Vanderbilt Law Review

First Page



An awareness of the credit union, its economic and social impact,has a special significance to the lawyer. Although such significance appears minimized by a dearth of litigation addressed to credit unions in the past, this is not a true reflection of fact; nor would a true history of credit union litigation be a guide to the future. The lack of identifiable credit union litigation is chiefly due to the lack of appreciation by the bench for the distinguishing features of savings and loan associations, commercial banks, and credit unions. Two prospective developments should cause increased attorney contact with credit unions. First, the necessity for statutory revision and enactment as re-analysis of the credit union system suggests the need for more effective regulatory control. Second, the growing number of credit unions and members will engage more of the bar in assisting with the organization of a credit union, and in providing counsel to those in existence...The failure to adapt to a changing system has prompted this analysis of the role of the credit union in our economy. This analysis will trace the origin and evolution of the credit union, will present existing problems relating to (1) the adequacy of regulatory control, (2) the prospect and justification of a federal central credit system comparable to the central bank system, (3) the advisability of share insurance for protection of members, and (4) the justification for continued tax exemption, and will make some conclusionary recommendations.