§ 1782. — Administration of insurance fund.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1782]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER II--SHARE INSURANCE
Sec. 1782. Administration of insurance fund
(a) Reports of condition
(1) Each insured credit union shall make reports of condition to the
Board upon dates which shall be selected by it. Such reports of
condition shall be in such form and shall contain such information as
the Board may require. The reporting dates selected for reports of
condition shall be the same for all insured credit unions except that
when any of said reporting dates is a nonbusiness day for any credit
union the preceding business day shall be its reporting date. The total
amount of the member accounts of each insured credit union as of each
reporting date shall be reported in such reports of condition in
accordance with regulations prescribed by the Board. Each report of
condition shall contain a declaration by the president, by a vice
president, by the treasurer, or by any other officer designated by the
board of directors of the reporting credit union to make such
declaration, that the report is true and correct to the best of such
officer's knowledge and belief. Unless such requirement is waived by the
Board, the correctness of each report of condition shall be attested by
the signatures of three of the officers of the reporting credit union
with the declaration that the report has been examined by them and to
the best of their knowledge and belief is true and correct.
(2) The Board may call for such other reports as it may from time to
time require.
(3) The Board may require reports of condition to be published in
such manner, not inconsistent with any applicable law, as it may direct.
Any insured credit union which maintains procedures reasonably adapted
to avoid any inadvertent error and, unintentionally and as a result of
such an error, fails to submit or publish any report required under this
subsection or section 1756 of this title, within the period of time
specified by the Board, or submits or publishes any false or misleading
report or information, or inadvertently transmits or publishes any
report which is minimally late, shall be subject to a penalty of not
more than $2,000 for each day during which such failure continues or
such false or misleading information is not corrected. The insured
credit union shall have the burden of proving that an error was
inadvertent and that a report was inadvertently transmitted or published
late. Any insured credit union which fails to submit or publish any
report required under this subsection or section 1756 of this title,
within the period of time specified by the Board, or submits or
publishes any false or misleading report or information, in a manner not
described in the 2nd preceding sentence shall be subject to a penalty of
not more than $20,000 for each day during which such failure continues
or such false or misleading information is not corrected.
Notwithstanding the preceding sentence, if any insured credit union
knowingly or with reckless disregard for the accuracy of any information
or report described in such sentence submits or publishes any false or
misleading report or information, the Board may assess a penalty of not
more than $1,000,000 or 1 percent of total assets of such credit union,
whichever is less, per day for each day during which such failure
continues or such false or misleading information is not corrected. Any
penalty imposed under any of the 4 preceding sentences shall be assessed
and collected by the Board in the manner provided in section 1786(k)(2)
of this title (for penalties imposed under such section) and any such
assessment (including the determination of the amount of the penalty)
shall be subject to the provisions of such section. Any insured credit
union against which any penalty is assessed under this subsection shall
be afforded an agency hearing if such insured credit union submits a
request for such hearing within 20 days after the issuance of the notice
of assessment. Section 1786(j) of this title shall apply to any
proceeding under this subsection.
(4) The Board may accept any report of condition made to any
commission, board, or authority having supervision of a State-chartered
credit union and may furnish to any such commission, board, or authority
reports of condition made to the Board.
(5) Reports required under subchapter I of this chapter shall be so
prepared that they can be used for share insurance purposes. To the
maximum extent feasible, the Board shall use for insurance purposes
reports submitted to State regulatory agencies by State-chartered credit
unions.
(6) Audit requirement.--
(A) In general.--Before the end of the 120-day period beginning
on August 9, 1989, and notwithstanding any other provision of
Federal or State law, the Board shall prescribe, by regulation,
audit standards which require an outside, independent audit of any
insured credit union by a certified public accountant for any fiscal
year (of such credit union)--
(i) for which such credit union has not conducted an annual
supervisory committee audit;
(ii) for which such credit union has not received a complete
and satisfactory supervisory committee audit; or
(iii) during which such credit union has experienced
persistent and serious recordkeeping deficiencies, as determined
by the Board.
(B) Unsafe or unsound practice.--The Board may treat the failure
of any insured credit union to obtain an outside, independent audit
for any fiscal year for which such audit is required under
subparagraph (A) or (D) as an unsafe or unsound practice within the
meaning of section 1786(b) of this title.
(C) Accounting principles.--
(i) In general.--Accounting principles applicable to reports
or statements required to be filed with the Board by each
insured credit union shall be uniform and consistent with
generally accepted accounting principles.
(ii) Board determination.--If the Board determines that the
application of any generally accepted accounting principle to
any insured credit union is not appropriate, the Board may
prescribe an accounting principle for application to the credit
union that is no less stringent than generally accepted
accounting principles.
(iii) De minimus exception.--This subparagraph shall not
apply to any insured credit union, the total assets of which are
less than $10,000,000, unless prescribed by the Board or an
appropriate State credit union supervisor.
(D) Large credit union audit requirement.--
(i) In general.--Each insured credit union having total
assets of $500,000,000 or more shall have an annual independent
audit of the financial statements of the credit union, performed
in accordance with generally accepted auditing standards by an
independent certified public accountant or public accountant
licensed by the appropriate State or jurisdiction to perform
those services.
(ii) Voluntary audits.--If a Federal credit union that is
not required to conduct an audit under clause (i), and that has
total assets of more than $10,000,000 conducts such an audit for
any purpose, using an independent auditor who is compensated for
his or her audit services with respect to that audit, the audit
shall be performed consistent with the accountancy laws of the
appropriate State or jurisdiction, including licensing
requirements.
(7) Report to independent auditor.--
(A) In general.--Each insured credit union which has engaged the
services of an independent auditor to audit such depository
institution within the past 2 years shall transmit to such auditor a
copy of the most recent report of condition made by such credit
union (pursuant to this chapter or any other provision of law) and a
copy of the most recent report of examination received by such
credit union.
(B) Additional information.--In addition to the copies of the
reports required to be provided to an auditor under subparagraph
(A), each insured credit union shall provide such auditor with--
(i) a copy of any supervisory memorandum of understanding
with such credit union and any written agreement between the
Board or a State regulatory agency and the credit union which is
in effect during the period covered by the audit; and
(ii) a report of any action initiated or taken by the Board
during such period under subsection (e), (f), (g), (i), (l), or
(q) of section 1786 of this title, or any similar action taken
by a State regulatory agency under State law, or any other civil
money penalty assessed by the Board under this chapter, with
respect to--
(I) the credit union; or
(II) any institution-affiliated party.
(b) Certified statement
(1) Statement required
(A) In general
For each calendar year, in the case of an insured credit
union with total assets of not more than $50,000,000, and for
each semi-annual period in the case of an insured credit union
with total assets of $50,000,000 or more, an insured credit
union shall file with the Board, at such time as the Board
prescribes, a certified statement showing the total amount of
insured shares in the credit union at the close of the relevant
period and both the amount of its deposit or adjustment of
deposit and the amount of the insurance charge due to the Fund
for that period, both as computed under subsection (c) of this
section.
(B) Exception for newly insured credit union
Subparagraph (A) shall not apply with respect to a credit
union that became insured during the reporting period.
(2) Form
The certified statements required to be filed with the Board
pursuant to this subsection shall be in such form and shall set
forth such supporting information as the Board shall require.
(3) Certification
The president of the credit union or any officer designated by
the board of directors shall certify, with respect to each statement
required to be filed with the Board pursuant to this subsection,
that to the best of his or her knowledge and belief the statement is
true, correct, complete, and in accordance with this subchapter and
the regulations issued under this subchapter.
(c) Deposit with National Credit Union Share Insurance Fund; amount,
return, distribution, etc.
(1)(A)(i) Each insured credit union shall pay to and maintain with
the National Credit Union Share Insurance Fund a deposit in an amount
equaling 1 per centum of the credit union's insured shares.
(ii) The Board may, in its discretion, authorize insured credit
unions to initially fund such deposit over a period of time in excess of
one year if necessary to avoid adverse effects on the condition of
insured credit unions.
(iii) Periodic adjustment.--The amount of each insured credit
union's deposit shall be adjusted as follows, in accordance with
procedures determined by the Board, to reflect changes in the credit
union's insured shares:
(I) annually, in the case of an insured credit union with total
assets of not more than $50,000,000; and
(II) semi-annually, in the case of an insured credit union with
total assets of $50,000,000 or more.
(B)(i) The deposit shall be returned to an insured credit union in
the event that its insurance coverage is terminated, it converts to
insurance coverage from another source, or in the event the operations
of the fund are transferred from the National Credit Union
Administration Board.
(ii) The deposit shall be returned in accordance with procedures and
valuation methods determined by the Board, but in no event shall the
deposit be returned any later than one year after the final date on
which no shares of the credit union are insured by the Board.
(iii) The deposit shall not be returned in the event of liquidation
on account of bankruptcy or insolvency.
(iv) The deposit funds may be used by the fund if necessary to meet
its expenses, in which case the amount so used shall be expensed and
shall be replenished by insured credit unions in accordance with
procedures established by the Board.
(2) Insurance premium charges.--
(A) In general.--Each insured credit union shall, at such times
as the Board prescribes (but not more than twice in any calendar
year), pay to the Fund a premium charge for insurance in an amount
stated as a percentage of insured shares (which shall be the same
for all insured credit unions).
(B) Relation of premium charge to equity ratio of Fund.--The
Board may assess a premium charge only if--
(i) the Fund's equity ratio is less than 1.3 percent; and
(ii) the premium charge does not exceed the amount necessary
to restore the equity ratio to 1.3 percent.
(C) Premium charge required if equity ratio falls below 1.2
percent.--If the Fund's equity ratio is less than 1.2 percent, the
Board shall, subject to subparagraph (B), assess a premium charge in
such an amount as the Board determines to be necessary to restore
the equity ratio to, and maintain that ratio at, 1.2 percent.
(3) Distributions from Fund required.--
(A) In general.--The Board shall effect a pro rata distribution
to insured credit unions after each calendar year if, as of the end
of that calendar year--
(i) any loans to the Fund from the Federal Government, and
any interest on those loans, have been repaid;
(ii) the Fund's equity ratio exceeds the normal operating
level; and
(iii) the Fund's available assets ratio exceeds 1.0 percent.
(B) Amount of distribution.--The Board shall distribute under
subparagraph (A) the maximum possible amount that--
(i) does not reduce the Fund's equity ratio below the normal
operating level; and
(ii) does not reduce the Fund's available assets ratio below
1.0 percent.
(C) Calculation based on certified statements.--In calculating
the Fund's equity ratio and available assets ratio for purposes of
this paragraph, the Board shall determine the aggregate amount of
the insured shares in all insured credit unions from insured credit
unions certified statements under subsection (b) of this section of
this section for the final reporting period of the calendar year
referred to in subparagraph (A).
(4) Timeliness and accuracy of data.--In calculating the available
assets ratio and equity ratio of the Fund, the Board shall use the most
current and accurate data reasonably available.
(d) Remedy for failure to report; penalty for failure to file certified
statement or pay premium; dispute as to deposit or premium
charge; prohibition on distribution of assets or dividends while
in default
(1) Any insured credit union which fails to make any report of
condition under subsection (a) of this section or to file any certified
statement required to be filed by it in connection with determining the
amount of its deposit or any premium charge for insurance may be
compelled to make such report or to file such statement by mandatory
injunction or other appropriate remedy in a suit brought for such
purpose by the Board against the credit union and any officer or
officers thereof. Any such suit may be brought in any court of the
United States of competent jurisdiction in the district or territory in
which the principal office of the credit union is located.
(2) Penalty for failure to make accurate certified statement or to
pay deposit or premium.--
(A) First tier.--Any insured credit union which--
(i) maintains procedures reasonably adapted to avoid any
inadvertent error and, unintentionally and as a result of such
an error, fails to submit any certified statement under
subsection (b)(1) of this section within the period of time
required or submits a false or misleading certified statement
under such subsection; or
(ii) submits the statement at a time which is minimally
after the time required,
shall be subject to a penalty of not more than $2,000 for each day
during which such failure continues or such false and misleading
information is not corrected. The insured credit union shall have
the burden of proving that an error was inadvertent or that a
statement was inadvertently submitted late.
(B) Second tier.--Any insured credit union which--
(i) fails to submit any certified statement under subsection
(b)(1) of this section within the period of time required or
submits a false or misleading certified statement in a manner
not described in subparagraph (A); or
(ii) fails or refuses to pay any deposit or premium for
insurance required under this subchapter,
shall be subject to a penalty of not more than $20,000 for each day
during which such failure continues, such false and misleading
information is not corrected, or such deposit or premium is not
paid.
(C) Third tier.--Notwithstanding subparagraphs (A) and (B), if
any insured credit union knowingly or with reckless disregard for
the accuracy of any certified statement under subsection (b)(1) of
this section submits a false or misleading certified statement under
such subsection, the Board may assess a penalty of not more than
$1,000,000 or not more than 1 percent of the total assets of the
credit union, whichever is less, per day for each day during which
the failure continues or the false or misleading information in such
statement is not corrected.
(D) Assessment procedure.--Any penalty imposed under this
paragraph shall be assessed and collected by the Board in the manner
provided in section 1786(k)(2) of this title (for penalties imposed
under such section) and any such assessment (including the
determination of the amount of the penalty) shall be subject to the
provisions of such section.
(E) Hearing.--Any insured credit union against which any penalty
is assessed under this paragraph shall be afforded an agency hearing
if the credit union submits a request for such hearing within 20
days after the issuance of the notice of the assessment. Section
1786(j) of this title shall apply to any proceeding under this
subparagraph.
(F) Special rule for disputed payments.--No penalty may be
assessed for the failure of any insured credit union to pay any
deposit or premium for insurance if--
(i) the failure is due to a dispute between the credit union
and the Board over the amount of the deposit or premium which is
due from the credit union; and
(ii) the credit union deposits security satisfactory to the
Board for payment of the deposit or insurance premium upon final
determination of the dispute.
(3) No insured credit union shall pay any dividends on its insured
shares or distribute any of its assets while it remains in default in
the payment of its deposit or any premium charge for insurance due to
the fund. Any director or officer of any insured credit union who
knowingly participates in the declaration or payment of any such
dividend or in any such distribution shall, upon conviction, be fined
not more than $1,000 or imprisoned not more than one year, or both. The
provisions of this paragraph shall not be applicable in any case in
which the default is due to a dispute between the credit union and the
Board over the amount of its deposit or the premium charge due to the
fund if the credit union deposits security satisfactory to the Board for
payment of its deposit or the premium charge upon final determination of
the issue.
(e) Recovery of unpaid deposit or premium; limitations
The Board, in a suit brought at law or in equity in any court of
competent jurisdiction, shall be entitled to recover from any insured
credit union the amount of any unpaid deposit or premium charge for
insurance lawfully payable by the credit union to the fund, whether or
not such credit union shall have made any report of condition under
subsection (a) of this section or filed any certified statement required
under subsection (b) of this section and whether or not suit shall have
been brought to compel the credit union to make any such report or to
file any such statement. No action or proceeding shall be brought for
the recovery of any deposit or premium charge due to the fund, or for
the recovery of any amount paid to the fund in excess of the amount due
it, unless such action or proceeding shall have been brought within five
years after the right accrued for which the claim is made. Where the
insured credit union has made or filed with the Board a false or
fraudulent certified statement with the intent to evade, in whole or in
part, the payment of its deposit or any premium charge, the claim shall
not be deemed to have accrued until the discovery by the Board of the
fact that the certified statement is false or fraudulent.
(f) Penalty for failure to comply with section; court determination of
failure; remedies not exclusive
Should any Federal credit union fail to make any report of condition
under subsection (a) of this section or to file any certified statement
required to be filed under subsection (b) of this section or to pay its
deposit or any premium charge for insurance required to be paid under
any provision of this subchapter, and should the credit union fail to
correct such failure within thirty days after written notice has been
given by the Board to an officer of the credit union, citing this
subsection and stating that the credit union has failed to make any such
report or file any such statement or pay any such deposit or premium
charges as required by law, all the rights, privileges, and franchises
of the credit union granted to it under subchapter I of this chapter
shall be thereby forfeited. Whether or not the penalty provided in this
subsection has been incurred shall be determined and adjudged by any
court of the United States of competent jurisdiction in a suit brought
for that purpose in the district or territory in which the principal
office of such credit union is located, under direction of and by the
Board in its own name, before the credit union shall be declared
dissolved. The remedies provided in this subsection and in subsections
(d) and (e) of this section shall not be construed as limiting any other
remedies against any insured credit union but shall be in addition
thereto.
(g) Records
Each insured credit union shall maintain such records as will
readily permit verification of the correctness of its reports of
condition, certified statements, and deposit and premium charges for
insurance. However, no insured credit union shall be required to retain
such records for such purpose for a period in excess of five years from
the date of the making of any such report, the filing of any such
statement, or the payment of any deposit or adjustment thereof or any
premium charge, except that when there is a dispute between the insured
credit union and the Board over the amount of any deposit or adjustment
thereof or any premium charge for insurance the credit union shall
retain such records until final determination of the issue.
(h) Definitions
For purposes of this section, the following definitions shall apply:
(1) Available assets ratio
The term ``available assets ratio'', when applied to the Fund,
means the ratio of--
(A) the amount determined by subtracting--
(i) direct liabilities of the Fund and contingent
liabilities for which no provision for losses has been made,
from
(ii) the sum of cash and the market value of
unencumbered investments authorized under section 1783(c) of
this title, to
(B) the aggregate amount of the insured shares in all
insured credit unions.
(2) Equity ratio
The term ``equity ratio'', when applied to the Fund, means the
ratio of--
(A) the amount of Fund capitalization, including insured
credit unions' 1 percent capitalization deposits and the
retained earnings balance of the Fund (net of direct liabilities
of the Fund and contingent liabilities for which no provision
for losses has been made); to
(B) the aggregate amount of the insured shares in all
insured credit unions.
(3) Insured shares
The term ``insured shares'', when applied to this section,
includes share, share draft, share certificate, and other similar
accounts as determined by the Board, but does not include amounts
exceeding the insured account limit set forth in section 1787(c)(1)
\1\ of this title.
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\1\ See References in Text note below.
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(4) Normal operating level
The term ``normal operating level'', when applied to the Fund,
means an equity ratio specified by the Board, which shall be not
less than 1.2 percent and not more than 1.5 percent.
(June 26, 1934, ch. 750, title II, Sec. 202, as added Pub. L. 91-468,
Sec. 1(3), Oct. 19, 1970, 84 Stat. 995; amended Pub. L. 93-383, title
VII, Sec. 727, Aug. 22, 1974, 88 Stat. 720; Pub. L. 95-630, title V,
Secs. 502(b), 505, Nov. 10, 1978, 92 Stat. 3681, 3682; Pub. L. 97-320,
title V, Secs. 528, 529, Oct. 15, 1982, 96 Stat. 1535; Pub. L. 97-457,
Sec. 29, Jan. 12, 1983, 96 Stat. 2510; Pub. L. 98-369, div. B, title
VIII, Secs. 2802-2810, July 18, 1984, 98 Stat. 1204, 1205; Pub. L. 101-
73, title IX, Secs. 911(f), 919, 931(b), Aug. 9, 1989, 103 Stat. 482,
488, 493; Pub. L. 102-242, title III, Sec. 313(b), Dec. 19, 1991, 105
Stat. 2369; Pub. L. 102-550, title XVI, Sec. 1605(b)(3), Oct. 28, 1992,
106 Stat. 4087; Pub. L. 105-219, title II, Sec. 201, title III,
Sec. 302(a), Aug. 7, 1998, 112 Stat. 918, 931.)
References in Text
Section 1787(c)(1) of this title, referred to in subsec. (h)(3), was
redesignated section 1787(k)(1) of this title by Pub. L. 101-73, title
XII, Sec. 1217(a)(3), Aug. 9, 1989, 103 Stat. 530.
Amendments
1998--Subsec. (a)(6). Pub. L. 105-219, Sec. 201, substituted
``subparagraph (A) or (D)'' for ``subparagraph (A)'' in subpar. (B) and
added subpars. (C) and (D).
Subsec. (b). Pub. L. 105-219, Sec. 302(a)(1), added subsec. (b) and
struck out former subsec. (b) which read as follows:
``(b)(1) For each insurance year, each insured credit union which
became insured prior to the beginning of that year shall file with the
Board, at such time as the Board prescribes, a certified statement
showing the total amount of insured shares in the credit union at the
close of the preceding insurance year and both the amount of its deposit
or adjustment thereof and the amount of the premium charge for insurance
due to the fund for that year, both as computed under subsection (c) of
this section.
``(2) The certified statements required to be filed with the Board
pursuant to this subsection shall be in such form and shall set forth
such supporting information as the Board shall require.
``(3) Each such statement shall be certified by the president of the
credit union, or by any officer of the credit union designated by its
board of directors, that to the best of his knowledge and belief that
statement is true, correct, and complete and in accordance with this
subchapter and regulations issued thereunder.''
Subsec. (c)(1)(A)(iii). Pub. L. 105-219, Sec. 302(a)(2), added cl.
(iii) and struck out former cl. (iii) which read as follows: ``The
amount of each insured credit union's deposit shall be adjusted
annually, in accordance with procedures determined by the Board, to
reflect changes in the credit union's insured shares.''
Subsec. (c)(2), (3). Pub. L. 105-219, Sec. 302(a)(3), added pars.
(2) and (3) and struck out former pars. (2) and (3) which read as
follows:
``(2) Each insured credit union, at such time as the Board
prescribes, shall pay to the fund a premium charge for insurance equal
to one-twelfth of 1 per centum of the total amount of the insured shares
in such credit union at the close of the preceding insurance year.
``(3) When, at the end of a given insurance year, any loans to the
fund from the Federal Government and the interest thereon have been
repaid and the equity of the fund exceeds the normal operating level,
the Board shall effect for that insurance year a pro rata distribution
to insured credit unions of an amount sufficient to reduce the equity in
the fund to its normal operating level.''
Subsec. (c)(4). Pub. L. 105-219, Sec. 302(a)(4), added par. (4).
Subsec. (h). Pub. L. 105-219, Sec. 302(a)(5), added subsec. (h) and
struck out former subsec. (h) which read as follows: ``For the purposes
of this section--
``(1) the term `insurance year' means the period beginning on
January 1 and ending on the following December 31, both dates
inclusive, unless otherwise prescribed by the Board;
``(2) the term `normal operating level', when applied to the
fund, means an amount equal to 1.3 per centum of the aggregate
amount of the insured shares in all insured credit unions, or such
lower level as the Board may determine; and
``(3) the term `insured shares' when applied to this section
includes share, share draft, share certificate and other similar
accounts as determined by the Board, but does not include amounts in
excess of the insured account limit set forth in section 1787(c)(1)
of this title.''
1992--Subsec. (d)(2). Pub. L. 102-550, in subpar. (C), substituted
``insured credit union'' for ``insured depository institution'', struck
out ``or'' after ``subsection (b)(1) of this section'', and substituted
``Board'' for ``Corporation'' and ``assets of the credit union'' for
``assets of the institution'', in subpar. (D), substituted ``Board'' for
``Corporation'', and in subpar. (E), substituted ``insured credit
union'' for ``insured depository institution'' and ``if the credit
union'' for ``if the institution''.
1991--Subsec. (d)(2). Pub. L. 102-242 amended par. (2) generally.
Prior to amendment, par. (2) read as follows: ``Any insured credit union
which willfully fails or refuses to file any certified statement or to
pay its deposit or any premium charge for insurance required under this
subchapter shall be subject to a penalty of not more than $100 for each
day that such violation continues, which penalty the Board may recover
for its use. The provisions of this paragraph shall not be applicable in
any case in which the refusal to pay its deposit or the premium charge
for insurance is due to a dispute between the insured credit union and
the Board over the amount of its deposit or the premium charge due to
the fund if the credit union deposits security satisfactory to the Board
for payment of its deposit or the premium charge upon final
determination of the issue.''
1989--Subsec. (a)(3). Pub. L. 101-73, Sec. 911(f), inserted
provisions relating to penalties and agency hearings and struck out at
end: ``Every insured credit union which willfully fails to make or
publish any such report within ten days shall be subject to a penalty of
not more than $100 for each day of such failure, recoverable by the
Board for its use.''
Subsec. (a)(6). Pub. L. 101-73, Sec. 919, added par. (6).
Subsec. (a)(7). Pub. L. 101-73, Sec. 931(b), added par. (7).
1984--Subsec. (b). Pub. L. 98-369, Sec. 2802, in amending subsec.
(b) generally, revised existing provisions into numbered pars. (1) to
(3) and in par. (1) substituted ``For each insurance year, each insured
credit union which became insured prior to the beginning of that year
shall file with the Board, at such time as the Board prescribes, a
certified statement showing the total amount of insured shares in the
credit union at the close of the preceding insurance year and both the
amount of its deposit or adjustment thereof and the amount of the
premium charge for insurance due to the fund for that year, both as
computed under subsection (c) of this section.'' for ``On or before
January 31 of each insurance year, each insured credit union which
became insured prior to the beginning of that year shall file with the
Board a certified statement showing the total amount of the member
accounts in the credit union at the close of the preceding insurance
year and the amount of the premium charge for insurance due to the fund
for that year, as computed under subsection (c) of this section.''
Subsec. (c)(1). Pub. L. 98-369, Sec. 2803(6), added par. (1). Former
par. (1) redesignated (2).
Subsec. (c)(2). Pub. L. 98-369, Sec. 2803(3)-(5), substituted ``Each
insured credit union, at such time as the Board prescribes'' for
``Except as provided in paragraph (2) of this subsection, each insured
credit union, on or before January 31 of each insurance year'' and
``insured shares'' for ``member accounts''.
Pub. L. 98-369, Sec. 2803(1), (2), redesignated par. (1) as (2).
Former par. (2), which related to payment of a premium charge for
insurance by each credit union in existence prior to Oct. 19, 1970, and
insured under this subchapter after January 1 of any insurance, was
struck out.
Subsec. (c)(3). Pub. L. 98-369, Sec. 2804, amended par. (3)
generally. Prior to amendment, par. (3) read as follows: ``When any
loans to the fund from the Federal Government and the interest thereon
have been repaid and the amount in the fund equals or exceeds the normal
operating level, the Board may reduce the premium charge for insurance,
but not below the amount necessary, in its judgment, to maintain the
fund at the normal operating level. Any such reduction shall be
effective only so long as the amount in the fund equals or exceeds the
normal operating level and no loan to the fund from the Federal
Government is outstanding.''
Subsec. (c)(4). Pub. L. 98-369, Sec. 2805, struck out par. (4) which
provided that ``If in any year expenditures from the fund exceed the
income of the fund, the Board may require each insured credit union to
pay to the fund for such year, in addition to the regular premium charge
for insurance payable under paragraph (1), (2), or (3) of this
subsection, a special premium charge which shall not exceed an amount
equal to the amount of the regular premium charge''.
Subsec. (d)(1), (2). Pub. L. 98-369, Sec. 2806(a)(1), inserted ``its
deposit or'' wherever appearing.
Subsec. (d)(3). Pub. L. 98-369, Sec. 2806(a), inserted ``its deposit
or'' wherever appearing and substituted ``insured shares'' for ``member
accounts''.
Subsec. (e). Pub. L. 98-369, Sec. 2806(a)(1), (b)(1), (2), inserted
``its deposit or'' and ``deposit or'' wherever appearing.
Subsec. (f). Pub. L. 98-369, Sec. 2806(a)(1), (b)(3), inserted ``its
deposit or'' and ``deposit or''.
Subsec. (g). Pub. L. 98-369, Sec. 2807, inserted ``and deposit'' and
``deposit or adjustment thereof or any'' in two places.
Subsec. (h)(1). Pub. L. 98-369, Sec. 2808, inserted ``, unless
otherwise prescribed by the Board''.
Subsec. (h)(2). Pub. L. 98-369, Sec. 2809, in amending par. (2)
generally, substituted ``fund, means an amount equal to 1.3 per centum
of the aggregate amount of the insured shares in all insured credit
unions, or such lower level as the Board may determine'' for ``Fund,
means an amount equal to 1 per centum of the aggregate amount of the
member accounts in all insured credit unions''.
Subsec. (h)(3). Pub. L. 98-369, Sec. 2810, amended par. (3)
generally. Prior to amendment, par. (3) read as follows: ``the term
`members accounts' when applied to the premium charge for insurance of
accounts shall not include amounts received from other credit unions,
the accounts of which are federally insured or insured or guaranteed by
a fund established under State law or regulation for this purpose, in
excess of the insured account limit set forth in section 1787(c)(1) of
this title;''.
1983--Subsec. (c)(1). Pub. L. 97-457 substituted ``paragraph (2)''
for ``paragraphs (2) and (3)'' after ``except as provided in''.
1982--Subsec. (c)(3). Pub. L. 97-320, Sec. 529, redesignated par.
(4) as (3). Former (3), which set forth rules for computing the
insurance premiums due from credit unions chartered after Oct. 19, 1970,
that became insured in the insurance year of their charter, was struck
out.
Subsec. (c)(4), (5). Pub. L. 97-320, Sec. 529, redesignated par. (5)
as (4). Former par. (4) redesignated (3).
Subsec. (c)(6). Pub. L. 97-320, Sec. 529, struck out par. (6) which
set forth rules for payment of insurance rebates to insured credit
unions closed for liquidation because of insolvency or otherwise.
Subsec. (h)(3). Pub. L. 97-320, Sec. 528, substituted `` `members
accounts' '' for `` `member account' '', struck out ``federally
insured'' after ``received from other'', and inserted ``, the accounts
of which are federally insured or insured or guaranteed by a fund
established under State law or regulation for this purpose,'' after
``credit unions''.
1978--Subsec. (a). Pub. L. 95-630, Secs. 502(b), 505(a), substituted
``Board'' for ``Administrator'' wherever appearing; ``it'' for ``him''
and ``such officer's knowledge'' for ``his knowledge'' in par. (1);
``reports as it'' for ``reports as he'' in par. (2); and ``it may
direct'' for ``he may direct'' and ``for its use'' for ``for his use''
in par. (3).
Subsecs. (b) to (g). Pub. L. 95-630, Sec. 502(b), substituted
``Board'' for ``Administrator'' wherever appearing, and ``its'' for
``his'' where appropriate.
Subsec. (h)(3). Pub. L. 95-630, Sec. 505(b), substituted ``The term
`member account' when'' for ``the term `members accounts' when'', struck
out ``of federally insured credit unions'' after ``of accounts'', and
inserted ``received from other federally insured credit unions'' after
``not include amounts''.
1974--Subsec. (h)(3). Pub. L. 93-383 added par. (3).
Effective Date of 1998 Amendment
Pub. L. 105-219, title III, Sec. 302(b), Aug. 7, 1998, 112 Stat.
934, provided that: ``This section [amending this section] and the
amendments made by this section shall become effective on January 1 of
the first calendar year beginning more than 180 days after the date of
enactment of this Act [Aug. 7, 1998].''
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-550 effective as if included in the Federal
Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102-242,
as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-550, set out as
a note under section 191 of this title.
Effective Date of 1989 Amendment
Amendment by section 911(f) of Pub. L. 101-73 applicable with
respect to reports filed or required to be filed after Aug. 9, 1989, see
section 911(i) of Pub. L. 101-73, set out as a note under section 161 of
this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-630 effective on expiration of 120 days
after Nov. 10, 1978, and transitional provisions, see section 509 of
Pub. L. 95-630, set out as a note under section 1752 of this title.
Section Referred to in Other Sections
This section is referred to in sections 461, 1783, 1786 of this
title.
