NCUA Won't Halt ConversionVoting

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ALEXANDRIA, Va. - (06/15/05) -- NCUA said it won't stand in the wayof the completion of the voting and the holding of specialmembership meetings at Community CU and OmniAmerican CU where bothvotes will be tallied. "The agency will not interfere with thespecial meeting of the members," Nicholas Owens, spokesman for thefederal regulator, told The Credit Union Journal. Members ofCommunity CU opposing the controversial vote had asked NCUA tointervene and halt the balloting after NCUA ruled ballots mailed byboth billion-dollar credit unions ran afoul of the agency's rulesand regulations governing conversion to mutual savings bank. Owenssaid the agency stands by its earlier ruling and will not certifyeither conversion based on the invalidated ballots. Separately,Community CU President Gary Base met Tuesday with NCUA ChairmanJoAnn Johnson to discuss a possible resolution of the dispute butit was not clear whether any agreement was reached. Owens confirmedthe meeting, saying, Chairman Johnson and Mr. Base had an open andproductive meeting this afternoon." Community CU is scheduled tocomplete its balloting at a special meeting June 21 andOmniAmerican CU has set its meeting for July 11.

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