Tech CU Members Plan to Use NCUA Regs to Share Arguments Against Conversion
Two members of the 69,000-member Technology Credit Union have notified the credit union that they will assert their right under the NCUA's charter conversion procedures to have the credit union email their arguments against the proposed conversion to other members.
The board of directors of the $1.6 billion credit union notified members that it was considering changing its charter in October 2011 to that of a bank and members received their first disclosures in June.
Under NCUA regulations, members of a credit union considering a charter conversion have 35 days from the date of the first disclosure mailing to send the materials they want emailed, along with a payment of $200 per mailing, to the credit union.
The San Jose, Calif., credit union's first disclosure mailing was dated June 14 which means the deadline for emailed content would be July 19.
The credit union may refuse to mail the materials on a variety of grounds, including if they “[a]re false or misleading with respect to any material fact” or “[o]mit a material fact necessary to make the statements in the material not false or misleading” or “[d]irectly or indirectly and without expressed factual foundation make statements impugning the stability and soundness of the credit union,” among others.
But if the credit union refuses the materials, it has to forward them to NCUA's regional director for review and modification, with the consent of the mailing member, and then must email them.
Carlos Rodriguez, who describes himself as an entrepreneur and a former credit union employee, is one of the members who plans to assert this right, along with Robert Marinace, who said he is longtime Tech Credit Union member who also opposes the conversion attempt.
Rodriguez has launched a Facebook page opposing the conversion.
The credit union has not returned calls for comment about either the Facebook page or the members' intention to send email opposing the conversion to other members.