12 U.S.C. § 1783 — National Credit Union Share Insurance

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 Page 893 TITLE 12—BANKS AND BANKING § 1783 1 See References in Text note below. insured credit unions, and for such administra- tive and other expenses incurred in carrying out the purposes of this subchapter as it may deter- mine to be proper. (b) Deposit of deposits and premium charges, fees and penalties All deposits and premium charges for insur- ance paid pursuant to the provisions of section 1782 of this title and all fees for examinations and all penalties collected by the Board under any provision of this subchapter shall be depos- ited in the National Credit Union Share Insur- ance Fund. The Board shall report annually to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives with respect to the op- erating level of the fund. Such report shall also include the results of an independent audit of the fund. (c) Investment authorization The Board may authorize the Secretary of the Treasury to invest and reinvest such portions of the fund as the Board may determine are not needed for current operations in any interest- bearing securities of the United States or in any securities guaranteed as to both principal and interest by the United States or in bonds or other obligations which are lawful investments for fiduciary, trust, and public funds of the United States, and the income therefrom shall constitute a part of the fund. (d) Loans to fund, limitation and terms; interest accrual; determination of interest rate (1) If, in the judgment of the Board, a loan to the insurance fund, or to the stabilization fund described in section 1790e of this title, is re- quired at any time for purposes of this sub- chapter,1 the Secretary of the Treasury shall make the loan, but loans under this paragraph shall not exceed in the aggregate $6,000,000,000 outstanding at any one time. Except as other- wise provided in this subsection, section 1790e of this title, and in subsection (e) of this section, each loan under this paragraph shall be made on such terms as may be fixed by agreement be- tween the Board and the Secretary of the Treas- ury. (2) Interest shall accrue to the Treasury on the amount of any outstanding loans made to the fund pursuant to paragraph (1) of this subsection on the basis of the average daily amount of such outstanding loans determined at the close of each fiscal year with respect to such year, and the Board shall pay the interest so accruing into the Treasury as miscellaneous receipts annually from the fund. The Secretary of the Treasury shall determine the applicable interest rate in advance by calculating the average yield to ma- turity (on the basis of daily closing market bid quotations during the month of September of the preceding fiscal year) on outstanding mar- ketable public debt obligations of the United States having a maturity date of five or less years from the first day of such month of Sep- tember and by adjusting such yield to the near- est one-eighth of 1 per centum. (3) For the purpose of making loans under paragraph (1) of this subsection, the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds of the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under chapter 31 of title 31 are hereby extended to include such loans. All loans and repayments under this section shall be treated as public debt transactions of the United States. (4) TEMPORARY INCREASES AUTHORIZED.— (A) RECOMMENDATIONS FOR INCREASE.—Dur- ing the period beginning on May 20, 2009, and ending on December 31, 2010, if, upon the writ- ten recommendation of the Board (upon a vote of not less than two-thirds of the members of the Board) and the Board of Governors of the Federal Reserve System (upon a vote of not less than two-thirds of the members of such Board), the Secretary of the Treasury (in con- sultation with the President) determines that additional amounts above the $6,000,000,000 amount specified in paragraph (1) are nec- essary, such amount shall be increased to the amount so determined to be necessary, not to exceed $30,000,000,000. (B) REPORT REQUIRED.—If the borrowing au- thority of the Board is increased above $6,000,000,000 pursuant to subparagraph (A), the Board shall promptly submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representa- tives describing the reasons and need for the additional borrowing authority and its in- tended uses. (e) Excess funds credited against loans So long as any loans to the fund are out- standing, the Board shall from time to time, not less often than annually, determine whether the balance in the fund is in excess of the amount which, in its judgment, is needed to meet the re- quirements of the fund and shall pay such excess to the Secretary of the Treasury, to be credited against the loans to the fund. (f) Authorization for fund to borrow from Cen- tral Liquidity Facility In addition to the authority to borrow from the Secretary of the Treasury provided in sub- section (d), if in the judgment of the Board, a loan to the fund is required at any time for car- rying out the purposes of this subchapter, the fund is authorized to borrow from the National Credit Union Administration Central Liquidity Facility. (June 26, 1934, ch. 750, title II, § 203, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 999; amended Pub. L. 94–273, § 2(4), Apr. 21, 1976, 90 Stat. 375; Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 97–320, title V, § 530, Oct. 15, 1982, 96 Stat. 1535; Pub. L. 98–369, div. B, title VIII, § 2811, July 18, 1984, 98 Stat. 1206; Pub. L. 111–22, div. A, title II, § 204(c)(2), (3), May 20, 2009, 123 Stat. 1650.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsec. (d)(1), probably should have been a reference to this title in the origi- 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.