BOSTON – Postal Community CU has initiated a second attempt to convert to a mutual savings bank and submitted disclosures on the proposed bank switch to NCUA for its approval. The $135 million credit union tried before, but the effort was denied by state regulators, who were supported by the courts. Because there was no state law enabling a credit union to convert to bank, Postal Community sought to convert to a federally chartered savings bank, but the regulator quashed the bid because of no provision enabling the unusual charter switch. So at the behest of the credit union, the Massachusetts legislature passed law earlier this year allowing state chartered credit unions to convert to a state chartered mutual savings bank.
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