May 26, 1998
Richard J. Woloss, Treasurer/Manager
Northampton VAF Federal Credit Union
VA Medical Center
Northampton, MA 01060
Dear Mr. Woloss:
You have asked this office for our opinion of a proposed bylaw
definition of "immediate family members" that would
include the "Primary Member's Spouse/Domestic Partner's Parents,
Grandparents, Children, Grandchildren, Sisters and Brothers.
The definition you propose is not permissible.
If an FCU's charter includes "members of their immediate
families," the Federal Credit Union Bylaws allow an FCU to
define the term. Article XVIII, Section 2(a). The attached letter
from Richard S. Schulman to David Beckhorn, dated June 12, 1996,
explains that "as long as there is an ongoing 'familial'
relationship between the primary member and those individuals
who qualify for membership as immediate family members, the definition
is acceptable." (Emphasis added).
NCUA's Chartering Manual defines primary members as "[m]embers
sharing the basic occupational, associational or community affinity
to the field of membership" and secondary or derivative
members are defined as, "[m]embers included in the field
of membership by virtue of their close relationship to the common
bond group (e.g., immediate family members, employees of the credit
union, etc.)." IRPS 94-1, Appendix A, as amended by IRPS
96-1 and IRPS 98-1. The definition you propose includes the immediate
family members of the secondary member, in this case, the primary
member's spouse/domestic partner.
Our long-standing position is that only the immediate family members
of primary members are eligible to join under the "immediate
family member" provision of an FCU's charter. Permitting
immediate family members of secondary members to join would vitiate
the common bond requirement.
Sincerely,
Sheila A. Albin
Associate General Counsel
GC/MFR:bhs
SSIC 3700
98-0438
Enclosure
cc: Region I