State Regulator Rejects Challenge ToCommunity CU Vote

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AUSTIN, Texas - (06/02/05) -- The Texas CU Department said it hasdenied all claims by a group of dissident Community CU memberschallenging the giant credit union's ongoing conversion to mutualsavings bank. In a letter to the lawyer for the Texas Coalition forCU Members, obtained by The Credit Union Journal, state creditunion supervisor Harold Feeney said he has determined thatCommunity CU has not violated any state law or regulation withregard to either the mail disclosures, the ballots or the annualmeeting held last month, during which opponents of the conversionwere prevented from airing their criticisms. "We did not findanything to substantiate their claims, " Feeney told The CreditUnion Journal. "We certainly will continue to monitor the situationto ensure they continue to follow Texas regulations." Meantime, the$1.4 billion credit union, as well as OmniAmerican CU, the $1.2billion credit union in nearby Fort Worth, must still resolve adispute they each have with NCUA, which has invalidated theballoting of both giant conversions. If they fail to do so theballoting will not be certified by NCUA, which has final authorityover the two conversions because of federal deposit insurance heldby each.

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