§ 1788. Special assistance to avoid liquidation

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(a)Loans; purchase of assets; accounts; agreements affecting interest of Board in any asset acquired by it

(1)In order to reopen a closed insured credit union or in order to prevent the closing of an insured credit union which the Board has determined is in danger of closing or in order to assist in the voluntary liquidation of a solvent credit union, the Board, in its discretion, is authorized to make loans to, or purchase the assets of, or establish accounts in such insured credit union upon such terms and conditions as it may prescribe. Except with respect to the voluntary liquidation of a solvent credit union, such loans shall be made and such accounts shall be established only when, in the opinion of the Board, such action is necessary to protect the fund or the interests of the members of the credit union.

(2)Whenever in the judgment of the Board such action will reduce the risk or avert a threatened loss to the fund and will facilitate a merger or consolidation of an insured credit union with another insured credit union, or will facilitate the sale of the assets of an open or closed insured credit union to and assumption of its liability by another person, the Board may, upon such terms and conditions as it may determine, make loans secured in whole or in part by assets of an open or closed insured credit union, which loans may be in subordination to the rights of members and creditors of such credit union, or the Board may purchase any of such assets or may guarantee any person against loss by reason of its assuming the liabilities and purchasing the assets of an open or closed insured credit union. For purposes of this paragraph, the term “person” means any credit union, individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity.

(3)No agreement which tends to diminish or defeat the right, title, or interest of the Board, in any asset acquired by it under this subsection, either as security for a loan or by purchase, shall be valid against the Board unless such agreement—

(A)shall be in writing;

(B)shall have been executed by the credit union and the person or persons claiming an adverse interest thereunder, including the obligor, contemporaneously with the acquisition of the asset by the credit union;

(C)shall have been approved by the board of directors of the credit union, which approval shall be reflected in the minutes of such board; and

(D)shall have been continuously, from the time of its execution, an official record of the credit union.

(b)Protection of Fund For the protection of the Fund, the Board, without regard to chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, may—

(1)deal with, complete, reconstruct, rent, renovate, modernize, insure, make contracts for the management of, sell for cash or credit, or lease, in its discretion, any real property acquired or held by it under this section; and

(2)assign or sell at public or private sale, or otherwise dispose of, any evidence of debt, contract, claim, personal property, or security assigned to or held by it under this section.

Section 6101 of title 41 shall not apply to any purchase or contract for services or supplies made or entered into by the Board under this section if the amount thereof does not exceed $1,000, or to any contract for hazard insurance on any real property acquired or held by it under this section.

(c)Money paid into Fund Money received by the Board in carrying out this section shall be paid into the Fund.

(June 26, 1934, ch. 750, title II, § 208, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 1013; amended Pub. L. 92–221, § 3, Dec. 23, 1971, 85 Stat. 797; Pub. L. 93–383, title VII, § 729, Aug. 22, 1974, 88 Stat. 721; Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 100–86, title VII, § 714(b), (c), Aug. 10, 1987, 101 Stat. 655.)

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Cited by 64 sections · top 36

U.S. Code

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statutes-at-large

statute-compilations

Sec. 208
special assistance for federally insured credit unions

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U.S. Code

20 references not yet in our index

June 26, 1934, ch. 750
Pub. L. 91–468, § 1(3)
84 Stat. 1013
Pub. L. 92–221, § 3
85 Stat. 797
Pub. L. 93–383, title VII, § 729
88 Stat. 721
Pub. L. 95–630, title V, § 502(b)
92 Stat. 3681
Pub. L. 100–86, title VII, § 714(b)
101 Stat. 655
Pub. L. 107–217, § 5(c)
116 Stat. 1303
Pub. L. 111–350, § 6(c)
124 Stat. 3854
Pub. L. 100–86
Pub. L. 95–630
Pub. L. 93–383
Pub. L. 92–221
section 509 of Pub. L. 95–630

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cites case law

§ 1788

Special assistance to avoid liquidation

Fed. Reg.×42

U.S.C.×11

C.F.R.×6

Stat.×4

Stat. Comp.×1

U.S.C.§ 6101

U.S.C.§ 1787

U.S.C.§ 1752

ActJune 26, 1934, ch. 750

Pub. L.Pub. L. 91–468, § 1(3)

Stat.84 Stat. 1013

Pub. L.Pub. L. 92–221, § 3

Stat.85 Stat. 797

Cites 23 · showing 8Cited by 64 across 5 sources