12 U.S.C. § 1772a — Gifts; acceptance of conditional gifts; de-

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. Page 882 TITLE 12—BANKS AND BANKING § 1772b 1 See References in Text note below. § 1772b. Apportionment Notwithstanding any other provision of law, funds received by the Board pursuant to any method provided by this chapter, and interest, dividend, or other income thereon, shall not be subject to apportionment for the purpose of chapter 15 of title 31 or under any other author- ity. (June 26, 1934, ch. 750, title I, § 128, as added Pub. L. 100–86, title V, § 505(e), Aug. 10, 1987, 101 Stat. 633.) § 1772c. Trust fund Notwithstanding any other provision of law, all moneys of the Board shall be treated as trust funds for the purpose of section 906(a)(2) 1 of title 2. This section is effective for fiscal year 1986 and every fiscal year thereafter. (June 26, 1934, ch. 750, title I, § 129, as added Pub. L. 100–86, title VII, § 708, Aug. 10, 1987, 101 Stat. 653.) Editorial Notes REFERENCES IN TEXT Section 906(a) of title 2, referred to in text, was amended generally by Pub. L. 101–508, title XIII, § 13101(d)(1), Nov. 5, 1990, 104 Stat. 1388–589, and subse- quently repealed by Pub. L. 111–139, title I, § 10(a), Feb. 12, 2010, 124 Stat. 21. Provisions similar to those for- merly appearing in section 906(a)(2) are now contained in section 906(k)(6) of Title 2, The Congress. § 1772c–1. Community development revolving loan fund for credit unions (a) In general The Board may exercise the authority granted to it by the Community Development Credit Union Revolving Loan Fund Transfer Act, in- cluding any additional appropriation made or earnings accrued, subject only to this section and to regulations prescribed by the Board. (b) Investment The Board may invest any idle Fund moneys in United States Treasury securities. Any inter- est accrued on such securities shall become a part of the Fund. (c) Loans The Board may require that any loans made from the Fund be matched by increased shares in the borrower credit union. (d) Interest Interest earned by the Fund may be allocated by the Board for technical assistance to commu- nity development credit unions, subject to an appropriations Act. (e) ‘‘Fund’’ defined As used in this section, the term ‘‘Fund’’ means the Community Development Credit Union Revolving Loan Fund. (June 26, 1934, ch. 750, title I, § 130, as added Pub. L. 103–325, title I, § 120(b), Sept. 23, 1994, 108 Stat. 2188.) Editorial Notes REFERENCES IN TEXT The Community Development Credit Union Revolv- ing Loan Fund Transfer Act, referred to in subsec. (a), is Pub. L. 99–609, Nov. 6, 1986, 100 Stat. 3475, which is set out as a note under section 9822 of Title 42, The Public Health and Welfare. § 1772d. Forfeiture of organization certificate for money laundering or cash transaction re- porting offenses (a) Forfeiture of franchise for money laundering or cash transaction reporting offenses (1) Conviction of title 18 offenses (A) Duty to notify If a credit union has been convicted of any criminal offense under section 1956 or 1957 of title 18, the Attorney General shall provide to the Board a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision. (B) Notice of termination; pretermination hearing After receiving written notification from the Attorney General of such a conviction, the Board shall issue to such credit union a notice of its intention to terminate all rights, privileges, and franchises of the cred- it union and schedule a pretermination hear- ing. (2) Conviction of title 31 offenses If a credit union is convicted of any criminal offense under section 5322 or 5324 of title 31 after receiving written notification from the Attorney General, the Board may issue to such credit union a notice of its intention to terminate all rights, privileges, and franchises of the credit union and schedule a pretermination hearing. (3) Judicial review Section 1786(j) of this title shall apply to any proceeding under this section. (b) Factors to be considered In determining whether a franchise shall be forfeited under subsection (a), the Board shall take into account the following factors: (1) The extent to which directors, committee members, or senior executive officers (as de- fined by the Board in regulations which the Board shall prescribe) of the credit union knew of, or were involved in, the commission of the money laundering offense of which the credit union was found guilty. (2) The extent to which the offense occurred despite the existence of policies and proce- dures within the credit union which were de- signed to prevent the occurrence of any such offense. (3) The extent to which the credit union has fully cooperated with law enforcement au- thorities with respect to the investigation of the money laundering offense of which the credit union was found guilty. (4) The extent to which the credit union has implemented additional internal controls (since the commission of the offense of which