12 U.S.C. § 1752 — Definitions

Page 854 TITLE 12—BANKS AND BANKING § 1751a ‘‘(1) The American credit union movement began as a cooperative effort to serve the productive and provident credit needs of individuals of modest means. ‘‘(2) Credit unions continue to fulfill this public purpose, and current members and membership groups should not face divestiture from the financial services institution of their choice as a result of re- cent court action. ‘‘(3) To promote thrift and credit extension, a meaningful affinity and bond among members, mani- fested by a commonality of routine interaction, shared and related work experiences, interests, or ac- tivities, or the maintenance of an otherwise well-un- derstood sense of cohesion or identity is essential to the fulfillment of the public mission of credit unions. ‘‘(4) Credit unions, unlike many other participants in the financial services market, are exempt from Federal and most State taxes because they are mem- ber-owned, democratically operated, not-for-profit or- ganizations generally managed by volunteer boards of directors and because they have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means. ‘‘(5) Improved credit union safety and soundness provisions will enhance the public benefit that citi- zens receive from these cooperative financial services institutions.’’ TRANSFER OF FUNCTIONS Secretary and Department of Health, Education, and Welfare redesignated Secretary and Department of Health and Human Services by section 3508 of Title 20, Education. Executive Documents TRANSFER OF FUNCTIONS Transfer of functions of Farm Credit Administration and Governor thereof to Bureau of Farm Credit Unions and Director thereof under jurisdiction of Federal Se- curity Agency by act June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091, and abolishment of Agency and transfer of its functions to Department of Health, Education, and Welfare by Reorg. Plan No. 1 of 1953, § 5, eff. Apr. 11, 1953, 18 F.R. 2053, 67 Stat. 632, see section 1752a of this title, and notes thereunder. Functions of Farm Credit Administration and Gov- ernor thereof under this chapter, together with func- tions of Secretary of Agriculture with respect thereto, transferred to Federal Deposit Insurance Corporation by Reorg. Plan No. 1 of 1947, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952, set out in the Appendix to Title 5, Government Organization and Employees. A similar transfer of functions for duration of World War II was effected by Ex. Ord. No. 9148, Apr. 27, 1942, 7 F.R. 3145. Farm Credit Administration transferred to Depart- ment of Agriculture by Reorg. Plan No. I of 1939, § 401, eff. July 1, 1939, 4 F.R. 2730, 53 Stat. 1429, set out in the Appendix to Title 5. § 1751a. Omitted Editorial Notes CODIFICATION Section, act June 29, 1948, ch. 711, § 2, 62 Stat. 1091, re- lated to establishment of Bureau of Federal Credit Unions. See section 1752a of this title. SUBCHAPTER I—GENERAL PROVISIONS § 1752. Definitions As used in this chapter— (1) the term ‘‘Federal credit union’’ means a cooperative association organized in accord- ance with the provisions of this chapter for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes; (2) the term ‘‘Chairman’’ means the Chair- man of the National Credit Union Administra- tion Board; (3) the term ‘‘Administration’’ means the National Credit Union Administration; (4) the term ‘‘Board’’ means the National Credit Union Administration Board; (5) The terms ‘‘member account’’ and ‘‘ac- count’’ mean a share, share certificate, or share draft account of a member of a credit union of a type approved by the Board which evidences money or its equivalent received or held by a credit union in the usual course of business and for which it has given or is obli- gated to give credit to the account of the member, and, in the case of a credit union serving predominantly low-income members (as defined by the Board), such terms (when referring to the account of a nonmember served by such credit union) mean a share, share certificate, or share draft account of such nonmember which is of a type approved by the Board and evidences money or its equivalent received or held by such credit union in the usual course of business and for which it has given or is obligated to give cred- it to the account of such nonmember, and such terms mean share, share certificate, or share draft account of nonmember credit unions and nonmember units of Federal, State, or local governments and political subdivisions thereof enumerated in section 1787 of this title, and such terms mean custodial accounts estab- lished for loans sold in whole or in part pursu- ant to section 1757(13) of this title: Provided, That for purposes of insured State credit unions, reference in this paragraph to ‘‘share’’, ‘‘share certificate’’, or ‘‘share draft’’, accounts includes, as determined by the Board, the equivalent of such accounts under State law; (6) The terms ‘‘State credit union’’ and ‘‘State-chartered credit union’’ mean a credit union organized and operated according to the laws of any State, the District of Columbia, the several territories and possessions of the United States, the Panama Canal Zone, or the Commonwealth of Puerto Rico, which laws provide for the organization of credit unions similar in principle and objectives to Federal credit unions; (7) The term ‘‘insured credit union’’ means any credit union the member accounts of which are insured in accordance with the pro- visions of subchapter II of this chapter, and the term ‘‘noninsured credit union’’ means any credit union the member accounts of which are not so insured; (8) The term ‘‘Fund’’ means the National Credit Union Share Insurance Fund; and (9) The term ‘‘branch’’ includes any branch credit union, branch office, branch agency, ad- ditional office, or any branch place of business located in any State of the United States, the District of Columbia, the several territories, including the trust territories, and possessions of the United States, the Panama Canal Zone, or the Commonwealth of Puerto Rico, at which member accounts are established or Page 855 TITLE 12—BANKS AND BANKING § 1752 money lent. The term ‘‘branch’’ also includes a suboffice, operated by a Federal credit union or by a credit union authorized by the Depart- ment of Defense, located on an American mili- tary installation in a foreign country or in the trust territories of the United States. (June 26, 1934, ch. 750, title I, § 101, formerly § 2, 48 Stat. 1216; 1947 Reorg. Plan No. 1, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091; Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 628; Pub. L. 91–206, § 1, Mar. 10, 1970, 84 Stat. 49, renumbered title I, § 101, and amended Pub. L. 91–468, §§ 1(2), 2, Oct. 19, 1970, 84 Stat. 994, 1015; Pub. L. 95–22, title III, § 308, Apr. 19, 1977, 91 Stat. 52; Pub. L. 95–630, title V, §§ 502(a), (b), 503, Nov. 10, 1978, 92 Stat. 3681; Pub. L. 96–161, title I, § 103(a), Dec. 28, 1979, 93 Stat. 1233; Pub. L. 96–221, title III, §§ 305(a), 307, Mar. 31, 1980, 94 Stat. 146, 147; Pub. L. 97–320, title V, § 501, Oct. 15, 1982, 96 Stat. 1528; Pub. L. 109–351, title VII, § 726(1), (2), Oct. 13, 2006, 120 Stat. 2002.) Editorial Notes REFERENCES IN TEXT For definition of Canal Zone, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Inter- course. AMENDMENTS 2006—Par. (3). Pub. L. 109–351, § 726(1), struck out ‘‘and’’ after semicolon. Par. (5). Pub. L. 109–351, § 726(2), substituted ‘‘share draft account’’ for ‘‘share draft account account’’ in two places and for ‘‘share draft account accounts’’ be- fore ‘‘of nonmember’’. 1982—Par. (5). Pub. L. 97–320 inserted ‘‘, and such terms mean custodial accounts established for loans sold in whole or in part pursuant to section 1757(13) of this title’’ after ‘‘section 1787 of this title’’. 1980—Par. (5). Pub. L. 96–221, §§ 305(a), 307, inserted provisions respecting applicability to share draft ac- counts substantially similar to provisions added by Pub. L. 96–161, and repealed the amendment made by Pub. L. 96–161. See Repeals and Effective Date of 1980 Amendment notes below. Par. (10). Pub. L. 96–221, § 307, struck out par. (10) which defined ‘‘share draft account’’. See Repeals and Effective Date of 1980 Amendment notes below. 1979—Par. (5). Pub. L. 96–161, § 103(a)(1), inserted ‘‘, and such term also includes a share draft account’’ after ‘‘the equivalent of such accounts under State law’’. Par. (10). Pub. L. 96–161, § 103(a)(2)–(4), added par. (10). 1978—Par. (2). Pub. L. 95–630, § 502(a)(1), substituted provisions defining ‘‘Chairman’’ for provisions defining ‘‘Administrator’’. Par. (4). Pub. L. 95–630, § 502(a)(2), inserted ‘‘Adminis- tration’’ after ‘‘National Credit Union’’. Par. (5). Pub. L. 95–630, §§ 502(b), 503(a), (b), redesig- nated par. (4), defining ‘‘member account’’ and ‘‘ac- count’’, as (5) and substituted ‘‘share or share certifi- cate’’ for ‘‘share, share certificate, or share deposit’’ in two places; ‘‘Board’’ for ‘‘Administrator’’ wherever ap- pearing; ‘‘share or share certificate accounts’’ for ‘‘those accounts’’; and ‘‘enumerated in section 1787 of this title: Provided, That for purposes of State credit unions, reference in this paragraph to ‘share’ or ‘share certificate’ accounts includes, as determined by the Board, the equivalent of such accounts under State law;’’ for ‘‘in which payments are received by a credit union pursuant to section 1757(6) of this title;’’. Pars. (6) to (8). Pub. L. 95–630, § 503(a), redesignated former pars. (5) to (7) as (6) to (8). Former par. (8) redes- ignated (9). Par. (9). Pub. L. 95–630, § 503(a), (c), redesignated former par. (8) as (9), inserted ‘‘, including the trust territories,’’ after ‘‘several territories’’, and inserted provision that term ‘‘branch’’ also includes a suboffice, operated by a Federal credit union or by a credit union authorized by the Department of Defense, located on an American military installation in a foreign country or in the trust territories of the United States. 1977—Par. (4). Pub. L. 95–22 inserted provision that such terms mean those accounts of nonmember credit unions and nonmember units of Federal, State, or local governments and political subdivisions thereof in which payments are received by a credit union pursu- ant to section 1757(6) of this title. 1970—Par. (2). Pub. L. 91–206 substituting ‘‘Adminis- trator’’ as meaning Administrator of the National Credit Union Administration for ‘‘Bureau’’ as meaning the Bureau of Federal Credit Unions. Par. (3). Pub. L. 91–206 substituted ‘‘Administration’’ as meaning the National Credit Union Administration for ‘‘Director’’ as meaning Director of the Bureau of Federal Credit Unions. Par. (4). Pub. L. 91–206 added par. (4). Pars. (4) to (8). Pub. L. 91–468, § 2, added pars. (4) to (8). 1959—Pub. L. 86–354 designated the terms defined as subsecs. (1) to (3). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–221 effective at close of Mar. 31, 1980, see section 306 of Pub. L. 96–221, set out as a note under section 1464 of this title. EFFECTIVE AND TERMINATION DATES OF 1979 AMENDMENT Amendment by Pub. L. 96–161 effective Dec. 31, 1979, with that amendment to remain in effect until the close of Mar. 31, 1980, see section 104 of Pub. L. 96–161, formerly set out as a note under section 371a of this title. EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–630, title V, § 509, Nov. 10, 1978, 92 Stat. 3683, provided that: ‘‘The amendments made by this title [amending this section, sections 1753 to 1756, 1757 to 1759, 1761 to 1763, 1766, 1767, 1771, 1772a, and 1781 to 1789 of this title, and sections 5108, 5314, and 5315 of Title 5, Government Organization and Employees] take effect upon the effective date of this Act [see Effective Date note under section 375b of this title], except that the functions of the Administrator of the National Credit Union Administration under the provisions of the Fed- eral Credit Union Act [this chapter], as in effect on the date preceding the date of enactment of this title [Nov. 10, 1978], shall continue to be performed by him in ac- cordance with such provisions until such time as all the members of the National Credit Union Administra- tion Board, established under the amendments made by this title, take office. All rules, regulations, policies, and procedures of the Administrator in effect on the date of enactment of this title shall remain in effect until amended, superseded, or repealed.’’ REPEALS Amendment by section 103 of Pub. L. 96–161, cited as a credit to this section, was repealed at the close of Mar. 31, 1980, by section 307 of Pub. L. 96–221, and sub- stantially identical provisions were enacted by section 305 of Pub. L. 96–221, such amendments to take effect at the close of Mar. 31, 1980. Executive Documents EX. ORD. NO. 13816. REVISING THE SEAL FOR THE NATIONAL CREDIT UNION ADMINISTRATION Ex. Ord. No. 13816, Dec. 8, 2017, 82 F.R. 58701, provided: Page 856 TITLE 12—BANKS AND BANKING § 1752a By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: SECTION 1. Revision. (a) The National Credit Union Ad- ministration Board has caused to be made, and has rec- ommended approval of, a new seal of office for the Na- tional Credit Union Administration (NCUA), the design of which accompanies and is hereby made a part of this order [not set out in the Code], and which is described as follows: (i) The eagle overlaid by the shield conveys the NCUA’s role as an agency of the Federal Government. The text, ‘‘NCUA,’’ in white on a blue background on the crest of the shield is the core of the sign that feder- ally insured credit unions are required to display. (ii) The three stars above the eagle represent the NCUA’s three-member Board, appointed by the Presi- dent of the United States by and with the advice and consent of the Senate. (iii) The oak branch the eagle is holding in its left talon symbolizes the NCUA’s strength, honor, and lon- gevity in carrying out its mission of promoting con- fidence in the national system of cooperative credit. (iv) The olive branch the eagle is holding in its right talon symbolizes the peace and prosperity facilitated by the economic growth and access to affordable finan- cial services that the Nation’s credit unions have long provided to millions of Americans. (v) The upper portion of the circle that forms the bor- der of the seal sets forth the agency’s title, ‘‘National Credit Union Administration.’’ The date ‘‘1934’’ in the lower portion of the circle reflects the creation of the Federal credit union system by the Congress in 1934 and the long unbroken line of Federal credit union regula- tion that evolved into the NCUA. (b) This seal is of suitable design and appropriate for adoption as the official seal of the NCUA. (c) I hereby approve this seal as the official seal of the NCUA. SEC. 2. Revocation. Executive Order 11580 of January 20, 1971 (Establishing a Seal for the National Credit Union Administration), as amended, is hereby revoked. SEC. 3. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appro- priations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforce- able at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. DONALD J. TRUMP. § 1752a. National Credit Union Administration (a) Establishment; management under National Credit Union Administration Board There is established in the executive branch of the Government an independent agency to be known as the National Credit Union Adminis- tration. The Administration shall be under the management of a National Credit Union Admin- istration Board. (b) Membership and appointment of Board (1) In general The Board shall consist of three members, who are broadly representative of the public interest, appointed by the President, by and with the advice and consent of the Senate. In appointing the members of the Board, the President shall designate the Chairman. Not more than two members of the Board shall be members of the same political party. (2) Appointment criteria (A) Experience in financial services In considering appointments to the Board under paragraph (1), the President shall give consideration to individuals who, by virtue of their education, training, or experience relating to a broad range of financial serv- ices, financial services regulation, or finan- cial policy, are especially qualified to serve on the Board. (B) Limit on appointment of credit union of- ficers Not more than one member of the Board may be appointed to the Board from among individuals who, at the time of the appoint- ment, are, or have recently been, involved with any insured credit union as a com- mittee member, director, officer, employee, or other institution-affiliated party. (c) Term of office The term of office of each member of the Board shall be six years, except that the terms of the two members, other than the Chairman, initially appointed shall expire one upon the ex- piration of two years after the date of appoint- ment, and the other upon the expiration of four years after the date of appointment. Board members shall not be appointed to succeed themselves except the initial members ap- pointed for less than a six-year term may be re- appointed for a full six-year term and future members appointed to fill unexpired terms may be reappointed for a full six-year term. Any Board member may continue to serve as such after the expiration of said member’s term until a successor has qualified. (d) Management of Administration vested in Board; adoption of rules; quorum; report to President and Congress The management of the Administration shall be vested in the Board. The Board shall adopt such rules as it sees fit for the transaction of its business and shall keep permanent and complete records and minutes of its acts and proceedings. A majority of the Board shall constitute a quorum. Not later than April 1 of each calendar year, and at such other times as the Congress shall determine, the Board shall make a report to the President and to the Congress. Such a re- port shall summarize the operations of the Ad- ministration and set forth such information as is necessary for the Congress to review the fi- nancial program approved by the Board. (e) Functions of Chairman The Chairman of the Board shall be the spokesman for the Board and shall represent the Board and the National Credit Union Adminis- tration in its official relations with other branches of the Government. The Chairman shall determine each Board member’s area of re- sponsibility and shall review such assignments biennially. It shall be the Chairman’s responsi- bility to direct the implementation of the adopt- ed policies and regulations of the Board. (f) Audit by Government Accountability Office The financial transactions of the Administra- tion shall be subject to audit by the Government