Ousted Mutual Savings CU Board, CEO File Injunction
League of Southeastern Credit Unions President/CEO Patrick LaPine and Alabama Credit Union Administrator T. Glenn Latham confirmed that the Mutual Savings CU Board and CEO have filed an injunction to block the conservatorship.
LaPine said a court hearing has been scheduled for Aug. 24, in which former MSCU CEO Dale Dalbey and his board will legally challenge the regulatory action. LaPine added the league will not participate in the legal challenge.
According to its June 2009 5300 report, Mutual Savings had an 8.16% net worth. Latham said he can't comment on his reasons for seizing the institution, but did say NCUA Region 3 Director Alonzo Swann told him MSCU had recently applied to convert from a state to federally chartered credit union.
Latham said he's not going to approve the charter conversion until "we get this credit union straight."