OLYMPIA, Wash. – State chartered credit unions may dedicate branches to specific select groups with signs and other promotions, as long as they make clear the operation is a unit of the credit union, according to a new legal opinion issued last week by the Department of Financial Institutions’ Division of CUs.
The opinion was provided to an unnamed credit union that wants to dedicate a new branch to one of its associational groups and market the branch to the association’s members.
The DFI said such promotional branches may be established and named as long as the credit union clearly and conspicuously discloses the parentage of the branch and that the credit union obtains the necessary license from the state’s Department of Licensing. In addition, the credit union must use its legal name for all documents, CDs, signature cards, loan agreements, account statements, checks, drafts and other important documents.
The credit union also must receive from all members opening new accounts an acknowledgment that they are aware of the different named branches or facilities.
