§ 1759. Membership

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1934

   Pub. L. 73–750 · 48 Stat. 1216

   Enacted · 12 U.S.C. § 1759

   June 26, 1934, ch. 750, title I, § 109, formerly § 9, 48 Stat. 1219

   Source evidence

   Code source credit
   June 26, 1934, ch. 750, title I, § 109, formerly § 9, 48 Stat. 1219

2. 1959

   Pub. L. 86–354 § 1 · 73 Stat. 628

   Substituted · 12 U.S.C. § 1759

   Pub. L. 86–354 substituted “persons” for “person” before “designated”

   Source evidence

   Code amendment note
   Pub. L. 86–354 substituted “persons” for “person” before “designated”.

3. 1970

   Pub. L. 91–206 § 2(1) · 84 Stat. 49

   Substituted · 12 U.S.C. § 1759

   Pub. L. 91–206 substituted “Administrator” for “Director”

   Source evidence

   Code amendment note
   Pub. L. 91–206 substituted “Administrator” for “Director”.

   Enacted provision · exact public law section
   Sec. 2. The Federal Credit Union Act is further amended (1) by changing “Director” to read “Administrator” each place it appears therein; (2) by changing “Bureau of Federal Credit Unions” to read “National Credit Union Administration” each place it appears therein; and (3) by changing “Bureau”, each remaining place it appears, to read “Administration”.

4. 1974

   Housing and Community Development Act of 1974

   Pub. L. 93–383 title VII § 722 · 88 Stat. 634

   Substituted · 12 U.S.C. § 1759

   Pub. L. 93–383 substituted “a uniform entrance fee if required by the board of directors” for “the entrance fee”

   Source evidence

   Code amendment note
   Pub. L. 93–383 substituted “a uniform entrance fee if required by the board of directors” for “the entrance fee”.

   Enacted provision · exact public law section
   Sec. 722. fees The first sentence of section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is amended by striking out “the entrance fee” and inserting in lieu thereof “a uniform entrance fee if required by the board of directors”.

5. 1978

   Financial Institutions Regulatory and Interest Rate Control Act of 1978

   Pub. L. 95–630 title V § 502(b) · 92 Stat. 3641

   Substituted · 12 U.S.C. § 1759

   Pub. L. 95–630 substituted “Board” for “Administrator”

   Source evidence

   Code amendment note
   Pub. L. 95–630 substituted “Board” for “Administrator”.

   Enacted provision · exact public law section
   (b) The Federal Credit Union Act is amended by striking out “Administrator” each place it appears and inserting in lieu thereof “Board”, and by striking out the personal pronouns “he”, “him”, and “his” when referring to the Administrator and inserting in lieu thereof “it”, “them”, and “its” as appropriate wherever such words appear therein.

   Effective date note
   Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.

6. 1998

   Credit Union Membership Access Act

   Pub. L. 105–219 § 101(1)(A) · 112 Stat. 913

   1. Amended · 12 U.S.C. § 1759(a)

      Pub. L. 105–219, § 101(1)(A), designated existing provisions as subsec. (a)

   2. Inserted · 12 U.S.C. § 1759(a)

      Pub. L. 105–219, § 101(1)(A), inserted heading and “Subject to subsection (b),” before “Federal credit union membership shall consist of”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 105–219, § 101(1)(A), designated existing provisions as subsec. (a) and inserted heading and “Subject to subsection (b),” before “Federal credit union membership shall consist of”.

   Enacted provision · exact public law section
   (A) by striking “Federal credit union membership shall consist of” and inserting “(a) In General.—Subject to subsection (b), Federal credit union membership shall consist of”; and

7. 1998

   Credit Union Membership Access Act

   Pub. L. 105–219 § 101(1)(B) · 112 Stat. 913

   Struck · 12 U.S.C. § 1759(a)

   Pub. L. 105–219, § 101(1)(B), which directed the amendment of subsec. (a) by striking out “, except that Federal credit union membership shall be limited to groups having a common bond of occupation or association, or to groups within a well-defined neighborhood, community, or rural district” after “directors”, was executed by striking out such language which began with a semicolon rather than a comma after “directors” to reflect the probable intent of Congress

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 105–219, § 101(1)(B), which directed the amendment of subsec. (a) by striking out “, except that Federal credit union membership shall be limited to groups having a common bond of occupation or association, or to groups within a well-defined neighborhood, community, or rural district” after “directors”, was executed by striking out such language which began with a semicolon rather than a comma after “directors” to reflect the probable intent of Congress.

   Enacted provision · exact public law section
   (B) by striking “, except that” and all that follows through “rural district”; and

8. 1998

   Credit Union Membership Access Act

   Pub. L. 105–219 § 101(2) · 112 Stat. 913

   Added · 12 U.S.C. § 1759(b)(e)

   Pub. L. 105–219, § 101(2), added subsecs. (b) to (e)

   Source evidence

   Code amendment note
   Subsecs. (b) to (e). Pub. L. 105–219, § 101(2), added subsecs. (b) to (e).

   Enacted provision · exact public law section
   (2) by adding at the end the following new subsections: “(b) Membership Field.— Subject to the other provisions of this section, the membership of any Federal credit union shall be limited to the membership described in one of the following categories: “(1) Single common-bond credit union.— One group that has a common bond of occupation or association. “(2) Multiple common-bond credit union.— More than one group— “(A) each of which has (within the group) a common bond of occupation or association; and “(B) the number of members, each of which (at the time the group is first included within the field of membership of a credit union described in this paragraph) does not exceed any numerical limitation applicable under subsection (d). “(3) Community credit union.— Persons or organizations within a well-defined local community, neighborhood, or rural district. “(c) Exceptions.— “(1) Grandfathered members and groups.— “(A) In general.— Notwithstanding subsection (b)— “(i) any person or organization that is a member of any Federal credit union as of the date of enactment of the Credit Union Membership Access Act may remain a member of the credit union after that date of enactment; and “(ii) a member of any group whose members constituted a portion of the membership of any Federal credit union as of that date of enactment shall continue to be eligible to become a member of that credit union, by virtue of membership in that group, after that date of enactment. “(B) Successors.— If the common bond of any group referred to in subparagraph (A) is defined by any particular organization or business entity, subparagraph (A) shall continue to apply with respect to any successor to the organization or entity. “(2) Exception for underserved areas.— Notwithstanding subsection (b), in the case of a Federal credit union, the field of membership category of which is described in subsection (b)(2), the Board may allow the membership of the credit union to include any person or organization within a local community, neighborhood, or rural district if— “(A) the Board determines that the local community, neighborhood, or rural district— “(i) is an ‘investment area’, as defined in section 103(16) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4703(16)), and meets such additional requirements as the Board may impose; and “(ii) is underserved, based on data of the Board and the Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act), by other depository institutions (as defined in section 19(b)(1)(A) of the Federal Reserve Act); and “(B) the credit union establishes and maintains an office or facility in the local community, neighborhood, or rural district at which credit union services are available. “(d) Multiple Common-Bond Credit Union Group Requirements.— “(1) Numerical limitation.— Except as provided in paragraph (2), only a group with fewer than 3,000 members shall be eligible to be included in the field of membership category of a credit union described in subsection (b)(2). “(2) Exceptions.— In the case of any Federal credit union, the field of membership category of which is described in subsection (b)(2), the numerical limitation in paragraph (1) of this subsection shall not apply with respect to— “(A) any group that the Board determines, in writing and in accordance with the guidelines and regulations issued under paragraph (3), could not feasibly or reasonably establish a new single common-bond credit union, the field of membership category of which is described in subsection (b)(2) because— “(i) the group lacks sufficient volunteer and other resources to support the efficient and effective operation of a credit union; “(ii) the group does not meet the criteria that the Board has determined to be important for the likelihood of success in establishing and managing a new credit union, including demographic characteristics such as geographical location of members, diversity of ages and income levels, and other factors that may affect the financial viability and stability of a credit union; or “(iii) the group would be unlikely to operate a safe and sound credit union; “(B) ny group transferred from another credit union— “(i) in connection with a merger or consolidation recommended by the Board or any appropriate State credit union supervisor based on safety and soundness concerns with respect to that other credit union; or “(ii) by the Board in the Board’s capacity as conservator or liquidating agent with respect to that other credit union; or “(C) any group transferred in connection with a voluntary merger, having received conditional approval by the Administration of the merger application prior to October 25, 1996, but not having consummated the merger prior to October 25, 1996, if the merger is consummated not later than 180 days after the date of enactment of the Credit Union Membership Access Act. “(3) Regulations and guidelines.— The Board shall issue guidelines or regulations, after notice and opportunity for comment, setting forth the criteria that the Board will apply in determining under this subsection whether or not an additional group may be included within the field of membership category of an existing credit union described in subsection (b)(2). “(e) Additional Membership Eligibility Provisions.— “(1) Membership eligibility limited to immediate family or household members.— No individual shall be eligible for membership in a credit union on the basis of the relationship of the individual to another person who is eligible for membership in the credit union, unless the individual is a member of the immediate family or household (as those terms are defined by the Board, by regulation) of the other person. “(2) Retention of membership.— Except as provided in section 118, once a person becomes a member of a credit union in accordance with this title, that person or organization may remain a member of that credit union until the person or organization chooses to withdraw from the membership of the credit union.”

9. 1998

   Credit Union Membership Access Act

   Pub. L. 105–219 § 102 · 112 Stat. 913

   Added · 12 U.S.C. § 1759(f)

   Pub. L. 105–219, § 102, added subsec. (f)

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 105–219, § 102, added subsec. (f).

   Enacted provision · exact public law section
   SEC. 102. CRITERIA FOR APPROVAL OF EXPANSION OF MEMBERSHIP OF MULTIPLE COMMON-BOND CREDIT UNIONS. Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is amended by adding at the end the following new subsection: “(f) Criteria for Approval of Expansion of Multiple Common-Bond Credit Unions.— “(1) In general— The Board shall— “(A) encourage the formation of separately chartered credit unions instead of approving an application to include an additional group within the field of membership of an existing credit union whenever practicable and consistent with reasonable standards for the safe and sound operation of the credit union; and “(B) if the formation of a separate credit union by the group is not practicable or consistent with the standards referred to in subparagraph (A), require the inclusion of the group in the field of membership of a credit union that is within reasonable proximity to the location of the group whenever practicable and consistent with reasonable standards for the safe and sound operation of the credit union. “(2) Approval criteria.— The Board may not approve any application by a Federal credit union, the field of membership category of which is described in subsection (b)(2) to include any additional group within the field of membership of the credit union (or an application by a Federal credit union described in subsection (b)(1) to include an additional group and become a credit union described in subsection (b)(2)), unless the Board determines, in writing, that— “(A) the credit union has not engaged in any unsafe or unsound practice (as defined in section 206(b)) that is material during the 1-year period preceding the date of filing of the application; “(B) the credit union is adequately capitalized; “(C) the credit union has the administrative capability to serve the proposed membership group and the financial resources to meet the need for additional staff and assets to serve the new membership group; “(D) any potential harm that the expansion of the field of membership of the credit union may have on any other insured credit union and its members is clearly outweighed in the public interest by the probable beneficial effect of the expansion in meeting the convenience and needs of the members of the group proposed to be included in the field of membership; and “(E) the credit union has met such additional requirements as the Board may prescribe, by regulation.”.

10. 1998

    Credit Union Membership Access Act

    Pub. L. 105–219 § 103 · 112 Stat. 913

    Added · 12 U.S.C. § 1759(g)

    Pub. L. 105–219, § 103, added subsec. (g)

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 105–219, § 103, added subsec. (g).

    Enacted provision · exact public law section
    SEC. 103. GEOGRAPHICAL GUIDELINES FOR COMMUNITY CREDIT UNIONS. Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is amended by adding at the end the following new subsection: “(g) Regulations Required for Community Credit Unions.— “(1) Definition of well-defined local community, neighborhood, or rural district.— The Board shall prescribe, by regulation, a definition for the term ‘well-defined local community, neighborhood, or rural district’ for purposes of— “(A) making any determination with regard to the field of membership of a credit union described in subsection (b)(3); and “(B) establishing the criteria applicable with respect to any such determination. “(2) Scope of application— The definition prescribed by the Board under paragraph (1) shall apply with respect to any application to form a new credit union, or to alter or expand the field of membership of an existing credit union, that is filed with the Board after the date of enactment of the Credit Union Membership Access Act.”.

11. 2006

    Pub. L. 109–351 title VII § 726(9) · 120 Stat. 1966

    Changed · 12 U.S.C. § 1759(c)(2)(A)(i)

    Pub. L. 109–351 made technical amendment to reference in original act which appears in text as reference to section 4702(16) of this title

    Source evidence

    Code amendment note
    Subsec. (c)(2)(A)(i). Pub. L. 109–351 made technical amendment to reference in original act which appears in text as reference to section 4702(16) of this title.

    Enacted provision · exact public law section
    (9) In section 109(c)(2)(A)(i), 12 USC 1759. strike “(12 U.S.C. 4703(16))”.

10 of 12 references resolved to an enrolled provision · 2 partial