Page:United States Statutes at Large Volume 84 Part 1.djvu/1071

 84 STAT. ]

PUBLIC LAW 91-468-OCT. 19, 1970

credit union, no such loan or purchase shall be made without the approval of a court of competent jurisdiction. " (2) No agreement which tends to diminish or defeat the right, title, or interest of the Administrator in any asset acquired by him under this subsection, either as security for a loan or by purchase, shall be valid against the Administrator 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, mcluding 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. "SPECIAL ASSISTANCE TO AVOID LIQUIDATION

"SEC. 208. (a)(1) In order to reopen a closed insured credit union Loans. or in order to prevent the closing of an insured credit union which the Administrator has determined is in danger of closing, the Administrator, in his 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 he may prescribe. Such loans shall be made and such accounts shall be established only when, in the opinion of the Administrator, such action is necessary to protect the Fund or the interests of the members of the credit union. Such loans and accounts may be in subordination to the rights of members and creditors of the credit union. "(2) Whenever in the judgment of the Administrator 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 insured credit union, the Administrator may, upon such terms and conditions as he 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 Administrator may purchase any of such assets or may guarantee any other insured credit union against loss by reason of its assuming the liabilities and purchasing the assets of an open or closed insured credit union. "(3) No agreement which tends to diminish or defeat the right, title, or interest of the Administrator, in any asset acquired by him under this subsection, either as security for a loan or by purchase, shall be valid against the Administrator 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.

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