                                 CODE OF VIRGINIA

EXPANSION OF FIELD OF MEMBERSHIP (§ 6.2-1328)

When practicable and consistent with reasonable safety-and-soundness standards,
the Commission shall encourage the formation of a separately chartered credit
union instead of adding a new group to the field of membership of an existing
credit union. If the Commission finds that the formation of a separate credit
union by a group desiring such services is not practicable, or is not consistent
with reasonable safety-and-soundness standards, it may authorize the group to be
included in the field of membership of a state credit union that is located
within reasonable proximity, 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 its
members&#8217; shares and other accounts;

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

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

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