NCUA updates guidance, templates for community charter conversions, expansions

Revisions in the agency’s chartering and field of membership manual in recent years are reflected in revised guidance and templates issued Wednesday in a Letter to Federal Credit Unions from the National Credit Union Administration (NCUA).

The guidance, in letter 21-FCU-01, replaces the guidance contained previously in 2011 (through letter 11-FCU-03). The agency noted that revisions to the chartering/FOM manual since the issuance of the 2011 guidance provided more flexibility to federal credit unions, including a streamlined business plan for use when applying to expanded services to an area that borders a community already served by a credit union.

Included in Letter 21-FCU-01 are links to templates used for the business and marketing plan an FCU must include with its request to convert from a multiple-common-bond or other type of field of membership to a community field of membership; a streamlined business marketing plan of a current community chartered credit union to seek expansion to a bordering area; and pro forma financial statements used to document financial projections when seeking conversion to a community charter.

The letter also addresses when a credit union is required to demonstrate common interests or interaction; and the need to document decisions not to include the “core” (the most populated county or named municipality) of a core-based statistical area proposed for inclusion in the credit union’s proposed community.

NCUA Letter to Federal Credit Unions (21-FCU-01)