Constitution State Corporate PlansCharter Conversion

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WALLINGFORD, Ct. - (04/13/05) -- Constitution State Corporate CU hasbecome the latest corporate to seek to convert to a state charter.An official with the $2 billion told The Credit Union Journal afederal charter would save the corporate an estimated $100,000 ayear in lower supervisory fees charged by NCUA and in state salestaxes, for which the corporate would be exempt under a federalcharter. It could also help resolve a continuing dispute overunrelated business income taxes the state charter currently haswith the Internal Revenue Service, at least for UBIT liabilitiesgoing forward after conversion to tax-exempt shield of the federalcharter. The conversion of the Connecticut corporate follows therecent conversion of Northwest Corporate CU from a statecharter.

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