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§ 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.



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