In September 1994, Phenix opened a branch in the same building as SSCU to service the approximate 500 potential members of the already overlapped TSC which was currently being served by SSCU and had not previously been served by Phenix. Prior to opening the branch, Phenix indicated to NCUA and SSCU that our intention is to only serve those members who are included in our field of membership under our current charter. Region III Director passed those assurances along to the Alabama State Supervisor. The Region III Director granted the overlap request on May 16, 1995. An overlap is defined as the situation which results when a group is eligible for membership in more than one credit union.
General policy requires that every reasonable effort be made to avoid an overlap.
In the event an overlap situation arises, officials of the credit unions involved should attempt to work out the overlap problem themselves. When resolution of an overlap problem is not possible, an overlap can be justified by certain circumstances and may be permitted by the Regional Director. Documentation should be provided, including a petition signed by a majority of the group s members. The Region requested that factors be articulated by the members when it requested a petition signed by a majority of the groups members stating valid reasons for seeking other credit union services. In spite of this request, the petition merely stated a desire for dual membership.