(1) The application to include a separate
group with a common bond of association must include at least the following
information:
(a) The name of the applicant
credit union;
(b) Evidence that
two-thirds (2/3) of the applicant's board of directors have adopted the
proposed amendments;
(c) A detailed
description of the group including its charter or articles of incorporation,
its bylaws, the qualifications and requirements for membership, the number and
geographic location of its current members and the group's proximity to the
credit union's service facility;
(d) If the group to be added is located
outside the State of Tennessee, provide written evidence that the credit union
has complied with the other state's laws;
(e) A resolution from the petitioning group's
governing body providing:
1. That the members
have been informed of the proposal to affiliate with the applicant and desire
to be associated with the applicant;
2. Whether the members of the group are
currently eligible for membership, based upon their association, in a state or
federally chartered credit union. If the members of the association are
eligible for membership in another credit union based upon membership in the
association, the applicant must make best efforts to provide a statement of
no-objection from the other credit union;
(f) Any other information requested by the
Commissioner.
(2)
Overlap Protection: If the applicant cannot obtain the letter of no-objection
described in subsection (1)(e)(2.) above, after having made a best efforts
attempt to do so, the Commissioner may consider the following:
(a) The attempts made by the applicant to
informally resolve the overlap with the affected credit union;
(b) Documentation concerning the interests of
the association to be added. A petition signed by a majority of the
association's members will be strongly considered. The applicant could also
include a letter from the sponsoring association outlining the wishes of its
members; and
(c) Evidence that the
other credit union has failed to adequately serve the association after a
reasonable period of time, and how the applicant plans to improve this service.
The applicant must supply a copy of the information required in
(a), (b) and (c) of this subsection to the other credit union, which will be
given thirty (30) days following receipt of such information to submit to the
Department any comments on the overlap. The response may want to include such
information as the percentage of the association who participate as members in
the credit union and the financial impact that the overlap might have on the
credit union.
