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The following is the actual Texas CU League Policy on bank conversions: The Texas Credit Union League strongly believes that the member-owned, not-for-profit credit union charter should be the charter of choice for providing the public with consumer-friendly financial products and services. TCUL recognizes and supports the premise that in the democratically-owned credit union system, it is the members, as owners of the credit union, who have the right to decide on the structure and operations of their credit union based on what is in their best interests, even if it is ultimately their decision to convert the credit union to a non-credit union charter. TCUL believes it is critical that credit union directors and officers fully disclose, in all material respects, the impact of a proposed charter conversion so that the members/owners of the credit union can make informed decisions prior to casting votes regarding a conversion to an alternative charter. TCUL is committed to continuing to work with lawmakers and regulators to ensure that Texas credit unions operate in a favorable legal and regulatory environment that will enable them to meet the needs of their members, grow, prosper and compete effectively in the financial services marketplace. TCUL will seek to ensure that reasonable and appropriate laws, rules and regulations governing credit union charter conversions are passed and enforced for both state and federally chartered credit unions. These laws, rules and regulations should require that fair and complete disclosures are made to members in plain and understandable language, including a description of the significant advantages and disadvantages of the change in ownership and governance, prohibitions on any undue enrichment of officers, directors and consultants, and guidelines for a fair voting process. In the event of a proposed conversion of a Texas credit union to a non-credit union charter, the TCUL Board of Directors hereby authorizes the President/CEO or other management staff designated by the President/CEO to provide fact- based information and related comments to the media regarding the importance of complete, fair and balanced disclosures, the avoidance of undue enrichment on the part of any credit union official, and the need for a fair voting and conversion process in order to protect the interests of all members. Such media communications and interactions should seek to ensure all credit union members are fully informed before they vote on a charter conversion.

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