2005 Missouri Revised Statutes - § 370.081. — Merger and consolidation of credit unions--additional member groups and geographic areas--appeals.

370.081. 1. A credit union may add to its membership additional groups or geographic areas that comply with the provisions of subsection 2 of section 370.080 if the credit union meets the criteria set forth in this section.

2. Except as provided in subdivisions (1) and (2) of this subsection, each state chartered credit union shall be subject to limitations on groups of members that are no less restrictive than those applicable to federally chartered credit unions under federal laws and regulations, as such limitations are amended or added from time to time, they shall be applicable to each state chartered credit union, and in the absence of federal law or regulation relating to the size of membership groups, only groups with fewer than three thousand members shall be eligible to be included in the credit union's field of membership; unless:

(1) Any group which the commission determines, in writing and in accordance with the guidelines it has set forth, could not feasibly or reasonably establish a new single common-bond credit union because:

(a) The group lacks sufficient volunteer or other resources to support the efficient and effective operation of a credit union;

(b) The group does not meet the criteria which the commission has determined to be important for the likelihood of success in establishing and maintaining a new credit union;

(c) The group would be unlikely to operate a safe and sound credit union;

(2) Any groups transferred from another credit union in connection with a merger or consolidation approved by the director of the division of credit unions or in the director's capacity as conservator or liquidating agent with respect to such credit unions.

3. Notwithstanding subsection 2 of section 370.080, the director of the division of credit unions may allow the membership of a credit union serving groups of occupation, association or employer, to include any person within a community, neighborhood or rural district, if:

(1) Such an area meets the definition of a low-income or underserved community as defined by the credit union commission or the National Credit Union Administration;

(2) A merger or consolidation has been approved by the director of the division of credit unions which involves any community charter credit union.

4. The credit union may apply and receive approval from the director of the division of credit unions to include the proposed new groups or geographic areas in the credit union's membership. In the case of a new credit union application, the organizers of such credit union as provided in subsection 1 of section 370.080 shall specify the membership group selected as provided in subsection 2 of section 370.080. If an existing credit union applies for a field of membership expansion, such credit union shall select either a community group or another group as provided in subsection 2 of section 370.080 which shall be binding for all future expansions. Upon receipt of an application from a credit union to include a new group or new geographic area in its membership, the director of the division of credit unions shall cause notice of the application to be published in the Missouri Register. From the date such notice is published, there shall be a ten-business-day comment period during which any person or entity desiring to do so may comment on such proposal in writing. Comments received shall become a part of the credit union's application file, subject to public inspection and copying. Within ten days after the comment period ends, the director of the division of credit unions shall issue a decision either granting or rejecting the credit union's application and stating the reasons therefor. In addition to any other requirements required by law or rule, prior to granting the application, the director of the division of credit unions shall make the following findings:

(1) The credit union has the immediate ability to serve the additional group or geographic area; and

(2) The proposed additional group or geographic area meets the requirements of subsection 2 of section 370.080. The director of the division of credit unions shall cause the decision, along with the findings, to be published in the Missouri Register.

5. Within fifteen days after the decision is published in the Missouri Register, any person or entity claiming to be adversely affected shall have the right to contest the decision by appealing the decision to the credit union commission utilizing the procedure as set out in section 370.063. If the commission finds that the decision or the findings of the director of the division of credit unions was arbitrary and capricious or not based on evidence in the director's possession, the commission shall set aside the findings and decision of the director of the division of credit unions and enter its own findings and decision. Any party who is aggrieved by a final decision of the commission entered pursuant to this subsection and who has exhausted all administrative remedies provided by law may appeal the decision to the circuit court of Cole County.

6. Subject to the restrictions contained in this chapter, the director of the division of credit unions shall have the authority to approve applications to amend bylaws regarding credit union membership or to organize credit unions that include single or multiple groups.

(L. 1998 H.B. 1323)

(2003) Appeal to commission is applicable to any person or entity that is adversely affected, directly, indirectly, and to whatever extent, by the denial or even the approval of a credit union application. Missouri Bankers Association v. Director, 126 S.W.3d 360 (Mo.banc).