Section B - Multiple Common Bond Charters

As the name indicates, a multiple common bond charter serves multiple entities. Each entity has its own common bond, but each does not share the same single common bond with the other entities. For example, if a single common bond credit union adds a group that does not share the same single common bond as the original group, it will convert from an single common bond charter to an multiple common bond charter.

A multiple common bond credit union may be occupational or associational or have a combination of both occupational and associational groups. A multiple common bond charter with occupational and associational groups could potentially serve all these entities, for example: members and employees of a religious entity, employees of XYZ Company, members and employees of a labor union, and employees and students of ABC school district.

A multiple common bond charter serving occupational or associational groups, or a combination of these groups, can also add an underserved area to its field of membership. The Federal Credit Union Act defines an “underserved area” as

1. A “local community, neighborhood, or rural district” that

2. Meets the definition of an “Investment Area” under section 103(16) of the Community Development Banking and Financial Institutions Act of 1994 (“CDFI”), 12 U.S.C. 4702(16), and

3. Is “underserved by other depository institutions” based on data of the NCUA Board and the federal banking agencies.

More information on Investment Areas can be found at www.cdfifund.gov.

Multiple Common Bond Service Area

Each of the multiple common bond groups must be located within the service area of one of the proposed federal credit union’s service facilities. Service area is generally defined in the Chartering and Field of Membership Manual as the area that can reasonably be served by the service facilities accessible to the groups within the field of membership.

Each group as a whole is within the service area when:

• A majority of the people in a select group live, work, or gather regularly within the service area. The group’s headquarters is located within the service area

• The group’s “paid from” or “supervised from” location is within the service area

Although “service area” is not defined by a specific distance in NCUA’s regulations, in most parts of the country, groups should generally be within a 25-mile radius of the anticipated service facility. NCUA generally uses this informal guideline but will consider whether the group meets the service area requirement on a case-by-case basis. Internet access to the proposed federal credit union is not sufficient support. Service area and service facilities are further defined in Chapter 2, Article IV.A.1 of the Chartering Manual.

Documentation Required for Section B

In the field of membership section, identify the field of membership type(s) the proposed federal credit union wants to serve (select from the list below), and attach the required documentation for your selection. If the field of membership will include a combination of occupational and associational groups and an underserved area, provide the information listed below in B.1, B.2, and B.3 applicable to each type of group.

• B.1—Multiple Common Bond Charter, Occupational

• B.2—Multiple Common Bond Charter, Associational

• B.3—Multiple Common Bond Charter, Underserved Area

Documentation for B.1 - Multiple Common Bond Charter - Occupational

• Identify each entity by name

• Provide a letter from an authorized representative of each entity, on its letterhead, stating it is interested in providing credit union access to the association’s membership, including:

  • Number of current employees

    • If any single group being included has between 3,000 and 4,999 members, there are additional requirements. See NCUA regulation part 701, Appendix B - Chartering and Field of Membership Manual, Section IV.B.3—Documentation Requirements, for details.

    • If any single group being included has 5,000 or more members, there are additional requirements. See NCUA regulation part 701, Appendix B - Chartering and Field of Membership Manual, Section IV.B.3—Documentation Requirements, for details.

    • Physical address and telephone number of the entity

    • Distance (in miles) from the entity’s physical address to the proposed federal credit union’s service facility or shared branching location

Documentation for B.2 - Multiple Common Bond Charter - Associational

• Identify each entity by name

• Provide a letter from an authorized representative of each entity, on its letterhead, stating it is interested in providing credit union access to the association’s membership, including:

  • Number of current members and the association’s employees

    • If any single group being included has between 3,000 and 4,999 members, there are additional requirements. See NCUA regulation part 701, Appendix B - Chartering and Field of Membership Manual, Section IV.B.3, for details.

    • If any single group being included has 5,000 or more members, there are additional requirements. See NCUA regulation part 701, Appendix B - Chartering and Field of Membership Manual, Section IV.B.3, for details.

  • Physical address and telephone number of the association

  • Distance (in miles) from the association’s physical address to the proposed federal credit union’s service facility or shared branching location

• NCUA may also request a copy of the association’s Bylaws and Articles of Incorporation, Constitution, Charter, or other equivalent documentation supporting that it is a recognized entity.

Documentation for B.3 - Multiple Common Bond Charter - Underserved Area

Only multiple common bond credit unions can add an underserved area. If an underserved area is being considered, NCUA is available to assist with determining whether an area meets the underserved area requirements. See Letter to Federal Credit Unions 21-federal credit union-03 Underserved Area Expansions for additional information.

Provide the following information about the underserved area:

• Name and/or a description of the underserved area (including the census tracts encompassing the requested area)

• Population of the underserved area

• CDFI Investment Area map obtained from www.cdfifund.gov/mapping-system demonstrating the requested area qualifies

• CDFI Investment Area Report obtained from www.cdfifund.gov/mapping-system showing how the requested area meets the investment area criteria

• Documentation supporting the proposed federal credit union meets the multiple common bond requirements for adding an underserved area:

  • Two or more occupational and/or associational groups are to be included in the proposed field of membership.

  • A service facility is in the underserved area or will be established and maintained in the area within two years—for more information, see NCUA regulation part 701, Appendix B - Chartering and Field of Membership Manual, Chapter 3, Section III.F.

  • The requested area is underserved by other depository institutions as defined by NCUA regulations part 701, Appendix B - Chartering and Field of Membership Manual, Chapter 3, III.B.3. Once a CDFI map and investment area report are obtained, organizers should contact CURE for assistance with computing a concentration of facilities ratio and satisfying this requirement.

A federal credit union that desires to include an underserved community in its field of membership must develop, and submit for approval, a business plan specifying how it will serve the community. In addition, the business plan must include a “significant unmet needs (SUN)” section as outlined in NCUA regulation part 701, Appendix B - Chartering and Field of Membership Manual Chapter 3,III.B.2.b.

Note: NCUA will evaluate the business plan requirements for an underserved area during Phase 2 of the charter application process.

Last updated on March 30, 2026