---
kind: "section"
citation: "12 U.S.C. § 1795d"
title: "12"
title_heading: "Banks and Banking"
number: "1795d"
heading: "Capital stock"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1795d"
units:
  - "Chapter 14 — Federal Credit Unions"
  - "Subchapter III — Central Liquidity Facility"
---

# §1795d. Capital stock

- (a) **Opening of books; minimum subscription—** As soon as practicable, the [Board](/usc/12/1752.md?p=4) shall open books for subscriptions to the capital stock of the Facility. The minimum subscription shall be $50.
- (b) **Requirements—** The capital stock of the Facility—
  - (1) shall be divided into shares having a par value of $50 each;
  - (2) shall be paid for with cash or with securities of the United States or any Agency thereof in accordance with requirements the [Board](/usc/12/1752.md?p=4) may impose;
  - (3) shall share in dividend distributions at rates determined by the [Board](/usc/12/1752.md?p=4). However, rates on the required capital stock shall be without preference; and
  - (4) shall not be transferred or hypothecated except as provided for herein.
- (c) **Redemption of stock—** When circumstances require that all or a portion of a [member](/usc/12/1795a.md?p=4)’s stock be redeemed by the Facility, the [Board](/usc/12/1752.md?p=4) shall pay an amount equal to what the [member](/usc/12/1795a.md?p=4) originally paid for the stock less any amount owed by the [member](/usc/12/1795a.md?p=4) to the Facility.
- (d) **Use of subscription amount—** At least one-half of the payment for the subscription amount required for membership under [section 1795c of this title](/usc/12/1795c.md) shall be transferred to the Facility. The remainder may be held by the [member](/usc/12/1795a.md?p=4) on call of the [Board](/usc/12/1752.md?p=4) and shall be invested in assets designated by the [Board](/usc/12/1752.md?p=4).
- (e) **Restriction on advances to credit unions—** A [credit](/usc/12/5481.md?p=7) union or [credit](/usc/12/5481.md?p=7) union group that becomes a [member](/usc/12/1795a.md?p=4) of the Facility later than six months after the date the [Board](/usc/12/1752.md?p=4) opens books for capital stock subscriptions, may not borrow or receive advances from the Facility without approval by the [Board](/usc/12/1752.md?p=4) for a period of six months after becoming a [member](/usc/12/1795a.md?p=4).

## Source credit

(June 26, 1934, ch. 750, title III, formerly subch. III, § 305, as added and amended Pub. L. 95–630, title V, § 502(b), title XVIII, § 1802, Nov. 10, 1978, 92 Stat. 3681, 3721; Pub. L. 96–221, title III, § 309(a)(2), (4), (b)(1), Mar. 31, 1980, 94 Stat. 148, 149.)

## Notes

### Editorial Notes

### Codification

Section 309(b)(1) of Pub. L. 96–221 redesignated subch. III as title III of act June 26, 1934, ch. 750, cited as a credit to this section.

### Amendments

1980—Subsec. (a). Pub. L. 96–221, § 309(a)(4), substituted “Board” for “Administrator”, such change having been previously made by Pub. L. 95–630.

Subsec. (b). Pub. L. 96–221, § 309(a)(2), (4), substituted “Board” for “Administrator” wherever appearing, such change having been previously made by Pub. L. 95–630, and in par. (3) inserted specific requirement that rates on required capital stock be without preference.

Subsecs. (c) to (e). Pub. L. 96–221, § 309(a)(4), substituted “Board” for “Administrator” wherever appearing, such change having been previously made by Pub. L. 95–630.

1978—Pub. L. 95–630, § 502(b), substituted “Board” for “Administrator” wherever appearing.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1978 Amendment

Amendment 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.

### Effective Date

Section effective Oct. 1, 1979, see section 1806 of Pub. L. 95–630, set out as a note under section 1795 of this title.