Source: http://www.law.cornell.edu/uscode/text/12/1787?qt-us_code_tabs=0
Timestamp: 2014-07-25 06:49:43
Document Index: 427987408

Matched Legal Cases: ['§ 1787', '§ 207', '§ 1', '§ 101', '§ 502', '§ 1401', '§ 323', '§ 308', '§ 2', '§ 714', '§ 915', '§ 1217', '§ 2521', '§ 501', '§ 301', '§ 901', '§ 2', '§ 718', '§ 2', '§ 1604', '§ 335', '§ 78', '§ 1', '§ 1', '§ 343', '§ 343', '§ 343', '§ 343', '§ 335', '§ 720', '§ 722', '§ 726', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 3', '§ 6', '§ 718', '§ 904', '§ 721', '§ 726', '§ 721', '§ 721', '§ 726', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 901', '§ 901', '§ 901', '§ 901', '§ 901', '§ 901', '§ 901', '§ 901', '§ 901', '§ 901', '§ 901', '§ 905', '§ 901', '§ 902', '§ 901', '§ 902', '§ 908', '§ 903', '§ 903', '§ 903', '§ 904', '§ 904', '§ 902', '§ 904', '§ 904', '§ 301', '§ 301', '§ 2521', '§ 2534', '§ 2521', '§ 2534', '§ 2528', '§ 2526', '§ 2532', '§ 1217', '§ 1217', '§ 1217', '§ 1217', '§ 1217', '§ 1217', '§ 1217', '§ 915', '§ 1217', '§ 714', '§ 714', '§ 502', '§ 502', '§ 502', '§ 101', '§ 101', '§ 343', '§ 343', '§ 308', '§ 1402', '§ 104']

12 U.S. Code § 1787 - Payment of insurance | LII / Legal Information Institute
Liquidation by Board; bond; appointment of agent; fees to be fixed by Board (1)
Not later than 10 days after the date on which the Board closes a credit union for liquidation pursuant to paragraph (1), or accepts appointment as liquidating agent pursuant to subsection (b) of this section, such insured credit union may apply to the United States district court for the judicial district in which the principal office of such insured credit union is located or the United States District Court for the District of Columbia, for an order requiring the Board to show cause why it should not be prohibited from continuing such liquidation. Except as otherwise provided in this subparagraph, no court may take any action for or toward the removal of any liquidating agent or, except at the instance of the Board, restrain or affect the exercise of powers or functions of a liquidating agent.
Liquidation to facilitate prompt corrective action.— The Board may close any credit union for liquidation, and appoint itself or another (including, in the case of a State-chartered insured credit union, the State official having jurisdiction over the credit union) as liquidating agent of that credit union, if—
in the case of a State-chartered insured credit union, the Board has complied with section 1790d
Powers and duties of Board as conservator or liquidating agent (1)
Rulemaking authority of Board The Board may prescribe such regulations as the Board determines to be appropriate regarding the conduct of the Board as conservator or liquidating agent.
Successor to credit union The Board shall, as conservator or liquidating agent, and by operation of law, succeed to—
Operate the credit union The Board may, as conservator or liquidating agent—
Functions of credit union’s officers, directors, and shareholders The Board may, by regulation or order, provide for the exercise of any function by any member or stockholder, director, or officer of any credit union for which the Board has been appointed conservator or liquidating agent.
Powers as conservator The Board may, as conservator, take such action as may be—
Additional powers as liquidating agent The Board may, as liquidating agent, place the credit union in liquidation and proceed to realize upon the assets of the credit union, having due regard to the conditions of credit in the locality.
Payment of valid obligations The Board, as conservator or liquidating agent, shall pay all valid obligations of the credit union in accordance with the prescriptions and limitations of this chapter.
Attachment of assets and injunctive relief Subject to subparagraph (H), any court of competent jurisdiction may, at the request of the Board (in the Board’s capacity as conservator or liquidating agent for any insured credit union or in the Board’s corporate capacity in the exercise of any authority under this section), issue an order in accordance with Rule 65 of the Federal Rules of Civil Procedure, including an order placing the assets of any person designated by the Board under the control of the court and appointing a trustee to hold such assets.
The Board may, as conservator or liquidating agent and for purposes of carrying out any power, authority, or duty with respect to an insured credit union (including determining any claim against the credit union and determining and realizing upon any asset of any person in the course of collecting money due the credit union), exercise any power established under section 1786
(p) of this title, and the provisions of such section shall apply with respect to the exercise of any such power under this subparagraph in the same manner as such provisions apply under such section.
This subsection shall not be construed as limiting any rights that the Board, in any capacity, might otherwise have under section 1786
Incidental powers The Board may, as conservator or liquidating agent—
Exemption from criminal prosecution The Administration shall be exempt from all prosecution by the United States or any State, county, municipality, or local authority for any criminal offense arising under Federal, State, county, municipal, or local law, which was allegedly committed by a credit union, or persons acting on behalf of a credit union, prior to the appointment of the Administration as liquidating agent.
Authority of liquidating agent to determine claims (A)
In general The Board may, as liquidating agent, determine claims in accordance with the requirements of this subsection and regulations prescribed under paragraph (4).
Notice requirements The liquidating agent, in any case involving the liquidation or winding up of the affairs of a closed credit union, shall—
Mailing required The liquidating agent shall mail a notice similar to the notice published under subparagraph (B)(i) at the time of such publication to any creditor shown on the credit union’s books—
Rulemaking authority relating to determination of claims The Board may prescribe regulations regarding the allowance or disallowance of claims by the liquidating agent and providing for administrative determination of claims and review of such determination.
Procedures for determination of claims (A)
Determination period (i)
Allowance of proven claims The liquidating agent shall allow any claim received on or before the date specified in the notice published under paragraph (3)(B)(i) by the liquidating agent from any claimant which is proved to the satisfaction of the liquidating agent.
Clause (i) shall not apply with respect to any claim filed by any claimant after the date specified in the notice published under paragraph (3)(B)(i) and such claim may be considered by the liquidating agent if—
Authority to disallow claims The liquidating agent may disallow any portion of any claim by a creditor or claim of security, preference, or priority which is not proved to the satisfaction of the liquidating agent.
No judicial review of determination pursuant to subparagraph (D) No court may review the Board’s determination pursuant to subparagraph (D) to disallow a claim.
Provision for agency review or judicial determination of claims (A)
In general Before the end of the 60-day period beginning on the earlier of—
Statute of limitations If any claimant fails to—
Review of claims (A)
Administrative hearing If any claimant requests review under this subparagraph in lieu of filing or continuing any action under paragraph (6) and the Board agrees to such request, the Board shall consider the claim after opportunity for a hearing on the record. The final determination of the Board with respect to such claim shall be subject to judicial review under chapter 7 of title 5.
Other review procedures (i)
Establishment required The Board shall establish a procedure for expedited relief outside of the routine claims process established under paragraph (5) for claimants who—
Determination period Before the end of the 90-day period beginning on the date any claim is filed in accordance with the procedures established pursuant to subparagraph (A), the Board shall—
Period for filing or renewing suit Any claimant who files a request for expedited relief shall be permitted to file a suit, or to continue a suit filed before the appointment of the liquidating agent, seeking a determination of the claimant’s rights with respect to such security interest after the earlier of—
Statute of limitations If an action described in subparagraph (C) is not filed, or the motion to renew a previously filed suit is not made, before the end of the 30-day period beginning on the date on which such action or motion may be filed in accordance with subparagraph (B), the claim shall be deemed to be disallowed as of the end of such period (other than any portion of such claim which was allowed by the liquidating agent), such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim.
Agreement as basis of claim (A)
Requirements Except as provided in subparagraph (B), any agreement which does not meet the requirements set forth in section 1788
(a)(3) of this title shall not form the basis of, or substantially comprise, a claim against the liquidating agent or the Board.
Exception to contemporaneous execution requirement Notwithstanding section 1788
(a)(3) of this title, any agreement between a Federal home loan bank or Federal Reserve bank and any insured credit union which was executed before the extension of credit by such bank to such credit union shall be treated as having been executed contemporaneously with such extension of credit for purposes of subparagraph (A).
In general The liquidating agent may, in the liquidating agent’s discretion and to the extent funds are available, pay creditor claims which are allowed by the liquidating agent, approved by the Board pursuant to a final determination pursuant to paragraph (7) or (8), or determined by the final judgment of any court of competent jurisdiction in such manner and amounts as are authorized under this chapter.
Payment of dividends on claims The liquidating agent may, in the liquidating agent’s sole discretion, pay dividends on proved claims at any time, and no liability shall attach to the Board (in such Board’s corporate capacity or as liquidating agent), by reason of any such payment, for failure to pay dividends to a claimant whose claim is not proved at the time of any such payment.
Distribution of assets (A)
Subrogated claims; claims of uninsured accountholders and other creditors The liquidating agent shall—
Distribution to shareholders of amounts remaining after payment of all other claims and expenses In any case in which funds remain after all accountholders, creditors, other claimants, and administrative expenses are paid, the liquidating agent shall distribute such funds to the credit union’s shareholders or members together with the accounting report required under paragraph (14)(C).
In general After the appointment of a conservator or liquidating agent for an insured credit union, the conservator or liquidating agent may request a stay for a period not to exceed—
Grant of stay by all courts required Upon receipt of a request by any conservator or liquidating agent pursuant to subparagraph (A) for a stay of any judicial action or proceeding in any court with jurisdiction of such action or proceeding, the court shall grant such stay as to all parties.
Prior final adjudication The Board shall abide by any final unappealable judgment of any court of competent jurisdiction which was rendered before the appointment of the Board as conservator or liquidating agent.
Rights and remedies of conservator or liquidating agent In the event of any appealable judgment, the Board as conservator or liquidating agent shall—
No attachment or execution No attachment or execution may issue by any court upon assets in the possession of the liquidating agent.
Limitation on judicial review Except as otherwise provided in this subsection, no court shall have jurisdiction over—
Statute of limitations for actions brought by conservator or liquidating agent (A)
In general Notwithstanding any provision of any contract, the applicable statute of limitations with regard to any action brought by the Board as conservator or liquidating agent shall be—
Determination of the date on which a claim accrues For purposes of subparagraph (A), the date on which the statute of limitation begins to run on any claim described in such subparagraph shall be the later of—
In general The Board as conservator or liquidating agent shall, consistent with the accounting and reporting practices and procedures established by the Board, maintain a full accounting of each conservatorship and liquidation or other disposition of credit unions in default.
Annual accounting or report With respect to each conservatorship or liquidation to which the Board was appointed, the Board shall make an annual accounting or report, as appropriate, available to the Comptroller General of the United States or, in the case of a State-chartered credit union, the authority which appointed the Board as conservator or liquidating agent.
Availability of reports Any report prepared pursuant to subparagraph (B) shall be made available by the Board upon request to any shareholder of the credit union for which the Board was appointed conservator or liquidating agent or any other member of the public.
Fraudulent transfers (A)
In general The Board, as conservator or liquidating agent for any insured credit union, may avoid a transfer of any interest of an institution-affiliated party, or any person who the Board determines is a debtor of the institution, in property, or any obligation incurred by such party or person, that was made within 5 years of the date on which the Board becomes conservator or liquidating agent if such party or person voluntarily or involuntarily made such transfer or incurred such liability with the intent to hinder, delay, or defraud the insured credit union or the Board.
Right of recovery To the extent a transfer is avoided under subparagraph (A), the Board may recover, for the benefit of the insured credit union, the property transferred, or, if a court so orders, the value of such property (at the time of such transfer) from—
Rights of transferee or obligee The Board may not recover under subparagraph (B) from—
Rights under this paragraph The rights of the Board under this paragraph shall be superior to any rights of a trustee or any other party (other than any party which is a Federal agency) under title 11.
Provisions relating to contracts entered into before appointment of conservator or liquidating agent (1)
Authority to repudiate contracts In addition to any other rights a conservator or liquidating agent may have, the conservator or liquidating agent for any insured credit union may disaffirm or repudiate any contract or lease—
Timing of repudiation The conservator or liquidating agent appointed for any insured credit union shall determine whether or not to exercise the rights of repudiation under this subsection within a reasonable period following such appointment.
In general Except as otherwise provided in subparagraph (C) and paragraphs (4), (5), and (6), the liability of the conservator or liquidating agent for the disaffirmance or repudiation of any contract pursuant to paragraph (1) shall be—
Measure of damages for repudiation of financial contracts In the case of any qualified financial contract or agreement to which paragraph (8) applies, compensatory damages shall be—
paid in accordance with this subsection and subsection (f) of this section except as otherwise specifically provided in this section.
Leases under which the credit union is the lessee (A)
In general If the conservator or liquidating agent disaffirms or repudiates a lease under which the credit union was the lessee, the conservator or liquidating agent shall not be liable for any damages (other than damages determined pursuant to subparagraph (B)) for the disaffirmance or repudiation of such lease.
Payments of rent Notwithstanding subparagraph (A), the lessor under a lease to which such subparagraph applies shall—
have a claim for any unpaid rent, subject to all appropriate offsets and defenses, due as of the date of the appointment which shall be paid in accordance with this subsection and subsection (b) of this section.
Leases under which the credit union is the lessor (A)
In general If the conservator or liquidating agent repudiates an unexpired written lease of real property of the credit union under which the credit union is the lessor and the lessee is not, as of the date of such repudiation, in default, the lessee under such lease may either—
Provisions applicable to lessee remaining in possession If any lessee under a lease described in subparagraph (A) remains in possession of a leasehold interest pursuant to clause (ii) of such subparagraph—
In general If the conservator or liquidating agent repudiates any contract (which meets the requirements of each paragraph of section 1788
(a)(3) of this title) for the sale of real property and the purchaser of such real property under such contract is in possession and is not, as of the date of such repudiation, in default, such purchaser may either—
Provisions applicable to purchaser remaining in possession If any purchaser of real property under any contract described in subparagraph (A) remains in possession of such property pursuant to clause (ii) of such subparagraph—
the conservator or liquidating agent shall—
Services performed before appointment In the case of any contract for services between any person and any insured credit union for which the Board has been appointed conservator or liquidating agent, any claim of such person for services performed before the appointment of the conservator or the liquidating agent shall be—
a claim to be paid in accordance with subsection (b) of this section; and
Services performed after appointment and prior to repudiation If, in the case of any contract for services described in subparagraph (A), the conservator or liquidating agent accepts performance by the other person before the conservator or liquidating agent makes any determination to exercise the right of repudiation of such contract under this section—
Acceptance of performance no bar to subsequent repudiation The acceptance by any conservator or liquidating agent of services referred to in subparagraph (B) in connection with a contract described in such subparagraph shall not affect the right of the conservator or liquidating agent to repudiate such contract under this section at any time after such performance.
Rights of parties to contracts Subject to paragraphs (9) and (10) of this subsection and notwithstanding any other provision of this chapter (other than subsection (b)(9) of this section and section 1788
(a)(3) of this title), any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising—
any right under any security agreement or arrangement or other credit enhancement related to 1 or more qualified financial contracts described in clause (i); [1]
Applicability of other provisions Subsection (b)(12) of this section shall apply in the case of any judicial action or proceeding brought against any liquidating agent referred to in subparagraph (A), or the credit union for which such liquidating agent was appointed, by any party to a contract or agreement described in subparagraph (A)(i) with such credit union.
a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or byproduct thereof, with a maturity date more than 2 days after the date the contract is entered into, including,
Such term is applicable for purposes of this subsection only and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any swap agreement under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000 [7 U.S.C. 27 to 27f], the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934 [15 U.S.C. 78c
(a)(47)]) and the Commodity Exchange Act [7 U.S.C. 1 et seq.].
Certain protections in event of appointment of conservator Notwithstanding any other provision of this chapter (other than subsections (b)(9) and (c)(10) of this section, and section 1788
Clarification No provision of law shall be construed as limiting the right or power of the Board, or authorizing any court or agency to limit or delay, in any manner, the right or power of the Board to transfer any qualified financial contract in accordance with paragraphs (9) and (10) of this subsection or to disaffirm or repudiate any such contract in accordance with subsection (c)(1) of this section.
In the case of a qualified financial contract referred to in clause (i), any payment or delivery obligations otherwise due from a party pursuant to the qualified financial contract shall be suspended from the time the liquidating agent is appointed until the earlier of—
Recordkeeping requirements The Board, in consultation with the appropriate Federal banking agencies, may prescribe regulations requiring more detailed recordkeeping by any insured credit union with respect to qualified financial contracts (including market valuations) only if such insured credit union is in a troubled condition (as such term is defined by the Board pursuant to section 1790a of this title).
In general In making any transfer of assets or liabilities of a credit union in default which includes any qualified financial contract, the conservator or liquidating agent for such credit union shall either—
transfer to 1 financial institution, other than a financial institution for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency proceeding—
Transfer to foreign bank, foreign financial institution, or branch or agency of a foreign bank or financial institution In transferring any qualified financial contracts and related claims and property under subparagraph (A)(i), the conservator or liquidating agent for the credit union shall not make such transfer to a foreign bank, financial institution organized under the laws of a foreign country, or a branch or agency of a foreign bank or financial institution unless, under the law applicable to such bank, financial institution, branch or agency, to the qualified financial contracts, and to any netting contract, any security agreement or arrangement or other credit enhancement related to 1 or more qualified financial contracts, the contractual rights of the parties to such qualified financial contracts, netting contracts, security agreements or arrangements, or other credit enhancements are enforceable substantially to the same extent as permitted under this section.
Transfer of contracts subject to the rules of a clearing organization In the event that a conservator or liquidating agent transfers any qualified financial contract and related claims, property, and credit enhancements pursuant to subparagraph (A)(i) and such contract is cleared by or subject to the rules of a clearing organization, the clearing organization shall not be required to accept the transferee as a member by virtue of the transfer.
A person who is a party to a qualified financial contract with an insured credit union may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(A) of this subsection or section 4403 or 4404 of this title, solely by reason of or incidental to the appointment of a liquidating agent for the credit union institution (or the insolvency or financial condition of the credit union for which the liquidating agent has been appointed)—
A person who is a party to a qualified financial contract with an insured credit union may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(E) of this subsection or section 4403 or 4404 of this title, solely by reason of or incidental to the appointment of a conservator for the credit union or [3]
the insolvency or financial condition of the credit union for which the conservator has been appointed).
Treatment of bridge banks 4 The following institutions shall not be considered to be a financial institution for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency proceeding for purposes of paragraph (9):
A credit union organized by the Board, for which a conservator is appointed either—
“Business day” defined For purposes of this paragraph, the term “business day” means any day other than any Saturday, Sunday, or any day on which either the New York Stock Exchange or the Federal Reserve Bank of New York is closed.
Disaffirmance or repudiation of qualified financial contracts In exercising the rights of disaffirmance or repudiation of a conservator or liquidating agent with respect to any qualified financial contract to which an insured credit union is a party, the conservator or liquidating agent for such credit union shall either—
Certain security interests not avoidable No provision of this subsection shall be construed as permitting the avoidance of any legally enforceable or perfected security interest in any of the assets of any credit union except where such an interest is taken in contemplation of the credit union’s insolvency or with the intent to hinder, delay, or defraud the credit union or the creditors of such credit union.
In general The conservator or liquidating agent may enforce any contract, other than a director’s or officer’s liability insurance contract or a credit union bond, entered into by the credit union notwithstanding any provision of the contract providing for termination, default, acceleration, or exercise of rights upon, or solely by reason of, insolvency or the appointment of or the exercise of rights or powers by a conservator or liquidating agent.
Certain rights not affected No provision of this paragraph may be construed as impairing or affecting any right of the conservator or liquidating agent to enforce or recover under a directors or officers liability insurance contract or credit union bond under other applicable law.
Consent requirement (i)
Exception for Federal Reserve and Federal home loan banks No provision of this subsection shall apply with respect to—
Savings clause The meanings of terms used in this subsection are applicable for purposes of this subsection only, and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any similar terms under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000 [7 U.S.C. 27 to 27f], the securities laws (as that term is defined in section (a)(47) [5]
of the Securities Exchange Act of 1934), and the Commodity Exchange Act [7 U.S.C. 1 et seq.].
Payment of insured deposits (1)
In general In case of the liquidation of any insured credit union, payment of the insured deposits in such credit union shall be made by the Board as soon as possible, subject to the provisions of subsection (e) of this section, either by cash or by making available to each accountholder a transferred deposit in a new credit union in the same community or in another insured credit union in an amount equal to the insured deposit of such accountholder.
Proof of claims The Board, in its discretion, may require proof of claims to be filed and may approve or reject such claims for insured deposits.
Resolution of disputes A determination by the Administration regarding any claim for insurance coverage shall be treated as a final determination for purposes of this section. In its discretion, the Board may promulgate regulations prescribing procedures for resolving any disputed claim relating to any insured deposit or any determination of insurance coverage with respect to any deposit. A final determination made by the Board regarding any claim for insurance coverage shall be a final agency action reviewable in accordance with chapter 7 of title 5 by the United States district court for the Federal judicial district where the principal place of business of the credit union is located.
Statute of limitations Any request for review of a final determination by the Board regarding any claim for insurance coverage shall be filed with the appropriate United States district court not later than 60 days after the date on which such determination is issued.
Subrogation of Board (1)
In general Notwithstanding any other provision of Federal law, the law of any State, or the constitution of any State, the Board, upon the payment to any accountholder as provided in subsection (d) of this section in connection with any insured credit union described in such subsection or the assumption of any deposit in such credit union by another insured credit union pursuant to this section, shall be subrogated to all rights of the accountholder against such credit union to the extent of such payment or assumption.
Dividends on subrogated amounts The subrogation of the Board under paragraph (1) with respect to any insured credit union shall include the right on the part of the Board to receive the same dividends from the proceeds of the assets of such credit union as would have been payable to the accountholder on a claim for the insured deposit, but such accountholder shall retain such claim for any uninsured or unassumed portion of the deposit.
In general Notwithstanding any other provision of Federal law or the law of any State, this subsection shall govern the rights of the creditors (other than insured accountholders) of such credit union.
Maximum liability The maximum liability of the Board, acting as liquidating agent or in any other capacity, to any person having a claim against the liquidating agent or the insured credit union for which such liquidating agent is appointed shall equal the amount such claimant would have received if the Board had liquidated the assets and liabilities of such credit union without exercising the Board’s authority under subsection (n) of this section.
In general The Board may, in its discretion and in the interests of minimizing its losses, use its own resources to make additional payments or credit additional amounts to or with respect to or for the account of any claimant or category of claimants. The Board shall not be obligated, as a result of having made any such payment or credited any such amount to or with respect to or for the account of any claimant or category of claimants, to make payments to any other claimant or category of claimants.
Manner of payment The Board may make the payments or credit the amounts specified in subparagraph (A) directly to the claimants or may make such payments or credit such amounts to an open insured credit union to induce the open insured credit union to accept liability for such claims.
Limitation on court action Except as provided in this section, no court may take any action, except at the request of the Board of Directors by regulation or order, to restrain or affect the exercise of powers or functions of the Board as a conservator or a liquidating agent.
Liability of directors and officers A director or officer of an insured credit union may be held personally liable for monetary damages in any civil action by, on behalf of, or at the request or direction of the Board, which action is prosecuted wholly or partially for the benefit of the Board—
Damages In any proceeding related to any claim against an insured credit union’s director, officer, employee, agent, attorney, accountant, appraiser, or any other party employed by or providing services to an insured credit union, recoverable damages determined to result from the improvident or otherwise improper use or investment of any insured credit union’s assets shall include principal losses and appropriate interest.
Board as liquidating agent of State-chartered credit unions Whenever any insured State-chartered credit union shall have been closed by action of its board of directors or by the commission, board, or authority having supervision of such credit union, as the case may be, or by a court of competent jurisdiction, on account of bankruptcy or insolvency, the Board shall accept appointment as liquidating agent therefor, if such appointment is tendered by the commission, board, or authority having supervision of such credit union, or by a court of competent jurisdiction, and is authorized or permitted by State law. With respect to any such State-chartered credit union, the Board as such liquidating agent shall possess all the rights, powers, and privileges granted by State law to a liquidating agent of a State-chartered credit union. For the purposes of this subsection, the term “liquidating agent” includes a liquidating agent, receiver, conservator, commission, person, or other agency charged by law with the duty of winding up the affairs of a credit union.
Insured amounts payable (1)
Net insured amount (A)
In general Subject to the provisions of paragraph (2), the net amount of share insurance payable to any member at an insured credit union shall not exceed the total amount of the shares or deposits in the name of the member (after deducting offsets), less any part thereof which is in excess of the standard maximum share insurance amount, as determined in accordance with this paragraph and paragraphs (5) and (6), and consistently with actions taken by the Federal Deposit Insurance Corporation under section 1821
Aggregation Determination of the net amount of share insurance under subparagraph (A), shall be in accordance with such regulations as the Board may prescribe, and, in determining the amount payable to any member, there shall be added together all accounts in the credit union maintained by that member for that member’s own benefit, either in the member’s own name or in the names of others.
Authority to define the extent of coverage The Board may define, with such classifications and exceptions as it may prescribe, the extent of the share insurance coverage provided for member accounts, including member accounts in the name of a minor, in trust, or in joint tenancy.
Government depositors or members (A)
In general Notwithstanding any limitation in this chapter or in any other provision of law relating to the amount of insurance available to any 1 depositor or member, deposits or shares of a government depositor or member shall be insured in an amount equal to the standard maximum share insurance amount (as determined under paragraph (5)), subject to subparagraph (C).
(c) of title 25) or agency thereof having official custody of tribal funds and lawfully investing the same in a credit union insured in accordance with this subchapter.
Authority to limit deposits The Board may limit the aggregate amount of funds that may be invested or deposited in any credit union insured in accordance with this subchapter by any government depositor or member on the basis of the size of any such credit union in terms of its assets.
Notwithstanding any limitation in this subchapter or in any other provision of law relating to the amount of insurance available for the account of any one depositor or member, funds invested in a credit union insured in accordance with this subchapter pursuant to a pension or profit-sharing plan described in section 401
(d) of title 26, and funds invested in such an insured credit union in the form of individual retirement accounts as described in section 408
(a) of title 26, shall be insured in the amount of “$250,000 [6]
(which amount shall be subject to inflation adjustments as provided under section 1821
(a)(1)(F) of this title, except that $250,000 [7]
shall be substituted for $100,000 [7]
wherever such term appears in such section)” [6]
per account. As to any plan qualifying under section 401(d) orsection 408
(a) of title 26, the term “per account” means the present vested and ascertainable interest of each beneficiary under the plan, excluding any remainder interest created by, or as a result of, the plan.
Coverage for certain employee benefit plan deposits (A)
Pass-through insurance The Administration shall provide pass-through share insurance for the deposits or shares of any employee benefit plan.
Prohibition on acceptance of deposits An insured credit union that is not well capitalized or adequately capitalized may not accept employee benefit plan deposits.
The terms “well capitalized” and “adequately capitalized” have the same meanings as in section 1790d
(3) of title 29;
(d) of title 26; and
Pass-through share insurance
Rule of construction No provision of this paragraph shall be construed as authorizing an insured credit union to accept the deposits of an employee benefit plan in an amount greater than such credit union is authorized to accept under any other provision of Federal or State law.
Standard maximum share insurance amount defined For purposes of this chapter, the term “standard maximum share insurance amount” means $250,000, adjusted as provided under section 1821
Payment; discharge of liability Payment of an insured account to any person by the Board shall discharge the Board to the same extent that payment to such person by the closed insured credit union would have discharged it from liability for the insured account.
Undisclosed names Except as otherwise prescribed by the Board, the Board shall not be required to recognize as the owner of any portion of an account appearing on the records of the closed credit union under a name other than that of the claimant any person whose name or interest as such owner is not disclosed on the records of such closed credit union as part owner of such account, if such recognition would increase the aggregate amount of the insured accounts in such closed credit union.
Withholding of payment due to liability of credit union member The Board may withhold payment of such portion of the insured account of any member of a closed credit union as may be required to provide for the payment of any direct or indirect liability of such member to the closed credit union or its liquidating agent, which is not offset against a claim due from such credit union, pending the determination and payment of such liability by such member or any other person liable therefor.
Unclaimed insured accounts; limitations If, after the Board shall have given at least four months’ notice to the member by mailing a copy thereof to his last-known address appearing on the records of the closed credit union, any member of the closed credit union shall fail to claim his insured account from the Board within 18 months after the appointment of the liquidating agent for the closed credit union, all rights of the member against the Board with respect to the insured accounts shall be barred, and all rights of the member against the closed credit union, or the estate to which the Board may have become subrogated, shall thereupon revert to the member.
Sale of assets; security for loans; approval of court; agreements affecting interest of Board in any asset acquired by it (1)
No agreement which tends to diminish or defeat the right, title, or interest of the Board in any asset acquired by it under this subsection, either as security for a loan or by purchase, shall be valid against the Board unless such agreement—
Prohibition on certain acquisitions of assets (1)
Convicted debtors Except as provided in paragraph (2), any individual who—
has been convicted of an offense under section 215, 657, 1006, 1014, 1032, 1341, 1343, or 1344 of title 18 or of conspiring to commit any such offense, affecting any insured credit union for which the Board is appointed conservator or liquidating agent; and
Settlement of claims Paragraph (1) shall not apply to the sale or transfer by the Board of any asset of any insured credit union to any individual if the sale or transfer of the asset resolves or settles, or is part of the resolution or settlement, of—
Foreign investigations The Board, as conservator or liquidating agent of any insured credit union and for purposes of carrying out any power, authority, or duty with respect to an insured credit union—
may request the assistance of any foreign banking authority and provide assistance to any foreign banking authority in accordance with section 1786
(u) of this title; and
So in original. Probably should read “(or”.
So in original. Probably should be section “3(a)(47)”.
So in original. Quotation marks probably should not appear.
(June 26, 1934, ch. 750, title II, § 207, as added Pub. L. 91–468, § 1(3),Oct. 19, 1970, 84 Stat. 1010; amended Pub. L. 93–495, title I, §§ 101(c), 104
(a),Oct. 28, 1974, 88 Stat. 1501, 1503; Pub. L. 95–630, title V, § 502(b), title XIV, § 1401(c),Nov. 10, 1978, 92 Stat. 3681, 3712; Pub. L. 96–153, title III, § 323(c),Dec. 21, 1979, 93 Stat. 1120; Pub. L. 96–221, title III, § 308(c)(1),Mar. 31, 1980, 94 Stat. 148; Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–86, title VII, § 714(a), (b),Aug. 10, 1987, 101 Stat. 654, 655; Pub. L. 101–73, title IX, § 915(c), title XII, § 1217(a),Aug. 9, 1989, 103 Stat. 486, 530; Pub. L. 101–647, title XXV, §§ 2521(a)(2), 2526(b), 2528(b), 2532(d), 2534(b),Nov. 29, 1990, 104 Stat. 4864, 4876, 4878, 4882, 4883; Pub. L. 103–394, title V, § 501(c)(1),Oct. 22, 1994, 108 Stat. 4143; Pub. L. 105–219, title III, § 301(b)(2),Aug. 7, 1998, 112 Stat. 930; Pub. L. 109–8, title IX, §§ 901(a)(2), (b)(2), (c)(2), (d)(2), (e)(2), (f)(2), (g)(2), (h)(2), (i)(2), 902
(b), 903
(b), 904(b), 905(b), 908(b),Apr. 20, 2005, 119 Stat. 147, 148, 150, 152, 154, 156–159, 162, 166, 183; Pub. L. 109–173, § 2(d)(1), (2),Feb. 15, 2006, 119 Stat. 3602, 3604; Pub. L. 109–351, title VII, §§ 718(b), 720
(b), 721
(b), 726(21)–(23), Oct. 13, 2006, 120 Stat. 1997–1999, 2003; Pub. L. 109–390, §§ 2(a)(2), (b)(2), (c)(2), 3
(b),Dec. 12, 2006, 120 Stat. 2693–2695, 2699; Pub. L. 110–289, div. A, title VI, § 1604(b)(2),July 30, 2008, 122 Stat. 2829; Pub. L. 111–203, title III, §§ 335(b), 343
(b)(1), (3),July 21, 2010, 124 Stat. 1540, 1545.)
The Securities Exchange Act of 1934, referred to in subsec. (c)(8)(D)(v)(I), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. Section 3(a)(47) of the Act is classified to section 78c of Title 15. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.
The Legal Certainty for Bank Products Act of 2000, referred to in subsec. (c)(8)(D)(vi), (15), is title IV of H.R. 5660, as enacted by Pub. L. 106–554, § 1(a)(5),Dec. 21, 2000, 114 Stat. 2763, 2763A–457, which is classified to sections 27 to 27f of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title of 2000 Amendment note set out under section 1 of Title 7 and Tables.
The Commodity Exchange Act, referred to in subsec. (c)(8)(D)(vi), (15), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables.
For definition of Canal Zone, referred to in subsec. (k)(2)(B)(iv), see section 3602
2010—Subsec. (k)(1)(A). Pub. L. 111–203, § 343(b)(3)(A), struck out cl. (i) designation and heading, substituted “Subject to the provisions of paragraph (2), the net amount” for “Subject to clause (ii) and the provisions of paragraph (2), the net amount”, and struck out cls. (ii) and (iii) which related to insurance for noninterest-bearing transaction accounts and defined “noninterest-bearing transaction account”, respectively.
Pub. L. 111–203, § 343(b)(1)(A), designated existing provisions as cl. (i), inserted heading, substituted “Subject to clause (ii) and the provisions of paragraph (2), the net amount” for “Subject to the provisions of paragraph (2), the net amount”, and added cls. (ii) and (iii).
Subsec. (k)(1)(B). Pub. L. 111–203, § 343(b)(3)(B), substituted “subparagraph (A)” for “subparagraph (A)(i)”.
Pub. L. 111–203, § 343(b)(1)(B), substituted “subparagraph (A)(i)” for “subparagraph (A)”.
Subsec. (k)(5). Pub. L. 111–203, § 335(b), substituted “$250,000” for “$100,000”.
2008—Subsec. (c)(10)(C)(i). Pub. L. 110–289substituted “bridge depository institution” for “bridge bank”.
2006—Subsec. (b)(2)(K). Pub. L. 109–351, § 720(b), added subpar. (K).
Subsec. (b)(15)(D). Pub. L. 109–351, § 722(b), designated existing provisions as cl. (i), inserted cl. heading, substituted “Except as provided in clause (ii), after the end of the 6-year period” for “After the end of the 6-year period”, and added cl. (ii).
Subsec. (c)(5)(B)(i)(I). Pub. L. 109–351, § 726(21), inserted “and” after semicolon.
Subsec. (c)(8)(D)(ii)(I). Pub. L. 109–390, § 2(a)(2)(A), substituted “a mortgage loan,” for “a mortgage loan, or” after “certificate of deposit,” and inserted before semicolon at end “(whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in clause (v))”.
Subsec. (c)(8)(D)(ii)(IV). Pub. L. 109–390, § 2(a)(2)(B), inserted “(including by novation)” after “the guarantee” and “(whether or not such settlement is in connection with any agreement or transaction referred to in subclauses (I) through (XII) (other than subclause (II))” before semicolon at end.
Subsec. (c)(8)(D)(ii)(VI) to (VIII). Pub. L. 109–390, § 2(a)(2)(D), (E), added subcls. (VI) and (VII) and redesignated former subcl. (VI) as (VIII). Former subcl. (VIII) redesignated (X).
Subsec. (c)(8)(D)(ii)(IX). Pub. L. 109–390, § 2(a)(2)(D), redesignated subcl. (VII) as (IX). Former subcl. (IX) redesignated (XI).
Pub. L. 109–390, § 2(a)(2)(C), substituted “(VIII), (IX), or (X)” for “or (VIII)” in two places.
Subsec. (c)(8)(D)(ii)(X) to (XII). Pub. L. 109–390, § 2(a)(2)(D), redesignated subcls. (VIII) to (X) as (X) to (XII), respectively.
Subsec. (c)(8)(D)(iv)(I). Pub. L. 109–390, § 2(b)(2), substituted “or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in clause (v))” for “transaction, reverse repurchase transaction”.
Subsec. (c)(8)(D)(vi). Pub. L. 109–390, § 2(c)(2)(C), substituted in concluding provisions “the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity Exchange Act” for “the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Investor Protection Act of 1970, the Commodity Exchange Act, the Gramm-Leach-Bliley Act, and the Legal Certainty for Bank Products Act of 2000”.
Subsec. (c)(8)(D)(vi)(I). Pub. L. 109–390, § 2(c)(2)(A), substituted “, precious metals, or other commodity” for “or precious metals” and “weather swap, option, future, or forward agreement; an emissions swap, option, future, or forward agreement; or an inflation swap, option, future, or forward agreement” for “or a weather swap, weather derivative, or weather option”.
Subsec. (c)(8)(D)(vi)(II). Pub. L. 109–390, § 2(c)(2)(B), inserted “or other derivatives” after “dealings in the swap” and substituted “future, option, or spot transaction” for “future, or option”.
Subsec. (c)(8)(D)(ix). Pub. L. 109–390, § 3(b), added cl. (ix).
Subsec. (c)(8)(G)(ii), (iii). Pub. L. 109–390, § 6(b), added cls. (ii) and (iii) and struck out former cl. (ii) which defined walkaway clause.
Subsec. (c)(13)(C). Pub. L. 109–351, § 718(b), which directed addition of subpar. (C) to subsec. (c)(12), was executed to par. (13) to reflect the probable intent of Congress because par. (12) does not contain subpars. and par. (12) was redesignated (13) by Pub. L. 109–8, § 904(b)(1). See 2005 Amendment note below.
Subsec. (d)(3). Pub. L. 109–351, § 721(b), added par. (3) and struck out former par. (3) which related to resolution of dispute and adjudication of claims.
Subsec. (d)(3)(A). Pub. L. 109–351, § 726(22), which directed substitution of “with” for “to” in heading, could not be executed because there is no subpar. (A) heading after the amendment by Pub. L. 109–351, § 721(b). See above.
Subsec. (d)(4), (5). Pub. L. 109–351, § 721(b), added par. (4) and struck out former pars. (4) and (5) which related to review of the Board’s final determination and the statute of limitations.
Subsec. (f)(3)(A). Pub. L. 109–351, § 726(23), substituted “category of claimants.” for “category or claimants.” in last sentence.
Subsec. (k). Pub. L. 109–173, § 2(d)(1)(A), inserted subsec. heading.
Subsec. (k)(1). Pub. L. 109–173, § 2(d)(1)(A), added par. (1) and struck out former par. (1) which read as follows: “Subject to the provisions of paragraph (2), for the purposes of this subsection, the term ‘insured account’ means the total amount of the account in the member’s name (after deducting offsets) less any part thereof which is in excess of $100,000. Such amount shall be determined according to such regulations as the Board may prescribe, and, in determining the amount due to any member, there shall be added together all accounts in the credit union maintained by him for his own benefit either in his own name or in the names of others. The Board may define, with such classifications and exceptions as it may prescribe, the extent of the insurance coverage provided for member accounts, including member accounts in the name of a minor, in trust, or in joint tenancy.”
Subsec. (k)(2). Pub. L. 109–173, § 2(d)(1)(B)(ii)–(iv), inserted par. heading, added subpar. (A), substituted subpar. (B) designation, heading, and introductory provisions for former subpar. (A) designation and introductory provisions which read “Notwithstanding any limitation in this chapter or in any other provision of law relating to the amount of insurance available for the account of any one depositor or member, in the case of a depositor or member who is—”, redesignated former subpar. (B) as (C), inserted heading, and substituted “government depositor or member” for “depositor or member referred to in subparagraph (A)”.
Subsec. (k)(2)(A). Pub. L. 109–173, § 2(d)(1)(B)(i), substituted period for semicolon at end of cl. (v), realigned margins of cls. (i) to (v), and struck out concluding provisions which read as follows: “his account shall be insured in an amount not to exceed $100,000 per account.”
Subsec. (k)(3). Pub. L. 109–173, § 2(d)(2), substituted “ ‘$250,000 (which amount shall be subject to inflation adjustments as provided under section 1821
(a)(1)(F) of this title, except that $250,000 shall be substituted for $100,000 wherever such term appears in such section)’ ” for “$100,000”.
Subsec. (k)(4), (5). Pub. L. 109–173, § 2(d)(1)(C), added pars. (4) and (5).
2005—Subsec. (c)(8)(A). Pub. L. 109–8, § 901(h)(2)(A)(i), substituted “paragraphs (9) and (10)” for “paragraph (12)” in introductory provisions.
Subsec. (c)(8)(A)(i). Pub. L. 109–8, § 901(h)(2)(A)(ii), substituted “such person has to cause the termination, liquidation, or acceleration” for “to cause the termination or liquidation”.
Subsec. (c)(8)(A)(ii). Pub. L. 109–8, § 901(h)(2)(A)(iii), added cl. (ii) and struck out former cl. (ii) which read as follows: “any right under any security arrangement relating to any contract or agreement described in clause (i); or”.
Subsec. (c)(8)(C)(i). Pub. L. 109–8, § 901(i)(2), inserted “section 91 of this title or any other Federal or State law relating to the avoidance of preferential or fraudulent transfers,” before “the Board”.
Subsec. (c)(8)(D). Pub. L. 109–8, § 901(a)(2)(A), substituted “subsection, the following definitions shall apply:” for “subsection—” in introductory provisions.
Subsec. (c)(8)(D)(i). Pub. L. 109–8, § 901(a)(2)(B), inserted “, resolution, or order” after “any similar agreement that the Board determines by regulation”.
Subsec. (c)(8)(D)(ii). Pub. L. 109–8, § 901(b)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘securities contract’—
“(I) has the meaning given to such term in section 741 of title 11, except that the term ‘security’ (as used in such section) shall be deemed to include any mortgage loan, any mortgage-related security (as defined in section 78c
(a)(41) of title 15), and any interest in any mortgage loan or mortgage-related security; and
Subsec. (c)(8)(D)(iii). Pub. L. 109–8, § 901(c)(2), amended heading and text of cl. (iii) generally. Prior to amendment, text read as follows: “The term ‘forward contract’ has the meaning given to such term in section 101 of title 11.”
Subsec. (c)(8)(D)(iv). Pub. L. 109–8, § 901(d)(2), amended heading and text of cl. (iv) generally. Prior to amendment, text read as follows: “The term ‘repurchase agreement’—
“(I) has the meaning given to such term in section 101 of title 11, except that the items (as described in such section) which may be subject to any such agreement shall be deemed to include mortgage-related securities (as such term is defined in section 78c
(a)(41) of title 15, any mortgage loan, and any interest in any mortgage loan; and
Subsec. (c)(8)(D)(v). Pub. L. 109–8, § 901(e)(2), amended heading and text of cl. (v) generally. Prior to amendment, text read as follows: “The term ‘transfer’ has the meaning given to such term in section 101 of title 11.”
Subsec. (c)(8)(D)(vi). Pub. L. 109–8, § 901(f)(2), added cl. (vi).
Subsec. (c)(8)(D)(vii). Pub. L. 109–8, § 905(b), added cl. (vii).
Subsec. (c)(8)(D)(viii). Pub. L. 109–8, § 901(g)(2), added cl. (viii).
Subsec. (c)(8)(E). Pub. L. 109–8, § 902(b)(1)(A), substituted “other than subsections (b)(9) and (c)(10)” for “other than paragraph (12) of this subsection, subsection (b)(9)” in introductory provisions.
Subsec. (c)(8)(E)(ii). Pub. L. 109–8, § 901(h)(2)(B), added cl. (ii) and struck out former cl. (ii) which read as follows: “any right under any security arrangement relating to such qualified financial contracts; or”.
Subsec. (c)(8)(F), (G). Pub. L. 109–8, § 902(b)(1)(B), added subpars. (F) and (G).
Subsec. (c)(8)(H). Pub. L. 109–8, § 908(b), added subpar. (H).
Subsec. (c)(9). Pub. L. 109–8, § 903(b)(1), reenacted heading without change and amended text generally. Prior to amendment, text related to the transfer of qualified financial contracts, claims, and property of a credit union in default.
Subsec. (c)(10)(A). Pub. L. 109–8, § 903(b)(2), substituted concluding provisions for former concluding provisions which read as follows: “the conservator or liquidating agent shall use such conservator’s or liquidating agent’s best efforts to notify any person who is a party to any such contract of such transfer by 12:00, noon (local time), on the business day following such transfer.”
Subsec. (c)(10)(B) to (D). Pub. L. 109–8, § 903(b)(3), added subpars. (B) and (C) and redesignated former subpar. (B) as (D).
Subsec. (c)(11). Pub. L. 109–8, § 904(b)(2), added par. (11). Former par. (11) redesignated (12).
Subsec. (c)(12). Pub. L. 109–8, § 904(b)(1), redesignated par. (11) as (12). Former par. (12) redesignated (13).
Subsec. (c)(12)(A). Pub. L. 109–8, § 902(b)(2), inserted “or the exercise of rights or powers by” after “the appointment of”.
Subsec. (c)(13), (14). Pub. L. 109–8, § 904(b)(1), redesignated pars. (12) and (13) as (13) and (14), respectively.
Subsec. (c)(15). Pub. L. 109–8, § 904(b)(3), added par. (15).
1998—Subsec. (a)(1)(A). Pub. L. 105–219, § 301(b)(2)(A), substituted “itself” for “himself”.
Subsec. (a)(3). Pub. L. 105–219, § 301(b)(2)(B), added par. (3).
1994—Subsec. (c)(8)(D). Pub. L. 103–394substituted “section 741” for “section 741
(7)” in cl. (ii)(I), “section 101” for “section 101
(24)” in cl. (iii), “section 101” for “section 101
(41)” in cl. (iv)(I), and “section 101” for “section 101
(50)” in cl. (v).
1990—Subsec. (b)(2)(G), (H). Pub. L. 101–647, § 2521(a)(2), added subpars. (G) and (H). Former subpar. (G) redesignated (I).
Subsec. (b)(2)(I). Pub. L. 101–647, § 2534(b), added subpar. (I). Former subpar. (I) redesignated (J).
Pub. L. 101–647, § 2521(a)(2), redesignated subpar. (G) as (I).
Subsec. (b)(2)(J). Pub. L. 101–647, § 2534(b), redesignated subpar. (I) as (J).
Subsec. (b)(16). Pub. L. 101–647, § 2528(b), added par. (16).
Subsec. (q). Pub. L. 101–647, § 2526(b), added subsec. (q).
Subsec. (r). Pub. L. 101–647, § 2532(d), added subsec. (r).
1989—Subsec. (a)(2), (3). Pub. L. 101–73, § 1217(a)(1), redesignated par. (3) as (2) and struck out former par. (2) which detailed the duties of the Board in serving as liquidating agent for bankrupt or insolvent credit unions.
Subsec. (b). Pub. L. 101–73, § 1217(a)(3), (4), added subsec. (b) and redesignated former subsec. (b) as (j).
Subsec. (c). Pub. L. 101–73, § 1217(a)(3), (4), added subsec. (c) and redesignated former subsec. (c) as (k).
Subsec. (d). Pub. L. 101–73, § 1217(a)(2), (4), added subsec. (d) and struck out former subsec. (d) which provided for subrogation by the Board to all rights of a member against a closed credit union to the extent of the Board’s payment to the member.
Subsecs. (e) to (i). Pub. L. 101–73, § 1217(a)(3), (4), added subsecs. (e) to (i) and redesignated former subsecs. (e) to (i) as (l) to (p), respectively.
Subsec. (j). Pub. L. 101–73, § 1217(a)(2), (3), redesignated former subsec. (b) as (j) and struck out former subsec. (j) which provided that the power of the Board respecting liquidations was subject to the Board’s own regulations or to regulations of other public authorities.
Subsec. (k). Pub. L. 101–73, § 1217(a)(3), (5), redesignated former subsec. (c) as (k) and in par. (1), struck out first and fifth sentences which provided that, whenever an insured credit union was closed for liquidation on account of bankruptcy or insolvency, the Board was to pay insured accounts as soon as possible, and that in such cases the Board could investigate claims, require proof of them, and require determination by a court.
Subsec. (k)(1). Pub. L. 101–73, § 915(c), inserted “may investigate said claims under section 1786
(p) of this title,” after “before paying the insured accounts,” in last sentence.
Subsecs. (l) to (p). Pub. L. 101–73, § 1217(a)(3), redesignated former subsecs. (e) to (i) as (l) to (p), respectively.
1987—Subsec. (a)(1). Pub. L. 100–86, § 714(a), designated existing provisions as subpar. (A) and added subpar. (B).
Subsec. (j). Pub. L. 100–86, § 714(b), redesignated former section 1788
(c) of this title as subsec. (j) of this section and substituted “subject only to the regulation of the Board, or, in cases where the Board has been appointed liquidating agent solely by a public authority having jurisdiction over the matter other than said Board, subject only to the regulation of such public authority” for “subject to the regulation of the court or other public body having jurisdiction over the matter”.
1986—Subsec. (c)(3). Pub. L. 99–514substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954” wherever appearing, which for purposes of codification was translated as “title 26” thus requiring no change in text.
1980—Subsec. (c)(1). Pub. L. 96–221substituted “$100,000” for “$40,000”.
1979—Subsec. (c)(2)(A)(v). Pub. L. 96–153added cl. (v).
1978—Subsecs. (a), (b). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing, “it” for “he” and “him”, and “its” for “his”, where appropriate.
Subsec. (c). Pub. L. 95–630, §§ 502(b), 1401
(c), substituted in pars. (1) and (2) “Board” for “Administrator” wherever appearing and “it” and “its” for “he” and “his”, respectively, where appropriate, and added par. (3).
Subsecs. (d) to (i). Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing, and “it” and “its” for “him” and “his”, respectively, where appropriate.
1974—Subsec. (c)(1). Pub. L. 93–495, §§ 101(c)(1), (2), 104
(a), redesignated existing provisions as par. (1), substituted “Subject to the provisions of paragraph (2), for the purposes of this subsection” for “For the purposes of this subsection”, and substituted “$40,000” for “$20,000”. As enacted section 104(a) ofPub. L. 93–495amended the first sentence; however the amendment was executed to the second sentence editorially since this would appear to be the probable intent of Congress.
Subsec. (c)(2). Pub. L. 93–495, § 101(c)(3), added par. (2).
Amendment by section 335(b) ofPub. L. 111–203effective 1 day after July 21, 2010, except as otherwise provided, see section 4 ofPub. L. 111–203, set out as an Effective Date note under section 5301 of this title.
Pub. L. 111–203, title III, § 343(b)(2),July 21, 2010, 124 Stat. 1545, provided that: “The amendments made by paragraph (1) [amending this section] shall take effect upon the date of the enactment of this Act [July 21, 2010]”.
Pub. L. 111–203, title III, § 343(b)(3),July 21, 2010, 124 Stat. 1545, provided that the amendment made by section 343
(b)(3) is effective Jan. 1, 2013.
Amendment by Pub. L. 96–221effective on Mar. 31, 1980, see section 308(e) ofPub. L. 96–221, set out as a note under section 1817 of this title.
Pub. L. 96–221, title III, § 308(c)(2),Mar. 31, 1980, 94 Stat. 148, provided that: “The amendment made by this subsection [amending this section] is not applicable to any claim arising out of the closing of a credit union for liquidation on account of bankruptcy or insolvency pursuant to section 207 of the Federal Credit Union Act (12 U.S.C. 1787) prior to the effective date of this section [see section 308(e) ofPub. L. 96–221, set out as an Effective Date of 1980 Amendment note under section 1817 of this title].”
Amendment by Pub. L. 96–153applicable only to claims arising after Dec. 21, 1979, with respect to a closing of a bank, etc., see section 323(e) ofPub. L. 96–153, set out as an Effective and Termination Dates of 1979 Amendment note under section 1728 of this title.
Pub. L. 95–630, title XIV, § 1402,Nov. 10, 1978, 92 Stat. 3713, provided that: “This title [amending this section and sections 1728 and 1821 of this title] shall take effect upon enactment [Nov. 10, 1978].”
For effective date of amendment by section 101(c)(1), (2) ofPub. L. 93–495see section 101(g) ofPub. L. 93–495, set out as a note under section 1813 of this title.
Pub. L. 93–495, title I, § 104(b), (c),Oct. 28, 1974, 88 Stat. 1503, provided that:
“(b) The amendment made by this section [amending this section] is not applicable to any claim arising out of the closing of a credit union for liquidation on account of bankruptcy or insolvency pursuant to section 207 of title II of the Federal Credit Union Act (12 U.S.C. 1787) prior to the effective date of this section.
“(c) The amendment made by this section shall take effect on the thirtieth day beginning after the date of enactment of this Act [Oct. 28, 1974.].”
Subsec. (k)(5) of this section to apply with “$250,000” substituted for “$100,000” during period beginning on Oct. 3, 2008, and ending on Dec. 31, 2009, see section 5241