New CURIA Sought for CU Conversions

WASHINGTON – A new version of the credit union regulatory relief bill introduced yesterday could helm stem the increasing numbers of credit union conversions by setting a minimum member participation in any conversion vote. The latest version of the CU Regulatory Improvements Act, better known as CURIA, would require at least 30% of all eligible members participate in the ballot–a threshold few of the 40 credit unions that have switched to banks so far have met. The ballot to convert $1.2 billion Think FCU concluded Wednesday is believed to have garnered just shy of the 30% mark, for example. The new bill would also require credit unions to hold a special meeting to discuss the charter switch before the board agrees to pursue the conversion, not after the vote is concluded, as is currently done. The bill would also: enact a risk-based capital system for credit unions; raise the limit on member business loans from the current 12.25% of assets to 20%; allow all credit union types to add underserved communities to their fields of membership; and allow credit unions to retain their select groups after converting to community charters. The bill was introduced by Reps. Paul Kanjorski, D-Pa. and Ed Royce, R-Calif., ans has 10 other cosponsors from both parties. The bill was also introduced in each of the last two congresses but has never been voted on.