The federal regulator of credit unions has issued a charter under its provisional charter pilot initiative for what is called the Fair Break Federal Credit Union in Memphis, Tenn., the agency said Thursday.
Under the National Credit Union Administration’s (NCUA) provisional charter pilot initiative, a credit union’s organizers may obtain a federal credit union charter, and they have 12 months to obtain the capital necessary to begin operations, the agency noted. “A charter under the provisional pilot initiative does not authorize a credit union to accept member deposits or originate loans until the credit union obtains its targeted level of donated capital,” it said.
Fair Break FCU is the second credit union to be chartered under the agency’s provisional charter pilot initiative. It has the NCUA’s low-income designation and primarily serves people who live, work, worship, or attend school in the Memphis-Clarksdale-Forrest City, TN-MS-AR Combined Statistical Area as well as serving those participating in programs to alleviate poverty or distress within the community, the agency said.
The new credit union’s charter was effective May 30, the NCUA said, and is the third FCU chartered in 2024. It is the second chartered under the provisional charter pilot initiative, which was rolled out in June 2023.