NCUA Reiterates It Will Not ValidateCommunity CU Conversion Vote

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ALEXANDRIA, Va. - (07/05/05) NCUA received Community CU's membershipvote to convert to a bank charter for certification late last weekand has until July 11 to respond, and to date, the federalregulator maintains it will not certify the ballot due todiscrepancies in the credit union's disclosures. "NCUA's positionhas been, as we informed the credit union weeks ago, that due tothe credit union not adhering to the disclosure agreement, NCUAwould invalidate the vote," said NCUA's Nick Owens, who said hecould think of no reason the agency would change its mind betweennow and July 11. Although two different letters from members ofTexas' congressional delegation have been circulated that urge NCUAto approve the conversion of Community CU, Owens said ChairmanJoAnn Johnson has not received either letter and therefore couldnot comment on them other than to say that she "respects andappreciates congressional input." But the final decision, asdefined by statutes written by Congress, rests with NCUA, Owensnoted.

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