64 1 59 "(6) to receive from its members, from other 2 credit unions, from an officer, employee, or agent of 3 those nonmember units of Federal, Indian, Tribal, 4 5 6 7 8 State, or local governments and political subdivisions thereof enumerated in section 207 of this Act and in the manner so prescribed, from the Central Liquidity Facility, and from nonmembers in the case of lowincome members (as defined by the Board) funds for 9 credit deposit accounts and payments on (A) shares 10 which may be issued at varying dividend rates; (B) 11 share certificates which may be issued at varying divi IN dend rates and maturities; (C) share draft accounts authorized under section 205(f); and (D) membership shares; subject to such terms, rates, and conditions as may be established by the board of directors, within limitations prescribed by the Board.”. FAITHFUL PERFORMANCE SEC. 203. Section 112 of the Federal Credit Union Act (19 U.S.C. 1761a) is amended by striking out the third senWe fence and inserting in lieu thereof the following: "The board 21 shall elect from their number a financial officer who shall give adequate fidelity coverage in accordance with section 24 199 of this Act.”. 60 MEMBERSHIP OFFICER 2 SEC. 204. Section 113 of the Federal Credit Union Act 3 (12 U.S.C. 1761b) is amended by striking out “of the board 4 of directors" in paragraph (1) and inserting in lieu thereof "of 5 the credit union.". 6 7 POWERS OF THE BOARD OF DIRECTORS SEC. 205. Section 113 of the Federal Credit Union Act 8 (12 U.S.C. 1761b) is amended (1) by striking out paragraph (2) and inserting in lieu thereof the following: "(2) provide adequate fidelity coverage for officers and employees having custody of or handling funds ac cording to regulations issued by the Board;"; (2) by striking out paragraph (7) and inserting in lieu thereof the following: “(7) determine whether a membership share will be established, the maximum number of shares, share certificates, and share draft accounts and the classes of shares, share certificates, and share draft accounts;"; (5) by striking out paragraph (11) and inserting in lieu thereof the following: "(11) establish the par value of the membership share (if any) and the share;" and (6) by striking out paragraph (18) and inserting in lieu thereof the following: S 2181 IS 1 2 3 4 5 6 61 "(18) declare the dividend rate to be paid on shares, share certificates, share draft accounts, and membership shares pursuant to the terms and conditions of section 117;". NONPARTICIPATION IN THE CREDIT UNION SEC. 206. Section 118 of the Federal Credit Union Act 7 (12 U.S.C. 1764) is amended 8 9 10 11 12 13 14 (1) by striking out "subject to" in subsection (a) and inserting in lieu thereof "except as provided in"; and (2) by inserting "and enforce" after “adopt" in Subsection (b). CHANGE IN INSURANCE STATUS SEC. 207. Section 206(d)(2) of the Federal Credit Union 15 Act (12 U.S.C. 1786(d)(2)) is amended to read as follows: 16 "(2) No credit union shall convert from status as an in 17 sured credit union under this Act as provided under subsec18 tion (a)(2) of this section until the proposition for such conver19 sion has been approved by a majority of all the directors of 20 the credit union and by affirmative vote of a majority of the 21 members of the credit union who vote on the proposition. 22 Following approval by the directors, written notice of the 23 proposition and of the date set for the membership vote shall 24 be delivered in person to each member, or mailed to each 25 member at the address for such member appearing on the S 2181 IS 62 1 records of the credit union, not more than thirty nor less than 2 seven days prior to such date. The written notice of the prop3 osition shall in boldface type state that the issue will be de4 cided by a majority of the members who vote. The member5 ship shall be given the opportunity to vote by mail ballot. If 6 the proposition is approved by the membership, prompt and 7 reasonable notice of insurance conversion shall be given to all 8 members.". 9 10 11 12 TITLE III-BANKERS BANKS AMENDMENT TO SECTION 5136 OF THE REVISED STATUTES SEC. 301. The paragraph numbered "Seventh" of sec 13 tion 5136 of the Revised Statutes (12 U.S.C. 24 (Seventh)) is 14 amended by striking out "Provided further, That" and all 15 that follows through the end thereof and inserting in lieu 16 thereof the following: "Provided further, That notwithstand17 ing any other provision of this paragraph, the association 18 may purchase for its own account shares of stock of a bank or 19 a holding company which owns or controls such a bank if (1) 20 the stock of such bank or company is owned exclusively 21 (except to the extent directors' qualifying shares are required 22 by law) by depository institutions, and (2) such bank or com23 pany and all subsidiaries thereof are engaged exclusively in 24 providing services for depository institutions, their parent 25 holding companies, subsidiaries thereof, and the officers, di S 2181 IS 63 1 rectors, and employees of each. In no event shall the total 2 amount of stock held by the association in any bank or hold3 ing company described in the immediately preceding proviso 4 exceed at any time 10 per centum of the association's capital 5 stock and paid-in and unimpaired surplus and in no event 6 shall the purchase of such stock result in an association's 7 acquiring more than 5 per centum of any class of voting secu8 rities of such bank or company.". 9 10 11 AMENDMENT TO SECTION 5169 OF THE REVISED STATUTES SEC. 302. Section 5169(b)(1) of the Revised Statutes 12 (12 U.S.C. 27(b)(1)) is amended to read as follows: 13 "(b)(1) The Comptroller of the Currency may also issue 14 a certificate of authority to commence the business of banking 15 pursuant to this section to a national banking association if 16 (A) such association or its parent holding company is owned 17 exclusively (except to the extent directors' qualifying shares 18 are required by law) by depository institutions, and (B) the 19 association, its parent holding company, and all subsidiaries 20 thereof are organized to engage exclusively in providing serv21 ices for depository institutions, their parent holding compa22 nies, subsidiaries thereof, and the officers, directors, and em23 ployees of each.". S 2181 IS |