PLANO, Texas - The $1.4 million Community Credit Union has sent its disclosure information on the pending charter change to its members, revealing that the credit union expects to pay almost $1.3 million to make the change and that it will employ a raffle to help drive member voting. In its March 23 packet of information, the credit union revealed that it would likely spend $5,400 for regulatory filing fees, $230,000 in printing, $304,000 in postage, $90,000 putting mailings together, $26,000 on an inspector of elections, $150,000 on a "membership awareness campaign", $105,000 for consulting and professional fees, $200,000 on legal fees and expenses, $230,000 on changes in signage and stationary, and $3,200 on a location for the June 21 special meeting. The credit union also budgeted $20,000 for cash prizes it will offer in a raffle to induce members to vote on the charter change and declared that the charter change will not cost anything in terms of staff time. It also declared that the charter change would make it $101,000 in the near term due to the lower cost of examination as a mutual bank ($177,000) versus as a credit union ($278,000). The credit union also confirmed that it would seek to adopt a mutual holding company structure as a bank and to issue stock to raise capital.
From the April-06, 2005 issue of Credit Union Times Magazine • Subscribe!
Community Credit Union Discloses Charter Change Details; CU Leadership Mum on Impact
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