
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC1795c]

 
                       TITLE 12--BANKS AND BANKING
 
                    CHAPTER 14--FEDERAL CREDIT UNIONS
 
               SUBCHAPTER III--CENTRAL LIQUIDITY FACILITY
 
Sec. 1795c. Membership


(a) Credit unions serving natural persons

    A credit union primarily serving natural persons may be a Regular 
member of the Facility by subscribing to the capital stock of the 
Facility in an amount not less than one-half of 1 per centum of the 
credit union's paid-in and unimpaired capital and surplus.

(b) Credit unions serving other credit unions

    A credit union or group of credit unions, primarily serving other 
credit unions, may be an Agent member of the Facility by--
        (1) obtaining the approval of the Board;
        (2) subscribing to the capital stock of the Facility in an 
    amount not less than one-half of 1 per centum of the paid-in and 
    unimpaired capital and surplus of all those credit unions which 
    primarily serve natural persons, which are members of such credit 
    union or of any credit union comprising such credit union group, and 
    which are not regular members;
        (3) agreeing to comply with rules and regulations the Board 
    shall prescribe with respect to, but not limited to, management 
    quality, asset and liability safety and soundness, internal 
    operating and control practices and procedures, and participation of 
    natural persons in the affairs or \1\ such credit union or credit 
    union group; and
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    \1\ So in original. Probably should be ``of''.
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        (4) agreeing to submit to the supervision of the Board which 
    shall include, but not be limited to, reporting requirements and 
    periodic unrestricted examinations.

(c) Stock subscription requirements

    Stock subscriptions provided for in subsections (a) and (b)(2) of 
this section shall be--
        (1) based on an arithmetic average of paid-in capital and 
    surplus over the six months preceding application and membership; 
    and
        (2) adjusted at the close of each calendar year in accordance 
    with an arithmetic average of paid-in capital and surplus over a 
    period determined by the Board.

(d) Functions of Agent members of Facility

    An Agent member of the Facility shall perform for its member credit 
unions those functions required by the Board to carry out this 
subchapter.

(e) Withdrawal from or termination of membership

    (1) A member of the Facility whose capital stock subscription 
constitutes less than 5 per centum of such stock outstanding, may 
withdraw from membership in the Facility six months after notifying the 
Board of its intention to do so.
    (2) A member of the Facility whose capital stock subscription 
constitutes 5 per centum or more of such stock outstanding, may withdraw 
from membership in the Facility twenty-four months after notifying the 
Board of its intention to do so.
    (3) The Board may terminate membership in the Facility if, after 
opportunity for a hearing, the Board determines a member has failed to 
comply with any provision of this subchapter or regulation issued 
pursuant thereto.

(June 26, 1934, ch. 750, title III, formerly subch. III, Sec. 304, as 
added and amended Pub. L. 95-630, title V, Sec. 502(b), title XVIII, 
Sec. 1802, Nov. 10, 1978, 92 Stat. 3681, 3720; Pub. L. 96-221, title 
III, Sec. 309(a)(4), (b)(1), (2), Mar. 31, 1980, 94 Stat. 149.)

                          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

    1980--Subsecs. (b), (c). Pub. L. 96-221, Sec. 309(a)(4), substituted 
``Board'' for ``Administrator'' wherever appearing, such change having 
been made previously by Pub. L. 95-630.
    Subsecs. (d), (e). Pub. L. 96-221, Sec. 309(a)(4), (b)(2), 
substituted ``Board'' for ``Administrator'' wherever appearing, such 
change having been made previously by Pub. L. 95-630, and ``title'' for 
``subchapter'' wherever appearing, which for purposes of codification 
has been editorially translated as ``subchapter'', thereby requiring no 
further change in text.
    1978--Pub. L. 95-630, Sec. 502(b), substituted ``Board'' for 
``Administrator'' wherever appearing.


                    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.

                  Section Referred to in Other Sections

    This section is referred to in section 1795d of this title.
