An Act to amend the Federal Credit Union Act
PL 90-375 (H.R.14907), enacted 07/05/1968

284 
July 5, 1968 
[H. R. 14907] 
PUBLIC LAW 90-375-JULY 5, 1968 
Public Law 90-375 
[82 STAT. 
AN ACT 
To amend the Federal Credit Union Act 
Federal Credit 
Union Act, amend-
ments. 
73 Stat. 628. 
12 u s e 1757. 
Purchase of 
liquidating notes. 
Borrowing au-
thority. 
12 u s e 1761b. 
Unsecured loan 
limit. 
12 u s e 1761c. 
Supervisory com-
mittee audit. 
12 u s e 1761d. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ 
SECTION 1. The Federal Credit Union Act (12 U.S.C., chapter 14) 
is amended as follows: 
(1) Section 8(5) is amended by changing "loans with maturities 
not exceeding five years'' to read "unsecured loans with maturities 
not exceeding five years, and secured loans with maturities not exceed-
ing ten years,". 
(2) Section 8(8) is amended by striking "or" immediately before 
" ( F ) " and by adding at the end thereof: "(G) in shares or deposits of 
any central credit union in which such investments are specifically 
authorized by the board of directors of the Federal credit union mak-
ing the investment;". 
(3) Section 8 is amended by redesignating paragraph (14) as para-
graph (15), by striking out "and" at the end of paragraph (13), and 
by inserting immediately after paragraph (13) : 
"(14) in accordance with rules and regulations prescribed by 
the Director, to purchase from any liquidating credit union notes 
made by individual members of the liquidating credit union at 
such prices as may be agreed upon by the board of directors of the 
liquidating credit union and the board of directors of the purchas-
ing credit union, but no purchase may be made under authority of 
this paragraph if, upon the making of that purchase, the aggre-
gate of the unpaid balances of notes purchased under authority 
of this paragraph would exceed 5 per centum of the unimpaired 
capital and surplus of the credit union; and". 
(4) The fourth sentence of section 14 is amended by changing "the 
purchase and sale of securities or the making of loans to other credit 
unions, or both" to read "the purchase and sale of securities, the bor-
rowing of funds, and the making of loans to other credit unions". 
(5) Section 15 is amended by striking the next to last sentence and 
inserting the following new sentences: "No loan which is not ade-
quately secured may be made to any member, if, upon the making of 
that loan, the member w^ould be indebted to the Federal credit union 
upon loans made to him in an aggregate amount ^vhich, in the case of 
a credit union whose unimpaired capital and surplus is less than 
$8,000, would exceed $200, or which, in the case of any other credit 
union, would exceed $2,500 or 2i/^ per centum of its unimpaired capi-
tal and surplus, whichever is less. No loan may be made to any mem-
ber if, upon the making of that loan, the member would be indebted 
to the Federal credit union upon loans made to him in an aggregate 
amount which would exceed $200 or 10 per centum of the credit 
union's unimpaired capital and surplus, whichever is greater." 
(6) The first sentence of .section 16 is amended to read as follows: 
"The supervisory committee shall make or cause to be made a semi-
annual audit and shall submit a report of that audit to the board of 
directors and a summary of the report to the members at the next 
annual meeting of the credit union; shall make or cause to be made 
such supplementary audits as it deems necessary or as may be ordered 
by the Director, and submit reports of the supplementary audits to 
the board of directors; may by a unanimous vote suspend any officer 
82 STAT. ] 
PUBLIC LAW 90-375-JULY 5, 1968 
285 
of the credit union or any member of the credit committee or of the 
board of directors, until the next members' meeting, which shall be 
held not less than seven nor more than fourteen days after any such sus-
pension, at which meeting any such suspension shall be acted upon by 
the members; and may call by a majority vote a special meeting of the 
members to consider any violation of this Act, the charter, or the 
bylaws, or any practice of the credit union deemed by the supervisory 
committee to be unsafe or unauthorized." 
(7) The second sentence of section 16 is amended by inserting "a 
majority vote of" immediately before "the board of directors". 
SEC. 2. (a) Section 21(f) 
of the Federal Credit Union Act 
(12 U.S.C. 1766(f)) is amended by inserting "(1)" after "(f)", 
and by adding at the end thereof the following: 
"(2) (A) The Director is authorized to conduct directly, or to 
make grants to or contracts with colleges or universities. State or 
local educational agencies, or other appropriate public or private 
nonprofit organizations to conduct, programs for the training of 
persons engaged, or preparing to engage, in the operation of credit 
unions, and in related consumer counseling programs, serving the 
poor. He is authorized to establish a program of experimental, 
developmental, demonstration, and pilot projects, either directly 
or by grants to public or private nonprofit organizations, includ-
ing credit unions, or by contracts with such organizations or other 
private organizations, designed to promote more effective operation 
of credit unions, and related consumer counseling programs, serving 
the poor. 
"(B) In carrying out his authority under this paragraph, the Di-
rector shall consult with officials of the Office of Economic Opportunity 
and other appropriate Federal agencies responsible for the administra-
tion of projects or programs concerned with problems of the poor. The 
development and operation of programs and projects under this para-
graph shall involve maximum feasible participation of residents of 
the areas and members of the groups served by such programs and 
projects, with community action agencies established under the provi-
sions of the Economic Opportunity Act of 1964 serving, to the extent 
feasible, as the means through which such participation is achieved. 
"(C) In order to carry out the purposes of this paragraph, there is 
authorized to be appropriated, as a supplement to any funds that may 
be expended by the Director pursuant to sections 6 and 7 for such pur-
poses, not to exceed $300,000 for the fiscal year ending June 30, 1970, 
and not to exceed $1,000,000 for the fiscal year ending June 30, 1971." 
(b) The amendments made by subsection (a) shall become effective 
Jujv 1,1968. 
SEC. 3. The Federal Credit Union Act is amended by adding at the 
end thereof the following new section: 
73 Stat. 634. 
12 use 1761d. 
Consumer coun-
seling. 
78 Stat. 508. 
42 use 2701 
note. 
Appropriations. 
12 use 1755, 
1756. 
Effective date. 
"GIFTS 
"SEC. 28. The Director is authorized to accept gifts of money made 
unconditionally by will or otherwise for the carrying out of any of the 
functions under this Act. A conditional gift of money made by will or 
otherwise for such purposes may be accepted and used in accordance 
with its conditions, but no such gift shall be accepted which is condi-
tioned upon any expenditure not to be met therefrom or from income 
thereof unless the Director determines that supplementation of such 
gift from the fees he may expend pursuant to sections 6 and 7 or from 
286 
PUBLIC LAW 90-376-JULY 5, 1968 
[82 STAT. 
Ante, p. 285. 
^j^^ funds appropriated pursuant to section 21(f) (2) (C) for the pur-
pose of making such expenditure will not adversely affect the soimd 
administration of this Act. Any such gift shall be deposited in the 
Treasury of the United States for the account of the Bureau and may 
12 use 1755. 
be expended in accordance with section 6 or as provided in the preced-
ing sentence." 
Approved July 5, 1968. 
Public Law 90-376 
July 5, 1968 
AN ACT 
1
^
^
- 3^^^] 
Authorizing the Trustees of the National Gallery of Art to construct a building 
or buildings on the site bounded by Fourth Street, Pennsylvania Avenue, Third 
Street, and Madison Drive Northwest, in the District of Columbia, and making 
provision for the maintenance thereof. 
Be It enacted hy the SeTiate and House of Representatives 
of the 
^^Nationai Gallery [jjiif^d States of America in Congress assembled^ That the Trustees 
Additional 
of the National Gallery of Art are authorized to construct within the 
building. 
jipga reserved as a site for future additions by the third sentence of the 
first section of the joint resolution entitled "Joint Resolution provid-
ing for the construction and maintenance of a National Gallery of 
Art", approved March 24,1937 (50 Stat. 51; 20 U.S.C. 71 et seq.) one 
or more buildings to serve as additions to the National Gallery of Art. 
The cost of constructing any such building shall be paid from trust 
funds administered by such Trustees. The plans and specifications 
for any such building shall be approved by the Commission of Fine 
Arts and the National Capital Planning Commission. 
SEC. 2. Any building constructed under authority of the first sec-
tion of this Act shall, upon completion, be a part of the National 
Gallery of Art. 
SEC. 3. Paragraph (2) of section 9 of the Act entitled "An Act 
relating to the policing of the buildings and grounds of the Smith-
sonian Institution and its constituent bureaus", approved October 
78 Stat. 366. 
24,1951 (65 Stat. 634; 40 U.S.C. 193n et seq.) is amended by inserting 
" ( A ) " immediately after "held to extend" and by striking out the 
period at the end thereof and inserting in lieu thereof a comma and the 
following: "(B) to the line of the face of the south curb of Penn-
sylvania Avenue Northwest, between Fourth Street and Third Street 
Northwest, to the line of the face of the west curb of Third Street 
Northwest, between Pennsylvania Avenue and Madison Drive North-
west, to the line of the face of the north curb of Madison Drive North-
west, between Third Street and Fourth Street Northwest, and to the 
line of the face of the east curb of Fourth Street Northwest, between 
Pennsylvania Avenue and Madison Drive Northwest." 
Jurisdiction. 
g^,^^ ^ rpj^^ Commlssiouer of the District of Columbia is authorized 
to transfer to the United States such jurisdiction as the District of 
Columbia may have over any of the property within the area referred 
to in the first section of this Act. 
SEC. 5. If any public utility (whether privately or publicly owned) 
located within the area referred to in the first section of this Act is 
required to be relocated or protected by reason of the construction 
within such area of any addition to the National Gallery of Art, the 
cost of such relocation or protection shall be paid from trust funds 
administered by the Trustees of the National Gallery of Art. 
Approved July 5, 1968.