[Federal Register Volume 86, Number 224 (Wednesday, November 24, 2021)]
[Rules and Regulations]
[Pages 66927-66931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25609]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 701

RIN 3133-AF23


Chartering and Field of Membership--Shared Facility Requirements

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: The NCUA Board (``Board'') is adopting a final rule amending 
its chartering and field of membership (``FOM'') rules to modernize 
requirements related to service facilities for multiple common bond 
(``MCB'') federal credit unions (``FCUs''). The final rule provides 
that shared locations are service facilities for purposes of MCB FCU 
additions of groups, regardless of whether the FCU has an ownership 
interest in the shared branching network providing the locations. 
Shared locations, including electronic facilities offering required 
services such as video teller machines, are also service facilities for 
purposes of MCB FCU additions of underserved areas, regardless of 
whether the FCU has an ownership interest. The final rule does not 
include other changes proposed to the definition of service facility; 
accordingly, ATMs continue to be excluded from the definition of 
service facility for additions of underserved areas.

DATES: This rule is effective December 27, 2021.

FOR FURTHER INFORMATION CONTACT: Elizabeth Wirick, Senior Staff 
Attorney, Office of General Counsel, at 1775 Duke Street, Alexandria, 
VA 22314 or telephone: (703) 518-6545.

SUPPLEMENTARY INFORMATION:
I. Proposed Rule
II. Legal Authority
III. Public Comments on the Proposed Rule and Final Rule
IV. Regulatory Procedures

I. Proposed Rule

    The NCUA's Chartering and Field of Membership Manual, incorporated 
as Appendix B to part 701 of its regulations (``Chartering Manual'') 
\1\ implements the FOM requirements and limitations established by the 
Federal Credit Union Act (``the Act'') \2\ for FCUs. At its December 
17, 2020, meeting, the Board approved a notice of proposed rulemaking 
to revise the Chartering Manual's definition of ``service facility.'' 
\3\ The definition of ``service facility'' pertains to the addition of 
groups and underserved areas to the FOM of a MCB FCU, one of three 
types of FCU charters permitted under the Act. Among the Act's 
requirements for adding a group to a MCB FCU is that the credit union 
must be ``within reasonable proximity to the location of the group 
whenever practicable and consistent with reasonable standards for the 
safe and sound operation of the credit union.'' \4\ Similarly, one of 
the Act's requirements for adding an underserved area to a MCB FCU is 
that ``the credit union establishes and maintains an office or 
facility'' in the underserved area.\5\ The Chartering Manual implements 
these geographical requirements by limiting MCB FCUs to adding only 
groups that are within the service area of one of the FCU's service 
facilities and requiring MCB FCUs adding an underserved area to 
establish within two years, and maintain, an office or service facility 
in the underserved area.\6\ As discussed in greater detail in the 
proposed rule, the Chartering Manual defines ``service facility'' 
differently for group additions and underserved area additions, 
requiring a higher level of services for service facilities in 
underserved areas.\7\ Under the existing rule, ATMs do not qualify as 
service facilities for purposes of underserved area additions. The 
existing rule also requires that FCUs adding a group or an underserved 
area around a shared facility either have an ownership interest in the 
shared branching network providing the facility or that the shared 
facility is local to the FCU.\8\
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    \1\ 12 CFR part 701, Appendix B.
    \2\ 12 U.S.C. 1750 et. seq.
    \3\ 86 FR 1826 (Jan. 11, 2021), https://www.govinfo.gov/content/pkg/FR-2021-01-11/pdf/2020-28277.pdf.
    \4\ 12 U.S.C. (f)(1)(B).
    \5\ Id. 1759(c)(2)(B).
    \6\ Chartering Manual, Sec. Sec.  2.IV.A.1.; 2.III.F.
    \7\ 86 FR 1826 (Jan. 11, 2021).
    \8\ Chartering Manual, App. 1, Glossary.
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    The proposed rule would eliminate the ownership requirement for 
shared facilities, so that facilities of any shared branch network in 
which an FCU participates, regardless of ownership interest, would 
qualify as a service facility for the addition of groups or underserved 
areas. The proposed rule would also conform the definitions of service 
facility for group additions and underserved area additions, which 
would have resulted in ATMs, including shared ATMs, qualifying as 
service facilities for underserved area additions. Finally, the Board 
requested comments about whether the definition of service facility 
should further evolve to reflect the increasing role of

[[Page 66928]]

technology in the provision of financial services by permitting FCUs' 
interactive websites and mobile banking applications to be considered 
service facilities.

II. Legal Authority

    The Board is issuing this rule pursuant to its authority under the 
FCU Act. Under the FCU Act, the NCUA is the chartering and supervisory 
authority for FCUs and the Federal supervisory authority for all 
federally insured credit unions (``FICUs'').\9\ The FCU Act grants the 
Board a broad mandate to issue regulations governing both FCUs and 
FICUs. Section 120 of the FCU Act is a general grant of regulatory 
authority and authorizes the Board to prescribe rules and regulations 
for the administration of the FCU Act.\10\
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    \9\ 12 U.S.C. 1752-1775.
    \10\ Id. 1766(a).
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    The Act requires the Board to develop regulations to establish the 
criteria for additions of groups and requires the Board to approve an 
MCB FCU's addition of underserved areas.\11\ The Act does not use the 
term ``service facility.'' Rather, the Board adopted the term ``service 
facility'' to define the limits of reasonable proximity.\12\ As 
discussed in the proposed rule, the Act does not dictate the agency's 
prior position requiring ownership in a shared branching network or its 
current decision to continue excluding ATMs from the definition of 
service facility for purposes of underserved area expansion.
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    \11\ Id. 1759(c); (d)(3).
    \12\ 63 FR 71998, 72002 (Dec. 30, 1998); 68 FR 18334, 18335 
(April 15, 2003).
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    Agencies must ``use the same procedures when they amend or repeal a 
rule as they used to issue the rule in the first instance.'' \13\ 
Accordingly, agencies cannot reverse rules adopted by notice-and-
comment rulemaking by other, less transparent methods.\14\ The term 
``service facility'' appears in the Chartering Manual, which the Board 
has promulgated and amended using notice and comment rulemaking. The 
Board has engaged in notice and comment rulemaking to change its 
position regarding ownership requirements for shared branch networks.
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    \13\ Perez v. Mortgage Bankers Ass'n, 575 U.S. 92, 101 (2015).
    \14\ Nat'l Family Planning and Reproductive Health Ass'n, Inc. 
v. Sullivan, 979 F.2d 227, 236 (D.C. Cir. 1992). (``[The agency] may 
not constructively rewrite the regulation, which was expressly based 
upon a specific interpretation of the statute, through internal 
memoranda or guidance directives that incorporate a totally 
different interpretation and effect a totally different result''); 
Clean Ocean Action v. York, 57 F.3d 328 (3d Cir. 1995).
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III. Public Comments on the Proposed Rule and Final Rule

    The proposed rule provided for a 30-day public comment period, 
which closed on February 10, 2021. The NCUA received more than 700 
comments on the proposed rule, 680 of which were identical or nearly 
identical form letters opposing the proposed rule. The form letter 
focused on opposing the proposed expansion of the definition of service 
facility to include ATMs in underserved areas and the request for 
comments on further expanding the definition of service facility. Of 
the 34 unique comments on the proposed rule, 21 commenters generally 
favored the rule and 13 commenters opposed it. Credit unions and 
related groups submitted the supportive comments, while banks, banking 
trade associations and individuals submitted the opposing comments, 
including the form letter.

A. Changes to the Definition of Service Facility for Purposes of Group 
Additions

    Thirteen commenters specifically addressed the proposed removal of 
the ownership requirement for shared facilities, with ten supporting it 
and three opposed. The supportive comments echoed the Board's position 
in the proposed rule regarding the difficulty of obtaining ownership 
interests in some shared branching networks, the ongoing evolution in 
the delivery of financial services, and the fact that ownership, or 
lack thereof, of the entity offering the shared locations does not 
affect the services that members can receive at those locations. One 
commenter also noted that the costs of the shared facility ownership 
requirement might prevent smaller FCUs from being able to expand around 
shared locations. The opposing commenters, all banking trade 
associations, noted that relaxation of the ownership requirement would 
enable FCUs to expand nationwide. One opposing commenter also alleged 
that the Board did not sufficiently explain the reason for the change 
because consumers use ATMs the same way they did 20 years ago.
    The Board is adopting the change to the service facility ownership 
requirement for group additions by MCB FCUs as proposed. The Board 
agrees with the commenters who note that the services available to 
credit union members are the same regardless of whether the credit 
union has an ownership interest in the facility. The Board also agrees 
that the ownership requirement has the potential to disadvantage 
smaller FCUs, for whom the investment necessary for ownership in a 
shared branching network may be cost-prohibitive. The Board does not 
dispute the opposing commenters' observation that permitting shared 
locations to qualify as service facilities enables MCB FCUs to add 
groups that may not have a location in reasonable proximity to a 
facility solely owned by and dedicated to a particular FCU. This 
potential, however, already exists under the current rule, except that 
only FCUs with the resources to invest in a shared branching network 
can utilize it. Far from being the ``red herring'' one commenter termed 
it, the barriers to using shared facilities to expand resulting from 
the ownership requirement are likely to fall most heavily on smaller, 
less resourced FCUs. Accordingly, the FCUs most likely to benefit from 
this change are precisely the type of community-based FCUs the opposing 
commenters indicate they prefer over what they term the ``large, 
growth-oriented credit unions.''
    Finally, the Board disagrees with the commenter who said the 
proposed rule did not sufficiently explain why its position has 
changed, because the services consumers access through ATMs has not 
changed. As discussed in the proposed rule, the Board examined the 
statutory language and intent and determined that its prior 
interpretation, requiring an ownership interest, was not dictated by 
the Act.\15\ As also discussed, changes to the structure of shared 
branching arrangements, as well as consumers' increasing comfort with 
using electronic facilities that may be distant from the physical 
location of their financial institution, prompted the Board to consider 
this change. Nor does the language in the legislative history 
encouraging NCUA to ``strongly favor placing groups with local credit 
unions'' \16\ dictate an ownership requirement. An FCU can be local to 
the location of a group if it can serve members of the group desiring 
credit union services, and it can serve those members through a shared 
facility regardless of ownership.
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    \15\ 86 FR 1826, 1827 (Jan. 11, 2021).
    \16\ H.R. Rept. No. 105-472, 105th Cong., 2nd Sess. (1998).
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    The elimination of the ownership requirement in the final rule is 
analogous to the Board's approach to other components of the reasonable 
proximity requirement. For example, the Board has always taken the view 
that the ``reasonable proximity'' requirement has a geographic 
component, but as there is no statutory constraint on the specific 
distance, the Board has declined to establish a

[[Page 66929]]

parameter not required by the Act.\17\ In other words, despite some 
misconceptions in the past, there is no specific mileage limit or test 
to determine reasonable proximity. Similarly, the Board is now 
eliminating a requirement imposed by regulation that is not mandated by 
statute.
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    \17\ OGC Op. ``Reasonable Proximity Analysis'' (June 10, 2020), 
https://www.ncua.gov/regulation-supervision/legal-opinions/2021/reasonable-proximity-analysis.
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B. Change to the Definition of Service Facility for Purposes of 
Underserved Area Additions

    For underserved areas, the current definition of ``service 
facility'' is more limited and allows fewer kinds of facilities to 
qualify. Specifically, for underserved areas, a service facility 
currently includes credit union-owned electronic facilities (other than 
ATMs) that take deposits, accept loan applications, and disburse 
loans.\18\ Credit union branches, certain shared branches, mobile 
branches, and offices operated on a regularly scheduled weekly basis 
also meet the current criteria for a service facility in an underserved 
area expansion. Shared locations to which an FCU has access by virtue 
of participating in a shared branching network without an ownership 
interest do not meet the criteria for a service facility in an 
underserved area under the current rule. ATMs are also excluded, even 
if wholly owned by the FCU. The proposed rule would have changed the 
definition to allow all shared facilities, including ATMs, to qualify 
as service facilities, without any requirement for ownership in the 
shared facility.
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    \18\ Id. Sec.  3.III.F.
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    The 680 form letter submissions as well as an additional 14 
commenters opposed the addition of ATMs as service facilities for 
adding underserved areas. Opposing commenters stated the legislative 
history of this provision of the Act indicates that Congress did not 
intend for an ATM to qualify as a service facility for underserved 
areas and questioned whether an ATM could provide the level of service 
needed in underserved areas. Only 21 commenters favored this change; 
these commenters asserted that expanding the definition of service 
facility would allow more FCUs to serve underserved areas. The plain 
language of the Act does not prohibit including ATMs in the definition 
of service facility for underserved areas, and the Board agrees that 
expanding the definition of service facility to include ATMs would 
increase service to underserved areas. Nevertheless, after considering 
the comments and upon further review, the Board has determined to adopt 
only a portion of the proposed changes to the definition of service 
facility.
    The final rule allows shared facilities, other than ATMs, to count 
as service facilities for underserved areas, provided the FCU's 
agreement with the shared branching network allows for the shared 
location to receive share deposits, accept loan applications, and 
disburse loan proceeds. Shared facilities which permit an FCU to offer 
these services may be service facilities in underserved areas, 
regardless of whether the FCU has an ownership interest in the entity 
providing the shared facility. An ownership interest in a shared 
facility for purposes of adding an underserved area is not required for 
the same reasons that an ownership interest in a shared facility for 
purposes of adding a group is not required.
    The final rule, however, continues to impose additional 
requirements for service facilities in an underserved area. As in the 
existing rule, ATMs are not included in the definition of service 
facility. The final rule also retains the requirement in the current 
rule that a service facility for an underserved area must be a location 
that provides all three of the listed services--receiving shares for 
deposit, accepting loan applications, and disbursing loan proceeds. 
This means that, as stated in a 2012 Office of General Counsel Opinion 
Letter, so-called ``video teller machines'' that provide the above 
three services are service facilities for purposes of underserved 
areas, regardless of ownership.\19\ The Board has determined this 
approach will allow more FCUs to offer services to underserved areas 
while still ensuring that members added in underserved areas receive a 
high level of services. The Board anticipates that this final rule 
could improve access to fair, safe and affordable financial services to 
individuals in underserved areas especially in minority and rural 
communities.
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    \19\ OGC Op. No. 11-0965 (Aug. 2012), https://www.ncua.gov/regulation-supervision/legal-opinions/2012/video-teller-machine.
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C. Change to the Definition of Service Facility in Chartering Manual 
Glossary

    As discussed in the preamble to the proposed rule, the current 
definition for ``service facility'' in the Chartering Manual's glossary 
would benefit from clarification because it does not include a complete 
definition specific to each type of proposed FOM addition. Although the 
current definition references requirements for underserved area service 
facilities in the final sentence, it does not include the requirements 
for facilities in underserved areas to be a place where shares are 
accepted, loan applications are accepted, and loan proceeds are 
disbursed. The proposed rule would have conformed the definitions of 
service facility and removed this source of confusion. As noted above, 
however, the Board determined to retain the existing requirements 
related to service facilities for underserved areas, so the definition 
of service facility continues to depend on the context.
    The definition of service facility in the Chartering Manual 
glossary in the final rule reflects the elimination of the ownership 
requirements for shared facilities. It also now more fully captures the 
additional requirements for service facilities in underserved areas by 
incorporating the complete definition of service facility for the 
purposes of underserved area additions from Chapter 3 of the Chartering 
Manual.

D. Additional Request for Comment

    The proposed rule also requested comments on the general issue of 
whether the Board's definitions of terms like ``service facility'' 
should further evolve to include a credit union's transactional website 
and mobile banking applications. This was another area of focus for the 
form letter, so the vast majority of commenters opposed consideration 
of such a change. No regulatory changes were proposed in this regard, 
and the Board is not contemplating further action on this issue at this 
time. However, the Board is mindful of the increased usage of digital 
banking platforms by credit union members and will continue to monitor 
the situation.

IV. Regulatory Procedures

A. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires that, in 
connection with a notice of proposed rulemaking, an agency prepare and 
make available for public comment an initial regulatory flexibility 
analysis that describes the impact of a proposed rule on small 
entities. A regulatory flexibility analysis is not required, however, 
if the agency certifies that the rule will not have a significant 
economic impact on a substantial number of small entities (defined for 
purposes of the RFA to include FICUs with assets less than $100 
million) and publishes its certification and a short, explanatory 
statement in the Federal Register together with the rule.

[[Page 66930]]

    The final rule changes the criteria for service facilities of MCB 
FCUs by eliminating the ownership requirement for shared facilities. As 
of June 30, 2021, there are 1,342 MCB FCUs, of which 933 have assets 
less than $100 million. Of these 933 MCB FCUs with assets less than 
$100 million, 243 are already participating in a shared branching 
network. This means that the remaining 690 MCB FCUs under $100 million 
may have additional incentive to participate in shared branching, as 
they will be able to use shared locations as a basis for expanding 
their FOM to additional groups or underserved areas regardless of 
ownership.
    The ability to add additional members will not have a significant 
impact on small FCUs. The negative effect on small FCUs whose members 
gain eligibility for membership in another credit union under these 
changes is also likely minimal. Although this rule is anticipated to 
economically benefit FCUs that choose to expand their FOMs, NCUA 
certifies that it will not have a significant economic impact on a 
substantial number of small credit unions.

B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) requires that the Office 
of Management and Budget (OMB) approve all collections of information 
by a Federal agency from the public before they can be implemented.\20\ 
The NCUA may not conduct or sponsor, and the respondent is not required 
to respond to an information collection unless it displays a valid OMB 
control number.
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    \20\ 44 U.S.C. 3507(d); 5 CFR part 1320.
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    In accordance with the PRA, the information collection requirements 
included in this final rule has been submitted to OMB for approval 
under control number 3133-0015.

C. Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. In 
adherence to fundamental federalism principles, the NCUA, an 
independent regulatory agency as defined in 44 U.S.C. 3502(5), 
voluntarily complies with the executive order. This rulemaking will not 
have a substantial direct effect on the states, on the connection 
between the national government and the states, or on the distribution 
of power and responsibilities among the various levels of government. 
The NCUA has determined that this final rule does not constitute a 
policy that has federalism implications for purposes of the executive 
order.

D. Assessment of Federal Regulations and Policies on Families

    The NCUA has determined that this final rule will not affect family 
well-being within the meaning of Section 654 of the Treasury and 
General Government Appropriations Act, 1999.\21\
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    \21\ Public Law 105-277, 112 Stat. 2681 (1998).
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E. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) generally provides for congressional review of agency 
rules.\22\ A reporting requirement is triggered in instances where the 
NCUA issues a final rule as defined by section 551 of the 
Administrative Procedure Act.\23\ An agency rule, in addition to being 
subject to congressional oversight, may also be subject to a delayed 
effective date if the rule is a ``major rule.'' The NCUA does not 
believe this rule is a ``major rule'' within the meaning of the 
relevant sections of SBREFA. As required by SBREFA, the NCUA has 
submitted this final rule to the Office of Management and Budget 
(``OMB'') for it to determine if the final rule is a ``major rule'' for 
purposes of SBREFA. The NCUA also will file appropriate reports with 
Congress and the Government Accountability Office so this rule may be 
reviewed.
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    \22\ Public Law 104-121, 110 Stat. 147 (1996).
    \23\ 5 U.S.C. 551.
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List of Subjects in 12 CFR Part 701

    Credit, Credit unions, Reporting and recordkeeping requirements.

    By the National Credit Union Administration Board on November 
18, 2021.
Melane Conyers-Ausbrooks,
Secretary of the Board.

    For the reasons stated above, the Board amends 12 CFR part 701 as 
follows:

PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS

0
1. The authority citation for part 701 continues to read as follows:

    Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759, 
1761a, 1761b, 1766, 1767, 1782, 1784, 1785, 1786, 1787, 1788, 1789. 
Section 701.6 is also authorized by 15 U.S.C. 3717. Section 701.31 
is also authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 
3601-3610. Section 701.35 is also authorized by 42 U.S.C. 4311-4312.


0
2. In appendix B to part 701, revise chapter 2 section IV.A.1, chapter 
3 section III.F, and the entry for ``service facility'' in appendix 1 
glossary to read as follows:

Appendix B to Part 701--Chartering and Field of Membership Manual

* * * * *

Chapter 2--Field of Membership Requirements for Federal Credit Unions

* * * * *

IV--Multiple Occupational/Associational Common Bonds

IV.A.1--General

    A federal credit union may be chartered to serve a combination 
of distinct, definable single occupational and/or associational 
common bonds. This type of credit union is called a multiple common 
bond credit union. Each group in the field of membership must have 
its own occupational or associational common bond. For example, a 
multiple common bond credit union may include two unrelated 
employers, or two unrelated associations, or a combination of two or 
more employers or associations. Additionally, these groups must be 
within reasonable geographic proximity of the credit union. That is, 
the groups must be within the service area of one of the credit 
union's service facilities. These groups are referred to as select 
groups. A multiple common bond credit union cannot include a TIP or 
expand using single common bond criteria.
    Employment in a corporation or other legal entity which is 
related to another legal entity (such as a company under contract 
to, and possessing a strong dependency relationship with, the other 
company) makes that person part of the occupational common bond of a 
select employee group within a multiple common bond. In this 
context, a ``strong dependency relationship'' is a relationship in 
which the entities rely on each other as measured by a pattern of 
regularly doing business with each other, for example, as documented 
by the number, the term length, and the dollar volume of prior and 
pending contracts between them.
    A multiple common bond credit union's charter may also combine 
individual occupational groups that each consist of employees of a 
retailer or other business tenant of an industrial park, a shopping 
mall, office park or office building (each ``a park''). To be able 
to have this type of clause in its charter, the multiple common bond 
credit union first must receive a request from an authorized 
representative of the group or the park to establish credit union 
service. The park must be within the multiple common bond credit 
union's service area, and each occupational group must have fewer 
than 3,000 employees, who are eligible for membership only for so 
long as each is employed by a park tenant. Under this clause, a 
multiple common bond credit union can enroll group employees only 
while the group's retail or business employer is a park tenant, but 
such credit unions are free to serve employees of new groups under 
the above conditions as each respective employer becomes a park 
tenant.

[[Page 66931]]

    A federal credit union's service area is the area that can 
reasonably be served by the service facilities accessible to the 
groups within the field of membership. The service area will most 
often coincide with that geographic area primarily served by the 
service facility. Additionally, the groups served by the credit 
union must have access to the service facility. The non-availability 
of other credit union service is a factor to be considered in 
determining whether the group is within reasonable proximity of a 
credit union wishing to add the group to its field of membership.
    A service facility for multiple common bond credit unions is 
defined as a place where shares are accepted for members' accounts, 
loan applications are accepted, or loans are disbursed. This 
definition includes a credit union-owned branch, a mobile branch, an 
office operated on a regularly scheduled weekly basis, a credit 
union-owned ATM, or a credit union-owned electronic facility that 
meets, at a minimum, these requirements. A service facility also 
includes a shared branch or a shared branch network location, 
including a shared ATM or electronic facility that meets the above 
requirements, if the credit union participates in a shared branching 
network. This definition does not include the credit union's 
internet website.
    The select group as a whole will be considered to be within a 
credit union's service area when:
     A majority of the persons in a select group live, work, 
or gather regularly within the service area;
     The group's headquarters is located within the service 
area; or
     The group's ``paid from'' or ``supervised from'' 
location is within the service area.
* * * * *

Chapter 3--Low-Income Credit Unions and Credit Unions Serving 
Underserved Areas

* * * * *

III.F--Service Facility

    Once an ``underserved area'' has been added to a federal credit 
union's field of membership, the credit union must establish within 
two years, and maintain, an office or service facility in the 
community. A service facility is defined as a place where shares are 
accepted for members' accounts, loan applications are accepted and 
loans are disbursed. By definition, a service facility includes a 
credit union-owned branch, a shared branch, a mobile branch, an 
office operated on a regularly scheduled weekly basis, or a credit 
union-owned electronic facility that meets, at a minimum, the above 
requirements. A service facility also includes a shared branch or a 
shared branch network location, including an electronic facility 
that meets the above requirements, if a credit union participates in 
a shared branching network.
    This definition does not include an ATM or the credit union's 
internet website.
* * * * *

APPENDIX 1 GLOSSARY

* * * * *
    Service facility--A place where shares are accepted for members' 
accounts, loan applications are accepted or loans are disbursed. 
This definition includes a credit union-owned branch, a mobile 
branch, an office operated on a regularly scheduled weekly basis, a 
credit union-owned ATM, or a credit union-owned electronic facility 
that meets, at a minimum, these requirements. A service facility 
also includes a shared branch or a shared branch network location, 
including a shared ATM or other electronic facility, if a credit 
union participates in a shared branching network. For purposes of 
serving an underserved area: (1) A service facility is a place where 
shares are accepted for members' accounts, loan applications are 
accepted, and loans are disbursed; and (2) a service facility does 
not include an ATM or shared ATM.
    The credit union's internet website is not a service facility.
* * * * *
[FR Doc. 2021-25609 Filed 11-23-21; 8:45 am]
BILLING CODE 7535-01-P