6.2-1328 - (Effective October 1, 2010) Expansion of field of membership. - Virginia Statutes

§ 6.2-1328. (Effective October 1, 2010) Expansion of field of membership.

When practicable and consistent with reasonable safety-and-soundnessstandards, the Commission shall encourage the formation of a separatelychartered credit union instead of adding a new group to the field ofmembership of an existing credit union. If the Commission finds that theformation of a separate credit union by a group desiring such services is notpracticable, or is not consistent with reasonable safety-and-soundnessstandards, it may authorize the group to be included in the field ofmembership of a state credit union that is located within reasonableproximity, if the Commission finds, based on the information it compiles,that the credit union proposed to be expanded:

1. Is adequately capitalized and will continue to have insurance on itsmembers' shares and other accounts;

2. Has not engaged in any materially unsafe or unsound practice in the yearpreceding its application to expand; and

3. Has the management, administrative and financial resources to serve theadditional group effectively. The Commission shall not authorize the proposedinclusion of a new group unless it finds that any potential harm to anotherinsured credit union or its members which would likely result from theproposed expansion is clearly outweighed in the public interest by theprobable beneficial effects of the proposed expansion in meeting theconvenience and needs of the members of the group proposed to be included.

(1999, c. 63, § 6.1-225.23:1; 2010, c. 794.)