The Charter Advisory Group of Members United Bridge now istaking big steps to prepare for a post-bridge existence as astand-alone corporate, said John Fiore, CEO of the MotorolaEmployees Credit Union, speaking in his capacity as chairman of theCAG.

On March 18, the CAG filed an official application for a newcharter with the NCUA. A business plan, proposed bylaws andpolicies, and an application for share insurance also weresubmitted.

That puts this ball squarely in the NCUA's court, said Fiore.The approval process is expected to take 60 to 90 days. “Hopefully,the sooner the better,” said Fiore. Assuming all the pieces fallinto place, the new corporate would open for business on Oct. 1,2011, said Fiore. “We have a lot to do in a short amount oftime.”

“We will start the capital subscription campaign as soon as weget NCUA approval,” added Fiore. “We have 2,400 members–that is alot of members to reach out to.”

Key to the creation of the new corporate is an innovativecapital plan, “unique in the industry,” according to Fiore. Theplan is tied to credit union debit settlement and not assets, somembers of the new corporate would contribute based not on theirsize, but on their usage of the corporate. This is expected toreduce the necessary capital contributions from members, saidFiore, who added that he is very confident about its success.

“Our capital requirements are so much better that we may get newmembers, ones that had not previously belonged to Members United,”said Fiore.

“Larger credit unions who may not need corporates need to play arole in this. They need to do this to make sure there is acorporate credit union system,” added Fiore. “We need to join inkeeping small credit unions alive and well.”

“I am delighted NCUA has given this great opportunity to seek toform a new corporate. This will be a different corporate, a newkind of corporate that will serve our members' need,” saidFiore.

The backdrop to the CAG actions is their belief that one way orthe other, Members United Bridge will cease to exist not too manymonths from now. The initial hope had been for a merger withanother Tier 1 corporate bridge, but that option has unequivocallybeen taken off the table by the NCUA. The newest actions fromMembers United Bridge indicate a belief on the part of at leastsome members that the bridge can be transformed into a viablecorporate on its own footing.

Members of the Charter Advisory Group have agreed to serve asinterim members of the board of directors of this new corporate ifit is given the go-ahead by the NCUA. These include Curt Cecala ofTCT FCU, New York; John Fiore of Motorola Employees CU, Illinois;Lynn Kothe of North Memorial Federal Credit Union, Minnesota;Leanne McGuinness of The Summit FCU, New York; Floyd Rummel, III ofDakota Territory FCU, South Dakota; Amy Sink of Teachers CU,Indiana; and David Suvall of Rhode Island CU.