A credit union is a cooperative association organized to promote thrift among its members and to create a mutual source of credit for them. In Utah, as elsewhere, credit unions have evolved into sophisticated financial institutions offering members a variety of services. Utah law generally restricts credit union membership to people with a “common bond,” such as the same occupation or association (UT Code Sec. 7-9-6 ), but also allows the expansion of membership to include residents of certain towns or counties where the credit union is located (UT Code Sec. 7-9-51et seq.).
Utah has detailed requirements for the formation 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 than to start a new one.