§ 1757. — Powers.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1757]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1757. Powers
A Federal credit union shall have succession in its corporate name
during its existence and shall have power--
(1) to make contracts;
(2) to sue and be sued;
(3) to adopt and use a common seal and alter the same at
pleasure;
(4) to purchase, hold, and dispose of property necessary or
incidental to its operations;
(5) to make loans, the maturities of which shall not exceed
twelve years except as otherwise provided herein, and extend lines
of credit to its members, to other credit unions, and to credit
union organizations and to participate with other credit unions,
credit union organizations, or financial organizations in making
loans to credit union members in accordance with the following:
(A) Loans to members shall be made in conformity with
criteria established by the board of directors: Provided, That--
(i) a residential real estate loan on a one-to-four-
family dwelling, including an individual cooperative unit,
that is or will be the principal residence of a credit union
member, and which is secured by a first lien upon such
dwelling, may have a maturity not exceeding thirty years or
such other limits as shall be set by the National Credit
Union Administration Board (except that a loan on an
individual cooperative unit shall be adequately secured as
defined by the Board), subject to the rules and regulations
of the Board;
(ii) a loan to finance the purchase of a mobile home,
which shall be secured by a first lien on such mobile home,
to be used by the credit union member as his residence, a
loan for the repair, alteration, or improvement of a
residential dwelling which is the residence of a credit
union member, or a second mortgage loan secured by a
residential dwelling which is the residence of a credit
union member, shall have a maturity not to exceed 15 years
or any longer term which the Board may allow;
(iii) a loan secured by the insurance or guarantee of,
or with advance commitment to purchase the loan by, the
Federal Government, a State government, or any agency of
either may be made for the maturity and under the terms and
conditions specified in the law under which such insurance,
guarantee, or commitment is provided;
(iv) a loan or aggregate of loans to a director or
member of the supervisory or credit committee of the credit
union making the loan which exceeds $20,000 plus pledged
shares, be approved by the board of directors;
(v) loans to other members for which directors or
members of the supervisory or credit committee act as
guarantor or endorser be approved by the board of directors
when such loans standing alone or when added to any
outstanding loan or loans of the guarantor or endorser
exceeds $20,000;
(vi) the rate of interest may not exceed 15 per centum
per annum on the unpaid balance inclusive of all finance
charges, except that the Board may establish--
(I) after consultation with the appropriate
committees of the Congress, the Department of Treasury,
and the Federal financial institution regulatory
agencies, an interest rate ceiling exceeding such 15 per
centum per annum rate, for periods not to exceed 18
months, if it determines that money market interest
rates have risen over the preceding six-month period and
that prevailing interest rate levels threaten the safety
and soundness of individual credit unions as evidenced
by adverse trends in liquidity, capital, earnings, and
growth; and
(II) a higher interest rate ceiling for Agent
members for the Central Liquidity Facility in carrying
out the provisions of subchapter III of this chapter for
such periods as the Board may authorize;
(vii) the taking, receiving, reserving, or charging of a
rate of interest greater than is allowed by this paragraph,
when knowingly done, shall be deemed a forfeiture of the
entire interest which the note, bill, or other evidence of
debt carries with it, or which has been agreed to be paid
thereon. If such greater rate of interest has been paid, the
person by whom it has been paid, or his legal
representatives, may recover back from the credit union
taking or receiving the same, in an action in the nature of
an action of debt, the entire amount of interest paid; but
such action must be commenced within two years from the time
the usurious collection was made;
(viii) a borrower may repay his loan, prior to maturity
in whole or in part on any business day without penalty,
except that on a first or second mortgage loan a Federal
credit union may require that any partial prepayments (I) be
made on the date monthly installments are due, and (II) be
in the amount of that part of one or more monthly
installments which would be applicable to principal;
(ix) loans shall be paid or amortized in accordance with
rules and regulations prescribed by the Board after taking
into account the needs or conditions of the borrowers, the
amounts and duration of the loans, the interests of the
members and the credit unions, and such other factors as the
Board deems relevant;
(x) loans must be approved by the credit committee or a
loan officer, but no loan may be made to any member if, upon
the making of that loan, the member would be indebted to the
Federal credit union upon loans made to him in an aggregate
amount which would exceed 10 per centum of the credit
union's unimpaired capital and surplus.
(B) A self-replenishing line of credit to a borrower may be
established to a stated maximum amount on certain terms and
conditions which may be different from the terms and conditions
established for another borrower.
(C) Loans to other credit unions shall be approved by the
board of directors.
(D) Loans to credit union organizations shall be approved by
the board of directors and shall not exceed 1 per centum of the
paid-in and unimpaired capital and surplus of the credit union.
A credit union organization means any organization as determined
by the Board, which is established primarily to serve the needs
of its member credit unions, and whose business relates to the
daily operations of the credit unions they serve.
(E) Participation loans with other credit unions, credit
union organizations, or financial organizations shall be in
accordance with written policies of the board of directors:
Provided, That a credit union which originates a loan for which
participation arrangements are made in accordance with this
subsection shall retain an interest of at least 10 per centum of
the face amount of the loan.
(6) to receive from its members, from other credit unions, from
an officer, employee, or agent of those nonmember units of Federal,
Indian tribal, State, or local governments and political
subdivisions thereof enumerated in section 1787 of this title and in
the manner so prescribed, from the Central Liquidity Facility, and
from nonmembers in the case of credit unions serving predominately
low-income members (as defined by the Board) payments, representing
equity, on--
(A) shares which may be issued at varying dividend rates;
(B) share certificates which may be issued at varying
dividend rates and maturities; and
(C) share draft accounts authorized under section 1785(f) of
this title;
subject to such terms, rates, and conditions as may be established
by the board of directors, within limitations prescribed by the
Board.
(7) to invest its funds (A) in loans exclusively to members; (B)
in obligations of the United States of America, or securities fully
guaranteed as to principal and interest thereby; (C) in accordance
with rules and regulations prescribed by the Board, in loans to
other credit unions in the total amount not exceeding 25 per centum
of its paid-in and unimpaired capital and surplus; (D) in shares or
accounts of savings and loan associations or mutual savings banks,
the accounts of which are insured by the Federal Savings and Loan
Insurance Corporation or the Federal Deposit Insurance Corporation;
(E) in obligations issued by banks for cooperatives, Federal land
banks, Federal intermediate credit banks, Federal home loan banks,
the Federal Home Loan Bank Board, or any corporation designated in
section 9101(3) of title 31 as a wholly owned Government
corporation; or in obligations, participations, or other instruments
of or issued by, or fully guaranteed as to principal and interest
by, the Federal National Mortgage Association or the Government
National Mortgage Association, or in mortgages, obligations, or
other securities which are or ever have been sold by the Federal
Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of
this title; or in obligations or other instruments or securities of
the Student Loan Marketing Association; or in obligations,
participations, securities, or other instruments of, or issued by,
or fully guaranteed as to principal and interest by any other agency
of the United States and a Federal credit union may issue and sell
securities which are guaranteed pursuant to section 1721(g) of this
title; (F) in participation certificates evidencing beneficial
interests in obligations, or in the right to receive interest and
principal collections therefrom, which obligations have been
subjected by one or more Government agencies to a trust or trusts
for which any executive department, agency, or instrumentality of
the United States (or the head thereof) has been named to act as
trustee; (G) in shares or deposits of any central credit union in
which such investments are specifically authorized by the board of
directors of the Federal credit union making the investment; (H) in
shares, share certificates, or share deposits of federally insured
credit unions; (I) in the shares, stocks, or obligations of any
other organization, providing services which are associated with the
routine operations of credit unions, up to 1 per centum of the total
paid in and unimpaired capital and surplus of the credit union with
the approval of the Board: Provided, however, That such authority
does not include the power to acquire control directly or
indirectly, of another financial institution, nor invest in shares,
stocks or obligations of an insurance company, trade association,
liquidity facility or any other similar organization, corporation,
or association, except as otherwise expressly provided by this
chapter; (J) in the capital stock of the National Credit Union
Central Liquidity Facility; (K) investments in obligations of, or
issued by, any State or political subdivision thereof (including any
agency, corporation, or instrumentality of a State or political
subdivision), except that no credit union may invest more than 10
per centum of its unimpaired capital and surplus in the obligations
of any one issuer (exclusive of general obligations of the
issuer).\1\
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\1\ So in original. The period probably should be a semicolon.
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(8) to make deposits in national banks and in State banks, trust
companies, and mutual savings banks operating in accordance with the
laws of the State in which the Federal credit union does business,
or in banks or institutions the accounts of which are insured by the
Federal Deposit Insurance Corporation or the Federal Savings and
Loan Insurance Corporation, and for Federal credit unions or credit
unions authorized by the Department of Defense operating suboffices
on American military installations in foreign countries or trust
territories of the United States to maintain demand deposit accounts
in banks located in those countries or trust territories, subject to
such regulations as may be issued by the Board and provided such
banks are correspondents of banks described in this paragraph;
(9) to borrow, in accordance with such rules and regulations as
may be prescribed by the Board, from any source, in an aggregate
amount not exceeding, except as authorized by the Board in carrying
out the provisions of subchapter III of this chapter, 50 per centum
of its paid-in and unimpaired capital and surplus: Provided, That
any Federal credit union may discount with or sell to any Federal
intermediate credit bank any eligible obligations up to the amount
of its paid-in and unimpaired capital;
(10) to levy late charges, in accordance with the bylaws, for
failure of members to meet promptly their obligations to the Federal
credit union;
(11) to impress and enforce a lien upon the shares and dividends
of any member, to the extent of any loan made to him and any dues or
charges payable by him;
(12) in accordance with rules and regulations prescribed by the
Board, to sell to members negotiable checks (including travelers
checks), money orders, and other similar money transfer instruments,
and to cash checks and money orders for members, for a fee;
(13) in accordance with rules and regulations prescribed by the
Board, to purchase, sell, pledge, or discount or otherwise receive
or dispose of, in whole or in part, any eligible obligations (as
defined by the Board) of its members and to purchase from any
liquidating credit union notes made by individual members of the
liquidating credit union at such prices as may be agreed upon by the
board of directors of the liquidating credit union and the board of
directors of the purchasing credit union, but no purchase may be
made under authority of this paragraph if, upon the making of that
purchase, the aggregate of the unpaid balances of notes purchased
under authority of this paragraph would exceed 5 per centum of the
unimpaired capital and surplus of the credit union;
(14) to sell all or a part of its assets to another credit
union, to purchase all or part of the assets of another credit union
and to assume the liabilities of the selling credit union and those
of its members subject to regulations of the Board;
(15) to invest in securities that--
(A) are offered and sold pursuant to section 77d(5) of title
15;
(B) are mortgage related securities (as that term is defined
in section 78c(a)(41) of title 15), subject to such regulations
as the Board may prescribe, including regulations prescribing
minimum size of the issue (at the time of initial distribution)
or minimum aggregate sales prices, or both; or
(C) are small business related securities (as defined in
section 78c(a)(53) of title 15), subject to such regulations as
the Board may prescribe, including regulations prescribing the
minimum size of the issue (at the time of the initial
distribution), the minimum aggregate sales price, or both;
(16) subject to such regulations as the Board may prescribe, to
provide technical assistance to credit unions in Poland and Hungary;
and
(17) to exercise such incidental powers as shall be necessary or
requisite to enable it to carry on effectively the business for
which it is incorporated.
(June 26, 1934, ch. 750, title I, Sec. 107, formerly Sec. 7, 48 Stat.
1218; Dec. 6, 1937, ch. 3, Sec. 2, 51 Stat. 4; July 31, 1946, ch. 711,
Sec. 1, 60 Stat. 744; 1947 Reorg. Plan No. 1, Sec. 401, eff. July 1,
1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, Secs. 1, 2, 62
Stat. 1091; Oct. 25, 1949, ch. 713, Sec. 1, 63 Stat. 890; May 13, 1952,
ch. 264, 66 Stat. 70; renumbered Sec. 8 and amended Pub. L. 86-354,
Sec. 1, Sept. 22, 1959, 73 Stat. 630; Pub. L. 88-353, Sec. 1, July 2,
1964, 78 Stat. 269; Pub. L. 89-429, Sec. 7, May 24, 1966, 80 Stat. 167;
Pub. L. 90-44, Secs. 2, 3, July 3, 1967, 81 Stat. 110, 111; Pub. L. 90-
375, Sec. 1(1)-(3), July 5, 1968, 82 Stat. 284; Pub. L. 90-448, title
VIII, Sec. 807(n), Aug. 1, 1968, 82 Stat. 545; Pub. L. 91-206,
Sec. 2(1), Mar. 10, 1970, 84 Stat. 49; renumbered title I, Sec. 107, and
amended Pub. L. 91-468, Secs. 1(2), 10, Oct. 19, 1970, 84 Stat. 994,
1017; Pub. L. 92-318, title I, Sec. 133(c)(4), June 23, 1972, 86 Stat.
270; Pub. L. 93-383, title VII, Sec. 721, title VIII, Sec. 805(c)(5),
Aug. 22, 1974, 88 Stat. 719, 727; Pub. L. 93-495, title I, Sec. 101(d),
Oct. 28, 1974, 88 Stat. 1502; Pub. L. 93-569, Sec. 6, Dec. 31, 1974, 88
Stat. 1866; Pub. L. 95-22, title III, Secs. 302, 303, Apr. 19, 1977, 91
Stat. 49, 51; Pub. L. 95-630, title V, Sec. 502(b), title XVIII,
Sec. 1803, Nov. 10, 1978, 92 Stat. 3681, 3723; Pub. L. 96-153, title
III, Sec. 323(d), Dec. 21, 1979, 93 Stat. 1120; Pub. L. 96-161, title I,
Sec. 103(b), Dec. 28, 1979, 93 Stat. 1234; Pub. L. 96-221, title III,
Secs. 305(b), 307, 309(a)(1), 310, Mar. 31, 1980, 94 Stat. 146-149; Pub.
L. 97-320, title V, Secs. 506-514, 516-518, Oct. 15, 1982, 96 Stat.
1528-1530; Pub. L. 97-457, Secs. 25, 26, Jan. 12, 1983, 96 Stat. 2510;
Pub. L. 98-440, title I, Sec. 105(b), Oct. 3, 1984, 98 Stat. 1691; Pub.
L. 98-479, title II, Sec. 206, Oct. 17, 1984, 98 Stat. 2234; Pub. L.
100-86, title VII, Secs. 702, 703, Aug. 10, 1987, 101 Stat. 652; Pub. L.
101-179, title II, Sec. 206(b), Nov. 28, 1989, 103 Stat. 1311; Pub. L.
103-325, title II, Sec. 206(b), Sept. 23, 1994, 108 Stat. 2199; Pub. L.
104-208, div. A, title II, Sec. 2306, Sept. 30, 1996, 110 Stat. 3009-
426.)
Codification
In par. (7), ``section 9101(3) of title 31'' substituted for
``section 101 of the Government Corporation Control Act [31 U.S.C.
846]'' on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96
Stat. 1067, the first section of which enacted Title 31, Money and
Finance.
Amendments
1996--Par. (5)(A)(iv), (v). Pub. L. 104-208 substituted ``$20,000''
for ``$10,000''.
1994--Par. (15)(C). Pub. L. 103-325 added subpar. (C).
1989--Pars. (16), (17). Pub. L. 101-179 added par. (16) and
redesignated former par. (16) as (17).
1987--Par. (5)(A)(ii). Pub. L. 100-86, Sec. 702, substituted ``15
years or any longer term which the Board may allow'' for ``fifteen years
unless such loan is insured or guaranteed as provided in subparagraph
(iii)''.
Par. (6). Pub. L. 100-86, Sec. 703, inserted ``, representing
equity,'' after ``payments''.
1984--Par. (5)(A)(ii). Pub. L. 98-479 inserted ``a loan for the
repair, alteration, or improvement of a residential dwelling which is
the residence of a credit union member,''.
Pars. (15), (16). Pub. L. 98-440, Sec. 105(b), added par. (15) and
redesignated former par. (15) as (16).
1983--Par. (5)(A)(i). Pub. L. 97-457, Sec. 25, substituted
``Administration'' for ``Association'' after ``National Credit Union''.
Par. (7)(K). Pub. L. 97-457, Sec. 26, redesignated cl. (L) as (K)
and substituted a period for ``; and'' at end.
1982--Par. (5)(A)(i). Pub. L. 97-320, Secs. 507-509, substituted
``on'' for ``which is made to finance the acquisition of'' after ``real
estate loan'' and ``that is or will be'' for ``for'' after ``cooperative
unit,'', struck out ``the sales price of which is not more than 150 per
centum of the median sales price of residential real property situated
in the geographical area (as determined by the board of directors) in
which the property is located,'' after ``credit union member'', and
inserted ``or such other limits as shall be set by the National Credit
Union Association Board'' after ``not exceeding thirty years''.
Par. (5)(A)(ii). Pub. L. 97-320, Sec. 510, substituted ``or a second
mortgage loan secured by a residential dwelling'' for ``or for the
repair, alteration, or improvement of a residential dwelling''.
Par. (5)(A)(iii). Pub. L. 97-320, Sec. 511, inserted ``, or with
advance commitment to purchase the loan by,'' and substituted
``insurance, guarantee, or commitment'' for ``insurance or guarantee''.
Par. (5)(A)(iv), (v). Pub. L. 97-320, Sec. 512, substituted
``$10,000'' for ``$5,000''.
Par. (5)(A)(viii). Pub. L. 97-320, Sec. 513, inserted condition
relating to partial prepayments of first or second mortgage loans.
Par. (5)(A)(x). Pub. L. 97-320, Sec. 506, added cl. (x).
Par. (7)(E). Pub. L. 97-320, Sec. 516, inserted provisions relating
to instruments issued or guaranteed by any other agency of the United
States, and that a Federal Credit Union may issue and sell securities
which are guaranteed pursuant to section 1721(g) of this title.
Par. (7)(L). Pub. L. 97-320, Sec. 514, added cl. (L).
Par. (8). Pub. L. 97-320, Sec. 517, inserted ``or in banks or
institutions the accounts of which are insured by the Federal Deposit
Insurance Corporation or the Federal Savings and Loan Insurance
Corporation,'' after ``in which the Federal Credit Union does
business,''.
Par. (12). Pub. L. 97-320, Sec. 518, substituted ``, money orders,
and other similar money transfer instruments'' for ``and money orders'',
and struck out ``which does not exceed the direct and indirect costs
incident to providing such service'' after ``for a fee''.
1980--Par. (5)(A)(i). Pub. L. 96-221, Sec. 309(a)(1), inserted
provisions relating to an individual cooperative unit.
Par. (5)(A)(vi). Pub. L. 96-221, Sec. 310, substituted provisions
setting forth maximum interest rate of 15 per centum per annum, subject
to specified exceptions, for provisions setting forth a maximum interest
rate of 1 per centum per month.
Par. (6). Pub. L. 96-221, Secs. 305(b), 307, revised existing
provisions respecting credit unions serving predominately low-income
members including provisions added by Pub. L. 96-161, and repealed the
amendment made by Pub. L. 96-161. See Repeals and Effective Date of 1980
Amendment notes below.
1979--Par. (6). Pub. L. 96-161 inserted ``, and to issue, deal in,
and accept share drafts as orders of withdrawal against shares, subject
to such terms, rates, and conditions as may be prescribed by the Board''
after ``within limitations prescribed by the Board''.
Pub. L. 96-153 substituted ``Federal, Indian tribal, State'' for
``Federal, State''.
1978--Par. (5). Pub. L. 95-630, Sec. 502(b), substituted ``Board''
for ``Administrator'' wherever appearing.
Par. (6). Pub. L. 95-630, Secs. 502(b), 1803(a), inserted ``from the
Central Liquidity Facility,'' after ``in the manner so prescribed,'' and
substituted ``Board'' for ``Administrator'' in two places.
Par. (7). Pub. L. 95-630, Secs. 502(b), 1803(b), substituted
``Board'' for ``Administrator'' wherever appearing and added cl. (J).
Par. (8). Pub. L. 95-630, Sec. 502(b), substituted ``Board'' for
``Administrator''.
Par. (9). Pub. L. 95-630, Secs. 502(b), 1803(c), substituted
``Board'' for ``Administrator'' and inserted ``, except as authorized by
the Board in carrying out the provisions of subchapter III of this
chapter,'' after ``amount not exceeding''.
Pars. (12) to (14). Pub. L. 95-630, Sec. 502(b), substituted
``Board'' for ``Administrator'' wherever appearing.
1977--Par. (5). Pub. L. 95-22, Sec. 302(a), among other changes,
inserted provisions permitting Federal credit unions to establish lines
of credit for their members, to raise the maximum loan maturity for most
loans to twelve years, and to make loans secured by a first lien and
made for the purchase of a one-to-four-family dwelling for the principal
residence of a credit union member.
Par. (6). Pub. L. 95-22, Secs. 302(b), 303(a), redesignated par. (7)
as (6) and substituted reference to payments on shares which may be
issued at varying dividend rates and payments on share certificates
which may be issued at varying dividend rates and maturities, subject to
such terms, rates, and conditions as may be established by the board of
directors, within limitations prescribed by the Administrator for
reference to payments on shares, share certificates, or share deposits.
Former par. (6), relating to the power of Federal credit unions to make
loans to its own directors and to its own supervisory credit committee,
was struck out.
Par. (7). Pub. L. 95-22, Sec. 303(b), redesignated par. (8) as (7)
and added subpar. (I). Former par. (7) redesignated (6).
Pars. (8) to (12). Pub. L. 95-22, Sec. 303(c), redesignated pars.
(9) to (13) as (8) to (12), respectively. Former par. (8) redesignated
(7).
Par. (13). Pub. L. 95-22, Sec. 303(c), (d), redesignated par. (14)
as (13) and inserted reference to purchase, sell, pledge, or discount or
otherwise receive or dispose of, in whole or in part, any eligible
obligations (as defined by the Administrator) of its members. Former
par. (13) redesignated (12).
Par. (14). Pub. L. 95-22, Sec. 303(e), added par. (14).
1974--Par. (5). Pub. L. 93-569 inserted ``except that loans made in
accordance with section 1703(b) of this title and section 1819 of title
38, may be for the maturities specified therein,'' after ``ten years''.
Par. (6). Pub. L. 93-383, Sec. 721(a), substituted provisions
relating to approval of loans by the board of directors for provisions
requiring annual reports to the Administrator with respect to loans and
setting forth conditions for the making of loans.
Par. (7). Pub. L. 93-495 inserted provisions relating to receipt of
payments of shares, etc., from officers, employees, or agents of
nonmember units of Federal, State, or local governments and political
subdivisions enumerated in section 1787 of this title.
Par. (8)(E). Pub. L. 93-383, Sec. 805(c)(5), inserted reference to
mortgages, obligations, or other securities sold by the Federal Home
Loan Mortgage Corporation pursuant to section 1454 or 1455 of this
title.
Par. (9). Pub. L. 93-383, Sec. 721(b), inserted provisions relating
to Federal credit unions or credit unions authorized by the Department
of Defense.
1972--Par. (8)(E). Pub. L. 92-318 authorized investments in
obligations or other instruments or securities of the Student Loan
Marketing Association.
1970--Pars. (5), (6), (8), (10), (13), (14), Pub. L. 91-206
substituted ``Administrator'' for ``Director'' wherever appearing.
Par. (7). Pub. L. 91-468, Sec. 10(1), permitted a Federal credit
union to not only receive from members but also from other federally
insured credit unions, payments on shares as well as share certificates
or share deposits and, in the case of credit unions serving
predominantly low-income members, to receive payments on shares, share
certificates or share deposits from nonmembers.
Par. (8). Pub. L. 91-468, Sec. 10(2), authorized a Federal credit
union to invest in shares, share certificates or share deposits of
federally insured credit unions.
1968--Par. (5). Pub. L. 90-375, Sec. 1(1), substituted provisions
authorizing Federal credit unions to make unsecured loans with
maturities not exceeding five years, and secured loans with maturities
not exceeding ten years for provisions authorizing federal credit unions
to make loans with maturities not exceeding five years.
Par. (8). Pub. L. 90-448 authorized investments in obligations,
participations, or other instruments of or issued by, or guaranteed as
to principal and interest by, the Government National Mortgage
Association.
Pub. L. 90-375, Sec. 1(2), added cl. (G).
Pars. (14), (15). Pub. L. 90-375, Sec. 1(3), added par. (14) and
redesignated former par. (14) as (15).
1967--Par. (5). Pub. L. 90-44, Sec. 2(1), substituted ``may be made
except as authorized under paragraph (6) of this section'' for ``shall
exceed the amount of his holdings in the Federal Credit Union as
represented by shares thereof plus the total unencumbered and unpledged
shareholdings in the Federal Credit Union of any member pledged as
security for the obligation of such director or committee member''.
Pars. (6), (7). Pub. L. 90-44, Sec. 2(3), added par. (6) and
redesignated former pars. (6) and (7) as (7) and (8), respectively.
Pars. (8) to (14). Pub. L. 90-44, Secs. 2(2), (3), redesignated
former par. (7) as (8), authorized in cl. (D) investment of funds in
shares or accounts of mutual savings banks, the accounts of which are
insured by the Federal Deposit Insurance Corporation, and redesignated
former pars. (8) to (13) as (9) to (14), respectively.
1966--Par. (7). Pub. L. 89-429 expanded list of possible areas of
investment of funds by Federal credit unions to include obligations,
participations, or other instruments of or issued by, or fully
guaranteed as to principal and interest by, the Federal National
Mortgage Association and participation certificates evidencing
beneficial interests in obligations, or in the right to receive interest
and principal collections therefrom, which obligations have been
subjected by one or more Government agencies to a trust or trusts for
which any executive department, agency, or instrumentality of the United
States (or the head thereof) has been named to act as trustee.
1964--Par. (7)(E). Pub. L. 88-353 added cl. (E).
1959--Pub. L. 86-354 made numerous capitalization, punctuation and
phraseological changes throughout text; increased maturities limits for
loans from three to five years, authorized approval of loans by a loan
officer and authorized loans in an amount which shall include total
unencumbered and unpledged shareholdings in the Federal credit union of
any member pledged as security for the obligation of the director or
committee member, provided for payment and amortization of loans,
redesignated provisions (a) to (d) as (A) to (D) in par. (7),
substituted ``levy late charges'' for ``fine members'' and inserted ``of
members'' in par. (10), substituted ``charges'' for ``fines'' in par.
(11), added par. (12); and redesignated former par. (12) as par. (13).
1952--Par. (7)(d). Act May 13, 1952, authorized investment of funds
in shares or accounts of any other institutions whose accounts are
insured by the Federal Savings and Loan Insurance Corporation.
1949--Par. (5). Act Oct. 25, 1949, increased from 2 years to 3 years
the limit for maturity of loans.
1946--Par. (5). Act July 31, 1946, inserted last two sentences to
provide for the forfeiture of the entire amount of interest reserved and
for the recovery of the entire amount of interest paid for the violation
of the interest limitation.
1937--Par. (7)(c), (d). Act Dec. 6, 1937, added cls. (c) and (d).
Effective Date of 1980 Amendment
Amendment by section 305(b) of Pub. L. 96-221 effective at close of
Mar. 31, 1980, see section 306 of Pub. L. 96-221, set out as a note
under section 371a of this title.
Effective and Termination Dates of 1979 Amendments
Amendment by Pub. L. 96-161 effective Dec. 31, 1979, with that
amendment to remain in effect until the close of Mar. 31, 1980, see
section 104 of Pub. L. 96-161, set out as a note under section 371a of
this title.
Section 323(e) of Pub. L. 96-153 provided that: ``The amendments
made by subsections (a) through (d) [amending this section and sections
1728, 1787, and 1821 of this title] are not applicable to any claim
arising out of the closing of a bank, savings and loan association, or
credit union prior to the date of enactment of this Act [Dec. 21, 1979],
but shall be applicable to any such claim arising on or after such
date.''
Effective Date of 1978 Amendment
Amendment by section 502(b) of Pub. L. 95-630 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.
Amendment by section 1803 of Pub. L. 95-630 effective Oct. 1, 1979,
see section 1806 of Pub. L. 95-630, set out as an Effective Date note
under section 1795 of this title.
Effective Date of 1974 Amendments
Amendment by Pub. L. 93-569 effective Dec. 31, 1974, see section 10
of Pub. L. 93-569, set out as a note under section 3702 of Title 38,
Veterans' Benefits.
Amendment by Pub. L. 93-495 effective on 30th day beginning after
Oct. 28, 1974, see section 101(g) of Pub. L. 93-495, set out as a note
under section 1813 of this title.
Effective Date of 1968 Amendment
For effective date of amendment by title VIII of Pub. L. 90-448, see
section 808 of Pub. L. 90-448, set out as a note under section 1716b of
this title.
Repeals
Amendment by section 103 of Pub. L. 96-161, cited as a credit to
this section, was repealed at the close of Mar. 31, 1980, by section 307
of Pub. L. 96-221, and substantially identical provisions were enacted
by section 305 of Pub. L. 96-221, such amendments to take effect at the
close of Mar. 31, 1980.
Transfer of Functions
Federal Home Loan Bank Board and Federal Savings and Loan Insurance
Corporation abolished and functions transferred, see sections 401 to 406
of Pub. L. 101-73, set out as a note under section 1437 of this title.
Transfer of functions of Farm Credit Administration and Governor
thereof, generally, see notes set out under section 1751 of this title.
Functions of Governor of Farm Credit Administration under this
section transferred to Federal Deposit Insurance Corporation by Reorg.
Plan No. 1 of 1947.
Section Referred to in Other Sections
This section is referred to in sections 1752, 1761c of this title.
