DENVER — Colorado Commissioner of Financial Services Chris Myklebust recently announced a series of by-law options for state chartered credit unions regarding merger authorization and mutual savings bank conversions following industry-wide controversy on the matters.
One by-law option provides credit unions explicit protection to fend off unwanted merger proposals. The other optional by-law gives credit union boards a choice between requiring a majority vote of all members or a 2/3 majority of voting members before a mutual savings bank conversion can be pursued.
Myklebust noted at a June conference that credit unions need fair standards before being faced with an unwelcome merger proposal or conversion to a mutual savings bank. "Conversions are not on the horizon; they are here," he said. "My goal in requesting a dialogue on this topic was not to encourage conversions,
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but to be prepared with the rules of the game, not if, but when they occur."
Myklebust added, "The choice I've provided all credit unions in the state was designed to give the individual boards the opportunity to discuss their values around the conversion process and create a foundation for the decision-making process that can be determined in the privacy of their own board rooms."
Credit Union Association of Colorado President/CEO John Dill stated, "Our members appreciated the opportunity to provide input to Commissioner Myklebust regarding the bylaw changes. This is an important issue for credit unions and their members."
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