12 U.S.C. § 3051 - Nonprofit corporation

12 USC 3051 - Nonprofit corporation

(a) Office of Self-Help Development and Technical Assistance abolished; transfer of assets, etc. 

(1) Upon the incorporation of the nonprofit">nonprofit corporation described in subsection (b) of this section, the Office of Self-Help Development and Technical Assistance is hereby abolished.
(2) 
(A) If the nonprofit">nonprofit corporation described in subsection (b) of this section agrees to accept the liabilities of the Office, the Bank, notwithstanding any other provision of law, shall transfer all assets, liabilities, and property of the Office to such nonprofit">nonprofit corporation on the day on which such nonprofit">nonprofit corporation is incorporated.
(B) Such assets shall include all sums which are appropriated to the Office by the Congress and all sums which are contained in the Account established pursuant to section 3042 of this title. If any such sums are appropriated after the date on which the transfer described in subparagraph (A) occurs, the Bank shall promptly transfer such sums to such nonprofit">nonprofit corporation.
(b) Establishment; Board of Directors; functions, etc. 

(1) As soon as possible after August 13, 1981, the Board shall establish a nonprofit">nonprofit corporation under the laws of the District of Columbia and, notwithstanding the laws of the District of Columbia, name the directors of such nonprofit">nonprofit corporation.
(2) Notwithstanding the laws of the District of Columbia, the Board of Directors of such nonprofit">nonprofit corporation shall
(A) select an executive director who shall be responsible for the administration of such nonprofit">nonprofit corporation;
(B) set the compensation of such executive director and the other employees of such nonprofit">nonprofit corporation;
(C) promulgate and publish the policies of such nonprofit">nonprofit corporation and make such policies available at all times to eligible cooperatives; and
(D) perform the functions specified in subparagraphs (A) and (C) of paragraph (3).
(3) Such nonprofit">nonprofit corporation shall only perform
(A) the functions which are authorized to be performed pursuant to sections 3043 through 3048 of this title and section 3050 of this title;
(B) such functions as are necessary to comply with the laws under which it was incorporated in the District of Columbia; and
(C) such functions as are necessary to remain qualified as an organization described in section 501 (c)(3) of title 26.
(4) Notwithstanding any other provision of law
(A) the Bank may provide administrative or staff support to such nonprofit">nonprofit corporation; and
(B) any member of the Board of Directors of the Bank may serve as a member of the Board of Directors of such nonprofit">nonprofit corporation.
(c) Treatment for tax purposes 

(1) Notwithstanding any other provision of law, such nonprofit">nonprofit corporation shall be deemed to be, and treated as, qualified as an organization described in section 501 (c)(3) of title 26 from the date on which such nonprofit">nonprofit corporation is established under the laws of the District of Columbia until the date on which the Internal Revenue Service makes a final determination on the application which such nonprofit">nonprofit corporation will submit to the Internal Revenue Service seeking status as an organization qualifying under such section.
(2) When performed by such nonprofit">nonprofit corporation, the functions described in subsection (b)(3)(A) of this section shall be deemed to be performed for charitable purposes within the meaning of section 501 (c)(3) of title 26.
(d) Contributions from the Bank 

(1) The Board of Directors of the Bank may make contributions to the nonprofit">nonprofit corporation in such amounts as the Board of Directors of the Bank deems appropriate, except that
(A) such contributions may be made only out of the Banks earnings, determined in accordance with generally accepted accounting principles; and
(B) the Bank shall set aside amounts sufficient to satisfy its obligations to the Secretary of the Treasury for payments of principal and interest on class A notes and other debt before making any contributions to such nonprofit">nonprofit corporation.
(2) During any period in which the nonprofit">nonprofit corporation described in subsection (b) of this section is qualified as an organization described in section 501 (c)(3) of title 26, contributions made by the Bank pursuant to paragraph (1) shall be treated as charitable contributions within the meaning of section 170 (c)(2) of title 26, and may be deducted notwithstanding the provisions of section 170 (b)(2) of title 26.
(3) During any period in which the nonprofit">nonprofit corporation described in subsection (b) of this section is qualified as an organization described in section 501 (c)(3) of title 26, contributions to such nonprofit">nonprofit corporation by any person shall qualify as charitable contributions, as defined in section 170 (c) of title 26, for purposes of the charitable contribution deduction provided for in section 170 (a) of title 26, and shall also qualify for the deductions for estate and gift tax purposes provided for in sections 2055 and 2522 of title 26.
(e) Conflict of interest rules 
Notwithstanding the laws of the District of Columbia, the Board of Directors of such nonprofit">nonprofit corporation shall adopt and publish its own conflict of interest rules which shall be no less stringent in effect than the conflict of interest provisions adopted by the Board of Directors of the Bank pursuant to section 3024 of this title.

Advertisement