Dissident Community CU Members EyeLiquidation Option
PLANO, Texas - (06/08/05) -- A group of Community CU membersopposing the giant credit union's conversion to mutual savings bankis trying to get another option presented before members during theJune 21 special meeting--an unprecedented liquidation of the $1.4billion credit union and payout to members. Under one scenariodiscussed, the assets of the credit union, including loans andcapital and brick and mortar, would be sold for book value of $250million--enough to pay each of the credit union's 250,000 or somembers $1,000. But the group knows that the liquidation option isan uphill struggle because it must first be approved by theCommunity CU board before it is put before members at the specialmeeting. "We're discussing all options that we have at this time,"Mark Arnold, the leader of the Texas Coalition for CU Members, toldThe Credit Union Journal, of his group's plans for the specialmeeting. "Ultimately, it's going to be how they (credit unionofficials) handle the meeting from a Roberts Rules of Orderperspective." Opponents of credit union conversions believe membersshould have the option of voting for a liquidation and payout, aspart of the balloting on a conversion to mutual savings bank, butsuch an option has never been presented during a conversionvote.