[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR725.6]



[Page 591-592]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 725_NATIONAL CREDIT UNION ADMINISTRATION CENTRAL LIQUIDITY FACILITY

--Table of Contents

 

Sec. 725.6  Termination of membership.



    (a) A member of the Facility whose stock subscription constitutes 

less than 5 percent of total subscribed Facility stock may withdraw from 

membership in the Facility six months after notifying the NCUA Board in 

writing of its intention to do so.

    (b) A member of the Facility whose stock subscription constitutes 5 

percent or more of total subscribed Facility stock may withdraw from 

membership in the Facility twenty-four months after notifying the NCUA 

Board in writing of its intention to do so.

    (c) The NCUA Board may terminate membership in the Facility if, 

after the opportunity for a hearing, the NCUA Board determines the 

member has failed to comply with any provision of the National Credit 

Union Central Liquidity Facility Act or any regulation issued pursuant 

thereto. If membership is terminated under this subsection,



[[Page 592]]



the credit union will be required to obtain the approval of the NCUA 

Board before becoming a member of the Facility again. Such approval will 

be granted only if the NCUA Board is satisfied that the credit union 

will comply with such Act and regulations.

    (d)(1) If membership is terminated under any provision of this 

section, the terminated member's stock shall be redeemed upon 

termination. In such event, the Facility may retain any amount owed to 

the Facility by the member.

    (2) When a member natural person credit union withdraws from 

membership in a central credit union which is an Agent or a member of an 

Agent group, the stock subscription of the Agent, or in the case of an 

Agent group, the stock subscription of the Agent group representative, 

will be adjusted after the waiting period which would apply under 

paragraph (a) or (b) of this section if the withdrawing credit union 

were a member of the Facility.