Rule2021-25609
Chartering and Field of Membership-Shared Facility Requirements
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 24, 2021
Effective
December 27, 2021
Issuing agencies
National Credit Union Administration
Abstract
The NCUA Board ("Board") is adopting a final rule amending its chartering and field of membership ("FOM") rules to modernize requirements related to service facilities for multiple common bond ("MCB") federal credit unions ("FCUs"). The final rule provides that shared locations are service facilities for purposes of MCB FCU additions of groups, regardless of whether the FCU has an ownership interest in the shared branching network providing the locations. Shared locations, including electronic facilities offering required services such as video teller machines, are also service facilities for purposes of MCB FCU additions of underserved areas, regardless of whether the FCU has an ownership interest. The final rule does not include other changes proposed to the definition of service facility; accordingly, ATMs continue to be excluded from the definition of service facility for additions of underserved areas.
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<title>Federal Register, Volume 86 Issue 224 (Wednesday, November 24, 2021)</title>
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[Federal Register Volume 86, Number 224 (Wednesday, November 24, 2021)]
[Rules and Regulations]
[Pages 66927-66931]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25609]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 701
RIN 3133-AF23
Chartering and Field of Membership--Shared Facility Requirements
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule.
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SUMMARY: The NCUA Board (``Board'') is adopting a final rule amending
its chartering and field of membership (``FOM'') rules to modernize
requirements related to service facilities for multiple common bond
(``MCB'') federal credit unions (``FCUs''). The final rule provides
that shared locations are service facilities for purposes of MCB FCU
additions of groups, regardless of whether the FCU has an ownership
interest in the shared branching network providing the locations.
Shared locations, including electronic facilities offering required
services such as video teller machines, are also service facilities for
purposes of MCB FCU additions of underserved areas, regardless of
whether the FCU has an ownership interest. The final rule does not
include other changes proposed to the definition of service facility;
accordingly, ATMs continue to be excluded from the definition of
service facility for additions of underserved areas.
DATES: This rule is effective December 27, 2021.
FOR FURTHER INFORMATION CONTACT: Elizabeth Wirick, Senior Staff
Attorney, Office of General Counsel, at 1775 Duke Street, Alexandria,
VA 22314 or telephone: (703) 518-6545.
SUPPLEMENTARY INFORMATION:
I. Proposed Rule
II. Legal Authority
III. Public Comments on the Proposed Rule and Final Rule
IV. Regulatory Procedures
I. Proposed Rule
The NCUA's Chartering and Field of Membership Manual, incorporated
as Appendix B to part 701 of its regulations (``Chartering Manual'')
\1\ implements the FOM requirements and limitations established by the
Federal Credit Union Act (``the Act'') \2\ for FCUs. At its December
17, 2020, meeting, the Board approved a notice of proposed rulemaking
to revise the Chartering Manual's definition of ``service facility.''
\3\ The definition of ``service facility'' pertains to the addition of
groups and underserved areas to the FOM of a MCB FCU, one of three
types of FCU charters permitted under the Act. Among the Act's
requirements for adding a group to a MCB FCU is that the credit union
must be ``within reasonable proximity to the location of the group
whenever practicable and consistent with reasonable standards for the
safe and sound operation of the credit union.'' \4\ Similarly, one of
the Act's requirements for adding an underserved area to a MCB FCU is
that ``the credit union establishes and maintains an office or
facility'' in the underserved area.\5\ The Chartering Manual implements
these geographical requirements by limiting MCB FCUs to adding only
groups that are within the service area of one of the FCU's service
facilities and requiring MCB FCUs adding an underserved area to
establish within two years, and maintain, an office or service facility
in the underserved area.\6\ As discussed in greater detail in the
proposed rule, the Chartering Manual defines ``service facility''
differently for group additions and underserved area additions,
requiring a higher level of services for service facilities in
underserved areas.\7\ Under the existing rule, ATMs do not qualify as
service facilities for purposes of underserved area additions. The
existing rule also requires that FCUs adding a group or an underserved
area around a shared facility either have an ownership interest in the
shared branching network providing the facility or that the shared
facility is local to the FCU.\8\
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\1\ 12 CFR part 701, Appendix B.
\2\ 12 U.S.C. 1750 et. seq.
\3\ 86 FR 1826 (Jan. 11, 2021), <a href="https://www.govinfo.gov/content/pkg/FR-2021-01-11/pdf/2020-28277.pdf">https://www.govinfo.gov/content/pkg/FR-2021-01-11/pdf/2020-28277.pdf</a>.
\4\ 12 U.S.C. (f)(1)(B).
\5\ Id. 1759(c)(2)(B).
\6\ Chartering Manual, Sec. Sec. 2.IV.A.1.; 2.III.F.
\7\ 86 FR 1826 (Jan. 11, 2021).
\8\ Chartering Manual, App. 1, Glossary.
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The proposed rule would eliminate the ownership requirement for
shared facilities, so that facilities of any shared branch network in
which an FCU participates, regardless of ownership interest, would
qualify as a service facility for the addition of groups or underserved
areas. The proposed rule would also conform the definitions of service
facility for group additions and underserved area additions, which
would have resulted in ATMs, including shared ATMs, qualifying as
service facilities for underserved area additions. Finally, the Board
requested comments about whether the definition of service facility
should further evolve to reflect the increasing role of
[[Page 66928]]
technology in the provision of financial services by permitting FCUs'
interactive websites and mobile banking applications to be considered
service facilities.
II. Legal Authority
The Board is issuing this rule pursuant to its authority under the
FCU Act. Under the FCU Act, the NCUA is the chartering and supervisory
authority for FCUs and the Federal supervisory authority for all
federally insured credit unions (``FICUs'').\9\ The FCU Act grants the
Board a broad mandate to issue regulations governing both FCUs and
FICUs. Section 120 of the FCU Act is a general grant of regulatory
authority and authorizes the Board to prescribe rules and regulations
for the administration of the FCU Act.\10\
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\9\ 12 U.S.C. 1752-1775.
\10\ Id. 1766(a).
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The Act requires the Board to develop regulations to establish the
criteria for additions of groups and requires the Board to approve an
MCB FCU's addition of underserved areas.\11\ The Act does not use the
term ``service facility.'' Rather, the Board adopted the term ``service
facility'' to define the limits of reasonable proximity.\12\ As
discussed in the proposed rule, the Act does not dictate the agency's
prior position requiring ownership in a shared branching network or its
current decision to continue excluding ATMs from the definition of
service facility for purposes of underserved area expansion.
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\11\ Id. 1759(c); (d)(3).
\12\ 63 FR 71998, 72002 (Dec. 30, 1998); 68 FR 18334, 18335
(April 15, 2003).
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Agencies must ``use the same procedures when they amend or repeal a
rule as they used to issue the rule in the first instance.'' \13\
Accordingly, agencies cannot reverse rules adopted by notice-and-
comment rulemaking by other, less transparent methods.\14\ The term
``service facility'' appears in the Chartering Manual, which the Board
has promulgated and amended using notice and comment rulemaking. The
Board has engaged in notice and comment rulemaking to change its
position regarding ownership requirements for shared branch networks.
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\13\ Perez v. Mortgage Bankers Ass'n, 575 U.S. 92, 101 (2015).
\14\ Nat'l Family Planning and Reproductive Health Ass'n, Inc.
v. Sullivan, 979 F.2d 227, 236 (D.C. Cir. 1992). (``[The agency] may
not constructively rewrite the regulation, which was expressly based
upon a specific interpretation of the statute, through internal
memoranda or guidance directives that incorporate a totally
different interpretation and effect a totally different result'');
Clean Ocean Action v. York, 57 F.3d 328 (3d Cir. 1995).
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III. Public Comments on the Proposed Rule and Final Rule
The proposed rule provided for a 30-day public comment period,
which closed on February 10, 2021. The NCUA received more than 700
comments on the proposed rule, 680 of which were identical or nearly
identical form letters opposing the proposed rule. The form letter
focused on opposing the proposed expansion of the definition of service
facility to include ATMs in underserved areas and the request for
comments on further expanding the definition of service facility. Of
the 34 unique comments on the proposed rule, 21 commenters generally
favored the rule and 13 commenters opposed it. Credit unions and
related groups submitted the supportive comments, while banks, banking
trade associations and individuals submitted the opposing comments,
including the form letter.
A. Changes to the Definition of Service Facility for Purposes of Group
Additions
Thirteen commenters specifically addressed the proposed removal of
the ownership requirement for shared facilities, with ten supporting it
and three opposed. The supportive comments echoed the Board's position
in the proposed rule regarding the difficulty of obtaining ownership
interests in some shared branching networks, the ongoing evolution in
the delivery of financial services, and the fact that ownership, or
lack thereof, of the entity offering the shared locations does not
affect the services that members can receive at those locations. One
commenter also noted that the costs of the shared facility ownership
requirement might prevent smaller FCUs from being able to expand around
shared locations. The opposing commenters, all banking trade
associations, noted that relaxation of the ownership requirement would
enable FCUs to expand nationwide. One opposing commenter also alleged
that the Board did not sufficiently explain the reason for the change
because consumers use ATMs the same way they did 20 years ago.
The Board is adopting the change to the service facility ownership
requirement for group additions by MCB FCUs as proposed. The Board
agrees with the commenters who note that the services available to
credit union members are the same regardless of whether the credit
union has an ownership interest in the facility. The Board also agrees
that the ownership requirement has the potential to disadvantage
smaller FCUs, for whom the investment necessary for ownership in a
shared branching network may be cost-prohibitive. The Board does not
dispute the opposing commenters' observation that permitting shared
locations to qualify as service facilities enables MCB FCUs to add
groups that may not have a location in reasonable proximity to a
facility solely owned by and dedicated to a particular FCU. This
potential, however, already exists under the current rule, except that
only FCUs with the resources to invest in a shared branching network
can utilize it. Far from being the ``red herring'' one commenter termed
it, the barriers to using shared facilities to expand resulting from
the ownership requirement are likely to fall most heavily on smaller,
less resourced FCUs. Accordingly, the FCUs most likely to benefit from
this change are precisely the type of community-based FCUs the opposing
commenters indicate they prefer over what they term the ``large,
growth-oriented credit unions.''
Finally, the Board disagrees with the commenter who said the
proposed rule did not sufficiently explain why its position has
changed, because the services consumers access through ATMs has not
changed. As discussed in the proposed rule, the Board examined the
statutory language and intent and determined that its prior
interpretation, requiring an ownership interest, was not dictated by
the Act.\15\ As also discussed, changes to the structure of shared
branching arrangements, as well as consumers' increasing comfort with
using electronic facilities that may be distant from the physical
location of their financial institution, prompted the Board to consider
this change. Nor does the language in the legislative history
encouraging NCUA to ``strongly favor placing groups with local credit
unions'' \16\ dictate an ownership requirement. An FCU can be local to
the location of a group if it can serve members of the group desiring
credit union services, and it can serve those members through a shared
facility regardless of ownership.
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\15\ 86 FR 1826, 1827 (Jan. 11, 2021).
\16\ H.R. Rept. No. 105-472, 105th Cong., 2nd Sess. (1998).
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The elimination of the ownership requirement in the final rule is
analogous to the Board's approach to other components of the reasonable
proximity requirement. For example, the Board has always taken the view
that the ``reasonable proximity'' requirement has a geographic
component, but as there is no statutory constraint on the specific
distance, the Board has declined to establish a
[[Page 66929]]
parameter not required by the Act.\17\ In other words, despite some
misconceptions in the past, there is no specific mileage limit or test
to determine reasonable proximity. Similarly, the Board is now
eliminating a requirement imposed by regulation that is not mandated by
statute.
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\17\ OGC Op. ``Reasonable Proximity Analysis'' (June 10, 2020),
<a href="https://www.ncua.gov/regulation-supervision/legal-opinions/2021/reasonable-proximity-analysis">https://www.ncua.gov/regulation-supervision/legal-opinions/2021/reasonable-proximity-analysis</a>.
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B. Change to the Definition of Service Facility for Purposes of
Underserved Area Additions
For underserved areas, the current definition of ``service
facility'' is more limited and allows fewer kinds of facilities to
qualify. Specifically, for underserved areas, a service facility
currently includes credit union-owned electronic facilities (other than
ATMs) that take deposits, accept loan applications, and disburse
loans.\18\ Credit union branches, certain shared branches, mobile
branches, and offices operated on a regularly scheduled weekly basis
also meet the current criteria for a service facility in an underserved
area expansion. Shared locations to which an FCU has access by virtue
of participating in a shared branching network without an ownership
interest do not meet the criteria for a service facility in an
underserved area under the current rule. ATMs are also excluded, even
if wholly owned by the FCU. The proposed rule would have changed the
definition to allow all shared facilities, including ATMs, to qualify
as service facilities, without any requirement for ownership in the
shared facility.
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\18\ Id. Sec. 3.III.F.
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The 680 form letter submissions as well as an additional 14
commenters opposed the addition of ATMs as service facilities for
adding underserved areas. Opposing commenters stated the legislative
history of this provision of the Act indicates that Congress did not
intend for an ATM to qualify as a service facility for underserved
areas and questioned whether an ATM could provide the level of service
needed in underserved areas. Only 21 commenters favored this change;
these commenters asserted that expanding the definition of service
facility would allow more FCUs to serve underserved areas. The plain
language of the Act does not prohibit including ATMs in the definition
of service facility for underserved areas, and the Board agrees that
expanding the definition of service facility to include ATMs would
increase service to underserved areas. Nevertheless, after considering
the comments and upon further review, the Board has determined to adopt
only a portion of the proposed changes to the definition of service
facility.
The final rule allows shared facilities, other than ATMs, to count
as service facilities for underserved areas, provided the FCU's
agreement with the shared branching network allows for the shared
location to receive share deposits, accept loan applications, and
disburse loan proceeds. Shared facilities which permit an FCU to offer
these services may be service facilities in underserved areas,
regardless of whether the FCU has an ownership interest in the entity
providing the shared facility. An ownership interest in a shared
facility for purposes of adding an underserved area is not required for
the same reasons that an ownership interest in a shared facility for
purposes of adding a group is not required.
The final rule, however, continues to impose additional
requirements for service facilities in an underserved area. As in the
existing rule, ATMs are not included in the definition of service
facility. The final rule also retains the requirement in the current
rule that a service facility for an underserved area must be a location
that provides all three of the listed services--receiving shares for
deposit, accepting loan applications, and disbursing loan proceeds.
This means that, as stated in a 2012 Office of General Counsel Opinion
Letter, so-called ``video teller machines'' that provide the above
three services are service facilities for purposes of underserved
areas, regardless of ownership.\19\ The Board has determined this
approach will allow more FCUs to offer services to underserved areas
while still ensuring that members added in underserved areas receive a
high level of services. The Board anticipates that this final rule
could improve access to fair, safe and affordable financial services to
individuals in underserved areas especially in minority and rural
communities.
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\19\ OGC Op. No. 11-0965 (Aug. 2012), <a href="https://www.ncua.gov/regulation-supervision/legal-opinions/2012/video-teller-machine">https://www.ncua.gov/regulation-supervision/legal-opinions/2012/video-teller-machine</a>.
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C. Change to the Definition of Service Facility in Chartering Manual
Glossary
As discussed in the preamble to the proposed rule, the current
definition for ``service facility'' in the Chartering Manual's glossary
would benefit from clarification because it does not include a complete
definition specific to each type of proposed FOM addition. Although the
current definition references requirements for underserved area service
facilities in the final sentence, it does not include the requirements
for facilities in underserved areas to be a place where shares are
accepted, loan applications are accepted, and loan proceeds are
disbursed. The proposed rule would have conformed the definitions of
service facility and removed this source of confusion. As noted above,
however, the Board determined to retain the existing requirements
related to service facilities for underserved areas, so the definition
of service facility continues to depend on the context.
The definition of service facility in the Chartering Manual
glossary in the final rule reflects the elimination of the ownership
requirements for shared facilities. It also now more fully captures the
additional requirements for service facilities in underserved areas by
incorporating the complete definition of service facility for the
purposes of underserved area additions from Chapter 3 of the Chartering
Manual.
D. Additional Request for Comment
The proposed rule also requested comments on the general issue of
whether the Board's definitions of terms like ``service facility''
should further evolve to include a credit union's transactional website
and mobile banking applications. This was another area of focus for the
form letter, so the vast majority of commenters opposed consideration
of such a change. No regulatory changes were proposed in this regard,
and the Board is not contemplating further action on this issue at this
time. However, the Board is mindful of the increased usage of digital
banking platforms by credit union members and will continue to monitor
the situation.
IV. Regulatory Procedures
A. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires that, in
connection with a notice of proposed rulemaking, an agency prepare and
make available for public comment an initial regulatory flexibility
analysis that describes the impact of a proposed rule on small
entities. A regulatory flexibility analysis is not required, however,
if the agency certifies that the rule will not have a significant
economic impact on a substantial number of small entities (defined for
purposes of the RFA to include FICUs with assets less than $100
million) and publishes its certification and a short, explanatory
statement in the Federal Register together with the rule.
[[Page 66930]]
The final rule changes the criteria for service facilities of MCB
FCUs by eliminating the ownership requirement for shared facilities. As
of June 30, 2021, there are 1,342 MCB FCUs, of which 933 have assets
less than $100 million. Of these 933 MCB FCUs with assets less than
$100 million, 243 are already participating in a shared branching
network. This means that the remaining 690 MCB FCUs under $100 million
may have additional incentive to participate in shared branching, as
they will be able to use shared locations as a basis for expanding
their FOM to additional groups or underserved areas regardless of
ownership.
The ability to add additional members will not have a significant
impact on small FCUs. The negative effect on small FCUs whose members
gain eligibility for membership in another credit union under these
changes is also likely minimal. Although this rule is anticipated to
economically benefit FCUs that choose to expand their FOMs, NCUA
certifies that it will not have a significant economic impact on a
substantial number of small credit unions.
B. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) requires that the Office
of Management and Budget (OMB) approve all collections of information
by a Federal agency from the public before they can be implemented.\20\
The NCUA may not conduct or sponsor, and the respondent is not required
to respond to an information collection unless it displays a valid OMB
control number.
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\20\ 44 U.S.C. 3507(d); 5 CFR part 1320.
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In accordance with the PRA, the information collection requirements
included in this final rule has been submitted to OMB for approval
under control number 3133-0015.
C. Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests. In
adherence to fundamental federalism principles, the NCUA, an
independent regulatory agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive order. This rulemaking will not
have a substantial direct effect on the states, on the connection
between the national government and the states, or on the distribution
of power and responsibilities among the various levels of government.
The NCUA has determined that this final rule does not constitute a
policy that has federalism implications for purposes of the executive
order.
D. Assessment of Federal Regulations and Policies on Families
The NCUA has determined that this final rule will not affect family
well-being within the meaning of Section 654 of the Treasury and
General Government Appropriations Act, 1999.\21\
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\21\ Public Law 105-277, 112 Stat. 2681 (1998).
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E. Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) generally provides for congressional review of agency
rules.\22\ A reporting requirement is triggered in instances where the
NCUA issues a final rule as defined by section 551 of the
Administrative Procedure Act.\23\ An agency rule, in addition to being
subject to congressional oversight, may also be subject to a delayed
effective date if the rule is a ``major rule.'' The NCUA does not
believe this rule is a ``major rule'' within the meaning of the
relevant sections of SBREFA. As required by SBREFA, the NCUA has
submitted this final rule to the Office of Management and Budget
(``OMB'') for it to determine if the final rule is a ``major rule'' for
purposes of SBREFA. The NCUA also will file appropriate reports with
Congress and the Government Accountability Office so this rule may be
reviewed.
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\22\ Public Law 104-121, 110 Stat. 147 (1996).
\23\ 5 U.S.C. 551.
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List of Subjects in 12 CFR Part 701
Credit, Credit unions, Reporting and recordkeeping requirements.
By the National Credit Union Administration Board on November
18, 2021.
Melane Conyers-Ausbrooks,
Secretary of the Board.
For the reasons stated above, the Board amends 12 CFR part 701 as
follows:
PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS
0
1. The authority citation for part 701 continues to read as follows:
Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759,
1761a, 1761b, 1766, 1767, 1782, 1784, 1785, 1786, 1787, 1788, 1789.
Section 701.6 is also authorized by 15 U.S.C. 3717. Section 701.31
is also authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and
3601-3610. Section 701.35 is also authorized by 42 U.S.C. 4311-4312.
0
2. In appendix B to part 701, revise chapter 2 section IV.A.1, chapter
3 section III.F, and the entry for ``service facility'' in appendix 1
glossary to read as follows:
Appendix B to Part 701--Chartering and Field of Membership Manual
* * * * *
Chapter 2--Field of Membership Requirements for Federal Credit Unions
* * * * *
IV--Multiple Occupational/Associational Common Bonds
IV.A.1--General
A federal credit union may be chartered to serve a combination
of distinct, definable single occupational and/or associational
common bonds. This type of credit union is called a multiple common
bond credit union. Each group in the field of membership must have
its own occupational or associational common bond. For example, a
multiple common bond credit union may include two unrelated
employers, or two unrelated associations, or a combination of two or
more employers or associations. Additionally, these groups must be
within reasonable geographic proximity of the credit union. That is,
the groups must be within the service area of one of the credit
union's service facilities. These groups are referred to as select
groups. A multiple common bond credit union cannot include a TIP or
expand using single common bond criteria.
Employment in a corporation or other legal entity which is
related to another legal entity (such as a company under contract
to, and possessing a strong dependency relationship with, the other
company) makes that person part of the occupational common bond of a
select employee group within a multiple common bond. In this
context, a ``strong dependency relationship'' is a relationship in
which the entities rely on each other as measured by a pattern of
regularly doing business with each other, for example, as documented
by the number, the term length, and the dollar volume of prior and
pending contracts between them.
A multiple common bond credit union's charter may also combine
individual occupational groups that each consist of employees of a
retailer or other business tenant of an industrial park, a shopping
mall, office park or office building (each ``a park''). To be able
to have this type of clause in its charter, the multiple common bond
credit union first must receive a request from an authorized
representative of the group or the park to establish credit union
service. The park must be within the multiple common bond credit
union's service area, and each occupational group must have fewer
than 3,000 employees, who are eligible for membership only for so
long as each is employed by a park tenant. Under this clause, a
multiple common bond credit union can enroll group employees only
while the group's retail or business employer is a park tenant, but
such credit unions are free to serve employees of new groups under
the above conditions as each respective employer becomes a park
tenant.
[[Page 66931]]
A federal credit union's service area is the area that can
reasonably be served by the service facilities accessible to the
groups within the field of membership. The service area will most
often coincide with that geographic area primarily served by the
service facility. Additionally, the groups served by the credit
union must have access to the service facility. The non-availability
of other credit union service is a factor to be considered in
determining whether the group is within reasonable proximity of a
credit union wishing to add the group to its field of membership.
A service facility for multiple common bond credit unions is
defined as a place where shares are accepted for members' accounts,
loan applications are accepted, or loans are disbursed. This
definition includes a credit union-owned branch, a mobile branch, an
office operated on a regularly scheduled weekly basis, a credit
union-owned ATM, or a credit union-owned electronic facility that
meets, at a minimum, these requirements. A service facility also
includes a shared branch or a shared branch network location,
including a shared ATM or electronic facility that meets the above
requirements, if the credit union participates in a shared branching
network. This definition does not include the credit union's
internet website.
The select group as a whole will be considered to be within a
credit union's service area when:
<bullet> A majority of the persons in a select group live, work,
or gather regularly within the service area;
<bullet> The group's headquarters is located within the service
area; or
<bullet> The group's ``paid from'' or ``supervised from''
location is within the service area.
* * * * *
Chapter 3--Low-Income Credit Unions and Credit Unions Serving
Underserved Areas
* * * * *
III.F--Service Facility
Once an ``underserved area'' has been added to a federal credit
union's field of membership, the credit union must establish within
two years, and maintain, an office or service facility in the
community. A service facility is defined as a place where shares are
accepted for members' accounts, loan applications are accepted and
loans are disbursed. By definition, a service facility includes a
credit union-owned branch, a shared branch, a mobile branch, an
office operated on a regularly scheduled weekly basis, or a credit
union-owned electronic facility that meets, at a minimum, the above
requirements. A service facility also includes a shared branch or a
shared branch network location, including an electronic facility
that meets the above requirements, if a credit union participates in
a shared branching network.
This definition does not include an ATM or the credit union's
internet website.
* * * * *
APPENDIX 1 GLOSSARY
* * * * *
Service facility--A place where shares are accepted for members'
accounts, loan applications are accepted or loans are disbursed.
This definition includes a credit union-owned branch, a mobile
branch, an office operated on a regularly scheduled weekly basis, a
credit union-owned ATM, or a credit union-owned electronic facility
that meets, at a minimum, these requirements. A service facility
also includes a shared branch or a shared branch network location,
including a shared ATM or other electronic facility, if a credit
union participates in a shared branching network. For purposes of
serving an underserved area: (1) A service facility is a place where
shares are accepted for members' accounts, loan applications are
accepted, and loans are disbursed; and (2) a service facility does
not include an ATM or shared ATM.
The credit union's internet website is not a service facility.
* * * * *
[FR Doc. 2021-25609 Filed 11-23-21; 8:45 am]
BILLING CODE 7535-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.