OmniAmerican CU Forges Ahead WithConversion Vote
FORT WORTH, Texas - (06/14/05) -- Representatives of OmniAmerican CU,the second Texas credit union giant in the process of converting tomutual savings bank, said they plan to continue the vote on thecontroversial charter switch even though NCUA has invalidated thefirst two of three mail ballots. The $1.2 billion credit unionmailed the final of the three required ballots on Saturday andplans to hold a special membership meeting on July 11 to count thevotes, even though NCUA has directed that the first two ballots beredone, the credit union said. The credit union's stance sets upwhat is expected to be a showdown with the federal regulator thatcould end up in court. Community CU, the $1.4 billion Plano-basedcredit union also in the process of converting, has also pledged tocomplete its vote in defiance of an NCUA ruling invalidating thevoting process. Opponents of the charter conversions fear the votecount in each case, even if ultimately invalidated by NCUA, will beused by the two credit union giants in any subsequent vote to showboth members and the courts that the controversial charter switcheshave broad member support.