We all know that credit union compliance officers are some of the hardest-working people on the planet.  With the myriad complex regulatory requirements that compliance officers have to contend with on a daily basis, it’s no wonder that compliance officers are highly stressed.  In fact, past surveys have found that 58 percent of compliance officers are up at night with job-related worries, and 60 percent have considered quitting because of job stress.  Does this resonate with you?

Keeping up with immensely difficult and complicated regulatory requirements is no small feat. And sometimes, with everything going on, it’s easy to get confused about even the most fundamental credit union requirements, like membership and par value.  NAFCU’s Compliance Team regularly fields these types of questions from our members so today let’s get back to basics, and review this threshold requirement for credit union service.

Par Value

Membership in a federal credit union requires an approved membership application and payment and maintenance of at least one par value share (as well as any applicable entrance fee).  The Federal Credit Union (FCU) Act requires that federal credit union members “shall each subscribe to at least one share of its stock and pay the initial installment thereon and a uniform entrance fee if required by the board of directors.”  See, 12 U.S.C. §1759(a).

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