Page:United States Statutes at Large Volume 84 Part 1.djvu/1060

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PUBLIC LAW 91-468-OCT. 19, 1970

[84 STAT.

"REQUIREMENTS GOVERNING INSURED CREDIT UNIONS Insured status, advertisement.

Restrictions.

Penalty.

Security standards.

"SEC, 205. (a) Every insured credit union shall display at each place of business maintained by it a sign or signs indicating that its member accounts are insured by the Administrator and shall include in all of its advertisements a statement to the effect that its member accounts are insured by the Administrator. The Administrator may exempt from this requirement advertisements which do not relate to member accounts or advertisements in which it is impractical to include such a statement. The Administrator shall prescribe by regulation the forms of such signs, the manner of display, the substance of any such statement, and the manner of use. " (b)(1) Except with the prior written approval of the Administrator, no insured credit union shall— " (A) merge or consolidate with any noninsured credit union or institution; " (B) assume liability to pay any member accounts in, or similar liabilities of, any noninsured credit union or institution; " (C) transfer assets to any noninsured credit union or institution in consideration of the assumption of liabilities for any portion of the member accounts in such insured credit union; or " (D) convert into a noninsured credit union or institution. "(2) Except with the prior written approval of the Administrator, no insured credit union shall merge or consolidate with any other insured credit union or, either directly or indirectly, acquire the assets of, or assume liability to pay any member accounts in, any other insured credit union. "(c) I n granting or withholding approval or consent under subsection (b) of this section, the Administrator shall consider— "(1) the history, financial condition, and management policies of the credit union; "(2) the adequacy of the credit union's reserves; "(3) the economic advisability of the transaction; "(4) the general character and fitness of the credit union's management; "(5) the convenience and needs of the members to be served by the credit union; and "(6) whether the credit union is a cooperative association organized for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes. " (d) Except with the written consent of the Administrator, no person shall serve as a director, officer, committee member, or einployee of an insured credit union who has been convicted, or who is hereafter convicted, of any criminal offense involving dishonesty or a breach of trust. For each willful violation of this prohibition, the credit union involved shall be subject to a penalty of not more than $100 for each day this prohibition is violated, which the Administrator may recover for his use. " (e)(1) The Administrator shall promulgate rules establishing minimum standards with which each insured credit union must comply with respect to the installation, maintenance, and operation of security devices and procedures, reasonable in cost, to discourage robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons who commit such acts. "(2) The rules shall establish the time limits within which insured credit unions shall comply with the standards and shall require the

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