Title 12 — Banks and Banking
Chapter 14 — Federal Credit Unions
§ 1783. National Credit Union Share Insurance Fund
Statutory text
Creation; use of fund
There is hereby created in the Treasury of the United States a National Credit Union Share Insurance Fund which shall be used by the Board as a revolving fund for carrying out the purposes of this subchapter. Money in the fund shall be available upon requisition by the Board, without fiscal year limitation, for making payments of insurance under section 1787 of this title, for providing assistance and making expenditures under section 1788 of this title in connection with the liquidation or threatened liquidation of insured credit unions, and for such administrative and other expenses incurred in carrying out the purposes of this subchapter as it may determine to be proper.
Deposit of deposits and premium charges, fees and penalties
All deposits and premium charges for insurance paid pursuant to the provisions of section 1782 of this title and all fees for examinations and all penalties collected by the Board under any provision of this subchapter shall be deposited in the National Credit Union Share Insurance Fund. The Board shall report annually to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives with respect to the operating level of the fund. Such report shall also include the results of an independent audit of the fund.
Investment authorization
The Board may authorize the Secretary of the Treasury to invest and reinvest such portions of the fund as the Board may determine are not needed for current operations in any interest-bearing securities of the United States or in any securities guaranteed as to both principal and interest by the United States or in bonds or other obligations which are lawful investments for fiduciary, trust, and public funds of the United States, and the income therefrom shall constitute a part of the fund.
Loans to fund, limitation and terms; interest accrual; determination of interest rate
If, in the judgment of the Board, a loan to the insurance fund, or to the stabilization fund described in section 1790e of this title, is required at any time for purposes of this subchapter,1 the Secretary of the Treasury shall make the loan, but loans under this paragraph shall not exceed in the aggregate $6,000,000,000 outstanding at any one time. Except as otherwise provided in this subsection, section 1790e of this title, and in subsection (e) of this section, each loan under this paragraph shall be made on such terms as may be fixed by agreement between the Board and the Secretary of the Treasury.
Interest shall accrue to the Treasury on the amount of any outstanding loans made to the fund pursuant to paragraph (1) of this subsection on the basis of the average daily amount of such outstanding loans determined at the close of each fiscal year with respect to such year, and the Board shall pay the interest so accruing into the Treasury as miscellaneous receipts annually from the fund. The Secretary of the Treasury shall determine the applicable interest rate in advance by calculating the average yield to maturity (on the basis of daily closing market bid quotations during the month of September of the preceding fiscal year) on outstanding marketable public debt obligations of the United States having a maturity date of five or less years from the first day of such month of September and by adjusting such yield to the nearest one-eighth of 1 per centum.
For the purpose of making loans under paragraph (1) of this subsection, the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds of the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under chapter 31 of title 31 are hereby extended to include such loans. All loans and repayments under this section shall be treated as public debt transactions of the United States.
Temporary increases authorized.—
Recommendations for increase.—
During the period beginning on , and ending on , if, upon the written recommendation of the Board (upon a vote of not less than two-thirds of the members of the Board) and the Board of Governors of the Federal Reserve System (upon a vote of not less than two-thirds of the members of such Board), the Secretary of the Treasury (in consultation with the President) determines that additional amounts above the $6,000,000,000 amount specified in paragraph (1) are necessary, such amount shall be increased to the amount so determined to be necessary, not to exceed $30,000,000,000.
Report required.—
If the borrowing authority of the Board is increased above $6,000,000,000 pursuant to subparagraph (A), the Board shall promptly submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives describing the reasons and need for the additional borrowing authority and its intended uses.
Excess funds credited against loans
So long as any loans to the fund are outstanding, the Board shall from time to time, not less often than annually, determine whether the balance in the fund is in excess of the amount which, in its judgment, is needed to meet the requirements of the fund and shall pay such excess to the Secretary of the Treasury, to be credited against the loans to the fund.
Authorization for fund to borrow from Central Liquidity Facility
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 subchapter, the fund is authorized to borrow from the National Credit Union Administration Central Liquidity Facility.
Footnotes
- 1 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.
Pub. L. 91–468 § 1(3) · 84 Stat. 994
Enacted · 12 U.S.C. § 1783
June 26, 1934, ch. 750, title II, § 203, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 999
Source evidence
Code source credit
June 26, 1934, ch. 750, title II, § 203, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 999Enacted provision · exact public law section
(1) by inserting immediately above the heading of section 2 the following: “TITLE I— FEDERAL CREDIT UNIONS”;Fiscal Year Adjustment Act
Pub. L. 94–273 § 2(4) · 90 Stat. 375
Substituted · 12 U.S.C. § 1783(d)(2)
Pub. L. 94–273 substituted “September” for “June” wherever appearing
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 94–273 substituted “September” for “June” wherever appearing.Enacted provision · exact public law section
(4) section 203(d)(2) of the Federal Credit Union Act (12 U.S.C. 1783(d)(2));Financial Institutions Regulatory and Interest Rate Control Act of 1978
Pub. L. 95–630 title V § 502(b) · 92 Stat. 3641
Substituted · 12 U.S.C. § 1783
Pub. L. 95–630 substituted “Board” for “Administrator” “his”, respectively, where appropriate
Substituted · 12 U.S.C. § 1783
Pub. L. 95–630 substituted “its” for “he” “his”, respectively, where appropriate
Source evidence
Code amendment note
Pub. L. 95–630 substituted “Board” for “Administrator” wherever appearing and “it” and “its” for “he” and “his”, respectively, where appropriate.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.Effective date note
Amendment by 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.Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 title V § 530 · 96 Stat. 1469
Added · 12 U.S.C. § 1783(f)
Pub. L. 97–320 added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 97–320 added subsec. (f).Enacted provision · exact public law section
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.”.Spending Reduction Act of 1984
Pub. L. 98–369 div. B title VIII § 2811 · 98 Stat. 494
Inserted · 12 U.S.C. § 1783(b)
Pub. L. 98–369 inserted “deposits and” and provisions relating to annual reporting requirements by the Board
Source evidence
Code amendment note
Subsec. (b). Pub. L. 98–369 inserted “deposits and” and provisions relating to annual reporting requirements by the Board.Enacted provision · exact public law section
Sec. 2811. Section 203(b) of the Federal Credit Union Act (12 U.S.C. 1783(b)) is amended— (1) by inserting “deposits and” before “premium charges”; and (2) by adding at the end thereof the following: “The Board shall report annually to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives with respect to the operating level of the fund. Such report shall also include the results of an independent audit of the fund.”.;Helping Families Save Their Homes Act of 2009
Pub. L. 111–22 § 204(c)(2) · 123 Stat. 1632
Amended · 12 U.S.C. § 1783(d)(1)
Pub. L. 111–22, § 204(c)(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “If, in the judgment of the Board, a loan to the fund is required at any time for carrying out the purposes of this subchapter, the Secretary of the Treasury shall make the loan, but loans under this paragraph shall not exceed in the aggregate $100,000,000 outstanding at any one time. Except as otherwise provided in this subsection and in subsection (e) of this section, each loan under this paragraph shall be made on such terms as may be fixed by agreement between the Board and the Secretary of the Treasury.”
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 111–22, § 204(c)(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “If, in the judgment of the Board, a loan to the fund is required at any time for carrying out the purposes of this subchapter, the Secretary of the Treasury shall make the loan, but loans under this paragraph shall not exceed in the aggregate $100,000,000 outstanding at any one time. Except as otherwise provided in this subsection and in subsection (e) of this section, each loan under this paragraph shall be made on such terms as may be fixed by agreement between the Board and the Secretary of the Treasury.”Enacted provision · exact public law section
(2) NCUA.— Section 203(d)(1) of the Federal Credit Union Act (12 U.S.C. 1783(d)(1)) is amended to read as follows: “(1) If, in the judgment of the Board, a loan to the insurance fund, or to the stabilization fund described in section 217 of this title, is required at any time for purposes of this subchapter, the Secretary of the Treasury shall make the loan, but loans under this paragraph shall not exceed in the aggregate $6,000,000,000 outstanding at any one time. Except as otherwise provided in this subsection, section 217, and in subsection (e) of this section, each loan under this paragraph shall be made on such terms as may be fixed by agreement between the Board and the Secretary of the Treasury.” .Helping Families Save Their Homes Act of 2009
Pub. L. 111–22 § 204(c)(3) · 123 Stat. 1632
Added · 12 U.S.C. § 1783(d)(4)
Pub. L. 111–22, § 204(c)(3), added par. (4)
Source evidence
Code amendment note
Subsec. (d)(4). Pub. L. 111–22, § 204(c)(3), added par. (4).Enacted provision · exact public law section
(3) Temporary increases of borrowing authority for ncua.— Section 203(d) of the Federal Credit Union Act (12 U.S.C. 1783(d)) is amended by adding at the end the following: “(4) Temporary increases authorized.— “(A) Recommendations for increase.— Time period. During the period beginning on the date of enactment of this paragraph and ending on December 31, 2010, if, upon the written recommendation of the Board (upon a vote of not less than two-thirds of the members of the Board) and the Board of Governors of the Federal Reserve System (upon a vote of not less than two-thirds of the members of such Board), the Secretary of the Treasury (in consultation with the President) determines that additional amounts above the $6,000,000,000 amount specified in paragraph (1) are necessary, such amount shall be increased to the amount so determined to be necessary, not to exceed $30,000,000,000. “(B) Report required.— If the borrowing authority of the Board is increased above $6,000,000,000 pursuant to subparagraph (A), the Board shall promptly submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives describing the reasons and need for the additional borrowing authority and its intended uses.” .
8 of 8 references resolved to an enrolled provision
Editorial Notes
References in Text
This subchapter, referred to in subsec. (d)(1), probably should have been a reference to this title in the original, meaning title II of act June 26, 1934, ch. 750, which is classified generally to this subchapter.
Codification
In subsec. (d)(3), “chapter 31 of title 31” substituted for “the Second Liberty Bond Act, as amended” on authority of Pub. L. 97–258, § 4(b), , 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.
Amendments1976–2009 · 5 rounds
2009
Subsec. (d)(1). Pub. L. 111–22, § 204(c)(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “If, in the judgment of the Board, a loan to the fund is required at any time for carrying out the purposes of this subchapter, the Secretary of the Treasury shall make the loan, but loans under this paragraph shall not exceed in the aggregate $100,000,000 outstanding at any one time. Except as otherwise provided in this subsection and in subsection (e) of this section, each loan under this paragraph shall be made on such terms as may be fixed by agreement between the Board and the Secretary of the Treasury.”
Subsec. (d)(4). Pub. L. 111–22, § 204(c)(3), added par. (4).
1984
Subsec. (b). Pub. L. 98–369 inserted “deposits and” and provisions relating to annual reporting requirements by the Board.
1982
Subsec. (f). Pub. L. 97–320 added subsec. (f).
1978
Pub. L. 95–630 substituted “Board” for “Administrator” wherever appearing and “it” and “its” for “he” and “his”, respectively, where appropriate.
1976
Subsec. (d)(2). Pub. L. 94–273 substituted “September” for “June” wherever appearing.
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, .
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–630 effective on expiration of 120 days after , and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.
Credits
1934–2009 · 6 acts
- 1934June 26, 1934, ch. 750, title II, § 203, as added Pub. L. 91–468, § 1(3), , 84 Stat. 999
- 1976amended Pub. L. 94–273, § 2(4), , 90 Stat. 375
- 1978Pub. L. 95–630, title V, § 502(b), , 92 Stat. 3681
- 1982Pub. L. 97–320, title V, § 530, , 96 Stat. 1535
- 1984Pub. L. 98–369, div. B, title VIII, § 2811, , 98 Stat. 1206
- 2009Pub. L. 111–22, div. A, title II, § 204(c)(2), (3), , 123 Stat. 1650.
Show as published
(June 26, 1934, ch. 750, title II, § 203, as added Pub. L. 91–468, § 1(3), , 84 Stat. 999; amended Pub. L. 94–273, § 2(4), , 90 Stat. 375; Pub. L. 95–630, title V, § 502(b), , 92 Stat. 3681; Pub. L. 97–320, title V, § 530, , 96 Stat. 1535; Pub. L. 98–369, div. B, title VIII, § 2811, , 98 Stat. 1206; Pub. L. 111–22, div. A, title II, § 204(c)(2), (3), , 123 Stat. 1650.)