An Act to provide temporary insurance for the member accounts of certain Federal credit unions, and for other purposes
PL 92-221 (H.R.9961), enacted 12/23/1971

796 
PUBLIC LAW 92-221-DEC. 23, 1971 
[85 STAT. 
Ante, p. 788. 
Effective date. 
"(1) Each member of the Board of Education elected from a ward 
shall at the time of his nomination (A) be a qualified elector (as that 
term is defined in section 2 of the District of Columbia Election Act) 
in the school election ward from which he seeks election, (B) have, 
for the ninety-day period immediately preceding his nomination, 
resided in the school election ward from which he is nominated, and 
(C) have, during the ninety-day period next preceding his nomina-
tion, been an actual resident of the District of Columbia and have 
during such period claimed residence nowhere else. A member shall 
forfeit his office upon failure to maintain the qualifications required 
by this paragraph. 
"(2) Each member of the Board of Education elected at large shall 
at the time of his nomination (A) be a qualified elector (as that term 
is defined in section 2 of the District of Columbia Election Act) in the 
District of Columbia, and (B) have, during the ninety-day period 
next preceding his nomination, been an actual resident of the District 
of Columbia and have during such period claimed residence nowhere 
else. A member shall forfeit his office upon failure to maintain the 
qualifications required by this paragraph. 
•'(3) No individual may hold the office of member of the Board of 
Education and (A) hold another elective office other than delegate 
or alternate delegate to a convention of a political party nominating 
candidates for President and Vice President of the United States, or 
(B) also be an officer or employee of the District of Columbia gov-
ernment or of the Board of Education. A member will forfeit his 
office upon failure to maintain the qualifications required by this 
paragraph."'. 
SEC. 4. The provisions of this Act and the amendments made thereby 
shall take effect as of January 1,1972. 
Approved December 23, 1971. 
December 23, 1971 
[H. R. 9961] 
Public Law 92-221 
AN ACT 
To provide Federal credit unions witli two additional years to meet the require-
ments for insurance, and for other purposes. 
Federal Credit 
Union Act, 
amendments. 
84 Stat. 994. 
Temporary 
insurance. 
84 Stat. 1017. 
12 u s e 1762. 
Be it enacted hy the Senate and House of Re'presentatives 
of the 
United States of America in Congress assembled, 
SECTION 1. (a) Paragraph (2) of subsection (c) of section 201 of 
the Federal Credit Union Act (12 U.S.C. 1781(c) (2)) is amended by 
striking out "reject" and inserting in lieu thereof "disapprove". 
(b) Subsection (d) of such section 201 (12 U.S.C. 1781(d)) is 
amended to read as follows: 
"(d) In the case of any Federal credit union whose application for 
insurance is disapproved, if such Federal credit union has annually 
transferred such a percentage of its gross income to its reserves as is 
required under section 116(a) and notwithstanding any reserving 
requirements established under section 116(b) of this Act, the 
Administrator shall nonetheless issue to such Federal credit union a 
certificate of insurance which shall be valid for a period of two years. 
The Administrator shall suspend or revoke the charter of any Federal 
credit union which has failed, upon the expiration of such two-year 
period of insurance, to file an application for insurance which is 
approved by the Administrator in accordance with subsection (c). A 
Federal credit union which is insured under this subsection for a 
84 Stat. 999. 
12 u s e 1783. 
85 STAT. ] 
PUBLIC LAW 92-221-DEC. 23, 1971 
797 
period of two years is an insured credit union under the provisions of 
this title for such period of two years. The Administrator shall, having 
regard to the purposes of this subsection, make every reasonable effort 
to prevent the closing of any Federal credit union which is insured for 
a period of two years under this subsection and is found to be in finan-
cial difficulties, if he determines that with the technical assistance and 
management training and counseling authorized to be provided under 
this subsection there is reasonable assurance that such difficulties can 
be sufficiently resolved within such two-year period so as to minimize 
the expenses of the Fund. The Administrator shall offer technical 
assistance, management training, and management counseling to all 
credit unions whose application for insurance has been disapproved 
so as to enable the maximum number of such credit unions to meet the 
standards for insurance required by this title. In furnishing such tech-
nical assistance, management training, and management counseling, 
the Administrator may utilize moneys in the National Credit Union 
Share Insurance Fund as provided under section 203(a) of this title. 
The Administrator shall also encourage to the maximum extent feasi-
ble, that such technical assistance, management training, and manage-
ment counseling be made available through State stabilization funds, 
similar funds, or similar State credit union organizations. The Admin-
istrator shall also encourage State Credit Union Stabilization Funds 
or similar funds to reimburse the Credit Union Share Insurance Fund 
for any insurance payments made on behalf of accounts at insured 
credit unions whose applications for insurance have been disapproved." 
SEC. 2. Subsection (c) of section 201 of the Federal Credit Union 
state credit 
Act (12 IT.S.C. 1781(c)) is amended by adding at the end thereof the ""'°"'* 
following new paragraph: 
"(3) With respect to State credit unions which are authorized by 
State law to receive demand deposits, the Administrator shall approve 
the application of any such State credit union for insurance of its 
member accounts if (A) such State credit union otherw^ise meets the 
requirements for insurance established under this Act, and (B) in the 
event of liquidation of such State credit union, the claims with respect 
to demand deposit accounts shall be subordinate to the claims with 
respect to member accounts. For purposes of this paragraph and for 
purposes of determining the extent of insurance coverage under this 
Act, demand deposit accounts shall not be considered member accounts 
and shall not be insured under the provisions of this Act." 
SEC. 3. Section 208(a)(2) of the Federal Credit Union Act (12 
'^°"""-
U.S.C. 1788(a) (2)) is amended by— 
(1) striking out "assumption of its liability by another insured 
credit union" and inserting in lieu thereof "assumption of its lia-
bility by another person"; 
(2) striking out "may guarantee any other insured credit union 
against loss by reason of its" and inserting in lieu thereof "may 
guarantee any person against loss by reason of his"; and 
(3) adding at the end thereof the following new sentence: "For 
"Person." 
purposes of this paragraph, the term 'person' means any credit 
union, individual, partnership, corporation, trust, estate, coopera-
tive, association, government or governmental subdivision or 
agency, or other entity." 
Approved December 23, 1971.