PHASE 1: Proof of Concept
Please complete the Proof of Concept web form and submit it with applicable supporting documents in one email to NewFCU@ncua.gov. If you wish, you can email documents securely through https://web1.zixmail.net/s/login?b=ncua. Additional instructions for using the NCUA Secure Email Message Center are available once you click this link.
The Proof of Concept web form is available at https://ncua.gov/support-services/credit-union-resources-expansion/starting-new-federal-credit-union/credit-union-proof-concept-form. See Federal Credit Union Charter Application Guide Phase 1 for more details on each Proof of Concept topic identified below:
- Research How to Charter a Federal Credit Union
- Select a Credit Union Name
- Define the Credit Union’s Purpose
- Define the Field of Membership
- Describe Capital Funding Plans
- Identify Subscribers
- Research Low-Income Designation (LID) Requirements
- Research Minority Depository Institution (MDI) Designation
- Research Community Development Financial Institution (CDFI) Certification
- Complete and submit the Proof of Concept
PHASE 2: Charter Application
Please complete all documentation in this section and submit all materials together in one email to your assigned NCUA Coordinator. See Federal Credit Union Charter Application Guide Phase 2 for more details on each item below:
Activity 1 - Pre-Planning
- Survey and Analysis
- Surveying the Potential Membership
- Evidence of Member Support
- Designing the Membership Survey
- Conducting the Membership Survey
- Analyzing the Survey Results
- Summarizing the Results
- Market Conditions Analysis
- Sources of Donated Capital
- Evidence of Sponsor Commitment, If Critical to Success
- Mentor Relationships and Other Sources
Activity 2 – Business Plan Development
- NCUA 4001-Federal Credit Union Investigation Report
- Mission Statement
- Products and Services
- Goals for shares, loans, and number of members
- Organizational/Management Plan:
- Officials (board, supervisory committee, and credit committee)
- Senior management and credit union staff
- Qualifications and Planned Training
- Continuity Plan for Directors, Committee Members, Senior Management
- Identify a Physical Location
- Record Keeping and Data Processing Systems
- Surety Bond Coverage
- Source of Funds and Other Support
- Plans for Operating Independently
- Marketing Plan
- Pro Forma Financial Statements
Activity 3 – Proposed Bylaws
- Federal Credit Union Bylaws
Activity 4 – Policies
- Required Policies:
- Fair Lending Policy and Loan Policy
- Collection Policy
- Loan Charge-Off Policy
- Allowance for Loan and Lease Losses Policy
- Investment Policy
- Cash Policy
- Bank Secrecy Act/Customer Identification Program
- Office of Foreign Assets Control Policy
- Truth-in-Savings Policy
- Director Fiduciary Duties
- Reimbursement Policy
- Asset Liability Management Policy
- Liquidity Policy
- Vendor Management/Third Party Relationships
- E-Commerce Policy
- Security Program
- Disaster Recovery and Business Continuity/Resumption Policy
- Privacy Policy
- Identity Theft Red Flags, Credit Report Discrepancies, and Records Disposal
- Other Policies (as applicable)
- Policies for Major Operational Areas
- Policies for Advanced Services
PHASE 3: Final NCUA Approval
Please complete all documentation in this section and submit all materials together in one email to your assigned NCUA Coordinator. See Federal Credit Union Charter Application Guide Phase 3 for more details on each item below:
- Required Forms
- NCUA 4008 - Organization Certificate
- NCUA 4012 - Report of Official and Agreement to Serve
- NCUA 9500 - Application and Agreements for Insurance of Accts
- NCUA 9501 - Certification of Resolutions
- Letter of Understanding and Agreement
- NCUA Issues Charter