# Organization and Operations of Federal Credit Unions
> **US National Credit Union Administration** · Final rule. · Published 1996-09-27 · Effective 1996-09-27 · 61 FR 50696
## Document
- **Document number:** 96-24457
- **Category:** final-rule
- **Agency:** US National Credit Union Administration
- **Federal Register citation:** 61 FR 50696
- **CFR reference:** 12 CFR 701
- **Publication date:** 1996-09-27
- **Effective date:** 1996-09-27
## Abstract

The final rule allows credit unions serving predominantly low- income members (LICU) to raise secondary capital from foundations and other philanthropic-minded institutional investors. The rule will enable LICUs to make more loans and improve other financial services for the groups and communities they serve. The rule also allows federal- and state-chartered LICUs to offer secondary capital accounts and incorporates the existing regulatory provisions concerning the designation of low-income status. The rule also amends NCUA's regulations so that secondary capital accounts are last in payout priorities in the event of an involuntary liquidation.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/1996/09/27/96-24457/organization-and-operations-of-federal-credit-unions)
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