Tuesday, March 5, 2013

Amended Rural District Definition

The National Credit Union Administration Board approved a final rule that amends its “rural district” definition for field-of-membership purposes.

The final rule permits an area to qualify as a rural district if its population does not exceed the greater of 250,000 people or 3 percent of the population of the state in which the majority of the district is located. The rule’s practical effect is that it allows rural districts of up to 250,000 people in all states -- up from the current 200,000 threshold.

In the 11 most populous states, however, the rural district’s population threshold could exceed 250,000 but not 3 percent of the state’s population. Those 11 states are California, Texas, Florida, New York, Illinois, Pennsylvania, Ohio, Michigan, Georgia, North Carolina and New Jersey.

However, the term rural district is a misnomer. NCUA's practice to date has been to approve geographic areas as rural districts that include non-rural counties. In some cases, these rural counties appear to act as a bridge to connect one local, well-defined urban area to another.

Read the final rule.
Posted by at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.