La. Admin. Code tit. 10 § IX-513

Current through Register Vol. 50, No. 11, November 20, 2024

Section IX-513 - Adding Associational Groups

A. Pursuant to his authority under the Louisiana Credit Union Law and the stated purpose of the same, the commissioner has determined that, if there are no safety and soundness concerns, it is appropriate to allow expansions of a credit union's FOM involving members and employees of an association in accordance with Sections 645(B) of the Louisiana Credit Union Law. At a minimum, the commissioner may consider the following when assessing an application to add an associational group to a credit union's FOM:

1. whether the group meets the definition of an association as contained in this rule;

2. whether members pay dues;

3. whether members have voting rights;

4. whether the association maintains a membership list;

5. whether the association maintains separate books and records; and

6. the frequency of meetings and other group activities.

B. The association may not be created or organized by the credit union or any of its officials or employees. The association must be a separate, legal entity that maintains separate financial records.

La. Admin. Code tit. 10, § IX-513

Promulgated by the Office of the Governor, Office of Financial Institutions, LR 33:1632 (August 2007).

AUTHORITY NOTE: Promulgated in accordance with R.S. 6:121(B)(1).