[Federal Register Volume 79, Number 84 (Thursday, May 1, 2014)]
[Proposed Rules]
[Pages 24623-24628]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09812]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 701

RIN 3133-AE31


Chartering and Field of Membership Manual

AGENCY: National Credit Union Administration (NCUA).

ACTION: Proposed rule with request for comments.

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SUMMARY: The NCUA Board (Board) proposes to amend the associational 
common bond provisions of NCUA's chartering and field of membership 
rules. Specifically, the amendments establish a threshold requirement 
that an association not be formed primarily for the purpose of 
expanding credit union membership. The amendments also expand the 
criteria in the totality of the circumstances test, which is used to 
determine if an association, which satisfies the threshold requirement, 
also satisfies the associational common bond requirements and qualifies 
for inclusion in a federal credit union's (FCU) field of membership 
(FOM). The amendments will help to ensure FCU compliance with 
membership requirements. Additionally, NCUA proposes to grant automatic 
qualification under the associational common bond rules to certain 
categories of groups that NCUA has approved in the past after applying 
the totality of the circumstances test.

[[Page 24624]]


DATES: Comments must be received on or before June 30, 2014.

ADDRESSES: You may submit comments by any of the following methods 
(Please send comments by one method only):
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     NCUA Web site: http://www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/proposed_regs. html. Follow the 
instructions for submitting comments.
     Email: Address to regcomments@ncua.gov. Include ``[Your 
name] Comments on Notice of Proposed Rulemaking Regarding Associational 
Common Bond'' in the email subject line.
     Fax: (703) 518-6319. Use the subject line described above 
for email.
     Mail: Address to Gerard S. Poliquin, Secretary of the 
Board, National Credit Union Administration, 1775 Duke Street, 
Alexandria, Virginia 22314-3428.
     Hand Delivery/Courier: Same as mail address.
    Public Inspection: You may view all public comments on NCUA's Web 
site at http://www.ncua.gov/Legal/Regs/Pages/PropRegs.aspx as 
submitted, except for those we cannot post for technical reasons. NCUA 
will not edit or remove any identifying or contact information from the 
public comments submitted. You may inspect paper copies of comments in 
NCUA's law library at 1775 Duke Street, Alexandria, Virginia 22314, by 
appointment weekdays between 9 a.m. and 3 p.m. To make an appointment, 
call (703) 518-6546 or send an email to OGCMail@ncua.gov.

FOR FURTHER INFORMATION CONTACT: Sarah Chung, Staff Attorney, Office of 
General Counsel, at the above address or telephone (703) 518-1178.

SUPPLEMENTARY INFORMATION:

I. Background
II. Summary of the Proposed Rule
III. Regulatory Procedures

I. Background and Requirements of the Associational Common Bond

    NCUA has implemented the Federal Credit Union Act's (FCU Act) FOM 
requirements \1\ in its Chartering and Field of Membership Manual 
(Chartering Manual), incorporated as Appendix B to part 701 of NCUA's 
regulations.\2\ NCUA also publishes this manual as an Interpretative 
Ruling and Policy Statement (IRPS). The current version of the manual 
is published as IRPS 08-2, as amended by IRPS 10-1.
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    \1\ 12 U.S.C. 1759.
    \2\ 12 CFR part 701, Appendix B.
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    Section 109 of the FCU Act provides for three types of FCU 
charters: (1) Single common bond (occupational or associational); (2) 
multiple common bond (multiple groups); and (3) community.\3\ Section 
109 also describes the membership criteria for each of these three 
types of charters.\4\ Special rules apply to each type of charter.
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    \3\ 12 U.S.C. 1759(b).
    \4\ Id.
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    An FOM consists of those persons and entities eligible for 
membership for each type of charter. The Chartering Manual sets forth 
that a single common bond FCU consists of one group having a common 
bond of occupation or association.\5\ A multiple common bond FCU 
consists of more than one group, each of which has a common bond of 
occupation or association.\6\ This rule will not affect the current 
requirements for occupational common bonds.
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    \5\ 12 CFR part 701, Appendix B (Chapter 2, Section II.A.1). A 
community FCU consists of persons or organizations within a well-
defined local community, neighborhood, or rural district.
    \6\ Id.
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Associational Common Bond

    A single associational common bond consists of individuals (natural 
persons) and/or groups (non-natural persons) whose members participate 
in activities developing common loyalties, mutual benefits, and mutual 
interests.\7\ Separately chartered associational groups can establish a 
single common bond relationship if such groups are integrally related 
and share common goals and purposes.\8\ The Chartering Manual more 
specifically lists the individuals and groups eligible for membership 
in a single associational credit union. Eligible individuals and groups 
are natural and non-natural person members of the association, 
employees of the association, and the association itself.\9\
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    \7\ 12 CFR part 701, Appendix B (Chapter 2, Section III.A.1).
    \8\ Id.
    \9\ Id.
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    NCUA determines whether a group satisfies the associational common 
bond requirements for an FCU charter based on the totality of the 
circumstances.\10\ This test in the current rule consists of seven 
factors: \11\
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    \10\ 12 CFR part 701, Appendix B (Chapter 2, Section III.A.1).
    \11\ Id.
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    (1) Whether members pay dues;
    (2) Whether members participate in the furtherance of the goals of 
the association;
    (3) Whether the members have voting rights; \12\
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    \12\ To meet this requirement, members do not have to vote 
directly for an officer, but may vote for a delegate who in turn 
represents the members' interests.
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    (4) Whether the association maintains a membership list;
    (5) Whether the association sponsors other activities;
    (6) The association's membership eligibility requirements; and
    (7) The frequency of meetings.
    The Chartering Manual specifies certain examples that may or may 
not qualify as associational common bonds. Educational groups, church 
groups, student groups, homeowner associations, and consumer groups may 
qualify as associational common bonds.\13\ However, associations based 
primarily on a client-customer relationship do not meet associational 
common bond requirements.\14\
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    \13\ 12 CFR part 701, Appendix B (Chapter 2, Section III.A.1).
    \14\ Id.
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Multiple Occupational or Associational Common Bonds

    An FCU may be chartered to serve a combination of distinct, 
definable single occupational and/or associational common bonds.\15\ 
This type of credit union is called a multiple common bond credit 
union. Each group in the FOM must have its own occupational or 
associational common bond. These groups must be within reasonable 
geographic proximity of the credit union.\16\ The groups must be within 
the service area of one of the credit union's service facilities and 
are referred to as select groups. A select group as a whole will be 
considered to be within a credit union's service area when a majority 
of the persons in the select group live, work, or gather regularly 
within the service area; the group's headquarters is located within the 
service area; or the group's ``paid from'' or ``supervised from'' 
location is within the service area.
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    \15\ 12 CFR part 701, Appendix B (Chapter 4, Section IV.A.1.).
    \16\ A multiple common bond credit union cannot include a trade, 
industry, or profession single occupational common bond or expand 
using single common bond criteria.
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II. Summary of the Proposed Rule

Why is NCUA proposing this rule?

    Executive Order 13579 provides that independent agencies, including 
NCUA, should consider if they can modify, streamline, expand, or repeal 
existing rules to make their programs more effective and less 
burdensome. The amendments to the associational

[[Page 24625]]

common bond requirements establish a threshold requirement that an 
association not be formed primarily for the purpose of expanding credit 
union membership. The amendments also improve and clarify the totality 
of the circumstances test so that FCUs will better understand it, and 
will provide regulatory relief for FCUs who want to add to their FOMs 
certain groups that qualify for automatic approval.
    Also, NCUA is concerned that the current totality of the 
circumstances test may not be sufficiently filtering out those groups 
that do not meet the associational common bond requirements. In this 
regard, the amendments also emphasize that the group added to an FCU's 
FOM must meet the underlying common bond criteria. As noted above, FCUs 
must follow the associational requirements under the FCU Act and NCUA's 
regulations. In an attempt to expand their potential FOMs beyond 
appropriate limits, however, a few FCUs have begun forming their own 
associations and adding independent associations to their FOMs that may 
not fully satisfy the intent of the associational common bond rules. 
This is discussed more fully below.

Automatic Approval

    NCUA has historically approved certain associations almost without 
exception due to their structure, practices, and functions, and because 
they easily satisfy the Chartering Manual's requirements. For example, 
churches are consistently recognized as valid associations based on the 
associational common bond requirements. Likewise, labor unions, 
scouting groups, electric cooperatives, and homeowner associations are 
regularly approved for inclusion due to their natural cooperative 
structures. By the nature of these groups, members consistently 
participate in activities developing common loyalties, mutual benefits, 
and mutual interests to further the goals and purposes of the 
association. Therefore, religious organizations including churches, 
homeowner associations, scouting groups, electric cooperatives, and 
labor unions will be automatically included in an FCU's FOM if it 
chooses to add the groups, as long as such groups meet service area and 
other related requirements. Additionally, NCUA proposes to 
automatically approve associations that have a mission based on 
preserving or furthering the culture of a particular national or ethnic 
origin for the same reasons stated above. However, it should be noted 
that only regular members of these groups will be approved. NCUA will 
not automatically approve honorary or other classes of non-regular 
members.
    Based on NCUA's experience, alumni associations are also regularly 
approved for inclusion in FOMs. Consequently, the proposed rule allows 
alumni associations to be automatically approved. Members of the alumni 
association need not have attended the college or university if the 
association's bylaws permit them to join.
    The automatic approval of the above associations provides 
regulatory relief for FCUs as they will no longer be required to obtain 
and review the association's bylaws, and, for the same reason, will 
result in more efficient use of NCUA's resources. Further, NCUA is 
requesting public comment on if NCUA should automatically approve any 
other categories of associations that are not included above.
    NCUA has not deleted the descriptions and examples of associational 
common bonds in the Chartering Manual, and has now categorized such 
descriptions and examples as additional information. NCUA has also 
clarified that health clubs do not qualify under the associational 
common bond, including YMCAs, because these health clubs function 
primarily on a client-customer relationship. An FCU should consider 
this additional information regarding whether a group qualifies as 
having an associational common bond.

Associational Group Quality Assurance Review

    In order to prevent abuses of the membership system, NCUA is 
currently reviewing the way associational groups are formed and 
operated. Prior to the issuance of IRPS 99-1, NCUA chartering policy 
specifically stated that associations formed primarily to obtain an FCU 
charter do not have a sufficient associational common bond. Since IRPS 
99-1, NCUA chartering policy states that the common bond for an 
associational group cannot be established simply on the basis that the 
association exists. NCUA is now finding a few FCUs are forming 
associations for the primary purpose of facilitating credit union 
membership. NCUA has found that some of these associational groups do 
not comply with their own bylaws or their bylaws do not reflect current 
practices.
    Prior to IRPS 99-1, NCUA chartering policy specifically stated that 
all associational common bonds must include a definition of the group 
that may be served based on the effective date of the association's 
charter, bylaws, and a geographic limitation. Since IRPS 99-1, NCUA 
chartering policy has not included a geographic limitation. Without the 
geographic limitation, NCUA is finding that associational groups, in 
conjunction with or at an FCU's instigation, are adding members outside 
of the FCU's historical operating area to increase FCU membership. This 
practice does not comply with the limitations in the Chartering Manual. 
Other associations have changed significantly since they were added to 
an FCU's FOM, and no longer meet the criteria for the totality of the 
circumstances test they once met. NCUA is currently reviewing several 
associations. If any of these associations no longer meet the totality 
of the circumstances test or an association is not operating according 
to their official bylaws in a way that impermissibly affects credit 
union membership, NCUA will remove the association from the FCU's FOM.

Threshold Requirement Regarding the Purpose for Which an Association Is 
Formed

    As a threshold matter, when reviewing an application to include an 
association in an FCU's FOM, NCUA will determine if the association has 
been formed primarily for the purpose of expanding credit union 
membership. If NCUA makes such a determination, then the analysis ends 
and the association is denied inclusion in the FCU's FOM. If NCUA 
determines that the association was formed to serve another separate 
function as an organization,\17\ then NCUA will apply the totality of 
the circumstances test to determine if the association satisfies the 
associational common bond requirements.
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    \17\ In furtherance of this requirement, the association must 
have been operating as an organization independent from the 
requesting FCU for at least one year prior to the request to add the 
group to the FCU's FOM.
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Totality of the Circumstances

    NCUA proposes to amend the criteria in the totality of the 
circumstances test for evaluating compliance with the associational 
common bond requirements. Clarifying and expanding the totality of the 
circumstances test will better ensure that all associations or groups 
(the terms ``association'' and ``group'' are used interchangeably) have 
the requisite associational bond. As part of the totality of the 
circumstances test, NCUA considers all criteria together, and the 
presence or absence of any one factor is not determinative of the 
membership eligibility of an association.
    NCUA is expanding the totality of the circumstances test by adding 
an

[[Page 24626]]

additional criterion regarding corporate separateness. Specifically, as 
part of the revised analysis, NCUA will review if there is corporate 
separateness between the association and the FCU. The association and 
the FCU must operate in a way that demonstrates the separate corporate 
existence of each entity. NCUA will consider several factors in 
determining if corporate separateness exists between an association and 
an FCU. The presence or absence of any one factor is not determinative. 
The factors NCUA will consider are as follows:
     Their respective business transactions, accounts, and 
records are not intermingled;
     Each observes the formalities of its separate corporate 
procedures;
     Each is adequately financed as a separate entity in light 
of normal obligations reasonably foreseeable in a business of its size 
and character;
     Each is held out to the public as a separate enterprise; 
and
     The group maintains a separate physical location, which 
does not include a P.O. Box or other mail drop or on premises owned or 
leased by the FCU.
    Qualified associations already within an FCU's FOM are 
grandfathered and will not be subject to the corporate separateness 
criterion.
    While NCUA has added this additional criterion to the totality of 
the circumstances test, NCUA has not removed any of the current 
criteria in the current totality of the circumstances test. However, 
the Board clarifies that after examining an association's purpose as a 
threshold matter, NCUA's primary focus under the totality of the 
circumstances test will be on the following criteria: (1) Whether the 
association provides opportunities for members to participate in the 
furtherance of the goals of the association; \18\ (2) whether the 
association maintains a membership list; (3) whether the association 
sponsors other activities; and (4) whether the association's membership 
eligibility requirements are authoritative.
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    \18\ With respect to this criterion, the current totality of the 
circumstances test reads ``whether members participate in the 
furtherance of the goals of the association.'' The revised criterion 
reads somewhat differently in that it clarifies that the criterion 
is satisfied if the association provides members with opportunities 
to participate in the furtherance of the goals of the association 
even if a member does not necessarily choose to participate. This 
change in language is simply a clarification.
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    As part of applying the totality of the circumstances test, NCUA 
will also consider whether an FCU enrolls a member into an association 
without the member's knowledge or consent. If an FCU enrolls members 
who do not knowingly and voluntarily join the association then this 
will reflect negatively on the association's qualification for FCU 
membership, as it appears that the members do not truly support the 
goals and mission of the association. An FCU may pay a member's 
associational dues if the member has given consent.

Grandfathering in Associations

    NCUA will grandfather in existing members from all qualified 
associations currently part of an FCU's membership. NCUA will consider 
if there are any associations in an FCU's FOM that need to be removed 
because they no longer meet the totality of circumstances test on a 
case-by-case basis. If an association that is in an FCU's FOM undergoes 
significant changes that result in the group no longer meeting the 
totality of the circumstances test, the FCU should notify NCUA's Office 
of Consumer Protection, Division of Consumer Access, to determine 
whether the group should be removed from the FOM or if such non-
compliance can be cured.

Does the proposed rule create any new burdens for FCUs?

    NCUA does not believe that the proposed requirements pertaining to 
the associational common bond provisions will add a significant 
administrative burden for FCUs. NCUA expects that the proposed changes 
will simplify the process of evaluating the existence of a qualifying 
associational common bond. FCUs will no longer have to include 
supplemental documentation, such as bylaws, with requests to serve pre-
approved associational groups.

III. Regulatory Procedures

A. Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact a regulation may have on a 
substantial number of small entities.\19\ For purposes of this 
analysis, NCUA considers small credit unions to be those having under 
$50 million in assets.\20\ This rule would affect relatively few FCUs 
and the associated cost is minimal. Accordingly, NCUA certifies the 
rule will not have a significant economic impact on small credit 
unions.
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    \19\ 5 U.S.C. 603(a).
    \20\ Interpretive Ruling and Policy Statement 03-2, 68 FR 31949 
(May 29, 2003), as amended by Interpretative Ruling and Policy 
Statement 13-1, 78 FR 4032 (Jan. 18, 2013).
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B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency by rule creates a new paperwork burden on regulated 
entities or modifies an existing burden.\21\ For purposes of the PRA, a 
paperwork burden may take the form of either a reporting or a 
recordkeeping requirement, both referred to as information collections. 
This proposed rule primarily requires the same information previously 
required and changes none of the forms listed in the Chartering Manual. 
Therefore, this proposed rule will not create new paperwork burdens or 
modify any existing paperwork burdens.
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    \21\ 44 U.S.C. 3507(d); 5 CFR part 1320.
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C. Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. In 
adherence to fundamental federalism principles, NCUA, an independent 
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies 
with the executive order. This rule will not have a substantial direct 
effect on the states, on the connection between the national government 
and the states, or on the distribution of power and responsibilities 
among the various levels of government. NCUA has determined this rule 
does not constitute a policy that has federalism implications for 
purposes of the executive order.

D. Assessment of Federal Regulations and Policies on Families

    NCUA has determined that this proposed rule will not affect family 
well-being within the meaning of Section 654 of the Treasury and 
General Government Appropriations Act, 1999.\22\
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    \22\ Public Law 105-277, 112 Stat. 2681 (1998).
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List of Subjects in 12 CFR Part 701

    Credit, Credit unions, Reporting and recordkeeping requirements.

    By the National Credit Union Administration Board on April 24, 
2014.
Gerard S. Poliquin,
Secretary of the Board.

    For the reasons stated above, NCUA proposes to amend 12 CFR part 
701, Appendix B as follows:

[[Page 24627]]

PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS

0
1. The authority for part 701 continues to read as follows:

    Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759, 
1761a, 1761b, 1766, 1767, 1782, 1784, 1786, 1787, 1789. Section 
701.6 is also authorized by 15 U.S.C. 3717. Section 701.31 is also 
authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601-3610. 
Section 701.35 is also authorized by 42 U.S.C. 4311-4312.

0
2. Section III.A.1. of Chapter 2 of appendix B to part 701 is revised 
to read as follows:

Appendix B to Part 701--Chartering and Field of Membership Manual

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III.A.1--General

    A single associational federal credit union may include in its 
field of membership, regardless of location, all members and 
employees of a recognized association. A single associational common 
bond consists of individuals (natural persons) and/or groups (non-
natural persons) whose members participate in activities developing 
common loyalties, mutual benefits, and mutual interests. Separately 
chartered associational groups can establish a single common bond 
relationship if they are integrally related and share common goals 
and purposes. For example, two or more churches of the same 
denomination, Knights of Columbus Councils, or locals of the same 
union can qualify as a single associational common bond.
    Individuals and groups eligible for membership in a single 
associational credit union can include the following:
     Natural person members of the association (for example, 
members of a union or church members);
     Non-natural person members of the association;
     Employees of the association (for example, employees of 
the labor union or employees of the church); and
     The association.
    Generally, a single associational common bond does not include a 
geographic definition and can operate nationally. However, a 
proposed or existing federal credit union may limit its field of 
membership to a single association or geographic area. NCUA may 
impose a geographic limitation if it is determined that the 
applicant credit union does not have the ability to serve a larger 
group or there are other operational concerns. All single 
associational common bonds should include a definition of the group 
that may be served based on the association's charter, bylaws, and 
any other equivalent documentation.
    Applicants for a single associational common bond federal credit 
union charter or a field of membership amendment to include an 
association must provide, at the request of NCUA, a copy of the 
association's charter, bylaws, or other equivalent documentation, 
including any legal documents required by the state or other 
governing authority.
    The associational sponsor itself may also be included in the 
field of membership--e.g., ``Sprocket Association''--and will be 
shown in the last clause of the field of membership.

III.A.1.a--Threshold Requirement Regarding the Purpose for Which an 
Associational Group Is Formed and the Totality of the Circumstances 
Criteria

    As a threshold matter, when reviewing an application to include 
an association in a federal credit union's field of membership, NCUA 
will determine if the association has been formed primarily for the 
purpose of expanding credit union membership. If NCUA makes such a 
determination, then the analysis ends and the association is denied 
inclusion in the federal credit union's field of membership. If NCUA 
determines that the association was formed to serve some other 
separate function as an organization, then NCUA will apply the 
following totality of the circumstances test to determine if the 
association satisfies the associational common bond requirements. 
The totality of the circumstances test consists of the following 
factors:
    1. Whether the association provides opportunities for members to 
participate in the furtherance of the goals of the association;
    2. Whether the association maintains a membership list;
    3. Whether the association sponsors other activities;
    4. Whether the association's membership eligibility requirements 
are authoritative;
    5. Whether members pay dues;
    6. 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;
    7. The frequency of meetings; and
    8. Separateness--NCUA reviews if there is corporate separateness 
between the group and the federal credit union. The group and the 
federal credit union must operate in a way that demonstrates the 
separate corporate existence of each entity. NCUA will consider 
several factors in determining if corporate separateness exists 
between a group and a federal credit union. The presence or absence 
of any one factor is not determinative. The factors NCUA will 
consider are as follows:
     Their respective business transactions, accounts, and 
records are not intermingled;
     Each observes the formalities of its separate corporate 
procedures;
     Each is adequately financed as a separate entity in the 
light of normal obligations reasonably foreseeable in a business of 
its size and character;
     Each is held out to the public as a separate 
enterprise; and
     The group maintains a separate physical location, which 
does not include a P.O. Box or other mail drop or on premises owned 
or leased by the federal credit union.
    NCUA considers all of the totality of the circumstances test 
factors together. No one factor alone is determinative of membership 
eligibility as an association. The totality of the circumstances 
controls over any individual factor in the test. However, NCUA's 
primary focus will be on factors 1-4.

III.A.1.b--Pre-Approved Groups

    NCUA automatically approves the below groups as satisfying the 
associational common bond provisions. However, if NCUA finds that, 
for any reason, any such group does not satisfy the associational 
common bond provisions, then such group may be removed from the 
relevant federal credit union fields of membership, if appropriate. 
NCUA only approves regular members of an approved group. Honorary, 
affiliate, or non-regular members do not qualify.
    These groups are:
    (1) Alumni associations;
    (2) Religious organizations, including churches or groups of 
related churches;
    (3) Electric cooperatives;
    (4) Homeowner associations;
    (5) Labor unions;
    (6) Scouting groups; and
    (7) Associations that have a mission based on preserving or 
furthering the culture of a particular national or ethnic origin.

III.A.1.d--Additional Information

    A support group whose members are continually changing or whose 
duration is temporary may not meet the single associational common 
bond criteria. Each class of member will be evaluated based on the 
totality of the circumstances. Individuals or honorary members who 
only make donations to the association are not eligible to join the 
credit union.
    Educational groups--for example, parent-teacher organizations 
and student organizations in any school--may constitute 
associational common bonds.
    Student groups (e.g., students enrolled at a public, private, or 
parochial school) may constitute either an associational or 
occupational common bond. For example, students enrolled at a church 
sponsored school could share a single associational common bond with 
the members of that church and may qualify for a federal credit 
union charter. Similarly, students enrolled at a university, as a 
group by itself, or in conjunction with the faculty and employees of 
the school, could share a single occupational common bond and may 
qualify for a federal credit union charter.
    Tenant groups, consumer groups, and other groups of persons 
having an ``interest in'' a particular cause and certain consumer 
cooperatives may also qualify as an association.
    Associations based primarily on a client-customer relationship 
do not meet associational common bond requirements. Health clubs are 
an example of a group not meeting associational common bond 
requirements, including YMCAs. However, having an incidental client-
customer relationship does not preclude an associational charter as 
long as the associational common bond requirements are met. For 
example, a fraternal association that offers insurance, which is not 
a condition of

[[Page 24628]]

membership, may qualify as a valid associational common bond.
* * * * *
[FR Doc. 2014-09812 Filed 4-30-14; 8:45 am]
BILLING CODE 7535-01-P