New Members Can Be Charged More For FCUShares
ALEXANDRIA, Va. - (01/26/05) -- A federal credit union is permittedto charge a higher par value of a share to new members than forexisting members, according to NCUA. In a new legal opinion issuedto U.S. Postal Service FCU, NCUA said the bifurcated valuation canbe established, "as long as there is a rational basis." TheClinton, Md., credit union expanded it would like to maintain its$5 par value for existing members, but increase the par value fornew members to help raises capital. The reason for maintaining the$5 par value for existing members if to avoid potential confusionfor existing members by requiring them to increase their depositsto the new par value.