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Sec.

(7) The fact that the certificate is 301.13 Financial and statistical and other

made to enable such persons to avall reports.

themselves of the advantages of the Fed301.14 Accounting Manual for Federal

eral Credit Union Act, as amended. Credit Unions. 301.16 Credit Manual.

Copies of the form of organization cer301.16 Supervisory Committee Manual for

tificate may be obtained from the WashFederal Credit Unions.

ington Office of the Bureau or from any 301.17 Federal Credit Union Handbook. 301.18 Petitions.

Regional Office. 301.19 Retirement benefits for employees of

(b) The proposed organization cerFederal credit unions.

tificates shall be submitted to the Re301.20 Surety bond coverage for Federal gional Representative together with a credit unions.

check or money order payable to the 301.21 Payment or amortization of loans.

Bureau of Federal Credit Unions in the 301.22 Selling checks and money orders.

amount of $25.00 in payment of the in301.23 Cashing checks and money orders.

vestigation fee of $20.00 and charter fee 301.24 Refund of interest. 301.25 Insured loans to student members

of $5.00. The Regional Representative in eligible higher education or

will investigate and make recommendavocation institutions.

ions as to whether the proposed organi301.26 Purchase of accounting services. zation certificate conforms to the Act; 301.27 Participation in accounting service as to the general character and fitness of center.

the subscribers thereto; and as to the 301.28 Joint operations and activities.

economic advisability of establishing the AUTHORITY: The provisions of this part proposed Federal credit union. The re301 issued under sec. 21, 73 Stat. 635, 12 U.S.C. port and recommendation of the Re1766; $ 301.21 issued under sec. 8(5), 73 Stat.

gional Representative shall be forwarded 630; 12 U.S.C. 1757(5); $$ 301.22 and 301.23

to the Bureau in Washington, D.C. The Issued under sec. 8(12), 73 Stat. 631; 12 U.S.C. 1757(12); $ 301.24 issued under secs. 14, 21,

Director shall consider the proposed or 73 Stat. 632, 635; 12 U.S.C. 1761b, 1766;

ganization certificate and the recommen$ 301.25 issued under secs. 434, 16, 79 Stat.

dations of the Regional Representative 1247, 1048; 20 U.S.C. 1084, 994.

and shall approve or disapprove the proSOURCE: The provisions of this Part 301

posed organization certificate. The orappear at 25 F.R. 5286, June 14, 1960, unless ganization certificate, if approved, shall otherwise noted.

be the charter of the Federal credit un8 301.1 Organization of Federal credit

ion. If the organization certificate is unions.

disapproved, the incorporators shall be

notified of the basis for such action and (a) Persons desiring to form a Fed

the charter fee of $5.00 shall be returned eral credit union shall submit, in dupli

to them. Under no circumstances shall cate, on forms prescribed by the Bureau,

the investigation fee of $20.00 be rea proposed organization certificate

turned. (Form FCU 503B). The certificate shall be subscribed to before an officer com

8 301.3 Standard form of bylaws. petent to administer oaths by not less

(a) Proposed bylaws, in form and conthan 7 natural persons who have a com- tent approved by the Director, shall be mon bond of occupation, or association, submitted by the incorporators to the or are within a well-defined neighbor- Director for his approval at the time of hood, community, or rural district, and

submitting an organization certificate to shall specifically state:

the Regional Representative. (1) The proposed name of the asso- (b) Specimen copies of the standard ciation.

form of bylaws (FCU 503-C) may be ob(2) The location of the proposed Fed- tained from the Regional or Washington eral credit union and the territory in Offices of the Bureau. which it will operate.

$ 301.4 Amendment (3) The names and addresses of the

of bylaws and

charters. subscribers to the certificate and the number of shares subscribed by each. Amendments to the bylaws of a Fed

(4) The par value of the shares, which eral credit union may be adopted and shall be $5 each.

amendments to the charter requested as (5) The proposed field of membership, provided in the bylaws. No amendment specified in detail.

of the bylaws or of the charter shall (6) The term of the existence of the become effective, however, until approved corporation, which may be perpetual. in writing by the Director.

8 301.5 Other applications.

tive as to the application shall be trans(a) Except as otherwise provided by

mitted to the Bureau in Washington, rule or regulation of the Bureau all ap- D.C. Notice of the action of the Direce plications, requests, and submittals re

tor shall be promptly transmitted to the garding Federal credit unions, for which

applicant together with a statement as no form of application has been pre

to the basis for the action. scribed by the Bureau, shall be in writ- $ 301.6 Fee for supervision. ing, signed by the applicant or his duly authorized agent, and shall contain &

(a) Extent of fee. (1) Not later than statement of the action requested, the

January 31 of each calendar year, each reasons and facts relied upon as the

Federal credit union shall pay to the basis for such requested action, and the

Bureau, for the preceding calendar year, applicant's interest in the matter. The

& supervision fee in accordance with the application, request, or submittal shall

graduated scale set forth in subparabe addressed to the Regional Represent

graph (2) of this paragraph on the basis ative or to the Bureau of Federal Credit

of assets as of December 31 of such preUnions in Washington, D.C. The appli

ceding year, but such fee shall in no cant shall furnish such other pertinent

event be less than $10.00: Provided, howinformation as may be required by the

eder, That no such annual fee shall be Director.

payable by such an organization with (b) Unless otherwise provided in these

respect to the year in which its charter regulations, all applications regarding

is issued or the year in which final disFederal credit union matters shall be in

tribution is made in liquidation of the vestigated and reviewed by the Regional credit union or the charter is otherwise Representative. The report and recom- canceled. mendations of the Regional Representa- (2) Scale of supervision fees:

Total assets

Marimum fee $500,000 or less.---

80 cents per $1,000. Over $500,000 and not over $1,000,000 --- $150, plus 25 cents per $1,000 in excess of $50041 Over $1,000,000 and not over $2,000,000.. $275, plus 20 cents per $1,000 in exons &

$1,000,000. Over $2,000,000 and not over $5,000,000.- $475, plus 15 cents per $1,000 in envas

$2,000,000. Over $5,000,000.

4925, plus 10 cents per $1,000 in exca

$5,000,000.

Provided, however, That no fee shall be Fee Certificate to be due to the Birma payable with respect to the last frac- of Federal Credit Unions in Washingt tional part of $1,000 of total assets.

D.C. Copies of the Supervision on (3) Definition of assets:

tificate form may be obtained from sp (1) The term, "assets," as used in this Regional Office. section shall mean all items properly (c) Checks in payment of supernen coming within the classification of asset fees. All checks in payment of stuur accounts as stated in the Accounting vision fees shall be made payable to take Manual for Federal Credit Unions, FCU- Bureau of Federal Credit Unions 544, as revised.

(d) Audit of supervision for an (H) The term, “total assets," as used tation and payment. Whenever the in this section shall mean the sum of all reau makes a regular or special assets.

nation of a Federal credit und (b) Supervision fee certificate. The employee of the Bureau making treasurer of each Federal credit union amination will audit the comen's shall certify as to the correctness of the and payment of annual Su** Supervision Fee Certificate, Form FCU- fee(s) for the years which have been 511 Rev. He shall send, not later than since the last previous audit. Si January 31 of each year, the original ployee shall adjust any errors out Supervision Fee Certificate and as many tation and the Federal credit 1 copies as the Bureau may request, to- deliver to such employee a che vedere gether with a check in payment of the to the Bureau of Federal (1de supervision fee stated on the Supervision to cover the amount of any A

ment of the supervision fee(s). The $ 301.8 Fee for examination of Federal decision of the employee of the Bureau credit unions in liquidation. as to the amount due shall be final and

Federal credit unions in liquidation conclusive: Provided, That the Federal

may be examined prior to or following credit union may make the supple

completion of liquidation. A fee asmentary payment subject to the results

sessed in accordance with the most recent of an appeal from the employee's deci

schedule of examination fees prescribed sion to the Regional Representative:

by the Director as provided in 301.7 Provided further, That the Federal

shall be paid for each such examination. credit union shall file such appeal within 30 days from the date of the employee's $ 301.9 Loans by Federal credit unions decision. If the audit discloses that an

to other credit unions. overpayment has been made, the em On authorization of its board of diployee of the Bureau is authorized to rectors, or a duly appointed executive advise and assist the Federal credit committee, a Federal credit union may union to prepare and file a request for invest its funds in loans to other Federal a refund of the amount of overpayment. credit unions or to State chartered credit Such request should be addressed to the unions in the total amount not exceeding Regional Representative.

25 percent of its paid-in and unim$ 301.7 Fee for examination.

paired capital and surplus. The terms

of such loans shall not exceed one year (a) Each Federal credit union shall and the rate of interest shall not exceed pay the Bureau a fee for each examina 6 percent per annum. Prior to making tion in accordance with the schedule of the loan, the Federal credit union shall fees fixed from time to time by the require the borrowing credit union to Director.

furnish the following: (b) In establishing such fees, the Di (a) A current financial and statistica! rector shall consider the anticipated ag report; gregate cost of the examination program

(b) A copy of the latest supervisory including supervision, salaries, travel and committee audit report; all other items which affect the cost of (C) A certified copy of the resolution the examination program.

of the board of directors or the executive (c) The fee for examinations of Fed committee authorizing such borrowing; eral credit unions with assets of less than

and $25,000 shall not exceed 50 cents per

(d) A certificate from the secretary of hundred dollars of assets as of the effec

the credit union that the persons negotive date of the examination. The Di tiating the loan and executing the note rector may establish a minimum fee for are officers of the credit union and are examination which shall not exceed authorized to act in its behalf, and that $25.00. The Director may wajve the fee

such borrowing does not exceed the for an examination within twelve months

maximum borrowing power of the borafter the date a charter is approved if

rowing credit union. the payment would, in the opinion of S301.10 Establishment of cash funds the Director, cause a hardship.

for making change. (d) Each Federal credit union shall The board of directors of a Federal be notified at least 30 days prior to the credit union may establish a permanent effective date of any schedule of fees cash fund in an amount not to exceed fixed pursuant to this section. Upon re $500 for the purpose of making change ceipt of such notification interested per and cashing checks. On all cash funds sons may submit written data, views, or established in excess of $500, except temarguments for consideration by the Di porary funds which shall not be retained rector, and the Director may, after con

longer than 3 banking days, the board sideration, make such revisions in the

of directors shall obtain prior written proposed schedule or such change in the

permission of the Regional Representaeffective date as he deems appropriate.

tire. Each Federal credit union shall be noti- $ 301.11

Election report. fied of such revision or change rat less Each operating Federal credit union than 15 days prior to the final effective shall file annually with the Regiona. date.

Representatire, within 10 days after the

election or appointment of officials, a report setting forth the names and addresses of its officials. Copies of the standard form of report prescribed by the Bureau (Form FCU-2) may be obtained from the Regional Representative or from the Bureau in Washington, D.C. $ 301.12 Supervisory committee audits.

The minimum audits to be performed by the supervisory committee of every Federal credit union each calendar year shall be one comprehensive annual audit and three quarterly audits. Reports of such audits shall be promptly made to the board of directors of the Federal credit union on Form FCU-701 for the comprehensive annual audit and on Form FCU-702 for the quarterly audit. A copy of each comprehensive annual audit report shall be filed by the supervisory committee with the Regional Representative no later than 15 days after completion of the annual audit. [27 F.R. 6980, July 24, 1962) $ 301.13 Financial and statistical and

other reports. (a) Each operating Federal credit union shall file in the Regional Office on or before January 15 of each year an annual Financial and Statistical report on Form FCU-521 as of the previous December 31. Form FCU-521 is furnished to all Federal credit unions by the Bureau, and copies may be obtained from any Regional Office.

(b) When it is deemed necessary or desirable and upon written notice from the Director, Federal credit unions shall file, in accordance with instructions contained in such notice as to time and place, such Financial and Statistical or other reports as of such date or dates as shall be prescribed in such notice.

(c) When it is deemed necessary because of the condition of the Federal credit union and upon written notice from the Director or Regional Representative, the Federal credit union shall file, in accordance with the instructions contained in such notice as to time and place, Financial and Statistical reports including reports on Form FCU-109, as of such date or dates as shall be prescribed in such notice. 8 301.14 Accounting Manual for Fed

eral Credit Unions. The Bureau has promulgated for use by Federal credit unions the Accounting

Manual for Federal Credit Unions (Form FCU-544). A copy of this manual is furnished to each Federal credit union at the time the approved organization certificate is delivered to the incorporators by the Bureau. This manual specifies the type of record to be maintained and the standard accounting forms to be used by Federal credit unions. A Federal credit union may develop a substitute for any of the standard accounting forms and place it in use without advance approval of the Bureau: Provided, It meets the applicable criteria set forth in the Accounting Manual. (30 F.R. 9094, July 21, 1965) $ 301.15 Credit Manual.

The Bureau has promulgated a manual of instructions for credit committees, loan officers, and other officials and employees of Federal credit unions (Form FCU-548). A copy of this manual is furnished to each Federal credit union at the time the approved organization certificate is delivered to the incorporators by the Bureau. § 301.16 Supervisory Committee Man.

ual for Federal Credit Unions. The Bureau has promulgated a manual of procedure for supervisory committees of Federal credit unions (Form FCU-545). A copy of this manual is furnished to each Federal credit union at the time the approved organization certificate is delivered to the incorporators by the Bureau. $ 301.17 Federal Credit Union Hand

book. The Bureau has promulgated a manual of instructions for directors and officers of Federal credit unions (Form FCU-543). A copy of this handbook is furnished to each Federal credit union at the time the approved organization certificate is delivered to the incorporators by the Bureau. $ 301.18 Petitions.

Any interested person may petition the Director for the issuance, amendment, or repeal of any regulation by submitting such petition in writing together with a complete and concise statement of the petitioner's interest in the subject matter and the reasons why the petition should be granted. Such petition shall be submitted to the Bureau in Washington, D.C.

8 301.19 Retirement benefits for em (e) The schedule of coverage set forth

ployees of Federal credit unions. in paragraph (f) of this section shall not Federal credit unions may make pro

be deemed to cover cash funds of $1,000 vision for reasonable retirement benefits

or more. In cases where the cash fund for employees and for officers who are

(either temporary or permanent) is compensated in conformance with the

$1,000 or more, additional coverage to Act and the bylaws, but no Federal credit

the full extent of the change fund shall union shall undertake to administer its

be required. own retirement plan.

(f) The following schedule shall be

deemed as the minimum requirements & 301.20 Surety bond coverage for Fed

only: eral credit unions.

Minimus

Assets: (a) The board of directors of each

coverage

$0,000 to $5,000.--. Federal credit union shall at least semi

$1,000 $5,001 to $10,000.

2,000 annually, carefully review the bond coy

$10,001 to $20,000erage in force in order to ascertain its

820,001 to $30,000..

6,008 adequacy in relation to the exposure and $30,001 to $40,000.

8,000 to the minimum requirements fixed from $40,001 to $50,000.

10,000 time to time by the Director.

$50,001 to $75,000.

15, 000 (b) All surety bonds must provide

$75,001 to $100,000.

20, 000 $100,001 to $150,000.

80,000 for faithful-performance-of-duty cover

$150,001 to $200,000.

40,000 age for any officer or employee while

$200,001 to $300,000.

50,000 performing any of the duties of the

$300,001 to $400,000.

60,000 treasurer as prescribed in the Act, the $400,001 to $500,000.

70,000 bylaws, or rules and regulations of $500,001 to $750,000

85,000 the Bureau.

$750,001 to $1,000,000.

100,000

Over $1,000,000.-(c) No form of surety bond shall be used except as is approved by the Direc

1 $100,000 plus 850,000 for each additional

million or fraction thereof of assets. tor. Credit Union Blanket Bond, Standard Form No. 23 of the Surety Associa It shall be the duty of the board of direction of America (revised to May 1950), tors of each Federal credit union to proplus Faithful Performance Rider (for vide proper protection to meet any ciruse with this form to broaden Insuring cumstance by obtaining adequate bond Clause (A), Revised to May 1950) shall (and insurance) coverage in excess of the be considered as the minimum coverage above minimum schedule. required and is hereby approved. Credit (g) The Director may require addiUnion Blanket Bond-BFCU Optional tional coverage for any Federal credit Form No. 576 plus Faithful Performance union when, in his opinion, the surety of Duty Rider–Form BFCU 576F is also

bonds in force are insuficient to provide approved. No other bond form may be

adequate surety coverage and it shall be used unless specifically approved in

the duty of the board of directors of the writing by the Director. No form of

Federal credit union to obtain such adsurety bond is approved for use by a

ditional coverage within thirty days after Federal credit union having its office

the date of written notice. outside of the continental United States unless by the terms of the bond or by an

§ 301.21 Payment or amortization of

loans. appropriate rider attached thereto the provisions of the bond are made appli (a) Within the limits of the Act and cable within the jurisdiction in which such further limits as may be imposed the office of such Federal credit union is by the board of directors pursuant to the located.

Act and the bylaws, the credit commit(d) All sureties writing Federal credit tee, or a duly appointed and authorized union bonds must hold a certificate of loan officer, of a Federal credit union, authority from the Secretary of the in arriving at the terms of payment or Treasury under the act of Congress ap amortization of an approved loan to & proved July 30, 1947 (6 U.S.C., secs. member, shall take into account, among 6-13) as an acceptable surety on Federal other factors deemed relevant, the source bonds in the State or jurisdiction of funds and the regularity and freconcerned.

quency of receipt of funds which the

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