NCUA Turns Down One TIP Charter Application
A week after granting a TIP charter to serve federal employees throughout the mid-Atlantic states, NCUA denied a request from XCEL FCU for a broad TIP charter to serve federal, state and local government agencies and the Port Authority of New York/New Jersey in several counties adjourning New York and New Jersey.
In a new legal opinion letter issued to the $85-million Jersey City-based credit union, NCUA said its rules for trade, industry or profession charters do not allow a single charter for the different levels of government or in the Port Authority. The broad TIP proposal, said NCUA, does not adequately demonstrate a "narrow commonality of interests of those working within a specific trade, industry or profession to establish one group that has a common bond of occupation."
According to NCUA, an acceptable TIP charter for XCEL FCU could encompass state and local employees in the targeted counties; or federal employees in those areas; or employees of the Port Authority.