Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 181-H.F.No. 792 
           An act relating to credit unions; permitting certain 
          groups to join existing credit unions; amending 
          Minnesota Statutes 1986, section 52.05. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 52.05, is 
amended to read:  
    52.05 [MEMBERSHIP.] 
    Subdivision 1.  [REQUIREMENTS.] Credit union membership 
consists of the incorporators and other persons as may be 
elected to membership and subscribe to at least one share as 
designated by the board of directors, pay the initial 
installment thereon and the entrance fee if any.  In addition to 
a regularly qualified member, the spouse of a member, the blood 
or adoptive relatives of either of them and their spouses may be 
members.  When an individual member of a credit union leaves the 
field of membership, the member, and all persons who became 
members by virtue of that individual's membership may continue 
as members.  The surviving spouse of a regularly qualified 
member, and the blood or adoptive relatives of either of them 
and their spouses may become members.  Organizations, 
incorporated or otherwise, composed for the most part of the 
same general group as the credit union membership may be 
members.  Credit unions chartered by this or any other state, or 
any federal credit union may be members.  Credit union 
organizations shall be limited to groups, of both large and 
small membership, having a common bond of occupation, or 
association, or to residents within a well-defined neighborhood, 
community, or rural district. 
    Subd. 2.  [APPLICATION.] Any 25 residents of the state 
representing a group may apply to the commissioner, advising the 
commissioner of the common bond of the group and its number of 
potential members, for a determination whether it is feasible 
for the group to form a credit union.  Upon a determination that 
it is not feasible to organize because the number of potential 
members is too small, the applicants will be certified by the 
commissioner as eligible to petition for membership in an 
existing credit union geographically situated to adequately 
service capable of serving the group.  If the credit union so 
petitioned resolves to accept the group into membership, it 
shall follow the bylaw amendment and approval procedure set 
forth in section 52.02.  
    The commissioner shall adopt rules to implement this 
subdivision.  These rules must provide that: 
    (1) for the purpose of this subdivision, groups with a 
potential membership of less than 1,500 will be considered too 
small to be feasible as a separate credit union, unless there 
are compelling reasons to the contrary, relevant to the 
objectives of this subdivision; 
    (2) groups with a potential membership in excess of 1,500 
will be considered in light of all circumstances relevant to the 
objectives of this subdivision; and 
    (3) all group applications, except for applications from 
groups made up of members of existing credit unions or groups 
made up of people who have a common employer which qualifies 
them for membership in an existing credit union, will be 
considered separately from any consideration of the membership 
provisions of existing credit unions; except that, groups made 
up of members of an existing credit union may be certified under 
this subdivision with the agreement of the credit union. 
    Approved May 20, 1987