17-2205.Membership of credit union; continuation of
branch operations, limitations.
(a) (1) The membership shall consist of the organizers and such persons,
societies, associations, copartnerships and corporations as have been duly
elected to membership and have subscribed to one or more shares and have
paid for the same, and have complied with such other requirements as the
articles of incorporation may contain.
(2) Once a person becomes a member of the credit union, such person may
remain a member
of the credit union until the person chooses to withdraw or is expelled from
the
membership 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 the
field of
membership of the credit union;
(B) any employee of the credit union;
(C) any person who retired from any qualified employment group within the
field of
membership;
(D) any
person of a volunteer group recognized by the management of the association or
employee group
within the field of
membership
and such person: (i) Has completed a training program offered by the volunteer
group 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 field
of
membership; and
(G) any corporate or other legal entity within the field of membership as
identified in the charter, articles of incorporation or bylaws of the credit
union.
(4) For the purposes of subparagraph (E) of paragraph (3):
(A) Except as provided in subparagraph (B), the term "immediate family or
household"
shall mean
spouse, parent, stepparent, grandparent, child, stepchild, sibling, grandchild
or former
spouse
and persons living in the same residence maintaining a single economic unit
with persons within
the credit union's field of membership.
(B) If the credit union's bylaws adopted a definition of immediate family
before June 30, 2008, the credit union may use that definition. A credit union
may adopt a
more
restrictive definition of immediate family or household.
(C) If authorized in the credit union's bylaws, a member of the immediate
family or
household is eligible to join even when the eligible member has not joined the
credit
union.
(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 or
association or any
combination thereof. No such group shall have a membership of more than 3,000
except as permitted in subsections (c) or (d); or
(C) persons residing, working or worshiping in or
organizations
located within a
geographic 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 same
employer on
a continuing basis or employees in the same trade, industry or profession.
(3) A common bond of association may include members and employees of a
recognized
association as defined in such association's charter, bylaws or other
equivalent 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 or
more
common bonds of association or any combination thereof with no limitation on
the number of
members, if the employer or association is located in the geographic area of
the credit union.
(d) A group formed with multiple common bonds of occupation or association
may
exceed
3,000 members if the administrator determines in writing that such group could
not feasibly or
reasonably establish a new single common bond credit union because the group:
(1) Lacks sufficient volunteer and other resources to support the
efficient and effective
operation of a credit union;
(2) does not meet the criteria established by the administrator
indicating a likelihood of
success in establishing and managing a new credit union, including demographic
characteristics such as geographical location of members, diversity of ages and
income
levels, and other factors that may affect the financial viability and stability
of a credit
union; 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 the
aggregate total of the population of the geographic area does not exceed
500,000, except as provided in
subparagraph (C) or in subsections (i), (j), (k) and (l); or
(C) if the headquarters of the credit union is located in a
MSA, the geographic
area may include one or more political jurisdictions which share a common
border
to the MSA if the aggregate total of the population of the geographic area does
not
exceed 1,000,000. The maximum population available for any credit union whose
headquarters is located within a MSA shall be adjusted by the administrator
based
upon the population data for the largest MSA in the state of Kansas, or any
portion
thereof located within the state of Kansas. The maximum population
available for
any credit union whose headquarters is located within a MSA shall be determined
by multiplying the population of the largest MSA in the state of Kansas, or
that
portion of such MSA located within the state of Kansas if the boundaries of
such
MSA extend outside the state of Kansas, as determined by the most recent
population data, by the fraction having a numerator of 1,000,000 and a
denominator of 750,000 for the purposes of this section, the administrator
shall use
population data based upon the adjusted federal census information presented to
the legislature by the secretary of state pursuant to K.S.A. 11-304 and
amendments
thereto.
(2) Except as provided in subsections (i), (j), (k) and (l), from and after
July 1, 2008, no
geographic area shall consist of any congressional district or the entire state
of Kansas.
(f) (1) Except as provided in subsections (i), (j), (k) and (l), from and
after
July 1, 2008, no credit
union shall change or alter its field of membership except as provided in this
section. Before a
credit union can alter or change its field of membership, such credit union
shall file, or cause to be
filed, with the administrator, an application for amendment to its field of
membership. The
application shall include:
(A) Documentation showing that the proposed area or groups to be served meets
the statutory requirements for field of membership set forth in this statute;
(B) pro forma financial statements for the first two years after the
proposed
alteration of or change in field of membership, including any assumption
regarding
growth in membership, shares, loans and assets;
(C) a marketing plan addressing how the proposed field of
membership will be
served;
(D) the financial services to be provided to the credit
union's members;
(E) a local map showing the location of both current and
proposed headquarters
and branches; and
(F) the anticipated financial impact on the credit union in terms of
need for additional employees and fixed assets.
(2) (A) The application shall also include a proof of publication of
the notice that the
affected credit union intends to file or has filed an application to alter or
change its field of
membership. Such notice shall be in the form prescribed by the administrator
and shall at a
minimum contain the name and address of the applicant credit union and a
description of
the proposed alteration of or change in the field of membership.
(B) The notice shall be published for two consecutive weeks in
the
Kansas register. The required publications shall occur within 60 days of
and prior to the effective date of the proposed change. The
applicant shall provide
proof of publication to the administrator.
(g) For the purposes of this section:
(1) "MSA" means a metropolitan statistical area as defined by the United
States
department of commerce which has more than one county located in
Kansas. If the
boundaries of such MSA extend outside the state of Kansas only that portion of
such MSA
located within the state of Kansas shall be considered for the purposes of this
section.
(2) "Political jurisdiction" means a city, county, township or clearly
identifiable
neighborhood.
(3) "Population data" means official state population figures for the state
of
Kansas, or any
portion thereof, which are identical to the decennial census data from the
actual
enumeration conducted by the United States bureau of the census and used for
the
apportionment of the United States house of representatives in accordance with
K.S.A. 11-304 and amendments thereto.
(h) No increase in the population reflected by the population data shall
require a modification to a
field of membership as in existence on June 30, 2008.
(i) Notwithstanding any other provisions of this section, any person,
including any member of
such person's immediate family or household, or organization that is a
member of any credit
union which was
in existence on June 30, 2008, may continue to be a member of such credit union
after such date.
For the purposes of this subsection, if the term "member" refers to an
individual, the term member
may include any other person who is a member of such individual's immediate
family or household as
specified 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 February
1, 2008, may
continue 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 natural
disaster, eminent domain proceedings, loss of lease, loss of sponsor space or
any condition outside of the control of the credit union, the credit union may
establish a replacement branch in that county.
(B) Any credit union which has taken an overt step toward the
construction of a
new building, facility or branch on or before February 1, 2008, may continue to
construct and operate the new building, facility or branch in the city in which
such
new building, facility or branch is located even if the construction is not
completed on or before June 30, 2008. If such branch is unable to continue
operations due to a natural disaster, eminent domain proceedings, loss of
lease,
loss of sponsor space or any condition outside of the control of the credit
union, 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 purchase
of any necessary tract
of land for the location of such new building, facility or branch of an
existing credit
union.
(B) Acquisition or lease of a building for the purpose of housing a
new facility or
branch of an existing credit union.
(C) Adoption of architectural drawings for the construction of a new
building,
facility or branch of an existing credit union.
(D) Adoption of architectural drawings for the renovation of an
existing building
for use as a facility or branch of an existing credit union.
(k) Notwithstanding any other provisions of this section, a member of any
occupation or
association group whose members constituted a portion of the membership of any
credit union as
of February 1, 2008, shall continue to be eligible to become a member of that
credit union, by virtue of membership in that group on and after June 30, 2008.
For purposes of this subsection, a
patron of an organization is eligible for membership if such patron is an
individual who uses the
products and services of the organization which is included in the field of
membership of the
credit 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, which
includes the entire state of Kansas or its residents shall, on or before
January 1, 2009,
adopt a field of membership that may include multiple contiguous political
jurisdictions
having an aggregate total population not to exceed 1,000,000. The population of
the
county of any branch of such credit union not located within the adopted field
of
membership shall not be included in the 1,000,000 population total. Any credit
union with
its headquarters located in a county that is not part of a MSA shall not
include more than
one MSA in its entirety in its adopted field of membership.
(2) With its headquarters located within a MSA as of February 1, 2008, may
continue to
include multiple contiguous political jurisdictions that were included in its
field of
membership as of February 1, 2008, if the aggregate total population of such
multiple
contiguous political jurisdictions does not exceed 1,000,000. If the field
of membership
of any credit union involves multiple contiguous political jurisdictions that
have an
aggregate total population that exceeds 1,000,000 as of February 1, 2008, then
such credit
union shall, on or before January 1, 2009, adopt a field of membership that may
include
multiple contiguous political jurisdictions having an aggregate total
population which does
not exceed 1,000,000. The population of the county of any branch of such
credit union not
located within the adopted field of membership shall not be included in the
1,000,000
population total.
(3) With headquarters located in a county that is not part of a
MSA may continue to
include multiple contiguous political jurisdictions that were included in its
field of
membership as of February 1, 2008, if the aggregate total population of such
multiple
contiguous political jurisdictions does not exceed 1,000,000 population
total. If the field
of membership of any credit union involves multiple contiguous political
jurisdictions that
have an aggregate total population that exceeds 1,000,000 as of February 1,
2008, then
such credit union shall, on or before January 1, 2009, adopt a field of
membership that
may include multiple contiguous political jurisdictions having an aggregate
total
population which does not exceed 1,000,000 population total. The population of
the
county of any branch of such credit union not located within the adopted field
of
membership shall not be included in the 1,000,000 population total. The adopted
field of
membership of such credit union shall not include more than one MSA in its
entirety.
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.
17-2205.Membership of credit union; continuation of
branch operations, limitations.
(a) (1) The membership shall consist of the organizers and such persons,
societies, associations, copartnerships and corporations as have been duly
elected to membership and have subscribed to one or more shares and have
paid for the same, and have complied with such other requirements as the
articles of incorporation may contain.
(2) Once a person becomes a member of the credit union, such person may
remain a member
of the credit union until the person chooses to withdraw or is expelled from
the
membership 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 the
field of
membership of the credit union;
(B) any employee of the credit union;
(C) any person who retired from any qualified employment group within the
field of
membership;
(D) any
person of a volunteer group recognized by the management of the association or
employee group
within the field of
membership
and such person: (i) Has completed a training program offered by the volunteer
group 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 field
of
membership; and
(G) any corporate or other legal entity within the field of membership as
identified in the charter, articles of incorporation or bylaws of the credit
union.
(4) For the purposes of subparagraph (E) of paragraph (3):
(A) Except as provided in subparagraph (B), the term "immediate family or
household"
shall mean
spouse, parent, stepparent, grandparent, child, stepchild, sibling, grandchild
or former
spouse
and persons living in the same residence maintaining a single economic unit
with persons within
the credit union's field of membership.
(B) If the credit union's bylaws adopted a definition of immediate family
before June 30, 2008, the credit union may use that definition. A credit union
may adopt a
more
restrictive definition of immediate family or household.
(C) If authorized in the credit union's bylaws, a member of the immediate
family or
household is eligible to join even when the eligible member has not joined the
credit
union.
(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 or
association or any
combination thereof. No such group shall have a membership of more than 3,000
except as permitted in subsections (c) or (d); or
(C) persons residing, working or worshiping in or
organizations
located within a
geographic 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 same
employer on
a continuing basis or employees in the same trade, industry or profession.
(3) A common bond of association may include members and employees of a
recognized
association as defined in such association's charter, bylaws or other
equivalent 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 or
more
common bonds of association or any combination thereof with no limitation on
the number of
members, if the employer or association is located in the geographic area of
the credit union.
(d) A group formed with multiple common bonds of occupation or association
may
exceed
3,000 members if the administrator determines in writing that such group could
not feasibly or
reasonably establish a new single common bond credit union because the group:
(1) Lacks sufficient volunteer and other resources to support the
efficient and effective
operation of a credit union;
(2) does not meet the criteria established by the administrator
indicating a likelihood of
success in establishing and managing a new credit union, including demographic
characteristics such as geographical location of members, diversity of ages and
income
levels, and other factors that may affect the financial viability and stability
of a credit
union; 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 the
aggregate total of the population of the geographic area does not exceed
500,000, except as provided in
subparagraph (C) or in subsections (i), (j), (k) and (l); or
(C) if the headquarters of the credit union is located in a
MSA, the geographic
area may include one or more political jurisdictions which share a common
border
to the MSA if the aggregate total of the population of the geographic area does
not
exceed 1,000,000. The maximum population available for any credit union whose
headquarters is located within a MSA shall be adjusted by the administrator
based
upon the population data for the largest MSA in the state of Kansas, or any
portion
thereof located within the state of Kansas. The maximum population
available for
any credit union whose headquarters is located within a MSA shall be determined
by multiplying the population of the largest MSA in the state of Kansas, or
that
portion of such MSA located within the state of Kansas if the boundaries of
such
MSA extend outside the state of Kansas, as determined by the most recent
population data, by the fraction having a numerator of 1,000,000 and a
denominator of 750,000 for the purposes of this section, the administrator
shall use
population data based upon the adjusted federal census information presented to
the legislature by the secretary of state pursuant to K.S.A. 11-304 and
amendments
thereto.
(2) Except as provided in subsections (i), (j), (k) and (l), from and after
July 1, 2008, no
geographic area shall consist of any congressional district or the entire state
of Kansas.
(f) (1) Except as provided in subsections (i), (j), (k) and (l), from and
after
July 1, 2008, no credit
union shall change or alter its field of membership except as provided in this
section. Before a
credit union can alter or change its field of membership, such credit union
shall file, or cause to be
filed, with the administrator, an application for amendment to its field of
membership. The
application shall include:
(A) Documentation showing that the proposed area or groups to be served meets
the statutory requirements for field of membership set forth in this statute;
(B) pro forma financial statements for the first two years after the
proposed
alteration of or change in field of membership, including any assumption
regarding
growth in membership, shares, loans and assets;
(C) a marketing plan addressing how the proposed field of
membership will be
served;
(D) the financial services to be provided to the credit
union's members;
(E) a local map showing the location of both current and
proposed headquarters
and branches; and
(F) the anticipated financial impact on the credit union in terms of
need for additional employees and fixed assets.
(2) (A) The application shall also include a proof of publication of
the notice that the
affected credit union intends to file or has filed an application to alter or
change its field of
membership. Such notice shall be in the form prescribed by the administrator
and shall at a
minimum contain the name and address of the applicant credit union and a
description of
the proposed alteration of or change in the field of membership.
(B) The notice shall be published for two consecutive weeks in
the
Kansas register. The required publications shall occur within 60 days of
and prior to the effective date of the proposed change. The
applicant shall provide
proof of publication to the administrator.
(g) For the purposes of this section:
(1) "MSA" means a metropolitan statistical area as defined by the United
States
department of commerce which has more than one county located in
Kansas. If the
boundaries of such MSA extend outside the state of Kansas only that portion of
such MSA
located within the state of Kansas shall be considered for the purposes of this
section.
(2) "Political jurisdiction" means a city, county, township or clearly
identifiable
neighborhood.
(3) "Population data" means official state population figures for the state
of
Kansas, or any
portion thereof, which are identical to the decennial census data from the
actual
enumeration conducted by the United States bureau of the census and used for
the
apportionment of the United States house of representatives in accordance with
K.S.A. 11-304 and amendments thereto.
(h) No increase in the population reflected by the population data shall
require a modification to a
field of membership as in existence on June 30, 2008.
(i) Notwithstanding any other provisions of this section, any person,
including any member of
such person's immediate family or household, or organization that is a
member of any credit
union which was
in existence on June 30, 2008, may continue to be a member of such credit union
after such date.
For the purposes of this subsection, if the term "member" refers to an
individual, the term member
may include any other person who is a member of such individual's immediate
family or household as
specified 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 February
1, 2008, may
continue 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 natural
disaster, eminent domain proceedings, loss of lease, loss of sponsor space or
any condition outside of the control of the credit union, the credit union may
establish a replacement branch in that county.
(B) Any credit union which has taken an overt step toward the
construction of a
new building, facility or branch on or before February 1, 2008, may continue to
construct and operate the new building, facility or branch in the city in which
such
new building, facility or branch is located even if the construction is not
completed on or before June 30, 2008. If such branch is unable to continue
operations due to a natural disaster, eminent domain proceedings, loss of
lease,
loss of sponsor space or any condition outside of the control of the credit
union, 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 purchase
of any necessary tract
of land for the location of such new building, facility or branch of an
existing credit
union.
(B) Acquisition or lease of a building for the purpose of housing a
new facility or
branch of an existing credit union.
(C) Adoption of architectural drawings for the construction of a new
building,
facility or branch of an existing credit union.
(D) Adoption of architectural drawings for the renovation of an
existing building
for use as a facility or branch of an existing credit union.
(k) Notwithstanding any other provisions of this section, a member of any
occupation or
association group whose members constituted a portion of the membership of any
credit union as
of February 1, 2008, shall continue to be eligible to become a member of that
credit union, by virtue of membership in that group on and after June 30, 2008.
For purposes of this subsection, a
patron of an organization is eligible for membership if such patron is an
individual who uses the
products and services of the organization which is included in the field of
membership of the
credit 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, which
includes the entire state of Kansas or its residents shall, on or before
January 1, 2009,
adopt a field of membership that may include multiple contiguous political
jurisdictions
having an aggregate total population not to exceed 1,000,000. The population of
the
county of any branch of such credit union not located within the adopted field
of
membership shall not be included in the 1,000,000 population total. Any credit
union with
its headquarters located in a county that is not part of a MSA shall not
include more than
one MSA in its entirety in its adopted field of membership.
(2) With its headquarters located within a MSA as of February 1, 2008, may
continue to
include multiple contiguous political jurisdictions that were included in its
field of
membership as of February 1, 2008, if the aggregate total population of such
multiple
contiguous political jurisdictions does not exceed 1,000,000. If the field
of membership
of any credit union involves multiple contiguous political jurisdictions that
have an
aggregate total population that exceeds 1,000,000 as of February 1, 2008, then
such credit
union shall, on or before January 1, 2009, adopt a field of membership that may
include
multiple contiguous political jurisdictions having an aggregate total
population which does
not exceed 1,000,000. The population of the county of any branch of such
credit union not
located within the adopted field of membership shall not be included in the
1,000,000
population total.
(3) With headquarters located in a county that is not part of a
MSA may continue to
include multiple contiguous political jurisdictions that were included in its
field of
membership as of February 1, 2008, if the aggregate total population of such
multiple
contiguous political jurisdictions does not exceed 1,000,000 population
total. If the field
of membership of any credit union involves multiple contiguous political
jurisdictions that
have an aggregate total population that exceeds 1,000,000 as of February 1,
2008, then
such credit union shall, on or before January 1, 2009, adopt a field of
membership that
may include multiple contiguous political jurisdictions having an aggregate
total
population which does not exceed 1,000,000 population total. The population of
the
county of any branch of such credit union not located within the adopted field
of
membership shall not be included in the 1,000,000 population total. The adopted
field of
membership of such credit union shall not include more than one MSA in its
entirety.
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.
17-2205.Membership of credit union; continuation of
branch operations, limitations.
(a) (1) The membership shall consist of the organizers and such persons,
societies, associations, copartnerships and corporations as have been duly
elected to membership and have subscribed to one or more shares and have
paid for the same, and have complied with such other requirements as the
articles of incorporation may contain.
(2) Once a person becomes a member of the credit union, such person may
remain a member
of the credit union until the person chooses to withdraw or is expelled from
the
membership 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 the
field of
membership of the credit union;
(B) any employee of the credit union;
(C) any person who retired from any qualified employment group within the
field of
membership;
(D) any
person of a volunteer group recognized by the management of the association or
employee group
within the field of
membership
and such person: (i) Has completed a training program offered by the volunteer
group 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 field
of
membership; and
(G) any corporate or other legal entity within the field of membership as
identified in the charter, articles of incorporation or bylaws of the credit
union.
(4) For the purposes of subparagraph (E) of paragraph (3):
(A) Except as provided in subparagraph (B), the term "immediate family or
household"
shall mean
spouse, parent, stepparent, grandparent, child, stepchild, sibling, grandchild
or former
spouse
and persons living in the same residence maintaining a single economic unit
with persons within
the credit union's field of membership.
(B) If the credit union's bylaws adopted a definition of immediate family
before June 30, 2008, the credit union may use that definition. A credit union
may adopt a
more
restrictive definition of immediate family or household.
(C) If authorized in the credit union's bylaws, a member of the immediate
family or
household is eligible to join even when the eligible member has not joined the
credit
union.
(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 or
association or any
combination thereof. No such group shall have a membership of more than 3,000
except as permitted in subsections (c) or (d); or
(C) persons residing, working or worshiping in or
organizations
located within a
geographic 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 same
employer on
a continuing basis or employees in the same trade, industry or profession.
(3) A common bond of association may include members and employees of a
recognized
association as defined in such association's charter, bylaws or other
equivalent 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 or
more
common bonds of association or any combination thereof with no limitation on
the number of
members, if the employer or association is located in the geographic area of
the credit union.
(d) A group formed with multiple common bonds of occupation or association
may
exceed
3,000 members if the administrator determines in writing that such group could
not feasibly or
reasonably establish a new single common bond credit union because the group:
(1) Lacks sufficient volunteer and other resources to support the
efficient and effective
operation of a credit union;
(2) does not meet the criteria established by the administrator
indicating a likelihood of
success in establishing and managing a new credit union, including demographic
characteristics such as geographical location of members, diversity of ages and
income
levels, and other factors that may affect the financial viability and stability
of a credit
union; 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 the
aggregate total of the population of the geographic area does not exceed
500,000, except as provided in
subparagraph (C) or in subsections (i), (j), (k) and (l); or
(C) if the headquarters of the credit union is located in a
MSA, the geographic
area may include one or more political jurisdictions which share a common
border
to the MSA if the aggregate total of the population of the geographic area does
not
exceed 1,000,000. The maximum population available for any credit union whose
headquarters is located within a MSA shall be adjusted by the administrator
based
upon the population data for the largest MSA in the state of Kansas, or any
portion
thereof located within the state of Kansas. The maximum population
available for
any credit union whose headquarters is located within a MSA shall be determined
by multiplying the population of the largest MSA in the state of Kansas, or
that
portion of such MSA located within the state of Kansas if the boundaries of
such
MSA extend outside the state of Kansas, as determined by the most recent
population data, by the fraction having a numerator of 1,000,000 and a
denominator of 750,000 for the purposes of this section, the administrator
shall use
population data based upon the adjusted federal census information presented to
the legislature by the secretary of state pursuant to K.S.A. 11-304 and
amendments
thereto.
(2) Except as provided in subsections (i), (j), (k) and (l), from and after
July 1, 2008, no
geographic area shall consist of any congressional district or the entire state
of Kansas.
(f) (1) Except as provided in subsections (i), (j), (k) and (l), from and
after
July 1, 2008, no credit
union shall change or alter its field of membership except as provided in this
section. Before a
credit union can alter or change its field of membership, such credit union
shall file, or cause to be
filed, with the administrator, an application for amendment to its field of
membership. The
application shall include:
(A) Documentation showing that the proposed area or groups to be served meets
the statutory requirements for field of membership set forth in this statute;
(B) pro forma financial statements for the first two years after the
proposed
alteration of or change in field of membership, including any assumption
regarding
growth in membership, shares, loans and assets;
(C) a marketing plan addressing how the proposed field of
membership will be
served;
(D) the financial services to be provided to the credit
union's members;
(E) a local map showing the location of both current and
proposed headquarters
and branches; and
(F) the anticipated financial impact on the credit union in terms of
need for additional employees and fixed assets.
(2) (A) The application shall also include a proof of publication of
the notice that the
affected credit union intends to file or has filed an application to alter or
change its field of
membership. Such notice shall be in the form prescribed by the administrator
and shall at a
minimum contain the name and address of the applicant credit union and a
description of
the proposed alteration of or change in the field of membership.
(B) The notice shall be published for two consecutive weeks in
the
Kansas register. The required publications shall occur within 60 days of
and prior to the effective date of the proposed change. The
applicant shall provide
proof of publication to the administrator.
(g) For the purposes of this section:
(1) "MSA" means a metropolitan statistical area as defined by the United
States
department of commerce which has more than one county located in
Kansas. If the
boundaries of such MSA extend outside the state of Kansas only that portion of
such MSA
located within the state of Kansas shall be considered for the purposes of this
section.
(2) "Political jurisdiction" means a city, county, township or clearly
identifiable
neighborhood.
(3) "Population data" means official state population figures for the state
of
Kansas, or any
portion thereof, which are identical to the decennial census data from the
actual
enumeration conducted by the United States bureau of the census and used for
the
apportionment of the United States house of representatives in accordance with
K.S.A. 11-304 and amendments thereto.
(h) No increase in the population reflected by the population data shall
require a modification to a
field of membership as in existence on June 30, 2008.
(i) Notwithstanding any other provisions of this section, any person,
including any member of
such person's immediate family or household, or organization that is a
member of any credit
union which was
in existence on June 30, 2008, may continue to be a member of such credit union
after such date.
For the purposes of this subsection, if the term "member" refers to an
individual, the term member
may include any other person who is a member of such individual's immediate
family or household as
specified 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 February
1, 2008, may
continue 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 natural
disaster, eminent domain proceedings, loss of lease, loss of sponsor space or
any condition outside of the control of the credit union, the credit union may
establish a replacement branch in that county.
(B) Any credit union which has taken an overt step toward the
construction of a
new building, facility or branch on or before February 1, 2008, may continue to
construct and operate the new building, facility or branch in the city in which
such
new building, facility or branch is located even if the construction is not
completed on or before June 30, 2008. If such branch is unable to continue
operations due to a natural disaster, eminent domain proceedings, loss of
lease,
loss of sponsor space or any condition outside of the control of the credit
union, 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 purchase
of any necessary tract
of land for the location of such new building, facility or branch of an
existing credit
union.
(B) Acquisition or lease of a building for the purpose of housing a
new facility or
branch of an existing credit union.
(C) Adoption of architectural drawings for the construction of a new
building,
facility or branch of an existing credit union.
(D) Adoption of architectural drawings for the renovation of an
existing building
for use as a facility or branch of an existing credit union.
(k) Notwithstanding any other provisions of this section, a member of any
occupation or
association group whose members constituted a portion of the membership of any
credit union as
of February 1, 2008, shall continue to be eligible to become a member of that
credit union, by virtue of membership in that group on and after June 30, 2008.
For purposes of this subsection, a
patron of an organization is eligible for membership if such patron is an
individual who uses the
products and services of the organization which is included in the field of
membership of the
credit 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, which
includes the entire state of Kansas or its residents shall, on or before
January 1, 2009,
adopt a field of membership that may include multiple contiguous political
jurisdictions
having an aggregate total population not to exceed 1,000,000. The population of
the
county of any branch of such credit union not located within the adopted field
of
membership shall not be included in the 1,000,000 population total. Any credit
union with
its headquarters located in a county that is not part of a MSA shall not
include more than
one MSA in its entirety in its adopted field of membership.
(2) With its headquarters located within a MSA as of February 1, 2008, may
continue to
include multiple contiguous political jurisdictions that were included in its
field of
membership as of February 1, 2008, if the aggregate total population of such
multiple
contiguous political jurisdictions does not exceed 1,000,000. If the field
of membership
of any credit union involves multiple contiguous political jurisdictions that
have an
aggregate total population that exceeds 1,000,000 as of February 1, 2008, then
such credit
union shall, on or before January 1, 2009, adopt a field of membership that may
include
multiple contiguous political jurisdictions having an aggregate total
population which does
not exceed 1,000,000. The population of the county of any branch of such
credit union not
located within the adopted field of membership shall not be included in the
1,000,000
population total.
(3) With headquarters located in a county that is not part of a
MSA may continue to
include multiple contiguous political jurisdictions that were included in its
field of
membership as of February 1, 2008, if the aggregate total population of such
multiple
contiguous political jurisdictions does not exceed 1,000,000 population
total. If the field
of membership of any credit union involves multiple contiguous political
jurisdictions that
have an aggregate total population that exceeds 1,000,000 as of February 1,
2008, then
such credit union shall, on or before January 1, 2009, adopt a field of
membership that
may include multiple contiguous political jurisdictions having an aggregate
total
population which does not exceed 1,000,000 population total. The population of
the
county of any branch of such credit union not located within the adopted field
of
membership shall not be included in the 1,000,000 population total. The adopted
field of
membership of such credit union shall not include more than one MSA in its
entirety.
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.