§1795f Powers of Board

Summary

Gives the Board the power to run the Central Liquidity Facility and make rules for how it works. The Board can decide how the Facility and its Administration spend money and charge them each year. It can borrow money from any source up to 12 times the Facility’s subscribed capital and surplus (16 times for the period March 27, 2020 through December 31, 2021). It may also borrow up to $500,000 from the National Credit Union Share Insurance Fund to pay start‑up costs on normal market terms. The Board can guarantee a member’s obligation if the paper clearly says only the Facility’s resources back the guarantee. It can buy assets from members, invest in U.S. government obligations, place deposits in insured banks and credit unions, sue and be sued, hire staff, own property, make contracts, and take other needed actions. It can advance funds to state insurance or guaranty groups for up to 12 months at an interest rate not higher than the Facility’s rate and the advance cannot be renewed. It can settle certain small, non‑litigated claims for or against the United States, but not tort claims, administrative expense claims, or contract claims over $5,000 that have been referred to the Department of Justice. The Board may let the Facility or its Agent members collect and settle checks, share drafts, and other payment items for members. It can set rules and fees (consistent with section 248a(c)), use Federal Reserve banks, clearinghouses, or other institutions, and define the rights and duties of everyone involved. When making these rules, the Board may rely on common banking practices, Federal Reserve regulations and letters, the Uniform Commercial Code, and clearinghouse rules.