Banker Standing Rules to be Written

BISMARCK, N.D. – The state Credit Union Board expects to start writing new rules to give firm banker standing on field of membership questions at its June 3 meeting, according to CU Commissioner Timothy J. Karsky. Previously, bankers challenging FOM applications could do so under rulemaking procedures, but a new state FOM law effective Aug. 1 stipulates the CU Board must draft rules of its own, a process which could take eight to 10 months, said Karsky, who is also head of the Department of Financial Institutions. Banker standing – and opposition to it by some within the North Dakota Credit Union League -turned out to be a key sticking point in the compromise law adopted jointly by the League and the North Dakota Bankers Association. Karsky said the process of adopting rules is lengthy because a hearing process is involved. Separately, Karsky, who also is chairman of the CU Board, said the June 3 meeting will also be devoted to one of the first CU merger applications since Governor John Hoeven signed the FOM law. That case involves a requested merger by the $3.7 million Rural Electric and Telephone CU of Bismarck into the $224 First Community CU of Jamestown. At an earlier meeting of the CU Board, the merger bid was tabled following discussion of financial terms. First Community said it is hopeful the merger application would be approved at the June 3 meeting. [email protected]