SALT LAKE CITY -
The application, filed with the OTS Sept. 10, comes almost exactly six months after the CU told members at its March 3 annual meeting it was "considering a plan of conversion" to a federal mutual savings bank.
Telephone calls seeking comment from Beehive CU's management and the Utah League of Credit Unions were not returned as of press time.
A spokesman for the Utah Department of Financial Institutions told the Credit Union Journal it has not yet heard from Beehive regarding the conversion attempt, which is standard operating procedure.
"They would get permission for a new institution, then they would apply with us to convert," explained Michael Jones, chief examiner for the Utah DFI. "If the OTS says yes, there's not a lot we would do. We would pretty much look at the application and approve it."
A spokesman for the OTS confirmed to the Credit Union Journal that Beehive had filed an application.
According to the website for the OTS, a decision on the application is due Dec. 9. The OTS may extend that date if it requires more information from Beehive.
'Unacceptable Consequences'
In its March press release, Beehive CU's board of directors said the possible conversion "is prompted by current state law restricting the ability of Beehive to expand membership and branch locations."
Beehive's board reportedly told its members during the March 3 annual meeting legislation Utah passed in 1999 has restricted its operations to the point of "unacceptable consequences" for the credit union. Ryan Laws, chairman of the $177 million, 22,000-member CU's board, said state laws "are preventing us from filling out our product line and providing the convenience of branches our members are calling for. This can only be accomplished through a change in our organization."
Scott Jorgensen, president and CEO of Beehive CU, said in the March release: "We believe in the credit union movement. However, until credit unions are given the regulatory relief necessary, we feel our hands are tied in providing our members with the convenience and services they want and deserve. A mutual federal savings bank charter is the best means to allow us to offer new and existing members more locations, larger business loans and more competitive financial services."
