12 U.S.C. § 1795e — Extensions of credit

Page 953 TITLE 12—BANKS AND BANKING § 1795f 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. AMENDMENTS 1980—Subsec. (a). Pub. L. 96–221, § 309(a)(4), sub- stituted ‘‘Board’’ for ‘‘Administrator’’, such change having been previously made by Pub. L. 95–630. Subsec. (b). Pub. L. 96–221, § 309(a)(2), (4), substituted ‘‘Board’’ for ‘‘Administrator’’ wherever appearing, such change having been previously made by Pub. L. 95–630, and in par. (3) inserted specific requirement that rates on required capital stock be without preference. Subsecs. (c) to (e). Pub. L. 96–221, § 309(a)(4), sub- stituted ‘‘Board’’ for ‘‘Administrator’’ wherever appear- ing, 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 1978 AMENDMENT 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. EFFECTIVE DATE Section effective Oct. 1, 1979, see section 1806 of Pub. L. 95–630, set out as a note under section 1795 of this title. § 1795e. Extensions of credit (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 re- ceiving it. The Board shall not approve an appli- cation 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 author- ized 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 cur- rent average market yield on outstanding obli- gations 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. (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; Pub. L. 96–221, title III, § 309(a)(4), (b)(1), Mar. 31, 1980, 94 Stat. 149; Pub. L. 116–136, div. A, title IV, § 4016(a)(3), (b)(1)(C), Mar. 27, 2020, 134 Stat. 482.) 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. AMENDMENTS 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 pri- mary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant’’ in the second sen- tence, was executed by making the substitution in the third sentence, to reflect the probable intent of Con- gress. Pub. L. 116–136, § 4016(a)(3), which directed substi- tution 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 port- folios’’ 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), sub- stituted ‘‘Board’’ for ‘‘Administrator’’ wherever appear- ing, 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 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. EFFECTIVE DATE OF 1978 AMENDMENT 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. EFFECTIVE DATE Section effective Oct. 1, 1979, see section 1806 of Pub. L. 95–630, set out as a note under section 1795 of this title. § 1795f. Powers of Board (a) General authorities The Board on behalf of the Facility shall have the ability to— (1) prescribe the manner in which the gen- eral business of the Facility shall be con- ducted; (2) prescribe rules and regulations to carry out this subchapter; (3) determine the expenditures incurred by the Administration to carry out this sub- chapter, 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;