Donna J. Chardeen, Director of Compliance
New York State Credit Union League
P.O. Box 15118
Albany, New York 12212-5118
Dear Ms. Chardeen:
You have asked two questions regarding service
to select groups that are located within a community charter's
geographic boundaries. First, if federal credit union (FCU) A,
a multiple common bond FCU converts to a community charter and
had select groups within the community boundaries, does the new
community charter serve its old select group or the individuals
who live, work, worship or attend school in the community. Since
a community charter does not have select groups, the FCU serves
individuals that have a community charter affinity - persons who
live in, worship in, attend school in or work in the community.
Chapter 2, Section V.A.1 of NCUA's Chartering and Field of Membership
Manual.
Second, you ask whether FCU B, a multiple common
bond FCU can request to add select groups that are within the
community boundaries of FCU A to its field of membership. Yes,
a multiple common bond FCU can request to add a select group that
is within the geographic boundaries of a community charter. This
is considered an overlap because a group of persons is eligible
for membership in two or more credit unions. In general, a community
charter will not receive any overlap protection. Chapter 2, Section
V.E.1 of NCUA's Chartering and Field of Membership Manual.
Sincerely,
Sheila A. Albin
Associate General Counsel
GC/MJMcK:bhs
SSIC 6010
99-0652