Alabama League Adopts Conversion Policy

BIRMINGHAM, Ala. – The Alabama Credit Union League has adopted a policy on credit union-to-bank charter conversions. The policy spells out the League’s position on conversions and provides guidelines for the role of the League prior to, and during, any conversion procedure by a credit union. “The League Board believes that the credit union charter is essential to give consumers a real choice for financial services,” stated Alabama League Board Chairman Dale Dalbey. “As owners of their credit union, members have every right to control the future of their institution, including the right to vote for conversion to a mutual savings bank. To fully exercise their right of self-determination, members must be fully aware of all facts surrounding a proposal to convert away from the credit union charter and the League Board believes it is incumbent upon us to ensure that credit union members are being presented with all relevant facts before being asked to make such a monumental decision.” The policy reaffirms the League’s ongoing commitment to the belief that credit unions are owned by their members, and members have the right to determine the future of their own credit union, but that the exercise of that right is predicated on a full and fair disclosure of all information. As other Leagues have done, the board set out some parameters for what the League would do on the conversion issue. These include enhancing the credit union charter, developing and pursuing legislative and regulatory changes to protect credit union members in the event of a conversion and providing factual and objective information about any proposed conversion and continue to act as the industry advocate.