The CUJ Daily

Court Hears Redistricting Case

DENVER-Democratic lawmakers urged the state Supreme Court here to overturn a Republican-drawn congressional district that allowed a bank-backed candidate to win the state's new seventh district in one of the closest races last year.

The Democrats argued the Republican-controlled legislature illegally packed the new district with Republican voters, enabling former Colorado Bankers Association Chairman Robert Beauprez to best his Democratic opponent, credit union-supported Michael Feeley, by 121 votes out of 190,000 cast.

Feeley, the former Minority Leader of the House, lost the race despite heavy financial and manpower support from the state's credit unions and from CUNA.

Beauprez was chairman of Heritage Bank and former chairman of the state's Republican Party.

The Democrats argued that the redistricting, the second in two years, violated the state's constitution which calls for congressional redistricting every 10 years.

New CU Defection Planned

VIRGINIA BEACH, Va.-@lantec Financial FCU plans to convert to a mutually owned savings bank, the latest institution to exit the credit union system.

The $90 million credit union said it hopes the open membership of a bank charter will help it arrest its decline in membership, which has fallen to 14,255 from 22,000 three years ago when it changed its name from Atlantic Fleet FCU and moved from Norfolk to Virginia Beach.

Credit union officials have applied to federal regulators with the Office of Thrift Supervision for a mutual savings bank (S&L) charter and to the FDIC for federal deposit insurance.

Members are scheduled to vote on the switch Dec. 2.

The new institution would be known as Bank tlantec. tlantec Financial would be the 24th credit union to switch to a bank charter and first in Virginia.

Negligent ATM Placement Claimed

RALEIGH, N.C.-A father whose toddler daughter was killed during a crash into a State Employees Credit Union ATM three years ago has filed suit against the credit union and Diebold, Inc., the maker of the cash machine.

The suit was filed by Peter Horoszewicz, who was pinned against the cash machine with his 23-month-old daughter Maggie when an errant driver crashed into the ATM, killing the young girl.

The driver of the car was charged with misdeamenor death by vehicle and sentenced to community service.

The suit claims the credit union and the ATM maker did not do enough to protect users of the machine.

Since then, the ATM has been moved back from traffic and rotated so users do not have their backs to the traffic, and barriers have been installed.

WCUL To Market Bank Program

FEDERAL WAY, Wash.-The Washington CU League said it has signed a reseller agreement with Cleveland-based KeyCorp to market the company's agent bank program providing access to KeyBank's 2,200 ATMs, to Washington credit unions.

Under the deal, Member Access Pacific, a unit of the league, will add the KeyBank program to its existing check, debit and ATM card processing and support services it offers to credit unions.

KeyBank has signed more than two dozen credit unions to its agent program.

Triangle CU Opens In-Store Branch

NASHUA, N.H.-Triangle CU opened its first in-store branch inside a BJ's Wholesale Club here. The in-store office is a full- service branch facility including two teller stations, two member service stations and a private office for loan closings and meetings.

With a minimum of three employees at all times, the branch offers extended hours including evenings and weekends.

The branch was designed and built by IBT, Atlanta, which also provided "in-aisle" training to CU staff.