PORT NECHES, Texas – Members of MCT CU are voting whether to convert from federal deposit insurance to private insurance under the banner of ASI Inc., of Dublin, Ohio.
Members are voting on the change during a 30-day ballot that ends Feb. 8.
The $160 million credit union would be the first to convert from federal insurance since the reintroduction of the private insurance option last year.
Texas, as was the case in two dozen other states, terminated the private insurance option and required all credit unions to insure their deposits under NCUA’s National CU Share Insurance Fund after the 1991 Rhode Island Share and Deposit Indemnity Corp. debacle that caused a banking panic in Rhode Island and the failure of more than two dozen privately insured credit unions.
