The rule defines a “strong dependency relationship” between a SEG sponsor and the sponsor’s contractor to mean that both rely on each other as measured by a pattern of regularly doing business with each other. This can be demonstrated, for example, as documented by the number, the term length and the dollar volume of prior and pending contracts between them. The “strong dependency” standard is to be established by credit unions themselves, so as to create a rebuttable presumption that the sponsor's employees and those of the contractor share a single common bond, as the Federal Credit Union Act requires.
SEG Contractors, Contractors, already serving, multiple common bond, strong dependency relationship, possess, under contract, prior to February 6, 2017, housekeeping amendment, subsidiaries, wholly-owned, company, regular doing business, contract
What is meant by “strong dependency relationship” in the new Inclusion of SEG Contractor Rules?
Last updated on 02/12/19