Bottom-Up Requirement Sought For CUConversions

Register now

ALVIN, Texas - (08/22/05) -- Bayou Community FCU is seeking a newway to make it more difficult for the credit union to convert tomutual savings bank. NCUA has given the credit union approval tovote on a non-standard bylaw amendment that would require anyproposal to convert to mutual savings bank be initiated by membersat a special meeting, and not by the board of directors and/ormanagement. The non-standard bylaw would help ensure thatconversions are not proposed by those insiders, directors andmanagement, who stand to benefit most from the charter switch,credit union officials said.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER