PUBLIC LAW 90-375-JULY 5, 1968
Public Law 90-375 July 5, 1968 [H. R. 14907]
Federal Credit Union Act, amendments. 73 Stat. 628. 12 USC 1757.
Purchase of liquidating notes.
Borrowing authority. 12 USC 1761b.
Unsecured loan limit. 12 USC 1761c.
Supervisory committee audit. 12 USC 1761d.
AN ACT To amend the Federal Credit Union Act
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. The Federal Credit Union Act (12 U.S.C., chapter 14) is amended as follows: (1) Section 8(5) is amended by changing "loans with maturities not exceeding five years to read "unsecured loans with maturities not exceeding five years, and secured loans with maturities not exceeding ten years,". (2) Section 8(8) is amended by striking "or" immediately before " (F) " and by adding at the end thereof: " (G) in shares or deposits of any central credit union in which such investments are specifically authorized by the board of directors of the Federal credit union making the investment;". (3) Section 8 is amended by redesignating paragraph (14) as paragraph (15), by striking out "and" at the end of paragraph (13), and by inserting immediately after paragraph (13): "(14) in accordance with rules and regulations prescribed by the Director, to purchase from any liquidating credit union notes made by individual members of the liquidating credit union at such prices as may be agreed upon by the board of directors of the liquidating credit union and the board of directors of the purchasing credit union, but no purchase may be made under authority of this paragraph if, upon the making of that purchase, the aggregate of the unpaid balances of notes purchased under authority of this paragraph would exceed 5 per centum of the unimpaired capital and surplus of the credit union; and". (4) The fourth sentence of section 14 is amended by changing "the purchase and sale of securities or the making of loans to other credit unions, or both" to read "the purchase and sale of securities, the borrowing of funds, and the making of loans to other credit unions". (5) Section 15 is amended by striking the next to last sentence and inserting the following new sentences: "No loan which is not adequately secured may be made to any member, if, upon the making of that loan, the member would be indebted to the Federal credit union upon loans made to him in an aggregate amount ^vhich, in the case of a credit union whose unimpaired capital and surplus is less than $8,000, would exceed $200, or which, in the case of any other credit union, would exceed $2,500 or 2i/^ per centum of its unimpaired capital and surplus, whichever is less. No loan may be made to any member if, upon the making of that loan, the member would be indebted to the Federal credit union upon loans made to him in an aggregate amount which would exceed $200 or 10 per centum of the credit union's unimpaired capital and surplus, whichever is greater." (6) The first sentence of.section 16 is amended to read as follows: "The supervisory committee shall make or cause to be made a semiannual audit and shall submit a report of that audit to the board of directors and a summary of the report to the members at the next annual meeting of the credit union; shall make or cause to be made such supplementary audits as it deems necessary or as may be ordered by the Director, and submit reports of the supplementary audits to the board of directors; may by a unanimous vote suspend any officer