Purpose

(1) This chapter is adopted for the purpose of establishing the application process for a credit union to expand its field of membership to include a separate group with either: (a) a common bond of occupation or association; or (b) a group that constitutes a well-defined neighborhood, community or rural district. (2) Every state credit union’s bylaws define the group(s) the credit union is legally entitled to serve. The credit union must amend its bylaws to effectuate a field of membership expansion. Each bylaw amendment must be approved by the Commissioner. (3) State credit unions will be allowed to have, as a minimum, at least as much flexibility as federal credit unions in the regulation of fields of membership subject to regulation by the Commissioner for the purpose of maintaining the credit union’s safety and soundness. (4) All fields of membership in existence on the effective date of this rule shall not be impacted by this rule.