State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-09 > 7-9-53

7-9-53. Grandfathering.
(1) As used in this section:
(a) "Association that resides in a domicile-county" means an association that:
(i) operates a place of business or other physical location in the domicile-county; or
(ii) has at least 100 members that are residents of the domicile-county.
(b) "Domicile-county" means the county:
(i) in the field of membership of the credit union as of January 1, 1999; and
(ii) in which the credit union has located the greatest number of branches as of January 1,1999.
(c) "Grandfathered field of membership" means the field of membership as of May 3,1999, of a credit union described in Subsection (2)(d).
(2) For each credit union formed before January 1, 1999, its field of membership as ofMay 3, 1999, is determined as follows:
(a) if the field of membership stated in the bylaws of the credit union as of January 1,1999, complies with Section 7-9-51, the credit union's field of membership is the field ofmembership indicated in its bylaws;
(b) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(b)(ii) if:
(A) the field of membership stated in the bylaws of the credit union as of January 1,1999, includes the residents of more than one county; and
(B) as of January 1, 1999, the credit union's main office and any of its branches arelocated in only one county in its field of membership;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(b)(i) is:
(A) the immediate family of a member of the credit union;
(B) the employees of the credit union;
(C) residents of the one county in which the credit union has its main office or branchesas of January 1, 1999; and
(D) any association that as of January 1, 1999, is in the field of membership of the creditunion;
(c) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(c)(ii) if:
(A) the field of membership of a credit union stated in the bylaws of the credit union asof January 1, 1999, includes residents of more than one county;
(B) as of January 1, 1999, the credit union has a main office or branch in more than onecounty; and
(C) as a result of a merger pursuant to a supervisory action under Chapter 2, Possessionof Depository Institution by Commissioner, or Chapter 19, Acquisition of Failing DepositoryInstitutions or Holding Companies, that is effective on or after January 1, 1983, but beforeJanuary 1, 1994, the credit union acquired a branch in a county in the field of membership of thecredit union and the credit union did not have a branch in the county before the merger;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(c)(i) is the same field of membership that the credit union would have had under Subsection(2)(d) except that the credit union:
(A) is not subject to Subsection (3); and

(B) is subject to Subsection (4)(b); and
(d) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(d)(ii) if:
(A) the field of membership stated in the bylaws of the credit union as of January 1,1999, includes the residents of more than one county; and
(B) as of January 1, 1999, the credit union has a main office or branch in more than onecounty;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(d)(i) is:
(A) the immediate family of a member of the credit union;
(B) the employees of the credit union;
(C) residents of the credit union's domicile-county;
(D) the residents of any county other than the domicile-county:
(I) if, as of January 1, 1999, the county is in the field of membership of the credit union;and
(II) in which, as of January 1, 1994, the credit union had located its main office or abranch; and
(E) any association that as of January 1, 1999, is in the field of membership of the creditunion.
(3) If a credit union's field of membership is as described in Subsection (2)(d), beginningMay 3, 1999, the credit union:
(a) within the credit union's domicile-county, may establish, relocate, or otherwisechange the physical location of the credit union's:
(i) main office; or
(ii) branch;
(b) within a county other than a domicile-county that is in the credit union'sgrandfathered field of membership, may not:
(i) establish a main office or branch that:
(A) was not located in the county as of January 1, 1999; or
(B) for which the credit union has not received by January 1, 1999, approval orconditional approval of a site plan for the main office or branch from the planning commission ofthe municipality where the main office or branch will be located;
(ii) participate in a service center in which it does not participate as of January 1, 1999;
(iii) relocate the credit union's main office or a branch located in the county as of January1, 1999, unless the commissioner finds that the main office or branch is relocated within athree-mile radius of where it was originally located; or
(iv) after a voluntary merger under Section 7-9-39, operate a branch in the county if:
(A) the effective date of the merger is on or after May 5, 2003;
(B) the credit union with the field of membership described in Subsection (2)(d) is thesurviving credit union after the merger; and
(C) the credit union did not own and operate the branch before the effective date of themerger; and
(c) may only admit as a member:
(i) a person in the credit union's grandfathered field of membership; or
(ii) a person belonging to an association that:

(A) is added to the field of membership of the credit union; and
(B) resides in the domicile-county of the credit union.
(4) (a) If a credit union's field of membership is as described in Subsection (2)(b), as ofMay 3, 1999, the credit union may operate as a credit union having a field of membership underSection 7-9-51.
(b) If a credit union's field of membership is as described in Subsection (2)(c), as of May3, 1999, the credit union:
(i) within the credit union's domicile-county, may establish, relocate, or otherwise changethe physical location of the credit union's:
(A) main office; or
(B) branch;
(ii) within a county other than its domicile-county that is in the credit union's field ofmembership under Subsection (2)(c), may not:
(A) establish a main office or branch that was not located in the county as of January 1,1999;
(B) participate in a service center in which it does not participate as of January 1, 1999;or
(C) relocate the credit union's main office or a branch located in the county as of January1, 1999, unless the commissioner finds that the main office or branch is relocated within athree-mile radius of where it was originally located; and
(iii) may only admit as a member:
(A) a person in the credit union's field of membership under Subsection (2)(c); or
(B) a person belonging to an association that is added to the field of membership of thecredit union, regardless of whether the association resides in the domicile-county of the creditunion.
(5) (a) Notwithstanding Subsections (1) through (4), after May 3, 1999, a credit uniondescribed in Subsection (2)(c) or (d) may:
(i) operate an office or branch that is operated by the credit union on May 3, 1999, butthat is not located in a county that is in the credit union's field of membership as of May 3, 1999;and
(ii) serve a member who is not in a credit union's field of membership as of May 3, 1999,if the member is a member of the credit union as of March 15, 1999.
(b) Subsection (5)(a) does not authorize a credit union to:
(i) establish a branch in a county that is not in the credit union's field of membership asof May 3, 1999, unless the branch meets the requirements under this title for establishing abranch; or
(ii) for a credit union described in Subsection (2)(d), include in its field of membershipan association that:
(A) as of January 1, 1999, is not included in the credit union's field of membership; and
(B) does not reside within the credit union's domicile-county.
(6) A credit union shall amend its bylaws in accordance with Section 7-9-11 by no laterthan August 3, 1999, to comply with this section.
(7) In addition to any requirement under this section, a credit union shall comply withany requirement under this title for the establishment, relocation, or change in the physicallocation of a main office or branch of a credit union.

Amended by Chapter 324, 2010 General Session

State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-09 > 7-9-53

7-9-53. Grandfathering.
(1) As used in this section:
(a) "Association that resides in a domicile-county" means an association that:
(i) operates a place of business or other physical location in the domicile-county; or
(ii) has at least 100 members that are residents of the domicile-county.
(b) "Domicile-county" means the county:
(i) in the field of membership of the credit union as of January 1, 1999; and
(ii) in which the credit union has located the greatest number of branches as of January 1,1999.
(c) "Grandfathered field of membership" means the field of membership as of May 3,1999, of a credit union described in Subsection (2)(d).
(2) For each credit union formed before January 1, 1999, its field of membership as ofMay 3, 1999, is determined as follows:
(a) if the field of membership stated in the bylaws of the credit union as of January 1,1999, complies with Section 7-9-51, the credit union's field of membership is the field ofmembership indicated in its bylaws;
(b) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(b)(ii) if:
(A) the field of membership stated in the bylaws of the credit union as of January 1,1999, includes the residents of more than one county; and
(B) as of January 1, 1999, the credit union's main office and any of its branches arelocated in only one county in its field of membership;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(b)(i) is:
(A) the immediate family of a member of the credit union;
(B) the employees of the credit union;
(C) residents of the one county in which the credit union has its main office or branchesas of January 1, 1999; and
(D) any association that as of January 1, 1999, is in the field of membership of the creditunion;
(c) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(c)(ii) if:
(A) the field of membership of a credit union stated in the bylaws of the credit union asof January 1, 1999, includes residents of more than one county;
(B) as of January 1, 1999, the credit union has a main office or branch in more than onecounty; and
(C) as a result of a merger pursuant to a supervisory action under Chapter 2, Possessionof Depository Institution by Commissioner, or Chapter 19, Acquisition of Failing DepositoryInstitutions or Holding Companies, that is effective on or after January 1, 1983, but beforeJanuary 1, 1994, the credit union acquired a branch in a county in the field of membership of thecredit union and the credit union did not have a branch in the county before the merger;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(c)(i) is the same field of membership that the credit union would have had under Subsection(2)(d) except that the credit union:
(A) is not subject to Subsection (3); and

(B) is subject to Subsection (4)(b); and
(d) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(d)(ii) if:
(A) the field of membership stated in the bylaws of the credit union as of January 1,1999, includes the residents of more than one county; and
(B) as of January 1, 1999, the credit union has a main office or branch in more than onecounty;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(d)(i) is:
(A) the immediate family of a member of the credit union;
(B) the employees of the credit union;
(C) residents of the credit union's domicile-county;
(D) the residents of any county other than the domicile-county:
(I) if, as of January 1, 1999, the county is in the field of membership of the credit union;and
(II) in which, as of January 1, 1994, the credit union had located its main office or abranch; and
(E) any association that as of January 1, 1999, is in the field of membership of the creditunion.
(3) If a credit union's field of membership is as described in Subsection (2)(d), beginningMay 3, 1999, the credit union:
(a) within the credit union's domicile-county, may establish, relocate, or otherwisechange the physical location of the credit union's:
(i) main office; or
(ii) branch;
(b) within a county other than a domicile-county that is in the credit union'sgrandfathered field of membership, may not:
(i) establish a main office or branch that:
(A) was not located in the county as of January 1, 1999; or
(B) for which the credit union has not received by January 1, 1999, approval orconditional approval of a site plan for the main office or branch from the planning commission ofthe municipality where the main office or branch will be located;
(ii) participate in a service center in which it does not participate as of January 1, 1999;
(iii) relocate the credit union's main office or a branch located in the county as of January1, 1999, unless the commissioner finds that the main office or branch is relocated within athree-mile radius of where it was originally located; or
(iv) after a voluntary merger under Section 7-9-39, operate a branch in the county if:
(A) the effective date of the merger is on or after May 5, 2003;
(B) the credit union with the field of membership described in Subsection (2)(d) is thesurviving credit union after the merger; and
(C) the credit union did not own and operate the branch before the effective date of themerger; and
(c) may only admit as a member:
(i) a person in the credit union's grandfathered field of membership; or
(ii) a person belonging to an association that:

(A) is added to the field of membership of the credit union; and
(B) resides in the domicile-county of the credit union.
(4) (a) If a credit union's field of membership is as described in Subsection (2)(b), as ofMay 3, 1999, the credit union may operate as a credit union having a field of membership underSection 7-9-51.
(b) If a credit union's field of membership is as described in Subsection (2)(c), as of May3, 1999, the credit union:
(i) within the credit union's domicile-county, may establish, relocate, or otherwise changethe physical location of the credit union's:
(A) main office; or
(B) branch;
(ii) within a county other than its domicile-county that is in the credit union's field ofmembership under Subsection (2)(c), may not:
(A) establish a main office or branch that was not located in the county as of January 1,1999;
(B) participate in a service center in which it does not participate as of January 1, 1999;or
(C) relocate the credit union's main office or a branch located in the county as of January1, 1999, unless the commissioner finds that the main office or branch is relocated within athree-mile radius of where it was originally located; and
(iii) may only admit as a member:
(A) a person in the credit union's field of membership under Subsection (2)(c); or
(B) a person belonging to an association that is added to the field of membership of thecredit union, regardless of whether the association resides in the domicile-county of the creditunion.
(5) (a) Notwithstanding Subsections (1) through (4), after May 3, 1999, a credit uniondescribed in Subsection (2)(c) or (d) may:
(i) operate an office or branch that is operated by the credit union on May 3, 1999, butthat is not located in a county that is in the credit union's field of membership as of May 3, 1999;and
(ii) serve a member who is not in a credit union's field of membership as of May 3, 1999,if the member is a member of the credit union as of March 15, 1999.
(b) Subsection (5)(a) does not authorize a credit union to:
(i) establish a branch in a county that is not in the credit union's field of membership asof May 3, 1999, unless the branch meets the requirements under this title for establishing abranch; or
(ii) for a credit union described in Subsection (2)(d), include in its field of membershipan association that:
(A) as of January 1, 1999, is not included in the credit union's field of membership; and
(B) does not reside within the credit union's domicile-county.
(6) A credit union shall amend its bylaws in accordance with Section 7-9-11 by no laterthan August 3, 1999, to comply with this section.
(7) In addition to any requirement under this section, a credit union shall comply withany requirement under this title for the establishment, relocation, or change in the physicallocation of a main office or branch of a credit union.

Amended by Chapter 324, 2010 General Session


State Codes and Statutes


Back To Homepage

State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-09 > 7-9-53

7-9-53. Grandfathering.
(1) As used in this section:
(a) "Association that resides in a domicile-county" means an association that:
(i) operates a place of business or other physical location in the domicile-county; or
(ii) has at least 100 members that are residents of the domicile-county.
(b) "Domicile-county" means the county:
(i) in the field of membership of the credit union as of January 1, 1999; and
(ii) in which the credit union has located the greatest number of branches as of January 1,1999.
(c) "Grandfathered field of membership" means the field of membership as of May 3,1999, of a credit union described in Subsection (2)(d).
(2) For each credit union formed before January 1, 1999, its field of membership as ofMay 3, 1999, is determined as follows:
(a) if the field of membership stated in the bylaws of the credit union as of January 1,1999, complies with Section 7-9-51, the credit union's field of membership is the field ofmembership indicated in its bylaws;
(b) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(b)(ii) if:
(A) the field of membership stated in the bylaws of the credit union as of January 1,1999, includes the residents of more than one county; and
(B) as of January 1, 1999, the credit union's main office and any of its branches arelocated in only one county in its field of membership;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(b)(i) is:
(A) the immediate family of a member of the credit union;
(B) the employees of the credit union;
(C) residents of the one county in which the credit union has its main office or branchesas of January 1, 1999; and
(D) any association that as of January 1, 1999, is in the field of membership of the creditunion;
(c) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(c)(ii) if:
(A) the field of membership of a credit union stated in the bylaws of the credit union asof January 1, 1999, includes residents of more than one county;
(B) as of January 1, 1999, the credit union has a main office or branch in more than onecounty; and
(C) as a result of a merger pursuant to a supervisory action under Chapter 2, Possessionof Depository Institution by Commissioner, or Chapter 19, Acquisition of Failing DepositoryInstitutions or Holding Companies, that is effective on or after January 1, 1983, but beforeJanuary 1, 1994, the credit union acquired a branch in a county in the field of membership of thecredit union and the credit union did not have a branch in the county before the merger;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(c)(i) is the same field of membership that the credit union would have had under Subsection(2)(d) except that the credit union:
(A) is not subject to Subsection (3); and

(B) is subject to Subsection (4)(b); and
(d) (i) the field of membership of a credit union as of May 3, 1999, is as provided inSubsection (2)(d)(ii) if:
(A) the field of membership stated in the bylaws of the credit union as of January 1,1999, includes the residents of more than one county; and
(B) as of January 1, 1999, the credit union has a main office or branch in more than onecounty;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection(2)(d)(i) is:
(A) the immediate family of a member of the credit union;
(B) the employees of the credit union;
(C) residents of the credit union's domicile-county;
(D) the residents of any county other than the domicile-county:
(I) if, as of January 1, 1999, the county is in the field of membership of the credit union;and
(II) in which, as of January 1, 1994, the credit union had located its main office or abranch; and
(E) any association that as of January 1, 1999, is in the field of membership of the creditunion.
(3) If a credit union's field of membership is as described in Subsection (2)(d), beginningMay 3, 1999, the credit union:
(a) within the credit union's domicile-county, may establish, relocate, or otherwisechange the physical location of the credit union's:
(i) main office; or
(ii) branch;
(b) within a county other than a domicile-county that is in the credit union'sgrandfathered field of membership, may not:
(i) establish a main office or branch that:
(A) was not located in the county as of January 1, 1999; or
(B) for which the credit union has not received by January 1, 1999, approval orconditional approval of a site plan for the main office or branch from the planning commission ofthe municipality where the main office or branch will be located;
(ii) participate in a service center in which it does not participate as of January 1, 1999;
(iii) relocate the credit union's main office or a branch located in the county as of January1, 1999, unless the commissioner finds that the main office or branch is relocated within athree-mile radius of where it was originally located; or
(iv) after a voluntary merger under Section 7-9-39, operate a branch in the county if:
(A) the effective date of the merger is on or after May 5, 2003;
(B) the credit union with the field of membership described in Subsection (2)(d) is thesurviving credit union after the merger; and
(C) the credit union did not own and operate the branch before the effective date of themerger; and
(c) may only admit as a member:
(i) a person in the credit union's grandfathered field of membership; or
(ii) a person belonging to an association that:

(A) is added to the field of membership of the credit union; and
(B) resides in the domicile-county of the credit union.
(4) (a) If a credit union's field of membership is as described in Subsection (2)(b), as ofMay 3, 1999, the credit union may operate as a credit union having a field of membership underSection 7-9-51.
(b) If a credit union's field of membership is as described in Subsection (2)(c), as of May3, 1999, the credit union:
(i) within the credit union's domicile-county, may establish, relocate, or otherwise changethe physical location of the credit union's:
(A) main office; or
(B) branch;
(ii) within a county other than its domicile-county that is in the credit union's field ofmembership under Subsection (2)(c), may not:
(A) establish a main office or branch that was not located in the county as of January 1,1999;
(B) participate in a service center in which it does not participate as of January 1, 1999;or
(C) relocate the credit union's main office or a branch located in the county as of January1, 1999, unless the commissioner finds that the main office or branch is relocated within athree-mile radius of where it was originally located; and
(iii) may only admit as a member:
(A) a person in the credit union's field of membership under Subsection (2)(c); or
(B) a person belonging to an association that is added to the field of membership of thecredit union, regardless of whether the association resides in the domicile-county of the creditunion.
(5) (a) Notwithstanding Subsections (1) through (4), after May 3, 1999, a credit uniondescribed in Subsection (2)(c) or (d) may:
(i) operate an office or branch that is operated by the credit union on May 3, 1999, butthat is not located in a county that is in the credit union's field of membership as of May 3, 1999;and
(ii) serve a member who is not in a credit union's field of membership as of May 3, 1999,if the member is a member of the credit union as of March 15, 1999.
(b) Subsection (5)(a) does not authorize a credit union to:
(i) establish a branch in a county that is not in the credit union's field of membership asof May 3, 1999, unless the branch meets the requirements under this title for establishing abranch; or
(ii) for a credit union described in Subsection (2)(d), include in its field of membershipan association that:
(A) as of January 1, 1999, is not included in the credit union's field of membership; and
(B) does not reside within the credit union's domicile-county.
(6) A credit union shall amend its bylaws in accordance with Section 7-9-11 by no laterthan August 3, 1999, to comply with this section.
(7) In addition to any requirement under this section, a credit union shall comply withany requirement under this title for the establishment, relocation, or change in the physicallocation of a main office or branch of a credit union.

Amended by Chapter 324, 2010 General Session


Disclaimer
There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Copyright © 2017 Laws.com | All rights reserved

Loading..

Close Window

Loading, Please Wait!

This may take a second or two.