12 U.S.C. § 1752a — National Credit Union Administration

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 Page 857 TITLE 12—BANKS AND BANKING § 1752a Accountability Office in accordance with the principles and procedures applicable to commer- cial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where the accounts of the Administration are kept. (June 26, 1934, ch. 750, title I, § 102, formerly § 3, as added Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 628; amended Pub. L. 91–206, § 3, Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 102, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 95–630, title V, § 501, Nov. 10, 1978, 92 Stat. 3680; Pub. L. 97–320, title V, § 502, Oct. 15, 1982, 96 Stat. 1528; Pub. L. 105–219, title II, § 204, Aug. 7, 1998, 112 Stat. 922; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814.) Editorial Notes PRIOR PROVISIONS Section 2 of act June 29, 1948, ch. 711, 62 Stat. 1091, which was formerly classified to section 1751a of this title, provided for the establishment in the Federal Se- curity Agency of a Bureau of Federal Credit Unions, which were under the supervision of a Director ap- pointed by the Federal Security Administrator. The Bureau of Federal Credit Unions and the Director thereof were under the general direction and super- vision of the Federal Security Administrator. The func- tions, powers, and duties of the Farm Credit Adminis- tration under the Federal Credit Union Act, as amend- ed [this chapter], were exercised by the Bureau of Fed- eral Credit Unions. The functions, powers, and duties of the Governor of the Farm Credit Administration under the Federal Credit Union Act, as amended [this chap- ter], were exercised by the Director of the Bureau of Federal Credit Unions. Section 1 of act June 29, 1948 transferred to the Fed- eral Security Agency all functions, powers, and duties of the Farm Credit Administration and of the Governor thereof under the Federal Credit Union Act, as amend- ed [this chapter], together with the functions of the Secretary of Agriculture with respect thereto, which were transferred to the Federal Deposit Insurance Cor- poration by Reorganization Plan Numbered 1 of 1947, part IV, section 401 [set out in the Appendix to Title 5, Government Organization and Employees]. Section 3 of act June 29, 1948 transferred to the Fed- eral Security Agency, to be used in the administration of the functions, transferred, (a) all property, including office equipment, transferred to the Federal Deposit In- surance Corporation pursuant to Executive Order 9148 of April 27, 1942 [see note under section 1751 of this title], and in use on the effective date of this Act [see section 5 of act June 29, 1948, set out as a note below]; (b) all property, including office equipment, purchased by the Corporation for use exclusively in connection with the administration of the Federal Credit Union Act, as amended [this chapter], the cost of which had been charged to such functions and which were in use on the effective date of this Act; (c) all records and files pertaining exclusively to the supervision of Federal Credit Unions; and (d) all personnel employed primarily in the administration of the Federal Credit Union Act, as amended [this chapter], on the effective date of this Act. Section 4 of act June 29, 1948 transferred all funds al- located, specifically or otherwise, in the budget of the Federal Deposit Insurance Corporation for the adminis- tration of the Federal Credit Union Act, as amended [this chapter], during the fiscal year ending June 30, 1949, which were unexpended on the effective date of this Act [see section 5 of act June 29, 1948, set out as a note below], to the Federal Security Agency for use in the administration of the Federal Credit Union Act, as amended [this chapter]. The Corporation was to be reimbursed for the funds so transferred and for all other funds expended by it prior to the effective date of this Act in the administration of the Federal Credit Union Act, as amended [this chapter], in excess of fees from Federal Credit unions received by the Corpora- tion, by deducting such amounts from the first moneys payable to the Secretary of the Treasury on account of the retirement of the stock of the Federal Deposit In- surance Corporation owned by the United States, and the Corporation was to have a charge on such stock for such amounts. Section 5 of act June 29, 1948 provided that the Act was to become effective on the thirtieth day following the date of enactment. AMENDMENTS 2004—Subsec. (f). Pub. L. 108–271 substituted ‘‘Govern- ment Accountability Office’’ for ‘‘General Accounting Office’’. 1998—Subsec. (b). Pub. L. 105–219 inserted heading, designated existing provisions as par. (1), and added par. (2). 1982—Subsec. (f). Pub. L. 97–320 struck out ‘‘on a cal- endar year basis’’ after ‘‘subject to audit’’. 1978—Pub. L. 95–630 generally revised section to eliminate the position of Administrator and to vest the management of the National Credit Union Administra- tion in the National Credit Union Administration Board. 1970—Pub. L. 91–206 designated existing provisions as subsec. (a), substituted provisions establishing an inde- pendent agency known as the National Credit Union Administration and an Administrator of such National Credit Union Administration for provisions estab- lishing a Bureau of Federal Credit Unions under the su- pervision of a Director, which Director was appointed by, and, under the general direction and supervision of, the Secretary of Health, Education, and Welfare, and added subsecs. (b) to (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provi- sions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title. TRANSFER OF FUNCTIONS Pub. L. 91–206, § 6, Mar. 10, 1970, 84 Stat. 51, provided that: ‘‘(a) All functions, property, records, and personnel of the Bureau of Federal Credit Unions are transferred to the National Credit Union Administration created by this Act [which generally amended this chapter]. ‘‘(b) The Director of the Bureau of Federal Credit Unions in office on the date of enactment of this Act [Mar. 10, 1970] shall serve as acting Administrator of the National Credit Union Administration pending the appointment of an Administrator in accordance with section 3 of the Federal Credit Union Act as amended by this Act [this section].’’ STUDY AND REPORT ON DIFFERING REGULATORY TREATMENT Pub. L. 105–219, title IV, § 401, Aug. 7, 1998, 112 Stat. 934, required the Secretary to conduct a study of the differences between credit unions and other federally insured financial institutions, and the potential effects of the application of Federal laws, including Federal tax laws, on credit unions in the same manner as those laws are applied to other federally insured financial in- stitutions, and to report to Congress on the results of the study by 1 year after Aug. 7, 1998. STUDY OF CORPORATE CREDIT UNIONS Pub. L. 104–208, div. A, title II, § 2606, Sept. 30, 1996, 110 Stat. 3009–473, directed the Secretary of the Treasury to Page 858 TITLE 12—BANKS AND BANKING § 1753 conduct a study and evaluation of the oversight and su- pervisory practices of the National Credit Union Ad- ministration concerning the National Credit Union Share Insurance Fund, including analysis of expenses, Fund administration, the 10 largest U.S. corporate credit unions, and Administration supervision and reg- ulations, and required the Secretary, not later than 12 months after Sept. 30, 1996, to submit to Congress a re- port that includes the results of the study and rec- ommendations. STUDY OF CREDIT UNION SYSTEM BY GAO Pub. L. 101–73, title XII, § 1201, Aug. 9, 1989, 103 Stat. 519, directed Comptroller General of the United States to conduct a comprehensive study of Nation’s credit union system and before the close of the 18-month pe- riod beginning on Aug. 9, 1989, to submit to Committee on Banking, Finance and Urban Affairs of House of Representatives and Committee on Banking, Housing, and Urban Affairs of Senate a final report containing a detailed statement of findings and conclusions, includ- ing recommendations for such administrative and leg- islative action as Comptroller General deemed advis- able. FEDERALLY CHARTERED CENTRAL CREDIT UNIONS; REPORT TO CONGRESS Pub. L. 86–354, § 3, Sept. 22, 1959, 73 Stat. 639, directed Director of Bureau of Federal Credit Unions to make a study of desirability of providing for federally char- tered central credit unions and to submit to Secretary of Health, Education, and Welfare, for transmission to Congress on or before Apr. 15, 1960, a report of results thereof and such recommendations for legislation thereon as Director deemed appropriate. § 1753. Federal credit union organization Any seven or more natural persons who desire to form a Federal credit union shall each sub- scribe either individually or collectively before some officer competent to administer oaths an organization certificate in duplicate which shall specifically state: (1) the name of the association; (2) the location of the proposed Federal cred- it union and the territory in which it will op- erate; (3) the names and addresses of the sub- scribers to the certificate and the number of shares subscribed by each; (4) the initial par value of the shares; (5) the proposed field of membership, speci- fied in detail; (6) the term of the existence of the corpora- tion, which may be perpetual; and (7) the fact that the certificate is made to enable such persons to avail themselves of the advantages of this chapter. Such organization certificate may also contain any provisions approved by the Board for the management of the business of the association and for the conduct of its affairs and relative to the powers of its directors, officers, or stock- holders. (June 26, 1934, ch. 750, title I, § 103, formerly § 3, 48 Stat. 1217; 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; renumbered § 4 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 628; Pub. L. 91–206, § 2(1), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 103, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 97–320, title V, §§ 503, 504, Oct. 15, 1982, 96 Stat. 1528.) Editorial Notes AMENDMENTS 1982—Pub. L. 97–320, § 503, substituted ‘‘each subscribe either individually or collectively’’ for ‘‘subscribe’’. Par. (4). Pub. L. 97–320, § 504, substituted ‘‘the initial par value of the shares’’ for ‘‘the par value of the shares, which shall be $5 each’’. 1978—Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Admin- istrator’’. 1970—Pub. L. 91–206 substituted ‘‘Administrator’’ for ‘‘Director’’. 1959—Pub. L. 86–354 changed ‘‘The’’ to ‘‘the’’ in sub- secs. (1) to (7) and the period to a semicolon in subsecs. (1) to (6) and inserted ‘‘and’’ at end of subsec. (6). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provi- sions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title. Executive Documents TRANSFER OF FUNCTIONS Transfer of functions of Farm Credit Administration and Governor thereof, generally, see notes set out under section 1751 of this title. Functions of Governor of Farm Credit Administra- tion under this section transferred to Federal Deposit Insurance Corporation by Reorg. Plan No. 1 of 1947. § 1754. Approval of organization certificate The organization certificate shall be presented to the Board for approval. Before any organiza- tion certificate is approved, an appropriate in- vestigation shall be made for the purpose of de- termining (1) whether the organization certifi- cate conforms to the provisions of this chapter; (2) the general character and fitness of the sub- scribers thereto; and (3) the economic advis- ability of establishing the proposed Federal credit union. Upon approval of such organiza- tion certificate by the Board it shall be the charter of the corporation, and one of the origi- nals thereof shall be delivered to the corpora- tion after the payment of the fee required there- for. Upon such approval the Federal credit union shall be a body corporate and as such, subject to the limitations herein contained, shall be vested with all of the powers and charged with all of the liabilities conferred and imposed by this chapter upon corporations organized hereunder. (June 26, 1934, ch. 750, title I, § 104, formerly § 4, 48 Stat. 1217; 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; renumbered § 5 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 629; Pub. L. 91–206, § 2(1), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 104, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681.) Editorial Notes AMENDMENTS 1978—Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Admin- istrator’’ in two places.