7-9-53. Grandfathering.
(1) As used in this section:
(a) "Association that resides in a domicile-county" means an association that:
(i) operates a place of business or other physical location in the domicile-county; or
(ii) has at least 100 members that are residents of the domicile-county.
(b) "Domicile-county" means the county:
(i) in the field of membership of the credit union as of January 1, 1999; and
(ii) in which the credit union has located the greatest number of branches as of January 1,
1999.
(c) "Grandfathered field of membership" means the field of membership as of May 3,
1999, of a credit union described in Subsection (2)(d).
(2) For each credit union formed before January 1, 1999, its field of membership as of
May 3, 1999, is determined as follows:
(a) if the field of membership stated in the bylaws of the credit union as of January 1,
1999, complies with Section 7-9-51, the credit union's field of membership is the field of
membership indicated in its bylaws;
(b) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
Subsection (2)(b)(ii) if:
(A) the field of membership stated in the bylaws of the credit union as of January 1,
1999, includes the residents of more than one county; and
(B) as of January 1, 1999, the credit union's main office and any of its branches are
located in only one county in its field of membership;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection
(2)(b)(i) is:
(A) the immediate family of a member of the credit union;
(B) the employees of the credit union;
(C) residents of the one county in which the credit union has its main office or branches
as of January 1, 1999, and
(D) any association that as of January 1, 1999, is in the field of membership of the credit
union;
(c) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
Subsection (2)(c)(ii) if:
(A) the field of membership of a credit union stated in the bylaws of the credit union as
of January 1, 1999, includes residents of more than one county;
(B) as of January 1, 1999, the credit union has a main office or branch in more than one
county; and
(C) as a result of a merger pursuant to a supervisory action under Chapter 2 or 19 that is
effective on or after January 1, 1983, but before January 1, 1994, the credit union acquired a
branch in a county in the field of membership of the credit union and the credit union did not
have a branch in the county before the merger;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection
(2)(c)(i) is the same field of membership that the credit union would have had under Subsection
(2)(d) except that the credit union:
(A) is not subject to Subsection (3); and
(B) is subject to Subsection (4)(b); and
(d) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
Subsection (2)(d)(ii) if:
(A) the field of membership stated in the bylaws of the credit union as of January 1,
1999, includes the residents of more than one county; and
(B) as of January 1, 1999, the credit union has a main office or branch in more than one
county;
(ii) as of May 3, 1999, the field of membership of a credit union described in Subsection
(2)(d)(i) is:
(A) the immediate family of a member of the credit union;
(B) the employees of the credit union;
(C) residents of the credit union's domicile-county;
(D) the residents of any county other than the domicile-county:
(I) if, as of January 1, 1999, the county is in the field of membership of the credit union;
and
(II) in which, as of January 1, 1994, the credit union had located its main office or a
branch; and
(E) any association that as of January 1, 1999, is in the field of membership of the credit
union.
(3) If a credit union's field of membership is as described in Subsection (2)(d), beginning
May 3, 1999, the credit union:
(a) within the credit union's domicile-county, may establish, relocate, or otherwise
change the physical location of the credit union's:
(i) main office; or
(ii) branch;
(b) within a county other than a domicile-county that is in the credit union's
grandfathered field of membership, may not:
(i) establish a main office or branch that:
(A) was not located in the county as of January 1, 1999; or
(B) for which the credit union has not received by January 1, 1999, approval or
conditional approval of a site plan for the main office or branch from the planning commission of
the municipality where the main office or branch will be located;
(ii) participate in a service center in which it does not participate as of January 1, 1999;
(iii) relocate the credit union's main office or a branch located in the county as of January
1, 1999, unless the commissioner finds that the main office or branch is relocated within a
three-mile radius of where it was originally located; or
(iv) after a voluntary merger under Section 7-9-39, operate a branch in the county if:
(A) the effective date of the merger is on or after May 5, 2003;
(B) the credit union with the field of membership described in Subsection (2)(d) is the
surviving credit union after the merger; and
(C) the credit union did not own and operate the branch before the effective date of the
merger; and
(c) may only admit as a member:
(i) a person in the credit union's grandfathered field of membership; or
(ii) a person belonging to an association that:
(A) is added to the field of membership of the credit union; and
(B) resides in the domicile-county of the credit union.
(4) (a) If a credit union's field of membership is as described in Subsection (2)(b), as of
May 3, 1999, the credit union may operate as a credit union having a field of membership under
Section 7-9-51.
(b) If a credit union's field of membership is as described in Subsection (2)(c), as of May
3, 1999, the credit union:
(i) within the credit union's domicile-county, may establish, relocate, or otherwise change
the physical location of the credit union's:
(A) main office; or
(B) branch;
(ii) within a county other than its domicile-county that is in the credit union's field of
membership under Subsection (2)(c), may not:
(A) establish a main office or branch that was not located in the county as of January 1,
1999;
(B) participate in a service center in which it does not participate as of January 1, 1999;
or
(C) relocate the credit union's main office or a branch located in the county as of January
1, 1999, unless the commissioner finds that the main office or branch is relocated within a
three-mile radius of where it was originally located; and
(iii) may only admit as a member:
(A) a person in the credit union's field of membership under Subsection (2)(c); or
(B) a person belonging to an association that is added to the field of membership of the
credit union, regardless of whether the association resides in the domicile-county of the credit
union.
(5) (a) Notwithstanding Subsections (1) through (4), after May 3, 1999, a credit union
described in Subsection (2)(c) or (2)(d) may:
(i) operate an office or branch that is operated by the credit union on May 3, 1999, but
that is not located in a county that is in the credit union's field of membership as of May 3, 1999;
and
(ii) serve a member who is not in a credit union's field of membership as of May 3, 1999,
if the member is a member of the credit union as of March 15, 1999.
(b) Subsection (5)(a) does not authorize a credit union to:
(i) establish a branch in a county that is not in the credit union's field of membership as
of May 3, 1999, unless the branch meets the requirements under this title for establishing a
branch; or
(ii) for a credit union described in Subsection (2)(d), include in its field of membership
an association that:
(A) as of January 1, 1999, is not included in the credit union's field of membership; and
(B) does not reside within the credit union's domicile-county.
(6) A credit union shall amend its bylaws in accordance with Section 7-9-11 by no later
than August 3, 1999, to comply with this section.
(7) In addition to any requirement under this section, a credit union shall comply with
any requirement under this title for the establishment, relocation, or change in the physical
location of a main office or branch of a credit union.
Amended by Chapter 327, 2003 General Session
Download Code Section Zipped WordPerfect 07_09_005300.ZIP 4,646 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Thursday, May 28, 2009