12 U.S.C. § 1771 — Conversion from Federal to State credit

Page 880 TITLE 12—BANKS AND BANKING § 1771 equipment and other expenses associated with telephone service), and security systems (includ- ing installation and other expenses associated with security systems). Where there is an agree- ment for the payment of costs associated with the provision of space or services, nothing in title 31 or any other provision of law, shall be construed to prohibit or restrict payment by re- imbursement to the miscellaneous receipts or other appropriate account of the Treasury. (June 26, 1934, ch. 750, title I, § 124, formerly § 25, as added Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 638; renumbered title I, § 124, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 97–320, title V, § 515, Oct. 15, 1982, 96 Stat. 1530; Pub. L. 97–457, § 27, Jan. 12, 1983, 96 Stat. 2510; Pub. L. 103–160, div. B, title XXVIII, § 2854, Nov. 30, 1993, 107 Stat. 1908; Pub. L. 103–337, div. A, title X, § 1070(b)(12), Oct. 5, 1994, 108 Stat. 2857; Pub. L. 109–351, title V, § 501, Oct. 13, 2006, 120 Stat. 1974.) Editorial Notes PRIOR PROVISIONS A prior section 1770, act June 26, 1934, ch. 750, § 20, 48 Stat. 1222, related to separability of provisions and right to alter, amend, or repeal chapter, prior to the amendment of act June 26, 1934, by Pub. L. 86–354. See section 1769 of this title. Provisions similar to those comprising this section were contained in section 21 of act June 26, 1934, ch. 750, as added July 9, 1937, ch. 471, 50 Stat. 487 (formerly clas- sified to section 1771 of this title), prior to the amend- ment and renumbering of act June 26, 1934, by Pub. L. 86–354. AMENDMENTS 2006—Pub. L. 109–351, in section catchline, inserted ‘‘or Federal land’’ after ‘‘buildings’’ and, in text, sub- stituted ‘‘Notwithstanding any other provision of law, upon application by any credit union’’ for ‘‘Upon appli- cation by any credit union’’ and inserted ‘‘on lands re- served for the use of, and under the exclusive or concur- rent jurisdiction of, the United States or’’ after ‘‘officer or agency of the United States charged with the allot- ment of space’’, ‘‘lease land or’’ after ‘‘such officer or agency may in his or its discretion’’, and ‘‘or the facil- ity built on the lease land’’ after ‘‘credit union to be served by the allotment of space’’. 1994—Pub. L. 103–337 made technical correction to Pub. L. 103–160, § 2854(1). See 1993 Amendment note below. 1993—Pub. L. 103–160, § 2854(2), substituted ‘‘allot space to such credit union without charge for rent or services if at least 95 percent of the membership of the credit union to be served by the allotment of space is composed of persons who either are presently Federal employees or were Federal employees at the time of ad- mission into the credit union, and members of their families, and if space is available.’’ for ‘‘allot space to such credit union if space is available without charge for rent or services.’’ Pub. L. 103–160, § 2854(1), as amended by Pub. L. 103–337, struck out ‘‘at least 95 per centum of the mem- bership of which is composed of persons who either are presently Federal employees or were Federal employees at the time of admission into the credit union, and members of their families,’’ after ‘‘terms of this chap- ter’’. 1983—Pub. L. 97–457 inserted ‘‘of’’ after ‘‘including in- stallation’’. 1982—Pub. L. 97–320 inserted definition of ‘‘services’’, and provided that where there is an agreement for the payment of costs associated with the provision of space or services, nothing in title 31 or any other provision of law shall be construed to prohibit or restrict payment by reimbursement to the miscellaneous receipts or other appropriate account of the Treasury. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Pub. L. 103–337, div. A, title X, § 1070(b), Oct. 5, 1994, 108 Stat. 2856, provided that the amendment made by that section is effective as of Nov. 30, 1993, and as if in- cluded in the National Defense Authorization Act for Fiscal Year 1994, Pub. L. 103–160, as enacted. § 1771. Conversion from Federal to State credit union and from State to Federal credit union (a) A Federal credit union may be converted into a State credit union under the laws of any State, the District of Columbia, the several Ter- ritories and possessions of the United States, the Panama Canal Zone, or the Commonwealth of Puerto Rico, by complying with the following requirements: (1) The proposition for such conversion shall first be approved, and a date set for a vote thereon by the members (either at a meeting to be held on such date or by written ballot to be filed on or before such date), by a majority of the directors of the Federal credit union. Written notice of the proposition and of the date set for the vote shall then be delivered in person to each member, or mailed to each member at the address for such member ap- pearing on the records of the credit union, not more than thirty nor less than seven days prior to such date. Approval of the proposition for conversion shall be by the affirmative vote of a majority of the members of the credit union who vote on the proposal. The written notice of the proposition shall in boldface type state that the issue will be decided by a major- ity of the members who vote. (2) A statement of the results of the vote, verified by the affidavits of the president or vice president and the secretary, shall be filed with the Administration within ten days after the vote is taken. (3) Promptly after the vote is taken and in no event later than ninety days thereafter, if the proposition for conversion was approved by such vote, the credit union shall take such action as may be necessary under the applica- ble State law to make it a State credit union, and within ten days after receipt of the State credit union charter there shall be filed with the Administration a copy of the charter thus issued. Upon such filing the credit union shall cease to be a Federal credit union. (4) Upon ceasing to be a Federal credit union, such credit union shall no longer be subject to any of the provisions of this chap- ter. The successor State credit union shall be vested with all of the assets and shall continue responsible for all of the obligations of the Federal credit union to the same extent as though the conversion had not taken place. (b)(1) A State credit union, organized under the laws of any State, the District of Columbia, the several Territories and possessions of the United States, the Panama Canal Zone, or the Commonwealth of Puerto Rico, may be con- verted into a Federal credit union by (A) com- Page 881 TITLE 12—BANKS AND BANKING § 1772a plying with all State requirements requisite to enabling it to convert to a Federal credit union or to cease being a State credit union, (B) filing with the Administration proof of such compli- ance, satisfactory to the Board, and (C) filing with the Administration an organization certifi- cate as required by this chapter. (2) When the Board has been satisfied that all of such requirements, and all other require- ments of this chapter, have been complied with, the Board shall approve the organization certifi- cate. Upon such approval, the State credit union shall become a Federal credit union as of the date it ceases to be a State credit union. The Federal credit union shall be vested with all of the assets and shall continue responsible for all of the obligations of the State credit union to the same extent as though the conversion had not taken place. (June 26, 1934, ch. 750, title I, § 125, formerly § 26, as added Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 638; amended Pub. L. 91–206, § 2(1), (3), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 125, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 97–320, title V, § 527, Oct. 15, 1982, 96 Stat. 1535.) Editorial Notes REFERENCES IN TEXT For definition of Canal Zone, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Inter- course. PRIOR PROVISIONS A prior section 1771, act June 26, 1934, ch. 750, § 21, as added July 9, 1937, ch. 471, 50 Stat. 487, related to allot- ment of space in Federal buildings, prior to the amend- ment of act June 26, 1934, by Pub. L. 86–354. See section 1770 of this title. AMENDMENTS 1982—Subsec. (a)(1). Pub. L. 97–320 substituted ‘‘of the credit union who vote on the proposal’’ for ‘‘, in person or in writing’’, and inserted provision that the written notice of the proposition shall in boldface type state that the issue will be decided by a majority of the members who vote. 1978—Subsec. (b). Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Administrator’’ in two places. 1970—Pub. L. 91–206 substituted ‘‘Administration’’ for ‘‘Bureau’’ and ‘‘Administrator’’ for ‘‘Director’’ wher- ever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provi- sions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title. § 1772. Territorial application of chapter The provisions of this chapter shall apply to the several States, the District of Columbia, the several Territories, including the trust terri- tories, and possessions of the United States, the Panama Canal Zone, and the Commonwealth of Puerto Rico. (June 26, 1934, ch. 750, title I, § 126, formerly § 22, as added July 31, 1946, ch. 711, § 7, 60 Stat. 745; amended May 8, 1952, ch. 245, 66 Stat. 66, renum- bered § 27 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 638; renumbered title I, § 126, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 93–383, title VII, § 726, Aug. 22, 1974, 88 Stat. 720.) Editorial Notes REFERENCES IN TEXT For definition of Canal Zone, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Inter- course. AMENDMENTS 1974—Pub. L. 93–383 inserted reference to trust terri- tories. 1959—Pub. L. 86–354 provided for application of chap- ter to the States, the District of Columbia, the Terri- tories and possessions of the United States and Puerto Rico and struck out specific reference to the Virgin Is- lands. 1952—Act May 8, 1952, amended section to extend pro- visions of this chapter to the Virgin Islands. § 1772a. Gifts; acceptance of conditional gifts; de- posit The Board is authorized to accept gifts of money made unconditionally by will or other- wise for the carrying out of any of the functions under this chapter. A conditional gift of money made by will or otherwise for such purposes may be accepted and used in accordance with its con- ditions, but no such gift shall be accepted which is conditioned upon any expenditure not to be met therefrom or from income thereof unless the Board determines that supplementation of such gift from the fees it may expend pursuant to sections 1755 and 1756 of this title or from any funds appropriated pursuant to section 1766(f)(2)(C) of this title for the purpose of mak- ing such expenditure will not adversely affect the sound administration of this chapter. Any such gift shall be deposited in the Treasury of the United States for the account of the Admin- istration and may be expended in accordance with section 1755 of this title or as provided in the preceding sentence. (June 26, 1934, ch. 750, title I, § 127, formerly § 28, as added Pub. L. 90–375, § 3, July 5, 1968, 82 Stat. 285; amended Pub. L. 91–206, § 2(1), (3), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 127, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681.) Editorial Notes AMENDMENTS 1978—Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Admin- istrator’’ in two places, and ‘‘it may expend’’ for ‘‘he may expend’’. 1970—Pub. L. 91–206 substituted ‘‘Administrator’’ for ‘‘Director’’ and ‘‘Administration’’ for ‘‘Bureau’’ wher- ever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provi- sions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.