Washington State Division of Credit Unions Revises Merger Manual

OLYMPIA, Wash. – The Division of Credit Unions of Washington State’s Department of Financial Institutions recently approved changes to its merger manual used to guide credit unions through the process of merging with another CU. The changes involved three areas: clarifies the content of information provided to members for them to consider in voting on the merger; clarifies that the membership vote is taken only after the Division and the NCUA give regulatory approval for the merger; the Division expects management of the “merging” state chartered credit unions will contact the Division at least five business days before the Board of Directors’ vote on the merger. In addition, a Division representative can attend the board meeting at which the vote will be held. As for the second point of clarification, the Division said it wants the continuing credit union to have time to consider the impact of any regulatory conditions contained in the merger approval, before the membership vote is called. The Division also wants to review the language of the notice of a special meeting of the members on the merger proposal and the membership voting ballot before they’re sent to the members. As a general rule, said the Division, a credit union should provide the member with a summary of the merger plan, either as part of the notice or as a separate attachment.