§ 3051. — Nonprofit corporation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3051]
TITLE 12--BANKS AND BANKING
CHAPTER 31--NATIONAL CONSUMER COOPERATIVE BANK
SUBCHAPTER II--OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL ASSISTANCE
Sec. 3051. Nonprofit corporation
(a) Office of Self-Help Development and Technical Assistance abolished;
transfer of assets, etc.
(1) Upon the incorporation of the nonprofit corporation described in
subsection (b) of this section, the Office of Self-Help Development and
Technical Assistance is hereby abolished.
(2)(A) If the nonprofit corporation described in subsection (b) of
this section agrees to accept the liabilities of the Office, the Bank,
notwithstanding any other provision of law, shall transfer all assets,
liabilities, and property of the Office to such nonprofit corporation on
the day on which such nonprofit corporation is incorporated.
(B) Such assets shall include all sums which are appropriated to the
Office by the Congress and all sums which are contained in the Account
established pursuant to section 3042 of this title. If any such sums are
appropriated after the date on which the transfer described in
subparagraph (A) occurs, the Bank shall promptly transfer such sums to
such nonprofit corporation.
(b) Establishment; Board of Directors; functions, etc.
(1) As soon as possible after August 13, 1981, the Board shall
establish a nonprofit corporation under the laws of the District of
Columbia and, notwithstanding the laws of the District of Columbia, name
the directors of such nonprofit corporation.
(2) Notwithstanding the laws of the District of Columbia, the Board
of Directors of such nonprofit corporation shall--
(A) select an executive director who shall be responsible for
the administration of such nonprofit corporation;
(B) set the compensation of such executive director and the
other employees of such nonprofit corporation;
(C) promulgate and publish the policies of such nonprofit
corporation and make such policies available at all times to
eligible cooperatives; and
(D) perform the functions specified in subparagraphs (A) and (C)
of paragraph (3).
(3) Such nonprofit corporation shall only perform--
(A) the functions which are authorized to be performed pursuant
to sections 3043 through 3048 of this title and section 3050 of this
title;
(B) such functions as are necessary to comply with the laws
under which it was incorporated in the District of Columbia; and
(C) such functions as are necessary to remain qualified as an
organization described in section 501(c)(3) of title 26.
(4) Notwithstanding any other provision of law--
(A) the Bank may provide administrative or staff support to such
nonprofit corporation; and
(B) any member of the Board of Directors of the Bank may serve
as a member of the Board of Directors of such nonprofit corporation.
(c) Treatment for tax purposes
(1) Notwithstanding any other provision of law, such nonprofit
corporation shall be deemed to be, and treated as, qualified as an
organization described in section 501(c)(3) of title 26 from the date on
which such nonprofit corporation is established under the laws of the
District of Columbia until the date on which the Internal Revenue
Service makes a final determination on the application which such
nonprofit corporation will submit to the Internal Revenue Service
seeking status as an organization qualifying under such section.
(2) When performed by such nonprofit corporation, the functions
described in subsection (b)(3)(A) of this section shall be deemed to be
performed for ``charitable purposes'' within the meaning of section
501(c)(3) of title 26.
(d) Contributions from the Bank
(1) The Board of Directors of the Bank may make contributions to the
nonprofit corporation in such amounts as the Board of Directors of the
Bank deems appropriate, except that--
(A) such contributions may be made only out of the Bank's
earnings, determined in accordance with generally accepted
accounting principles; and
(B) the Bank shall set aside amounts sufficient to satisfy its
obligations to the Secretary of the Treasury for payments of
principal and interest on class A notes and other debt before making
any contributions to such nonprofit corporation.
(2) During any period in which the nonprofit corporation described
in subsection (b) of this section is qualified as an organization
described in section 501(c)(3) of title 26, contributions made by the
Bank pursuant to paragraph (1) shall be treated as charitable
contributions within the meaning of section 170(c)(2) of title 26, and
may be deducted notwithstanding the provisions of section 170(b)(2) of
title 26.
(3) During any period in which the nonprofit corporation described
in subsection (b) of this section is qualified as an organization
described in section 501(c)(3) of title 26, contributions to such
nonprofit corporation by any person shall qualify as charitable
contributions, as defined in section 170(c) of title 26, for purposes of
the charitable contribution deduction provided for in section 170(a) of
title 26, and shall also qualify for the deductions for estate and gift
tax purposes provided for in sections 2055 and 2522 of title 26.
(e) Conflict of interest rules
Notwithstanding the laws of the District of Columbia, the Board of
Directors of such nonprofit corporation shall adopt and publish its own
conflict of interest rules which shall be no less stringent in effect
than the conflict of interest provisions adopted by the Board of
Directors of the Bank pursuant to section 3024 of this title.
(Pub. L. 95-351, title II, Sec. 211, as added Pub. L. 97-35, title III,
Sec. 395(a), Aug. 13, 1981, 95 Stat. 437; amended Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095.)
Amendments
1986--Subsecs. (b)(3)(C), (c), (d)(2), (3). Pub. L. 99-514
substituted ``Internal Revenue Code of 1986'' for ``Internal Revenue
Code of 1954'' wherever appearing, which for purposes of codification
was translated as ``title 26'' thus requiring no change in text.
