12 U.S.C. § 1795 — Congressional findings

Page 950 TITLE 12—BANKS AND BANKING § 1795 1 So in original. The period probably should be a semicolon. (f) Investment of Stabilization Fund assets The Board may request the Secretary of the Treasury to invest such portion of the Stabiliza- tion Fund as is not, in the Board’s judgment, re- quired to meet the current needs of the Sta- bilization Fund. Such investments shall be made by the Secretary of the Treasury in public debt securities, with maturities suitable to the needs of the Stabilization Fund, as determined by the Board, and bearing interest at a rate determined by the Secretary of the Treasury, taking into consideration current market yields on out- standing marketable obligations of the United States of comparable maturity. (g) Reports The Board shall submit an annual report to Congress on the financial condition and the re- sults of the operation of the Stabilization Fund. The report is due to Congress within 30 days after each anniversary of the first advance made under subsection (c)(1). Because the Fund will use advances from the Treasury to meet cor- porate stabilization costs with full repayment of borrowings to Treasury at the Board’s discretion not due until 7 years from the initial advance, to the extent operating expenses of the Fund ex- ceed income, the financial condition of the Fund may reflect a deficit. With planned and required future repayments, the Board shall resolve all deficits prior to termination of the Fund. (h) Closing of Stabilization Fund Within 90 days following the seventh anniver- sary of the initial Stabilization Fund advance, or earlier at the Board’s discretion, the Board shall distribute any funds, property, or other as- sets remaining in the Stabilization Fund to the Insurance Fund and shall close the Stabilization Fund. If the Board extends the final repayment date as permitted under subsection (c)(3), the mandatory date for closing the Stabilization Fund shall be extended by the same number of days. (June 26, 1934, ch. 750, title II, § 217, as added Pub. L. 111–22, div. A, title II, § 204(f)(1), May 20, 2009, 123 Stat. 1651; amended Pub. L. 111–382, § 1, Jan. 4, 2011, 124 Stat. 4134.) Editorial Notes AMENDMENTS 2011—Subsec. (c)(3). Pub. L. 111–382, § 1(a), inserted ‘‘and any additional advances’’ before period at end. Subsec. (d). Pub. L. 111–382, § 1(b), added subsec. (d) and struck out former subsec. (d). Prior to amendment, text read as follows: ‘‘At least 90 days prior to each repayment described in subsection (c)(3), the Board shall set the amount of the upcoming repayment and determine if the Sta- bilization Fund will have sufficient funds to make the repayment. If the Stabilization Fund might not have sufficient funds to make the repayment, the Board shall assess each federally insured credit union a spe- cial premium due and payable within 60 days in an ag- gregate amount calculated to ensure the Stabilization Fund is able to make the repayment. The premium charge for each credit union shall be stated as a per- centage of its insured shares as represented on the credit union’s previous call report. The percentage shall be identical for each credit union. Any credit union that fails to make timely payment of the special premium is subject to the procedures and penalties de- scribed under subsections (d), (e), and (f) of section 1782 of this title.’’ SUBCHAPTER III—CENTRAL LIQUIDITY FACILITY § 1795. Congressional findings The Congress finds that the establishment of a National Credit Union Central Liquidity Facil- ity is needed to improve general financial sta- bility by meeting the liquidity needs of credit unions and thereby encourage savings, support consumer and mortgage lending, and provide basic financial resources to all segments of the economy. (June 26, 1934, ch. 750, title III, formerly subch. III, § 301, as added Pub. L. 95–630, title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3719; amended Pub. L. 96–221, title III, § 309(b)(1), Mar. 31, 1980, 94 Stat. 149.) Editorial Notes 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. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 95–630, title XVIII, § 1806, Nov. 10, 1978, 92 Stat. 3724, provided that: ‘‘This title [enacting this sub- chapter and amending section 1757 of this title, section 709 of Title 18, Crimes and Criminal Procedure, and sec- tion 856 of former Title 31, Money and Finance] shall take effect on October 1, 1979.’’ SHORT TITLE For short title of title XVIII of Pub. L. 95–630, Nov. 10, 1978, 92 Stat. 3719, as the ‘‘National Credit Union Central Liquidity Facility Act’’, see section 1801 of Pub. L. 95–630, set out as a Short Title of 1978 Amend- ment note under section 1751 of this title. § 1795a. Definitions As used in this subchapter, the term— (1) ‘‘liquidity needs’’ means the needs of credit unions primarily serving natural per- sons for— (A) short-term adjustment credit available to assist in meeting temporary requirements for funds or to cushion more persistent out- flows of funds pending an orderly adjust- ment of credit union assets and liabilities; (B) seasonal credit available for longer pe- riods to assist in meeting seasonal needs for funds arising from a combination of ex- pected patterns of movement in share and deposit accounts and loans; and (C) protracted adjustment credit available in the event of unusual or emergency cir- cumstances of a longer term nature result- ing from national, regional or local difficul- ties.1 (2) ‘‘Central Liquidity Facility’’ or ‘‘Facil- ity’’ means the National Credit Union Central Liquidity Facility; (3) ‘‘paid-in and unimpaired capital and sur- plus’’ means the balance of the paid-in share