Legal Definitions - common-bond doctrine

The common-bond doctrine is a legal principle that requires individuals seeking to join a credit union to share a specific, pre-existing connection or affiliation with other members, beyond simply wanting to be part of the credit union. This shared connection ensures that credit unions serve a defined community or group, rather than being open to the general public.

Here are some examples illustrating the common-bond doctrine:

• Geographic Community: Imagine a credit union named "Riverbend Community Credit Union" that states its membership is open to "anyone who lives, works, worships, or attends school within Riverbend County."

  This example demonstrates the common-bond doctrine because the shared connection is a geographical one. Prospective members must have a direct link to Riverbend County, such as residing there or being employed within its borders, rather than just having a general interest in banking with that specific credit union.

• Professional Association: Consider the "National Nurses Credit Union," which limits its membership to "licensed registered nurses who are members of the American Nurses Association."

  In this scenario, the common bond is a professional affiliation. To be eligible, individuals must not only be licensed nurses but also members of a specific professional organization. This shared professional identity and association membership serve as the required connection, preventing individuals outside this group from joining.

• Employer or Organizational Affiliation: A credit union might be established specifically for "employees, retirees, and their immediate family members of Tech Solutions Inc."

  This illustrates the common-bond doctrine through an employment-based connection. Only individuals who are current or former employees of Tech Solutions Inc., or their close relatives, meet the criteria. Their shared employer forms the necessary bond, ensuring the credit union serves a specific organizational community.