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Simple English definitions for legal terms
common-bond doctrine
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A quick definition of common-bond doctrine:
The common-bond doctrine is a rule that says people who want to join a credit union must have something in common, like working for the same company or living in the same area. This means that they can't just join because they want to be part of a credit union. They need to have a shared connection with other members.
A more thorough explanation:
The common-bond doctrine is a rule that requires individuals who want to become members of a credit union to share a common connection, such as working for the same company or living in the same community. This connection must be something other than just a desire to join the credit union.
For example, if a credit union is formed for employees of a particular company, only those employees would be eligible to join. Similarly, if a credit union is formed for residents of a particular neighborhood, only those residents would be eligible to join.
The common-bond doctrine helps credit unions maintain a sense of community and shared purpose among their members. By requiring members to have a common connection, credit unions can better serve the needs of their members and provide more personalized financial services.