Proof of Concept

Proof of Concept - New Charter Organizing Groups

POC_All_Screen_Shots_5-15-19

Proof of Concept

OMB: 3133-0202

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 3133-0202 can be found here:

2022-06-30 - Extension without change of a currently approved collection

Document [pdf]

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5/15/2019

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Welcome
The Proof of Concept (POC) Form consists of the following four critical elements. A discussion about each of
the elements must be completed for your proposed credit union to be considered.
1. Purpose and Core Values
2. Field of Membership
3. Capital
4. Subscribers
Once completed, the POC Form is immediately submitted to NCUA.

Welcome Contact
General
Introduction
Definitions
Page
Information
Information

Purpose
and
Field of
Capital Subscribers
Core Membership
Values

Resource Documents
Below is a list of resources that will assist you with the POC application. Click the URL to open up the
resource.
1. The Federal Credit Union Charter Application Guide
2. Federal Credit Union Bylaws
3. The Chartering and Field of Membership Manual
4. NCUA Form 4012
5. NCUA Letter to FCU Board of Directors Duties

Proof of Concept
Are you excited to begin this process? Great! Click the following blue link to start developing the Proof of
Concept for your proposed credit union.
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New Organizing Group Proof of Concept Form

Proof of Concept Forms Requiring Action
This section displays any POC forms that need to be revised or that have not been submitted yet. Select the
button in the "Action" column to access it.

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Project Title.
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About NCUA

OMB No. 3133-0138, CDRL Fund; 3133-XXXX, POC

Paperwork Reduction Act Statement : According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to
respond to, an information collection unless it displays a valid OMB control number. Comments concerning the accuracy of this burden estimate and or any other
aspect of this information collection, including suggestions for reducing this burden should be sent to: [email protected]
CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS),
testing and Q/A platforms, change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development
process, we adhere to the IDEF1X modeling standard and Iterative SDLC. We perform in-house checking and validation of source code. For Web content and
accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Inspector General | FOIA | No Fear Act | Whistleblower Protection | USA.gov | Open Government | Plain Writing | Privacy | Contact Us | RSS Feeds | Site Map | Site Index

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Welcome
Page

Contact
Information

Introduction

General
Information

Definitions

Purpose
and
Core
Values

Field of
Membership

Capital

Subscriber

Contact Information
* indicates required field

Please select one primary AND one secondary contact to be responsible for this Proof of Concept Form. Multiple people are allowed to be
associated with the application. But the primary and secondary contacts with a checkbox selected will receive the notifications related to this
request.

Name: LAUREN BETHEA
Match: Check the box to associate this Telephone Number: 1234567890
individual with this application. E-mail Address: [email protected]
Contact Type: Secondary Contact
Name: IK NWANKPA
Match: Check the box to associate this Telephone Number: 1234567890
individual with this application. E-mail Address: [email protected]
Contact Type: Primary Contact

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CREATE NEW

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About NCUA

OMB No. 3133-0138, CDRL Fund; 3133-XXXX, POC

Paperwork Reduction Act Statement : According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, an information
collection unless it displays a valid OMB control number. Comments concerning the accuracy of this burden estimate and or any other aspect of this information collection, including suggestions
for reducing this burden should be sent to: [email protected]
CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS), testing and Q/A platforms,
change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development process, we adhere to the IDEF1X modeling standard and
Iterative SDLC. We perform in-house checking and validation of source code. For Web content and accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow
guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Inspector General | FOIA | No Fear Act | Whistleblower Protection | USA.gov | Open Government | Plain Writing | Privacy | Contact Us | RSS Feeds | Site Map | Site Index

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Welcome
Page

Contact
Information

Introduction

General
Information

Definitions

Purpose
and
Core
Values

Field of
Membership

Capital

Subscriber

Introduction
* indicates required field

NCUA’s Oﬃce of Credit Union Resource and Expansion (CURE) is responsible for chartering new credit unions and issuing a
credit union’s charter.
By submitting your information through our automated system you demonstrate to NCUA your group has thoroughly
evaluated the credit union’s operations. This format does not serve as your new charter application, but serves as your ability
to document the most critical elements to establishing a new credit union. These four areas are usually the greatest challenge
for organizing groups to accomplish.
This data collection process is called providing NCUA your “Proof of Concept”. Once NCUA staﬀ reviews your responses to your
“Proof of Concept” questions, you’ll be advised how to proceed to the next step. The next step is submitting a formal charter
application.
NCUA strongly recommends that each organizer group perform its due diligence in advance to obtain a clear understanding of
your duties and responsibilities for charter approval and credit union operations. The Federal Credit Union Application Guide is
the primary reference for chartering.
* Organizing Group Name

Select a name for your Organizing Group.
Test Organizing Group

* Address
* City
* State
* Zip

1775 Duke Street
Alexandria
Virginia
22314

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OMB No. 3133-0138, CDRL Fund; 3133-XXXX, POC

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for reducing this burden should be sent to: [email protected]
CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS), testing and Q/A platforms,
change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development process, we adhere to the IDEF1X modeling standard and
Iterative SDLC. We perform in-house checking and validation of source code. For Web content and accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow
guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Inspector General | FOIA | No Fear Act | Whistleblower Protection | USA.gov | Open Government | Plain Writing | Privacy | Contact Us | RSS Feeds | Site Map | Site Index

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Welcome
Page

Contact
Information

Introduction

General
Information

Definitions

Purpose
and
Core
Values

Field of
Membership

Capital

Subscriber

General Information
* indicates required field

* Proposed Credit Union Names What are two name choices for your proposed credit union? Select a name which is
indicative of the field of membership (FOM) you want to serve. Enter the name and
select Add to List.
ADD TO LIST

REMOVE FROM LIST

Minority Group Type Would one or a combination of the following groups represent a popular majority
of the potential members you plan to serve? Select each group you plan to serve. If
none, select N/A.
African American
Asian American
Hispanic American
Native American
N/A
Financial Service and Product Select a category of financial services and products that your proposed credit union
Categories will oﬀer members. Choose from one of the categories below.

Basic service – Limited products and services are oﬀered; for example regular
shares and signature loans only.
Intermediate service – The services are more sophisticated than the basic
services but are not considered complex. For example, auto loans is one
example of an intermediate loan product.
Complex service – A full-complement of products and services to include;
mortgages, home equity loans, member business loans, electronic services,
financial education, etc.

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Services

Consumers

Credit Union Analysis

Regulation & Supervision

About NCUA

OMB No. 3133-0138, CDRL Fund; 3133-XXXX, POC

Paperwork Reduction Act Statement : According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, an information
collection unless it displays a valid OMB control number. Comments concerning the accuracy of this burden estimate and or any other aspect of this information collection, including suggestions
for reducing this burden should be sent to: [email protected]
CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS), testing and Q/A platforms,
change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development process, we adhere to the IDEF1X modeling standard and
Iterative SDLC. We perform in-house checking and validation of source code. For Web content and accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow
guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Inspector General | FOIA | No Fear Act | Whistleblower Protection | USA.gov | Open Government | Plain Writing | Privacy | Contact Us | RSS Feeds | Site Map | Site Index

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Welcome
Page

Contact
Information

Introduction

General
Information

Definitions

Purpose
and
Core
Values

Field of
Membership

Capital

Subscriber

Definitions
* indicates required field

For the purposes of chartering and starting a new federal credit union, the following terms shall have the meanings assigned to
them in this section.
Accounting System – The credit union’s record keeping system; most credit union accounting systems are computerized.
Automated Clearing House (ACH) – A nationwide network that enables participating financial institutions to distribute
and settle electronic payments.
Adequately Capitalized – A credit union is considered adequately capitalized when it has a net worth ratio of at least 6
percent.
Assets – Assets are items the credit union owns such as loans, cash, investments, and fixed assets.
Associational Common Bond – A common bond comprised of members and employees of a recognized association. It
includes individuals (natural persons) and/or groups (non-natural persons) whose members participate in activities
developing common loyalties, mutual benefits, and mutual interests.
Audit – An oﬃcial examination and verification of accounts and records, especially financial accounts.
Audited Financial Statements – An organization’s financial statements which have been prepared and certified by a
Certified Public Accountant.
Balance Sheet – The Balance Sheet (sometimes referred to as the Statement of Financial Condition) shows the financial
condition of the credit union as of the date it represents. The credit unions assets, liabilities and equity (capital) accounts
are included on the balance sheet; income and expense accounts are not included.
Board of Directors – The governing group of volunteers charged with the fiduciary responsibility of establishing policies
and providing strategic direction of a credit union. As outlined in the Federal Credit Union Act, this group must consist of
an odd number of individuals not less than 5 and not more than 15.
Break-Even – The point at which the credit union is neither making a profit nor operating at a loss.
Business Model – The business model describes how the credit union will define and promote itself, produce and
distribute its products and services, and build or attract its market.
Business Plan – The Plan prepared by a credit union charter applicant addressing the economic advisability of a proposed
charter.
Capital – A credit union’s capital is defined as the total of its regular reserves, allowance for loan and lease losses, special
reserves, undivided earnings, accumulated unrealized gains or losses on available-for-sale securities, and that portion of
year-to-date net income that has not yet been closed to the appropriate capital account. Capital accounts provide (1) a
cushion for anticipated and unidentified losses, (2) a base for future growth, and (3) a means by which the credit union
can meet competitive pressures as they arise. Capital also provides the credit union a cost-free source of funds.
Charter – The document which authorizes a group to operate as credit union and defines the fundamental limits of its
operating authority, generally including the persons the credit union is permitted to accept for membership. Charters are
issued by the National Credit Union Administration for federal credit unions; state charters are issued by the designated
state chartering authority.
Commitment Letter – A letter detailing the type of support, subsidies or donations an organization will provide to the
proposed credit union.

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Common Bond – The characteristic or combination of characteristics distinguishing a particular group of persons from
the general public. Two common bonds can serve as a basis for a group forming a federal credit union; occupational –
employment by the same company, related companies or in a trade industry, or profession (TIP); and associational –
membership in the same association.
Community Credit Union – Credit unions whose field of membership consists of persons who live, work, worship or
attend school in the same well-defined local community, neighborhood, or rural district.
Contingency Plan – A specific set of instructions in place to be followed if certain events interrupt normal business
operations.
Corporate Credit Union – A credit union for natural person credit unions, providing correspondent services.
Credit Committee – Volunteers selected by the board of directors that assess and make decisions on member loan
applications.
Credit Union – A member owned not-for-profit cooperative financial institution formed to provide financial services to a
specified group of individuals.
Credit Union League – Leagues are trade associations located in most states and provide a wide variety of services such
as education, training, and small credit union counseling. Some Leagues may also provide products and other services
such as audits, legal consultation, guidance on consumer regulation, etc.
Debit Card – A debit card is a plastic payment card that provides electronic access to a member’s credit union share
account.
Deposit – Deposits are funds placed in a member’s credit union account that can be withdrawn by the account owner.
Disaster Recovery Plan – A plan developed by the credit union’s board of directors for continued business operation in
the event of a disaster.
Donation – Money, subsidies, assistance and goods given to the credit union from individuals or organizations which will
not be repaid.
Economic Advisability – An overall evaluation of the credit union’s or charter applicant’s ability to operate successfully.
Federal Credit Union Act – The enabling legislation, passed in 1934, for federal credit unions, federal insurance, the
National Credit Union Administration, and the Central Liquidity Facility.
Federal Share Insurance – Insurance coverage provided by the National Credit Union Share Insurance Fund and
administered by NCUA. Coverage is provided for qualified accounts in all federal credit unions and participating state
credit unions.
Field of Membership – The persons (including organizations and other legal entities) a credit union is permitted to accept
for membership.
Financial Statements – A presentation of financial data, including accompanying notes, derived from accounting records
of the credit union, and intended to disclose a credit union’s economic resources or obligations at a point in time, or the
changes therein for a period of time. The balance sheet (or statement of financial condition) and income statement are
the most common credit union financial statements.
Fixed Assets – Tangible assets such as land, building, furniture, etc.; also includes lease payments as defined in Part
701.36 of the NCUA Rules and Regulations.
Immediate Family Member – A spouse, child/stepchild, sibling/step-sibling, parent/stepparent, grandparent or
grandchild.
Internal Controls – The process established by the credit union’s board of directors, oﬃcers and employees, designed to
provide reasonable assurance of reliable financial reporting and safeguarding of assets against unauthorized acquisition,
use, or disposition.
Income Statement – The income statement reflects all income, expenses, gains, and losses of the credit union for the
period for which prepared. Asset, liability and equity (capital) accounts are not included on the income statement.
Letter of Understanding and Agreement – An agreement between NCUA and credit union oﬃcials establishing
reasonable operational goals. These are normally entered into with new charter applicants for a limited time.
Liabilities – Amounts which the credit union owes to others, such as accounts payable and borrowed money.
Loan – Money that is provided to a member that must be repaid by that member.
Loan Portfolio – A loan portfolio consists of all of the loans the credit union owns and manages.
Low-Income Designation – A designation awarded to credit unions who predominately serve low income members.
Manager – The manager is the person responsible for the day-to-day operations of the credit union.
Manual Credit Union – A non-automated credit union; a credit union without an electronic data processing (EDP) system.
Mentor – An individual who provides guidance and assistance to newly chartered, small or low-income credit unions. All
new federal credit unions are encouraged to establish a mentor relationship with a trained, experienced credit union
individual or an existing credit union.

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Minority Depository Institution – A federally insured credit union in which a majority of its current members, a majority
of its board of directors (BOD), and a majority of the community it services, as designated in its charter, falls within any of
the eligible minority groups described as African American, Asian American, Hispanic American and Native American.
Mission Statement – The articulation of why an organization exists, the “business” it engages in to achieve its purpose,
and the values that guide the accomplishment of the mission.
Mobile Payment – A form of transaction that uses mobile devices to make payments from a user’s credit union account
or credit card account.
Multiple Common Bond – A field of membership consisting of more than one group, each of which has a common bond
of occupation or association.
National Credit Union Administration – NCUA is the independent federal agency created by the U.S. Congress to
regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States,
NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of account holders in
all federal credit unions and the overwhelming majority of state-chartered credit unions.
National Credit Union Share Insurance Fund – The NCUSIF is the federal fund created by Congress to insure member
deposits in federally insured credit unions. The insurance limit was increased from $100,000 to $250,000 per individual
depositor in 2008. Administered by the NCUA, the NCUSIF is backed by the “full faith and credit” of the U. S. Government.
Net Interest Margin – Credit unions operate by lending and investing cash to generate income, but they also pay interest
to their members. A credit union’s ability to make profit depends on how much its interest income exceeds its interest
expenses – a value known as net interest. Net interest margin is a percentage calculated from net interest that indicates a
credit union’s return on interest-earning assets over a particular period.
Net Worth – Net worth constitutes the reserve of funds available to manage or absorb the risks to the credit union.
Occupational Common Bond – Employment by the same entity or related entities of Trade, Industry, or Profession.
Oﬃcials – Credit union oﬃcials include members of the board of directors, credit committee or supervisory committee;
the President, Chief Executive Oﬃcer, Chief Financial Oﬃcer, Comptroller, General Manager, Treasurer/Manager,
Executive Vice President; and attorneys and accountants of the credit union.
Once a Member, Always a Member – A provision of the Federal Credit Union Act which permits an individual to remain a
member of the credit union until he or she chooses to withdraw or is expelled from the membership of the credit union.
Under this provision, leaving a group that is named in the credit union’s charter does not terminate an individual’s
membership in the credit union.
Organizations of Such Persons – An organization or organizations composed exclusively of persons who are within the
field of membership of the credit union.
Organizers – The group of individuals organizing the formation of a credit union.
Potential Members – Individuals within the field of membership who have not joined the credit union.
Profitability – The credit union’s ability to generate earnings as compared to expenses and other incurred costs during a
specific period of time.
Reserves – Earnings allocated for use for a specific purpose, such as the Regular Reserve, Undivided Earnings and the
Allowance for Loan Losses accounts.
Return on Average Assets – The ROAA is an indicator of how profitable a credit union is relative to its average assets.
ROAA gives an idea as to how eﬃcient credit union management is at using its assets to generate earnings. Calculated by
dividing the credit union’s annual earnings by its average assets, ROAA is displayed as a percentage.
Secondary Capital – Secondary capital is an uninsured account best described as a “subordinated” loan to the credit
union. It can temporarily count as net worth. In the event of liquidation, all other debt owed by the credit union must be
repaid before the secondary capital loan is repaid. Only low-income designated credit unions may accept secondary
capital in accordance with the requirements in NCUA’s regulations 701.34 (b).
Senior Executive Oﬃcer – Senior Executive Oﬃcers generally include credit union’s chief executive oﬃcer (president,
treasurer, manager) assistant executive oﬃcer (vice president, assistant treasurer/manager), and/or chief financial oﬃcer
(controller).
Service Area – The area that can reasonably be served by the service facilities accessible to the groups within the field of
membership.
Share Account – Refers to a regular share (savings) account and any other account that is not a share certificate account.
Share Draft Account – An account from which the holder is authorized to withdraw shares by means of a negotiable or
transferable instrument. Share drafts are equivalent to a checking account at a bank.
Single Associational Common Bond Credit Union – A credit union whose field of membership includes members and
employees of a recognized association.
Single Common Bond Credit Union – A credit union whose field of membership consists of one group which has a
common bond of occupation or association.

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Single Occupational Common Bond Credit Union – A credit union whose field of membership consists of employees of
the same entity or related entity or part of a Trade, Industry, or Profession.
Sponsor – An entity (i.e., company or organization) within the credit union’s field of membership that provides monetary
support and/or subsidies such as free oﬃce space, use of company copier or staﬀ in legal department, during the
chartering process and continuing after the credit union is chartered.
Start-Up Capital – Subsidies (monetary support in the form of contributions and any donated equipment) to cover all of
the start-up costs, as well as the operating costs that cannot be covered from the income generated from normal
operations. All verbal or written start-up capital commitments pledged must be identified and include the specific
commitment and its terms. All start-up capital sources must prove they have the financial capability to provide the
pledged support and provide credit union organizers with a copy of their audited financial statements as evidence.
Strategic Plan – A strategic plan is the framework an organization uses to articulate priorities and goals, and manage
results. It includes strategic objectives and a description of how resources will be deployed to accomplish them.
Statement of Financial Condition – The Statement of Financial Condition (sometimes referred to as the Balance Sheet)
shows the financial condition of the credit union as of the date it represents. It includes the credit unions asset, liability
and equity (capital) accounts; income and expense accounts are not included on the Statement of Financial Condition.
Subscribers – As defined by the Federal Credit Union Act, subscribers are any seven or more natural persons who desire
to form a federal credit union. Subscribers are responsible for preparing the charter application.
Succession Plan – A plan for identifying and developing internal people with the potential to fill key positions in the credit
union as they become available.
Supervisory Committee – Appointed by the board of directors the main responsibilities of the supervisory committee are
to oversee the operations of the credit union and ensure an annual audit and bi-annual verification of accounts is
performed.
Surety Bond – Surety bonds provide for the recovery of losses by the dishonesty of an employee or oﬃcial or by the
failure of employees to faithfully perform their duties. The specific losses that will be restored by the bond are listed in the
written contract with the surety company.
Trade, Industry or Profession (TIP) – A single occupational common bond credit union based on employment in a trade,
industry, or profession including employment at any number of corporations or other legal entities that, while not under
common ownership – have a common bond virtue of producing similar products, providing similar services, or
participating in the same type of business.
Undivided Earnings – The portion of the accumulated earnings of the credit union which are available for the payment of
dividends.

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OMB No. 3133-0138; CDRL Fund; 3133-XXXX, POC

Paperwork Reduction Act Statement : According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, an information
collection unless it displays a valid OMB control number. Comments concerning the accuracy of this burden estimate and or any other aspect of this information collection, including suggestions
for reducing this burden should be sent to: [email protected]
CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS), testing and Q/A platforms,
change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development process, we adhere to the IDEF1X modeling standard and
Iterative SDLC. We perform in-house checking and validation of source code. For Web content and accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow
guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
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LOGOUT

Welcome
Page

Contact
Information

Introduction

General
Information

Definitions

Purpose
and
Core
Values

Field of
Membership

Capital

Subscriber

Purpose and Core Values
* indicates required field

A credit union is a member-owned and controlled, not-for-profit, cooperative financial institution formed to permit groups of
persons to save, borrow, obtain financial services and participate in its management. Member ownership and control are what
make credit unions unique.
Think about the following as you describe the reason your organizing group wishes to form a credit union.
What is the credit union's purpose?
What do you want to accomplish by forming a credit union?
Who will benefit from the credit union?
How will the members benefit from the credit union?
What is your vision for the credit union over the next 5, 10, 15 years?
How will you increase member participation and interest in the credit union?
How will the credit union survive and thrive into the future?
* Purpose and Core Values What is your purpose in opening a credit union?

(2000 character maximum)
*

Has your group considered joining an existing credit union?

Click the "Save and Proceed" link below to continue.

SAVE AND PROCEED

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Consumers

Credit Union Analysis

Regulation & Supervision

About NCUA

OMB No. 3133-0138, CDRL Fund; 3133-XXXX, POC

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CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS), testing and Q/A platforms,
change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development process, we adhere to the IDEF1X modeling standard and
Iterative SDLC. We perform in-house checking and validation of source code. For Web content and accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow
guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Inspector General | FOIA | No Fear Act | Whistleblower Protection | USA.gov | Open Government | Plain Writing | Privacy | Contact Us | RSS Feeds | Site Map | Site Index

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NCUA

LOGOUT

Welcome
Page

Contact
Information

Introduction

General
Information

Definitions

Purpose
and
Core
Values

Field of
Membership

Capital

Subscriber

Field of Membership
* indicates required field

Potential credit union members must qualify for membership by belonging to a specific group with a common bond. That
common bond is known as the Field of Membership (FOM). The three FOM types are Single Common Bond, Multiple Common
Bond, and Community. A brief definition of each FOM type is provided below.
A Single Common Bond can be occupational based (i.e., employees of an entity or a trade, industry, or profession (TIP), or
associational based (i.e., members and employees of an association).
A Multiple Common Bond serves multiple entities. Each entity has its own common bond but each does not share the
same single common bond with the other entities.
A Community FOM must be based on a single, geographically well-defined local community, neighborhood, or rural
district where individuals have common interests and/or interact. More than one credit union may serve the same
community. A community is defined as either a single political jurisdiction or a multiple contiguous political jurisdiction.
Each FOM type includes sub-categories with distinctive regulatory requirements. These requirements must be satisfied by your
organizing group in order to obtain a federal charter. For a complete description of each FOM type and the respective subcategories, please refer to the Definitions section.
* Field of Membership Types What field of membership (FOM) type do you want to serve? Select one.

* Question 1 How many potential members do you expect will participate in the credit union?
Enter a number.

* Question 2 How did you determine the number of individuals for your potential members?
Describe the method used to determine the number of potential members you
expect to join the credit union.

(2000 character maximum)
Question 3 Why do you believe a credit union is needed to serve the proposed FOM? Provide a
narrative that describes your proposed FOM.

(2000 character maximum)
* Low-Income Designation

The NCUA's low-income designation (LID) is a classification for credit unions that
meet certain membership criteria. To qualify, a majority (greater than 50%) of your

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membership must the criteria set forth by the NCUA. A full description of the lowincome designation is located in the Definitions section.
Is your organizing group interested in the NCUA’s low-income designation? Select
Yes or No.

SAVE AND PROCEED

Need Support?

Services

Consumers

Credit Union Analysis

Regulation & Supervision

About NCUA

OMB No. 3133-0138, CDRL Fund; 3133-XXXX, POC

Paperwork Reduction Act Statement : According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, an information
collection unless it displays a valid OMB control number. Comments concerning the accuracy of this burden estimate and or any other aspect of this information collection, including suggestions
for reducing this burden should be sent to: [email protected]
CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS), testing and Q/A platforms,
change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development process, we adhere to the IDEF1X modeling standard and
Iterative SDLC. We perform in-house checking and validation of source code. For Web content and accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow
guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Inspector General | FOIA | No Fear Act | Whistleblower Protection | USA.gov | Open Government | Plain Writing | Privacy | Contact Us | RSS Feeds | Site Map | Site Index

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LOGOUT

Welcome
Page

Contact
Information

Introduction

General
Information

Definitions

Purpose
and
Core
Values

Field of
Membership

Capital

Subscriber

Capital
* indicates required field

The greatest challenge for organizing groups is identifying start up capital. A newly established credit union is similar to a newly
formed business, as it usually takes several years to report a profit. From past experience, newly chartered credit unions
require approximately $1 million in start up capital or more depending on the complexity of the financial services oﬀered.
Donated equity or start up capital is needed to cover operating losses in its infancy stages. Think of start up capital or donated
equity as a gift to the credit union. The funds are not a deposit, investment or loan, meaning the funds will never be repaid to
the organization or individuals pledging the money. If an organizing group is unable to identify the required start up capital, the
charter cannot be approved.
Share the adequacy of your proposed capital structure in relation to internal and external risks, planned operational and
financial assumptions, including technology, branch location, and projected organizational and operating expense. Discuss any
noncash contributions to capital, and provide supporting documents. Present a thorough justification to support the proposed
capital.
In this section, please explain how much capital you have identified, the source of capital and any other information you believe
is helpful to NCUA for making a decision about your “Proof of Concept”. Discuss your capital structure relative to risks, financial
assumptions and operating expenses and if your sponsors are willing to provide continued long term (more than 5 years)
support.
* Funding Sources

What are your funding sources? Tell us about the sponsor for the proposed credit
union (company, individual, or organization).

(4000 character maximum)
* Amount of Capital Pledged How much will the sponsor pledge for the start-up of the credit union?

* Years of Sponsor Support How many years do you anticipate your sponsor’s support?

(4000 character maximum)
* Operating Independently Will the credit union operate profitably after the financial support is exhausted?

(4000 character maximum)
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* Formal Sponsor Support Do you have formal commitment letters from the sponsor or other organizations
providing start-up capital?

SAVE AND PROCEED

Need Support?

Services

Consumers

Credit Union Analysis

Regulation & Supervision

About NCUA

OMB No. 3133-0138, CDRL Fund; 3133-XXXX, POC

Paperwork Reduction Act Statement : According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, an information
collection unless it displays a valid OMB control number. Comments concerning the accuracy of this burden estimate and or any other aspect of this information collection, including suggestions
for reducing this burden should be sent to: [email protected]
CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS), testing and Q/A platforms,
change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development process, we adhere to the IDEF1X modeling standard and
Iterative SDLC. We perform in-house checking and validation of source code. For Web content and accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow
guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Inspector General | FOIA | No Fear Act | Whistleblower Protection | USA.gov | Open Government | Plain Writing | Privacy | Contact Us | RSS Feeds | Site Map | Site Index

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NCUA

LOGOUT

Welcome
Page

Contact
Information

Introduction

General
Information

Definitions

Purpose
and
Core
Values

Field of
Membership

Capital

Subscrib

Subscribers
* indicates required field

You are required to have at least seven subscribers. The individuals who are involved in the chartering process must submit to
a credit check and criminal background investigation. Each subscriber is required to complete NCUA form 4012 for submission
of the background and credit investigation. In addition, the proposed subscribers, board members, and employees should have
the education and experience needed to successfully operate the credit union. If the charter application is approved, many of
the original subscribers will serve as board or committee members. It is recommended that you seek subscribers with
backgrounds in accounting, finance, banking, etc. Generally, individuals with the above backgrounds will understand the
presentation of the credit union’s financial statements.
Please enter the names, phone numbers, and email addresses of the subscribers
for your organizing group (at least seven are required).
* Subscriber 1 Name
* Subscriber 1 Telephone
* Subscriber 1 Email Address
* Subscriber 2 Name
* Subscriber 2 Telephone
Subscriber 2 Email Address
* Subscriber 3 Name
* Subscriber 3 Telephone
* Subscriber 3 Email Address
* Subscriber 4 Name
* Subscriber 4 Telephone
* Subscriber 4 Email Address
* Subscriber 5 Name
* Subscriber 5 Telephone
* Subscriber 5 Email Address
* Subscriber 6 Name
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* Subscriber 6 Telephone
* Subscriber 6 Email Address
* Subscriber 7 Name
* Subscriber 7 Telephone
* Subscriber 7 Email Address

SAVE AND PROCEED

Need Support?

Services

Consumers

Credit Union Analysis

Regulation & Supervision

About NCUA

OMB No. 3133-0138, CDRL Fund; 3133-XXXX, POC

Paperwork Reduction Act Statement : According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, an information
collection unless it displays a valid OMB control number. Comments concerning the accuracy of this burden estimate and or any other aspect of this information collection, including suggestions
for reducing this burden should be sent to: [email protected]
CyberGrants employs an iterative SDLC methodology, including requirements gathering, prototyping, design, internal security reviews, revision control system (VSS), testing and Q/A platforms,
change control rules, etc. CyberGrants senior developers review proprietary application code. For our application software development process, we adhere to the IDEF1X modeling standard and
Iterative SDLC. We perform in-house checking and validation of source code. For Web content and accessibility we adhere to W3C and ADA compliance. In our security approaches, we follow
guidelines dictated by the Open Web Application Security Project (OWASP).
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428
Inspector General | FOIA | No Fear Act | Whistleblower Protection | USA.gov | Open Government | Plain Writing | Privacy | Contact Us | RSS Feeds | Site Map | Site Index

https://sandbox.cybergrants.com/pls/cybergrants-sb/ao_req.formcheck

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