New Procedures Said Holding Up Technology CU Bank Conversion Vote Results
New procedures for tabulating the results in charter conversion votes are making the results from the recent vote on Technology Credit Union's proposed charter change to a mutual bank take longer than results from other charter change votes, explained sources familiar with the process.
The 69,000-member, $1.6 billion San Jose, Calif., credit union officially wrapped up voting on the proposed charter change on Sept. 12 with a special meeting, but results from the balloting have not yet been released.
Prior to the latest round of regulations overseeing charter change balloting, independent officials charged with counting ballots were able to open ballot envelopes as they arrived, leaving only the ballots cast at a special members meeting left to count on the day after the meeting.
But the new regulations dictate that the independent officials cannot open or tabulate any ballots until after the special meeting has concluded and they do not require the credit union to make election results public, though the independent election officials have to provide a copy of their tally to the NCUA at the same time they do so to the credit union.
If members vote in favor of the conversion, members opposed to it say they will continue to oppose the results in court.
Members opposed to the conversion allege that the credit union violated NCUA regulations when it added tracking technology to email that members oppose to the conversion sent to other members.