§ 1783. — National Credit Union Share Insurance Fund.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1783]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER II--SHARE INSURANCE
Sec. 1783. National Credit Union Share Insurance Fund
(a) Creation; use of fund
There is hereby created in the Treasury of the United States a
National Credit Union Share Insurance Fund which shall be used by the
Board as a revolving fund for carrying out the purposes of this
subchapter. Money in the fund shall be available upon requisition by the
Board, without fiscal year limitation, for making payments of insurance
under section 1787 of this title, for providing assistance and making
expenditures under section 1788 of this title in connection with the
liquidation or threatened liquidation of insured credit unions, and for
such administrative and other expenses incurred in carrying out the
purposes of this subchapter as it may determine to be proper.
(b) Deposit of deposits and premium charges, fees and penalties
All deposits and premium charges for insurance paid pursuant to the
provisions of section 1782 of this title and all fees for examinations
and all penalties collected by the Board under any provision of this
subchapter shall be deposited in the National Credit Union Share
Insurance Fund. The Board shall report annually to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Banking, Finance and Urban Affairs of the House of Representatives with
respect to the operating level of the fund. Such report shall also
include the results of an independent audit of the fund.
(c) Investment authorization
The Board may authorize the Secretary of the Treasury to invest and
reinvest such portions of the fund as the Board may determine are not
needed for current operations in any interest-bearing securities of the
United States or in any securities guaranteed as to both principal and
interest by the United States or in bonds or other obligations which are
lawful investments for fiduciary, trust, and public funds of the United
States, and the income therefrom shall constitute a part of the fund.
(d) Loans to fund, limitation and terms; interest accrual; determination
of interest rate
(1) If, in the judgment of the Board, a loan to the fund is required
at any time for carrying out the purposes of this subchapter, the
Secretary of the Treasury shall make the loan, but loans under this
paragraph shall not exceed in the aggregate $100,000,000 outstanding at
any one time. Except as otherwise provided in this subsection and in
subsection (e) of this section, each loan under this paragraph shall be
made on such terms as may be fixed by agreement between the Board and
the Secretary of the Treasury.
(2) Interest shall accrue to the Treasury on the amount of any
outstanding loans made to the fund pursuant to paragraph (1) of this
subsection on the basis of the average daily amount of such outstanding
loans determined at the close of each fiscal year with respect to such
year, and the Board shall pay the interest so accruing into the Treasury
as miscellaneous receipts annually from the fund. The Secretary of the
Treasury shall determine the applicable interest rate in advance by
calculating the average yield to maturity (on the basis of daily closing
market bid quotations during the month of September of the preceding
fiscal year) on outstanding marketable public debt obligations of the
United States having a maturity date of five or less years from the
first day of such month of September and by adjusting such yield to the
nearest one-eighth of 1 per centum.
(3) For the purpose of making loans under paragraph (1) of this
subsection, the Secretary of the Treasury is authorized to use as a
public debt transaction the proceeds of the sale of any securities
issued under chapter 31 of title 31, and the purposes for which
securities may be issued under chapter 31 of title 31 are hereby
extended to include such loans. All loans and repayments under this
section shall be treated as public debt transactions of the United
States.
(e) Excess funds credited against loans
So long as any loans to the fund are outstanding, the Board shall
from time to time, not less often than annually, determine whether the
balance in the fund is in excess of the amount which, in its judgment,
is needed to meet the requirements of the fund and shall pay such excess
to the Secretary of the Treasury, to be credited against the loans to
the fund.
(f) Authorization for fund to borrow from Central Liquidity Facility
In addition to the authority to borrow from the Secretary of the
Treasury provided in subsection (d) of this section, if in the judgment
of the Board, a loan to the fund is required at any time for carrying
out the purposes of this subchapter, the fund is authorized to borrow
from the National Credit Union Administration Central Liquidity
Facility.
(June 26, 1934, ch. 750, title II, Sec. 203, as added Pub. L. 91-468,
Sec. 1(3), Oct. 19, 1970, 84 Stat. 999; amended Pub. L. 94-273,
Sec. 2(4), Apr. 21, 1976, 90 Stat. 375; Pub. L. 95-630, title V,
Sec. 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 97-320, title V,
Sec. 530, Oct. 15, 1982, 96 Stat. 1535; Pub. L. 98-369, div. B, title
VIII, Sec. 2811, July 18, 1984, 98 Stat. 1206.)
Codification
In subsec. (d)(3), ``chapter 31 of title 31'' substituted for ``the
Second Liberty Bond Act, as amended'' 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
1984--Subsec. (b). Pub. L. 98-369 inserted ``deposits and'' and
provisions relating to annual reporting requirements by the Board.
1982--Subsec. (f). Pub. L. 97-320 added subsec. (f).
1978--Pub. L. 95-630 substituted ``Board'' for ``Administrator''
wherever appearing and ``it'' and ``its'' for ``he'' and ``his'',
respectively, where appropriate.
1976--Subsec. (d)(2). Pub. L. 94-273 substituted ``September'' for
``June'' wherever appearing.
Change of Name
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of Pub.
L. 104-14, set out as a note preceding section 21 of Title 2, The
Congress. Committee on Banking and Financial Services of House of
Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally transferred
from Committee on Energy and Commerce of House of Representatives by
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
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.
Section Referred to in Other Sections
This section is referred to in sections 1781, 1782 of this title.
