Recommendations Made By CUs On Conversion Disclosures
Among the changes to regulations on charter conversions suggested to the Texas Credit Union Commission by credit unions were:
* The board of the credit union wishing to convert must vote unanimously for the record to approve the conversion.
* Require that a specially called credit union membership notification meeting be held 30 days prior to any conversion ballots being mailed out to the membership.
* Require the use of Robert's Rules of Order for parliamentary purposes at any specially called, conversion-related membership meetings to provide an opportunity for full participation by members who attend.
* Require that TCUD agency letterhead be used and included in all official ballot mailings to members, containing required regulatory disclaimers to the credit union membership.
* On the TCUD agency letterhead containing disclosures, the first item should be a boxed disclosure in clear and bold type, that contains the simple, unambiguous statements:
- A "YES" vote means your credit union will become a mutual savings bank.
- A "NO" vote means your credit union will remain a credit union.
The same disclosure wording should be included on the actual ballot.
* The proposed new name of the financial institution to which a credit union is converting must be prominently and conspicuously disclosed to the members.
* In the first mailing, the converting credit union may not include a "rebuttal" to disclosures required by conversion regulations.
* Credit union members should be allowed the ability to communicate information they feel is essential to their fellow credit union members about the conversion.