NCUA Weighs Halt To Community CUVote

Register now

ALEXANDRIA, Va. - (06/09/05) -- NCUA is considering a request fromdissident members of Community CU to stop the balloting of thecontroversial conversion to mutual savings bank in its tracks andprevent the credit union giant from holding a special membershipmeeting June 21 where the conversion vote would be culminated. Theself-styled Texas Coalition for CU Members has asked NCUA to useits administrative powers to issue a cease and desist order barringthe $1.4 billion credit union from completing the vote based onNCUA's determination that ballots mailed to the credit union's250,000 members are flawed and in violation of the agency'sregulations. An NCUA spokesman told The Credit Union Journal thegroup's request is being reviewed by the general counsel's office.Dominique Varner, an attorney for the dissidents, said they hopeNCUA will initiate an administrative proceeding on whetherCommunity CU has adhered to its rules on conversions, then issue acease and desist order to prevent the credit union from completingthe balloting until it has complied with the agency's conversionrules.

For reprint and licensing requests for this article, click here.