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Capital Absorption Opportunity · Community lenders

Credit Unions

Definition

A federal credit union is a cooperative association, owned by its members, organized to promote thrift among them and to create a source of credit for provident or productive purposes.[1] Credit unions can also be chartered under state law; for a borrower, a credit union lends to its members, so access depends on fitting its field of membership.

Federal law

  1. Federal Credit Union Act, Act of June 26, 1934, ch. 750, 48 Stat. 1216. Created federally chartered credit unions and defined "Federal credit union" (§ 2). Official text: govinfo.gov, U.S. Government Publishing Office.