Second Charter Issued Under the Provisional Charter Pilot Initiative
ALEXANDRIA, Va. (June 6, 2024) – The National Credit Union Administration has granted a federal charter and Share Insurance Fund coverage to Fair Break Federal Credit Union in Memphis, Tenn.
Fair Break Federal Credit Union is the second federal credit union to receive a charter under the NCUA’s provisional charter pilot initiative. The provisional charter pilot is one of several recent measures the NCUA has taken to modernize and improve credit union chartering. This pilot allows a credit union’s organizers to obtain a federal credit union charter and provides them 12 months to obtain the capital necessary to begin operations. A charter under the provisional pilot initiative does not authorize a credit union to accept member deposits or originate loans until the credit union obtains its targeted level of donated capital.
Fair Break Federal Credit Union is a low-income-designated credit union primarily serving people who live, work, worship, or attend school in the Memphis-Clarksdale-Forrest City, TN-MS-AR Combined Statistical Area as well as serving those participating in programs to alleviate poverty or distress within the community. The credit union plans to offer members basic savings and lending services, including:
- Share accounts
- Share draft accounts
- Online banking
- Auto loans
- Personal loans
- Credit builder and payday alternative loans
Fair Break Federal Credit Union’s charter became effective on May 30, 2024, and it is the third federal credit union chartered in 2024.