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| Acronyms(colloquial) | FCUA |
|---|---|
| Codification | |
| U.S.C. sections created | 12 USC § 1751 et al. |
| Agencies affected | National Credit Union Administration |
| Legislative history | |
| |
| United States Supreme Court cases | |
TheFederal Credit Union Act is anAct of Congress[1] enacted in 1934. The purpose of the law was to makecredit available and promote thrift through a national system ofnonprofit,cooperativecredit unions. This Act established the federalcredit union system and created theBureau of Federal Credit Unions, the predecessor to theNational Credit Union Administration, to charter and oversee federal credit unions. The general provisions in the Federal Act were based on the Massachusetts Credit Union Act of 1909,[2] 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 eitherfederal orstate law, a system known asdual chartering, which is still in existence today.
Credit union law in the U.S. built on earlier legislation such as that developed byFranz Hermann Schulze-Delitzsch in Germany andAlphonse Desjardins in Canada. Among the individuals responsible for formulating credit union legislation in the United States wereEdward Filene,Pierre Jay andRoy Bergengren.
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 under501(c)(1).[3]
