... best for all to obey the law!
The N.C. Supreme Court ruled on the question of common bond and open membership at SECU in 1981. [read full opinion here]. Excerpts below:
✷ "The issue presented by this appeal is whether the field of membership of the Credit Union as set forth in the amended bylaw possesses a "common bond" as required by G.S. 54-109.26."
✷ G.S. 54-109.26: "Membership" defined. (a) The membership of a credit union shall be limited to... (b) [1] groups having a common bond of similar occupation, association or interest, [2] or groups who reside within an identifiable neighborhood, community, or rural district, [3] or employees of a common employer, and members of the immediate family of such persons."
✷ "The language of G.S. 54-109.26 is the basic source for determining the meaning of and the legislative intent behind the requirement of a common bond. Unless the membership requirements of a credit union fall within one of the three specified categories, the "common bond" requirement has not been met and the bylaw governing membership must fall. "
✷ "In light of our decision above, it is unnecessary for us to address petitioners' contention that the Commission's approval of the amendment was in violation of the equal protection clause of the United States and North Carolina Constitutions and in violation of the provision against unlawful discrimination in taxation contained in Article V, section 2 of the North Carolina Constitution."
CEOs Brady and Schline claim taxation would cost SECU members - you and me - $40 million a year"! [see 4/3/2025 video here pleading for support on tax issue].
Is open membership at SECU worth that $40 million yearly cost to the existing member-owners of SECU?
😎 Would you like to vote on it??
Here's what the N.C. Supreme Court specifically said about open membership and taxation in the opinion:
✷ "If the meaning of "common bond" were broadened to the extent allowed by that court, then the constitutional issue would have to be examined anew. There must be a discernible justification for the preferential treatment granted credit unions in the absence of a meaningful common bond limitation."**
** Weaseling will have consequences!
