§ 1795f. Powers of Board

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

   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. § 1795f

   June 26, 1934, ch. 750, title III, formerly subch. III, § 307, as added and amended Pub. L. 95–630, title V, § 502(b), title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3681, 3722

   Source evidence

   Code source credit
   June 26, 1934, ch. 750, title III, formerly subch. III, § 307, as added and amended Pub. L. 95–630, title V, § 502(b), title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3681, 3722

   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 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.

2. 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. § 1795f

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

   Source evidence

   Code amendment note
   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.

   Effective date note
   Amendment 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.

3. 1980

   Depository Institutions Deregulation and Monetary Control Act of 1980

   Pub. L. 96–221 title III · 94 Stat. 131

   1. Substituted · 12 U.S.C. § 1795f

      Pub. L. 96–221, §§ 309(a)(3), (4), (b)(2), (3), 312, designated existing provisions as subsec. (a) substituted “Board” for “Administrator” “subchapters”, which for purposes of codification has been editorially translated as “subchapter” or “subchapters” thereby requiring no further change in text, in par. (15) struck out requirement respecting advance appropriation of amounts

   2. Substituted · 12 U.S.C. § 1795f

      Pub. L. 96–221, §§ 309(a)(3), (4), (b)(2), (3), 312, designated existing provisions as subsec. (a) substituted “titles” for “subchapter” “subchapters”, which for purposes of codification has been editorially translated as “subchapter” or “subchapters” thereby requiring no further change in text, in par. (15) struck out requirement respecting advance appropriation of amounts

   3. Added · 12 U.S.C. § 1795f

      Pub. L. 96–221, §§ 309(a)(3), (4), (b)(2), (3), 312, added subsec. (b)

   Source evidence

   Code amendment note
   Pub. L. 96–221, §§ 309(a)(3), (4), (b)(2), (3), 312, designated existing provisions as subsec. (a) substituted “Board” for “Administrator”, such change having been made previously by Pub. L. 95–630, and “title” and “titles” for “subchapter” and “subchapters”, which for purposes of codification has been editorially translated as “subchapter” or “subchapters” thereby requiring no further change in text, in par. (15) struck out requirement respecting advance appropriation of amounts, and added subsec. (b).

   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.

4. 1982

   Garn-St Germain Depository Institutions Act of 1982

   Pub. L. 97–320 title V § 531 · 96 Stat. 1469

   Added · 12 U.S.C. § 1795f(a)(17); 12 U.S.C. § 1795f(a)(18)

   Pub. L. 97–320 added pars. (17) and (18)

   Source evidence

   Code amendment note
   Subsec. (a)(17), (18). Pub. L. 97–320 added pars. (17) and (18).

   Enacted provision · exact public law section
   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.”.

5. 2020

   Coronavirus Economic Stabilization Act of 2020

   Pub. L. 116–136 div. A title IV § 4016(a)(4) · 134 Stat. 281

   Inserted · 12 U.S.C. § 1795f(a)(4)(A)

   Pub. L. 116–136 inserted before semicolon “, provided that, the total face value of such obligations shall not exceed 16 times the subscribed capital stock and surplus of the Facility for the period beginning on March 27, 2020, and ending on December 31, 2020”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 116–136 inserted before semicolon “, provided that, the total face value of such obligations shall not exceed 16 times the subscribed capital stock and surplus of the Facility for the period beginning on March 27, 2020, and ending on December 31, 2020”.

   Enacted provision · exact public law section
   (4) Powers of the board.— Section 307(a)(4)(A) of the Federal Credit Union Act (12 U.S.C. 1795f(a)(4)(A)) is amended by inserting “, provided that, the total face value of such obligations shall not exceed 16 times the subscribed capital stock and surplus of the Facility for the period beginning on the date of enactment of the Coronavirus Economic Stabilization Act of 2020 and ending on December 31, 2020” after “Facility”.

6. 2020

   Commerce, Justice, Science, and Related Agencies Appropriations Act, 2021

   Pub. L. 116–260 div. N title V § 540(b) · 134 Stat. 1182

   Substituted · 12 U.S.C. § 1795f(a)(4)(A)

   Pub. L. 116–260 substituted “December 31, 2021” for “December 31, 2020”

   Source evidence

   Code amendment note
   Subsec. (a)(4)(A). Pub. L. 116–260 substituted “December 31, 2021” for “December 31, 2020”.

   Enacted provision · exact public law section
   Sec. 540. None of the funds made available by this Act may be obligated or expended to implement the Arms Trade Treaty until the Senate approves a resolution of ratification for the Treaty.

5 of 8 references resolved to an enrolled provision · 3 partial