{"identifier":"/us/usc/t12/s1795d","title":12,"num":"\u00a7\u202f1795d.","heading":"Capital stock","text":"\u00a7\u202f1795d.\nCapital stock\n(a)\nOpening of books; minimum subscription\nAs soon as practicable, the Board shall open books for subscriptions to the capital stock of the Facility. The minimum subscription shall be $50.\n(b)\nRequirements\nThe capital stock of the Facility\u2014\n(1) shall be divided into shares having a par value of $50 each;\n(2) shall be paid for with cash or with securities of the United States or any Agency thereof in accordance with requirements the Board may impose;\n(3) shall share in dividend distributions at rates determined by the Board. However, rates on the required capital stock shall be without preference; and\n(4) shall not be transferred or hypothecated except as provided for herein.\n(c)\nRedemption of stock\nWhen circumstances require that all or a portion of a member\u2019s stock be redeemed by the Facility, the Board shall pay an amount equal to what the member originally paid for the stock less any amount owed by the member to the Facility.\n(d)\nUse of subscription amount\nAt least one-half of the payment for the subscription amount required for membership under\nsection 1795c of this title\n(e)\nRestriction on advances to credit unions\nA credit union or credit union group that becomes a member of the Facility later than six months after the date the Board opens books for capital stock subscriptions, may not borrow or receive advances from the Facility without approval by the Board for a period of six months after becoming a member.","url":"https://projectusc.org/usc/t12/s1795d.html","content":[{"t":"sec","id":"/us/usc/t12/s1795d","children":[{"t":"num","text":"\u00a7\u202f1795d."},{"t":"heading","text":"Capital stock"},{"t":"subsec","id":"/us/usc/t12/s1795d/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Opening of books; minimum subscription"},{"t":"content","children":[{"t":"p","text":"As soon as practicable, the Board shall open books for subscriptions to the capital stock of the Facility. The minimum subscription shall be $50.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1795d/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Requirements"},{"t":"chapeau","text":"The capital stock of the Facility\u2014"},{"t":"para","id":"/us/usc/t12/s1795d/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" shall be divided into shares having a par value of $50 each;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1795d/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" shall be paid for with cash or with securities of the United States or any Agency thereof in accordance with requirements the Board may impose;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1795d/b/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" shall share in dividend distributions at rates determined by the Board. However, rates on the required capital stock shall be without preference; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1795d/b/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" shall not be transferred or hypothecated except as provided for herein.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1795d/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Redemption of stock"},{"t":"content","children":[{"t":"p","text":"When circumstances require that all or a portion of a member\u2019s stock be redeemed by the Facility, the Board shall pay an amount equal to what the member originally paid for the stock less any amount owed by the member to the Facility.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1795d/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Use of subscription amount"},{"t":"content","children":[{"t":"p","text":"At least one-half of the payment for the subscription amount required for membership under ","children":[{"t":"ref","text":"section 1795c of this title","href":"/us/usc/t12/s1795c","tail":" shall be transferred to the Facility. The remainder may be held by the member on call of the Board and shall be invested in assets designated by the Board."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1795d/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Restriction on advances to credit unions"},{"t":"content","children":[{"t":"p","text":"A credit union or credit union group that becomes a member of the Facility later than six months after the date the Board opens books for capital stock subscriptions, may not borrow or receive advances from the Facility without approval by the Board for a period of six months after becoming a member.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}