Statement of Chairman Johnson
Regarding Credit Union Conversions
"The nation’s credit unions have a governance responsibility to provide full disclosure to their members. Disclosures inform and protect credit union member-owners and consumers and are a vital element in credit union conversions. Unequivocally, credit union members have the right to choose the charter of their choice. The history of NCUA in approving conversions speaks to this fact.
The American credit union system, founded in the very fabric of a democracy, recognizes members have the right to be informed of the consequences of their decision when voting to convert the not-for-profit financial cooperative to a mutual savings bank. In the spirit of ownership, credit union members count on their credit union executives and boards of directors for that leadership and wise stewardship. Where NCUA finds that a credit union’s leadership has not fulfilled its fiduciary responsibility to their membership in an open, fair and consistent manner, the NCUA will not waver in upholding its statutory duty.
NCUA has attempted to assist and inform Community Credit Union in how the credit union may comply with the rules. We now look forward to resolving this unfortunate conversion process in the near future.”
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