SCOPE OF AUTHORITY OF STATE CREDIT UNION BOARD

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December 31, 2020


Request: What is the State Credit Union Board’s scope of authority over certain credit union acquisitions, sales, and mergers?

Conclusion:  The State Credit Union Board: 1) may authorize a state credit union’s acquisition of certain bank assets and liabilities, provided such acquisition is permissible under the credit union’s charter and applicable state and federal law; 2) may not authorize a purchasing credit union to provide services to acquired former bank customers who reside outside the purchasing credit union’s field of membership; 3) may expand a purchasing credit union’s field of membership to include an additional 75 miles around a purchased bank’s former home office; 4) may approve a credit union merger into more than one continuing credit union; and 5) may authorize the sale of a credit union to a bank.

Opinion: 2020-L-10

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