§ 1795a. Definitions

Footnotes

1. 1 So in original. The period probably should be a semicolon.
2. 2 So in original. The comma probably should be a semicolon.

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

   National Credit Union Central Liquidity Facility Act

   Pub. L. 95–630 title XVIII § 1802 · 92 Stat. 3641

   Enacted · 12 U.S.C. § 1795a

   June 26, 1934, ch. 750, title III, formerly subch. III, § 302, as added Pub. L. 95–630, title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3719

   Source evidence

   Code source credit
   June 26, 1934, ch. 750, title III, formerly subch. III, § 302, as added Pub. L. 95–630, title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3719

   Enacted provision · exact public law section
   Sec. 1802. The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended by adding at the end thereof the following new subchapter: “SUBCHAPTER III— CENTRAL LIQUIDITY FACILITY “Sec. 301. The Congress finds that the establishment of a National 12 USC 1795. Credit Union Central Liquidity Facility is needed to improve general financial stability by meeting the liquidity needs of credit unions and thereby encourage savings, support consumer and mortgage lending, and provide basic financial resources to all segments of the economy. “Sec. 302. “definitions As used in this subchapter, the term— 12 USC 1795a. “(1) ‘liquidity needs’ means the needs of credit unions primarily serving natural persons for— “(A) short-term adjustment credit available to assist in meeting temporary requirements for funds or to cushion more persistent outflows of funds pending an orderly adjustment of credit union assets and liabilities; “(B) seasonal credit available for longer periods to assist in meeting seasonal needs for funds arising from a combination of expected patterns of movement in share and deposit accounts and loans; and “(C) protracted adjustment credit available in the event of unusual or emergency circumstances of a longer term nature resulting from national, regional or local difficulties. “(2) ‘Central Liquidity Facility’ or ‘Facility’ means the National Credit Union Central Liquidity Facility; “(3) ‘paid-in and unimpaired capital and surplus’ means the balance of the paid-in share accounts and deposits as of a given date, less any loss that may have been incurred for which there is no reserve or which has not been charged against undivided earnings, plus the credit balance (or less the debit balance) of the undivided earnings account as of a given date, after all losses have been provided for and net earnings or net losses have been added thereto or deducted therefrom. Reserves shall not be considered as part of surplus, and “(4) ‘member’ means a Regular or an Agent member of the Facility. “Sec. 303. “establishment of the national credit union administration central liquidity facility There is hereby created the National Credit Union Administration Central Liquidity Facility. The Central Liquidity Facility shall exist within the National Credit Union Administration and be managed by the Administrator. The United States district court shall have original jurisdiction over any case to which the Administrator on behalf of the Facility is a party, without regard to the amount in controversy. “Sec. 304. “membership (a) A credit union primarily serving natural persons may be a Regular member of the Facility by subscribing to the capital stock of the Facility in an amount not less than one-half of 1 per centum of the credit union’s paid-in and unimpaired capital and surplus. “(b) A credit union or group of credit unions, primarily serving other credit unions, may be an Agent member of the Facility by— “(1) obtaining the approval of the Administrator; “(2) subscribing to the capital stock of the Facility in an amount not less than one-half of 1 per centum of the paid-in and unimpaired capital and surplus of all those credit unions which primarily serve natural persons, which are members of such credit union or of any credit union comprising such credit union group, and which are not regular members; “(3) agreeing to comply with rules and regulations the Administrator shall prescribe with respect to, but not limited to, management quality, asset and liability safety and soundness, internal operating and control practices and procedures, and participation of natural persons in the affairs or such credit union or credit union group; and “(4) agreeing to submit to the supervision of the Administrator which shall include, but not be limited to, reporting requirements and periodic unrestricted examinations. “(c) Stock subscriptions provided for in subsections (a) and (b)(2) of this sect ion shall be— “(1) based on an arithmetic average of paid-in capital and surplus over the six months preceding application and membership; and “(2) adjusted at the close of each calendar year in accordance with an arithmetic average of paid-in capital and surplus over a period determined by the Administrator. “(d) An Agent member of the Facility shall perform for its member credit unions those functions required by the Administrator to carry out this subchapter. “(e) (1) A member of the Facility whose capital stock subscription constitutes less than 5 per centum of such stock outstanding, may withdraw from membership in the Facility six months after notifying the Administrator of its intention to do so. “(2) A member of the Facility whose capital stock subscription constitutes 5 per centum or more of such stock outstanding, may withdraw from membership in the Facility twenty-four months after notifying the Administrator of its intention to do so. “(3) The Administrator may terminate membership in the Facility if, after opportunity for a hearing, the Administrator determines a member has failed to comply with any provision of this subchapter or regulation issued pursuant thereto. “Sec. 305. “capital stock (a) As soon as practicable, the Administrator shall open Subscriptions. 12 USC 17954. books for subscriptions to the capital stock of the Facility. The minimum subscription shall be $50. “(b) The capital stock of the Facility— “(1) shall be divided into shares having a par value of $50 each; “(2) shall be paid for with cash or with securities of the United States or any Agency thereof in accordance with requirements the Administrator may impose; “(3) shall share in dividend distributions without preference and at rates to be determined by the Administrator; and “(4) shall not be transferred or hypothecated except as provided for herein. “(c) When circumstances require that all or a portion of a member’s stock be redeemed by the Facility, the Administrator shall pay an amount equal to what the member originally paid for the stock less any amount owed by the member to the Facility. “(d) At least one-half of the payment for the subscription amount required for membership under section 304 of this subchapter shall be transferred to the Facility. The remainder may be held by the member on call of the Administrator and shall be invested in assets designated by the Administrator. “(e) A credit union or credit union group that becomes a member of the Facility later than six months after the date the Administrator opens books for capital stock subscriptions, may not borrow or receive advances from the Facility without approval by the Administrator for a period of six months after becoming a member. “Sec. 306. “extensions of credit (a) (1) A member may apply for an extension of credit Application. 12 USC 1795e. from the Facility to meet its liquidity needs. The Administrator shall approve or deny any such application within five working days after receiving it. The Administrator shall not approve an application for credit the intent of which is to expand credit union portfolios. “(2) The Administrator may advance funds to a member on terms and conditions prescribed by the Administrator after giving due consideration to credit worthiness. “(3) The Administrator shall not advance funds for the benefit of a credit union whose share or deposit accounts are insured by a State share or deposit guaranty credit union, insurance corporation, or guaranty association, without consultation with the appropriate. State share or deposit guaranty credit union, insurance corporation, or guaranty association. “(b) The Secretary of the Treasury is authorized to lend to the Certification. Facility up to $500,000,000, in the event the Administrator certifies to the Secretary that the Facility does not have sufficient funds to meet liquidity needs of credit unions. Any such loan shall bear an interest rate not greater than one-eighth of 1 per centum above the current average market yield on outstanding obligations of the United States with remaining time to maturity comparable to the maturity of such loan. The authority of the Secretary to lend under this subsection shall be limited to such extent or in such amounts as are provided in advance in appropriation Acts. “Sec. 307. “powers of the administrator The Administrator on behalf of the Facility shall have the ability to— “(1) prescribe the manner in which the general business of the Facility shall be conducted; “(2) prescribe rules and regulations to carry out this subchapter; “(3) determine the expenditures incurred by the Administration to carry out this subchapter, and the expenditures incurred by the Facility to carry out subchapters I and II of this chapter, and annually assess the Facility and the Administration accordingly; “(4) borrow from— “(A) any source, provided that the total face value of these obligations shall not exceed twelve times the subscribed capital stock and surplus of the Facility; and “(B) the National Credit Union Share Insurance Fund up to $500,000 to defray initial organizational and operating expenses of the Facility at such rates and terms consistent with prevailing market conditions; “(5) guarantee performance of the terms of any financial obligation of a member but only when such obligation bears a clear and conspicuous notice on its face that only the resources of the Facility underlie such guarantee; “(6) purchase any asset from a member with the member’s endorsement; “(7) invest in obligations of the United States or any agency thereof; “(8) make deposits in federally insured financial institutions and make investments in shares or deposits of credit unions; “(9) sue and be sued, complain, and defend, in any State or Federal court; “(10) adopt a seal; “(11) pursue to final disposition by way of compromise or otherwise claims both for and against the United States (other than tort claims, claims involving administrative expenses, and claims in excess of $5,000 arising out of contracts for construction, repairs, and the purchase of supplies and materials) which arc not in litigation and have not been referred to the Department of Justice; “(12) appoint officers and employees to assist in carrying out this subchapter, who shall be appointed subject to the provisions of title 5, United States Code; “(13) conduct business, carry on operations, have offices, and exercise the powers granted by this subchapter in any State or territory; “(14) lease, purchase, or otherwise acquire and own, hold, improve, use, or otherwise deal in and with property, real, personal, or mixed, or any interest therein, wherever situated; “(15) enter into contracts with any public or private organization, partnership, corporation, or individual, to the extent or in such amounts as are provided in advance in appropriation Acts; and “(16) advance funds on a fully secured basis to a State credit union share or deposit insurance corporation, guaranty credit union, or guaranty association. Such advance shall not exceed twelve months in maturity, shall be relent at an interest rate not exceeding that imposed by the Facility, and shall not be renewable. “Sec. 308. “depositories, custodians, and fiscal agents The Federal Reserve Banks are authorized to act as 12 USC 1795g. depositories, custodians and/or fiscal agents for the Central Liquidity Facility in the general performance of its powers conferred by this subchapter. Each Federal Reserve Bank when designated by the Administrator as fiscal agent for the Central Liquidity Facility, shall be entitled to be reimbursed for all expenses incurred as such fiscal agent. “Sec. 309. “audit of financial transactions The Comptroller General of the United States shall audit Rules and regulations. 12 USC 1795h. the Central Liquidity Facility under such rules and regulations as the Comptroller may prescribe. “Sec. 310. “annual report The annual report required by section 102(e) shall include 12 USC 1795i. a full report of the activities of the Facility.”.

2. 1980

   Depository Institutions Deregulation and Monetary Control Act of 1980

   Pub. L. 96–221 § 309(b)(2) · 94 Stat. 131

   Substituted · 12 U.S.C. § 1795a

   Pub. L. 96–221, § 309(b)(2), substituted “title” for “subchapter”, which for purposes of codification has been editorially translated as “subchapter”, thereby requiring no further change in text

   Source evidence

   Code amendment note
   Pub. L. 96–221, § 309(b)(2), substituted “title” for “subchapter”, which for purposes of codification has been editorially translated as “subchapter”, thereby requiring no further change in text.

   Enacted provision · exact public law section
   (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. 2020

   Coronavirus Economic Stabilization Act of 2020

   Pub. L. 116–136 § 4016(b)(1)(A) · 134 Stat. 281

   Inserted · 12 U.S.C. § 1795a(1)

   Pub. L. 116–136, § 4016(b)(1)(A), inserted “primarily serving natural persons” after “credit unions” in introductory provisions

   Source evidence

   Code amendment note
   Par. (1). Pub. L. 116–136, § 4016(b)(1)(A), inserted “primarily serving natural persons” after “credit unions” in introductory provisions.

   Enacted provision · exact public law section
   (A) Definitions.— Section 302(1) of the Federal Credit Union Act (12 U.S.C. 1795a(1)) is amended, in the matter preceding subparagraph (A), by inserting “primarily serving natural persons” after “credit unions”.

   Effective date note
   Pub. L. 116–136, div. A, title IV, § 4016(b)(2), Mar. 27, 2020, 134 Stat. 482, as amended by Pub. L. 116–260, div. N, title V, § 540(a)(2), Dec. 27, 2020, 134 Stat. 2090, provided that: “The amendments made by paragraph (1) [amending this section and sections 1795c and 1795e of this title] shall take effect on December 31, 2021.”

4. 2020

   Coronavirus Economic Stabilization Act of 2020

   Pub. L. 116–136 § 4016(a)(1) · 134 Stat. 281

   Struck · 12 U.S.C. § 1795a(1)

   Pub. L. 116–136, § 4016(a)(1), struck out “primarily serving natural persons” after “credit unions” in introductory provisions

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 116–136, § 4016(a)(1), struck out “primarily serving natural persons” after “credit unions” in introductory provisions.

   Enacted provision · exact public law section
   (1) Definitions.— Section 302(1) of the Federal Credit Union Act (12 U.S.C. 1795a(1)) is amended, in the matter preceding subparagraph (A), by striking “primarily serving natural persons”.

   Effective date note
   Pub. L. 116–136, div. A, title IV, § 4016(b)(2), Mar. 27, 2020, 134 Stat. 482, as amended by Pub. L. 116–260, div. N, title V, § 540(a)(2), Dec. 27, 2020, 134 Stat. 2090, provided that: “The amendments made by paragraph (1) [amending this section and sections 1795c and 1795e of this title] shall take effect on December 31, 2021.”

4 of 4 references resolved to an enrolled provision