Ill. Admin. Code tit. 38 § 190.10

Current through Register Vol. 48, No. 50, December 13, 2024

Section 190.10 - Field of Membership Procedures

a) All requests to amend the field of membership of a credit union must be in writing and provide sufficient detail to establish conformance with a definition of common bond as specified in Section 1.1 of the Illinois Credit Union Act (the Act) [205 ILCS 305 ]. At a minimum this detail must include a definition of the common bond, number of individuals and demographics of potential members, and a letter of support from a sponsor organization, association, or employer if applicable.

b) To change field of membership a credit union must amend its by-laws and articles of incorporation on forms provided by the Division. These amendments require the Director's approval prior to becoming effective.

c) The Division, in administering the common bond requirement of the Act, will evaluate changes to existing or establishment of new fields of membership caused by new charters, conversion, or changes in existing by-laws in accordance with the following criteria:

1) Each credit union must have a field of membership consisting of one or more of the following common bonds: association, occupation or community. A central credit union or a corporate credit union may serve only those groups or persons specified in the Act and its by-laws and Statement of Incorporation.

2) The common bond must conform to the Act and include some unifying factor which links and distinguishes a field of membership from the general public. A generalized common belief, philosophy, or agreement, is not in itself a sufficient basis for a common bond.

3) In determining whether a change in a field of membership is appropriate, the Division also shall consider:

A) the specific circumstances which govern each request;

B) the original assumptions and circumstances of the common bond when the charter was granted;

C) the sponsoring organization's knowledge of and support for the request;

D) the credit union's demonstrated ability to fully serve its existing field in a safe and sound manner.

Ill. Admin. Code tit. 38, § 190.10

Amended at 30 Ill. Reg. 18919, effective December 4, 2006