12 U.S.C. § 1783 — National Credit Union Share Insurance Fund

(a) Creation and Use. The National Credit^* Union Share Insurance Fund is created in the Treasury as a revolving fund for this subchapter. At the Board’s request and without a fiscal-year limit, it may pay insurance under section 1787, assistance and expenses under section 1788 for liquidation or threatened liquidation of insured credit unions, and other proper administrative expenses. (b) Deposits, Charges, Fees, and Penalties. Deposits and insurance charges paid under section 1782, examination fees, and penalties collected under this subchapter must go into the Fund. The Board^* must report each year to the Senate Banking, Housing, and Urban Affairs Committee and the House Banking, Finance and Urban Affairs Committee on the Fund’s operating level and include an independent audit. (c) Investments. The Board may authorize the Treasury Secretary to invest money not needed for current operations in interest-bearing United States securities, securities guaranteed by the United States as to principal and interest, or bonds and obligations that are lawful investments for United States fiduciary, trust, and public funds. The income becomes part of the Fund. (d) Loans. (1) If the Board decides a loan to the Fund or the stabilization fund described in section 1790e is needed, the Treasury Secretary must make it. Total outstanding loans may not exceed $6 billion at one time. Subject to this subsection, section 1790e, and (e), the Board and Secretary set the terms by agreement. (2) Interest accrues to the Treasury based on the average daily outstanding loan amount at each fiscal year’s end. The Board must pay it annually from the Fund as miscellaneous receipts. The Secretary sets the interest rate in advance from the average yield to maturity on specified United States marketable debt with maturities of five years or less, using September daily closing bid quotations and rounding to the nearest one-eighth of one percent. (3) The Secretary may use proceeds from securities issued under chapter 31 of title 31 to make these loans. The purposes for issuing those securities include these loans, and loans and repayments are United States public-debt transactions. (4)(A) Between May 20, 2009 and December 31, 2010, if two-thirds votes of the Board and Federal Reserve Board recommend it in writing, and the Treasury Secretary, consulting the President, finds more is needed, the $6 billion limit may rise to the needed amount but not above $30 billion. (B) If it rises, the Board must promptly report to the named congressional committees why the additional authority is needed and how it will be used. (e) Excess Funds. While loans are outstanding, at least annually the Board must decide whether the Fund has more money than needed and pay the excess to the Treasury for credit against the loans. (f) Central Liquidity Facility. In addition to Treasury borrowing, the Fund may borrow from the National Credit Union Administration^* Central Liquidity Facility when the Board decides a loan is needed for this subchapter.