2005 Vermont Code - § 2055. — Membership

§ 2055. Membership

(a) The membership of a credit union shall be limited to and consist of the subscribers to the articles of association and such other persons having the common bond set forth in the bylaws as have been duly admitted members, have paid the entrance fee as provided in the bylaws, have subscribed for one or more shares, have paid the initial installment thereon, arranged for payment of the balance as provided by the bylaws, and have complied with such other requirements as the articles of association or bylaws may specify. A member shall have all the rights and privileges of membership as long as he is in good standing.

(b) Credit union organizations shall be limited to groups having a common bond of occupation or association or a well-defined neighborhood, community, or rural district, employees of a common employer, employees of varied and approved occupational groups who work within a well-defined area, employees of corporations within an area served by the credit union that are subsidiaries of a common parent corporation or members of a bona fide fraternal, religious, cooperative, labor, rural, educational, or similar organization and members of the immediate family or household of persons in those groups and persons retiring as pensioners or annuitants from eligible occupational groups. "Immediate family" is defined as any relative of any member by blood, marriage, or adoption. "Household member" shall be defined by rule by the commissioner.

(c) Societies, associations, co-partnerships and corporations composed for the most part of individuals who are eligible to membership may be admitted to membership in the same manner and under the same conditions as individuals, but may not borrow in excess of their holdings, except in the case of loans to small businesses or nonprofit organizations made by credit unions designated as community development credit unions subject to rules promulgated by the commissioner of banking, insurance, securities, and health care administration. Any credit union organized under this chapter may become a member of a corporate central credit union. (Added 1967, No. 312 (Adj. Sess.), § 1, eff. March 22, 1968; amended 1975, No. 70, § 3; 1977, No. 76, § 2; 1983, No. 227 (Adj. Sess.), § 2; 1995, No. 142 (Adj. Sess.), § 13, eff. May 30, 1996; 1999, No. 153 (Adj. Sess.), § 5a.)