(a) "Organization" means a corporation, limited liability company, partnership or association, trust, estate or other entity and a director, officer, employee, member, partner, personal representative, trustee or volunteer of the corporation, limited liability company, partnership or association, trust, estate or other entity.
(b) "Well-defined local community, neighborhood or rural district" means one or more adjacent precincts, districts, cities, counties or other boundaries defined by the state or a unit of local government or by a state or local government agency.
(2) The membership of a credit union is limited to and consists of the incorporators to the articles of incorporation and other persons within the common bond set forth in the bylaws that have been duly admitted as members, have paid any required entrance fee or membership fee and have complied with any other requirements that the articles of incorporation or bylaws specify.
(3) Credit union membership may include:
(a) One or more groups, each having a common bond of occupation or association; or
(b) Persons who live or work in, or organizations located within, a well-defined local community, neighborhood or rural district.
(4) Credit union membership may also include any of the immediate family of a person who is eligible for membership in the credit union under subsection (3) of this section. For the purposes of this subsection, "immediate family" includes an eligible member’s foster parent or legally appointed guardian.
(5) In determining whether adjacent precincts, districts, cities, counties or other boundaries defined by the state or a unit of local government or by any state or local government agency form a well-defined local community, neighborhood or rural district, the Director of the Department of Consumer and Business Services shall consider:
(a) Interactions or shared interests that tie the precincts, districts, cities, counties or other boundaries together;
(b) The size of the population of the proposed well-defined local community, neighborhood or rural district;
(c) The size of the geographic area of the proposed well-defined local community, neighborhood or rural district; and
(d) Other criteria that the director considers relevant in accordance with the purposes of this chapter.
(6)(a) A credit union may not add a group with a separate bond of occupation or association to the credit union’s membership unless, at the time the credit union adds the group to the credit union’s membership, the group does not contain more than 3,000 members.
(b) The limitation in paragraph (a) of this subsection does not apply to:
(A) A group the director determines could not feasibly or reasonably establish a new credit union because the group lacks volunteer resources, financial resources or other factors the director considers important for successfully forming a new credit union; or
(B) A group transferred to the credit union in connection with a merger, consolidation or transfer the director approved, or in connection with the liquidation of another credit union.
(7) Notwithstanding subsection (3) of this section, a credit union, the membership of which includes one or more groups that have a common bond of occupation or association, may add to the credit union’s membership persons who live or work in, or organizations located within, a well-defined local community, neighborhood or rural district if:
(a) The director determines that the well-defined local community, neighborhood or rural district is underserved by other depository institutions, as defined in section 19(b)(1)(A) of the Federal Reserve Act, 12 U.S.C. 461(b)(1)(A), based on data of the National Credit Union Administration and the federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. 1813; and
(b) The credit union establishes and maintains an office or facility in the well-defined local community, neighborhood or rural district at which credit union services are available.
(8) In reviewing a proposed amendment to a credit union’s bylaws that would include an additional group within the credit union’s membership, the director shall consider:
(a) Whether, within the preceding year, the credit union has engaged in any unsafe or unsound practice that is material;
(b) Whether the credit union has the capitalization, administrative capability and financial resources to serve the additional group; and
(c) Other factors the director may prescribe by rule. [1975 c.652 §18; 1999 c.730 §1; 2009 c.234 §3; 2015 c.458 §2]