(1) The membership of a credit union shall be limited to and consist of the incorporators to the articles of incorporation and such other persons within the common bond set forth in the bylaws as have been duly admitted members, have paid the required entrance fee or membership fee, or both, have subscribed for one or more shares and have paid the initial installment thereon, and have complied with such other requirements as the articles of incorporation or bylaws specify.
(2) Credit union membership may include:
(a) One or more groups, each having a common bond of occupation or association; or
(b) Persons who live or work in, or organizations located within, a well-defined local community, neighborhood or rural district.
(3) Credit union membership may also include any of the immediate family of a person who is eligible for membership in the credit union under subsection (2) of this section.
(4) For purposes of this section, a “well-defined local community, neighborhood or rural district” shall consist of one or more adjacent precincts, districts, cities, counties or other boundaries defined by the state or a unit of local government or by any state or local government agency.
(5) In determining whether adjacent precincts, districts, cities, counties or other boundaries defined by the state or a unit of local government or by any state or local government agency form a well-defined local community, neighborhood or rural district, the Director of the Department of Consumer and Business Services shall consider:
(a) Any interaction or shared interests that tie the precincts, districts, cities, counties or other boundaries together;
(b) The size of the population of the proposed well-defined local community, neighborhood or rural district;
(c) The size of the geographic area of the proposed well-defined local community, neighborhood or rural district; and
(d) Any other criteria that the director considers relevant in accordance with the purposes of this chapter.
(6)(a) A credit union may not add a group with a separate bond of occupation or association to its membership unless, at the time the group is added to the membership of the credit union, the group does not contain more than 3,000 members.
(b) The limitation in paragraph (a) of this subsection does not apply to:
(A) Any group the director determines could not feasibly or reasonably establish a new credit union due to a lack of volunteer resources, financial resources or other factors the director considers important to the likelihood of the successful formation of a new credit union; or
(B) Any group transferred to the credit union in connection with a merger, consolidation or transfer approved by the director, or in connection with the liquidation of another credit union.
(7) Notwithstanding subsection (2) of this section, a credit union whose membership includes one or more groups, each having a common bond of occupation or association, may add to its membership persons who live or work in, or organizations located within, a well-defined local community, neighborhood or rural district if:
(a) The director determines that the well-defined local community, neighborhood or rural district is underserved by other depository institutions, as defined in section 19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 461(b)(1)(A)), based on data of the National Credit Union Administration and the federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
(b) The credit union establishes and maintains an office or facility in the well-defined local community, neighborhood or rural district at which credit union services are available.
(8) In reviewing a proposed amendment to a credit union’s bylaws that would include an additional group within the credit union’s membership, the director shall consider:
(a) Whether, within the preceding year, the credit union has engaged in any unsafe or unsound practice that is material;
(b) Whether the credit union has the capitalization, administrative capability and financial resources to serve the additional group; and
(c) Other factors the director may prescribe by rule. [1975 c.652 §18; 1999 c.730 §1]
Section: Previous 723.130 723.132 723.134 723.135 723.136 723.152 723.156 723.172 723.176 723.182 723.184 723.186 723.188 723.192 723.196 NextLast modified: August 7, 2008