Definitions

(1) For purposes of this Chapter, unless the context otherwise provides: (a) “Affiliate” of an enterprise means a person that controls, is controlled by, or is under common control with, the enterprise. “Control” as used herein means twenty-five percent or greater stock ownership. (b) “Associational Common Bond” means a current, unifying factor among a group of persons, that is based on membership in a bona fide organization whose primary purpose is other than providing eligibility for credit union services. Such an organization must be primarily composed of natural persons who are eligible to participate in the organization’s activities that develop common loyalties, mutual benefits and mutual interests. Such an organization also must have clearly defined membership eligibility requirements, and must hold regular meetings open to all members. The common bond for an associational group cannot be established simply on the basis that the association exists. In determining whether a group satisfies associational common bond requirements, the Commissioner will consider the totality of the circumstances, such as: whether members pay dues; whether members participate in the furtherance of the goals of the association; whether the members have voting rights; whether the association maintains a membership list; the association’s membership eligibility requirements; the frequency of meetings; and, whether the association sponsors other activities which clearly demonstrate that the members of the group meet and interact regularly to accomplish the objectives of the association. Students of an institution or members of a church have an associational common bond and may qualify without having to produce a charter or bylaws. The following associations do not have a sufficient associational common bond: associations formed primarily to obtain credit union membership or associations based on a client or customer relationship, such as an insurance company’s customers or a buyer’s club. The association itself may be included in the field of membership. (c) “Community Common Bond” means a current unifying factor among a group of persons and/or entities that is based on residence or employment within a well-defined geographic area, that is recognized by those who live or work there as a neighborhood, community, or rural district. (d) “Credit union” means a credit union organized and operating under Title 45, chapter 4. CREDIT UNION FIELD OF MEMBERSHIP EXPANSIONS CHAPTER 0180-29 (e) “Commissioner” means the Commissioner of the Tennessee Department of Financial Institutions. (f) “Occupational Common bond” means a current, unifying factor among a group of natural persons that is based on employment by or a work-related relationship with a specified employer. Persons sharing this common bond may be geographically dispersed. Employees of a parent corporation and its subsidiaries and persons under contract to work regularly for an enterprise may be considered under a single occupational common bond. Each category to be served (e.g., subsidiaries, contractors) should be separately listed in the bylaws. All occupational common bonds should include a geographic designation. The employer may also be included in the common bond.