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Title 12 — Banks and Banking

Chapter 14 — Federal Credit Unions

§ 1795e. Extensions of credit

Statutory text

(a)
(1)

A member may apply for an extension of credit from the Facility to meet its liquidity needs. The Board shall approve or deny any such application within five working days after receiving it. The Board shall not approve an application for credit the intent of which is to expand credit union portfolios.

(2)

The Board may advance funds to a member on terms and conditions prescribed by the Board after giving due consideration to creditworthiness.

(3)

The Board 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 Facility up to $500,000,000, in the event the Board 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.

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. Financial Institutions Regulatory and Interest Rate Control Act of 1978

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

    Enacted · 12 U.S.C. § 1795e

    June 26, 1934, ch. 750, title III, formerly subch. III, § 306, as added and amended Pub. L. 95–630, title V, § 502(b), title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3681, 3721

    Source evidence

    Code source credit
    June 26, 1934, ch. 750, title III, formerly subch. III, § 306, as added and amended Pub. L. 95–630, title V, § 502(b), title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3681, 3721

    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.

  2. Financial Institutions Regulatory and Interest Rate Control Act of 1978

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

    Substituted · 12 U.S.C. § 1795e

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

    Source evidence

    Code amendment note
    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.

  3. Depository Institutions Deregulation and Monetary Control Act of 1980

    Pub. L. 96–221 § 309(a)(4) · 94 Stat. 131

    Substituted · 12 U.S.C. § 1795e(a); 12 U.S.C. § 1795e(b)

    Pub. L. 96–221, § 309(a)(4), substituted “Board” for “Administrator” wherever appearing, such change having been previously made by Pub. L. 95–630

    Source evidence

    Code amendment note
    Subsecs. (a), (b). Pub. L. 96–221, § 309(a)(4), substituted “Board” for “Administrator” wherever appearing, such change having been previously made by Pub. L. 95–630.

    Enacted provision · exact public law section
    (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”.

  4. Coronavirus Economic Stabilization Act of 2020

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

    Substituted · 12 U.S.C. § 1795e(a)(1)

    Pub. L. 116–136, § 4016(b)(1)(C), which directed substitution of “the intent of which is to expand credit union portfolios” for “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” in the second sentence, was executed by making the substitution in the third sentence, to reflect the probable intent of Congress

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 116–136, § 4016(b)(1)(C), which directed substitution of “the intent of which is to expand credit union portfolios” for “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” in the second sentence, was executed by making the substitution in the third sentence, to reflect the probable intent of Congress.

    Enacted provision · exact public law section
    (C) Extensions of credit.— Section 306(a)(1) of the Federal Credit Union Act (12 U.S.C. 1795e(a)(1)) is amended, in the second sentence, by striking “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” and inserting “the intent of which is to expand credit union portfolios”.

    Effective date note
    Amendment by section 4016(b)(1)(C) of Pub. L. 116–136, effective Dec. 31, 2020, see section 4016(b)(2) of Pub. L. 116–136, set out as a note under section 1795a of this title.

  5. Coronavirus Economic Stabilization Act of 2020

    Pub. L. 116–136 § 4016(a)(3) · 134 Stat. 281

    Substituted · 12 U.S.C. § 1795e(a)(1)

    Pub. L. 116–136, § 4016(a)(3), which directed substitution of “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” for “the intent of which is to expand credit union portfolios” in the second sentence, was executed by making the substitution in the third sentence, to reflect the probable intent of Congress

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 116–136, § 4016(a)(3), which directed substitution of “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” for “the intent of which is to expand credit union portfolios” in the second sentence, was executed by making the substitution in the third sentence, to reflect the probable intent of Congress.

    Enacted provision · exact public law section
    (3) Extensions of credit.— Section 306(a)(1) of the Federal Credit Union Act (12 U.S.C. 1795e(a)(1)) is amended, in the second sentence, by striking “the intent of which is to expand credit union portfolios” and inserting “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant”.

    Effective date note
    Amendment by section 4016(b)(1)(C) of Pub. L. 116–136, effective Dec. 31, 2020, see section 4016(b)(2) of Pub. L. 116–136, set out as a note under section 1795a of this title.

5 of 5 references resolved to an enrolled provision

Editorial Notes

Codification

Section 309(b)(1) of Pub. L. 96–221 redesignated subch. III as title III of act June 26, 1934, ch. 750, cited as a credit to this section.

Amendments1978–2020 · 3 rounds

2020

Subsec. (a)(1). Pub. L. 116–136, § 4016(b)(1)(C), which directed substitution of “the intent of which is to expand credit union portfolios” for “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” in the second sentence, was executed by making the substitution in the third sentence, to reflect the probable intent of Congress.

Pub. L. 116–136, § 4016(a)(3), which directed substitution of “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” for “the intent of which is to expand credit union portfolios” in the second sentence, was executed by making the substitution in the third sentence, to reflect the probable intent of Congress.

1980

Subsecs. (a), (b). Pub. L. 96–221, § 309(a)(4), substituted “Board” for “Administrator” wherever appearing, such change having been previously made by Pub. L. 95–630.

1978

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

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment
Effective Date of 1978 Amendment

Amendment 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.

Effective Date

Section effective , see section 1806 of Pub. L. 95–630, set out as a note under section 1795 of this title.

Credits

1934–2020 · 3 acts
  1. 1934June 26, 1934, ch. 750, title III, formerly subch. III, § 306, as added and amended Pub. L. 95–630, title V, § 502(b), title XVIII, § 1802, , 92 Stat. 3681, 3721
  2. 1980Pub. L. 96–221, title III, § 309(a)(4), (b)(1), , 94 Stat. 149
  3. 2020Pub. L. 116–136, div. A, title IV, § 4016(a)(3), (b)(1)(C), , 134 Stat. 482.
Show as published

(June 26, 1934, ch. 750, title III, formerly subch. III, § 306, as added and amended Pub. L. 95–630, title V, § 502(b), title XVIII, § 1802, , 92 Stat. 3681, 3721; Pub. L. 96–221, title III, § 309(a)(4), (b)(1), , 94 Stat. 149; Pub. L. 116–136, div. A, title IV, § 4016(a)(3), (b)(1)(C), , 134 Stat. 482.)

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