TIP Charters Expand At The State Level, Too
The so-called TIP charter pioneered by NCUA two years ago and allowing a credit union to maintain a semblance of common bond by continuing to serve an entire trade, industry or profession, has been moving into the states, one by one.
First, regulators in Minnesota approved a TIP late last year for Star Tribune Employees Credit Union, one of the few single-sponsor credit unions, to serve all people working in the information media profession throughout the state of Minnesota.
Then the state of Massachusetts approved a TIP charter for Graphics Arts Credit Union to serve all employees in the printing industry in New England.
More recently, Connecticut entered the arena by approving its first TIP charter for Hartford Healthcare Credit Union, covering the entire healthcare industry in three local counties.
The new charter will allow the $25-million credit union to serve all healthcare employees, volunteers, independent contractors or self-employed people, as well as retirees and their family and household members or affiliated organizations in the Hartford, Middlesex and New Haven counties.
Pennsylvania has also begun entertaining requests for TIP charters.
The Department of Banking said it has received its first application for a TIP charter, from Lee Hospital Credit Union, in Johnstown, to serve the healthcare industry in Blair, Columbia and Somerset counties.
Several other states are reported to be either studying applications for TIP charters under parity provisions with NCUA rules, or at adopting new rules enabling TIP charters.