District Discusses Fee For In-School CU Branches
GALVESTON, Texas–In a case that could have ramifications for the spread of in-school credit union branches, public school trustees were discussing last night whether to charge rent to two credit unions that operate on school property.
The two credit unions, Galveston School Employees FCU and Island Teachers FCU, have been located on school property for many years and operate there rent-free, with the school district paying maintenance and utility costs.
Credit unions have operated branches inside schools for decades but the practice has been spreading in the past few years, with more than 150 in-school branches now being run by credit unions or students on behalf of a credit union.
VCUL Nixes Lobbyist With Ties To Payday Lenders
RICHMOND, Va.–The Virginia CU League said last week it has severed its lobbying ties with its long-time outside representative Reggie Jones because it sees Jones’ work representing the state’s payday loan companies as a conflict of interest, as legislation to rein in payday lenders make its way through the General Assembly.
The move came after the league was pressured by Navy FCU, the league’s biggest member and an ardent critic of payday lenders. Jones, who has lobbied for the league for 27 years, will continue to do legal work for the state trade association, but will not represent it before lawmakers. He will continue to work as a lobbyist for the payday lenders.
Ex-CU Abandons Second Step In Conversion
WAYCROSS, Ga.–Credit union convert Atlantic Coast Bank abandoned the second step of its two-step conversion to publicly traded bank last week, citing adverse market conditions for bank and thrift stocks.
The failed conversion costs the former CU, known until 2001 as Atlantic Coast FCU, about $1.1 million, before taxes, for the fourth quarter, it reported. “Market conditions for bank and thrift stocks, especially in the Florida market, have changed significantly since we began the stock offering process seven months ago,” said Atlantic Coast President Robert Larison Jr., who converted the CU to mutual savings bank.
Under the first step of the two-step conversion, the credit union convert sold stock to its depositors in 2003 but retained a majority of the shares in a mutual holding company. Under the second step the majority of shares was supposed to be sold to the public.
Ice Storm Hits CUs, Leagues
OKLAHOMA CITY–Last week’s ice storm shut down some CUs in Missouri, Kansas and Oklahoma, where government officials had declared a state of emergency. “We lost power Monday (through Thursday) and had nothing including backup power until now so we’re just hunkered down and trying to get our network back up and running,” said Oklahoma league president D.J. Morrow-Ingram. In Tulsa, Dowell FCU president Rob Holden said that sporadic power outages were affecting members but he was unaware of any damage to structures. “We were lucky, it’s mostly employees without electricity,” he said. “I heard about 170,000 people were still without power so right now, it’s a world of haves and have nots,” Tinker FCU shut down early to allow employees enough time to get home safely and shortly thereafter lost power at three of their branches, according to Tinker FCU marketing manager Carolyn Kelly. In Missouri, the Missouri CU Association’s Larry Deutsch said Northwest Missouri Regional CU and District One Highway CU were among those that had lost power. Gov. Matt Blunt declared a state of emergency and mobilized National Guard troops in areas of northwest Missouri. Nebraska CU League President Scott Sullivan said no CUs were affected.
State To Sell CU 47 Acres
HARRISBURG, Penn.–The state Senate approved a bill last week that would allow the state to sell a 47-acre parcel of land in nearby Susquehana Township to State Employees CU for a new headquarters. Under the deal, the state’s biggest credit union will pay the state $2.7 million for the land, owned by the state Department of Agriculture. The $2.7-billion credit union currently operates out of a 10-acre campus by the armory on the outskirts of the Capital city.
Hawaii State Pays $2M Bonus
HONOLULU–Hawaii State FCU is paying members $2 million in bonus dividends and loan interest rebates. The bonuses and rebates were based on dividends earned and interest paid from Jan. 1 through Sept. 30. Over the past 12 years it has paid out $35 million in bonuses to members.
