COMMON BOND; CUMULATIVE STRENGTH
As a not-for-profit and member-owned financial institution, credit unions provide unique benefits to its customers over commercial banks.
WHAT IS THE COMMON BOND?
The common bond is the foundation upon which credit unions are established. It is the mechanism that acknowledges the common interests a credit union seeks, its purpose and the persons a credit union targets to become its membership. The common bond therefore governs the criteria and basis of a credit union’s membership.
OCCUPATION
The common bond can establish a credit union’s membership based on the occupation of its members, or the organization its members are employed with.
LOCATION
The common bond can establish a credit union’s membership based on where its members work or live.
HOUSEHOLD
The common bond can establish a credit union’s membership base whether a person lives in the same household as an existing member.
RESPONSIBILITY OF
THE CREDIT UNION
Being guided by the common bond, a credit union is responsible for defining the rules and requirements that determine its membership.
The common bond is therefore a critical component of the bye-laws of a credit union.