However, Sayre-Peterson pointed out that the purchase and assumption approach was not the only possible avenue a state chartered credit union could take to a state bank charter.

“Please be advised that our agreement with your argument regarding the conversion of California state-chartered credit unions to federal mutual savings banks as set forth in your letter should not be seen as a statement that there is only one way to convert a California state-chartered credit union to another financial institution charter,” Sayre-Peterson wrote. “There may be other avenues used to convert a credit union into another form of financial institution. However, such other methods are not before us for determination at this time,” he concluded.

The California DBO did not answer questions about the process a state chartered credit union would have to follow to convert to a state chartered bank or how the 2011 opinion letter might influence the process.

The DBO also refused to disclose discussions it has had with Monterey CU officials.

“I have determined that your request seeks copies of records which are not subject to the disclosure requirements of the California Public Records Act,” Assistant General Counsel Michael Patrick McQuinn wrote in a letter to CU Times. “[The codes] expressly provide that any record that is related to this department's application processes or to information received in confidence is exempted from disclosure. Should any communications between DBO and MCU concerning a contemplated conversion application exist, such records would undoubtedly fall within one or both of the identified exemptions.”