---
kind: "section"
citation: "12 U.S.C. § 1759"
title: "12"
title_heading: "Banks and Banking"
number: "1759"
heading: "Membership"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1759"
units:
  - "Chapter 14 — Federal Credit Unions"
  - "Subchapter I — General Provisions"
---

# §1759. Membership

- (a) **In general—** Subject to [subsection (b)](#b), [Federal credit union](/usc/12/1752.md?p=1) membership shall consist of the incorporators and such other [persons](/usc/12/5481.md?p=19) and incorporated and unincorporated organizations, to the extent permitted by rules and regulations prescribed by the [Board](/usc/12/1752.md?p=4), as may be elected to membership and as such shall each, subscribe to at least one share of its stock and pay the initial installment thereon and a uniform entrance fee if required by the [board](/usc/12/1752.md?p=4) of [directors](/usc/12/5481.md?p=10). Shares may be issued in joint tenancy with right of survivorship with any [persons](/usc/12/5481.md?p=19) designated by the [credit](/usc/12/5481.md?p=7) union member, but no joint tenant shall be permitted to vote, obtain loans, or hold office, unless he is within the field of membership and is a qualified member.
- (b) **Membership field—** Subject to the other provisions of this section, the membership of any [Federal credit union](/usc/12/1752.md?p=1) shall be limited to the membership described in one of the following categories:
  - (1) **Single common-bond credit union—** One group that has a common bond of occupation or association.
  - (2) **Multiple common-bond credit union—** More than one group—
    - (A) each of which has (within the group) a common bond of occupation or association; and
    - (B) the number of members, each of which (at the time the group is first included within the field of membership of a [credit](/usc/12/5481.md?p=7) union described in this paragraph) does not exceed any numerical limitation applicable under [subsection (d)](#d).
  - (3) **Community credit union—** [Persons](/usc/12/5481.md?p=19) or organizations within a well-defined local community, neighborhood, or rural district.
- (c) **Exceptions—**
  - (1) **Grandfathered members and groups—**
    - (A) **In general—** Notwithstanding [subsection (b)](#b)—
      - (i) any [person](/usc/12/5481.md?p=19) or organization that is a member of any [Federal credit union](/usc/12/1752.md?p=1) as of August 7, 1998, may remain a member of the [credit](/usc/12/5481.md?p=7) union after August 7, 1998; and
      - (ii) a member of any group whose members constituted a portion of the membership of any [Federal credit union](/usc/12/1752.md?p=1) as of August 7, 1998, shall continue to be eligible to become a member of that [credit](/usc/12/5481.md?p=7) union, by virtue of membership in that group, after August 7, 1998.
    - (B) **Successors—** If the common bond of any group referred to in [subparagraph (A)](#c-1-A) is defined by any particular organization or business entity, [subparagraph (A)](#c-1-A) shall continue to apply with respect to any successor to the organization or entity.
  - (2) **Exception for underserved areas—** Notwithstanding [subsection (b)](#b), in the case of a [Federal credit union](/usc/12/1752.md?p=1), the field of membership category of which is described in [subsection (b)(2)](#b-2), the [Board](/usc/12/1752.md?p=4) may allow the membership of the [credit](/usc/12/5481.md?p=7) union to include any [person](/usc/12/5481.md?p=19) or organization within a local community, neighborhood, or rural district if—
    - (A) the [Board](/usc/12/1752.md?p=4) determines that the local community, neighborhood, or rural district—
      - (i) is an “investment area”, as defined in [section 4702(16) of this title](/usc/12/4702.md?p=16), and meets such additional requirements as the [Board](/usc/12/1752.md?p=4) may impose; and
      - (ii) is underserved, based on data of the [Board](/usc/12/1752.md?p=4) and the Federal banking agencies (as defined in [section 1813 of this title](/usc/12/1813.md)), by other [depository institutions](/usc/12/1861.md?p=b-4) (as defined in [section 461(b)(1)(A) of this title](/usc/12/461.md?p=b-1-A)); and
    - (B) the [credit](/usc/12/5481.md?p=7) union establishes and maintains an office or facility in the local community, neighborhood, or rural district at which [credit](/usc/12/5481.md?p=7) union services are available.
- (d) **Multiple common-bond credit union group requirements—**
  - (1) **Numerical limitation—** Except as provided in [paragraph (2)](#d-2), only a group with fewer than 3,000 members shall be eligible to be included in the field of membership category of a [credit](/usc/12/5481.md?p=7) union described in [subsection (b)(2)](#b-2).
  - (2) **Exceptions—** In the case of any [Federal credit union](/usc/12/1752.md?p=1), the field of membership category of which is described in [subsection (b)(2)](#b-2), the numerical limitation in paragraph (1) of this subsection shall not apply with respect to—
    - (A) any group that the [Board](/usc/12/1752.md?p=4) determines, in writing and in accordance with the guidelines and regulations issued under [paragraph (3)](#d-3), could not feasibly or reasonably establish a new single common-bond [credit](/usc/12/5481.md?p=7) union, the field of membership category of which is described in [subsection (b)(1)](#b-1) because—
      - (i) the group lacks sufficient volunteer and other resources to support the efficient and effective operation of a [credit](/usc/12/5481.md?p=7) union;
      - (ii) the group does not meet the criteria that the [Board](/usc/12/1752.md?p=4) has determined to be important for the likelihood of success in establishing and managing a new [credit](/usc/12/5481.md?p=7) union, including demographic characteristics such as geographical location of members, diversity of ages and income levels, and other factors that may affect the financial viability and stability of a [credit](/usc/12/5481.md?p=7) union; or
      - (iii) the group would be unlikely to operate a safe and sound [credit](/usc/12/5481.md?p=7) union;
    - (B) any group transferred from another [credit](/usc/12/5481.md?p=7) union—
      - (i) in connection with a merger or consolidation recommended by the [Board](/usc/12/1752.md?p=4) or any appropriate [State credit union](/usc/12/1752.md?p=6) supervisor based on safety and soundness concerns with respect to that other [credit](/usc/12/5481.md?p=7) union; or
      - (ii) by the [Board](/usc/12/1752.md?p=4) in the [Board](/usc/12/1752.md?p=4)’s capacity as conservator or liquidating agent with respect to that other [credit](/usc/12/5481.md?p=7) union; or
    - (C) any group transferred in connection with a voluntary merger, having received conditional approval by the [Administration](/usc/12/1752.md?p=3) of the merger application prior to October 25, 1996, but not having consummated the merger prior to October 25, 1996, if the merger is consummated not later than 180 days after August 7, 1998.
  - (3) **Regulations and guidelines—** The [Board](/usc/12/1752.md?p=4) shall issue guidelines or regulations, after notice and opportunity for comment, setting forth the criteria that the [Board](/usc/12/1752.md?p=4) will apply in determining under this subsection whether or not an additional group may be included within the field of membership category of an existing [credit](/usc/12/5481.md?p=7) union described in [subsection (b)(2)](#b-2).
- (e) **Additional membership eligibility provisions—**
  - (1) **Membership eligibility limited to immediate family or household members—** No individual shall be eligible for membership in a [credit](/usc/12/5481.md?p=7) union on the basis of the relationship of the individual to another [person](/usc/12/5481.md?p=19) who is eligible for membership in the [credit](/usc/12/5481.md?p=7) union, unless the individual is a member of the immediate family or household (as those terms are defined by the [Board](/usc/12/1752.md?p=4), by regulation) of the other [person](/usc/12/5481.md?p=19).
  - (2) **Retention of membership—** Except as provided in [section 1764 of this title](/usc/12/1764.md), once a [person](/usc/12/5481.md?p=19) becomes a member of a [credit](/usc/12/5481.md?p=7) union in accordance with this subchapter, that [person](/usc/12/5481.md?p=19) or organization may remain a member of that [credit](/usc/12/5481.md?p=7) union until the [person](/usc/12/5481.md?p=19) or organization chooses to withdraw from the membership of the [credit](/usc/12/5481.md?p=7) union.
- (f) **Criteria for approval of expansion of multiple common-bond credit unions—**
  - (1) **In general—** The [Board](/usc/12/1752.md?p=4) shall—
    - (A) encourage the formation of separately chartered [credit](/usc/12/5481.md?p=7) unions instead of approving an application to include an additional group within the field of membership of an existing [credit](/usc/12/5481.md?p=7) union whenever practicable and consistent with reasonable standards for the safe and sound operation of the [credit](/usc/12/5481.md?p=7) union; and
    - (B) if the formation of a separate [credit](/usc/12/5481.md?p=7) union by the group is not practicable or consistent with the standards referred to in [subparagraph (A)](#f-1-A), require the inclusion of the group in the field of membership of a [credit](/usc/12/5481.md?p=7) union that is within reasonable proximity to the location of the group whenever practicable and consistent with reasonable standards for the safe and sound operation of the [credit](/usc/12/5481.md?p=7) union.
  - (2) **Approval criteria—** The [Board](/usc/12/1752.md?p=4) may not approve any application by a [Federal credit union](/usc/12/1752.md?p=1), the field of membership category of which is described in [subsection (b)(2)](#b-2) to include any additional group within the field of membership of the [credit](/usc/12/5481.md?p=7) union (or an application by a [Federal credit union](/usc/12/1752.md?p=1) described in [subsection (b)(1)](#b-1) to include an additional group and become a [credit](/usc/12/5481.md?p=7) union described in [subsection (b)(2)](#b-2)), unless the [Board](/usc/12/1752.md?p=4) determines, in writing, that—
    - (A) the [credit](/usc/12/5481.md?p=7) union has not engaged in any unsafe or unsound practice (as defined in [section 1786(b) of this title](/usc/12/1786.md?p=b)) that is material during the 1-year period preceding the date of filing of the application;
    - (B) the [credit](/usc/12/5481.md?p=7) union is adequately capitalized;
    - (C) the [credit](/usc/12/5481.md?p=7) union has the administrative capability to serve the proposed membership group and the financial resources to meet the need for additional staff and assets to serve the new membership group;
    - (D) any potential harm that the expansion of the field of membership of the [credit](/usc/12/5481.md?p=7) union may have on any other [insured credit union](/usc/12/1752.md?p=7) and its members is clearly outweighed in the public interest by the probable beneficial effect of the expansion in meeting the convenience and needs of the members of the group proposed to be included in the field of membership; and
    - (E) the [credit](/usc/12/5481.md?p=7) union has met such additional requirements as the [Board](/usc/12/1752.md?p=4) may prescribe, by regulation.
- (g) **Regulations required for community credit unions—**
  - (1) **Definition of well-defined local community, neighborhood, or rural district—** The [Board](/usc/12/1752.md?p=4) shall prescribe, by regulation, a definition for the term “well-defined local community, neighborhood, or rural district” for purposes of—
    - (A) making any determination with regard to the field of membership of a [credit](/usc/12/5481.md?p=7) union described in [subsection (b)(3)](#b-3); and
    - (B) establishing the criteria applicable with respect to any such determination.
  - (2) **Scope of application—** The definition prescribed by the [Board](/usc/12/1752.md?p=4) under [paragraph (1)](#g-1) shall apply with respect to any application to form a new [credit](/usc/12/5481.md?p=7) union, or to alter or expand the field of membership of an existing [credit](/usc/12/5481.md?p=7) union, that is filed with the [Board](/usc/12/1752.md?p=4) after August 7, 1998.

## Source credit

(June 26, 1934, ch. 750, title I, § 109, formerly § 9, 48 Stat. 1219; July 31, 1946, ch. 711, § 2, 60 Stat. 744; 1947 Reorg. Plan No. 1, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091; renumbered § 10 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 631; Pub. L. 91–206, § 2(1), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 109, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 93–383, title VII, § 722, Aug. 22, 1974, 88 Stat. 719; Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 105–219, title I, §§ 101–103, Aug. 7, 1998, 112 Stat. 914–917; Pub. L. 109–351, title VII, § 726(9), Oct. 13, 2006, 120 Stat. 2002.)

## Notes

### Editorial Notes

### Amendments

2006—Subsec. (c)(2)(A)(i). Pub. L. 109–351 made technical amendment to reference in original act which appears in text as reference to section 4702(16) of this title.

1998—Subsec. (a). Pub. L. 105–219, § 101(1)(A), designated existing provisions as subsec. (a) and inserted heading and “Subject to subsection (b),” before “Federal credit union membership shall consist of”.

Pub. L. 105–219, § 101(1)(B), which directed the amendment of subsec. (a) by striking out “, except that Federal credit union membership shall be limited to groups having a common bond of occupation or association, or to groups within a well-defined neighborhood, community, or rural district” after “directors”, was executed by striking out such language which began with a semicolon rather than a comma after “directors” to reflect the probable intent of Congress.

Subsecs. (b) to (e). Pub. L. 105–219, § 101(2), added subsecs. (b) to (e).

Subsec. (f). Pub. L. 105–219, § 102, added subsec. (f).

Subsec. (g). Pub. L. 105–219, § 103, added subsec. (g).

1978—Pub. L. 95–630 substituted “Board” for “Administrator”.

1974—Pub. L. 93–383 substituted “a uniform entrance fee if required by the board of directors” for “the entrance fee”.

1970—Pub. L. 91–206 substituted “Administrator” for “Director”.

1959—Pub. L. 86–354 substituted “persons” for “person” before “designated”.

1946—Act July 31, 1946, inserted sentence at end permitting a Federal credit union to issue shares in joint tenancy with a right of survivorship.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1978 Amendment

Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.

### Report and Congressional Review Requirement for Certain Regulations

Pub. L. 105–219, title II, § 205, Aug. 7, 1998, 112 Stat. 923, provided that: “A regulation prescribed by the Board [National Credit Union Administration Board] shall be treated as a major rule for purposes of chapter 8 of title 5, United States Code, if the regulation defines, or amends the definition of— the term ‘immediate family or household’ for purposes of section 109(e)(1) of the Federal Credit Union Act [12 U.S.C. 1759(e)(1)] (as added by section 101 of this Act); or the term ‘well-defined local community, neighborhood, or rural district’ for purposes of section 109(g) of the Federal Credit Union Act (as added by section 103 of this Act).”