July 15, 1997

Terri Atkinson, Membership Development Specialist
Connecticut Credit Union League
P.O. Box 5001
Wallingford, CT 06492-7501

You have asked whether federal credit unions (FCUs) may continue to accept for membership, family members of potential members. You are concerned that this policy may have been affected by the U.S. District Court for the District of Columbia's injunction in First National Bank and Trust Co., et al. v. NCUA, et al.

The injunction in that case had no effect on membership for family members of potential members. It was permissible before and remains permissible for a family member to join an FCU when the qualifying individual is only a potential primary member if the FCU's charter includes "members of their immediate family." The attached Letter to Federal Credit Unions, No. 96-5, explains that the U.S. Court of Appeals for the D.C. Circuit has partially stayed the injunction and, at this time, the only impact the court injunction has on NCUA field of membership policy is to prohibit FCUs "from adding new select employee groups or groups under the streamlined expansion procedures that do not share a common bond with the credit union's 'core membership'."

Sincerely,

Sheila A. Albin
Associate General Counsel

GC/MFR:bhs
SSIC 3700
97-0602
Enclosure