Rules & Regulations of the State of Tennessee
Title 0180 - Financial Institutions
Chapter 0180-29 - Credit Union Field of Membership Expansion
Section 0180-29-.12 - APPROVAL OF APPLICATION

Universal Citation: TN Comp Rules and Regs 0180-29-.12

Current through April 3, 2024

(1) The Commissioner shall give written approval or denial of an application made in conformance with this Chapter within thirty days from the date it is deemed complete. The Commissioner's decision will take into consideration the following general criteria and other issues or facts that may be relevant to the application:

(a) Whether the application is consistent with the provisions of T.C.A. § 45-4-101 et seq. and this Chapter;

(b) Whether the proposed new group possesses a common bond of occupation or association, or constitutes a community, as defined in Rule 0180-29-.03;

(c) Whether the applicant is in a safe and sound condition and possesses the financial and managerial capability to provide credit union service to the proposed group in a safe and sound manner;

(d) Whether approval of the application might reasonably threaten the viability of another credit union; and

(e) Whether approval of the application will adversely impact the safety and soundness of the applicant.

(2) In most cases, field of membership amendments will only be approved for credit unions which are operating satisfactorily. If a state credit union is having difficulty providing good service to its current membership, it may have even more difficulty serving an enlarged field of membership. In some cases, expanding the field of membership of a struggling credit union may do more harm than good. A struggling credit union's resources may be hampered or further strained by increasing the field of membership, thereby increasing the credit union's problems.

Authority: T.C.A. §§ 45-1-107(h), 45-4-102(b), 45-4-301(a), 45-4-501(9), 45-4-1001(b), and 45-4-1003(e).

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