Court Rules In Favor of Charter Shifting CU

EAST BOSTON, Mass – A superior court judge has ruled in favor of a Massachusetts chartered credit union that has sought to shift to a mutual bank charter and which had been blocked by the state’s regulator. The $135 million Postal Community Credit Union, formerly known as Boston Post Office Employees Credit Union, had sought to make the charter shift and been told to cease its efforts by the regulator. The commissioner of banks in the instance before the court does not have the authority to prohibit the credit union from exercising its rights under state law, the court ruled. The “Orders and Directions” of the Commissioner of Banks issued to PCCU are legally erroneous and therefore, beyond the authority of the Commissioner in the circumstances before him. As such, the Orders and Directions are declared null, void and no effect, the court added.