State Regulator Approves Community CUBid

AUSTIN, Texas - (07/07/05) -- The Texas CU Department saidWednesday it has issued an order approving the application fromCommunity CU to convert to a mutual savings bank, finding that theballoting and vote for the $1.4 billion credit union were proper."It's not just the balloting process; we've approved theirapplication," Kerri Galvin, general counsel for the CU Department,told The Credit Union Journal. The state regulator's action, cominga week after the federal Office of Thrift Supervision approved thecredit union giant's thrift application, sets up a showdown withNCUA, which has indicated it won't certify the controversial votebecause the ballots included a technical violation of the agency'sconversion regulations. NCUA said Wednesday its Region FiveDirector has received Community CU's certification documents,including a 17-page letter and attachments, and has until Monday torender its decision on the largest credit union ever to seek a bankcharter.