Federal Credit Union Membership Act of 1998

Federal Credit Union Membership Act of 1998 - Amends the Federal Credit Union Act to limit Federal credit union membership to: (1) a group which has a common bond of enterprise, trade, or association; or (2) groups within a well-defined community, neighborhood, or rural district with a population of 25,000 or less.

Grandfathers any person or organization who: (1) was a member as of February 25, 1998; or (2) becomes a member of any group whose members constituted a portion of Federal credit union membership as of such date.

[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3454 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3454

    To amend the Federal Credit Union Act to modify the common bond 
           requirements for members of Federal credit unions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 1998

 Mr. Ehrlich introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the Federal Credit Union Act to modify the common bond 
           requirements for members of Federal credit unions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Credit Union Membership Act 
of 1998''.

SEC. 2. COMMON BOND REQUIREMENTS FOR MEMBERS OF FEDERAL CREDIT UNIONS.

    Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is 
amended--
            (1) in the 1st sentence--
                    (A) by striking ``Federal credit union membership 
                shall consist of'' and inserting ``(a) In General.--
                Subject to subsections (b) and (c), Federal credit 
                union membership shall consist of''; and
                    (B) by striking ``, except that'' and all that 
                follows through the period at the end of such sentence 
                and inserting a period; and
            (2) by adding at the end the following new subsections:
    ``(b) Membership Field.--
            ``(1) In general.--The membership of any Federal credit 
        union shall be limited to--
                    ``(A) a group which has a common bond of 
                enterprise, trade, or association; or
                    ``(B) groups within a well-defined community, 
                neighborhood, or rural district with a population of 
                25,000 or less.
            ``(2) Common bond of enterprise.--For purposes of paragraph 
        (1), a group has a common bond of enterprise if the members of 
        the group are officers or employees of the same business 
        enterprise or government agency or organization.
                    ``(3) Common bond of trade.--For purposes of 
                paragraph (1), a group has a common bond of trade if 
                the members of the group have a common trade, 
                profession, or occupation.
    ``(c) Grandfathered Members and Groups.--Notwithstanding subsection 
(b)(1)(A)--
            ``(1) any person or organization who is a member of any 
        Federal credit union as of February 25, 1998, may remain a 
        member of such credit union after such date; and
            ``(2) any person or organization who is or becomes a member 
        of any group whose members constituted a portion of the 
        membership of any Federal credit union as of February 25, 1998, 
        shall continue to be eligible to become a member of such credit 
        union after such date.''
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