1301:9-2-16 Field of membership.

(A) Any new charter, charter amendment, conversion, merger, or field of membership expansion pursuant to division (D)(1) of section 1733.05 of the Revised Code, the field of membership of a credit union shall be subject to the approval of the superintendent.

(B) The field of membership may include the families of members; that is, persons related by blood, adoption or marriage to or living in the same household with a person having the common bond, as well as surviving spouses of persons who have left the field of membership in good standing. When the individual member of a credit union leaves the field of membership, all persons who are members by virtue of his or her membership may continue as members.

(C) Pursuant to division (D)(1) of section 1733.05 of the Revised Code, the superintendent has established the following as field of membership expansions:

(1) Division (D)(1) of section 1733.05 of the Revised Code describes the addition of a group to the field of membership of a credit union if the articles of incorporation and, if appropriate, the code of regulations of such credit union authorize such field of membership expansion, and the superintendent approves in accordance with the rule;

(2) A clause in the field of membership provision of a credit union charter, under division (D)(1) of section 1733.05 of the Revised Code, creates a procedure which permits the following: a field of membership expansion without charter amendment facilitates inclusion of more than one occupational, associational or community group in the field of membership of that credit union on the condition that each group has its own common bond, and the superintendent approves in accordance with the rule.

(D) In its application to expand its field of membership, the applicant credit union shall submit to the superintendent the following:

(1) The articles of incorporation and, if appropriate, the code of regulations of the applicant credit union which authorize expansion of the field of membership to include such a group;

(2) The group shall be defined and described including, the number of persons in the group, the potential membership size of the group, the dispersion of the group, and the general characteristics of the sponsor of the group, if any;

(3) Evidence that the group is within the operational area of the home office or a service facility of the applicant credit union or the applicant credit union provides evidence of one or more of the following:

(a) The associational or occupational group expresses its desire to obtain the credit union’s services;

(b) The credit union has or will have the means or a process for providing credit union services to the group;

(d) The credit union meets any additional conditions or considerations the superintendent may deem reasonable for approval of the credit union’s application.

(4) The associational or occupational group, through its authorized representative, has requested service from the applicant credit union.

(5) The applicant credit union demonstrates it is financially and organizationally sound to provide credit union service to the group.

(6) Certification of the applicant credit union vote to approve extension of membership services to the group.

(E) For a multiple group field of membership approval, a credit union field of membership may include associational, occupational, and community groups provided each group has its own common bond.

(1) The superintendent shall require for multiple group field of membership approval of occupational, associational, and community groups the following:

(a) Evidence that each affected associational or occupational group has requested service from the applicant credit union;

(b) The applicant credit union is financially and organizationally sound to provide credit union service to each group;

(d) Each group shall be within the operational area of the home office or a service facility of the applicant credit union or the conditions of paragraphs (D)(3) and (D)(4) to (D)(6) of this rule have been satisfied.

(i) “Operational area” means an area accessible by the home office, a service facility, a shared branch, shared service facility, or any other means through which the credit union provides services that can reasonably be served by the applicant credit union as determined by the superintendent.

(ii) “Service facility” means any place of business of a state-chartered credit union in which member accounts are established, where payment on shares or share accounts is accepted or money is lent.

(2) A community group shall be limited to a well-defined neighborhood, community or rural district as determined by the superintendent. A multiple group field of membership may include groups having a common bond of occupation, association, and community. Any individual or group, as the case may be, that is within the defined neighborhood, community or rural district is eligible for membership in the community group, subject to the approval of the superintendent. A credit union may have within its field of membership more than one well-defined neighborhood, community or rural district.

(3) Groups may be found to exist within a well-defined neighborhood, community or rural district, for purposes of this rule, on the basis of the geographic location of the person’s residence, property, worship, school attendance, or employment. “Well-defined” means the proposed area has specific geographical boundaries, including a political subdivision of the state, or a clearly definable neighborhood.

(F) Subject to the applicable requirements and approval of the superintendent as identified in paragraphs (D) and (E) of this rule, for service to underserved communities:

(1) A field of membership may include, without regard to location, underserved communities, which are local communities, neighborhoods, or rural districts which are investment areas as defined in section 103(16) of the Community Development Banking and Financial Institutions Act of 1994. More than one credit union may serve the same underserved area.

(2) Once an underserved community has been added to the credit union’s field of membership, the credit union must establish and maintain an office or service facility in the community. A “service facility” is defined as a place where shares are accepted for members’ accounts, loan applications are accepted and loans are disbursed. This definition includes a credit union owned branch, a shared branch, an office or location operated on a regularly scheduled weekly basis, and a credit union owned electronic facility that meets these requirements, but not including an automated teller machine.

(3) The credit union adding the underserved community shall document that the community meets the definition of an underserved community in Ohio. The charter type of a credit union adding such a community group may change and the credit union may be able to receive the benefits afforded to low-income designated credit unions, such as:

(a) Expanded use of non-member deposits.

(b) Access to the community development revolving loan program for credit unions.

(4) The credit union must submit a business plan specifying how it will serve the underserved community. The business plan at a minimum must:

(a) Identify the credit, deposit, and other financial service needs of the community.

(b) Detail how the credit union plans to serve those needs.

(5) The credit union will be expected to regularly review the business plan to determine if the community is being adequately served. The superintendent may:

(a) Require periodic service status reports from a credit union about the underserved community to ensure that the needs of the area are being met.

(b) Require such reports before the superintendent permits a credit union to add an additional underserved community.

(G) “Association member” of a credit union is defined pursuant to division (E) of section 1733.01 of the Revised Code.

Replaces: 1301:9-2-16

Effective: 07/01/2006

R.C. 119.032 review dates: 11/15/2010

Promulgated Under: 119.03

Statutory Authority: 1733.41

Rule Amplifies: 1733.05

Prior Effective Dates: 12/31/99