§1795f Powers of Board

Summary

Gives the Board wide power to run and manage the Facility. The Board can set how the Facility does business and make rules to carry out the law. It decides what the Facility and the Administration must spend and can charge them each year. The Board can borrow money for the Facility from any source, so long as the total face value of those borrowings does not go over 12 times the Facility’s subscribed capital and surplus (raised to 16 times only for the period from March 27, 2020, through December 31, 2021). It may also borrow up to $500,000 from the National Credit Union Share Insurance Fund for start-up costs on market terms. The Board can guarantee member obligations if the obligation clearly says the Facility’s resources back the guarantee; buy assets from members with their endorsement; invest in U.S. government obligations; make deposits in insured banks and credit unions; sue and be sued; adopt a seal; hire officers and staff under the rules in title 5; do business anywhere in the States or territories; buy, lease, or own property; make contracts; advance fully secured funds to certain state or guaranty entities for no more than twelve months (reloaned at a rate no higher than the Facility’s and not renewable); advance funds to the National Credit Union Share Insurance Fund; and use other powers needed to meet its purposes. It can also pursue certain non-litigated claims for or against the United States, with some exceptions for torts, administrative expenses, and certain construction or supply contract claims over $5,000. The Board may also let the Facility or its agent members act as drawees or agents for collecting and settling checks, drafts, or other payment items for members and eligible credit unions, and set rules, fees, and standards for those activities. In making those rules the Board may use normal banking practices and, where helpful, apply Federal Reserve rules, the Uniform Commercial Code, or clearinghouse rules.