§1795f Powers of Board

Summary

Lets the Board run and control the Facility and do many financial and legal things for it. The Board can make rules for how the Facility operates, set and collect annual costs for the Facility and the Administration, borrow money (the face value of debt cannot be more than 12 times the Facility’s subscribed capital stock and surplus, except from March 27, 2020 through December 31, 2021 the limit is 16 times), and borrow up to $500,000 from the National Credit Union Share Insurance Fund for startup costs on market terms. The Board can guarantee a member’s debt only if the document clearly says the guarantee is backed only by Facility resources. It can buy assets from members with their endorsement, invest in U.S. government obligations, put deposits in federally insured banks and credit unions, sue and be sued, adopt a seal, and settle certain claims for or against the United States (but not tort claims, claims about administrative expenses, or contract claims over $5,000 for construction, repairs, or supplies) if those claims are not in court or sent to the Department of Justice. The Board may hire officers and employees under title 5, operate in any State or territory, own and deal in property, make contracts, make necessary incidental powers, advance secured short-term funds (no longer than twelve months, re-lent at a rate no higher than the Facility’s and not renewable) to certain state insurers or guaranty entities, and advance funds to the National Credit Union Share Insurance Fund under Board terms. The Board can also let the Facility or its Agent members act as drawees, agents, or intermediaries to collect and settle checks, share drafts, or other payment items for members and give them needed powers to do that. It can set charges for these services consistent with section 248a(c), use Federal Reserve banks, clearinghouses, or other institutions, and make rules about the rights, duties, and liabilities of everyone involved. The Board may apply common banking practices, Federal Reserve rules, the Uniform Commercial Code, and clearinghouse rules where helpful.