PURPOSE: This rule sets forth the criteria the Credit Union Commission may consider when determining whether or not to approve a request for an exemption from the limitations on groups, established pursuant to 370.081, RSMo.

1. (1) A credit union desiring to make an application to expand its field of membership pursuant to 370.081, RSMo by adding a group with more than three thousand (3,000) members must request approval from the commission prior to submitting an application to the director. The request should be submitted on the form approved by the commission. The request should also include proof in the form of documentation or otherwise that is sufficient to show the group satisfies one of the three (3) exceptions listed in 370.081.2(1)(a)–(c), RSMo. This proof can include but is not limited to the following:

   1. (A) Lack of volunteers or other resources.

      1. 1. Documentation in the form of letters

from the group desiring credit union membership indicating the lack of volunteer support.

1. 2. Letters, surveys or petitions indicat-

ing that no group has shown an interest in starting a credit union that would encompass the group desiring to join the credit union;

1. (B) The desire of the new group to start their own credit union.

   1. 1. Documentation showing the desire of

the group to join the existing credit union.

1. 2. Documentation showing the desire of

the group to start their own credit union.

1. 3. Documentation regarding the eco-

nomic advisability of the group to start a credit union including market expectations, ability to build capital and reasonable accessibility.

1. 4. The group must show it can meet the

criteria established in 4 CSR 105-3.030; and

1. (C) Group would be unlikely to operate in a safe and a sound manner.

   1. 1. Documentation showing lack of man-

agement, lack of capital, lack of expertise to operate a credit union, lack of volunteers and lack of insurability or any action which would result in abnormal risk.

1. (2) None of these categories are exclusive allowing an applicant to use any combination of proof to meet its burden under the statute.

AUTHORITY: section 370.063, RSMo Supp. 1999.* This rule originally filed as 4 CSR 105-3.040. Original rule filed Jan. 13, 2000, effective Aug. 30, 2000. Moved to 20 CSR 1105-3.040, effective Aug. 28, 2006. *Original authority: 370.063, RSMo 1998.