Sec. 36a-438a. Field of membership. Expansion. Change in field of membership.
Sec. 36a-438a. Field of membership. Expansion. Change in field of membership. (a)(1) Except as provided in subdivision (2) of this subsection, the field of membership of a Connecticut credit union is limited to (A) a single common bond membership,
(B) a multiple common bond membership, or (C) persons within a well-defined community, neighborhood or rural district.
(2) The field of membership of a Connecticut credit union may include (A) members
of the immediate family or household of all persons included under subparagraphs (A),
(B) and (C) of subdivision (1) of this subsection, (B) organizers and employees of such
credit union, (C) the surviving spouse of a deceased member of such credit union, and (D)
notwithstanding any change in employment, occupation, residence or other condition
initially controlling the eligibility for membership in any Connecticut credit union, any
person properly admitted to membership in a Connecticut credit union. Such person
may continue membership therein during such person's lifetime.
(3) The field of membership of a Connecticut credit union under subparagraphs (A)
and (B) of subdivision (1) of this subsection may include associations and organizations
of individuals who are members of such credit union, partnerships in which the majority
of the partners are individuals who are members of such credit union, and corporations
in which the majority of whose shareholders are individuals who are members of such
credit union.
(4) The field of membership of a Connecticut credit union under subparagraph (C)
of subdivision (1) of this subsection may include groups located outside of the well-defined community, neighborhood or rural district such credit union serves that were
within such credit union's field of membership at the time it converted from a field of
membership specified in subparagraph (A) or (B) of said subdivision (1), provided such
credit union's continuing relationships with such groups are not exclusive and, if authorized under this chapter, other Connecticut credit unions may also provide services to
such groups. The commissioner may not approve an amendment to the bylaws of such
a credit union under this subdivision unless the commissioner determines in writing that
any potential harm that the expansion of the field of membership of such credit union
may have on any other Connecticut credit union and its members is clearly outweighed
in the public interest by the probable beneficial effect of the expansion in meeting the
convenience and needs of the members of the group proposed to be included in the field
of membership.
(b) Notwithstanding the provisions of subsection (a) of this section, the commissioner may authorize a Connecticut credit union with a multiple common bond membership to include in its field of membership any person within a well-defined community,
neighborhood or rural district if:
(1) The commissioner determines that the well-defined community, neighborhood
or rural district is (A) an investment area, as defined in Section 103(16) of the Community
Development Banking and Financial Institutions Act of 1994, 12 USC Section 4702(16),
and meets any additional requirements that the commissioner may impose; and (B)
underserved by other depository institutions, as defined in Section 19(b)(1)(A) of the
Federal Reserve Act, 12 USC Section 461(b), based on data of the commissioner and
federal supervisory agencies; and
(2) The Connecticut credit union establishes and maintains a main office or branch
in the well-defined community, neighborhood or rural district at which credit union
services are available.
(c) Any Connecticut credit union that is so authorized to expand its field of membership under subsection (b) of this section continues as a Connecticut credit union whose
field of membership is limited to a multiple common bond membership.
(d) (1) The commissioner may not approve an amendment to the bylaws of a Connecticut credit union with a multiple common bond membership to expand its field
of membership to add a group of five hundred or more potential members, excluding
individuals who are potentially eligible as members of the immediate family or household of a potential member, or persons within a well-defined community, neighborhood
or rural district, unless the commissioner determines in writing that (A) the Connecticut
credit union has not engaged in any material unsafe or unsound practice during the one-year period preceding the date on which the proposed amendment is filed with the
commissioner, (B) the Connecticut credit union is adequately capitalized, (C) the Connecticut credit union has the administrative capability to serve the proposed membership
group and the financial resources to meet the need for additional staff and assets to serve
the new membership group, (D) any potential harm that the expansion of the field of
membership of the Connecticut credit union may have on any other Connecticut credit
union and its members is clearly outweighed in the public interest by the probable beneficial effect of the expansion in meeting the convenience and needs of the members of
the group proposed to be included in the field of membership, and (E) formation of a
separate credit union by the group proposed to be included is not practicable and consistent with reasonable safety and soundness standards. A Connecticut credit union whose
field of membership is limited to a single common bond membership or multiple common bond membership that acquires as potential members persons within a well-defined
community, neighborhood or rural district, other than the well-defined community,
neighborhood or rural district specified in subdivision (1) of subsection (b) of this section, by merger, expansion or otherwise, shall become a Connecticut credit union whose
field of membership is limited to persons within a well-defined community, neighborhood or rural district.
(2) The commissioner may withhold or condition an approval of an amendment to
the bylaws sought by a community credit union, as defined in section 36a-37, under this
subsection pursuant to the provisions of section 36a-37d.
(3) The commissioner may approve an amendment to the bylaws of a Connecticut
credit union to change the field of membership without regard for the common bond
whenever the commissioner determines that continued operation of the Connecticut
credit union without the proposed amendment may result in liquidation or merger of
such credit union.
(P.A. 02-73, S. 39; P.A. 03-35, S. 3; 03-84, S. 48; 03-278, S. 93; P.A. 05-27, S. 1.)
History: P.A. 03-35 amended Subsec. (a)(2) by deleting former Subpara. (C), which allowed field of membership to
include any advisory director of a credit union, and redesignated existing Subparas. (D) and (E) as Subparas. (C), and (D);
P.A. 03-84 changed "Commissioner of Banking" to "commissioner", effective June 3, 2003; P.A. 03-278 made technical
changes in Subsec. (b), effective July 9, 2003; P.A. 05-27 amended Subsec. (a) to redesignate provision of Subdiv. (2) re
field of membership of Connecticut credit union under Subdiv. (1)(A) and (B) as Subdiv. (3), and to add Subdiv. (4) re
field of membership of Connecticut credit union under Subdiv. (1)(C).