§ 1766. — 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: 12USC1766]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1766. Powers of Board
(a) The Board may prescribe rules and regulations for the
administration of this chapter (including, but not by way of limitation,
the merger, consolidation, and dissolution of corporations organized
under this chapter). Any central credit union chartered by the Board
shall be subject to such rules, regulations, and orders as the Board
deems appropriate and, except as otherwise specifically provided in such
rules, regulations, or orders, shall be vested with or subject to the
same rights, privileges, duties, restrictions, penalties, liabilities,
conditions, and limitations that would apply to all Federal credit
unions under this chapter.
(b)(1) The Board may suspend or revoke the charter of any Federal
credit union, or place the same in involuntary liquidation and appoint a
liquidating agent therefor, upon its finding that the organization is
bankrupt or insolvent, or has violated any of the provisions of its
charter, its bylaws, this chapter, or any regulations issued thereunder.
(2) The Board, through such persons as it shall designate, may
examine any Federal credit union in voluntary liquidation and, upon its
finding that such voluntary liquidation is not being conducted in an
orderly or efficient manner or in the best interests of its members, may
terminate such voluntary liquidation and place such organization in
involuntary liquidation and appoint a liquidating agent therefor.
(3) Such liquidating agent shall have power and authority, subject
to the control and supervision of the Board and under such rules and
regulations as the Board may prescribe, (A) to receive and take
possession of the books, records, assets, and property of every
description of the Federal credit union in liquidation, to sell, enforce
collection of, and liquidate all such assets and property, to compound
all bad or doubtful debts, and to sue in his own name or in the name of
the Federal credit union in liquidation, and defend such actions as may
be brought against him as liquidating agent or against the Federal
credit union; (B) to receive, examine, and pass upon all claims against
the Federal credit union in liquidation, including claims of members on
member accounts; (C) to make distribution and payment to creditors and
members as their interests may appear; and (D) to execute such documents
and papers and to do such other acts and things which he may deem
necessary or desirable to discharge his duties hereunder.
(4) Subject to the control and supervision of the Board and under
such rules and regulations as the Board may prescribe, the liquidating
agent of a Federal credit union in involuntary liquidation shall (A)
cause notice to be given to creditors and members to present their
claims and make legal proof thereof, which notice shall be published
once a week in each of three successive weeks in a newspaper of general
circulation in each county in which the Federal credit union in
liquidation maintained an office or branch for the transaction of
business on the date it ceased unrestricted operations; except that
whenever the aggregate book value of the assets and property of a
Federal credit union in involuntary liquidation is less than $1,000,
unless the Board shall find that its books and records do not contain a
true and accurate record of its liabilities he shall declare such
Federal credit union in liquidation to be a ``no publication''
liquidation, and publication of notice to creditors and members shall
not be required in such case; (B) from time to time make a ratable
dividend on all such claims as may have been proved to his satisfaction
or adjudicated in a court of competent jurisdiction and, after the
assets of such organization have been liquidated, make further dividends
on all claims previously proved or adjudicated, and he may accept in
lieu of a formal proof of claim on behalf of any creditor or member the
statement of any amount due to such creditor or member as shown on the
books and records of the credit union; but all claims not filed before
payment of the final dividend shall be barred and claims rejected or
disallowed by the liquidating agent shall be likewise barred unless suit
be instituted thereon within three months after notice of rejection or
disallowance; and (C) in a ``no publication'' liquidation, determine
from all sources available to him, and within the limits of available
funds of the Federal credit union, the amounts due to creditors and
members, and after sixty days shall have elapsed from the date of his
appointment distribute the funds of the Federal credit union to
creditors and members ratably and as their interests may appear.
(5) Upon certification by the liquidating agent in the case of an
involuntary liquidation, and upon such proof as shall be satisfactory to
the Board in the case of a voluntary liquidation, that distribution has
been made and that liquidation has been completed, as provided herein,
the Board shall cancel the charter of such Federal credit union; but the
corporate existence of the Federal credit union shall continue for a
period of three years from the date of such cancellation of its charter,
during which period the liquidating agent, or his duly appointed
successor, or such persons as the Board shall designate, may act on
behalf of the Federal credit union for the purpose of paying,
satisfying, and discharging any existing liabilities or obligations,
collecting and distributing its assets, and doing all other acts
required to adjust and wind up its business and affairs, and it may sue
and be sued in its corporate name.
(c) After the expiration of five years from the date of cancellation
of the charter of a Federal credit union the Board may, in its
discretion, destroy any or all books and records of such Federal credit
union in its possession or under its control.
(d) The Board is authorized and empowered to execute any and all
functions and perform any and all duties vested in it hereby, through
such persons as it shall designate or employ; and it may delegate to any
person or persons, including any institution operating under the general
supervision of the Administration, the performance and discharge of any
authority, power, or function vested in it by this chapter.
(e) All books and records of Federal credit unions shall be kept and
reports shall be made in accordance with forms approved by the Board.
(f)(1) The Board is authorized to make investigations and to conduct
researches and studies of the problems of persons of small means in
obtaining credit at reasonable rates of interest, and of the methods and
benefits of cooperative saving and lending among such persons. It is
further authorized to make reports of such investigations and to publish
and disseminate the same.
(2)(A) The Board is authorized to conduct directly, or to make
grants to or contracts with colleges or universities, State or local
educational agencies, or other appropriate public or private nonprofit
organizations to conduct, programs for the training of persons engaged,
or preparing to engage, in the operation of credit unions and in related
consumer counseling programs, serving the poor. It is authorized to
establish a program of experimental, developmental, demonstration, and
pilot projects, either directly or by grants to public or private
nonprofit organizations, including credit unions, or by contracts with
such organizations or other private organizations, designed to promote
more effective operation of credit unions, and related consumer
counseling programs, serving the poor.
(B) In carrying out its authority under this paragraph, the Board
shall consult with officials of the Office of Economic Opportunity and
other appropriate Federal agencies responsible for the administration of
projects or programs concerned with problems of the poor. The
development and operation of programs and projects under this paragraph
shall involve maximum feasible participation of residents of the areas
and members of the groups served by such programs and projects, with
community action agencies established under the provisions of the
Economic Opportunity Act of 1964 [42 U.S.C. 2701 et seq.] serving, to
the extent feasible, as the means through which such participation is
achieved.
(C) In order to carry out the purposes of this paragraph, there is
authorized to be appropriated, as a supplement to any funds that may be
expended by the Board pursuant to sections 1755 and 1756 of this title
for such purposes, not to exceed $300,000 for the fiscal year ending
June 30, 1970, and not to exceed $1,000,000 for the fiscal year ending
June 30, 1971.
(g) Any officer or employee of the Administration is authorized,
when designated for the purpose by the Board, to administer oaths and
affirmations and to take affidavits and depositions touching upon any
matter within the jurisdiction of the Administration.
(h) The Board is authorized, empowered, and directed to require that
every person appointed or elected by any Federal credit union to any
position requiring the receipt, payment, or custody of money or other
personal property owned by a Federal credit union, or in its custody or
control as collateral or otherwise, give bond in a corporate surety
company holding a certificate of authority from the Secretary of the
Treasury under sections 9304-9308 of title 31, as an acceptable surety
on Federal bonds. Any such bond or bonds shall be in a form approved by
the Board with a view to providing surety coverage to the Federal credit
union with reference to loss by reason of acts of fraud or dishonesty
including forgery, theft, embezzlement, wrongful abstraction, or
misapplication on the part of the person, directly or through connivance
with others, and such other surety coverages as the Board may determine
to be reasonably appropriate or as elsewhere required by this chapter.
Any such bond or bonds shall be in such an amount in relation to the
money or other personal property involved or in relation to the assets
of the Federal credit union as the Board may from time to time prescribe
by regulation for the purpose of requiring reasonable coverage. In lieu
of individual bonds the Board may approve the use of a form of schedule
or blanket bond which covers all of the officers and employees of a
Federal credit union whose duties include the receipt, payment, or
custody of money or other personal property for or on behalf of the
Federal credit union. The Board may also approve the use of a form of
excess coverage bond whereby a Federal credit union may obtain an amount
of coverage in excess of the basic surety coverage.
(i) In addition to the authority conferred upon it by other sections
of this chapter, the Board is authorized in carrying out its functions
under this chapter--
(1) to appoint such personnel as may be necessary to enable the
Administration to carry out its functions;
(2) to expend such funds, enter into such contracts with public
and private organizations and persons, make such payments in advance
or by way of reimbursement, acquire and dispose of, by lease or
purchase, real or personal property, without regard to the
provisions of any other law applicable to executive or independent
agencies of the United States, and perform such other functions or
acts as it may deem necessary or appropriate to carry out the
provisions of this chapter, in accordance with the rules and
regulations or policies established by the Board not inconsistent
with this chapter; and
(3) to pay stipends, including allowances for travel to and from
the place of residence, to any individual to study in a program
assisted under this chapter upon a determination by the Board that
assistance to such individual in such studies will be in furtherance
of the purposes of this chapter.
(j) Staff.--
(1) Appointment and compensation.--The Board shall fix the
compensation and number of, and appoint and direct, employees of the
Board. Rates of basic pay for employees of the Board may be set and
adjusted by the Board without regard to the provisions of chapter 51
or subchapter III of chapter 53 of title 5.
(2) Additional compensation and benefits.--The Board may provide
additional compensation and benefits to employees of the Board if
the same type of compensation or benefits are then being provided by
any other Federal bank regulatory agency or, if not then being
provided, could be provided by such an agency under applicable
provisions of law, rule, or regulation. In setting and adjusting the
total amount of compensation and benefits for employees of the
Board, the Board shall seek to maintain comparability with other
Federal bank regulatory agencies.
(3) Funding.--The salaries and expenses of the Board and
employees of the Board shall be paid from fees and assessments
(including income earned on insurance deposits) levied on insured
credit unions under this chapter.
(June 26, 1934, ch. 750, title I, Sec. 120, formerly Sec. 16, 48 Stat.
1221; Dec. 6, 1937, ch. 3, Sec. 3, 51 Stat. 4; July 31, 1946, ch. 711,
Sec. 8, 60 Stat. 745; 1947 Reorg. Plan No. 1, Sec. 401, eff. July 1,
1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, Secs. 1, 2, 62
Stat. 1091; June 30, 1954, ch. 426, Sec. 2, 68 Stat. 336; Aug. 24, 1954,
ch. 905, Sec. 3, 68 Stat. 792; renumbered Sec. 21 and amended Pub. L.
86-354, Sec. 1, Sept. 22, 1959, 73 Stat. 635; Pub. L. 90-375, Sec. 2(a),
July 5, 1968, 82 Stat. 285; Pub. L. 91-206, Secs. 2(1), (3), 4, Mar. 10,
1970, 84 Stat. 49, 50; renumbered title I, Sec. 120, Pub. L. 91-468,
Sec. 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 95-22, title
III, Sec. 306, Apr. 19, 1977, 91 Stat. 52; Pub. L. 95-630, title V,
Sec. 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 97-320, title V,
Sec. 526, Oct. 15, 1982, 96 Stat. 1535; Pub. L. 100-86, title VII,
Sec. 707, Aug. 10, 1987, 101 Stat. 653; Pub. L. 101-73, title XII,
Sec. 1203, Aug. 9, 1989, 103 Stat. 520; Pub. L. 101-144, title III, Nov.
9, 1989, 103 Stat. 864; Pub. L. 103-325, title I, Sec. 120(a), Sept. 23,
1994, 108 Stat. 2188.)
References in Text
The Economic Opportunity Act of 1964, referred to in subsec.
(f)(2)(B), is Pub. L. 88-452, Aug. 20, 1964, 78 Stat. 508, as amended,
which was classified generally to chapter 34 (Sec. 2701 et seq.) of
Title 42, The Public Health and Welfare, prior to repeal, except for
titles VIII and X, by Pub. L. 97-35, title VI, Sec. 683(a), Aug. 13,
1981, 95 Stat. 519. Titles VIII and X of the Act are classified
generally to subchapters VIII (Sec. 2991 et seq.) and X (Sec. 2996 et
seq.) of chapter 34 of Title 42. For complete classification of this Act
to the Code, see Tables.
Codification
In subsec. (h), ``sections 9304-9308 of title 31'' substituted for
``the Act approved July 30, 1947 (6 U.S.C., secs. 6-13)'' on authority
of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first
section of which enacted Title 31, Money and Finance.
Amendments
1994--Subsec. (k). Pub. L. 103-325 struck out subsec. (k) which read
as follows: ``Notwithstanding any other provision of law, the Board may
exercise the authority granted it by the Community Development Credit
Union Revolving Loan Fund Transfer Act (Public Law 99-609, sec. 1, Nov.
6, 1986, 100 Stat. 3475) subject only to the rules and regulations
prescribed by the Board.''
1989--Subsec. (j). Pub. L. 101-73 added subsec. (j).
Subsec. (k). Pub. L. 101-144 added subsec. (k).
1987--Subsec. (i)(2). Pub. L. 100-86 inserted ``acquire and dispose
of, by lease or purchase, real or personal property, without regard to
the provisions of any other law applicable to executive or independent
agencies of the United States,'' after ``reimbursement,'' and ``, in
accordance with the rules and regulations or policies established by the
Board not inconsistent with this chapter'' after ``this chapter''.
1982--Subsec. (a). Pub. L. 97-320 inserted provisions relating to
the special authority of the Board over a central credit union, and such
a union's general prerogatives and liabilities.
1978--Pub. L. 95-630 substituted ``Board'' for ``Administrator''
wherever appearing; and ``it'', ``them'', and ``its'' for ``he'',
``him'', and ``his'', respectively, where appropriate.
1977--Subsec. (b)(3)(B). Pub. L. 95-22 substituted ``member
accounts'' for ``shares''.
1970--Subsecs. (a) to (h). Pub. L. 91-206, Sec. 2(1), (3),
substituted ``Administrator'' for ``Director'' and ``Administration''
for ``Bureau'' wherever appearing.
Subsec. (i). Pub. L. 91-206, Sec. 4, added subsec. (i).
1968--Subsec. (f). Pub. L. 90-375 redesignated existing provisions
as par. (1) and added par. (2).
1959--Pub. L. 86-354 made capitalization, punctuation and
phraseological changes throughout text; redesignated, in subsec. (b)(3),
cls. (i) to (iv) as (A) to (D) and corrected in cl. (A) the final
``cerdit'' to read ``credit''; redesignated, in subsec. (b)(4), cls. (i)
to (iii) as cls. (A) to (C); and redesignated the second subsec. (b) and
subsecs. (c) to (g) as (c) to (h), respectively.
1954--Subsec. (f). Act June 30, 1954, added subsec. (f).
Subsec. (g). Act Aug. 24, 1954, added subsec. (g).
1946--Subsec. (b). Act July 31, 1946, provided a more adequate
statutory procedure for the administration of this chapter by expressly
authorizing the liquidation of a Federal credit union and setting up a
procedure which will achieve more orderly and complete liquidation.
1937--Subsec. (e). Act Dec. 6, 1937, added subsec. (e).
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.
Effective Date of 1968 Amendment
Section 2(b) of Pub. L. 90-375 provided that: ``The amendments made
by subsection (a) [amending this section] shall become effective July 1,
1968.''
Transfer of Functions
Transfer of functions of Farm Credit Administration and Governor
thereof, generally, see notes set out under section 1751 of this title.
Functions of Governor of Farm Credit Administration under this
section transferred to Federal Deposit Insurance Corporation by Reorg.
Plan No. 1 of 1947.
Section Referred to in Other Sections
This section is referred to in section 1772a of this title; title 5
section 5373; title 15 section 57a.
