Senate Bill No. 514

(By Senator Jenkins)

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[Introduced February 7, 2006; referred to the Committee

on Banking and Insurance.]

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A BILL to amend and reenact §31C-4-1 of the Code of West Virginia, 1931, as amended, relating to credit unions generally; and including persons with common bonds or persons who reside in well-defined communities as eligible for membership in a credit union.

Be it enacted by the Legislature of West Virginia:
That §31C-4-1 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 4. MEMBERSHIP.
§31C-4-1. Membership defined.
(a) The membership of a credit union shall consist of those persons who share a common bond set forth in the bylaws, have been duly admitted members, have paid any required one-time or periodic membership fee, or both, have subscribed to one or more shares and have complied with such other requirements as the articles of incorporation and bylaws specify.
(b) Credit union membership shall be limited to persons within one or more groups having a common bond or bonds of similar occupation, employer, association or interest, and members of the immediate family of such persons the following:
(1) Persons within one or more groups having a common bond or bonds of similar occupation, employer, association or interest; or
(2) Persons who reside or work in a well-defined community, neighborhood or rural district. The Division of Banking shall in its discretion determine whether a proposed field of membership constitutes a "well-defined local community, neighborhood or rural district." In making this determination, the division shall give consideration to the definition of the term that has been adopted by the National Credit Union Administration and is legally effective; and
(3) Members of the immediate family of persons who qualify for credit union membership.


NOTE: The purpose of this bill is to include persons with common bonds or persons who reside in well-defined communities as eligible for membership in a credit union.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.