PA preapproves 12 association common bonds for state CUs
July 14, 2015 – Harrisburg, PA: The Pennsylvania Department of Banking and Securities (DBS) has preapproved 12 association common bonds for state-chartered credit unions, at the request from the Pennsylvania Credit Union Association (PCUA).
The DBS’s move followed the National Credit Union Administration’s rule, which went into effect July 6, for the 12 association common bonds.
“The association supports a strong dual chartering system and the action by the Department of Banking and Securities maintains parity between federal and state-chartered credit unions, providing for a choice between charters,” said Patrick Conway, PCUA president/CEO in the PCUA’s “Life is a Highway” newsletter, July 13.
A letter signed by Wendy Spicher, deputy secretary for depository institutions, noted that “Pennsylvania state-chartered credit unions are not required to submit parity notices to the Department under Section 501(f) of the Credit Union Code in order to include members in their field of membership as discussed in this letter.”
The 12 categories are:
• Alumni associations;
• Religious organizations, including churches or groups of related churches;
• Electric cooperatives;
• Homeowner associations;
• Labor unions;
• Scouting groups;
• Parent-teacher associations organized at the local level to serve a single school district;
• Chamber of commerce groups (members only and not employees of members);
• Athletic booster clubs whose members have voting rights;
• Fraternal organizations or civic groups with a mission of community service whose members have voting rights;
• Organizations having a mission based on preserving or furthering the culture of a particular national or ethnic origin; and
• Organizations promoting social interaction or educational initiatives among persons sharing a common occupational profession.