OTS Approves Community CUsApplication; Takes NCUA To Task
WASHINGTON - (07/01/05) The Office of Thrift Supervision hascertified the vote by Community Credit Union members to convert theCU to a bank charter and implicitly called NCUA to task as the soleholdout on the $1.4-billion CUs proposed conversion. In itsorder certifying the vote, OTS chastised NCUA fordisapproving CCUs disclosure notices afterhaving preliminarily approved the documents. Moreover, OTSsuggested NCUAs required, so-called box disclosures arepotentially misleading. The NCUA raised no objection to theadditional information that the credit union placed on the reverseside of the single sheet of paper, and, in fact, preliminarilycleared the credit unions disclosures, including thedisclosures placed on the reverse side of the boxed disclosures.Similarly, the [Texas Credit Union Department] preliminarilycleared the same disclosures, OTS Acting Director Richard M.Riccobono wrote in the June 29 order. OTS concludes thatthere is no reason to object to the credit unions additionof information set forth on the reverse side of the boxeddisclosures, because the additional information mitigatespotentially misleading statements included in the NCUAsrequired disclosures. OTS raised the specter of NCUAsown process potentially misleading membership and tainting the votein a footnote that suggested OTS determined only CCUs ownstatements mitigated the need for further investigation ofNCUAs language by OTS.