Recommendations Made By CUs On Conversion Disclosures

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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.

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