Community CU Running Out OfOptions

Register now

PLANO, Texas - (07/13/05) -- The Board of Community CU metTuesday and was scheduled to meet again Wednesday to discuss NCUA'saction rejecting last month's vote to convert to a mutual savingsbank, as the high-level showdown appeared headed towards thecourts. Mark Hord, general counsel for the $1.4 billion creditunion, the largest ever to seek a banking charter, said they wereunlikely to appeal the decision of NCUA's Region Five director tothe NCUA Board, as there appears to be no legal framework to do so,and a re-vote on the controversial charter switch is out of thequestion. "We're not inclined to do it again," Hord told The CreditUnion Journal, of the 90-day balloting that cost as much as$600,000 in printing, postage and mailing expenses. "It's anincredibly poor use of the institution's money," he added,referring to the prospect of a re-vote. That makes the legal optionthe most likely one, with the possibility of the credit unionasking a federal court to overturn NCUA's ruling, heindicated.

For reprint and licensing requests for this article, click here.