OAR 441-710-0075: Underserved Areas

(1) A credit union may apply to the Director to add any underserved, well-defined local community, neighborhood or rural district to its field of membership if: (a) The area is underserved by other depository institutions; and (b) The credit union is prepared and able to establish and maintain an office or facility within the area to be added. (c) “Underserved by other depository institutions” means the aggregate number of depository institution branches per capita is below the state average as established by the Director on an annual basis as of December 31. (d) “Office or facility” means a place where shares are accepted for members’ accounts, loan applications are accepted and loans are disbursed. This definition includes: (A) A credit union owned branch; (B) A shared branch that belongs to a shared branching network; (C) A mobile branch; (D) An office operated on a regularly scheduled weekly basis; or (E) A credit union owned electronic facility that meets, at a minimum, the requirements of this subsection. An ATM, by itself, does not constitute an “office or facility.” (2) A credit union applying to add an underserved area to its field of membership must complete and submit to the Director an application to include at least the following information: (a) Copy of the Board of Director minutes approving the request for expansion to an underserved area; (b) Bylaws or amendment to bylaws showing the current and revised field of membership; (c) Identification of the area the credit union wishes to serve and the population of the proposed community. Quote the source for the population figures; (d) Map of proposed area; (e) Data and the source of that data that demonstrates the area is underserved by other depository institutions. (f) Most recent monthly financial statement, including income and expense statement; (g) Business plan showing how the credit union will provide service to the underserved area; and (h) Information on the proposed office or facility location as required by ORS 723.172(7)(b). (3) The credit union may establish that the well-defined local community, neighborhood or rural district is underserved by other depository institutions by showing that the area: (a) Encompasses or is located in an empowerment zone or enterprise community designated under section 1391 of the Internal Revenue Code of 1986; or (b) Meets at least one of the following objective criteria of economic distress developed by the Community Development Financial Institutions Fund: (A) The percentage of the population living in poverty is at least 20%. (B) The median family income shall be at or below 80% of: (i) The Metropolitan Area median family income or the National Metropolitan Area median family income, whichever is greater for an Investment Area within a Metropolitan area; or (ii) The statewide non-Metropolitan Area median family income or the national non-Metropolitan Area median family income, whichever is greater for an Investment Area outside a Metropolitan area; (C) The unemployment rate as reported in the most recently completed Unemployment Rates Report by the Oregon Department of Employment or the decennial census published by the US Bureau of the Census, whichever is more current, is at least 1.5 times the national average; (D) In areas located outside of a Metropolitan Area: (i) The county population loss in the period between the most recent decennial census and the previous decennial census is at least 10%; or (ii) The county net migration loss (outmigration minus inmigration) over the five year period preceding the most recent decennial census is at least 5%; or (E) The area to be added is an “investment area,” as defined in section 103(16) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702). (4) After the application is complete, the Director’s staff will review the application, determine whether the various criteria of the Director are met and determine whether the granting of the application will adversely impact the safety and soundness of the applicant. The Director will approve or deny the application accordingly and provide the applicant with the Director’s determination and the reasons for the determination. (5) An applicant whose application is denied will have the right to a contested case hearing and rights of appeal pursuant to the provisions of ORS Chapter 183.