1218
73d C ONGRESS . SESS. II . CH. 750. JUNE 26, 1934 . proper, the purpose of such fees being to defray, as far as prac- ticable, the administrative and supervisory costs incident to the carrying out of this Act . Reports and exami-
REPORTS AND EXAMINATIONS nations.. Financial statements SEc. 6 . Federal credit unions shall be under the supervision of required . the Governor, and shall make such financial reports to him (at least Exam ination s ; fee s to annually) as he may require . uire . Each Federal credit union shall be be charged .
y)
y subject to examination by, and for this purpose shall make its books and records accessible to any person designated by the Governor . The Governor shall fix a scale of examination fees designed, as far as is practicable, so that in each case the fee to be paid shall equal the expense of such examination, which fees shall be assessed against and paid by each Federal credit union promptly after the completion of any such examination : Provided, however, That if a Federal credit union has assets of less than $25,000 the Governor may accept the audit report of a practicing public account- ant in place of such examination and may relieve such Federal credit union of the obligation to pay the examination fee required by this section . Examination fees collected under the provisions of this section shall be deposited to the credit of the special fund created by section 5 hereof, and shall be available for the purposes specified in said section 5 . Proviso . Acceptance of audit by public accountant in accounts of small unions. Credit of examina- tion fees. Corporate powers. To make lim it ed loans to members. Interest rates. Proviso . Restrictions on loans to officers, etc . Endorsements . Repayments . Investment of funds . Deposits . To borrow limited amounts . Proviso . Di scount el igible paper with intermedi- ate banks, etc . POWERS SEO . 7. A Federal credit union shall have succession in its cor- porate na me during its existence and shall have p ower- M (1) To make contracts. 2 To sue and be sued. 3 To adopt and use a common seal and alter the same at pleasure . 4) To purchase, hold, and dispose of property necessary and incidental to its operations . (5) To make loans with maturities not exceeding two years to its members f or provident o r productive purposes upon such terms an d conditions as this Act and the bylaws provide and as the credit committee may approve, at rates of interest not exceeding 1 per centum per month on unpaid balances (inclusive of all charges inci- dent to making the loan) : Provided, That no loans to a director, officer, or member of a committee shall exceed the amount of his hold ings i n the Feder al cre dit un ion as repr esente d by s hares thereof. No director, officer, or committee member shall endorse for borrowers . A borrower may repay his loan, prior to maturity, in whole or in part on any business day . (6) To receive from its members payments on shares . (7) To invest its funds (a) in loans exclusively to members ; (b) in obligations of the United States of America, or securities fully guaranteed as to principal and interest thereby . (8) To make deposits in national banks and in State banks, trust companies, and mutual savings banks operating in accordance with the laws of the State in which the Federal credit union does business . (9) To borrow (from any source) in an aggregate amount not exceeding 50 per centum of its paid-in and unimpaired capital and surplus : Prov ided, That any Federal credit union may discount with or sell to any Federal intermediate credit bank any eligible obligations up to the amount of its paid-in and unimpaired capital, subject to suc h rules and r egulations as may be prescr ibed by the Gove rnor .
