity Facility.”. Sec. 531. central liquidity facility lending and investment authority Section 307(a) of the Federal Credit Union Act (12 U.S.C. 1795fla)) is amended— (1) by striking out “and” at the end of paragraph (15); (2) by striking out the period at the end of paragraph (16) and inserting in lieu thereof a semicolon; and (3) by adding at the end thereof the following: “(17) exercise such incidental powers as shall be necessary or requisite to enable it to carry out effectively the purposes for which the facility is incorporated; and “(18) advance funds to the National Credit Union Share Insurance Fund under such terms and conditions as may be established by the Board.”. Sec. 532. central liquidity facility as agent of federal reserve system Title III of the Federal Credit Union Act (12 U.S.C. 1795 through 1795i) is amended by adding at the end thereof the following: “Sec. 311. “agent of the federal reserve system The facility is authorized to act upon the request of the Board of Governors of the Federal Reserve System as an agent of the Federal Reserve System in matters pertaining to credit unions under such terms and conditions as may be established by the Board of Governors of the Federal Reserve System.”. Sec. 533. study of directors’ compensation The national Credit Union Administration Board shall conduct a study to determine the feasibility and desirability of permitting Federal credit unions to compensate members of their boards of directors. A report containing the results of such study shall be transmitted to the Congress not later than 6 months after the date of enactment of this Act.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 510 · 96 Stat. 1469
Substituted · 12 U.S.C. § 1757(5)(A)(ii)
Pub. L. 97–320, § 510, substituted “or a second mortgage loan secured by a residential dwelling” for “or for the repair, alteration, or improvement of a residential dwelling”
Source evidence
Code amendment note
Par. (5)(A)(ii). Pub. L. 97–320, § 510, substituted “or a second mortgage loan secured by a residential dwelling” for “or for the repair, alteration, or improvement of a residential dwelling”.
Enacted provision · exact public law section
Sec. 510. real estate lending; second mortgages Section 107(5)(A)(ii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(ii)) is amended to read as follows: “(ii) a loan to finance the purchase of a mobile home, which shall be secured by a first lein on such mobile home, to be used by the credit union member as his residence, or a second mortgage loan secured by a residential dwelling which is the residence of a credit union member shall have a maturity not to exceed fifteen years unless such loan is insured or guaranteed as provided in subparagraph (iii);”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 511 · 96 Stat. 1469
1. Inserted · 12 U.S.C. § 1757(5)(A)(iii)
  Pub. L. 97–320, § 511, inserted “, or with advance commitment to purchase the loan by,”
2. Substituted · 12 U.S.C. § 1757(5)(A)(iii)
  Pub. L. 97–320, § 511, substituted “insurance, guarantee, or commitment” for “insurance or guarantee”
Source evidence
Code amendment note
Par. (5)(A)(iii). Pub. L. 97–320, § 511, inserted “, or with advance commitment to purchase the loan by,” and substituted “insurance, guarantee, or commitment” for “insurance or guarantee”.
Enacted provision · exact public law section
Sec. 511. terms of guaranteed loans Section 107(5)(A)(iii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(iii)) is amended to read as follows: “(iii) a loan secured by the insurance or guarantee of, or with advance commitment to purchase the loan by, the Federal Government, a State government, or any agency of either may be made for the maturity and under the terms and conditions specified in the law under which such insurance, guarantee, or commitment is provided;”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 512 · 96 Stat. 1469
Substituted · 12 U.S.C. § 1757(5)(A)(iv); 12 U.S.C. § 1757(5)(A)(v)
Pub. L. 97–320, § 512, substituted “$10,000” for “$5,000”
Source evidence
Code amendment note
Par. (5)(A)(iv), (v). Pub. L. 97–320, § 512, substituted “$10,000” for “$5,000”.
Enacted provision · exact public law section
Sec. 512. loans to directors or committee members Sections 107(5)(A) (iv) and (v) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A) (iv) and (v)) are amended by striking out “$5,000” and inserting in lieu thereof “$10,000”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 513 · 96 Stat. 1469
Inserted · 12 U.S.C. § 1757(5)(A)(viii)
Pub. L. 97–320, § 513, inserted condition relating to partial prepayments of first or second mortgage loans
Source evidence
Code amendment note
Par. (5)(A)(viii). Pub. L. 97–320, § 513, inserted condition relating to partial prepayments of first or second mortgage loans.
Enacted provision · exact public law section
Sec. 513. real estate lending; partial payments Section 107(5)(A)(viii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(viii)) is amended by inserting before the semicolon at the end thereof the following: “, except that on a first or second mortgage loan a Federal credit union may require that any partial prepayments (I) be made on the date monthly installments are due, and (II) be in the amount of that part of one or more monthly installments which would be applicable to principal”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 506 · 96 Stat. 1469
Added · 12 U.S.C. § 1757(5)(A)(x)
Pub. L. 97–320, § 506, added cl. (x)
Source evidence
Code amendment note
Par. (5)(A)(x). Pub. L. 97–320, § 506, added cl. (x).
Enacted provision · exact public law section
Sec. 506. technical amendment Section 107(5)(A) of the Federal Credit Union Act (12 U.S.C. 1757(5)) is amended by striking out the period at the end of clause (ix) and inserting in lieu thereof a semicolon and by adding at the end thereof the following: “(x) loans must be approved by the credit committee or a loan officer, but 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 10 per centum of the credit union’s unimpaired capital and surplus.”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 516 · 96 Stat. 1469
Inserted · 12 U.S.C. § 1757(7)(E)
Pub. L. 97–320, § 516, inserted provisions relating to instruments issued or guaranteed by any other agency of the United States, and that a Federal Credit Union may issue and sell securities which are guaranteed pursuant to section 1721(g) of this title
Source evidence
Code amendment note
Par. (7)(E). Pub. L. 97–320, § 516, inserted provisions relating to instruments issued or guaranteed by any other agency of the United States, and that a Federal Credit Union may issue and sell securities which are guaranteed pursuant to section 1721(g) of this title.
Enacted provision · exact public law section
Sec. 516. investment in secondary market instruments Section 107(7)(E) of the Federal Credit Union Act (12 U.S.C. 1757(7)(E)) is amended by inserting after the last semicolon the following: “or in obligations, participations, securities, or other instruments of, or issued by, or fully guaranteed as to principal and interest by any other agency of the United States and a Federal credit union may issue and sell securities which are guaranteed 12 USC 1721. pursuant to section 306(g) of the National Housing Act;”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 514 · 96 Stat. 1469
Added · 12 U.S.C. § 1757(7)(L)
Pub. L. 97–320, § 514, added cl. (L)
Source evidence
Code amendment note
Par. (7)(L). Pub. L. 97–320, § 514, added cl. (L).
Enacted provision · exact public law section
Sec. 514. investment in state and local government obligations Section 107(7) of the Federal Credit Union Act (12 U.S.C. 1757(7)) is amended by adding at the end thereof the following: “(L) investments in obligations of, or issued by, any State or political subdivision thereof (including any agency, corporation, or instrumentality of a State or political subdivision), except that no credit union may invest more than 10 per centum of its unimpaired capital and surplus in the obligations of any one issuer (exclusive of general obligations of the issuer); and”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 517 · 96 Stat. 1469
Inserted · 12 U.S.C. § 1757(8)
Pub. L. 97–320, § 517, inserted “or in banks or institutions the accounts of which are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation,” after “in which the Federal Credit Union does business,”
Source evidence
Code amendment note
Par. (8). Pub. L. 97–320, § 517, inserted “or in banks or institutions the accounts of which are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation,” after “in which the Federal Credit Union does business,”.
Enacted provision · exact public law section
Sec. 517. deposits in out-of-state insured state banks Section 107(8) of the Federal Credit Union Act (12 U.S.C. 1757(8)) is amended by inserting after “in which the Federal credit union does business,” the following: “or in banks or institutions the accounts of which are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation,”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 § 518 · 96 Stat. 1469
1. Substituted · 12 U.S.C. § 1757(12)
  Pub. L. 97–320, § 518, substituted “, money orders, and other similar money transfer instruments” for “and money orders”
2. Struck · 12 U.S.C. § 1757(12)
  Pub. L. 97–320, § 518, struck out “which does not exceed the direct and indirect costs incident to providing such service” after “for a fee”
Source evidence
Code amendment note
Par. (12). Pub. L. 97–320, § 518, substituted “, money orders, and other similar money transfer instruments” for “and money orders”, and struck out “which does not exceed the direct and indirect costs incident to providing such service” after “for a fee”.
Enacted provision · exact public law section
Sec. 518. money transfer services Section 107(12) of the Federal Credit Union Act (12 U.S.C. 1757(12)) is amended— (1) by striking out “and money orders” and inserting in lieu thereof “, money orders, and other similar money transfer instruments”; and (2) by striking out all after “for a fee” and inserting in lieu thereof a semicolon.
1983
Pub. L. 97–457 § 25 · 96 Stat. 2507
Substituted · 12 U.S.C. § 1757(5)(A)(i)
Pub. L. 97–457, § 25, substituted “Administration” for “Association” after “National Credit Union”
Source evidence
Code amendment note
Par. (5)(A)(i). Pub. L. 97–457, § 25, substituted “Administration” for “Association” after “National Credit Union”.
Enacted provision · exact public law section
Sec. 25. Section 107(5)(A)(i) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(i)), as amended by section 507 of Public Law 97–320, is amended by striking out “Association” and inserting in lieu thereof “Administration”.
1983
Pub. L. 97–457 § 26 · 96 Stat. 2507
1. Redesignated · 12 U.S.C. § 1757(7)(K)
  Pub. L. 97–457, § 26, redesignated cl. (L) as (K)
2. Substituted · 12 U.S.C. § 1757(7)(K)
  Pub. L. 97–457, § 26, substituted a period for “; and” at end
Source evidence
Code amendment note
Par. (7)(K). Pub. L. 97–457, § 26, redesignated cl. (L) as (K) and substituted a period for “; and” at end.
Enacted provision · exact public law section
Sec. 26. Section 107(7) of the Federal Credit Union Act (12 U.S.C. 1757(7)), as amended by section 514 of Public Law 97–320, is amended— (1) by striking out “and” before “(J)”; (2) by striking out “(L)” and inserting in lieu thereof “(K)”; and (3) by striking out “; and” at the end thereof and inserting in lieu thereof a period.
1984
Secondary Mortgage Market Enhancement Act of 1984
Pub. L. 98–440 § 105(b) · 98 Stat. 1689
1. Added · 12 U.S.C. § 1757(15); 12 U.S.C. § 1757(16)
  Pub. L. 98–440, § 105(b), added par. (15)
2. Redesignated · 12 U.S.C. § 1757(15); 12 U.S.C. § 1757(16)
  Pub. L. 98–440, § 105(b), redesignated former par. (15) as (16)
Source evidence
Code amendment note
Pars. (15), (16). Pub. L. 98–440, § 105(b), added par. (15) and redesignated former par. (15) as (16).
Enacted provision · exact public law section
(b) Section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is amended— (1) by redesignating paragraph (15) as paragraph (16); and (2) by inserting after paragraph (14) the following: “(15) to invest in securities that— “(A) are offered and sold pursuant to section 4(5) of the Securities Act of 1933 (15 U.S.C. 77d(5)); or “(B) are mortgage related securities (as that term is defined in section 3(a)(41) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(41)b, subject to such regulations as the Board may prescribe, including regulations prescribing minimum size of the issue (at the time of initial distribution) or minimum aggregate sales prices, or both;”.
1984
Housing and Community Development Technical Amendments Act of 1984
Pub. L. 98–479 title II § 206 · 98 Stat. 2218
Inserted · 12 U.S.C. § 1757(5)(A)(ii)
Pub. L. 98–479 inserted “a loan for the repair, alteration, or improvement of a residential dwelling which is the residence of a credit union member,”
Source evidence
Code amendment note
Par. (5)(A)(ii). Pub. L. 98–479 inserted “a loan for the repair, alteration, or improvement of a residential dwelling which is the residence of a credit union member,”.
Enacted provision · exact public law section
Sec. 206. credit union loans to homeowners Section 107(5)(A)(ii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(ii)) is amended to read as follows: “(ii) a loan to finance the purchase of a mobile home, which shall be secured by a first lien on such mobile home, to be used by the credit union member as his residence, a loan for the repair, alteration, or improvement of a residential dwelling which is the residence of a credit union member, or a second mortgage loan secured by a residential dwelling which is the residence of a credit union member, shall have a maturity not to exceed fifteen years unless such loan is insured or guaranteed as provided in subparagraph (iii);”.
1987
Credit Union Amendments of 1987
Pub. L. 100–86 § 702 · 101 Stat. 552
Substituted · 12 U.S.C. § 1757(5)(A)(ii)
Pub. L. 100–86, § 702, substituted “15 years or any longer term which the Board may allow” for “fifteen years unless such loan is insured or guaranteed as provided in subparagraph (iii)”
Source evidence
Code amendment note
Par. (5)(A)(ii). Pub. L. 100–86, § 702, substituted “15 years or any longer term which the Board may allow” for “fifteen years unless such loan is insured or guaranteed as provided in subparagraph (iii)”.
Enacted provision · exact public law section
SEC. 702. SECOND MORTGAGE AND HOME IMPROVEMENT LOANS. Section 107(5)(A)(ii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(ii)) is amended by striking out “fifteen years” and all that follows and inserting in lieu thereof “15 years or any longer term which the Board may allow;”.
1987
Credit Union Amendments of 1987
Pub. L. 100–86 § 703 · 101 Stat. 552
Inserted · 12 U.S.C. § 1757(6)
Pub. L. 100–86, § 703, inserted “, representing equity,” after “payments”
Source evidence
Code amendment note
Par. (6). Pub. L. 100–86, § 703, inserted “, representing equity,” after “payments”.
Enacted provision · exact public law section
SEC. 703. OWNERSHIP INTEREST. Section 107(6) of the Federal Credit Union Act (12 U.S.C. 1757(6)) is amended by inserting “, representing equity,” after “payments”.
1989
Support for East European Democracy (SEED) Act of 1989
Pub. L. 101–179 title II § 206(b) · 103 Stat. 1298
1. Added · 12 U.S.C. § 1757(16); 12 U.S.C. § 1757(17)
  Pub. L. 101–179 added par. (16)
2. Redesignated · 12 U.S.C. § 1757(16); 12 U.S.C. § 1757(17)
  Pub. L. 101–179 redesignated former par. (16) as (17)
Source evidence
Code amendment note
Pars. (16), (17). Pub. L. 101–179 added par. (16) and redesignated former par. (16) as (17).
Enacted provision · exact public law section
(b) Amendment to Federal Credit Union Act.— Section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is amended by redesignating paragraph (16) as paragraph (17) and by inserting after paragraph (15) the following new paragraph: “(16) subject to such regulations as the Board may prescribe, to provide technical assistance to credit unions in Poland and Hungary; and”.
1994
Small Business Loan Securitization and Secondary Market Enhancement Act of 1994
Pub. L. 103–325 title II § 206(b) · 108 Stat. 2160
Added · 12 U.S.C. § 1757(15)(C)
Pub. L. 103–325 added subpar. (C)
Source evidence
Code amendment note
Par. (15)(C). Pub. L. 103–325 added subpar. (C).
Enacted provision · exact public law section
(b) Credit Unions.— Section 107(15) of the Federal Credit Union Act (12 U.S.C. 1757(15)) is amended— (1) in subparagraph (A), by striking “or” at the end; (2) in subparagraph (B), by inserting “or” at the end; and (3) by adding at the end the following new subparagraph: “(C) are small business related securities (as defined in section 3(a)(53) of the Securities Exchange Act of 1934), subject to such regulations as the Board may prescribe, including regulations prescribing the minimum size of the issue {at the time of the initial distribution), the minimum aggregate sales price, or both;”.
1996
Department of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 div. A title II § 2306 · 110 Stat. 3009
Substituted · 12 U.S.C. § 1757(5)(A)(iv); 12 U.S.C. § 1757(5)(A)(v)
Pub. L. 104–208 substituted “$20,000” for “$10,000”
Source evidence
Code amendment note
Par. (5)(A)(iv), (v). Pub. L. 104–208 substituted “$20,000” for “$10,000”.
Enacted provision · exact public law section
SEC. 2306. INCREASE IN CERTAIN CREDIT UNION LOAN CEILINGS. Section 107(5)(A) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)) is amended— (1) in clause (iv), by striking “$10,000” and inserting “$20,000”; and (2) in clause (v), by striking “$10,000” and inserting “$20,000”.
2006
Pub. L. 109–351 § 502 · 120 Stat. 1966
Substituted · 12 U.S.C. § 1757(5)
Pub. L. 109–351, § 502, substituted “to make loans, the maturities of which shall not exceed 15 years,” for “to make loans, the maturities of which shall not exceed twelve years” in introductory provisions
Source evidence
Code amendment note
Par. (5). Pub. L. 109–351, § 502, substituted “to make loans, the maturities of which shall not exceed 15 years,” for “to make loans, the maturities of which shall not exceed twelve years” in introductory provisions.
Enacted provision · exact public law section
SEC. 502. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF FEDERAL CREDIT UNION LOANS TO 15 YEARS. Section 107(5) of the Federal Credit Union Act (12 U.S.C. 1757(5)) is amended in the matter preceding subparagraph (A), by striking “to make loans, the maturities of which shall not exceed twelve years” and inserting “to make loans, the maturities of which shall not exceed 15 years,”.
2006
Pub. L. 109–351 § 726(3) · 120 Stat. 1966
Substituted · 12 U.S.C. § 1757(5)(E)
Pub. L. 109–351, § 726(3), substituted semicolon for period at end
Source evidence
Code amendment note
Par. (5)(E). Pub. L. 109–351, § 726(3), substituted semicolon for period at end.
Enacted provision · exact public law section
(3) In section 107(5)(E), 12 USC 1757. strike the period at the end and insert a semicolon.
2006
Pub. L. 109–351 § 726(4) · 120 Stat. 1966
Substituted · 12 U.S.C. § 1757(6)
Pub. L. 109–351, § 726(4), substituted semicolon for period at end
Source evidence
Code amendment note
Par. (6). Pub. L. 109–351, § 726(4), substituted semicolon for period at end.
Enacted provision · exact public law section
(4) In each of paragraphs (6) and (7) of section 107, strike the period at the end and insert a semicolon.
2006
Pub. L. 109–351 § 726(4) · 120 Stat. 1966
Substituted · 12 U.S.C. § 1757(7)
Pub. L. 109–351, § 726(4), substituted semicolon for period at end
Source evidence
Code amendment note
Par. (7). Pub. L. 109–351, § 726(4), substituted semicolon for period at end.
Enacted provision · exact public law section
(4) In each of paragraphs (6) and (7) of section 107, strike the period at the end and insert a semicolon.
2006
Pub. L. 109–351 § 726(5) · 120 Stat. 1966
Struck · 12 U.S.C. § 1757(7)(D)
Pub. L. 109–351, § 726(5), struck out “the Federal Savings and Loan Insurance Corporation or” before “the Federal Deposit Insurance Corporation”
Source evidence
Code amendment note
Par. (7)(D). Pub. L. 109–351, § 726(5), struck out “the Federal Savings and Loan Insurance Corporation or” before “the Federal Deposit Insurance Corporation”.
Enacted provision · exact public law section
(5) In section 107(7)(D), strike “the Federal Savings and Loan Insurance Corporation or”.
2006
Pub. L. 109–351 § 726(6) · 120 Stat. 1966
Substituted · 12 U.S.C. § 1757(7)(E)
Pub. L. 109–351, § 726(6), substituted “the Federal Housing Finance Board,” for “the Federal Home Loan Bank Board,”
Source evidence
Code amendment note
Par. (7)(E). Pub. L. 109–351, § 726(6), substituted “the Federal Housing Finance Board,” for “the Federal Home Loan Bank Board,”.
Enacted provision · exact public law section
(6) In section 107(7)(E), strike “the Federal Home Loan Bank Board,” and insert “the Federal Housing Finance Board,”.
2006
Pub. L. 109–351 § 726(7) · 120 Stat. 1966
Changed · 12 U.S.C. § 1757(9)
Pub. L. 109–351, § 726(7), made technical amendment to reference in original act which appears in text as reference to subchapter III
Source evidence
Code amendment note
Par. (9). Pub. L. 109–351, § 726(7), made technical amendment to reference in original act which appears in text as reference to subchapter III.
Enacted provision · exact public law section
(7) In section 107(9), strike “subchapter III” and insert “title III”.
2006
Pub. L. 109–351 § 503 · 120 Stat. 1966
Amended · 12 U.S.C. § 1757(12)
Pub. L. 109–351, § 503, amended par. (12) generally. Prior to amendment, par. (12) read as follows: “in accordance with rules and regulations prescribed by the Board, to sell to members negotiable checks (including travelers checks), money orders, and other similar money transfer instruments, and to cash checks and money orders for members, for a fee;”
Source evidence
Code amendment note
Par. (12). Pub. L. 109–351, § 503, amended par. (12) generally. Prior to amendment, par. (12) read as follows: “in accordance with rules and regulations prescribed by the Board, to sell to members negotiable checks (including travelers checks), money orders, and other similar money transfer instruments, and to cash checks and money orders for members, for a fee;”.
Enacted provision · exact public law section
SEC. 503. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED WITHIN THE FIELD OF MEMBERSHIP. Section 107(12) of the Federal Credit Union Act (12 U.S.C. 1757(12)) is amended to read as follows: “(12) Regulations. in accordance with regulations prescribed by the Board— “(A) to sell, to persons in the field of membership, negotiable checks (including travelers checks), money orders, and other similar money transfer instruments (including international and domestic electronic fund transfers); and “(B) to cash checks and money orders and receive international and domestic electronic fund transfers for persons in the field of membership for a fee;” .
2006
Pub. L. 109–351 § 726(8) · 120 Stat. 1966
Struck · 12 U.S.C. § 1757(13)
Pub. L. 109–351, § 726(8), struck out “and” after semicolon at end
Source evidence
Code amendment note
Par. (13). Pub. L. 109–351, § 726(8), struck out “and” after semicolon at end.
Enacted provision · exact public law section
(8) In section 107(13), strike “and” after the semicolon at the end.
2010
Enhancing Financial Institution Safety and Soundness Act of 2010
Pub. L. 111–203 § 362(1) · 124 Stat. 1376
Struck · 12 U.S.C. § 1757(8)
Pub. L. 111–203, § 362(1), struck out “or the Federal Savings and Loan Insurance Corporation” after “Federal Deposit Insurance Corporation”
Source evidence
Code amendment note
Par. (8). Pub. L. 111–203, § 362(1), struck out “or the Federal Savings and Loan Insurance Corporation” after “Federal Deposit Insurance Corporation”.
Enacted provision · exact public law section
(1) in section 107(8) (12 U.S.C. 1757(8)), by striking “or the Federal Savings and Loan Insurance Corporation”;
Effective date note
Amendment by section 362(1) of Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. Amendment by section 1073(d) of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.
2010
Consumer Financial Protection Act of 2010
Pub. L. 111–203 § 1073(d) · 124 Stat. 1376
Amended · 12 U.S.C. § 1757(12)
Pub. L. 111–203, § 1073(d), amended par. (12) generally. Prior to amendment, par. (12) read as follows: “in accordance with regulations prescribed by the Board—
Source evidence
Code amendment note
Par. (12). Pub. L. 111–203, § 1073(d), amended par. (12) generally. Prior to amendment, par. (12) read as follows: “in accordance with regulations prescribed by the Board—
“(A) to sell, to persons in the field of membership, negotiable checks (including travelers checks), money orders, and other similar money transfer instruments (including international and domestic electronic fund transfers); and “(B) to cash checks and money orders and receive international and domestic electronic fund transfers for persons in the field of membership for a fee;”.
Enacted provision · exact public law section
(d) Federal Credit Union Act Conforming Amendment.— Paragraph (12) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is amended to read as follows: “(12) in accordance with regulations prescribed by the Board— “(A) to sell, to persons in the field of membership, negotiable checks (including travelers checks), money orders, and other similar money transfer instruments (including international and domestic electronic fund transfers and remittance transfers, as defined in section 919 of the Electronic Fund Transfer Act); and “(B) to cash checks and money orders for persons in the field of membership for a fee;” .
Effective date note
Amendment by section 362(1) of Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. Amendment by section 1073(d) of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.

72 of 94 references resolved to an enrolled provision · 18 partial · 4 unresolved

Editorial Notes

References in Text

Section 77d(5) of title 15, referred to in par. (15)(A), was redesignated section 77d(a)(5) of Title 15, Commerce and Trade, by Pub. L. 112–106, title II, § 201(b)(1), (c)(1), Apr. 5, 2012, 126 Stat. 314.

Codification

In par. (7), “section 9101(3) of title 31” substituted for “section 101 of the Government Corporation Control Act [31 U.S.C. 846]” on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

Amendments1937–2010 · 25 rounds

2010

Par. (8). Pub. L. 111–203, § 362(1), struck out “or the Federal Savings and Loan Insurance Corporation” after “Federal Deposit Insurance Corporation”.

Par. (12). Pub. L. 111–203, § 1073(d), amended par. (12) generally. Prior to amendment, par. (12) read as follows: “in accordance with regulations prescribed by the Board—

“(A) to sell, to persons in the field of membership, negotiable checks (including travelers checks), money orders, and other similar money transfer instruments (including international and domestic electronic fund transfers); and

“(B) to cash checks and money orders and receive international and domestic electronic fund transfers for persons in the field of membership for a fee;”.

2006

Par. (5). Pub. L. 109–351, § 502, substituted “to make loans, the maturities of which shall not exceed 15 years,” for “to make loans, the maturities of which shall not exceed twelve years” in introductory provisions.

Par. (5)(E). Pub. L. 109–351, § 726(3), substituted semicolon for period at end.

Par. (6). Pub. L. 109–351, § 726(4), substituted semicolon for period at end.

Par. (7). Pub. L. 109–351, § 726(4), substituted semicolon for period at end.

Par. (7)(D). Pub. L. 109–351, § 726(5), struck out “the Federal Savings and Loan Insurance Corporation or” before “the Federal Deposit Insurance Corporation”.

Par. (7)(E). Pub. L. 109–351, § 726(6), substituted “the Federal Housing Finance Board,” for “the Federal Home Loan Bank Board,”.

Par. (9). Pub. L. 109–351, § 726(7), made technical amendment to reference in original act which appears in text as reference to subchapter III.

Par. (12). Pub. L. 109–351, § 503, amended par. (12) generally. Prior to amendment, par. (12) read as follows: “in accordance with rules and regulations prescribed by the Board, to sell to members negotiable checks (including travelers checks), money orders, and other similar money transfer instruments, and to cash checks and money orders for members, for a fee;”.

Par. (13). Pub. L. 109–351, § 726(8), struck out “and” after semicolon at end.

1996

Par. (5)(A)(iv), (v). Pub. L. 104–208 substituted “$20,000” for “$10,000”.

1994

Par. (15)(C). Pub. L. 103–325 added subpar. (C).

1989

Pars. (16), (17). Pub. L. 101–179 added par. (16) and redesignated former par. (16) as (17).

1987

Par. (5)(A)(ii). Pub. L. 100–86, § 702, substituted “15 years or any longer term which the Board may allow” for “fifteen years unless such loan is insured or guaranteed as provided in subparagraph (iii)”.

Par. (6). Pub. L. 100–86, § 703, inserted “, representing equity,” after “payments”.

1984

Par. (5)(A)(ii). Pub. L. 98–479 inserted “a loan for the repair, alteration, or improvement of a residential dwelling which is the residence of a credit union member,”.

Pars. (15), (16). Pub. L. 98–440, § 105(b), added par. (15) and redesignated former par. (15) as (16).

1983

Par. (5)(A)(i). Pub. L. 97–457, § 25, substituted “Administration” for “Association” after “National Credit Union”.

Par. (7)(K). Pub. L. 97–457, § 26, redesignated cl. (L) as (K) and substituted a period for “; and” at end.

1982

Par. (5)(A)(i). Pub. L. 97–320, §§ 507–509, substituted “on” for “which is made to finance the acquisition of” after “real estate loan” and “that is or will be” for “for” after “cooperative unit,”, struck out “the sales price of which is not more than 150 per centum of the median sales price of residential real property situated in the geographical area (as determined by the board of directors) in which the property is located,” after “credit union member”, and inserted “or such other limits as shall be set by the National Credit Union Association Board” after “not exceeding thirty years”.

Par. (5)(A)(ii). Pub. L. 97–320, § 510, substituted “or a second mortgage loan secured by a residential dwelling” for “or for the repair, alteration, or improvement of a residential dwelling”.

Par. (5)(A)(iii). Pub. L. 97–320, § 511, inserted “, or with advance commitment to purchase the loan by,” and substituted “insurance, guarantee, or commitment” for “insurance or guarantee”.

Par. (5)(A)(iv), (v). Pub. L. 97–320, § 512, substituted “$10,000” for “$5,000”.

Par. (5)(A)(viii). Pub. L. 97–320, § 513, inserted condition relating to partial prepayments of first or second mortgage loans.

Par. (5)(A)(x). Pub. L. 97–320, § 506, added cl. (x).

Par. (7)(E). Pub. L. 97–320, § 516, inserted provisions relating to instruments issued or guaranteed by any other agency of the United States, and that a Federal Credit Union may issue and sell securities which are guaranteed pursuant to section 1721(g) of this title.

Par. (7)(L). Pub. L. 97–320, § 514, added cl. (L).

Par. (8). Pub. L. 97–320, § 517, inserted “or in banks or institutions the accounts of which are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation,” after “in which the Federal Credit Union does business,”.

Par. (12). Pub. L. 97–320, § 518, substituted “, money orders, and other similar money transfer instruments” for “and money orders”, and struck out “which does not exceed the direct and indirect costs incident to providing such service” after “for a fee”.

1980

Par. (5)(A)(i). Pub. L. 96–221, § 309(a)(1), inserted provisions relating to an individual cooperative unit.

Par. (5)(A)(vi). Pub. L. 96–221, § 310, substituted provisions setting forth maximum interest rate of 15 per centum per annum, subject to specified exceptions, for provisions setting forth a maximum interest rate of 1 per centum per month.

Par. (6). Pub. L. 96–221, §§ 305(b), 307, revised existing provisions respecting credit unions serving predominately low-income members including provisions added by Pub. L. 96–161, and repealed the amendment made by Pub. L. 96–161. See Repeals and Effective Date of 1980 Amendment notes below.

1979

Par. (6). Pub. L. 96–161 inserted “, and to issue, deal in, and accept share drafts as orders of withdrawal against shares, subject to such terms, rates, and conditions as may be prescribed by the Board” after “within limitations prescribed by the Board”.

Pub. L. 96–153 substituted “Federal, Indian tribal, State” for “Federal, State”.

1978

Par. (5). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing.

Par. (6). Pub. L. 95–630, §§ 502(b), 1803(a), inserted “from the Central Liquidity Facility,” after “in the manner so prescribed,” and substituted “Board” for “Administrator” in two places.

Par. (7). Pub. L. 95–630, §§ 502(b), 1803(b), substituted “Board” for “Administrator” wherever appearing and added cl. (J).

Par. (8). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator”.

Par. (9). Pub. L. 95–630, §§ 502(b), 1803(c), substituted “Board” for “Administrator” and inserted “, except as authorized by the Board in carrying out the provisions of subchapter III,” after “amount not exceeding”.

Pars. (12) to (14). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing.

1977

Par. (5). Pub. L. 95–22, § 302(a), among other changes, inserted provisions permitting Federal credit unions to establish lines of credit for their members, to raise the maximum loan maturity for most loans to twelve years, and to make loans secured by a first lien and made for the purchase of a one-to-four-family dwelling for the principal residence of a credit union member.

Par. (6). Pub. L. 95–22, §§ 302(b), 303(a), redesignated par. (7) as (6) and substituted reference to payments on shares which may be issued at varying dividend rates and payments on share certificates which may be issued at varying dividend rates and maturities, subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Administrator for reference to payments on shares, share certificates, or share deposits. Former par. (6), relating to the power of Federal credit unions to make loans to its own directors and to its own supervisory credit committee, was struck out.

Par. (7). Pub. L. 95–22, § 303(b), redesignated par. (8) as (7) and added subpar. (I). Former par. (7) redesignated (6).

Pars. (8) to (12). Pub. L. 95–22, § 303(c), redesignated pars. (9) to (13) as (8) to (12), respectively. Former par. (8) redesignated (7).

Par. (13). Pub. L. 95–22, § 303(c), (d), redesignated par. (14) as (13) and inserted reference to purchase, sell, pledge, or discount or otherwise receive or dispose of, in whole or in part, any eligible obligations (as defined by the Administrator) of its members. Former par. (13) redesignated (12).

Par. (14). Pub. L. 95–22, § 303(e), added par. (14).

1974

Par. (5). Pub. L. 93–569 inserted “except that loans made in accordance with section 1703(b) of this title and section 1819 of title 38, may be for the maturities specified therein,” after “ten years”.

Par. (6). Pub. L. 93–383, § 721(a), substituted provisions relating to approval of loans by the board of directors for provisions requiring annual reports to the Administrator with respect to loans and setting forth conditions for the making of loans.

Par. (7). Pub. L. 93–495 inserted provisions relating to receipt of payments of shares, etc., from officers, employees, or agents of nonmember units of Federal, State, or local governments and political subdivisions enumerated in section 1787 of this title.

Par. (8)(E). Pub. L. 93–383, § 805(c)(5), inserted reference to mortgages, obligations, or other securities sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of this title.

Par. (9). Pub. L. 93–383, § 721(b), inserted provisions relating to Federal credit unions or credit unions authorized by the Department of Defense.

1972

Par. (8)(E). Pub. L. 92–318 authorized investments in obligations or other instruments or securities of the Student Loan Marketing Association.

1970

Pars. (5), (6), (8), (10), (13), (14), Pub. L. 91–206 substituted “Administrator” for “Director” wherever appearing.

Par. (7). Pub. L. 91–468, § 10(1), permitted a Federal credit union to not only receive from members but also from other federally insured credit unions, payments on shares as well as share certificates or share deposits and, in the case of credit unions serving predominantly low-income members, to receive payments on shares, share certificates or share deposits from nonmembers.

Par. (8). Pub. L. 91–468, § 10(2), authorized a Federal credit union to invest in shares, share certificates or share deposits of federally insured credit unions.

1968

Par. (5). Pub. L. 90–375, § 1(1), substituted provisions authorizing Federal credit unions to make unsecured loans with maturities not exceeding five years, and secured loans with maturities not exceeding ten years for provisions authorizing federal credit unions to make loans with maturities not exceeding five years.

Par. (8). Pub. L. 90–448 authorized investments in obligations, participations, or other instruments of or issued by, or guaranteed as to principal and interest by, the Government National Mortgage Association.

Pub. L. 90–375, § 1(2), added cl. (G).

Pars. (14), (15). Pub. L. 90–375, § 1(3), added par. (14) and redesignated former par. (14) as (15).

1967

Par. (5). Pub. L. 90–44, § 2(1), substituted “may be made except as authorized under paragraph (6) of this section” for “shall exceed the amount of his holdings in the Federal Credit Union as represented by shares thereof plus the total unencumbered and unpledged shareholdings in the Federal Credit Union of any member pledged as security for the obligation of such director or committee member”.

Pars. (6), (7). Pub. L. 90–44, § 2(3), added par. (6) and redesignated former pars. (6) and (7) as (7) and (8), respectively.

Pars. (8) to (14). Pub. L. 90–44, §§ 2(2), (3), redesignated former par. (7) as (8), authorized in cl. (D) investment of funds in shares or accounts of mutual savings banks, the accounts of which are insured by the Federal Deposit Insurance Corporation, and redesignated former pars. (8) to (13) as (9) to (14), respectively.

1966

Par. (7). Pub. L. 89–429 expanded list of possible areas of investment of funds by Federal credit unions to include obligations, participations, or other instruments of or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association and participation certificates evidencing beneficial interests in obligations, or in the right to receive interest and principal collections therefrom, which obligations have been subjected by one or more Government agencies to a trust or trusts for which any executive department, agency, or instrumentality of the United States (or the head thereof) has been named to act as trustee.

1964

Par. (7)(E). Pub. L. 88–353 added cl. (E).

1959

Pub. L. 86–354 made numerous capitalization, punctuation and phraseological changes throughout text; increased maturities limits for loans from three to five years, authorized approval of loans by a loan officer and authorized loans in an amount which shall include total unencumbered and unpledged shareholdings in the Federal credit union of any member pledged as security for the obligation of the director or committee member, provided for payment and amortization of loans, redesignated provisions (a) to (d) as (A) to (D) in par. (7), substituted “levy late charges” for “fine members” and inserted “of members” in par. (10), substituted “charges” for “fines” in par. (11), added par. (12); and redesignated former par. (12) as par. (13).

1952

Par. (7)(d). Act May 13, 1952, authorized investment of funds in shares or accounts of any other institutions whose accounts are insured by the Federal Savings and Loan Insurance Corporation.

1949

Par. (5). Act Oct. 25, 1949, increased from 2 years to 3 years the limit for maturity of loans.

1946

Par. (5). Act July 31, 1946, inserted last two sentences to provide for the forfeiture of the entire amount of interest reserved and for the recovery of the entire amount of interest paid for the violation of the interest limitation.

1937

Par. (7)(c), (d). Act Dec. 6, 1937, added cls. (c) and (d).

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Amendment by section 362(1) of Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress.

Amendment by section 1073(d) of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.

Effective Date of 1980 Amendment

Amendment by section 305(b) of Pub. L. 96–221 effective at close of Mar. 31, 1980, see section 306 of Pub. L. 96–221, set out as a note under section 1464 of this title.

Effective and Termination Dates of 1979 Amendments

Amendment by Pub. L. 96–161 effective Dec. 31, 1979, with that amendment to remain in effect until the close of Mar. 31, 1980, see section 104 of Pub. L. 96–161, formerly set out as a note under section 371a of this title.

Pub. L. 96–153, title III, § 323(e), Dec. 21, 1979, 93 Stat. 1120, provided that: “The amendments made by subsections (a) through (d) [amending this section and sections 1728, 1787, and 1821 of this title] are not applicable to any claim arising out of the closing of a bank, savings and loan association, or credit union prior to the date of enactment of this Act [Dec. 21, 1979], but shall be applicable to any such claim arising on or after such date.”

Effective Date of 1978 Amendment

Amendment by section 502(b) of Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.

Amendment by section 1803 of Pub. L. 95–630 effective Oct. 1, 1979, see section 1806 of Pub. L. 95–630, set out as an Effective Date note under section 1795 of this title.

Effective Date of 1974 Amendments

Amendment by Pub. L. 93–569 effective Dec. 31, 1974, see section 10 of Pub. L. 93–569, set out as a note under section 3702 of Title 38, Veterans’ Benefits.

Amendment by Pub. L. 93–495 effective on 30th day beginning after Oct. 28, 1974, see section 101(g) of Pub. L. 93–495, set out as a note under section 1813 of this title.

Effective Date of 1968 Amendment

For effective date of amendment by title VIII of Pub. L. 90–448, see section 808 of Pub. L. 90–448, set out as a note under section 1716b of this title.

Repeals

Amendment by section 103 of Pub. L. 96–161, cited as a credit to this section, was repealed at the close of Mar. 31, 1980, by section 307 of Pub. L. 96–221, and substantially identical provisions were enacted by section 305 of Pub. L. 96–221, such amendments to take effect at the close of Mar. 31, 1980.

Credits

1934–2010 · 34 acts

1934June 26, 1934, ch. 750, title I, § 107, formerly § 7, 48 Stat. 1218
1937Dec. 6, 1937, ch. 3, § 2, 51 Stat. 4
1946July 31, 1946, ch. 711, § 1, 60 Stat. 744
19471947 Reorg. Plan No. 1, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952
1948June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091
1949Oct. 25, 1949, ch. 713, § 1, 63 Stat. 890
1952May 13, 1952, ch. 264, 66 Stat. 70
1959renumbered § 8 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 630
1964Pub. L. 88–353, § 1, July 2, 1964, 78 Stat. 269
1966Pub. L. 89–429, § 7, May 24, 1966, 80 Stat. 167
1967Pub. L. 90–44, §§ 2, 3, July 3, 1967, 81 Stat. 110, 111
1968Pub. L. 90–375, § 1(1)–(3), July 5, 1968, 82 Stat. 284
1968Pub. L. 90–448, title VIII, § 807(n), Aug. 1, 1968, 82 Stat. 545
1970Pub. L. 91–206, § 2(1), Mar. 10, 1970, 84 Stat. 49
1970renumbered title I, § 107, and amended Pub. L. 91–468, §§ 1(2), 10, Oct. 19, 1970, 84 Stat. 994, 1017
1972Pub. L. 92–318, title I, § 133(c)(4), June 23, 1972, 86 Stat. 270
1974Pub. L. 93–383, title VII, § 721, title VIII, § 805(c)(5), Aug. 22, 1974, 88 Stat. 719, 727
1974Pub. L. 93–495, title I, § 101(d), Oct. 28, 1974, 88 Stat. 1502
1974Pub. L. 93–569, § 6, Dec. 31, 1974, 88 Stat. 1866
1977Pub. L. 95–22, title III, §§ 302, 303, Apr. 19, 1977, 91 Stat. 49, 51
1978Pub. L. 95–630, title V, § 502(b), title XVIII, § 1803, Nov. 10, 1978, 92 Stat. 3681, 3723
1979Pub. L. 96–153, title III, § 323(d), Dec. 21, 1979, 93 Stat. 1120
1979Pub. L. 96–161, title I, § 103(b), Dec. 28, 1979, 93 Stat. 1234
1980Pub. L. 96–221, title III, §§ 305(b), 307, 309(a)(1), 310, Mar. 31, 1980, 94 Stat. 146–149
1982Pub. L. 97–320, title V, §§ 506–514, 516–518, Oct. 15, 1982, 96 Stat. 1528–1530
1983Pub. L. 97–457, §§ 25, 26, Jan. 12, 1983, 96 Stat. 2510
1984Pub. L. 98–440, title I, § 105(b), Oct. 3, 1984, 98 Stat. 1691
1984Pub. L. 98–479, title II, § 206, Oct. 17, 1984, 98 Stat. 2234
1987Pub. L. 100–86, title VII, §§ 702, 703, Aug. 10, 1987, 101 Stat. 652
1989Pub. L. 101–179, title II, § 206(b), Nov. 28, 1989, 103 Stat. 1311
1994Pub. L. 103–325, title II, § 206(b), Sept. 23, 1994, 108 Stat. 2199
1996Pub. L. 104–208, div. A, title II, § 2306, Sept. 30, 1996, 110 Stat. 3009–426
2006Pub. L. 109–351, title V, §§ 502, 503, title VII, § 726(3)–(8), Oct. 13, 2006, 120 Stat. 1975, 2002
2010Pub. L. 111–203, title III, § 362(1), title X, § 1073(d), July 21, 2010, 124 Stat. 1549, 2066.

Show as published

(June 26, 1934, ch. 750, title I, § 107, formerly § 7, 48 Stat. 1218; Dec. 6, 1937, ch. 3, § 2, 51 Stat. 4; July 31, 1946, ch. 711, § 1, 60 Stat. 744; 1947 Reorg. Plan No. 1, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091; Oct. 25, 1949, ch. 713, § 1, 63 Stat. 890; May 13, 1952, ch. 264, 66 Stat. 70; renumbered § 8 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 630; Pub. L. 88–353, § 1, July 2, 1964, 78 Stat. 269; Pub. L. 89–429, § 7, May 24, 1966, 80 Stat. 167; Pub. L. 90–44, §§ 2, 3, July 3, 1967, 81 Stat. 110, 111; Pub. L. 90–375, § 1(1)–(3), July 5, 1968, 82 Stat. 284; Pub. L. 90–448, title VIII, § 807(n), Aug. 1, 1968, 82 Stat. 545; Pub. L. 91–206, § 2(1), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 107, and amended Pub. L. 91–468, §§ 1(2), 10, Oct. 19, 1970, 84 Stat. 994, 1017; Pub. L. 92–318, title I, § 133(c)(4), June 23, 1972, 86 Stat. 270; Pub. L. 93–383, title VII, § 721, title VIII, § 805(c)(5), Aug. 22, 1974, 88 Stat. 719, 727; Pub. L. 93–495, title I, § 101(d), Oct. 28, 1974, 88 Stat. 1502; Pub. L. 93–569, § 6, Dec. 31, 1974, 88 Stat. 1866; Pub. L. 95–22, title III, §§ 302, 303, Apr. 19, 1977, 91 Stat. 49, 51; Pub. L. 95–630, title V, § 502(b), title XVIII, § 1803, Nov. 10, 1978, 92 Stat. 3681, 3723; Pub. L. 96–153, title III, § 323(d), Dec. 21, 1979, 93 Stat. 1120; Pub. L. 96–161, title I, § 103(b), Dec. 28, 1979, 93 Stat. 1234; Pub. L. 96–221, title III, §§ 305(b), 307, 309(a)(1), 310, Mar. 31, 1980, 94 Stat. 146–149; Pub. L. 97–320, title V, §§ 506–514, 516–518, Oct. 15, 1982, 96 Stat. 1528–1530; Pub. L. 97–457, §§ 25, 26, Jan. 12, 1983, 96 Stat. 2510; Pub. L. 98–440, title I, § 105(b), Oct. 3, 1984, 98 Stat. 1691; Pub. L. 98–479, title II, § 206, Oct. 17, 1984, 98 Stat. 2234; Pub. L. 100–86, title VII, §§ 702, 703, Aug. 10, 1987, 101 Stat. 652; Pub. L. 101–179, title II, § 206(b), Nov. 28, 1989, 103 Stat. 1311; Pub. L. 103–325, title II, § 206(b), Sept. 23, 1994, 108 Stat. 2199; Pub. L. 104–208, div. A, title II, § 2306, Sept. 30, 1996, 110 Stat. 3009–426; Pub. L. 109–351, title V, §§ 502, 503, title VII, § 726(3)–(8), Oct. 13, 2006, 120 Stat. 1975, 2002; Pub. L. 111–203, title III, § 362(1), title X, § 1073(d), July 21, 2010, 124 Stat. 1549, 2066.)