U.S. Code » Title 12 » Chapter CHAPTER 14— FEDERAL CREDIT UNIONS › Subchapter SUBCHAPTER II— SHARE INSURANCE

12 U.S.C. § 1789

Administrative provisions

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(a) In carrying out the purposes of this subchapter, the Board may—(1) make contracts;(2) sue and be sued, complain and defend, in any court of law or equity, State or Federal. All suits of a civil nature at common law or in equity to which the Board shall be a party shall be deemed to arise under the laws of the United States, and the United States district courts shall have original jurisdiction thereof, without regard to the amount in controversy. The Board may, without bond or security, remove any such action, suit, or proceeding from a State court to the United States district court for the district or division embracing the place where the same is pending by following any procedure for removal now or hereafter in effect, except that any such suit to which the Board is a party in its capacity as liquidating agent of a State-chartered credit union and which involves only the rights or obligations of members, creditors, and such State credit union under State law shall not be deemed to arise under the laws of the United States. No attachment or execution shall be issued against the Board or its property before final judgment in any suit, action, or proceeding in any State, county, municipal, or United States court. The Board shall designate an agent upon whom service of process may be made in any State, territory, or jurisdiction in which any insured credit union is located;(3) pursue to final disposition by way of compromise or otherwise claims both for and against the United States (other than tort claims, claims involving administrative expenses, and claims in excess of $5,000 arising out of contracts for construction, repairs, and the purchase of supplies and materials) which are not in litigation and have not been referred to the Department of Justice;(4) to appoint such officers and employees as are not otherwise provided for in this chapter, to define their duties, fix their compensation, require bonds of them and fix the penalty thereof, and to dismiss at pleasure such officers or employees. Nothing in this chapter or any other Act shall be construed to prevent the appointment and compensation as an officer or employee of the Administration of any officer or employee of the United States in any board, commission, independent establishment, or executive department thereof;(5) employ experts and consultants or organizations thereof, as authorized by section 3109 of title 5;(6) prescribe the manner in which its general business may be conducted and the privileges granted to it by law may be exercised and enjoyed;(7) exercise all powers specifically granted by the provisions of this subchapter and such incidental powers as shall be necessary to carry out the power so granted;(8) make examinations of and require information and reports from insured credit unions, as provided in this subchapter;(9) act as liquidating agent;(10) delegate to any officer or employee of the Administration such of its functions as it deems appropriate; and(11) prescribe such rules and regulations as it may deem necessary or appropriate to carry out the provisions of this subchapter.(b) With respect to the financial operations arising by reason of this subchapter, the Board shall—(1) on an annual basis and prior to the submission of the detailed business-type budget required under paragraph (2)—(A) make publicly available and publish in the Federal Register a draft of the detailed business-type budget; and(B) hold a public hearing, with public notice provided of the hearing, during which the public may submit comments on the draft of the detailed business-type budget;(2) prepare annually and submit a detailed business-type budget as provided for wholly owned Government corporations by chapter 91 of title 31, which shall address any comment submitted by the public under paragraph (1)(B); and(3) maintain an integral set of accounts, which shall be audited by the Government Accountability Office in accordance with principles and procedures applicable to commercial corporate transactions, as provided by section 9105 11 See References in Text note below. of title 31.(June 26, 1934, ch. 750, title II, § 209, as added Pub. L. 91–468, § 1(3), Oct. 19, 1970, 84 Stat. 1014; amended Pub. L. 93–604, title VII, § 706, Jan. 2, 1975, 88 Stat. 1964; Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 109–351, title VII, § 726(24), Oct. 13, 2006, 120 Stat. 2003; Pub. L. 115–174, title II, § 212, May 24, 2018, 132 Stat. 1319.)Editorial NotesReferences in Text

Section 9105 of title 31, referred to in subsec. (b)(3), was amended generally by Pub. L. 101–576, title III, § 305, Nov. 15, 1990, 104 Stat. 2853, and as so amended no longer directs audits to be conducted in accordance with principles and procedures applicable to commercial corporate transactions.

Codification

In subsec. (a)(5), “section 3109 of title 5” substituted for “section 15 of the Administrative Expenses Act of 1946 (5 U.S.C. 55a)” on authority of Pub. L. 89–554, § 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.

In subsec. (b)(2), (3), “chapter 91 of title 31” and “section 9105 of title 31” substituted for “the Government Corporation Control Act [31 U.S.C. 841 et seq.]” and “section 105 of the Government Corporation Control Act [31 U.S.C. 850]”, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

Amendments

2018—Subsec. (b). Pub. L. 115–174 added par. (1), redesignated former pars. (1) and (2) as (2) and (3), respectively, and, in par. (2), inserted “detailed” after “submit a” and “, which shall address any comment submitted by the public under paragraph (1)(B)” after “title 31”.

2006—Subsec. (a)(8). Pub. L. 109–351 substituted a semicolon for period at end.

2004—Subsec. (b)(2). Pub. L. 108–271 substituted “Government Accountability Office” for “General Accounting Office”.

1978—Pub. L. 95–630 substituted “Board” for “Administrator” wherever appearing, “its” for “his”, and “it” for “he” and “him”, where appropriate.

1975—Subsec. (b)(2). Pub. L. 93–604 substituted “audited by the General Accounting Office” for “audited annually by the General Accounting Office”.

Statutory Notes and Related SubsidiariesEffective Date of 1978 Amendment

Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.

Notes of Decisions
Cited in 34 cases (5 in the last 5 years), 1976–2025 · leading case: James Perna v. Health One Credit Union, 983 F.3d 258 (6th Cir. 2020).
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James Perna v. Health One Credit Union, 983 F.3d 258 (6th Cir. 2020). · cites it 4× “The Board’s notice of removal relied on three jurisdictional statutes: a statute for suits involving the Board, 12 U.S.C. § 1789 (a)(2), the federal-question statute, 28 U.”
Nat'l Credit Union Admin. Bd. v. Regine, 749 F. Supp. 401 (D.R.I. 1990). · cites it 6× “§ 1345 , 12 U.S.C. § 1789 (a)(2), 28 U.S.C. § 1331 , and 18 U.”
Nasa Fed. Credit Union v. W. Jenkins Plumbing & Heating Co., 607 F. Supp. 2d 213 (D.D.C. 2009). · cites it 2× “§ 1332 (a), and federal question jurisdiction based upon the plaintiffs status as federal credit union, under 12 U.S.C. § 1789 (a)(2). NASA FCU moves to remand the case to the Superior Court of the District of Columbia, arguing that 28 U.”
United States v. Rivieccio, 661 F. Supp. 281 (E.D.N.Y 1987). “It is true that no statute specifically authorizes the United States to sue on behalf of the NCUA, which has the power to sue and be sued in its own right, 12 U.S.C. § 1789 . But the defendants’ argument founders when they maintain that the NCUA and the United States “are not…”
FDIC v. Keating, 12 F.3d 314 (1st Cir. 1993). “In noting that “[a] special statute [ 12 U.S.C. § 1789 (a)(2) (1988) ] gives [NCUA] the right to bring this appeal in federal court,” we also had occasion to observe that section 1789(a)(2) is similar to section 1819(b)(2).”
Fed. Deposit Ins. v. Keating, 812 F. Supp. 8 (D. Mass. 1993). · cites it 3× “at 483 , the court cited 12 U.S.C. § 1789 (a)(2) as a “special statute” conferring upon the Board “the right to bring [its] appeal in federal court.”
Am. Cas. Co. of Reading v. Fed. Sav. & Loan Ins., 704 F. Supp. 898 (E.D. Ark. 1989). “” See 12 U.S.C. § 1789 (b). Since an action brought by FirstSouth against its own officers and directors would have been expressly excluded from coverage by the Insured vs.”
Putnam v. DeRosa, 963 F.2d 480 (1st Cir. 1992). · cites it 2× “After the trial court’s decision, however, a federal regulatory board (the National Credit Union Administration) became conservator for Progressive.”
Savoy v. White, 753 F. Supp. 412 (D. Mass. 1990). · cites it 3× “12 U.S.C. § 1789 (a)(2). On October 5, 1990, the plaintiff filed a motion to remand to Middlesex Superior Court.”
Lafayette Fed. Credit Union v. NAT. CREDIT UNION, 960 F. Supp. 999 (E.D. Va. 1997). “[4] See 12 U.S.C. § 1789 (a)(2): (a) In carrying out the purposes of this subchapter, the Board may— * * * * * * (2) sue and be sued, complain and defend, in any court of law or equity, State or Federal.”
Itri v. Equibank, N.A., 464 A.2d 1336 (Pa. 1983). “” 12 U.S.C.A. § 1789 (a)(2). Thereafter, we made remarks which are quite appropriate to the case at bar; viz.”
Rosciti Constr., Inc. v. Lot 10 of East Greenwich Town Assessor's Plat 14, 754 F. Supp. 14 (D.R.I. 1991). · cites it 5× “” NCUA has submitted a three-page document, setting out succinctly its claim on the property as conservator for Fair-lawn Credit Union, as well as its removal powers under 12 U.S.C. § 1789 (a)(2), the section of the Federal Credit Union Act that confers upon NCUA power to act in…”
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