§ 1752a. — National Credit Union Administration.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1752a]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1752a. National Credit Union Administration
(a) Establishment; management under National Credit Union Administration
Board
There is established in the executive branch of the Government an
independent agency to be known as the National Credit Union
Administration. The Administration shall be under the management of a
National Credit Union Administration Board.
(b) Membership and appointment of Board
(1) In general
The Board shall consist of three members, who are broadly
representative of the public interest, appointed by the President,
by and with the advice and consent of the Senate. In appointing the
members of the Board, the President shall designate the Chairman.
Not more than two members of the Board shall be members of the same
political party.
(2) Appointment criteria
(A) Experience in financial services
In considering appointments to the Board under paragraph
(1), the President shall give consideration to individuals who,
by virtue of their education, training, or experience relating
to a broad range of financial services, financial services
regulation, or financial policy, are especially qualified to
serve on the Board.
(B) Limit on appointment of credit union officers
Not more than one member of the Board may be appointed to
the Board from among individuals who, at the time of the
appointment, are, or have recently been, involved with any
insured credit union as a committee member, director, officer,
employee, or other institution-affiliated party.
(c) Term of office
The term of office of each member of the Board shall be six years,
except that the terms of the two members, other than the Chairman,
initially appointed shall expire one upon the expiration of two years
after the date of appointment, and the other upon the expiration of four
years after the date of appointment. Board members shall not be
appointed to succeed themselves except the initial members appointed for
less than a six-year term may be reappointed for a full six-year term
and future members appointed to fill unexpired terms may be reappointed
for a full six-year term. Any Board member may continue to serve as such
after the expiration of said member's term until a successor has
qualified.
(d) Management of Administration vested in Board; adoption of rules;
quorum; report to President and Congress
The management of the Administration shall be vested in the Board.
The Board shall adopt such rules as it sees fit for the transaction of
its business and shall keep permanent and complete records and minutes
of its acts and proceedings. A majority of the Board shall constitute a
quorum. Not later than April 1 of each calendar year, and at such other
times as the Congress shall determine, the Board shall make a report to
the President and to the Congress. Such a report shall summarize the
operations of the Administration and set forth such information as is
necessary for the Congress to review the financial program approved by
the Board.
(e) Functions of Chairman
The Chairman of the Board shall be the spokesman for the Board and
shall represent the Board and the National Credit Union Administration
in its official relations with other branches of the Government. The
Chairman shall determine each Board member's area of responsibility and
shall review such assignments biennially. It shall be the Chairman's
responsibility to direct the implementation of the adopted policies and
regulations of the Board.
(f) Audit by General Accounting Office
The financial transactions of the Administration shall be subject to
audit by the General Accounting Office in accordance with the principles
and procedures applicable to commercial corporate transactions and under
such rules and regulations as may be prescribed by the Comptroller
General of the United States. The audit shall be conducted at the place
or places where the accounts of the Administration are kept.
(June 26, 1934, ch. 750, title I, Sec. 102, formerly Sec. 3, as added
Pub. L. 86-354, Sec. 1, Sept. 22, 1959, 73 Stat. 628; amended Pub. L.
91-206, Sec. 3, Mar. 10, 1970, 84 Stat. 49; renumbered title I,
Sec. 102, Pub. L. 91-468, Sec. 1(2), Oct. 19, 1970, 84 Stat. 994;
amended Pub. L. 95-630, title V, Sec. 501, Nov. 10, 1978, 92 Stat. 3680;
Pub. L. 97-320, title V, Sec. 502, Oct. 15, 1982, 96 Stat. 1528; Pub. L.
105-219, title II, Sec. 204, Aug. 7, 1998, 112 Stat. 922.)
Prior Provisions
Section 2 of act June 29, 1948, ch. 711, 62 Stat. 1091, which was
formerly classified to section 1751a of this title, provided for the
establishment in the Federal Security Agency of a Bureau of Federal
Credit Unions, which were under the supervision of a Director appointed
by the Federal Security Administrator. The Bureau of Federal Credit
Unions and the Director thereof were under the general direction and
supervision of the Federal Security Administrator. The functions,
powers, and duties of the Farm Credit Administration under the Federal
Credit Union Act, as amended [this chapter], were exercised by the
Bureau of Federal Credit Unions. The functions, powers, and duties of
the Governor of the Farm Credit Administration under the Federal Credit
Union Act, as amended [this chapter], were exercised by the Director of
the Bureau of Federal Credit Unions.
Section 1 of act June 29, 1948 transferred to the Federal Security
Agency all functions, powers, and duties of the Farm Credit
Administration and of the Governor thereof under the Federal Credit
Union Act, as amended [this chapter], together with the functions of the
Secretary of Agriculture with respect thereto, which were transferred to
the Federal Deposit Insurance Corporation by Reorganization Plan
Numbered 1 of 1947, part IV, section 401 [set out in the Appendix to
Title 5, Government Organization and Employees].
Section 3 of act June 29, 1948 transferred to the Federal Security
Agency, to be used in the administration of the functions, transferred,
(a) all property, including office equipment, transferred to the Federal
Deposit Insurance Corporation pursuant to Executive Order 9148 of April
27, 1942 [see note under section 1751 of this title], and in use on the
effective date of this Act [see section 5 of act June 29, 1948, set out
as a note below]; (b) all property, including office equipment,
purchased by the Corporation for use exclusively in connection with the
administration of the Federal Credit Union Act, as amended [this
chapter], the cost of which had been charged to such functions and which
were in use on the effective date of this Act; (c) all records and files
pertaining exclusively to the supervision of Federal Credit Unions; and
(d) all personnel employed primarily in the administration of the
Federal Credit Union Act, as amended [this chapter], on the effective
date of this Act.
Section 4 of act June 29, 1948 transferred all funds allocated,
specifically or otherwise, in the budget of the Federal Deposit
Insurance Corporation for the administration of the Federal Credit Union
Act, as amended [this chapter], during the fiscal year ending June 30,
1949, which were unexpended on the effective date of this Act [see
section 5 of act June 29, 1948, set out as a note below], to the Federal
Security Agency for use in the administration of the Federal Credit
Union Act, as amended [this chapter]. The Corporation was to be
reimbursed for the funds so transferred and for all other funds expended
by it prior to the effective date of this Act in the administration of
the Federal Credit Union Act, as amended [this chapter], in excess of
fees from Federal Credit unions received by the Corporation, by
deducting such amounts from the first moneys payable to the Secretary of
the Treasury on account of the retirement of the stock of the Federal
Deposit Insurance Corporation owned by the United States, and the
Corporation was to have a charge on such stock for such amounts.
Section 5 of act June 29, 1948 provided that the Act was to become
effective on the thirtieth day following the date of enactment.
Amendments
1998--Subsec. (b). Pub. L. 105-219 inserted heading, designated
existing provisions as par. (1), and added par. (2).
1982--Subsec. (f). Pub. L. 97-320 struck out ``on a calendar year
basis'' after ``subject to audit''.
1978--Pub. L. 95-630 generally revised section to eliminate the
position of Administrator and to vest the management of the National
Credit Union Administration in the National Credit Union Administration
Board.
1970--Pub. L. 91-206 designated existing provisions as subsec. (a),
substituted provisions establishing an independent agency known as the
National Credit Union Administration and an Administrator of such
National Credit Union Administration for provisions establishing a
Bureau of Federal Credit Unions under the supervision of a Director,
which Director was appointed by, and, under the general direction and
supervision of, the Secretary of Health, Education, and Welfare, and
added subsecs. (b) to (f).
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-630 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.
Transfer of Functions
Section 6 of Pub. L. 91-206 provided that:
``(a) All functions, property, records, and personnel of the Bureau
of Federal Credit Unions are transferred to the National Credit Union
Administration created by this Act [which generally amended this
chapter].
``(b) The Director of the Bureau of Federal Credit Unions in office
on the date of enactment of this Act [Mar. 10, 1970] shall serve as
acting Administrator of the National Credit Union Administration pending
the appointment of an Administrator in accordance with section 3 of the
Federal Credit Union Act as amended by this Act [this section].''
Study and Report on Differing Regulatory Treatment
Pub. L. 105-219, title IV, Sec. 401, Aug. 7, 1998, 112 Stat. 934,
provided that:
``(a) Study.--The Secretary [of the Treasury] shall conduct a study
of--
``(1) the differences between credit unions and other federally
insured financial institutions, including regulatory differences
with respect to regulations enforced by the Office of Thrift
Supervision, the Office of the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, and the Administration; and
``(2) the potential effects of the application of Federal laws,
including Federal tax laws, on credit unions in the same manner as
those laws are applied to other federally insured financial
institutions.
``(b) Report.--Not later than 1 year after the date of enactment of
this Act [Aug. 7, 1998], the Secretary shall submit a report to the
Congress on the results of the study required by subsection (a).''
Study of Corporate Credit Unions
Pub. L. 104-208, div. A, title II, Sec. 2606, Sept. 30, 1996, 110
Stat. 3009-473, provided that:
``(a) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Administration.--The term `Administration' means the
National Credit Union Administration.
``(2) Board.--The term `Board' means the National Credit Union
Administration Board.
``(3) Corporate credit union.--The term `corporate credit union'
has the meaning given such term by rule or regulation of the Board.
``(4) Fund.--The term `Fund' means the National Credit Union
Share Insurance Fund established under section 203 of the Federal
Credit Union Act [12 U.S.C. 1783].
``(5) Secretary.--The term `Secretary' means the Secretary of
the Treasury.
``(b) Study.--
``(1) In general.--The Secretary, in consultation with the
Board, the Corporation, the Comptroller of the Currency, and the
Administration, shall conduct a study and evaluation of--
``(A) the oversight and supervisory practices of the
Administration concerning the Fund, including the treatment of
amounts deposited in the Fund pursuant to section 202(c) of the
Federal Credit Union Act [12 U.S.C. 1782(c)], including analysis
of--
``(i) whether those amounts should be--
``(I) refundable; or
``(II) treated as expenses; and
``(ii) the use of those amounts in determining equity
capital ratios;
``(B) the potential for, and potential effects of,
administration of the Fund by an entity other than the
Administration;
``(C) the 10 largest corporate credit unions in the United
States, conducted in cooperation with appropriate employees of
other Federal agencies with expertise in the examination of
federally insured financial institutions, including--
``(i) the investment practices of those credit unions;
and
``(ii) the financial stability, financial operations,
and financial controls of those credit unions;
``(D) the regulations of the Administration; and
``(E) the supervision of corporate credit unions by the
Administration.
``(c) Report.--Not later than 12 months after the date of enactment
of this Act [Sept. 30, 1996], the Secretary shall submit to the
appropriate committees of the Congress, a report that includes the
results of the study and evaluation conducted under subsection (b),
together with any recommendations that the Secretary considers to be
appropriate.''
Study of Credit Union System by General Accounting Office
Pub. L. 101-73, title XII, Sec. 1201, Aug. 9, 1989, 103 Stat. 519,
directed Comptroller General of the United States to conduct a
comprehensive study of Nation's credit union system and before the close
of the 18-month period beginning on Aug. 9, 1989, to submit to Committee
on Banking, Finance and Urban Affairs of House of Representatives and
Committee on Banking, Housing, and Urban Affairs of Senate a final
report containing a detailed statement of findings and conclusions,
including recommendations for such administrative and legislative action
as Comptroller General deemed advisable.
Federally Chartered Central Credit Unions; Report to Congress
Section 3 of Pub. L. 86-354 directed Director of Bureau of Federal
Credit Unions to make a study of desirability of providing for federally
chartered central credit unions and to submit to Secretary of Health,
Education, and Welfare, for transmission to Congress on or before Apr.
15, 1960, a report of results thereof and such recommendations for
legislation thereon as Director deemed appropriate.
Section Referred to in Other Sections
This section is referred to in section 1795i of this title.
