Enclosure 1, FCU Act, Section 106

(c) Supervision charge exception; waiver of
payment.—If the annual operating fee is composed of
separate charges, no supervision charge shall be payable
by a F ederal credit union, and the Board may waive
payment of any or all other charges comprising the fee,
with respect to the year in which its charter is issued, or in
which final distribution is made in its liquidation or the
charter is canceled.

§1757.

Powers.—A Federal credit union shall have
succession in its corporate name during its existence and
shall have power—
(1) to make contracts;
(2) to sue and be sued;

(d) Payment into Treasury of United States.—All
operating fees shall be deposited with the Treasurer of the
United States for the account of the Administration and
may be expended by the Board to defray the expenses
incurred in carrying out the provisions of this chapter
including the examination and supervision of Federal
credit unions.

(3) to adopt and use a co mmon seal and alter the
same at pleasure;
(4) to purchase, hold, and dispose of property
necessary or incidental to its operations;
(5) to make loans, the maturities of which shall not
exceed 15 years, except as otherwise provided herein, and
extend lines of credit to its members, to other credit
unions, and to credit union organizations and to
participate with other credit unions, credit union
organizations, or financial organizations in making loans
to credit union members in accordance with the
following:

(e) Investment of annual operating fees not needed
for current operations.—
(1) Upon request of the Board, the Secretary of the
Treasury shall invest and reinvest such portions of the
annual operating fees deposited under subsection (d) of
this section as the Board determines are not needed for
current operations.

(A) Loans to members shall be made in
conformity with criteria established by the board of
directors: Provided, That—

(2) Such investments may be made only in interest
bearing securities of the United States with maturities
requested by the Board bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding
marketable obligations of the United States of comparable
maturities.

(i) a residential real estate loan on a one-tofour-family dwelling, including an individual cooperative
unit, that is or will be the principal residence of a credit
union member, and which is secured by a first lien upon
such dwelling, may have a maturity not exceeding thirty
years or such other limits as shall be set by the National
Credit Union Administration Board (except that a loan on
an individual cooperative unit shall be adequately secured
as defined by the Board), subject to the rules and
regulations of the Board;

(3) All income derived from such investments and
reinvestments shall be deposited to the account of the
Administration described in subsection (d) of this section.

§1756.

§107

§106

Reports and examinations.—Federal credit
unions shall be under the supervision of the Board, and
shall make financial reports to it a s and when it may
require, but at least annually. Each Federal credit union
shall be subject to examination by, and for this purpose
shall make its books and records accessible to, any person
designated by the Board.

(ii) a l oan to finance the purchase of a mobile
home, which shall be secured by a first lien on such
mobile home, to be used by the credit union member as
his residence, a l oan for the repair, alteration, or
improvement of a residential dwelling which is the
residence of a credit union member, or a second mortgage
loan secured by a r esidential dwelling which is the
residence of a credit union member, shall have a maturity
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