AUSTIN, Texas–The Texas Credit Union Department is mulling a number of amendments to rules for state charters around the issue of field of membership.
According to the Cornerstone CU League, the proposed amendments allow more flexibility to CUs for determining a community of interest and should result in reduced regulatory burden for CUs.
“The proposal revises and updates certain characteristics used to determine if a unifying factor among a group of persons satisfies the requirements and qualifies for inclusion in a CU’s FOM,” noted the Cornerstone league, which first reported the proposals. “The proposal clarifies that only a credit union-owned, deposit-taking ATM is included in the definition of ‘office.’
“The proposed amendments…make changes to reflect that a CU’s FOM may include various communities of interest,” the league noted. “More specifically, the amendments expand the local service area requirement to a newly delineated market area with certain limitations. The amendments eliminate many existing restrictions imposed by the Commissioner. The amendments also add a direct marketing restriction. Additionally, the amendments delete the restrictions for underserved communities by granting TCUD a more permissive waiver provision. The proposal makes amendments necessary to include the provisions of Subchapter K, related to CU Development Districts. The amendments change and streamline the notice requirements. Finally, the rule places certain affirmative obligations on a CU that presents an application to expand its FOM.