§ 1789. — Administrative provisions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1789]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER II--SHARE INSURANCE
Sec. 1789. Administrative provisions
(a) In carrying out the purposes of this subchapter, the Board may--
(1) make contracts;
(2) sue and be sued, complain and defend, in any court of law or
equity, State or Federal. All suits of a civil nature at common law
or in equity to which the Board shall be a party shall be deemed to
arise under the laws of the United States, and the United States
district courts shall have original jurisdiction thereof, without
regard to the amount in controversy. The Board may, without bond or
security, remove any such action, suit, or proceeding from a State
court to the United States district court for the district or
division embracing the place where the same is pending by following
any procedure for removal now or hereafter in effect, except that
any such suit to which the Board is a party in its capacity as
liquidating agent of a State-chartered credit union and which
involves only the rights or obligations of members, creditors, and
such State credit union under State law shall not be deemed to rise
under the laws of the United States. No attachment or execution
shall be issued against the Board or its property before final
judgment in any suit, action, or proceeding in any State, county,
municipal, or United States court. The Board shall designate an
agent upon whom service of process may be made in any State,
territory, or jurisdiction in which any insured credit union is
located;
(3) 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;
(4) to appoint such officers and employees as are not otherwise
provided for in this chapter, to define their duties, fix their
compensation, require bonds of them and fix the penalty thereof, and
to dismiss at pleasure such officers or employees. Nothing in this
chapter or any other Act shall be construed to prevent the
appointment and compensation as an officer or employee of the
Administration of any officer or employee of the United States in
any board, commission, independent establishment, or executive
department thereof;
(5) employ experts and consultants or organizations thereof, as
authorized by section 3109 of title 5;
(6) prescribe the manner in which its general business may be
conducted and the privileges granted to it by law may be exercised
and enjoyed;
(7) exercise all powers specifically granted by the provisions
of this subchapter and such incidental powers as shall be necessary
to carry out the power so granted;
(8) make examinations of and require information and reports
from insured credit unions, as provided in this subchapter.\1\
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\1\ So in original. The period should be a semicolon.
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(9) act as liquidating agent;
(10) delegate to any officer or employee of the Administration
such of its functions as it deems appropriate; and
(11) prescribe such rules and regulations as it may deem
necessary or appropriate to carry out the provisions of this
subchapter.
(b) With respect to the financial operations arising by reason of
this subchapter, the Board shall--
(1) prepare annually and submit a business-type budget as
provided for wholly owned Government corporations by chapter 91 of
title 31; and
(2) maintain an integral set of accounts, which shall be audited
by the General Accounting Office in accordance with principles and
procedures applicable to commercial corporate transactions, as
provided by section 9105 \2\ of title 31.
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\2\ See References in Text note below.
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(June 26, 1934, ch. 750, title II, Sec. 209, as added Pub. L. 91-468,
Sec. 1(3), Oct. 19, 1970, 84 Stat. 1014; amended Pub. L. 93-604, title
VII, Sec. 706, Jan. 2, 1975, 88 Stat. 1964; Pub. L. 95-630, title V,
Sec. 502(b), Nov. 10, 1978, 92 Stat. 3681.)
References in Text
Section 9105 of title 31, referred to in subsec. (b)(2), was amended
generally by Pub. L. 101-576, title III, Sec. 305, Nov. 15, 1990, 104
Stat. 2853, and as so amended no longer directs audits to be conducted
in accordance with principles and procedures applicable to commercial
corporate transactions.
Codification
In subsec. (a)(5), ``section 3109 of title 5'' substituted for
``section 15 of the Administrative Expenses Act of 1946 (5 U.S.C. 55a)''
on authority of Pub. L. 89-554, Sec. 7(b), Sept. 6, 1966, 80 Stat. 631,
the first section of which enacted Title 5, Government Organization and
Employees.
In subsec. (b), ``chapter 91 of title 31'' and ``section 9105 of
title 31'' substituted for ``the Government Corporation Control Act [31
U.S.C. 841 et seq.]'' and ``section 105 of the Government Corporation
Control Act [31 U.S.C. 850]'', respectively, 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
1978--Pub. L. 95-630 substituted ``Board'' for ``Administrator''
wherever appearing, ``its'' for ``his'', and ``it'' for ``he'' and
``him'', where appropriate.
1975--Subsec. (b)(2). Pub. L. 93-604 substituted ``audited by the
General Accounting Office'' for ``audited annually by the General
Accounting Office''.
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.
