Amendment to Chartering and Field of Membership Provisions
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The proposed rule by the National Credit Union Administration (NCUA) aims to amend the associational common bond provisions of its chartering and field of membership (FOM) rules. The main change is to clarify that requiring the purchase of a product or service is no longer an automatic disqualifier for membership within a recognized association. Instead, the NCUA will evaluate membership eligibility based on a holistic review of the group's activities and circumstances rather than solely on client-customer relationships.
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Key Changes
- Clarification that requiring product/service purchase no longer disqualifies association eligibility.
- Holistic evaluation of group's activities instead of solely client-customer relationships.
- Reduction of unnecessary restraints on association membership requirements.
Obligations
What this law requires
NCUA must amend 12 CFR Part 701 to clarify that requiring purchase of a product or service is no longer an automatic disqualifier for membership within a recognized association
NCUA must evaluate associational common bond membership eligibility based on holistic review of the group's activities and overall circumstances rather than solely on client-customer relationships
NCUA must accept public comments on the proposed rule amendments on or before June 8, 2026
Persons submitting comments must not include personally identifiable information (name, address, contact information) or confidential business information that should not be publicly disclosed
NCUA must update the Chartering and Field of Membership Manual (Appendix B to Part 701) to reflect the amended associational common bond requirements