Missouri Revised Statutes













Chapter 370

Credit Unions

←370.080

Section 370.081.1

370.082→

August 28, 2015

Merger and consolidation of credit unions--additional member groups and geographic areas--appeals.

370.081. 1. A credit union may add to its membership additional groups

or geographic areas that comply with the provisions of subsection 2 of

section 370.080 if the credit union meets the criteria set forth in this

section.



2. Except as provided in subdivisions (1), (2), and (3) of this

subsection, only employer groups with fewer than three thousand members shall

be eligible to be included in the credit union's field of membership, unless:



(1) Any employer group which the commission determines, in writing and

in accordance with the guidelines it has set forth, could not feasibly or

reasonably establish a new single common-bond credit union because:



(a) The employer group lacks sufficient volunteer or other resources to

support the efficient and effective operation of a credit union;



(b) The employer group does not meet the criteria which the commission

has determined to be important for the likelihood of success in establishing

and maintaining a new credit union;



(c) The employer group would be unlikely to operate a safe and sound

credit union;



(2) The groups are involved in an involuntary merger or when the

director acts as a conservator or liquidating agent; or



(3) The groups are transferred from another credit union in connection

with a merger or consolidation approved by the director, provided when making

this determination the director shall:



(a) Determine whether the service area of the merging credit union is

contiguous to the area served by the continuing credit union;



(b) Assess the breadth of the service area of the combined credit unions;



(c) Assess the ability of the continuing credit union to serve the

combined area; and



(d) Assess the number of voluntary mergers the acquiring credit union

has requested, or received approval for, during the five-year period

preceding the proposed merger.

The director shall not permit state-chartered credit unions to merge without a

thorough assessment by the director that the combined field of membership is

consistent with this chapter and is reasonable in terms of size, service

area, and geographic location.



3. Notwithstanding subsection 2 of section 370.080, the director of the

division of credit unions may allow the membership of a credit union serving

groups of occupation, association or employer to include any person within a

proximate geographic area if:



(1) Such an area meets the definition of a low-income or underserved

community as defined by the credit union commission or the National Credit

Union Administration;



(2) A merger or consolidation has been approved by the director of the

division of credit unions which involves any geographic area credit union.



4. The credit union may apply and receive approval from the director of

the division of credit unions to include the proposed new occupation,

employer, or association groups or geographic areas in the credit union's

membership. In the case of a new credit union application, the organizers of

such credit union as provided in subsection 1 of section 370.080 shall specify

the membership group selected as provided in subsection 2 of section 370.080.

If an existing credit union applies for a field of membership expansion,

such credit union shall select either a geographic area or occupation,

employer, or association group as provided in subsection 2 of section 370.080

which shall be binding for all future expansions. When a credit union serving

occupation, association, or employer groups has converted to a geographic

area credit union, that credit union shall not accept as members new groups

that are headquartered outside the geographic area of the credit union, or

new employees or new members of those groups who work or reside outside the

geographic area of the credit union. Upon receipt of an application from a

credit union to include a new group or new geographic area in its membership,

and no later than five business days after an application has been received,

the director shall cause notice of the application to be published in the

division's electronic bulletin and sent electronically to any party who has

requested notification of such applications. From the date such notice is

published, there shall be a ten-business-day comment period during which any

person or entity desiring to do so may comment on such proposal in writing.

Comments received shall become a part of the credit union's application file,

subject to public inspection and copying. Within ten days after the comment

period ends, the director of the division of credit unions shall issue a

decision either granting or rejecting the credit union's application and

stating the reasons therefor. In addition to any other requirements required

by law or rule, prior to granting the application, the director of the

division of credit unions shall determine that:



(1) The credit union has the immediate ability to serve the additional

group or geographic area. In making this determination, the director shall

consider the data required to be reported on an annual basis by the

state-chartered credit unions that includes aggregated information about the

census tracts in which members reside, the actual or estimated annual income

of members, and types and numbers of loans or extensions of credit for which

members received approval. For the purposes of this section, the term

"member data" shall mean information on the income levels of credit union

members that credit unions are required to report; provided, however, that no

member data includes the names, account numbers, or taxpayer identification

numbers. In the event that the National Credit Union Administration (NCUA)

has a regulation on member data reporting requirements, the state annual

member data report shall be made consistent with NCUA reporting requirements.

The director shall determine the nonproprietary data to be included in the

annual member data report which shall be made available to the public.



(2) No later than five business days after an expansion or merger has

been granted, the director shall cause the decision and findings to be

published in the division's electronic bulletin and sent electronically to

any party who has requested notification of such actions.



5. Within fifteen days after the decision is published, any person or

entity with an interest different from that of a member of the general

public, upon establishing that such person or entity may be aggrieved based

upon competent and substantial evidence of potential actual damages, shall

have the right to contest the decision by appealing the decision to the credit

union commission utilizing the procedure as set out in section 370.063. If

the commission finds that the decision or the findings of the director of the

division of credit unions was arbitrary and capricious or not based on

evidence in the director's possession, the commission shall set aside the

findings and decision of the director of the division of credit unions and

enter its own findings and decision. Any party in the proceeding before the

commission who has exhausted all administrative remedies provided by law may

appeal the decision to the circuit court of Cole County.



6. Subject to the restrictions contained in this chapter, the director of

the division of credit unions shall have the authority to approve

applications to amend bylaws regarding credit union membership or to organize

credit unions that include single or multiple groups.



(L. 1998 H.B. 1323, A.L. 2007 S.B. 591)



(2003) Appeal to commission is applicable to any person or entity

that is adversely affected, directly, indirectly, and to whatever

extent, by the denial or even the approval of a credit union

application. Missouri Bankers Association v. Director, 126 S.W.3d

360 (Mo.banc).





1998



1998



370.081. 1. A credit union may add to its membership additional

groups or geographic areas that comply with the provisions of subsection 2

of section 370.080 if the credit union meets the criteria set forth in this

section.



2. Except as provided in subdivisions (1) and (2) of this subsection,

each state chartered credit union shall be subject to limitations on groups

of members that are no less restrictive than those applicable to federally

chartered credit unions under federal laws and regulations, as such

limitations are amended or added from time to time, they shall be

applicable to each state chartered credit union, and in the absence of

federal law or regulation relating to the size of membership groups, only

groups with fewer than three thousand members shall be eligible to be

included in the credit union's field of membership; unless:



(1) Any group which the commission determines, in writing and in

accordance with the guidelines it has set forth, could not feasibly or

reasonably establish a new single common-bond credit union because:



(a) The group lacks sufficient volunteer or other resources to

support the efficient and effective operation of a credit union;



(b) The group does not meet the criteria which the commission has

determined to be important for the likelihood of success in establishing

and maintaining a new credit union;



(c) The group would be unlikely to operate a safe and sound credit

union;



(2) Any groups transferred from another credit union in connection

with a merger or consolidation approved by the director of the division of

credit unions or in the director's capacity as conservator or liquidating

agent with respect to such credit unions.



3. Notwithstanding subsection 2 of section 370.080, the director of

the division of credit unions may allow the membership of a credit union

serving groups of occupation, association or employer, to include any

person within a community, neighborhood or rural district, if:



(1) Such an area meets the definition of a low-income or underserved

community as defined by the credit union commission or the National Credit

Union Administration;



(2) A merger or consolidation has been approved by the director of

the division of credit unions which involves any community charter credit

union.



4. The credit union may apply and receive approval from the director

of the division of credit unions to include the proposed new groups or

geographic areas in the credit union's membership. In the case of a new

credit union application, the organizers of such credit union as provided

in subsection 1 of section 370.080 shall specify the membership group

selected as provided in subsection 2 of section 370.080. If an existing

credit union applies for a field of membership expansion, such credit union

shall select either a community group or another group as provided in

subsection 2 of section 370.080 which shall be binding for all future

expansions. Upon receipt of an application from a credit union to include

a new group or new geographic area in its membership, the director of the

division of credit unions shall cause notice of the application to be

published in the Missouri Register. From the date such notice is

published, there shall be a ten-business-day comment period during which

any person or entity desiring to do so may comment on such proposal in

writing. Comments received shall become a part of the credit union's

application file, subject to public inspection and copying. Within ten

days after the comment period ends, the director of the division of credit

unions shall issue a decision either granting or rejecting the credit

union's application and stating the reasons therefor. In addition to any

other requirements required by law or rule, prior to granting the

application, the director of the division of credit unions shall make the

following findings:



(1) The credit union has the immediate ability to serve the

additional group or geographic area; and



(2) The proposed additional group or geographic area meets the

requirements of subsection 2 of section 370.080. The director of the

division of credit unions shall cause the decision, along with the

findings, to be published in the Missouri Register.



5. Within fifteen days after the decision is published in the

Missouri Register, any person or entity claiming to be adversely affected

shall have the right to contest the decision by appealing the decision to

the credit union commission utilizing the procedure as set out in section

370.063. If the commission finds that the decision or the findings of the

director of the division of credit unions was arbitrary and capricious or

not based on evidence in the director's possession, the commission shall

set aside the findings and decision of the director of the division of

credit unions and enter its own findings and decision. Any party who is

aggrieved by a final decision of the commission entered pursuant to this

subsection and who has exhausted all administrative remedies provided by

law may appeal the decision to the circuit court of Cole County.



6. Subject to the restrictions contained in this chapter, the

director of the division of credit unions shall have the authority to

approve applications to amend bylaws regarding credit union membership or

to organize credit unions that include single or multiple groups.



Top



Missouri General Assembly



Copyright © Missouri Legislature, all rights reserved.