Ga. Comp. R. & Regs. R. 80-2-8-.04 - Requirements for Geographic Groups
(1) A credit union shall request approval
from the department to add a geographic common bond group to its field of
membership by an amendment to its bylaws. O.C.G.A. §
7-1-630(b)
permits a common bond of a field of membership to be "residence or employment
within a well-defined neighborhood, community, or rural district."
(2) Definitions for geographic groups:
(a) "Well defined" shall mean able to be
described in writing and delineated by geographic or political boundaries on a
map.
(b) "Neighborhood" shall mean
a small part of a geographic unit considered in regard to its inhabitants or
distinctive characteristics. It will have unifying characteristics such as
recreational, associational or social facilities or functions for
residents.
(c) "Community" shall
mean an area where:
1. Residents share common
political, environmental, geographical or economic characteristics that tend to
create a mutual interest; or
2.
Residents share common facilities or services such as an education or
transportation system, recreational or cultural facilities, government, medical
services, newspaper, fire or police protection, public utilities and services
or other unifying characteristics that tend to create interaction or a mutual
interest.
(d) "Rural
District" shall mean an area that is outside a Metropolitan Statistical Area
(MSA) as those areas are established from time to time by the United states
Office of Management and Budget. It should also reflect a commonality of
interest which may be participation or membership in agricultural, land use, or
soil conservation districts or associations.
(3) A geographic group common bond request
shall be accompanied by application to the department and a proposed change to
the credit union's bylaws. In reviewing such application, the department shall
consider:
(a) Whether the well-defined area
has adequate unifying characteristics or a mutual interest such that the safety
and soundness of the institution, and protection of the funds invested by
members, is maintained;
(b)
Consistent with Chapter 1 of Title 7, the ability of state credit unions to
maintain parity and to compete fairly with their federal counterparts, and the
law and rules of the National Credit Union Administration regarding community
common bonds;
(c) Service by the
credit union that is responsive to the needs of prospective members, to promote
thrift and create a source of credit at reasonable rates;
(d) Protection for the interests of current
and future members of the credit union; and
(e) The encouragement of economic progress in
the state by allowing the opportunity to expand services and facilities.
(4) The applicant credit
union shall have the burden to show to the department such facts and data that
support the requirements and considerations in this rule and department
policy.
(5) The department shall
formulate detailed policies and procedures to guide credit unions in making
applications for geographic groups, and to give specific requirements. The
financial and managerial capacity of a credit union shall be a primary
consideration for the department in approving any geographic group common bond.
The credit union must demonstrate that the size, capability and experience of
its management is adequate to meet the demands of the geographic group
proposed. A comprehensive strategic and ongoing business plan will be required
that addresses the services to be provided, impact on the credit union's
capital and resources, adequacy of fixed assets, service distribution
capability, data management facilities, and ability of management to recognize,
monitor and control risk.
Notes
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