Section 4- Field of Membership Rules

Question 1

Name the four types of federal charters

Answer 1

1. Single-occupational, common-bond
2. Single-associational, common-bond
3. Multiple-occupational/associational, common-bond
4. Community

Question 2

Define Single-occupational common bond

Answer 2

When a CU serves a single-occupational sponsor, such as ABC Corporation.

Question 3

Define Single-associational common bond

Answer 3

When a CU serves a single associational sponsor, such as the University of Wisconsin Alumni Association.

Question 4

Define Multiple-occupational/associational common bond

Answer 4

When a CU serves more than one group, each of which has a common bond of occupation and/or association.

Question 5

Define a community charter

Answer 5

Based on a single, geographically well defined local community, neighborhood, or rural district where individuals have common interests and/or interact.

Question 6

How does NCUA define immediate family for field of membership purposes?

Answer 6

Spouse, child, sibling, parent, grandparent, or grandchild of the primary potential member. Includes step and adoptive relations as well.

Question 7

Can business entities qualify for membership in a federal credit union?

Answer 7

Yes, if specifically listed in the charter.

Question 8

Once joined, a person will remain a member until choosing to withdraw or expelled from membership. What is this policy commonly known as?

Answer 8

Once a member, always a member.

Question 9

What is classified as an incidental overlap?

Answer 9

Overlaps involving groups of less than 3,000 potential primary members.