(a) Regulation and examination of credit union organizations

(1) General examination and regulatory authority

A credit union organization shall be subject to examination and regulation by the Board to the same extent as that insured credit union.

(2) Examination by other banking agencies

The Board may authorize to make an examination of a credit union organization in accordance with paragraph (1) -

(A)

any Federal regulator ^[1] agency that supervises any activity of a credit union organization; or

(B)

any Federal banking agency that supervises any other person who maintains an ownership interest in a credit union organization.

(b) Applicability of section 1786

A credit union organization shall be subject to the provisions of section 1786 of this title as if the credit union organization were an insured credit union.

(c) Service performed by contract or otherwise

Notwithstanding subsection (a) of this section, if an insured credit union or a credit union organization that is regularly examined or subject to examination by the Board, causes to be performed for itself, by contract or otherwise, any service authorized under this chapter, or in the case of a State credit union, any applicable State law, whether on or off its premises -

(1)

such performance shall be subject to regulation and examination by the Board to the same extent as if such services were being performed by the insured credit union or credit union organization itself on its own premises; and

(2)

the insured credit union or credit union organization shall notify the Board of the existence of the service relationship not later than 30 days after the earlier of -

(A)

the date on which the contract is entered into; or

(B)

the date on which the performance of the service is initiated.

(d) Administration by Board

The Board may issue such regulations and orders as may be necessary to enable the Board to administer and carry out this section and to prevent evasion of this section.

(e) Definitions

For purposes of this section -

(1)

the term ''credit union organization'' means any entity that -

(A)

is not a credit union;

(B)

is an entity in which an insured credit union may lawfully hold an ownership interest or investment; and

(C)

is owned in whole or in part by an insured credit union; and

(2)

the term ''Federal banking agency'' has the same meaning as in section 1813 of this title.

(f) Expiration of authority

This section and all powers and authority of the Board under this section shall cease to be effective as of December 31, 2001