12 U.S.C. § 1766 — Powers of Board

(a) The Board may issue rules and regulations for administering this chapter, including rules about mergers, consolidations, and dissolutions of corporations organized under this chapter. A central credit union chartered by the Board is subject to the Board’s rules, regulations, and orders. Unless those rules, regulations, or orders specifically provide otherwise, the central credit union has the same rights, privileges, duties, restrictions, penalties, liabilities, conditions, and limits that this chapter applies to all Federal credit unions. (b)(1) The Board may suspend or revoke a Federal credit union’s charter, place it in involuntary liquidation, and appoint a liquidating agent if the Board finds that the credit union is bankrupt or insolvent, or has violated its charter, bylaws, this chapter, or a regulation issued under it. (b)(2) Through people it designates, the Board may examine any Federal credit union in voluntary liquidation. If the Board finds that the voluntary liquidation is not being conducted in an orderly or efficient way or is not in the members’ best interests, it may end that voluntary liquidation, place the credit union in involuntary liquidation, and appoint a liquidating agent. (b)(3) Subject to the Board’s control and supervision and its rules and regulations, the liquidating agent may— (A) receive and take possession of all books, records, assets, and property of the Federal credit union in liquidation; sell, collect, enforce collection of, and liquidate those assets and property; compound bad or doubtful debts; sue in the agent’s own name or in the name of the Federal credit union in liquidation; and defend actions brought against the agent as liquidating agent or against the Federal credit union; (B) receive, examine, and decide all claims against the Federal credit union in liquidation, including members’ claims on member accounts; (C) distribute and pay creditors and members as their interests appear; and (D) sign documents and papers and do other acts the agent considers necessary or desirable to perform these duties. (b)(4) Subject to the Board’s control and supervision and its rules and regulations, the liquidating agent of a Federal credit union in involuntary liquidation must— (A) give creditors and members notice to present their claims and provide legal proof. The notice must be published once a week for three successive weeks in a newspaper of general circulation in each county where the credit union maintained an office or branch for business when it stopped unrestricted operations. If the total book value of the assets and property is less than $1,000, the agent must declare it a “no publication” liquidation unless the Board finds that the books and records do not accurately record the liabilities. In a “no publication” liquidation, publication is not required; (B) from time to time pay a proportional dividend on claims proved to the agent’s satisfaction or decided by a court with proper jurisdiction. After the credit union’s assets have been liquidated, the agent must pay further dividends on previously proved or decided claims. The agent may accept, instead of a formal claim proof from a creditor or member, a statement of the amount owed shown by the credit union’s books and records. Claims not filed before the final dividend are barred. Claims the agent rejects or disallows are also barred unless the claimant files a lawsuit within three months after receiving notice of the rejection or disallowance; and (C) in a “no publication” liquidation, determine from all available sources, and within the credit union’s available funds, the amounts owed to creditors and members. After 60 days have passed since the agent’s appointment, the agent must distribute the credit union’s funds proportionally to creditors and members as their interests appear. (b)(5) In an involuntary liquidation, after the liquidating agent certifies that distribution has been made and liquidation completed as required here, and in a voluntary liquidation, after the Board receives proof satisfactory to it that this has occurred, the Board must cancel the Federal credit union’s charter. The credit union continues to exist as a corporation for three years after the charter is canceled. During that time, the liquidating agent, a properly appointed successor, or people designated by the Board may act for the credit union to pay, satisfy, and discharge existing liabilities or obligations; collect and distribute assets; wind up its business and affairs; and do other required acts. The credit union may sue and be sued in its corporate name. (c) Five years after a Federal credit union’s charter is canceled, the Board may, in its discretion, destroy any or all of that credit union’s books and records that the Board possesses or controls. (d) The Board may carry out every function and duty given to it by this chapter through people it designates or employs. It may delegate any authority, power, or function given to it by this chapter to any person or persons, including an institution operating under the Administration’s general supervision. (e) Federal credit unions must keep all books and records and make reports using forms approved by the Board. (f)(1) The Board may investigate and conduct research and studies about the problems people of small means face in obtaining credit at reasonable interest rates and about the methods and benefits of cooperative saving and lending among those people. It may also make reports of those investigations and studies and publish and distribute those reports. (f)(2)(A) The Board may directly conduct, or make grants to or contracts with colleges, universities, State or local educational agencies, or other appropriate public or private nonprofit organizations to conduct, programs that train people who operate or plan to operate credit unions and related consumer-counseling programs serving poor people. The Board may establish experimental, developmental, demonstration, and pilot projects, directly or through grants to public or private nonprofit organizations, including credit unions, or contracts with those organizations or other private organizations. The projects must promote more effective operation of credit unions and related consumer-counseling programs serving poor people. (f)(2)(B) In using this authority, the Board must consult officials of the Office of Economic Opportunity and other appropriate Federal agencies responsible for projects or programs addressing problems of poor people. Programs and projects under this paragraph must include the greatest feasible participation by residents of the areas and members of the groups they serve. Where feasible, community action agencies established under the Economic Opportunity Act of 1964 must be the means for achieving that participation. (f)(2)(C) To carry out this paragraph, Congress may appropriate, in addition to funds the Board may spend under sections 1755 and 1756 of this title for these purposes, no more than $300,000 for the fiscal year ending June 30, 1970, and no more than $1,000,000 for the fiscal year ending June 30, 1971. (g) An officer or employee of the Administration whom the Board designates for this purpose may administer oaths and affirmations and take affidavits and depositions about any matter within the Administration’s jurisdiction. (h) The Board must require every person appointed or elected by a Federal credit union to a position involving receipt, payment, or custody of money or other personal property owned by the credit union, or held by it as collateral or otherwise, to give a bond from a corporate surety company that holds a Treasury Secretary certificate of authority under title 31 chapter 93 to act as an acceptable surety on Federal bonds. The Board must approve the bond’s form to provide coverage for loss from fraud or dishonesty, including forgery, theft, embezzlement, wrongful abstraction, or misapplication by the person, directly or through cooperation with others, plus any other coverage the Board considers reasonably appropriate or this chapter otherwise requires. The bond amount must relate to the money or property involved or the credit union’s assets, as the Board sets by regulation to require reasonable coverage. Instead of individual bonds, the Board may approve a schedule or blanket bond covering all officers and employees whose duties include receiving, paying, or holding money or other personal property for the credit union. The Board may also approve excess-coverage bonds for coverage above the basic surety coverage. (i) In addition to authority given by other sections, the Board may, in carrying out this chapter— (1) appoint personnel needed for the Administration to perform its functions; (2) spend funds, contract with public and private organizations and people, make advance or reimbursement payments, acquire and dispose of real or personal property by lease or purchase without regard to other laws applying to United States executive or independent agencies, and perform other functions or acts it considers necessary or appropriate to carry out this chapter, under Board rules, regulations, or policies consistent with this chapter; and (3) pay stipends, including travel allowances to and from the person’s residence, to an individual studying in a program assisted under this chapter if the Board decides that helping the individual study will further this chapter’s purposes. (j) Staff— (1) Appointment and compensation—The Board must set the pay and number of its employees and appoint and direct them. The Board may set and adjust their basic-pay rates without following title 5 chapter 51 or subchapter III of chapter 53. (2) Additional compensation and benefits—The Board may give its employees additional compensation and benefits if another Federal bank regulatory agency is providing the same type, or could provide it under applicable law, rule, or regulation. When setting and adjusting total compensation and benefits, the Board must seek comparability with other Federal bank regulatory agencies. (3) Funding—Fees and assessments imposed under this chapter on insured credit unions, including income earned on insurance deposits, must pay the salaries and expenses of the Board and its employees.