§1795d Capital Stock

Summary

The Board must open subscriptions for the Facility’s capital stock as soon as it can. Each subscription must be at least $50. Stock is issued as $50 par‑value shares. Payment can be in cash or in U.S. government or agency securities if the Board allows. The Board sets dividend rates, but required stock gets no special preference. Stock cannot be sold or used as collateral except as the law allows. If the Facility must redeem a member’s stock, it must pay back what the member originally paid minus any debt the member owes. When joining, at least half of the required subscription payment must go to the Facility; the rest can be kept by the member until the Board calls for it and may be invested in assets the Board approves. A credit union that joins more than six months after subscriptions open cannot borrow from the Facility for six months after joining unless the Board agrees.