12 U.S.C. § 1775 — Conditions upon conversion to Federal

Page 884 TITLE 12—BANKS AND BANKING § 1774 pursuant to section 3 of Pub. L. 91–206 and section 501 of Pub. L. 95–630 [12 U.S.C. 1752a] which transferred functions of Bureau of Federal Credit Unions, and Di- rector thereof, to National Credit Union Administra- tion and vested authority for management of Adminis- tration in National Credit Union Administration Board. REPEALS; REVOCATION OF ORGANIZATION CERTIFICATES ISSUED UNDER DISTRICT OF COLUMBIA CREDIT UNIONS ACT Pub. L. 88–395, § 4, Aug. 1, 1964, 78 Stat. 377, provided that: ‘‘Effective thirty days after enactment of this Act [Aug. 1, 1964], the District of Columbia Credit Unions Act (47 Stat. 326), as amended, is repealed and all orga- nization certificates issued thereunder and still in force are revoked.’’ § 1774. Approval of certificate; assets and obliga- tions of applicant credit union The Board shall approve any such organization certificate meeting such requirements. Upon such approval, the applicant credit union shall become a Federal credit union, and shall be vested with all of the assets and shall continue responsible for all of the obligations of such ap- plicant credit union to the same extent as though the conversion had not taken place. (Pub. L. 88–395, § 2, Aug. 1, 1964, 78 Stat. 377; Pub. L. 91–206, § 3, Mar. 10, 1970, 84 Stat. 49; Pub. L. 95–630, title V, § 501, Nov. 10, 1978, 92 Stat. 3680.) Editorial Notes CODIFICATION Section was not enacted as part of the Federal Credit Union Act which comprises this chapter. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS ‘‘Board’’, meaning the National Credit Union Admin- istration Board, substituted in text for ‘‘Director’’, meaning Director of Bureau of Federal Credit Unions, pursuant to section 3 of Pub. L. 91–206 and section 501 of Pub. L. 95–630 [12 U.S.C. 1752a] which transferred functions of Bureau of Federal Credit Unions, and Di- rector thereof, to National Credit Union Administra- tion and vested authority for management of Adminis- tration in National Credit Union Administration Board. § 1775. Conditions upon conversion to Federal status Any District of Columbia credit union con- verting into a Federal credit union in accord- ance with sections 1773 to 1775 of this title shall thereupon be subject to the limitations, vested with the powers, and charged with the liabilities conferred and imposed by the Federal Credit Union Act [12 U.S.C. 1751 et seq.] upon credit unions organized thereunder, except that— (1) no fee shall be imposed upon a credit union converting pursuant to sections 1773 to 1775 of this title as an incident to its conver- sion; (2) any loan or investment made by a credit union converting pursuant to sections 1773 to 1775 of this title in conformity with the Dis- trict of Columbia Credit Unions Act prior to its conversion, which does not conform to the requirements of the Federal Credit Union Act and is still outstanding at the time of conver- sion, shall be liquidated at or before its matu- rity or, if it has no maturity date, in a prudent manner and within a reasonable period of time; (3) a credit union converting pursuant to sections 1773 to 1775 of this title shall submit proposed bylaws to the Board for the Board’s approval after its conversion, but not later than thirty days following its next annual meeting or six months after August 1, 1964, whichever is later: Provided, That any existing bylaw inconsistent with any other require- ments of the Federal Credit Union Act shall be deemed null and void. (Pub. L. 88–395, § 3, Aug. 1, 1964, 78 Stat. 377; Pub. L. 91–206, § 3, Mar. 10, 1970, 84 Stat. 49; Pub. L. 95–630, title V, § 501, Nov. 10, 1978, 92 Stat. 3680.) Editorial Notes REFERENCES IN TEXT The Federal Credit Union Act, referred to in text, is act June 26, 1934, ch. 750, 48 Stat. 1216, which is classi- fied generally to this chapter. For complete classifica- tion of this Act to the Code, see section 1751 of this title and Tables. The District of Columbia Credit Unions Act, referred to in par. (2), was act June 23, 1932, ch. 272, 47 Stat. 326, and was repealed by Pub. L. 88–395, § 4, Aug. 1, 1964, 78 Stat. 377. CODIFICATION Section was not enacted as part of the Federal Credit Union Act which comprises this chapter. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS ‘‘Board’’ and ‘‘the Board’s’’, meaning the National Credit Union Administration Board, substituted in par. (3) for ‘‘Director’’ and ‘‘his’’, respectively, meaning Di- rector of Bureau of Federal Credit Unions, pursuant to section 3 of Pub. L. 91–206 and section 501 of Pub. L. 95–630 [12 U.S.C. 1752a] which transferred functions of Bureau of Federal Credit Unions, and Director thereof, to National Credit Union Administration and vested authority for management of Administration in Na- tional Credit Union Administration Board. SUBCHAPTER II—SHARE INSURANCE § 1781. Insurance of member accounts (a) Eligibility The Board, as hereinafter provided, shall in- sure the member accounts of all Federal credit unions and it may insure the member accounts of (1) credit unions organized and operated ac- cording to the laws of any State, the District of Columbia, the several territories, including the trust territories, and possessions of the United States, the Panama Canal Zone, or the Com- monwealth of Puerto Rico, and (2) credit unions organized and operating under the jurisdiction of the Department of Defense if such credit unions are operating in compliance with the re- quirements of subchapter I of this chapter and regulations issued thereunder. (b) Application; agreement Application for insurance of member accounts shall be made immediately by each Federal credit union and may be made at any time by a State credit union or a credit union operating