12 U.S.C. § 1775 — Conditions upon conversion to Federal status
submitted 62 years ago by Pub. L. 88-395 to r/title-12-BANKS-AND-BANKING · 241 words · no verdicts yet
A District of Columbia credit union that converts to Federal status becomes subject to the Federal Credit Union Act's limits, powers, and liabilities. The section makes exceptions for conversion fees, certain existing loans and investments, and approval of bylaws.
A District of Columbia credit* union converting under sections 1773 through 1775 becomes subject to the limits, receives the powers, and bears the liabilities that the Federal Credit Union* Act [12 U.S.C. 1751 et seq.] gives or imposes on credit unions organized under that Act. However: (1) no conversion fee may be charged; (2) a loan or investment made before conversion under the District of Columbia Credit Unions Act that does not meet the Federal Credit Union Act and remains outstanding at conversion must be liquidated by its maturity, or, if it has no maturity date, prudently and within a reasonable time; and (3) the converting credit union must submit proposed bylaws to the Board* for approval after conversion, no later than 30 days after its next annual meeting or 6 months after August 1, 1964, whichever is later. Any existing bylaw inconsistent with another Federal Credit Union Act requirement is automatically void.
Any District of Columbia credit* union converting into a Federal credit union* in accordance with sections 1773 to 1775 of this title shall thereupon be subject to the limitations, vested with the powers, and charged with the liabilities conferred and imposed by the Federal Credit Union Act [12 U.S.C. 1751 et seq.] upon credit unions organized thereunder, except that—
no fee shall be imposed upon a credit union converting pursuant to sections 1773 to 1775 of this title as an incident to its conversion;
any loan or investment made by a credit union converting pursuant to sections 1773 to 1775 of this title in conformity with the District of Columbia Credit Unions Act prior to its conversion, which does not conform to the requirements of the Federal Credit Union Act and is still outstanding at the time of conversion, shall be liquidated at or before its maturity or, if it has no maturity date, in a prudent manner and within a reasonable period of time;
a credit union converting pursuant to sections 1773 to 1775 of this title shall submit proposed bylaws to the Board* for the Board’s approval after its conversion, but not later than thirty days following its next annual meeting or six months after August 1, 1964, whichever is later: Provided, That any existing bylaw inconsistent with any other requirements of the Federal Credit Union Act shall be deemed null and void.
Source credit: (Pub. L. 88–395, § 3, Aug. 1, 1964, 78 Stat. 377; Pub. L. 91–206, § 3, Mar. 10, 1970, 84 Stat. 49; Pub. L. 95–630, title V, § 501, Nov. 10, 1978, 92 Stat. 3680.)
- 1964Enacted · Pub. L. 88-395 · 78 Stat. 377
- 1970Amended · Pub. L. 91-206 · 84 Stat. 49
- 1978Amended · Pub. L. 95-630 · 92 Stat. 3680
A history note hasn’t been published yet. The record shows enactment by Pub. L. 88-395 on 1964-08-01.
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