NCUA Sets TIPping Point For New CharterType
ALEXANDRIA, Va. - (06/06/05) -- A week after granting a TIP charterto serve federal employees throughout the mid-Atlantic states, NCUAdenied a request from XCEL FCU for a broad TIP charter to servefederal, state and local government agencies and the Port Authorityof New York/New Jersey in several counties adjourning New York andNew Jersey. In a new legal opinion letter issued to the $85 millionJersey City-based credit union, NCUA said its rules for trade,industry or profession charters do not allow a single charter forthe different levels of government or in the Port Authority. Thebroad TIP proposal, said NCUA, does not adequately demonstrate a"narrow commonality of interests of those working within a specifictrade, industry or profession to establish 'one group that has acommon bond of occupation." An acceptable TIP charter for XCEL FCUcould encompass state and local employees in the targeted counties;or federal employees in those areas; or employees of the PortAuthority, NCUA suggested.