Page:United States Statutes at Large Volume 85.djvu/827

 85 STAT. ]

PUBLIC LAW 92-221-DEC. 23, 1971

797

period of two years is an insured credit union under the provisions of this title for such period of two years. The Administrator shall, having regard to the purposes of this subsection, make every reasonable effort to prevent the closing of any Federal credit union which is insured for a period of two years under this subsection and is found to be in financial difficulties, if he determines that with the technical assistance and management training and counseling authorized to be provided under this subsection there is reasonable assurance that such difficulties can be sufficiently resolved within such two-year period so as to minimize the expenses of the Fund. The Administrator shall offer technical assistance, management training, and management counseling to all credit unions whose application for insurance has been disapproved so as to enable the maximum number of such credit unions to meet the standards for insurance required by this title. In furnishing such technical assistance, management training, and management counseling, the Administrator may utilize moneys in the National Credit Union Stat. 999. Share Insurance F u n d as provided under section 203(a) of this title. 84 USC 1783. 12 The Administrator shall also encourage to the maximum extent feasible, that such technical assistance, management training, and management counseling be made available through State stabilization funds, similar funds, or similar State credit union organizations. The Administrator shall also encourage State Credit Union Stabilization Funds or similar funds to reimburse the Credit Union Share Insurance F u n d for any insurance payments made on behalf of accounts at insured credit unions whose applications for insurance have been disapproved." SEC. 2. Subsection (c) of section 201 of the Federal Credit Union state credit Act (12 U.S.C. 1781(c)) is amended by adding at the end thereof the ""'°"'* following new paragraph: "(3) With respect to State credit unions which are authorized by State law to receive demand deposits, the Administrator shall approve the application of any such State credit union for insurance of its member accounts if (A) such State credit union otherw^ise meets the requirements for insurance established under this Act, and (B) in the event of liquidation of such State credit union, the claims with respect to demand deposit accounts shall be subordinate to the claims with respect to member accounts. For purposes of this paragraph and for purposes of determining the extent of insurance coverage under this Act, demand deposit accounts shall not be considered member accounts and shall not be insured under the provisions of this Act." SEC. 3. Section 208(a)(2) of the Federal Credit Union Act (12 '^°"""U.S.C. 1788(a)(2)) is amended by— (1) striking out "assumption of its liability by another insured credit union" and inserting in lieu thereof "assumption of its liability by another person"; (2) striking out "may guarantee any other insured credit union against loss by reason of its" and inserting in lieu thereof "may guarantee any person against loss by reason of his"; and (3) adding at the end thereof the following new sentence: "For "Person." 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." Approved December 23, 1971.

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