Criteria for Additional Membership Groups

PURPOSE: This rule sets forth the criteria the director of the Division of Credit Unions will apply in determining whether or not one or more additional groups may be included in the membership of an existing credit union. (1) The director will approve the addition of groups to a credit union’s field of membership, if the director determines in writing that the following criteria are met: (A) The credit union is operating in a safe and sound manner and is making satisfactory progress in addressing any adverse conditions, including but not limited to areas of concern identified in the most recent supervisory examination report, or other regulatory concerns that may exist; (B) The credit union is “adequately capitalized.” The commission defines adequately capitalized, exclusively for the purpose of adding new membership groups, to mean that the credit union has a net capital ratio of not less than seven percent (7%). The director may determine that a net capital ratio of less than seven percent (7%) is adequate if the credit union is making reasonable progress toward meeting the seven percent (7%) net capital requirement; (C) The credit union has the administrative capability and the financial resources to serve the proposed group; and (D) The formation of a separate credit union by such group is not practical and consistent with reasonable standards for the safe and sound operation of a credit union. AUTHORITY: section 370.063, RSMo Supp. 1998.* This rule originally filed as 4 CSR 105-3.020. Emergency rule filed July 1, 1999, effective July 12, 1999, expired Jan. 7, 2000. Original rule filed July 1, 1999, effective Jan. 30, 2000. Moved to 20 CSR 1105-3.020, effective Aug. 28, 2006. *Original authority: 370.063, RSMo 1998.