12 U.S.C. § 1754 — Approval of organization certificate

Page 858 TITLE 12—BANKS AND BANKING § 1753 conduct a study and evaluation of the oversight and su- pervisory practices of the National Credit Union Ad- ministration concerning the National Credit Union Share Insurance Fund, including analysis of expenses, Fund administration, the 10 largest U.S. corporate credit unions, and Administration supervision and reg- ulations, and required the Secretary, not later than 12 months after Sept. 30, 1996, to submit to Congress a re- port that includes the results of the study and rec- ommendations. STUDY OF CREDIT UNION SYSTEM BY GAO Pub. L. 101–73, title XII, § 1201, Aug. 9, 1989, 103 Stat. 519, directed Comptroller General of the United States to conduct a comprehensive study of Nation’s credit union system and before the close of the 18-month pe- riod beginning on Aug. 9, 1989, to submit to Committee on Banking, Finance and Urban Affairs of House of Representatives and Committee on Banking, Housing, and Urban Affairs of Senate a final report containing a detailed statement of findings and conclusions, includ- ing recommendations for such administrative and leg- islative action as Comptroller General deemed advis- able. FEDERALLY CHARTERED CENTRAL CREDIT UNIONS; REPORT TO CONGRESS Pub. L. 86–354, § 3, Sept. 22, 1959, 73 Stat. 639, directed Director of Bureau of Federal Credit Unions to make a study of desirability of providing for federally char- tered central credit unions and to submit to Secretary of Health, Education, and Welfare, for transmission to Congress on or before Apr. 15, 1960, a report of results thereof and such recommendations for legislation thereon as Director deemed appropriate. § 1753. Federal credit union organization Any seven or more natural persons who desire to form a Federal credit union shall each sub- scribe either individually or collectively before some officer competent to administer oaths an organization certificate in duplicate which shall specifically state: (1) the name of the association; (2) the location of the proposed Federal cred- it union and the territory in which it will op- erate; (3) the names and addresses of the sub- scribers to the certificate and the number of shares subscribed by each; (4) the initial par value of the shares; (5) the proposed field of membership, speci- fied in detail; (6) the term of the existence of the corpora- tion, which may be perpetual; and (7) the fact that the certificate is made to enable such persons to avail themselves of the advantages of this chapter. Such organization certificate may also contain any provisions approved by the Board for the management of the business of the association and for the conduct of its affairs and relative to the powers of its directors, officers, or stock- holders. (June 26, 1934, ch. 750, title I, § 103, formerly § 3, 48 Stat. 1217; 1947 Reorg. Plan No. 1, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091; renumbered § 4 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 628; Pub. L. 91–206, § 2(1), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 103, 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, §§ 503, 504, Oct. 15, 1982, 96 Stat. 1528.) Editorial Notes AMENDMENTS 1982—Pub. L. 97–320, § 503, substituted ‘‘each subscribe either individually or collectively’’ for ‘‘subscribe’’. Par. (4). Pub. L. 97–320, § 504, substituted ‘‘the initial par value of the shares’’ for ‘‘the par value of the shares, which shall be $5 each’’. 1978—Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Admin- istrator’’. 1970—Pub. L. 91–206 substituted ‘‘Administrator’’ for ‘‘Director’’. 1959—Pub. L. 86–354 changed ‘‘The’’ to ‘‘the’’ in sub- secs. (1) to (7) and the period to a semicolon in subsecs. (1) to (6) and inserted ‘‘and’’ at end of subsec. (6). 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. Executive Documents TRANSFER OF FUNCTIONS Transfer of functions of Farm Credit Administration and Governor thereof, generally, see notes set out under section 1751 of this title. Functions of Governor of Farm Credit Administra- tion under this section transferred to Federal Deposit Insurance Corporation by Reorg. Plan No. 1 of 1947. § 1754. Approval of organization certificate The organization certificate shall be presented to the Board for approval. Before any organiza- tion certificate is approved, an appropriate in- vestigation shall be made for the purpose of de- termining (1) whether the organization certifi- cate conforms to the provisions of this chapter; (2) the general character and fitness of the sub- scribers thereto; and (3) the economic advis- ability of establishing the proposed Federal credit union. Upon approval of such organiza- tion certificate by the Board it shall be the charter of the corporation, and one of the origi- nals thereof shall be delivered to the corpora- tion after the payment of the fee required there- for. Upon such approval the Federal credit union shall be a body corporate and as such, subject to the limitations herein contained, shall be vested with all of the powers and charged with all of the liabilities conferred and imposed by this chapter upon corporations organized hereunder. (June 26, 1934, ch. 750, title I, § 104, formerly § 4, 48 Stat. 1217; 1947 Reorg. Plan No. 1, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091; renumbered § 5 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 629; Pub. L. 91–206, § 2(1), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 104, 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. Page 859 TITLE 12—BANKS AND BANKING § 1755 1970—Pub. L. 91–206 substituted ‘‘Administrator’’ for ‘‘Director’’ in two places. 1959—Pub. L. 86–354 substituted ‘‘The’’ for ‘‘Any such’’ in first sentence and transferred second sentence to make it last sentence. 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. Executive Documents TRANSFER OF FUNCTIONS Transfer of functions of Farm Credit Administration and Governor thereof, generally, see notes set out under section 1751 of this title. Functions of Governor of Farm Credit Administra- tion under this section transferred to Federal Deposit Insurance Corporation by Reorg. Plan No. 1 of 1947. § 1755. Fees (a) Payment by Federal credit union to Adminis- tration In accordance with rules prescribed by the Board, each Federal credit union shall pay to the Administration an annual operating fee which may be composed of one or more charges identified as to the function or functions for which assessed. (b) Determinations of amount, assessment peri- ods, and payment dates The fee assessed under this section shall be de- termined according to a schedule, or schedules, or other method determined by the Board to be appropriate, which gives due consideration to the expenses of the Administration in carrying out its responsibilities under this chapter and to the ability of Federal credit unions to pay the fee. The Board shall, among other things, deter- mine the periods for which the fee shall be as- sessed and the date or dates for the payment of the fee or increments thereof. (c) Supervision charge exception; waiver of pay- ment If the annual operating fee is composed of sep- arate charges, no supervision charge shall be payable by a Federal credit union, and the Board may waive payment of any or all other charges comprising the fee, with respect to the year in which its charter is issued, or in which final distribution is made in its liquidation or the charter is canceled. (d) Payment into Treasury of United States All operating fees shall be deposited with the Treasurer of the United States for the account of the Administration and may be expended by the Board to defray the expenses incurred in carrying out the provisions of this chapter in- cluding the examination and supervision of Fed- eral credit unions. (e) Investment of annual operating fees not need- ed for current operations (1) Upon request of the Board, the Secretary of the Treasury shall invest and reinvest such por- tions of the annual operating fees deposited under subsection (d) as the Board determines are not needed for current operations. (2) Such investments may be made only in in- terest bearing securities of the United States with maturities requested by the Board bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obli- gations of the United States of comparable ma- turities. (3) All income derived from such investments and reinvestments shall be deposited to the ac- count of the Administration described in sub- section (d). (June 26, 1934, ch. 750, title I, § 105, formerly § 5, 48 Stat. 1217; 1947 Reorg. Plan No. 1, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091; Apr. 17, 1952, ch. 214, § 1, 66 Stat. 63; renumbered § 6 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 629; Pub. L. 91–206, § 2(1), (3), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 105, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 95–630, title V, § 507, Nov. 10, 1978, 92 Stat. 3682; Pub. L. 97–320, title V, § 505, Oct. 15, 1982, 96 Stat. 1528.) Editorial Notes AMENDMENTS 1982—Subsec. (e). Pub. L. 97–320 added subsec. (e). 1978—Pub. L. 95–630 substituted provisions relating to the payment of an operating fee by each Federal credit union to the Board for provisions relating to the pay- ment of costs incident to the ascertainment of whether an organization certificate should be approved and costs upon approval by the subscriber of such certifi- cate to the Administration and payment of a super- vision fee by each Federal credit union to the Adminis- tration. 1970—Pub. L. 91–206 substituted ‘‘Administrator’’ for ‘‘Director’’ and ‘‘Administration’’ for ‘‘Bureau’’, wher- ever appearing. 1959—Pub. L. 86–354 incorporated in last sentence sub- ject matter formerly contained in a proviso clause fol- lowing table and authorized fees to be expended for su- pervisory expenses. 1952—Act Apr. 17, 1952, amended section, substituting a graduated scale of supervisory fees for the $10 a year supervisory fee. 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. EFFECTIVE DATE OF 1952 AMENDMENT Act Apr. 17, 1952, ch. 214, § 2, 66 Stat. 63, provided that: ‘‘The amendment by section 1 of this Act [amending this section] shall apply to supervision fees payable with respect to the calendar year 1952 and subsequent calendar years.’’ Executive Documents TRANSFER OF FUNCTIONS Transfer of functions of Farm Credit Administration and Governor thereof, generally, see notes set out under section 1751 of this title. Functions of Governor of Farm Credit Administra- tion under this section transferred to Federal Deposit Insurance Corporation by Reorg. Plan No. 1 of 1947.