§1795d — Title 12 Banks and Banking | U.S. Code

Summary

The Board must start taking requests to buy the Facility’s capital stock as soon as possible. The smallest purchase is $50. Stock is sold in $50 shares. Shares can be paid for with cash or U.S. government securities under rules the Board sets. The Board sets dividend rates, and required stock does not get special priority. Shares cannot be transferred except in the ways the law allows. If the Facility must buy back a member’s stock, it pays back what the member originally paid minus any debts the member owes. For required membership, at least half of the subscription payment must go to the Facility. The rest can stay with the member but may be held on the Board’s demand and invested in assets the Board chooses. If a credit union joins more than six months after the Board first started taking subscriptions, it cannot borrow or get advances from the Facility for six months after joining unless the Board approves.

Title 12, §1795d

Banks and Banking — Source: USLM XML via OLRC

(a)As soon as practicable, the Board shall open books for subscriptions to the capital stock of the Facility. The minimum subscription shall be $50.

(b)The capital stock of the Facility—

(1)shall be divided into shares having a par value of $50 each;

(2)shall be paid for with cash or with securities of the United States or any Agency thereof in accordance with requirements the Board may impose;

(3)shall share in dividend distributions at rates determined by the Board. However, rates on the required capital stock shall be without preference; and

(4)shall not be transferred or hypothecated except as provided for herein.

(c)When circumstances require that all or a portion of a member’s stock be redeemed by the Facility, the Board shall pay an amount equal to what the member originally paid for the stock less any amount owed by the member to the Facility.

(d)At least one-half of the payment for the subscription amount required for membership under section 1795c of this title shall be transferred to the Facility. The remainder may be held by the member on call of the Board and shall be invested in assets designated by the Board.

(e)A credit union or credit union group that becomes a member of the Facility later than six months after the date the Board opens books for capital stock subscriptions, may not borrow or receive advances from the Facility without approval by the Board for a period of six months after becoming a member.

Notes & Related Subsidiaries

Editorial Notes

Codification section 309(b)(1) of Pub. L. 96–221 redesignated subch. III as title III of act June 26, 1934, ch. 750, cited as a credit to this section.

Amendments

1980—Subsec. (a). Pub. L. 96–221, § 309(a)(4), substituted “Board” for “Administrator”, such change having been previously made by Pub. L. 95–630. Subsec. (b). Pub. L. 96–221, § 309(a)(2), (4), substituted “Board” for “Administrator” wherever appearing, such change having been previously made by Pub. L. 95–630, and in par. (3) inserted specific requirement that rates on required capital stock be without preference. Subsecs. (c) to (e). Pub. L. 96–221, § 309(a)(4), substituted “Board” for “Administrator” wherever appearing, such change having been previously made by Pub. L. 95–630. 1978—Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 1978 AmendmentAmendment effective on expiration of 120 days after Nov. 10, 1978, and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.

Effective Date

Section effective Oct. 1, 1979, see section 1806 of Pub. L. 95–630, set out as a note under section 1795 of this title.

§1795d Capital stock

Summary

Title 12, §1795d

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata