National Credit Union Bank Act

Summary

National Credit Union Bank Act - Declares the Congressional finding that there exists an urgent need for consumer credit at reasonable rates. Cites the contribution made by credit unions in alleviating this situation. States that the extent of such relief would be enlarged by establishing a National Credit Union Bank empowered to make temporary loans for liquidity purposes to its shareholders, discount notes of its shareholders, provide a national service of interlending for credit unions, sell debt securities in the open marked, aid in the rehabilitation and stabilization of credit unions, aid in the orderly liquidation of credit unions when necessary aid in the strengthening and development of credit unions serving low-income persons, and to cooperate with and assist credit unions and related State regulatory bodies for the purpose of improving the general welfare of the people through credit unions. Creates a body corporate to be known as the "National Credit Union Bank" which shall exist perpetually until dissolved by Act of Congress and which shall not be an agency of the United States Government. Asserts that the principal office of the Bank shall be located in the District of Columbia but that the Bank may establish such district and branch offices throughout the United States as it deems appropirate. Authorizes the Secretary of the Treasury to advance no more than $500,000 to be utilized for the initial organizational and operating expenses of the Bank. Directs that this advance shall be at a rate of interest to be determined by the Secretary of the Treasury and shall be repaid within one year from the date of any such advance. Provides that, upon the enactment of this Act, the Board of Directors of the Bank shall open books for subscription to the capital stock of the Bank. Declares that the capital stock shall be divided into shares of par values $100 each. Directs that the minumum capital stock shall be issued at par and stock issued thereafter shall be issued at such price not less than par as may be fixed by the Board of Directors. Provides that each credit union which is chartered after enactment of this Act and which is accepted for membership in the Bank within one year from the date it is chartered shall pay $25 in cash to be credited to its purchase of stock in the Bank. Asserts that at the expiration of one year from the date of its charges, the newly organized credit union shall subscribe for stock in the Bank in an amount equal to 1 percent of its total assets on this date. Provides that every credit union insured by the Administrator of the National Credit Union Administration and which is not prohibited by the laws under which it is organized to become a shareholder in the Bank shall apply for membership in the Bank within three months of the effective date of this Act. Directs that any other State credit union may apply for membership in the Bank. Provides that the Bank shall act on membership applications submitted by credit unions eligible for membership and, upon approval, shall require such applicants to subscribe to capital stock of the Bank in an amount equal to 1 percent of the subscriber's total assets. Grants the bank the necessary powers and authority in order to carry out its operations. Provides for auditing of the Bank's records by the General Accounting Office. Provides that the Bank, its property, its franchise, capital, reserves, surplus, security holdings, and other funds, and its income shall be exempt from all taxation now or hereafter imposed by the United States or by any State or local taxing authority, except that: (1) any real property and tangible personal property of the Bank shall be subject to Federal, State, and local taxation to the same extent according to its value as other such property is taxed; and (2) any and all obligations issued by the Bank shall be subjected both as to principal and interest to Federal, State, and local taxation to the same extent as the obligations of private corporations are taxed.

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1 official file

• Introduced in Senate

  summary · EN · 16 January 1973

  Open at official source

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