§1444 — Title 12 Banks and Banking | U.S. Code

Summary

State-chartered groups that are overseen by state banking rules can become members if they meet three tests. They must only make loans to their own members; their members must be only certain savings-type institutions (either building-and-loan, savings-and-loan, cooperative banks, and homestead associations, or only savings banks); and, of those kinds of institutions in the State, a majority must belong to the group. If those conditions are met, the group is treated as a member, but the Director can set extra rules.

Title 12, §1444

Banks and Banking — Source: USLM XML via OLRC

(a)Any organization organized under the laws of any State and subject to inspection and regulation under the banking or similar laws of such State shall be eligible to become a member under this chapter if—

(1)it is organized solely for the purpose of supplying credit to its members;

(2)its membership (A) is confined exclusively to building and loan associations, savings and loan associations, cooperative banks, and homestead associations; or (B) is confined exclusively to savings banks; and

(3)of the institutions to which its membership is confined which are organized within the State, its membership includes a majority of such institutions.

(b)In all respects, but subject to such additional rules and regulations as the Director may provide, any such organization shall be a member for the purposes of this chapter.

Editorial Notes

Amendments

2008—Subsec. (b). Pub. L. 110–289 substituted “the Director” for “the Board”. 1989—Subsec. (b). Pub. L. 101–73 substituted “Board” for “board”.

§1444 Eligibility to membership in banks

Summary

Title 12, §1444

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata