12 U.S.C. § 1782 — Administration of insurance fund

Page 886 TITLE 12—BANKS AND BANKING § 1782 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. Section 1404(e)(1)(A) of the Financial Institutions Re- form, Recovery, and Enforcement Act of 1989, referred to in subsec. (e)(3), is section 1404(e)(1)(A) of Pub. L. 101–73, which is set out as a note under section 1811 of this title. AMENDMENTS 2006—Subsec. (b)(5). Pub. L. 109–351 substituted ‘‘this chapter’’ for ‘‘section 1762 of this title’’. 1996—Subsec. (e). Pub. L. 104–208 added subsec. (e). 1984—Subsec. (b)(8). Pub. L. 98–369 inserted provisions relating to payment and maintenance of the deposit. 1978—Subsec. (a). Pub. L. 95–630, §§ 502(b), 504(a), sub- stituted ‘‘Board’’ for ‘‘Administrator’’ and ‘‘it’’ for ‘‘he’’, and inserted ‘‘, including the trust territories,’’ after ‘‘the several territories’’. Subsec. (b). Pub. L. 95–630, §§ 502(b), 504(b), substituted ‘‘Board’’ for ‘‘Administrator’’ wherever appearing and inserted in par. (7) ‘‘except for accounts authorized by State law for State credit unions’’ after ‘‘by the Board’’. Subsec. (c). Pub. L. 95–630, § 502(b), substituted ‘‘Board’’ for ‘‘Administrator’’ wherever appearing, and in par. (2) substituted ‘‘it’’ for ‘‘he’’ before ‘‘finds’’. Subsecs. (d), (e). Pub. L. 95–630, §§ 502(b), 504(c), struck out subsec. (d), redesignated subsec. (e) as (d) and sub- stituted ‘‘Board’’ for ‘‘Administrator’’. 1977—Subsec. (c)(3). Pub. L. 95–22 struck out par. (3) which provided for approval by Administrator of appli- cations of State credit unions for insurance of its mem- ber accounts where credit union meets requirements of this chapter and where in the event of liquidation of the credit union, the claims with respect to demand de- posit accounts shall be subordinate to the claims with respect to member accounts. 1971—Subsec. (c)(2). Pub. L. 92–221, § 1(a), substituted ‘‘disapproved’’ for ‘‘reject’’. Subsec. (c)(3). Pub. L. 92–221, § 2, added par. (3). Subsec. (d). Pub. L. 92–221, § 1(b), substituted provi- sions allowing, in certain cases, a two–year period to meet the requirements for insurance following the dis- approval of an application for insurance by a Federal credit union, for provisions mandating the suspension or revocation of the charter of a Federal credit union unless the credit union met the requirements for insur- ance and became an insured credit union within one year of the rejection of its application for insurance. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–208, div. A, title II, § 2615(c), Sept. 30, 1996, 110 Stat. 3009–479, provided that: ‘‘The amendments made by this section [amending this section and sec- tion 1828 of this title] shall apply on and after January 1, 1996.’’ 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. § 1782. Administration of insurance fund (a) Reports of condition (1) Each insured credit union shall make re- ports of condition to the Board upon dates which shall be selected by it. Such reports of condition shall be in such form and shall contain such in- formation as the Board may require. The report- ing dates selected for reports of condition shall be the same for all insured credit unions except that when any of said reporting dates is a non- business day for any credit union the preceding business day shall be its reporting date. The total amount of the member accounts of each insured credit union as of each reporting date shall be reported in such reports of condition in accordance with regulations prescribed by the Board. Each report of condition shall contain a declaration by the president, by a vice presi- dent, by the treasurer, or by any other officer designated by the board of directors of the re- porting credit union to make such declaration, that the report is true and correct to the best of such officer’s knowledge and belief. Unless such requirement is waived by the Board, the correct- ness of each report of condition shall be attested by the signatures of three of the officers of the reporting credit union with the declaration that the report has been examined by them and to the best of their knowledge and belief is true and correct. (2) The Board may call for such other reports as it may from time to time require. (3) The Board may require reports of condition to be published in such manner, not inconsistent with any applicable law, as it may direct. Any insured credit union which maintains proce- dures reasonably adapted to avoid any inad- vertent error and, unintentionally and as a re- sult of such an error, fails to submit or publish any report required under this subsection or sec- tion 1756 of this title, within the period of time specified by the Board, or submits or publishes any false or misleading report or information, or inadvertently transmits or publishes any report which is minimally late, shall be subject to a penalty of not more than $2,000 for each day dur- ing which such failure continues or such false or misleading information is not corrected. The in- sured credit union shall have the burden of prov- ing that an error was inadvertent and that a re- port was inadvertently transmitted or published late. Any insured credit union which fails to submit or publish any report required under this subsection or section 1756 of this title, within the period of time specified by the Board, or sub- mits or publishes any false or misleading report or information, in a manner not described in the 2nd preceding sentence shall be subject to a pen- alty of not more than $20,000 for each day during which such failure continues or such false or misleading information is not corrected. Not- withstanding the preceding sentence, if any in- sured credit union knowingly or with reckless disregard for the accuracy of any information or report described in such sentence submits or publishes any false or misleading report or in- formation, the Board may assess a penalty of not more than $1,000,000 or 1 percent of total as- sets of such credit union, whichever is less, per day for each day during which such failure con- tinues or such false or misleading information is not corrected. Any penalty imposed under any of the 4 preceding sentences shall be assessed and collected by the Board in the manner provided in section 1786(k)(2) of this title (for penalties imposed under such section) and any such as- sessment (including the determination of the amount of the penalty) shall be subject to the provisions of such section. Any insured credit Page 887 TITLE 12—BANKS AND BANKING § 1782 1 So in original. Probably should be ‘‘De minimis’’. union against which any penalty is assessed under this subsection shall be afforded an agen- cy hearing if such insured credit union submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 1786(j) of this title shall apply to any proceeding under this subsection. (4) The Board may accept any report of condi- tion made to any commission, board, or author- ity having supervision of a State-chartered cred- it union and may furnish to any such commis- sion, board, or authority reports of condition made to the Board. (5) Reports required under subchapter I of this chapter shall be so prepared that they can be used for share insurance purposes. To the max- imum extent feasible, the Board shall use for in- surance purposes reports submitted to State regulatory agencies by State-chartered credit unions. (6) AUDIT REQUIREMENT.— (A) IN GENERAL.—Before the end of the 120- day period beginning on August 9, 1989, and notwithstanding any other provision of Fed- eral or State law, the Board shall prescribe, by regulation, audit standards which require an outside, independent audit of any insured credit union by a certified public accountant for any fiscal year (of such credit union)— (i) for which such credit union has not con- ducted an annual supervisory committee audit; (ii) for which such credit union has not re- ceived a complete and satisfactory super- visory committee audit; or (iii) during which such credit union has ex- perienced persistent and serious record- keeping deficiencies, as determined by the Board. (B) UNSAFE OR UNSOUND PRACTICE.—The Board may treat the failure of any insured credit union to obtain an outside, independent audit for any fiscal year for which such audit is required under subparagraph (A) or (D) as an unsafe or unsound practice within the mean- ing of section 1786(b) of this title. (C) ACCOUNTING PRINCIPLES.— (i) IN GENERAL.—Accounting principles ap- plicable to reports or statements required to be filed with the Board by each insured cred- it union shall be uniform and consistent with generally accepted accounting prin- ciples. (ii) BOARD DETERMINATION.—If the Board determines that the application of any gen- erally accepted accounting principle to any insured credit union is not appropriate, the Board may prescribe an accounting principle for application to the credit union that is no less stringent than generally accepted ac- counting principles. (iii) DE MINIMUS 1 EXCEPTION.—This sub- paragraph shall not apply to any insured credit union, the total assets of which are less than $10,000,000, unless prescribed by the Board or an appropriate State credit union supervisor. (D) LARGE CREDIT UNION AUDIT REQUIRE- MENT.— (i) IN GENERAL.—Each insured credit union having total assets of $500,000,000 or more shall have an annual independent audit of the financial statements of the credit union, performed in accordance with generally ac- cepted auditing standards by an independent certified public accountant or public ac- countant licensed by the appropriate State or jurisdiction to perform those services. (ii) VOLUNTARY AUDITS.—If a Federal credit union that is not required to conduct an audit under clause (i), and that has total as- sets of more than $10,000,000 conducts such an audit for any purpose, using an inde- pendent auditor who is compensated for his or her audit services with respect to that audit, the audit shall be performed con- sistent with the accountancy laws of the ap- propriate State or jurisdiction, including li- censing requirements. (7) REPORT TO INDEPENDENT AUDITOR.— (A) IN GENERAL.—Each insured credit union which has engaged the services of an inde- pendent auditor to audit such depository insti- tution within the past 2 years shall transmit to such auditor a copy of the most recent re- port of condition made by such credit union (pursuant to this chapter or any other provi- sion of law) and a copy of the most recent re- port of examination received by such credit union. (B) ADDITIONAL INFORMATION.—In addition to the copies of the reports required to be pro- vided to an auditor under subparagraph (A), each insured credit union shall provide such auditor with— (i) a copy of any supervisory memorandum of understanding with such credit union and any written agreement between the Board or a State regulatory agency and the credit union which is in effect during the period covered by the audit; and (ii) a report of any action initiated or taken by the Board during such period under subsection (e), (f), (g), (i), (l), or (q) of section 1786 of this title, or any similar action taken by a State regulatory agency under State law, or any other civil money penalty as- sessed by the Board under this chapter, with respect to— (I) the credit union; or (II) any institution-affiliated party. (8) DATA SHARING WITH OTHER AGENCIES AND PERSONS.—In addition to reports of examination, reports of condition, and other reports required to be regularly provided to the Board (with re- spect to all insured credit unions, including a credit union for which the Corporation has been appointed conservator or liquidating agent) or an appropriate State commission, board, or au- thority having supervision of a State-chartered credit union, the Board may, in the discretion of the Board, furnish any report of examination or other confidential supervisory information con- cerning any credit union or other entity exam- ined by the Board under authority of any Fed- eral law, to— (A) any other Federal or State agency or au- thority with supervisory or regulatory author- ity over the credit union or other entity; Page 888 TITLE 12—BANKS AND BANKING § 1782 (B) any officer, director, or receiver of such credit union or entity; and (C) any other person that the Board deter- mines to be appropriate. (b) Certified statement (1) Statement required (A) In general For each calendar year, in the case of an insured credit union with total assets of not more than $50,000,000, and for each semi-an- nual period in the case of an insured credit union with total assets of $50,000,000 or more, an insured credit union shall file with the Board, at such time as the Board prescribes, a certified statement showing the total amount of insured shares in the credit union at the close of the relevant period and both the amount of its deposit or adjustment of deposit and the amount of the insurance charge due to the Fund for that period, both as computed under subsection (c). (B) Exception for newly insured credit union Subparagraph (A) shall not apply with re- spect to a credit union that became insured during the reporting period. (2) Form The certified statements required to be filed with the Board pursuant to this subsection shall be in such form and shall set forth such supporting information as the Board shall re- quire. (3) Certification The president of the credit union or any offi- cer designated by the board of directors shall certify, with respect to each statement re- quired to be filed with the Board pursuant to this subsection, that to the best of his or her knowledge and belief the statement is true, correct, complete, and in accordance with this subchapter and the regulations issued under this subchapter. (c) Deposit with National Credit Union Share In- surance Fund; amount, return, distribution, etc. (1)(A)(i) Each insured credit union shall pay to and maintain with the National Credit Union Share Insurance Fund a deposit in an amount equaling 1 per centum of the credit union’s in- sured shares. (ii) The Board may, in its discretion, authorize insured credit unions to initially fund such de- posit over a period of time in excess of one year if necessary to avoid adverse effects on the con- dition of insured credit unions. (iii) PERIODIC ADJUSTMENT.—The amount of each insured credit union’s deposit shall be ad- justed as follows, in accordance with procedures determined by the Board, to reflect changes in the credit union’s insured shares: (I) annually, in the case of an insured credit union with total assets of not more than $50,000,000; and (II) semi-annually, in the case of an insured credit union with total assets of $50,000,000 or more. (B)(i) The deposit shall be returned to an in- sured credit union in the event that its insur- ance coverage is terminated, it converts to in- surance coverage from another source, or in the event the operations of the fund are transferred from the National Credit Union Administration Board. (ii) The deposit shall be returned in accord- ance with procedures and valuation methods de- termined by the Board, but in no event shall the deposit be returned any later than one year after the final date on which no shares of the credit union are insured by the Board. (iii) The deposit shall not be returned in the event of liquidation on account of bankruptcy or insolvency. (iv) The deposit funds may be used by the fund if necessary to meet its expenses, in which case the amount so used shall be expensed and shall be replenished by insured credit unions in ac- cordance with procedures established by the Board. (2) INSURANCE PREMIUM CHARGES.— (A) IN GENERAL.—Each insured credit union shall, at such times as the Board prescribes (but not more than twice in any calendar year), pay to the Fund a premium charge for insurance in an amount stated as a percentage of insured shares (which shall be the same for all insured credit unions). (B) RELATION OF PREMIUM CHARGE TO EQUITY RATIO OF FUND.—The Board may assess a pre- mium charge only if— (i) the Fund’s equity ratio is less than 1.3 percent; and (ii) the premium charge does not exceed the amount necessary to restore the equity ratio to 1.3 percent. (C) PREMIUM CHARGE REQUIRED IF EQUITY RATIO FALLS BELOW 1.2 PERCENT.—If the Fund’s equity ratio is less than 1.2 percent, the Board shall, subject to subparagraph (B), assess a premium charge in such an amount as the Board determines to be necessary to restore the equity ratio to, and maintain that ratio at, 1.2 percent. (D) FUND RESTORATION PLANS.— (i) IN GENERAL.—Whenever— (I) the Board projects that the equity ratio of the Fund will, within 6 months of such determination, fall below the min- imum amount specified in subparagraph (C); or (II) the equity ratio of the Fund actually falls below the minimum amount specified in subparagraph (C) without any deter- mination under sub-clause (I) having been made, the Board shall establish and implement a restoration plan within 90 days that meets the requirements of clause (ii) and such other conditions as the Board determines to be appropriate. (ii) REQUIREMENTS OF RESTORATION PLAN.— A restoration plan meets the requirements of this clause if the plan provides that the equity ratio of the Fund will meet or exceed the minimum amount specified in subpara- graph (C) before the end of the 8-year period beginning upon the implementation of the plan (or such longer period as the Board may determine to be necessary due to extraor- dinary circumstances). Page 889 TITLE 12—BANKS AND BANKING § 1782 (iii) TRANSPARENCY.—Not more than 30 days after the Board establishes and imple- ments a restoration plan under clause (i), the Board shall publish in the Federal Reg- ister a detailed analysis of the factors con- sidered and the basis for the actions taken with regard to the plan. (3) DISTRIBUTIONS FROM FUND REQUIRED.— (A) IN GENERAL.—The Board shall, subject to the requirements of section 1790e(e) of this title, effect a pro rata distribution to insured credit unions after each calendar year if, as of the end of that calendar year— (i) any loans to the Fund from the Federal Government, and any interest on those loans, have been repaid; (ii) the Fund’s equity ratio exceeds the normal operating level; and (iii) the Fund’s available assets ratio ex- ceeds 1.0 percent. (B) AMOUNT OF DISTRIBUTION.—The Board shall distribute under subparagraph (A) the maximum possible amount that— (i) does not reduce the Fund’s equity ratio below the normal operating level; and (ii) does not reduce the Fund’s available assets ratio below 1.0 percent. (C) CALCULATION BASED ON CERTIFIED STATE- MENTS.—In calculating the Fund’s equity ratio and available assets ratio for purposes of this paragraph, the Board shall determine the ag- gregate amount of the insured shares in all in- sured credit unions from insured credit unions certified statements under subsection (b) for the final reporting period of the calendar year referred to in subparagraph (A). (4) TIMELINESS AND ACCURACY OF DATA.—In cal- culating the available assets ratio and equity ratio of the Fund, the Board shall use the most current and accurate data reasonably available. (d) Remedy for failure to report; penalty for fail- ure to file certified statement or pay pre- mium; dispute as to deposit or premium charge; prohibition on distribution of assets or dividends while in default (1) Any insured credit union which fails to make any report of condition under subsection (a) of this section or to file any certified state- ment required to be filed by it in connection with determining the amount of its deposit or any premium charge for insurance may be com- pelled to make such report or to file such state- ment by mandatory injunction or other appro- priate remedy in a suit brought for such purpose by the Board against the credit union and any officer or officers thereof. Any such suit may be brought in any court of the United States of competent jurisdiction in the district or terri- tory in which the principal office of the credit union is located. (2) PENALTY FOR FAILURE TO MAKE ACCURATE CERTIFIED STATEMENT OR TO PAY DEPOSIT OR PRE- MIUM.— (A) FIRST TIER.—Any insured credit union which— (i) maintains procedures reasonably adapt- ed to avoid any inadvertent error and, unin- tentionally and as a result of such an error, fails to submit any certified statement under subsection (b)(1) within the period of time required or submits a false or mis- leading certified statement under such sub- section; or (ii) submits the statement at a time which is minimally after the time required, shall be subject to a penalty of not more than $2,000 for each day during which such failure continues or such false and misleading infor- mation is not corrected. The insured credit union shall have the burden of proving that an error was inadvertent or that a statement was inadvertently submitted late. (B) SECOND TIER.—Any insured credit union which— (i) fails to submit any certified statement under subsection (b)(1) within the period of time required or submits a false or mis- leading certified statement in a manner not described in subparagraph (A); or (ii) fails or refuses to pay any deposit or premium for insurance required under this subchapter, shall be subject to a penalty of not more than $20,000 for each day during which such failure continues, such false and misleading informa- tion is not corrected, or such deposit or pre- mium is not paid. (C) THIRD TIER.—Notwithstanding subpara- graphs (A) and (B), if any insured credit union knowingly or with reckless disregard for the accuracy of any certified statement under sub- section (b)(1) submits a false or misleading certified statement under such subsection, the Board may assess a penalty of not more than $1,000,000 or not more than 1 percent of the total assets of the credit union, whichever is less, per day for each day during which the failure continues or the false or misleading in- formation in such statement is not corrected. (D) ASSESSMENT PROCEDURE.—Any penalty imposed under this paragraph shall be assessed and collected by the Board in the manner pro- vided in section 1786(k)(2) of this title (for pen- alties imposed under such section) and any such assessment (including the determination of the amount of the penalty) shall be subject to the provisions of such section. (E) HEARING.—Any insured credit union against which any penalty is assessed under this paragraph shall be afforded an agency hearing if the credit union submits a request for such hearing within 20 days after the issuance of the notice of the assessment. Sec- tion 1786(j) of this title shall apply to any pro- ceeding under this subparagraph. (F) SPECIAL RULE FOR DISPUTED PAYMENTS.— No penalty may be assessed for the failure of any insured credit union to pay any deposit or premium for insurance if— (i) the failure is due to a dispute between the credit union and the Board over the amount of the deposit or premium which is due from the credit union; and (ii) the credit union deposits security sat- isfactory to the Board for payment of the de- posit or insurance premium upon final deter- mination of the dispute. (3) No insured credit union shall pay any divi- dends on its insured shares or distribute any of Page 890 TITLE 12—BANKS AND BANKING § 1782 its assets while it remains in default in the pay- ment of its deposit or any premium charge for insurance due to the fund. Any director or offi- cer of any insured credit union who knowingly participates in the declaration or payment of any such dividend or in any such distribution shall, upon conviction, be fined not more than $1,000 or imprisoned not more than one year, or both. The provisions of this paragraph shall not be applicable in any case in which the default is due to a dispute between the credit union and the Board over the amount of its deposit or the premium charge due to the fund if the credit union deposits security satisfactory to the Board for payment of its deposit or the premium charge upon final determination of the issue. (e) Recovery of unpaid deposit or premium; limi- tations The Board, in a suit brought at law or in eq- uity in any court of competent jurisdiction, shall be entitled to recover from any insured credit union the amount of any unpaid deposit or premium charge for insurance lawfully pay- able by the credit union to the fund, whether or not such credit union shall have made any re- port of condition under subsection (a) of this section or filed any certified statement required under subsection (b) of this section and whether or not suit shall have been brought to compel the credit union to make any such report or to file any such statement. No action or proceeding shall be brought for the recovery of any deposit or premium charge due to the fund, or for the recovery of any amount paid to the fund in ex- cess of the amount due it, unless such action or proceeding shall have been brought within five years after the right accrued for which the claim is made. Where the insured credit union has made or filed with the Board a false or fraudulent certified statement with the intent to evade, in whole or in part, the payment of its deposit or any premium charge, the claim shall not be deemed to have accrued until the dis- covery by the Board of the fact that the cer- tified statement is false or fraudulent. (f) Penalty for failure to comply with section; court determination of failure; remedies not exclusive Should any Federal credit union fail to make any report of condition under subsection (a) of this section or to file any certified statement re- quired to be filed under subsection (b) of this section or to pay its deposit or any premium charge for insurance required to be paid under any provision of this subchapter, and should the credit union fail to correct such failure within thirty days after written notice has been given by the Board to an officer of the credit union, citing this subsection and stating that the cred- it union has failed to make any such report or file any such statement or pay any such deposit or premium charges as required by law, all the rights, privileges, and franchises of the credit union granted to it under subchapter I of this chapter shall be thereby forfeited. Whether or not the penalty provided in this subsection has been incurred shall be determined and adjudged by any court of the United States of competent jurisdiction in a suit brought for that purpose in the district or territory in which the principal office of such credit union is located, under di- rection of and by the Board in its own name, be- fore the credit union shall be declared dissolved. The remedies provided in this subsection and in subsections (d) and (e) of this section shall not be construed as limiting any other remedies against any insured credit union but shall be in addition thereto. (g) Records Each insured credit union shall maintain such records as will readily permit verification of the correctness of its reports of condition, certified statements, and deposit and premium charges for insurance. However, no insured credit union shall be required to retain such records for such purpose for a period in excess of five years from the date of the making of any such report, the filing of any such statement, or the payment of any deposit or adjustment thereof or any pre- mium charge, except that when there is a dis- pute between the insured credit union and the Board over the amount of any deposit or adjust- ment thereof or any premium charge for insur- ance the credit union shall retain such records until final determination of the issue. (h) Definitions For purposes of this section, the following definitions shall apply: (1) Available assets ratio The term ‘‘available assets ratio’’, when ap- plied to the Fund, means the ratio of— (A) the amount determined by sub- tracting— (i) direct liabilities of the Fund and con- tingent liabilities for which no provision for losses has been made, from (ii) the sum of cash and the market value of unencumbered investments au- thorized under section 1783(c) of this title, to (B) the aggregate amount of the insured shares in all insured credit unions. (2) Equity ratio The term ‘‘equity ratio’’, which shall be cal- culated using the financial statements of the Fund alone, without any consolidation or combination with the financial statements of any other fund or entity, means the ratio of— (A) the amount of Fund capitalization, in- cluding insured credit unions’ 1 percent cap- italization deposits and the retained earn- ings balance of the Fund (net of direct liabil- ities of the Fund and contingent liabilities for which no provision for losses has been made); to (B) the aggregate amount of the insured shares in all insured credit unions. (3) Insured shares The term ‘‘insured shares’’, when applied to this section, includes share, share draft, share certificate, and other similar accounts as de- termined by the Board, but does not include amounts exceeding the insured account limit set forth in section 1787(k)(1) of this title. (4) Normal operating level The term ‘‘normal operating level’’, when applied to the Fund, means an equity ratio Page 891 TITLE 12—BANKS AND BANKING § 1782 specified by the Board, which shall be not less than 1.2 percent and not more than 1.5 percent. (June 26, 1934, ch. 750, title II, § 202, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 995; amended Pub. L. 93–383, title VII, § 727, Aug. 22, 1974, 88 Stat. 720; Pub. L. 95–630, title V, §§ 502(b), 505, Nov. 10, 1978, 92 Stat. 3681, 3682; Pub. L. 97–320, title V, §§ 528, 529, Oct. 15, 1982, 96 Stat. 1535; Pub. L. 97–457, § 29, Jan. 12, 1983, 96 Stat. 2510; Pub. L. 98–369, div. B, title VIII, §§ 2802–2810, July 18, 1984, 98 Stat. 1204, 1205; Pub. L. 101–73, title IX, §§ 911(f), 919, 931(b), Aug. 9, 1989, 103 Stat. 482, 488, 493; Pub. L. 102–242, title III, § 313(b), Dec. 19, 1991, 105 Stat. 2369; Pub. L. 102–550, title XVI, § 1605(b)(3), Oct. 28, 1992, 106 Stat. 4087; Pub. L. 105–219, title II, § 201, title III, § 302(a), Aug. 7, 1998, 112 Stat. 918, 931; Pub. L. 109–351, title VII, §§ 707(b), 726(12), Oct. 13, 2006, 120 Stat. 1987, 2002; Pub. L. 111–22, div. A, title II, § 204(e), (f)(2), May 20, 2009, 123 Stat. 1651, 1653; Pub. L. 111–382, § 2, Jan. 4, 2011, 124 Stat. 4135.) Editorial Notes AMENDMENTS 2011—Subsec. (h)(2). Pub. L. 111–382 substituted ‘‘which shall be calculated using the financial state- ments of the Fund alone, without any consolidation or combination with the financial statements of any other fund or entity,’’ for ‘‘when applied to the Fund,’’ in in- troductory provisions. 2009—Subsec. (c)(2)(D). Pub. L. 111–22, § 204(e), added subpar. (D). Subsec. (c)(3)(A). Pub. L. 111–22, § 204(f)(2), inserted ‘‘, subject to the requirements of section 1790e(e) of this title,’’ after ‘‘The Board shall’’ in introductory provisions. 2006—Subsec. (a)(8). Pub. L. 109–351, § 707(b), added par. (8). Subsec. (h)(3). Pub. L. 109–351, § 726(12), substituted ‘‘section 1787(k)(1) of this title’’ for ‘‘section 1787(c)(1) of this title’’. 1998—Subsec. (a)(6). Pub. L. 105–219, § 201, substituted ‘‘subparagraph (A) or (D)’’ for ‘‘subparagraph (A)’’ in subpar. (B) and added subpars. (C) and (D). Subsec. (b). Pub. L. 105–219, § 302(a)(1), added subsec. (b) and struck out former subsec. (b) which read as fol- lows: ‘‘(b)(1) For each insurance year, each insured credit union which became insured prior to the beginning of that year shall file with the Board, at such time as the Board prescribes, a certified statement showing the total amount of insured shares in the credit union at the close of the preceding insurance year and both the amount of its deposit or adjustment thereof and the amount of the premium charge for insurance due to the fund for that year, both as computed under subsection (c) of this section. ‘‘(2) The certified statements required to be filed with the Board pursuant to this subsection shall be in such form and shall set forth such supporting information as the Board shall require. ‘‘(3) Each such statement shall be certified by the president of the credit union, or by any officer of the credit union designated by its board of directors, that to the best of his knowledge and belief that statement is true, correct, and complete and in accordance with this subchapter and regulations issued thereunder.’’ Subsec. (c)(1)(A)(iii). Pub. L. 105–219, § 302(a)(2), added cl. (iii) and struck out former cl. (iii) which read as fol- lows: ‘‘The amount of each insured credit union’s de- posit shall be adjusted annually, in accordance with procedures determined by the Board, to reflect changes in the credit union’s insured shares.’’ Subsec. (c)(2), (3). Pub. L. 105–219, § 302(a)(3), added pars. (2) and (3) and struck out former pars. (2) and (3) which read as follows: ‘‘(2) Each insured credit union, at such time as the Board prescribes, shall pay to the fund a premium charge for insurance equal to one–twelfth of 1 per cen- tum of the total amount of the insured shares in such credit union at the close of the preceding insurance year. ‘‘(3) When, at the end of a given insurance year, any loans to the fund from the Federal Government and the interest thereon have been repaid and the equity of the fund exceeds the normal operating level, the Board shall effect for that insurance year a pro rata distribu- tion to insured credit unions of an amount sufficient to reduce the equity in the fund to its normal operating level.’’ Subsec. (c)(4). Pub. L. 105–219, § 302(a)(4), added par. (4). Subsec. (h). Pub. L. 105–219, § 302(a)(5), added subsec. (h) and struck out former subsec. (h) which read as fol- lows: ‘‘For the purposes of this section— ‘‘(1) the term ‘insurance year’ means the period be- ginning on January 1 and ending on the following De- cember 31, both dates inclusive, unless otherwise pre- scribed by the Board; ‘‘(2) the term ‘normal operating level’, when applied to the fund, means an amount equal to 1.3 per centum of the aggregate amount of the insured shares in all insured credit unions, or such lower level as the Board may determine; and ‘‘(3) the term ‘insured shares’ when applied to this section includes share, share draft, share certificate and other similar accounts as determined by the Board, but does not include amounts in excess of the insured account limit set forth in section 1787(c)(1) of this title.’’ 1992—Subsec. (d)(2). Pub. L. 102–550, in subpar. (C), substituted ‘‘insured credit union’’ for ‘‘insured deposi- tory institution’’, struck out ‘‘or’’ after ‘‘subsection (b)(1)’’, and substituted ‘‘Board’’ for ‘‘Corporation’’ and ‘‘assets of the credit union’’ for ‘‘assets of the institu- tion’’, in subpar. (D), substituted ‘‘Board’’ for ‘‘Cor- poration’’, and in subpar. (E), substituted ‘‘insured credit union’’ for ‘‘insured depository institution’’ and ‘‘if the credit union’’ for ‘‘if the institution’’. 1991—Subsec. (d)(2). Pub. L. 102–242 amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘Any insured credit union which willfully fails or re- fuses to file any certified statement or to pay its de- posit or any premium charge for insurance required under this subchapter shall be subject to a penalty of not more than $100 for each day that such violation continues, which penalty the Board may recover for its use. The provisions of this paragraph shall not be appli- cable in any case in which the refusal to pay its deposit or the premium charge for insurance is due to a dispute between the insured credit union and the Board over the amount of its deposit or the premium charge due to the fund if the credit union deposits security satisfac- tory to the Board for payment of its deposit or the pre- mium charge upon final determination of the issue.’’ 1989—Subsec. (a)(3). Pub. L. 101–73, § 911(f), inserted provisions relating to penalties and agency hearings and struck out at end: ‘‘Every insured credit union which willfully fails to make or publish any such report within ten days shall be subject to a penalty of not more than $100 for each day of such failure, recoverable by the Board for its use.’’ Subsec. (a)(6). Pub. L. 101–73, § 919, added par. (6). Subsec. (a)(7). Pub. L. 101–73, § 931(b), added par. (7). 1984—Subsec. (b). Pub. L. 98–369, § 2802, in amending subsec. (b) generally, revised existing provisions into numbered pars. (1) to (3) and in par. (1) substituted ‘‘For each insurance year, each insured credit union which became insured prior to the beginning of that year shall file with the Board, at such time as the Board prescribes, a certified statement showing the total amount of insured shares in the credit union at the close of the preceding insurance year and both the amount of its deposit or adjustment thereof and the amount of the premium charge for insurance due to the fund for that year, both as computed under subsection Page 892 TITLE 12—BANKS AND BANKING § 1783 (c) of this section.’’ for ‘‘On or before January 31 of each insurance year, each insured credit union which became insured prior to the beginning of that year shall file with the Board a certified statement showing the total amount of the member accounts in the credit union at the close of the preceding insurance year and the amount of the premium charge for insurance due to the fund for that year, as computed under subsection (c) of this section.’’ Subsec. (c)(1). Pub. L. 98–369, § 2803(6), added par. (1). Former par. (1) redesignated (2). Subsec. (c)(2). Pub. L. 98–369, § 2803(3)–(5), substituted ‘‘Each insured credit union, at such time as the Board prescribes’’ for ‘‘Except as provided in paragraph (2) of this subsection, each insured credit union, on or before January 31 of each insurance year’’ and ‘‘insured shares’’ for ‘‘member accounts’’. Pub. L. 98–369, § 2803(1), (2), redesignated par. (1) as (2). Former par. (2), which related to payment of a pre- mium charge for insurance by each credit union in ex- istence prior to Oct. 19, 1970, and insured under this subchapter after January 1 of any insurance, was struck out. Subsec. (c)(3). Pub. L. 98–369, § 2804, amended par. (3) generally. Prior to amendment, par. (3) read as follows: ‘‘When any loans to the fund from the Federal Govern- ment and the interest thereon have been repaid and the amount in the fund equals or exceeds the normal oper- ating level, the Board may reduce the premium charge for insurance, but not below the amount necessary, in its judgment, to maintain the fund at the normal oper- ating level. Any such reduction shall be effective only so long as the amount in the fund equals or exceeds the normal operating level and no loan to the fund from the Federal Government is outstanding.’’ Subsec. (c)(4). Pub. L. 98–369, § 2805, struck out par. (4) which provided that ‘‘If in any year expenditures from the fund exceed the income of the fund, the Board may require each insured credit union to pay to the fund for such year, in addition to the regular premium charge for insurance payable under paragraph (1), (2), or (3) of this subsection, a special premium charge which shall not exceed an amount equal to the amount of the reg- ular premium charge’’. Subsec. (d)(1), (2). Pub. L. 98–369, § 2806(a)(1), inserted ‘‘its deposit or’’ wherever appearing. Subsec. (d)(3). Pub. L. 98–369, § 2806(a), inserted ‘‘its deposit or’’ wherever appearing and substituted ‘‘in- sured shares’’ for ‘‘member accounts’’. Subsec. (e). Pub. L. 98–369, § 2806(a)(1), (b)(1), (2), in- serted ‘‘its deposit or’’ and ‘‘deposit or’’ wherever ap- pearing. Subsec. (f). Pub. L. 98–369, § 2806(a)(1), (b)(3), inserted ‘‘its deposit or’’ and ‘‘deposit or’’. Subsec. (g). Pub. L. 98–369, § 2807, inserted ‘‘and de- posit’’ and ‘‘deposit or adjustment thereof or any’’ in two places. Subsec. (h)(1). Pub. L. 98–369, § 2808, inserted ‘‘, unless otherwise prescribed by the Board’’. Subsec. (h)(2). Pub. L. 98–369, § 2809, in amending par. (2) generally, substituted ‘‘fund, means an amount equal to 1.3 per centum of the aggregate amount of the insured shares in all insured credit unions, or such lower level as the Board may determine’’ for ‘‘Fund, means an amount equal to 1 per centum of the aggre- gate amount of the member accounts in all insured credit unions’’. Subsec. (h)(3). Pub. L. 98–369, § 2810, amended par. (3) generally. Prior to amendment, par. (3) read as follows: ‘‘the term ‘members accounts’ when applied to the pre- mium charge for insurance of accounts shall not in- clude amounts received from other credit unions, the accounts of which are federally insured or insured or guaranteed by a fund established under State law or regulation for this purpose, in excess of the insured ac- count limit set forth in section 1787(c)(1) of this title;’’. 1983—Subsec. (c)(1). Pub. L. 97–457 substituted ‘‘para- graph (2)’’ for ‘‘paragraphs (2) and (3)’’ after ‘‘except as provided in’’. 1982—Subsec. (c)(3). Pub. L. 97–320, § 529, redesignated par. (4) as (3). Former (3), which set forth rules for com- puting the insurance premiums due from credit unions chartered after Oct. 19, 1970, that became insured in the insurance year of their charter, was struck out. Subsec. (c)(4), (5). Pub. L. 97–320, § 529, redesignated par. (5) as (4). Former par. (4) redesignated (3). Subsec. (c)(6). Pub. L. 97–320, § 529, struck out par. (6) which set forth rules for payment of insurance rebates to insured credit unions closed for liquidation because of insolvency or otherwise. Subsec. (h)(3). Pub. L. 97–320, § 528, substituted ‘‘ ‘members accounts’ ’’ for ‘‘ ‘member account’ ’’, struck out ‘‘federally insured’’ after ‘‘received from other’’, and inserted ‘‘, the accounts of which are federally in- sured or insured or guaranteed by a fund established under State law or regulation for this purpose,’’ after ‘‘credit unions’’. 1978—Subsec. (a). Pub. L. 95–630, §§ 502(b), 505(a), sub- stituted ‘‘Board’’ for ‘‘Administrator’’ wherever appear- ing; ‘‘it’’ for ‘‘him’’ and ‘‘such officer’s knowledge’’ for ‘‘his knowledge’’ in par. (1); ‘‘reports as it’’ for ‘‘reports as he’’ in par. (2); and ‘‘it may direct’’ for ‘‘he may di- rect’’ and ‘‘for its use’’ for ‘‘for his use’’ in par. (3). Subsecs. (b) to (g). Pub. L. 95–630, § 502(b), substituted ‘‘Board’’ for ‘‘Administrator’’ wherever appearing, and ‘‘its’’ for ‘‘his’’ where appropriate. Subsec. (h)(3). Pub. L. 95–630, § 505(b), substituted ‘‘The term ‘member account’ when’’ for ‘‘the term ‘members accounts’ when’’, struck out ‘‘of federally in- sured credit unions’’ after ‘‘of accounts’’, and inserted ‘‘received from other federally insured credit unions’’ after ‘‘not include amounts’’. 1974—Subsec. (h)(3). Pub. L. 93–383 added par. (3). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–219, title III, § 302(b), Aug. 7, 1998, 112 Stat. 934, provided that: ‘‘This section [amending this sec- tion] and the amendments made by this section shall become effective on January 1 of the first calendar year beginning more than 180 days after the date of enact- ment of this Act [Aug. 7, 1998].’’ EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improve- ment Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102–550, set out as a note under section 191 of this title. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 911(f) of Pub. L. 101–73 applica- ble with respect to reports filed or required to be filed after Aug. 9, 1989, see section 911(i) of Pub. L. 101–73, set out as a note under section 161 of this title. 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. § 1783. National Credit Union Share Insurance Fund (a) Creation; use of fund There is hereby created in the Treasury of the United States a National Credit Union Share In- surance Fund which shall be used by the Board as a revolving fund for carrying out the purposes of this subchapter. Money in the fund shall be available upon requisition by the Board, without fiscal year limitation, for making payments of insurance under section 1787 of this title, for providing assistance and making expenditures under section 1788 of this title in connection with the liquidation or threatened liquidation of