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CUNA Still Believes More Guidelines Needed for Merger Protocol

A day after NCUA determined the $200 payments Wings Financial Federal Credit Union has said it will offer Continental FCU's members were impermissible, CUNA is still concerned that more is needed to handle unsolicited merger pursuits.

By Staff Writer | Updated on April 18, 2007

WASHINGTON — A day after NCUA determined the $200 payments Wings Financial Federal Credit Union has said it will offer Continental FCU’s members were impermissible, CUNA is still concerned that more is needed to handle unsolicited merger pursuits.

NCUA has informed the $1.6 billion Wings Financial that it must stop the payment offer because it is impermissible under the provisions of the Federal Credit Union Act, which does not allow per capita dividend payments and because the promise of a dividend by the continuing credit union in a proposed merger, without the approval of the merging credit union, is also not permitted. NCUA said no other legal authority exists for a FCU to make this kind of payment.

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