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Chartering and Field of Membership
Plain English Summary
The NCUA Board is changing its rules about who can join credit unions. They are clarifying that requiring someone to buy a product or service to become a member won't automatically disqualify them from being part of a recognized association. This means that a relationship where a member buys something from the credit union can still be considered when deciding if a group is eligible for membership. Agents should be aware of these changes as they may affect how they advise clients about joining credit unions.
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The NCUA Board (Board) proposes to amend the associational common bond provisions of its chartering and field of membership (FOM) rules. The proposed FOM amendment would clarify that requiring the purchase of a product or service as a condition of membership no longer automatically bars eligibility as a recognized association. The Board does not believe such an automatic bar is required under the Federal Credit Union (FCU) Act, and a client-customer relationship as a condition of membership may still be incidental in a manner that permits an evaluation of the group's activities and overall circumstances.