Pennsylvania CU Assn. Weighs In On FOM Litigation

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The Pennsylvania Credit Union Association has entered field of membership litigation in support of the order issued by Secretary of Banking A. William Schenck III approving a community charter for the five-county Philadelphia area. Schenck's Dec. 22, 2004, order approved the community charter application of TruMark Financial Credit Union and provided community chartering guidance to Freedom Credit Union and Corry-Jamestown Credit Union. Freedom has since been granted a community charter and Corry-Jamestown's application is pending. That approval was appealed by the Pennsylvania Bankers Association, which has challenged Trumark's ongoing tax-exempt status by asserting that community-chartered credit unions should pay Pennsylvania's Mutual Thrift Tax, a tax levied upon mutual savings banks. "While we believe there is little merit to the bankers' taxation argument, it requires a rigorous defense by our association on behalf of all Pennsylvania credit unions and their members," said PCUA CEO Jim McCormack.

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