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§ 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.



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