US (United States) Code. Title 12. Chapter 31: National Consumer Cooperative Bank

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Banks and banking

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12 USC CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

.

-HEAD-

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

-MISC1-

Sec.

3001. Congressional statement of findings and purpose.

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

3011. Creation and charter; principal office; venue; purposes.

3012. General corporate powers.

3013. Board of Directors.

(a) Composition; term of office; removal by

President.

(b) Appointment by President; election by

stockholders.

(c) Resignations; continuances; completion of term;

committee representation.

(d) Elections; nominations by cooperative classes;

vacancies filled; representation requirements.

(e) Terms; officer of Bank not to serve as director;

notice requirements of Bank and voting

shareholders.

(f) Annual election of chairman and vice chairman and

selection of secretary; eligibility;

establishment of Bank policies and direction of

management.

(g) Conduct of meetings; rules governing.

(h) Compensation and expenses.

3014. Capitalization.

(a) Subscriptions for capital; authorization of

appropriations.

(b) Classes of stock; general requirements respecting

rights, powers, privileges, and preferences.

(c) Class A notes; interest payments; redemption,

etc.

(d) Class B stock; ownership requirements, etc.

(e) Class C stock; purchase, dividends, etc.

(f) Nonvoting stock of other classifications and

priorities; issuance, etc.

(g) Voting requirements of bylaws.

(h) Acceptance by Bank of nonreturnable capital

contributions.

(i) Patronage refunds.

3015. Eligibility of cooperatives.

(a) General requirements.

(b) Primary producers.

(c) ''Net savings'' defined.

(d) Cooperatives eligible for other Federal credit

assistance.

(e) Credit unions eligible for technical assistance

from Office of Self-Help Development and

Technical Assistance.

3016. Annual meetings; notice, agenda, etc.

3017. Bonds, debentures, notes and other evidences of indebtedness.

(a) Authorization for public or private sale; time of

issuance, interest rates, and terms and

conditions; outstanding amount.

(b) Purchase and sale by Bank; methods of sale and

delivery.

(c) Obligations as not guaranteed by United States

and not to constitute a debt or obligation of

United States.

3017a. Class A notes as paid-in capital of the Bank.

3018. Loans.

(a) General requirements for loans and commitments

for loans; limitations; allocation of

assistance for low-income persons; criteria and

factors for making loans, etc.; publication.

(b) Repayment requirements; criteria for terms,

rates, and charges; advancement of loan

proceeds.

(c) Guarantees by Bank; requirements; charges.

(d) Assignment of guaranteed loans; contestability of

guarantee; criteria for purchase by Bank of

guaranteed loan in lieu of requiring service by

lender.

(e) Aggregate amount of commitments to make or

guarantee loans.

3019. Taxation by State, county, etc., taxing authority; Federal

tax status.

3020. Quarters and space for principal and other offices.

3021. Annual report to Congress; contents.

3022. Authorization of additional appropriations; restrictions on

use.

3023. Appeal procedures applicable upon denial or restriction of

application for assistance.

3024. Conflict of interest rules; adoption and publication;

requirements.

3025. Examination and audit.

3026. Acceleration of the Final Government Equity Redemption Date.

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

3041. Establishment; appointment, etc., of Director.

3042. Authorization of appropriations for advances; deposits into

separate Account in Bank; availability of amounts.

3043. Advances.

(a) Capital investment advances; criteria.

(b) Interest supplement advances; criteria; amount.

(c) Interest rate applicable to advances.

3044. Services and information for organization, financing, and

management of cooperatives; availability; agreements for

development and dissemination; funding.

3045. Investigations and surveys respecting new services, etc., by

cooperative not-for-profit organizations.

3046. Financial analysis and market surveys at request of eligible

cooperative.

3047. Programs for training directors and staff of eligible

cooperatives, and public education; development and availability;

scope and implementation.

3048. Cooperation with Federal agencies offering programs for

consumer cooperatives in disseminating information.

3049. Authorization of appropriations for administration;

availability of amounts.

3050. Fees for providing technical assistance services; waiver;

accounting and availability.

3051. Nonprofit corporation.

(a) Office of Self-Help Development and Technical

Assistance abolished; transfer of assets, etc.

(b) Establishment; Board of Directors; functions,

etc.

(c) Treatment for tax purposes.

(d) Contributions from the Bank.

(e) Conflict of interest rules.

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12 USC Sec. 3001 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

-HEAD-

Sec. 3001. Congressional statement of findings and purpose

-STATUTE-

The economic and financial structure of this country in

combination with the Nation's natural resources and the

productivity of the American people has produced one of the highest

average standards of living in the world. However, the Nation has

been experiencing inflation and unemployment together with an

increasing gap between producers' prices and consumers' purchasing

power. This has resulted in a growing number of our citizens,

especially the elderly, the poor, and the inner city resident,

being unable to share in the fruits of our Nation's highly

efficient economic system. The Congress finds that user-owned

cooperatives are a proven method for broadening ownership and

control of the economic organizations, increasing the number of

market participants, narrowing price spreads, raising the quality

of goods and services available to their membership, and building

bridges between producers and consumers, and their members and

patrons. The Congress also finds that consumer and other types of

self-help cooperatives have been hampered in their formation and

growth by lack of access to adequate cooperative credit facilities

and lack of technical assistance. Therefore, the Congress finds a

need for the establishment of a National Consumer Cooperative Bank

which will make available necessary financial and technical

assistance to cooperative self-help endeavors as a means of

strengthening the Nation's economy.

-SOURCE-

(Pub. L. 95-351, Sec. 2, Aug. 20, 1978, 92 Stat. 499.)

-MISC1-

SHORT TITLE OF 1989 AMENDMENT

Pub. L. 101-206, Sec. 1, Dec. 7, 1989, 103 Stat. 1832, provided

that: ''This Act (amending section 3014 of this title) may be cited

as the 'National Consumer Cooperative Bank Amendments of 1989'.''

SHORT TITLE OF 1981 AMENDMENT

Pub. L. 97-35, title III, Sec. 390, Aug. 13, 1981, 95 Stat. 433,

provided that: ''This subtitle (subtitle C (Sec. 390-396) of title

III of Pub. L. 97-35, enacting sections 3017a, 3026, and 3051 of

this title; amending sections 3011 to 3015, 3017, 3018, 3019, 3024,

3025, 3042, and 3043 of this title, section 5315 of Title 5,

Government Organization and Employees, and sections 856, 867, and

868 of former Title 31, Money and Finance; and enacting provisions

set out as notes under sections 3011 to 3015, 3017, 3017a, 3019,

3025, and 3026 of this title) may be cited as the 'National

Consumer Cooperative Bank Act Amendments of 1981'.''

SHORT TITLE

Section 1 of Pub. L. 95-351 provided: ''That this Act (enacting

this chapter and amending section 5315 of Title 5, Government

Organization and Employees, and sections 856, 867, and 868 of

former Title 31, Money and Finance) may be cited as the 'National

Consumer Cooperative Bank Act'.''

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12 USC SUBCHAPTER I - ESTABLISHMENT AND OPERATION 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

.

-HEAD-

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-CITE-

12 USC Sec. 3011 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3011. Creation and charter; principal office; venue; purposes

-STATUTE-

The Congress of the United States hereby creates and charters a

body corporate to be known as the National Consumer Cooperative

Bank (hereinafter in this chapter referred to as the ''Bank''). The

Bank shall have perpetual existence unless and until its charter is

revoked or modified by Act of Congress. The right to revise, amend,

or modify the charter of the Bank is specifically and exclusively

reserved to the Congress. The principal office of the Bank shall be

in Washington, District of Columbia, and, for the purpose of venue,

shall be considered a resident thereof. It shall make loans and

offer its services throughout the United States, its territories

and possessions, and in the Commonwealth of Puerto Rico. The Bank

shall -

(1) encourage the development of new and existing cooperatives

eligible for its assistance by providing specialized credit and

technical assistance;

(2) maintain broad-based control of the Bank by its voting

stockholders;

(3) encourage broad-based ownership, control, and active

participation by members in eligible cooperatives;

(4) assist in improving the quality and availability of goods

and services to consumers; and

(5) encourage ownership of its equity securities by

cooperatives and others as provided in section 3014 of this

title, so that the date when all of the Bank's class A stock

owned by the United States has been fully redeemed (the ''Final

Government Equity Redemption Date'') occurs as early as

practicable.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 101, Aug. 20, 1978, 92 Stat. 499;

Pub. L. 97-35, title III, Sec. 396(b), Aug. 13, 1981, 95 Stat.

439.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

Act'', meaning Pub. L. 95-351, Aug. 20, 1978, 92 Stat. 499, known

as the National Consumer Cooperative Bank Act, which enacted this

chapter, amended section 5315 of Title 5, Government Organization

and Employees, and sections 856, 867, and 868 of former Title 31,

Money and Finance, and enacted provisions set out as a note under

section 3001 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 3001 of

this title and Tables.

-MISC2-

AMENDMENTS

1981 - Pub. L. 97-35 substituted provisions respecting creation,

and denomination of the National Consumer Cooperative Bank, for

provisions respecting creation, denomination, and status of the

National Consumer Cooperative Bank.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 396(i) of Pub. L. 97-35 provided that: ''The amendments

made by subsections (b) through (h) (amending this section,

sections 3014, 3017, 3018, 3024, and 3043 of this title, section

5315 of Title 5, Government Organization and Employees, and

sections 856, 867, and 868 of former Title 31, Money and Finance)

shall take effect on the day after the Final Government Equity

Redemption Date (Dec. 31, 1981).'' For definition of ''Final

Government Equity Redemption Date'', see section 396(a) of Pub. L.

97-35, set out as a note under section 3012 of this title.

FINAL GOVERNMENT EQUITY REDEMPTION DATE ESTABLISHED

For establishment of Final Government Equity Redemption Date as

Dec. 31, 1981, see section 3026 of this title and notes set out

under that section.

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12 USC Sec. 3012 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3012. General corporate powers

-STATUTE-

The Bank shall have the power to make and service loans,

commitments for credit, guarantees, furnish financially related

services, technical assistance and the results of research, issue

its obligations within the limitations imposed by section 3017 of

this title in such amounts, at such times, and on such terms as the

Bank may determine, and to exercise the other powers and duties

prescribed in this chapter, and shall have the power to -

(1) operate under the direction of its Board of Directors;

(2) adopt, alter, and use a corporate seal, which shall be

judicially noted;

(3) elect by its Board of Directors a president, one or more

vice presidents, a secretary, a treasurer, and provide for such

other officers, employees, and agents as may be necessary, and

define their duties in accordance with regulations and standards

adopted by the Board, and require surety bonds or make other

provisions against losses occasioned by acts of employees;

(4) prescribe by its Board of Directors its bylaws not

inconsistent with law, which shall establish the terms of office

and the procedure for election of elective members; provide in a

manner not inconsistent with this chapter for the classes of its

stock and the manner in which its stock shall be issued,

transferred, and retired; and prescribe the manner in which its

officers, employees, and agents are elected or selected, its

property acquired, held and transferred, its loans, commitments,

other financial assistance, guarantees and appraisals may be

made, its general business conducted, and the privilege granted

it by law exercised and enjoyed;

(5) enter into contracts and make advance, progress, or other

payments with respect to such contracts, without regard to the

provisions of section 3324(a) and (b) of title 31;

(6) sue and be sued in its corporate name and complain and

defend, in any court of competent jurisdiction, State or Federal;

(7) acquire, hold, lease, mortgage, or dispose of, at public or

private sale, real and personal property and sell or exchange any

securities or obligations, and otherwise exercise all the usual

incidents of ownership of property necessary or convenient to its

business: Provided, That any such acquisition or ownership of

real property shall not deprive a State or political subdivision

thereof of its civil or criminal jurisdiction in and over such

property or impair the civil rights of the inhabitants of such

property under Federal, State, or local laws;

(8) obtain insurance against loss in connection with property

and other assets;

(9) modify or consent to the modification with respect to the

rate of interest, time of payment of any installment of principal

or interest, security, or any other term of any contract or

agreement to which it is a party or has an interest pursuant to

this chapter;

(10) utilize and act through any Federal, State, or local

public agency or instrumentality, or private agency or

organization, with the consent of the agency or organization

concerned, and contract with such agency, instrumentality, or

organization for furnishing or receiving technical services and

benefits of research, services, funds or facilities; and make

advance, progress, or other payments with respect to such

contracts without regard to section 3324(a) and (b) of title 31;

(11) within the limitations of section 3017 of this title,

borrow money and issue notes, bonds and debentures or other

obligations individually or in concert with other financial

institutions, agencies or instrumentalities, of such character

and such terms and conditions and at rates of interest as may be

determined;

(12) issue certificates of indebtedness to its stockholders or

members and pay interest on funds left with the Bank, and accept

grants or interest free temporary use of funds made available to

it;

(13) participate with one or more other financial institutions,

agencies, instrumentalities, or foundations in loans or

guarantees under this chapter on terms as may be agreed upon;

(14) accept guarantees from other agencies for which loans made

by the Bank may be eligible;

(15) establish one or more branch offices and one or more

advisory councils in connection with any such branch offices, as

may from time to time be authorized by the Board of Directors;

(16) buy and sell obligations of, or insured by, the United

States or any agency or instrumentalities thereof, or securities

backed by the full faith and credit of any such agency or

instrumentality and, after the final Government Equity Redemption

Date, make such other investments as may be authorized by the

Board of Directors;

(17) approve the salary scale of officers and employees of the

Bank, in accordance with regulations and standards adopted by the

Board of Directors, without regard to the provisions of chapter

51 and subchapter III of chapter 53 of title 5 relating to

classification and General Schedule pay rates, but, except as

otherwise provided in this chapter, the General Schedule pay

rates shall be applicable until all class A stock held by the

Secretary of the Treasury has been retired; and

(18) have such other incidental powers as may be necessary or

expedient to carry out its duties under this chapter.

In determining whether a public offering is taking place for the

purpose of the Securities Act of 1933 (15 U.S.C. 77a et seq.),

there shall be excluded from consideration all class B and class C

stock purchases which took place prior to August 13, 1981.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 102, Aug. 20, 1978, 92 Stat. 500;

Pub. L. 97-35, title III, Sec. 394(d)(1), Aug. 13, 1981, 95 Stat.

436.)

-REFTEXT-

REFERENCES IN TEXT

The Securities Act of 1933, referred to in text, is act May 27,

1933, ch. 38, title I, 48 Stat. 74, as amended, which is classified

generally to subchapter I (Sec. 77a et seq.) of chapter 2A of Title

15, Commerce and Trade. For complete classification of this Act to

the Code, see section 77a of Title 15 and Tables.

-COD-

CODIFICATION

In pars. (5) and (10), ''section 3324(a) and (b) of title 31''

substituted for ''section 3648 of the Revised Statutes (31 U.S.C.

529)'' on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982,

96 Stat. 1067, the first section of which enacted Title 31, Money

and Finance.

-MISC3-

AMENDMENTS

1981 - Pub. L. 97-35 substituted provisions relating to a public

offering for purposes of the Securities Act of 1933, for provisions

setting forth criteria for the term ''exempt securities''.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 394(d)(2) of Pub. L. 97-35 provided that: ''The amendment

made by paragraph (1) (amending this section) shall take effect on

the day after the Final Government Equity Redemption Date (Dec. 31,

1981).'' See section 396(a) of Pub. L. 97-35 set out below.

''FINAL GOVERNMENT EQUITY REDEMPTION DATE'' DEFINED

Section 396(a) of subtitle C of title III of Pub. L. 97-35

provided that: ''For purposes of this subtitle (see Short Title of

1981 Amendment note set out under section 3001 of this title), the

term 'Final Government Equity Redemption Date' shall have the same

meaning given such term in section 101(5) of the National Consumer

Cooperative Bank Act (12 U.S.C. 3011(5)).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3018 of this title.

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12 USC Sec. 3013 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3013. Board of Directors

-STATUTE-

(a) Composition; term of office; removal by President

The Bank shall be governed by a Board of Directors (hereinafter

in this chapter referred to as the ''Board'') which shall consist

of 15 members. All members shall serve for a term of 3 years.

After the expiration of the term of any member, such member may

continue to serve until his successor has been elected or has been

appointed and qualified. Any member appointed by the President may

be removed for cause by the President.

(b) Appointment by President; election by stockholders

(1) The President shall appoint, by and with the advice and

consent of the Senate -

(A) one member who shall be selected from among proprietors of

small business concerns, as defined under section 632 of title

15, which are manufacturers or retailers;

(B) one member who shall be selected from among the officers of

the agencies and departments of the United States; and

(C) one member who shall be selected from among persons having

extensive experience in the cooperative field representing

low-income cooperatives eligible to borrow from the Bank.

(2) Twelve members of the Board shall be elected by the holders

of class B stock and class C stock in accordance with the

provisions of subsection (d) of this section and the bylaws of the

Bank.

(c) Resignations; continuances; completion of term; committee

representation

(1) On the day after the Final Government Equity Redemption Date,

all members of the Board of Directors of the Bank who were

appointed by the President shall resign, except that -

(A) the member who shall have been appointed by the President

from among proprietors of small business concerns, and

(B) one member who shall be designated by the President and who

shall have been appointed by the President from among the

officers and employees of the agencies and departments of the

United States Government,

may continue to serve until their successors have been appointed

and qualified.

(2) Any member of the Board of Directors of the Bank who was

elected by the holders of class B or class C stock before the Final

Government Equity Redemption Date shall serve the remainder of the

term for which such member was elected.

(3) Any member appointed pursuant to subsection (b)(1) of this

section shall be entitled to sit on any committee of the Board, but

not more than one member so appointed may sit on any one committee.

(d) Elections; nominations by cooperative classes; vacancies

filled; representation requirements

(1) All elections of members of the Board by the holders of class

B stock and class C stock shall be conducted in accordance with the

bylaws of the Bank. Such bylaws shall conform to the requirements

of this section. Nominations for such elections shall be made by

the following classes of cooperatives: (A) housing, (B) consumer

goods, (C) low-income cooperatives, (D) consumer services, and (E)

all other eligible cooperatives.

(2)(A) Vacant shareholder directorships shall be filled so that

at any time when there are three or more shareholder directors on

the Board, there shall be at least one director representing each

of the following classes of cooperatives: (i) housing cooperatives,

(ii) low-income cooperatives, and (iii) consumer goods and services

cooperatives.

(B) Each nominee for a shareholder directorship of a particular

class shall have at least three years experience as a director or

senior officer in the class of cooperatives to be represented.

(C) No one class of cooperatives specified in paragraph (1) shall

be represented on the Board by more than three directors.

(e) Terms; officer of Bank not to serve as director; notice

requirements of Bank and voting shareholders

No director shall be eligible to be elected for more than two

consecutive full three-year terms. No officer of the Bank shall be

eligible to serve simultaneously as a director on the Board of the

Bank. The Bank shall give adequate advance notice to all voting

stockholders of nominees and of the procedures for nominating other

candidates. Each voting stockholder shall make the information

required in this paragraph available to its members.

(f) Annual election of chairman and vice chairman and selection of

secretary; eligibility; establishment of Bank policies and

direction of management

The Board shall annually elect from among its members a chairman

and vice chairman and select a secretary who need not be a member.

The Board shall establish the policies of the Bank governing its

funding, lending, and other financial and technical assistance, and

shall direct the management of the Bank.

(g) Conduct of meetings; rules governing

The Board shall meet at least quarterly. Its meeting shall be

open to members or representatives of all eligible cooperatives and

other eligible organizations, as observers only, and to persons or

representatives of groups who identify their interest in the Bank

and who are invited to attend a meeting, subject to such rules as

the Board may establish for the conduct of such meetings. Those

rules shall include the manner of giving notice of meetings, the

procedure for the conduct of meetings, the manner of submitting

topics for the agenda, the allocation of time of presentations, and

debate. The chairman, when sustained by the majority of the Board

present, may adjourn the open meeting into an executive session on

motion of the chairman, any Board member, or at the request of any

applicant, borrower, officer, or employee when the matter under

discussion involves an application, a loan, a personnel action, or

other matter which might tend to impinge on the right of privacy of

any person.

(h) Compensation and expenses

Members of the Board appointed by the President from among the

officers of the agencies and departments of the United States

Government shall not receive any additional compensation by virtue

of their service on the Board. The member of the Board appointed

from among proprietors of small business and the member of the

Board appointed pursuant to subsection (b)(1)(C) of this section

shall (1) receive compensation at a rate equal to the daily

equivalent of the rate prescribed for grade GS-18 under section

5332 of title 5 for each day that they are engaged in the

performance of their duties on the Board, and (2) be allowed travel

expenses, including per diem in lieu of subsistence, in the same

manner as persons employed intermittently in the Government service

are allowed expenses under section 5703(b) (FOOTNOTE 1) of title 5

for each day that they are away from their homes or regular places

of business in the performance of their duties on the Board. The

members of the Board who are elected by the holders of class B

stock and class C stock shall be compensated in accordance with the

bylaws of the Bank. All compensation and expenses paid to the

members of the Board of Directors shall be paid by the Bank.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 103, Aug. 20, 1978, 92 Stat. 502;

Pub. L. 96-149, Dec. 16, 1979, 93 Stat. 1089; Pub. L. 97-35, title

III, Sec. 393(a), (b), Aug. 13, 1981, 95 Stat. 435, 436.)

-REFTEXT-

REFERENCES IN TEXT

Section 5703 of title 5, referred to in subsec. (h), was amended

generally by Pub. L. 94-22, Sec. 4, May 19, 1975, 89 Stat. 85, and,

as so amended, does not contain a subsec. (b).

-MISC2-

AMENDMENTS

1981 - Subsec. (a). Pub. L. 97-35, Sec. 393(a), substituted

provisions relating to composition, term of office, and removal by

the President, for provisions relating to composition, appointment,

eligibility, removal, and vacancies.

Subsec. (b). Pub. L. 97-35, Sec. 393(a), substituted provisions

relating to appointment by the President, and election by the

stockholders, for provisions relating to resignation and

termination of terms of Presidential appointees, shareholder

directorships, resignation of remaining Presidential appointees on

Final Government Equity Redemption Date, and continuation of

Presidential appointment power.

Subsec. (c). Pub. L. 97-35, Sec. 393(a), substituted provisions

relating to resignations, continuances, completion of term, and

committee representation, for provisions relating to nominating

criteria for appointment or election, and representational

limitations.

Subsec. (d). Pub. L. 97-35, Sec. 393(a), substituted provisions

relating to nominations by cooperative classes, vacancies, and

representational requirements for elections, for provisions

relating to rules governing election of successors to resigned

Presidential appointees and successors to shareholder directors.

Subsec. (h). Pub. L. 97-35, Sec. 393(b), inserted provisions

relating to compensation of members elected by holders of class B

and C stock, and provisions relating to payment of compensation and

expenses by the Bank, and substituted provisions relating to

members appointed under subsec. (b)(1)(C) of this section, for

provisions relating to Final Government Equity Redemption Date, and

members elected by holders of class B and C stock.

1979 - Subsec. (a). Pub. L. 96-149, Sec. 1(a), inserted

provisions respecting appointment of a member from among

proprietors of small business concerns, and substituted ''fifteen''

for ''thirteen'', ''eight'' for ''seven'', and ''this section'' for

''this section 104'', which for purposes of codification had been

editorially translated as ''section 3014 of this title''.

Subsec. (b). Pub. L. 96-149, Sec. 1(b), substituted provisions

respecting criteria for resignations of initial two additional

Board members and the additional Board member, for provisions

respecting criteria for resignation of an additional Board member,

and substituted ''Five of the'' for ''Five''.

Subsec. (d). Pub. L. 96-149, Sec. 1(c), substituted ''five of

the'' for ''all five''.

Subsec. (h). Pub. L. 96-149, Sec. 1(d), inserted provisions

relating to Board member appointed from among proprietors of small

businesses.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 393(c) of Pub. L. 97-35 provided that: ''The amendments

made by subsections (a) and (b) (amending this section) shall take

effect on the day after the Final Government Equity Redemption Date

(Dec. 31, 1981).'' For definition of ''Final Government Equity

Redemption Date'', see section 396(a) of Pub. L. 97-35, set out as

a note under section 3012 of this title.

REFERENCES IN OTHER LAWS TO GS-16, 17, OR 18 PAY RATES

References in laws to the rates of pay for GS-16, 17, or 18, or

to maximum rates of pay under the General Schedule, to be

considered references to rates payable under specified sections of

Title 5, Government Organization and Employees, see section 529

(title I, Sec. 101(c)(1)) of Pub. L. 101-509, set out in a note

under section 5376 of Title 5.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3014 of this title.

-CITE-

12 USC Sec. 3014 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3014. Capitalization

-STATUTE-

(a) Subscriptions for capital; authorization of appropriations

The capital of the Bank shall consist of capital subscribed by

borrowers from the Bank, by cooperatives eligible to become

borrowers, by organizations owned and controlled by such borrowers,

by foundations, trust or charitable funds, by public bodies, by

other public or private investors, and by the United States. There

are authorized to be appropriated not to exceed $47,000,000 for

fiscal year 1982 for purposes of purchasing class A stock.

(b) Classes of stock; general requirements respecting rights,

powers, privileges, and preferences

The capital stock of the Bank shall include class B and class C

stock and such other classes with such rights, powers, privileges,

and preferences of the separate classes as may be specified, not

inconsistent with law, in the bylaws of the Bank. Class A notes

which are held by the United States shall have first preference

with respect to assets and interest payments over all classes of

stock issued by the Bank. So long as any class A notes are

outstanding, the Bank shall not pay any dividend on any class of

stock at a rate greater than the statutory interest rate payable on

class A notes. Class B and class C stock shall be common stock

with voting rights as provided for herein and shall be issued only

to eligible borrowers and organizations controlled by such

borrowers or organizations eligible to borrow, and shall be

transferable only on the books of the Bank and then only to another

eligible borrower. No holder of voting stock of the Bank shall be

entitled to more than one vote regardless of the number of shares

of stock of other classes held, except as provided in subsection

(g) of this section.

(c) Class A notes; interest payments; redemption, etc.

The holder of class A notes shall be entitled to interest at a

rate or rates determined by the Secretary of the Treasury, taking

into consideration the current average yield on outstanding

marketable obligations of the United States of comparable terms and

conditions as of the last day of the month preceding each issuance

of such class A notes to the Secretary of the Treasury, except

that, until October 1, 1990, interest payments shall not exceed 25

percent of gross revenues for the year, less necessary operating

expenses including a reserve for possible losses. From time to

time, the Bank may, with the approval of the Secretary of the

Treasury and consistent with the terms of this chapter, issue

replacement class A notes upon terms and conditions to be agreed

upon by the Bank and the Secretary, bearing interest as provided in

this subsection, in substitution for those class A notes previously

issued. Any such interest payment may be deferred by the Board of

Directors with the approval of the Secretary of the Treasury,

except that any interest payment so deferred shall bear interest at

a rate equal to the rate determined pursuant to the first sentence

of this subsection. Without the approval of the Secretary of the

Treasury, the Bank shall not pay any dividend or distribution on,

or make any redemption or repurchase of, any class of stock at any

time when the deferred interest payments on class A notes shall not

have been paid in full, together with any unpaid interest on such

notes. Upon any liquidation or dissolution of the Bank, the holder

of class A notes shall be entitled to receive out of the assets of

the Bank available for distribution to its stockholders, prior to

any payment to the holders of any class of stock of the Bank, an

amount not less than the aggregate face value of all class A notes

outstanding, plus all accrued and unpaid interest payments accrued

thereon to and including the date of payment (together with all

unpaid interest thereon). The class A notes shall be redeemed and

retired as soon as practicable consistent with the purposes of this

chapter (such redemption to be at a price equal to the face value

of the class A notes so redeemed plus interest payments accrued

thereon to the date of redemption), except that beginning on

October 1, 1990, there shall be redeemed as a minimum with respect

to each fiscal year a number of class A notes having an aggregate

face value equal to the aggregate consideration received by the

Bank for the issue of its class B and class C stock during that

fiscal year. Each such redemption shall take place not later than

ninety days after the close of each fiscal year. All class A notes

shall be redeemed by the Bank no later than October 31, 2020.

(d) Class B stock; ownership requirements, etc.

Class B stock shall be held only by recipients of loans under

section 3015 of this title, and such borrowers shall be required to

own class B stock in an amount not less than 1 per centum of the

face amount of the loan at the time the loan is made. Such

borrowers may be required by the Bank to own additional class B or

class C stock at the time the loan is made, but not to exceed an

amount equal to 10 per centum of the face amount of the loan, or

from time to time, as the Bank may determine. Such additional

stock ownership requirements may be on the basis of the face amount

of the loan, the outstanding balances, or on a percentage of

interest payable during any year or any quarter thereof, as the

Bank may determine will provide adequate capital for the operation

of the Bank and equitable ownership thereof among borrowers.

(e) Class C stock; purchase, dividends, etc.

Class C stock shall be available for purchase and shall be held

only by borrowers or by organizations eligible to borrow under

section 3015 of this title or by organizations controlled by such

borrowers, and shall be entitled to dividends in the manner

specified in the bylaws of the Bank. Such dividends shall be

payable only from income, and, until all class A notes has

(FOOTNOTE 1) been retired, the rate of such dividends shall not

exceed the rate of the statutory interest payment on class A notes.

(FOOTNOTE 1) So in original. Probably should be ''have''.

(f) Nonvoting stock of other classifications and priorities;

issuance, etc.

Nonvoting stock of other classifications and other priorities may

be issued at the discretion of the Board, to other investors,

except that so long as any class A notes are outstanding, the Board

shall not authorize or issue any class of stock, whether voting or

nonvoting, that would rank prior or equal to the class A notes as

to dividends, interest payments, or upon liquidation or

dissolution.

(g) Voting requirements of bylaws

(1) The bylaws of the Bank may provide for more than one vote on

the basis of -

(A) the amount of class B stock, class C stock, or both classes

held, with such limitations as will encourage investments in

class C stock;

(B) the amount of patronage of the Bank; and

(C) number of members in the cooperative.

(2) Such bylaws shall avoid -

(A) voting control of the Bank from becoming concentrated with

the larger affluent or smaller less affluent organizations;

(B) a disproportionately larger vote in one or more of the

groups of cooperatives referred to in section 3013(d)(2)(A) of

this title; and

(C) the concentration of more than 5 per centum of the total

voting control in any one class B or class C stockholder.

(h) Acceptance by Bank of nonreturnable capital contributions

The Bank may accept nonreturnable capital contributions on which

no interest, dividend, or patronage refund shall be payable from

associations, foundations, or funds or public bodies or agencies at

the discretion of the Board.

(i) Patronage refunds

After payment of all operating expenses of the Bank, including

interest on its obligations, and after setting aside appropriate

funds for reserves for losses, for interest payments on class A

notes and dividends on class C stock and for any redemption of

class A notes in accordance with subsection (c) of this section,

the Bank shall annually set aside the remaining earnings of the

Bank for patronage refunds in the form of class B or C stock or

allocated surplus in accordance with the bylaws of the Bank. After

ten years from the date of issue of any such stock, or at such

earlier time as all the Government-held stock is retired, patronage

refunds may be made in cash, or partly in stock and partly in cash.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 104, Aug. 20, 1978, 92 Stat. 503;

Pub. L. 97-35, title III, Sec. 394(c)(1), 395(b)(2), 396(c), Aug.

13, 1981, 95 Stat. 436, 439; Pub. L. 101-206, Sec. 2, Dec. 7, 1989,

103 Stat. 1832.)

-MISC1-

AMENDMENTS

1989 - Subsec. (c). Pub. L. 101-206 substituted ''The holder of

class A notes shall be entitled to interest at a rate or rates

determined by the Secretary of the Treasury, taking into

consideration the current average yield on outstanding marketable

obligations of the United States of comparable terms and conditions

as of the last day of the month preceding each issuance of such

class A notes to the Secretary of the Treasury, except that, until

October 1, 1990, interest payments shall not exceed 25 percent of

gross revenues for the year, less necessary operating expenses

including a reserve for possible losses. From time to time, the

Bank may, with the approval of the Secretary of the Treasury and

consistent with the terms of this chapter, issue replacement class

A notes upon terms and conditions to be agreed upon by the Bank and

the Secretary, bearing interest as provided in this subsection, in

substitution for those class A notes previously issued.'' for ''The

holder of class A notes shall be entitled to interest payments at a

rate determined by the Secretary of the Treasury taking into

consideration the average market yield, during the month preceding

the close of each fiscal year, on outstanding marketable

obligations of the United States of comparable maturity, except

that until October 1, 1990, such interest payments shall not exceed

25 per centum of gross revenues for the year less necessary

operating expenses, including a reserve for possible losses. Such

interest payments shall be payable annually into miscellaneous

receipts of the Treasury and shall be cumulative.'' and inserted at

end ''All class A notes shall be redeemed by the Bank no later than

October 31, 2020.''

1981 - Subsec. (a). Pub. L. 97-35, Sec. 394(c)(1), 395(b)(2),

inserted ''by other public or private investors,'' after ''public

bodies,'' and substituted provisions authorizing appropriations for

fiscal year 1982, for provisions authorizing appropriations

beginning with the fiscal year ending Sept. 30, 1979, and

authorizing use of amounts authorized but not appropriated.

Subsec. (b). Pub. L. 97-35, Sec. 396(c)(1), substituted ''class

B'' for ''class A, class B,'', and substituted provisions relating

to class A notes, for provisions relating to class A preferred

stock.

Subsec. (c). Pub. L. 97-35, Sec. 396(c)(2), substituted

provisions relating to interest payments, redemption, etc., of

class A notes, for provisions relating to issuance, dividends,

etc., of class A stock.

Subsec. (e). Pub. L. 97-35, Sec. 396(c)(3), substituted

provisions relating to class A notes, for provisions relating to

class A stock.

Subsec. (f). Pub. L. 97-35, Sec. 396(c)(4), substituted

provisions relating to class A notes, for provisions relating to

class A stock.

Subsec. (g)(2)(B). Pub. L. 97-35, Sec. 396(c)(5), substituted

''3013(d)(2)(A)'' for ''3013(c)''.

Subsec. (h). Pub. L. 97-35, Sec. 396(c)(6), struck out provision

respecting treatment of the Bank as a governmental unit within

section 170(b)(1)(A)(v) of title 26.

Subsec. (i). Pub. L. 97-35, Sec. 396(c)(7), substituted

provisions relating to class A notes, for provisions relating to

class A stock.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 394(c)(2) of Pub. L. 97-35 provided that: ''The amendment

made by paragraph (1) (amending this section) shall take effect on

the day after the Final Government Equity Redemption Date (Dec. 31,

1981).'' For definition of ''Final Government Equity Redemption

Date'', see section 396(a) of Pub. L. 97-35, set out as a note

under section 3012 of this title.

Section 395(b)(3) of Pub. L. 97-35 provided that: ''The

amendments made by paragraphs (1) (amending section 3042 of this

title) and (2) (amending this section) shall take effect on October

1, 1981.''

Amendment by section 396(c) of Pub. L. 97-35 effective on the day

after the Final Government Equity Redemption Date (Dec. 31, 1981),

see section 396(i) of Pub. L. 97-35, set out as an Effective Date

of 1981 Amendment note under section 3011 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3011, 3019, 3026 of this

title.

-CITE-

12 USC Sec. 3015 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3015. Eligibility of cooperatives

-STATUTE-

(a) General requirements

For the purpose of all subchapters of this chapter, subject to

the limitations of subsection (d) of this section, an eligible

cooperative is an organization chartered or operated on a

cooperative, not-for-profit basis for producing or furnishing

goods, services or facilities, primarily for the benefit of its

members or voting stockholders who are ultimate consumers of such

goods, services, or facilities, or a legally chartered entity

primarily owned and controlled by any such organization or

organizations, if it -

(1) makes such goods, services or facilities directly or

indirectly available to its members or voting stockholders on a

not-for-profit basis;

(2) does not pay dividends on voting stock or membership

capital in excess of such percentage per annum as may be approved

under the bylaws of the Bank;

(3) provides that its net savings shall be allocated or

distributed to all members or patrons, in proportion to their

patronage, or shall be retained for the actual or potential

expansion of its services or the reduction of its charges to the

patrons, or for such other purposes as may be authorized by its

membership not inconsistent with its purposes;

(4) makes membership available on a voluntary basis, without

any social, political, racial, or religious discrimination and

without any discrimination on the basis of age, sex, or marital

status, to all persons who can make use of its services and are

willing to accept the responsibilities of membership, subject

only to limitations under applicable Federal or State laws or

regulations;

(5) in the case of primary cooperative organizations restricts

its voting control to members or voting stockholders on a one

vote per person basis (except that this requirement shall not

apply to any housing cooperative in existence on March 21, 1980,

which did not meet such requirement on such date) and takes

positive steps to insure economic democracy and maximum

participation by members of the cooperative including the holding

of annual meetings and, in the case of organizations owned by

groups of cooperatives, provides positive protections to insure

economic democracy; and

(6) is not a credit union, mutual savings bank, or mutual

savings and loan association.

(b) Primary producers

No organization shall be ineligible because it produces, markets,

or furnishes goods, services, or facilities on behalf of its

members as primary producers, unless the dollar volume of loans

made by the Bank to such organizations exceeds 10 per centum of the

gross assets of the Bank.

(c) ''Net savings'' defined

As used in this section, the term ''net savings'' means, for any

period, the borrower's gross receipts, less the operating and other

expenses deductible therefrom in accordance with generally accepted

accounting principles, including, without limitation, contributions

to allowable reserves, and after deducting the amounts of any

dividends on its capital stock or other membership capital payable

during, or within forty-five days after, the close of such period.

(d) Cooperatives eligible for other Federal credit assistance

An eligible cooperative which also has been determined to be

eligible for credit assistance from the Rural Electrification

Administration, the National Rural Utilities Cooperative Finance

Corporation, the Rural Telephone Bank, the Banks for Cooperatives

or other institutions of the Farm Credit System, or the Farmers

Home Administration may receive the assistance authorized by this

chapter only (1) if the Bank determines that a request for

assistance from any such source or sources has been rejected or

denied solely because of the unavailability of funds from such

source or sources, or (2) by agreement between the Bank and the

agency or agencies involved.

(e) Credit unions eligible for technical assistance from Office of

Self-Help Development and Technical Assistance

Notwithstanding any other provision of this section, a credit

union serving predominantly low-income members (as defined by the

Administrator of the National Credit Union Administration) may

receive technical assistance under subchapter II of this chapter.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 105, Aug. 20, 1978, 92 Stat. 506;

Pub. L. 97-35, title III Sec. 394(e)(1), (f), Aug. 13, 1981, 95

Stat. 436, 437.)

-REFTEXT-

REFERENCES IN TEXT

All subchapters of this chapter, referred to in subsec. (a), was

in the original ''all titles of this Act'', meaning titles I to III

of Pub. L. 95-351. Titles I and II constitute this chapter and

title III amended section 5315 of Title 5, Government Organization

and Employees, and sections 856, 867, and 868 of former Title 31,

Money and Finance.

-MISC2-

AMENDMENTS

1981 - Subsec. (a). Pub. L. 97-35, Sec. 394(e)(1), substituted

''primarily owned'' for ''entirely owned''.

Subsec. (a)(5). Pub. L. 97-35, Sec. 394(f), inserted provisions

relating to exception for housing cooperatives in existence on Mar.

21, 1980.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 394(e)(2) of Pub. L. 97-35 provided that: ''The amendment

made by paragraph (1) (amending this section) shall take effect on

the day after the Final Government Equity Redemption Date (Dec. 31,

1981).'' For definition of ''Final Government Equity Redemption

Date'', see section 396(a) of Pub. L. 97-35, set out as a note

under section 3012 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3014, 3018 of this title.

-CITE-

12 USC Sec. 3016 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3016. Annual meetings; notice, agenda, etc.

-STATUTE-

The Bank shall hold an annual meeting of its stockholders which

shall be open to the public. At least 30 days' advance notice of

the time and place of the annual meeting shall be given to all

stockholders. Borrowers from the Bank shall also give notice of

the meeting to their members, who shall be entitled to attend. At

such meeting the Bank shall give a full report of its activities

during the year and its financial condition and may present

proposals for future action and other matters of general concern to

borrowers and organizations eligible to borrow from the Bank.

Members and representatives of borrowers may present motions or

resolutions relating to matters within the scope of this chapter

and may participate in the discussion thereof and other matters on

the agenda.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 106, Aug. 20, 1978, 92 Stat. 507.)

-CITE-

12 USC Sec. 3017 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3017. Bonds, debentures, notes and other evidences of

indebtedness

-STATUTE-

(a) Authorization for public or private sale; time of issuance,

interest rates, and terms and conditions; outstanding amount

The Bank is authorized to obtain funds through the public or

private sale of its bonds, debentures, notes, and other evidences

of indebtedness. Such obligations shall be issued at such times,

bear interest at such rates, and contain such terms and conditions

as the Board shall determine: Provided, however, That the amount of

such obligations which may be outstanding at any one time pursuant

to this section shall not exceed ten times the paid-in capital and

surplus of the Bank.

(b) Purchase and sale by Bank; methods of sale and delivery

The Bank may purchase its own obligations, and may provide for

the sale of any such obligations through a fiscal agent or agents,

by negotiation, offer, bid, syndicate sale, or otherwise, and may

deliver such obligations by book entry, wire transfer, or such

other means as may be appropriate.

(c) Obligations as not guaranteed by United States and not to

constitute a debt or obligation of United States

Obligations issued under this section shall not be guaranteed by

the United States and shall not constitute a debt or obligation of

the United States or any agency or instrumentality thereof other

than the Bank.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 107, Aug. 20, 1978, 92 Stat. 507;

Pub. L. 97-35, title III, Sec. 394(g)(1), 396(d), Aug. 13, 1981, 95

Stat. 437, 440.)

-MISC1-

AMENDMENTS

1981 - Subsec. (a). Pub. L. 97-35, Sec. 394(g)(1), struck out

requirement respecting consultation with the Secretary of the

Treasury.

Subsecs. (b) to (d). Pub. L. 97-35, Sec. 396(d), redesignated

subsecs. (c) and (d) as (b) and (c), respectively, and struck out

former subsec. (b) relating to discretionary authority for issuance

to and purchase by Secretary of Treasury.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 394(g)(2) of Pub. L. 97-35 provided that: ''The amendment

made by paragraph (1) (amending this section) shall take effect on

the day after the Final Government Equity Redemption Date (Dec. 31,

1981).'' For definition of ''Final Government Equity Redemption

Date'', see section 396(a) of Pub. L. 97-35, set out as a note

under section 3012 of this title.

Amendment by section 396(d) of Pub. L. 97-35 effective on the day

after the Final Government Equity Redemption Date (Dec. 31, 1981),

see section 396(i) of Pub. L. 97-35, set out as a note under

section 3011 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3012, 3017a, 3022 of this

title.

-CITE-

12 USC Sec. 3017a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3017a. Class A notes as paid-in capital of the Bank

-STATUTE-

Only for purposes of section 3017(a) of this title, class A notes

shall be deemed to be paid-in capital of the Bank.

-SOURCE-

(Pub. L. 97-35, title III, Sec. 391(b)(1), Aug. 13, 1981, 95 Stat.

434.)

-COD-

CODIFICATION

Section was enacted as part of the National Consumer Cooperative

Bank Act Amendments of 1981 and also as part of the Omnibus Budget

Reconciliation Act of 1981, and not as part of the National

Consumer Cooperative Bank Act which comprises this chapter.

-MISC3-

EFFECTIVE DATE

Section 391(b)(2) of Pub. L. 97-35 provided that: ''This

subsection (enacting this section) shall take effect on the day

after the Final Government Equity Redemption Date (Dec. 31,

1981).'' For definition of ''Final Government Equity Redemption

Date'', see section 396(a) of Pub. L. 97-35, set out as a note

under section 3012 of this title.

-CITE-

12 USC Sec. 3018 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3018. Loans

-STATUTE-

(a) General requirements for loans and commitments for loans;

limitations; allocation of assistance for low-income persons;

criteria and factors for making loans, etc.; publication

The Bank may make loans and commitments for loans under this

subsection to any organization determined by the Bank to be

eligible under the provisions of section 3015 of this title, and

may purchase or discount obligations of members of such

organizations if the Bank, to the exclusion of all other persons,

entities, agencies, or jurisdictions, also determines that the

applicant has or will have a sound organizational and financial

structure, income in excess of its operating costs and assets in

excess of its obligations, and a reasonable expectation of a

continuing demand for its production, goods, commodities, or

services, or the use of its facilities, so that the loan will be

fully repayable in accordance with its terms and conditions.

Commencing on October 1, 1985, the Bank shall not make any loan to

a cooperative for the purpose of financing the construction,

ownership, acquisition, or improvement of any structure used

primarily for residential purposes if, after giving effect to such

loan, the aggregate amount of all loans outstanding for such

purpose would exceed 30 per centum of the gross assets of the Bank.

The Board of Directors shall use its best efforts to insure that at

the end of each fiscal year of the Bank at least 35 per centum of

its outstanding loans are to -

(1) cooperatives at least a majority of the members of which

are low-income persons, and

(2) other cooperatives, if the proceeds of such loans are

directly applied to finance a facility, activity, or service that

the Board finds will be used predominantly by low-income persons.

The Board shall adopt and publish in the Federal Register rules

defining the term ''low-income persons'' for purposes of this

subsection. The criteria to be applied and the factors to be

considered by the Bank in making loans, loan commitments,

purchases, discounts, and guarantees shall include an assessment of

the impact of the loan on existing small businesses in the eligible

organizations' business territory. The criteria and factors shall

be stated in rules of the Bank which shall be published and made

available to applicants and, upon request, to any other person or

organization.

(b) Repayment requirements; criteria for terms, rates, and charges;

advancement of loan proceeds

Loans under this section shall be repayable in not more than

forty years and, except for loans with final due date not longer

than five years from the date of the loan, shall be amortized as to

principal and interest. In setting the terms, rates, and charges,

it shall be the objective of the Bank to provide the type of credit

needed by eligible borrowers, at the lowest reasonable cost on a

sound business basis, taking into account the cost of money to the

Bank, necessary reserve and expenses of the Bank, and the technical

and other assistance attributable to loans under this section made

available by the Bank. The loan terms may provide for interest

rates to vary from time to time during the repayment period of the

loan in accordance with the rates being charged by the Bank for new

loans at such times. The proceeds of a loan under this subsection

may be advanced by the borrower to its members or stockholders

under circumstances described in the bylaws or rules of the Bank.

(c) Guarantees by Bank; requirements; charges

Subject to section 3012(13) of this title, the Bank may guarantee

all or any part of the principal and interest of any loan made by

any State or federally chartered lending institution to any

borrower if such loan is to an organization that would be an

eligible borrower from the Bank for a direct loan and is on terms

and conditions (including the rate of interest) which would be

permissible terms and conditions for such a direct loan. The Bank

may impose a charge for any such guarantee. No loan may be

guaranteed by the Bank if the income therefrom to the lender is

excluded from such lender's gross income for purposes of chapter 1

of title 26.

(d) Assignment of guaranteed loans; contestability of guarantee;

criteria for purchase by Bank of guaranteed loan in lieu of

requiring service by lender

Any loan guaranteed under subsection (c) of this section shall be

assignable to the extent provided in the contract of guarantee as

may be determined by the Bank. The guarantee shall be

uncontestable, except for fraud or misrepresentation of which the

holder had actual knowledge at the time he acquired the loan. The

Bank in lieu of requiring such lender to service such guaranteed

loan until final maturity or liquidation, may purchase the loan for

the balance of the principal and accrued interest thereon without

penalty, if it determines that (1) the liquidation of the loan

would result in the insolvency of the borrower or deprive the

borrower of assets essential to its continued operation, and (2)

the loan will be repayable with revision of the loan rates, terms,

or payment periods or other conditions not inconsistent with loans

made by the Bank under subsection (a) of this section, which

revisions the lender or other holder of such guaranteed loan is

unwilling to make.

(e) Aggregate amount of commitments to make or guarantee loans

As long as any of the class A stock of the Bank is held by the

Secretary of the Treasury, the aggregate amount of commitments by

the Bank to make or guarantee loans shall not exceed such amounts

as may be specified in annual appropriation Acts.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 108, Aug. 20, 1978, 92 Stat. 508;

Pub. L. 97-35, title III, Sec. 394(b), 396(e), Aug. 13, 1981, 95

Stat. 436, 440; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.

2095.)

-MISC1-

AMENDMENTS

1986 - Subsec. (c). Pub. L. 99-514 substituted ''Internal Revenue

Code of 1986'' for ''Internal Revenue Code of 1954'', which for

purposes of codification was translated as ''title 26'' thus

requiring no change in text.

1981 - Subsec. (a). Pub. L. 97-35, Sec. 394(b), substituted

''1985'' for ''1983''.

Subsec. (b). Pub. L. 97-35, Sec. 396(e), struck out provisions

relating to proceeds from class A and class B stock.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by section 396(e) of Pub. L. 97-35 effective on day

after Final Government Equity Redemption Date (Dec. 31, 1981), see

section 396(i) of Pub. L. 97-35, set out as a note under section

3011 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3043 of this title.

-CITE-

12 USC Sec. 3019 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3019. Taxation by State, county, etc., taxing authority;

Federal tax status

-STATUTE-

(a) The Bank, including its franchise, capital, reserves,

surplus, mortgages, or other security holdings and income shall be

exempt from taxation now or hereafter imposed by any State, county,

municipality, or local taxing authority, but any real property held

by the Bank shall be subject to any State, county, municipal, or

local taxation to the same extent according to its value as other

real property is taxed.

(b) Notwithstanding any other provision of law, for purposes of

subchapter T of chapter 1 of title 26 -

(1) the Bank shall be treated as a corporation operating on the

cooperative basis within the meaning of section 1381(a)(2) of

title 26;

(2) the term ''patronage dividend'', as defined in section

1388(a) of title 26 includes, only as such section applies to the

Bank, any patronage refunds in the form of class B or class C

stock or allocated surplus that are distributed or set aside by

the Bank pursuant to section 3014(i) of this title;

(3) the terms ''written notice of allocation'' and ''qualified

written notices of allocation'', as defined in sections 1388(b)

and (c) of title 26, include (to the extent of par value), only

as such sections apply to the Bank, any class B or class C stock

distributed by the Bank pursuant to section 3014(i) of this title

and shall also include any allocated surplus set aside by the

Bank pursuant to section 3014(i) of this title;

(4) patrons of the Bank shall be deemed to have consented under

section 1388(c)(2) of title 26 to the inclusion in their incomes

of any qualified written notices of allocation received by such

patrons from the Bank; and

(5) any amounts required to be included in the incomes of

patrons of the Bank with respect to class B or class C stock or

allocated surplus shall be treated as earnings from business done

by such patrons of the Bank with or for their own patrons.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 109, Aug. 20, 1978, 92 Stat. 509;

Pub. L. 97-35, title III, Sec. 392(a), Aug. 13, 1981, 95 Stat. 434;

Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.)

-REFTEXT-

REFERENCES IN TEXT

Subchapter T of chapter 1 of title 26, referred to in subsec.

(b), is set out as section 1381 et seq. of Title 26, Internal

Revenue Code.

-MISC2-

AMENDMENTS

1986 - Subsec. (b). Pub. L. 99-514 substituted ''Internal Revenue

Code of 1986'' for ''Internal Revenue Code of 1954'', which for

purposes of codification was translated as ''title 26'' thus

requiring no change in text.

1981 - Pub. L. 97-35 designated existing provisions as subsec.

(a), struck out applicability of Final Government Equity Redemption

Date to provisions, and added subsec. (b).

EFFECTIVE DATE OF 1981 AMENDMENT

Section 392(b) of Pub. L. 97-35 provided that: ''The amendments

made by subsection (a) (amending this section) shall take effect on

the day after the Final Government Equity Redemption Date (Dec. 31,

1981).'' For definition of ''Final Government Equity Redemption

Date'', see section 396(a) of Pub. L. 97-35, set out as a note

under section 3012 of this title.

-CITE-

12 USC Sec. 3020 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3020. Quarters and space for principal and other offices

-STATUTE-

Until the Final Government Equity Redemption Date, space for the

principal office and any branch offices of the Bank shall be

provided by the General Services Administration. Thereafter, the

Bank may lease, construct, or own quarters and provide for the

space requirements of its principal and other offices.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 110, Aug. 20, 1978, 92 Stat. 510.)

-CITE-

12 USC Sec. 3021 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3021. Annual report to Congress; contents

-STATUTE-

The Board of the Bank shall report annually to the appropriate

committees of the Congress on the Bank's capital, operations, and

financial condition and make recommendations for legislation needed

to improve its services.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 111, Aug. 20, 1978, 92 Stat. 510.)

-CITE-

12 USC Sec. 3022 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3022. Authorization of additional appropriations; restrictions

on use

-STATUTE-

In addition to appropriations specifically authorized in this

chapter, there are authorized to be appropriated $2,000,000 for the

fiscal year ending September 30, 1979, and for each of the two

succeeding fiscal years, ending September 30, 1980, and September

30, 1981, such sums as may be necessary: Provided, That none of

these appropriated sums shall be used to retire any indebtedness of

the Bank incurred pursuant to section 3017 of this title. Any sums

so appropriated shall remain available until expended.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 112, Aug. 20, 1978, 92 Stat. 510.)

-CITE-

12 USC Sec. 3023 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3023. Appeal procedures applicable upon denial or restriction

of application for assistance

-STATUTE-

(a) If an application for assistance under this chapter is denied

in whole or in part, the applicant shall be informed within thirty

days in writing of the reasons for the denial or restriction.

(b) Any applicant for assistance under this chapter receiving

notice of denial or restriction of the application may, within

thirty days of receipt of such notice, request the Board of

Directors to review the application and notice of denial or

restriction for a determination of whether the action of the Bank

was correctly within the terms of this chapter, the regulations,

and the policy of the Board. The Board shall consider the request

for review at its next meeting and promptly inform the applicant of

its determination and the reasons therefor.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 113, Aug. 20, 1978, 92 Stat. 510.)

-CITE-

12 USC Sec. 3024 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3024. Conflict of interest rules; adoption and publication;

requirements

-STATUTE-

The Board of Directors shall adopt and publish its own conflict

of interest rules which shall be no less stringent in effect than

the Federal Executive conflict of interest rules contained in

Executive Order Numbered 11222 in prohibiting participation or

action or the use of inside information for personal advantage on

any matter involving a corporation, trust, partnership, or

cooperative organization in which a board member, officer, or

employee holds a substantial financial interest or holds a position

as board member or senior officer, the activities of which

organization might be relevant to, be competitive with, or be

inconsistent with the objectives of any bank created under this

chapter. These rules shall require -

(1) each nominee for elected membership on the Board

established under this chapter to make public and file with the

election official before the date of election a statement of his

financial interest and position, if any, in such organizations;

and

(2) each senior executive officer and appointed member of the

Board to file with the appointing officer, before entering that

office a statement of his financial interest and position, if

any, in such organizations, which shall be available for

inspection upon request.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 114, Aug. 20, 1978, 92 Stat. 510;

Pub. L. 97-35, title III, Sec. 396(f), Aug. 13, 1981, 95 Stat.

440.)

-REFTEXT-

REFERENCES IN TEXT

Executive Order Numbered 11222, referred to in text, which was

formerly set out as a note under section 201 of Title 18, Crimes

and Criminal Procedure, was revoked by Ex. Ord. No. 12674, Sec.

501(a), Apr. 12, 1989, 54 F.R. 15161.

-MISC2-

AMENDMENTS

1981 - Pub. L. 97-35 struck out provisions authorizing section to

remain in effect until the Final Government Equity Redemption Date.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective on the day after the Final

Government Equity Redemption Date (Dec. 31, 1981), see section

396(i) of Pub. L. 97-35, set out as a note under section 3011 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3051 of this title.

-CITE-

12 USC Sec. 3025 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3025. Examination and audit

-STATUTE-

The Farm Credit Administration and the General Accounting Office

are hereby authorized and directed to examine and audit the Bank.

Reports regarding such examinations and audits shall be promptly

forwarded to both Houses of the Congress. The Bank shall reimburse

the Farm Credit Administration for the costs of any examination or

audit conducted by the Farm Credit Administration.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 115, Aug. 20, 1978, 92 Stat. 511;

Pub. L. 97-35, title III, Sec. 394(a)(1), Aug. 13, 1981, 95 Stat.

436.)

-MISC1-

AMENDMENTS

1981 - Pub. L. 97-35 substituted provisions relating to

examination and audit by the Farm Credit Administration and the

General Accounting Office, for provisions relating to annual

examinations and audits by an agency or instrumentality of the

Federal Government designated by the President.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 394(a)(2) of Pub. L. 97-35 provided that: ''The amendment

made by paragraph (1) (amending this section) shall take effect on

the day after the Final Government Equity Redemption Date (Dec. 31,

1981).'' For definition of ''Final Government Equity Redemption

Date'', see section 396(a) of Pub. L. 97-35, set out as a note

under section 3012 of this title.

-CITE-

12 USC Sec. 3026 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER I - ESTABLISHMENT AND OPERATION

-HEAD-

Sec. 3026. Acceleration of the Final Government Equity Redemption

Date

-STATUTE-

(a)(1)(A) The Final Government Equity Redemption Date shall occur

on December 31, 1981, or not later than 10 days after the date of

the enactment of the first Act providing for appropriations for

fiscal year 1982 (other than continuing appropriations) for the

Department of Housing and Urban Development and Independent

Agencies, whichever occurs later.

(B) Not later than 5 days after the Final Government Equity

Redemption Date, the Secretary of the Treasury shall publish a

notice in the Federal Register indicating the day on which the

Final Government Equity Redemption Date occurred.

(2)(A) Before the Final Government Equity Redemption Date, the

Secretary of the Treasury shall purchase all class A stock for

which the Congress has appropriated funds.

(B) After the Final Government Equity Redemption Date, the

Secretary of the Treasury shall not purchase any class A stock.

(3)(A) On the Final Government Equity Redemption Date, all class

A stock held by the Secretary of the Treasury on such date shall be

redeemed by the Bank in exchange for class A notes which are issued

by the Bank to the Secretary of the Treasury on behalf of the

United States and which have a total face value equal to the total

par value of the class A stock which is so redeemed, plus any

unpaid dividends on such stock.

(B) During the period beginning on the Final Government Equity

Redemption Date and ending on December 31, 1990, not less than 30

percent of the revenue derived from the sale of stock by the Bank,

other than the sale of class B stock or class C stock, shall be

used, upon receipt, to retire class A notes.

(C) After December 31, 1990, the Bank shall maintain a repayment

schedule for class A notes which will assure full repayment of all

class A notes not later than December 31, 2020. The requirement

specified in the previous sentence is in addition to the

requirement regarding the redemption of class A notes which is

specified in section 3014(c) of this title.

(b)(1) The United States shall not be responsible for any

obligation of the Bank which is incurred after the Final Government

Equity Redemption Date.

(2) As soon as practicable after August 13, 1981, the Board shall

adopt bylaws which will assist in expediting and coordinating the

activities which will occur with respect to the Final Government

Equity Redemption Date.

-SOURCE-

(Pub. L. 95-351, title I, Sec. 116, as added Pub. L. 97-35, title

III, Sec. 391(a)(1), Aug. 13, 1981, 95 Stat. 433.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of the first Act providing for

appropriations for fiscal year 1982 (other than continuing

appropriations) for the Department of Housing and Urban Development

and Independent Agencies, referred to in subsec. (a)(1)(A), is Dec.

23, 1981, the date of enactment of Pub. L. 97-101, 95 Stat. 1417,

known as the Department of Housing and Urban Development -

Independent Agencies Appropriation Act, 1982.

-MISC2-

EFFECTIVE DATE

Section 391(a)(2) of Pub. L. 97-35 provided that: ''The amendment

made by paragraph (1) (enacting this section) shall take effect on

the date of the enactment of this Act (Aug. 13, 1981).''

FINAL GOVERNMENT EQUITY REDEMPTION DATE ESTABLISHED

Pub. L. 97-101, title V, Sec. 501(36), Dec. 23, 1981, 95 Stat.

1440, provided in part that: ''the final Government equity

redemption date for the National Consumer Cooperative Bank shall

occur on December 31, 1981.''

-CITE-

12 USC SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT

AND TECHNICAL ASSISTANCE 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

.

-HEAD-

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 3015 of this title.

-CITE-

12 USC Sec. 3041 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3041. Establishment; appointment, etc., of Director

-STATUTE-

(a) There is hereby established within the Bank an Office of

Self-Help Development and Technical Assistance (hereinafter the

''Office'').

(b) The Office shall have a Director who shall be appointed by

the President, with the advice and consent of the Senate, and who

shall not be a member of the Board. Subject to review by the Board,

the Director shall promulgate and publish in the Federal Register

policies and procedures governing the operation of the Office.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 201, Aug. 20, 1978, 92 Stat. 511.)

-TRANS-

ABOLITION OF OFFICE AND PERFORMANCE OF FUNCTIONS

For abolition of the Office of Self-Help Development and

Technical Assistance and performance of the functions by a

nonprofit corporation upon the incorporation of the nonprofit

corporation, see section 3051 of this title.

-CITE-

12 USC Sec. 3042 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3042. Authorization of appropriations for advances; deposits

into separate Account in Bank; availability of amounts

-STATUTE-

There are hereby authorized to be appropriated to the Office for

the purpose of making advances under section 3043 of this title an

amount not to exceed $14,000,000 for fiscal year 1982. Any amounts

appropriated to the Office shall be deposited by the Office in a

separate account in the Bank (hereinafter the ''Account''), and

shall remain available until expended. Repayments of capital

investment advances made pursuant to section 3043(a) of this title

and interest supplement advances made pursuant to section 3043(b)

of this title and payments of interest thereon pursuant to section

3043(c) of this title shall also be deposited in the Account. No

other funds of the Bank shall be transferred into the Account. The

Account shall be used by the Office only as authorized in section

3043 of this title.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 202, Aug. 20, 1978, 92 Stat. 511;

Pub. L. 97-35, title III, Sec. 395(b)(1), Aug. 13, 1981, 95 Stat.

438.)

-MISC1-

AMENDMENTS

1981 - Pub. L. 97-35 substituted provisions authorizing

appropriations for fiscal year 1982, for provisions authorizing

appropriations for the fiscal year ending Sept. 30, 1979, and the

next two succeeding fiscal years.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

395(b)(3) of Pub. L. 97-35, set out as a note under section 3014 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3051 of this title.

-CITE-

12 USC Sec. 3043 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3043. Advances

-STATUTE-

(a) Capital investment advances; criteria

The Office may make a capital investment advance to any eligible

cooperative, either in conjunction with or without a loan if the

Office determines that -

(1)(A) the applicant's initial or supplemental capital

requirements exceeds its ability to obtain such capital through a

loan under section 3018 of this title or from other sources; or

(B) the membership of the applicant is, or will consist,

substantially of low-income persons, as defined by the Board of

Directors, or the applicant proposes to undertake to provide

specialized goods, services, or facilities to serve their needs;

and

(2) the applicant cannot obtain sufficient funds through a loan

under section 3018 of this title or otherwise, and the applicant

presents a plan which the Office determines will permit the

replacement of a capital investment advance out of member

equities within a period not to exceed thirty years.

(b) Interest supplement advances; criteria; amount

The Office may make advances to pay all or part of the interest

payable to the Bank or any other lender by an eligible cooperative

applicant which the Office determines cannot pay a market rate of

interest because it sells goods or services to, or provides

facilities for the use of, persons of low income: Provided, That

such advances will not exceed an amount equal to 4 per centum of

the principal amount of the indebtedness of such applicant to the

Bank or such other lender for any year in which the net income of

the cooperative is insufficient to meet scheduled interest

payments.

(c) Interest rate applicable to advances

Capital investment advances made by the Office pursuant to

subsection (a) of this section and interest supplement advances

made by the Office pursuant to subsection (b) of this section shall

bear interest at a rate determined by the Board of Directors of the

Bank, and the Board of Directors may authorize an interest rate

applicable to such advances lower than the rate applicable to loans

by the Bank pursuant to section 3018 of this title.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 203, Aug. 20, 1978, 92 Stat. 512;

Pub. L. 97-35, title III, Sec. 396(g), Aug. 13, 1981, 95 Stat.

440.)

-MISC1-

AMENDMENTS

1981 - Subsecs. (a), (b). Pub. L. 97-35 struck out references to

the Account wherever appearing.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective on the day after the Final

Government Equity Redemption Date (Dec. 31, 1981), see section

396(i) of Pub. L. 97-35, set out as a note under section 3011 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3042, 3051 of this title.

-CITE-

12 USC Sec. 3044 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3044. Services and information for organization, financing,

and management of cooperatives; availability; agreements for

development and dissemination; funding

-STATUTE-

The Office shall make available information and services

concerning the organization, financing, and management of

cooperatives to best achieve the objectives of this chapter and to

best provide the means through which various types of goods,

services, and facilities can be made available to members and

patrons. The Office may enter into agreements with other agencies

of Federal, State, and local governments, colleges and

universities, foundations, or other organizations for the

development and dissemination of such information, and services

described in this subchapter. The Office may make or accept grants

or transfer of funds for such purposes.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 204, Aug. 20, 1978, 92 Stat. 512.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3051 of this title.

-CITE-

12 USC Sec. 3045 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3045. Investigations and surveys respecting new services,

etc., by cooperative not-for-profit organizations

-STATUTE-

The Office may undertake investigations of new types of services

which can more effectively be provided through cooperative

not-for-profit organizations and make surveys of areas where the

increased use of such organizations will contribute to the economic

well-being of the community.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 205, Aug. 20, 1978, 92 Stat. 512.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3051 of this title.

-CITE-

12 USC Sec. 3046 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3046. Financial analysis and market surveys at request of

eligible cooperative

-STATUTE-

The Office may, at the request of any eligible cooperative,

provide a financial analysis of the applicant's capital structure

and needs and its cost of operations, survey the market for the

goods or services the cooperative makes or desires to make

available to its members or patrons or the users of its facilities.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 206, Aug. 20, 1978, 92 Stat. 513.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3051 of this title.

-CITE-

12 USC Sec. 3047 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3047. Programs for training directors and staff of eligible

cooperatives, and public education; development and

availability; scope and implementation

-STATUTE-

The Office shall develop and make available, alone or in concert

with other organizations, a program for training directors and

staff of eligible cooperatives to improve their understanding of

their responsibilities; the problems of and solutions for effective

and efficient operation of their organizations or of cooperatives

in general; and may by any means it deems appropriate, conduct

membership studies, provide membership education programs, and

programs for informing consumers and the general public of the

advantages of cooperative action. Management supervision, review,

and consultations shall be available from the Office to any

eligible cooperative.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 207, Aug. 20, 1978, 92 Stat. 513.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3051 of this title.

-CITE-

12 USC Sec. 3048 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3048. Cooperation with Federal agencies offering programs for

consumer cooperatives in disseminating information

-STATUTE-

The Office shall work closely with all United States Government

agencies offering programs for which consumer cooperatives may be

eligible to assure that information concerning all such programs is

made available to eligible cooperatives.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 208, Aug. 20, 1978, 92 Stat. 513.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3051 of this title.

-CITE-

12 USC Sec. 3049 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3049. Authorization of appropriations for administration;

availability of amounts

-STATUTE-

There are authorized to be appropriated to the Office $2,000,000

for the fiscal year ending September 30, 1979, and for each of the

two succeeding fiscal years, such sums as may be necessary for the

administration of this subchapter. Any sums so appropriated shall

remain available until expended.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 209, Aug. 20, 1978, 92 Stat. 513.)

-CITE-

12 USC Sec. 3050 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3050. Fees for providing technical assistance services;

waiver; accounting and availability

-STATUTE-

The Office may make the technical assistance services under this

subchapter available for such fees as it may establish, except that

such services as the Office may determine may be made available

without charge to eligible cooperatives depending on the nature of

the services or on ability to pay. Any fees collected shall be

accounted for separately and be available for expenses of the

Office.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 210, Aug. 20, 1978, 92 Stat. 513.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3051 of this title.

-CITE-

12 USC Sec. 3051 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 31 - NATIONAL CONSUMER COOPERATIVE BANK

SUBCHAPTER II - OFFICE OF SELF-HELP DEVELOPMENT AND TECHNICAL

ASSISTANCE

-HEAD-

Sec. 3051. Nonprofit corporation

-STATUTE-

(a) Office of Self-Help Development and Technical Assistance

abolished; transfer of assets, etc.

(1) Upon the incorporation of the nonprofit corporation described

in subsection (b) of this section, the Office of Self-Help

Development and Technical Assistance is hereby abolished.

(2)(A) If the nonprofit corporation described in subsection (b)

of this section agrees to accept the liabilities of the Office, the

Bank, notwithstanding any other provision of law, shall transfer

all assets, liabilities, and property of the Office to such

nonprofit corporation on the day on which such nonprofit

corporation is incorporated.

(B) Such assets shall include all sums which are appropriated to

the Office by the Congress and all sums which are contained in the

Account established pursuant to section 3042 of this title. If any

such sums are appropriated after the date on which the transfer

described in subparagraph (A) occurs, the Bank shall promptly

transfer such sums to such nonprofit corporation.

(b) Establishment; Board of Directors; functions, etc.

(1) As soon as possible after August 13, 1981, the Board shall

establish a nonprofit corporation under the laws of the District of

Columbia and, notwithstanding the laws of the District of Columbia,

name the directors of such nonprofit corporation.

(2) Notwithstanding the laws of the District of Columbia, the

Board of Directors of such nonprofit corporation shall -

(A) select an executive director who shall be responsible for

the administration of such nonprofit corporation;

(B) set the compensation of such executive director and the

other employees of such nonprofit corporation;

(C) promulgate and publish the policies of such nonprofit

corporation and make such policies available at all times to

eligible cooperatives; and

(D) perform the functions specified in subparagraphs (A) and

(C) of paragraph (3).

(3) Such nonprofit corporation shall only perform -

(A) the functions which are authorized to be performed pursuant

to sections 3043 through 3048 of this title and section 3050 of

this title;

(B) such functions as are necessary to comply with the laws

under which it was incorporated in the District of Columbia; and

(C) such functions as are necessary to remain qualified as an

organization described in section 501(c)(3) of title 26.

(4) Notwithstanding any other provision of law -

(A) the Bank may provide administrative or staff support to

such nonprofit corporation; and

(B) any member of the Board of Directors of the Bank may serve

as a member of the Board of Directors of such nonprofit

corporation.

(c) Treatment for tax purposes

(1) Notwithstanding any other provision of law, such nonprofit

corporation shall be deemed to be, and treated as, qualified as an

organization described in section 501(c)(3) of title 26 from the

date on which such nonprofit corporation is established under the

laws of the District of Columbia until the date on which the

Internal Revenue Service makes a final determination on the

application which such nonprofit corporation will submit to the

Internal Revenue Service seeking status as an organization

qualifying under such section.

(2) When performed by such nonprofit corporation, the functions

described in subsection (b)(3)(A) of this section shall be deemed

to be performed for ''charitable purposes'' within the meaning of

section 501(c)(3) of title 26.

(d) Contributions from the Bank

(1) The Board of Directors of the Bank may make contributions to

the nonprofit corporation in such amounts as the Board of Directors

of the Bank deems appropriate, except that -

(A) such contributions may be made only out of the Bank's

earnings, determined in accordance with generally accepted

accounting principles; and

(B) the Bank shall set aside amounts sufficient to satisfy its

obligations to the Secretary of the Treasury for payments of

principal and interest on class A notes and other debt before

making any contributions to such nonprofit corporation.

(2) During any period in which the nonprofit corporation

described in subsection (b) of this section is qualified as an

organization described in section 501(c)(3) of title 26,

contributions made by the Bank pursuant to paragraph (1) shall be

treated as charitable contributions within the meaning of section

170(c)(2) of title 26, and may be deducted notwithstanding the

provisions of section 170(b)(2) of title 26.

(3) During any period in which the nonprofit corporation

described in subsection (b) of this section is qualified as an

organization described in section 501(c)(3) of title 26,

contributions to such nonprofit corporation by any person shall

qualify as charitable contributions, as defined in section 170(c)

of title 26, for purposes of the charitable contribution deduction

provided for in section 170(a) of title 26, and shall also qualify

for the deductions for estate and gift tax purposes provided for in

sections 2055 and 2522 of title 26.

(e) Conflict of interest rules

Notwithstanding the laws of the District of Columbia, the Board

of Directors of such nonprofit corporation shall adopt and publish

its own conflict of interest rules which shall be no less stringent

in effect than the conflict of interest provisions adopted by the

Board of Directors of the Bank pursuant to section 3024 of this

title.

-SOURCE-

(Pub. L. 95-351, title II, Sec. 211, as added Pub. L. 97-35, title

III, Sec. 395(a), Aug. 13, 1981, 95 Stat. 437; amended Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.)

-MISC1-

AMENDMENTS

1986 - Subsecs. (b)(3)(C), (c), (d)(2), (3). Pub. L. 99-514

substituted ''Internal Revenue Code of 1986'' for ''Internal

Revenue Code of 1954'' wherever appearing, which for purposes of

codification was translated as ''title 26'' thus requiring no

change in text.

-CITE-