Credit Union Modernization Act

Credit Union Modernization Act - Title I: Empowers a Federal credit union to make loans and extend credit to members, other credit unions of financial organizations. Permits credit unions to make loans to members in accordance with the following: (1) loans shall be made in conformity with criteria established by the board of directors and with standards enumerated in the Act; (2) lines of credit shall be established to a stated maximum amount on certain terms and conditions which may be different than those for another borrower; (3) loans to other credit unions shall be approved by the board of directors and not exceed 1 percent of the unimpaired capital surplus; and (4) participation loans shall be in accordance with written policies of the board director.

Empowers the credit union to invest funds: (1) in securities or obligation guaranteed by the United States or any agency or instrumentality thereof; (2) in obligations of any State, or the several territories and possessions or any political subdivision thereof; and (3) in shares or obligation of any other organization which advances the development of the credit union.

Empowers credit unions to place their funds (1) in share accounts or deposits of savings which are insured by an agency of the Federal Government, or by any federally or State insured credit union; and (2) in demand or time deposits of banks whose accounts are insured by the Federal Deposit Insurance Corporation.

Empowers such credit union to sell all or part of its assets to another credit union, or to purchase assets from another such credit union and to permit members to transfer money to and from the member's account pursuant to regulations of the Board.

Stipulates that a Federal credit union shall be managed by a board of directors, a supervisory committee, and a credit committee.

Requires the board of directors to annually elect from their number an executive officer, one or more vice presidents, a treasurer, and a secretary.

States that the board of directors shall meet at least once a month and shall have general control of the direction of the Federal credit union. Enumerates the general functions and duties of the board of directors.

Permits the board of directors to elect a credit committee. Makes it the duty of the committee to hold such meetings as are necessary to consider applications for loans or lines of credit.

Requires each Federal credit union to maintain specified reserves against losses.

Requires each Federal credit union to maintain reserves against its demand deposits in the Central Liquidity Facility and in currency and coin in such other form as the Board of Governors of the Federal Reserve System may provide.

Authorizes the board to declare a dividend after provision for required reserves has been made.

Repeals provisions of the Federal Credit Union Act pertaining to: (1) District of Columbia credit unions; (2) approval of certificates; and (3) conditions upon conversion to Federal status.

Title II: Restructuring the National Credit Union Administration - Establishes in the executive branch of the Government an independent agency to be known as the National Credit Union Administration. Places the Administration under the management of a National Credit Union Administration Board.

States that the Board shall have three members having credit union experience appointed by the President with the advice and consent of the Senate.

Directs the Chairperson of the Board to be the spokesperson of the Board and to represent the Board and the National Credit Union Administration in its relations with other branches of the Government.

Permits any aggrieved party to seek to enjoin or obtain other appropriate remedy when a charter revocation or suspension or an involuntary liquidation is ordered by the Board.

Limits the powers of the Administration to the exercise of all powers specifically granted by the provisions of the Federal Credit Union Act and such incidental powers as shall be necessary to carry out the power so granted.

Title III: Share Insurance - Includes credit unions organized and operated according to the law of the trust territories in the Federal Credit union whose member accounts are insured by the Administrator.

Title IV: Central Liquidity Facility - Establishes the National Credit Union Central Liquidity Facility to: (1) provide funds to meet the liquidity needs of credit unions; and (2) provide for an orderly transfer of funds.

Vests management of the Facility in the Board of National Credit Union Administration.

Authorizes the National Credit Union Share Insurance Fund to advance $500,000 to be utilized by the Facility for initial organization and operating expenses.

Declares the initial capitalization of the Facility shall be by stock subscription consisting of shares having a par value of $50 each.

Enumerates the general powers of the Board in administering the Central Liquidity Facility.

Entitles any member of the Facility to apply on a form prescribed by regulations for advances. Authorizes the Board to deny or grant any application upon such terms as it may prescribe by regulations.

Authorizes the Secretary of the Treasury to purchase any obligation issued by the Board in the event of insufficient funds in the Facility to meet the obligations arising under this Act.

Directs the Board to prepare and submit to the President and to the Congress annually a full report on the activities of the Facility for the previous year.

Exempts the Facility from all taxation imposed the United States or by any State.