Section 0180-29-.06 - STREAMLINED EXPANSION PROCEDURE(1) Credit unions may apply to the Commissioner for approval of an enabling bylaw amendment that would allow them to use the streamlined expansion procedure set forth in this section ("SEP procedure") to include different types of small groups with a common bond of occupation in their field of membership.(2) The credit union must first apply to the Commissioner for approval of an enabling amendment that provides as follows: Groups of persons with occupational common bonds which are located within the credit union's approved operational area, which have provided a written request for service to the credit union, which do not presently have credit union service available, and which have no more members in the group than the maximum number established by the Commissioner for additions under this provision; provided however, that the Commissioner may permanently or temporarily revoke the power to add groups under this provision upon a finding, in the Tennessee Department of Financial Institutions' discretion, that permitting additions under this provision are not in the best interests of the credit union, its members, or the National Credit Union Share Insurance Fund.
Once the application has been approved by the Commissioner, the credit union may immediately begin serving any group in compliance with this section and the enabling amendment. The enabling amendment may not be amended without the prior written approval of the Commissioner.
(3) The enabling amendment will in substance permit a credit union to add a small employee group to its field of membership if:(a) The employer is located within the operational area of twenty-five miles (or such other approved operational area) from one of the credit union's service facilities;(b) A senior officer of the employer has provided a written request to the credit union for service, or any other writing outlining the wishes of the employees to join the credit union;(c) The employees of the group do not have credit union service available based on such employment; and(d) The number of employees of the group do not exceed five hundred or any larger maximum number as authorized by the Commissioner;(4) The credit union must maintain a control log of all groups added to its field of membership in accordance with the SEP procedures. The control log must include the board approval of the group, the date of the board approval, the name and location of the employer, the number of employees included, and the number of miles to the nearest credit union service facility.(5) The size limit of the group is based on the number of employees of the group at the time the bylaws are amended to include the group. Several groups may be included simultaneously using the SEP procedure, however the number of employees in each group must be within the small group size limit.(6) The Commissioner may revoke the ability of a credit union to use the SEP procedure if the Commissioner determines that it is being used to circumvent the regular procedure for inclusion of occupational groups in the credit union's field of membership. The Commissioner may also revoke the ability of a credit union to use the SEP procedure if a credit union experiences problems.Tenn. Comp. R. & Regs. 0180-29-.06
Original rule filed July 31, 2001; effective November 28, 2001.Authority: T.C.A. §§ 45-1-107(h), 45-4-102(b), 45-4-301(a), 45-4-501(9), 45-4-1001(b), and 45-4-1003(e).