20 CSR 1105-3.040
Exemptions from
Limitations on Groups
PURPOSE: This rule sets forth the criteria
the Credit Union Commission may consider
when determining whether or not to approve
a request for an exemption from the limitations on groups, established pursuant to
370.081, RSMo.
(1) A credit union desiring to make an application to expand its field of membership pursuant to 370.081, RSMo by adding a group
with more than three thousand (3,000) members must request approval from the commission prior to submitting an application to the
director. The request should be submitted on
the form approved by the commission. The
request should also include proof in the form
of documentation or otherwise that is sufficient to show the group satisfies one of the
three
(3)
exceptions
listed
in
370.081.2(1)(a)–(c), RSMo. This proof can
include but is not limited to the following:
(A) Lack of volunteers or other resources.
1. Documentation in the form of letters
from the group desiring credit union membership indicating the lack of volunteer support.
2. Letters, surveys or petitions indicating that no group has shown an interest in
starting a credit union that would encompass
the group desiring to join the credit union;
(B) The desire of the new group to start
their own credit union.
1. Documentation showing the desire of
the group to join the existing credit union.
2. Documentation showing the desire of
the group to start their own credit union.
3. Documentation regarding the economic advisability of the group to start a
credit union including market expectations,
ability to build capital and reasonable accessibility.
4. The group must show it can meet the
criteria established in 4 CSR 105-3.030; and
(C) Group would be unlikely to operate in
a safe and a sound manner.
1. Documentation showing lack of management, lack of capital, lack of expertise to
operate a credit union, lack of volunteers and
lack of insurability or any action which would
result in abnormal risk.
(2) None of these categories are exclusive
allowing an applicant to use any combination
of proof to meet its burden under the statute.
AUTHORITY: section 370.063, RSMo Supp.
1999.* This rule originally filed as 4 CSR
105-3.040. Original rule filed Jan. 13, 2000,
effective Aug. 30, 2000. Moved to 20 CSR
1105-3.040, effective Aug. 28, 2006.
*Original authority: 370.063, RSMo 1998.