§ 1795f. — Powers of Board.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1795f]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER III--CENTRAL LIQUIDITY FACILITY
Sec. 1795f. Powers of Board
(a) General authorities
The Board on behalf of the Facility shall have the ability to--
(1) prescribe the manner in which the general business of the
Facility shall be conducted;
(2) prescribe rules and regulations to carry out this
subchapter;
(3) determine the expenditures incurred by the Administration to
carry out this subchapter, and the expenditures incurred by the
Facility to carry out subchapters I and II of this chapter, and
annually assess the Facility and the Administration accordingly;
(4) borrow from--
(A) any source, provided that the total face value of these
obligations shall not exceed twelve times the subscribed capital
stock and surplus of the Facility; and
(B) the National Credit Union Share Insurance Fund up to
$500,000 to defray initial organizational and operating expenses
of the Facility at such rates and terms consistent with
prevailing market conditions;
(5) guarantee performance of the terms of any financial
obligation of a member but only when such obligation bears a clear
and conspicuous notice on its face that only the resources of the
Facility underlie such guarantee;
(6) purchase any asset from a member with the member's
endorsement;
(7) invest in obligations of the United States or any agency
thereof;
(8) make deposits in federally insured financial institutions
and make investments in shares or deposits of credit unions;
(9) sue and be sued, complain, and defend, in any State or
Federal court;
(10) adopt a seal;
(11) pursue to final disposition by way of compromise or
otherwise claims both for and against the United States (other than
tort claims, claims involving administrative expenses, and claims in
excess of $5,000 arising out of contracts for construction, repairs,
and the purchase of supplies and materials) which are not in
litigation and have not been referred to the Department of Justice;
(12) appoint officers and employees to assist in carrying out
this subchapter, who shall be appointed subject to the provisions of
title 5;
(13) conduct business, carry on operations, have offices, and
exercise the powers granted by this subchapter in any State or
territory;
(14) lease, purchase, or otherwise acquire and own, hold,
improve, use, or otherwise deal in and with property, real,
personal, or mixed, or any interest therein, wherever situated;
(15) enter into contracts with any public or private
organization, partnership, corporation, or individual;
(16) advance funds on a fully secured basis to a State credit
union share or deposit insurance corporation, guaranty credit union,
or guaranty association. Such advance shall not exceed twelve months
in maturity, shall be relent at an interest rate not exceeding that
imposed by the Facility, and shall not be renewable;
(17) exercise such incidental powers as shall be necessary or
requisite to enable it to carry out effectively the purposes for
which the facility is incorporated; and
(18) advance funds to the National Credit Union Share Insurance
Fund under such terms and conditions as may be established by the
Board.
(b) Collection and settlement of checks, share drafts, etc.; charges;
rules and regulations
(1) The Board may authorize the Central Liquidity Facility or its
Agent members, subject to such rules and regulations, including
definitions of terms used in this subsection, as the Board shall from
time to time prescribe, to be drawees of, and to engage in, or be agents
or intermediaries for, or otherwise participate or assist in, the
collection and settlement of (including presentment, clearing, and
payment of, and remitting for), checks, share drafts, or any other
negotiable or nonnegotiable items or instruments of payment drawn on or
issued by members of the Central Liquidity Facility, any of its Agent
members, or any other credit union eligible to become a member of the
Central Liquidity Facility, and to have such incidental powers as the
Board shall find necessary for the exercise of any such authorization.
(2) The Central Liquidity Facility or its Agent members shall make
charges, to be determined and regulated by the Board consistent with the
principles set forth in section 248a(c) of this title, or utilize the
services of, or act as agent for, or be a member of, a Federal Reserve
bank, clearinghouse, or any other public or private financial
institution or other agency, in the exercise of any powers or functions
pursuant to this subsection.
(3) The Board is authorized, with respect to participation in the
collection and settlement of any items by the Central Liquidity Facility
or by its Agent members, and with respect to the collection and
settlement (including payment by the payor institution) of items payable
by members of the Central Liquidity Facility or of any of its Agent
members, to prescribe rules and regulations regarding the rights,
powers, responsibilities, duties, and liabilities, including standards
relating thereto, of such entities and other parties to any such items
or their collection and settlement. In prescribing such rules and
regulations, the Board may adopt or apply, in whole or in part, general
banking usage and practices, and, in instances or respects in which they
would otherwise not be applicable, Federal Reserve regulations and
operating letters, the Uniform Commercial Code, and clearinghouse rules.
(June 26, 1934, ch. 750, title III, formerly subch. III, Sec. 307, as
added and amended Pub. L. 95-630, title V, Sec. 502(b), title XVIII,
Sec. 1802, Nov. 10, 1978, 92 Stat. 3681, 3722; Pub. L. 96-221, title
III, Secs. 309(a)(3), (4), (b), 312, Mar. 31, 1980, 94 Stat. 149, 150;
Pub. L. 97-320, title V, Sec. 531, Oct. 15, 1982, 96 Stat. 1536.)
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
1982--Subsec. (a)(17), (18). Pub. L. 97-320 added pars. (17) and
(18).
1980--Pub. L. 96-221, Secs. 309(a)(3), (4), (b)(2), (3), 312,
designated existing provisions as subsec. (a) substituted ``Board'' for
``Administrator'', such change having been made previously by Pub. L.
95-630, and ``title'' and ``titles'' for ``subchapter'' and
``subchapters'', which for purposes of codification has been editorially
translated as ``subchapter'' or ``subchapters'' thereby requiring no
further change in text, in par. (15) struck out requirement respecting
advance appropriation of amounts, and added subsec. (b).
1978--Pub. L. 95-630, Sec. 502(b), substituted ``Board'' for
``Administrator''.
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.