Page:United States Statutes at Large Volume 91.djvu/85

 PUBLIC LAW 95-22—APR. 19, 1977 •

91 STAT. 51

Provided, That a credit union which originates a loan for which participation arrangements are made in accordance with this subsection shall retain an interest of at least 10 per centum of the face amount of the loan.", Repeal. (b) Paragraph (6) of such section is repealed. SEC. 303. (a) Paragraph (7) of section 107 of the Federal Credit Union Act (12 U.S.C. 1757) is redesignated as paragraph (6) and is amended to read as follows: "(6) to receive from its members, from other credit unions, Payments on from an officer, employee, or agent of those nonmember units of shares and share Federal, State, or local governments and political subdivisions certificates. thereof enumerated in section 207 of this Act and in the manner 12 USC 1787. so prescribed, and from nonmembers in the case of credit unions serving predominately low-income members (as defined by the Administrator) '* ' payments on shares which may be issued at varying dividend rates, and payments on share certificates which may be issued at varying dividend rates and maturities, subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Administrator.". (b) Paragraph (8) of such section is redesignated as paragraph (7) and amended by adding the following paragraph: " (I) in the shares, stocks, or obligations of any other organization, providing services which are associated with the routine operations of credit unions, up to 1 per centum of the total paid in and unimpaired capital and surplus of the credit union with the approval of the Administrator: Provided, however, That such authority does not include the power to acquire control directly or indirectly, of another financial institution, nor invest in shares, stocks or obligations of an insurance company, trade association, liquidity facility or any other similar organization, corporation, or association, except as otherwise expressly provided by this Act;". (c) Paragraphs (9) through (14) of section 107 are redesignated paragraphs (8) through (13). (d) Paragraph (13), as redesignated, of section 107 is amended by inserting after the first comma the following: "to purchase, sell, pledge, or discount or otherwise receive or dispose of, in whole or in part, any eligible obligations (as defined by the Administrator) of its members and". (e) Section 107 is further amended by adding the following new paragraph after paragraph (13): "(14) to sell all or a part of its assets to another credit union, to purchase all or part of the assets of another credit union and to assume the liabilities of the selling credit union and those of its members subject to regulations of the Administrator;". SEC. 304. Section 114 of the Federal Credit Union Act (12 U.S.C. Credit committee. 1761c) is amended as follows: (1) by adding "and lines of credit" after "loans" in the first sentence; (2) by striking "No loan shall be made unless it is approved" in the third sentence and inserting in lieu thereof "Except for those loans or lines of credit required to be approved by the board of directors in section 107(5) of this Act, approval of an application shall be" and by adding "and lines of credit" after "the power to approve loans";

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