NCUA PROPOSES NEW RULES ON CU CONVERSIONS


Credit Union Times   March 12, 2010


ALEXANDRIA, Va. – The NCUA Board is expected during next week’s meeting to propose new rules on the conversion or merger of federally insured credit unions into mutual savings banks or other institutions, including privately insured credit unions.

The rules, two years in the making, would govern disclosures and voting on such transactions as: the conversion of a federally insured state credit union into a privately insured credit union; conversion of a FICU to a mutual savings bank; merger of a FICU into a financial institution other than an MSB; and, conversion of a FICU into a financial institution other than an MSB.

The rules will lay out disclosures and standards for management’s duties, members’ rights to equity, communications to members and member voting.

NCUA has established rules on conversions of federally insured credit unions into mutual savings banks but those rules do not cover the other types of transactions.

The NCUA Board also will issue for public comment its strategic plan for 2010 through 2015.



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