Section A – Single Common Bond Charter

A single common bond can be occupational (employees of an entity or a trade, industry, or profession) or associational (members and employees of an association).

Documentation Required for Section A

In the field of membership section, identify the field of membership the proposed federal credit union wants to serve (select one of the options below), and upload the required documentation for your selection in CAPRIS.

A.1 – Occupational Single Common Bond

An occupational single common bond charter can be established by persons who share an employment relationship with a single legal entity or several entities under common ownership. This charter could potentially serve employees of XYZ Company or, alternatively, employees of the XYZ Company and all the subsidiary companies of XYZ Company.

A.2 – Trade, Industry, or Profession

A trade, industry, or profession charter is a single occupational common bond based on employment in a trade, industry, or profession, which can include several legal entities that share a common purpose. Even though these entities are not under common ownership, they have a common bond by virtue of producing similar products, providing a similar service, or participating in the same type of business. For example, a trade, industry, or profession charter could potentially serve textile workers (a trade); employees of the healthcare industry, the airline industry, or in the federal government (an industry); or doctors, realtors, or teachers (a profession) located in a specific geographic area.

If you are requesting a trade, industry, or profession charter, include the following information in the field of membership section:

  • Name of proposed trade, industry, or profession

  • Number of employees in trade, industry, or profession with independent documentation to support the number

  • Geographic area to be served

  • Discussion of previously approved trade, industry, or profession by NCUA, if applicable

  • Description of how membership eligibility will be verified, such as a pay stub, employment badge, and information provided by a human resources department.

The organizing group may consider requesting a previously approved trade, industry, or profession for its field of membership. Previously approved trade, industry, or profession field of memberships can be located on NCUA’s website here. For trade, industry, or professions not previously approved, the field of membership must be approved by NCUA.

Contact NewFCU@ncua.gov for assistance in developing your trade, industry, or profession field of membership.

A.3 – Associational Single Common Bond

An associational single common bond charter may include in its field of membership, regardless of location, all members and employees of a recognized association. The association’s common bond consists of individuals and groups whose members participate in activities developing common loyalties, mutual benefits, and mutual interests. For example, this charter could potentially serve members and employees of one religious entity or, alternatively, members and employees from a group of religious entities within the same denomination. Other examples of associational based groups are labor unions, homeowner associations, and certain alumni groups.

A member-based group will not meet NCUA’s associational common bond requirements if NCUA determines the association has been formed primarily for the purpose of obtaining credit union membership. Associations based primarily on a client-customer relationship—such as health clubs—do not meet NCUA’s associational common bond requirements.

NCUA automatically approves the below groups as satisfying the associational common bond provisions. NCUA only approves regular members of an approved group. Honorary, affiliate, or non-regular members do not qualify. These groups are:

  1. Alumni associations;

  2. Religious organizations, including churches or groups of related churches;

  3. Electric cooperatives;

  4. Homeowner associations;

  5. Labor unions;

  6. Scouting groups;

  7. Parent teacher associations (PTAs) organized at the local level to serve a single school district;

  8. Chamber of commerce groups (members only and not employees of members);

  9. Athletic booster clubs whose members have voting rights;

  10. Fraternal organizations or civic groups with a mission of community service whose members have voting rights;

  11. Organizations having a mission based on preserving or furthering the culture of a particular national or ethnic origin; and

  12. Organizations promoting social interaction or educational initiatives among persons sharing a common occupational profession.

For associational groups that are not pre-approved, NCUA will consider the totality of circumstances in determining whether the group satisfies its associational common bond requirements.

Documents from the association should reflect whether it meets the following common bond requirements listed in Chapter 2, Section III.A.1 of the Chartering Manual, including:

  • Whether the association provides opportunities for members to participate in the furtherance of the goals of the association

  • Whether the association maintains a membership list

  • Whether the association sponsors other activities

  • Whether the association’s membership eligibility requirements are authoritative

  • Whether members pay dues

  • Whether the members have voting rights (to meet this requirement, members need not vote directly for an officer, but may vote for a delegate who in turn represents the members’ interests)

  • The frequency of meetings

  • Separateness—NCUA reviews whether there is corporate separateness between the group and the federal credit union. The group and the federal credit union must operate in a way that demonstrates the separate corporate existence of each entity. Specifically, this means the federal credit union’s and the group’s respective business transactions, accounts, and corporate records are not intermingled.

NCUA may also request a copy of the association’s Bylaws, Articles of Incorporation, constitution, charter, or any other equivalent documentation supporting that it is a recognized entity.

Last updated on March 30, 2026