Considerations for waiver or enforcement of restrictions
In granting or withholding approval or consent under subsection (b) of this section, the Board shall consider—
the history, financial condition, and management policies of the credit union;
the adequacy of the credit union’s reserves;
the economic advisability of the transaction;
the general character and fitness of the credit union’s management;
the convenience and needs of the members to be served by the credit union; and
whether the credit union is a cooperative association organized for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes.
Security standards; reports; penalty
The Board shall promulgate rules establishing minimum standards with which each insured credit union must comply with respect to the installation, maintenance, and operation of security devices and procedures, reasonable in cost, to discourage robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons who commit such acts.
The rules shall establish the time limits within which insured credit unions shall comply with the standards and shall require the submission of periodic reports with respect to the installation, maintenance, and operation of security devices and procedures.
An insured credit union which violates a rule promulgated pursuant to this subsection shall be subject to a civil penalty which shall not exceed $100 for each day of the violation.
Share draft accounts; maintenance, loans, etc.
Every insured credit union is authorized to maintain, and make loans with respect to, share draft accounts in accordance with rules and regulations prescribed by the Board. Except as provided in paragraph (2), an insured credit union may pay dividends on share draft accounts and may permit the owners of such share draft accounts to make withdrawals by negotiable or transferable instruments or other orders for the purpose of making transfers to third parties.
Paragraph (1) shall apply only with respect to share draft accounts in which the entire beneficial interest is held by one or more individuals or members or by an organization which is operated primarily for religious, philanthropic, charitable, educational, or other similar purposes and which is not operated for profit, and with respect to deposits of public funds by an officer, employee, or agent of the United States, any State, county, municipality, or political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, any territory or possession of the United States, or any political subdivision thereof.
If the applicable rate prescribed in this subsection exceeds the rate an insured credit union would be permitted to charge in the absence of this subsection, such credit union may, notwithstanding any State constitution or statute which is hereby preempted for the purposes of this subsection, take, receive, reserve, and charge on any loan, interest at a rate of not more than 1 per centum in excess of the discount rate on ninety-day commercial paper in effect at the Federal Reserve bank in the Federal Reserve district where such insured credit union is located or at the rate allowed by the laws of the State, territory, or district where such credit union is located, whichever may be greater.
If the rate prescribed in paragraph (1) exceeds the rate such credit union would be permitted to charge in the absence of this subsection, and such State fixed rate is thereby preempted by the rate described in paragraph (1), the taking, receiving, reserving, or charging a greater rate than is allowed by paragraph (1), when knowingly done, shall be deemed a forfeiture of the entire interest which the loan carries with it, or which has been agreed to be paid thereon. If such greater rate of interest has been paid, the person who paid it may recover, in a civil action commenced in a court of appropriate jurisdiction not later than two years after the date of such payment, an amount equal to twice the amount of interest paid from the credit union taking or receiving such interest.
Notwithstanding any other provision of law, the Board may authorize a merger or consolidation of an insured credit union which is insolvent or is in danger of insolvency with any other insured credit union or may authorize an insured credit union to purchase any of the assets of, or assume any of the liabilities of, any other insured credit union which is insolvent or in danger of insolvency if the Board is satisfied that—
an emergency requiring expeditious action exists with respect to such other insured credit union;
other alternatives are not reasonably available; and
the public interest would best be served by approval of such merger, consolidation, purchase, or assumption.
[June 26, 1934, ch. 750], title II, § 205, as added [Pub. L. 91–468, § 1(3)], Oct. 19, 1970, [84 Stat. 1002]; amended [Pub. L. 95–630, title V, § 502(b)], Nov. 10, 1978, [92 Stat. 3681]; [Pub. L. 96–221, title III, § 305(d)], title V, § 523, Mar. 31, 1980, [94 Stat. 147], 166; [Pub. L. 97–320, title I, § 131], 141(a)(8), title VII, § 706(b), Oct. 15, 1982, [96 Stat. 1486], 1489, 1540; [Pub. L. 100–86, title V, § 509(a)], Aug. 10, 1987, [101 Stat. 635]; [Pub. L. 101–73, title IX, § 910(b)], Aug. 9, 1989, [103 Stat. 478]; [Pub. L. 103–322, title XXXII, § 320606], Sept. 13, 1994, [108 Stat. 2119]; [Pub. L. 105–219, title II, § 202], Aug. 7, 1998, [112 Stat. 919]; [Pub. L. 109–173, § 2(d)(3)], Feb. 15, 2006, [119 Stat. 3604]; [Pub. L. 109–351, title VI, § 607(b)], Oct. 13, 2006, [120 Stat. 1982]; [Pub. L. 111–203, title III, § 362(2)], July 21, 2010, [124 Stat. 1549].)