Why you might need an overlap letter to expand

When considering a field of membership expansion, you may run into an overlap with another credit union’s field of membership. Depending upon your charter type, you may need to submit an overlap letter to the NCUA.

Overlaps are permitted when the expansion’s beneficial impact on the convenience and needs of the proposed group outweighs any adverse effect on the overlapped credit union.

The NCUA rules vary for different charter types and bonds. See how an overlap letter might affect your specific charter type:

Community Charter: If you are a community credit union you are in luck! The NCUA  permits community credit unions to overlap any other charters without performing an overlap analysis.

 

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