NCUA Rejects Community CU ConversionVote

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ALEXANDRIA, Va. - (07/08/05) -- NCUA said it won’t certifylast month’s vote by members of Community CU to convert the$1.4 billion credit union to a mutual savings bank because of atechnical violation of the agency’s rules with the balloting,a top NCUA source told The Credit Union Journal Thursday. Theagency, which is in the process of notifying the credit union giantof its ruling, said Community CU must conduct a new ballot in orderto have the vote certified, the source said. The NCUA ruling,coming after the federal Office of Thrift Supervision and the TexasCU Department has certified the vote, sets the stage for what isexpected to be a legal showdown, with the Plano, Texas, creditunion expected to go to court to challenge the federalregulator’s ruling. More than 71% of Community CU members whovoted in the balloting endorsed the charter switch.

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