|(a) General. Membership in a credit union shall be
limited to one or more groups, each of which (the Group) has its own
community of interest as outlined under Texas Finance Code Section
122.051. The commissioner may impose a geographical limitation on
any Group if the commissioner reasonably determines that the applicant
credit union does not have the ability to serve a larger group or
there are other operational or management concerns.
(b) Other persons eligible for membership. A number
of persons by virtue of their close relationship to a Group may be
included in the field of membership at the option of the applicant
credit union. These include:
(1) members of the family or household of a member
of the Group;
(2) volunteers performing services for or on behalf
of the Group;
(3) organizations owned or controlled by a member or
members of the Group, and any employees and members of those organizations;
(4) spouses of persons who died while in the Group;
(5) employees of the credit union; and
(6) subsidiaries of the credit union and their employees;
and businesses and other organizations whose employees or members
are within the Group.
(1) The commissioner may approve a credit union's original
articles of incorporation and bylaws or a request for approval of
an amendment to a credit union's bylaws to serve one or more communities
of interest or a combination of types of communities of interest.
(2) In addition to general requirements, special requirements
pertaining to multiple-Group applications may be required before the
commissioner will grant such a certificate or approve such an amendment.
(A) Each Group to be included in the proposed field
of membership of the credit union must have its own community of interest.
(B) Each associational or occupational Group must individually
request inclusion in the proposed credit union's field of membership.
(d) Overlap protection.
(1) The commissioner will only consider the financial
effect of an overlap proposed by an application to expand a credit
union's field of membership or when a charter application proposes
an overlap for a Group of 3,000 members or more.
(2) The commissioner will weigh the information in
support of the application and any information provided by a protesting
or affected credit union. If the applicant has the financial capacity
to serve the financial needs of the proposed members, demonstrates
economic feasibility, complies with the requirements of this rule,
and no protestant reasonably establishes a basis for denying the request,
it shall be approved.
(3) If a finding is made that overlap protection is
warranted, the commissioner shall reject the application or require
the applicant to limit or eliminate the overlap by adding exclusionary
language to the text of the amendment, e.g., "excluding persons eligible
for primary membership in any occupation or association based credit
union that has an office within a specified proximity of the applicant
credit union at the time membership is sought." Exclusionary clauses
are rarely appropriate for inclusion on a geographic community of
(4) Generally, if the overlapped credit union does
not submit a notice of protest form, and the department determines
that there is no safety and soundness problem, an overlap will be
permitted. If, however, a notice of protest is filed, the commissioner
will consider the following in performing an overlap analysis:
(A) whether the overlap is incidental in nature, i.e.,
the group(s) in question is so small as to have no material effect
on the overlapped credit union;
(B) whether there is limited participation by members
of the group(s) in the overlapped credit union after the expiration
of a reasonable period of time;
(C) whether the overlapped credit union provides requested
(D) the financial effect on the overlapped credit union;
(E) the desires of the group(s); and
(F) the best interests of the affected group(s) and
the credit union members involved.
(5) Where a sponsor organization expands its operations
internally, by acquisition or otherwise, the credit union may serve
these new entrants to its field of membership if they are part of
the community of interest described in the credit union's bylaws.
Where acquisitions are made which add a new subsidiary or affiliate,
the group cannot be served until the entity is included in the field
of membership through the application process.
(6) Credit unions affected by the organizational restructuring
or merger of a group within its field of membership must apply for
a modification of their fields of membership to reflect the group
to be served.
(e) Underserved communities.
(1) All credit unions may include underserved areas
or areas designated as a credit union development district in accordance
with Subchapter K (related to Credit Union Development Districts)
in their fields of membership, without regard to location. More than
one credit union can serve the same underserved community.
(2) A credit union desiring to add an underserved community
must document that the area meets the applicable definition in §91.101
(relating to Definitions and Interpretations). In addition, the credit
union must develop a business plan specifying how it will serve the
community. The business plan, at a minimum, must identify the credit
and depository needs of the community and detail how the credit union
plans to serve those needs. The credit union will be expected to regularly
review the business plan to determine if the community is being adequately
served. The commissioner may require periodic service status reports
from a credit union pertaining to the underserved area to ensure that
the needs of the area are being met, as well as requiring such reports
before allowing a credit union to add an additional underserved area.
(f) Parity with Federal Credit Unions. Credit unions
will be allowed to have, at a minimum, at least as much flexibility
as federal credit unions have in field of membership regulation. If
a credit union proposes a type of Group that the National Credit Union
Administration has previously determined meets the Federal requirements,
the commissioner shall approve the application unless the commissioner
finds that the credit union has not demonstrated sufficient managerial
and financial capacity to safely and soundly serve such expanded membership.
(g) Application. In order to request the approval of
the commissioner to add a Group to its bylaws, a credit union must
submit a written application to the Department. 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.
In reviewing such application, the commissioner shall consider:
(1) Whether the Group has adequate unifying characteristics
or a mutual interest such that the safety and soundness of the credit
union is maintained;
(2) The ability of credit unions to maintain parity
and to compete fairly with their counterparts;
(3) Service by the credit union that is responsive
to the convenience and needs of prospective members;
(4) Protection for the interest of current and future
members of the credit union; and
(5) The encouragement of economic progress in this
State by allowing opportunity to expand services and facilities.
|Source Note: The provisions of this §91.301 adopted to be effective July 8, 1994, 19 TexReg 4926; amended to be effective February 11, 2001, 26 TexReg 1132; amended to be effective January 7, 2004, 29 TexReg 82; amended to be effective July 13, 2008, 33 TexReg 5294; amended to be effective July 31, 2016, 41 TexReg 5413; amended to be effective November 28, 2021, 46 TexReg 7873