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WEST PALM BEACH, Fla. – The issue of credit unions converting to banks has both sides of the story fired up. Credit union faithful believe such conversions are bilking members out of the hard earned capital they helped the credit union build over the years, while charter option proponents argue it’s capital that members would never realize anyway in any sort of payout, even as a CU. There are also concerns that these conversions are being pursued by the board and management solely for greed, while charter option proponents say members too have the opportunity to prosper through stock purchase. In Texas, two billion dollar CUs – Community CU and OmniAmerican CU – are attempting to convert. However both have been informed by NCUA that they will have to restart the process due to improper folding of the disclosure documents sent to members. In the case of Community, its members have already overwhelmingly approved the conversion. Is NCUA being too rigid, or is it simply enforcing the regulation that it created? This brings us to the next Credit Union Times’ online voting poll. Is NCUA being too strict in forcing Community CU and OmniAmerican to restart the conversion process due to improper folding of the member disclosure documents? * Yes * No * Not sure (Editor’s note: Have more to say on this topic? Feel free to e-mail your comments to [email protected])

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