The NCUA will now automatically qualify 12 groups as valid associations as they relate to field of membership, according to a supervisory letter sent to federal credit unions July 6.

In April, the NCUA Board passed an amendment to its FOM rules and regulations.

The following 12 types of associations will automatically be approved according to the associational common bond provision:

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.

The board said in the letter it expects the majority of the associations requested by federal credit unions to fall within the 12 categories.

Another change to the rule clarified NCUA's requirements for an associational common bond so  federal credit unions can understand which groups and associations are eligible for FOM inclusion.

“In addition, the amended rule clarifies the NCUA's requirements for an associational common bond to help FCUs understand which groups and associations are eligible for FOM inclusion,” the letter continued.

The amended rule defined which groups do not qualify for membership and reminded federal credit unions that in order to qualify for FOM, the association cannot have been formed for the primary purpose of expanding credit union membership.