Credit Union to Convert to Bank After Judge Rules Against Federal Regulator

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00003674-credit-union-to-convert-to-bank-after-jud/

By Jim Fuquay, Star-Telegram

A U.S. magistrate apparently cleared the way for Community Credit Union of Plano to convert to a mutual savings bank when he ruled Wednesday that a federal regulator failed to make its case for blocking the conversion.

Magistrate Donald Bush said the National Credit Union Administration erred when it refused to certify a conversion vote June 21 by Community’s members. The NCUA had argued that Community failed to follow disclosure requirements leading up to the vote, approved by about 72 percent of about 36,000 ballots.

The matter now goes to U.S. District Judge Richard Schell of Sherman, who is expected to adopt Bush’s recommendation and grant Community’s request for a temporary injunction against the NCUA. The regulator has 10 days to appeal the decision; it had no comment Wednesday.

For this complete story, please visit Bank conversion likely after ruling.

Credit Union to Convert to Bank After Judge Rules Against Federal Regulator

Unknown Author

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