NCUA Won't Certify Community CUVote

Register now

WASHINGTON - (06/22/05) -- NCUA said it won't certify theconversion vote at credit union giant Community CU, regardless ofthe outcome of the balloting to be counted at Tuesday's night'sspecial meeting. "They've already been notified because they didn'thonor the disclosure requirements that this vote will not becertified," NCUA Chairman JoAnn Johnson, told The Credit UnionJournal Tuesday. Johnson noted that the federal regulator, which isrequired by law to certify the vote before a credit union mayconvert to mutual savings bank, has ruled that mail ballots sent tomembers of the $1.4 billion credit union were flawed and inviolation of NCUA rules, requiring that the balloting be conductedover. Unless the balloting is redone, NCUA will not certify theconversion vote, she said.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER