17-2205.   Membership of credit union; continuation ofbranch operations, limitations.(a) (1) The membership shall consist of the organizers and such persons,societies, associations, copartnerships and corporations as have been dulyelected to membership and have subscribed to one or more shares and havepaid for the same, and have complied with such other requirements as thearticles of incorporation may contain.

      (2)   Once a person becomes a member of the credit union, such person mayremain a memberof the credit union until the person chooses to withdraw or is expelled fromthemembership of the credit union.

      (3)   Members of a credit union also may include the following:

      (A)   The spouse of any person who died while such person was within thefield ofmembership of the credit union;

      (B)   any employee of the credit union;

      (C)   any person who retired from any qualified employment group within thefield ofmembership;

      (D)   anyperson of a volunteer group recognized by the management of the association oremployee groupwithin the field ofmembershipand such person: (i) Has completed a training program offered by the volunteergroup to further its goals; (ii) serves on the board of the volunteer group; or(iii) serves as an officer of the volunteer group;

      (E)   any member of such person's immediate family or household;

      (F)   any organization whose membership consists of persons within the fieldofmembership; and

      (G)   any corporate or other legal entity within the field of membership asidentified in the charter, articles of incorporation or bylaws of the creditunion.

      (4)   For the purposes of subparagraph (E) of paragraph (3):

      (A)   Except as provided in subparagraph (B), the term "immediate family orhousehold"shall meanspouse, parent, stepparent, grandparent, child, stepchild, sibling, grandchildor formerspouseand persons living in the same residence maintaining a single economic unitwith persons withinthe credit union's field of membership.

      (B)   If the credit union's bylaws adopted a definition of immediate familybefore June 30, 2008, the credit union may use that definition. A credit unionmay adopt amorerestrictive definition of immediate family or household.

      (C)   If authorized in the credit union's bylaws, a member of the immediatefamily orhousehold is eligible to join even when the eligible member has not joined thecreditunion.

      (b) (1)   Credit union organizations shall be limited to:

      (A)   A group having a single common bond of occupation or association;

      (B)   a group having multiple common bonds of occupation orassociation or anycombination thereof. No such group shall have a membership of more than 3,000except as permitted in subsections (c) or (d); or

      (C)   persons residing, working or worshiping in ororganizationslocated within ageographic area.

      (2)   A common bond of occupation may include employees of the same employer,workers under contract with the same employer, businesses paid by the sameemployer ona continuing basis or employees in the same trade, industry or profession.

      (3)   A common bond of association may include members and employees of arecognizedassociation as defined in such association's charter, bylaws or otherequivalent document.

      (c)   A credit union which chooses to be limited as provided in subparagraph(C) of paragraph (1)of subsection (b) may include one or more common bonds of occupation or one ormorecommon bonds of association or any combination thereof with no limitation onthe number ofmembers, if the employer or association is located in the geographic area ofthe credit union.

      (d)   A group formed with multiple common bonds of occupation or associationmayexceed3,000 members if the administrator determines in writing that such group couldnot feasibly orreasonably establish a new single common bond credit union because the group:

      (1)   Lacks sufficient volunteer and other resources to support theefficient and effectiveoperation of a credit union;

      (2)   does not meet the criteria established by the administratorindicating a likelihood ofsuccess in establishing and managing a new credit union, including demographiccharacteristics such as geographical location of members, diversity of ages andincomelevels, and other factors that may affect the financial viability and stabilityof a creditunion; or

      (3)   would be unlikely to be able to operate in a safe and sound manner.

      (e) (1)   A geographic area may include:

      (A)   A single political jurisdiction;

      (B)   multiple contiguous political jurisdictions if theaggregate total of the population of the geographic area does not exceed500,000, except as provided insubparagraph (C) or in subsections (i), (j), (k) and (l); or

      (C)   if the headquarters of the credit union is located in aMSA, the geographicarea may include one or more political jurisdictions which share a commonborderto the MSA if the aggregate total of the population of the geographic area doesnotexceed 1,000,000. The maximum population available for any credit union whoseheadquarters is located within a MSA shall be adjusted by the administratorbasedupon the population data for the largest MSA in the state of Kansas, or anyportionthereof located within the state of Kansas. The maximum populationavailable forany credit union whose headquarters is located within a MSA shall be determinedby multiplying the population of the largest MSA in the state of Kansas, orthatportion of such MSA located within the state of Kansas if the boundaries ofsuchMSA extend outside the state of Kansas, as determined by the most recentpopulation data, by the fraction having a numerator of 1,000,000 and adenominator of 750,000 for the purposes of this section, the administratorshall usepopulation data based upon the adjusted federal census information presented tothe legislature by the secretary of state pursuant to K.S.A. 11-304 andamendmentsthereto.

      (2)   Except as provided in subsections (i), (j), (k) and (l), from and afterJuly 1, 2008, nogeographic area shall consist of any congressional district or the entire stateof Kansas.

      (f) (1)   Except as provided in subsections (i), (j), (k) and (l), from andafterJuly 1, 2008, no creditunion shall change or alter its field of membership except as provided in thissection. Before acredit union can alter or change its field of membership, such credit unionshall file, or cause to befiled, with the administrator, an application for amendment to its field ofmembership. Theapplication shall include:

      (A)   Documentation showing that the proposed area or groups to be served meetsthe statutory requirements for field of membership set forth in this statute;

      (B)   pro forma financial statements for the first two years after theproposedalteration of or change in field of membership, including any assumptionregardinggrowth in membership, shares, loans and assets;

      (C)   a marketing plan addressing how the proposed field ofmembership will beserved;

      (D)   the financial services to be provided to the creditunion's members;

      (E)   a local map showing the location of both current andproposed headquartersand branches; and

      (F)   the anticipated financial impact on the credit union in terms ofneed for additional employees and fixed assets.

      (2) (A)   The application shall also include a proof of publication ofthe notice that theaffected credit union intends to file or has filed an application to alter orchange its field ofmembership. Such notice shall be in the form prescribed by the administratorand shall at aminimum contain the name and address of the applicant credit union and adescription ofthe proposed alteration of or change in the field of membership.

      (B)   The notice shall be published for two consecutive weeks intheKansas register. The required publications shall occur within 60 days ofand prior to the effective date of the proposed change. Theapplicant shall provideproof of publication to the administrator.

      (g)   For the purposes of this section:

      (1)   "MSA" means a metropolitan statistical area as defined by the UnitedStatesdepartment of commerce which has more than one county located inKansas. If theboundaries of such MSA extend outside the state of Kansas only that portion ofsuch MSAlocated within the state of Kansas shall be considered for the purposes of thissection.

      (2)   "Political jurisdiction" means a city, county, township or clearlyidentifiableneighborhood.

      (3)   "Population data" means official state population figures for the stateofKansas, or anyportion thereof, which are identical to the decennial census data from theactualenumeration conducted by the United States bureau of the census and used fortheapportionment of the United States house of representatives in accordance withK.S.A. 11-304 and amendments thereto.

      (h)   No increase in the population reflected by the population data shallrequire a modification to afield of membership as in existence on June 30, 2008.

      (i)   Notwithstanding any other provisions of this section, any person,including any member ofsuch person's immediate family or household, or organization that is amember of any creditunion which wasin existence on June 30, 2008, may continue to be a member of such credit unionafter such date.For the purposes of this subsection, if the term "member" refers to anindividual, the term membermay include any other person who is a member of such individual's immediatefamily or household asspecified in subsection (a).

      (j) (1)   Notwithstanding any other provisions of this section:

      (A)   Any branch of a credit union that is in existence as of February1, 2008, maycontinue to operate in the county where it is located on and after June 30,2008. If such branch is unable to continue operations due to a naturaldisaster, eminent domain proceedings, loss of lease, loss of sponsor space orany condition outside of the control of the credit union, the credit union mayestablish a replacement branch in that county.

      (B)   Any credit union which has taken an overt step toward theconstruction of anew building, facility or branch on or before February 1, 2008, may continue toconstruct and operate the new building, facility or branch in the city in whichsuchnew building, facility or branch is located even if the construction is notcompleted on or before June 30, 2008. If such branch is unable to continueoperations due to a natural disaster, eminent domain proceedings, loss oflease,loss of sponsor space or any condition outside of the control of the creditunion, the credit union may establish a replacement branch in that city.

      (2)   For the purposes of this subsection, the term "overt act" includes the:

      (A)   Purchase of or entering into a contract for the purchaseof any necessary tractof land for the location of such new building, facility or branch of anexisting creditunion.

      (B)   Acquisition or lease of a building for the purpose of housing anew facility orbranch of an existing credit union.

      (C)   Adoption of architectural drawings for the construction of a newbuilding,facility or branch of an existing credit union.

      (D)   Adoption of architectural drawings for the renovation of anexisting buildingfor use as a facility or branch of an existing credit union.

      (k)   Notwithstanding any other provisions of this section, a member of anyoccupation orassociation group whose members constituted a portion of the membership of anycredit union asof February 1, 2008, shall continue to be eligible to become a member of thatcredit union, by virtue of membership in that group on and after June 30, 2008.For purposes of this subsection, apatron of an organization is eligible for membership if such patron is anindividual who uses theproducts and services of the organization which is included in the field ofmembership of thecredit union at the time the patron applies for membership in the credit union.

      (l)   Notwithstanding any other provisions of this section, any credit union:

      (1)   Which has been granted a field of membership on or before February 1,2008, whichincludes the entire state of Kansas or its residents shall, on or beforeJanuary 1, 2009,adopt a field of membership that may include multiple contiguous politicaljurisdictionshaving an aggregate total population not to exceed 1,000,000. The population ofthecounty of any branch of such credit union not located within the adopted fieldofmembership shall not be included in the 1,000,000 population total. Any creditunion withits headquarters located in a county that is not part of a MSA shall notinclude more thanone MSA in its entirety in its adopted field of membership.

      (2)   With its headquarters located within a MSA as of February 1, 2008, maycontinue toinclude multiple contiguous political jurisdictions that were included in itsfield ofmembership as of February 1, 2008, if the aggregate total population of suchmultiplecontiguous political jurisdictions does not exceed 1,000,000. If the fieldof membershipof any credit union involves multiple contiguous political jurisdictions thathave anaggregate total population that exceeds 1,000,000 as of February 1, 2008, thensuch creditunion shall, on or before January 1, 2009, adopt a field of membership that mayincludemultiple contiguous political jurisdictions having an aggregate totalpopulation which doesnot exceed 1,000,000. The population of the county of any branch of suchcredit union notlocated within the adopted field of membership shall not be included in the1,000,000population total.

      (3)   With headquarters located in a county that is not part of aMSA may continue toinclude multiple contiguous political jurisdictions that were included in itsfield ofmembership as of February 1, 2008, if the aggregate total population of suchmultiplecontiguous political jurisdictions does not exceed 1,000,000 populationtotal. If the fieldof membership of any credit union involves multiple contiguous politicaljurisdictions thathave an aggregate total population that exceeds 1,000,000 as of February 1,2008, thensuch credit union shall, on or before January 1, 2009, adopt a field ofmembership thatmay include multiple contiguous political jurisdictions having an aggregatetotalpopulation which does not exceed 1,000,000 population total. The population ofthecounty of any branch of such credit union not located within the adopted fieldofmembership shall not be included in the 1,000,000 population total. The adoptedfield ofmembership of such credit union shall not include more than one MSA in itsentirety.

      History:   L. 1929, ch. 141, § 5; L. 1951, ch. 204, § 2; L. 1972, ch. 57, § 2;L. 2008, ch. 81, § 2;L. 2009, ch. 66, § 1; July 1.