§ 1795e. — Extensions of credit.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1795e]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER III--CENTRAL LIQUIDITY FACILITY
Sec. 1795e. Extensions of credit
(a)(1) A member may apply for an extension of credit from the
Facility to meet its liquidity needs. The Board shall approve or deny
any such application within five working days after receiving it. The
Board shall not approve an application for credit the intent of which is
to expand credit union portfolios.
(2) The Board may advance funds to a member on terms and conditions
prescribed by the Board after giving due consideration to
creditworthiness.
(3) The Board shall not advance funds for the benefit of a credit
union whose share or deposit accounts are insured by a State share or
deposit guaranty credit union, insurance corporation, or guaranty
association, without consultation with the appropriate State share or
deposit guaranty credit union, insurance corporation, or guaranty
association.
(b) The Secretary of the Treasury is authorized to lend to the
Facility up to $500,000,000, in the event the Board certifies to the
Secretary that the Facility does not have sufficient funds to meet
liquidity needs of credit unions. Any such loan shall bear an interest
rate not greater than one-eighth of 1 per centum above the current
average market yield on outstanding obligations of the United States
with remaining time to maturity comparable to the maturity of such loan.
The authority of the Secretary to lend under this subsection shall be
limited to such extent or in such amounts as are provided in advance in
appropriation Acts.
(June 26, 1934, ch. 750, title III, formerly subch. III, Sec. 306, 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)(4), (b)(1), Mar. 31, 1980, 94 Stat. 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--Subsecs. (a), (b). 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.
