WASHINGTON-Here are some basic facts regarding The Federal Credit Union Act of 1934.
• Purpose of credit unions was described as providing credit for "provident and productive purposes."
• Credit unions were housed under the Farm Credit Administration (FCA).* Any seven persons could form a society and take out an organizational certificate.
• Once the certificate was signed by the FCA governor, it became CU's charter* In purpose and organization, the Act was similar to state statutes.
• Fittingly, the first credit union to receive a federal charter was Morris Sheppard FCU of Texarkana, Texas on Oct. 1, 1934, hometown of Sen. Morris Sheppard who had championed the credit union legislation in Congress.
• Texarkana is located in two states, Arkansas and Texas, and would have been unable to secure a credit union charter without passage of the Act.
Source: The Credit Union Movement, by J. Carroll Moody and Gilbert C. Fife
