The NCUA will now automatically qualify 12 groups as validassociations as they relate to field of membership, accordingto a supervisory letter sent to federal credit unions July 6.

In April, the NCUA Board passed an amendment to its FOM rules andregulations.

The following 12 types of associations will automatically beapproved according to the associational common bond provision:

1. Alumni associations;
2. Religious organizations, including churches or groups ofrelated churches;
3. Electric cooperatives;
4. Homeowner associations;
5. Labor unions;
6. Scouting groups;
7. Parent teacher associations (PTAs) organized at the local levelto serve a single school district;
8. Chamber of commerce groups (members only and not employees ofmembers);
9. Athletic booster clubs whose members have voting rights;
10. Fraternal organizations or civic groups with a mission ofcommunity service whose members have voting rights;
11. Organizations having a mission based on preserving orfurthering the culture of a particular national or ethnic origin;and
12. Organizations promoting social interaction or educationalinitiatives among persons sharing a common occupationalprofession.

The board said in the letter it expects the majority of theassociations requested by federal credit unions to fall within the12 categories.

Another change to the rule clarified NCUA's requirements for anassociational common bond so federal credit unions canunderstand which groups and associations are eligible for FOMinclusion.

“In addition, the amended rule clarifies the NCUA's requirementsfor an associational common bond to help FCUs understand whichgroups and associations are eligible for FOM inclusion,” the lettercontinued.

The amended rule defined which groups do not qualify formembership and reminded federal credit unions that in order toqualify for FOM, the association cannot have been formed for theprimary purpose of expanding credit union membership.