NCUA Plans New Rules On CUConversions

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ALEXANDRIA, Va - (06/16/06) – The NCUA Board is expected nextweek to propose new rules requiring greater transparency duringconversion from credit unions to mutual savings banks. The Board isexpected to issue for comment a proposal that will require boardsand management to provide advance notice members before the boardvotes on a credit union-to-bank charter switch; as well provide aforum for members to communicate during the deliberations on theconversion. The Board will also adopt a final rule banningcommunity chartered credit unions from its underserved expansions,a matter that is currently being deliberated in federal court. TheBoard will also vote a final rule on third-party servicing ofindirect loans.

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