Page:United States Statutes at Large Volume 91.djvu/86

 91 STAT. 52

AmmH

Reserves.

Reserve requirement, decrease.

Director, officer, or committee member, removal.

Member account.

Ante, p. 51.

PUBLIC LAW 95-22—APR. 19, 1977 (3) by striking "loan" as it appears after "each" and before "approved" in the fourth sentence, and inserting in lieu thereof "application"; (4) by striking "loans" in the fifth sentence and inserting in lieu thereof "applications"; (5) by Striking "for any loan which" in the sixth sentence and inserting in lieu thereof "with respect to any loan or line of credit for which the application"; (6) by adding "and lines of credit" after "loans" in the eighth sentence and by striking "the purpose for which the loan is desired"; (7) by striking the ninth sentence; and (8) by striking "$200 or" and "whichever is greater", in the SEC. 305. Section 116 of the Federal Credit Union Act (12 U.S.C. 1762) is amended by striking out the first sentence of subsection (a) and inserting in lieu thereof "At the end of each accounting period the gross income shall be determined." and by striking out all after the colon in subsection (a), by striking out subsection (b), and by inserting in lieu thereof the following: "(1) A credit union in operation for more than four years and having assets of $500,000 or more shall set aside (A) 10 per centum of gross income until the regular reserve shall equal 4 per centum of the total of outstanding loans and risk assets, then (B) 5 per centum of gross income until the regular reserve shall equal 6 per centum of the total of outstanding loans and risk assets. " (2) A credit union in operation less than four years or having assets of less than $500,000 shall set aside (A) 10 per centum of gross income until the regular reserve shall equal 71^ per centum of the total of outstanding loans and risk assets, then (B) 5 per centum of gross income until the regular reserve shall equal 10 per centum of the total of outstanding loans and risk assets. "(3) Whenever the regular reserve falls below the stated per centum of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the s t a t ^ reserve goals. "(b) The Administrator may decrease the reserve requirement set forth in subsection (a) of this section when in his opinion such a decrease is necessary or desirable. The Administrator may also require special reserves to protect the interests of members either by regulation or for an individual credit union in any special case.". SEC. 306. Subsection (b)(3)(B) of section 120 of the Federal Credit Union Act (12 U.S.C. 1766) is amended by striking out "shares" and inserting in lieu thereof "member accounts^'. SEC. 307. (a) Subsection (g)(1) of section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended by striking out "and that such violation or practice or breach of fiduciary duty is one involving personal dishonesty on the part of such director, officer, or committee member". (b) Subsection (g)(2) of such section is amended by changing "dishonesty and unfitness" to read "dishonesty or unfitness" each place it appears therein. SEC. 308. Paragraph (4) of section 101 of the Federal Credit Union Act (12 U.S.C. 1752), the second time it appears therein, is amended by inserting immediately before the semicolon at the end thereof the following:", and such terms mean those accounts of nonmember credit unions and nonmember units of Federal, State, or local governments and political subdivisions thereof in which payments are received by a credit union pursuant to section 107(6) of this Act;".

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