A credit union is a cooperative association formed to promote thrift among its members and to create a mutual fund as a source of credit for them. In Tennessee, as elsewhere, credit unions have evolved into sophisticated financial institutions offering members a variety of services. Tennessee law restricts credit union membership to people who share a “common bond,” such as the same employer, the same union or benevolent association, or some similar connection.
Tennessee has detailed and complex requirements for the formation and operation of credit unions. Because of the complexity of these laws, an organization seeking to set up a credit union needs expert assistance. It is often easier to join an existing credit union rather than start a new one.