An Act to amend section 22(g) of the Federal Reserve Act relating to loans to executive officers by member banks of the Federal Reserve System, and to amend the Federal Credit Union Act to modify the loan provisions relating to directors, members of the supervisory committee, and members of the credit committee of Federal credit unions
PL 90-44 (S.714), enacted 07/03/1967

81 STAT. J 
PUBLIC LAW 90-44-JULY 3, 1967 
109 
Public Law 90-44 
AN ACT 
j^iy 3_ jgg7 
To amend section 22(g) of the Federal Reserve Act relating to loans to execu- 
CS. 714] 
tive officers by member banks of the Federal Reserve System, and to amend 
the Federal Credit Union Act to modify the loan provisions relating to directors, 
members of the supervisory committee, and members of the credit committee 
of Federal credit unions. 
Be it enacted 'by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
SECTION 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. eralTidu"'* ^^'^" 
375a) is amended to read: 
unions. 
"(g)(1) Except as authorized under this subsection, no member 
Loans to offi-
bank may extend credit in any manner to any of its own executive ''^I'stat. 7i6; 
officers. No executive officer of any member bank may become indebted 53 stat. 842. 
to that member bank except by means of an extension of credit which 
the bank is authorized to make under this subsection. Any extension of 
conditions, 
credit under this subsection shall be promptly reported to the board of 
directors of the bank, and may be made only if— 
"(A) the bank would be authorized to make it to borrowers 
other than its officers; 
"(B) it is on terms not more favorable than those afforded 
other borrowers; 
"(C) the officer has submitted a detailed current financial state-
ment; and 
"(D) it is on condition that it shall become due and payable 
on demand of the bank at any t!me when the officer is indebted to 
any other bank or banks on account of extensions of credit of any 
one of the three categories respectively referred to in paragraphs 
(2), (3), and (4) in an aggregate amount greater than the amount 
of credit of the same category that could be extended to him by 
the bank of w^hich he is an officer. 
"(2) With the specific prior approval of its board of directors, a 
Mortgage loans. 
member bank may make a loan not exceeding $30,000 to any executive 
officer of the bank if, at the time the loan is made— 
"(A) it is secured by a first lien on a dwelling which is 
expected, after the making of the loan, to be owned by the officer 
and used by him as his residence, and 
"(B) no other loan by the bank to the officer under authority 
of this paragraph is outstanding. 
"(3) A member bank may make extensions of credit to any execu- 
Educational 
tive officer of the bank, not exceeding the aggregate amount of $10,000 '°^"*-
outstanding at any one time, to finance the education of the children 
of the officer. 
"(4) A member bank may make extensions of credit not otherwise 
specifically authorized under this subsection to any executive officer of 
the bank, not exceeding the aggregate amount of $5,000 outstanding 
at any one time. 
"(5) Except to the extent permitted under paragraph (4), a mem-
ber bank may not extend credit to a partnership in which one or more 
of its executive officers are partners having either individually or 
together a majority interest. For the purposes of paragraph (4), the 
full amount of any credit so extended shall be considered to have been 
extended to each officer of the bank who is a member of the partnership. 
"(6) Whenever an executive officer of a member bank becomes 
indebted to any bank or banks (other than the one of which he is an 
officer) on account of extensions of credit of any one of the three cate-
gories respectively referred to in paragraphs (2), (3), and (4) in an 
aggregate amount greater than the aggregate amount of credit of the 
110 
PUBLIC LAW 90-44-JULY 3, 1967 
[81 STAT. 
64 Stat. 879; 
80 Stat. 1046, 
1054. 
12 use 1818. 
74 Stat. 547. 
12 use 1817. 
Rules and 
regulations. 
Federal Credit 
Unions, powers. 
73 Stat. 630. 
Loans to offi-
cers, conditions. 
same category that could lawfully be extended to him by the bank, he 
shall make a written report to the board of directors of the bank, stat-
ing the date and amount of each such extension of credit, the security 
therefor, and the purposes for which the proceeds have been or are to 
be used. 
"(7) This subsection does not prohibit any executive officer of a 
member bank from endorsing or guaranteeing for the protection of the 
bank any loan or other asset previously acquired by the bank in good 
faith or from incurring any indebtedness to the bank for the purpose 
of protecting the bank against loss or giving financial assistance to it. 
"(8) Each day that any extension of credit in violation of this sub-
section exists is a continuation of the violation for the purposes of 
section 8 of the Federal Deposit Insurance Act. 
" (9) Each member bank shall include with (but not as part of) each 
report of condition and copy thereof filed under section 7(a) (3) of 
the Federal Deposit Insurance Act a report of all loans under authority 
of this subsection made by the bank since its previous report of 
condition. 
"(10) The Board of Governors of the Federal Reserve System may 
prescribe such rules and regulations, including definitions of terms, as 
it deems necessary to effectuate the purposes and to prevent evasions 
of this subsection. 
SEC. 2. Section 8 of the Federal Credit Union Act (12 U.S.C. 1757) 
is amended— 
(1) by changing, in paragraph (5) thereof, "shall exceed the 
amount of his holdings in the Federal Credit Union as represented 
by shares thereof plus the total unencumbered and unpledged 
shareholdings in the Federal Credit Union of any member pledged 
as security lor the obligation of such director or committee mem-
ber" to read "may be made except as authorized under paragraph 
(6) of this section"; 
(2) by redesignating paragraphs (6) through (13) of that sec-
tion as paragraphs (7) through (14), respectively; and 
(3) by inserting, immediately after paragraph (5), the follow-
ing new paragraph: 
"(6) to niake loans to its own directors and to members of its 
own supervisory or credit committee, but all such loans shall be 
reported to the Director at least annually, and such a loan may 
be made only if— 
" (A) the loan complies with all lawful requirements under 
this Act with respect to loans to other borrowers and is not 
on terms more favorable than those extended to other 
borrowers; 
"(B) upon the making of the loan, the aggregate amount 
of loans outstanding to the borrow^er will not exceed the total 
amount of shareholdings in the credit union, not otherwise 
encumbered or pledged, which are pledged as security for 
loans to the borrower, or $5,000, whichever is greater; 
"(C) upon the making of the loan, the aggregate amount 
of loans outstanding under authority of this paragraph will 
not exceed 20 per centum of the unimpaired capital and sur-
plus of the credit union; 
"(D) the loan is approved by the credit committee and 
by the board of directors after the submission to them of a 
detailed current financial statement by the borrower; and 
"(E) the borrower takes no part in the consideration of 
81 STAT.] 
PUBLIC LAW 90-46-JULY 4, 1%7 
111 
his application and does not attend any committee or board 
meeting wliile his application is under consideration;". 
SEC. 8. Paragraph (D) of section 8(8) of the Federal Credit Union 
Act is amended to read: "(D) in shares or accounts of savings and^ *° ^*^*- ^^''' 
loan associations or mutual savings banks, the accounts of which are "12'vsc 1757. 
insured by the Federal Savings and Loan Insurance Corporation or 
the Federal Deposit Insurance Corporation;". 
Approved July 3, 1967. 
Public Law 90-45 
AN ACT 
To continue until the close of June 30, 1969^ the existing suspension of duties for 
metal scrap. 
Be it enacted by the /Senate and House of Representatives 
of the 
United /States of America in Congress assembled^ That (a) item 911.12 
(relating to articles other than copper waste and scrap and articles of 
copper) of the Tariff Schedules of the United States (19 U.S.C, sec. 
1202) is amended by striking out "6/30/67" and inserting in lieu 
thereof "6/30/69". 
(b) The ainendment made by subsection (a) shall apply with 
respect to articles entered, or withdrawn from warehouse, for con-
sumption, after June 30, 1967. 
Approved July 3, 1967. 
July 3, 1967 
[H. R. 5615] 
Metal scrap. 
Duty suspen-
sion. 
80 Stat. 218. 
Public Law 90-46 
AN ACT 
Authorizing the change in name of certain water resource projects under 
jurisdiction of the Department of the Army. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the names of 
the following locks and dams, reservoirs, and other navigation and 
flood control facilities under jurisdiction of the Department of the 
Army, are hereby changed as follows: 
the Bluestone Dam and Reservoir, New River, West Virginia, 
authorized by the Flood Control Acts of 1936 and 1938, to the 
"Bluestone Lake"; 
the Sutton Dam and Reservoir, Elk Creek, West Virginia, 
authorized by the Flood Control Act of 1938, to the "Sutton 
Lake"; 
the Tygart Dam and Reservoir, Tygart River, West Virginia, 
authorized by the River and Harbor Act of 1935, to the "Tygart 
Lake"; 
the East Lynn Dam and Reservoir, East Fork of Twelvepole 
Creek, West Virginia, authorized by the Flood Control Act of 
1938, to the "East Lynn Lake"; 
the Summersville Dam and Reservoir, Gauley River, West 
Virginia, authorized by the Flood Control Act of 1938, to the 
"Summersville Lake"; 
the Burnsville Dam and Reservoir, Little Kanawha River, 
West Virginia, authorized by the Flood Control Act of 1938, to 
the "Burnsville Lake"; 
the Birch Dam and Reservoir, Elk River, West Virginia, 
authorized by the Flood Control Act of 1938, to the "Birch 
Lake": 
July 4/1967 
[S. 1649] 
Water resource 
projects. 
Name changes. 
49 Stat. 1586; 
52 Stat. 1217. 
49 Stat. 1035.