Rule 80-2-8-.04 - Requirements for Geographic Groups(1) A credit union shall request approval from the department to add a geographic common bond group to its field of membership by an amendment to its bylaws. O.C.G.A. § 7-1-630(b)permits a common bond of a field of membership to be "residence or employment within a well-defined neighborhood, community, or rural district."(2) Definitions for geographic groups: (a) "Well defined" shall mean able to be described in writing and delineated by geographic or political boundaries on a map.(b) "Neighborhood" shall mean a small part of a geographic unit considered in regard to its inhabitants or distinctive characteristics. It will have unifying characteristics such as recreational, associational or social facilities or functions for residents.(c) "Community" shall mean an area where: 1. Residents share common political, environmental, geographical or economic characteristics that tend to create a mutual interest; or2. Residents share common facilities or services such as an education or transportation system, recreational or cultural facilities, government, medical services, newspaper, fire or police protection, public utilities and services or other unifying characteristics that tend to create interaction or a mutual interest.(d) "Rural District" shall mean an area that is outside a Metropolitan Statistical Area (MSA) as those areas are established from time to time by the United states Office of Management and Budget. It should also reflect a commonality of interest which may be participation or membership in agricultural, land use, or soil conservation districts or associations.(3) A geographic group common bond request shall be accompanied by application to the department and a proposed change to the credit union's bylaws. In reviewing such application, the department shall consider: (a) Whether the well-defined area has adequate unifying characteristics or a mutual interest such that the safety and soundness of the institution, and protection of the funds invested by members, is maintained;(b) Consistent with Chapter 1 of Title 7, the ability of state credit unions to maintain parity and to compete fairly with their federal counterparts, and the law and rules of the National Credit Union Administration regarding community common bonds;(c) Service by the credit union that is responsive to the needs of prospective members, to promote thrift and create a source of credit at reasonable rates;(d) Protection for the interests of current and future members of the credit union; and(e) The encouragement of economic progress in the state by allowing the opportunity to expand services and facilities. (4) The applicant credit union shall have the burden to show to the department such facts and data that support the requirements and considerations in this rule and department policy.(5) The department shall formulate detailed policies and procedures to guide credit unions in making applications for geographic groups, and to give specific requirements. The financial and managerial capacity of a credit union shall be a primary consideration for the department in approving any geographic group common bond. The credit union must demonstrate that the size, capability and experience of its management is adequate to meet the demands of the geographic group proposed. A comprehensive strategic and ongoing business plan will be required that addresses the services to be provided, impact on the credit union's capital and resources, adequacy of fixed assets, service distribution capability, data management facilities, and ability of management to recognize, monitor and control risk.Ga. Comp. R. & Regs. R. 80-2-8-.04
O.C.G.A. §§ 7-1-3; 7-1-61; 7-1-70; 7-1-630; 7-1-634; 7-1-663.
Original Rule entitled "Other Changes" adopted. F. Aug. 17, 1983; eff. Sept. 6, 1983.Amended: F. Jan. 27, 1995; eff. Feb. 16, 1995.Amended: F. Dec. 18, 2000; eff. Jan. 7, 2001.Repealed: New Rule entitled "Requirements for Residential Groups" adopted. F. Sept. 1, 2004; eff. Sept. 21, 2004.Amended: F. Aug. 15, 2005; eff. Sept. 4, 2005.Amended: F. June 15, 2015; eff. July 5, 2015.Amended: F. June 29, 2017; eff. July 19, 2017.Amended: New title "Requirements for Geographic Groups." F. June 29, 2018; eff. July 19, 2018.