2023 Maryland Statutes › Financial Institutions › Title 6 - Credit Unions › Subtitle 3 - Formation, Organization, and Powers › Part I - Formation › Section 6-301 - Formation in General

(a)    In this section, “organization” includes any trade, profession, club, union, religious congregation, society, association, fraternal group, or cooperative.
(b)    Seven or more adult individuals, each of whom is a resident of this State, may act as incorporators to form a credit union under this subtitle with one of the following field of membership types:
(1)    Single common bond;
(2)    Multiple common bond; or
(3)    Community common bond.
(c)    (1)    Except as otherwise provided in this subtitle, the following provisions shall govern the field of membership types.
(2)    A single common bond credit union may serve one group of individuals all of whom as a common bond:
(i)    Belong to the same recognized organization;
(ii)    Are employed by a single corporation or other person;
(iii)    Are employed by a single corporation or other person with at least a 10% ownership interest in or by another single corporation or person;
(iv)    Are employed by a single corporation or other person that is related to another person, such as by contract and possessing a strong dependency relationship; or
(v)    Are employed by or attend the same school.
(3)    A multiple common bond credit union may serve one or more groups of individuals, as described in paragraph (2) of this subsection, as long as:
(i)    Within each group all individuals have a common bond of organization or occupation; and
(ii)    Each group is within reasonable geographic proximity and has access to a branch of the credit union.
(4)    (i)    Subject to the provisions of subparagraphs (ii) and (iii) of this paragraph and subsection (d) of this section, a community credit union may serve a group of individuals, all members of which, as a common bond, live, work, worship, or attend school within a single or two or more contiguous well-defined local communities, neighborhoods, rural districts, or counties.
(ii)    If the common bond is within a single well-defined local community, neighborhood, rural district, or county, the total population at the time of the formation of the credit union may not exceed 300,000.
(iii)    If the common bond is within two or more contiguous well-defined local communities, neighborhoods, rural districts, or counties, the total population at the time of the formation of the credit union may not exceed 200,000.
(d)    Notwithstanding the provisions of subsection (c)(4) of this section, any credit union, without regard to its field of membership type, may include in its field of membership, without regard to location, a community, neighborhood, rural district, or county if:
(1)    The Commissioner determines that the community, neighborhood, rural district, or county is:
(i)    An “investment area” as defined in 12 U.S.C. § 4702(16) of the Community Development Banking and Financial Institutions Act of 1994; and
(ii)    Underserved by other depository financial institutions based on data of the Commissioner, the federal credit union and banking regulatory agencies, or other data sources; and
(2)    The credit union establishes and maintains an office or branch in the community, neighborhood, rural district, or county at which credit union services are available within 2 years after the inclusion of the community, neighborhood, rural district, or county in the field of membership of the credit union.
(e)    (1)    Except as provided in paragraph (2) of this subsection, only a group with fewer than 3,000 members, excluding individuals who are eligible under § 6-302(b)(4) or (5) of this subtitle, shall be eligible to be included in the membership of a multiple common bond credit union.
(2)    The numerical limitation in paragraph (1) of this subsection does not apply with respect to a group:
(i)    That the Commissioner determines could not feasibly or reasonably establish a new single common bond credit union;
(ii)    Transferred from another credit union in connection with:
1.    A merger or consolidation approved by the Commissioner based on safety and soundness concerns; or
2.    A liquidation approved by the Commissioner; or
(iii)    Transferred through the merger or consolidation of two credit unions, both of which served the group immediately before the merger or consolidation.