§ 1781. Insurance of member accounts

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.

1. 1934

   Pub. L. 91–468 § 1(3) · 84 Stat. 994

   Enacted · 12 U.S.C. § 1781

   June 26, 1934, ch. 750, title II, § 201, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 994

   Source evidence

   Code source credit
   June 26, 1934, ch. 750, title II, § 201, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 994

   Enacted provision · exact public law section
   (1) by inserting immediately above the heading of section 2 the following: “TITLE I— FEDERAL CREDIT UNIONS”;

2. 1971

   Pub. L. 92–221 § 1(a) · 85 Stat. 796

   Substituted · 12 U.S.C. § 1781(c)(2)

   Pub. L. 92–221, § 1(a), substituted “disapproved” for “reject”

   Source evidence

   Code amendment note
   Subsec. (c)(2). Pub. L. 92–221, § 1(a), substituted “disapproved” for “reject”.

   Enacted provision · exact public law section
   (a) Paragraph (2) of subsection (c) of section 201 of the Federal Credit Union Act (12 U.S.C. 1781(c)(2)) is amended by striking out “reject” and inserting in lieu thereof “disapprove”.

3. 1971

   Pub. L. 92–221 § 2 · 85 Stat. 796

   Added · 12 U.S.C. § 1781(c)(3)

   Pub. L. 92–221, § 2, added par. (3)

   Source evidence

   Code amendment note
   Subsec. (c)(3). Pub. L. 92–221, § 2, added par. (3).

   Enacted provision · exact public law section
   Sec. 2. Subsection (c) of section 201 of the Federal Credit Union State credit unions. Act (12 U.S.C. 1781(c)) is amended by adding at the end thereof the following new paragraph: “(3) With respect to State credit unions which are authorized by State law to receive demand deposits, the Administrator shall approve the application of any such State credit union for insurance of its member accounts if (A) such State credit union otherwise meets the requirements for insurance established under this Act, and (B) in the event of liquidation of such State credit union, the claims with respect to demand deposit accounts shall be subordinate to the claims with respect to member accounts. For purposes of this paragraph and for purposes of determining the extent of insurance coverage under this Act, demand deposit accounts shall not be considered member accounts and shall not be insured under the provisions of this Act.”

4. 1971

   Pub. L. 92–221 § 1(b) · 85 Stat. 796

   Substituted · 12 U.S.C. § 1781(d)

   Pub. L. 92–221, § 1(b), substituted provisions allowing, in certain cases, a two–year period to meet the requirements for insurance following the disapproval of an application for insurance by a Federal credit union, for provisions mandating the suspension or revocation of the charter of a Federal credit union unless the credit union met the requirements for insurance and became an insured credit union within one year of the rejection of its application for insurance

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 92–221, § 1(b), substituted provisions allowing, in certain cases, a two–year period to meet the requirements for insurance following the disapproval of an application for insurance by a Federal credit union, for provisions mandating the suspension or revocation of the charter of a Federal credit union unless the credit union met the requirements for insurance and became an insured credit union within one year of the rejection of its application for insurance.

   Enacted provision · exact public law section
   (b) Subsection (d) of such section 201 (12 U.S.C. 1781(d)) is amended to read as follows: “(d) In the case of any Federal credit union whose application for insurance is disapproved, if such Federal credit union has annually transferred such a percentage of its gross income to its reserves as is 84 Stat. 1017. 12 USC 1762. required under section 116(a) and notwithstanding any reserving requirements established under section 116(b) of this Act, the Administrator shall nonetheless issue to such Federal credit union a certificate of insurance which shall be valid for a period of two years. The Administrator shall suspend or revoke the charter of any Federal credit union which has failed, upon the expiration of such two-year period of insurance, to file an application for insurance which is approved by the Administrator in accordance with subsection (c). A Federal credit union which is insured under this subsection for a period of two years is an insured credit union under the provisions of this title for such period of two years. The Administrator shall, having regard to the purposes of this subsection, make every reasonable effort to prevent the closing of any Federal credit union which is insured for a period of two years under this subsection and is found to be in financial difficulties, if he determines that with the technical assistance and management training and counseling authorized to be provided under this subsection there is reasonable assurance that such difficulties can be sufficiently resolved within such two-year period so as to minimize the expenses of the Fund. The Administrator shall offer technical assistance, management training, and management counseling to all credit unions whose application for insurance has been disapproved so as to enable the maximum number of such credit unions to meet the standards for insurance required by this title. In furnishing such technical assistance, management training, and management counseling, the Administrator may utilize moneys in the National Credit Union Share Insurance Fund as provided under section 203(a) of this title. 84 Stat. 999. 12 USC 1783. The Administrator shall also encourage to the maximum extent feasible, that such technical assistance, management training, and management counseling be made available through State stabilization funds, similar funds, or similar State credit union organizations. The Administrator shall also encourage State Credit Union Stabilization Funds or similar funds to reimburse the Credit Union Share Insurance Fund for any insurance payments made on behalf of accounts at insured credit unions whose applications for insurance have been disapproved.”

5. 1977

   Pub. L. 95–22 title III § 301 · 91 Stat. 49

   Struck · 12 U.S.C. § 1781(c)(3)

   Pub. L. 95–22 struck out par. (3) which provided for approval by Administrator of applications of State credit unions for insurance of its member accounts where credit union meets requirements of this chapter and where in the event of liquidation of the credit union, the claims with respect to demand deposit accounts shall be subordinate to the claims with respect to member accounts

   Source evidence

   Code amendment note
   Subsec. (c)(3). Pub. L. 95–22 struck out par. (3) which provided for approval by Administrator of applications of State credit unions for insurance of its member accounts where credit union meets requirements of this chapter and where in the event of liquidation of the credit union, the claims with respect to demand deposit accounts shall be subordinate to the claims with respect to member accounts.

   Enacted provision · exact public law section
   Sec. 301. Section 201 of the Federal Credit Union Act (12 U.S.C. Repeal. 1781) is amended by repealing subsection (c) (3) thereof.

6. 1978

   Financial Institutions Regulatory and Interest Rate Control Act of 1978

   Pub. L. 95–630 title V · 92 Stat. 3641

   1. Substituted · 12 U.S.C. § 1781(a)

      Pub. L. 95–630, §§ 502(b), 504(a), substituted “Board” for “Administrator”

   2. Substituted · 12 U.S.C. § 1781(a)

      Pub. L. 95–630, §§ 502(b), 504(a), substituted “it” for “he”

   3. Inserted · 12 U.S.C. § 1781(a)

      Pub. L. 95–630, §§ 502(b), 504(a), inserted “, including the trust territories,” after “the several territories”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 95–630, §§ 502(b), 504(a), substituted “Board” for “Administrator” and “it” for “he”, and inserted “, including the trust territories,” after “the several territories”.

   Enacted provision · exact public law
   TITLE V— CREDIT UNION RESTRUCTURING Sec. 501. Section 102 of the Federal Credit Union Act (12 U.S.C. 1752a) is amended to read as follows: “Sec. 102. “creation of administration (a) There is hereby established in the executive branch of the Government an independent agency to be known as the National Credit Union Administration. The Administration shall be under the management of a National Credit Union Administration Board. “(b) The Board shall consist of three members, who are broadly representative of the public interest, appointed by the President, by and with the advice and consent of the Senate. In appointing the members of the Board, the President shall designate the Chairman. Not more than two members of the Board shall be members of the same political party. “(c) The term of office of each member of the Board shall be six years, except that the terms of the two members, other than the Chairman, initially appointed shall expire one upon the expiration of two years after the date of appointment, and the other upon the expiration of four years after the date of appointment. Board members shall not be appointed to succeed themselves except the initial members appointed for less than a six-year term may be reappointed for a full six-year term and future members appointed to fill unexpired terms may be reappointed for a full six-year term. Any Board member may continue to serve as such after the expiration of said member’s term until a successor has qualified. “(d) The management of the Administration shall be vested in the Board. The Board shall adopt such rules as it sees fit for the trans-action of its business and shall keep permanent and complete records Quorum. and minutes of its acts and proceedings. A majority of the Board shall constitute a quorum. Not later than April 1 of each calendar year, and Report to President and Congress. at such other times as the Congress snail determine, the Board shall make a report to the President and to the Congress. Such a report shall summarize the operations of the Administration and set forth such information as is necessary for the Congress to review the financial program approved by the Board. “(e) The Chairman of the Board shall be the spokesman for the Board and shall represent the Board and the National Credit Union Administration in its official relations with other branches of the Government. The Chairman shall determine each Board member’s area of responsibility and shall review such assignments biennially. It shall be the Chairman’s responsibility to direct the implementation of the adopted policies and regulations of the Board. “(f) The financial transactions of the Administration shall be subject Audit. Rules and regulations. to audit on a calendar year basis by the General Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where the accounts of the Administration are kept.”. Sec. 502. (a) Section 101 of the Federal Credit Union Act is 12 USC 1752. amended— (1) by striking out clause (2) and inserting in lieu thereof the following: “(2) the term ‘Chairman’ means the Chairman of the National Credit Union Administration Board; (2) by inserting “Administration” after “Union” in clause (4). (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. (c) Section 5108(a) of title 5, United States Code, is amended by changing the number “3,301” in the first sentence to read “3,310”. (d) Section 5314 of title 5, United States Code, is amended by adding the following new paragraph: “(66) Chairman, National Credit Union Administration Board.”. (e) Section 5315 (93) of title 5, United States Code, is amended by striking out “Administrator of the National Credit Union Administration” and inserting in lieu thereof “Members, National Credit Union Administration Board (2)”. Sec. 503. (a) Paragraph (4) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752) which begins with “The terms ‘member account’” is redesignated paragraph “(5)” and the succeeding paragraphs numbered (5) through (8) are redesignated as paragraphs (6) through (9), respectively. (b) Paragraph (5) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752), as redesignated by subsection (a) of this section, is amended— (1) by striking “(when referring to the account of a member of credit union)”; (2) by striking “share, share certificate, or share deposit” each time it appears therein and inserting “share or share certificate” in lieu thereof; (3) by striking “those” and inserting “share or share certificate” in lieu thereof; and (4) by striking all language after “political subdivisions thereof” and inserting “enumerated in section 207 of this Act: Provided, That for purposes of insured State credit unions, reference in this paragraph to ‘share’ or ‘share certificate’ accounts includes, as determined by the Board, the equivalent of such accounts under State law;” in lieu thereof. (c) Paragraph (9) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752), as redesignated by (a) of this section, is amended by— (1) inserting “, including the trust territories,” after “several territories”; and (2) adding the following new sentence: “The term ‘branch’ also includes a suboffice, operated by a Federal credit union or by a credit union authorized by the Department of Defense, located on an American military installation in a foreign country or in the trust territories of the United States.”. Sec. 504. (a) Subsection (a) of section 201 of the Federal Credit Union Act (12 U.S.C. 1781) is amended by inserting including the trust territories,” after “several territories’. (b) Paragraph (b)(7) of such section is amended by inserting “except for accounts authorized by State law for State credit unions” before the semicolon. (c) Such section is further amended by striking all of subsection (cl) and redesignating subsection (e) as (d). Sec. 505. (a) Section 202 of the Federal Credit Union Act (12 U.S.C. 1782) is amended by striking out “his” in the fifth sentence of paragraph (a)(1) and inserting “such officer’s” in lieu thereof. (b) Subsection (h)(3) of such section is amended to read as follows: “(3) The term ‘member account’ when applied to the premium charge for insurance of accounts shall not include amounts received from other federally insured credit unions in excess of the insured account limit set forth in section 207(c)(1).”. Sec. 506. Section 208 of the Federal Credit Union Act (12 U.S.C. 1788) is amended by striking out “special assistance to avoid liquidation” and inserting “special assistance for federally insured credit unions” in lieu thereof. Sec. 507. Section 105 of the Federal Credit Union Act (12 U.S.C. 1755) is amended to read as follows: “Sec. 105. “fees (a) In accordance with rules prescribed by the Board, each Federal credit union shall pay to the Administration an annual operating fee which may be composed of one or more charges identified as to the function or functions for which assessed. “(b) The fee assessed under this section shall be determined according to a schedule, or schedules, or other method determined by the Board to be appropriate, which gives due consideration to the expenses of the Administration in carrying out its responsibilities under this Act and to the ability of Federal credit unions to pay the fee. The Board shall, among other things, determine the periods for which the fee shall be assessed and the date or dates for the payment of the fee or increments thereof. “(c) If the annual operating fee is composed of separate charges, no supervision charge shall be payable by a Federal credit union, and the Board may waive payment of any or all other charges comprising the fee, with respect to the year in which its charter is issued, or in which final distribution is made in its liquidation or the charter is canceled. “(d) All operating fees shall be deposited with the Treasurer of the United States for the account of the Administration and may be expended by the Board to defray the expenses incurred in carrying out the provisions of this Act including the examination and supervision of Federal credit unions.”. Sec. 508. Section 106 of the Federal Credit Union Act (12 U.S.C. 1756) is amended to read as follows: “Sec. 106. “reports and examinations Federal credit unions shall be under the supervision of the Board, and shall make financial reports to it as and when it may require, but at least annually. Each Federal credit union shall be subject to examination by, and for this purpose shall make its books and records accessible to, any person designated by the Board.”. Sec. 509. The amendments made by this title take effect upon the Effective date. 12 USC 1752 note. effective date of this Act, except that the functions of the Administrator of the National Credit Union Administration under the provisions of the Federal Credit Union Act, as in effect on the date preceding the date of enactment of this title, shall continue to be performed by him in accordance with such provisions until such time as all the members of the National Credit Union Administration Board, established under the amendments made by this title, take office. All rules, regulations, policies, and procedures of the Administrator in effect on the date of enactment of this title shall remain in effect until amended, superseded, or repealed.

7. 1978

   Financial Institutions Regulatory and Interest Rate Control Act of 1978

   Pub. L. 95–630 title V · 92 Stat. 3641

   1. Substituted · 12 U.S.C. § 1781(b)

      Pub. L. 95–630, §§ 502(b), 504(b), substituted “Board” for “Administrator” wherever appearing

   2. Inserted · 12 U.S.C. § 1781(b)

      Pub. L. 95–630, §§ 502(b), 504(b), inserted in par. (7) “except for accounts authorized by State law for State credit unions” after “by the Board”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 95–630, §§ 502(b), 504(b), substituted “Board” for “Administrator” wherever appearing and inserted in par. (7) “except for accounts authorized by State law for State credit unions” after “by the Board”.

   Enacted provision · exact public law
   TITLE V— CREDIT UNION RESTRUCTURING Sec. 501. Section 102 of the Federal Credit Union Act (12 U.S.C. 1752a) is amended to read as follows: “Sec. 102. “creation of administration (a) There is hereby established in the executive branch of the Government an independent agency to be known as the National Credit Union Administration. The Administration shall be under the management of a National Credit Union Administration Board. “(b) The Board shall consist of three members, who are broadly representative of the public interest, appointed by the President, by and with the advice and consent of the Senate. In appointing the members of the Board, the President shall designate the Chairman. Not more than two members of the Board shall be members of the same political party. “(c) The term of office of each member of the Board shall be six years, except that the terms of the two members, other than the Chairman, initially appointed shall expire one upon the expiration of two years after the date of appointment, and the other upon the expiration of four years after the date of appointment. Board members shall not be appointed to succeed themselves except the initial members appointed for less than a six-year term may be reappointed for a full six-year term and future members appointed to fill unexpired terms may be reappointed for a full six-year term. Any Board member may continue to serve as such after the expiration of said member’s term until a successor has qualified. “(d) The management of the Administration shall be vested in the Board. The Board shall adopt such rules as it sees fit for the trans-action of its business and shall keep permanent and complete records Quorum. and minutes of its acts and proceedings. A majority of the Board shall constitute a quorum. Not later than April 1 of each calendar year, and Report to President and Congress. at such other times as the Congress snail determine, the Board shall make a report to the President and to the Congress. Such a report shall summarize the operations of the Administration and set forth such information as is necessary for the Congress to review the financial program approved by the Board. “(e) The Chairman of the Board shall be the spokesman for the Board and shall represent the Board and the National Credit Union Administration in its official relations with other branches of the Government. The Chairman shall determine each Board member’s area of responsibility and shall review such assignments biennially. It shall be the Chairman’s responsibility to direct the implementation of the adopted policies and regulations of the Board. “(f) The financial transactions of the Administration shall be subject Audit. Rules and regulations. to audit on a calendar year basis by the General Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where the accounts of the Administration are kept.”. Sec. 502. (a) Section 101 of the Federal Credit Union Act is 12 USC 1752. amended— (1) by striking out clause (2) and inserting in lieu thereof the following: “(2) the term ‘Chairman’ means the Chairman of the National Credit Union Administration Board; (2) by inserting “Administration” after “Union” in clause (4). (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. (c) Section 5108(a) of title 5, United States Code, is amended by changing the number “3,301” in the first sentence to read “3,310”. (d) Section 5314 of title 5, United States Code, is amended by adding the following new paragraph: “(66) Chairman, National Credit Union Administration Board.”. (e) Section 5315 (93) of title 5, United States Code, is amended by striking out “Administrator of the National Credit Union Administration” and inserting in lieu thereof “Members, National Credit Union Administration Board (2)”. Sec. 503. (a) Paragraph (4) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752) which begins with “The terms ‘member account’” is redesignated paragraph “(5)” and the succeeding paragraphs numbered (5) through (8) are redesignated as paragraphs (6) through (9), respectively. (b) Paragraph (5) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752), as redesignated by subsection (a) of this section, is amended— (1) by striking “(when referring to the account of a member of credit union)”; (2) by striking “share, share certificate, or share deposit” each time it appears therein and inserting “share or share certificate” in lieu thereof; (3) by striking “those” and inserting “share or share certificate” in lieu thereof; and (4) by striking all language after “political subdivisions thereof” and inserting “enumerated in section 207 of this Act: Provided, That for purposes of insured State credit unions, reference in this paragraph to ‘share’ or ‘share certificate’ accounts includes, as determined by the Board, the equivalent of such accounts under State law;” in lieu thereof. (c) Paragraph (9) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752), as redesignated by (a) of this section, is amended by— (1) inserting “, including the trust territories,” after “several territories”; and (2) adding the following new sentence: “The term ‘branch’ also includes a suboffice, operated by a Federal credit union or by a credit union authorized by the Department of Defense, located on an American military installation in a foreign country or in the trust territories of the United States.”. Sec. 504. (a) Subsection (a) of section 201 of the Federal Credit Union Act (12 U.S.C. 1781) is amended by inserting including the trust territories,” after “several territories’. (b) Paragraph (b)(7) of such section is amended by inserting “except for accounts authorized by State law for State credit unions” before the semicolon. (c) Such section is further amended by striking all of subsection (cl) and redesignating subsection (e) as (d). Sec. 505. (a) Section 202 of the Federal Credit Union Act (12 U.S.C. 1782) is amended by striking out “his” in the fifth sentence of paragraph (a)(1) and inserting “such officer’s” in lieu thereof. (b) Subsection (h)(3) of such section is amended to read as follows: “(3) The term ‘member account’ when applied to the premium charge for insurance of accounts shall not include amounts received from other federally insured credit unions in excess of the insured account limit set forth in section 207(c)(1).”. Sec. 506. Section 208 of the Federal Credit Union Act (12 U.S.C. 1788) is amended by striking out “special assistance to avoid liquidation” and inserting “special assistance for federally insured credit unions” in lieu thereof. Sec. 507. Section 105 of the Federal Credit Union Act (12 U.S.C. 1755) is amended to read as follows: “Sec. 105. “fees (a) In accordance with rules prescribed by the Board, each Federal credit union shall pay to the Administration an annual operating fee which may be composed of one or more charges identified as to the function or functions for which assessed. “(b) The fee assessed under this section shall be determined according to a schedule, or schedules, or other method determined by the Board to be appropriate, which gives due consideration to the expenses of the Administration in carrying out its responsibilities under this Act and to the ability of Federal credit unions to pay the fee. The Board shall, among other things, determine the periods for which the fee shall be assessed and the date or dates for the payment of the fee or increments thereof. “(c) If the annual operating fee is composed of separate charges, no supervision charge shall be payable by a Federal credit union, and the Board may waive payment of any or all other charges comprising the fee, with respect to the year in which its charter is issued, or in which final distribution is made in its liquidation or the charter is canceled. “(d) All operating fees shall be deposited with the Treasurer of the United States for the account of the Administration and may be expended by the Board to defray the expenses incurred in carrying out the provisions of this Act including the examination and supervision of Federal credit unions.”. Sec. 508. Section 106 of the Federal Credit Union Act (12 U.S.C. 1756) is amended to read as follows: “Sec. 106. “reports and examinations Federal credit unions shall be under the supervision of the Board, and shall make financial reports to it as and when it may require, but at least annually. Each Federal credit union shall be subject to examination by, and for this purpose shall make its books and records accessible to, any person designated by the Board.”. Sec. 509. The amendments made by this title take effect upon the Effective date. 12 USC 1752 note. effective date of this Act, except that the functions of the Administrator of the National Credit Union Administration under the provisions of the Federal Credit Union Act, as in effect on the date preceding the date of enactment of this title, shall continue to be performed by him in accordance with such provisions until such time as all the members of the National Credit Union Administration Board, established under the amendments made by this title, take office. All rules, regulations, policies, and procedures of the Administrator in effect on the date of enactment of this title shall remain in effect until amended, superseded, or repealed.

8. 1978

   Financial Institutions Regulatory and Interest Rate Control Act of 1978

   Pub. L. 95–630 § 502(b) · 92 Stat. 3641

   1. Substituted · 12 U.S.C. § 1781(c)

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

   2. Substituted · 12 U.S.C. § 1781(c)

      Pub. L. 95–630, § 502(b), substituted “it” for “he” before “finds”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing, and in par. (2) substituted “it” for “he” before “finds”.

   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.

9. 1978

   Financial Institutions Regulatory and Interest Rate Control Act of 1978

   Pub. L. 95–630 title V · 92 Stat. 3641

   1. Struck · 12 U.S.C. § 1781(d); 12 U.S.C. § 1781(e)

      Pub. L. 95–630, §§ 502(b), 504(c), struck out subsec. (d)

   2. Redesignated · 12 U.S.C. § 1781(d); 12 U.S.C. § 1781(e)

      Pub. L. 95–630, §§ 502(b), 504(c), redesignated subsec. (e) as (d)

   3. Substituted · 12 U.S.C. § 1781(d); 12 U.S.C. § 1781(e)

      Pub. L. 95–630, §§ 502(b), 504(c), substituted “Board” for “Administrator”

   Source evidence

   Code amendment note
   Subsecs. (d), (e). Pub. L. 95–630, §§ 502(b), 504(c), struck out subsec. (d), redesignated subsec. (e) as (d) and substituted “Board” for “Administrator”.

   Enacted provision · exact public law
   TITLE V— CREDIT UNION RESTRUCTURING Sec. 501. Section 102 of the Federal Credit Union Act (12 U.S.C. 1752a) is amended to read as follows: “Sec. 102. “creation of administration (a) There is hereby established in the executive branch of the Government an independent agency to be known as the National Credit Union Administration. The Administration shall be under the management of a National Credit Union Administration Board. “(b) The Board shall consist of three members, who are broadly representative of the public interest, appointed by the President, by and with the advice and consent of the Senate. In appointing the members of the Board, the President shall designate the Chairman. Not more than two members of the Board shall be members of the same political party. “(c) The term of office of each member of the Board shall be six years, except that the terms of the two members, other than the Chairman, initially appointed shall expire one upon the expiration of two years after the date of appointment, and the other upon the expiration of four years after the date of appointment. Board members shall not be appointed to succeed themselves except the initial members appointed for less than a six-year term may be reappointed for a full six-year term and future members appointed to fill unexpired terms may be reappointed for a full six-year term. Any Board member may continue to serve as such after the expiration of said member’s term until a successor has qualified. “(d) The management of the Administration shall be vested in the Board. The Board shall adopt such rules as it sees fit for the trans-action of its business and shall keep permanent and complete records Quorum. and minutes of its acts and proceedings. A majority of the Board shall constitute a quorum. Not later than April 1 of each calendar year, and Report to President and Congress. at such other times as the Congress snail determine, the Board shall make a report to the President and to the Congress. Such a report shall summarize the operations of the Administration and set forth such information as is necessary for the Congress to review the financial program approved by the Board. “(e) The Chairman of the Board shall be the spokesman for the Board and shall represent the Board and the National Credit Union Administration in its official relations with other branches of the Government. The Chairman shall determine each Board member’s area of responsibility and shall review such assignments biennially. It shall be the Chairman’s responsibility to direct the implementation of the adopted policies and regulations of the Board. “(f) The financial transactions of the Administration shall be subject Audit. Rules and regulations. to audit on a calendar year basis by the General Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where the accounts of the Administration are kept.”. Sec. 502. (a) Section 101 of the Federal Credit Union Act is 12 USC 1752. amended— (1) by striking out clause (2) and inserting in lieu thereof the following: “(2) the term ‘Chairman’ means the Chairman of the National Credit Union Administration Board; (2) by inserting “Administration” after “Union” in clause (4). (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. (c) Section 5108(a) of title 5, United States Code, is amended by changing the number “3,301” in the first sentence to read “3,310”. (d) Section 5314 of title 5, United States Code, is amended by adding the following new paragraph: “(66) Chairman, National Credit Union Administration Board.”. (e) Section 5315 (93) of title 5, United States Code, is amended by striking out “Administrator of the National Credit Union Administration” and inserting in lieu thereof “Members, National Credit Union Administration Board (2)”. Sec. 503. (a) Paragraph (4) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752) which begins with “The terms ‘member account’” is redesignated paragraph “(5)” and the succeeding paragraphs numbered (5) through (8) are redesignated as paragraphs (6) through (9), respectively. (b) Paragraph (5) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752), as redesignated by subsection (a) of this section, is amended— (1) by striking “(when referring to the account of a member of credit union)”; (2) by striking “share, share certificate, or share deposit” each time it appears therein and inserting “share or share certificate” in lieu thereof; (3) by striking “those” and inserting “share or share certificate” in lieu thereof; and (4) by striking all language after “political subdivisions thereof” and inserting “enumerated in section 207 of this Act: Provided, That for purposes of insured State credit unions, reference in this paragraph to ‘share’ or ‘share certificate’ accounts includes, as determined by the Board, the equivalent of such accounts under State law;” in lieu thereof. (c) Paragraph (9) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752), as redesignated by (a) of this section, is amended by— (1) inserting “, including the trust territories,” after “several territories”; and (2) adding the following new sentence: “The term ‘branch’ also includes a suboffice, operated by a Federal credit union or by a credit union authorized by the Department of Defense, located on an American military installation in a foreign country or in the trust territories of the United States.”. Sec. 504. (a) Subsection (a) of section 201 of the Federal Credit Union Act (12 U.S.C. 1781) is amended by inserting including the trust territories,” after “several territories’. (b) Paragraph (b)(7) of such section is amended by inserting “except for accounts authorized by State law for State credit unions” before the semicolon. (c) Such section is further amended by striking all of subsection (cl) and redesignating subsection (e) as (d). Sec. 505. (a) Section 202 of the Federal Credit Union Act (12 U.S.C. 1782) is amended by striking out “his” in the fifth sentence of paragraph (a)(1) and inserting “such officer’s” in lieu thereof. (b) Subsection (h)(3) of such section is amended to read as follows: “(3) The term ‘member account’ when applied to the premium charge for insurance of accounts shall not include amounts received from other federally insured credit unions in excess of the insured account limit set forth in section 207(c)(1).”. Sec. 506. Section 208 of the Federal Credit Union Act (12 U.S.C. 1788) is amended by striking out “special assistance to avoid liquidation” and inserting “special assistance for federally insured credit unions” in lieu thereof. Sec. 507. Section 105 of the Federal Credit Union Act (12 U.S.C. 1755) is amended to read as follows: “Sec. 105. “fees (a) In accordance with rules prescribed by the Board, each Federal credit union shall pay to the Administration an annual operating fee which may be composed of one or more charges identified as to the function or functions for which assessed. “(b) The fee assessed under this section shall be determined according to a schedule, or schedules, or other method determined by the Board to be appropriate, which gives due consideration to the expenses of the Administration in carrying out its responsibilities under this Act and to the ability of Federal credit unions to pay the fee. The Board shall, among other things, determine the periods for which the fee shall be assessed and the date or dates for the payment of the fee or increments thereof. “(c) If the annual operating fee is composed of separate charges, no supervision charge shall be payable by a Federal credit union, and the Board may waive payment of any or all other charges comprising the fee, with respect to the year in which its charter is issued, or in which final distribution is made in its liquidation or the charter is canceled. “(d) All operating fees shall be deposited with the Treasurer of the United States for the account of the Administration and may be expended by the Board to defray the expenses incurred in carrying out the provisions of this Act including the examination and supervision of Federal credit unions.”. Sec. 508. Section 106 of the Federal Credit Union Act (12 U.S.C. 1756) is amended to read as follows: “Sec. 106. “reports and examinations Federal credit unions shall be under the supervision of the Board, and shall make financial reports to it as and when it may require, but at least annually. Each Federal credit union shall be subject to examination by, and for this purpose shall make its books and records accessible to, any person designated by the Board.”. Sec. 509. The amendments made by this title take effect upon the Effective date. 12 USC 1752 note. effective date of this Act, except that the functions of the Administrator of the National Credit Union Administration under the provisions of the Federal Credit Union Act, as in effect on the date preceding the date of enactment of this title, shall continue to be performed by him in accordance with such provisions until such time as all the members of the National Credit Union Administration Board, established under the amendments made by this title, take office. All rules, regulations, policies, and procedures of the Administrator in effect on the date of enactment of this title shall remain in effect until amended, superseded, or repealed.

10. 1984

    Spending Reduction Act of 1984

    Pub. L. 98–369 div. B title VIII § 2801 · 98 Stat. 494

    Inserted · 12 U.S.C. § 1781(b)(8)

    Pub. L. 98–369 inserted provisions relating to payment and maintenance of the deposit

    Source evidence

    Code amendment note
    Subsec. (b)(8). Pub. L. 98–369 inserted provisions relating to payment and maintenance of the deposit.

    Enacted provision · exact public law section
    Sec. 2801. amendments Section 201(b)(8) of the Federal Credit Union Act (12 U.S.C. 1781(b)(8)) is amended to read as follows: “(8) to pay and maintain its deposit and to pay the premium charges for insurance imposed by this title; ana”.

11. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 div. A title II § 2615(a) · 110 Stat. 3009

    Added · 12 U.S.C. § 1781(e)

    Pub. L. 104–208 added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 104–208 added subsec. (e).

    Enacted provision · exact public law section
    (a) Credit Unions.— Section 201 of the Federal Credit Union Act (12 U.S.C. 1781) is amended by adding at the end the following new subsection: “(e) Prohibition on Certain Associations.— “(1) In general.— No insured credit union may be sponsored by or accept financial support, directly or indirectly, from any Government-sponsored enterprise, if the credit union includes the customers of the Government-sponsored enterprise in the field of membership of the credit union. “(2) Routine business financing.— Paragraph (1) shall not apply with respect to advances or other forms of financial assistance generally provided by a Government-sponsored enterprise in the ordinary course of business of the enterprise. “(3) Government-sponsored enterprise defined.— For purposes of this subsection, the term ‘Government-sponsored enterprise’ has the meaning given to such term in section 1404(e)(1)(A) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. “(4) Employee credit union.— No provision of this subsection shall be construed as prohibiting any employee of a Government-sponsored enterprise from becoming a member of a credit union whose field of membership is the employees of such enterprise.”.

    Effective date note
    Pub. L. 104–208, div. A, title II, § 2615(c), Sept. 30, 1996, 110 Stat. 3009–479, provided that: “The amendments made by this section [amending this section and section 1828 of this title] shall apply on and after January 1, 1996.”

12. 2006

    Pub. L. 109–351 title VII § 726(11) · 120 Stat. 1966

    Substituted · 12 U.S.C. § 1781(b)(5)

    Pub. L. 109–351 substituted “this chapter” for “section 1762 of this title”

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 109–351 substituted “this chapter” for “section 1762 of this title”.

    Enacted provision · exact public law section
    (11) In section 201(b)(5), 12 USC 1781. strike “section 116 of”.

10 of 18 references resolved to an enrolled provision · 8 partial