APPLE VALLEY, Minn. -- Without stating whether it plans tocomply with NCUA's request to discontinue its offer of $200payments to Continental Federal Credit Union's members, WingsFinancial FCU said it is evaluating the regulator's position.

NCUA said yesterday that the payments $1.6 billion WingsFinancial has said it will pay to Continental's more than 25,000members should a merger between the two occur is "impermissible"under the provisions of the Federal Credit Union Act on the groundsthat per capita dividend payments are not allowed and that no otherlegal authority exists for a FCU to make this kind of payment. Thepromise of a dividend by the continuing CU in a proposed merger,without the approval of the merging CU, is also not permitted, NCUAsaid it told Wings Financial.

In a statement sent late yesterday, Wings Financial said "Whilewe are continuing to evaluate the NCUA's position, the larger pointis that the Continental FCU belongs to its members and that moneyis rightfully theirs."

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