The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 221 : Organization and Management of Credit Union

Subchapter 004 : MEMBERSHIP

• § 31401. Field of membership

  (a)(1) Except as provided in subdivision (2) of this subsection, the field of membership of a credit union is limited to:

  (A) a single common bond membership;

  (B) a multiple common bond membership;

  (C) persons or organizations within one or more well-defined communities, neighborhoods, municipalities, or counties; or

  (D) any combination of subdivisions (A), (B), or (C).

  (2) Within the field of membership of a credit union, members may include:

  (A) members of the immediate family or household of all members of the credit union included under subdivision (1)(A), (B), (C), or (D) of this subsection;

  (B) organizers and employees of such credit union;

  (C) the surviving spouse or party to a civil union of a deceased member of such credit union; and

  (D) notwithstanding any change in employment, occupation, residence, or other condition initially controlling the eligibility for membership in any credit union, any person properly admitted to membership in a credit union who may continue membership during such person’s lifetime.

  (3) The field of membership may include associations and organizations of individuals, the majority of whom are eligible for membership in such credit union, partnerships in which the majority of the partners are individuals who are eligible for membership in such credit union, corporations in which the majority of shareholders are individuals who are eligible for membership in such credit union, and such entities in which a majority of the employees are individuals who are eligible for membership in such credit union.

  (b)(1) The Commissioner may approve an amendment to the bylaws of a credit union to expand its field of membership if the Commissioner finds that:

  (A) the credit union has not engaged in any material unsafe or unsound practice during the one-year period preceding the date on which the proposed amendment is filed with the Commissioner;

  (B) the credit union maintains its net worth in accordance with subchapter 5 of this chapter; and

  (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.

  (2) The Commissioner may approve an amendment to the bylaws of a credit union to change its field of membership whenever the Commissioner determines that continued operation of the credit union without the proposed amendment may result in liquidation or merger of such credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 328, eff. July 1, 2022.)