370.081. Merger and consolidation of credit unions--additional member groups and geographic areas--appeals.
Merger and consolidation of credit unions--additional member groupsand geographic areas--appeals.
370.081. 1. A credit union may add to its membership additionalgroups or geographic areas that comply with the provisions of subsection 2of section 370.080 if the credit union meets the criteria set forth in thissection.
2. Except as provided in subdivisions (1), (2), and (3) of thissubsection, only employer groups with fewer than three thousand membersshall be eligible to be included in the credit union's field of membership,unless:
(1) Any employer group which the commission determines, in writingand in accordance with the guidelines it has set forth, could not feasiblyor reasonably establish a new single common-bond credit union because:
(a) The employer group lacks sufficient volunteer or other resourcesto support the efficient and effective operation of a credit union;
(b) The employer group does not meet the criteria which thecommission has determined to be important for the likelihood of success inestablishing and maintaining a new credit union;
(c) The employer group would be unlikely to operate a safe and soundcredit union;
(2) The groups are involved in an involuntary merger or when thedirector acts as a conservator or liquidating agent; or
(3) The groups are transferred from another credit union inconnection with a merger or consolidation approved by the director,provided when making this determination the director shall:
(a) Determine whether the service area of the merging credit union iscontiguous to the area served by the continuing credit union;
(b) Assess the breadth of the service area of the combined creditunions;
(c) Assess the ability of the continuing credit union to serve thecombined area; and
(d) Assess the number of voluntary mergers the acquiring credit unionhas requested, or received approval for, during the five-year periodpreceding the proposed merger.
The director shall not permit state-chartered credit unions to mergewithout a thorough assessment by the director that the combined field ofmembership is consistent with this chapter and is reasonable in terms ofsize, service area, and geographic location.
3. Notwithstanding subsection 2 of section 370.080, the director ofthe division of credit unions may allow the membership of a credit unionserving groups of occupation, association or employer to include any personwithin a proximate geographic area if:
(1) Such an area meets the definition of a low-income or underservedcommunity as defined by the credit union commission or the National CreditUnion Administration;
(2) A merger or consolidation has been approved by the director ofthe division of credit unions which involves any geographic area creditunion.
4. The credit union may apply and receive approval from the directorof the division of credit unions to include the proposed new occupation,employer, or association groups or geographic areas in the credit union'smembership. In the case of a new credit union application, the organizersof such credit union as provided in subsection 1 of section 370.080 shallspecify the membership group selected as provided in subsection 2 ofsection 370.080. If an existing credit union applies for a field ofmembership expansion, such credit union shall select either a geographicarea or occupation, employer, or association group as provided insubsection 2 of section 370.080 which shall be binding for all futureexpansions. When a credit union serving occupation, association, oremployer groups has converted to a geographic area credit union, thatcredit union shall not accept as members new groups that are headquarteredoutside the geographic area of the credit union, or new employees or newmembers of those groups who work or reside outside the geographic area ofthe credit union. Upon receipt of an application from a credit union toinclude a new group or new geographic area in its membership, and no laterthan five business days after an application has been received, thedirector shall cause notice of the application to be published in thedivision's electronic bulletin and sent electronically to any party who hasrequested notification of such applications. From the date such notice ispublished, there shall be a ten-business-day comment period during whichany person or entity desiring to do so may comment on such proposal inwriting. Comments received shall become a part of the credit union'sapplication file, subject to public inspection and copying. Within tendays after the comment period ends, the director of the division of creditunions shall issue a decision either granting or rejecting the creditunion's application and stating the reasons therefor. In addition to anyother requirements required by law or rule, prior to granting theapplication, the director of the division of credit unions shall determinethat:
(1) The credit union has the immediate ability to serve theadditional group or geographic area. In making this determination, thedirector shall consider the data required to be reported on an annual basisby the state-chartered credit unions that includes aggregated informationabout the census tracts in which members reside, the actual or estimatedannual income of members, and types and numbers of loans or extensions ofcredit for which members received approval. For the purposes of thissection, the term "member data" shall mean information on the income levelsof credit union members that credit unions are required to report;provided, however, that no member data includes the names, account numbers,or taxpayer identification numbers. In the event that the National CreditUnion Administration (NCUA) has a regulation on member data reportingrequirements, the state annual member data report shall be made consistentwith NCUA reporting requirements. The director shall determine thenonproprietary data to be included in the annual member data report whichshall be made available to the public.
(2) No later than five business days after an expansion or merger hasbeen granted, the director shall cause the decision and findings to bepublished in the division's electronic bulletin and sent electronically toany party who has requested notification of such actions.
5. Within fifteen days after the decision is published, any person orentity with an interest different from that of a member of the generalpublic, upon establishing that such person or entity may be aggrieved basedupon competent and substantial evidence of potential actual damages, shallhave the right to contest the decision by appealing the decision to thecredit union commission utilizing the procedure as set out in section370.063. If the commission finds that the decision or the findings of thedirector of the division of credit unions was arbitrary and capricious ornot based on evidence in the director's possession, the commission shallset aside the findings and decision of the director of the division ofcredit unions and enter its own findings and decision. Any party in theproceeding before the commission who has exhausted all administrativeremedies provided by law may appeal the decision to the circuit court ofCole County.
6. Subject to the restrictions contained in this chapter, thedirector of the division of credit unions shall have the authority toapprove applications to amend bylaws regarding credit union membership orto organize credit unions that include single or multiple groups.
(L. 1998 H.B. 1323, A.L. 2007 S.B. 591)(2003) Appeal to commission is applicable to any person or entity that is adversely affected, directly, indirectly, and to whatever extent, by the denial or even the approval of a credit union application. Missouri Bankers Association v. Director, 126 S.W.3d 360 (Mo.banc).