§ 1795d. — Capital stock.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1795d]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER III--CENTRAL LIQUIDITY FACILITY
Sec. 1795d. Capital stock
(a) Opening of books; minimum subscription
As soon as practicable, the Board shall open books for subscriptions
to the capital stock of the Facility. The minimum subscription shall be
$50.
(b) Requirements
The capital stock of the Facility--
(1) shall be divided into shares having a par value of $50 each;
(2) shall be paid for with cash or with securities of the United
States or any Agency thereof in accordance with requirements the
Board may impose;
(3) shall share in dividend distributions at rates determined by
the Board. However, rates on the required capital stock shall be
without preference; and
(4) shall not be transferred or hypothecated except as provided
for herein.
(c) Redemption of stock
When circumstances require that all or a portion of a member's stock
be redeemed by the Facility, the Board shall pay an amount equal to what
the member originally paid for the stock less any amount owed by the
member to the Facility.
(d) Use of subscription amount
At least one-half of the payment for the subscription amount
required for membership under section 1795c of this title shall be
transferred to the Facility. The remainder may be held by the member on
call of the Board and shall be invested in assets designated by the
Board.
(e) Restriction on advances to credit unions
A credit union or credit union group that becomes a member of the
Facility later than six months after the date the Board opens books for
capital stock subscriptions, may not borrow or receive advances from the
Facility without approval by the Board for a period of six months after
becoming a member.
(June 26, 1934, ch. 750, title III, formerly subch. III, Sec. 305, as
added and amended Pub. L. 95-630, title V, Sec. 502(b), title XVIII,
Sec. 1802, Nov. 10, 1978, 92 Stat. 3681, 3721; Pub. L. 96-221, title
III, Sec. 309(a)(2), (4), (b)(1), Mar. 31, 1980, 94 Stat. 148, 149.)
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
1980--Subsec. (a). Pub. L. 96-221, Sec. 309(a)(4), substituted
``Board'' for ``Administrator'', such change having been previously made
by Pub. L. 95-630.
Subsec. (b). Pub. L. 96-221, Sec. 309(a)(2), (4), substituted
``Board'' for ``Administrator'' wherever appearing, such change having
been previously made by Pub. L. 95-630, and in par. (3) inserted
specific requirement that rates on required capital stock be without
preference.
Subsecs. (c) to (e). Pub. L. 96-221, Sec. 309(a)(4), substituted
``Board'' for ``Administrator'' wherever appearing, such change having
been previously made by Pub. L. 95-630.
1978--Pub. L. 95-630, Sec. 502(b), substituted ``Board'' for
``Administrator'' wherever appearing.
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.