12 U.S.C. § 1784 — Examination of insured credit unions

Page 894 TITLE 12—BANKS AND BANKING § 1784 nal, meaning title II of act June 26, 1934, ch. 750, which is classified generally to this subchapter. CODIFICATION In subsec. (d)(3), ‘‘chapter 31 of title 31’’ substituted for ‘‘the Second Liberty Bond Act, as amended’’ on au- thority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. AMENDMENTS 2009—Subsec. (d)(1). Pub. L. 111–22, § 204(c)(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: ‘‘If, in the judgment of the Board, a loan to the fund is required at any time for carrying out the pur- poses of this subchapter, the Secretary of the Treasury shall make the loan, but loans under this paragraph shall not exceed in the aggregate $100,000,000 out- standing at any one time. Except as otherwise provided in this subsection and in subsection (e) of this section, each loan under this paragraph shall be made on such terms as may be fixed by agreement between the Board and the Secretary of the Treasury.’’ Subsec. (d)(4). Pub. L. 111–22, § 204(c)(3), added par. (4). 1984—Subsec. (b). Pub. L. 98–369 inserted ‘‘deposits and’’ and provisions relating to annual reporting re- quirements by the Board. 1982—Subsec. (f). Pub. L. 97–320 added subsec. (f). 1978—Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Admin- istrator’’ wherever appearing and ‘‘it’’ and ‘‘its’’ for ‘‘he’’ and ‘‘his’’, respectively, where appropriate. 1976—Subsec. (d)(2). Pub. L. 94–273 substituted ‘‘Sep- tember’’ for ‘‘June’’ wherever appearing. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. 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. § 1784. Examination of insured credit unions (a) Examiners and claim agents; powers; report by examiner; jurisdiction of court The Board shall appoint examiners who shall have power, on its behalf, to examine any in- sured credit union, any credit union making ap- plication for insurance of its member accounts, or any closed insured credit union whenever in the judgment of the Board an examination is necessary to determine the condition of any such credit union for insurance purposes. Each examiner shall have power to make a thorough examination of all of the affairs of the credit union and shall make a full and detailed report of the condition of the credit union to the Board. The Board in like manner shall appoint claim agents who shall have power to inves- tigate and examine all claims for insured mem- ber accounts. Each claim agent shall have power to administer oaths and affirmations, to exam- ine and to take and preserve testimony under oath as to any matter in respect to claims for insured accounts, and to issue subpenas and sub- penas duces tecum and, for the enforcement thereof, to apply to the United States district court for the judicial district or the United States court in any territory in which the prin- cipal office of the credit union is located or in which the witness resides or carries on business. Such courts shall have jurisdiction and power to order and require compliance with any such sub- pena. (b) Power of Board; jurisdiction of court In connection with examinations of insured credit unions, or with other types of investiga- tions to determine compliance with applicable law and regulations, the Board, or its designated representatives, shall have power to administer oaths and affirmations, to examine and to take and preserve testimony under oath as to any matter in respect of the affairs of any such cred- it union, and to issue subpenas and subpenas duces tecum and to exercise such other powers as are set forth in section 1786(p) of this title and, for the enforcement thereof, to apply to the United States district court for the judicial dis- trict or the United States Court in any territory in which the principal office of the credit union is located or in which the witness resides or car- ries on business. Such courts shall have jurisdic- tion and power to order and require compliance with any such subpena. (c) Court orders enforcing subpenas; immunity In cases of refusal to obey a subpena issued to, or contumacy by, any person, the Board may in- voke the aid of any court of the United States within the jurisdiction of which such hearing, examination, or investigation is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, records, or other papers. Such court may issue an order requiring such person to appear before the Board, or before a person designated by it, there to produce records, if so ordered, or to give tes- timony touching the matter in question. Any failure to obey such order of the court may be punished by such court as a contempt thereof. All process in any such case may be served in the judicial district whereof such person is an inhabitant or carries on business or wherever he may be found. No person shall be excused from attending and testifying or from producing books, records, or other papers in obedience to a subpena issued under the authority of this sub- chapter on the ground that the testimony or evi- dence, documentary or otherwise, required of him may tend to incriminate him or subject him to penalty or forfeiture, but no individual shall be prosecuted or subject to any penalty or for- feiture for or on account of any transaction, matter, or thing concerning which he is com- pelled to testify or produce evidence, documen- tary or otherwise, after having claimed his privilege against self-incrimination, except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying. Page 895 TITLE 12—BANKS AND BANKING § 1785 (d) Administration acceptance of State board re- ports; reports of Board furnished to State board The Administration may accept any report of examination made by or to any commission, board, or authority having supervision of a State-chartered credit union and may furnish to any such commission, board, or authority re- ports of examination made on behalf of the Board. (e) Flood insurance compliance by insured credit unions (1) Examination The Board shall, during each examination conducted under this section, determine whether the insured credit union is complying with the requirements of the national flood in- surance program. (2) Report (A) Requirement Not later than 1 year after September 23, 1994, and biennially thereafter for the next 4 years, the Board shall submit a report to the Congress on compliance by insured credit unions with the requirements of the national flood insurance program. (B) Contents The report shall include a description of the methods used to determine compliance, the number of insured credit unions exam- ined during the reporting year, a listing and total number of insured credit unions found not to be in compliance, actions taken to correct incidents of noncompliance, and an analysis of compliance, including a discus- sion of any trends, patterns, and problems, and recommendations regarding reasonable actions to improve the efficiency of the ex- aminations processes. (f) Access to liquidity The Board shall— (1) periodically assess the potential liquidity needs of each insured credit union, and the op- tions that the credit union has available for meeting those needs; and (2) periodically assess the potential liquidity needs of insured credit unions as a group, and the options that insured credit unions have available for meeting those needs. (g) Sharing information with Federal reserve banks The Board shall, for the purpose of facilitating insured credit unions’ access to liquidity, make available to the Federal reserve banks (subject to appropriate assurances of confidentiality) in- formation relevant to making advances to such credit unions, including the Board’s reports of examination. (June 26, 1934, ch. 750, title II, § 204, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 1001; amended Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 101–73, title IX, § 915(a), Aug. 9, 1989, 103 Stat. 486; Pub. L. 103–325, title V, § 529(b), Sept. 23, 1994, 108 Stat. 2266; Pub. L. 105–219, title III, § 303, Aug. 7, 1998, 112 Stat. 934; Pub. L. 109–351, title VII, § 726(13), Oct. 13, 2006, 120 Stat. 2002.) Editorial Notes AMENDMENTS 2006—Subsec. (b). Pub. L. 109–351 substituted ‘‘such other powers’’ for ‘‘such others powers’’. 1998—Subsecs. (f), (g). Pub. L. 105–219 added subsecs. (f) and (g). 1994—Subsec. (e). Pub. L. 103–325 added subsec. (e). 1989—Subsec. (b). Pub. L. 101–73, § 915(a)(1), inserted ‘‘or with other types of investigations to determine compliance with applicable law and regulations,’’ after ‘‘insured credit unions,’’. Pub. L. 101–73, § 915(a)(2), which directed the insertion of ‘‘and to exercise such others powers as are set forth in section 1786(p) of this title’’ after ‘‘subpena duces tecum’’, was executed by making the insertion after ‘‘subpenas duces tecum’’, as the probable intent of Con- gress. 1978—Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Admin- istrator’’ wherever appearing, and ‘‘it’’ and ‘‘its’’ for ‘‘him’’ and ‘‘his’’, respectively, where appropriate. 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. § 1785. Requirements governing insured credit unions (a) Insurance logo (1) Insured credit unions (A) In general Each insured credit union shall display at each place of business maintained by that credit union a sign or signs relating to the insurance of the share accounts of the insti- tution, in accordance with regulations to be prescribed by the Board. (B) Statement to be included Each sign required under subparagraph (A) shall include a statement that insured share accounts are backed by the full faith and credit of the United States Government. (2) Regulations The Board shall prescribe regulations to carry out this subsection, including regula- tions governing the substance of signs re- quired by paragraph (1) and the manner of dis- play or use of such signs. (3) Penalties For each day that an insured credit union continues to violate this subsection or any regulation issued under this subsection, it shall be subject to a penalty of not more than $100, which the Board may recover for its use. (b) Restrictions (1) Except as provided in paragraph (2), no in- sured credit union shall, without the prior ap- proval of the Board— (A) merge or consolidate with any non- insured credit union or institution; (B) assume liability to pay any member ac- counts in, or similar liabilities of, any non- insured credit union or institution; (C) transfer assets to any noninsured credit union or institution in consideration of the as- sumption of liabilities for any portion of the