12 USC 1795d – Capital stock
(a) Opening of books; minimum subscription
As soon as practicable, the Board shall open books for subscriptions to the capital stock of the Facility. The minimum subscription shall be $50.
(b) Requirements
Terms Used In 12 USC 1795d
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Board: means the National Credit Union Administration Board. See 12 USC 1752
- Facility: means the National Credit Union Central Liquidity Facility. See 12 USC 1795a
- member: means a Regular or an Agent member of the Facility. See 12 USC 1795a
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- subscription: includes a mark when the person making the same intended it as such. See 1 USC 1
The capital stock of the Facility—
(1) shall be divided into shares having a par value of $50 each;
(2) shall be paid for with cash or with securities of the United States or any Agency thereof in accordance with requirements the Board may impose;
(3) shall share in dividend distributions at rates determined by the Board. However, rates on the required capital stock shall be without preference; and
(4) shall not be transferred or hypothecated except as provided for herein.
(c) Redemption of stock
When circumstances require that all or a portion of a member‘s stock be redeemed by the Facility, the Board shall pay an amount equal to what the member originally paid for the stock less any amount owed by the member to the Facility.
(d) Use of subscription amount
At least one-half of the payment for the subscription amount required for membership under section 1795c of this title shall be transferred to the Facility. The remainder may be held by the member on call of the Board and shall be invested in assets designated by the Board.
(e) Restriction on advances to credit unions
A credit union or credit union group that becomes a member of the Facility later than six months after the date the Board opens books for capital stock subscriptions, may not borrow or receive advances from the Facility without approval by the Board for a period of six months after becoming a member.