§ 3015. Eligibility of cooperatives

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. 1978

   National Consumer Cooperative Bank Act

   Pub. L. 95–351 title I § 105 · 92 Stat. 499

   Enacted · 12 U.S.C. § 3015

   Pub. L. 95–351, title I, § 105, Aug. 20, 1978, 92 Stat. 506

   Source evidence

   Code source credit
   Pub. L. 95–351, title I, § 105, Aug. 20, 1978, 92 Stat. 506

   Enacted provision · exact public law section
   Sec. 105. eligibility (a) For the purpose of all titles of this Act, subject to 12 USC 3015. the limitations of subsection (d) of this section, an eligible cooperative is an organization chartered or operated on a cooperative, not-for-profit basis for producing or furnishing goods, services or facilities, primarily for the benefit of its members or voting stockholders who are ultimate consumers of such goods, services, or facilities, or a legally chartered entity entirely owned and controlled by any such organization or organizations, if it— (1) makes such goods, services or facilities directly or indirectly available to its members or voting stockholders on a not-for-profit basis; (2) does not pay dividends on voting stock or membership capital in excess of such percentage per annum as may be approved under the bylaws of the Bank; (3) provides that its net savings shall be allocated or distributed to all members or patrons, in proportion to their patronage, or shall be retained for the actual or potential expansion of its services or the reduction of its charges to the patrons, or for such other purposes as may be authorized by its membership not inconsistent with its purposes; (4) makes membership available on a voluntary basis, without any social, political, racial, or religious discrimination and without any discrimination on the basis of age, sex, or marital status, to all persons who can make use of its services and are willing to accept the responsibilities of membership, subject only to limitations under applicable Federal or State laws or regulations; (5) in the case of primary cooperative organizations restricts its voting control to members or voting stockholders on a one vote per person basis and takes positive steps to insure economic democracy and maximum participation by members of the cooperative including the holding of annual meetings and, in the case of organizations owned by groups of cooperatives, provides positive protections to insure economic democracy; and (6) is not a credit union, mutual savings bank, or mutual savings and loan association. (b) No organization shall be ineligible because it produces, markets, or furnishes goods, services, or facilities on behalf of its members as primary producers, unless the dollar volume of loans made by the Bank to such organizations exceeds 10 per centum of the gross assets of the Bank. (c) As used in this section, the term “net savings” means, for any “Net savings.” period, the borrower’s gross receipts, less the operating and other expenses deductible therefrom in accordance with generally accepted accounting principles, including, without limitation, contributions to allowable reserves, and after deducting the amounts of any dividends on its capital stock or other membership capital payable during, or within forty-five days after, the close of such period. (d) An eligible cooperative which also has been determined to be eligible for credit assistance from the Rural Electrification Administration, the National Rural Utilities Cooperative Finance Corporation, the Rural Telephone Bank, the Banks for Cooperatives or other institutions of the Farm Credit System, or the Farmers Home Administration may receive the assistance authorized by this Act only (1) if the Bank determines that a request for assistance from any such source or sources has been rejected or denied solely because of the unavailability of funds from such source or sources, or (2) by agreement between the Bank and the agency or agencies involved. (e) Notwithstanding any other provision of this section, a credit union serving predominantly low-income members (as defined by the Administrator of the National Credit Union Administration) may receive technical assistance under title II.

2. 1981

   Pub. L. 97–35 § 394(e)(1) · 95 Stat. 357

   Substituted · 12 U.S.C. § 3015(a)

   Pub. L. 97–35, § 394(e)(1), substituted “primarily owned” for “entirely owned”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–35, § 394(e)(1), substituted “primarily owned” for “entirely owned”.

   Enacted provision · exact public law section
   (1) The first sentence of section 105(a) of such Act (12 U.S.C. 3015(a)) is amended by striking out “entirely owned” and inserting in lieu thereof “primarily owned”.

   Effective date note
   Pub. L. 97–35, title III, § 394(e)(2), Aug. 13, 1981, 95 Stat. 437, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title.

3. 1981

   Pub. L. 97–35 § 394(f) · 95 Stat. 357

   Inserted · 12 U.S.C. § 3015(a)(5)

   Pub. L. 97–35, § 394(f), inserted provisions relating to exception for housing cooperatives in existence on Mar. 21, 1980

   Source evidence

   Code amendment note
   Subsec. (a)(5). Pub. L. 97–35, § 394(f), inserted provisions relating to exception for housing cooperatives in existence on Mar. 21, 1980.

   Enacted provision · exact public law section
   (f) Section 105(a)(5) of such Act (12 U.S.C. 3015(a)(5)) is amended by inserting “(except that this requirement shall not apply to any housing cooperative in existence on March 21, 1980, which did not meet such requirement on such date)” after “one vote per person basis”.

   Effective date note
   Pub. L. 97–35, title III, § 394(e)(2), Aug. 13, 1981, 95 Stat. 437, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title.

4. 2018

   Agriculture Improvement Act of 2018

   Pub. L. 115–334 title VI § 6602(b)(18) · 132 Stat. 4490

   Struck · 12 U.S.C. § 3015(d)

   Pub. L. 115–334 struck out “the Rural Telephone Bank,” after “the National Rural Utilities Cooperative Finance Corporation,”

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 115–334 struck out “the Rural Telephone Bank,” after “the National Rural Utilities Cooperative Finance Corporation,”.

   Enacted provision · exact public law section
   (18) Section 105(d) of the National Consumer Cooperative Bank Act (12 U.S.C. 3015(d)) is amended by striking “the Rural Telephone Bank,”.

4 of 4 references resolved to an enrolled provision