12 U.S.C. § 1775: Conditions upon conversion…

Summary

When a District of Columbia credit union converts into a federal credit union under sections 1773–1775, it takes on the powers, limits, and responsibilities that federal credit unions have under the Federal Credit Union Act. No fee will be charged just for converting. Any loan or investment made before conversion under D.C. law that does not meet federal rules must be paid off by its maturity or, if it has no maturity date, handled carefully and finished within a reasonable time. The converted credit union must send proposed bylaws to the Board for approval after conversion, but no later than 30 days after its next annual meeting or six months after August 1, 1964, whichever is later; any existing bylaw that conflicts with federal requirements is void.

Title 12, §1775

Banks and Banking, Source: USLM XML via OLRC

Any District of Columbia credit union converting into a Federal credit union in accordance with sections 1773 to 1775 of this title shall thereupon be subject to the limitations, vested with the powers, and charged with the liabilities conferred and imposed by the Federal Credit Union Act [12 U.S.C. 1751 et seq.] upon credit unions organized thereunder, except that—

(1)no fee shall be imposed upon a credit union converting pursuant to sections 1773 to 1775 of this title as an incident to its conversion;

(2)any loan or investment made by a credit union converting pursuant to sections 1773 to 1775 of this title in conformity with the District of Columbia Credit Unions Act prior to its conversion, which does not conform to the requirements of the Federal Credit Union Act and is still outstanding at the time of conversion, shall be liquidated at or before its maturity or, if it has no maturity date, in a prudent manner and within a reasonable period of time;

(3)a credit union converting pursuant to sections 1773 to 1775 of this title shall submit proposed bylaws to the Board for the Board’s approval after its conversion, but not later than thirty days following its next annual meeting or six months after August 1, 1964, whichever is later: Provided, That any existing bylaw inconsistent with any other requirements of the Federal Credit Union Act shall be deemed null and void.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Credit Union Act, referred to in text, is act

June 26, 1934, ch. 750, 48 Stat. 1216, which is classified generally to this chapter. For complete classification of this Act to the Code, see section 1751 of this title and Tables. The District of Columbia Credit Unions Act, referred to in par. (2), was act

June 23, 1932, ch. 272, 47 Stat. 326, and was repealed by Pub. L. 88–395, § 4, Aug. 1, 1964, 78 Stat. 377. Codification Section was not enacted as part of the Federal Credit Union Act which comprises this chapter.

Statutory Notes and Related Subsidiaries

Transfer of Functions

“Board” and “the Board’s”, meaning the National Credit Union Administration Board, substituted in par. (3) for “Director” and “his”, respectively, meaning Director of Bureau of Federal Credit Unions, pursuant to section 3 of Pub. L. 91–206 and section 501 of Pub. L. 95–630 [12 U.S.C. 1752a] which transferred functions of Bureau of Federal Credit Unions, and Director thereof, to National Credit Union Administration and vested authority for management of Administration in National Credit Union Administration Board.

§1775 Conditions Upon Conversion to Federal Status