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TORRANCE, Calif. – Due to some incorrect information provided, Credit Union Times recently reported that Honda FCU would be converting to a state charter to ease its efforts in branching out in Canada – in fact it is creating a separate state chartered credit union. “We want to keep the federal charter for Honda FCU. The reason we’re creating a state charter is because about two years ago California said that state-chartered credit unions can do business in any country. We’re still precluded as a federal charter from doing business in another country,” said Jim Updike, president/CEO of Honda FCU. “NCUA doesn’t allow you to mix and match. We’re an occupational based credit union for a single sponsor,” said Updike. NAFCU Communications Manager John Zimmerman said if NCUA’s proposed overseas branching proposal is passed, this problem will no longer exist for FCUs. Updike said the California Department of Financial Institutions has had its state charter application for over a year now and has indicated to Honda FCU that there’s no reason why it wouldn’t get the charter. Honda the company has locations all over the world, including England, Australia, Mexico, Japan and other locations. Updike said for over 12 years now he’s been working on ways to enable his CU to serve Honda employees globally. Initially the CU is looking to serve employees of a Honda plant in Alliston, a town in the province of Ontario. The parliament in Ontario has to pass legislation in order for this to happen, said Updike. The CU has retained the services of former WesCorp President/CEO Dick Johnson to get that done. “Dick’s role is really two-fold at this point. One to make sure we do in fact get the charter from the California Department of Financial Institutions, and second and much more involved, to start the legislative process in Canada,” said Updike. As for the new state charter, there will be a management agreement between Honda FCU, a new CUSO and the state charter, in order for Honda FCU management to manage the new state charter. There will be no separate CEO; it will be led by Updike. Another twist is the new CU will be privately-insured, provide by ASI. Honda FCU is working with its data processor, Symitar Systems, to enable both CUs to be run on Honda FCU’s DP system. Updike said he also wants to use the new state charter for other purposes. He has been in discussions with Honda about having the new CU serve members of Honda’s Rider Club, which is basically anyone who rides a Honda motorcycle. The CU wants Honda motorcycle dealers to offer CU membership to its customers. “We may some day expand this to auto dealers as well,” said Updike. [email protected]

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