Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
NCUA Clarifies Electric Co-op FOM Considerations
ALEXANDRIA, Va. (6/13/13)--The National Credit Union Administration would use a standard seven-item test, as set forth in the agency's Chartering and Field of Membership Manual, to determine if an electric cooperative qualifies to be included in a federal credit union's field of membership, NCUA General Counsel Mike McKenna said in a legal opinion letter.

The letter responded to a request for clarification, which asked if an electrical cooperative shared sufficient associational common bond to be included in a given credit union's field of membership.

"No one factor alone is determinative of membership eligibility as an association," including whether the cooperative requires its members to purchase electricity from it, McKenna wrote.

"In the end, the particular details of a cooperative's structure and other factors surrounding its operation will determine if its relationship with its members is primarily or incidentally a customer-client relationship and if it satisfies the totality of the circumstances test," McKenna said.

The seven factors that the NCUA must consider as part of the circumstances test are:

  • Whether members pay dues;
  • Whether members participate in the furtherance of the goals of the association;
  • Whether the members have voting rights. To meet this requirement, members need not vote directly for an officer, but may vote for a delegate who in turn represents the members' interests;
  • Whether the association maintains a membership list;
  • Whether the association sponsors other activities;
  • The association's membership eligibility requirements; and
  • The frequency of meetings.
NCUA considers all of these factors together, McKenna wrote.

For the full NCUA legal opinion letter, use the resource link.
Other Resources

NCUA Letter
RSS





print
News Now LiveWire
.@NACHAOnline report: ACH volume increases to 23B payments in 2014 http://t.co/va2WYMh4Zv
8 hours ago
.@CUNA's @HampelBill in @washingtonpost on options for wary mortgage borrowers: http://t.co/CPSgTNgwmm
13 hours ago
Housing starts thaw, mortgage rates stand pat #Market #NewsNow http://t.co/hhPj5v5AH3
14 hours ago
.@CUNA files #RBC2 comment, urges #CU system to be heard #NewsNow http://t.co/yfoZHAMlZc
14 hours ago
#NewsNow Youth Month attracts 100,000th member for Mich. CU http://t.co/cgF5o83XlK
15 hours ago