FARMINGTON, Utah – The $78 million Horizon Credit Union here has joined the ranks of state-chartered CUs making the switch to a federal charter. Final regulatory clearance came June 16 from NCUA and state officials. Management of Horizon declined to discuss the reasons for the conversion stating only "the issues have been hacked to death," a reference to the long-diminished state charter culminating in the 2003 passage of a state law which almost included imposition of "franchise" taxes on CUs. The law banned business loans and placed other restrictions on state CUs. Half a dozen large CUs followed by others subsequently bolted the state system for a federal charter with the Utah League of Credit Unions hoping to re-establish a bolstered state charter in the next legislative session. Meanwhile, Horizon management has expressed keen disappointment that it was forced to leave the state system.
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