ALEXANDRIA, Va. (6/13/14)--The deadline to comment on the National Credit Union Administration's common bond provisions of its chartering and field of membership rules is fast approaching. The Credit Union National Association is accepting comments through June 23, while the NCUA will accept comments through June 30.
The proposed amendments would prohibit an association forming primarily for the purpose of expanding credit union membership by expanding criteria in the "totality of circumstances" test, which is used by the NCUA to determine if an association meets its requirements.
Under the proposal, alumni associations, religious organizations, churches, homeowner associations, scouting groups, electric cooperatives and labor unions could be automatically included in a credit union's field of membership as long as such groups meet service area and other related requirements.
NCUA would grandfather existing members from all qualified associations that are currently in a federal credit union's field of membership.
NCUA also proposes to allow automatic approval for associations that have a "mission based on preserving or furthering the culture of a particular national or ethnic origin," and seeks input on other categories of associations that should receive automatic approval.
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