PRIA, Government Policy, Made Personal

Summary

The Board must hire examiners to check any insured credit union, any credit union applying for insurance, or any closed insured credit union when an exam is needed. Examiners can look at all parts of a credit union’s business and must send a full report to the Board. The Board also must hire claim agents to investigate claims on insured member accounts. Claim agents can give oaths, take sworn testimony, and issue subpoenas for documents or witnesses. If someone ignores a subpoena, the Board can ask a U.S. court where the credit union or witness is located to force compliance. Courts can punish contempt. People cannot refuse to testify or hand over records by saying it will incriminate them, but if they are forced to testify, that testimony generally cannot be used to prosecute them except for perjury. The Administration may accept state exam reports and share Board exam reports with state supervisors. During each exam, the Board must check flood insurance compliance. The Board must report to Congress by 1 year after September 23, 1994, and every two years for the next 4 years, including how exams were done, how many credit unions were checked, how many were not in compliance, fixes taken, and recommendations. The Board must also regularly assess liquidity needs for each insured credit union and for credit unions as a group, and it must share confidential exam information with Federal Reserve banks to help credit unions get liquidity.

Title 12, §1784

Banks and Banking, Source: USLM XML via OLRC

(a)Examiners and claim agents; powers; report by examiner; jurisdiction of court

The Board shall appoint examiners who shall have power, on its behalf, to examine any insured credit union, any credit union making application for insurance of its member accounts, or any closed insured credit union whenever in the judgment of the Board an examination is necessary to determine the condition of any such credit union for insurance purposes. Each examiner shall have power to make a thorough examination of all of the affairs of the credit union and shall make a full and detailed report of the condition of the credit union to the Board. The Board in like manner shall appoint claim agents who shall have power to investigate and examine all claims for insured member accounts. Each claim agent shall have power to administer oaths and affirmations, to examine and to take and preserve testimony under oath as to any matter in respect to claims for insured accounts, and to issue subpenas and subpenas duces tecum and, for the enforcement thereof, to apply to the United States district court for the judicial district or the United States court in any territory in which the principal office of the credit union is located or in which the witness resides or carries on business. Such courts shall have jurisdiction and power to order and require compliance with any such subpena.

(b)Power of Board; jurisdiction of court

In connection with examinations of insured credit unions, or with other types of investigations to determine compliance with applicable law and regulations, the Board, or its designated representatives, shall have power to administer oaths and affirmations, to examine and to take and preserve testimony under oath as to any matter in respect of the affairs of any such credit union, and to issue subpenas and subpenas duces tecum and to exercise such other powers as are set forth in section 1786(p) of this title and, for the enforcement thereof, to apply to the United States district court for the judicial district or the United States Court in any territory in which the principal office of the credit union is located or in which the witness resides or carries on business. Such courts shall have jurisdiction and power to order and require compliance with any such subpena.

(c)Court orders enforcing subpenas; immunity

In cases of refusal to obey a subpena issued to, or contumacy by, any person, the Board may invoke the aid of any court of the United States within the jurisdiction of which such hearing, examination, or investigation is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, records, or other papers. Such court may issue an order requiring such person to appear before the Board, or before a person designated by it, there to produce records, if so ordered, or to give testimony touching the matter in question. Any failure to obey such order of the court may be punished by such court as a contempt thereof. All process in any such case may be served in the judicial district whereof such person is an inhabitant or carries on business or wherever he may be found. No person shall be excused from attending and testifying or from producing books, records, or other papers in obedience to a subpena issued under the authority of this subchapter on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to penalty or forfeiture, but no individual shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled to testify or produce evidence, documentary or otherwise, after having claimed his privilege against self-incrimination, except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.

(d)Administration acceptance of State board reports; reports of Board furnished to State board

The Administration may accept any report of examination made by or to any commission, board, or authority having supervision of a State-chartered credit union and may furnish to any such commission, board, or authority reports of examination made on behalf of the Board.

(e)Flood insurance compliance by insured credit unions

(1)Examination

The Board shall, during each examination conducted under this section, determine whether the insured credit union is complying with the requirements of the national flood insurance program.

(2)Report

(A)Requirement

Not later than 1 year after September 23, 1994, and biennially thereafter for the next 4 years, the Board shall submit a report to the Congress on compliance by insured credit unions with the requirements of the national flood insurance program.

(B)Contents

The report shall include a description of the methods used to determine compliance, the number of insured credit unions examined during the reporting year, a listing and total number of insured credit unions found not to be in compliance, actions taken to correct incidents of noncompliance, and an analysis of compliance, including a discussion of any trends, patterns, and problems, and recommendations regarding reasonable actions to improve the efficiency of the examinations processes.

(f)Access to liquidity

The Board shall—

(1)periodically assess the potential liquidity needs of each insured credit union, and the options that the credit union has available for meeting those needs; and

(2)periodically assess the potential liquidity needs of insured credit unions as a group, and the options that insured credit unions have available for meeting those needs.

(g)Sharing information with Federal reserve banks

The Board shall, for the purpose of facilitating insured credit unions’ access to liquidity, make available to the Federal reserve banks (subject to appropriate assurances of confidentiality) information relevant to making advances to such credit unions, including the Board’s reports of examination.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Subsec. (b). Pub. L. 109–351 substituted “such other powers” for “such others powers”. 1998—Subsecs. (f), (g). Pub. L. 105–219 added subsecs. (f) and (g). 1994—Subsec. (e). Pub. L. 103–325 added subsec. (e). 1989—Subsec. (b). Pub. L. 101–73, § 915(a)(1), inserted “or with other types of investigations to determine compliance with applicable law and

Regulations

,” after “insured credit unions,”. Pub. L. 101–73, § 915(a)(2), which directed the insertion of “and to exercise such others powers as are set forth in section 1786(p) of this title” after “subpena duces tecum”, was executed by making the insertion after “subpenas duces tecum”, as the probable intent of Congress. 1978—Pub. L. 95–630 substituted “Board” for “Administrator” wherever appearing, and “it” and “its” for “him” and “his”, respectively, where appropriate.

Statutory Notes and Related Subsidiaries

Effective Date

of 1978 AmendmentAmendment by Pub. L. 95–630 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.

§1784 Examination of Insured Credit Unions