Field Of Membership Flashcards
The four types of federal charters are listed below give a brief description of each one
Single occupational common bond
Single associational common bond
Multiple common bond
Community 
Single occupational common bond-a credit union that serves a single occupational sponsor
Single associational common bond-a credit union that serves a single associational sponsor
Multiple common bond -a credit union that service more than one group, each of which has a common bond of occupation and or association
Community -a credit union, serving a specific geographic area, which will be specified in the credit unions charter 
A credit unions charter reads as follows employees of the Newman widget company that is partially owned. Subsidiary widgets toy works inc who work in or are paid from the Portland Ore headquarters and their immediate family what type of federal credit union charter does it operate under? 
Single, occupational common bond, FCU
Can corporations, partnerships, associations, and other non-natural person legal entities qualify for a membership in a federal credit union
Yes, but business entities have to be specifically listed in the credit unions charter
Membership eligibility is extended to individuals who are members of any immediate family or household what is NCUA’s definition of immediate family
NCUA defines immediate family as spouse child sibling, parent grandparent, or a grand child for the purposes of this definition, immediate family member includes step, parents stepchildren, step siblings, and adoptive relationships
Kathy Jones, the ABC Federal, credit Union, which of the following people will not qualify to join the credit union based on the definitions of immediate family and household, in IRPS 99-1? Will these people qualify if Kathy does not join the credit union even though she qualifies for membership?
A. Kathy’s housemate who has been sharing a townhouse with her for three years.
B. Kathy’s sister Elaine.
C. Kathy’s nephew, John.
D. Kathy’s stepson Alex.
Kathy’s nephew, John the Nephew can only join if his mother or father Kathy sibling first Joins the credit union. There must be an unbroken chain of membership based on NCUA‘s definition.
Yes, eligible immediate family members can join even if the potential primary remember does not unless the FCU has a policy to require the primary potential member Kathy to join first
Once a person becomes a member of the credit union, that person may remain a member until choosing to withdraw, or is expelled from membership how ever the credit union may limit the services provided to the member
what is the policy commonly known as
Once a member, always a member
A multiple group, federal credit union has both flexibility and restrictions in adding groups list at least one key flexibility, and one key restriction of the multiple group charter compared to single common bond. FCU’s
 The multiple group FCU has the flexibility to mix both employee association groups although each group Has to have a common bond. The groups don’t have to have anything in common with one another a
key restriction for a multiple group. FCU is a geographic restriction each added group has to be located within the service area of the credit union and within reasonable proximity of a service facility of the FCU
single common bond federal credit unions typically do not have geographic restrictions, so two plants in different parts of the US can be served by the same single common bond occupational FCU 
NCUA has changed its policy on overlaps and exclusionary clauses. What does this mean?
NCUA doesn’t think that a credit union can be protected from competing with other financial institutions, including all the credit unions overlaps involved in groups of less than 3000 potential primary members will be classified as an incidental overlap and NCUA will not conduct an overlap analysis, the federal credit union act requires NCUA to conduct an overlap analysis on a select group expansion for a multiple group credit union When the group consist of 3000 or more people if an FCU wants an existing exclusionary clause removed, it can apply to the regional office and the clause will be removed. For many years NCUA has authorize more than one community federal credit union to serve the same community so community credit unions have never been protected from overlaps by any type of credit union.
A community federal credit union must serve a well- defined local community neighborhood or rural District. why does NCUA’s field of membership manual include population limits 10.10. 
The population limits determine how much documentation the credit union will have to provide to NCUA with its application, seeking to expand or to convert from another type of charter or how much documentation a chartering group will have to present with its charter application. NCUA make certain pre assumptions that There is a well-defined local community so the applicant doesn’t have to prove that fact for instants NCUA will assume that any Area recognized as a single political jurisdiction Such as a city will be a community regardless of population there is no maximum population limitation that a community credit union might serve, but above certain population size ithe credit union has to convince NCUA that the area is a community by providing evidence that there is community interaction, and or common interests 
All request for adding new groups to an FCU’s single or multiple group charter must be made using official NCUA forms
what are these two forms an to which credit unions do they apply?
Credit union must have either form 4015 EZ for groups of 3000 or fewer people
Or form 4015 for groups of more than 3000 people
If a multiple group, FCU wants to add an underserved area what two things must it do, in addition to receiving permission from the NCUA
Since late 2005 only multiple group FCU are authorized to add new underserved areas. If an FCU wants to add an underserved area it must.
- Develop a business plan, specifying how it will serve the community.
- Maintain an office or facility in the area or have a pre-existing service facility within close proximity to the area determined on a case by case basis.
If a federal credit union serve in one company, subject to any geographic restrictions
No, the single common bond credit union will list in its charter who it serves, but it can serve for instants the company’s plants throughout the country
Can a single common bond credit union that serves a manufacturing company’s employees add as a select group the employees of the local pizza parlor
No, it generally can’t add any select groups except ones that it can convince NCUA are very closely related to the companies operations
