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<section article="gfi" article_name="Financial Institutions" number="6-301" title_number="6" title_name="Credit Unions" subtitle_number="3" subtitle_name="Formation, Organization, and Powers">
  <level label="a">
    <text>In this section, “organization” includes any trade, profession, club, union, religious congregation, society, association, fraternal group, or cooperative.</text>
  </level>
  <level label="b">
    <text>Seven or more adult individuals, each of whom is a resident of this State, may act as incorporators to form a credit union under this subtitle with one of the following field of membership types:</text>
    <level label="1">
      <text>Single common bond;</text>
    </level>
    <level label="2">
      <text>Multiple common bond; or</text>
    </level>
    <level label="3">
      <text>Community common bond.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>Except as otherwise provided in this subtitle, the following provisions shall govern the field of membership types.</text>
    </level>
    <level label="2">
      <text>A single common bond credit union may serve one group of individuals all of whom as a common bond:</text>
      <level label="i">
        <text>Belong to the same recognized organization;</text>
      </level>
      <level label="ii">
        <text>Are employed by a single corporation or other person;</text>
      </level>
      <level label="iii">
        <text>Are employed by a single corporation or other person with at least a 10% ownership interest in or by another single corporation or person;</text>
      </level>
      <level label="iv">
        <text>Are employed by a single corporation or other person that is related to another person, such as by contract and possessing a strong dependency relationship; or</text>
      </level>
      <level label="v">
        <text>Are employed by or attend the same school.</text>
      </level>
    </level>
    <level label="3">
      <text>A multiple common bond credit union may serve one or more groups of individuals, as described in paragraph (2) of this subsection, as long as:</text>
      <level label="i">
        <text>Within each group all individuals have a common bond of organization or occupation; and</text>
      </level>
      <level label="ii">
        <text>Each group is within reasonable geographic proximity and has access to a branch of the credit union.</text>
      </level>
    </level>
    <level label="4">
      <level label="i">
        <text>Subject to the provisions of subparagraphs (ii) and (iii) of this paragraph and subsection (d) of this section, a community credit union may serve a group of individuals, all members of which, as a common bond, live, work, worship, or attend school within a single or two or more contiguous well-defined local communities, neighborhoods, rural districts, or counties.</text>
      </level>
      <level label="ii">
        <text>If the common bond is within a single well-defined local community, neighborhood, rural district, or county, the total population at the time of the formation of the credit union may not exceed 300,000.</text>
      </level>
      <level label="iii">
        <text>If the common bond is within two or more contiguous well-defined local communities, neighborhoods, rural districts, or counties, the total population at the time of the formation of the credit union may not exceed 200,000.</text>
      </level>
    </level>
  </level>
  <level label="d">
    <text>Notwithstanding the provisions of subsection (c)(4) of this section, any credit union, without regard to its field of membership type, may include in its field of membership, without regard to location, a community, neighborhood, rural district, or county if:</text>
    <level label="1">
      <text>The Commissioner determines that the community, neighborhood, rural district, or county is:</text>
      <level label="i">
        <text>An “investment area” as defined in 12 U.S.C. § 4702(16) of the Community Development Banking and Financial Institutions Act of 1994; and</text>
      </level>
      <level label="ii">
        <text>Underserved by other depository financial institutions based on data of the Commissioner, the federal credit union and banking regulatory agencies, or other data sources; and</text>
      </level>
    </level>
    <level label="2">
      <text>The credit union establishes and maintains an office or branch in the community, neighborhood, rural district, or county at which credit union services are available within 2 years after the inclusion of the community, neighborhood, rural district, or county in the field of membership of the credit union.</text>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <text>Except as provided in paragraph (2) of this subsection, only a group with fewer than 3,000 members, excluding individuals who are eligible under § 6-302(b)(4) or (5) of this subtitle, shall be eligible to be included in the membership of a multiple common bond credit union.</text>
    </level>
    <level label="2">
      <text>The numerical limitation in paragraph (1) of this subsection does not apply with respect to a group:</text>
      <level label="i">
        <text>That the Commissioner determines could not feasibly or reasonably establish a new single common bond credit union;</text>
      </level>
      <level label="ii">
        <text>Transferred from another credit union in connection with:</text>
        <level label="1">
          <text>A merger or consolidation approved by the Commissioner based on safety and soundness concerns; or</text>
        </level>
        <level label="2">
          <text>A liquidation approved by the Commissioner; or</text>
        </level>
      </level>
      <level label="iii">
        <text>Transferred through the merger or consolidation of two credit unions, both of which served the group immediately before the merger or consolidation.</text>
      </level>
    </level>
  </level>
</section>
