New Rules Eyed For CUConversions

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ALEXANDRIA, Va. - (03/02/06) -- NCUA is expected to propose newrules later this spring that would expand the roll of credit unionmembers in the conversion to mutual savings banks. The proposalswould, among other things, require a board of directors to collectcomments from members prior to voting on converting to bank andfacilitate communications between members on the charter switch,sources told The Credit Union Journal. They would also require thatballots on the conversion be included only in the final of threerequired mailings disclosing the details of the conversion, so asnot to suggest that members need to vote quickly. The proposals areexpected to be issued for public comment some time thisspring.

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