12 U.S.C. § 1795a — Definitions

Page 950 TITLE 12—BANKS AND BANKING § 1795 1 So in original. The period probably should be a semicolon. (f) Investment of Stabilization Fund assets The Board may request the Secretary of the Treasury to invest such portion of the Stabiliza- tion Fund as is not, in the Board’s judgment, re- quired to meet the current needs of the Sta- bilization Fund. Such investments shall be made by the Secretary of the Treasury in public debt securities, with maturities suitable to the needs of the Stabilization Fund, as determined by the Board, and bearing interest at a rate determined by the Secretary of the Treasury, taking into consideration current market yields on out- standing marketable obligations of the United States of comparable maturity. (g) Reports The Board shall submit an annual report to Congress on the financial condition and the re- sults of the operation of the Stabilization Fund. The report is due to Congress within 30 days after each anniversary of the first advance made under subsection (c)(1). Because the Fund will use advances from the Treasury to meet cor- porate stabilization costs with full repayment of borrowings to Treasury at the Board’s discretion not due until 7 years from the initial advance, to the extent operating expenses of the Fund ex- ceed income, the financial condition of the Fund may reflect a deficit. With planned and required future repayments, the Board shall resolve all deficits prior to termination of the Fund. (h) Closing of Stabilization Fund Within 90 days following the seventh anniver- sary of the initial Stabilization Fund advance, or earlier at the Board’s discretion, the Board shall distribute any funds, property, or other as- sets remaining in the Stabilization Fund to the Insurance Fund and shall close the Stabilization Fund. If the Board extends the final repayment date as permitted under subsection (c)(3), the mandatory date for closing the Stabilization Fund shall be extended by the same number of days. (June 26, 1934, ch. 750, title II, § 217, as added Pub. L. 111–22, div. A, title II, § 204(f)(1), May 20, 2009, 123 Stat. 1651; amended Pub. L. 111–382, § 1, Jan. 4, 2011, 124 Stat. 4134.) Editorial Notes AMENDMENTS 2011—Subsec. (c)(3). Pub. L. 111–382, § 1(a), inserted ‘‘and any additional advances’’ before period at end. Subsec. (d). Pub. L. 111–382, § 1(b), added subsec. (d) and struck out former subsec. (d). Prior to amendment, text read as follows: ‘‘At least 90 days prior to each repayment described in subsection (c)(3), the Board shall set the amount of the upcoming repayment and determine if the Sta- bilization Fund will have sufficient funds to make the repayment. If the Stabilization Fund might not have sufficient funds to make the repayment, the Board shall assess each federally insured credit union a spe- cial premium due and payable within 60 days in an ag- gregate amount calculated to ensure the Stabilization Fund is able to make the repayment. The premium charge for each credit union shall be stated as a per- centage of its insured shares as represented on the credit union’s previous call report. The percentage shall be identical for each credit union. Any credit union that fails to make timely payment of the special premium is subject to the procedures and penalties de- scribed under subsections (d), (e), and (f) of section 1782 of this title.’’ SUBCHAPTER III—CENTRAL LIQUIDITY FACILITY § 1795. Congressional findings The Congress finds that the establishment of a National Credit Union Central Liquidity Facil- ity is needed to improve general financial sta- bility by meeting the liquidity needs of credit unions and thereby encourage savings, support consumer and mortgage lending, and provide basic financial resources to all segments of the economy. (June 26, 1934, ch. 750, title III, formerly subch. III, § 301, as added Pub. L. 95–630, title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3719; amended Pub. L. 96–221, title III, § 309(b)(1), Mar. 31, 1980, 94 Stat. 149.) Editorial Notes CODIFICATION Section 309(b)(1) of Pub. L. 96–221 redesignated subch. III as title III of act June 26, 1934, ch. 750, cited as a credit to this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 95–630, title XVIII, § 1806, Nov. 10, 1978, 92 Stat. 3724, provided that: ‘‘This title [enacting this sub- chapter and amending section 1757 of this title, section 709 of Title 18, Crimes and Criminal Procedure, and sec- tion 856 of former Title 31, Money and Finance] shall take effect on October 1, 1979.’’ SHORT TITLE For short title of title XVIII of Pub. L. 95–630, Nov. 10, 1978, 92 Stat. 3719, as the ‘‘National Credit Union Central Liquidity Facility Act’’, see section 1801 of Pub. L. 95–630, set out as a Short Title of 1978 Amend- ment note under section 1751 of this title. § 1795a. Definitions As used in this subchapter, the term— (1) ‘‘liquidity needs’’ means the needs of credit unions primarily serving natural per- sons for— (A) short-term adjustment credit available to assist in meeting temporary requirements for funds or to cushion more persistent out- flows of funds pending an orderly adjust- ment of credit union assets and liabilities; (B) seasonal credit available for longer pe- riods to assist in meeting seasonal needs for funds arising from a combination of ex- pected patterns of movement in share and deposit accounts and loans; and (C) protracted adjustment credit available in the event of unusual or emergency cir- cumstances of a longer term nature result- ing from national, regional or local difficul- ties.1 (2) ‘‘Central Liquidity Facility’’ or ‘‘Facil- ity’’ means the National Credit Union Central Liquidity Facility; (3) ‘‘paid-in and unimpaired capital and sur- plus’’ means the balance of the paid-in share Page 951 TITLE 12—BANKS AND BANKING § 1795c 2 So in original. The comma probably should be a semicolon. accounts and deposits as of a given date, less any loss that may have been incurred for which there is no reserve or which has not been charged against undivided earnings, plus the credit balance (or less the debit balance) of the undivided earnings account as of a given date, after all losses have been provided for and net earnings or net losses have been added thereto or deducted therefrom. Reserves shall not be considered as part of surplus,2 and (4) ‘‘member’’ means a Regular or an Agent member of the Facility. (June 26, 1934, ch. 750, title III, formerly subch. III, § 302, as added Pub. L. 95–630, title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3719; amended Pub. L. 96–221, title III, § 309(b)(1), (2), Mar. 31, 1980, 94 Stat. 149; Pub. L. 116–136, div. A, title IV, § 4016(a)(1), (b)(1)(A), Mar. 27, 2020, 134 Stat. 481, 482.) Editorial Notes CODIFICATION Section 309(b)(1) of Pub. L. 96–221 redesignated subch. III as title III of act June 26, 1934, ch. 750, cited as a credit to this section. AMENDMENTS 2020—Par. (1). Pub. L. 116–136, § 4016(b)(1)(A), inserted ‘‘primarily serving natural persons’’ after ‘‘credit unions’’ in introductory provisions. Pub. L. 116–136, § 4016(a)(1), struck out ‘‘primarily serving natural persons’’ after ‘‘credit unions’’ in intro- ductory provisions. 1980—Pub. L. 96–221, § 309(b)(2), substituted ‘‘title’’ for ‘‘subchapter’’, which for purposes of codification has been editorially translated as ‘‘subchapter’’, thereby requiring no further change in text. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–136, div. A, title IV, § 4016(b)(2), Mar. 27, 2020, 134 Stat. 482, as amended by Pub. L. 116–260, div. N, title V, § 540(a)(2), Dec. 27, 2020, 134 Stat. 2090, pro- vided that: ‘‘The amendments made by paragraph (1) [amending this section and sections 1795c and 1795e of this title] shall take effect on December 31, 2021.’’ EFFECTIVE DATE Section effective Oct. 1, 1979, see section 1806 of Pub. L. 95–630, set out as a note under section 1795 of this title. § 1795b. National Credit Union Administration Central Liquidity Facility; establishment; management; jurisdiction There is created the National Credit Union Administration Central Liquidity Facility. The Central Liquidity Facility, an instrumentality of the United States, shall exist within the Na- tional Credit Union Administration and be man- aged by the Board. The United States district court shall have original jurisdiction over any case to which the Board on behalf of the Facil- ity is a party, without regard to the amount in controversy. (June 26, 1934, ch. 750, title III, formerly subch. III, § 303, as added and amended Pub. L. 95–630, title V, § 502(b), title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3681, 3720; Pub. L. 96–221, title III, § 309(a)(4), (b)(1), Mar. 31, 1980, 94 Stat. 149; Pub. L. 98–369, div. B, title VIII, § 2813(a)(1), July 18, 1984, 98 Stat. 1206.) Editorial Notes CODIFICATION Section 309(b)(1) of Pub. L. 96–221 redesignated subch. III as title III of act June 26, 1934, ch. 750, cited as a credit to this section. AMENDMENTS 1984—Pub. L. 98–369 inserted ‘‘, an instrumentality of the United States,’’. 1980—Pub. L. 96–221, § 309(a)(4), substituted ‘‘Board’’ for ‘‘Administrator’’ in two places, such change having been made previously by Pub. L. 95–630. 1978—Pub. L. 95–630, § 502(b), substituted ‘‘Board’’ for ‘‘Administrator’’ in two places. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 effective Oct. 1, 1979, see section 2813(c) of Pub. L. 98–369, set out as an Effec- tive Date note under section 1795k of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment effective on expiration of 120 days after Nov. 10, 1978, and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title. EFFECTIVE DATE Section effective Oct. 1, 1979, see section 1806 of Pub. L. 95–630, set out as a note under section 1795 of this title. § 1795c. Membership (a) Credit unions serving natural persons A credit union primarily serving natural per- sons may be a Regular member of the Facility by subscribing to the capital stock of the Facil- ity in an amount not less than one-half of 1 per centum of the credit union’s paid-in and unimpaired capital and surplus. (b) Credit unions serving other credit unions A credit union or group of credit unions, pri- marily serving other credit unions, may be an Agent member of the Facility by— (1) obtaining the approval of the Board; (2) subscribing to the capital stock of the Facility in an amount not less than one-half of 1 per centum of the paid-in and unimpaired capital and surplus of all those credit unions which primarily serve natural persons, which are members of such credit union or of any credit union comprising such credit union group, and which are not regular members; (3) agreeing to comply with rules and regula- tions the Board shall prescribe with respect to, but not limited to, management quality, asset and liability safety and soundness, internal operating and control practices and proce- dures, and participation of natural persons in the affairs of such credit union or credit union group; and (4) agreeing to submit to the supervision of the Board which shall include, but not be lim- ited to, reporting requirements and periodic unrestricted examinations.