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Credit Union

Question:
I saw that the Rav has a Teshuva regarding having shares in a bank that lends to Jews. What is the Rav’s position regarding credit unions?

Thank you.
Answer:

A credit union should be treated like a bank in this regard. 

[A credit union is non-profit organization for their members. Each member has one vote regardless of the amount of money they have deposited. Members cannot sell or otherwise transfer their theoretical share of ownership to others. They cannot withdraw their
share of the credit union’s capital when they move or when they terminate their membership. Their heirs do not have an equity claim upon their death. The credit union members receive capital distributions are when the credit union is liquidated or when regulators conclude that the credit union is grossly overcapitalized and permit the credit union to make a special capital distribution.

Credit union is controlled by regulators and board members.]

 

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