CHATTANOOGA, Tenn. -- The 104 Tennessee credit unions that are members of Mutual Guaranty Corp., a private deposit-insurance fund, have reached an agreement that paves the way for their conversion to federal insurance.
The agreement eliminates a provision requiring institutions to forfeit 1% of their insured deposits if they seek federal insurance.
The board of the insurer chose to move toward dissolution because it has been losing members for two years, said James Roberts, executive vice president of Mutual Guaranty, which is based here.
Mr. Roberts said he is expecting a mass conversion to the National Credit Union Share Insurance Fund, and the private insurer will help credit unions make the switch.
