Community CU Opponents Urge Tougher RulesOn Conversions
FARMERS BRANCH, Texas - (08/30/05) -- A group of mainly opponents of thetwo ongoing credit union-to-bank conversions called on the Texas CUDepartment Monday to make it harder for credit unions to convert tobanks by, among other things, requiring a unanimous vote by theboard of directors and making the word 'bank' prominent andconspicuous throughout the process. "An examination of recentconversion mailings and ballots shows that the use of the word'bank' or 'mutuals savings bank' appears to have been meticulouslyand studiously avoided in all the materials presented to themember," said Dick Ensweiler, president of the Texas CU League, ofthe ballots mailed to members of Community CU and OmniAmerican CU.The Texas league also asked the CU Department to adopt new rulesgiving objecting members the opportunity and means to organize andcommunicate with other members; and to disclose the name of the newinstitution. Among those speaking during Monday's hearing were:Mark Arnold, Joe Arnold, Elaine Laroa and Martin Sisk, who areopposing the conversion of Community CU. Also speaking was HalCoffman, president of Gulf Employees CU, in Beaumont. The two-dayhearings, held at the Texas league's offices, will be used by theCU Department to gauge interest in changes to the rules governingconversions to banks.