23-35-401. Membership requirements.

23-35-401. Membership requirements. (a) The membership of a credit union shall be limited to and consist of the subscribers to the articles of incorporation and such other persons, having the common bond set forth in the bylaws, as have been admitted as members, have paid the entrance fee as provided in the bylaws, have prescribed and paid for one (1) or more shares, and have complied with such other requirements as the articles of incorporation and bylaws may specify. (b)(1) Credit union organizations, other than central credit unions, shall be limited to: (A) Groups having a common bond of occupation; (B) Associations; (C) Residents within a well-defined neighborhood, community, or rural district; (D) Employees of a common employer, or an affiliate of a subsidiary of a common employer; (E) Members of a bona fide fraternal, religious, cooperative, labor, rural, educational, or similar organization; and (F)(i) Members of the immediate family of such persons. (ii) “Members of the immediate family” shall include the wife, husband, children, parents, grandparents, and grandchildren of a member. (2) Societies and associations composed of individuals who are eligible for 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 shareholdings. (c) Membership in credit unions organized as central credit unions shall be limited to: (1) Credit unions organized under this chapter and federally chartered credit unions located in Arkansas; (2) A member of a credit union organized under this chapter or a federally chartered credit union located in Arkansas, if the credit union of which he or she is a member agrees to the membership and will provide an affidavit that at the time the member applies for membership in a central credit union the member has: (A) Reached the loan limit at his or her own credit union, and the credit union of which he or she is a member will substantiate in writing the member's loan credibility under such rules and forms as the State Credit Union Supervisor shall prescribe; (B) Reached the maximum share limit at his or her own credit union; or (C) Reached the maximum share limit at his or her own credit union which is covered by life savings insurance, and the central credit union also provides life savings insurance; (3)(A) With the approval of the supervisor, employees of an employer with insufficient employees to form and conduct the affairs of a separate credit union and persons in the field of membership of liquidating credit unions and the immediate families of those persons. (B) In making his or her determination under this subsection, the supervisor may disregard the common bond requirements of this chapter if he or she finds that the affiliation would benefit the members and be consistent with the purposes of this chapter. (C) If the membership of a liquidating credit union is seeking to merge with a central credit union under the provisions of this subdivision (c)(3), all provisions of § 23-35-701 shall apply except for the common bond requirements. (D) Each employer or liquidating credit union whose employees or members are approved as members of a central credit union shall be specifically named in the common bond section of the bylaws; (4) Employees of the credit union; (5) Current members of the credit union if it is converting to a central credit union; and (6) Employees of the Arkansas Credit Union League.