When a credit union is formed, its field of membership is set by its charter. However, with the right application, a credit union can amend its charter and expand its field of membership. Section 5 of a multiple common bond federal credit union’s charter contains information regarding a federal credit union’s field of membership and any select groups that the federal credit union (FCU) can serve. However, Section 5 can be amended to expand a FCU’s field of membership under certain circumstances. In this blog, I am going to discuss how a multiple common bond FCU can amend Section 5 in order to directly add a new select group to the FCU’s field of membership. Appendix B to Part 701, the Chartering and Field of Membership Manual (Manual), Section IV.B, contains instructions for adding a select group to a multiple common bond FCU’s charter.
Criteria for Adding a Select Group
Section IV.B.2 discusses criteria that must be met before the NCUA will approve of an amendment adding a select group to a FCU’s field of membership. The Manual lists the following requirements:
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