At the sixth open meeting of 2018, the NCUA approved two final rules of particular and relevant interest to the Credit Union industry: 1) field-of-membership chartering, expansion, or conversion, and 2) greater transparency for members when credit unions who are federally insured seek voluntary mergers.


Consistent with a U.S. District Court decision earlier this year, changes to the Field of Membership Rule effective September 1, 2018 are as follows:

  • An applicant for an original community charter, conversion, or expansion has the option of submitting a narrative, with sufficient supporting documentation, to establish the existence of the required well-defined local community;
  • The agency will hold a public hearing on narrative applications where the proposed community’s population exceeds 2.5 million; and,
  • For communities that are subdivided into metropolitan divisions, the Board will permit an applicant to designate a portion of the area as its community, regardless of division boundaries.

To ensure members are better informed about voluntary mergers, the other approved rule will:

  • Increase the minimum required time for notice to members before a merger vote to 45 days;
  • Require the merging credit unions to disclose merger-related compensation increases above $10,000 or 15 percent of compensation, whichever is greater, for certain employees and officials of the merging credit union;
  • Clarify the contents and format of the members’ notice to provide better information; and,
  • Provide a method to communicate to the NCUA regarding the proposed merger.

This rule will become effective October 1, 2018.

Other topics discussed at this meeting were Member Business Loan definition changes and an Enterprise Solution Modernization Program update. For complete information about the two final rules and other meeting discussions, visit

Need a merger or charter change package but too busy running your credit union to get it done? We can help! Contact us and we’ll help put together a package that will comply with all NCUA and ODFI requirements. Call 866.965.2294 or email /