Page:United States Statutes at Large Volume 92 Part 3.djvu/1089

 PUBLIC LAW 95-630—NOV. 10, 1978

92 STAT. 3721

' ' C A P I T A L STOCK

"SEC. 305. (a) As soon as practicable, the Administrator shall open Subscriptions, books for subscriptions to the capital stock of the Facility. The mini- 12 USC 1795d. mum subscription shall be $50. "(b) The capital stock of the Facility— "(1) shall be divided into shares having a par value of $50 each; " (2) shall be paid for with cash or with securities of the United States or any Agency thereof in accordance with requirements the Administrator may impose; "(3) shall share in dividend distributions without preference and at rates to be determined by the Administrator; and "(4) shall not be transferred or hypothecated except as provided for herein. "(c) When circumstances require that all or a portion of a member's stock be redeemed by the Facility, the Administrator shall pay an amount equal to what the member originally paid for the stock less any amount owed by the member to the Facility. "(d) At least one-half of the payment for the subscription amount required for membership under section 304 of this subchapter shall be transferred to the Facility. The remainder may be held by the member on call of the Administrator and shall be invested in assets designated by the Administrator. "(e) A credit union or credit union group that becomes a member of the Facility later than six months after the date the Administrator opens books for capital stock subscriptions, may not borrow or receive advances from the Facility without approval by the Administrator for a period of six months after becoming a member. a EXTENSIONS O r CREDIT

"SEC. 306. (a)(1) A member may apply for an extension of credit Application. from the Facility to meet its liquidity needs. The Administrator shall 12 USC 1795e. approve or deny any such application within five working days after receiving it. The Administrator shall not approve an application for credit the intent of which is to expand credit union portfolios. "(2) The Administrator may advance funds to a member on terms and conditions prescribed by the Administrator after giving due consideration to creditworthiness. "(3) The Administrator shall not advance funds for the benefit of a credit union whose share or deposit accounts are insured by a State share or deposit guaranty credit union, insurance corporation, or guaranty association, without consultation with the appropriate State share or deposit guaranty credit union, insurance corporation, or guaranty association. "(b) The Secretary of the Treasury is authorized to lend to the Certification. Facility up to $500,000,000, in the event the Administrator certifies to the Secretary that the Facility does not have sufficient funds to meet liquidity needs of credit unions. Any such loan shall bear an interest • rate not greater than one-eighth of 1 per centum above the current average market yield on outstanding obligations of the United States with remaining time to maturity comparable to the maturity of such loan. The authority of the Secretary to lend under this subsection shall be limited to such extent or in such amounts as are provided in advance in appropriation Acts.

39-194 O—80—pt. 3

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