JOHNSTOWN, Penn. – Three long-time directors of USSCO Johnstown FCU who lost their bid for reelection last month will get another chance because of a quirk in the credit union’s bylaws.
The three incumbents were defeated May 14 after nominations from the floor at the annual meeting created the first election contests in the former U.S. Steel credit union’s 51-year history.
But a requirement to notify all credit union members fell short because about 300 of the 13,000 members have account balances below the credit union threshold to draw interest and so were not notified of the meeting.
"What could we do, six votes separated the two slates," said Guy Messick, attorney for the $100 million credit union. He said 305 eligible members had not been notified of the meeting and the bylaws required that all eligible members be notified.
Credit union leadership notified members in late May the election was nullified and a new annual meeting would be scheduled.
The victorious newcomers were prompted to run at the meeting after the removal of Brian Riffle as president and CEO, who was forced out last year after examiners found $3 million of member business loans of questionable quality on the books. Most of the loans were eventually paid in full
