Texas CU Commission Taking Hard Look at Unsolicited Mergers, Rule Bans Luring Members
DALLAS -- In what might be the strongest regulatory effort to date that addresses unsolicited merger attempts within the movement, Texas state-chartered credit unions could potentially have more protections than those in other states.
At the urging of the Texas Credit Union League, the Texas Credit Union Commission is proposing a rule that would address unsolicited mergers within the credit union industry. The rule would prohibit a credit union from offering a merger inducement to another credit union's members as a means of promoting a merger of the two credit unions. The commission has also approved publishing for comment the proposed amendment to 7 TAC 91.1003 concerning mergers and consolidations. The commission is scheduled to meet again Oct. 19. Credit unions are encouraged to send comment letters on the proposed rule.