Credit Union

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Credit Union

A corporation formed under special statutory provisions to further thrift among its members while providing credit for them at more favorable rates of interest than those offered by other lending institutions. A credit union is a cooperative association that utilizes funds deposited by a small group of people who are its sole borrowers and beneficiaries. It is ordinarily subject to regulation by state banking boards or commissions. When formed pursuant to the Federal Credit Union Act (12 U.S.C.A. § 1751 et seq. [1934]), credit unions are chartered and regulated by the National Credit Union Administration.

A credit union can be distinguished from other financial institutions by the fact that membership is ordinarily restricted to individuals who meet certain residential or occupational criteria. In addition, it can make loans of a more diversified nature than certain institutions, such as building and loan associations.

References in periodicals archive ?
There is a new breed of credit union and it's not the small mom and pop, plain vanilla culture,'' Birch said.
The audit provisions in the Credit Union Membership bill were a win for CPAs, Taylor concluded.
One institution likely to benefit under such a program is the South Central People's Federal Credit Union (SCPFCU) in Los Angeles.
Premier America is just the latest local credit union to receive state- chartered status.
We'll look for other options - including the liquidation of the credit union - although a merger is more likely.
The credit union industry, which controls about 2 percent of consumer deposits nationwide, said it was not surprised by the ruling and is prepared to press its case in Congress, where a nonpartisan bill has been introduced that would allow credit unions to serve groups that are not related.
The field of membership for Point Mugu Federal Credit Union - anyone who lives, works or worships in Ventura County - is stretching the definition of community too far, Stafford said.

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