NCUA approves 214 community charters and counting

ALEXANDRIA, Va.-The NCUA has approved 214 community charter conversions as of March 31, 2001 for federal credit unions under Interpretive Ruling and Policy Statement (IRPS) 99-1, as amended by IRPS 00-1 and 01-1, according to recent information released by the agency. Still this number is relatively small compared to the other types of credit union charters. CUNA General Counsel Eric Richard said that while CUNA has “not detected any great concern” about the community charter conversion process, they have heard complaints that it can sometimes be very slow because NCUA requests additional documentation. “While the conversions to community charters among federal credit unions will most likely remain a trend, overall, community credit unions make up around 11% of all FCUs. Multiple common bond FCUs make up about 48% and single bond 41% as of year-end 2000,” NAFCU Communications Manager John Zimmerman pointed out. Some of the larger community credit union charters approved this year include Nevada Federal Credit Union, Las Vegas, Nev. with $557.5 million in assets for 215,209 potential members; BF Goodrich Employees Federal Credit Union of Tuscaloosa, Ala. with $227.5 million in assets and 30,000 potential members; Sesloc Federal Credit Union of San Luis Obispo, Calif. with $198 million in assets and 81,350 potential members; and Palmetto Citizens Federal Credit Union of Columbia, S.C. with $173 million in assets and 55,000 potential members. Some of the smaller conversions so far this year included Better Federal Credit Union, Marion, Ind., with $1.5 million in assets and 1,100 potential members and Whitewater Regional Federal Credit Union of Connersville, Ind. ($4.5 million in assets) with 3,000 potential members. NCUA is currently being sued by the American Bankers Association (ABA) for its rule promulgation following the passage of H.R. 1151, the Credit Union Membership Access Act (CUMAA). It is the ABA contention that NCUA overstepped its rulemaking authorities with IRPS 99-1, and amendments 00-1 and 01-1. [email protected]