Pentagon Federal Credit Union has become the country's first credit union to formally swear off converting to a mutual savings bank by adopting a Members' Bill of Rights.
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The bill was adopted at Pentagon's annual meeting May 13. The $10 billion-asset credit union said Tuesday that the bill states that its board would consider switching to a mutual savings bank only under extraordinary circumstances, such as taxation issues or a risk to the Share Insurance Fund.
Any organizational change would include provisions barring directors and executives from obtaining any financial benefit not available to the general membership, Pentagon said.
