ALEXANDRIA, Va. – In a move which will run counter to some of the existing procedures under which some credit unions have changed their charters to those of mutual banks, the NCUA has proposed rules which promise to significantly open the process to more input from members.
Under the proposal, which the NCUA Board approved unanimously on June 22, a CU contemplating a conversion will have to advise its membership that it is considering a conversion and establish procedures for hearing from the membership about the idea before the board takes a vote on the conversion proposal.
The boards of CUs which are seeking to convert will also have to certify to the agency that the conversion is in the best interest of the members and the CU will only include ballots with the final disclosure notice. The proposed regulation, however, leaves intact the option of tying raffles and other incentives to the voting.
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