Page:United States Statutes at Large Volume 112 Part 2.djvu/45

 PUBLIC LAW 105-219—AUG. 7, 1998 112 STAT. 929 "(B) the Board shall, upon timely request of an official referred to in subparagraph (A), promptly provide the official with— "(i) a written statement of the reasons for the proposed action; and "(ii) reasonable time to respond to that statement; "(C) if the official referred to in subparagraph (A) makes a timely written response that disagrees with the proposed action and gives reasons for that disagreement, the Board shall not appoint a conservator or liquidating agent for the credit union, unless the Board, after considering the views of the official, has determined that— "(i) the Fund faces a significant risk of loss with respect to the credit union if a conservator or liquidating agent is not appointed; and "(ii) the appointment is necessary to reduce— "(I) the risk that the Fund would incur a loss with respect to the credit union; or (II) any loss that the Fund is expected to incur with respect to the credit union; and "(D) the Board may not delegate any determination under subparagraph (C). "(m) CORPORATE CREDIT UNIONS EXEMPTED. —This section does not apply to any insured credit union that— "(1) operates primarily for the purpose of serving credit unions; and "(2) permits individuals to be members of the credit union only to the extent that applicable law requires that such persons own shares. "(n) OTHER AUTHORITY NOT AFFECTED.— This section does not limit any authority of the Board or a State to take action in addition to (but not in derogation of) that is required under this section. \ "(o) DEFINITIONS.— For purposes of this section^tl^e following definitions shall apply: "(1) FEDERAL BANKING AGENCY.— The term 'Federal banking agency' has the same meaning as in section 3 of the Federal Deposit Insurance Act. "(2) NET WORTH.—The term 'net worth'— "(A) with respect to any insured credit union, means retained earnings bsdance of the credit union, as determined under generally accepted accounting principles; and "(B) with respect to a low-income credit union, includes secondary capital accounts that are— "(i) uninsured; and "(ii) subordinate to all other claims against the credit union, including the claims of creditors, shareholders, and the Fund. "(3) NET WORTH RATIO.— The term 'net worth ratio' means, with respect to a credit union, the ratio of the net worth of the credit union to the total assets of the credit union. "(4) NEW CREDIT UNION. —The term 'new credit union' means an insured credit union that— "(A) has been in operation for less than 10 years; and "(B) has not more than $10,000,000 in total assets.".

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