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Compliance Outlook

Compliance Outlook. Field of Membership. Field of Membership. Credit unions continue to research new ways to serve their members and grow their field of membership.

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Compliance Outlook

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  1. Compliance Outlook Field of Membership

  2. Field of Membership • Credit unions continue to research new ways to serve their members and grow their field of membership. • Credit unions further define themselves and their operations by identifying their niche and determining who they want to serve.

  3. Field of Membership • Charter defines the credit unions Field of Membership: • Generally, a credit union may only offer share accounts and grant loans (and various other authorized services) to persons within the field of membership who have actually become members of the credit union.

  4. Field of Membership • Credit Union Membership Eligibility: • Immediate family members or household of a current member. • Employees of the credit union; • Retired credit union employees • Credit union volunteers; and • Spouses of persons who died while within the FOM of the credit union.

  5. Field of Membership • Once a Member, Always a Member • Under the Federal Credit Union Act, once a person becomes a member of the credit union, such person may remain a member of the credit union until the person chooses to withdraw or is expelled from the membership of the credit union. • NCUA

  6. Field of Membership • Charter distinctions based on Field of Membership • Single occupational common bond- employees of the same entity or related entities; • Single associational common bond- members and employees of a recognized association; • Multiple common bond- credit unions field of membership consists of more than one group, each of which has a common bond of occupation or association; and • Community credit unions- consists of people who live, work, worship, or attend school in the same well-defined local community, neighborhood, or rural district.

  7. Field of Membership • Field of Membership Manual • Field of membership is defined as the persons (including businesses, organizations and other legal entities) that a federal credit union is permitted to accept for membership.

  8. Field of Membership • Membership Expansion Considerations • Single occupational common bond - proposed group is very closely related to the common bond of the credit union and it is economically advisable. • Multiple common bond- reasonable geographic proximity, economically advisable, credit union is well capitalized and new common bond group could not form their own credit union. • Community credit unions– are geographic boundaries clearly defined, area is a well-defined local community, neighborhood or rural district, and residents of proposed community have common interests or interact with each other. • Trade, Industry or Profession (TIP) Expansions - common bond by virtue of producing similar products or services, or business and a business plan.

  9. Field of Membership • Low Income Credit Union Definition • Credit union where a majority of the residents in the credit unions area either earn less than 80% of the average for all wage earners as established by the U.S. Bureau of Labor Statistics, or whose annual household income falls at or below 80% of the median household income for the nation.

  10. Field of Membership • Credit unions with the low-income designation have greater flexibility to: • Accept non-member deposits insured by the NCUSIF; • Offer secondary capital accounts to strengthen their capital base; • Qualify to participate in special funding programs such as the Community Development Revolving Loan Program for Credit Unions, operated by the NCUA; and • Expand membership to other affiliated with the community.

  11. Thank you for joining me for this review of Field of Membership. Stay Tuned…….. Shawn Wolbert, CIA, CUCE Director CU System Relations 101 S. Washington Square, Suite 900 Lansing, MI 48933-1703 (800) 262-6285 Ext. 486 (734) 658-5427 Mobile Follow me on Twitter – Shawn Wolbert @ Go2CUGuru

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