I read with interest the article "CUSOs cannot service loans not originated by credit unions, NCUA says" which appeared on page 15 of your February 20 issue. I, along with others at NASCUS, very much appreciate NCUA Associate General Counsel Sheila Albin's work and legal opinions on behalf of credit unions. But, we want to set the record straight. The February 5th legal opinion letter to 1st United Federal Credit Union about CUSO service loans applied only to federal credit unions. State-chartered, federally insured credit unions follow state regulations. Part 712 of the NCUA Rules and Regulations does not apply to state-chartered credit unions. Your article failed to make this distinction. Permissible CUSO activities differ from state to state. NASCUS state regulators worked for many months with NCUA senior staff to preserve this distinction. The variance between state and federal CUSOs is an excellent example of a vibrant dual chartering system. Mary Martha Fortney Vice President of State Regulatory Affairs NASCUS Arlington, Va.