The Federal Credit Union Act is an Act of Congress enacted in 1934. The purpose of the law was to make

credit Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...

available and promote thrift through a national system of nonprofit,

cooperative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-contro ...

credit unions A credit union, a type of financial institution similar to a commercial bank, is a member-owned nonprofit financial cooperative. Credit unions generally provide services to members similar to retail banks, including deposit accounts, provision ...

. This Act established the federal credit union system and created the

Bureau of Federal Credit Unions The Bureau of Federal Credit Unions was a federal agency in the United States that supervised and chartered federal credit unions from 1934 until 1970. The Bureau was created through the Federal Credit Union Act as part of the New Deal. It was sel ...

, the predecessor to the

National Credit Union Administration The National Credit Union Administration (NCUA) is a government-backed insurer of credit unions in the United States, one of two agencies that provide deposit insurance to depositors in U.S. depository institutions, the other being the Federa ...

, to charter and oversee federal credit unions. The general provisions in the Federal Act were based on the Massachusetts Credit Union Act of 1909,Presently codified at Mass. Gen. Laws ch. 171, §§ 1-84 (2008) and became the basis of many other state credit union laws. Under the provisions of the Federal Credit Union Act, a credit union may be chartered under either

federal Federal or foederal (archaic) may refer to: Politics General *Federal monarchy, a federation of monarchies *Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...

or state law, a system known as dual chartering, which is still in existence today. Credit union law in the U.S. built on earlier legislation such as that developed by

Franz Hermann Schulze-Delitzsch Franz Hermann Schulze-Delitzsch, also Hermann Schulze, (29 August 1808 – 29 April 1883) was a German politician and economist. He was responsible for the organizing of the world's first credit unions. He was also co-founder of the German Progre ...

in Germany and Alphonse Desjardins in Canada. Among the individuals responsible for formulating credit union legislation in the United States were Edward Filene,

Pierre Jay Pierre Jay (May 4, 1870 – November 24, 1949) was the first chairman of the Federal Reserve Bank of New York. Early life Jay was born on May 4, 1870 in Warwick, New York. He was the son of Rev. Peter Augustus Jay (1841–1875), a protestant ...

and

Roy Bergengren Roy F. Bergengren (June 14, 1879– November 11, 1955) was an American attorney and pioneer of the United States credit union movement. Hired by Edward Filene in July 1921 to head the Credit Union National Extension Bureau, Bergengren carried o ...

. The Act is amended periodically to evolve and remain a modern credit union law. This contemporary law, coupled with the NCUA Board's commitment to reduce regulatory burden, enables federal credit unions to offer a variety of services to meet the financial needs of their members. For example, in addition to basic passbook share, many federal credit unions offer share drafts, share certificates, and credit cards. Federal credit unions organized and operated in accordance with the Federal Credit Union Act are considered entities of the United States government and are tax-exempt under savings accounts.

References

External links

Federal Credit Union ActPDFdetails
as amended in the

GPO GPO may refer to: Government and politics * General Post Office, Dublin * General Post Office, in Britain * Social Security Government Pension Offset, a provision reducing benefits * Government Pharmaceutical Organization, a Thai state enterpris ...

br>Statute Compilations collection

National Credit Union Administration
(Title 12, Chapter VII) in the Code of Federal Regulations {{Bank regulation in the United States History of banking in the United States 1934 in law Credit Union Act New Deal legislation

See also

References

External links