Public Law 468.
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/statutes-at-large/vol-48/public-law-468·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(/us/pl/73/467).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Federal Credit Union Act. That this Act may be cited as the “Federal Credit Union Act ”. definitionsDefinitions. Sec. 2. “Federal credit union.” A Federal credit union is hereby defined as a cooperative association organized in accordance with the provisions of this Act for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes.
When used 1217in this Act the term “Administration” means Farm Credit“Administration.”“Governor.” Administration, and the term “Governor ” means the Governor thereof. federal credit union organizationFederal credit union. Sec. 3. Any seven or more natural persons who desire to form aOrganization procedure.Certificate to contain specified information. Federal credit union shall subscribe before some officer competent to administer oaths an organization certificate in duplicate which shall specifically state—
(1)The name of the association.
(2)The location of the proposed Federal credit union and the territory in which it will operate.
(3)The names and addresses of the subscribers to the certificate and the number of shares subscribed by each.
(4)The par value of the shares, which shall be $5 each.
(5)The proposed field of membership, specified in detail.
(6)The term of the existence of the corporation, which may be perpetual.
(7)The fact that the certificate is made to enable such persons to avail themselves of the advantages of this Act. Such organization certificate may also contain any provisionsProvisions affecting business. approved by the Governor for the management of the business of the association and for the conduct of its affairs and relative to the powers of its directors, officers, or stockholders. approval of organization certificateApproval of organization certificate. Sec. 4. Any such organization certificate shall be presented to theCertificate to be presented to the Governor.Upon approval, certificate to become charter of body corporate. Governor for approval. Upon such approval the Federal credit union shall be a body corporate and as such, subject to the limitations herein contained, shall be vested with all of the powers and charged with all the liabilities conferred and imposed by this Act upon corporations organized hereunder. Before any organization certificate is approved an appropriate investigation shall be made for the purpose of determining
(1)whether the organization certificate conforms to the provisions of this Act;
(2)the general character and fitness of the subscribers thereto; and
(3)the economic advisability of establishing the proposed Federal credit union. Upon approval of such organization certificate by the Governor it shall be the charter of the corporation and one of the originals thereof shall be delivered to the corporation after the payment of the fee required therefor. feesFees. Sec. 5. For the purpose of paying the costs incident to theProvisions for, to cover costs. ascertainment of whether an organization certificate should be approved the subscribers to any such certificate shall pay, at the time of filing their organization certificate, the amount prescribed by the Governor, which shall not exceed $20 in any case; and on the approval of any organization certificate they shall also pay a fee or $5. DuringAnnual payments. December of each calendar year each Federal credit union shall pay to the Administration a fee of not to exceed $10, to be fixed by the Governor, for the cost of supervision: *Provided, however*, That no*Proviso*.Fractions of a year. such annual fee shall be payable by such an organization for the fractional part of the first calendar year during which it is formed. All such fees shall be deposited with the Treasurer of the UnitedDeposit and expenditure. States for the account of the Administration and may be expended by the Governor for such administrative and other expenses incurred in carrying out the provisions hereof as he may determine to be1218proper, the purpose of such fees being to defray, as far as practicable, the administrative and supervisory costs incident to the carrying out of this Act. reports and examinationsReports and examinations. Sec. 6. Financial statements required. Federal credit unions shall be under the supervision of the Governor, and shall make such financial imports to him (at least Examinations; fees to be charged.annually) as he may require. Each Federal credit union shall be subject to examination by, and for this purpose shall make its books and records accessible to any person designated by the Governor. The Governor shall fix a scale of examination fees designed, as far as is practicable, so that in each case the fee to be paid shall equal the expense of such examination, which fees shall be assessed against and paid by each Federal credit union promptly *Proviso*.Acceptance of audit by public accountant in accounts of small unions.after the completion of any such examination: *Provided, however*, That if a Federal credit union has assets of less than $25.000 the Governor may accept the audit report of a practicing public accountant. in place of such examination and may relieve such Federal credit union of the obligation to pay the examination fee required by this Credit of examination fees.section. Examination fees collected under the provisions of this section shall be deposited to the credit of the special fund created by section 5 hereof, and shall be available for the purposes specified in said section 5. powers Sec. 7. Corporate powers. A Federal credit union shall have succession in its corporate name during its existence and shall have power—
(1)To make contracts.
(2)To sue and be sued.
(3)To adopt and use a common seal and alter the same at pleasure.
(4)To purchase, hold, and dispose of property necessary and incidental to its operations.
(5)To make limited loans to members. To make loans with maturities not exceeding two years to its members for provident or productive purposes upon such terms and conditions as this Act and the bylaws provide and as the credit Interest rates.committee may approve, at rates of interest not exceeding 1 per centum per month on unpaid balances (inclusive of all charges incident *Proviso*.Restrictions on loans to officers, etc.to making the loan): *Provided*, That no loans to a director, officer, or member of a committee shall exceed the amount of his holdings in the Federal credit union as represented by shares Endorsements.thereof. No director, officer, or committee member shall endorse Repayments.for borrowers. A borrower may repay his loan, prior to maturity, in whole or in part on any business day.
(6)To receive from its members payments on shares.
(7)Investment of funds. To invest its funds
(a)in loans exclusively to members;
(b)in obligations of the United States of America, or securities fully guaranteed as to principal and interest thereby.
(8)Deposits. To make deposits in national banks and in State banks, trust companies, and mutual savings banks operating in accordance with the laws of the State in which the Federal credit union does business.
(9)To borrow limited amounts. To borrow (from any source) in an aggregare amount not exceeding 50 per centum of its paid-in and unimpaired capital and *Proviso*.Discount eligible paper with intermediate banks, etc.surplus: *Provided*, That any Federal credit union may discount with or sell to any Federal intermediate credit bank any eligible obligations up to the amount of its paid-in and unimpaired capital, subject to such rules and regulations as may be prescribed by the Governor. 1219
(10)To fine members, in accordance with the bylaws, for failureTo fine delinquents. to meet promptly their obligations to the Federal credit union.
(11)To impress and enforce a lien upon the shares and dividendsTo impress a lien for loans, etc. of any member, to the extent of any loan made to him and any dues or fines payable by him.
(12)To exercise such incidental powers as shall be necessaryExercise other corporate powers. or requisite to enable it to carry on effectively the business for which it is incorporated. bylawsBylaws. Sec. 8. In order to simplify the organization of Federal creditGovernor to prescribe. unions the Governor shall, upon the passage of this Act, cause to be prepared a form of organization certificate and a form of bylaws, consistent with this Act, which shall be used by Federal credit union incorporators, and shall be supplied to them on request. At the time of presenting the organization certificate the incorporators shall also submit proposed bylaws to the Governor for his approval. membershipMembership. Sec. 9. Federal credit union membership shall consist of theLimitations, requirements, fee, etc. incorporators and such other persons and incorporated and unincorporated organizations, to the extent permitted by rules and regulations prescribed by the Governor, as may be elected to membership and as shall, each, subscribe to at least one share of its stock and pay the initial installment thereon and the entrance fee; except that Federal credit union membership shall be limited to groups having a common bond of occupation, or association, or to groups within a well-defined neighborhood, community, or rural district. members’ meetingsMembers’ meetings. Sec. 10. The fiscal year of all Federal credit unions shall endFiscal year. December 31. The annual meeting of each Federal credit union shallAnnual and special meetings. be held at such time during the month of the following January and at such place as its bylaws shall prescribe. Special meetings may be held in the manner indicated in the bylaws. No member shall beVoting by proxy forbidden. entitled to vote by proxy, but a member other than a natural person may vote through an agent designated for the purpose. IrrespectiveMember to have but one vote. of the number of shares held by him, no member shall have more than one vote. managementManagement. Sec. 11.
(a)The business affairs of a Federal credit union shallBusiness to be conducted by board of not less than 5 directors. be managed by a board of not less than five directors, a credit committee of not less than three members, and a supervisoryCredit and supervisory committees of 3 members. committee of three members (a majority of whom shall not be directors) all to be elected by the members (and from their number) at their annual meeting, and to hold office for such terms, respectively, as the bylaws may provide. A record of the names and addresses ofRoster to be filed with Administration. the members or the board and committees and officers shall be filed with the Administration within ten days after their election. No member of the board or of either committee shall, as such be compensated.
(b)At their first meeting after the annual meeting of theDirectors to elect, from their number, certain executive officers. members, the directors shall elect from their number a president, a vice president, a clerk, and a treasurer, who shall be the executive officers1220Compensation allowed.of the corporation and may be compensated for their services to such extent as the bylaws may provide. The offices of clerk and treasurer Duties.may be held by the same person. The duties of the officers shall be as determined by the bylaws, except that the treasurer shall be the Treasurer to furnish bond.general manager of the corporation. Before the treasurer shall enter upon his duties he shall give bond with good and sufficient surety, in an amount and character to be determined from time to time by the board of directors, conditioned upon the faithful performance of his trust.
(c)Meetings, records, powers, etc. The board of directors shall meet at least once a month and shall have the general direction and control of the affairs of the corporation. Minutes of all such meetings shall be kept. Among other things they shall act upon applications for membership; fix the amount and character of the surety bond required of any officer having custody of funds; recommend the declaration of dividends; fill vacancies in the board and in the credit committee until successors elected at the next annual meeting have qualified; have charge of investments other than loans to members; determine from time to time, the maximum number of shares that may be held by any individual; and, subject to the limitations of this Act, determine the interest rates on loans and the maximum amount that may be loaned with or without security to any member.
(d)Meetings, etc. The credit committee shall hold such meetings as the business of the Federal credit union may require and not less frequently than once a month (of which meetings due notice shall be given to members of the committee by the treasurer) to consider applications for Loans.Approval.loans. No loan shall be made unless approved by a majority of the entire committee and by all of the members of the committee who are present at the meeting at which the application is considered. Applications for.Applications for loans shall be made on forms prepared by such committee, which shall set forth the purpose for which the loan is desired, the security, if any, and such other data as may be required. Maximum.No loan in excess of $50 shall be made without adequate security and no loan shall be made to any member in excess of $200 or 10 per centum of the Federal credit union’s paid-in and unimpaired capital Assignment or endorsement as security.and surplus, whichever is greater. For the purposes of this subdivision an assignment of shares or the endorsement of a note shall be deemed security.
(e)Duties prescribed.Quarterly examinations and annual audits. The supervisory committee shall make, at least quarterly, an examination of the affairs of the Federal credit union, including an audit of its books; shall make an annual audit and a report to be submitted at the annual meeting of the corporation; and, by a Suspending officers, etc.unanimous vote, may suspend any officer of the corporation, or any member of the credit committee or of the board of directors until the next members’ meeting, which said meeting, however, shall be held within seven days of said suspension and at which meeting said suspension shall be acted upon by the members; and, by a majority Special calls to consider violations, etc.vote, may call a special meeting of the shareholders to consider any violation of this Act, the charter, or of the bylaws, or any practice of the corporation deemed by the committee to be unsafe or unauthorized. The said committee shall fill vacancies in its own1221membership until successors to be elected at the next annual meeting have qualified. The supervisory committee shall cause theVerifying passbooks. passbooks and accounts of the members to be verified with the records of the treasurer from time to time and not less frequently than once every two years. reservesReserves. Sec. 12. All entrance fees and fines provided by the bylaws andEntrance fees and fines and 20% net earnings to be set aside against losses. 20 per centum of the net earnings of each year, before the declaration of any dividends, shall be set aside, subject to terms and conditions specified in the bylaws, as a reserve fund against possible bad loans. dividendsDividends. Sec. 13. At the annual meeting a dividend may be declared fromDeclaration of, on paid-up shares. the remaining net earnings on recommendation of the board of directors, which dividend shall be paid on all paid-up shares outstanding at the end of the preceding fiscal year. Shares whichProportional on shares paid during year. become fully paid up during such year shall be entitled to a proportional part of said dividend calculated from the 1st day of the month following such payment in full. expulsion and withdrawalExpulsion and withdrawal. Sec. 14. A member may be expelled by a two-thirds vote of theProvisions prescribed. members of a Federal credit union present at a special meeting called for the purpose, but only after an opportunity has been given him to be heard. Withdrawal or expulsion of a member shall not operate to relieve him from liability to the Federal credit union. The amount to be paid a withdrawing or expelled member by a Federal credit union shall be determined and paid in the manner specified in the bylaws. minorsMinors. Sec. 15. Shares may be issued in the name of a minor or in trust,Issue of shares to. subject to such conditions as may be prescribed by the bylaws. The name of the beneficiary shall be disclosed to the Federal credit union. certain powers of governorPowers of Governor. Sec. 16.
(a)The Governor may prescribe rules and regulationsTo prescribe rules of administration. for the administration of this Act (including, but not by way of limitation, the merger, consolidation, and/or dissolution of corporations organized under this Act).
(b)The Governor may suspend or revoke the charter of anyMay suspend, etc., credit union’s charter, etc. Federal credit union upon his finding that the organization is bankrupt or insolvent or has violated any provisions of its charter, its bylaws, or of this Act, or of any regulations issued thereunder.
(c)The Governor is hereby authorized and empowered to executeMay delegate powers to others. any and all functions and perform any and all duties vested in him hereby, through such persons as he shall designate or employ; and he may delegate to any person or persons, including any institution operating under the general supervision of the Administration, the performance and discharge of any authority, power, or function vested in him by this Act.
(d)All books and records of Federal credit unions shall be keptTo prescribe forms for keeping books, etc. and reports shall be made in accordance with forms approved by the Governor. 1222 fiscal agents and depositoriesFiscal agents and depositories. Sec. 17. Federal credit union may act as. Each Federal credit union organized under this Act, when requested by the Secretary of the Treasury, shall act as fiscal agent of the United States and shall perform such services as the Secretary of the Treasury may require in connection with the collection of taxes and other obligations due the United States and the Services specified.lending, borrowing, and repayment of money by the United States, including the issue, sale, redemption or repurchase of bonds, notes, Treasury certificates of indebtedness, or other obligations of the United States; and to facilitate such purposes the Governor shall furnish to the Secretary of the Treasury from time to time the names and addresses of all Federal credit unions with such other available information concerning them as may be requested by the Depository of public money.[U.S.C., p. 265](/us/usc/265).Secretary of the Treasury. Any Federal credit union organized under this Act, when designated for that purpose by the Secretary of the Treasury, shall be a depository of public money, except receipts from customs, under such regulations as may be prescribed by the Secretary of the Treasury. taxationTaxation. Sec. 18. Shares of stock, as personal property may be taxed. Nothing herein contained shall prevent the shares of stock in any Federal credit union organized hereunder from being included in the valuation of the personal property of the owners or holders of such shares in assessing taxes imposed by authority of the State in which the Federal credit union is located or shall prevent the taxation of any Federal credit union or its property by authority of such State in the manner and not to exceed the rate imposed upon domestic banking corporations. Sec. 19. Appropriation authorized.Vol. 47, p. 60. Not to exceed $50,000 of the fund available to the Governor under section 4 of the Act of March 3, 1932, for expenses of administration in connection with loans made thereunder to aid in the establishment of agricultural credit corporations, is hereby made available also for administrative expenses in administering this Act. Sec. 20. Saving provision.
(a)If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of the Act, and the application of such provisions to other persons or circumstances, shall not be affected thereby.
(b)Right to amend, etc., reserved. The right to alter, amend, or repeal this Act or any part thereof, or any charter issued pursuant to the provisions of this Act, is expressly reserved. Approved, June 26, 1934. To amend the Act of May 22, 1928, entitled “An Aet to authorize the collection, in monthly installments, of indebtedness due the United States from enlisted men, and for other purposes.” 1934-06-26 48 Stat. 1222 751 Chapter 73 2 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-12-11 public [CHAPTER 751.] AN ACT To amend the Act of May 22, 1928, entitled “An Aet to authorize the collection, in monthly installments, of indebtedness due the United States from enlisted men, and for other purposes.”June 26, 1934.[[S. 2043](/us/bill/73/s/2043).][[Public, No. 468](/us/pl/73/468).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Army.Collection of indebtedness from enlisted men.Vol. 45, p. 698, amended. That the Act of May 22, 1928 (45 Stat. 698), entitled “An Act to authorize the collection, in monthly installments, of indebtedness due the United States from enlisted men, and for other purposes ”, is hereby amended by the elimination of the third proviso of that Act reading as follows: “ *And provided, further*, That the Secretary of War, under such regulations as he shall prescribe, may cause to be remitted and canceled, upon honorable discharge of the enlisted man from the service, any 1223such indebtedness incurred during the current enlistment and remaining unpaid at the time of discharge ”; and the substitution therefor of the following: “ *And provided further*, That the Secretary of WarRemission of indebtedness, authorized. may cause to be remitted and canceled any part of such indebtedness remaining unpaid either on honorable discharge of the enlisted man from the service or prior thereto when in his opinion the interests of the Government are best served by such action. ” Approved, June 26, 1934. To provide for a preliminary examination of Cromline Creek in the State of New York, with a view to the control of its floods. 1934-06-26 48 Stat. 1223 752 Chapter 73 2 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-12-11 public [CHAPTER 752.] AN ACT To provide for a preliminary examination of Cromline Creek in the State of New York, with a view to the control of its floods.June 26, 1934.[[S. 3408](/us/bill/73/s/3408).][
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- To authorize the collection, in monthly installments, of indebtedness due the United States from enlisted men, and for other purposesChapter 676
- creating the Mount Rushmore National Memorial Commission and defining its powers and purposes”, approved February 25, 1929, and for other purposes. 1934-06-26 48 Stat. 1223 754 Chapter 73 2 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States CPublic Law 471
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- 48 Stat. 1222
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