Texas Plans Revamp Of CUConversions

Register now

AUSTIN, Texas - (08/02/05) -- The Texas CU Department will startthe process of reforming the rules for conversion to mutual savingsbank during a public forum August 29 at the Texas CU League'sheadquarters in Farmers Branch. Among the issues being reviewed inlight of the controversy over the ongoing conversions of creditunion giants Community CU and OmniAmerican CU is: are members beinggiven enough information to make an informed vote on the charterswitch. Interested parties are also being asked whether a minimumpercentage of members should be required to participate in theballot; whether cash and other inducements to vote should berestricted; and whether members should be allowed to share theirconcerns before the vote occurs. Meantime, NCUA told a federalcourt in Dallas Monday a suit brought by Community CU andOmniAmerican CU, the biggest credit unions ever to seek conversionto banks, should be dismissed.

For reprint and licensing requests for this article, click here.