Title 12Banks and BankingRelease 119-73

§1795e Extensions of credit

Title 12 › Chapter CHAPTER 14— - FEDERAL CREDIT UNIONS › Subchapter SUBCHAPTER III— - CENTRAL LIQUIDITY FACILITY › § 1795e

Last updated Apr 6, 2026|Official source

Summary

Members can ask the Facility for short-term loans when they need cash. The Board must say yes or no within five working days. The Board must not OK loans meant to let credit unions grow their loan portfolios. The Board can make loans on terms it sets after checking creditworthiness. If a credit union’s deposits are insured by a state guaranty, the Board must talk with that state insurer before lending to that credit union. The Treasury Secretary may lend up to $500,000,000 to the Facility if the Board certifies it needs more money. Any such loan can charge no more than one-eighth of 1 percent above the current average market yield on U.S. securities of similar maturity. The Secretary’s power to lend only applies to money Congress has approved in advance.

Full Legal Text

Title 12, §1795e

Banks and Banking — Source: USLM XML via OLRC

(a)(1)A member may apply for an extension of credit from the Facility to meet its liquidity needs. The Board shall approve or deny any such application within five working days after receiving it. The Board shall not approve an application for credit the intent of which is to expand credit union portfolios.
(2)The Board may advance funds to a member on terms and conditions prescribed by the Board after giving due consideration to creditworthiness.
(3)The Board shall not advance funds for the benefit of a credit union whose share or deposit accounts are insured by a State share or deposit guaranty credit union, insurance corporation, or guaranty association, without consultation with the appropriate State share or deposit guaranty credit union, insurance corporation, or guaranty association.
(b)The Secretary of the Treasury is authorized to lend to the Facility up to $500,000,000, in the event the Board certifies to the Secretary that the Facility does not have sufficient funds to meet liquidity needs of credit unions. Any such loan shall bear an interest rate not greater than one-eighth of 1 per centum above the current average market yield on outstanding obligations of the United States with remaining time to maturity comparable to the maturity of such loan. The authority of the Secretary to lend under this subsection shall be limited to such extent or in such amounts as are provided in advance in appropriation Acts.

Legislative History

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

2020—Subsec. (a)(1). Pub. L. 116–136, § 4016(b)(1)(C), which directed substitution of “the intent of which is to expand credit union portfolios” for “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” in the second sentence, was executed by making the substitution in the third sentence, to reflect the probable intent of Congress. Pub. L. 116–136, § 4016(a)(3), which directed substitution of “without first having obtained evidence from the applicant that the applicant has made reasonable efforts to first use primary sources of liquidity of the applicant, including balance sheet and market funding sources, to address the liquidity needs of the applicant” for “the intent of which is to expand credit union portfolios” in the second sentence, was executed by making the substitution in the third sentence, to reflect the probable intent of Congress. 1980—Subsecs. (a), (b). 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 2020 AmendmentAmendment by section 4016(b)(1)(C) of Pub. L. 116–136, effective Dec. 31, 2020, see section 4016(b)(2) of Pub. L. 116–136, set out as a note under section 1795a of this title.

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1795e

Title 12Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73