§ 3015. — Eligibility of cooperatives.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3015]
TITLE 12--BANKS AND BANKING
CHAPTER 31--NATIONAL CONSUMER COOPERATIVE BANK
SUBCHAPTER I--ESTABLISHMENT AND OPERATION
Sec. 3015. Eligibility of cooperatives
(a) General requirements
For the purpose of all subchapters of this chapter, subject to the
limitations of subsection (d) of this section, an eligible cooperative
is an organization chartered or operated on a cooperative, not-for-
profit basis for producing or furnishing goods, services or facilities,
primarily for the benefit of its members or voting stockholders who are
ultimate consumers of such goods, services, or facilities, or a legally
chartered entity primarily owned and controlled by any such organization
or organizations, if it--
(1) makes such goods, services or facilities directly or
indirectly available to its members or voting stockholders on a not-
for-profit basis;
(2) does not pay dividends on voting stock or membership capital
in excess of such percentage per annum as may be approved under the
bylaws of the Bank;
(3) provides that its net savings shall be allocated or
distributed to all members or patrons, in proportion to their
patronage, or shall be retained for the actual or potential
expansion of its services or the reduction of its charges to the
patrons, or for such other purposes as may be authorized by its
membership not inconsistent with its purposes;
(4) makes membership available on a voluntary basis, without any
social, political, racial, or religious discrimination and without
any discrimination on the basis of age, sex, or marital status, to
all persons who can make use of its services and are willing to
accept the responsibilities of membership, subject only to
limitations under applicable Federal or State laws or regulations;
(5) in the case of primary cooperative organizations restricts
its voting control to members or voting stockholders on a one vote
per person basis (except that this requirement shall not apply to
any housing cooperative in existence on March 21, 1980, which did
not meet such requirement on such date) and takes positive steps to
insure economic democracy and maximum participation by members of
the cooperative including the holding of annual meetings and, in the
case of organizations owned by groups of cooperatives, provides
positive protections to insure economic democracy; and
(6) is not a credit union, mutual savings bank, or mutual
savings and loan association.
(b) Primary producers
No organization shall be ineligible because it produces, markets, or
furnishes goods, services, or facilities on behalf of its members as
primary producers, unless the dollar volume of loans made by the Bank to
such organizations exceeds 10 per centum of the gross assets of the
Bank.
(c) ``Net savings'' defined
As used in this section, the term ``net savings'' means, for any
period, the borrower's gross receipts, less the operating and other
expenses deductible therefrom in accordance with generally accepted
accounting principles, including, without limitation, contributions to
allowable reserves, and after deducting the amounts of any dividends on
its capital stock or other membership capital payable during, or within
forty-five days after, the close of such period.
(d) Cooperatives eligible for other Federal credit assistance
An eligible cooperative which also has been determined to be
eligible for credit assistance from the Rural Electrification
Administration, the National Rural Utilities Cooperative Finance
Corporation, the Rural Telephone Bank, the Banks for Cooperatives or
other institutions of the Farm Credit System, or the Farmers Home
Administration may receive the assistance authorized by this chapter
only (1) if the Bank determines that a request for assistance from any
such source or sources has been rejected or denied solely because of the
unavailability of funds from such source or sources, or (2) by agreement
between the Bank and the agency or agencies involved.
(e) Credit unions eligible for technical assistance from Office of Self-
Help Development and Technical Assistance
Notwithstanding any other provision of this section, a credit union
serving predominantly low-income members (as defined by the
Administrator of the National Credit Union Administration) may receive
technical assistance under subchapter II of this chapter.
(Pub. L. 95-351, title I, Sec. 105, Aug. 20, 1978, 92 Stat. 506; Pub. L.
97-35, title III Sec. 394(e)(1), (f), Aug. 13, 1981, 95 Stat. 436, 437.)
References in Text
All subchapters of this chapter, referred to in subsec. (a), was in
the original ``all titles of this Act'', meaning titles I to III of Pub.
L. 95-351. Titles I and II constitute this chapter and title III amended
section 5315 of Title 5, Government Organization and Employees, and
sections 856, 867, and 868 of former Title 31, Money and Finance.
Amendments
1981--Subsec. (a). Pub. L. 97-35, Sec. 394(e)(1), substituted
``primarily owned'' for ``entirely owned''.
Subsec. (a)(5). Pub. L. 97-35, Sec. 394(f), inserted provisions
relating to exception for housing cooperatives in existence on Mar. 21,
1980.
Effective Date of 1981 Amendment
Section 394(e)(2) of Pub. L. 97-35 provided that: ``The amendment
made by paragraph (1) [amending this section] shall take effect on the
day after the Final Government Equity Redemption Date [Dec. 31, 1981].''
For definition of ``Final Government Equity Redemption Date'', see
section 396(a) of Pub. L. 97-35, set out as a note under section 3012 of
this title.
Section Referred to in Other Sections
This section is referred to in sections 3014, 3018 of this title.
