Federal Credit Union Modernization Act

Federal Credit Union Modernization Act - Redefines a Federal credit union as a cooperative association incorporated in accordance with the provisions of the Federal Credit Union Act for the purpose of encouraging thrift among its members and creating a source of credit at a fair and reasonable rate of interest and providing an opportunity for its members to use and control their own money in order to improve their economic and social condition.

Provides that the par value of federal credit union shares shall be in $5 multiples, not less than $5 and not more than $25 each (presently $5 per share). Requires the advice and consent of the National Credit Union Board concerning examination fees to be charged to credit unions.

Removes the maturity period limits on loans by a Federal credit union. Requires the approval of loans to a director or supervisory or credit committee in excess of $2500 to be approved by the board of directors. Removes the limits on the amount of funds that may be invested in loans to other credit unions, and expands the investment purposes for which credit union funds may be used.

Extends to a Federal credit union such interest powers as are implied for general corporations. Empowers a credit union to enter into cooperative marketing agreements for its members covering such services as group life insurance, temporary disability coverage, and health and accident plans; and to perform trust services for its members.

Expands the membership of federal credit unions. Permits shares, deposits, share certificates and share deposits to be issued in multiple-party accounts, and makes provisions for fund-withdrawals beneficial ownership, and survivorship rights in such multiple-party accounts.

Stipulates procedures for the management of a Federal credit union, including the election and terms of office of the directors and the supervisory and credit committees; the duties of officers and committees; and the methods of applying for and approving a Federal credit union loan. Provides for an annual audit by the supervisory committee, and for a declaring of dividends at such intervals as the board of directors may authorize.

Authorizes each Federal credit union to act as fiscal agent for and to receive deposits from a State government or political subdivision thereof and public housing corporations.

Allows Federal credit unions to hold payments and proceeds of obligations of the United States as well as appropriated and nonappropriated funds. (Amends 12 U.S.C. 1751 - 1772)